HomeMy WebLinkAboutORD 277 (1965) [
ORDINANCE NO. 277
AN ORDINANCE OFTHE CITY OF TUSTIN, CALIFORNIA,
AMENDING THE TUSTIN CITY CODE TO PROVIDE REGULA-
TIONS AND PROCEDURES FOR THE PURCHASE AND DISPOSAL
OF SUPPLIES, SERVICES AND EQUIPMENT.
The City Council of the City of Tustin, California, does
ordain as follows::
The Tustin City Code is hereby amended. by the addition
of Article V, Purchasing and Disposal, Sections 2-26 to 2-45,
to be added to Chapter 2, to read as follows:~
ARTICLE V, Purchasing and Disposal
Section 2-26:! Adoption of PurchasinglSystem.
In order to establish efficient procedures for the purchase of
supplies, services and equipment, to secure for the City supplies,
services and equipment st the lowest possible cost commensurate
with quality needed, to exercise positive financial control over
purchases, to clearly define authority for the purchasing
function and to assure the quality of purchases, a purchasing
policy is hereby adopted.
This A~rticle shall be known as and may be cited as the
"Purchasing System."
Section 2-27: Definitions.
A!s used in this Article, the following words and terms shall be~
defined. ss follows, unless the context indicates that a different
meaning is intended: ~
.~Agency" and ."Using Agency" mean 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.
".S~upDlies," "Materials" and "E~uipment" mean 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
services or materials furnished "in kind" in lieu of cash to
indigents.
"Contractual Services" means any and all telephone, gas, water,
electric service; the rental of equipment and machinery; and el.1
similar services provided by agreements, except agreements for
personal services, or for street improvement projects.
"Personal Services" means the services of architects, attorney's,
consultants, engineers or physicians, or other individuals or
organizations possessing a high degree of professional or technical
skill.
"Bidders List" means a current file of sources of supply of
articles for each category of commodities repetitively purchased
for City use.
"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.
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"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 he bids; and who has not violated, or attempted to violate,
any provision of this Article.
"Irrespomsible Bidder" means 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 Article, or a bidder
or prospective bidder who is known to have made slow or unsatisfactory
deliveries to other parties.
"Local Bidder" means a firm or individual who regularly maintains
a place of business and transacts business in, or maintains an
inventory or merchandise for sale in, or is licensed by, or pays
business:taxes to, the City.
Section 2-28: Purchasing Agent
There is hereby created the position of Purchasing Agent, who shall
be the City Administrator.
Section 2-29: Powers and Duties of the Purchasing Agen.~
The Purchasing Agent shall, subject to the provisions of this Article,
and other applicable provisions of the Tustin City Code and of
State law:
An!. Purchase ati supplies, materials, equipment and contractual
services' required by the agencies in amounts or estimated amounts ~-~
of $2,500.00, or less; and submit to the City. Council for award
contracts for all purchases of supplies, materials, equipment and
contractual services in amounts in excess of $2,500.00.
B Use standard specifications wherever they are applicable to
purchase orders and contracts, and insure compliance with such
specifications through adequate inspection of deliveries.
C. Transfer between agencies supplies, materials and equipment
which are no longer needed by a holding agency, but which san be
used by the receiving agency.
D. Exchange, trade in or sell those supplies, materials and
equipment which are surplus, obsolete or unused and which are found
by the City Council not to be required for public use.
E. Develop, with the approval of the City Attorney as to legal
sufficiency, standard forms and conditions of invitations to bid
and purchase orders and contracts; develop, and prescribe the
use by agencies of other forms required in carrying out the provisions
of this Article, and amend or eliminate any such forms; and
F. Upon request of the City Council, and subject to its approval
of each transaction, perform all delegable functionsin connection
with acquisition and disposal of re~l property, except acquisition
by legal proceedings.
Section 2-~0. Procedural Regulations.
