HomeMy WebLinkAboutOrdinance 1957 (Purchasing Policy)CLERK'S CERTIFICATE
I, LINDSAY LARA, City Clerk of the City of San Rafael, and Ex-Officio Clerk of the
Council of said City, do hereby certify that the foregoing
ORDINANCE NO. 1957
AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55
OF THE SAN RAFAEL MUNICIPAL CODE ENTITLED "PURCHASING
POLICY" AND REPEALING CHAPTER 2.60 ENTITLED "PROFESSIONAL
SERVICES AGREEMENTS" TO UPDATE THE CITY OF SAN RAFAEL'S
PURCHASING POLICIES AND PROCEDURES
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 16 th day of April 2018; a
SUMMARY of Ordinance No. 1957 was 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 7 th day of May 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
COUNCll..MEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
COUNCll..MEMBERS: None
COUNCll..MEMBERS: None
WITNESS my hand and the official
Seal of the City of San Rafael this
9 th day of May 2018
'(j(y:z(J~
LINDSAY LARA
City Clerk
ORDINANCE NO. 1957
AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING CHAPTER 2.55 OF
THE SAN RAFAEL MUNICIPAL CODE ENTITLED "PURCHASING POLICY" AND
REPEALING CHAPTER 2.60 ENTITLED "PROFESSIONAL SERVICES
AGREEMENTS" TO UPDATE THE CITY OF SAN RAFAEL'S PURCHASING
POLICIES AND PROCEDURES
WHEREAS, in 1994, the San Rafael City Council adopted Ordinance No. 1661, adding
Chapter 2.55, Purchasing Policy, to the San Rafael Municipal Code; and
WHEREAS, in 1997, the San Rafael Municipal Code adopted Ordinance No. 1707, adding
Chapter 2.60, Professional Services Agreements, to the San Rafael Municipal Code; and
WHEREAS, collectively, Chapters 2.55 and 2.60 of the San Rafael Municipal Code
encompass the City of San Rafael's purchasing policies and procedures; and
WHEREAS, the City of San Rafael's purchasing policies and procedures require updates
periodically in order to gain compliance with new federal or state legislation; and
WHEREAS, the City of San Rafael's purchasing policies and procedures require updates
periodically in order to reflect best practices in procurement and purchasing; and
WHEREAS, the City Council of the City of San Rafael desires to amend Chapter 2.55 of
the San Rafael Municipal Code and repeal Chapter 2.60 of the San Rafael Municipal Code in
order to update the City's purchasing policies and procedures in order to ensure compliance with
new federal or state legislation and to reflect best practices in procurement and purchasing;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES HEREBY
ORDAIN AS FOLLOWS:
DIVISION 1:
Chapter 2.55 of the San Rafael Municipal Code entitled "Purchasing Policy" is hereby
amended to read in its entirety as follows:
2.55.010 -Purpose.
The purpose of this chapter is to set forth procedures for all purchases of supplies, materials,
equipment and services, which procedures shall be in compliance with all Federal, state, and
, applicable laws. This chapter shall not apply to the following: public works contracts (see Chapter
11.50); or federal awards except as described in 2.55.030(E).
2.55.020 -Definitions.
As used in this chapter, the following terms are defined as follows:
A. "Contract" and "agreement" shall mean a written agreement between the City and a
contractor, the City and a service provider, and/or the City and a vendor. "Contract"
includes, but is not limited to, a purchase order, a contract for services, a contract for
maintenance, leasing of property or equipment, an addendum or change order, a letter
agreement, a memorandum of understanding, or memorandum of agreement.
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B. "Department" and "using department" shall mean any of the departments, offices or other
organizational units of the city government.
c. "Department director" shall mean the executive, leader, or administrator in charge of
managing a department or using department.
D. "Professional services" shall mean 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.
E. "Public works project" or "public work" shall mean the same as "public work" in Section
11.50.020(H) of Chapter 11.50.
