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HomeMy WebLinkAbout33- Finance CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION JOHN P. MURPHY From: PURCHASING MANAGER Subject: REVISION TO PURCHASING ORDINANCE Dept: FINANCE/PURCHASING Date: 10/01/96 ORIGINAL Synopsis of Previous Council action: CS in: Recommended motion: THAT FURTHER READING OF THE ORDINANCE BE WAIVED AND IT BE LAYED OVER FOR FINAL ADOPTION. Signature Contact person: JOHN P. MURPHY, PURCHASING MANAGER Phone: ext. - 5086 Supporting data attached: YES Ward: FUNDING REQUIREMENTS: Amount: Source: (Acct. No.) (Acct. Description) Finance: Council Notes: Previously-� TABLED Agenda Item Nc �(/` STAFF REPORT BACKGROUND Attached is a revision to Section 3 . 04 of the Municipal Code entitled Purchasing System. The changes, summarized below, are categorized as either "policy changes" - referring to changes in authority levels, or "non-policy" changes - referring to changes related to syntax, grammar, or presentation. Also attached for your convenience is a copy of the code with changes highlighted and deletions lined through. Text not highlighted or lined through remains unchanged. NON-POLICY CHANGES On July 3 , 1994 , the Mayor and Common Council approved the deletion of the Purchasing Agent position and the creation of a Purchasing Manager position. This change as well as changes for purposes of clarity and syntax (i .e . changes that do not affect authority limits) are addressed. Redundant sections of the code (caused by numerous modifications throughout the years) have been deleted and incorporated into similar sections . Non-policy changes include the following: Changes made to use the following consistent terminology throughout : Purchasing Manager, procurement and he/she . Currently the code states that the Purchasing Agent operates under the direction of the "administrative officer. " This has been corrected to specifically state throughout the Code that the Purchasing Manager works under the direction of the Finance Director. Sections 3 . 04 . 030 - Estimates of Requirements, 3 . 04 . 040 - Requisitions, and 3 . 04 . 050 - Purchase Orders, have been deleted as separate sections and incorporated into Section 3 . 04 . 080 - Open Market Procedure. - Section 3 . 04 . 110 - Surplus Vehicles and Equipment, has been deleted as a separate section and incorporated into Section 3 . 04 , 100 - Disposal of Surplus Supplies and Equipment. Section 3 . 04 . 085 - Services has been clarified to state that the City Administrator, not the Purchasing Manger, is the approving authority for services valued in excess of $5, 000 but less then $25, 000 . POLICY CHANGES There is only one change affecting authority levels . In Section 3 . 04 . 080-D - Open Market Purchases For Which No Bids Are Required, the Purchasing Manager' s level of authority has changed from $2 , 500 to $5, 000 . The $2, 500 limit was established in 1988 ; since that time, both prices and volume have increased making $5, 000 a more practical limit . For consistency, this same change is also included in Section 3 . 04 . 085 - Contractual Services For Which no Proposals Are Required. RECOMMENDATION Staff recommends that the Mayor and Common Council adopt the attached Ordinance revising the sections of the Municipal Code related to Purchasing. 1 ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTIONS 3.04.010, 3. 04. 020, 3. 04.060, 3.04.070, 3.04.075, 3.04.080, 3 3.04. 085, 3.04. 090, 3. 04.100, AND 3.04.115 AND DELETING SECTIONS 2.06.010, 2.06. 020, 3. 04.030, 3.04.040, 3.04.050, 3.04. 110 OF THE 4 SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASING. 5 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 6 SECTION 1. Sections 3 . 04 . 010 and 3 . 04. 020 of the San 7 Bernardino Municipal Code are hereby amended to read as follows: 8 3.04.010 Adoption of Purchasing System. 9 A. In order to establish efficient procedures for the 10 purchase of supplies, materials and equipment, and contracted 11 services, to secure for all departments or agencies of the City 12 excepting the Municipal Water Department, supplies, materials, 13 equipment and services at the lowest possible cost commensurate 14 with the quality needed, to exercise positive financial control 15 over purchases, to clearly define authority for the purchasing 16 functions and to assure the quality of purchases, a centralized 17 purchasing system is adopted. Except as specified herein, there 18 shall be no exemption from centralized purchasing and no agency or 19 department shall be authorized to purchase, or contract for the 20 purchase of supplies, services or equipment independently of the 21 Purchasing Division. The Board of Water Commissioners shall 22 employ procedures substantially in compliance with 23 the provisions of this chapter as such may be applicable. 24 B. Exemptions. This chapter shall not apply to the 25 following: 26 1. Purchases from, or sales to a government or 27 governmental agency, or through any advantageous governmental -1- 28 I contract approved by Council, or to the purchase of election 2 supplies, or to purchases and/or services or service contracts 3 relating to litigation or prosecution or investigations thereof, 4 or to purchases and/or services or service contracts relating to 5 fire and police investigations, or to the purchases and/or 6 services or service contracts relating to board up or demolition 7 of buildings or structures. 