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HomeMy WebLinkAboutOrdinance 1661 (Purchasing Policy)CLERK'S CERTIFICATE I, JEANNE M. LEONCINI, Clerk of the City of San Rafael, and Ex -officio Clerk of the Council of said City, do hereby certify that the foregoing Charter Ordinance No. 1661 entitled: "AN ORDINANCE OF THE CITY OF SAN RAFAEL ADDING CHAPTER 2.55, PURCHASING POLICY, TO THE SAN RAFAEL MUNICIPAL CODE" is a true and correct copy of an ordinance of said City and was introduced at a REGULAR meeting of the City Council of the City of San Rafael, held on the 7th day of MARCH, 1994, published as required by City Charter in the MARIN INDEPENDENT JOURNAL , a newspaper published in the City of San Rafael and passed and adopted as an ordinance of said City at a REGULAR meeting of the City Council of said City held on the 21st day of MARCH. 1994, by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None WITNESS my hand and the official seal of the City of San Rafael this 22nd day of MARCH, 1994. JEANNE M LEONCINI, City lerk ORDINANCE NO. 1661 AN ORDINANCE OF THE CITY OF SAN RAFAEL ADDING CHAPTER 2.55, PURCHASING POLICY, TO THE SAN RAFAEL MUNICIPAL CODE THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Chapter 2.55 is hereby added to the San Rafael Municipal Code to read as follows: Chapter 2.55 PURCHASING POLICY Sections: 2.55.010 Purpose. 2.55.020 Definitions. 2.55.030 Purchasing agent. 2.55.040 Requisitions. 2.55.050 Surplus supplies and equipment. 2.55.060 Encumbrance of funds. 2.55.070 Competitive bidding. 2.55.080 Award authority. 2.55.090 Bid procedure. 2.55.100 Competitive sealed bids. 2.55.110 Bidders' security. 2.55.120 Performance bonds. 2.55.130 Insurance and indemnity. 2.55.140 Bid opening. 2.55.150 Award of purchase or contract. 2.55.160 Rejection of bids. 2.55.170 Tie bids. 2.55.180 Notification of award. 2.55.190 Small purchase procedures. 2.55.200 Inspection and testing. 2.55.010 -- Purpose: The purpose of this chapter is to set forth procedures for the purchase of supplies, materials, equipment and services, which procedures are and shall be a part of every contract or purchase order. This chapter shall not apply to 1 ORICINAL ��66 public works contracts (see Chapter 11.50) or to professional services contracts. 2.55.020 -- Definitions: As used in this chapter, the following terms are defined as follows: A. "Department" and "using department" mean any of the departments, offices or other organizational units of the city government. B. "Professional services" means services such as, but not limited to, the services of attorneys, physicians, architects, engineers, surveyors and other consultants or individuals or organizations possessing a high degree of technical skill. C. "Public works project" or "public work" means the same as "public work" in section 11.50.020(H) of chapter 11.50. D. "Purchasing Agent" means the City Manager or his/her designated representative. E. "Services" means any and all work performed or services rendered by independent contractors, with or without the furnishing of material, excluding contracts for public works projects or professional services. F. "Supplies", "materials", and "equipment" mean any and all articles or things which shall be furnished to or used by any department of the City, including those items purchased by the City and furnished to contractors for use in public works projects. G. "Surplus property" means waste materials generated in the work process, discarded articles, parts or equipment useful only for reprocessing, and such other things that are no longer of use to any department of the City. 2.55.030 -- Purchasina Aaent: The Purchasing Agent shall have authority to: A. Purchase or contract for supplies, materials, equipment, and services required by any using department including lease purchase agreements for said property in accordance with purchasing procedures prescribed by this chapter; B. Prepare and recommend to the City Council rules and regulations for governing the purchase of supplies, materials, 2 equipment and service for the City; C. Prepare and recommend revisions and amendments to the purchasing policies and procedures; D. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and its related rules and regulations. 2.55.040 -- Reauisitions: Using departments shall submit to the Purchasing Agent requisitions for supplies, materials, equipment, and services required for their operations, in such a manner, at such time and for such future periods as the Purchasing Agent shall prescribe, and for the purposes and within the limits of funds appropriated therefor. 2.55.050 -- Surplus supplies and equipment: All using departments shall submit to the Purchasing Agent, at such times and in such forms as he shall prescribe, reports showing all supplies, materials, and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Agent shall have authority to sell as surplus such supplies, materials, and equipment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for, or trade in the same on new supplies, materials, and equipment. All sales of said property shall be based, whenever possible, on competitive bids. 2.55.060 -- Encumbrance of funds: Except in cases of emergency, no purchase order or any contract shall be approved for supplies, materials, equipment or services unless there exists an unencumbered appropriation in the fund account against which said purchase or contract is to be charged. 