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HomeMy WebLinkAbout0954�:cDINANCE NO. 954 (1983 Series) AN ORDINANCE OF THE CITY OF SAN LUIS OBSIPO AMENDING ARTICLE II OF THE SAN LUIS OBISPO MUNICIPAL CODE TO RESCIND PART 3 OF CHAPTER 6 THEREOF AND TO ADD THERETO CHAPTER 9.5 ENTITLED: PURCHASING AND PAYMENT PROCEDURES BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Part 3 of Chapter 6 of Article II of the San Luis Obispo Municipal Code is hereby rescinded. SECTION 2. Chapter 9.5 is hereby added to Article II of the San Luis Obispo Municipal Code to amend the city's purchasing and payment procedure as set forth in Exhibit "A ", consisting of 8 pages, attached hereto and incorporated herein by this reference. SECTION 3. This Ordinance, together with the ayes and noes, shall be published in synopsis form, at least three (3) days prior to its final passage in the Telegram - Tribune, a newspaper published and circulated in said city, and the same shall go into effect at the expiration of thirty (30) days after its said final passage. INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis Obispo at a meeting held on the 1st. day of March 1983, on motion of Councilman Griffin seconded by Councilwoman Dovey and on the following roll call vote: AYES: Councilmembers Griffin, Dovey, Dunin and Mayor Billig NOES: None APPR a d,, City A inistrative Officer v'IN11�,- City Attorney Fin . DliiecCorf 0 954 ARTICLE II, CHAPTER 9.5 PURCHASING AND PAYMENT PROCEDURES PART 1. GENERAL PROVISIONS SECTION 2950.1 SECTION 2950.2 SECTION 2950.3 SECTION 2950.4 SECTION 2950.5 Applicability of Chapter Declaration of Policy Purchasing Authority Purchasing Manual Purchase Documents SECTION 2950.6 Bidding Procedures /Dispensation When SECTION 2950.7 Authority to Hire Consultants PART 2. OPEN :MARKET PURCHASE PROCEDURE SECTION 2951.1 Authorization for Purchase SECTION 2951.2 Quotations - Notice of Invitation SECTION 2951.3 Quotations - Submission in Writing SECTION 2951.4 Quotations - Number Required SECTION 2951.5 Quotations - Rejection SECTION 2951.6 Award of Purchase Orders PART 3. FOP.4AL CONTRACT PROCEDURE SECTION 2952.1 Requirement for Purchase SECTION 2952.2 Bids - Notice of Invitation /Submission SECTION 2952.3 SECTION 2952.4 SECTION 2952.5 SECTION 2952.6 SECTION 2952.7 SECTION 2952.8 Bids - Security Required Bids - Opening /Retention Bids - Rejection Award of Contract Requiring Bond of Successful Bidder Determination of Lowest Responsible Bidder PART 4. PAYMENT PROCEDURE SECTION 2953.1 Payment Requirements SECTION 2953.2 Warrant /Accounting Documents SECTION 2953.3 Payment Date SECTION 2953.4 Signature /Payment SECTION 2953.5 Disbursement Reporting ARTICLE II, CHAPTER 9.5 PURCHASING'AND- PAW ig NT''TRNCEDURES PART 1 - GENERAL PROVISIONS SECTION 2950.1. Applicability of Chapter All expenditures by the city for supplies, services, equipment and public works projects not controlled by the Charter, shall be made only in accordance with and pursuant to the provisions of this chapter. SECTION 2950.2. Declaration of Polic A purchasing control system for the city is hereby adopted in order: (a) To secure those items set out in Section 2950.1 at the lowest possible cost commensurate with quality requirements; (b) To ensure effective financial control over expenditures; (c) To clearly define authority and accountability for the purchasing function; (d) To minimize the written documentation, administrative actions, and expense of processing purchase transactions; (e) To assure the quality of purchases made on behalf of the city; and (f) To facilitate accurate forecasting and planning of department needs and expenditures. SECTION 2950.3. Purchasing Authority The City Administrative Officer, or his designated representative(s), shall be the purchasing authority whose functions shall include the following powers and duties: (a) To develop and prescribe, for the departments, such administrative policies, forms and files as may be reasonably necessary for the internal management and operation of these purchasing procedures; (b) To purchase or contract for those items listed in Section 2950.1 and required by departments in accordance with these purchasing procedures; (c) To negotiate and recommend execution of contracts for purchase of those items listed in Section 2950.1. (d) To procure the needed quality in supplies, services, equipment and public works projects not controlled by the Charter, at minimum expense; (e) To ensure as full and open competition as possible on all purchases; EN am (f) To consolidate department orders for like items, ensuring quantity discount pricing whenever possible; (g) To develop and maintain department awareness of purchasing and pricing principles, marketing conditions and new products; (h) To inspect supplies and equipment delivered, as well as contractual services performed, to determine their conformance with the specifications set forth in the orders and contracts; and, in this connection, to have the authority to require chemical, physical or other tests of samples submitted with quotations or bids, or of delivery samplings, which may be necessary to determine quality and conformance with specifications; (i) To establish procedures for, and assign duties to, personnel engaged in receiving, storing and issuing purchased supplies, thereby ensuring that supply levels are consistent with usage requirements; (j) To facilitate the transfer of surplus or unused supplies and equipment among departments as