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HomeMy WebLinkAboutOrdinance - 2289 - Amend Title 4Ordinance No. 2289 - Amending Redding Municipal Code Chapter 4.20-Purchasing System (B-OS0) It is recommended that Ordinance No. 2289 be adopted, an ordinance of the City Council of the City of Redding repealing Redding Municipal Code Chapter 4.20 and adding a new Chapter 4.20- Purchasing System. The ordinance increases Purchasing Officer authority thresholds and streamlines procedures for procurement of goods and services. 2001 s, ORDINANCE NO. 22-89 AN ORDINANCE OF THE CITY OF REDDING REPEALING REDDING MUNICIPAL CODE CHAPTER 4.20, AND ADDING A NEW CHAPTER 4.20—PURCHASING SYSTEM. The City Council of the City of Redding does ordain as follows: Section 1. Redding Municipal Code Chapter 4.20 is repealed, and a new Chapter 4.20 (Purchasing System) is added, to read as follows: Chapter 4.20 PURCHASING SYSTEM Sections: 4.20.010 System Adopted 4.20.020 Division Created 4.20.030 Purchasing Officer—Appointment 4.20.040 Purchasing Officer—Duties 4.20.050 Exemptions from Centralized Purchasing 4.20.060 Department Estimates of Requirements 4.20.070 Requisition Forms 4.20.080 Bidding—When Dispensed With 4.20.090 Bidding—Opening Procedures 4.20.100 Purchase Orders 4.20.110 Availability of Funds 4.20.120 Formal Contract Procedures 4.20.130 Open Market Purchasing Procedures 4.20.140 Inspection and Testing 4.20.150 Surplus Supplies and Equipment 4.20.160 Unlawful Purchases Designated. 4.20.010 System Adopted. In order to establish efficient procedures for the purchase of supplies, services and equipment; secure for the city supplies, services and equipment at the lowest possible cost commensurate with the quality needed; exercise positive financial control over purchases; clearly define authority for the purchasing function; and to assure the quality of purchasing, a purchasing system is adopted. Sll 11..1 1 4.20.020 Division Created. There is created a centralized purchasing division of the support services department in which is vested authority for the purchase of supplies, services and equipment and the sales of personal property. 4.20.030 Purchasing Officer—Appointment. There is created the position of purchasing officer,who shall be appointed by the city manager. 4.20.040 Purchasing Officer—Duties. The purchasing officer shall have general supervision of the purchasing division. The duties of the purchasing officer may be combined with those of any other office or position. The purchasing officer shall have authority to do the following: A. Purchase or contract for supplies, services and equipment required by any city department in accordance with the purchasing procedures prescribed by this chapter; such administrative regulations as the purchasing officer 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 or the city manager. All rules and regulations not contained in this chapter shall be as set forth in the purchasing manual adopted by resolution of the city council on May 21, 1957, as amended from time-to-time. B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. C. Procure for the city the needed quality in supplies, services and equipment at the least expense to the city. D. Encourage uniform bidding,and endeavor to obtain as full and open competition as possible on all purchases. E. Prepare and recommend to the city manager rules governing the purchase of supplies, services and equipment and the sales of personal property for the city, such rules to be contained in the purchasing manual. F. Prepare and recommend to the city manager revisions and amendments to the purchasing rules contained in the purchasing manual. G. Keep informed of current developments in the field of purchasing, prices, market conditions, and new products. H. Prescribe and maintain such forms as are reasonably necessary to carry out the purchasing procedures contained in this chapter. 2 I. Recommend the transfer of surplus or unused supplies and equipment between departments as needed, and the sale of all supplies and equipment that cannot be used by any department or which have become unsuitable for city use. J. Maintain a vendor data base,vendors'catalog file and records needed for the efficient operation of the purchasing division. 4.20.050 Exemptions from Centralized Purchasing. The purchasing officer, with approval of the city manager and the city council, may authorize in writing any city department to purchase or contract for specified supplies, services and equipment independently of the purchasing division, but shall require that the purchases or contracts be made in conformity with the procedures established by this chapter. The purchasing officer shall further require periodic reports from the department on the purchases and contracts made under the written authorization. 4.20.060 Department Estimates of Requirements. All departments shall file detailed estimates of their requirements in supplies, services and equipment in the manner, at the time, and for the future periods the purchasing officer shall prescribe. 4.20.070 Requisition Forms. All departments shall submit requests for supplies, services and equipment to the purchasing officer by standard requisition forms. 4.20.080 Bidding—When Dispensed With. A. Purchase of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following instances: 1. When an emergency requires that an order be placed with the nearest available source of supply; 2. When the commodity can be obtained from only one vendor; 3. When personal services are required of such a nature as not to be customarily subject to bid procedures; 4. When a sole-source procurement is based on standards previously adopted by the city council; 5. When prices have been established by other governmental entities or associations of governmental entities in such a manner as to ensure the best value available to the city;or 3 6. When, at the request of the city manager, and approved by the city council, goods or services are proposed to be purchased that do not constitute public works projects. B. An emergency shall be defined as any breakdown in equipment or utility service requiring immediate repair or replacement,wherein the item or items broken down do not fall within the definition of a"public works project" as defined in the Government Code of the state. Only the city manager, or in his absence the assistant city manager, may determine that an emergency exists for the purpose of dispensing with the ordinary bidding procedures required by this chapter. 