HomeMy WebLinkAboutOrd 2003-2899
ORDINANCE NO. 2899
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHUIA VISTA AMENDING CHAPTER 2.56 OF THE CHUIA
VISTA MUNICIPAL CODE TO MODIFY PURCHASING
PROCEDURES
The City Council of the City of Chula Vista does hereby ordain as follows:
SECTION I: That Chapter 2.56 of the Chula Vista Municipal code is hereby amended to read as
follows:
Chapter 2oS6
PURCHASING SYSTEM
Sections:
2.56.010 Centralized Purchasing System Established.
2.56.020 Purchasing Agent - Appointment - Powers, Duties, and Authority.
2.56.030 Option to Delegate Authority for Purchases of Supplies and Equipment.
2.56.040 Requisitions or Estimates; Required Revisory Changes Permitted.
2.56.050 Required Contract Forms; City Attorney.
2.56.060 Budget, Availability of Funds Required.
2.56.070 Contracts Exceeding $100,000 - Formal Competitive Bid Procedure and
City Council Approval Required.
2.56.080 Contracts Exceeding $100,000 Competitive Bidding Process.
2.56.090 Contracts of $100,000 or Less - Open Market Procedure and Purchasing
Agent/City Manager Approval Required.
2.56.100 Emergency Purchases.
2.56.110 Exception Selection Process for Architectural, Engineering,
Environmental, Land Surveying, Legal, Construction Project
Management, and Other Professional Services.
2.56.120 Supplies, Materials, and Equipment No Longer Used - Disposition
Procedure.
2.56.130 Sale of Real Property - Procedure.
2.56.140 Cooperative Purchasing Agreements.
2.56.150 Reports to City Council.
2.56.010 Centralized Purchasing System Established.
Pursuant to Section 1010 of the City Charter, there is established a centralized purchasing
system for City departments, offices, and agencies, in order to (1) establish procedures for the
purchase of services, supplies and equipment, at the lowest possible cost commensurate with
quality needed, (2) exercise positive fmancial control over purchases, (3) clearly defme authority
for the purchasing function, and (4) to assure the quality of purchases.
2.56.020 Purchasing Agent - Appointment - Powers, Duties, and Authority.
The Director of Finance shall appoint, in accordance with Section 507 of the Charter, a
Purchasing Agent, who shall be in the unclassified service as provided in Section 500 of the City
Charter, and such deputies as may be necessary. The Purchasing Agent shall be the head of the
Purchasing Division of the Finance Department and shall conduct a centralized purchasing
system. The Purchasing Agent shall have the power, and it shall be his or her duty, to purchase
" I
Ordinance 2899
Page 2
or contract for all supplies, equipment, and services needed by any and all departments, offices,
and agencies of the City subject to the terms and conditions provided for in this chapter. The
Purchasing Agent shall have the authority to:
A. Negotiate, purchase, and obtain supplies, equipment, and contractual services
used by the City in accordance with City and state law, and such rules and regulations as
are prescribed by the Director of Finance subject to the review of the City Manager or by
the City Council;
B. Act to procure for the City the needed quality in supplies, equipment, and
contractual services, at least expense to the City;
C. Endeavor to obtain as full and open competition as possible on all purchases and
sales;
D. Prepare and recommend to the Director of Finance rules, regulations and
procedures governing the purchase of supplies, equipment, and services for the City and
amendments thereto as necessary;
E. Keep informed of current developments in the field of purchasing, prices, market
conditions, and new products, and secure for the City the benefits of research done in the
field of purchasing by other governmental jurisdictions, national technical societies, trade
associations having national recognition, and by private businesses and organizations;
F. Prescribe and maintain such standardized contracts, subject to the approval of the
City Attorney, and other rules and regulations as are reasonably necessary for the
operation of the purchasing system;
G. Prepare and adopt a standard purchasing nomenclature for City departments and
suppliers;
H. Exploit the possibilities of various cost-effective purchasing strategies, such as
buying "in bulk" and cooperative purchasing, to take full advantage of favorable pricing;
I. Recommend the transfer of surplus or unused supplies and equipment between
departments as needed and the sale of all supplies and equipment which cannot be used
by any department or which have become unsuitable for City use and the scrapping or
surveying of unsalable surplus items.
