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HomeMy WebLinkAbout1976-12-21; City Council; 1197; CMC 3.28 amends - Revise city purchasing procedures. II I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ORDINANCE NO. 1197 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AMENDING CHAPTER 3.28 OF THE CARLSBAD MUNICIPAL CODE BY THE AMENDMENT OF SECTIONS 3.28.010 THROUGH 3.28.130 AND BY THE ADDITION OF SECTIONS 3.28.140 THROUGH 3.28.170 TO REVISE THE PURCHASIlYG PROCEDURES OF THE CITY. The City Council of the City of Carlsbad, California, does ordain as follows: SECTION 1: That Chapter 3.28 of the Carlsbad Municipal Code is hereby amended by the amendment of Sections 3.28.010 through 3.28.130 and by the addition of Sections 3.28.140 through 3.28.170 to read as follows: "Chapter 3.28 PURCHASING Sections: 3.28.010 3.28.020 3.28.030 3.28.040 3.28.050 3.28.060 3.28.070 3.28.080 3.28.090 3.28.100 3.28.110 3.28.120 3.28.130 3.28; 140 3.28.150 3.28.160 3 e 28.170 Adoption of purchasing systems. Centralized purchasing department. Compliance required; effect of noncompliance. Purchasing officer. Authority to inspect and test. Duties of purchasing officer. Requisitions. Public projects. Bi ddi ng. Use of purchase orders required. Encumbrance of funds, Formal bidding procedure. Open-market procedure. Competitive negotiation. Cooperative purchasing. Award and execution of contracts. Exemptions from centralized purchasing. 3.28.010 Adoption of purchasing system. The centralized purchasing system set out in this chapter is adopted in order to establish efficient procedures for the purchase of supplies, services and equipment; to secure for the city supplies, services and equipment, at the lowest possible cost commensurate with quali needed; to exercise positive financial control over purchases; t clearly define authority for the purchasing function and to assure the quality of purchases. 1 2 3 4 E 7 E s 11 1; 14 1c 2( 2: 21 2! 2t 2' 21 3.28.020 Centralized purchasing department. There is created a centralized purchasing department in which is vested 2uthority for the purchase of supplies, services and equipment. 3.28.030 Compliance required; effect of noncompliance. '40 obligation for the payment of supplies, services and equipment shall be incurred by the City except as prescribed by this chapter 4ny agreement for the purchase of supplies, services and equipment nade contrary to the provisions of this chapter shall be void and any claim or demand against the City based thereon shall be invalid. 3.28.040 Purchasing officer. There is created the positioi of purchasing officer. Ihe purchasing officer shall be appointed by the City Manager, and in the absence of such an appointment, the functions of such position shall be performed by the City Yanager. The purchasing officer shall have general supervision of the purchasing department and shall have general supervision of the purchasing system set out in this chapter. The duties of the purchasing officer may be combined with those of any other office or position. 3.28.050 Authority to inspect and test. The purchasing officer or a designated representative shall be responsible for the inspection of supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing officer, or a designated representative, shall have authority to require chemical and physical tests of sample sub- mitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. 3.28.060 Duties of purchasing officer. The purchasing officer shall have the authority to: (1) Purchase or contract for supplies, services and equip ment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regula- tions as the purchasing officer shall adopt for the internal management and operation of the purchasing department and such other rules and regulations as shall be prescribed by the City Manager; (2) Negotiate and recommend execution of contracts for th purchase of supplies, services and equipment; (3) Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City; (4) Discourage uniform bidding and endeavor to obtain as full and open competitions as possible on all purchases; (5) Prepare and recommend to the City Manager rules and revisions, and amendments to such rules, governing the purchase of supplies, services and equipment for the City; (6) Keep informed of current developments in the field of purchasing, prices, market conditions and new products; (7) Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations; (8) Supervise the inspection of all supplies and equipmen 2. J 6 7 8 9 1 2 3 4 5 3.28.070 Requisitions. Using agencies shall submit requests for supplies, services and equipment to the purchasing officer by standard requisition forms, or by other means as may be established by the purchasing rules and regulations, shall be administered in the manner provided by Title 4, Division 3, Part 2, Chapter 6 of the California Government Code. 3.28.080 Public projects. Contracts for public projects purchased to insure conformance with specifications; or unused supplies and equipment between departments as needed; records needed for the efficient operation of the purchasing department; specifications for supplies, services and equipment for the City. (9) Recommend to the City Manager the transfer of surplus (10) Maintain a bidders' list, vendor's catalog file and (11) Prepare, in consultation with using departments, 21 22 23 24 25 26 27 28 3.28.110 Encumbrance of funds. Except in cases of emergency or in cases where specific authority has been first obtained from the City Council, the purchasing officer shall not issue any purchase order for supplies, services and equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. 3.23.120 Formal bidding procedure. Except as otherwise provided in this chapter, purchases of supplies, services and equipment of an estimated value greater than five thousand dollars shall be by written contract with the lowest responsible bidder who submits a responsive bid pursuant to the following procedure: (1) Notices inviting bids shall be published at least once, ten days before the date of opening of the bids, in a newspaper of general circulation in the City of Carlsbad, printed and published in the County of San Diego. Notices inviting bids shall include 10 11 12 13 14 15 16 17 18 19 20 3.28.090 Bidding. Purchases of supplies, services and equipment shall be by bid procedures pursuant to this chapter. Bi ddi ng may be di spensed with: (1) When the City Manager determines that an emergency requires that an order be placed with the nearest available source of supply; or (2) When the alnount of an item purchased is less than two hundred fifty dollars; or (3) When the City Council finds that the commodity can be obtained from only one vendor; or (4) When services are involved which will be performed entirely by City forces; or (5) When the provisions of Section 3.28.130, 3.23.140 or 3.28.150 are applicable. 