HomeMy WebLinkAboutOrdinance 199 ORDINANCE 19 9
AN ORDINANCE AMENDING THE CITY OF SARATOGA
PURCHASING SYSTEM
THE CITY COUNCIL OF THE CITY OF SARATOGA DOES ORDAIN AS FOLLOWS:
Section 1. Adoption.
Article 2-45 of the Saratoga City Code is hereby amended as set forth in Attachment A-1 to
this Ordinance. Text to be added to Article 2-45 is indicated in bold italic font (e.g., bold italic)
and text to be deleted from Article 2-45 is indicated in strikeout font (c.g., strikeout). Text in
standard font remains unchanged by this ordinance.
Section 2. Publication.
This Ordinance shall be published once in a newspaper of general circulation of the City
of Saratoga within fifteen days after its adoption.
The foregoing Ordinance was introduced at a regular meeting of the City Council of the
City of Saratoga held on the 6th day of September, 2000, and adopted by the following vote
following a second reading on the ?0t.h day of.qon, ,2000:
AYES: Evan Baker, John Mehaffey,
· Mayor Stan Bogosian
NOES: None
Nick Streit, Ann Waltonsmith
ABSENT: None
ABSTAIN: None
'.C~.~Y CLERK :"~::=~---
APPROVED AS TO FORM:
MAYOR, CITY OF SARATOGA, CALIFORNIA
CITY ATTORNEY
Ordinance No.19 9
Article 2-45
PURCHASING SYSTEM
Sections:
2-45.010
2-45.020
2-45.030
2-45.040
2-45.050
2-45.060
2-45.070
2-45.080
2-45.090
2-45.095
2-45.100
2-45.110
2-45.120
2-45.130
2-45.140
Adoption of purchasing system.
Definitions.
Exclusions from Article.
Centralized purchasing system; Purchasing Officer.
Purchase orders.
Availability of funds.
Authorization for purchase orders and contracts; emergencies.
Use of brand names.
Basis of award.
Recycled paper.
Purchases under $100.
Open market purchases.
Competitive bidding; exceptions.
Formal bidding procedure.
Request for proposals.
2-45.150 Inspection and testing.
2-45.160 Joint purchase with other agencies.
2-45.170 Disposal of personal property.
2-45.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies and services at the
· .... ~ .... * most competitiveprice commensurate with operational needs, to
exercise positive financial control over such purchases, to clearly define authority for
administration of the purchasing function, and to assure the quality of supplies and services
purchased by the City, a purchasing system is hereby adopted.
2-45.020 Definitions.
For the purposes of this Article, the following words and phrases shall have the meanings
respectively ascribed to them by this Section, unless the context or the provision clearly
requires otherwise:
(a) Brand name means a product, item or material described by reference to its
manufacturer's name or catalogue number.
(b) Brand name or equal specification means a contract or purchase order specification
containing a brand name to describe the nature, standard of quality, performance,~ and other
characteristics needed to meet the City's requirements, and which provides for the
submission of equivalent products.
(c) Cost, as applied to a single transaction for the purchase of supplies or services, means the
total amount to be expended by the City, exclusive of sales or use taxes.
(d) Supplies means and includes all materials, supplies, equipment, products, and other items
of tangible personal property.
(e) Services means and includes labor, professional services and consulting services.
ATTACHMENT A-1
Services shall not include incidental labor such as set-up, testing, and maintenance of
supplies where the primary purpose is to purchase the supplies.
2-45.030 Exclusions from Article.
The provisions of this Article shall not apply to any of the following:
(a) The award of contracts for public projects governed by the provisions of the State Public
Contract Code or the provisions of the City's informal bidding ordinance, as contained in
Chapter 12, Article 12-15 of this Code.
(b) The award of contracts governed by any State or Federal law which prescribes a different
procedure.
(c) The granting by the City of franchises, rights, privileges, licenses or permits, including,
but not limited to, a cable television franchise granted pursuant to Chapter 4, Article 4-25 of
this Code, a garbage collection franchise granted pursuant to Chapter 7, Article 7-05 of this
Code, or a franchise for installation of facilities granted pursuant to Chapter 10, Article 10-
25 of this Code.
(d) The purchase of utilities, including, but not limited to, electricity, water, gas, or telephone
service.
(e) Employment contracts or collective bargaining agreements with any employees of the
City.
(f) The purchase of insurance, including coverage provided by any self insurance pool in
which the City is a participant.
(g) The extension or renewal of any existing contract for technical or professional services to
be performed by consultants, unless the City Council elects to award a new contract pursuant
to this Article.
