HomeMy WebLinkAbout06 ORDINANCE NO. 1438 - CITY PURCHASING SYSTEMMEETING DATE: DECEMBER 17, 2013
TO: JEFFREY C. PARKER, CITY MANAGER
FROM: PAMELA ARENDS -KING, FINANCE DIRECTOR /CITY TREASURER
SUBJECT: ORDINANCE NO. 1438, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2 OF THE TUSTIN CITY
CODE REGARDING THE CITY PURCHASING SYSTEM
SUMMARY:
Ordinance No. 1438 amends Part 2 of Chapter 6 of Article 1 of the Tustin City Code to satisfy a
management comment finding in relation to the City's June 30, 2012 independent audit and to
provide staff with a purchasing section of the Tustin City Code that is relevant and provides clear
guidance.
RECOMMENDATION:
That the City Council introduce and have the first reading of Ordinance No. 1438; and, set the
second reading at the Council's next scheduled meeting.
FISCAL IMPACT:
The fiscal impact will be to provide staff the guidance when making purchases that require due
diligence and provide the opportunity for the City to receive the best possible pricing for goods and
materials.
CORRELATION TO THE STRATEGIC PLAN:
The recommendation correlates to the City's strategic plan by implementing Goal C, item number
three to develop and communicate a comprehensive set of financial policies and their purpose to
strengthen financial practices.
BACKGROUND:
The City received a management comment finding in relation to the City's June 30, 2012
independent audit stating that the City did not have a formal purchasing policy and recommended
that the City adopt a formal purchasing policy that will give guidance on the following items:
• Employees authorized to approve purchases
• Use of purchase orders
• Limits or thresholds on various levels of purchases
• Informal and formal bidding requirements
Staff reviewed Article 1, Chapter 6, Part 2 of the Tustin City Code (Purchasing Code) and
determined the Purchasing Code did not give guidance to the items listed in the management
comment finding and that the Purchasing Code included definitions that are no longer pertinent.
ORDINANCE NO. 1438, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2 OF THE
TUSTIN CITY CODE REGARDING THE CITY PURCHASING SYSTEM
December 17, 2013 Page 2 of 5
The Purchasing Code also included sections such as purchase requisitions that the City does not
use and vague language especially in the areas of professional services and public projects. Upon
discussions with staff it was determined that staff was confused in regards to what pertained to
public contracts and what procedures pertained to purchases of supplies and materials not related
to public projects.
The amended Purchasing Code was developed by determining best practices for purchasing by
reviewing other municipal purchasing ordinances and policies; having discussions with the City's
independent auditors regarding internal controls and purchasing; looking at how the City is
currently purchasing goods and materials and handling public projects and professional service
contracts; reviewing California State law regarding public projects; and obtaining input from the
City Manager, all departments, and the City Attorney. The draft amendment was presented to the
Audit Commission and the City's independent audit firm, White Nelson Diehl Evans LLP, for their
review. The independent auditor's comment was that the draft Purchasing Code met the
requirements to eliminate the management comment finding, and the Audit Commission had a
minor comment on informal bids that was incorporated into the document. Both parties said the
draft Purchasing Code would provide good guidance for staff in the area of purchasing.
Because the original Purchasing Code was amended in its entirety, staff is presenting the
amended Purchasing Code, Ordinance 1438, as a separate document from the original
Purchasing Code.
Changes to the original Purchasing Code are as follows:
Section 1621: Adoption of Purchasing System
No changes were made to this section.
Section 1622: Definitions:
Definitions for agency, bidders list, contractual services, irresponsible bidder, and local bidder were
eliminated as the City has a decentralized purchasing system and keeping a bidders list is
impractical. Amended Section 1622 provides a complete definition of professional services,
responsible bid and responsible bidder. The definition for professional services was updated to
include accountant, information technology professionals and individuals or other organizations
professing a high degree of professional or technical expertise and does not include public
projects. Definitions for facility, maintenance work, public project and purchase order were added
to Section 1622.
Section 1623: Purchasing Agent:
The title of section 1623 has been changed from Purchasing Agent to Purchasing Manager. The
original section 1623 created a position of purchasing agent who was the City Manager. The
Purchasing Agent was authorized to delegate, subject to his control and direction, any of the
powers and duties conferred upon him as purchasing agent to any other officer or employee of the
City. The amended section 1623 designates the City Manager as the Purchasing Manager with the
same delegation authority as the original section 1623.
Part b of Section 1623 was amended in its entirety to provide staff with clear direction regarding
purchasing delegation and to address the management comment finding of stating which
employees have authorization to approve purchases and limits on various levels of purchases.
ORDINANCE NO. 1438, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2 OF THE
TUSTIN CITY CODE REGARDING THE CITY PURCHASING SYSTEM
December 17, 2013 Page 3 of 5
Amended section 1623b number 1, states that as the Purchasing Manager, the City Manager
directs and supervises the acquisition under the authority of TCC Section 1623a. Number 2 of
amended section 1623 authorizes the City Manager as the Purchasing Manager to delegate
department heads as Purchasing Agents, and number 3 states the Purchasing Manager may
delegate authority to the Purchasing Agent to delegate authority to additional individuals within
their supervision to make purchases. Those individuals will be referred to as Purchasing
Delegates.
The City is currently, through an informal policy, assigning Purchasing Delegates on an annual
basis and following the procedures listed in the amended Section 1623b number 3 i through iii,
which states a written list of Purchasing Delegates, must be submitted to the Finance Director and
it shall include the name and maximum dollar purchasing authority authorized for each individual.
The written list must be approved on an annual basis, or upon changes in employment status, by
the Purchasing Manager, Finance Director, and the applicable Purchasing Agent. The Finance
Director must maintain a written record of all approved Purchasing Delegates.
Number 4 of Section 1623b grants the Purchasing Manager or the Finance Director the authority to
approve all purchases regardless of dollar value if the following conditions are met:
• The purchase is for a purpose and within an amount appropriated by City Council; and
• The purchase follows this revised ordinance with regards to use of purchase orders,
contracts and bids or quotes.
Section 1624: Exceptions to Purchasing Procedure
This section was moved to section 1625 of the amended Purchasing Code. The amended section
1624 is titled Purchasing Procedure. The amended section 1625 is titled Exceptions to Purchasing
Procedure.
Section 1625, of the original Purchasing Code was titled Purchasing Procedure and was replaced
in its entirety with amended Section 1624. Section 1625 of the original Purchasing Code required
the use of purchase requisitions. As the City utilizes a decentralized purchasing system it has
never used purchase requisitions. Section 1625 of the original Purchasing Code section c through
j primarily addresses public contracts and did not provide guidance in regards to other purchases
that were not public contracts. The amended Section 1624 addresses this issue.
Section 1624a is the same as the original Section 1625b, Availability of Funds. The amended
Purchasing Code in summary, states that except in emergencies no funds will be obligated unless
the funds are appropriated.
Amended Section 1624b establishes separation of duties for strong internal controls in regard to
purchasing, such as ensuring the person that documents the receipt of goods purchased is not the
same individual that authorized the purchase; the finance department shall perform procedures to
ensure the validity of all new vendors before any purchase can be made with a new vendor; if the
lowest responsible bidder is not selected then the decision process must be documented
explaining why the lowest bidder was not selected; and if an item is available through a sole
source provided, back up verifying that the vendor is the sole source provider must be provided.
ORDINANCE NO. 1438, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2 OF THE
TUSTIN CITY CODE REGARDING THE CITY PURCHASING SYSTEM
December 17, 2013 Page 4 of 5
Amended Section 1624c and d addresses the management comment finding of
• use of purchase orders
• limits or thresholds on various levels of purchases
• informal and formal bidding requirements
Section 1624c states, a purchase order shall be used for any single item or aggregate purchase of
one thousand dollars or greater. Section 1624d provides guidelines as to the dollar thresholds
when informal bids are acceptable and the dollar thresholds of when written bids are acceptable. It
also states that any single item or aggregate purchase of vehicles and heavy -duty equipment and
machinery or maintenance with an estimated value of twenty -five thousand dollars or greater must
be approved by City Council. Section 1624f provides guidelines for purchases by credit card. The
Finance Director is given the responsibility to determine what employees may be provided a credit
card and is responsible for the accounting and monitoring the use of the credit card. Should the
credit card be used to purchase goods, materials or services, the purchase must be made in a
manner consistent with Section 1624c.
