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HomeMy WebLinkAboutOrd 1321-2003ORDINANCE NO. 1321-2003 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO AMENDING CHAPTER 4.04 (PURCHASING SYSTEM) OF THE SOUTH SAN F1LttNCISCO MUNICIPAL CODE WHEREAS, the City Council has determined that Chapter 4.04 of the Municipal Code should be amended to take advantage of alternatives allowed by the California Public Contract and Government Codes, expedite project delivery, continue to foster competition among vendors, and maintain management and City Council oversight of significant expenditures. NOW THEREFORE, the City Council of the City of South San Francisco does ORDAIN as follows: SECTION 1. CHAPTER 4.04 AMENDED Chapter 4.04 of the South San Francisco Municipal Code is hereby amended as follows: 4.04.010. Adopted -Purpose In order to establish efficient procedures for the acquisition of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to dispose of surplus personal property to the best advantage of the City, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. 4.04.030. Purchasing authority designated - Department head powers and duties The City Manager is designated as the purchasing authority for the City. He may delegate the duties of purchasing to department heads or any other city employee. Each department head shall have authority for his or her department to: Purchase or contract for supplies, services and equipment :equired by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing system and such other rules and regulations as shall be prescribed by the City Council. b) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. c) Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City. d) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases. e) Prepare and recommend to the City Council rules goveming the purchase of supphes, services, and equipment for the City. f) Prepare and recommend to the City Council revisions and amendments to the purcl'_asing rules. g) Prescribe and maintain such forms as reasonably necessary for the operation of this chapter and other rules and regulations. h) Supe:'vise the inspection of all supplies, services and equipment purchased to insure conformance with specifications. i) Recommend the transfer of surplus or unused supplies anti equipment between departments as needed and the sale of all supplies and equipment which cannot be t~s :d by a department or which have become unsuitable for City use. j) Maintain a bidder's list, vendor's catalog file and records needed for the efficient operation of the purchasing system. k) Joir_ with other govemmental agencies in joint purchasing endeavors where the purcl'_asing procedures substantially conforms to this chapl er and state law. 4.04.040. Agreements with other governmental agencies a) The department head may authorize in writing any other governmental agency to purchase or contract for specified supplies, services and equipment. He shall enst-re that such purchases or contracts by other governme: ~tal agencies be made in conformance with the procedures established by state law. This authority incluces the authority to act as lead agency when appropriate. (Ord. 857 § 4, 198'_). b) Except for public projects over $25,000 as defined by the Uniform Public Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, City purchases may be made by taking advantage of valid contract terms that have been negotiated by another govern: nental agency, if that agency had used a quote or bid process that substantially conforms with the procecures established by state law and this chapter. In these cases, City staff shall verify and document such conformance. 4.04.060. Departmental requisition procedure Using depart_-'r_ents shall submit requests for supplies, services and equipment to the department head and to the Finance Department on such standard forms as may be prescribed in :Le Administrative Instructions Manual. 4.04.070. Abbreviated bid procedures for public projects Public projec;s, as defined by the Uniform Public Construction Cost Accounting Act, Sections 2200( et seq., of the Public Contract Code, of one-hunEred thousand dollars ($100,000) o: less may be let to contract by abbreviated procedures as set forth in Sections 22032 et seq. of that code. 4.04.071. Contractors list A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. 4.04.072. Notice inviting abbreviated bids Where a pub_i¢ project is to be performed which is subject to the provisions of this Chapter, a notice inviting abbreviated bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with Section 4.04.071, ant' ;o all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction t:ade journals may be notified at thc discretion of the department soliciting bids; provided however: If there is no list of qualified contractors maintained by the City for the pa:ticular category of work performed, the notice invit'ng bids shall be sent only to the construction trade journals specified by the Commission. b) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting abbreviated bids may be sent exclusively to such contractor or contra:tots. 4.04.073. Formal bid procedures for major public projects Contracts for public projects as defined by the Uniform Publ:'c Construction Cost Accounting Act, Sections 22000 et seq., of the Public Contract Code, in an amount exceeding ore-hundred thousand dollars ($100,000) shall be accomplished using the bidding procedure described in this section. Notice Inviting Bids. Notices inviting bids shall distinctly describe the project, sha-1 state where bid blanks and specifications may be secured, and shall state the time and place for the receiving and opening of sealed bids. Published Notice. Notice inviting bids shall be publ! shed at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City. ii. Construction Trade Journals. The notice inviting formal bids shall also be mailed to all construction trade journals as specif_ed by the California Uniform Construction Cost Accounting Commission in accordance with in Section 22036 of the Public Contract Code. The notice shall be mailed at least thirty calendar days before the date of opening the bids. b) c) d) e) t) 4.04.080. Bidder's Security. All bids presented in connection with the public project shall be accompanied by bidder's security in the form and amount prescribed by Public Contract Code Section 20170 et seq., which security shall be dealt wi:[. as prescribed therein. In all cases bidders shall be er.titled to return of bid secthty provided that a successful bidder shall forfeit ~ais 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. TI~ e 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 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, si.all be returned to the lowest bidder. Bid Opening Procedure. Sealed bids shall be subm-tted to the Finance Department and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the publi: notice. A tabulation of all bids received shall be open for public inspection during regular business hou-:s for a period of not less than thirty calendar days after the bid opening. Rejection of Bids or No Bids Received. In its discretion, the City Council may reject any and all bids presented and readvertise for bids. If no bids are received, the City Council may award the project by negotiated contract. Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. Tie Bids. If two or more bids received are for the same amount or unit price, qua_ity and service being equal, and if the public interest will not permit the de.~_y of readvertising for bids, the City Council may accept the one it chooses or ~.ccept the lowest bid made by negotiation with the tie bidders or may ut:'l"_ze a public drawing. g) Per_-'ormance Bonds. The department head shall have ~.uthority to require a performance bond before entering a contract in such amount as he finds reasonably necessary to protect the best interests of the City. If the department head requires a performance bond, the form and amoun: of the bond shall be described in the notice inviting bids. (Ord. 960 §§ 2, 3, 1984; Ord. 857 § 10, 1981). Open market procedures for purchases and sales exclusive of public projects. a) Pta'chases of supplies, services, equipment and the sale of personal property that do not fall under Sections 4.04.070 or 4.04.073 shall be by the open market procedures described in this section when :he estimated value, exc-usive of sales tax and freight, exceeds Ten thousaad dollars ($10,000). Ogen market procedures may be dispensed with only when an emergency rec t~ires that an order be placed with the nearest available source of supply or wken the commodity can be obtained from only one vencor. b) The department head shall solicit open market quotes or bids as outlined be_aw by written requests to prospective vendors, by te' ephone, or by public noS:e posted on a public bulletin board in the City hall. At least three quotes shall be obtained from vendors for all items not exceeding $25,000, and shall be submitted to the cepartment head who shall keep a record of all open market orders for a period of one year after -.he submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. ii. At least three written bids shall be submitted to the department head for '.tems over $25,000 except professional services. Department head shall i~eep a record of all open market bids for a period of one year after the submission of bids or the placing of orders. Said record, while so kept, shall be open to public inspection. iii. Purchases of professional services. a) When entering a professional services contr, ct, the skill or ability of the entity or person performing the services is a key component of the selection criteria. The selection shoul:l therefore be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Cost is only one facto:' in determining the selection. b) In these cases, the department head sha[ solicit requests for proposals or requests for quotations to prospective vendors either by mail, by telephone, or by public notice posted on a public bulletin board in the City hall. c) Proposals or quotations shall be submitted to the department head who shall keep a record of all open market orders fOr a period of one year. Said record, while so kept, shal be open to public inspection. 4.04.090. Use of purchase orders Purchases o.-? supplies, services and equipment in the amot_nt administrativ: rules and regulations shall be made by purchase order. specified in the 4.04.091. i]ncumbrance of funds only in cases of emergency Except in cases of emergency, the department head shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation against which ~ae purchase is to be charged. 4.04.092. Written contract required for public projects ant major acquisitions and sales a) Purchases and contracts, exceeding twenty-five thousand dollars ($25,000), for supplies, services, equipment and the sale of personal property, including those associated with a public project as defined by the Uniform Public Cor_struction Cost Accounting Act, Sections 22000 e~ seq., of the Public Cortract Code, shall be by written contract with; i. The lowest responsible bidder; ii. i-n the case of sales by the City, the highest responsible bidder; or 111. In the case of professional or personal services co:atracts, based on the :riteria established in Section 4.04.080(b)(3)(i). Such purchases and contracts shall be pursuant to the procedures set forth in this chapter. 4.04.096. a) b) All written contracts regardless of amount shall be reviewed by the City Attorney's Office. Dollar limits for approvals Purchases of supplies, services, public projects, and equipment and the sales of personal property shall be approved by: i. The department head, if such purchases or sales do not exceed twenty-five thousand dollars ($25,000). ii. The City Council, if such purchases or sales exceed twenty-five thousand dollars ($25,000). b) All written contracts shall be approved by the City Manager. All such con:racts exceeding twenty-five thousand dollars ($25,000) shall be also app :oved by the City Council. c) A~I real property acquisitions or real property lease cot.tracts with a term of three years or more, regardless of amount, shall be ~.pproved by the City Cot_ncil. d) T[.e City Council can delegate the authority described ir_ this section, with the exception of subsection (c), to the City Manager. 4.04.120. i~nspection, testing and acceptance responsibility The responsibility for the inspection, testing and acceptance of all supplies, equipment and contractual services performed shall rest with the department head concerned. 4.04.130. Surplus supplies and equipment All using depa_-tments shall submit to the Finance Department, at such time and in such form as presc_-'i'~ed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Finance Department shall have authority to sell all supplies and equipment which cannot be used '~y any department or which have become unsuitable for City use, or to exchange the sarae for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Section 4.04.080. The '~id procedure may be omitted when the amount inwlved is less than the amount speciSed in Section 4.04.080, and the City Manager gives his approval for such omission in tt'_e best interests of the City. SECTION 2. SEVERABILITY If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in ful~ force and effect. To this end, provisions of this orcinance are severable. The City Cotrncil of the City of South San Francisco hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subs:ctions, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. SECTION 3. PUBLICATION AND EFFECTIVE DATE Pursuant to tl~ e provisions of Government Code Section 36933, a Surnmary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meetSr_g at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk's Office a certified copy of this Ordinance. W:_thin fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) pub?_sh the summary, and (2) post in the City Clerk's Office a certified copy of the full text o-_' :his Ordinance along with the names of those City Council members voting for ant against this Ordinance or otherwise voting. This ordiaance shall become effective thirty days from and after its adoption. Introduced at a regular meeting of the City Council of the City of South San Francisco, held the 12th day of M~.rch 2003. Adopted as an Ordinance of the City of South San Francisco at a regular meeting of the City Council held the 26th day of March 2003, by the following vote: AYES: Counci'members Joseph A. Femekes, Richard A. Garbarino, and Raymond L. Green, Mayor Pro Tem Karyl Matsumoto and Mayor Pedro Gonzalez NOES: None. ABSTAIN: None. ABSENT: None. Ci~ Clerk Francisco, I the As Mayor of ;t_e City of South San do hereby approve foregoing Ordinance this 26th day °f March 2003' ~~~~