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CC - Item 6C - Ordinance Amending Chapter 3.24 Adding Chapter 3.28 and Adopting Other Conforming Amendments to the Rosemead Municipal Code S E F O y ROSEMEAD CITY COUNCIL TAFF REPORT TO: THE HONORABLE MAYOR LY AND CITY COUNCIL FROM: GLORIA MOLLEDA, CITY MANAGER VA DATE: 11, 2019: JUNE SUBJECT ORDINANCE AMENDING CHAPTER 3:24 (PURCHASING SYSTEM), ADDING CHAPTER 3.28 (PUBLIC WORKS BIDDING PROCEDURE), AND ADOPTING OTHER CONFORMING AMENDMENTS, TO THE ROSEMEAD MUNICIPAL CODE SUMMARY Staff is recommending the City Council to adopt an.ordinance amending and restating Chapter . . 3.24 (Purchasing System), adding Chapter 3 28 (Public Works Bidding Procedure),and adopting other conforming amendments. STAFF RECOMMENDATION That the City Council: (1) Move to waive further reading and Introduce Ordinance No. 988; and (2) set a date for a second reading and adoption of Ordinance No. 988 ENVIRONMENTAL REVIEW This ordinance is not subject to California Environmental Quality Act (CEQA) pursuant to the following sections of the State CE A Guidelines, California Codeof Regulations, latioris, Title14, Chapter 3 (1). Section 15060(c)(2) (the activity will not result in .a direct or reasonably foreseeable indirect physical change in the environment), (2) Section 15060(c)(3) (the activity is. project as defined i not a p j n Section '15378); and 15061(b)(3) because the activity is covered by the eneral rule that CE g QA applies only to projects which have the potential for causing a significant effect on the environment. This ordinance outlines.a mechanism:for purchasing and its approval will not involve any commitment to any specific project As such, there is no possibility that this ordinance may have a significant adverse effect on the environment, and the adoption of this ordinance is exempt from CEQA DISCUSSION Over time, staff has identified portions of the Rosemead Municipal Code that may berevised or further clarified to better reflect the current practices of the City and updates to the law. Staff has identified Chapter 3.24,which contains the City's purchasing system that provide.procedures -ITEM NO AGENDA : City Council Meeting June 11;2019 Page2of2 _ for not only purchasing supplies and general services, but also public works contracts, as one such candidate for an update. The purpose of this update is to remove outdated or unused language, and streamline and clarify the City''s;procedures related to contracts for purchasing, general services, and public projects. To further this purpose, staff suggests adopting the attached ordinance, which will amend and restate Chapter 3.24 to address general purchasing and general services contracts, and create a : . new Chapter 3.28, to address public works projects. Doing so will create a clearer and more streamlined process in the RMC for such purchases or contracts This ordinance will also address an inconsistency in RMC concerning authority for designation_of the "Purchasing Officer" role that was established under Chapter 3.24, which was historically intended t!-,) the designee of the City-Manager. Prepared by: Submitted by: Rachel Richman Pearl Lieu City Attorney ':. Director of Finance Attachments: A. Ordinance No: 988 B Exhibit A (Text of Chapter 3 24) C. Exhibit B (Text of Chapter 3.28) D Redline of Changes to Existing Chapter 3.24 • O . . CIVIC PRIDE • - /NCORAORATED1 • '.. . • • • Attachment A Ordinance No 988 ORDINANCE NO. 988 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD, CALIFORNIA,AMENDING AND RESTATING ROSEMEAD MUNICIPAL CHAPTER 3.24 (PURCHASING SYSTEM),AND ADDING CHAPTER 3.28(PUBLIC PROJECT BIDDING PROCEDURES) The City Council of the City of Rosemead ordains as follows SECTION 1. 'Findings. The City Council of the City of Rosemead finds as follows' A. The City's purchasing regulations are currently codified in Chapter 3.24 of the Rosemead Municipal Code ("RMC") . B. The City wishes to clarify its purchasing procedures by separating the procedures applicable to public projects, which are governed.by the procedures outlined in the Uniform Construction Costs Accounting Act, as a new Chapter 3.28, and amending and restating its procedures for purchasing supplies, equipment, orservices in Chapter 3.24. C. • The City Council held a duly noticed public meeting on June 11, 2019, at which . time all persons interested in the proposed ordinance hadthe opportunity to address the City Council. SECTION 2. Environmental Findings. The City Council exercises its independent judgment and finds that this Ordinance is not subject to California Environmental Quality Act (CEQA) pursuant to the following sections of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3.: (1) Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); (2) Section 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significanteffect onthe environment.This ordinance outlines a mechanism for purchasing and its approval will not involve any commitment to any specific project. As such, there isno possibility ;that this ordinancemay have a significant adverse effect on the environment,and the adoption of this ordinance is exempt from CEQA: SECTION 3. Amendment and Restatement of Chapter 3.24 (Purchasing System for Non-Public Works Projects). Chapter 3.24 of the RIVIC is amended and restated in its entirety,as set forth in the attached.Exhibit A. SECTION 4. Adoption of Chapter 3.28 (Public,Project Bidding Procedures). Title 3 (Revenue and Finance) of the Rosemead Municipal'Code is amended to add Chapter 3:28, as set forth in the attached Exhibit B. SECTION.5. Amendment to Section 2.20.20.K. Section 2.20.020.K of Chapter 2:20 (Director of Finance/Treasurer) is amended as follows: 1 Ordinance 988 "K. To act as Purchasing Officer as set forth in Chapter 3.24,if so designated by the City Manager." SECTION 6. Severability. If any section, subsection,sentence, clause, or phrase of this ordinance is for any reason held to be invalid orunconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each and every section,subsection,sentence,clause,or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or. unconstitutional. SECTION 7. Publication. The City Clerk is directed to cause this ordinance to be published in the manner required by law. ADOPTED this 11th day of June, 2019. MAGARET CLARK, MAYOR ATTEST: ERICKA HERNANDEZ,CITY CLERK APPROVED AS TO FORM: RACHEL H.RICHMAN, CITY ATTORNEY } 2 Ordinance 988 S E M . �� Q • . w CIVIC PRIDE ::tom-:T 'NCO • RPORATEO•1959 • • At• tachment B . 'Exhibit A Text of Chapter 3.24.. • EXHIBIT A Chapter 3.24 - PURCHASING SYSTEM FOR NON-PUBLIC WORKS CONTRACTS 3.24.010- Definitions. Unless otherwise indicated, the following definitions shall apply to allprovisions of this chapter: "Authorized contracting party" means the city official or body provided with authority under this chapter to approve a contract or to make a purchase. "City Manager" means the City Manager or person designated by the City Manager to act on behalf of the City Manager. "Formal competitive purchasing procedure" means a procedure which meets the requirements of state and local law, including this chapter and any policies and procedures approved by the City Manager consistent with this chapter. "Negotiated contract" means a letter of agreement, vendor agreement, contract, professional services agreement, maintenance services/public works projects agreement or written documentation which details terms and conditions of the purchase. "Professional services" means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for accounting, auditing, computer hardware and software support, engineering, architectural, planning, redevelopment, financial, economic, personnel, social services, animal control, legal, management, environmental, cable television, communication and other similar professional functions which may be necessary for the operation of the city. "Rosemead vendor" means a local business enterprise whose business address at the point of sale is located within the geographical boundaries of the city and who maintains a valid license or permit to do business in the city. 3.24.015– Purchasing Methods. Value of Purchase Purchase method Method of Approval $5,000 or less Direct competitive purchasing Approval by director of procedure, unless subject to department responsible for an alternative purchasing the project, using a vendor or. procedure. letter of agreement. $5,000.01 to $30,000.00 Informal competitive. Approval by City Manager. :purchasing procedure, unless subject to an alternative purchasing procedure. $30,000.01 or More Formal competitive Approval by.the City Council purchasing procedure, unless subject to an alternative purchasing procedure. 3.24.020 Purchasing Officer—Position created-Appointment: Page 1 of 6 EXHIBIT A There is established in the office of the City Manager the role of a Purchasing Officer. The Purchasing Officer shall be the City Manager or his or her designee(s). If the City Manager designates one or more persons to act in this role, the Purchasing Officer(s) shall serve at the pleasure of the City Manager. The duties of the Purchasing Officer may be combined with those of any other officer(s) or position(s). 