F. "Purchase order" shall mean a standardized form to be utilized in contracts for
materials, supplies, labor and equipment.
G. "Purchasing agent" shall mean the city manager or his or her designee.
H. "Services" shall mean 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.
I. "Supplies," "materials" and "equipment" shall mean any and all articles or things which
shall be furnished to or used by any department of the City.
J. "Surplus property" shall mean 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 -Powers and duties of the purchasing agent.
The duties of the purchasing agent shall include, but not be limited to, the following:
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, equipment and services for the City.
c. Prepare and recommend revisions and amendments to the purchasing policies and
procedures.
D. Prepare an administrative policy to provide procedural guidance relating to the
execution of this chapter.
E. Prepare an administrative policy to provide procedural guidance relating to Federal
awards, which shall ensure that Federal awards are being managed in compliance with
all Federal regulations and with the terms and conditions of the award.
F. Prescribe and maintain such forms as reasonably necessary to the operation of this
chapter and its related rules and regulations.
G. Delegate his or her authority under this ordinance, except where expressly prohibited.
2.55.040 -Award authority.
A. If the amount of any purchase or contract exceeds seventy-five thousand dollars
($75,000.00), bids shall be awarded by the City Council. Purchases or contracts equal to
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or less than seventy-five thousand dollars ($75,000.00) shall be awarded by the city
manager.
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.
2.55.050 -Contract requirements.
The risk manager or the city attorney shall establish appropriate requirements for insurance
and indemnification of the City by the contractor. Prior to approval by the city manager or City
Council, all contracts and agreements of which the City is to be a party shall be submitted to the
risk manager or his or her designee, together with a certificate of insurance, endorsement and
any other required documentation. Each agreement shall be attested to by the city clerk.
2 .60.060 -Contract form.
All contracts and agreements shall be in a form approved and reviewed by the city attorney
prior to submission to the city manager or City Council for final approval.
2.55.070 -Surplus supplies and equipment.
All using departments shall submit to the purchasing agent, at such times and in such forms
as he or she 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 as provided in this chapter.
2.55.080 -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.
2.55.090 -Competitive bidding.
A. Except as otherwise provided in Section 2.55.100 of this chapter, 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.
C. In advertising or soliciting bids under the provisions of this chapter, the purchasing agent
shall identify, solicit, and consider vendors, suppliers, and businesses located within the
city.
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2.55.100 -Competitive bidding-Exceptions.
Competitive bidding procedures set forth in this chapter shall not apply to purchases of
supplies, materials, equipment, and services in the following circumstances:
A. Purchases that do not exceed five thousand dollars ($5,000.00).
B. Emergency purchases. Emergency purchases and contracts for supplies, materials,
equipment and services may be made free of the bidding requirements of this chapter
when determined and declared by the city manager that an emergency exists.
C. Supplies, materials , equipment, and services that can only be obtained from a sole
source or that are specialty in nature. 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.
D. The procurement of professional services. Competitive bidding is not required prior to
the City entering into a professional services agreement. However, prior to the City
entering into a professional services agreement, the City must select a vendor on the
basis of demonstrated competence and on the professional qualifications necessary for
the satisfactory performance of the services required.
E. Cooperative purchasing programs. Purchases of supplies, material, equipment or
services and sales of surplus property made under a cooperative purchasing program,
such as by utilizing purchasing agreements maintained by the United States
government or any agency or division thereof, the State of California, County of Marin,
or other public agencies, are exempt from the competitive bidding 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.
2.55.110 -Bid procedure.
A. 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 estimated to exceed
seventy-five thousand dollars ($75,000.00), purchase or sale shall be by competitive
sealed bids.
B. 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 manager may
authorize the purchasing agent or his or her designee to contract for or to purchase
supplies, materials, equipment or services by use of competitive negotiation.
C. 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 equal to or less than
seventy-five thousand dollars ($75,000.00), purchase or sale shall be made in
accordance with informal bidding procedures pursuant to Section 2.55.260.
