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HomeMy Public PortalAboutOrdinance 60-03 Regulations and Procedures for purchase and sale of supplies, services and equipmentORDINANCE NO, 60 -3 ,AN ORDINANCE OF THE CITY OF TEMPLE CITY AMEND - ING THE MUNICIPAL CODE BY PROVIDING REGULATIONS AND PROCEDURES FOR THE PURCHASE AND SALE OF SUPPLIES, ,SERVICES AND EQUIPMENT, THE CITY COUNCIL OF THE CITY OF TEMPLE CITY DOES ORDAIN AS FOLLOWS: :SECTION 1: AMENDING MUNICIPAL CODE Chapter 5 is added to Article 11 of, the Temple City Muni- cipal Code, the sections of which shall read as follows: "CHAPTER 5 = PURCHASING SYSTEM. Section 2600. Adoption of Purchasing System. In order to establish efficient procedures for the . purchase of supplies, serv- ,ices and equipment, to secure for the City supplies, services and equipment at. the :lowest possible cost commensurate with quality need- ed, to exercise positive financial control over purchases,to clearly define authority for the purchasing function and to assure the quali- ty`of purchases, a purchasing system is hereby adopted. Section 2601. Centralized Purchasing Department. There is hereby created a centralized,Purchasing Department in which is vested authority for the purchase of supplies, services and equipment. Section 2602. Purchasing Officer. There is hereby created the office,of Purchasing Officer, who shall be, or shall be appoint- ed by, the City Manager. The Purchasing Officer shall be the head, and have general supervision of, the. Purchasing Department. The Purchasing Officer shall have authority to: (a) Purchase or contract for supplies, services and equip - ment.required by any,using agency 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 Department 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 govern - ing the purchase ,of /supplies, services and equipment for the City. (f) Prepare and recommend to the City Council revisions and amendments 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 neces- sary to the operation of this Chapter 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 7 ORDINANCE_ NO. 60 -3 page 2 and equipment between departments as needed and the sale of all supplies and equipment which .cannot be used by any agency,or which have become unsuitable for City use. (k) .Maintain a Bidders' List, Vendor's Catalog file and records needed for the efficient operation of the Purchasing;Department. Section 2603. Exemptions from Centralized Purchasing.The Purchasing Officer, with approval of the City Council, may authorize in writing any agency to purchase or contract for specified supplies, services and equipment independently: of the Purchasing .Department; but.he shall require that such purchases or contracts be made .in .con- formity with the procedures established by this Chapter, and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization. Section 2604. Estimates of Requirements. All using agencies shall file: detailed estimates of . their requirements in supplies, services and equipment in such-manner, at such time, and for such future periods as the Purchasing Officer shall prescribe. Section 2605. Requisitions. Using agencies shall submit requests for supplies, services and equipment to the Purchasing Officer by standard_ requisition forms. Section 2606. Bidding. Purchases of supplies, services, equipment and the . sale,of. personal .property .shall be by bid proced- ures pursuant to Sections 2609 and 2610. Bidding shall 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 $100 or when the commodity can be obtained from only one vendor. Section 2607. Purchase Orders. Purchases of supplies, services and equipment shall be made.onl'y by purchase order. Section 2608. Encumbrance of Funds. Except in cases of emergency, the .Pu'rchasing,Officer shall not . issue any purchase order for supplies, services or equipment unless there exists an unencumber- ed appropriation in the fund account against which said purchase is to be charged. Section 2609. Formal Contract. Procedure, Except as other- wise provided-herein, purchases and .contracts for supplies, services, equipment and the sale of personal.property'of estimated value greater than $2,000. shall be.by written contract with the lowest or highest responsible bidder, as the case may be, pursuant to the procedure pre- scribed 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 opening bids. (1) Published Notice. Notice inviting bids shall be published at least ten days before the date of opening of the .bids. Notice shall be published at least . once in a newspaper of general circula- tion, printed and published the City, or if there is none, it shall be posted in at least three, public places in the City that have been designated by;ordlnance .as the places for posting notices. (2) Bidders' List. The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose .names are on the Bidders' List or who have requested their names added thereto. 