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HomeMy WebLinkAboutOrd 857-1981ORDINANCE NO. 857-81 AN ORDINANCE OF THE CITY OF SOUTH SAN FRANCISCO PROVIDING FOR THE PROCEDURE FOR THE PURCHASE AND SALE OF SUPPLIES, SERVICES AND EQUIPMENT AND REPEALING ORDINANCE NO. 467 FOLLOWS: THE CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO DOES ORDAIN AS SECTION 1. ADOPTION OF PURCHASING SYSTEM. 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 ad- vantage 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 hereby adopted. SECTION 2. CENTRALIZED PURCHASING UNIT. There is hereby created a centralized Purchasing Unit in which is vested authority for the purchase of supplies, services and equipment. SECTION 3. PURCHASING OFFICER. The City Manager is hereby designated as the Purchasing Authority for the City. He may delegate the duties of purchasing to a Purchasing Officer or any other City employee. The Purchasing Officer shall have authority to: (a) Purchase or contract for supplies, services and equipment required by any using department in accordance with purchasing procedures prescribed by this Ordinance, 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 governing the purchase of supplies, services and equipment for the City. (f) Prepare and recommend to the City Council revisions and amend- ments to the purchasing rules. (g) Keep informed of current developments in the field of purchasing, prices, market conditions and new products. (h) Prescribe and maintain such forms as reasonably necessary for the operation of this Ordinance and other rules and regulations. (i) Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications. (j) Recommend the transfer of surplus or unused supplies and equip- ment between departments as needed and the sale of all supplies and equipment which cannot be used by a department or which have become unsuitable for City use. (k) Maintain a Bidder's List, Vendors Catalog file and records needed for the efficient operation of the purchasing system. (1) Join with other governmental agencies in joint purchasing endeavors where the purchasing procedures substantially conform to this Ordinance and State !aw. SECTION 4. AGREEMENTS WITH OTHER GOVERNMENTAL AGENCIES AND EXEMPTIONS FROM CENTRALIZED PURCHASING. The Purchasing Officer may authorize in writing any other governmental agency or City department to purchase or contract for specified supplies, ser- vices and equipment independently of the Purchasing Department. He shall ensure that such purchases or contracts by other governmental agencies be made in conformance with the procedures established by State law and that such purchases 2 or contracts by City Departments are made in conformance with this Ordinance. This authority includes the authority to act as lead agency when appropriate. SECTION 5. ESTIMATES OF REQUIREMENTS. All using departments shall file detailed estimates of their require- ments in supplies, services and equipment in such manner, at such time, and for such future periods as the Purchasing Officer shall prescribe. SECTION 6. REQUISITIONS. Using departments shall submit requests for supplies, services and equipment to the Purchasing Officer on such standard forms as may be pre- scribed. SECTION 7. BIDDING. Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 10 and 11. Bidding may be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply, when the amount involved is less than $500.00, or when the commodity can be obtained from only one vendor. SECTION 8. PURCHASE ORDERS. Purchases of supplies, services and equipment in the amount specified in the Administrative Rules and Regulations shall be made only by Purchase Order. ' SECTION 9. ENCUMBRANCE 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 against which said purchase is to be charged. SECTION 10. CONTRACT PROCEDURE FOR PUBLIC WORKS PROJECTS AND MAJOR ACQUISITIONS. Purchases and contracts for supplies, services, equipment and the sale of personal property in an amount exceeding the limits set forth in Section 11 herein and those associated with a public project in accordance with Government Code Sections 37901, et seq., shall be by written contract with the lowest responsible bidder (or in cases of sales by the City, the highest responsible bidder), pursuant to the procedure described herein: (a) Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for open- ing bids. (1) Published Notice: Notice inviting bids shall be published at least ten days before the date of opening the bids. Notice shall be pub- lished at least twice, not less than five days apart, in the case of public projects and at least once in the case of all other major acquisitions, in a newspaper of general circulation, printed and published in the City. (2) Bidders List: The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the Bidder's List or who have requested their names to be added thereto. (b) Bidder's Security: All bids presented in connection with a public project as defined in Government Code Sections 37901, et. seq., shall be accom- panied by bidder's security in the form and amount prescribed by Sections 37931, et. seq., of the Government Code which security shall be dealt with as prescribed therein. In the case of all other major acquisitions, when deter- mined necessary by the Purchasing Officer, bidder's security may be prescribed in the public notices inviting bids. In all cases bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest 4 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, shall be returned to the lowest bidder. (c) Bid Opening Procedure: Sealed bids shall be submitted to the Purchasing Officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30)calendar days after the bid opening. (d) Rejection of Bids: In its discretion, the City Council may re- ject any and all bids presented and re-advertise for bids. (e) Award of Contracts: Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. (f) Tie Bids: If two or more bids received are for the same amount or unit price, quality and service being equal and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders or may utilize a public drawing. (g) Performance Bonds: The Purchasing Officer shall have authority to require a performance bond before entering a contract in such amount as he shall find reasonably necessary to protect the best interests of the City. If the Purchasing Officer requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. SECTION ll. OPEN MARKET PROCEDURE. Purchases of supplies, equipment, contractual services, and sales of personal property may be made by the Purchasing Officer in the open market without observing the procedure prescribed by Section 10 where the estimated 5 value, e~clusive of sales tax and freight, does not exceed $5,000 and further that this value does not exceed $6,000 effective July 1, 1982 and $7,000 effective July 1, 1983. Purchases estimated to exceed the above values shall be made in accordance with the procedure prescribed by Section 10 except that notice inviting bids shall be published at least once. (a) Minimum Number of Bids: Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder. (b) Notice Inviting Bids: The Purchasing Officer shall solicit bids by written requests to prospective vendors, by telephone, and by Public notice posted on a public bulletin board in the City Hall. (c) Written Bids: Sealed written bids shall be submitted to the Purchasing Officer who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection. SECTION 12. INSPECTION AND TESTING. The responsibility for the inspection, testing and acceptance of all supplies, equipment and contractual services performed shall rest with the dePartment or division head concerned. SECTION 13. SURPLUS SUPPLIES AND EQUIPMENT. All using departments shall submit to the Purchasing Officer, at such time 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 equip- ment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Section 10 or 11, whichever is applicable. The bid procedure may be omitted when the amount involved is less than the amount specified in Section 7 herein, and the City Manager gives his approval for such omission in the best interests of the City. SECTION 14. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordi= nance is for any reason held by a court of competent jurisdiction to be in- valid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitu- tional. SECTION 15. REPEAL OF PRIOR ORDINANCE. Ordinance No. 467 entitled, "An Ordinance of the City Council of the City of South San Francisco providing for the purchase and sale of supplies, services and equipment," adopted July 3, 196!, is hereby repealed. SECTION 16. PUBLICATION AND EFFECTIVE DATE. This Ordinance shall be published once as required by law in the Enterprise-Journal, a newspaper of general circulation in the City of South San Francisco, and shall take effect thirty (30) days following its adoption. 7 at a this AYES: NOES: ABSENT: Introduced this 15th day of April , 1981. Passed and adopted as an Ordinance of the City of South San Francisco regular meeting of the City Council of the City of South San Francisco 6th day of May , 1981, by the following vote: Councilmen Ronald G. Acosta, Mark N. Addiego, Emanuele N. Damonte, Gus Nicolopulos; and Councilwoman Roberta Cerri Teglia None None ATTEST: ~City Cler~k~ As Mayor of the City of South San Francisco, I do hereby approve the foregoing Ordinance this 6th day of May , 1981. Mayor