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HomeMy WebLinkAboutItem 8.4 Purchasing Procedures e e 3 8D - I'D CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: November 28, 1983 SUBJECT Ordinance Establishing Purchasing Procedures EXHIBITS ATTACHED RECOMMENDATION ~ Proposed Ordinance Waive Reading and Introduce Ordinance FINANCIAL STATEMENT: As described below DESCRIPTION Pursuant to state law, a City is required to adopt by ordinance, policies and procedures, including bidding regulations, governlng purchases of supplies and equipment. The attached ordinance would fulfill the obligations of state law and establish procedures which would allow the City to acquire goods and services at a cost which is advantageous to the City. The proposed ordinance requires a formal bid process for any purchase or contract for services over $5,000. The methods of notice and manner in which the bid may be awarded are clearly defined. In addition, the ordinance specifies additional criteria which may be used to determine the bid which is most advantageous to the City. The competitive bidding process is not utilized for professional services or when the cost involved is less than $200.00. The proposed ordinance contains provisions which allow the exclusion of the formal bidding process when an emergency requires immediate acquisition or where the needs can only be met by a single patented item or process. The informal procedures are required for services and goods which cost more than $200.00 but less than $5,000.00. This process involves gathering three price quotations, to assure that the City is making purchases which reflect the lowest price available. This ordinance addresses the disposal of surplus goods. The process lS similar to the purchasing procedures, such as the value of the goods will determine the method of disposal. The procedures presented in the ordinance are the basic guidelines under which City purchases of goods and services have been handled in the past. The adoption will serve to formalize these policies in conjunction with legal requirements. Therefore, it is recommended that the City Council waive the reading and introduce the attached ordinance establishing purchasing procedures. -----------------.----------------------------------------------------------- COPIES TO: ITEM NO. B.~ .' e e ORDINANCE NO. - 83 AN ORDINANCE OF THE CITY OF DUBLIN ESTABLISHING PROCEDURES FOR THE PURCHASE OF GOODS AND SERVICES THE CITY COUNCIL OF THE CITY OF DUBLIN DOES ORDAIN AS FOLLOWS: Section 1. ADOPTION OF A PURCHASING SYSTEM A purchasing system is hereby adopted 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 level of quality required, to exercise financial control over purchases, and to clearly define authority for the purchasing function. Section 2. PURCHASING AGENT The City Manager is hereby designated as Purchasing Agent. The City Manager may delegate all or a portion of the purchasing duties to any City Staff member. The Purchasing Agent shall have the authority to: (a) Purchase or contract for supplies, services and equipment required by the City, in accordance with purchasing procedures outlined In this ordinance. (b) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. (c) Act to procure for the City the necessary quality in supplies, services, and equipment at the lowest cost to the City. (d) Prepare revisions and amendments to the purchasing rules. (e) Establish and maintain such forms as reasonably necessary to the operation of purchasing guidelines. (f) Supervise the inspection of all supplies, services, and equipment purchased to insure conformance with specifications. (g) Recommend the sale or disposal of all supplies and equipment which cannot be used by the City, or which have become unsuitable for City use. (h) Maintain a bidder's list and other records necessary for the efficient acquisition of goods and services. Page 1 e e Section 3. Purchase of $5,000.00 or more made by City Council through Competitive Bid When the amount or value involved is at least Five Thousand dollars ($5,000.00), the purchase or disposal shall be made by the City Council through competitive bid as outlined below: (a) Notice inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid blanks and specifications may be obtained, the time and place for bid openings, and whether bid deposit or bond and faithful performance bond will be required. (b) Notice inviting bids shall be posted in at least three (3) public places in the City that have been designated by ordinance as the place for posting public notices, at least ten (10) days before the date of opening the bids. (c) The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list and may advertise the notice inviting bids in applicable publications. (d) When deemed necessary by the Purchasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Purchasing Agent or City Council. A successful bidder (and his surety, if a bond is furnished) shall be liable for any damages upon the bidder's failure to enter into a contract with the City or upon -the bidder's failure to perform in accordance with the tenor of his bid. (e) When deemed necessary by the Purchasing Agent or City Council, any person or entity entering into a contract with the City may be required to furnish a faithful performance deposit or bond in an amount determined by the Purchasing Agent or Council. (f) Bids shall be opened in public at the time and place stated In the public notices. A tabulation of all bids received 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. (g) At its discretion, the City Council may reject all bids presented and