J. Take such other actions, consistent with the provisions of this chapter, all other
applicable laws, and current good purchasing practices, that are reasonable and
appropriate to effectively operate the City's centralized purchasing system.
K. Control and supervise all existing and future storerooms and warehouses of
regularly purchased City supplies and equipment.
2.56.030 Option to Delegate Authority for Purchases of Supplies and Equipment.
The Purchasing Agent may authorize a department, office, or City agency to purchase
supplies, services and equipment directly when he or she determines that direct purchasing can
improve efficiency and/or reduce costs and is in the best overall interests of the City. All direct
Ordinance 2899
Page 3
purchasing authorized by the Purchasing Agent under this Section shall be carried out in
compliance with the procedures established by this chapter and on such forms or through such
purchasing mechanisms as shall be determined by the Purchasing Agent. Direct purchases may
be effected through the use of procurement cards or other similar mechanisms.
2.56.040 Requisitions or Estimates; Required Revisory Changes Permitted.
All City departments and offices shall file with the Purchasing Agent detailed requisitions
or written estimates of their requirements for supplies, equipment, and services, in such manner,
and at such times, as the Purchasing Agent shall prescribe. The Purchasing Agent shall examine
each requisition or estimate and shall have the authority to revise it as to quantity, quality, or
estimated cost; provided, however, that a change in quality will not vary substantially from the
standards of the using department or office; and provided further, that the using department head,
or designee, is first consulted.
2.56.050 Required Contract Forms; City Attorney.
All purchase orders and contracts for purchase of supplies, equipment or services shall be
on forms prescribed or approved by the Purchasing Agent and City Attorney.
2.56.060 Budget, Availability of Funds Required.
For all purchases or contracts for services, the Purchasing Agent shall certify that (a) the
required purchase price or compensation is provided for in the budget of the using department or
has been approved by the City Council by resolution; and (b) there is to the credit of each using
department concerned a sufficient and appropriate unencumbered balance in excess of all unpaid
obligations to defray the cost of such purchase or contract.
2.56.070 Contracts Exceeding $100,000 - Formal Competitive Bid Procedure and City
Council Approval Required.
A. In General. All supplies, equipment, and services, when the estimated cost
thereof shall exceed one hundred thousand dollars ($100,000), shall be awarded by the
City Council to the lowest responsive and responsible bidder submitting the best bid in
accordance with the competitive bidding process set forth in Section 2.56.080 of this
Chapter, below.
B. Exceptions. The following purchases contain exceptions to the standard
competitive bidding requirements:
1. Public Works
Contracts for those public works, materials and services that are governed by the
purchasing requirements of Section 1009 of the Charter.
2. Professional Services
Contracts for certain professional services that are governed by Section 2.56.110
of this chapter.
3. City Council Waiver
, , I
Ordinance 2899
Page 4
Contracts for which it is determined by resolution of the City Council, that the
competitive bidding requirements as applied to that contract are impractical,
impossible, or that City interests would be materially better served by applying a
different purchasing procedure approved by the Purchasing Agent as being
consistent with good purchasing practices.
4. Single/Sole Source
A commodity or service available from only one known source as the result of
unique performance capabilities, manufacturing processes, compatibility
requirements or market conditions.
5. Emergency
Emergency purchases which shall be governed by Section 2.56.100 of this
chapter.
2.56.080 Contracts Exceeding $100,000 - Competitive Bidding Process.
The following competitive bidding and award process shall apply to contracts for
supplies, equipment and services valued in excess of $100,000:
A. Notice Inviting Bids.
When required, notices inviting bids shall include a general description of the article or
service, and shall be published by the Purchasing Agent at least once on the City's
Internet Web site, or in a newspaper of general circulation in the City, and any other
method of advertising that is determined by the Purchasing Agent to be in the City's best
interest, at least ten days prior to the bid opening date.