8 ORDINANCE NO. 60 -3 page 3 (3) Bulletin•Board. The Purchasing_Officer shall also advertise.pending purchases or sales by a notice posted on .a public.bulletin board.in the City Hall. (b) ;Bidder's Security. When deemed necessary by the Pur- chasing.Officer, bidder's security.may'be prescribed in the public notices inviting bids. 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 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 ,C i ty,' to the .dif- ference-between •the.lowloid 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.sub- mitted to the .Purchasing Officer and shall be iden- tified as bids on the envelope. Bids shall be open- ed in public at the,time, and ,place stated in the public notices. 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 Coun- cil may reject any and all bids presented and re- advertise for bids. ) Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder, who meets the quality requirements. The decision of the City Council shall be_ final. (f) The 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 re-advertising for bids, the City, Council may accept :the- oneit - chooses or accept the lowest bid mode by negotiation with..the:tie bidders at the time of the bid. opening. (g) Performance Bonds. The City Council shall have auth- ority to require a performance bond before entering into a contract in such amount as it shall find.re- asonably necessary to protect the best interests of the City. If. the .City Council requires a performance bond, the form and amount of the bond shall be des- cribed in the notice inviting bids. Section 2610. Open Market Procedure. Purchases of supplies, equipment, contractual services and sales of personal property,of an estimated value in the amount of $2,000 or less may be made by the Purchasing Officer in the open-market without observing the procedure prescsibed by Section 2609. (a) Minimum Number of Bids. Ooen.market purchases shall, wherever possible, be based on at least three bids and shall be awarded to the lowest responsible bidder, who meets the quality requirements. 9 ORDINANCE NO. 60 -3 page 4 (b) Notice Inviting Bids. Purchasing Officer shall so- licit bids by written requests to prospective ven- dors, 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 ofone year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection. Section 2611. Inspection and Testing. The Purchasing officer shall inspect supplies and equipment delivered, and contract- ual services performed, to determine their conformance with the speci- fications set forth in the order or contract. The Purchasing Offi- cer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necess- ary to determine their quality and conformance with specifications. Section .2612. Surplus Supelies and Equipment. All using agencies shall submit to the Purchasing Officer at such times 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 cut. The.Purchasing,Officer shall have authority to sellal1 sup- plies and equipment which are .no longer used or which .. have become ob- solete or worn out. The Putchasing Officer shall have authority to sell all supplies and equipment which cannot be used by any agency 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 Sections 2609 and 2610, whichever is applicable." PASSED AND ADOPTED by the .City Council of the City of Temple City this llth:day of July, 1960, by the following called _vote: AYES: Councilmen Buchan, Dickason, Merritt, Tyrell &.Fitzjohn NOES: Councilmen -None ABSENT: Councilmen -None. ATTEST: City C Ierk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF TEMPLE CITY ) I, Marjorie A. Woodruff, do hereby certify that I have been duly appointed Deputy City Clerk of the City of Temple City, California, and that the foregoing Ordinance No. 60 -3 was adopted at a regular meeting of the City Council held on July 11, 1960, by the following roll call vote: AYES: Councilmen - Buchan, Dickason, Merritt, Tyrell, Fitzjohn NOES: Councilmen -None ABSENT: Councilmen -None Mayor �!� Dated: July 11, 1960 Deputy ity Clerk of the Cif of Templ City, California 10 ii Ci¢) of TEMPLE CITY AGREEMENT FOR STATE ADMINISTRATION OF LOCAL SALES AND USE TAXES To carry out Part 1.5 of Division 2 of the Revenue and Taxation Code and the sales and use tax ordinance of the City hereinabove designated, hereinafter called the City, copy of which ordinance is attached hereto, the City and the State Board of Equalization, hereinafter called the Board, do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in this Agreement they shall be interpreted to mean the following: 1. "Local Taxes" shall mean the sales and use taxes, penalties, and interest imposed by the City under an ordinance which complies with Part 1.5, Division 2, of the Revenue and Taxation Code. 2. "Conforming Taxing Juriodiction" shall mean any county, city, or city and county of this State which has adopted a sales and use tax ordinance of the kind described in Part 1.5 of Division 2 of the Revenue and Taxation Code and which has entered into a contract with the State Board of Equalization to perform all function@ incident to the administration and operation of the ordinance. 