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CIT-,F CARLSBAD -AGEND~ILL
ImE; DEPT. AB# 6955-il
MTG. 9h9/85
DEPT._P_c_H __
ADDITION TO THE PURCHASING SECTIONS
OF THE CARLSBAD MUNICIPAL CODE CITY ATTV..x...:.:::=;;;;-
CITY MGR. __
RECOMMENDED ACTION:
Introduce Ordinance No. /(<t?:3, amendin~ the purchasing procedures
to authorize the City Council to design·ate by Resolution what supplies,
servi~es and equipment costing more th1.m $10,000 can be acquired by
the use of the Open Market procedure.
ITEM EXPLANATION:
The City of Carlsbad adopted the first purchasing ordinance in October
1966. That ordinance has been amended occasionally to ensure the
City follow current, accepted purchasing practices.
One practice currently existing in the purchasing procedures is the
Open Market procedure. At this time, the proposed addition would
allow the City Council, when it is economically advantageous, to
authorize the Open Market procedures by resolution for the purchase
of designated supplies, services and equipment costing more than
$10,000. The Open Market procedures are presently being used for
items costing less than $10,000 and require the Purchasing Officer
to solicit bids from prospective vendors. After obtaining a~ least
three bids (whenever possible}, an analysis is made to determ~ne
the lowest responsible bidder. Following the evaluation of thb bids,
an award is made for the pm::chase of supplies, services or equipment.
An example of when the proposed amendment would be appropriate is
for the purchase of used,vehicles. currently, the City must use
the formal bidding procedure for used vehicles. Because of the
time involved in formal bid proceedings, we are getting very little
response from car rental agericies and dealerships. When we do
receive a response the selection is generally limited. The Open
Market procedure where designated by the City Council will allow
us to solicit bids immediately and make the decision to purchase
in a substantially reduced period of time. This flexibility
should increase dealer interest and thus create Cl: larger selection
of vehicles for the City.
FISCAL IMPACT:
When the Open Market procudures are used, the City will realize
a savings in the cost of legal advertising that is required for
formal bids. It is estimated that the savings for items purchased
under the proposed amendment using the Open Market procedures
would be approximately 10% .
EXHIBITS:
1. Summary of proposed addition to Purchasing Ordinance .
2. Ordinance No. /-2~---·
I
August 20, 1985
TO:
FROM:
ASSISTANT CITY Mi\NAGEK/ AIJMINIS TRATION
Purchasing Officer
PROPOSED ADDITION TO PURatASING ORDINANCE
The recommended addition to the Carlsbad Municipal Code is considered necessary
for the City to have a viable and canprehenslve purchasing policy.
Section 3.28.120 -Formal Blddln Procedures provides for the purchase of
supp es, serv ces a equ pment cost ng more than ten thousand dollars by
formal bidding procedures. When these procedures are used, notice to bid ls
published in the newspaper at least ten days before the bid opening. Sealed
bids are submitted to the Purchasing Of fleer and opened in public at a time and
place stated in the Notice To Bid. After the bids are received, they are
evaluated and a recommendation ls made for a bid award to the Clty Council. It
ls estimated the average formal bid takes six weeks to canplete. For most items
costing ten thousand dollars there ls no problem in using the for-mal bidding
procedures. However, there may be times when it would be econanclally
advantageous to use the open market procedures rather than the formal bidding
procedures for the purchase of supplies, services and equipment costing more
than ten thousand dollars. When the Open Market Procedures are used, written
quotations are subnitted to the Pur~-hasing Officer and the award is made to the
lowest responsible bidder who submits a responsive bid which, based on total
cost, is most advantageous to the City. The average time involved for the
purchase of items using the open market procedures is two to three weeks.
Because there will be times that it would be more advantageous to use the cpen
market procedures, the proposed addition to the Purchasing Ordinance allowing
the Council to authorize the purcha::.e of items cos tJ.ng more than ten thousand
dollars by resolution is recommended.
RUTH FLETCHER
Purchasing Officer
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ORDINANCE NO. 1283
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA AMENDING TITLE 3, CHAPTER 3.28
OF THE CARLSBAD f-tUNICIPAL CODE BY AMENDMENT OF
SECTION 3.28.130 TO AUTHORIZE THE CITY COUNCIL TO
DESIGNATE BY RESOLUTION SERVICES AND SUPPLIES
COSTING MORE THAN $10,000 BY USE OF OPEN MARKET
PROCEDURES.
The City Council of the City of Carlsbad, California
does ordain as follows:
SECTION l: That Title 3, Chapter 3.28 of the Carlsbad
Municipal Code is amended by the amendment of Section 3.28.130
... ., read as follows: 10.
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3.28.130 ~en market procedure.
(a) Notwi standing Section 3.28.120 the purchas~ng
officer may purchase supplies, services and equipment in the
open market pursuant to the procedures established in this
section~ The open market procedure may be utilized when the
estimated value of the supplies, services and equipment to be
purchased is l~ss than $10,000, when no bids are received
pursuant to bid procedures established by this chapter or when
all bids received substantially exceed the City's estimated cost
for the purchase. Further, the City Council may designate types
or classes of supplies, services and equipment costing more than
$10,000 which may be purchased through use of open market
procedures whenever the City Council finds that use of open
market procedures is economically advantageous to the City.
(b) The open market procedure shall be as follows:
1. The purchasing officer shall solicit bids by
written or oral request to prospective vendors.
2. Sealed written bids shall be submitted to the
purchasing officer.
3. The purchasing officer shall keep a public
record of all open market requests and bids for a period of one
year after the submission of the bids or if no bids ara received
the placing of the orders.
4. If feasible, purchases shall be based upon at
least three written bids and shall be awarded to the lowest
responsible bidder who submits a responsive bid which, based
upon total cost, is most advantageous to the City.
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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 regular meeting of the
Carlsbad City Council on the 10th
1985, and thereafter
day of SepteTber ,
PAS,&ED AND ADOPTED at a regular meeting of said City
Council held on the 17th day of Sept:esri)er , 1985 by the
following vote, to wit:
AYES: Council l-Bri:lers Casler, lewis, Kulchin, Chick and Pettine
NOES: None
ABSENT: ~ne
FORM AND LEG LITY
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ATTEST:
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