HomeMy WebLinkAboutOrdinance 332 - Amending Purchasing SystemORDINANCE NO. 332
AN ORDINANCE AMENDING SARATOGA CITY CODE:
ARTICLE 2-45: PURCHASING SYSTEM
THE CITY COUNCIL OF THE CITY OF SARATOGA HEREBY ORDAINS AS FOLLOWS:
Findings
1. The City Council of the City of Saratoga wishes to refine the City's Purchasing System to
include explicit definitions, exclusions, and authority that reflect and are consistent with
the City's common and longstanding operational procedures.
2. The City Council of the City of Saratoga held a duly noticed public hearing on September
16, 2015, and after considering all testimony and written materials provided in
connection with that hearing introduced this ordinance and waived the reading thereof.
Therefore, the City Council hereby ordains as follows:
Section 1. Adoption.
The Saratoga City Code is hereby amended by the amending Section 2-45 as set forth in
Attachment 1. Text to be added is indicated in bold double -underlined font (e.g., bold double -
underlined) and text to be deleted is indicated in strikeout font (e.g., stfik t). Text in standard
font is readopted by this ordinance. Text in italics (e.g., italics) is descriptive only and is not part
of the amendments to the City Code.
Section 2. Severance Clause.
The City Council declares that each section, sub -section, paragraph, sub -paragraph, sentence,
clause and phrase of this ordinance is severable and independent of every other section, sub-
section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance. If any section,
sub -section, paragraph, sub -paragraph, sentence, clause or phrase of this ordinance is held
invalid, the City Council declares that it would have adopted the remaining provisions of this
ordinance irrespective of the portion held invalid, and further declares its express intent that the
remaining portions of this ordinance should remain in effect after the invalid portion has been
eliminated.
Section 3. California Environmental Quality Act
The proposed amendments and additions to the City Code are Categorically Exempt from the
California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section
15061(b)(3). CEQA applies only to projects which have the potential of causing a significant
effect on the environment. Where it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment, the activity is not subject
to CEQA. In this circumstance the amendments to the existing City Code concern internal
purchasing policies for supplies and services and does not itself authorize any specific purchase
of any kind therefore avoiding any possibility that it could have any impact on the environment.
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Section 4. Publication.
A summary of this ordinance shall be published in a newspaper of general circulation of the City
of Saratoga within fifteen days after its adoption.
Following a duly noticed public hearing the foregoing ordinance was introduced at the regular
meeting of the City Council of the City of Saratoga held on the 16th day of September 2015 and
was adopted by the following vote on October 7, 2015.
COUNCIL MEMBERS:
AYES: Mayor Howard A. Miller, Vice Mayor Manny Cappello, Council Member Emily Lo, Mary -
Lynne Bernald, Rishi Kumar
NOES:
ABSENT:
ABSTAIN:
ATTEST:
ie Bretschneider, ACTING
CITY CLERK
APPROVED AS TO FORM:
•
Richard Taylor, CITY ATTORNEY
Howard A. Miller
MAYOR, CITY OF SARATOGA, CALIFORNIA
DATE: /0//i72,0
DATE:
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Attachment 1
Amendments to Article 2-45 - PURCHASING SYSTEM of the Saratoga City Code
2-45.010 - Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies and services
at the most competitive price 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.
(Ord. 199 § 1 (part), 2000)
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.
Cost includes amounts expended for delivery, set-up, testing, and included
maintenance services.
(d) Department Director refers to a person designated as such by the Purchasing
Officer.
(e) Internal Service Funds means accounting funds used to accrue cost recovery
funding for program charges, services, vehicles, equipment and other assets
provided to City Departments.
(f) Performance Bond means a financial commitment issued by, or on behalf of,
the performing party of a contract in form and content approved by the City as
a guarantee against the failure to meet obligations specified in the contract.
(g) Purchasing Agent means any person authorized by the Purchasing Officer to seek
formal or informal bids for the sale of supplies or services to the City.
(h) Purchase Order - means a written agreement from the City to a named vendor
for the purchase of supplies or services at agreed upon product or service
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specifications and cost. A purchase order is created after a purchase request
is approved, entered into the financial system to reserve budget funding, and
signed by the Purchasing Officer or authorized Department Director.
includes all materials, supplies, equipment, products, and
other items of tangible personal property.
(h) Services means and includes labor, professional services and consulting
services. Services shall not include incidental labor such as set-up, testing, and
maintenance of supplies where the primary purpose is to purchase the supplies.
(i) Supplies refers to and includes all goods, materials, supplies, vehicles,
equipment, facility fixtures, products, and other items of tangible personal
property. May include incidental labor for set-up, testing, or maintenance
included with such supplies.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.030 - Exclusions from Article.
The provisions of this Article shall not apply to any of the following: The
Purchasing Officer's procurement of supplies and services in excess of
twenty-five thousand dollars must be approved or awarded by the City
Council with the exclusion of the following which are not subject to the
provisions of this Article except as specified in section 2-45.070(c)
(a) Tho award of cContracts 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 cContracts 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 and contracts for services to temporarily fill a budgeted position or
perform temporary work when the need for temporary services arises.
(f) The purchase of insurance, including coverage provided by any self-insurance
pool in which the City is a participant.
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(a) Legal services and experts retained by legal counsel approved by the City
Council in the adopted budget, by contract, or by direction in City Council
meetings.
{gh� 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.
.(Mi) 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.
Li) 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.
Lk) Contracts for supplies or services to be furnished by any other public agency.
(I) 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.