3. °'City Ordinance" shall mean the Uniform City Sales and Use Tax Ordinance at- tached hereto, as amended from time to time. ARTICLE 1111 ADMINISTRATION AND COLLECTION OF LOCAL TAXES A. Administration. The I:.. and and the City agree that the Board shall perform ex- clusively all functions incident to the ad iniatation cnnd operation of the City ordinance. B. Other applicable la o. The City agree@ that all provisions of law applicable tq the administration and operation of the State Sal 60 and Use Tax Law shall be applicable to the administration and operation of the City ordinance , d that money collected pursuant to the City ordinance may be de..sited in the State Trecsuty to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for the puree of making refunds, for the purpose of compensating and reimbursing the I: a• and pursuant to Article DPI of this Agreement and for the purpose of trans- mitting to the City the amount to which the City is entitled. C. Transmittal of money. Ezcer.,c ao of wire provided herein, all local taxes collected under the provisions of the CityenrdnrivancQ shrill be ¢rmn ®assisted to the City periodically as prompt- ly as feasible. A irtatemeaes obeli be kVA@ , d i iceatieg the amount withheld pursuant to Article Pi of thia Agreement. D. Rules. The G:;.surd ahall prescribe © t ouch rules and regulations as in its judgment are necessary or desire isle for the a'.. inietrntion and operation of the City ordinance and the distribution of the local gazes collected thereunder. 8-627 MEV. 2 (4-60i E. Preference. l)nless the payor instructs otherwise and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for sales and use taxes owed by a taxpayer but shall apply all monies collected to the satisfaction of the claims of the State and the claims of the City as their interests appear. F. Security. The Board agrees that any security which it hereafter requires to be fur- nished under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of the City for local taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it and the City shall not participate in any security now held by the Board. G. Names of sellers. The Board agrees to furnish the names, addresses, account num- bers, and the business classification codes of all sellers holding sellers' permits within the City. H. Records of the Board. Subject to executive approval under Section 7056 of the Reve- nue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records and procedures of the Board concerning taxpayers subject to the City ordinance. • I. City tax rate. The City agrees that any change in the rate of its conforming local sales and use tax will be made effective at tl }e beginning of a calendar quarter and that it will give the Board at least two months' notice thereof and that it will also give notice to the Board! of Supervisors of the County in which the City lies. J. Annexation. The City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting and distributing city sales and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include the address of the property nearest to the extended city boundary on every street crossing that boundary. ARTICLE III ALLOCATION OF TAX A. Deficiency determination. All local taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective conforming taxing jurisdictions in the same ratio as the taxpayer's self- declared local tax for the period for which the determination, billing, refund, or credit applies. Allocation. When the local tax is collected from or refunded or credited to the following: (1) Retailers having traveling sellers' permits or certificates of authority to collect use tax issued by the Board; (2) Persons regarded by the Board as retailers pursuant to Section 6015 of the Reve- nue and Taxation Code; (3) Persons for whore no continuing account number was active at the date of pay- ment; or (4) Other retailers or purchasers having no permanent place of business within the State as determined by the Board; s -aa7 REV. 2 14 -99) 2 or when the local tax is collected by way of deduction from refunds of motor vehicle fuel license taxes, the Board may distribute or charge such local tax to all conforming taxing jurisdictions in the county in which the sale or use occurred using the ratios reflected by the distribution of taxes collected from all other taxpayers in that county. To the extent that this cannot be done in a manner consistent with the economic and efficient performance of the duties of the Board under the Revenue and Taxation Code and the provisions of this Agreement, the Board may dis- tribute or charge such local tax to all conforming taxing jurisdictions of this State using the ratios reflected by the distribution of taxes collected from all other taxpayers in the State. C. Motor 'Vehicles. For the purposes of the foregoing