Amended Section 1625: Exceptions to Purchasing Procedure
Amended Section 1625a defines emergency purchases and defines emergency situations. It also
provides instructions in 1625a, number 2, on information required to be provided to the Purchasing
Manager and the City Council. Amended Section 1625b, number 1 and 2, discusses bidding
exceptions. The Purchasing Manager or Finance Director may dispense with bidding where the
bidding would be impossible or impractical; where the commodity or service can be obtained only
from one vendor; the price of the commodity or service is controlled by law such that bidding would
be unlikely to result in cost savings; and for Public Works Contracts that are subject to the
provisions of the California Public Contract Code. Item c of amended Section 1625 addresses
other exceptions when goods or materials may be purchased or can be acquired more efficiently or
more cheaply through other government agency purchasing programs.
Section 1626: Disposition of Property
Section 1626, Disposition of Property is Section 1630 of the amended Purchasing Order. This
section was not amended other than changing the title of Purchasing Agent to Purchasing
Manager. Also under b number 3 (iv) was added to provide instruction as to where the funds
received from sale of surplus property will be deposited.
Section 1626 of the amended Purchasing Order is Professional Services. The amended code for
professional services states a Request for Proposal (RFP) shall be used whenever practical and
provides guidelines for selection of professional services such as overall professional experience,
reliability and continuity of the firm; professional experience in executing contracts of similar nature;
adequacy of personnel numbers within specific disciplines required to complete the work; quality
and timeliness of recently completed or nearly completed projects which were similar to the work
described in the solicitation for proposals or bids; and specialized qualifications. The amended
section also provides guidelines for the RFP procedure including the evolution of the proposals
received.
Section 1627: Informal Bidding Procedure and Section 1628: Formal Bidding Procedure
These two sections were not in the original Purchasing Code. Both sections have been added to
the amended Purchasing Ordinance to provide guidance for informal bidding procedures and
formal bidding procedures for the purchases of goods, services, equipment and the selection of
ORDINANCE NO. 1438, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2 OF THE
TUSTIN CITY CODE REGARDING THE CITY PURCHASING SYSTEM
December 17, 2013
Page 5 of 5
contractors in regards to a Public Project. Both sections are subject to the California Public
Contract Code. The guidelines were also included in various sections of the original Purchasing
Code; however, Section 1627 and Section 1628 consolidate those guidelines.
Section 1629: Inspection of Materials, Equipment, Etc.
This section was added to the amended Purchasing Code. Inspection of Materials, Equipment,
etc., had been located under Section 1625 j, numbers 1 through 3 of the original Purchasing Code.
Pamela Arends -King
Finance Director /City Treasurer
Attachments: Draft Ordinance 1438
Original Tustin City Code, Article1, Chapter 6, Part 2
Attachment A
DRAFT ORDINANCE 1438
ORDINANCE NO. 1438
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN AMENDING ARTICLE 1, CHAPTER 6, PART 2
OF THE TUSTIN CITY CODE REGARDING THE CITY
PURCHASING SYSTEM
The City Council of the City of Tustin, California, hereby ordains as follows:
SECTION I Sections 1621 through 1630 of Part 2 of Chapter 6 of Article 1 of the
Tustin City Code are amended in their entirety to read as follows:
1621 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 the quality needed,, to exercise positive financial
control over purchases, to clearly define authority for the purchasing function and to
ensure the quality of purchases, a purchasing policy is hereby adopted.
This Part shall be known as and may be cited as the "Purchasing System."
1622 DEFINITIONS
For the purpose of carrying out the intent of this chapter, the following words, phrases
and terms shall have the meaning ascribed to them in this section.
FACILITY means any plant, building, structure, ground facility, utility system, real
property, streets and highways, or other public work improvement (subject to the
limitation found in the definition for PUBLIC PROJECT in this section).
MAINTENANCE WORK means work that includes all of the following:
a. Routine, recurring and usual work for the preservation or protection of any
publicly owned or publicly operated facility for its intended purposes;
b. Minor repainting;
c. Resurfacing of streets and highways at less than one inch;
d. Landscape maintenance, including mowing, watering, trimming, pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler
systems.
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PROFESSIONAL SERVICES means, but is not limited to, any type of professional
services that may be lawfully rendered including the services of architects, attorneys,
consultants, engineers, physicians, accountants, information technology professionals,
or other individuals or organizations professing a high degree of professional or
technical expertise, but does not include public projects.
PUBLIC WORKS CONTRACT shall have the meaning set forth in California Public
Contract Code 1101, as amended from time to time.
PUBLIC PROJECT means any of the following to which the Uniform Public Construction
Cost Accounting Act (California Public Contract Code section 22000 et seq) applies:
a. Construction, reconstruction, erection, alteration, renovation, improvement,
demolition and repair work involving any publicly owned, leased or operated
facility; or
b. Painting or repainting of any publicly owned, leased or operated facility.
PURCHASE ORDER means a written authorization by the issuing party for the recipient
to provide labor, materials or services for which the issuing party agrees to pay.
RESPONSIBLE BID means an offer, submitted by a responsible bidder in ink or
typewritten form, to furnish supplies, materials, equipment or contractual services in
conformity with specifications, delivery terms and conditions and other requirements
included in the invitation for bids.
RESPONSIBLE BIDDER means a bidder who submits a responsible bid; who has
furnished, when requested, information and data to prove that his financial resources,
production or service facilities, service reputation and experience are adequate to make
satisfactory delivery of the supplies, materials, equipment or contractual services on
which the bids are made, and who has not violated, or attempted to violate, any
provision of this Part.
SUPPLIES, MATERIALS AND EQUIPMENT mean any and all articles or things which
shall be furnished to or used by any agency.
1623 PURCHASING MANAGER
a. Creation of Position of Purchasing Manager
There is hereby created the position of Purchasing Manager, who shall be the City
Manager. The City Manager may delegate, subject to his control and direction, any of
the powers and duties conferred upon him as Purchasing Manager to any other officer
or employee of the City.
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b. Power and Duties
1. As Purchasing Manager, the City Manager directs and supervises the
acquisition of all goods and services under the authority of TCC
Section 1623a.
2. Purchasinq Agents. In accordance with TCC section 1623a the City
Manager may delegate responsibility for administering purchasing
policies and procedures to one or more department heads. A
department head who has been delegated authority by the Purchasing
Manager hereunder is referred to herein as a Purchasing Agent.
Unless the Purchasing Manager directs otherwise, the authorized
Purchasing Agents shall include:
i. Deputy City Manager
ii. Director of Finance
Director of Parks & Recreation Services
iv. Director of Community Development
V. Chief of Police
Vi. Director of Public Works
3. Purchasing Delegates. Additionally, the Purchasing Manager may
delegate authority to the Purchasing Agents to delegate authority to
additional individuals within their supervision who shall be authorized
to make purchases. Individuals delegated purchasing authority
hereunder are referred to as "Purchasing Delegates ". Purchasing
Delegates shall be designated in accordance with the following
requirements:
i. A written list of Purchasing Delegates must be submitted to the
Finance Director and include the name and maximum dollar
purchasing authority authorized for each individual.
ii. A written list of Purchasing Delegates must be approved on an
annual basis or upon changes in employment status, whichever is
more frequent, by the Purchasing Manager, Finance Director, and
the applicable Purchasing Agent.
The Finance Director must maintain a written record of all
approved Purchasing Delegates.
4. The Purchasing Manager or the Finance Director are each authorized
to approve all purchases regardless of dollar value if the following
conditions are met:
i. The purchase is for a purpose,
appropriated by City Council; and
ii. The purchase follows this ordinance
and within an amount,
with regards to use of
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purchase orders, contracts and bids or quotes.