(h) Contracts for technical or professional services to be performed by consultants, where the
cost thereof will be paid in advance by a person applying to the City for a permit, license or
other approval.
(i) Contracts for educational, recreational, travel or entertainment services furnished by
independent contractors or consultants, where the total cost thereof is paid by the persons
utilizing the services.
(j) Contracts for supplies or services to be furnished by any other public agency.
(k) The purchase of supplies or services made in compliance with the terms and conditions
of any grant, gift or bequest to the City that is otherwise consistent with law.
2-45.040 Centralized purchasing system; Purchasing Officer.
(a) Except as otherwise provided by this Article, all purchases of supplies and services shall
be centralized under the Purchasing Officer.
(b) The City Manager is hereby appointed as the Purchasing Officer for the City, and as such
shall have authority to:
(1) Procure or supervise the procurement of all supplies and services needed by the City, in
accordance with the procedures prescribed in this Article and any administrative rules and
regulations as may be adopted by the Purchasing Officer pursuant hereto.
(2) Exercise direct supervision over the City central stores and general supervision over all
other inventories of supplies belonging to the City.
(3) Establish or supervise the establishment of specifications for supplies and services
required by the City.
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(4) Inspect or supervise the inspection of all supplies purchased by the City to insure quality,
quantity and conformance with the specifications therefore.
(5) Prepare and adopt administrative rules and regulations not in conflict with the provisions
of this Article for the purpose of implementing the purchasing system established hereunder.
(6) Sell, trade or otherwise dispose of surplus supplies, in accordance with the provisions of
this Article.
(c) The Purchasing Officer may authorize any department head to investigate, solicit bids, or
negotiate the purchase or award of contracts for or services or supplies independently of the
centralized purchasing system, provided that all such actions shall be done in conformity
with the procedures prescribed by this Article or by duly adopted administrative rules and
regulations pertaining thereto.
2-45.050 Purchase orders.
Purchases of supplies or services having a cost of One Five Hundred Dollars or more shall
be made only by purchase orders signed by the Purchasing Officer, or other City employees
as may be designated by the Purchasing Officer to act in his behalf. Nothing herein shall
preclude the use of authorized petty cash funds for purposes intended by their establishment.
2-45.060 Availability of funds.
Except in cases of emergency, the Purchasing Officer shall not issue any purchase order for
supplies or services unless there exists an unencumbered appropriation in the fund account
against which such purchase is to be charged. The appropriate account and funds shall be
encumbered immediately after the issuance of the purchase order.
2-45.070 Authorization for purchase orders and contracts; emergencies.
(a) The Purchasing Officer is hereby authorized to issue purchase orders and award contracts
for supplies or services where the cost thereof does not exceed F'~ve Ten Thousand Dollars.
(b) Contracts or purchase orders for supplies or services involving a cost in excess of Five
Ten Thousand Dollars must be approved or awarded by the City Council.
(c) Notwithstanding Paragraphs (a) and (b) of this Section or any other provision of this
Article, the Purchasing Officer may purchase supplies or services having a cost in excess of
F~ve Ten Thousand Dollars in the event of emergency requiring the immediate preservation
of the public peace, health or safety, and precluding action by the City Council. In such
instances, the Purchasing Officer shall submit to the City Council at its next succeeding
meeting a written report describing the circumstances of the emergency, the supplies or
services purchased, and the cost thereof.
2-45.080 Use of brand names.
(a) Brand name or equal specifications may be used when the Purchasing Officer determines
that:
(1) No other design or performance specification or products list is available; or
(2) Time does not permit the preparation of another form of purchase description which does
not include a brand name specification; or
(3) The nature of the product or the nature of the City's requirements makes use of a brand
name or equal specification suitable for the procurement; or
(4) Use of a brand name or equal specification is in the City's best interests.
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(b) Brand name or equal specifications shall state that substantially equivalent products to
those designated will be considered for award.
(c) Where a brand name or equal specification is used in a solicitation, the solicitation shall
contain explanatory language that the use of a brand name is for the purpose of describing
the standard of quality, performance and characteristics desired and is not intended to limit
or restrict competition.
2-45.090 Basis of award.
(a) Purchases of supplies or services will be made on the basis of the bid or bids most
advantageous to the City. In addition to price, the criteria for determining the most
advantageous bid shall include, but not be limited to the following:
(1) Compliance with the bid specifications.
(2) The ability, capacity and skill of the bidder to perform the contract or provide the
supplies or services required.
(3) The ability of the bidder to perform the contract or provide the supplies or services
promptly, or within the time specified, without delay or interference.
(4) The character, integrity, reputation, judgment, experience, and efficiency of the bidder.