8 2 . Purchases from a vendor or manufacturer which, 9 through the City's bidding procedure, or other governmental 10 agency's bidding procedure, has established a price at which such 11 a vendor or manufacturer is willing to sell to the City. During 12 such a bid procedure more than one responsive bid must have been 13 received, and the bid award must have occurred within one year at 14 the City's issuance of a purchase order. 15 3 . Purchases approved by the Mayor and Common Council. 16 4 . Purchases for less than five hundred dollars($500) . 17 5. Public Works contracts for construction projects and 18 service contracts subject to the State Public Contract Code, and 19 agreements for related professional services. 20 3.04.020 Purchasing Officer. 21 The purchase and sale of all supplies, materials and 22 equipment and services, shall be the responsibility of the 23 Purchasing Manager under the direction and supervision of the 24 Finance Director. 25 SECTION 2 . Sections 3 . 04 . 030, 3 . 04 . 040, 3 . 04 . 050, and 26 3 . 04 . 110 are hereby deleted from the San Bernardino Municipal 27 Code. -2- 28 1 1. Purchases from, or sales to a government or 2 governmental agency, or through any advantageous governmental 3 contract approved by Council, or to the purchase of election 4 supplies, or to purchases and/or services or service contracts 5 relating to litigation or prosecution or investigations thereof, 6 or to purchases and/or services or service contracts relating to 7 fire and police investigations, or to the purchases and/or 8 services or service contracts relating to board up or demolition 9 of buildings or structures. 10 2 . Purchases from a vendor or manufacturer which, 11 through the City's bidding procedure, or other governmental 12 agency's bidding procedure, has established a price at which such 13 a vendor or manufacturer is willing to sell to the City. During 14 such a bid procedure more than one responsive bid must have been 15 received, and the bid award must have occurred within one year at 16 the City's issuance of a purchase order. 17 3 . Purchases approved by the Mayor and Common Council. 18 4 . Purchases for less than five hundred dollars($500) . 19 3.04. 020 Purchasing Officer. 20 The purchase and sale of all supplies, materials and 21 equipment and services, shall be the responsibility of the 22 Purchasing Manager under the direction and supervision of the 23 Finance Director. 24 SECTION 2 . Sections 3 . 04 . 030, 3 . 04 . 040, 3 . 04 . 050, and 25 3 . 04 . 110 are hereby deleted from the San Bernardino Municipal 26 Code. 27 -2- 28 1 SECTION 3 . Sections 3 . 04 . 060, 3 . 04 . 070, 3 . 04 . 075, 3 . 04. 080, 2 3 . 04 . 085, 3 . 04 . 090, 3 . 04 . 100, and 3 . 04 . 115 of the San 3 Bernardino Municipal code are hereby amended to read as follows: 4 3.04.060 Encumbrance of Funds. 5 The Purchasing Manager shall not issue any purchase order for 6 supplies, materials, equipment or services unless there exists an 7 unencumbered appropriation in the account against which the 8 purchase is to be charged. 9 3. 04.070 Formal Contract Procedure. 10 Except as otherwise provided in this chapter, purchases and 11 contracts for supplies, materials, and equipment of a value of 12 twenty-five thousand($25, 000) or greater shall be by a written 13 contract with the lowest possible and best bidder, pursuant to the 14 procedures described in this section: 15 A. Notice Inviting Bids. Notices inviting bids shall 16 include a general description of the articles to be purchased, 17 shall state where bid blanks and specifications may be secured, 18 and the time and place for opening bids. 19 B. Notice. Publication and Mailing. Notice inviting bids 20 shall be published at least ten days before the opening of bids in 21 a newspaper of general circulation printed and published in the 22 city. 23 The Purchasing Manager may establish and maintain a list of 24 prospective bidders. The prospective bidders shall be listed on 25 said list according to the service or product provided as 26 indicated by the prospective bidder. It shall not be the 27 -3- 28 1 responsibility of the Purchasing Manager to ensure that the list 2 contains current information in respect to the address, service or 3 product of the prospective bidder. The Purchasing Manager is 4 authorized to mail invitations to bid directly to appropriate 5 bidders appearing on said list and to other prospective bidders . 6 Vendors whose actual performance has not met City standards, may 7 be removed from the bid list . 