CC Ordinance No. 1897ORDINANCE NO. 1897
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CUPERTINO AMENDING CHAPTERS 3.22 and 3.23 OF THE
CUPERTINO MUNICIPAL CODE REGARDING PURCHASING OF
SUPPLIES, EQUIPMENT AND SERVICES
THE CITY COUNCIL OF THE CITY OF CUPERTINO HEREBY ORDAINS AS
FOLLOWS:
Section I Amendments to Chapter 3.23
CHAPTER 3.22 is hereby amended to read as follows:
1. The title of Chapter 3.22 is amended to read "Purchase
of Supplies, Materials, Equipment and Services"
2. Section 3.22.010 is amended to read as follows:
3.22.020 Definitions
1. "Bid" means any proposal submitted to the City in competitive bidding for
City purchases and contracts for supplies, materials, equipment, and/or services.
2. "Lowest responsible bidder" means the lowest monetary bidder who has
demonstrated the attribute of trustworthiness as well as quality, fitness, capacity, and
experience to satisfactorily perform the contract.
3. "Purchases" Purchases of supplies and equipment shall include leases or rentals, as
well as transactions by which the City acquires ownership.
4. "Purchasing Officer" means the City Manager or any other official or officials
designated in writing by the City Manager for administration of this Chapter.
5. "Services" means any and all services including, but not limited to, equipment
service contracts. The term does not include services rendered by City officers or
employees, or professional or other services which are by nature unique or for which the
procedure for procurement is specifically provided by law.
6. "Supplies," "materials" and "equipment" means any and all articles, things or
tangible personal property furnished to or to be used by the City.
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3. Section 3.22.060 is hereby amended to read:
3.22.060 Purchasing Requirements
A. Open Market Purchases
The Purchasing Officer may award contracts or issue purchase orders or check
requests for the acquisition of supplies, materials, equipment or services in the
open market without observing the competitive bidding procedure contained in this
Chapter when the dollar value will forseeably equal, or be less than, the amount for
public works contracts described in section 22032(a) of the Public Contracts Code.
B. Purchases Approved by City Council -Application of Formal Competitive
Bidding Procedures
In instances where the acquisition of supplies, materials, equipment or services will
foreseeably result in the issuance of a purchase order, check request, or the award
of a contract with a dollar value in excess of the required dollar value for public
works contracts described in section 22032(b) of the Public Contracts Code, such
will be authorized only by action of the City Council.
Such action shall be taken after the formal competitive bidding procedures
described in this section are followed, unless pursuant to a written recommendation
of the City Manager, the City Council finds that the use of the formal competitive
bidding procedure is not practical due to limitations on source of supply, necessary
restrictions in specifications, necessary standardization, quality considerations, or if
other valid reasons for waiving the formal competitive bidding process procedures
appear. Upon making such a finding, the Council may direct the Purchasing
Officer to dispense with the formal competitive procedure and make the purchase
on the open market or through any other procedure which meets the City's
requirements.
C. Formal Competitive Bidding Procedures
The formal bidding procedures required for purchases described in Section
3.22.060B are as follows:
1. Notice Inviting Bids
a. Notice inviting bids shall include:
1) A distinct description of the supplies, materials, equipment, or services to
be purchased;
2) The location where bid blanks, specifications, and requests for proposals
may be secured;
3) The time and place for opening bids;
4) A statement that the City has the authority to reject any and all bids and
may waive any minor technicality or variance found in a bid document.
b. The notice inviting bids shall be published at least fourteen calendar days
before the date of opening of bids in a newspaper of general circulation
printed or published in the City of Cupertino. Such notice may also be mailed
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to any vendor or provider, which the Purchasing Officer has reason to believe
may be in a position to provide the subject supplies, material, equipment or
services to the City.
Opening of Bids
Bids shall be opened in public by the City Clerk at the time and place stated in
the notice inviting bids. A tabulation of all bids received shall be open for
public inspection during regular business hours for a period of not less than
fifteen calendar days after the bid opening. Any bid which is received after the
time specified in the notice shall be returned un-opened.
Award of Contract
Contracts shall be awarded by the City Council to the lowest responsible bidder
except as otherwise provided in this Chapter.