(5) The quality of the bidder's performance on previous purchases or contracts with the City.
(6) The previous and existing compliance by the bidder with the ordinances of the City and
applicable State and federal laws.
(7) The sufficiency of the bidder's financial resources to perform the contract or provide the
supplies or services required.
(8) The quality, availability and adaptability of the supplies or services to the particular use
required.
(9) The ability of the bidder to provide future maintenance, repair parts and services for the
use of the supplies purchased.
(10) The number and scope of conditions attached to the bid.
(b) Where a formal competitive bidding procedure is required and the contract is not
awarded to the bidder offering the lowest price, the Purchasing Officer shall prepare and
place on file with the records of such contract a written statement of the reasons for the
award. Such statement shall be open to public inspection.
2-45.095 Recycled paper.
(a) The Purchasing Officer shall establish and maintain procedures and specifications for the
purchase of paper and paper products which give preference, whenever feasible, to the
purchase of recycled paper, and paper products containing recycled paper.
(b) The Purchasing Officer shall purchase recycled paper and paper products, instead of
unrecycled paper and paper products, whenever such recycled paper and paper products are
available at no more than the total cost of unrecycled paper and paper products, and when
fitness and quality are equal.
(c) The Purchasing Officer may provide a preference to the suppliers of recycled paper or
paper products equal to five percent of the lowest bid or price quoted by suppliers offering
unrecycled paper or paper products.
(d) The term "recycled paper," as used in this Section, shall have the same meaning as
defined in Section 10391 of the State Public Contract Code.
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2-45.100 Purchases under $ ! 99 $500.
The purchase of supplies or services having a cost of less than One Five Hundred Dollars
can be made without a purchase order by the Purchasing Officer or other employee of the
City having authorization from the Purchasing Officer to do so. A pe~' z~h 5'..nd zan ~:
2-45.110 Open market purchases.
(a) Purchases of supplies or services having a cost of One Five Hundred Dollars or more but
less than F;.~een Twenty Thousand Dollars may be made in the open market without formal
competitive bidding procedures, if authorized by either the Purchasing Officer or the City
Council as provided in Section 2-45.070 of this Article.
(b) Open market purchases involving a cost of Five Hundred Dollars or more shall,
whenever possible, be based upon at least three informal price quotations and shall be
awarded on the basis of the price quotation most advantageous to the City. The Purchasing
Officer may solicit price quotations either orally or in writing, or may utilize price
information on file with the City or available elsewhere.
2-45.120 Competitive bidding; exceptions.
(a) Except as otherwise provided in Paragraph (b) of this Section, all purchases of supplies or
services involving a cost of F'~een Twenty Thousand Dollars or more shall be made by
contract awarded pursuant to the formal competitive bidding procedure set forth in Section
2-45.130.
(b) A contract for the purchase of supplies or services involving a cost of F'~een Twenty
Thousand Dollars or more may be awarded by the City Council without competitive bidding
in each of the following cases:
(1) Where the City Council determines that the immediate preservation of the public peace,
health or safety requires the purchase to be made without competitive bids;
(2) Where the supply or service required by the City can only be obtained from a single
source;
(3) Where the contract is for specialized or professional services such as, but not limited to,
services rendered by architects, engineers, auditors, attorneys, appraisers, geologists, and
other specialized consultants;
(4) Where the City Council determines that use of the competitive bidding process is
impracticable or impossible, or would not be likely to result in a lower price to the City from
a responsible bidder, or would cause unnecessary expense or delay under the circumstances;
(5) Where the City Council utilizes the request for proposal method of purchase, as set forth
in Section 2-45.140 of this Article.
2-45.130 Formal bidding procedure.
Where formal competitive bidding is required, the following procedure shall be followed:
(a) Notice inviting bids. Notices inviting bids shall include a general description of the
supplies or services to be purchased, the place where bid forms and specifications can be
obtained, the time and place for opening bids, whether a bid deposit or bond will be required,
and whether a performance bond will be required. The notice shall be published at least
once, not less than ten days prior to the date set for final receipt of bids, in a newspaper
having general circulation in the City, and shall be posted at the City Hall location used for
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the posting of legal notices. Notices shall also be sent to persons who have submitted a
written request to the City to be notified of such bidding opportunities, and notices may be
sent at the discretion of the Purchasing Officer to any additional persons.
