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HomeMy WebLinkAboutNB 4 PURCHASING ORD. 04-05-82aGENDA ~TE: Ma~ch 31, 1982 NEW BUSINESS 4~5~82 Inter-Corn TO: FROM: $ UBJ ECT: HC~C~ABLE MkYCR A~D CITY CC~.I T, BILL ~JST~, CITY MANAGER PROPOSED ~ TO CITY PUN2F~%S~ CRDINANC~ It is reeo~l~ended that following the City (Duncil's review of the proposed amenc~nts to the purchasing ordinanc~ it direct staff to prepare an ordinance which includes the amendments for introduction at the April 19, 1982 Council meeting. DISCUSSIC~: Attached for the City Council's review is a memorandum frcm the Finance Director concerning proposed ~endments to the City's purchasing ordinance. Following the City Council's review of the proposed amendments it ~ould be aPPropriate for an ordinance to be drafted. BILL HUSTCN, City Manager DATE: 31, 1982 Inter-Corn TO: FROR: SUBJECT: BTT.T~ ~3ST~q, CITY MANAGER RC~ NAULT, FINANCE DIRECTOR PRC~C~ED CMANGE~ %O FJRCHASING CIIDINANCE C~ TUSTIN CITY proposed changes to the Tustin City (]ode pertaining to Purchasing. Part of the map~gement policy of control and accountability ooncerning fiscal transactions of the City necessitate certain changes to the City's Purchasing Ordinance. The primary changes revolve around establishing the City Manager as the Purchasing Agent and clearly establishing his authority to delegate those powers and duties to other officers or employees of the City; raising the formal bid requirement from $2,500 to $10,000; and formally granting the authority to substitute the purchasing procedures of the State Department of General Services or the Orange Oounty Cooperative Purchasing Program if it is determined that it would be nDre cost effective ~hese changes will provide the nucleus for either a centralized or decentralized purchasing system; recognize the current e~onomic market place so that when warranted the most eco~c~ic bids can be taken advantage of in a more oompetitive manner. (The original dollar limits were set in the early 60s); provide a formal means of transferring the purchasir~ agent's duties to a larger agency when it can demonstate a benefit to the City. The City Attorney has reviewed the proposed ordinance and has suggested ~hanges which have been incorporated in the text before you. For your convenience the sections to be deleted have been lined out and the new sections have been capitalized in bold type. attachment CHAPTER 6 FINANCE CHAPTER INDEX PART i PART 2 GENERAL 1611 CHECKS AND WARRANTS PURCHASING 1621 ADOPTION OF PURCHASING SYSTEM 1622 DEFINITIONS 1623 PURCHASING AGENT 1624 EXCEPTIONS TO PURCHASING PROCEDURE 1625 PURCHASING PROCEDURE 1626 DISPOSITION OF PROPERTY ~3STIN CITY CCDE FINANCE CHAPTER 6 FINANCE PAR~ 1 C4~TERAL 1611 a Authorization No check, order or warrant upon the City Treasury shall be drawn unless in pursuance of an ordinance, resolution, or motion duly passed by the City Council and unless there is sufficient money in the treasury; provided however, that checks, orders or warrants for salaries ar~ approved obligations my be drawn in advance add approved by the City Council at the next regular ~cting thereof. (Ord. No. 388) b Signatures All checks, orders or warrants shall bear the manual signature of the City 9_~minickr~or MAN~&g~, together with the signature of either the Ma}Dr or. CITY ~mK , the City Treasurer, C~ ~ ~ GOCE~ (Ord. No. 388) Records to be Kept All records of checks, orders and warrants shall be kept in accordance with modern, generally accepted, "~-~cip'~ accounting practices, and in accordance with the laws of the City of Tustin and the State of California. (Ord. NO. 388) TUSTIN CITY CODE FINANCE PART 2 PURCHASING 1621 ADOPTION OF PURCHASING SYSTEM In order tx) 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 assure 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. 2-57/0rd. No. 277; Ord. No. 284, Secs. 1,2) 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. 