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ORDINANCE NO. 466
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF IRWINDALE REPEALING CHAPTER 3.44 OF TITLE 3
OF THE IRWINDALE MUNICIPAL CODE AND ADOPTING A
NEW CHAPTER 3.44 PERTAINING TO THE CITY'S
PURCHASING SYSTEM.
Section 1. Chapter 3.44 of Title 3 of the Irwindale
Municipal Code hereby is repealed, in its entirety.
Section 1. A new Chapter 3.44 hereby is added to
Title 3 of the Irwindale Municipal Code to read, in words and
figures, as follows:
"Chapter 3.44
"PURCHASING SYSTEM
"Sections:
"3.44.010
Adoption of purchasing system.
"3.44.020
Definitions.
"3.44.030
Centralized purchasing division.
"3.44.040
Purchasing manager - Position created -
Appointment.
"3.44.050
Purchasing manager - Powers and duties.
"3.44.060
Exemptions from centralized purchasing.
"3.44.070
Requisitions.
"3.44.080
Bidding - Generally.
"3.44.090
Formal bid procedure.
"3.44.100
Informal bid procedure.
"3.44.110
Bidding for public works projects.
"3.44.120
Inspection and testing.
"3.44.130
Award to other than lowest responsible
bidder.
"3.44.140
Contracting for the purchase of
supplies, equipment, services -
Exemptions.
"3.44.150
Disposition of surplus supplies and
equipment.
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1#3.44.010 Adoption of purchasing system.
"A purchasing system hereby is adopted in order to
establish efficient procedures for the purchase of
supplies, equipment and services, to secure for the
city supplies, equipment and services at competitive
cost commensurate with quality needed and with due
consideration to disposability, to exercise positive
financial control over purchases, to clearly define
authority for the purchasing function, to assure the
quality of purchases, and to buy without favor or
prejudice.
193.44.020 Definitions.
,e""* "As used in this chapter, the following words and
terms are defined as follows unless the context
indicates that a different meaning is intended:
`Activity or using agency' means any
department, agency or other unit of city government
which derives its support wholly or in part from the
city.
`Local bidder' means a firm or individual who
regularly maintains a place of business and transacts
business in, or maintains an inventory of merchandise
for sale in, and is licensed by, or pays business taxes
to the city.
`Lowest responsible bidder' means the person
or firm submitting the lowest price for the supplies,
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materials, equipment or services which meet or exceed
specifications, delivery terms and conditions and other
requirements included in the invitation to bid. `The
lowest responsible bidder' will be determined after the
following factors have been considered:
111. The ability, capacity and skill of the bidder
to provide the service or commodity required and to
comply with all specified requirements in the bid
document;
112. Whether the bidder has the facilities to
perform the contract or provide the service promptly,
or within the time specified, without delay or
interference;
113. The experience and efficiency of the bidder;
114. The bidder's record of performance of
previous contracts or services;
115. The previous and existing compliance by the
bidder with laws and ordinances relating to the contact,
or service;
116. The sufficiency of the financial resources
and ability of the bidder to perform the contract or
provide the services;
"7. The quality, availability and adaptability of
the supplies, equipment or service to the particular
use required;
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"8. The ability of the bidder to provide future
maintenance and service for the use of the subject of
the contract;
119. The number and scope of conditions attached
to the bid.
`Professional services' means the services of
attorneys, physicians, architects, engineers,
consultants, auditors, specialized printers, or other
individuals or organizations possessing a high degree
of professional, unique, specialized, or technical
skill or expertise, not adaptable to competitive
bidding, or where the service involves a contract for
special activities, negotiations for the acquisition of
land, trash services, insurance, bonds or any other
service of a similar nature to the above, engaged for a
particular project or series of projects.
`Purchases' means purchases of supplies,
equipment, services and personal property and shall not
include leases and rentals as well as transactions by
which the city acquires ownership.
`Purchasing Manager' means the official
designated by the city manager for administration and
enforcement of this chapter.
`Purchasing policy limits' means such limits
which shall be those amounts which determine purchase
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procedures. Such purchase limits shall be established
by a resolution of the city council.
`Services, means any and all services,
including, but not limited to, equipment service
contracts. The term does not include services rendered
by city officers or employees, nor professional or
other contractual services for which the procedure for
procurement is specifically provided by law or approved
city procedures or are in their nature unique and not
subject to competition.
`Supplies and equipment, means any and all
articles, things or personal property furnished to, or
used by, any city department.
113.44.030 Centralized purchasing division.
"There is created a purchasing division within the
city which is vested with the authority for the
centralized purchase of supplies, equipment and
services.