8 C. Bidder' s Security. Each bid or proposal may be required 9 by the Purchasing Manager to be accompanied by a bidder' s bond, or 10 a certified/cashier' s check in an amount not more than ten 11 percent of the total bid. The Purchasing Manager shall establish 12 standards for determining under what circumstances a bidder' s 13 security shall be required in order to protect the interests of 14 the City. When deemed necessary by the Purchasing Manager, 15 bidder' s security may be prescribed in the public notices inviting 16 bids . When bid security is required, bidders shall be entitled to 17 return of bid security, provided that a successful bidder shall 18 forfeit his bid security upon refusal or failure to execute the 19 contract within ten days after the notice of award has been 20 mailed, unless and to the extent the City is responsible for the 21 delay. The Common Council may, on refusal or failure of the 22 successful bidder to execute the contract, award it to the next 23 lowest and best bidder. If the Common Council awards the contract 24 to the next lowest and best bidder, the amount of the lowest 25 bidder' s required security shall be applied by the City to the 26 difference between the low bid and the second lowest bid, and the 27 -4- 28 1 surplus, if any, shall be returned to the lowest bidder. 2 D. Bid Opening Procedure . Sealed bids shall be submitted 3 to the Purchasing Manager and shall be identified as bids on the 4 envelope . Bids shall be opened in public at the time and place 5 stated in the public notices . A record of the bids received shall 6 be available for public inspection after the bids have been 7 opened, indicating the amounts bid by the various bidders and the 8 basis for awarding the contract or purchase order if other than 9 the lowest bidder. Such list shall be available for thirty days 10 after the award has been made . 11 E. Rejection of Bids . At its discretion, the Mayor and 12 Common Council shall have the power to reject any and all bids 13 presented and readvertise for bids . 14 F. Award of Contracts . Contracts shall be awarded by the 15 Mayor and Common Council, by resolution, to the lowest and best 16 bidder except as otherwise provided herein. In the event a 17 contract cannot be consummated with the lowest and best bidder, 18 the Purchasing Manager may negotiate with the next lowest and best 19 bidder, or reject all bids and report reasons for such action to 20 the Mayor and Common Council for their ratification. 21 G. Tie Bids . If two or more bids received are for the same 22 total amount or unit price, quality and service being equal and if 23 the public interest will not permit the delay of readvertising for 24 bids, the Mayor and Common Council may accept the one it chooses 25 or accept the lowest bid made by negotiation. 26 27 -5- 28 I H. Performance Bonds . The Purchasing Manager shall have 2 authority to require a performance bond before executing a 3 contract in such amount as he shall find reasonably necessary to 4 protect the best interests of the City. If the Purchasing Manager 5 requires a performance bond, the form and amount of the bond shall 6 be described in the notice inviting bids . 7 I . Negotiated Purchases . At the discretion of the Finance 8 Director, the Purchasing Manager may authorize the purchase of 9 technical or specialized supplies and equipment by competitive 10 negotiation when such a method of purchase would be more 11 advantageous to the City and any of the following conditions 12 exists : 1 . The supplies or equipment are such that suitable 13 technical or performance specifications are not readily available; 14 15 2 . The City is not able to develop descriptive 16 specifications; or, 17 3 . The quality of the supplies and equipment cannot be 18 accurately determined by reference to their specifications alone . 19 3 .04 . 075 Emergency Purchases. 20 In case of an emergency, which is so urgent as to preclude 21 advance action by the Mayor and Common Council and which requires 22 purchase of supplies, materials, equipment or contractual 23 services, the City Administrator shall have the authority to 24 authorize the Purchasing Manager to secure in the open market at 25 the lowest obtainable price any such supplies, materials, 26 equipment or contractual services . This emergency authority shall 27 -6- 28 I extend to all purchases, irrespective of the fact that the amount 2 might exceed the authorized limitation for open market purchases . 3 In all instances a full explanation of the emergency circumstances 4 shall be filed with the Mayor and Common Council . 5 3 . 04 . 080 Open Market Procedure. 6 Purchase of supplies, materials, and equipment of a value in 7 the amount of twenty-five thousand dollars ($25, 000) or less may be 8 made by the Purchasing Manager in the open market, in accordance with the following procedure : 9 A. Minimum Number of Bids . Open market purchases shall 10 wherever possible, be based on at least three bids, and shall be 11 awarded to the lowest and best bidder. 12 B . Blanket Purchase Orders . Blanket Purchase Orders confer 13 no special right or privilege to a vendor. They are a billing 14 convenience and will not encumber department funds . They may be 15 used by all departments . 16 C. Contract Purchase Orders . These Purchase Orders 17 are written for one year based upon a department' s estimates of 18 requirements it will need for a commodity or service . The 19 Purchasing Manager seeks competition to obtain the best price 20 and/or service and awards the Purchase Order to the lowest or 21 best offeror. When these requirements exceed twenty-five 22 thousand ($25, 000) annually, they will require Mayor and Common 23 Council approval . 24 D. Open Market Purchases For Which No Bids Are Required. 