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. TUSTIN CITY CODE FINANCE 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 type-written 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 he 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, but excluding £ervice£ or netorialc fu~ishod "in kind" in lieu of cas~ to indigcnbs. (TCC-1, Sec. 2-58/0rd. No. 277; Ord. No. 284, Sees. 1,2) 1623 PURCHASING AGENT a Creation of Position There is hereby created the position of purchasing agent, who shall be the City Administrator MANAGER. THE CITY MANAGER MAY DELEGATE, SUBJECT TO HIS CONTROL AND DIRECTION, ANY OF THE POWERS AND OUTIES CONFERRED UPON HIM AS PURCH~ING AGENT TO ANY OTHER OFFICER OR EMPLOYEE OF THE CITY. (TCC-I, Sec. 2-59/0rd. No. 277, Ord. No. 284, Sees. 1,2) 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 all supplicc, materials, equipment and oonl~rac~ual scrvioes required by the agencies in amounbs or cstimatmd amounts of Twonl~y five - Hundnod Dollars ($2,$00) or loss. (1) PURCHASE OR CONTRACT FOR THE SUPPLI£S ANO EQUIPMENT REQUIRED BY USING AGENCY IN ACCORDANCE WITH THE PURCHASIN(i PROCEDURES SET FORTH IN THIS ARTICLE and submit to the City Council for awar~ contracts for all purchases of supplies, materials, equipment and contractual services in amounts or estimated amounts in excess of Twenty five Nundre<t Dell~r~ ($2.~00) TEN THOUSAND COLLARS ($10,000); TUSTIN CITY CODE FINANCE .(2) Use standard [pe¢ifications wherever they are applicable to purchase orders and centract£ and insure compliano~ with such ~ecificationc through adequate inspection of deliveries. (Z) NEGOTIATE ANO RECOI~qEND THE EXECUTION OF CONTRACTS FOR THE PURCHASES OF SUPPLIES ANO EQUIPMENT; (3) Transfer bcbwoon agencies, supplies, material; and equipment which are no loner needed by a holding agency but which can bo ur, od by the receiving asency. (3) ACT TO PROCURE FOR THE CITY THE ~EDEO QUALITY IN SUPPLIES ANO EQUIPMENT AT THE LE/LST EXPENSE TO THE CITY; (4) E~changc, ~radc in or sell thosc supplies, materials and equipment which are ~urplus, eb$olete er unused and which are found by the City Council not te bo required for public uee. (4) ENDEAVOR TO OBTAIN AS FULL AND OPEN CONPETITION AS POSSIBLE OB ALL PURCHASES; (6) Develop, wi~h tho approval ef the City Attorney as to legal sufficiency, ~tanderd fQrms and cenditiQn~ ef invitations t~ bid and purchase order~ and contracts, develop and preocribe the use by agencies of other forms required in carrying e~t the previ~ien~ af this article and amend or eliminate any such form~. (5) PREPARE RULES GOVERNING THE PURCILRSE OF SUPPLIES AND EQUIPMENT FOR THE CITY; , (6) PREPARE REVISIONS Alii) ~I~ENDMENTS TO THE PURCHASING RULES; (7) KEEP INFOR~EO ON THE CURRENT DEVELOPMENTS IN THE FIELD OF PURCHASING ANO THE PRICES, MARKET CONDITIONS, ANO I~W PRUDUCTS; (8) PRESCRIBE AND MAINTAIN SUCH FOIIqS AS ARE REASONABLY iECESSARY FOR THE OPERATION OF THE PROVISIONS OF THIS ARTICLE AND OTHER RULES AND REGOLAT IONS; (9) SUPERVISE THE INSPECTION OF ALL SUPPLIES AND EQUIPMENT TO INSURE THEIR CORFOi~tANCE WITH SPECIFICATIONS; (10) DIRECT THE TRANSFER OF SURPLUS OR UNUSEO SUPPLIES AND EQUIPMENT BETWEEN AGENCIES AS I~EDED AND THE SALE OF ALL SUPPLIES ANO EQUIPMENT WHICH C~NOT 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 E1:FICIENT OPERATION OF THE PURCHASING FUNCTION. -+6-)-(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. (TCC-1, Sec. 2-60/0rd. No. 277; Ord. No. 284, Secs. 1,2) TUSTIN CITY CODE FINANCE e Pnepa~ation of P~oocdu~al Regulation~ The purch~ing a~ient ic here~y authorized to prepare procedural regulations to amplify the provisien~ of thi~ Part, to ~bmit saoh regulations and amen~ents theret~ tho Ciby ~uncil for apparel, and, afar ~ch apparel, to promulgatc' and ~ onfo~ ~mplianco with cuch ~qulationc including, but not limi~d ~ ~e following. A ~py of ~ch resulationc ~all bo available in the purchasing ~ent'~ ~ffi~e and ~hall be ~en to publi~ in~e~tien during ~egula~ bucino~ hour~. (1) Tho proc, oduro for procedure for handling