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Home My WebLink AboutNS-14772-13-79 ORDINANCE NO. NS-1477 AN ORDINANCE OF THE CITY OF SANTA ANA ESTABLISHING PURCHASING RULES AND REGU- LATIONS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: That the Santa Aha Municipal Code. is here- by amended by adding Article VIII to Chapter 2, to read as follows: Article VIII. Purchasing Rules and Regulations. Sec. 2-800. Adoption of Purchasing System. In order to establish efficient procedures for the con- tracting and purchasing of services, supplies, materials and equipment; to secure for the city services, supplies, materials and equipment at the lowest possible cost commensurate with quality needed and with due consideration to disposability; to exercise positive financial control over purchases; to clearly define autho- rity for the purchasing functions; to assure the quality of pur- chases; and to buy without favor or prejudice, a centralized pur~ chasing system is hereby adopted and shall control the procedure of all purchases except as otherwise provided by law. Sec. 2-801. City Manager. The City Manager is authorized to bind the City on con- tracts in writing without advertising and without previous approval by the City Council of each specific item for the payment of charges for materials, supplies, labor, equipment, other valuable consideration to be furnished the City, or for public works con- struction as defined in Charter Section 421 in amounts not exceed- ing the sum of $5,000.00 without a contract let to the lowest responsible bidder after notice, in any one contract. Sec. 2-802. Emergency and Petty Cash Purchases in Amounts Under $200.00. For emergency or petty cash purchases only, an officer of the City is authorized to bind the City on contracts in writing without advertising and without previous approval of the City Council of each specific item for the payment of charges for materials, supplies, labor, or other valuable consideration fur- nished the City in amounts not exceeding $200.00 in any one contract. Sec. 2~803. Centralized Purchasing System. The City Manager is directed to establish and maintain a centralized purchasing system. In connection therewith, the du- ties and specific powers of said Manager shall include, but not be limited to, the following: (a) Act to procure for the City the needed quality in services, supplies, materials and equipment at the least expense to the City. (b) Negotiate and recommend execution of contracts for the purchase of services, supplies, materials and equipment. ORDINANCE NO. NS-1477 PAGE TWO (c) Endeavor to o~tain as full and open competition as possible on all purchases. (d) Keep informed of current development in the field of purchasing, prices, market conditons and new PrOducts. (e) Establish rules and procedures governing the pur- chase of services, supplies, materials and equipment for the City. (f) Prescribe and maintain such forms as are reason- ably necessary for the operation of this Article. (g) Keep or cause to be kept an inventory of all muni- cipal property in his or her custody. (h) When required, cause notices inviting bids to be published. (i) Endeavor to establish standards in the variety of articles, supplies, materials, and equipment, commonly used by the various departments and agencies, as will make possible uniform purchases, when consistent with efficiency. Sec. 2-804. Procurement of Services, Supplies, Materials and Equipment in Amounts Over $5,000.00. The following procedures shall apply to purchases exceeding $5,000: (a) Notice Inviting Bids. Notices inviting bids shall include a general description of the things to be pur- chased and the time and place for bid opening. The notice shall be published in a newspaper of general circulation in the City for at least two days, the first of which shall be at least ten (10) days before the date set for opening bids. (b) Invitation for Bid. Any interested bidder may obtain an invitation for bid. Bids may be solicited from a list of responsible suppliers by sending them an invitation to bid. The invitation for bid shall include the following information: A general description of the things to be purchased, the time and place for bid opening, bid instructions, and the terms and conditions of the bid and any resulting contract. (c) Return of Bids. Ail formal bids shall be sub- mitted sealed in accordance with the instructions contained in the "Invitation for Bid" form. (d) Opening of Bids. The bids shall be opened in public at the time and place stated on the "Invitation for Bid." All bids shall be publicly declared. ~ (e) Award of Contract. Upon examination of all bids and a determination of the lowest and best bidder, a recommenda- tion as to the successful bidder will be submitted to the City Council by the City Manager. Upon approval, the Contract shall be delivered to the successful bidder. If two or more bids re- ceived are the s~e and the lowest, the Council may accept the one it chooses, The right to reject any or all such bids is expressly reserved to the City. Sec, 2~805. Procurement of Labor and Materials for Public Works Construction in Amounts over $5,000.00. The following procedures shall apply to public works projects exceeding $5,000: (a) Notice Inviting Bids. Notice inviting bids shall include a general description of the project, the place to obtain the plans and specifications, and time and place for opening bids. The notice shall be published