25 For open market purchases not exceeding five thousand 26 27 -7- 28 I dollars ($5, 000) , the Purchasing Manager shall have the authority 2 to select a specific vendor and place an order written without 3 obtaining additional competitive bids . 4 3 . 04 . 085 Services. 5 A. The Purchasing Manager may contract for services of a 6 value of twenty-five thousand dollars ($25, 000) or less 7 in accordance with the following procedure : 8 1 . Minimum Number of Proposals . Contracts for 9 services shall, whenever possible, be based on at least three 10 Proposals, and shall be awarded to the provider who can best meet it the needs of the City. Although cost shall be considered by the 12 Purchasing Manager in entering into such contracts, it shall not 13 be the sole determining factor. 14 2 . Proposals . For services valued in excess of five 15 thousand dollars ($5, 000) proposals shall be submitted to the 16 Purchasing Manager who shall keep a record of all such proposals 17 for not less than 180 days . This record, while kept, shall be 18 open to public inspection. 19 3 . Contractual Services For Which No Proposals Are 20 Required. For contractual services not exceeding five thousand 21 dollars ($5, 000) in value, the Purchasing Manager shall have the 22 authority to select a specific provider and enter into a contract 23 without obtaining additional proposals . For services valued in 24 excess of five thousand dollars ($5, 000) , but less than twenty five 25 thousand dollars ($25, 000) , the City Administrator shall be the 26 approving authority. 27 -8- 28 1 2 B . Contractual services with a value in excess of twenty- 3 five thousand dollars ($25, 000) must be approved by the Mayor and 4 Common Council pursuant to Requests For Proposals as authorized by 5 the Mayor and Common Council . 6 C. The provisions of Subsection A above shall not apply to 7 contracts for special counsel services which are provided for 8 pursuant to Chapter 2 . 20 of this Code . 9 3 . 04 . 090 Annual Audit 10 An annual audit of the accounts established by the Purchasing 11 Manager pursuant to the authority granted under this chapter shall 12 be performed annually under the City' s audit contract . 13 3 . 04 . 100 Disposal of Surplus Supplies and Equipment 14 A. All using agencies and departments shall submit to the 15 Purchasing Manager or his/her designee, at such times and in such 16 form as he shall prescribe, reports showing all supplies, 17 materials and equipment which are no longer used or usable or 18 which may have become obsolete, unsuitable or worn out . The 19 Purchasing Manager shall have authority to sell said supplies, 20 materials and equipment, or to exchange the same for, or trade in 21 the same on, new supplies, materials and equipment . Such sales, 22 exchanges or trade-ins shall be made to the highest and best 23 bidder pursuant to the procedures of Section 3 . 04 . 070 or 3 . 04 . 080, 24 whichever is applicable, or shall be made at a public auction as 25 hereinafter set forth. The Purchasing Manager, when directed by 26 the Mayor and Common Council, shall restrict the sale of surplus 27 -9- 28 I supplies, materials and equipment of a value in an amount of three 2 thousand dollars ($3 , 000) or less to local nonprofit tax exempt 3 corporations, associations or organizations pursuant to Section 4 3 . 04 . 080, or shall negotiate and consummate a sale to a 5 governmental agency, including any domestic or foreign sister 6 city. Each restricted or negotiated sale under this chapter shall 7 be consummated at the fair market value of the surplus supplies or 8 equipment . 9 B . Public Auction. A notice describing the property in 10 sufficient detail for its identification shall be prepared by the 11 Purchasing Manager and shall be given at least five days before 12 the time fixed therefore by publication once in a newspaper of 13 general circulation published in the City. 14 C. City officers shall not be purchasers at any such public 15 auction authorized, conducted or administered by them in their 16 17 official capacity, nor shall any city officer or employee directly 18 or indirectly submit a bid at the auction if he has participated 19 in the preparation or conduct of the auction in his official 20 capacity. 21 D. The property so offered for sale shall be sold to the 22 highest bidder for cash, provided that the Purchasing Manager may, 23 at his discretion, fix a minimum sale price and may refuse to sell 24 unless the minimum price is offered, and may further refuse to 25 sell unless a deposit of security is immediately made . 26 27 -10- 28 I E . Any property sold at public auction shall be delivered 2 to the purchaser upon payment of the purchase price . 3 F. The proceeds of the auction sale or sales shall 4 immediately be deposited with the Treasurer of the City. 5 6 3 . 04 .115 City Administrator. Any duty or responsibility given to 7 the Purchasing Manager by this Chapter may likewise be performed 8 or fulfilled by the City Administrator or his or her designee . 9 3 . 04 .120 Penalty to Split Purchases. It shall be unlawful to 10 split or separate into smaller purchases, a procurement so as to 11 bring the purchase within the provisions of any exemption or less 12 stringent procedure provided herein. 13 3 . 