113.44.040 Purchasing manager - Position created -
Appointment.
"There is created the position of purchasing
manager. The purchasing manager shall be appointed by
the city manager. The purchasing manager shall direct
and supervise the city's purchasing program. The
purchasing manager shall endeavor to obtain as full and
open a competition as possible on all purchases. the
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purchasing manager shall establish methods and
procedures for the efficient and economical functioning
of the purchasing program.
113.44.050 Purchasing manager - Powers and duties.
"The purchasing manager shall have the authority
to:
"A. Purchase or contract for supplies,
materials, equipment and services required by using
department in accordance with the purchasing procedures
prescribed by this chapter, such administrative
procedures as the purchasing manager shall adopt for
the internal management and operation of the purchasing
division, and such other rules and regulations as shall
be prescribed by the city council, the city manager or
as otherwise provided by law;
"B. Enter into any contract permitted by
law, including, but not limited to, equipment service
contracts, lease purchase agreements and rental
agreements, subject to any restrictions set forth in
this chapter or specifically provided by law;
"C. Maintain when feasible full and open
competition among bidders on all purchases;
"D. Prepare, recommend and implement rules
governing the purchase of supplies, equipment and
services for the city and recommend revisions and
amendments where applicable;
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"E. Keep informed of current developments in
the field of purchasing, prices, market conditions and
new products;
"F. Prescribe and maintain such forms as are
reasonably necessary to the operation of this chapter
and other rules and regulations;
"G. Recommend the transfer of surplus or
unused supplies and equipment between departments as
needed and the sale of all supplies and equipment which
cannot be used by any department or which becomes
unsuitable for city use;
"H. Maintain a vendor's list, vendor's
catalog file and records needed for the efficient
operation of the purchasing division;
"I. Manage and supervise the city central
warehousing facility.
113.44.060 Exemptions from centralized purchasing.
"The purchasing manager may, where legally
required to do so, authorize, in writing, any
department to purchase or contact for certain specified
supplies, equipment, or service independently of the
purchasing division, but such purchases shall be made
in conformity with the procedures established by this
chapter. The purchasing manager may also rescind such
authorization to purchase independently by written
notice to the department or departments concerned,
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unless otherwise prohibited by law. This chapter does
not apply to contracts to print legal briefs or legal
notices, contracts for professional and other services
or items which are in their nature unique and not
subject to competition or other services for which by
law another officer or body is specifically charged
with obtaining.
113.44.070 Requisitions.
"All departments shall submit requests to the
purchasing manager by standard requisition form or by
other means as may be established by purchasing
procedures for the supplies, materials, equipment and
services as required for their operations and purposes
and within the limits of funds appropriated therefor.
The purchasing manager, after reviewing such, may
require from the requesting department justification of
the quality of quantity requisitioned.
113.44.080 Bidding - Generally.
"Purchases of supplies and equipment shall be by
bid process pursuant to Sections 3.44.090 and 3.44.100
of this chapter. Bidding may be dispensed with under
the authority of subsection A of Section 3.44.050 of
this chapter when no public work of a total value in
excess of the public works bidding limit is involved
and one of the following conditions pertains:
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"A. When an emergency requires that an order
be placed with the nearest available source of supply;
"B. When the amount involved is less than
the open market amount established by resolution of the
city council;
"C. When the commodity can be obtained from
only one vendor. A commodity shall be considered
obtainable only from one vendor when only one vendor
offers it for sale, lease or rental, or when only one
vendor is able to do so within the time frame and/or
under the terms and conditions which reasonably meet
the needs of the using agency, or when there is a sole
distributor or manufacturer of a product or service
such that there is no acceptable substitute within a
specific geographical area;
"D. When there is to be a contract for
professional services such as, but not limited to, the
services of attorneys, architects or engineers, or
where the service contracted for deals with public
relations or promotions, elections, negotiations, or
acquisition of land, trash, garbage or refuse disposal
or the like, insurance, bonds and any other services or
similar nature unique and not subject to competition or
other services for which by law another officer or body
is specifically charged with obtaining;
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"E. When, through cooperative purchasing
with the state, the county, and other public agencies,
the advantages of large-scale buying may be obtained;
"F. When the purchase is beneficial to the
interest of the city and is from a supplier who has
been awarded a specific item or items in a contract
resulting from a formal competitive bid process by
another governmental agency within the state of
California or by the federal government within the
previous three hundred sixty five days (one year);
"G. When purchasing from or selling to
another governmental agency when such action is
beneficial to the interests of the city;
"H. When the city council determines by
resolution it would be in the best interest of the city
to dispense with bidding; provided, however, that the
city council shall state the basis of its
determination;
"I. When there is a breakdown in essential
machinery, essential services, or when unforeseen
circumstances arise including delays by contractors ,
delays in transportation, and unanticipated volume of
work which requires the immediate attention of a
professional or immediate service/repair in order to
protect public health, safety or welfare.
