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HomeMy WebLinkAboutO-1618 Purchasing PoliciesORDINANCE NO. 1618 (2015 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING MUNICIPAL CODE CHAPTER 3.24, ARTICLE I, TO ADD LANGUAGE TO PURCHASING POLICIES GOVERNING EMERGENCY PURCHASING, HIRING ON -CALL CONSULTANTS, AND ENVIRONMENTALLY PREFERRED PURCHASES WHEREAS, the City Council adopted Ordinance No. 1178 (1990 Series) instituting a recycled product procurement policy; and WHEREAS, the Conservation and Open Space Element of the General Plan contains goals, policies and programs that call for the City to use materials with reduced environmental impacts; and WHEREAS, adopted budget policies in the Productivity section call for analyzing system and procedures to identify and remove unnecessary review requirements; and WHEREAS, on December 16, 2014 Council amended the Productivity section of the City budget policies to include "Maintaining City purchasing policies and procedures that are as efficient and effective as possible "; and WHEREAS, the subject changes to the Municipal Code will streamline the purchasing process for hiring consultants — while maintaining appropriate checks and balances through a formalized Request for Proposal process — thereby making accomplishing projects and related delivery of services to the community more expedient and efficient; and WHEREAS, the City analyzed several benchmark cities' purchasing ordinances, and the subject changes are consistent. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Article I of Chapter 3.24 of the Municipal Code of the City of San Luis Obispo is hereby amended as set forth in Exhibit A. SECTION 2. Effective Dates. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage. 01618 Ordinance No. 1618 (2015 Series) Page 2 SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this ordinance, or any other provisions of the city's rules and regulations. It is the city's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable. Ordinance No. 1618 (2015 Series) Page 3 INTRODUCED on the 2nd day of June, 2015, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 16th day of June, 2015, on the following roll call vote: AYES: Council Members Carpenter, Christianson, Rivoire, Vice Mayor Ashbaugh, and Mayor Marx NOES: None ABSENT: None Mao an Marx ATTEST: APPROVED AS TQFORM: J.tChristine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City l day of of San Luis Obispo, California, this Ordinance No. 1618 (2015 Series) EXHIBIT A EXHIBIT A Page 4 SAN LUIS OBISPO MUNICIPAL CODE CHAPTER 3.24 PROCEDURES FOR PAYMENT OF 3.24.030 Purchasing authority CLAIMS AND PURCHASES designated - Powers and duties. The city Article I. General Provisions administrative officer, or his designated representative(s), shall be the purchasing authority whose functions shall include the 3.24.010 Applicability of provisions. 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. (Ord. 954 § 2(part), 1983: prior code § 2950.1) 3.24.020 Purpose of provisions. A purchasing control system for the city is adopted in order: A. To secure those items set out in Section 3.24.010 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. (Ord. 954 § 2 (part), 1983: prior code § 2950.2) 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 3.24.010 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 3.24.010; 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; 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; Ordinance No. 1618 (2015 Series) EXHIBIT A 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. (Ord. 954 § 2(part), 1983: prior code § 2950.3) 3.24.040 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. (Ord. 954 § 2(part), 1983: prior code § 2950.4) 3.24.050 Purchase documents. All departments shall expend money for those items set forth in Section 3.24.010 only in such manner, at such times and by submission of such purchase documents as the purchasing authority shall prescribe. (Ord. 954 § 2(part), 1983: prior code § 2950.5) Page 5 3.24.060 Bidding procedures - Use of not required when. Purchase of those items listed in Section 3.24.010 shall be by bid procedures 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 purchase is made to address a situation that creates an immediate and serious need for equipment, supplies, or services that cannot be met through normal purchasing procedures and where the lack of such equipment, supplies or services would seriously threaten the functioning of City government, the preservation of property, or the health or safety of any person; 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; E. When the purchase will be made cooperatively with one, or more, other units of government, or from a local dealer within the city limits that can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions; F. When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property; or Ordinance No. 1618 (2015 Series) EXHIBIT A 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. (Ord. 1618 § 1, 2015; Ord. 1608 § 1, 2014; Ord. 954 § 2(part), 1983: prior code § 2950.6) 3.24.070 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 using one of the following criteria: A. An evaluation of proposals solicited from capable professionals, and approved by the purchasing authority, whenever the cost of the work to be performed is of an estimated value 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. B. 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. C. Selection from an approved list of on- call consultants that is established by a formal Request for Qualifications (RFQ) process. The Council shall approve the RFQ, and the Purchasing Authority is authorized to execute agreements with selected consultants. The Finance Director is authorized to execute and amend purchase orders for individual consultant services contracts in an amount not -to- exceed the authorized project budget. On -call Page 6 consultant lists shall be renewed at least every five years by a new RFQ process. Ord. 1618 § 1, 2015; Ord. 954 § 2(part), 1983: prior code § 2950.7) 3.24.075 Environmentally Preferred Purchases. A. It is the intent of the city Council that the City of San Luis Obispo take a leadership role not only in recycling its waste products but also in the purchase of recycled products for use in the delivery of city services. It is the purpose of this section to provide direction to the city administrative officer in the procurement and use of recycled products. For the purpose of this section, recycled materials are defined as any materials (e.g., glass, paper, plastic, etc.) that are separated by type, reprocessed by industrial methods, and used as raw materials for the manufacture of new products. B. It is the policy of the City of San Luis Obispo to purchase and use recycled products whenever possible to the extent that such use does not negatively impact health, safety, or operational efficiency. C. It is the policy of the City of San Luis Obispo to encourage the purchase of products which can be recycled or reused. D. The City will purchase and use recycled paper for masthead stationery, envelopes and printing purposes. In addition, recycled paper shall be purchased and used in all copy machines which will accept it. City staff will encourage the copier industry to develop high -speed copiers which will accept recycled paper. Ordinance No. 1618 (2015 Series) EXHIBIT A E. City departments shall examine their purchasing specifications and, where feasible, purchase equipment, supplies, and services that result in less harm to the natural environment. This involves the purchase of equipment, supplies, and services in a manner that uses less harmful materials, employs recycled or recovered materials (where appropriate and available), and utilizes techniques intended to result in less impact on the environment than other available methods. F. A ten percent preference, not to exceed one thousand dollars per contract, may be given to recycled products. The fitness and quality of the recycled product must be at least equal to unrecycled products as determined by the city. The preference percentage shall be based on the lowest bid Page 7 or price quoted by the supplier or suppliers offering nonrecycled products. G. Price preferences may be offered in excess of the ten percent ceiling established in this section, if it can be shown that purchase of a recycled product or material will result in greater long -term savings to the city. Award of a bid in excess of the ceiling, however, requires the approval of the city administrative officer or city Council as established in the city's purchasing manual. (Ord. 1618 § 1, 2015; Ord. 1178 § 1, 1990) Ord. No. 1178 added § 3.24.080, which the editor has renumbered § 3.24.075 since the chapter already contained a § 3.24.080.