HomeMy Public PortalAboutOrdinance 10-9371
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ORDINANCE NO. 10 -937
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMPLE
CITY, CALIFORNIA, AMENDING CHAPTER 5 [PURCHASING SYSTEM]
OF TITLE 2 [ADMINISTRATION] OF THE TEMPLE CITY MUNICIPAL
CODE RELATING TO THE CITY'S SYSTEM FOR PURCHASING
GOODS, SERVICES, AND EQUIPMENT.
WHEREAS, paragraph C of Section 607 of the City Charter requires the City Council to provide, by
ordinance, for the acquisition of equipment, materials or supplies; and,
WHEREAS, the City Council has provided for such acquisition through Chapter 5 [Purchasing
System] of Title 2 [Administration] of the Municipal Code; and,
WHEREAS, the City has identified two areas of Chapter 5 that must be brought into conformity
with the City Charter and with State law; and,
WHEREAS, in the course of amending the purchasing system to address the two areas of
inconsistency the City undertook a thorough review of the entire Purchasing System and has identified
additional Sections of the System that can be improved to create cost savings and efficiencies for the City;
and,
WHEREAS, the City Council wishes to adopt these improvements to streamline the acquisition
procedures where such streamlining would be beneficial to the City while at the same time maintaining
control over large purchases.
THE CITY COUNCIL OF THE CITY OF TEMPLE CITY HEREBY ORDAINS AS FOLLOWS:
SECTION 1: Chapter 5 [Purchasing System] of Title 2 [Administration] of the Municipal Code of the
City of Temple City is hereby amended to read in its entirety as follows:
2500: Adoption of Purchasing System
In order to establish efficient procedures for the purchase of supplies, services and equipment, to
secure for the city supplies, services and equipment at the lowest possible cost commensurate
with quality needed, 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. All purchases or services or supplies for "public projects" as defined in Section
20161 of the Public Contract Code (or any successor to that Section) shall be made in
accordance with the Public Contract Code and with sections 2515 and 2517, as applicable, of this
Chapter. All other purchases of supplies, services and equipment shall be made in accordance
with this Chapter.
2501: Centralized Purchasing Department
There is hereby created a centralized purchasing department in which is vested authority for the
purchase of supplies, services and equipment.
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2502: Purchasing Officer
There is hereby created the office of purchasing officer, who shall be appointed 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, service and equipment required by any using department 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 governing 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 necessary 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 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 city use; and
K. Maintain a bidder's list, vendor's catalog file and records needed for the efficient operation of
the purchasing department.
2503: Estimates Of Requirements
All departments using the purchasing department shall file detailed estimates of their
requirements in supplies, service and equipment in such manner, at such time, and for such
future periods as the purchasing officer shall prescribe.
2504: 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 in the fund
account against which said purchase is to be charged.
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2505: Requisitions
Using departments shall submit requests for supplies, services and equipment to the purchasing
officer by standard requisition forms.
2506: Purchase Orders
Purchases of supplies, services and equipment shall be made only by purchase order or, where
appropriate, by formal written contract.
2507: Exemptions from Centralized Purchasing
The purchasing officer, with approval of the city council, may authorize in writing any department
to purchase or contract for specified supplies, services and equipment independently of the
purchasing department; but shall require that such purchases or contracts be made in conformity
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.
2508: Cooperative Purchasing Agreements
(a) Without complying with the requirements of sections 2510 and 2511, the purchasing officer
may participate in a cooperative purchasing agreement for the procurement of any supplies or
equipment with any federal, state, county or local government agency when that agency has made
their purchases in a competitive manner. The purchasing officer may participate in a cooperative
purchasing agreement when the city can obtain supplies or equipment at a purchase price lower
than that which the city can obtain through its normal purchasing procedures. In those instances
where it is determined that purchasing through the federal, state, county or local government
agencies will result in savings to the city, the purchasing officer is authorized to make such
purchases.
(b) The purchasing officer may also buy directly from a vendor at a price established by
competitive bidding by another federal, state, county or local government agency in substantial
compliance with sections 2510 and 2511 even if the city has not joined with that public agency in a
cooperative purchase agreement.
2509: Open Market Procedure
Purchases of supplies, equipment, or services and sales of personal property of an estimated
value in an amount more than five thousand dollars ($5,000) but less than twenty five thousand
dollars ($25,000.00) may be made by the purchasing officer in the open market without observing
the procedure prescribed in section 2511 of this chapter. Purchase orders shall, whenever
possible, be based on at least three informal quotes.
2510: Bidding
Purchases of supplies, services, or equipment and the sale of personal property of an estimated
value in excess of twenty five thousand dollars ($25,000.00) shall be by bid procedures pursuant
to sections 2510 and 2511 of this chapter. Bidding shall be dispensed with only when an
emergency requires that an order be placed with the nearest available source of supply, when the
city council by a four - fifths (4/5) majority determines after opening of bids that rejection of all bids
and purchase on the open market will best serve the city, or when the commodity can be obtained
from only one vendor.
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2511: Formal Contract Procedure
Except as otherwise provided herein, purchases and contracts for supplies, services, equipment
and the sale of personal property of estimated value greater than twenty five thousand dollars
($25,000.00) shall be by purchase order or written contract with the lowest (or for purposes of
Section 2516 of this Chapter, highest) responsible bidder, as the case may be, pursuant to the
procedure prescribed; 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 (10) days before the
date of opening of the bids. Notice shall be published at least once in a newspaper of general
circulation, printed and published in the city, or if there is none, it shall be posted in at least
three (3) public places in the city that have been designated by ordinance as the places for
posting notices.