4.20.090 Bidding—Opening Procedures. A. The official opening of bids shall be done publicly in the city clerk's office or a city hall conference room at a stated time,but not less than eight hours prior to a regular meeting of the city council, with the following provisos: 1. There shall be present at the opening of bids the purchasing officer and either the city clerk or the deputy city clerk. 2. In the event the purchasing officer cannot be present,a designated alternate shall attend the bid opening in his stead. 3. The exact time and place of opening of such bids shall be specifically set forth in the advertisement calling for bids,and the general public and bidders shall not be excluded or prevented from hearing the bids announced as each bid is opened. B. A formal report of the full contents of supplies, equipment and service bids exceeding one hundred thousand dollars for one-time procurements—or exceeding one hundred thousand dollars annually in the case of multiple-year procurement agreements—shall be made in tabulated form and presented to the city council as soon as practicable after the opening of bids. The bid opening procedure set forth herein is designed to expedite the conduct of official business at regular city council meetings, and is an alternative procedure only. Nothing contained in this section shall be deemed to deprive the city council of its right to require that bids for certain projects or contracts be opened only in the presence of the city council. 4.20.100 Purchase Orders. A. Except as stated in this section,no purchases of supplies,services and equipment shall be made without a purchase order. B. Requests for an emergency purchase order shall be accompanied by an emergency requisition. The department director requesting the emergency purchase order shall sign the emergency requisition and shall explain in detail the reasons therefor. In the absence of the purchasing officer, the emergency requisition must bear the signature of the city manager or the assistant city manager. In the case of emergencies arising after working hours when neither the purchasing officer, the city manager nor the assistant city manager can be contacted, the 4 emergency purchase may be made; provided, however, that the emergency requisition substantiating the purchase shall be filed by the department director within four hours after the start of the next regular work day. 4.20.110 Availability of Funds. Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies,services or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. When emergency purchases are requested of items for which no funds have been encumbered, the emergency requisition shall so state and the interested department director shall initiate a request for a fund transfer within four hours after the start of the next regular work day. 4.20.120 Formal Contract Procedures. A. Except as otherwise provided in this chapter,purchases and contracts for supplies,services and equipment with an estimated value greater than twenty-five thousand dollars shall be by written contract with the lowest responsible bidder,pursuant to the procedures prescribed in this section. B. Except as otherwise provided in this chapter, the sale of personal property with an estimated value greater than twenty-five thousand dollars shall be made to the highest responsible bidder, pursuant to the procedures prescribed in this section. C. Notices inviting bids shall include a general description of the articles to be purchased or sold; state where bid blanks and specifications may be secured; and the time and place for opening bids. 1. For procurement of supplies and equipment with an estimated value greater than one hundred thousand dollars, notices inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation printed and published in the city; or,if there is none,it shall be posted in at least three public places in the city that have been designated by ordinance as places for posting public notices. 2. The purchasing officer shall also solicit sealed bids from responsible prospective suppliers. 3. The purchasing officer or the city clerk shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the city hall. D. When deemed necessary by the purchasing officer, 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 his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed,unless the city is responsible for the delay. The city may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city awards the 5 contract to the next lowest bidder,the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid,and the surplus,if any, shall be returned to the lowest bidder. E. Sealed bids shall be submitted to the city official designated in the notice inviting bids,and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. 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. F. In its discretion, the city may reject any and all bids presented and readvertise for bids. G. Contract Award. 1. Contracts for the purchase of supplies and equipment between twenty-five thousand dollars and one hundred thousand dollars in one fiscal year, regardless of possible multiple-year award, shall be awarded to the lowest responsible bidder by the purchasing officer, with additional authorization from the director of the department for whom the purchase is being made and either the assistant city manager, the deputy city manager or the director of support services, except as otherwise provided in this chapter. 2. Contracts for services between twenty-five thousand dollars and one hundred thousand dollars in one fiscal year, regardless of possible multiple-year award, shall be awarded to the service provider representing the best value for the city by the purchasing officer,with additional authorization from the director of the department for whom the service is being made and either the assistant city manager, the deputy city manager or the director of support services, except as otherwise provided in this chapter. 