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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 Ordinance No 296 105 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