2. Bidder's 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.
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 purchasing 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 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 notices. A tabulation of all bids received shall be opened 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 reject any and all bids presented and
readvertise for bids;
E. 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. For
purchases of supplies and equipment, determination of the "lowest responsible bidder" may
include the adjustment of the bid price of a qualifying local vendor (as defined in subsection
2517(B)(1) below) according to the local vendor preference procedures described in
subsection 2517(B)(3) below. For purposes of this section, a responsible bidder means a
bidder who has demonstrated the quality, fitness, capacity, and experience to satisfactorily
perform the particular requirements of the city.]
F. Tie Bids: If two (2) 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,
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the city council may accept the one it chooses or accept the lowest bid made by negotiation
with the tie bidders at the time of the bid opening;
G. Performance Bonds: The city council shall have authority to require a performance bond before
entering into a contract in such amount as it shall find reasonably 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 described in the notice inviting bids.
2512: Inspection and Testing
The purchasing officer shall inspect supplies and equipment delivered and contractual services
performed, to determine their conformance with the specifications set forth in the order or
contract. The purchasing officer shall have authority to require chemical and physical tests of
sample submitted with bids and samples of deliveries which are necessary to determine their
quality and conformance with specifications.
2513: Professional services.
The city;manager shall sign all professional service contracts on behalf of the city. Professional
services�contracts will be prepared in accordance with the city's standard Consultants Services
Agreement. The process for securing professional services will be through negotiation or through
request for proposal subject to the contract value limitations of sections 2509 and 2510 of this
chapter:
2514: Emergency Purchases
During times of emergency, as concurred in by the city council or the city manager, mayor and city
attorney, purchases necessary to meet such emergency may be made without compliance with
this chapter.
2515: Design /Build Contracts
Whenever the city seeks to construct any public work, other than transportation facilities, with design
and construction costs in excess of one million dollars ($1,000,000.00), the city council may proceed
to contract therefor as a design /build project in compliance with California Public Contracts Code
Section 20175.2, as amended, or any later enacted statute regulating design /build contracts.
2516: Surplus Supplies 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 out. The purchasing 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 2509, 2510 and 2511 of this chapter, as applicable.
2517. Local vendor preference program.
A. The city has established a local vendor preference program to be applied in the procurement
of supplies and equipment under Section 2511 of this chapter.
B. The adjustment to bids provided for under the local vendor preference program shall be
implemented according to the following:
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1. Qualification for local vendor preference. In the procurement of supplies and equipment
for the city's requirements, preference shall be given to those vendors who (i) qualify as a
local vendor ( "qualifying local vendor") under this subdivision and (ii) submit a written
statement in their bid package requesting to be considered a qualifying local vendor. In
order to qualify as a local vendor, the bidder must certify the following information as part
of the bid package:
a. It has fixed facilities with employees located within the city limits;
b. It has a business street address (post office box or residential a address shall not
suffice to establish a local presence);
c. All sales tax returns for the goods purchased must be reported to the state through a
business within the geographic boundaries of the city; and
d. It has a city business license.
2. False certifications. False certifications shall be immediate grounds for rejection of any
bid or if the bid is awarded, grounds for voiding the bid, terminating any agreement, and
seeking damages thereto. Failure to certify the above information shall result in the bid
being considered by the city without any adjustment for a local vendor as described in
subsection 2511(H)(c) below.
3. Application of local vendor preference. The bid of a qualifying local vendor shall be
adjusted according to the following procedures:
a. In the tabulation of bids to determine the lowest responsible bidder, the bid of each
qualifying local vendor shall be reduced by five percent.
b. The reduced bid price of the qualifying local vendor will then be compared to the other
bids received by the city to determine the lowest responsible bidder under section
2511. Notwithstanding this reduction for purposes of determining the lowest
responsible bidder, the contract amount with the lowest responsible bidder shall be at
the bid price.
SECTION 2: The City Council hereby declares that, should any provision, section, subsection,
paragraph, sentence, clause, phrase, or word of this Ordinance or any part thereof, be rendered or declared
invalid or unconstitutional by any final court action in a court of competent jurisdiction or by reason of any
preemptive legislation, such decision or action shall not affect the validity of the remaining section or portions
of the Ordinance or part thereof. The City Council hereby declares that it would have independently adopted
the remaining provisions, sections, subsections, paragraphs, sentences, clauses, phrases, or words of this
Ordinance irrespective of the fact that any one or more provisions,' sections, subsections, paragraphs,
sentences, clauses, phrases, or words may be declared invalid or unconstitutional.
SECTION 3: The City Clerk shall certify to the passage and adoption of this Ordinance and to its
approval by the Mayor and shall cause the same to be published according to law.
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PASSED, APPROVED, AND ADOPTED this 7th day of September 2010.
ATTEST:
City CI
MAYOR
APPROVED AS TO FORM:
I, Mary Flandrick, City Clerk of the City of Temple City, hereby certify that the foregoing Ordinance
No. 10 -937 was introduced at the regular meeting of the City Council of the City of Temple City held on the
17th day of August 2010, and was duly passed, approved and adopted by said Council at the regular meeting
held on September 7, 2010 by the following vote:
AYES: Councilmember -Blum, Sternquist, Yu, Chavez, Vizcarra
NOES: Councilmember -None
ABSENT: Councilmember -None
ABSTAIN: Councilmember -None
City CI k
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