B. Bidder's security.
The Purchasing Agent may require a bidder's security in an amount equal to ten percent
of the bid either in cash, certified or cashier's check, or surety bond approved by the City
Attorney and the Risk Manager. In the event a bidder's security is required, no bid shall
be considered unless the required security is submitted therewith. All bidder's security is
refundable, except in the case of a successful bidder who shall forfeit this security if the
bidder fails to execute a contract within ten days after the notice of award has been
mailed or personally delivered, or otherwise fails to comply with the requirements to
complete the transaction.
C. Bid opening.
Sealed bids shall be submitted to the Purchasing Agent, who shall open them in public at
the time and place stated in the public notices. A secure, Internet-based system or other
appropriate media may be used in lieu of sealed bids opened in public, provided that the
Purchasing Agent has approved the system for accuracy, confidentiality, and reliability.
A tabulation of all bids received shall be available for public inspection in the office of
the Purchasing Agent, or on the City's Internet Web site, for a period of not less than
thirty (30) calendar days after the bid opening. The Purchasing Agent may delegate this
responsibility hereunder to responsible assistants and deputies.
Ordinance 2899
Page 5
D. Compilation of bids and recommendations.
Following the opening of formal bids, the Purchasing Agent shall compile all of the bids
and submit them to the requesting department head, together with a recommendation as
to which bid he or she considers best, taking into consideration, the amount of money bid,
compliance with specifications, and responsiveness and responsibility of the bidder. The
responsiveness of the bidder shall be determined by comparing the bid to the bid
specifications. In determining the responsibility of the bidder, the Purchasing Agent will
be guided by, but not limited to, a consideration of the following factors:
1. The experience of the City in dealing with the low bidder;
2. The experience of other governmental agencies known to the Purchasing
Agent in their previous transactions with the low bidder;
3. Knowledge of the quality and fitness of the product offered by the low
bidder, substantiated by reports of using departments within the City or
other governmental agencies;
4. Options to renew contracts for continuing purchases at the same bid price
or with reasonable fixed or capped increases, in those circumstances
where price increases are expected or have been experienced in the past;
5. Financial stability and business standing of the low bidder.
The requesting department head shall forward the compilation of bids and his or her
recommendation with respect to an award to the City Manager, who in turn, will forward
a recommendation for award to the City Council. The Purchasing Agent may reject any
or all bids, or anyone or more commodities or contractual services included in the
proposed contract if it is determined that the public interest will be served thereby.
E. Contract awarding authority.
The City Council may make an award of contract to the lowest responsive and
responsible bidder submitting the best bid in all respects.
F. Rejection of bids; Alternative Procedures.
The City Council may reject any or all bids, direct City forces to provide the required
commodity or service, authorize the readvertising of bids, or authorize the purchase of
supplies or services pursuant to the open market procedure set forth in Code Section
2.56.090.
G. Tie bids.
In accordance with Section 1011 of the Charter, in the event two or more bids are
received which are for the same total amount or unit price and in all other respects are
equal, the contract shall be awarded to a local bidder. In the event, however, that such tie
bids are all from vendors either wholly inside or all outside of the City, then the contract
shall be awarded by drawing lots in public.
H. Performance bond.
I
Ordinance 2899
Page 6
The Purchasing Agent shall have authority to require a performance bond in such amount
as he or she shall find reasonably necessary to protect the best interests of the City.
2.56.090 Contracts of $100,000 or Less - Open Market Procedure and Purchasing
Agent/City Manager Approval Required.
A. In General. Purchases of supplies, equipment, and services of an estimated value
in the amount of one hundred thousand dollars ($100,000) or less may be made by the
Purchasing Agent in the open market without observing the formal bidding procedure
prescribed in Section 2.56.080; provided, however, purchases between $50,000 and
$100,000 shall also require City Manager approval. Notwithstanding the foregoing, for
contracts in excess of $10,000, informal bidding shall be required; and, whenever
practical, be based on at least three bids.