2.55.070 -- Competitive bidding: A. All purchases of and contracts for supplies, materials, equipment, and services, shall be based, wherever possible, on competitive bids. B. The Purchasing Agent shall evaluate each purchase or surplus action and initiate the appropriate method of purchase or disposal which will be most cost effective for the City. 3 C. Emergency purchases and contracts for supplies, materi- als, equipment, and services may be made free of the bidding requirements of this chapter when determined and declared by the City that an emergency exists. D. If limitations on the source of supply, necessary restrictions in specifications, necessary standardization, quality considerations, or other valid reasons for waiving competition appears, then purchases may be made without recourse to the competitive bidding provisions of this chapter. Approval of waiver of competitive bidding shall be given by the same level of authority as set forth in the section for award authority. 2.55.080 -- Award authority: A. If the amount of any purchase or contract exceeds thirty- five thousand dollars, bids shall be awarded by the City Council. Purchases or contracts less than thirty-five thousand dollars, but more than ten thousand dollars shall be awarded by the City Manager. Purchases or contracts less than ten thousand dollars shall be awarded by the Finance Director. B. No purchases made by any person, or in any manner other than as described herein, shall be binding upon the City or constitute a lawful charge against any City funds. C. Modifications to contracts or purchase orders which represent no change in the scope of the character of material or services provided in the original contract or purchase order may be approved by the City Manager or Purchasing Agent if the dollar value of the modification is within their award authority. 2.55.090 -- Bid procedure: If the amount of the expendi- ture for supplies, materials, equipment or services or if the amount for a sale of personal property determined to be surplus is estimated to exceed twenty thousand dollars, purchase or sale shall be by formal bid. If the amount of the expenditure for supplies, materials, equipment or services, or if the amount for a sale of personal property determined to be surplus is less than twenty thousand dollars, purchase or sale shall be made in accordance with small purchase procedures pursuant to section 2.55.250. 4 2.55.100 -- Competitive sealed bids: A. Conditions for use. All contracts and/or purchases shall be by competitive sealed bidding except as otherwise provided in this chapter. B. Invitations for Bids. An Invitation for Bids (IFB) or similar document shall be issued and shall include or reference all specifications, contractual terms, and conditions applicable to the purchase or contract. C. Notice inviting bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, the location where bid blanks and specifications may be secured, and the time and place for opening bids. 1. Published notice. Notices inviting bids shall be published at least ten days before the date of opening the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the county. The Purchasing Agent may waive the necessity to publish the invitation for bid, if the source of supply is not available in the local area or if sufficient bidders are on file to ensure adequate competition. 2. Bidders' List. Purchasing Agent may establish a Bidders' List. The Purchasing Agent shall also solicit sealed bids from responsible prospective suppliers whose names are on the Bidders' List, if such Bidders' List has been established by the Purchasing Agent. Suppliers may be disqualified and removed from the Bidders' List for a period of up to two (2) years if their performance in dealings with the City has not been satisfactory as determined by the Purchasing Agent. All suppliers removed from the Bidders' List shall receive written notification of the reasons or conditions prompting disqualification. Nothing in this subsection requires the Purchasing Agent to establish or maintain a Bidders' List. 2.55.110 -- Bidders' security: When deemed necessary by the Purchasing Agent, bidders' security may be prescribed in the Invitation to Bid. Bids received without the prescribed security shall be considered nonresponsive, incomplete, and shall be deemed 5 rejected. 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 Purchase Agreement within ten (10) days after the Notice of Award has been mailed, unless the City is responsible for the delay. If the successful award may be made to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. 2.55.120 -- Performance bonds: When deemed necessary by the Purchasing Agent, a performance bond may be prescribed in such amount as he shall find reasonably necessary to protect the best interest of the City, and shall be described in the notice inviting bids. Failure to submit a performance bond in the time prescribed in the Notice of award shall be just cause for annulment of the award and forfeiture of the bidder's security. 2.55.130 -- Insurance and indemnity: When deemed necessary by the Purchasing Agent or the City Attorney, bids solicited for supplies, materials, equipment or services shall include applicable insurance and indemnity provisions. These requirements shall be described in the notice inviting bids. 2.55.140 -- Bid opening: Sealed bids shall be submitted to the City Clerk and shall be identified on the envelope as bids. 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 in the City Clerk's office during regular business hours for a period of not less than thirty calendar days after the bid opening. 2.55.150 -- Award of purchase or contract: Purchases or contracts shall be awarded to the lowest responsive and responsible bidder. In determining the lowest responsive and responsible bidder, the following shall be taken into consideration: a. The quality, suitability, and efficiency of the supplies, materials, equipment, or services; b. The total or life cycle cost of the supplies, 6 materials, equipment, or services; C. The delivery, discount terms, and all other conditions submitted in the bid; d. The reputation of the supplies, materials, equipment, the service reputation of the bidder, and all other information and data required to prove the responsibility of the supplier. 