bide, including l~holr custoqy and opening and tabulation, rejection an~ reaJvertisin~ an~ the, determining the lowest respen[ible bidder. (2) The pr~eUur~ for ~ecurino from bidders end prospective bidders the data nooe~sary ~o dctcrminc whcthcr o~ not they are responsiblc. (~} The procedure for inspection ef deliverie~ of supplies, m~terials. equipment and ooni~r~ctu~l semvic~s~ (4) The procedure for making emergency purchase~. (6) The proccdurc for r~porting r~coipt of deliveries ef £upplies, material~, equipment an~ contractual ~ervice~ required by the u~in9 agencies. (~) The procedure for ;ubmittin~j and approving r~qui;ition~ far the ~upplie~, material~, equipment and centr~tual ~ervice~ required by the u~ing (7) The procedure for receipt and ~xemination prier te audit ef invoices f~r ~upplte~, material~, equipment and contractual ~ervico~ delivered. (8) The precedur~ for control ~nd ~afeouarding of ~uRplie~, materials ~-,d equipment in ~tereroem~ er it ~ter~ge Reint£, including the maintenance ef a perpetual inventory ~ystem ~hewino th~ quantitative ameunt~ a~ m~netary value ef tho inventories. (9) Such other matter~ ac may be nececcary to give effect te previ~ien~ ef thi~ Pert and any amendmonl~ tho~to. (TC~ 1, ~ec. 2 6Z/Ord. Ne. 277; O~d. No. 2~4, Soc~. 1,2) 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 TUSTIN CITY CODE FINANCE contractual services, independently of the purchasing agent; but such purchases or contracts shall be made in confomity 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. 2-62/0rd. No. 277; Ord. No. 284, Secs. 1,2) b Emergency Purchase= (1) An emergency shall bc deemed to cxist whcn a b~oakdown in machincry er in an ec~ential £ervice o¢curc or when unforeseen circumstanco£ arise; including ~elay£ by ¢ontr~cter£, ~el~y in tran£pertation an~ unanticipate~ volume of work. ,(2) If an emergency occurs during r~gwlar business hours, the he~ or ether employee of the using m3ency shall immediately notify th~ p'"rha¢ino ·gent, who daall either purchac~ ~he ~quired commodity or au~orize t~ u~i~ ~ency~e ~ ~e. If the purchasing agent i~ n~t ~vailable, the hei~ ~f the u~i~ ~e~y ~hall notify the City Council er Mayor before maki~ the, p~rcha~- If mny emer~ncy o~urs at tams other than regular working b~:ino~ hour:, ~c a~cy may pu~ di~%ly ~o ~odity or ~odities r~uireU. If the octimatod ~st of ~e ~e~cy purcha~ exceeds Two Hundrea, ~Dollars ($200), ~c head of ~ch ag~cy ~all, wherever poccible, ~ure ~mpctitivc ~lcphonc bi~ and o~ dclivcry ~ bc madc by ~o lowos~ re[peri,i bio bidder. On every emergency purchaco m~de, t~ agency he~d shall, not latcr ~an ~ (3) days ~oroaftor, ~bmit ~ tho purchasing ~gent · requisition, a ~abulation of bids ~ceiveU, if any, a delivery ro~ipt and a, written explanation ef the circumstances ef the emergency. The r~ords of such 9mergen~y transmction¢ shall bo open ~ public im~oction during regular busine¢~ he~rs. (3) Tho pwrcha;ing agent shall £~bmit monthly to the City C~uncil a list' of all emergency purcha~c in excec£ ef Five H~ndre~ Dollars ($500) each, made du~in~3 the preceedin~ month, with an ex~olanatiom of the circumstances of o~ch. (TCC 1, Sec. 2 63/OrU. No. 277, Ord. No. 284. S~s 1,2) b BIDOI~: EXCEPTIONS (1) PURCHASES OF SUPPLIES AND EQUIR4FJJT SHALL BE BY BIDDING PROCEDURES PURSUANT TO THE PROVISIONS OF SECTION 1625c OF THIS ARTICLE. BIDOING SHALL BE DISPENSED ~ITH UPON AUTHORIZATION OF THE CITY #ANAGER ~HERE BIDDING WOULD BE IMPOSSIBLE, IMPRACTICAL OR INCONGRUOUS; IN All BqERGENCY; ~HEN THE COI~OUITY CAN BE OBTAINED FROM ONLY ONE VENDOR, OR ~NERE THE PRICE IS CONTROLLED BY LAR; OR NHEN THE /NOUNT INVOLVED IS LESS THAN FIVE HUNDRED DOLLARS ($500). TUSTIN CITY CODE FINANCE (2) FOR THE PURPOSES OF THIS SECTION: (a) "~POSSIBLE" SHALL MEAN ACTUAL XMPOSSIBILITY OR EXTRE)IE AND UNREJLSONABLE DIFFICULTY OR EXPENSE; (b) "]NPRACTICAL" SHALL MEAN INCAPABLE OF BEING PERFORItED BY THE BID PROCEDURE; Alii) (c) "INCONGRUOUS" SHALL MEAN NOT SUITABLE TO THE BID PROCEDURE. (d) "EMERGENCY" SHALL