readvertise for bids. (h) Contracts shall be awarded by the City Council to the lowest responsible bidder, except as otherwise provided herein. (i) If two or more bids received from responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the City Council may accept -the lowest bid made by negotiation with the tie bidders and the Purchasing Agent at the time of the bid opening. Page 2 ~ e e Section 4. FACTORS SUPPORTING PURCHASING AWARD Purchases shall be awarded after consideration of the following factors: (a) The amount of bid price. (b) The ~bilitYf capacity and skill of the bidder to perform the contract or provide the service required. (c) The ability of the bidder to perform the contract or provide the service promptly, or within the time specified, without delay or interference. (d) The reputation and experience of the bidder. (e) The prevlous experience of the City with the bidder. (f) The previous and existing compliance by the bidder with the laws and ordinances. (g) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service. (h) The quality, availability, and adaptability of the supplies or contractual services to the particular use required. (i) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract. (j) The number and scope of conditions attached to the bid. Section 5. EXCEPTIONS TO COMPETITIVE BIDDING REQUIREMENTS The provisions of this ordinance requiring competitive bidding shall not apply to the following: (a) Contracts involving the acquisition of professional or specialized services, such as, but not limited to, services rendered by architects, attorneys, engineers, and other specialized consultants. (b) Where the City's requirements can be met solely by a single patented article or process. (c) To situations where no bids have been received following bid announcements under other provisions of this ordinance. (d) When the amount involved is less than two hundred dollars ($200.00) . (e) When an emergency requlres that an order be placed with the nearest source of supply. Page 3 ~ e e (f) When a purchase involves goods of a technical nature, where it would be difficult for a vendor to bid on a standard set of specifications, the Purchasing Agent shall undertake a thorough review of known products and a comparison of features which would most closely meet the City's needs at the least cost. When the procurement falls into any of the categories listed above, the Purchasing Agent may authorize contracts made by negotiation, provided that the amount does not exceed five thousand dollars ($5,000.00). When the amount exceeds Five Thousand dollars ($5,000.00), the action must be authorized by the City Council. Any request for an exception under this section shall include the nature of the contract, amount of the contract, and the reasons why competitive bidding is not feasible. Section 6. INFORMAL PROCEDURES/LIMITS Where the amount or value involved is more than two hundred dollars ($200.00), but less than Five Thousand Dollars ($5,000), the purchase or disposal may be made by the Purchasing Agent, without written bid, and by informal price checking through telephone or mail inquiry, comparison of prices on file or otherwise. Every attempt shall be made to receive at least -three (3) price quotations. At the discretion of the Purchasing Agent, the acquisition of goods and services where the value is at least Two Hundred but less than Five Thousand Dollars, the formal competitive bid process may be used. Section 7. PURCHASE ORDERS All purchases shall be documented by a purchase order prepared by the Purchasing Agent. The original copy shall be directed to the vendor and one copy shall be retained for the purchase order file. The final copy shall be directed to the department for whose benefit the purchase is being made to be used as a receiving report. Section 8. AVAILABILITY OF SUFFICIENT FUNDS No purchase order shall be issued until it has been ascertained that there is to the credit of the department of the City for whose benefit such purchase is to be made, a sufficient unappropriated balance in excess of all unpaid obligations to defray the amount of such order. Section 9. INSPECTION AND REVIEW The purchasing agent shall require the inspection of supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications and requirements set forth in the order or contract. Page 4 e e Section 10. SURPLUS SUPPLIES AND EQUIPMENT .- -_.-.-- At such times as determined by the Purchasing Agent, reports shall be prepared showing all supplies and equipDent which are no longer used or whJch have become obsolete or worn out. The Purchasing Agent shall have the autbority to sell, trade or exchange all said supplies and equipment. Such sales will be made pursuant to Section 3 or Section 6 of this ordinance, whichever is applicable. Section 11. SPLIT'I'ING ORDERS It shall be unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter. Section 12. PUBLIC PROJECTS EXCEPTED This ordinance is expressly made inapplicable to bids for public projects as defined by Government Code Section 37901 and where the expenditure required for the public project exceeds the limit set by Government Code Section 37902. The provision~ contained in Government Code Section 37901 et. seq., establish contract procedures the City shall follow regarding public projects. Section 13. POSTING OF ORDINANCE The City Clerk of the City of Dublin shall cause this ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the State of California. PASSED AND ADOPTED by the City Council of the City of Dublin on this th day of , 1983, by the following votes: AYES: NOES: ABSENT: Mayor ATTEST: City Clerk Page 5