Contracts shall be awarded to the lowest responsive and responsible bidder submitting the
best bid in all respects, except as provided below. Responsiveness and responsibility
shall be determined pursuant to the standards set forth in Section 2.56.080.D. of this
chapter. The Purchasing Agent shall keep a record of all open market orders and the bids
submitted in competition thereon, and such records shall also be open to public
inspection.
B. Exceptions: The following purchases shall be exempt from these requirements:
1. $10,000 or Less
Contracts for a commodity or service costing ten thousand dollars ($10,000) or
less, in which case the contract may be awarded by the Purchasing Agent based
upon suitability of the item and market rates in the case of a commodity, and
demonstrated competence at reasonable fees in the case of services;
2. Impractical or Impossible
When it is determined by the Purchasing Agent that the competitive bidding
requirements are impractical, impossible, or that City interests would be
materially better served by applying a different purchasing procedure;
3. Certain Section 2.56.070 Exemptions
Those purchases exempted under Section 2.56.070.B. 1, 2, 4 and 5 of this chapter.
2.56.100 Emergency Purchases.
A. By Purchasing Agent permitted when.
In case of an emergency which poses an immediate threat to public health, safety or
welfare and which requires immediate purchase of supplies, equipment, or contractual
services, the City Manager or Purchasing Agent are authorized to secure in the open
market at the lowest obtainable price any supplies, equipment, or contractual services,
regardless of the amount of the expenditure; provided however, that a full explanation of
the circumstances of such emergency shall be entered in the minutes of the Council at the
Ordinance 2899
Page 7
first available meeting following the commitment to the expenditure and shall be open to
public inspection.
B. By Using Department - Procedure.
In case of an emergency, and with the prior consent of the City Manager or Purchasing
Agent, any using department may purchase directly any supplies, equipment, or services
when the estimated cost thereof shall not exceed one hundred thousand dollars, whose
immediate procurement is essential to prevent delays in the work of the using department
which may affect the life, health, or public safety of citizens. The head of such using
department shall send to the Purchasing Agent a copy of the delivery record, together
with a full written explanation of the circumstances of the emergency, which shall be
filed by the Purchasing Agent as a permanent and public record of the purchase. The
Purchasing Agent shall, by rules and regulations, prescribe the procedures under which
such emergency purchases may be made.
2.56.110 Exception - Selection Process for Architectural, Engineering, Environmental,
Land Surveying, Legal, Construction Project Management, and Other
Professional Services.
A. In General.
1. Except as otherwise provided in this section, architectural, engineering,
environmental, land surveying, legal, construction project management, and other
professional consultant services (collectively "professional services") provided to
the City shall not be governed by the bidding requirements set forth in Sections
2.56.080 or 2.56.090, but shall be negotiated on the basis of demonstrated
competence and qualifications for the services required and at fair and reasonable
fees in accordance with the procedures set forth in this Section. Notwithstanding
the foregoing, once demonstrated competence and qualifications have been
established, expense may be considered as one factor in the selection of a
consultant hereunder.
2. Notwithstanding the above requirement, the Purchasing Agent may
require competitive bidding pursuant to the requirements of Sections 2.56.080 or
2.56.090 of this chapter, upon a finding that the professional services required are
of more of a technical nature or involve little professional judgment, and requiring
bids would be in the public interest.
3. If the estimated cost of professional services exceeds fIfty thousand dollars
($50,000), it shall be awarded by the City Council after compliance with the
procedures specified in Subsection c., below. Contracts for services for fifty
thousand dollars ($50,000) or less may be awarded pursuant to Subsection D.,
below.
B. Defm!tions. For purposes of this chapter, the following terms have the following
meanmgs:
1. "Architectural, engineering, environmental, and land surveying services"
includes those professional services of an architectural, engineering,
environmental, or land surveying nature as well as incidental services that
r, I
Ordinance 2899
Page 8
members of these professions and those in their employ may logically or
justifiably perform.
2. "Construction project management" means those services provided by a
licensed architect, registered engineer, or licensed general contractor which meet
the requirements of government Code Section 4529.5 for management and
supervision of work performed on construction projects.