2.55.160 -- Resection of bids: The City shall reserve the right to reject any or all bids in whole or in part and may waive any irregularities or informalities in any bids when such action is considered to be in the best interest of the City. All bids received after designated closing date and time shall be considered nonresponsive and shall be rejected. 2.55.170 -- Tie bids: If two or more bids received are for the same total amount of unit price, quality and service being equal and if there is no evidence of collusion between the bidders, then the awarding authority may accept the bid of its choice. 2.55.180 -- Notification of award: All bidders partici- pating in the formal bid process shall be notified in writing of the terms and conditions of the successful award. 2.55.190 -- Competitive Sealed Proposals: When the Purchasing Agent determines in writing that the use of competitive sealed bids is either not practical or not advantageous to the City, the City Council may authorize the City Manager or designee to contract for or to purchase supplies, materials, equipment or services by use of competitive negotiation. 2.55.200 -- ComDetitive Proposals for Neaotiation - Proce- dure - Request for Proposal - Contents: A. Proposal shall be solicited through a Request for Proposal prepared by the using department. To the extent possible, the Request for Proposal shall include or reference all specifica- tions, contract terms, conditions applicable to the contract or purchase. The Request for Proposal shall state: 1. The criteria for evaluation of the proposal. 2. Relative importance of price, and other factors. 7 B. Notice. Public notice of the Request for Proposal shall be given in the same manner as provided in section 2.55.100 C. of this chapter. C. Receipt of Proposals. Sealed proposals shall be submitted to the Purchasing Agent by the date and time specified in the Request for Proposal and shall be identified by the Request for Proposal Number. Proposals shall be handled so as to prevent disclosure of the identity of any offeror or the contents of any proposal, to competing offerors during the process of negotiation. A record shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. This record shall be open to public inspection only after contract award. 2.55.210 -- Neaotiation: The most qualified and responsive proposals (minimum of three) will be selected for contract negotiation. Negotiations will be conducted individually with each qualified supplier. All elements of the negotiation process shall be documented by the purchasing agent. Responsible offerors shall be accorded fair and equal treatment with respect to opportunity for discussion and revision of proposals, and such revisions may be permitted after submission in writing and prior to award for the purpose of obtaining the best final offer. 2.55.220 -- Award: Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price and the criteria established for evaluation set forth in the Request for Proposal. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made. 2.55.230 -- Notification of Award: All suppliers partici- pating in the competitive negotiation process shall be notified in writing on the terms and conditions of the successful award. 2.55.240 -- Resection of Proposals: The City reserves the right to reject any or all proposals in whole or in part and may waive any irregularities or informalities in the proposals when such action is considered to be in the best interest of the City. 0 2.55.250 -- Small purchase procedures: Any contract or purchase not exceeding twenty thousand dollars may be made in accordance with small purchase procedures; provided, however, that requirements shall not be artificially divided so as to constitute a small purchase under this section. A. Solicitation of bids. Insofar as is practical, the Purchasing Agent shall solicit proposals from at least three providers, by telephone, written request, or by public notice pursuant to section 2.55.100(C). B. Bids recorded. All bids shall be recorded by the Purchasing Agent and maintained as a public record open for inspection for a period of one year from date of award. C. Bid award. Award shall be made to the lowest responsive and responsible bidder pursuant to the criteria of section 2.55.150. D. Bid not required. Bidding may be dispensed with at the discretion of the Purchasing Agent if the expenditure is less than one thousand ($1,000.00) dollars. 2.55.260 -- Cooperative Purchasina Proarams: Purchases of supplies, material, equipment or services and sales of surplus property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the state, county or other public agencies are exempt from the requirements of this chapter. To the extent possible, cooperative purchases joined will be competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained. 2.55.270 -- Insoection and testina: The City shall inspect supplies, materials, and equipment delivered, and contrac- tual services performed to determine their conformance with specifications set forth in the invitation to bid, purchase order and/or contract. The Purchasing Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. DIVISION 1: This Ordinance shall be published once in full W before its final passage in a newspaper of general circulation, published and circulated in the City of San Rafael, and shall be in full force and effect thirty (30) days after its final passage. IIBEAT J. ORO, Mayo ATTEST: JEAIqqtVLEONCIN, City Clerk The foregoing Charter Ordinance No. 1661 was read and introduced at a Regular Meeting of the City Council of the City of San Rafael, held on the 7th day of March 01 1994 , and ordered passed to print by the following vote to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Thayer, Zappetini & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None and will come up for adoption as an Ordinance of the City of San Rafael at a Regular meeting of the Council to be held on the 21st day of March , 1994. JE E M. LEONCI�TI, City C erk 10