3. One-time or one-year contracts for the purchase of supplies, equipment or services exceeding one hundred thousand dollars annually—or exceeding one hundred thousand dollars annually in the case of multiple-year contracts—shall be awarded by the city council, except as provided in this chapter. H. If two or more bids received are for the same total amount or unit price—quality and service being equal—the city may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders. The city shall have authority to require a Faithful Performance Bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city requires a Faithful Performance Bond, the form and amount of the bond shall be described in the notice inviting bids. J. The purchasing officer, with additional authorization from the director of the department for whom the bid is being made and either the assistant city manager, the deputy city manager or the director of support services, may reject supplies, equipment and service bids if the bids received are in excess of the budgeted funds available for the purchase,and rebid or commence 6 open-market negotiations to award a purchase order or contract to the vendor that can provide the supplies, equipment or service to the city's satisfaction within budgeted amounts. K. The city council,or the appropriate city officials as authorized by subsection G of this section, may authorize the execution of a contract for supplies, services or equipment without any previous publication or posting of notice inviting bids or proposals when the city council or the appropriate officials find and declare that any one or more of the following situations exist: 1. When a bid or bids have been received for the subject supplies, services or equipment obtained in accordance with all the provisions of this chapter, including publication or posting of notice,and the city has rejected any and all bids, and has authorized negotiation with one or more bidders or other parties who possess the capability of supplying the required supplies, services or equipment, and the city finds that the proposed contract so negotiated is more favorable to the city than any which could be made in accordance with the bids or proposals heretofore requested. 2. When there is only one available source which can supply the subject matter of the contract. 3. When the contract is for personal services,including peculiar or specialized skill or ability. 4. When an emergency exists which makes it essential to the health, safety or welfare of the people that emergency action be taken. 5. When a sole source procurement is based on standards previously adopted by the city council. 6. When prices have been established by other governmental entities, or associations of governmental entities, in such a manner as to ensure the best value available to the city. 7. When, at the request of the city manager, and upon approval thereof by the city council, goods or services are proposed to be procured which do not constitute public works projects. 4.20.130 Open Market Purchasing Procedure. A. Purchases of supplies,equipment,contractual services and the sales of personal property in the amount of twenty-five thousand dollars or less in one fiscal year—or twenty-five thousand dollars or less in the case of multiple-year awards—may be made by the purchasing officer in the open market without observing the procedures prescribed by Section 4.20.120. 1. Open market purchases for supplies and equipment shall,wherever possible,be based on at least three quotations and be awarded to the lowest responsible bidder. The purchasing officer shall solicit quotes by written requests to prospective vendors by telephone, by public notice posted on a public bulletin board in the city hall, or by notice posted on the city's web site. Quotations shall be submitted to the purchasing officer in written, faxed, 7 • electronic or verbal form,and the purchasing officer shall keep a record of all open market orders and quotations for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection. 2. Open market purchases for supplies and equipment shall not require bids if the value is less than one thousand five hundred dollars. Purchases between one thousand five hundred dollars and ten thousand dollars, wherever possible, shall be based on three or more written, faxed, electronic or verbal quotes. B. For the procurement of services with a value of twenty-five thousand dollars or less annually, the department director may interview one or more service providers that the director believes is qualified to perform the work. The department director will then select a service provider and forward a recommendation to the purchasing officer to issue a contract/purchase order. At the discretion of the purchasing officer, award will be made as recommended, or the purchasing officer may require consideration of additional service providers. 4.20.140 Inspection and Testing. The department director for whom supplies and equipment are purchased or contractual services performed shall inspect the supplies, equipment and work performed to determine their conformance with the specifications set forth in the order or contract, and shall certify the conformance to the purchasing officer in accordance with the procedures established therefor.The department director shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. 4.20.150 Surplus Supplies and Equipment. All city departments shall submit to the purchasing officer,at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange them for, or trade them in on, new supplies and equipment. The sales shall be made pursuant to Section 4.20.120 or 4.20.130, whichever is applicable, except that surplus supplies and equipment may be sold for fair value without competitive bidding to other public agencies or to nonprofit agencies providing valuable community services in Redding. 4.20.160 Unlawful Purchases Designated. A. If any department purchases or contracts for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter,the purchase or contract shall be void and of no effect. The director of the department making the purchase transaction shall be personally liable for the amount of the purchase or contract, and, if already paid for out of city funds, the amount thereof may be recovered in the name of the city in appropriate action therefor. 8 B. It is unlawful for any department to split its requirements for supplies,materials,equipment and contractual services into estimated amounts of less than twenty-five thousand dollars in order to evade the provisions of Sections 4.20.120 and 4.20.130. Section 2. The passage of this ordinance is not a"project"according to the definition in the California Environmental Quality Act, and therefore is not subject to the provisions requiring environmental review. Section 3. This ordinance shall take effect 60 days after the date of its adoption,and the City Clerk shall certify the adoption thereof and cause its publication according to law. I HEREBY CERTIFY that this ordinance was introduced and read by the City Council at a regular meeting on the 16th day of October, 2001; and was read and adopted at a regular meeting on the 6th day of November2001, by the following vote: AYES: COUNCIL MEMBERS: Cibula, Pohlmeyer, Stegall and McGeorge NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Kight ABSTAIN: COUNCIL MEMBERS: None Off AVID " GEO ' P' , M or Attest: tis Connie Strohmayer, City ark Form Approved: David E. Tranberg, Assistant City :tto- ey 9