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Ordinance No. 004 - Purchase and Sale of Supplies, Services, and EquipmentORDINANCE NO. 'T AN ORDINANCE OF THE CITY OF ROSEMEAD AMENDING THE MUNICIPAL CODE BY PROVIDING REGULATIONS AND PRO- CEDURES FCR THE PURCHASE AND SALE OF SUPPLIES, SER- VICES AND EQUIPML;NT. THE CITY COUNCIL OF THE CITY OF ROSEMEAD DOES ORDAIN AS FOLLOWS: S30TION 1: AMENDING MUNICIPAL CODE. Chapter 6 is added to Article T.T. of the Rosemead Municipal • Code, the sections of which shall read as follows: "CHAPTER 6 - PURCHASIN` SYSTU-7. Section 2600. Adoption of P•aa:'c.h.a.sing System. In order to establish efficient rrOCedl're, 'ur t.e pur- chase of supplies, services and equipment, to secure for the City supplies, services and equipment at the lowest possible cost commensurate with quality need^d, to exercise positive financial control over purchases, t.: clearly d.eflne authority for the purchasing function and to z_~sure he ouRlity of pur- chases, a purchasing system is hereby E.d.onted. Section 2601. Centralized Purchasing Depa:rtreer.., There is hereby created a centralized Purchasing Depart- ment in which is vested authority for the. Purchase of sup- plies, services and equipment. Section 2602. Purchasing Officer. There is hereby created the position of Purchasing Officer, who shall be the City Administrator. The Purchasing Officer shall be the head, and have general supervision of the Purchasing Department. The Purchasing Officer shall have authority to: (a) Purchase or contract for sulplies, services 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 Department and such other rules and reg- ulations as shall be prescribed by the City Council. • • (b) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. (c) Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City. (d) Discourage uniform bidding and endeavor to ob- tain as full and open competition as possible on all purchases. (e) Prepare and recommend to the City Council rules governing the purchase of supplies, services and equip- ment for the City. (f) Prepare and recommend to the City Council re- visions and amendments to the purchasing 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 reasonably necessary to the operation of this Chapter and other rules and regulations. (i) Supervise the inspection of all supplies, ser- vices and equipment purchased to insure conformance with specifications. (J) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which can- not be used by any agency or which have become unsuit- able for City use. • (k) Maintain a Bidders' List, Vendor's Catalog file and records needed for the efficient operation of the Purchasing Department. Section 2603. Exemptions from Centralized Purchasing. The Purchasing Officer, with approval of the City Council, may authorize in.writing any agency to purchase or contract for specified supplies, services and equipment in- dependently of the Purchasing Department; but he shall require that such purchases or contracts be made in conformity with the procedures established by this Chapter, and shall fur- ther require periodic reports from the agency on the pur- chases and contracts made under such written authorization. 2. • 0 Section 2604. Estimates of Requirements. All using agencies shall file detailed estimates of their requirements in supplies, services and equipment in such ma..ne.r., ac svcin vl.me, i'n6+ for such future periods as the PurchasinG Officer shall prescribe. Section 2605. Requisitions. Using agencies shall submit requests for supplies, services and equipment to the Purchasing Officer by standard requisition forms. Section 2606. Bidding. Purchases of supplies, services, equipment and t~:e ;saJe of personal prot;Pi~bv be by b.i.d procc:dur ti:rs..ia!.~t to Sections 260,9 awry. 2 l:. Bidd4.ng -.hall oe d~-.epF_.,Pd aJ.th onl;r when an en-:el eenc; 1 eq:;'.res thzi ai-, or::er be J).~C'.?U "th the nearest aara.:;._.ab":.t: aoa: ^c: of 7,rhen in:ro.ly?d • is less 'i-.han $100 or ..,en the ccm!nodity can be :0/-ained from only one vendor. Section 260; . ''urenase der: . Purchases cf supplies, services and equipment shall be made only by purchase order. Section i_60°. Encumbrance of Funds. Except in cases of emergency, the Purchasing Officer shall not issue any purchase order for surpljeF services or equipment unless there exists an unencumbered app'. priation in the fund account against which said purchase is to be charged. Section 2609. Formal Contract Procedure. • ExcPrt as otherw-, ee provided herein, purchases and con- tracts for supplies: services, equipment and the sale of personal property of estimated value greater th?n $2,000 shall be by written contract o!i.th the lowest or highest responsible bidder, as the case nay be, pursuant to the procedure pre- scribed herein. a Notice ::'.l;:it ri Etds, '10W-CO!I in vi b.ing bids s.h?Jl include description of ! h,:e a.r. tj.caes to be purchased or sn shall state where bid bl_.nks and specifications may be secured. and the time and place for opening bids. 3. • 0 Section 2604. Estimates of Requirements. All using agencies shall file detailed estimates of their requirements in sun .."pies, services and equipment in such mi.