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Ordinance 48ORDINANCE N0. ~+8 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO, PROVIDING FOR THE PURCHASE OF SUPPLIES AND EQUIPMENT. THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: SECTION 1. ADOPTION OF PURCHASING SYSTEM. In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the City supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is hereby adopted. SECTION 2. PURCHASING OFFICER. The City Clerk Administrator is hereby appointed Purchasing Officer for the City and shall have authority to: (a) Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this Ordinance, such administrative regulations as the Purchasing Officer shall adopt and such other rules and regulations as shall be prescribed by the City Council. (b) Negotiate and recommend execution of contracts for purchase of supplies and equipment. (c) Act to procure for the City the needed quality in supplies and equipment at least expense to the City. (d) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases. (e) Prepare and recommend to the City Council rules governing the purchase of supplies and equipment for the City. (f) Prepare and recommend to the City Council revisions and amendments to the purchasing rules. (g) Keep informed of current developments in the field of purchasing prices, market conditions and new products. (h) Prescribe and maintain such forms as are reasonably necessary to the operation of this Ordinance and other rules and regulations. (i) Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications. (,j) Recommend the transfer of surplus or unused supplies and equipment between departments 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. (k) Maintain a Bidders List, Vendors Catalog fi le and records needed for the efficient operation of the Purchasing Department. SECTION 3. EXEMPTIONS FROM CENTRALIZED PURCHASING. The Purchasing Officer with approval of the City Council may authorize, in writing, any agency to purchase or contract for specified supplies and equipment independently of the Purchasing Department; but he shall require that such purchases or contracts shall be made in conformity with the procedures established by this Ordinance, and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization. SECTION ~. REQUISITIONS. Using agencies shall submit requests for supplies and equipment to the Purchasing Officer by standard requisition forms. SECTION 5. BIDDING. Purchases of supplies and equipment shall by by bid procedures pursuant to Sections 8 and 9. Bidding shall be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply when the amount involved is less than 100.00, or when the commodity can be obtained from only one vendor. SECTION 6. PURCHASE ORDERS. Purchases of supplies and equipment shall be made only by purchase order. SECTION 7. ENCUMBRANCE OF FUNDS. Except in cases of emergency, the Purchasing Officer shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. SECTION 8. FORMAL CONTRACT PROCEDURE. Except as otherwise provided herein, purchases and contracts for supplies and equipment of estimated value greater than 2,000.00 shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed herein. (a) Notice Inviting Bids. Notic es inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications rria be secured, and the time and place for opening bids. (l~ Published Notice. Notice invoting bids shall be published at least ten (10) days before the date of opening of the bids. Notice shall be published at least once in a sewspaper of general circulation, printed and published in the City or if there is none, it shall be posted in at least three (3) public places in the City that have been designated by Ordinance as the places for posting public notices. (2) Bidders' List. The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the Bidder's List or who have requested their names to be added thereto. (3) Bulletin Board. The Purchasing Officer shall also advertise pending purchases by a notice posted on a public bulletin board in the City Offices. (b) Bidder's Security. When deemed necessary by the Purchasing Officer, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (c) Bid Openin Procedure. Sealed bids shall be submitted to the Purchas ng icer and shall be identified as bids on the envelope. 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. (d) Refection of Bids. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids. (e) Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. (f) Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. (g) Performance Bonds. The City Council shall have authority to require a performance bond before entering a contract on such amount as it sr.all find reasonable necessary to protect the best interests of the City. If the City Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. SECTION g. OPEN MARKET PROCF;DURE. Purchases of supplies and equipment of an estimated value in the amount of $2000.00 or less may be made by the Purchasing Officer in the open market without observing the procedure prescribed by Section 8. (a) Minimum Number of Bids. Open market purchases shall wherever possible be based on at least three (3) bids, and shall be awarded tc the lowest responsible bidder. (b) Notice Inviting Bids. The Purchasing Officer shall solicit bids by writter.~ requests to prospective vendors, by telephone, and by pL~blic notice posted on a public bulletin board in the City Offices. (c) Written Bids. Sealed v~~ritten bids shall be submitted to the Purchasing Officer who shall keep a record of all open market orders and bids for a period of one (1) year after the submiss~.on of bids or the placing of orders. This record, whale so kept, shall be open to public inspection. SECTION 10. INSPECTION AND TESTING. The Purchasing Officer shall inspect cupplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The Purchasing Officer shall have authority to require chemical anc. physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. SECTION 11. SEVERABILITY. I:f any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be unconstitutional or otherwise invalid, such decision shall not affect tY~e validity of the remaining sections of this Ordinance. The City Council hereby declares that it would have passed this Oz~dinance, and each section, subsection, subdivision, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, sub- sections, subdivisions, sentence~~, clauses or phrases be declared unconstitutional. PASSED AND ADOPTED by the C3.ty Council of the City of Cupertino on the 5th day of May, 1958, by t:he following vote: AYES: Councilmen: Lazaneo, Saich. NOES: Councilmen: None ABSENT: Councilmen: None Atte / (gyp--~..~ ~ 1 ~(Q~~~~ U""x-r ~'--` ivIeyerholz, Nathanson, Pelosi, Approved: Ls/ N. J. NATHANSON Mayor, City of Cupertino City'Clerk I, LAWRENCE K. MARTIN, City Cle m: of the City of Cupertino and ex officio clerk of the legislative body of said City do hereby certify that the foregoing is a true and correct copy of Ordinance No. ~-8 on file in my office and that thE~ same has been published pursuant to law. IN W-'NESS WI-L.FR OF I have hereunt;o ~et my hand and City Seal this 9.~ day of Gam-. lea / ~ ..(~-~~ City Clerk