needed; and (k) Subject to Charter Section 906, to sell or exchange surplus supplies and equipment, provided that the same cannot reasonably be used by any department. SECTION 2950.4. Purchasing Manual Pursuant to the provisions of this chapter the City Administrative Officer shall approve and implement a manual of purchasing policies and procedures and shall make such manual available to the Council for inspection. SECTION 2950.5. Purchase Documents All departments shall expend money for those items set forth in Section 2950.1 only in such manner, at such times, and by submission of such purchase documents as the purchasing authority shall prescribe. SECTION 2950.6. Bidding Procedures Purchase of those items listed in Section 2950.1 shall be by bid procedures as set forth in this chapter. Such procedures may be dispensed with, at the discretion and judgment of the purchasing authority as to the best interests of the city, as follows: (a) When the amount to be expended is less than the bid requirement amount which shall be specified by resolution of the Council; (b) When an emergency requires that an order be placed with the nearest available source of supply; (c) When the item(s) to be purchased can be obtained from only one vendor or supplier; (d) When supplies or equipment have been uniformly adopted in the city or otherwise standardized. -2- (e) When the irchase.will be made cooperati, 7 with one, or more, other unics of government; (f) When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property; or (g) When, given the indeterminate nature of the city's need, a request for proposal will result in a more favorable.and efficient comparison of supplies, equipment and /or services. SECTION 2950.7. Authority to Hire Consultants The restrictions and provisions of this chapter shall not apply to contracts involving the acquisition of professional or specialized services such as, but not limited to, those rendered by architects, attorneys, engineers and other specialized consultants. Selection for such services will be made by an evaluation of proposals solicited from capable professionals, and approved by the Council, whenever the cost of the work to be performed is of an estimated value in excess of the amount specified by Council resolution. This section shall not prohibit the purchasing authority from requiring proposals for work with an estimated cost of less than the Council specified amount if,.in the discretion of the purchasing authority, selection based upon the evaluation of proposals would better serve the interest of the city. PART 2 - OPEN MARKET PURCHASE PROCEDURE SECTION 2951.1. Authorization for Purchase Purchases of supplies, equipment and contractual services, except those controlled by the Charter, having an estimated value less than that specified by Council Resolution for bid, may be made by the purchasing authority in the open market without observing the formal contract procedures in Part 3. SECTION 2951.2. Quotations - Notice of Invitation The purchasing authority shall invite, either by verbal or written request, quotations from prospective sellers, vendors, suppliers or contractors. SECTION 2951.3. Quotations - Submission in Writing Written quotations shall be submitted to the purchasing authority, who shall keep a record of open market quotations and orders for a period of ninety days after the receipt of such quotations. SECTION 2951.4. Quotations - Number Required Open market purchases shall be based, whenever reasonably possible, on at least three quotations. SECTION 2951.5. Quotations - Rejection The purchasing authority may reject: (a) Any quotations which fail to meet the specific purchase requirements in any respect; or (b) All quotations, for any reason whatsoever, and may invite new quotations. -3- SECTION 2951.6. Award of Purchase Orders Purchase orders shall be awarded by the purchasing authority to the person submitting the lowest responsible quotation, except as follows: (a) If two or more quotations are received for the same total amount or unit price, quality and service being equal, and if, at the discretion of the purchasing authority, the public interest will not permit the delay of inviting new quotations, then the purchasing authority may accept the lower quotation obtained through negotiation with the persons submitting the tie quotations; (b) Sellers, vendors, suppliers and contractors who maintain places of business located within the limit of the city shall be given preference if quality, price, service and all other relevant factors are equal; or (c) If no quotations are received the purchasing authority may make the required purchase without further notice. PART 3 - FORMAL CONTRACT PROCEDURE SECTION 2952.1. Requirement for Purchase Except as otherwise provided in this chapter, purchases and contracts for supplies, services, equipment and public works not controlled by the Charter, which are equal to or in excess of the bid requirement amount specified by Council Resolution, shall be by written contract with the lowest responsible bidder pursuant to the procedures prescribed in this part. SECTION 2952.2. Bids - Notice of Invitation /Submission (a) Notices inviting bids shall include, but not be limited to, the following: (1) A general description of the item(s) or service(s) to be purchased, or the public work to be constructed or improved; (2) The location where bid blanks and specifications may be secured; (3) The time and place assigned for the opening of