1624 PURCHASING PROCEDURE
a. Availability of Funds Except in emergencies as defined in Section 1625a,
no notice of award of contract shall be issued, no contract shall be signed and no
open market purchase order shall be issued unless the unexpended balance in
the appropriation or appropriations concerned is sufficient to defray the amount
of such contract or purchase order.
b. Purchaser Responsibilities It shall be the responsibility of the Purchasing
Manager, Purchasing Agent or Purchasing Delegate handling a purchase:
1. To reduce, to the maximum extent possible, the number of purchase
transactions by combining into bulk orders and contracts the
requirements of departments or City for common -use items or items
repetitively purchased.
2. To obtain a completed IRS Form W -9 from any vendor not previously
used for City purchases and submit it to the finance department. The
finance department shall perform procedures to ensure the validity of
all new vendors before any purchase can be made with the new
vendor.
3. To ensure that the person that documents the receipt of the goods
purchased is not the same individual that authorized the purchase and
to follow the procedures of TCC Section 1629 for inspection of
materials and equipment.
4. Except as otherwise authorized in this Part or by State or Federal law,
to select the lowest responsible bidder when bids are solicited, whether
formal or informal. If the lowest priced bid is not selected, then the
decision process must be documented explaining why the lowest bid
was not chosen.
5. If the item(s) to be purchased is only available through one vendor and
or sole source provider, back up verifiying that the vendor is the sole
source provider must be provided.
C. The Purchasing Manager is authorized to prescribe the use of various
types of contracts and orders, including, but not limited to, the following:
1. Use of petty cash is authorized for single purchases of seventy -five
dollars ($75.00) or less.
2. Purchase orders shall be used for all purchases of goods, materials
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and equipment in accordance with the following:
i. Any single item or aggregate purchase with an estimated value of
one thousand dollars ($1,000.00) or greater.
ii. When the Purchasing Manager, Purchasing Agent, or Purchasing
Delegate expects to make multiple purchases with a single
vendor and purchases are expected to exceed five thousand
dollars ($5,000.00) annually for a single project, he or she should
utilize an open purchase order. Open purchase orders must be
approved by the Purchasing Manager or Purchasing Agent and
renewed at least annually.
d. With the exception of emergencies (as defined in TCC Section 1625a)
and the other exceptions noted in TCC Sections 1625b and 1625c, the
Purchasing Manager, Purchasing Agent and Purchasing Delegate shall follow
the following procedures with regards to purchases of goods, materials and
equipment:
1. For any single item or aggregate purchase with an estimated value of
one thousand dollars ($1,000.00) up to ten thousand dollars
($10,000.00) the Purchasing Manager, Purchasing Agent or
Purchasing Delegate shall solicit three informal bids or quotes.
i. Bids or quotes may be obtained from the vendors in verbal or
written format.
ii. The Purchasing Manager, Purchasing Agent or Purchasing
Delegate must submit written documentation of the bids and
quotes with the purchase order.
2. For any single item or aggregate purchase with an estimated value in
excess of ten thousand dollars ($10,000.00) the Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall solicit three formal
bids.
i. Bids must be obtained in writing from the vendors.
ii. The Purchasing Manager, Purchasing Agent or Purchasing
Delegate must submit written documentation of the bids with the
purchase order.
3. Any single item or aggregate purchase of vehicles and heavy -duty
equipment and machinery or maintenance with an estimated value of
twenty -five thousand dollars ($25,000.00) or greater must be approved
by City Council.
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e. Professional development and training costs do not require purchase orders.
Any travel related costs should also be in accordance with the City's Travel
Policy.
f. Purchases by credit card of goods, material, and equipment must follow the
following procedures:
1. Credit cards may be provided to employees as determined appropriate
by the Finance Director, in consultation with the employee's immediate
supervisor.
2. The Finance Director is responsible for the issuance of credit cards,
accounting, monitoring, and generally overseeing compliance with
these procedures.
3. Credit card limits will be determined by the Finance Director. There
shall be no cash access feature (cash advance) on the credit cards.
The Finance Director shall establish policies for the safekeeping of
credit cards and procedures in the event a credit card is lost, stolen or
destroyed.
4. Credit cards must only be used by City employees for proper City
business purposes. Use of credit cards for personal purchases is
prohibited.
5. Employees using credit cards must retain detailed credit card receipts,
attach them to the credit card statements and present this
documentation to their immediate supervisor for approval. In the case
of meals and business travel expenses, each receipt must include the
names of all persons involved in the purchase, and a brief description
of the business purpose. Receipts shall be reconciled to the monthly
credit card statement by the Finance Department. An employee who
fails to provide credit card receipts to the Finance Department in a
timely manner may be required, at the Finance Director's discretion, to
reimburse the City for the charges, and at the Finance Director's
discretion, may have his or her credit card privileges revoked.
6. Each credit card issued in the name of the City of Tustin will be kept in
a safe place and released for use only under the authority of the
Finance Director. Credit cards are the property of the City and shall be
returned to the employee's supervisor upon demand or upon
termination of employment with the City, whichever occurs first.
7. Before being issued a credit card, employees must complete and sign
the acknowledgement form stating that they understand and will
comply with the City's credit card policy.
I.
8. Examples of allowable uses of credit cards include, but are not limited
to:
Conferences /training /seminars (registration, airline /car rental,
hotel accommodations, meals and fuel)
ii. Business lunch with representatives from other government
agencies or consultant under contract to the City, furnishing lunch
for interview panels and /or evaluation review boards
iii. Publications /manuals
iv. Providing meals, equipment and material to work crews in cases
of emergency
V. Should the credit card be used to purchase goods, materials or
services, the purchase must be made in a manner consistent with
Section 1624c.
1625 EXCEPTIONS TO PURCHASING PROCEDURE.
a. Emergency Purchases. The emergency procedure applies to purchases
made necessary from an emergency situation that poses an immediate threat to
public health, welfare or safety as determined by the Purchasing Manager for
which no time exists to seek Council action or approval, if such action or approval
were otherwise required.
1. An emergency situation is defined as follows:
i. A public disaster;
ii. An immediate need to prepare for national or local defense; and
iii. A breakdown of machinery or an essential service immediately
affecting public health, safety, or welfare.
2. The Purchasing Manager, a Purchasing Agent, or any Purchasing
Delegate may purchase supplies, equipment, or services directly
subject to parameters set forth in City Council resolution(s) or
administrative guidelines. The Purchasing Agent or Purchasing
Delegate will submit a report of the circumstances of the emergency to
the Purchasing Manager as soon as possible. The report will be filed
with the City Council and will be entered in the minutes of the Council
at its next regular meeting.
b. Bidding: Exceptions
1. Purchases of supplies and equipment and contracts for Public
Projects, except Public Works Contracts, shall be by bidding
procedures pursuant to the provisions of Section 1624 and as
described in sections 1626 and 1627 of this Part,
2. Bidding shall be dispensed with upon authorization of the Purchasing
Manager or the Finance Director:
i. where bidding would be impossible or impractical;
ii. where the commodity or service can be obtained from only one
vendor. When there is only one vendor that provides the product
or service, the details must be documented and supported in
order to dispense with bidding requirements;
iii. where the price of the commodity or service is controlled by law
such that bidding would be unlikely to result in any cost savings;
or
iv. for Public Works Contracts that are subject to the provisions of
the California Public Contract Code, in which case the
Contract(s) shall be procured in conformity with the Public
Contract Code.
3. For the purposes of this section:
i. "Impossible" shall mean impossibility or extreme and
unreasonable difficulty or expense; and
ii. "Impractical" shall mean incapable of being performed by the bid
procedure.
4. Whenever exceptions to bidding procedures are authorized, the
Purchasing Manager shall prepare a report in detail to the City
Council at the next regularly scheduled Council meeting.
c. Other Exceptions. When in the opinion of the Purchasing Manager or
Purchasing Agent supplies, materials or equipment can be more efficiently or
more cheaply obtained if acquired on behalf of the City by the State Department
of General Services or through the County of Orange Cooperative Purchasing
Program, or other government purchasing program, the Purchasing Manager or
Purchasing Agent shall so advise the City Council. Acquisition of any such
supplies, materials or equipment by the State Department of General Services or
through the County of Orange Cooperative Purchasing Program or other
government purchasing program may be authorized by resolution of the City
Council.