•: ner, at, si;cn and. for such future periods as the Purcha.i.i_b Officer shall prescribe. Section 2605. Requisitions. Using agencies shall submit requests for supplies, services and equipment to the Purchasing Officer by standar.,3 requisition forms. Section 2606. Bidding. Purchases of supplies, services, equipment and the sa]+ of personal. 7ro}:~ cr s'^.a.11 be by bJ.d pr.o(:~~du;-a _;;I:r'saxl* to Sections 2609 3:131+1 bP. w _ __th nnl.) when an ea.r. Zen . - . nearest ?t.,~1v..d is less Yt $100 or Ac:en tho ':!wri(`.dLty can. rt, 2i ed fY,o.m • only one ' r.t.,)r, Section Purc ;Iac,c- of slz_ E .l'~es, services and er,ai.pm ;:,'r shall be made only bpi purchase order. Section 260", Encumbrance of Funds. Exc:;pt in cases of emergency, the Purchasing Officer shall I_ot i.saue any purchase order for s: rpli c>, ser?d.ces or equipment unless there exists an unencum~,s:rea,, on in the fund a?count against which said purchase iti to Lc charged. Section 2609. Formal Contract Procedure. Excert other,:''.F:e ,r.ovided herein, purc?aces and con- tracts for suLL;pHies. services, equipment and the sale of personal property of estimated value. greater th•^:n 12.000 shall be by written contra~:t v!i.t: tt;e .,;west or highest responsible bidder, as the case m?.y be, pursuant to the procedure pre- scribe9. her-In- a) 4 ' oj.d s °.:1?.J'... incl,.&. . to be purchas9d (.I' 5~1 shall state where biO. blan.:.s anC s'pecificai ions r:.iay be =;ecured_. and the time and place far opening bids. 3. (1) Published Notice. Notice inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of gen- eral circulation, printed and published in the City, or if there is none, 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 solicit sealed bids from all responsible prospective suppliers whose names are on the Bidders' List or who have requested their names to be added thereto. (3) Bulletin Board. . The Purchasing Officer shall also advertise pending purchases or sales by a notice posted on a public bul- letin 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 that a successful bidder shall for- feit his bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. 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 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. (c) Bid Opening Procedure. Sealed bids shall be submit- ted to M urc asing Officer 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 pub- lic inspection during re ular business hours for a period of not less than thirty (30) calendar days after the bid opening. 4. 0 - • (d) Rejection of Bids. In its discretion, the City Council may re,jecFany and all bids presented and re- advertise for bids. (e) Award cf contracts. Contracts shall be awarded by th. CJ.*,,? (:ouncal to the lowest responsible bidder except as r,t7e,"=.Se pro•;ir?ed herein. The decision of the City Inuncil shall be final. (f) ^9e Bids. If two or more bids received are for the sa*::e total amount or unit price, quality and ser- vice being equal and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the.one it chooses or accept the low- est bid made by negotiation with the tie bidders at the time of the bid opening. (g) Performance Bonds. The City Council shall have authoriFy -to equire 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 2610. Open Market Procedure. Purchases of supplies, equipment, contractual services, and sales of personal property of an estimated value in the amount of $2,000 or less may be made by the Purchasing Officer inthe open market without observing the procedure prescribed by Section 2609, (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 responsible bidder. • (b) Notice Inviting Bids. The Purchasing Officer shall solicit bids by writ en requests 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 Pur-c aim 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 inspec- tion. Section 2611. Inspection and Testing. The Purchasing Officer shall inspect supplies and equip- ment delivered, and contractual services performed, to 5. • • determine their conformance with the specifioEtions set forth in the order or contract. The Purchasing Officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are neces- sary to determine their quality and conformance with specifi- cations. Section 2612. Surplus Supplies and Equipment. All using agencies shall submit to the Purchasing Officer at such times and in such form 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 sell all supplies and equip- ment which cannot be used by any agency or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Sections 2609 and 2610, whichever is ap- plicable." PASSED AND ADOPTED by the City Council of the City of Rosemead this day of Au ,&SZ 1959, by the following-called vote: T- AYES: COUNCILMEN: ~CCC%4~74n C~~, GUGUV~c~, ,Sfea4 , ~ ~~i4 msa yi NOES: COUNCILMEN: ABSENT: COUNCILMEN: MAYOR OF HE CITY OF ROSEMEAD ATTEST: .-,CITY CLERK OF THE CITY OF P(OSEMEAD 6.