(m) Payments for City grants and other support of community events and
services as a • • roved b the Cit Council in the ado •ted bud • et b
contract, or by direction in City Council meetings.
(n) Replacement vehicles, equipment, technology and facility furniture and
fixtures within the Internal Service Funds, as authorized by the City
Council in the adopted budget.
(o) The purchase of supplies or services made in connection with an
emergency described in Article 6-05 of this Code. In such instances, the
Purchasing Officer shall submit to the City Council at its next succeeding
meeting occurring at least three days following the expenditure a written
report describing the circumstances of the emergency, the supplies or
services purchased, and the cost thereof. A separate Emergency
Purchasing Policy shall apply in connection with said emergency.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
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 alt supplies and services needed by
the City, in accordance with the procedures prescribed in this Article and any
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administrative policies and procedures 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.
Establish or supervise the establishment of specifications for supplies and
services required by the City.
(4) Inspect or supervise the inspection of all supplies purchased by the City to
insure quality, quantity and conformance with the specifications therefor.
Prepare and adopt administrative policies and procedures 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 purchasing agent to
investigate, solicit bids, or negotiate the purchase or award of contracts for 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 policies and procedures pertaining thereto.
(3)
(5)
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.050 - Purchase orders.
The Purchasing Officer shall define purchase order procedures for the purchase of
goods supplies or services, including the amount above which a purchase order will be
required.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
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 sufficient unencumbered
appropriations in the fund account against which such purchase is to be charged.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.070 - Authorization for purchase orders and contracts; a e+es.
(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 twenty-
five thousand dollars. The Purchasin • Officer ma dele • ate this authorit to
Department Directors subject to such administrative policies and procedures
as may be adopted by the Purchasing Officer.
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(b) Contracts or purchase orders for supplies or services involving a cost in excess of
twenty-five thousand dollars must be approved or awarded by the City Council,
unless approved pursuant to procedures specified as exempt from this Article
under section 2-45.030 Exclusions from Article, above.
(c) Notwithstanding subsections (a) and (b) of this Section or any other provision of this
circumstances of the emergency, the supplies or services purchased, and the cost
thereof.
(c) The Purchasing Officer is authorized to approve payment for authorized
•urchases. This includes •a ments above the basic 25 000 Purchasin•
Officer limit as noted under 2-45.030, and for all other contract and payments
approved by the City Council including payments for purchases not otherwise
subject to this Article. In turn, the Purchasing Officer may delegate this
authority to Department Directors for payments in connection with purchases
initiated by their respective departments.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.080 - Repealed.
(Ord. 251 § 2 (part), 2007)
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.
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(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.
_(Ord. 199 § 1 (part), 2000)
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.
(Ord. 199 § 1 (part), 2000)
2-45.100 - Repealed.
(Ord. 251 § 2 (part), 2007)
2-45.110 - Open market purchases.
Purchases of supplies or services having a cost of twenty-five thousand dollars or
less may be made in the open market with informal bidding procedures. Whenever
practicable at least three informal price quotations will be obtained and purchases shall
be awarded on the basis of the price quotation most advantageous to the City.
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Purchasing Agents may solicit price quotations either orally or in writing, or may utilize
price information on file with the City or available elsewhere. The Purchasing Officer
shall establish policies and procedures for seeking informal bids.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.120 - Competitive bidding; exceptions.
(a) Except as otherwise provided in subsection (b) of this Section, all purchases of
supplies or services involving a cost exceeding twenty-five thousand dollars 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 exceeding
twenty-five thousand dollars 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.
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.
Where the City makes use of the GSA Schedule or makes use of another
government's purchasing agreements or bid prices, in lieu of competitive bids, if
the City Council determines that the other city, county, or public agency's
purchasing agreements or bid prices are established under similar competitive
bidding procedures.
(6) Where the City Council utilizes the request for proposal method of purchase, as
set forth in Section 2-45.140 of this Article.
(3)
(5)
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.130 - Formal bidding procedure.
Where formal competitive bidding is required, the following procedure shall be
followed:
(a) Bid requests. Bid requests shall include a general description of the supplies or
services to be purchased and the place where bid specifications can be
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obtained. Bid requests shall be posted at the City Hall location used for the
posting of legal notices. The Purchasing Officer may also post the notice on the
City's website and any other websites or publications, as appropriate.
(b) Bid review. Bids shall be submitted in writing to authorized Purchasing Agents
in the manner specified by the Purchasing Officer. All bids shall be available for
public inspection during regular business hours from the commencement of bid
review until the contract has been awarded by the City Council.
(c) Rejection of bids. If, in the opinion of the City Council, none of the bids are
satisfactory, the Council may reject all bids and either purchase the supplies or
services in the open market or readvertise for new bids.
(d) 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.
(e) Tie bids. 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.
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.
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.
(h) 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.
(f)
(g)
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
2-45.140 - Request for Proposals.
(a) In lieu of formal bidding, 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:
(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.
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This • rocess is t icall used for selectin • consultants and for the
procurement of technology related projects where there may be a number of
options and the City is looking to obtain different scenarios to choose from.
(b) 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 format and procedures for Requests for Proposals shall be established by the
Purchasing Officer.
(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.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
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.
(Ord. 199 § 1 (part), 2000)
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 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 up to
twenty-five thousand dollars, or by the City Council if the cost thereof exceeds twenty-
five thousand dollars, and provided further that the Purchasing Officer or City Council,
as applicable, determines 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.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
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
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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 thousand dollars or more shall first be authorized by the City Council.
(Ord. 199 § 1 (part), 2000; Ord. 251 § 2 (part), 2007)
703145.2
703145.4
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