1626 PROFESSIONAL SERVICES
a. Use of Requests for Proposals. The Purchasing Manager, Purchasing
Agent or Purchasing Delegate shall make use of the Request for Proposal (RFP)
process and /or obtain quotes for Professional Services whenever practical.
b. Guidelines for Selection. The Purchasing Manager, Purchasing Agent or
Purchasing Delegate primarily responsible for the project for which Professional
Services are required shall select firms or individuals based on their ability to
perform the specific functions including, but not limited to, such factors as:
1. Overall professional experience, reliability, and continuity of the- firm
as related to the tasks described in the solicitation for proposals or
bids;
2. Professional experience of the firm in executing contracts of a similar
nature;
3. Adequacy of personnel numbers within specific disciplines required to
complete the work required by the solicitation for proposals or bids;
4. Experience and training of key personnel as related to the work
described in the solicitation for proposals or bids;
5. Adequacy of number of principal(s) which are intended to be assigned
to the contract;
6. Knowledge of applicable regulations and technology associated with
the contract;
7. Quality and timeliness of recently completed or nearly completed
projects which were similar to the work described in the solicitation for
proposals or bids;
8. Specialized qualifications for the services to be performed.
Such factors shall be weighed by the Purchasing Manager, Purchasing Agent or
Purchasing Delegate and by the City department primarily responsible for the
project according to the nature of the contract, the needs of the City and
complexity and special requirements of the specific contract for which the
services will be provided.
c. RFP Procedures. If a formal RFP is used, the Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall abide by the following
procedures:
1. A Request for Proposal solicitation document shall be issued to
potential individuals or firms. The solicitation document shall discuss
the following:
i. Scope of work or specification desired
ii. List any required qualifications
iii. List the evaluation criteria.
iv. The date of submission for the response by the vendor
V. Only criteria disclosed in the solicitations may be used to
evaluate the supplies or services proposed.
2. The solicitation document shall be made available to a minimum of
three qualified firms or individuals and shall be made available for no
less than fourteen (14) calendar days.
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3. Evaluation of proposals received will be conducted by either an
individual or a review committee. Discussions may be conducted, at
the discretion of the Purchasing. Manager,. Purchasing Agent or
Purchasing Delegate, with one or more responsible offerors who has
submitted a proposal and is determined to be reasonably susceptible
for being accepted for award. These discussions may be held for the
purpose of clarification to assure full understanding of responsiveness
to the solicitation requirements.
4. The Purchasing Manager, Purchasing Agent or Purchasing Delegate
shall notify the selected contractor and obtain a written contract.
1627 INFORMAL BIDDING PROCEDURE
a. Informal Bidding Procedures. The following shall govern purchases of goods,
services, equipment and the selection of contractors when a Public Project is
anticipated to fall within the monetary limits on informal bids described in
applicable laws and regulations, including but not limited to the limitations
established pursuant to California Public Contract Code section 22032, as the
same may be adjusted from time to time:
1. The City shall prepare a notice of the opportunity to bid which
describes the project in general terms, states the time and place for
the submission of bids and describes how to obtain more detailed
information about the project.
2. The City shall mail the notice to all contractors for the category of the
work to be bid, as shown on the list of contractors developed and
maintained by the Department of Public Works in accordance with
criteria promulgated from time to time by the California Uniform
Construction Cost Accounting Commission ( "Commission ").
3. The City may also mail the notice to all construction trade journals
specified by the Commission for the County of Orange. Additional
contractors and /or construction trade journals may also be notified at
the discretion of the purchasing agent; provided, however, (1) if the
City has not prepared a list of qualified contractors for the particular
category of work to be performed, the notice inviting bids shall be sent
only to the construction trade journals specified by the Commission;
and (2) if the product or service is proprietary in nature such that it can
be legally obtained only from a certain contractor(s), the notice inviting
informal bids may be sent exclusively to such contractor(s).
4. All mailings of notices to contractors and construction trade journals
pursuant to this section shall be completed not less than ten calendar
days before bids are due.
b. Bid Selection.
10
1. Except as otherwise provided herein, purchases of goods, services,
and equipment and public projects shall be awarded to the lowest
responsible bidder. The determination of the "lowest responsible
bidder" shall be determined by the Purchasing Manager, Purchasing
Agent or Purchasing Delegate authorized to conduct the procurement.
2. Exceptions: Purchases of goods, services, equipment and Public
Projects (other than Public Works Contracts) may be awarded to a
bidder other than the lowest responsible bidder only upon a written
finding, approved by the Purchasing Manager or Purchasing Agent,
and supported with written documentation setting forth the reasons
that greater overall value to the City will be achieved by awarding to
the other bidder. Alternatively, the Purchasing Manager, Purchasing
Agent or Purchasing Delegate may reject all bids and either halt the
procurement or conduct the procurement again. Awards of Public
Works Contracts and contracts for Public Projects shall be made in
accordance with State law.
1628 FORMAL BIDDING PROCEDURE
a. Bid solicitation procedures
1. The City Council shall approve plans and specifications for all Public
Projects and Public Works Contracts which are required per
applicable laws and regulations.
2. The Purchasing Manager, Purchasing Agent or Purchasing Delegate
shall prepare and provide for advertisement a notice inviting formal
bids, stating the time and place for the receiving and opening of
sealed bids and distinctly describing the public project, commodity, or
class of commodities. The Purchasing Manager, Purchasing Agent or
Purchasing Delegate shall publish each and every notice inviting bids
in accordance with the following requirements:
i. The notice shall be published in accordance with the
requirements of California Public contracts Code section 20164,
as that section may be modified.
ii. Contracts for services for the painting, maintenance or repair of
public buildings and works specifically governed by Government
Code Sections 37901 and 37902 shall be subject to the solicited
bid process in accordance with applicable laws.
iii. The purchasing agent shall, in addition, solicit bids from
prospective bidders for the class of commodities being
purchased or sold as listed on the bidders list, by sending them
copies of the newspaper notice or such other notice as will
acquaint them with the proposed purchase or sale. All pending
purchases or sales shall also, in all cases, be advertised by
posting a copy of the contract bid form on a public bulletin board
in or adjacent to the Purchasing Manager, Purchasing Agent or
11
Purchasing Delegate's office or on a bulletin board in a
prominent place in the City Hall.
iv. In addition to notice required by this section, the Purchasing
Manager, Purchasing Agent or Purchasing Delegate may give
such other notice as he or she deems proper.
3. All bids shall be presented under sealed cover and accompanied by
one of the following forms of bidder's security:
i. Cashier's check made payable to the City;
ii. A certified check made payable to the City; or
iii. A bidder's bond executed by an admitted surety insurer, made
payable to the City.
4. The security shall be in an amount equal to at least ten percent of the
amount bid. A bid shall not be considered unless one of the forms of
responsible bidder's security is enclosed with it. If the bidder to whom
the contract is awarded' shall for ten days after the award fail or
neglect to enter into the contract and file the required securities, the
City shall deposit in its treasury the bid security if the security is in the
form of cash or its equivalent.
5. Provisions shall be included in any invitation for bid and in any
contract documents for the furnishing of securities and /or the
withholding of retentions earned to ensure performance under a
contract in an amount and type as determined by the Director of
Public Works, consistent with State law. Provisions shall be included
in any invitation for bid and in any contract documents for insurance
coverage in an amount, type and term as may be specified by the
City.