(b) Bidder's security. When deemed necessary by the Purchasing Officer, bids shall be
accompanied by a bidder's security in the form of a cashiers check, certificate of deposit,
money order, or unconditional and irrevocable letter of credit, payable at sight to the City, or
a surety bond in favor of the City, in such amount as determined by the Purchasing Officer to
be adequate for protection of the City's interests. Bidders shall be entitled to return of their
bid security; provided, however, a successful bidder shall forfeit his bid security upon failure
or refusal to execute a contract within ten days after mailing the notice of award, unless the
City is responsible for the delay. The City Council may, on failure or refusal of the
successful bidder to execute the contract, award it to the next lowest responsible bidder, in
which event, the lowest bidder's security shall be applied by the City first to the difference
between the low bid and the second lowest bid, then toward payment of any other costs,
expenses or damages incurred by the City as a result such failure or refusal, and the balance
of the security, 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 received after the deadline for submitting the
same shall not be accepted and shall be returned to the bidder unopened. The bids shall be
opened in public at the time and place stated in the public notice. All opened bids shall be
available for public inspection during regular business hours from the time of bid opening
until the contract has been awarded by the City Council.
(d) Rejection of bids. If, in the opinion of the City Council, none of the bids is satisfactory,
the Council may reject all bids and either purchase the supplies or services in the open
market or readvertise for new bids.
(e) Award of contract. Except as otherwise provided herein, a contract shall be awarded to
the lowest responsible bidder, taking into consideration the criteria listed in Section 2-45.090
of this Article.
(f) Tie bidsJ If two or more bids received are for the same total amount or unit price, quality
and service being equal, and if a delay for readvertisement would not be in the public
interest, the City Council may accept the bid it chooses or accept the lowest bid made by
negotiation with the tie bidders at the time of the bid opening.
(g) Performance bond. The City Council may require that a performance bond be furnished
before entering into a contract with a successful bidder. The form and amount of such bond
shall be satisfactory to the Purchasing Officer and in compliance with the contract
specifications.
(h) Waiver of irregularities. The City Council may waive any minor irregularities in the bids,
based upon a determination that the same have no material impact upon the bidding process
or other bids submitted.
(i) No bids. If no bids are received in response to the notice inviting bids, the City Council
may proceed to purchase the supplies or services without further competitive bidding.
2-45.140 Request for proposals.
(a) The City Council may utilize the request for proposal method of purchasing supplies or
services upon a determination that competitive bidding is not practical or advantageous to
the City because:
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(1) Quality, capability, performance or qualification is overriding in relation to price; or
(2) Delivery, installation, service, maintenance, reliability or replacement is overriding in
relation to price; or
(3) In the opinion of the City Council, the marketplace will respond better to a solicitation
permitting a range of alternative proposals or evaluation and discussion of proposals before
entering the contract.
(b) Proposals shall be solicited in such manner as directed or approved by the City Council.
The identity of persons responding to the request for proposals and the content of proposals
submitted to the City may be kept confidential during the process of negotiation and until a
contract is awarded.
(c) The request for proposals shall state evaluation factors. Discussions may be conducted
with responsible offerors and revisions to proposals, based upon such discussions, may be
accepted.
(d) The contract award shall be based upon the proposal determined by the City Council to
be most advantageous to the City, taking into consideration price and the evaluation factors
set forth in the request for proposals.
(e) The City Council may reject any and all proposals if such rejection is deemed to be in the
best interests of the City. The Council may thereupon direct that proposals be solicited or
utilize any other purchasing method set forth in this Article.
2-45.150 Inspection and testing.
The Purchasing Officer shall inspect, or cause to be inspected, all deliveries of supplies or
services to determine their conformance to specifications set forth in the purchase order or
contract. The Purchasing Officer shall have the authority to require any tests necessary to
determine quality and conformance with specifications.
2-45.160 Joint purchase with other agencies.
Notwithstanding any other provision of this Article, the Purchasing Officer may issue a joint
purchase order together with any other city, county, or public agency in the State for the
purchase of supplies or services, provided the specifications for such supplies or services
have been approved by the Purchasing Officer if the cost thereof is less than F'~een Twenty
Thousand Dollars, or by the City Council if the cost thereof is Fi~een Twenty Thousand
Dollars or more, and provided further that at least one of the other agencies has solicited or
advertised for bids in a manner similar to the applicable procedures set forth in this Article.
2-45.170 Disposal of personal property.
The Purchasing Officer shall have authority to dispose of personal property of the City
which cannot be used by any department or has become obsolete or worn out. The
disposition may be accomplished by negotiated sale, public auction, exchange or trade in for
other supplies or, upon a determination by the Purchasing Officer that the property has no
commercial value, by abandonment, destruction or donation to a public body or a nonprofit
charitable or civic organization. The disposition of any property having a value of Five
Hmndred Two Thousand Dollars or more shall first be authorized by the City Council.
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