4. Award to Next Lowest Bidder - Failure to Execute Contract
The City Council may, on refusal or failure of the successful bidder to execute
the contract within ten days after the date the notice of award of contract is
mailed, unless the City is responsible for the delay, award it to the next lowest
responsible bidder.
5. Award of Contract to the Next Lowest Bidder - Lowest Bidder Irresponsible -
Notice and Hearing
A. The City Council, in its sole discretion, may reject the lowest monetary bid
for purchases of supplies, materials, equipment, or services upon a specific
finding that the lowest monetary bidder is not responsible. To determine
responsibility, the City Council may consider, among other things, the bidder's
financial responsibility, level of experience, and whether the bidder has failed to
complete or deliver any supplies, materials, equipment or services in other
projects.
B. If the City Council rejects the lowest bid upon its determination that the
lowest bidder is not responsible, the City shall:
1) Give notice of the City Council's decision to the lowest monetary bidder,
setting
forth the reasons why the bidder is not considered the lowest responsible
bidder;
2) Give the bidder the opportunity to ask for a pre-award hearing before the
City Council on the issue;
3) If the hearing is requested, agendize the matter before the City Council,
giving written notice of such hearing to all bidders.
4) After hearing, the City Council shall make a finding, supported by the
evidence on the record as to the non-responsibility of the lowest monetary
bidder.
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Ordinance No. 1897
4. Section
6. Reiection of Bids - Identical Bids - Absence of Bids
The City Council, in its sole discretion, may:
a. Reject any bids presented and re-advertise for new bids
b. Reject any bid that fails to meet the requirements of the formal bidding
procedure in any respect.
c. If two or more bids are the same and the lowest, the City Council may
accept the one it chooses.
d. If no bids are received, the City Council may direct the Purchasing Officer
to purchase the supplies, materials, equipment or services without further
adherence to the formal bidding procedures.
e. Waive any minor irregularities or variances in any bid received.
Informal Competitive Bidding Procedures
In instances where the purchase of supplies, materials, equipment, or services
will forseeably result in the issuance of a purchase order, check request, or the
award of a contract with a dollar value of greater than the amount for public
works contracts described in section 22032(a) of the public contract code but
equals, or is less than the amount for public works contracts described in section
22032(b) of the public contracts code, the Purchasing Officer may award
contracts or issue purchase orders or check requests for the purchase of supplies,
materials, equipment or services.
Such action shall be taken only after the informal competitive bidding procedure
described in subsection E below is followed unless the City Manager finds in
writing that the use of the informal competitive bidding procedure is not
practical due to limitations on source of supply, necessary restrictions in
specifications, necessary standardization, quality considerations, or if other valid
reasons for waiving the informal competitive bidding process procedure appear.
Upon making such a finding, the City Manager may direct the Purchasing
Officer to dispense with the informal competitive bidding procedure and make
the purchase on the open market or through any other procedure which meets
the City's requirements.
Informal Competitive Bidding Procedure for Purchases Described in
Subparagraph D Above
1) The procedures described in subsections 3.22.060 Cl(a), C2 - C6 of this
Chapter are applicable except that the duties described thereunder which are
performed by the City Council are performed under these informal procedures
by the Purchasing Officer. Determinations of the Purchasing Officer are subject
to appeal pursuant to Chapter 1.16 of the City's ordinance code.
2) Publication of notice inviting informal bids is not required.
3.22.070 is amended to read as follows:
3.22.070 Exemptions
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Ordinance No. 1897
Notwithstanding any provision of this Chapter to the contrary, the Purchasing
Officer, with the written concurrence of the City Manager, is authorized to issue
a purchase order or check request, or award a contract, without adherence to the
other provisions of this Chapter under following instance:
A. Emergency Purchases
The immediate requirement of an item necessary for the continued
operation of a department or for the preservation of life or property shall
be deemed an emergency. A full report of the circumstances of
emergency purchase in excess of the amount described in subsection
3.22.060 (b) shall be filed with the City Council at its next regular
meeting after the purchase was made.
B. Recurring or Essential Services
Purchase orders, or check requests including payment of claims against
the City where reasonable advanced estimates of costs cannot be
determined for essential services of a recurring nature. Included, but not
limited to, this authorization are such items as utility services, approved
claims for liability under the City's insurance program, renewal
premium for authorized insurance policies, all expenditures for the
City's payroll and employee benefits and other matters involving
unknown estimates of costs.