04 .125 Local Bidders. Any formal or informal bid submitted by 14 a local bidder for goods or materials pursuant to this chapter 15 shall receive a one percent (1%) credit for comparison purposes 16 with other bidders . For the purpose of this section, ' local 17 bidders' shall be bidders for which the point of sale of the goods 18 or materials shall be within the City of San Bernardino. 19 20 21 22 23 24 25 26 27 -11- 28 1 ORDINANCE NO. 2 AN ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING SECTIONS 3 3.04.010, 3.04.020, 3. 04.060, 3.04.070, 3.04. 075, 3.04.080, 3.04.085, 3. 04. 090, 3. 04. 100, AND 3.04.115 AND DELETING SECTIONS 4 2.06.010, 2.06. 020, 3.04.030, 3.04.040, 3.04.050, 3. 04.110 OF THE SAN BERNARDINO MUNICIPAL CODE RELATING TO PURCHASING. 5 I HEREBY CERTIFY that the foregoing ordinance was duly 6 adopted by the Mayor and Common Council of the City of San 7 Bernardino at a meeting thereof, held on the 8 day of 1996, by the following 9 vote to wit: 10 Council Members: AYES NAYS ABSTAIN ABSENT 11 NEGRETE 12 CURLIN 13 ANDERSON 14 OBERHELMAN 15 DEVLIN 16 ARIAS 17 MILLER 18 19 CITY CLERK 20 The foregoing resolution is hereby approved this day of 21 1996. 22 Tom Minor, Mayor 23 City of San Bernardino 24 Approved as to form and legal content: 25 -, /4AMES F. PENMAN, 27 /City Attorney 28 Chapter 3.04 PURCHASING SYSTEM SECTIONS: 3 . 04 . 010 Adoption of purchasing system. 3 . 04. 020 Purchasing Officer 9 . 0-- 3. 03 9 Estimates of n .-t- 3 . 04 . 949 Requisitiens 3 . 94 . 0 5 9 Purehase Orders 3 . 04 . 060 Encumbrance of funds 3 . 04. 070 Formal contract procedure 3 . 04 . 075 Emergency purchases 3 . 04. 080 Open market procedure 3 . 04. 085 Services 3 . 04 . 090 Inspection and Testing 3 . 04 . 100 Surplus supplies and equipment 3 . 94 . 110 Surplus vehieles and equipment 3 . 04 . 115 City Administrator 3 . 04 . 120 Penalty To Split Purchases 3 . 04 . 125 Local Bidders 3. 04. 010 Adoption of Purchasing System. A. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services, to secure for all departments or agencies of the City excepting the Municipal Water Department and the Free Pub) e Library supplies, materials, equipment and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases to clearly define authority for the purchasing functions and to assure the quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no agency or department shall be authorized to purchase, or contract for the purchase of supplies, services or equipment independently of the administrative—e-€free ; Y g a < : The Board of Water Commissioners and the a tiz ee * Library shall employ procedures substantially in compliance with the provisions of this chapter as such may be applicable. B. Exemptions. This chapter shall not apply to the following: 1. Purchases from, or sales to a government or governmental agency, or through any advantageous governmental contract approved by Council, or to the purchase of election supplies, or to purchases and/or services or service contracts relating to litigation or investigations thereof, or to purchases and services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures 2 . Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other Gali€era—gever-nment ar governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received, and the bid award must have occurred within one year at the City's issuance of a purchase order. 3 . Purchases approved by the Mayor and Common Council. 4 . Purchases for less than five hundred dollars ($500) . .::.;:::.:.:...>......:..... 5. ua c © cnrts .f ooririie:t ? n.::: :�r ::::.ect `? and :::.:::::::::::::::::::::::::. .:.:.::.:.................:...........................:...:.:.......:.............::....:..::::::::::::::::::::::::::::::::::.....:.:.::.:::::::::A::.:::::7.:::::::::::::::............... .::::...:.:.. ::...:...::::..::.::..:..:.:.:: ::.;....:;:.:::.: :.;..;::::.;:.;;.....;..;:::.;:,:,::::.:::::.::::::. :..:..: ..: .::: .::.; tk..: : :.;:.; .::<; e .:::. J : . ::::Ccn .r... ::::Csd . :::.::a .............................................................. .......................................:.:.::::::::::::::::::::::::.::::.:::::::::::::::::::.:.::::::::.::.............................. ................ a; regiment z::::>:::f:or::>:<rel aced:::>::<:ra:fes 0 a:ls-e.VICes: .::.::::.................................................................................................................................................................. 3. 04. 020 Purchasing Officer. The purchase and sale of all supplies, materials and equipment and services, shall be the responsibility of the purehasing agent l? sa ? larz; under the direction and supervision of the atstao :<` . :�..... ....t'::: ............................................................ 3. 04. 030 Estimates of reefuirements. All-u using departments and ageneies sha' =e-defiled motes of their- r-11-. ,e its fems--supplies, materials-tea as :the City administrative epee shall preseribe-. 3.04. 030 Requisitions Using-departments and-a.eneies shall submit- requests fer supplies, materials and equipment te the Purehasing Agent by standard requisitien ferns 3.04. 030 Pu=-eha s a-orders. Purehase of supplies, materials,and—equ pxire~ntshall—be fame en}y by pureh•a-s e-er-aer,-and signed by tre-Purehasing Agent o= administrative e€€ieer ems-or her 3. 