6. When required by State law, the contractor shall not pay less than the
general prevailing rates of wages, as determined by the Director of
the Department of Industrial Relations, to all workers employed on a
Public Project or Public Works Contract.
b. Formal Bid Opening Procedure. Sealed bids shall be submitted to the
City Clerk with the bid number written on the envelope where they will be date
and time stamped. All bids must be received and date and time stamped by the
City Clerk's clock on or before the date and time due; late bids (as determined by
reference to the City Clerk's clock) will be returned unopened. The Purchasing
Manager, or his or her designee, shall publicly open all bids at the time and place
stated in the public notice. A tabulation of all bids shall be available for public
inspection in the City Clerk's Office during regular business hours for a period of
one year after bid opening.
c. Rejection of Formal Bids. In its discretion, the City Council may reject any
and all bids presented if the Purchasing Manager, prior to rejecting all bids,
furnishes a written notice to an apparent low bidder, informing the bidder of the
City's intention to reject the bid at least two business days prior to the hearing at
which the City Council intends to reject the bid. If after the first invitation of bids
all bids are rejected, after reevaluating its cost estimates of the project, the City
12
Council may: (a) abandon the project; (b) readvertise for bids in the manner
prescribed by this chapter; or (c) perform the work with City employees, after
passing a resolution by a four -fifths vote of the City Council declaring that the
project can be performed more economically by City employees.
d. Award of Formal Bid Contracts. All Public Works Contracts with a value
exceeding the limitations established pursuant to California Public Contract Code
section 22032, as the same may be adjusted from time to time, shall require the
approval of the City Council and shall be executed by the Mayor and approved
as to form by the City Attorney. Unless the agreement provides otherwise, the
City Manager may approve dollar increases to contracts that have been
approved by the City Council. The extent of the City Manager's authority to
approve such increases shall be in the amount of ten thousand dollars
($10,000.00) or ten percent, whichever is greater, or an amount specifically
designated by City Council for the particular project. If a contract is awarded, it
shall be awarded by the City Council to the lowest responsible bidder. The
determination of the "lowest responsible bidder" shall be at the discretion of the
City Council pursuant to the findings and recommendations presented by the
Purchasing Manager, Purchasing Agent or Purchasing Delegate at the time of
award of contract. In determining the lowest responsible bidder, the following
shall be considered by the City Council, in addition to price:
1. The ability, capacity and skill of the bidder to perform the contract or
provide the services required;
2. Whether the bidder can perform the contract or provide the services
promptly, or within the time specified, without delay or interference;
3. The sufficiency of the bidder's financial resources to perform the
contract or provide the service;
4. The ability of the bidder to provide future maintenance and services
where such maintenance and service is essential;
5. The quality and timeliness of the bidder's performance on previous
contracts for the City;
6. Litigation by the bidder on previous contracts with the City;
7. The character, integrity, reputation, judgment, experience and
efficiency of the bidder;
8. The bidder is licensed under the Contractors' State License Law
(commencing with Section 7000 of the Business and Professions
Code of the State of California, as the same may be amended from
time to time) to perform the work for which it submitted a bid proposal.
e. Tie Formal Bids. If two or more formal 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, at its
discretion, accept the one it chooses or accept the lowest bid made by and after
negotiation with the tie bidders.
f. No Formal Bids. If no bids are received through the formal or informal
procedure, the project may be performed by the employees of the City by force
13
account or through a negotiated contract without further complying with this
chapter.
g. Bid Selection. If a contract is awarded, it shall be to the lowest responsible
bidder. The determination of the "lowest responsible bidder" shall be at the
discretion of the City Council pursuant to the findings and recommendations
presented by the purchasing agent. If the lowest priced bid is not selected, then
the decision process must be documented explaining why the lowest bid was not
chosen.
h. Nothing contained in this section is intended to be in conflict with applicable
state law including Sections 37901 and 37902, and Sections 37931 through
37935, of the Government Code of the State of California.
1629 INSPECTION OF MATERIALS, EQUIPMENT, ETC.
a. The receiving departments shall inspect deliveries of supplies, materials and
equipment or the furnishing of contractual services to insure their conformance
with the specifications set forth in the purchase order or contract.
b. Any department which has the necessary facilities and staff for adequate
inspection may be authorized and directed by the City Council, on the
recommendation of the Purchasing Manager, Purchasing Agent or Purchasing
Delegate, to inspect deliveries made to other departments.
c. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall
have authority to require chemical and physical tests of samples submitted with
bids and samples of deliveries to the extent necessary to determine their quality
and conformance with the specifications. For such tests, the Purchasing
Manager, Purchasing Agent or Purchasing Delegate shall have authority to make
use of laboratory facilities of any department or to engage the services of any
outside laboratory.
1630 DISPOSITION OF PROPERTY
a Surplus or Obsolete Commodities
1. All departments shall submit to the Purchasing Manager at such
times and in such form as he or she shall prescribe, reports showing
stocks of all supplies, materials and equipment which are no longer
used or which have become obsolete, worn out or scrapped. The
Purchasing Manager shall have authority to transfer any such
commodities which are usable to another or other departments in
lieu of filling requisitions for the purchase of new and additional stock
of the same or similar articles.
2. The Purchasing Manager shall make a written estimate of the value
of any surplus items not usable by any City department or not
14
required for public use. The Purchasing Manager shall have the
authority to sell all such supplies, materials and equipment which
cannot be used by any department or which have been found by the
City Council not to be required for public use or to exchange or trade
in such articles in part or full payment for new supplies, materials or
equipment of a similar nature. Any such sale, exchange or trade -in
shall be made in accordance with Section 1626 or Section 1627,
whichever is applicable. The Purchasing Manager shall report in
detail, including the amount of revenue received upon any such sale,
to the City Council within forty -five (45) days thereafter. (TCC -1, Sec.
2 -75 /Ord. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 7, 5-
17 -82)
b. Unclaimed Property in Possession of Police Department
1. Unclaimed property defined. "Unclaimed property" is all personal
property, the title of which is not vested in the City of Tustin, which
property has come into the possession of the City of Tustin as lost
property, property which has been confiscated or impounded by the
City as being in violation of law or any other personal property
coming into possession of the City of Tustin which is not specifically
provided for by any other provision of law.
2. Procedure.
i. If the estimated value of the unclaimed property exceeds ten
dollars ($10.00) the Police Department or the administrative
official who obtained possession of the property shall, within ten
(10) days of receipt of the property, notify the owner, if his
identity is reasonably ascertainable, that it possesses the
property and where it may be obtained. The Police Department
or the administrative official may require payment by the owner
of a reasonable charge to defray costs of storage and care of the
property.
ii. If the owner appears within ninety (90) days of the notification
given in subparagraph (a) above, proves his ownership of the
property, and pays all reasonable charges, the Police
Department or the administrative official shall restore the
property to him.
iii. After retention of the property for four (4) months, the property
may be:
a) Sold at public auction to the highest bidder;
b) Retained by the City of Tustin if it is determined that the
property is needed for a public use, and after public notice
has been made of the City's intention to "retain the property;
or
15
c) Where the property is a bicycle or toy in the possession of
the Police Department, the property may, at the discretion of
the Chief of Police, be given to the Welfare Department of
the County, or to any charitable or nonprofit organization
authorized under its Articles of Incorporation to participate in
a program or activity designed to prevent juvenile
delinquency and which is exempt from income taxation
under federal or state law, for use in any program or activity
designed to prevent juvenile delinquency.
3. Public sale or retention of property.
When it is determined that unclaimed property, valued at fifty
dollars ($50.00) or more, shall be retained or shall be sold at
public auction, the Police Department or the administrative
official, shall cause notice of such sale or retention to be
published at least five (5) days before the time fixed therefore
once in a newspaper of general circulation published in the
county in which such property was found or confiscated, or
otherwise in Orange County.
ii. Such notice shall contain the time and the place of the sale.
iii. Any property remaining unsold after being offered at such public
auction may be destroyed or otherwise disposed of by the City.
(Ord. No. 687; Ord. No. 871, Sec. 7, 5- 17 -82; Ord. No. 1171,
Sec. 2, 8 -5 -96)
iv. Any revenue received from the disposition of public property
shall be deposited and recorded in the appropriate City fund and
general ledger account by the Finance Director in accordance
with the approved budget.
SECTION II. Part 4 of Chapter 6 of Article 1 (Tustin City Code Sections 1641 through
1650) is hereby repealed in its entirety.
SECTION III. This Ordinance shall become effective upon approval.
SECTION IV. If any section, subsection, subdivision, paragraph, sentence, clause, or
phrase in this Ordinance or any part thereof is for any reason, held to be
unconstitutional or invalid, or ineffective by any court of competent jurisdiction, such
decision shall not affect the validity or effectiveness of the remaining portions of this
Ordinance or any part thereof. The City Council hereby declares that it would have
passed this Ordinance and each section, subsection, subdivision, sentence, clause, and
phrase thereof, irrespective of the fact that any one or more sections, subsections,
subdivisions, sentences, clauses, or phrases be declared unconstitutional.
