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Ordinance 1093 ORDINANCE N0. 1093 AN ORDINANCE OF THE CITY OF CUPERTINO REVISING CHAPTER 3.24, PURCHASE OF .SUPPLIES AND .EQUIPMENT, CUPERTINO MUNICIPAL CODE T}ie Cupertino City Gouncil does hereby ordain that Chapter 3.24 of . the Cupertino Municipal Cade is amended to read as follows: Chapter 3.24 PURCHASE OP SUPPLIES AND EQUIPMENT* Sections: 3.24.010 Adoption of purchasing system. 3.24.020 Purchasing Officer. 3.24.030 Centralized purchasing. 3.24.040 Purchase orders. 3.24.050 Availability of funds. 3.24.060 Awards of contracts. 3.24.070 Bidding. 3.24.0$0 Open market purchases. 3.24.090 .Purchases from other public agencies. 3.24.010 Adoption of purchasing system. In order to establish efficient procedures for the purchase of materials, supplies and equipment at the lowest possible costs commensurate with operational needs, to provide methods of determining and awarding contracts for aervicea to be performed, to exercise positive financial control over such purchases and contracts and to define clearly the authority for the administration of these functions, a purchasing system is adopted. 3.24.020 Purchasing Officer. The Director of Pinance, or in the al- ternative such other person as may be designated in writing by the City Manager, shall be and is appointed to perform the functions of the Purchasing Officer for the City and shall have [he responsibility and authority to: A. Purchase or contract for materials, supplies, equipment and aervicea to be performed as may be required by any department or other agency of City government in accordance with procedures prescribed by this ordinance or by such administrative rules and regulations as the Purchasing Officer may adopt pursuant thereto; B. Prepare and adopt administrative rules and regulations not in con- flict with the provisions of this chapter for the purpose of carrying out the requirements and intent of this purchasing system. * For statutory provisions regarding the purchase of supplies and equipment by local agencies, see Gov. Code Section 54201 et se .; for provisions regarding [he purchase of supplies and equipment for public projects, see Cov. Code Section 37901 et ses. 3.24.030 Centralized purchasing. A. To the extent that quality, quantity and availability may best be achieved in meeting the operational needs of the City all purchases and. the award of contracts for services as may be required for any department: or agency shall be centralized under the Purchasing Officer. B. When the provisions and intent of this chapter may beat be served by so doing, the Purchasing Officer may authorize in writing any department or agency to investigate, solicit bids or to negotiate the purchase or award of contract for materials, supplies, equipment or services for the depart- ment or agency independently of the centralized purchasing system provided that such shall be done in conformity with the procedures prescribed by this c:h:ipter or by duly adopted administrative rules and regulations pertaining thereto. 3.24.040 Purchase orders. A. Purchases of materials, supplies, equipment or services shall be made only by means of purchase orders processed and issued pursuant to this chapter. The purchase orders shall be valid only wtien~signed by the City Manager, the Purchasing Officer or other persona as may be designated by the Purchasing Officer to act in his behalf. B. All purchase orders shall be issued in advance of any co~mnitment for which they are issued except in emergency situations where a delay would be detrimental to the interest of the City or would jeopardize the health, safety or welfare of its citizens. C. Nothing lie rein shall preclude the use of authorized petty cash funds for purposes intended by their establishment. 3.24.050 Availability of funds. The Purchasing Officer shall not issue any purchase order or award any contract for the acquisition of materials, supplies, equipment or services unless there exists an unencumbered appro- priation in the funds and for the account or activity against which slid purchase order or contract is to be charged. The appropriate account and Funds shall be encumbered immediately after the issuance of the purchase order or award of contract. 3.24.060 Awards of contracts. A. In all instances where the acquisi- tion of materials, supplies, equipment or services will result in the issuance of a purchase order or the award of a contract for five thousand dollars or more, such will be authorized only on action taken by the City Council. Such action may he taken by utilizing the formal bidding procedure hereinafter set forth or on the recommendation of the City Manager when use of the formal bidding procedure is not practicable. B. The Purchasing Officer may award contracts. or issue purchase orders for the acquisition of materials, supplies, equipment or services when the estimated amount is less than five thousand dollars; provided, however, that either the formal or informal .bidding procedure as hereinafter set forth is utilized for all estimated amounts in excess of five hundred dollars.. - 2 - C. Notwithstanding the other provisions aE this chapter and more par- ticularly this section, the Purchasing Officer shall be authorized to issue purchase orders and otherwise process for payment those claims against the City where a reasonable advance estimate of coats is not possible or for essential services of a recurring nature. Included but not limited to this authorization are such items as utility service for telephone, water, electricity and gas, approved claims for liability under. the City's insurance program, renewal premiums for authorized insurance policies, all expenditures fur the City's payroll and employee withholdings and other related or un- related matters involving this unknown advance cost estimate, 3.24.070 Bidding. Except as otherwise provided herein, purchases and contracts for an estimated value of five thousand dollars or more shall be by written contract with the lowest responsible bidder pursuant to the procedure hereinafter described; A. Notices inviting bide shall be prepared, distributed to known suppliers or persona who have requested to be notified of such bidding opportunities and to those who in the opinion of the Purchasing Officer are best able to perform according to prescribed specifications. The notices shall contain a general description of the articles or services to be obtained, shall state where bid blanks and specifications may be secured, and the. time and place for opening bids. B. All bids submitted shall be accompanied by bidder's security In the form of a bond, certified check, cashier's check or money order in an amount and when deemed appropriate by the Purchasing Officer. Bidders shall be entitled to return of bid security; provided that successful bidder shall forfeit his bid security upon refusal or failure to execute the con- tract within ten days after notice of award of contract has been mailed, un- less the City is responsible for the delay. C. On refusal or failure of the successful bidder to execute the contract, award may be made to the next lowest responsible bidder and if such is done 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. D. Sealed bids shall be submitted to the City Clerk and shall he identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. E. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids. F. Contracts shall be awarded by the City Council to the lowest respon- sible bidder except as otherwise provided herein. G. When two or more of the lowest responsible submitted bids are equal in amount, quality and service, the award of bid may be made by the drawing of lots or some other similar method deemed appropriate; provided, however, that should one of such bidders have hie principal place of business within the City said bidder shall be given preference in the award of the contract. - 3 - . ,. _. , ~~ 3.24.080 Open market purchases. Materials, supplies, equipment or services may be acquired by the Purchasing Officer without regard to formal bidding procedures set forth in Section 3.24.070, when the estimated value is leas than five thousand dollars; provided, however, that for all such acquisitions in excess of five hundred dollars price quotntions shall be solicited either orally or in writing whenever practicable with the purchase order being issued to the lowest responsible bidder. 3.24.090 Purchases from other public agencies. There is excepted from the provisions of this. chapter purchases or acquisitions of materials, supplies, equipment or services obtained from any other public agency created under the laws of the state of California or the United States Governcaent, including the purchase of federal surplus property. INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 2nd day of February 1981 and ENACTED at n regular meeting of the City Council of the City of Cupertino this 17th day of February , 1981 by the following vote: Vote Members of the City Council AYES: Johnson, Plungy, Sparks, Rogers NOES: None ABSENT: Gatto ABSTAIN: None APPROVED:, ' or, City of Cuper[ : ATTEST: City Clerk - 4 -