04.060 Encumbrance of funds. The Purchasing Agent ehs 0. shall not issue any purchase order for supplies, mat erialse equipment, e7rsrae unless there exists an unencumbered appropriation in""t1e account against which the purchase is to be charged, and until the has been a-ppreved-by the finanee-divi-sien e€-the-administrative-e€€iee. 3.04. 070 Formal Contract Procedure. Except as otherwise provided in this chapter, purchases and contracts for supplies, materials and equipment of a value f twent -five thousand d ollars ':;::5 !' 4 °;<`:': >' to>:>te�` shall be written contract with the lowest...possble and best bidder, pursuant to the procedures described in this section: A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. B. Notice. Publication and Mailing. Notice inviting bids shall be published at least ten days before the opening of bids in a newspaper of general circulation printed and published in the City. .......................... The Purchasing t ee may establish and maintain a list of prospective bidders. The prospective bidders shall be listed on said list according to the service or product provided as indicated by the prospective bidder. It shall not be the responsibility of .......................... the Purchasing t P?I 3'ja<, e ! to ensure that the list contains current information in respect to the address, service or product of the prospective bidder. The Purchasing Agent M"" 46 is authorized to mail invitations to bid directly to appropriate bidders appearing on said list and to other prospective bidders. fiend©r wb se actual perf oManco �a� n�� net Ca ty standa'r�I `. ma ................ ..be C. Bidder's Security. Each bid or proposal may be required .......................... by the Purchasing t a?z� �r to be accompanied by a bidder's bond, certified er-;<€ cashier's check, er ern in an amount not more than ten percent of the total bid. The Gity dministra =~� ? � shall establish standards for determining under .................. ...... g what. circumstarices a bidder's security shall be required in order to protect the interests of the City. When deemed necessary by the �u arimi tai stmt-er jlaslngSnag , bidder's security may be prescribed in the publ c notices . riviting bids. When bid security is required, 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 days after the notice of award has been mailed, unless and to the extent the City is responsible for the delay. The Common Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest and best bidder. If the Common Council awards the contract to the next lowest and best bidder, the amount of the lowest bidder's required 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. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent 2 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 record of the bids received shall be available for public inspection after the bids have been opened, indicating the amounts bid by the various bidders and the basis for awarding the contract or purchase order if other than the lowest bidder. Such list shall be available for thirty days after the award has been made. E.Rejection of Bids. At its discretion, the Mayor and Common Council shall have the power to reject any and all bids presented and readvertise for bids. F. Award of Contracts. Contracts shall be awarded by the Mayor and Common Council, by resolution, to the lowest and best e s bidder except a otherwise provided herein. ; t« 1' C no :::::: :.::.: onsaate�l:::::: h..::::t .:::::: . wes .:::,:and »>b . t.;>:>:; ddr:»>::.>: h .................................................................................................................................................................................................................................................... ...........:.:: ............... <.. ..:..:...:..;:::..:.::..;.::.:;::::::::::.;: »;:>::;. s , ua � :: t :..: . ;>::;::>: :i: :<::: 1r<::< h :::::l�w0.. ..... .rd..... e ::: .:::::::::::::::::.:: .::::::::::::::::::. .:::::::::::. .::.:::::::.:::::::::::::::::...::::::::::::......:::. .....:.........::::.:::::::::.:.:::::::::::::::::::::::::.:::::: b:a dd er: ::::::::cr;:::::r:e::>::eat::::>a]>l:<:::b;:dam:.;;:: :n :::::>::<:;:.: ..... :.>.:.:»:;.:: ,. d........re .ert....r.ea.sans::»:f:or:: :suc :::::>:aet:s:s n »t:x ........................a..................... .. :.:.............:::::.:..:.:.::::::::::::::::.p..::::::::::::::::::::::::::::::..::::::::::::::::::::::..:.:::::::::::::::..:::::::::::::::::::::::::::: tY a « o f . ... '.. `'?: ?> >'t `;«' °`'? `:;:.;>> . ......................... .................................... G. 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 readvertising for bids, the Mayor and Common Council may accept the one it chooses or accept the lowest bid made by negotiation with tie bidders at the tie of the bid ...................................... H. Performance Bonds. Theari :. . #' b;;;:: shall have authority to require a performance bond...be. ore executing a contract in such amount as it lze? shall find reasonably necessary to protect the best interests of �the City. If thecYa : :ngianag,er requires a performance bond, the form and .:..:.amount::.:.:.:of::::::.t'Se bond shall be described in the notice inviting bids. I.Negotiated Purchases. At the discretion of the E}ty h Purchasing Mari" may authorize the purchase of technical or specialized supplies and equipment by competitive negotiation when such a method of purchase would be more advantageous to the City and any of the following conditions exists: 1. The supplies or equipment are such that suitable technical or performance specifications are not readily available; 2 . The City is not able to develop descriptive specifications; or, 3 . The quality of the supplies and equipment cannot be accurately determined by reference to their specifications alone. thereen shall be made-te-the-city Adrainitratee 3. 