3. "Environmental services" means those services performed in connection
with project development and permit processing in order to comply with federal
and state environmental impact laws and the analysis of hazardous material.
4. "Legal services" are those of a specialized legal nature as determined by
the City Attorney.
5. "Other professional services" include services which provide intellectual
products of a specialized nature unique to a given situation or requirement.
C. Selection Process for Contracts of Greater than $50,000.
1. Any department head desiring to enter into a contract for professional
consultant services whose estimated cost exceeds fifty thousand dollars ($50,000)
shall first analyze the cost effectiveness of having the proposed service
completed.
2. Public announcement of all projects of an estimated cost in excess of fifty
thousand dollars ($50,000) requiring architectural, engineering, environmental,
land surveying, construction project management, or other professional consultant
services shall be made by the City through notice to the respective professional
societies, advertisement on the City's Internet Web site, or publication in a
newspaper of general circulation, and any other method of advertising that is
determined by the Purchasing Agent to be in the City's best interest. The notice
shall invite service providers to submit letters of interest for specific projects.
3. The recommendation to City Council for the award of the contract shall be
made by a selection committee. The responsible department head, or designee,
and two or more staff members shall perform the duties of the selection
committee.
4. After reviewing all proposals submitted, the selection committee may
choose the most qualified firms for personal interviews to discuss anticipated
concepts and the relative utility of alternative methods of approach for furnishing
the required services. The selection committee shall evaluate and rank the firms
based upon criteria established in advance by the City. Cost comparisons
between service providers may also be considered as a factor. A list containing
the ranking information will be sent to the responsible department head.
5. The responsible department head shall negotiate a contract with the firm
ranked the highest by the selection committee at a price determined to be fair and
reasonable to the City. The agreement shall define the conditions of the contract
scope, work plan, schedule, costs, method of payment, duration, insurance,
indemnification and other appropriate matters.
Ordinance 2899
Page 9
- 6. If the department head is unable to negotiate a satisfactory contract with the
highest ranked firm, negotiations shall be formally terminated.
7. The department head shall then undertake negotiations with the next
highest ranked firm. This process shall continue until a satisfactory contract is
negotiated.
8. If the list of qualified firms is exhausted without a contract being
negotiated, the selection committee shall choose additional firms, and the process
shall continue until a satisfactory contract is negotiated.
D. Selection Process for Contracts of $50,000 or Less.
Purchases of professional services of an estimated value of $50,000 or less may be made
by the Purchasing Agent. Informal solicitation of proposals shall be required in
accordance with the same standards and exceptions set forth in Section 2.56.090 of this
chapter.
E. Pre-Qualification Lists
Solicitations may be made using pre-qualification lists maintained approved by the
Purchasing Agent. The Purchasing Agent shall review types of services required and
determine for which types of services pre-qualification lists would be appropriate. Pre-
qualification lists may be used in lieu of open advertisement.
F. Legal Services
In accordance with Section 503 of the City Charter, the City Attorney oversees contracts
for legal and related professional services. Whenever practical, and in consultation with
the Purchasing Agent, requests for outside attorney or professional services shall be
based on a competitive solicitation of proposals. Otherwise, justification shall be
provided based on unique qualifications or performance characteristics of the attorney or
consultant recommended. Contracts for legal and related professional services in excess
of $50,000 shall be approved by the City Council.
G. Unlawful Acts and Conflicts of Interest Prohibited.
1. In the selection and award of professional consultant contracts pursuant to
this exception, all unlawful activity, including but not limited to, rebates,
kickbacks, or other unlawful consideration is prohibited.
2. No City officer or employee shall be a member of a selection committee,
or otherwise participate in the selection process, when they have a relationship
with a person or business entity seeking a contract which would constitute a
conflict of interest under Government Code Section 87100 or under City conflict
of interest rules.
2.56.120 Supplies, Materials, and Equipment No Longer Used - Disposition
Procedure.