MEAN CIRCtl4STANCES OR CONDITIONS llLRT POSE AN Zl~qEOIATE THREAT TO PUBLIC HEALTH, MELFARE OR SAFETY AS DETElaqINED BY THE CITY M/UIAGER FOR WHICH NO T/NE EXISTS TO SEEK COUNCIL ACTION OR APPROVAL, IF OTUERWISE SUCH ACTION OR APPROVAL WERE REQUIREO. (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 SCHEDULEO COUNCIL MEETING. c Civil Defense Exemption · The provisio~ of bhis F~art shall apply to thc purchasc, sto~agc one disposal ef itamg er servi¢oc required for civil dofence and disaster parpe£e only to the extent consistent with provisions of City, State and Federal law relating to ~uch mattar£ and with the civil defense and disaster plan of the City in the event of any emergency encompassed by such plan. (TCC-1, Se~ ~076/Ord No. 277, Ord. ~o ~4, ~r: 1,~) c OTHER EXCEPTIONS WHEN IN THE OPINION OF THE PURCRASING AGENT SUPPLIES, MATERIALS OR EQUIP)tENT CAll BE MORE EFFICIENTLY OR MORE CltEAPLY OBTAINED IF ACQUIRED ON BEHALF OF THE CIl~f BY THE STATE OEPARTHENT OF GENERAL SERVICES OR THROUGH THE COUNTY OF OILRNGE COOPERATIVE PURCILRSING PROGILaI4, THE PURCRASING AGENT SHALL SO ABVISE THE CITY COUNCIL. ACQUISITION OF ANY SUCH SUPPLIES, MATERIALS OR EQUIPMENT BY THE STATE DEPARTMENT OF GENERAL SERVICES OR THROUGH THE COUNTY OF OldE COOPERATIVE PUREHASTNG PROGILal4 MAY BE AUTHORIZED BY RESOLUTION OF THE CITY COUNCIL. 1625 PURCHASING PROCEDURE a Requisition 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 thereof. 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 TUSTIN CITY CODE FINANCE 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. 2-64/0rd. No. 277; Ord. No. 284, Secs. 1,2) b 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. 2-69/0rd. No. 277; Ord. No. 284, Secs. 1,2) 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 or personal property which has been found by the City Council not to be required for public use, is estimated to exceed. Five Thouoand Dollars (SS,000) TEN THOUSAND DOLLARS ($10,OGO), contract bid 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 GOVERM~ENT CODE SECTIONS 37901 AND 37902 SHALL STILL BE SUBJECT TO THE SOLICITED BID PROCESS IF THE CONTRACT COST IS ESTIMATED TO EXCEED $5,000.00. (Ord. No. 588, Sec. 1) (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 purchase 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 TUSTIN CITY CODE FINANCE adjacent to the purchasing agent's office or on a bulletin board in a prominent place in City Hall. (c) All bids shall be submitted sealed to the purchasing agent on the official contract bid form and in i bid envelope, furnishod by thc City which will have indicated thereon the class of commodities to be purchased and the established time for opening bids. IF DEE)4ED 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 his 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 drawing let~ in public 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) 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~,ha-l~#AY 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 T~3STIN CITY CCDE FINANCE render void the bid of such bidders. Any disclosure to, or acquisiticn by, a competitive bidder, in advance of the opening of the bids, of the terms an~ conditions of the bid submitted by another competitor shall render the proccc~ings void and shall require readvertising for bids. (f) 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 oontract, he shall forfeit in c~h an amount equivalent to the amount of surety which acco~i~anied his bid, unless the City is responsible for the delay. ~e shall also be held liable for any cost in excess of his bid price which the City incurs in purchasing the oo~modities 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. (g) ~he successful bidder shall ~ BE ~%~J11~ ~D 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 bo~d 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 oontained in this section shall p~ohibit the purchasing agent to negotiate, wibh~m~ fo~m-~ bid proo0durco or the City Council to enter into contracts for services of a professional nature, including architectural and engineering services ~ ECE~%L B/D I~c~r~BES. E~CEP~ [~E{ ~ i'J]gJS SO ~u~a~ BY ~ (~Og ~C~I(I~ 37901 A~D 37902. ~cthcr or not - ~ho _--~ount of caid _~_ntraot oaooodc T~onty Fi~o Rundrod Dcxllarc ($~,500). (j) ~ ~ntraok bid form~ ~_~ all oo~tgaotc chall bc a~rc~;od by ~%~ ¢i~ Ak~omoy ~ ~ form mn~ locality. (T~C-1, ~oo. ~ 6§/Q~d. ~. 