PASSED, APPROVED, AND ADOPTED this day of , 2013.
16
ELWYN A. MURRAY
MAYOR
ATTEST:
JEFFREY C PARKER
CITY CLERK
APPROVED AS TO FORM:
DAVID KENDIG
CITY ATTORNEY
ORDINANCE CERTIFICATION
17
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
ORDINANCE NO. 1438
Jeffrey C. Parker, City Clerk of the City of Tustin, California, does hereby certify that the
whole number of the members of the City Council of the City of Tustin is five; that the
above and foregoing Ordinance was passed and adopted at a regular meeting of the
City Council held on the day of , 2013, by the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
JEFFREY C PARKER
CITY CLERK
18
Attachment B
ORIG I NAL TUSTI N CITY CODE
ARTICLE 1, CHAPTER 6, PART 2
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Tustin, California, Code of Ordinances >> ARTICLE 1 - ADMINISTRATION >> CHAPTER 6 - FINANCE >>
PART 2 PURCHASING >>
PART 2 PURCHASING
1621 ADOPTION OF PURCHASING SYSTEM
1622 DEFINITIONS
1623 PURCHASING AGENT
1624 EXCEPTIONS TO PURCHASING PROCEDURE
1625 PURCHASING PROCEDURE
1626 DISPOSITION OF PROPERTY
1621 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 ensure the quality of purchases, a purchasing
policy is hereby adopted.
This Part shall be known as and may be cited as the "Purchasing System."
(TCC -1, Sec. 2 -57 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 2,5-17-82)
1622 DEFINITIONS
For the purpose of this Part, the following words and phrases shall have the meanings
respectively ascribed to them by this section:
Agency and using agency. Any of the departments, offices or other organization units of the
City and any special district whose affairs and funds are under the supervision and control of the
City Council and for which the City Council is ex officio the governing body.
Bidders list. A current file of sources of supply of articles for each category of commodities
repetitively purchased for City use.
Contractual services. Any and all telephone, gas, water, electric service; the rental of
equipment and machinery and all similar services provided by agreements, except agreements for
personal services or for street improvement projects.
Irresponsible bidder. A bidder or prospective bidder who fails to furnish, upon written request,
proof of his responsibility; who has, as a vendor or contractor with the City, repeatedly made slow or
unsatisfactory deliveries or who has violated, or attempted to violate, the provisions of this Part or a
bidder or prospective bidder who is known to have made slow or unsatisfactory deliveries to other
parties.
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Local bidder. A firm or individual who regularly maintains a place of business and transacts
business in, or maintains an inventory of merchandise for sale in or is licensed by or pays business
taxes to, the City.
Personal services. The services of architects, attorneys, consultants, engineers or physicians
or other individuals or organizations possessing a high degree of professional or technical skill.
Responsible bid. An offer, submitted by a responsible bidder in ink or typewritten form, to
furnish supplies, materials, equipment or contractual services in conformity with specifications,
delivery terms and conditions and other requirements included in the invitation for bids.
Responsible bidder. A bidder who submits a responsible bid; who has furnished, when
requested, information and data to prove that his financial resources, production or service facilities,
service reputation and experience are adequate to make satisfactory delivery of the supplies,
materials, equipment or contractual services on which the bids and who has not violated, or
attempted to violate, any provision of this Part.
Supplies, materials and equipment. Any and all articles or things which shall be furnished to
or used by any agency, including any and all printing, binding or publication of stationery, forms,
laws, journals and reports.
(TCC -1, Sec. 2 -58 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 3; 5- 17 -82)
1623 PURCHASING AGENT
a
Creation of Position
There is hereby created the position of purchasing agent, who shall be the City Manager.
The City Manager may delegate, subject to his control and direction, any of the powers and duties
conferred upon him as purchasing agent to any other officer or employee of the City.
(TCC -1, Sec. 2 -59 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord, No, 871, Sec. 4. 5- 17 -82)
b
Power and Duties
The purchasing agent shall, subject to the provisions of this Part and other applicable
provisions of this Code and of state law:
(1) Purchase or contract for the supplies and equipment required by the using agency in
accordance with the purchasing procedures set forth in this article and submit to the
City Council for award contracts for all purchases of supplies, materials, equipment
and contractual services in amounts or estimated amounts in excess of twenty-five
thousand dollars ($25,000.00);
(2) Negotiate and recommend the execution of contracts for the purchases of supplies
and equipment;
(3) Act to procure for the City the needed quality in supplies and equipment at the least
expense to the City;
(4) Endeavor to obtain as full and open competition as possible on all purchases;
(5) Prepare rules governing the purchase of supplies and equipment for the City;
(6) Prepare revisions and amendments to the purchasing rules;
(7)
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Keep informed on the current developments in the field of purchasing and the prices,
market conditions, and new products;
(8) Prescribe and maintain such forms as are reasonably necessary for the operation of
the provisions of this article and other rules and regulations;
(9) Supervise the inspection of all supplies and equipment to ensure their conformance
with specifications;
(10) Direct the transfer of surplus or unused supplies and equipment between agencies 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;
(11) Maintain a bidder's list, vendor's catalog file, and the records needed for the efficient
operation of the purchasing function;
(12) Upon request of the City Council and, subject to its approval of each transaction,
perform all delegable functions in connection with acquisition and disposal of real
property, except acquisition by legal proceedings; and
(13) Negotiate and enter into agreements for personal services in any amounts, provided
that such agreements are within the City's budget and except for Bond Counsel
services, that the City Attorney consents to such agreements for attorney services.
(TCC -1, Sec. 2- 601 1Ord. No. 27% Ord, No. 284, Secs. 1, 2: Ord, No. 871, Sec. 4, 5- 17 -82; Ord. No. 1287, Sec. 2, 8-
16 -04)
1624 EXCEPTIONS TO PURCHASING PROCEDURE
a
Exemption from Centralized Purchasing
The purchasing agent may authorize in writing any agency to purchase or contract for certain
specified classes of supplies, materials, equipment or contractual services, independently of the
purchasing agent; but such purchases or contracts shall be made in conformity with the applicable
provisions of this Part. The purchasing agent may also rescind such authorization to purchase
independently by written notice to the agency or agencies concerned, unless otherwise prohibited
by law.
(TCC -1, Sec. 2- 6210rd. No. 277. Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 5, 5- 17 -82)
b
Bidding; Exceptions
(1) Purchases of supplies and equipment shall be by bidding procedures pursuant to the
provisions of Section 1625c of this article. Bidding shall be dispensed with upon
authorization of the City Manager where bidding would be impossible, impractical or
incongruous; in an emergency; when the commodity can be obtained from only one
vendor, or where the price is controlled by law; or when the amount involved is less
than five hundred dollars ($500.00);
(2) For the purposes of this section:
(a) "Impossible" shall mean actual impossibility or extreme and unreasonable
difficulty or expense;
(b) "Impractical" shall mean incapable of being performed by the bid procedure;
(c) "Incongruous" shall mean not suitable to the bid procedure; and
(d) "Emergency" shall mean circumstances or conditions that pose and immediate
threat to public health, welfare or safety as determined by the City Manager for
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which no time exists to seek council action or approval, if otherwise such action
or approval were required.
(3) Whenever exceptions to bidding procedures are authorized the City Manager shall
prepare a report in detail to the City Council at the next regularly scheduled council
meeting.
(Ord. No. 871, Sec. 5. 5- 17 -82)
Other Exceptions
When in the opinion of the purchasing agent supplies, materials or equipment can be more
efficiently or more cheaply obtained if acquired on behalf of the City by the State Department of
General Services or through the County of Orange Cooperative Purchasing Program, the
purchasing agent shall so advise the City Council. Acquisition of any such supplies, materials or
equipment by the State Department of General Services or through the County of Orange
Cooperative Purchasing Program may be authorized by resolution of the City Council.
