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HomeMy WebLinkAboutOrdinance 029 0 0 ORDINANCE NO. 29 AN ORDINANCE OF THE CITY OF ATASCADERO ADDING CHAPTER 3 ENTITLED PURCHASING SYSTEM TO TITLE 2 OF THE ATASCADERO MUNICIPAL CODE 1 The Council of the City of Atascadero ordains as follows: Section 1. Chapter 3 of Title 2 is added to the Atascadero Municipal Code to read as follows: TITLE 2 . ADMINISTRATION Chapter 3. Purchasing System 2-3. 01. System adopted. A centralized purchasing system is hereby adopted in order to establish efficient procedures for the purchase of supplies and equipment, to secure supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive finan- cial control over purchases and to define authority for the pur- chasing function. 2-3. 02. Designation of purchasing functions. The City Manager, by separate Code provisions , has been assigned overall purchasing responsibilities for all departments and divi- sions of the City. To discharge these responsibilities , the City Manager may designate such other person or persons as he shall deem necessary to assure compliance with the laws, rules and regulations ' governing the purchase of supplies and. equipment. 2-3. 03. Purchasing Officer - Duties. ' There is created the position of Purchasing Officer who shall be the Finance Director unless otherwise specified by the City Manager. The Purchasing Officer shall have general supervision and responsibility for the purchasing of supplies and equipment. The duties of Purchasing Officer may be combined with those of any other office or position. The Purchasing Officer shall; (a) Purchase and contract for supplies and equipment required by the City in accordance with purchasing procedures; (b) Negotiate and recommend execution of contracts for the purchase of supplies and equipment; (c) Procure for the City the needed quality in supplies and equipment at least expense to the City; (d) Discourage uniform bidding to obtain as full and open com- petition as possible on all purchases; 1 0 0 (e) Keep informed of current developments in the field of purchasing prices, market conditions and new products,; i (f) Prescribe and maintain such forms asare reasonably neces- sary to the operation of this Chapter and standard pur- chasing procedures; (g) Insure the inspection of all supplies and equipment pur- chased to insure conformance with specifications; (h) Recommend the transfer of surplus or unused supplies and equipment between departments as needed; (i) Maintain a bidderslist, vendors catalog file and records needed for the efficient operation of the purchasing divi- sion. Certain portions of these files may maintained ' within the departments for ready reference. 2-3. 04 . Exemptions for centralized purchasing. The Purchasing Officer, in coordination with each Department Head, may establish local accounts where charges for minor purchases as needed to meet unforeseen daily operational requirements may be authorized. Such charges shall be made only by a limited number of departmental employees who have been specifically authorized by the Department Head and the Purchasing Officer to do so. Charges for 1 individual items shall not exceed twenty-five dollars ($25.00) per item and must be authorized by a Purchase Requisition signed by the Department Head concerned. Department Heads shall be responsible for assuring that adequate funds are available in the designated budgetary accounts prior to authorizing any expenditure. The charges shall be consolidated by the affected Department Head each month. Such consolidated reports shall show date, price , description, and ' vendor of the item or items purchased. The consolidated lists shall be submitted along with a Purchase Order authorizing payment to the Finance Office. 2-3.05. Estimates of requirements. Each department shall file detailed estimates of its annual and t monthly requirements for supplies and equipment consistent with approved budgetary amounts with the Purchasing Officer in a manner and time as he shall prescribe. 2-3. 06. Internal requisitions. The Purchasing Officer shall maintain and control a stock of normal operating supplies and equipment sufficient to assure day-to- day operations. Departments shall submit requests for such supplies and equipment to the Purchasing Officer either by standard requisi- tion forms or by other means as may be established by the Purchasing Officer. 2-3. 07. Bidding, Purchase of supplies and equipment shall be by bid procedures 2 - as set forth in Section 2-3. 10 and 2-3. 11 except that the Purchasing Officer may dispense with bidding under the following conditions: (a) An emergency requires that an order be placed with the nearest available source of supply; or (b) When the amount involved in less than five hundred dollars ($500. 00) ; or (c) The commodity can be obtained from only one vendor. 2-3.08. Purchase orders. Purchase of supplies and equipment shall be made by purchase order only except as permitted by Section 2-3, 04 above. A purchase order will not be issued until the Purchasing Officer first approves it. 1 2-3.09. Encumbrance of funds. 1Except in case of an emergency or where specific authority is first obtained from the City Manager, the purchasing Officer shall not issue a purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. 2-3. 