in a newspaper of ORDINANCE NO. NS-1477 PAGE THREE general circulation in the City for at least two days, the first of which shall be at least ten days before the date set for opening bids. (b) The Bid. Included with the plans and specifications for a public works project shall be the following documents: instructions to bidder, proposal, bond samples and the contract. The bidder shall execute the proposal and contract and submit them sealed with at least a ten percent bid bond,cashier's check or certified check. (c) Award of Contract. Upon opening the bids at the time and place stated in the notice, the aggregate bid of each bidder shall be publicly declared. Following the determination of the lowest and best bidder, the proposal and agreement from this bidder shall be sent to the City Attorney for approval as to form. The documents shall then be presented to the City Council for approval and authorization for execution. If two or more bids received are the same and the lowest, the Council may accept the one it chooses. The right to reject any or all such bids is expressly reserved to the City. (d) Notification of Award. A notification letter, a request for bonds, when necessary, and a copy of the fully executed contract shall be delivered to the successful bidder. (e) Performance Bonds. To secure faithful performance of the contract, City Manager is authorized to require security in the form of cash, cashier's check, certified check, or corporate faithful performance bonds, in the following percent of the aggregate amount bid.: 1. 100% Bond for Faithful Performance 2. 50% Contractor's Payment Bond Sec. 2-806. Procurement of Services, Supplies, Materials, Equipment and Public Works Construction in Amounts from $200.00 - $5,000.00. The following procedures shall apply to purchases and public works projects costing between $200.00 and $5,000.00: (a) Invitation for Bid. Any interested bidder may obtain an invitation for bid. The invitation for bid may be mailed to responsible bidders or recited over the telephone or in person, and shall include the following information: a general description of the things to be purchased or project, the time and place for bid opening when applicable, bid instructions, and the terms and conditions of the bid and any resulting contract. (b) Return of Bids. Only formal bids shall be submitted sealed in accordance with the instructions contained in the "Invitation for Bid" form. Informal bids shall be recorded. ORDINANCE NO. NS-1477 PAGE FOUR (c) Opening of Bids. The bids shall be opened, if sealed, and declared in public at the time and place stated on the "Invitation for Bid" only when required by Federal regulations or upon a bidder request. (d) Award of Contract. Upon examination of all bids and a determination of the lowest and best bidder, the contract shall be awarded to the successful bidder. The right to reject any or all bids is expressly reserved to the City. Sec. 2-807. Open Market Purchases. Any contract involving exenditure of public funds, even though not required to be let by competitive bidding after publication of notice, shall nevertheless be entered into only after review of such alternative sources of supply or performance as may be available in competition with one another and selection therefrom on the basis of obtaining maximum quality goods, services, or performance at minimum costs. Purchases may be made in the open market without observing the bidding requirements prescribed by the City Charter or this Article in each and every one of the following cases: (a) Purchases of services, supplies, materials, and equipment, the expenditure for which does not exceed $5,000.00. (b) Purchases of services, supplies, materials and equipment whenever it shall appear that there is only one reasonably available source, if approved in advance by the City Council. (c) Purchases of services, supplies, materials and equipment deemed by the City Council to be of urgent necessity for the preservation of life, health or property, provided such purchases are authorized by a resolution of the Council containing a declaration of the facts constituting the urgency and adopted by the affirmative vote of at least two-thirds of the members of the council. (d) Situations where solicitation of bids would for any reason be an idle act if approved in advance by the City Council. (e) Situations where no bids are received after advertising therefor. SECTION 2: That section 2-1 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 2-1. City Manager's Authority to Approve Change Orders. The city manager of the City of Santa Ana is hereby authorized to bind the City of Santa Ana on change orders ~o city contracts for materials, supplies, or equipment~ ORDINANCE NO. NS-1477 PAGE FIVE or for public works construction (as defined in Santa Ana City Charter Section 421) without previous city council approval when such change order for any one contract together with any previously approved change orders for said contract do not cumulatively amount to an increase of the city's expenditure obligation under said contract of more than five percent (5%), or the amount of five thousand dollars ($5,000.00), whichever is the lesser. ADOPTED this 16th day of April the following vote: , 1979, by AYES: COUNCILMEN: Bricken, NOES: COUNCILMEN: None Griset, Luxembourger, Markel, Serrato~ Ward~ Yamamoto ABSENT: COUNCILMEN: None ATTEST: CLE 0 APPROVED AS TO FORM: KEITH L. GOW, City Attorney MAYOR