04. 075 Emergency Purchases. In case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common Council and which requires purchase of supplies, materials, equipment or contractual services, the City Administrator shall have the authority to authorize the ........................... Purchasing Agent 2ne?e to secure in the open market at the lowest obtainable price any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized limitation for open market purchases. In all instances a full explanation of the emergency circumstances shall be filed with the Mayor and Common Council. 3. 04. 080 Open Market Procedure. Purchase of supplies, materials, and equipment of a value in the amount of twenty-five thousand dollars($25, 000) or less may be ........................... made by the Purchasing Agent in the open market, in accordance with the following procedure: A. Minimum Number of Bids. Open market purchases shall wherever possible, be based on at least three bids, and shall be awarded to the lowest and best bidder. B. Netiee inviting bids. The Purehase Agent shall seli :.. �l�nk..... s+ C#rders, 3 a»het urch ' e': t rd :rs con..................x �: »»: .::.:.::...:.., ::»:.:.>:.> .ck .....t�:::::.;.;:: .... ed < >::;:::::::..mb� .::;:::> :...:b rich convenience'...,:.:> a>d::<: :< ;.> : ::.... ... ::::.:>>..: <:<:<:» . ...:. : < .. ..: .... ,>.... ......:.......... ri :...w�:11.::::not.::::e�cu�b�*x.::.:departm�nt f�znds. �hey;:..may.. b :......... ..... . :.. «:.,:.,:. .........................:::::::......::::::::.:.......::::::::::>::::::..::............................... :::::::::::::::::. .:::::..:.:::::::::::::::. ::: enders—and-bids fems--the—required- erred of time—a€ter t submissien efbids—er the plaeing e€—erders. m-his=reeer-d while se kept shall pe-epees-te publi_ ,sp_etien_ ....:::.....�. ::: ........ . ...:........................................... ..:±fir sr::.;:;-.:;>:> >:<' ese«<:>:< 'u chase E ri ..br $ e � i for one yeas bassd �zp n a iepar�ent est mate f i ::. e c : ...:::::: e . ...:...:...:..:...:....::::. ...:...:..::..:..:....:::::::..::..:.......:..:::::::...:..:...: .':.::.: i?urcha >­.Tan. :::>:::.::..:::>::::> ::::>:..::: a>ng.>;:; anager.:::::se.oks.:::cam e . .xo >;>;:; o::::::r�bta.�.z ::::the:;;:.;:.ke:st>«:>:: .r: e ..........................................::.......:::::::::::::::::::::::::::::::::::. .........................................:.:::::::::::::::::::::::..::::.::::::.::::.:::::::::::::::::.:..... ............... .......:......:.::::::::::::.:::::::.:::::::::::.:::. .:.::.::.::::.::::::::::.::.:::....:........................::.::.... ::.:: lr sece end awas �.he Puh . Ie...lowstr best he.n.;:,;;: h :: ;e >; . .. u.a cements.;:.;:.:::e.x � d:.;:.;:.;twent:::.;:.;:f: v. ::: :::::::::::.::..................:.::q ::.X.:X-::::.::::::::::::.::::::::::::::::::::::::::::::::::::::::::::.... ............. .:::::thousand ..............:...:::::: :::::::::.. ..::::::::::::::::.:::.::..::.::::::::::::.............................:. :.: ::::::::::::.:.::::::::::::.::::::::::::::::::::.::. ::::::::.::...:::::::::::::::::::::::::: :..............................................:.::::::: :::::::::::.::::::::: .... : ......................... .:.....................::..:::::::::.............. . ::::;:;�;:> ::;:; .............................................................:....:.::::.......... .......... :::::::::::::::::. na.l:::app�oua] D. Open Market Purchases For Which No Bids Are Required. For open market purchases not exceeding twenty five hundred de i the Purchasing t Mr�n - g shall have the authority to select a specific vendor and place' an order without obtaining additional competitive bids. 3.04.085 Services. ......................... A. The Purchasing Agent ± ge may contract for services of a value of twenty-five thousand dollarspi'0 or less in accordance with the following procedure: .:................................. 1. Minimum Number of Proposals. Contracts for services shall, whenever possible, be based on at least three proposals, and shall be awarded to the provider who can best meet the needs of the City. Although cost shall be considered by the Purchasing Agent <'3c3CeY in entering into such contracts, it shall not be the sole determining factor. 