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HomeMy WebLinkAbout466r^ l 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 Chapter 3.44 of Title 3 of the Irwindale Municipal Code hereby is repealed, in its entirety.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. r' l 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, 2 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; 01 "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 4 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 5 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; 2 "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, rl ("N 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: 3 "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; 0, "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. 11 "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 12 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. 13 "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, 14 r 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. 15 (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 16 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 17 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. 18 "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