113.44.090 Formal bid procedure.
"Except as otherwise provided in this chapter,
purchases of supplies, equipment or services of an
individual estimated value greater than the amount
established by resolution shall be by written contract
with the lowest or highest, as the case may be,
responsible bidder pursuant to the procedure prescribed
in this section.
"A. Notice Inviting Bids. Notices inviting bids
shall include a general description of the article(s)
to be purchased or sold, shall state where bid blanks
and specifications may be secured, and the time and
place for opening bids.
"1. Published Notices. Notices inviting
bids shall be published at least ten days before the
date of the opening of the bids. Notices shall be
published at least once in a newspaper of general
circulation, printed and published in the city, or if
there is none, shall be posted in at least three places
in the city that have been designated by ordinance as
the place for posting public notices.
"2. Bidder's List. The purchasing manager
shall also solicit bids from responsible prospective
suppliers whose names are on the bidder's list or who
have made a written request that their names be added
to the bidder's list.
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"B. Bidder's Security. When deemed necessary by
the purchasing manager, bidder's security may be
prescribed in the public notices inviting bids.
Bidders shall be entitled to return of bid security;
provided, however, that a successful bidder shall
forfeit the bid security upon refusal or failure to
execute the contract within ten days after the notice
of award of the contract has been mailed unless, in the
latter event, the city is solely responsible for the
delay in executing the contract. The city council may,
on refusal or failure of the successful bidder to
execute the contract, award it to the next lowest
responsible bidder. If the city council awards the
contract to the next lowest responsible bidder, the
amount of the contract price differential between the
lowest bid and the second lowest bid, and the surplus,
if any, shall be returned to the lowest bidder. If the
city council rejects the remaining bids presented and
readvertises, the amount of the lowest bidder's
security may be used to offset the cost of receiving
new bids and the surplus, if any, shall be returned to
the lowest bidder.
"C. Bid Opening Procedure. Sealed bids shall be
submitted to the purchasing manager and shall be
identified as `bid' on the envelope. Bids shall be
opened in public at the time and place stated in the
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public notice. In the case of a bid submitted by a
local bidder as defined in Section 3.44.020 of this
chapter the purchasing manager shall, for the purpose
of bid comparison only, reduce the amount of the bid by
one percent (1%). A tabulation of all bids received
shall be open for public inspection during regular
business hours for a period of not less than thirty
calendar days after the bid opening.
"D. Rejection of Bids. In its discretion, the
city council may reject any and all bids presented,
readvertise for bids or authorize the purchasing
manager to award a contract after negotiation for the
most reasonable cost under existing conditions. The
right to reject any or all bids is expressly reserved
to the city. The decision of the city council shall be
final.
"E. Award of Contracts. Except as otherwise
provided in this section, contracts shall be awarded to
the lowest responsible bidder. The purchasing manager
shall have the authority to award contracts (including
capital outlay items) which have been approved and for
which there are sufficient funds appropriated.
Contracts which exceed the budgeted amount, or which
are not budgeted, or which involve public works
exceeding the bid limits shall be awarded by the city
council.
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"F. Tie Bids. If two or more bids received are
for the same total amount or unit price, quality and
service being equal, the city council may, in its
discretion, accept the one it chooses or accept the
lowest bid made by negotiation with the tied bidders.
"G. Performance Bonds. The city council shall
have authority to require a performance bond before
entering into a contract in such amount as it shall
find reasonably necessary to protect the best interest
of the city. If the city council requires a
performance bond, the form and amount of the bond shall
be described in the notice inviting bids and the form
of the bond shall be as determined by the city
attorney.
"H. Waiver of Defects. The city council shall
have the right to waive any irregularities or
informalities in the bidding or in the procedures as
set forth in this chapter. No irregularity or
informality shall void any contract.
113.44.100 Informal bid procedure.
"Purchases of supplies, equipment, and services of
a value less than so stated by resolution may be made
by the purchasing manager by the informal bid process
pursuant to the procedure prescribed in this section
and without observing the procedure described in
Section 3.44.090 of this chapter; provided, however,
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all bidding may be dispensed with for purchases of
supplies, equipment and services having a value of less
than the open market amount established by resolution
of the city council pursuant to Section 3.44.080 of
this chapter.