A. The Purchasing Agent is hereby authorized to prepare procedural
regulations to amplify the provisions of th is A~rticle; to submit
such regulations and amendments thereto to the City Council for
approval; and, after such approval, to promulgate and to enforce
compliance with such regulations including, but not limited to:
122I
(1) The procedure for handling bids, including their
custody and safe-guarding; opening and.tabulation,
rejection and re-advertising; and the procedure for
determining the lowest responsible bidder.
(2) The procedure for securing from bidders and
prospective bidders the data necessary to determine
whether or not they are responsible.
(3) The procedure for inspection of deliveries of
supplies, materials, equipment and contractual
~.~ services.
i (4) The procedure for making emergency purchases.
~ (5) The procedure for reporting receipt of deliveries of
~ supplies, materials, equipment and contractual
services.
(6) The procedure for submitting and approving requisitions
for the supplies, materials, equipment and contractual
services required by the using agencies.
(?) The procedure for receipt and examination prior to
audit of invoices for supplies, materials, equipment
and contractual services delivered.
(8) The procedure for c~ntrol and safeguarding of
supplies, materials and equipment in storerooms or
at storage points, including the maintenance of a
perpetual inventory system showing the quantitative
amounts and. monetary value of the inventories; and
(9)V Such other matters as may be necessary to gibe effect
to provisions of this Article and any amendments
thereto.
B. A!: copy of such regulations s~all be available in the Purchasing
Agent's office, and shall be open to public inspection during
regular business hours.
Section 2-91. Exemption from Centralized Purchasing.
The Purchasing Agent may authorize in writing any agency'to purchsse
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 A~rticle. 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.
Section 2-32. Emergency Purchases.
A!!.. An emergency shall be deemed~to exist when a breakdown in
machinery or in an essential service occurs; or when unforeseen
circumstances arise, including delays by contractors, delay in
transportsion, and unanticipated volume or work.
B. If an emergency occurs during regular bmsiness hours, the
head or other employee of the using agency shall immediately
notify the Purchasing Agent, who shall either purchase the
required commodity or authorize the using agency to do so. If
the Purchasing Agent is not available, the head of the using agency
shall notify the City Council or Mayor before makin~ the purchase.
I!f an emergency occurs st times other than regular business hours,
the using agency may purchase directly the commodity or commodities
required. If the estimated cost of the emergency purchase exceeds
$200.00, the head of such agency shall, wherever possible, secure
competitive telephone bids and order delivery to be made by the
lowest responsible bidder. On every emergency purchase made, the
a~ency head shall, not later than three days thereafter, submit to
the Purchasing Agent a requisition, a tabulation of bids received,
if any, a delivery receipt and a written explanation of the
circumstances of the emergency. The records of such emergency
transactions shall be open to public inspection during regular
business hours.
C. The Purchasing Agent shall submit monthly to the City Council
a list of all emergency purchases in excess of ~00.00 each made
during the preceding month, with an explanation of the circumstances
of each
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Section 2-33.1 Requisitions and Estimates of Future Requirements
A. A:ll 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
of quality requisitioned.
B. 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.
Section 2-34. Contracts: Purchases:~ Sales: Competitive
Bids Required.
Ai. 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.
B. Purchase of supplies, services and equipment shall be made
only by purchase order.
C. If the amomnt of the expenditure for a contractual service
or for a commodity, or for a class of commodities normally obtain-
able from the sources of supply, or for a sale of personal
property which has been found by the City Council not to be
required for public use, is estimated to exceed $2,500.00,
contract bids shall be solicited by public notice and. written
contracts shall be awarded.
(1) 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.
(2) 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 al! 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 bulletlng board in s
prominent place in the City Hall.
(3) All bids shall be submitted sealed to the
Purchasing Agent on the official contract bid
form and in a bid e~velope, furnished by the.
City, which will have indicated thereon the
class of commodities t~ be purchased sn~
the established time for opening of bids. Each
bid shall be accompanied by surety in the form
of a certified or c~shier"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 bi~s
reeived, whether accepted or rejected, shall be
open for public inspection during regular
business hours for a period of not less than
30 calendar days after the bid opening..