10. Formal contract procedure. Except as provided in Section 2-3.06 , the purchase of supplies and equipment for any one project or activity of an estimated indi- vidual or aggregate value greater than three thousand five hundred dollars ($3,500.00) shall be by written contract with the lowest responsible bidder in accordance with the following: (a) Notice inviting bids. The responsible department, in conjuction with the Purchasing Officer, shall prepare a notice inviting bids. The notice shall include a general description of the article to be purchased, shall state where bid blanks and specifications may be secured, the time and place for opening bids and may require security deposits (1) Published notice. The notice inviting bids shall be published at least once in a newspaper of general local circulation at least ten (10) days before the date of opening of the bids. (2) Bidders list. The Purchasing Officer shall also solicit sealed bids from responsible prospective suppliers , whose names are on an established bidders list or who have made written request that their names be added to it. (3) Bulletin board. The Purchasing Officer shall also advertise proposed purchases by notice posted on a public bulletin board in the City Offices. I - 3 - ' s security. When considered necessary the Pur- chasing Officer shall prescribe bidder' s security and a statement of the security shall be included in the notice inviting bids. Each bidder is entitled to a return of the bid security. However, a successful bidder forfeits his bid security if he refuses or fails to execute the contract within ten (10) days after the notice of award of contract is mailed. If the successful bidder fails or refuses to execute the contract, the bid may be awarded to the next lowest responsible bidder, or readvertised. If the contract is awarded to the next lowest bidder, the amount of the lowest bidder' s security shall be applied to the contract price difference between the lowest bid and the second lowest bid. The surplus, if any, shall be returned to the lowest bidder. If all bids are rejected and the request for bids readvertised, the amount of the lowest bidder' s security may be used to offset the cost of receiving new bids and the surplus, if any, shall be re- turned to the lowest bidder. (c) Bid opening procedures. The Purchasing Officer shall re- quire all bids to be sealed and identified as "Bid No. " on the envelope. The Purchasing Officer shall open the bids in public at the time and place stated in the public notice. The Purchasing Officer shall tabulate the bids received and shall keep the tabulation 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 may reject all bids presented and readvertise for bids, (e) Award of contracts. Normally, contracts shall be awarded to the lowest responsible bidder except that the Council may award a contract to a higher bidder if it specifically ' determines that the best interests of the City are served by so doing. (f) Tie bids. If two or more bids received are for :the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the Council may accept the one it chooses . (g) Performance bonds. The Council may require a performance ibond before entering a contract in such amount as it finds i reasonably necessary to protect the best interests of the City. 2-3. 11. Open market procedure. If the estimated value of the purchase of supplies or equipment is less than five hundred dollars ($500.00) , the Purchasing Officer - 4 - t may dispense ense with formal bidding procedures , but shall secure, by telephone or letter, price quotations from two or more vendors. If the estimated value of the purchase is three thousand five hundred dollars ($3,500.00) or less, but five hundred dollars ($500.00 or more, the Purchasing Officer shall authorize the purchase in the open market under the following procedure: (a) Minimum number of bids. The responsible department, in conjunction with the Purchasing Officer, shall obtain at least three (3) bids and shall make the purchase from the lowest responsible bidder. (b) Notice Inviting Bids. The responsible department, in con- junction with the Purchasing Officer, shall solicit bids by written request to prospective vendors, by telephone, and by public notice posted on a public bulletin board in the City Offices. (c) Bids. Department Heads shall obtain bids either by tele- phone or by sealed written bids. Telephone bids will be documented by submission of a memo to the Purchasing Officer. The Purchasing Officer shall keep a record of all open market orders and bids for a period of one (1) year after the submission of bids or the placing of orders. This record is open to public inspection. 2-3. 12. Inspection and testing. The department receiving the supplies or equipment shall inspect the delivered items immediately upon receipt to determine conformance with the specifications set forth in the order. The Purchasing Officer shall have authority to require chemical and physical tests or any other tests deemed necessary of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. 2-3. 13. Surplus supplies and equipment. ' All departments shall submit to the Purchasing Officer, at such times and in such forms as he prescribes, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Officer may exchange or trade in on new supplies and equipment all supplies and equipment which cannot be used by an agency or which have become unsuitable for City use. Section 2. The provisions of this ordinance are intended to supersede any provision of Ordinance No. 2 which is in conflict therewith. Section 3. The City Clerk shall cause this ordinance to be pub- lished once within fifteen (15) days after its passage in the Atascadero News, a newspaper of general circulation, printed, pub- lished and circulated in this City in accordance with Section 36933 of the Government Code; shall certify the adoption and posting of this ordinance; and shall cause this ordinance and its certification - 5 - to be entered into the Book or Ordinances of this City. Section 4. This ordinance shall go into effect and be in full force and effect at 12:01 a.m. on the thirty-first (31st) day after passage. The foregoing ordinance was introduced, adopted, and ordered published at a meeting of the Council held on September 22 , 1980 , by the following roll call vote: ' AYES: Councilmen Highland, Nelson, Stover and Mayor Wilkins NOES: None ABSENT: Councilman Mackey ;�,7 X i ROBERT J. WTLKINS JR. Mayor ATTEST: U RAY . WARDEN, City Clerk ' Approved as t form: j ALLEN GRIMES, City Attorney 1, ' CERTIFICATION I hereby certify that the foregoing is a full, true, and correct copy of Ordinance No. 29 passed by the Atascadero City Council at its regular Council meeting held on September 22, 1980 Y L. A EN, City C1Prk Ci of ascadero, California