Ordinance No. 296ORDINANCE NO. 296
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AMENDING THE CODE OF THE CITY OF CYPRESS CALIFORNIA,
ADDING CHAPTER 21A ENTITLED 'PURCHASING SYSTEM'
THE CITY COUNCIL OF THE CITY OF CYPRESS DOES ORDAIN AS FOLLOWS
There is hereby added to the Code of the City of Cypress California
Chapter 21A entitled 'Purchasing System to read as follows
SECTION 21A-1. ADOPTION OF PURCHASING SYSTEM.
In order to establish efficient procedures for the purchase of supplies
and equipment to secure for the City supplies and equipment at the lowest
possible cost commensurate with quality needed, to exercise positive finan-
cial control over purchases to clearly define authority for the purchasing
function and to assure the quality of purchases a purchasing system is
hereby adopted.
SECTION 21A-2. CENTRALIZED PURCHASING DIVISION
There is hereby created a centralized Purchasing Division in which is
vested authority for the purchase of supplies and equipment
SECTION 21A-3. PURCHASING OFFICER.
There is hereby created the position of Purchasing Offior He shall
be appointed by the City Manager The Purchasing Officer shall be the head
and have general supervision of the Purchasing Division. The duties of
Purchasing Officer may be combined with those of any other office or
position.
SECTION 21A-4. SAME --POWERS AND DUTIES
The Purchasing Officer shall have the authority to
A. Purchase or contract for supplies and equipment required by
any using agency in accordance with purchasing procedures
prescribed by this chapter such administrative regulations
as the Purchasing Officer shall adopt for the internal
management and operation of the Purchasing Division and such
other rules and regulations as shall be prescribed by the
City Council or City Manager
B. Negotiate and recommend execution of contracts for the
purchase of supplies and equipment
C Act to procure for the City the needed quality in supplies
and equipment at least expense to the City
D. Discourage uniform bidding and endeavor to obtain as full
and open competition as possible on all purchases
E Prepare and recommend to the City Council rules governing
the purchase of supplies and equipment for the City
F Prepare and recommend to the City Councl revisions and
amendments to thepurchasing rules
G Keep informed of current developments in the field of
purchasing, prices market conditions and new products
H Prescribe and maintain such forms as me reasonably necessary
to the operation of this chapter and other rules and regulations
I Supervise the inspection of all supplies and equipment
purchased to insure conformance with specifications
7 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 agency
or which become unsuitable for City use
Ordinance No 296
1 f1,,
R Maintain a bidders list vendor s catalog file and records
needed for the efficient operation of the Purchasing Division.
SECTION 21A-5. EXEMPTIONS FROM CENTRALIZED PURCHASING
The Purcashing Officer with approval of the City Council may authorize
in writing, any agency to purchase specified supplies and equipment independently
of the Purchasing Division, but he shall require that such purchases shall be
made in conformity with the procedures established by this chapter and shall
further require periodic reports from the agency on the purchases made under
such written authorization.
SECTION 21A-6. ESTIMATES OR REQUIREMENTS
All using agencies shall file detailed estimates of their requirements
in supplies and equipment in such manner at such time and for such future
periods as the Purchasing Officer shall prescribe
SECTION 21A-7. REQUISITIONS.
Using agencies shall submit requests for supplies and equipment to the
Purchasing Officer by standard requisition forms or by other means as may
be established by the Purchasing Rules and Regulations
SECTION 21A-8. BIDDING
Purchases and equipment shall be by bid procedures pursuant
to Sections 21A-11 and 21A-12 hereof Bidding may be dispenses with.
A. When an emergency requires that an order be placed with the
nearest available source of supply
B When the amount involved is less than $100
C. When the commoedity can he obtained from only one vendor.
D. When there is to he a contract for professional services such
as but not limited to the services of attorneys architects
or engineers or where the service contracted for deals with
public relations or promotions elections services and
related activities negotiations or acquisition of land
trash, garbage or refuse disposal or the like, insurance
bonds or any other service of a similar nature to those
listed
E When through cooperative purchasing with the state Orange
County and other public agencies the advantages of large-
scale buying may he obtained at a lower price upon the same
terms conditions and specifications
SECTION 21A-9. PURCHASE ORDERS
Purchases of supplies and equipment shall be made only by purchase
orders Except as otherwise provided herein, no purchase order shall he
issued unless the prior approval of the Purchasing Officer or his designated
representative has been obtained
SECTION 21A-10. ENCUMBRANCE OF FUNDS
Except in cases of emergency or in cases where specific authority has
been first obtained from the City Manager the Purchasing Officer shall not
issue any purchase order for supplies or equipment unless there exists an
unencumered appropriation in the fund account against which said purchase
is to charged
SECTION 21A-11. FORMAL CONTRACT PROCEDURE
Except as otherwise provided herein, purchases of supplies and equip-
ment of an estimated value greater than $2500 shall be by written contract
with the lowest responsible bidder pursuant to the procedure hereinafter
prescribed.