277, Or~. ~. 2~4, $~. 1,2) .- (j) NO~n~G ~ ]lq ~m.~ S~C~iC~ IS ~ 37902, ~ f~C~IC~S 3793~ /O 37935, O~ ~ ~ {IDE C~ ~R g]l%TE. d Purchases and Sales: Open Market (1) If the ~ount of expenditures for a contractual service or for a commodity or for a class of commodities normal ly obtainable fro~ the same source or supply, or a sale of persoD~%l property whioh has ~cn four~ by the City Council not to be required for public use, is estimate~ to be less than ~ivm ~e"~mnd D~llar~ (~5,000)-TE~ ~]]OGSP/~) _ncg~JUq~ ($10,000), it shall be an TUSTIN CITY CODE FINANCE open market transaction and shall not be subject to the requirements of section 1625c(3). However, all such open market transactions involving in excess of Five Hundred Dollars ($$00) shall wherever possible, be based on at least three (3) competitive bids. (Ord. No. 588, Sec. 2). (2) The purchasing agent shall solicit bids by direct mail requests to prospective bidders fer the class of commodities being purcha£eU er £eld as lis~ed on thc biddcrs liz~ and BY TELEPHON£, BY LEGAl_ ADVERTISING, OR by posting a copy of such invitation to bid on a public bulletin board i= :r )Jjacent te hic office in a prominent place in City Hall.. Houevor, bi~ may be eeli¢ited by telephone for open market purchace~ er ~mle~ of le~c than Five Hundred Dellar~ ($500). (3) Written bids shall be submitted sealed to the purchasing agent i: :n envelepe fwrniohed by the City, indicating the cla~s of oommoditics to bc- purchased ~nU the ectabli~heU time fer epenin~ of the biU~. 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 ~nd ~11 epen market ~llec chall be marie ~o the highest - re,pan,able bidder? However, price and quality being equal, preference shall generally be given to responsible local bidders. (TCC-1, Sec. 2-66/0rd. No. 277; Ord. No. 284, Secs. 1,2) 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 and proprietary and which are obtainable in two (2) or more equally satisfactory and competitive makes, brands or type, 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 TUSTIN CITY CCDE FINANCE quality or performance, to those listed in the invitaticn to bid. (TCC-1, See. 2-68/Ord. No. 277; Ord. No. 284, Sees. 1,2) f Purchases: Personal Purchases of supplies or equitmnent for the personal use of an official or employee of the City shall be made by the purohasing agent or by an agency to whiah 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 ar~ are necessary to the successful performance of the duties of such City official or employee. (Tee-l, Se~. 2-71/Ord. No. 277; Ord. No. 284, Sees. 1,2) g Purchases: Unlawful (1) If any agency purchases or contracts for any supplies, materials, equipment or oontractual services oontrary to the provisions of this Part, such purchase order or contract shall be void and of no effect, unless thereafter ratified by the pers(~ or body required by this Part to approve such purchase or contract; p~vid~d. ~ha~ ~h~ mx~p~i~l ~h~ n~ ~.~ly to. F~h~-~ ~r ~ntrao~ ~'_bjoot to Sootion 1625d. ~1~o hea4 of tho a~oncy aF~vin~ ~h~ m~kino of £mch F~r~h~e ~N~_nva¢~i~n ~h=~ Mm per~ly liable for thc ~a~ount of cu~h pur~haoo ordo~ ~g ~gn~e~ =-d, if =~re~; r~ f~r Qu~ of Cit~, fundc, t2~ _--~0unt thorcof m~y bo roe~;o~ Ln *~ ~c of t~m ~i~y in (2) It shall be unlawful for any agency to split its requirements for supplies, materials, equi~m~ent and contractual services into estimated amounts of less than T~mnt~! f~ze M.,~d~ V~Al~s ($2,§~) TH/ ~ [X~IA~S ($1~,000), in order to evade the provisions of Section 1625~. (TCC-1, Sec. 2-70/Ord. No. 