(Ord. No. 871, Sec. 5, 5- 17 -82)
1625 PURCHASING PROCEDURE
a
Requisitions and Estimates of Future Requirements
All agencies shall submit to the purchasing agent requisitions for the supplies, materials,
equipment and contractual services as required for their operations and for the purposes and within
the limits of funds appropriated therefor. The purchasing agent, after reviewing any such requisition,
may question its propriety and may require from the head of the requesting agency a justification of
the quantity or quality requisitioned. All agencies shall also file with the purchasing agent estimates
of their requirements for supplies, materials, equipment and contractual services in such form, at
such time and for such future periods as the purchasing agent shall prescribe.
(TCC -1, Sec. 2 -64 10rd. No. 277; Ord, No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5- 17 -82)
Availability of Funds
Except in emergencies as defined in Section 1624b and as excepted in Section 1625h(2)(d),
no notice of award of contract shall be issued, no contract shall be signed and no open market
purchase order shall be issued unless the unexpended balance in the appropriation or
appropriations concerned is sufficient to defray the amount of such contract or purchase order.
(TCC -1, Sec. 2- 69I0rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5- 17 -82)
c
Purchases and Sales; Competitive Bidding
(1) All purchases of, and contracts for, supplies, materials, equipment and contractual
services and all sales of personal properties which have been found by the City
Council not to be required for public use, shall be based, wherever possible, on
competitive bids.
(2) Purchase of supplies, services and equipment shall be made only by purchase order.
(3) If the amount of the expenditure for a contractual service or for a commodity or for a
class of commodities normally obtainable from the same sources of supply, or a sale
of personal property which has been found by the City Council not to be required for
public use, is estimated to exceed Ten Thousand Dollars ($10,000.00), contract bid
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shall be solicited by public notice and written contract shall be awarded. Contracts for
services for the painting, maintenance or repair of public buildings and works
specifically governed by Government Code Sections 37901 and 37902 shall still be
subject to the solicited bid process if the contract cost is estimated to exceed Five
Thousand Dollars ($5,000.00).
(a) The method and extent of public notice shall be prescribed by the City Council.
If newspaper advertisements are employed as public notice, such notice shall
include a general description of the commodities or services to be purchased or
the commodities to be sold; shall state where contract bids and specifications
may be secured, and shall specify the time and place for opening of bids.
(b) The purchasing agent shall, in addition, solicit bids from prospective bidders for
the class of commodities being purchased or sold as listed on the bidders list,
by sending them copies of the newspaper notice or such other notice as will
acquaint them with the proposed purchase or sale. All pending purchases or
sales shall also, in all cases, be advertised by posting a copy of the contract bid
form on a public bulletin board in or adjacent to the purchasing agent's office or
on a bulletin board in a prominent place in the City Hall.
(c) All bids shall be submitted sealed to the purchasing agent on the official
contract bid form which will have indicated thereon the class of commodities to
be purchased and the established time for opening bids. If deemed necessary
by the purchasing agent, each bid shall be accompanied by surety in the form
of a certified or cashier's check or bid bond in such amount, if any, as shall be
prescribed in the public notice inviting bids and in the contract bid form. A
tabulation of all bids received, whether accepted or rejected, 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. The purchasing agent shall
submit a copy of the tabulation and all bids received to the City Council,
together with this recommendation for award. The purchasing agent may reject
any and all bids for any or all commodities or contractual services included in
the bid form and may readvertise for bids when the public interest will be
served thereby, but shall report such action and the reasons thereof to the City
Council. If more than one of the bids received from responsible bidders is for
the same total amount or unit price and such include the lowest and best bids
(no one bid being substantially better than the others) and if the public interest
will not permit the delay of readvertising for bids, the City Council may
authorize the purchasing agent to award the contract to one of the bidders by
negotiations with bidders or to purchase the commodities or contractual
services in open market; provided, the price paid in the open market shall not
exceed the lowest contract bid price submitted for the same commodity or
contractual service. However, price and quality being equal, preference may be
given to responsible local bidders. In all other cases, the contract shall be
awarded by the City Council to the lowest and responsible bidder. In
determining the lowest and best responsible bidder, the purchasing agent and
City Council shall take into consideration the quality offered and its conformity
with the specifications, the delivery and discount terms and conditions of the
bid, the service reputation of the bidder and other information and data required
to prove his responsibility.
(d)
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Contracts for personal property sales shall be awarded by the City Council to
the highest responsible bidder and shall be subject to all other applicable
requirements of this section.
(e) It shall be the duty of the purchasing agent to discourage uniform bidding by
every possible means and to endeavor to obtain as full and open competition
as possible on all purchases and sales. Accordingly, the purchasing agent may
require each bidder to accompany his bid with a statement made under oath
that he has not been a party with other bidders to an agreement to bid a fixed
or uniform price or to "peel" bids or to bid in any particular relationship to the
bid of any other bidder or to cause any other person or legal entity not to bid.
Violation of such statement shall render void the bid of such bidders. Any
disclosure to, or acquisition by, a competitive bidder, in advance of the opening
of the bids, of the terms and conditions of the bid submitted by another
competitor shall render the proceedings void and shall require readvertising for
bids.
(fl Bidders shall be entitled to return of bids of security; provided, that if the
successful bidder does not enter into a contract within ten days after the
mailing of notice of award of the contract, he shall forfeit in cash an amount
equivalent to the amount of any surety which accompanied his bid, unless the
City is responsible for the delay. He shall also be held liable for any cost in
excess of his bid price which the City incurs in purchasing the commodities or
services elsewhere; provided, however, that in the case of bids for contracts for
public projects, as defined in Chapter 6, Division 3, of Title 4 of the Government
Code of the State, the provisions of sections 37933 -37935 of such Code shall
govern.
(9) The successful bidder may be required to furnish surety in the form of a
certified cashier's check or bond for the faithful performance of the contract in
the amount specified in the contract bid form.
(h) Bidders who regularly do business with the City shall be permitted to file with
the purchasing agent an annual bid bond and an annual performance bond in
an amount established by the purchasing agent. Such annual bonds shall be
acceptable as surety in lieu of the furnishing of surety with each individual
transaction; provided, that where required by law a copy of such bond shall
accompany the bid.
(i) Nothing contained in this section shall prohibit the purchasing agent from
negotiating and entering into contracts for personal services without formal bid
procedures.
U) Nothing contained in this section is intended to be in conflict with applicable
state law including Sections 37901 and 37902, and Sections 37931 through
37935, of the Government Code of the State.
(TCC -1, Sec. 2 -65 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 588, Sec. 1; Ord. No. 871, Sec. 6, 5- 17 -82; Ord.
No. 1287, Sec. 3, 8- 16 -04)
Purchases and Sales; Open Market
(1) If the amount of expenditures for a contractual service or for a commodity or for a
class of commodities normally obtainable from the same sources of supply, or a sale
of personal property which has been found by the City Council not to be required for
public use, is estimated to be less than Ten Thousand Dollars ($10,000.00), it shall be
an open market transaction and shall not be subject to the requirements of section
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1625c(3). However, all such open market transactions involving in excess of Five
Hundred Dollars ($500.00) shall wherever possible, be based on at least three (3)
competitive bids.
(2) The purchasing agent shall solicit bids by direct mail requests to prospective bidders
by telephone, by legal advertising, or by posting a copy of such invitation to bid on a
public bulletin board in a prominent place in City Hall.
(3) Written bids shall be submitted sealed to the purchasing agent. All written bids shall
be opened at the time and place stated in the invitation. The purchasing agent shall
make a tabulation or other record of all written and telephone bids and such records
shall be open to public inspection during regular business hours for at least thirty (30)
days after the date of the bid opening or telephone transaction.
(4) All open market purchases shall be awarded to the lowest and best responsible
bidder. However, price and quality being equal, preference shall generally be given to
responsible local bidders.
(TCC -1, Sec. 2 -68 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6,5-17-82)
e.
Purchases of Patented or Proprietary Articles
(1) When the City requires supplies, materials or equipment which are produced by only
one (1) manufacturer, the purchasing agent shall specify such manufacturer's make or
brand in the invitations to bid and shall obtain competitive bids from authorized
dealers or distributors of such manufacturer. If such manufacturer is the sole bidder
and sole source of supply, the purchasing agent is authorized to negotiate an open
market order or contract with the manufacturer at prices and on terms most
advantageous to the City.