"A. Minimum Number of Bids. Informal bid
purchases shall, whenever possible, be based on at
least three bids. Upon examination of all bids and
determination of the most competitive bidder, the
contract shall be awarded to the successful bidder.
"B. Notice Inviting Informal Bids. The
purchasing manager may solicit informal bids by written
requests to prospective vendors, via fax machine, by
telephone, or by any other means deemed effective.
"C. Written Bids. Written informal bids shall be
submitted to the purchasing manager, who shall keep a
record of all informal bid orders and bids for a period
of two years after the submission of bids or the
placing of an order.
"This record, while so kept, shall be open to
public inspection.
"D. Waiver of Defects. The purchasing manager
shall have the right to waive any irregularity or
informality.
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(00'
113.44.110 Bidding for public works projects.
"Public works projects as defined by the
California Public Contract Code shall be bid,
advertised and awarded in accordance with applicable
sections of the California Public Works Contract Code.
113.44.120 Inspection and testing.
"The purchasing manager, or such person as may be
appointed by the purchasing manager, may inspect the
supplies and equipment delivered to determine their
conformance with the specifications set forth in the
order. The purchasing manager shall have authority to
require chemical or physical tests of samples submitted
with bids and samples or deliveries which are necessary
to determine their quality and conformance with the
specifications.
113.44.130 Award to other than lowest responsible
bidder.
"Any provision of this chapter to the contrary
notwithstanding, supplies, equipment and/or services
may be purchased from other than the lowest responsible
bidder in any case in which the city council shall find
that, in light of all circumstances applicable to the
particular purchase, including, but not limited to,
location of the vendor and the amount of staff time
required for the administration of the contract, the
city will acquire the supplies, equipment and service
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at lower net cost by effecting its purchase from a
party other than the lowest responsible bidder.
913.44.140 Contracting for the purchase of
supplies, equipment, services or leases
- Exemptions.
"The city manager or designee, with the approval
of the city council, may contract for supplies,
equipment, services or leases without observing the
procedures required in this chapter regardless of the
estimated value of such supplies, equipment or services
or leases when the best interest of the city would be
served thereby. Whenever the council approves the
purchase of supplies, equipment, services or leases
without observing the procedures required in this
chapter, the council may require that the purchasing
manager solicit informal bids under such conditions and
limitations as the city council may impose. This
exemption section shall not apply to any public work of
a total value which exceeds the public works bidding
limits.
113.44.150 Disposition of surplus supplies and
equipment.
"All using departments shall submit to the
purchasing manager, at such times and in such forms as
the purchasing manager shall prescribe, reports showing
all supplies and equipment which are no longer used or
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which have become obsolete or worn out. The purchasing
manager shall have authority to exchange for or trade
in on new supplies and equipment all supplies and
equipment which have become unsuitable for city use.
"A. Such items so declared to be surplus shall be
offered for sale on a competitive bid basis. Bids may
be solicited by written request, telephone, fax
machine, by public auction, by use of an auction
service, by advertisement in any newspaper or magazine,
or by any combination of such methods.
"B. When, after a reasonable effort has been made
to obtain competitive bids, no offers are received for
any item or city -owned personal property so declared to
be surplus, the purchasing manager is authorized to
dispose of such item for the highest scrap value that
can be obtained therefor and if a reasonable effort to
do so produces no opportunity to sell the same for
scrap, the purchasing manager may cause its destruction
or any other disposition thereof.
"C. The city may sell obsolete or surplus
property to any other tax -supported governmental agency
at an established "fair market value" without other
bids.
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"D. The city may donate surplus personal property
to any agency or entity which is exempted from federal
income tax with the approval of the city council."
Section 4. The City Clerk shall certify to the
adoption of this Ordinance.
ADOPTED AND APPROVED this 22nd day of April ,
1993.
Mayor
I, DAVID A. CARETTO, City Clerk of the City of
Irwindale, do hereby certify that the foregoing Ordinance was
introduced at a regular meeting of the City Council of the City
of Irwindale held on the 8th day of April
1993, and was
finally passed at a regular meeting of the City Council of the
City of Irwindale held on the 22nd day of April 1993 by
the following vote:
AYES: COUNCIL MEMBERS: Miranda, J., Miranda, P., Breceda,
Barbosa, and Diaz
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
ATTEST:
City Clerk, City Xrw' ale
M 1021 WRDRPL3.401 4.4 19