277; Ord. No. 284, Sees. ~,2) 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 cc~binin~ into bulk orders and contracts the requirements of agencies for co, non-use items or items repetitively p~rchased. (b) To develop and use those types of oontracts and purcba-~_e or, ers which will reduoe to the minim~n the accompanying paper work and whid~ 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 in ~_ho [~rooodm~_! ro~mlatior~_ adoptod - F~rsu=-k ~ Sm~i~n 162~¢ the use of various t2pes of contracts and orders, including, b~t not limited to, the following: ~dSTIN CITY CC~)E FINANCE (a) Definite-quantity contracts, whereby the contractor agrees to furnish a specified quantity of supplies, materials or equii~ent 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 ~pecified discount frcm 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. i Debarment of Irresponsible Bidder The purcbm-~ing agent may determine and declare a bidder to be irresponsible for the reasons cited in Secticn 1622, may remove his name frcm the bidders list and may debar him from bidding for a reasonable period of time, not less than one (1) year. Suah debarred bidder shall be notified in writing of such action and shall be furnished with a statement of the reasons thereof. (TCC-1, Sec. 2-72/Ord. No. 277; Ord. No. 284, Secs. 1,2) j 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 ar~ 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 ~JSTIN CITY CO~E FINANCE physical tests of samples submitted with bide 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 agency or to engage the services of any outside laboratory. (TCC-1, Sec. 2-73/Ord. No. 277; Ord. No. 284, Secs. 1,2) k Storerooms The purchasing agent-~%m~lA-M~Yoperate storerooms ha~ooftcr cot~abliohcd by thc City Ccun~il for the storage of co~s~-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, be may also prescribe and require the maintenance of a perpetual inventory system showing the quantitative sm~ounts and monetary values of the inventories in any storerooms operated by other agencies. (TCC-1, Sec. 2-74/Ord. No. 277; Ord. No. 284, Sees. 1,2) 1626 DISPOSITIC~ CF PROPEI~I~ a Surplus, Obsolete, Etc., fkmmittee (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 equilmment 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 ar~ 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 or thc City Council shall have the authority to sell all such supplies, materials and equi~raent which cannot be used by any agency or which have been found by the City ~ouncil 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 equilm~ent 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) ~3STIN CITY CODE FINANCE b Unclaimed Property in Possessicn of Police Depa£~',~nt ( 1 ) Unclaimed Property Defined "Unclaimed Property" is all personal property, the title of which is not vested in the City of Tustin,, which property b~ ~ome into the possession of the City of Tustin as lost property, property which has bcc. n 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 p-ovision of law. (2) Procedure (a) If the estimated value of the unclaimed property exceeds Ten Dollars ($10) 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 a~d 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) 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 cba~ges, 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: (i) sold at public auction to the highest bidder (ii) retained by the City of Tustin if it is determined that the property is needed for a public use, ~ ~-~ l~r.?C NG~ICE [~%S (3) Public Sale (a) When it is determined that unclaimed property, VALUe) ~ ~ D(~I,%~S ($50) f~ M[~E, ~%LL ~ ~ CR shall be sold at public auction, the Police Department or the ~inistrative official, shall cause notice of such sale (~ ~(~ 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 four~ 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 aucticn may be destroyed or otherwise disposed of by the City (Or~. No. 687).