C. Purchases From Other Public Agencies
Purchases of supplies, materials, equipment or services from any other
public agency created under the laws of the State of California or the
United States Government are exempt from the bidding requirements of
this Chapter.
D. Professional Services
Professional services including, but not limited to, services of lawyers,
architects, engineers, land surveyors, artists, and accounts are exempt
from the bidding requirements of this Chapter.
Section II Amendments of Chapter 3.23
CHAPTER 3.23 is hereby amended to read as follows:
1. Section 3.23.020 is amended to read as follows:
3.23.020 Definitions
As used in this Chapter, the following terms, phrases, words and their derivations
shall have the meanings given in this section:
1. "Bid" means any proposal submitted to the City in competitive bidding for the
construction, alteration, repair or improvement of any structure, building, road or other
improvement of any kind.
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Ordinance No. 1897
2. "Lowest Responsible Bidder" means the lowest monetary bidder who has
demonstrated the attribute of trustworthiness as well as quality, fimess, capacity, and
experience to satisfactorily perform the public works contract sought.
3. "Public Works Contract" means an agreement for the erection, construction,
alteration, repair or improvement of any public structure, building, road or other public
improvement of any kind.
4. "Public Works Project" means:
a. The erection, improvement, painting or repair of public buildings and works;
b. Work to protect against overflow of streams, bays, waterfronts or embankments;
c. Street or sewer work except for maintenance or repair thereof;
d. Furnishing supplies or materials for any such project, including the maintenance
or repair of streets or sewers. (Ord. 1583 § 1 (part), 1992)
2. Section 3.23.030 is amended to read as follows:
Section 3.23.030 Competitive Bidding
Except as otherwise provided for in this Chapter, the public works projects with an
estimated dollar value equal to or in excess of the required dollar value for competitive
bidding established by section 22032(a) of the California Public Contracts Code, shall be
contracted for pursuant to the procedures prescribed in this Chapter.
3. Section 3.23.040A1 is amended to read as follows:
3.23.040 Notice Inviting Bids
The notice inviting bids shall be in the form and published as follows:
A. Notices inviting bids shall include:
1. A distinct description of the public works project to be performed.
4. Section 3.23.050C is hereby amended to read as follows:
Upon award of the contract to the lowest responsible bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time, but in no event shall
such security be held by the City beyond ninety days from the date the notice of award of
contract is mailed.
5. Section 3.23.100A is amended to read as follows:
3.23.100 Award of Contract to the Next Lowest Bidder - Lowest Bidder Irresponsible
- Notice and Hearing
A. The City Council, in its sole discretion, may reject the lowest bid upon specific
findings that the lowest bidder is not responsible. To determine responsibility, the City
Council may consider, among other things, the bidder's financial responsibility, type of
license, type of equipment, number of years experience in construction work, other projects
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Ordinance No. 1897
bidder worked on in the last five years, whether bidder has failed to complete any contract
and bidder's ability to be bonded.
6. Section 3.23.130 D is amended to read as follows:
D. Small Contracts
Any contract for public works projects with an estimated dollar value equal to or less
than the required dollar value for competitive bidding established by section 22032(a) of the
California Public Contracts Code.
Section III Publication Clause
The City Clerk shall cause this ordinance to be published at least once in a
newspaper of general circulation published and circulated in the City within 15 days
after its adoption, in accordance with Government Code Section 36933, shall certify to
the adoption of this ordinance and shall cause this ordinance and her certification,
together with proof of publication, to be entered in the Book of Ordinances of the
Council of this City.
This ordinance shall take effect and be in force thirty (30) days after its passage.
INTRODUCED at a regular meeting of the City Council of the City of Cupertino this 3rd day
of June, 2002, and ENACTED at a regular meeting of the City Council of the City of
Cupertino this 17th day of June 2002, by the following vote:
Vote
Members of the City Council
AYE S:
NOES:
ABSENT:
ABSTAIN:
Lowenthal, Chang, James, Kwok, Sandoval
None
None
None
ATTEST:
APPROVED:
/) / /) I]
M'~yo~, City of Cupertino
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