HomeMy WebLinkAboutORD FOR ADOPTION 05-17-82ORDINANCES FOR ADOPTION
NO. 1
5-17-82
O~OI~ANC~ NO. 871
An Ordinance of the City Council of the City of Tustin, California,
AMENDING ~HE ~JSTIN CITY ~ODE RELATIVE TO FINANCIAL AND PURCHASING
PROCEDURES OF THE CITY OF TUSTIN
Ordinance No. 871 had first reading and introduction at the May 3,
1982 Council meeting.
~ATIO~:
M. O. - That Ordinance No. 871 have second reading by title only.
M. O. - That Ordinance No. 871 be passed and adopted.
(ROLL CALL VOTE)
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ORDINANCE NO. 871
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN, CALIFORNIA, AMENDING THE TUSTIN CITY
CODE RELATIVE TO FINANCIAL AND PURCHASING
PROCEDURES OF THE CITY OF TUSTIN.
The City Council of the City of Tustin, California, does brdain as follows:
1. That Section 1611 of the Tustin City Code is hereby amended to read as
follows:
1611. Finance Department
a. Established
A Finance Department is hereby established to be responsible for the account-
ing and financial functions and activities of the City.
b. Responsibilities
The Finance Department shall perform the following duties and responsibilities,
subject to the policies and direction of the City Manager:
(~) Maintain and operate the general accounting system of the City
and its various department.
(2) Perform all accounting functions and duties in accordance with
appropriate municipal accountingprocedures.
(3) Keep and maintain appropriate inventory records of City property.
(4) Perform functions relating to the administration of taxes levied and
collected by the City.
(5) Perform all assigned municipal functions and duties relating to
preparation of, auditing, presenting and disbursement of claims and
demands against the City, including payroll.
(6) Supervise purchases of supplies, goods, wares, merchandise, equipment
and materials required by the City.
(7) Assist in the preparation of an annual budget and in its admini-
stration.
c. Finance Director
The Finance Department shall be managed and directed by the Finance
Director, subject to the policies and direction of the City Manager.
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(1)
The statutory accounting and financial duties imposed upon the City
Clerk by Government Code Sections 40802 throuqh 40805 shall be performed Dy
the Finance Director.
(2) If so appointed by the City Council, the Finance Director shall assume
the title of and perform the duties of City Treasurer.
Audit and Approval of Demands
Claims and demands shall be audited by the Finance Director or such person
as he may designate, shall be certified as to their accuracy and the avail-
ability of funds for payment thereof. The register of audited demands shall
be submitted to the City Council for confirmation prior to payment, provided,
however, that payroll warrants and checks and warrants and checks drawn
for payment of demands certified or approved by the Finance Director or designee
as conforming to a budget approved by ordinance or resolution of the City
Council need not be audited by the City Council prior to payment.
Budgeted demands paid by warrants or checks prior to audit by the City Council
shall be presented to City Council for ratification and approval at its first
meeting after delivery of the warrants or checks.
e. Checks and Warrants
(i)
No check, order or warrant upon the City treasury shall be drawn unless
in pursuance of an ordinance, resolution, or minute order duly adopted bp
the City Council and unless there are sufficient funds in the fund upon
which it is drawn.
(2)
All checks, orders and warrants upon the City treasury for payment of
any money sh~ll bear the signature of any two (2) of the following:
City ManAger,City Clerk, City Treasurer, or Finance Coordinator.
That Section 1621 of the Tustin City Code is hereby amended 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 assure the quality of
purchases, a purchasing policy is hereby adopted.
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This part shall be known as and may be cited as
the 'Purchasing System'."
3. That Section 1622 of the Tustin City Code is hereby
amended to read as follows:
"1622 DEFINITIONS
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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 on 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.
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.
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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."
4. That Section 1623 of the Tustin City Code is hereby
amended to read as follows:
"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.
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 using a~ency 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 Ten Thousand Dollars
($10,000);
(2) Negotiate and recommend the execution
of contracts for the purchases of supplies and equip-
ment;
(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
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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) 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 insure 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;
(1t) Maintain a bidder's list, vendor's catalog
file, and the records needed for the efficient operation
of the purchasing function; and
(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."
5. That Section 1624 of the Tustin City Code is hereby
amended to read as follows:
"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.
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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);
(2) For the purposes of this Section:
(a) 'impossible' shall mean actual im-
possibility or extreme and unreasonable difficulty
or expense;
(b) 'impractical' shall mean incapable
of being performed by the bid procedure;
(c) 'incongrous' shall mean not suitable
to the bid procedure; and
(d) 'emergency' shall mean circumstances
or conditions that pose an immediate threat to public
health, welfare or safety as determined by the City
Manager for 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.
c. 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."
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~? I~ 6. That Section 1625 of the Tustin City Code is hereby
amended to read as follows:
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"1625 PURCHASING PROCEDURE
a. Requisition and Estimates of Future Requirements
Ail 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 supplies, materials, equipment and contractual
services in such form, at such time and for such
future periods as the purchasing agent shall prescribe.
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.
c. Purchases and Sales: Competitive Bidding
(1) Ail 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 equip-
ment 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 Ten Thousand Dollars ($10,000), 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 Govern-
ment Code Sections 37901 and 37902 shall still be
subject to the solicited bid process if the contract
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cost is estimated to exceed $5,000.
(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 adjacent to
the purchasing agent's office or on a bulletin board
in a prominent place in City Hall.
(c) Ail 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 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
negotiations with bidders or to purchase the
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commodities or contractal 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 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.
(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
contract, he shall forfeit in cash an amount equivalent
to the amount of 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.
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(g) 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 to negotiate,
or the City Council to enter into contracts for
services of a professional nature, including architectural
and engineering services without formal bid procedures.
Except for those items so required by Government
Code Sections 37901 and 37902.
(j) Nothing contained in this section
is intended to be in conflict with applicable state
law including Sections 37901 and 37902, and Sections
37931 to 37935, of the Government Code of the State.
d. 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 source or 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), it shall be an 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 ($500) 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. Ail written bids shall
be opened at the time and place stated in ~he
invitation. The purchasing agent shall make a
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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) Ail 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.
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
quality or performance, to those listed in the invitation
to bid.
f. 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.
Purchases: Unlawful
(1) If any agency purchases or contracts
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'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.
(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),
in order to evade the provisions of Section 1625c.
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.
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i. 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 of time, 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 thereof.
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
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 agency
or to engage the services of any outside laboratory.
k. 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."
7. That Section 1626 of the Tustin City Code is hereby
amended to read as follows:
"1626 DISPOSITION OF PROPERTY
a. Surplus, Obsolete, Etc., Committee
(1) All agencies shall submit to the purchasing
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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.
bo
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 Dcllars ($10) the Police Depart-
ment 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.
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(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 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:
(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, and after
public notice has been made of the City's
intention to retain the property.
(3) Public Sale or Retention of Property
(a) When it is determined that unclaimed
property, valued at Fifty Dollars ($50) 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."
PASSED AND ADOPTED at a regular meeting of the City
Council held on the day of , 1982.
ATTEST:
MAYOR
CITY CLERK
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