2Reques t For Proposals—(RF )-s—The- P a r e� aSin Agent shall selieltprepesals bye written requests er by telephene �e pre poet l ye preyl 'fir^ �3-. —Written Proposals. Sealed writ ten pre� aSall shall b e submitted��e- ere� ae�}g 7 e -wie shall keep reeerR .ran sueh prepesals fer net less than 189 days. This reeerd while kept shall be-epen to-publi rc ;o :al:s: :;>> : .: .. �c ,;; v .;:.; $. t d:::: R::: xc s :::cry.::: r. .. hausanr dpi>:::. :::: «:::>:: : ;' :>::< ; 1 ar.s.:.. .:::c t3Q.. :.:::::: .:ro :asals.......ha .l ..he..... ubm tted:><:<to..... he::>::Pur ha 3n: r.::.... .......P..........::::::::::::::::.::::::: .:::::.::::::::::::::::::::::. :::::::::::::::::::::::::::::::::::::::::::::::............................... t�t14? sha �ep..a..recrd.. :>:<$: stzo1 propt�sa s fir not... ess :::.: an>:>'>?:'`'...:..::.:::...: ..: :.....::. h ...:ro:oordwh.T:. .o.;:xjce ::::>::::: haal:.;:k ..:o en:.::aQ. u It A P.:::..::::::::::::._: p.:::::.:........... :.......................... ..:. ...:............:::::: ::::::::::::::.::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.: 3: Contractual Services For Which No Proposals Are Required. For contractual services not exceeding � „` tic ........ d4 '1'as ,fi�Qi in value the Purchasing g Agent +tariag shall have the authority to select a specific provider ancT enter into a contract without obtaining additional proposals. Val:< '"ages :::;.:: <::>: :e s:::>:::: »:::fwe;:>::ahr�us n s... .5. .a: .0....... . .::: :::: .:::::. :: .::::::::::::::::::::::::.:::::::::::::::: :::: .:::dp .;� ....... ..... ............. .....bn :::: e s:::.the t >::>::;:: . :.t :ocsand...dol:lar: ;' ::t3Q.Q ::>..the.:;Gat . Adm :n: strator::>:::shall :.:::::::::::::::::::::..:................................... . . ... .............}.::::.::::::::.:::.:::::::::.��.::::..: '.:::.:'.:'4:::.::.:':.::.i:.::::.::'." i'.....:'::'':::i':i::i::::::::::.::::.::::::::.::::::::::::::::::::::::.�::::::::::::::::::::.�::.:�.:�:::::::::::.::::::::::.::�::::::::::::.::.: .................... »>:>:>: .?:>::»..... ..... ��:>>::>::»»»> ” B. Contractual services with a value in excess of twenty-five thousand dollars ($25, 000) must be approved by the Mayor and Common Council pursuant to Requests For Proposals as authorized by the Mayor and Common Council. C. The provisions of Subsection A above shall not apply to contracts for special counsel services which are provided for pursuant to Chapter 2 .20 of this Code. 3.04.090 Annual Audit An annual audit of the accounts established by the Purchasing Aged pursuant to the authority granted under this chapter shall 'be performed annually by the Department :44; A repert ef sueh audit shal be Xt*'..i�>Vbn-tgaq . <r 3.04. 100 3 ! ? surplus supplies and equipment. .::::::::..:.......................;::.;::....: A. All using agencies and departments shall submit to the pureha Fkd Itl : : .;..ci ;;:.; � s , at such times and in such form as hd/'§hb­­§hd "prescribe; reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The tr ";` '#` ?r shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures of Section 3 . 04. 070 or 3 . 04 . 080, whichever is applicable, or shall be made at a public auction as hereinafter set forth. The purehasing agent 1?;` VO z _* when directed b the mayor and common council J Y Y shall restrict the sale of surplus supplies, materials and equipment of a value in an amount of three thousand dollars ($3 , 000) or less to local nonprofit tax exempt corporations, associations or organizations pursuant to Section 3 . 04. 080, or shall negotiate and consummate a sale to a governmental agency, including any domestic or foreign sister city. Each restricted or negotiated sale under this chapter shall be consummated at the fair market value of the surplus supplies or equipment. B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the el-ty adm -' s r..ter tfr s r ''"er and shall be given at least five days before the time fixed therefore by publication once in a newspaper of general circulation published in the City. C. City officers shall not be purchasers at any such public auction authorized, conducted or administered by them in their official capacity, nor shall any city officer or employee directly or indirectly submit a bid at the auction if he/she has participated in the preparation or conduct of the auction in his official capacity. D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the eity adfftinistrater ac Ma a ek may, at his discretion, fix a minimum sale price grid . nay refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made. E. Any property sold at public auction shall be delivered to the purchaser upon payment of the purchase price. F.The proceeds of the auction sale or sales shall immediately be deposited with the Treasurer of the City. and „'lace in the genera' fund thereef. 3. 04.119 Surplus vehieles and equipment. F ...i l, el.ie1 e and c.aw, N+« nt by sealed bid sale with er witheut newspaper adver-tising, but 3. 04.115 City Administrator. Any duty or responsibility given to the Purchasing 'N ' � ' by this Chapter may likewise be performed or fulfilled by the City Administrator or his or her designee. 3.04.120 Penalty To Split Purchases. It shall be unlawful to split or separate into smaller purchases, a phase cri so as to bring the purchase within the provisions of any exemption or less stringent procedure provided herein. 3.04.125 Local Bidders. Any formal or informal bid submitted by a local bidder for goods or materials pursuant to this chapter shall receive a one percent(1%) credit for comparison purposes with other bidders. For the purpose of this Section, ' local bidders' shall be bidders for which the point of sale of the goods or materials shall be within the City of San Bernardino.