A. General Procedures. All using departments shall submit to the Purchasing Agent
at such times and in such form as he or she shall prescribe, reports showing stocks of all
r, I
Ordinance 2899
Page 10
supplies, materials, and equipment which are no longer used or which have become
obsolete, worn out, or scrapped. The Purchasing Agent may transfer such stock to other
departments, which have need for and can use it. The Purchasing Agent shall also have
the power to sell all supplies, materials, and equipment that have been unsuitable for
public use, or to exchange for, or trade-in the same on new supplies, materials, and
equipment.
B. Approval Required; Competitive Process. Where the value of an item, or a group
of items expected to be sold to one bidder, exceeds $100,000, such sale must be approved
by resolution of the City Council. Any such sale, exchange, or trade 0 in shall be made to
the highest responsive and responsible bidder, in accordance with the competitive bid
procedures established by the Purchasing Agent.
C. Donations. Supplies, materials, and equipment when the estimated value
involved is ten thousand dollars ($10,000) or less may be donated, or sold for less than
fair market value, to local civic or social organizations, where it is deemed by the City
Manager that such a disposition of property would best serve the City's public interests.
Such donations or discounted sale of items valued in excess of $10,000 must be approved
by resolution of the City Council.
D. Worthless Property. In the case of scrap or survey items having no estimated or
appraised value and which have not been desired by any civic or social organization, the
Purchasing Agent may dispose of such items in any manner he or she deems appropriate,
keeping full records of such disposition.
E. Special Procedures for Disposition of Library Materials. The City Librarian shall
submit to the Purchasing Agent reports showing used, damaged, or unneeded library
materials and indicating disposition thereof. The Librarian may, at his or her discretion,
donate such materials to the Friends of the Chula Vista Public Library for such book sales
as they may desire, or he or she may offer such materials to any bona fide charitable or
nonprofit institutional organizations serving primarily the interests of the City. If at any
time the Librarian chooses to dispose of such materials other than as provided herein, he
or she shall follow the general procedures set forth hereinabove.
2.56.130 Sale of Real Property - Procedure.
The Purchasing Agent, with the recommendation of the City Manager and approval of the
City Council shall have the power to sell for fair value any real property owned by the City
which has been declared by the City Council to have no present or future use for public purposes.
Notice of such sale shall be published at least once on the City's Internet Web site, or in a
newspaper of general circulation in the City, and any other method of advertising that is
determined by the Purchasing Agent to be in the City's best interest. Real property may be sold
for less than fair market value upon a determination by the City Council that such sale will be in
the public interest.
2.56.140 Cooperative Purchasing Agreements.
No provision of this chapter shall be interpreted or construed to prohibit or prevent the
City from purchasing supplies, equipment, and services by contracts, arrangements, and
agreements for cooperative purchasing programs with the State of California, the County of San
Diego, the City of San Diego, or any other public agency, school district, or water authority
Ordinance 2899
Page 11
within the United States; provided that such items are purchased through a competitive process
that the Purchasing Agent determines to be consistent with good purchasing practices.
If the contract, agreement, or arrangement exceeds one hundred thousand dollars, then
City Council approval is required.
2.56.150 Reports to City Council.
The Director of Finance shall provide the City Council with reports regarding City
purchasing practices in such form and at such intervals as the City Council may direct.
SECTION U: This ordinance shall take effect and be in full force on the thirtieth day from and
after its second reading and adoption.
Presented by Approved as to form by
l~rn ~,j~ ~~~
Ann Moore
Finane::: Director City Attorney
" I
Ordinance 2899
Page 12
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 4th day of March, 2003, by the following vote:
AYES: Councilmembers: Davis, Rindone, Salas, McCann, and Padilla
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
~Ç£~(
ATTEST:
~d-U--=3: ~
Susan Bigelow, City Cfe~k
STATE OF CALIFORNIA )
COUNfY OF SAN DIEGO )
CITY OF CHUIA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Ordinance No. 2899 had its first reading at a regular meeting held on the 18th day of February
2003 and its second reading and adoption at a regular meeting of said City Council held on the
4th day of March, 2003.
Executed this 4th day of March, 2003.
~d-t. r3:~ (1~~-/
Susan Bigelow, City Cler