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The Purchasin~ Agent shall submit a copy of the
tabulation a~d 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 therefor
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 sward the contract to one of the bidders by
drawing lots in public, 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, pric;e
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 best 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
bitder, and. other information and data required. to
prove his responsibility.
(4) 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.
(5) 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 shall require each bidder to
accompany his bid with a statement ma~e under oath that
he has not been a party with other bidders to an
agreement to bid a fixed or uniform price, or to
" OO1"
p 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 rendor v~id the bid of such
bidders. Any disclosure to, or acquisition by, a
competitive bidder, in advance of the opening of the
bids, or the terms and conditions of the bid submitted
by another competitor shall render the proceedings
void and shall require readvertising for bids.
(6) Bidders shall be entitled to return O~ bids of
security; provided that if the successful bidder does
not enter into a contract within 10 days after the'
mailing of notice of award of the contract, be'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 said Code shall govern.
(7) The successful bidder shall furnish surety in the form
of a certified or c~shier's check or bond for the
faithful performance of the contract in the amount's
specified in the contract bid form.
(8) 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.
(9) Nothing contained in Section 2-34 shall
prohibit the Purchasing Agent to
negotiate, without formal bid procedures,
or the City Council to enter into contracts
for service of a professional nature,
including Architectural and Engineering
services, whether or not the amount of said
contract exceeds twenty-five hundred dollars
(10) A~ll contract bid forms and all contracts shall
be approved by the City Attorney as to form
and legality.
Section 2'55. Open Market Purchases and Sales.
A. If the amount of the expenditure for a contractual service or
for a class of commodities normally obtainable from the same sources
of supply, or for 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 $2,500, it shall be an open market transaction, ~nd
shall not be subject to the requirements of Section 2-34, Subsection
C. However, all such open market transactions involving in excess
of $100.00 ~all, wherever possible, be based on at least three
competitive bids.
B. The Purchasing Agent shall solicit bids by direct ma~l requests
to prospective bidders for the class of commodities being purchased
or sold ~s listed on the bidders' list and by posting ~ copy of
such invitation to bid on a public bulletin board in or adjacent to
his office, or in a prominent place in the City H~ll. However, bids
m~y be solicited by telephone for o~en market purchases or sales of
less than $500.00.
C. Written bids shall be submitte~ sealed to the Purchasing Agent
in an envelope furnished by the Ci~y, indicating the class of
commodities to be purchased and the established time for opening
of the bids. ~11 written bids sh~ll 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 30 days after the d~te of the bid opening
or telephone transaction.
D. All open market purchases shall be awarded to the lowest ~nd
best reSlponsib~e bidder and all open market sales shall be made
to the highest responsible bidder. However, price and quality b~ing
equal, preference shall generally be given to responsible local
bidders. ~"~
Section 2-.~6. Types of Contracts and Purchases.
It shall be the responsibility of theirPurchasing Agent:
(1) 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 itesm repetively purchased; and
(2) 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.
B. In carrying out the provisions of Section 2-3~, the Purchasing
Agent is authorized to prescribe in the procedural regu~lations
adopted pursuant to Section 2-30, the use of various types of
contracts and orders, including, but not limited to, the following:
(1) Definite-quantity contracts, whereby the
contractor agrees to furnish a specified quantity
of supplies, materials or equipment at
specified time.
(2) 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.
(3) 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
prescribed period of time at a definite unit
price or at a specified discount from list or
posted prices.
(4) Order books, to be orenumbered and issued by
the Purchasing Agent in pocket size to properly
authorized officials, for use in securing over-
the-counter delivery of miscellaneous hardware,
repa~P parts and similar items when the need
~arises in the vicinity of a source of supply.
The use of such orders shall be limited to
purchases in amounts not to exceed ~20.00.
All such orders shall be issued without regard
.to the requirements of Section 2-38 for
availability of funds. All order book~ ~nd all
order blanks shall be properly accounted for by
the official to whom they have been issued.
Section 2-~?. Purchase of Patented. or Proprietar~ Articles.