Ordinance No 296
A. Notice Inviting Bids
Notices inviting bids shall include a general descrip-
tion of the articles to be purchased or sold shall state
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 of the bids Notices shall be published at
least once in a tsuspaper of general circulation,
printed and published in the City or if there is non,
it shall be posted in at least three public places in
the City that have been designated by ordinance as the
places for posting public notices
(2) Bidders List The Purchasing Officer shall also solic-
it sealed bids from all responsible prospective suppli-
ers whose names are on the Bidders List or who have
made written request that their names be added thereto
(3) Bulletin Board. The Purchasing Officer shall also
advertise pending purchases by a notice posted on a
public bulletin board in the City Hall
B. Bidder's Security
When deemed necessary by the Purchasing Officer
bidder s security may be prescribed in the public notices
inviting bids Bidders shall be entitled to return of bid
security- provided however that a successful bidder shall
forfeit his bid security upon his refusal or failure to
execute the contract within ten (10) days after the notice
of award of contract has been mailed, unless in the latter
event the City is solely responsible for the delay in execut-
ing the contract. The City Council may on refusal or
failure of the successful bidder to execute the contract
award it to the next lowest responsible bidder If the City
Council awards the contract to the next lowest bidder the
amount of the lowest bidder s security shall he applied by
the City to the contract price differential between the
lowest bid and the second lowest hid and the surplus if
any shall be returned to the lowest bidder If the City
Council rejects all bids presented and re -advertises the
amount of the lowest bidder s security may be used to off-
set the cost of receiving new bids (and the surplus if any
shall be returned to the lowest bidder)
C. Bid Opening Procedure
Sealed bids shall be submitted to the Purchasing Office
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 tabulation of all bids received shall
be open for public inspection during regular business hours
for a period of not less than thirty (30) calendar days
after the bid opening
P Rejection of Bids
In its discretion the City Council may reject any and
all bids presented and re -advertise far bids pursuant to the
procedure hereinabove prescribed.
E Award of Contracts
Except as otherwise provided herein, contracts shall
be awarded by the City Council to the lowest responsible
bidder
F Tie Bids
If two or more bids received are for the same total
amount or unit price, quality and service being equal and
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105
if the public interest will not permit the delay of re -
advertising for bids the City Council may in its discretion
accept the one it chooses or accept the lowest bid made by
and after negotiation with the tie bidders at the tme of
the bid opening
f, Performance Bonds
The City Council shall have authority to requ±e a
performance bond before entering a contract in such amount
as it shall find reasonably necessary to protect the best
interests of the City If the City Council requires a
performance bond the form and amount of the bond shall be
described in the notice inviting bids
SECTION 21A-12. OPEN MARKET PROCEDURE
Purchases of supplies and equipment of an estimated value in the amount
of $2500 or less may be made by the Purchasing Officer in the open market
pursuant to the procedure hereinafter prescribed and without observing the
procedure prescirbed in Section 21A-11 hereof provided however all
bidding may be dispensed with for purchases of supplies and equipment having
a total estimated value of less than $100
A. Minimum Number of Bids
Open market purchases shall wherever possible, be
based on at least three bids and shall be awareded to the
lowest responsible bidder
B. Notice Inviting Bids
The Purchasing Officer shall solicit bids by written
request to prospective vendors by telephone and by public
notice posted on a public bulletin board in the City Hall
C. Written Bids
Sealed written bids shall be submitted to the Purchasing
Officer who shall keep a record of all open market orders and
bids for a period of one year after the submission of bids
or the placing of orders This record while so kept shall
be open to public inspection.
SECTION 21A-13. INSPECTION AND TESTING
The Purchasing Officer shall inspect supplies and equipment delivered
to determine their conformance with the specifications set forth in the
order The Purchasing Officer shall have authority to reqdre chemical
and physical tests of samples submitted with bids and samples of deliveries
which are necessary to determine their quality and conformance with speci-
fications
SECTION 21A-14. SURPLUS SUPPLIES AND EQUIPMENT
All using agencies shall submit to the Purchasing Officer at such
times and in such forms as he shall prescribe, reports showing all supplies
and equipment which are no longer used or which have become obsolete or
worn out The Purchasing Officer shall have authority to exchange for or
trade in on new supplies and equipment all supplies and equipment which
cannot be used by any agency or which have become unsuitable for City use
Such sales shall be made pursuant to Section 21A-11 or Section 21A-12
whichever is applicable
SECTION 21A-15. SEVERABILITY
If any section, subsection, subdivision sentence clause or phrase
of this ordinance is for any reason held to be unconstitutional or otherwise
invalid, such invalidity shall not affect the validity of the entire
ordinance or any of the remaining portions thereof The City Council hereby
declares that it would have passed this ordinance and each section, sub-
section, subdivision, sentence chose and phrase hereof irrespective of
the fact that any one or more sections subsections subdivisions sentences
clauses or phrases be declared unconstitutional or otherwise invalid.
nrd.nnnra Mn 9q6
106
PASSED AND ADOPTED by the City Council of the City of Cypress at a
regular meeting held on the 13th day of December 1965
et «A `11�' -r
MAYOR OF THE CI OF CYPRESS
ATTEST'
CL OF T CITY OF CYPRESS
STATE OF CALIFORNIA)
COUNTY OF ORANGE ) SS
I DARRELL ESSEX, City Clerk of the City of Cypress DO HEREBY CERTIFY
that the foregoing Ordinance was adopted at a regular meeting of the said
City Council held on the 13th day of December 1965 by the following vote
AYES 4 COUNCILMEN Gorzeman, Kanel, McCarney and Noe
NOES 0 COUNCILMEN None
ABSENT 1 COUNCILMEN Wright
Ordinance Nn. 296
0074,4974.2CCLERK OF THE CITY OF CYPRESS