sealed bids; (4) The type and character of. bidder's security required, if any; and (5) The location and deadline for submission of bids. (b) Notices inviting bids shall be published at least once in the official newspaper of the city, with the first publication occurring at least ten days before the date of opening the bids. (c) Sealed bids shall be identified as bids on the envelopes and shall be submitted to the City Clerk. -4- SECTION 2952.3. Bids - Security Requirement Bidder's security may be required when deemed necessary by the purchasing authority. Bidders shall be entitled to return of bid security. However, a successful bidder shall forfeit his bid security upon refusal or failure to execute a contract within fifteen days after notice of award of that contract, unless the city is responsible for the delay. The contract may be awarded to the next lowest responsible bidder upon the refusal or failure of the successful bidder to execute the contract within the time herein prescribed. SECTION 2952.4. Bids - Opening /Retention Sealed bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be made available for public inspection until the award of a contract. All bids shall be retained on file for a period of not less than two years. SECTION 2952.5. Bids - Rejection The purchasing authority may reject: (a) Any bid that fails to meet the bidding requirements in any respect; or (b.) All bids, for any reason whatsoever, and may readvertise.for new bids. SECTIOA; 2952.6. Award of Contract Subject to the prior approval of the City Administrative Officer, contracts shall be awarded by the purchasing authority to the lowest responsible bidder, except as follows: (a) If, at the time of bid opening, two or more bids received are for the same total amount or unit price, quality and service being equal, and if in the discretion of the purchasing authority the public interest will not permit the delay of readvertising for bids, then the purchasing authority may accept the one he chooses or the lowest bid obtained through subsequent negotiation with the tie bidders. (b) Sellers, vendors, suppliers, and contractors who maintain places of business located within the limit of the city shall be given preference if quality, price, service and all other factors are equal. SECTION 2952.7. Requiring Bond of Successful Bidder The purchasing authority may require as a condition to executing a contract on behalf of the city, a performance bond or a labor and material bond, or both, in such amounts as the purchasing authority shall determine appropriate to protect the best interests of the city. The form and amounts of such bond(s) shall be described in the notice inviting bids. -5- SECTION 2952.3. Determination of Lowest Responsible Bidder In addition to the bid or quotation price, criteria for determining the lowest responsible bid or quotation, for the purposes of the Charter and this chapter, shall include, but not be limited to, the following: (a) The character, integrity, reputation, judgment, experience and efficiency of the bidder (this may include an analysis of previous work performed for the city); (b) The ability of the bidder to perform the contract, or provide the supplies, equipment or services required, within the time specified, without delay or interference; (c) The ability of the bidder to provide future maintenance, repair parts and replacement of purchased equipment or supplies; (d) Compliance by the bidder with federal acts, executive orders and State of California- statutes governing nondiscrimination in employment; and (e) The results of any evaluation relating performance and price, such as testing, life -cycle costing, and analysis of service, maintenance and technical data. PART 4 - PAYMENT PROCEDURE SECTION 2953.1. Payment Requirements All purchases not otherwise provided for in the Charter shall be made by requisition, or other prescribed document, signed by the purchasing authority and paid by warrant signed by the Finance Director. Payment will only be made upon the satisfaction of the Finance Director that: (a) Sufficient monies have been appropriated for the purchase; (b) The expenditure is in accordance with budget authority; and (c) The proposed expenditure is legal. SECTION 2953.2. Warrant /Accounting Documents The Finance Department shall prepare a currant after receiving properly completed accounting documents as prescribed by the Finance Director and the purchasing authority. Such accounting documents include, but are not limited to, purchase authorizations, purchase orders, receiving reports and vendor invoices. SECTION 2953.3. Payment Date The Finance Director shall determine and assign the dates of warrant preparation, the frequency of which shall be no less than twice each month. SECTION 2953.4. Signature /Payment The Finance Director shall sign each warrant, which shall be honored if there is sufficient money in the city's account. SECTION 2953.5. Disbursement Reporting Following each disbursement a copy of the warrant register, including all warrant numbers and dollar amounts, will be made available for inspection by the Council and the City Administrative Officer. -7- Man pi %el) /,� %i /-� . ��� �� °�� ,_ f�;1� h� r�`�`��� -psi. ORDINANCE NO. 954 (1983 Series) FINALLY PASSED this 5th day of April , 1983, on motion of Councilman Griffin seconded by Councilman Dunin and on the following roll call vote: AYES: Councilmembers Griffin, Dunin, Dovey, Settle and Mayor Billig NOES: None ABSENT: None