allocation with respect to vehi- cles required to be registered, under the Vehicle Code, the address of the registered owner appearing upon the application for registration may be used by the Board in determining the county of use. ARTICLE IV COMPENSATION A. :Numerator. The cost of administering Parts 1 and 1.5 of Division 2 of the Revenue and Taxation Code and the conforming local sales and use tax ordinances for each fiscal year shall be determined in the manner herein set forth. Such cost shall include costs incurred by the Board and by other State agencies, including but not limited to the Attorney General, the State Controller, the State Personnel Board, the State Treasurer, and the Department of Finance. Such cost is referred to as "the administrative cost ". B. Denominator. The amounts transferred during each fiscal year from the Retail Sales Tax Fund to conforming taxing jurisdictions and to the General Fund of the State, pursuant to Section 7102 of the Revenue and Taxation Code, together with amounts withheld pursuant to this Article of this Agreement, shall be determined. Such amounts are referred to as "lhie tax distributed ". C. Ratio. The administrative cost for the fiscal year shall be compared to the tax dis- tributed during the fiscal year and a percentage computed. Such percentage shall be rounded off to the nearest one hundredth of one percent. This percentage is referred to as "the actual cost percentage" for the fiscal year. The actual cost percentage computed for the most recent fiscal year is referred to as "the tentative cost percentage ". D. Compensation. From the amounts otherwise available for distribution to the City during a fiscal year, the Board is entitled to the actual cost percentage of such amounts as compensation to the Board and reimbursement to it for the cost of rendering the service of ad- ministering the City ordinance. There shall be withheld from amounts collected for the City the tentative cost percentage of such amounts. When the actual cost percentage for a fiscal year has been computed, the amounts which should have been withheld shall be determined. If these amounts are less than those withheld using a tentative cost percentage, the excess shall be included in the next distribution of money to the City; if more, the deficiency shall be withheld from the next distribution to the City. E. Computation and notification. The costs and percentages required by this Article shall be computed by the Board and approved by the Department of Finance. The Board will notify the City of the results of its computations at least fifteen days before they are submitted to the Department of Finance for approval. 5 -527 REV. 2 14 -99) 3 i ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first -class United States Mail. A notification is complete when deposited in the mail. Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization Sacramento 8, California Attention: Secretary Communications and notices to be sent to the City shall be addressed to: TEMPLE CITY CITY HALL 9664 IBS TUNAS jfftjV:>; ' , TEtv;PLE CITY, CALIF. B. Term. The date of this Agreement is the date on which it is approved by the State Department of Finance. The Agreement shall take effect on the first day of the calendar quarter next succeeding the date of such approval, but in no case before the operative date of the City ordinance, nor on a day other than the first day of a calendar quarter. This Agreement shall continue until September 30 next following the operative date of the City ordinance, and shall thereafter be renewed automatically from year to year unless one of the parties gives written notice of termination at least two months before the end of the term. DEPARTMENT OF FINANCE APPROVE JUN 2 i960 1) JOH AR Director BY STATE BOARD OF EQUALIZATION By Secretary CITY OF TEliPbE CITY B y. S-527 REV. 2 (4 -59) ri��ry "4 /• f® rx tea# 4/ (Type name h.r ®1 4- (Type title here) R IMPORTANT INSTRUCTIONS 1. Insert name of the City at top of page 1; insert address for communications and notices to City in Section A, Article V. 2. Sign five copies of the Agreement, sending all of them to the Secretary, State Board of Equalization, Sacramento 8, California. (If the City desires to keep a file copy of the Agreement, an additional copy should be prepared for that purpose.) 3. Attach to each copy of the Agreement sent to the Board, a certified copy of the City Sales and Use Tax Ordinance. also attach to each copy a certified copy of the order, motion or resolution of the City Council authorizing the execution of the Agreement. Explanation When an Agreement is transmitted in accordance with the foregoing instructions, it will be executed on behalf of the Board and submitted to the State Department of Finance for approval. When approved, one copy will be returned to the City with endorsement of approval. Yf a copy has been retained by the City, it may then be conformed to the approved copy. S-527 REV. 2 (4 -99) S