(2) When the City requires supplies, materials or equipment which are patented or
proprietary and which are obtainable in two (2) or more equally satisfactory and
competitive makes, brands or types, the purchasing agent shall list such acceptable
and competitive makes, brands or types in the invitations to bid. Such lists shall also
include the phrase "or equal" to permit bidders to bid on alternate or additional makes,
brands or types. It shall be incumbent on each such bidder to prove to the satisfaction
of the City that the alternate or additional make, brand or type which he offers is
equal, in quality or performance, to those listed in the invitation to bid.
(TCC -1, Sec. 2 -68 10rd. No. 277; Ord. No. 284, Secs. 1, 2: Ord. No. 871. Sec. 6, 5- 17 -82)
Purchases; Personal
Purchases of supplies or equipment for the personal use of an official or employee of the
City shall be made by the purchasing agent or by an agency to which he has voluntarily given an
exemption in accordance with Section 1624a, only when the item or items are required parts of a
worker's equipment and are necessary to the successful performance of the duties of such City
official or employee.
(TCC -1, Sec. 2 -71 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6: 5- 17 -82)
9
Purchases; Unlawful
(1) If any agency purchases or contracts for any supplies, materials, equipment or
contractual services contrary to the provisions of this Part, such purchase order or
contract shall be void and of no effect, unless thereafter ratified by the person or body
required by this Part to approve such purchase or contract.
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(2) It shall be unlawful for any agency to split its requirements for supplies, materials,
equipment and contractual services into estimated amounts of less than Ten
Thousand Dollars ($10,000.00), in order to evade the provisions of Section 1625c.
(7CC -1, Sec. 2- 70 10rct. No. 277; Ord. No. 284, Secs. 1, 2: Ord. No. 871. Sec. 6. 5- 17 -82)
h
Types of Contracts and Purchase Orders
(1) It shall be the responsibility of the purchasing agent:
(a) To reduce, to the maximum extent possible, the number of purchase
transactions by combining into bulk orders and contracts the requirements of
agencies for common -use items or items repetitively purchased.
(b) To develop and use those types of contracts and purchase orders which will
reduce to the minimum the accompanying paper work and which in other
respects will be most advantageous to the City.
(2) In carrying out the provisions of Section 1625d, the purchasing agent is authorized to
prescribe the use of various types of contracts and orders, including, but not limited to,
the following:
(a) Definite- quantity contracts, whereby the contractor agrees to furnish a specified
quantity of supplies, materials or equipment at a specified time.
(b) Indefinite- quantity contracts, whereby the City agrees to obtain from the
contractor all its requirements for specified supplies, materials or equipment in
an estimated but indeterminate amount during a prescribed period of time at a
definite unit price or at a specified discount from list or posted prices.
(c) Price agreements, whereby the contractor agrees to supply the City
requirements for items, such as replacement parts for different makes of
mechanical or automotive equipment, during a prescribed period of time at a
definite unit price or at a specified discount from list or posted prices. (TCC -1,
Sec. 2 -67 /Ord. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5 -17-
82)
Debarment of Irresponsible Bidder
The purchasing agent may determine and declare a bidder to be irresponsible for the
reasons cited in Section 1622, may remove his name from the bidders list and may debar him from
bidding for a reasonable period, not less than one (1) year. Such debarred bidder shall be notified
in writing of such action and shall be furnished with a statement of the reasons therefor. (TCC -1,
Sec. 2 -72 10rd. No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5- 17 -82)
1
Inspection of Materials, Equipment, etc.
(1) The receiving agencies shall inspect deliveries of supplies, materials and equipment
or the furnishing of contractual services to insure their conformance with the
specifications set forth in the purchase order or contract.
(2) Any agency which has the necessary facilities and staff for adequate inspection may
be authorized and directed by the City Council, on the recommendation of the
purchasing agent, to inspect deliveries made to other agencies.
(3) The purchasing agent shall have authority to require chemical and physical tests of
samples submitted with bids and samples of deliveries to the extent necessary to
determine their quality and conformance with the specifications. For such tests, the
purchasing agent shall have authority to make use of laboratory facilities of any
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agency or to engage the services of any outside laboratory. (TCC -1, Sec. 2 -73 /Ord.
No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5- 17 -82)
Storerooms
The purchasing agent may operate storerooms for the storage of common -use items. He
shall be responsible for the safekeeping and proper storage and handling of all supplies, materials
and equipment therein. In accordance with Section 1623c, he may also prescribe and require the
maintenance of a perpetual inventory system showing the quantitative amounts and monetary
values of the inventories in any storerooms operated by other agencies. (TCC -1, Sec. 2 -74 /Ord. No.
277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 6, 5- 17 -82)
1626 DISPOSITION OF PROPERTY
a
Surplus, Obsolete, etc., Commodities
(1) All agencies shall submit to the purchasing agent at such times and in such form as
he shall prescribe, reports showing stocks of all supplies, materials and equipment
which are no longer used or which have become obsolete, worn out or scrapped. The
purchasing agent shall have authority to transfer any such commodities which are
usable to another or other agencies in lieu of filling requisitions for the purchase of
new and additional stock of the same or similar articles.
(2) The purchasing agent shall make a written estimate of the value of any surplus items
not usable by any City agency or not required for public use. The purchasing agent
shall have the authority to sell all such supplies, materials and equipment which
cannot be used by any agency or which have been found by the City Council not to be
required for public use or to exchange or trade in such articles in part or full payment
for new supplies, materials or equipment of a similar nature. Any such sale, exchange
or trade -in shall be made in accordance with Section 1625c or Section 1625d,
whichever is applicable. The purchasing agent shall report in detail upon any such
sale to the City Council within forty-five (45) days thereafter. (TCC -1, Sec. 2 -75 /Ord.
No. 277; Ord. No. 284, Secs. 1, 2; Ord. No. 871, Sec. 7, 5- 17 -82)
b
Unclaimed Property in Possession of Police Department
(1) Unclaimed property defined. "Unclaimed property" is all personal property, the title of
which is not vested in the City of Tustin, which property has come into the possession
of the City of Tustin as lost property, property which has been confiscated or
impounded by the City as being in violation of law or any other personal property
coming into possession of the City of Tustin which is not specifically provided for by
any other provision of law.
(2) Procedure.
(a) If the estimated value of the unclaimed property exceeds ten dollars ($10.00)
the Police Department or the administrative official who obtained possession of
the property shall, within ten (10) days of receipt of the property, notify the
owner, if his identity is reasonably ascertainable, that it possesses the property
and where it may be obtained. The Police Department or the administrative
official may require payment by the owner of a reasonable charge to defray
costs of storage and care of the property.
(b)
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If the owner appears within ninety (90) days of the notification given in
subparagraph (a) above, proves his ownership of the property, and pays all
reasonable charges, the Police Department or the administrative official shall
restore the property to him.
(c) After retention of the property for four (4) months, the property may be:
1 • Sold at public auction to the highest bidder;
2. Retained by the City of Tustin if it is determined that the property is
needed for a public use, and after public notice has been made of the
City's intention to retain the property;
3• Where the property is a bicycle or toy in the possession of the Police
Department, the property may, at the discretion of the Chief of Police, be
given to the Welfare Department of the County, or to any charitable or
nonprofit organization authorized under its Articles of Incorporation to
participate in a program or activity designed to prevent juvenile
delinquency and which is exempt from income taxation under federal or
state law, for use in any program or activity designed to prevent juvenile
delinquency.
(3) Public sale or retention of property.
(a) When it is determined that unclaimed property, valued at fifty dollars ($50.00)
or more, shall be retained or shall be sold at public auction, the Police
Department or the administrative official, shall cause notice of such sale or
retention to be published at least five (5) days before the time fixed therefor
once in a newspaper of general circulation published in the -county in which
such property was found or confiscated, or otherwise in Orange County.
(b) Such notice shall contain the time and the place of the sale.
(c) Any property remaining unsold after being offered at such public auction may
be destroyed or otherwise disposed of by the City. (Ord. No. 687; Ord. No. 871,
Sec. 7, 5- 17 -82; Ord. No. 1171, Sec. 2, 8 -5 -96)
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