A. When the City requires supplies, materials or equipment which
are produced. by only one manufacturer, the Purchasing Agent shall
specify such manufacturer's make or brand in the invitations to
bid and s~all obtain competitive bids from authorized dealers or
distributors of such manufacturer. Z=f 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.
B. When the City requires supplies, materials or equipment which
are patented or proprietary and which are obtainable in two 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.
1226
Section~12-38~ Availability of Funds.
Except in emergencies as defined in Section 2-32, and as excepted
in Section 2-36, item (4) of subdivision B, 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.
Saction 2-39, Unlawful Purchases.
~.~ If any agency purchases or contracts for any supplies,
materials, equipment or contractual services contrary to the
provisions of this Article, such purchase order or contract ~all
be void and of no effect, unless thereafter ratified by the person
or body required by this Article to approve such purchase or contract,
provided that this exception shallnot apply to purchases or contracts
subject to Section 2-35, subdivision B. The head of the agency
approving the making of such purchase transaction shall be personally
liable for the amount of such purchase order or contract, and, if
already pai~ for out of City funds, the amount thereof may be
recovered in the name of the City in an appropriate action therefor.
B. It shall be unlawful for any agency to split its requirements
for supplies, materials, equipment and contractual services into
estimated amounts of less than $2,500.00, in order to evade the
provisions of Section 2-34.
Section 2-40. Personal Purchases.
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 2-31, only when the item or
items are required parts of a worker'sequipment and are necessary
to the successful performance of the duties of such City official
or employee.
Section 2-41. Debarment of Irresponsible Bidders.
The PurChasing Agent may determine and declare a bidder to be
irresponsible for the reasons cited in Section 2-27, subdivision
H, may remove his name from the bidders list; and may debar him
from bidding for a reasonable period, not less then one year.
Such debarred bidder shall be notified in writing of such action,
and shall be furnished with a statement of the reasons therefor.
Section 2-42. .~nspection.
A., 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..
B. 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.
C.I 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
conformsrice with the specifications. For such tests, the!:Purchasing
Agent shall have authority to make use of laboratory facilities
or any agency or to engage the services of any outside laboratory.
1227
Section 2-4~. Storerooms.
The Purchasing Agent shall operate any storerooms hereafter
established by the City Council 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 thetin. In
accordance with Section 2-30, item (8) of subdivision A, he may
also prescribe and require the maintenance of a perpetual inventory
system showing the quantitive amounts and monetary value of the
inventories in any storerooms operated by other agencies.
Section 2-44. Surplus, Obsolete and Waste Commodities.
A. All agencies shall submit to the Purchasing Agent st such times
and in such form as he shall orescribe, 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 shother or other agencies in lieu of filling
requisitions for the purchase of new and additional stock of the
same or similar articles.
B. 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 the City Council
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, ~xchange or trade-in shall be made in accordance with
Section 2-34 or Section 2-35, whichever is applicable. The
Purchasing Agent shall report in detail upon shy such sale to the
City Council'within 45 days thereafter.
Section 2-45. Civil DefenSe Exemption.
The provisions of this Art'icle shall apply to the purchase, storage,
and disposal of items or services required for civil defense and
disaster purposes only to the extent consistent with provisions of
City, State and Federal law relating to such matters, and with the
CiVil Defense ahd Disaster plan of the City in the event of any
emergency encompassed by such plan.
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Tustin, held on the 15th day of March,
1965.
MAYOR
A~TEST:
CITY CLERk
STATE OF CALIFORNIA )
COUNTY OF ORANGE' )
CITY OF TUSTIN ) SS
1228
RUTH C. POE, City Clerk and ex-officio Clerk of the
City Council 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 duly and regularly introduced and
read at the regular meeting of the City Council held on the
1st day of March, 1965, and was given its second rea~ing and
duly passed and adopted at a regular meeting held onthe
15th day of March, 1965, by the following voter
AYES: COUNCILMEN ..... M~k, Klingelhofer, Coco, Miller, Ring
NOES: COUNCILMEN None
ABSENT: COUNCILMEN None
CLERK