2.55.120 -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.
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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 (10) 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. The 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.
2.55.130 -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 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.
2.55.140 -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.
2.55.150 -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.
2.55.160 -Bid opening.
Sealed bids shall be submitted to the city clerk or his or her designee 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 (30) calendar days after the bid
opening.
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2.55.170 -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, materials, equipment or services;
C. The delivery, discount terms, and all other conditions submitted in the bid; and
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.
2.55.180 -Rejection of bids.
The City shall reserve the right to reject any and 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.
2.55.190 -Tie bids.
If two (2) 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. In the event of tie bids, if one bid is from a bidder located
within the City, the awarding authority shall accept the bid from the local bidder.
2.55.200 -Notification of award.
All bidders participating in the competitive sealed bid process shall be notified in writing of
the terms and conditions of the successful award.
2.55.210 -Competitive sealed proposals.
A. Proposals 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
specifications, contract terms, and conditions applicable to the contract or purchase. The
request for proposal shall state the following:
1. The criteria for evaluation of the proposal;
2. Relative importance of price, and other factors.
B. Notice. Public notice of the request for proposal shall be given in the same manner as
provided in Section 2.55.120(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.
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2.55.220 -Negotiation.
The most qualified and responsive proposals (minimum of three (3)) 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.
2.55.230 -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.
2.55.240 -Notification of award.
All suppliers participating in the competitive negotiation process shall be notified in writing of
the terms and conditions of the successful award.
2.55.250 -Rejection 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.
2.55.260 -Informal bids.
Any contract or purchase not exceeding seventy-five thousand dollars ($75,000.00) may be
made in accordance with informal bidding procedures; provided, however, that requirements shall
not be artificially divided so as to constitute a purchase under this section.
A. Solicitation of Bids. Insofar as is practical, the purchasing agent shall solicit proposals
from at least three (3) providers, by telephone, written request, or by public notice
pursuant to Section 2.55.120(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 (1) 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 2.55.170.
D. Bid not Required. Bidding may be dispensed with at the discretion of the purchasing agent
if the expenditure is less than five thousand dollars ($5,000.00).
2.55.270 -Inspection and testing.
The City shall inspect supplies, materials and equipment delivered, and contractual 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.
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DIVISION 2:
Chapter 2.60 of the San Rafael Municipal Code entitled "Professional Services
Agreements" is hereby repealed and deleted in its entirety.
DIVISION 3:
This Ordinance is exempt from the California Environmental Quality Act ("CEQA")
pursuant to the State CEQA Guidelines, since it can be seen with certainty that there is no
possibility that this Ordinance or its implementation would have a significant effect on the
environment (14 Cal. Code Regs. Section 15061 (b)(3)).
DIVISION 4:
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason
held to be invalid, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have adopted the Ordinance and each
section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that anyone or
more sections, subsections, sentences, clauses, or phrases be declared invalid.
DIVISION 5:
A summary of this Ordinance shall be published and a certified copy of the full text of this
Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the City
Council meeting at which it is adopted.
This Ordinance shall be in full force and effect thirty (30) days after its final passage, and
the summary of this Ordinance shall be published within fifteen (15) days after the adoption,
together with the names of the Council members voting for or against same, in the Marin
Independent Journal, a newspaper of general circulation published and circulated in the City of
San Rafael, County of Marin, State of California.
Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City
Clerk, a certified copy of the full text of this Ordinance along with the names of those
Councilmembers voting for and against the Ordinance.
ATTEST:
'(If. Y/2tvv-
LINDSAY LARA, City Clerk
The foregoing Ordinance No. 1957 was read and introduced at a regular meeting of the City
Council of the City of San Rafael on Monday, April 16, 2018, and was ordered passed to print
by the following vote, to wit:
AYES:
NOES:
ABSENT:
Council members: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
Councilmembers: None
Councilmembers: None
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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 7th day of May 2018.
LINDSAY LARA, City Clerk
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