3.28.100 Use of purchase orders required. Purchase of sup- plies, services and equipment shall be made only by purchase orders. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the purchasing officer oradesignated representative has been obtained. 1 2 3 E E 1C 11 1; 1; 14 1E le 1: 1t 16 2( 2: 2: 2; 24 21 2t 2' 21 a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. (2) The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have made a written request that their names be added thereto, or as known to the purchasing officer. (3) The purchasing officer shall also advertise pending purchases by a notice posted on a public bulletin board in City Hal 1. (4) When deemed necessary by the purchasing officer, bid- der'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 his bid security upon his refusal or failure to execute the contract withir ten days after the notice of award of contract has been mailed, unless 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 contrac. to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to 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 all bids presented, due to the failure of the successful bidder to execute the contract, 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. (5) Sealed bids shall be submitted to the purchasing officer and shall be so identified on the envelope. Bids shall be opened in public at the time and place stated in the public notice! inviting the bids. 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 (6) In its discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure hereinabove prescribed. In the event no bids are received or that all bids substantially exceed the City estimate of cost for the purchase, the City Council may reject all bids and direct the purchasing officer to proceed pursuant to Sections 3.28.130 or 3.28.140. amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening. (8) The City shall have authority to require a performance bond before entering a contract in such amount as it finds reason- ably necessary to protect the best interests of the City. If the City requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (7) If two or more bids received are for the same total 3.28.130 Open-market procedure. Purchase of supplies, 4. . J 1 2 3 IC 13 12 12 14 3E 1E 17 1.2 1E 2c 21 2: 22 24 2! 2r 2' services and equipment may be made by the purchasing officer in the open market pursuant to the procedure hereinafter prescribed and without observing the procedure in Section 3.28.120 when the estimated value of the supplies, services and equipment to be purchased is less than five thousand dollars, or when in the course of bid procedures provided by this chapter no bids are received or all bids received substantially exceed the City estimate of cos1 for the purchase. If the open-market procedure applies, the purchasing officer shall solicit bids by written requests to prospective vendors or by telephone. Sealed written bids shall be submitted to the purchasing officer who shall keep a record of all open-market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection. Open market purchaser shall, wherever possible, be based on at least three bids and shal' be awarded to the lowest responsible bidder who submits a respon- sive bid which, based on total cost, is most advantageous to the City. 3.28.140 Competitive negotiation. The City Council may authorize the purchase of hiqhly technical supplies, services and -- .. equipment by competitive negotiations when: (1) The service involves a specialized knowledge or person- al skill, such as Attorneys, Architects, Accountants and special- ized consultants; or (2) The supplies or equipment are such that suitable tech- nical or performance specifications are not readily available, the City is not able to develop descriptive specifications, and proposals for the purchase would be more advantageous to the City. When the purchases are made by competitive negotiations the best offer, as judged against proposal evaluation criteria, shall be accepted, The use of competitive negotiations is not intended to be used for the purpose of avoiding the bidding procedures as set forth in this chapter. 3.28.150 Cooperative purchasing. Purchase of supplies, services and equipment by contract, arrangement and agreement for cooperative purchasing programs with the State of California, the County of San Diego or any other public or municipal corporation of the State of California may be made by the purchasing officer rhen the administering agency has made their purchases in a com- petitive manner. 3.28.160 Award and execution of contracts. Except in emergency situations, pursuant to Section 3.28.090(1), all con- tracts for supplies, services and equipment in an estimated amount of five thousand dollars, or more, shall be awarded by the City Council. Contracts for supplies, services and equipment in an estimated amount of less than five thousand dollars shall be executed by the City Manager. 3.28.170 Exemptions from centralized purchasing. The purchasing officer, with approval of the City Manager, may authori-z in writing any department to purchase specified supplies,-services and equipment of estimated amounts of less than five thousand 5. v-.. ~ + 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2c 21 2% 2z 24 25 26 27 2e e dollars independently of the purchasing department. Such purchases shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases made under such written authorization.” EFFECTIVE DATE: This ordinance shall be effective thirty days after its adoption, and the City Clerk shall certify to the adoption of this ordinance and cause it to be published at least once in the Carlsbad Journal within fifteen days after its adoption INTRODUCED AND FIRST READ at a meeting of the Carlsbad City Council held on the 7th day of December , 1976, and tnereafter PASSED AND ADOPTED at a meeting of said City Council held on the 21st day of December , 1976, by the following vote, to wit: AYES: Councilmen Frazee, Lewis, Packard and Skotnicki NOES: None ABSENT: Counci 1 woman Cas1 er e&-- / ROBERT C. FRAZEE, @iyor ATTEST: U (SEAL) 6.