3.24.030 -Purchasing Officer—Powers and duties. The`Purchasing Officer, in accordance with the policies set forth in this chapter and in any written procedures approved by the City Manager that are consistent with this chapter, shall have the power to: . A. Purchase or contract for supplies, services and equipment required by the city; B. Negotiate and recommend to the City Council execution of contracts for the purchase of supplies, services and equipment; C. Prepare and implement policies and procedures governing the bidding, contracting, purchasing, storing, distribution and disposal of supplies, services and equipment for the city; D. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapter; E. Review the working details, drawings, plans and specifications for any projects or purchases requiring such review in this chapter; F. Inspect or supervise the inspection of purchased supplies, services and equipment to ensure conformity with any specifications established or required by the city; G. Transfer among departments any supplies, services and equipment not needed by One such department, but which are necessary for the operation of one or more other departments; H. Sell any,supplies and equipment not needed for public use or that may become unsuitable for their intended use; I. Develop and maintain any bidder's list, service provider's list or vendor's catalog file necessary to the operation of this chapter and any. other policies and procedures approved by the City Manager consistent with this chapter. 3.24.040 - Purchasing policies and procedures. A. The city shall secure supplies, services and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law. Notwithstanding the foregoing, the city shall secure professional services based upon demonstrated competence, professional qualifications and suitability for the project in general. The city may consider cost of professional services if the authorized contracting party determines it to be a relevant factor under the circumstances: In order to promote the economic health and development of the city, to recognize the amount of sales tax that is returned to the city as a result of the award of a purchase contract for supplies and equipment to a Rosemead vendor, to encourage local participation in the procurement process, andto exercise the Page 2 of 6 EXHIBIT A prudent use of public funds, the City Council may, by minute action, award a bid to a Rosemead vendor provided the local bid does not exceed the lowest bid by more than five percent or$10,000.00, whichever is less. B. The Purchasing Officer shall develop, for approval by the City Manager, such policies and procedures as are necessary to implement the provisions of this chapter. The policies and procedures shall be written and implemented in such a way to encourage open and competitive bidding, provide equal opportunity based on merit, make each selection process free of invidious discrimination, provide for efficient and timely acquisition of needed supplies, services and equipment, and provide effective fiscal controls. C. In purchasing, supplies, services and equipment, the city shall make use of competitive bidding, either direct, formal or informal, whenever required by law, this chapter, or any policies and procedures approved by the City Manager consistent with this chapter. D. Direct, formal or informal competitive bidding is not required if there is an alternative procedure set forth in this chapter. 3.24.050 - Bidding, purchasing and contracting. A. $5,000.00 or Less..Any purchase of $5,000.00 or less may be awarded by the director of the department responsible for the project by any-direct competitive purchasing procedure as defined herein._ B. $5,000.01 to $30,000.00. Any purchase of more than $5,000.00 and not greater than $30,000.00 may be awarded by the City Manager byany informal competitive purchasing procedure as defined herein. C. $30,000.01 or More.. Any purchase of more than $30,000.00 shall, except as otherwise provided in this chapter, beawarded by the City. Council pursuant to the formal competitive purchasing procedure set forth below. D. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, , shall review and approve all contracts of$5,000.01 or more before the contract is effective. E. Five-Year Term Limitation. No agreement or contract shall extend for a period of more than five years, including any authorized extensions. 3.24.060-Direct competitive purchasing procedure: Direct purchasing procedure shall be used for purchases between .$1,000.00 and $5,000.00, which includes contacting at least three vendors from a predetermined vendor list for informal quotes. The city is responsible for updating and maintaining a list of predetermined vendors. Once the quotes are obtained and a pricing sheet is completed, the city may use a vendor agreement or letter of agreement to complete the purchase. 3.24.070 - Informal competitive purchasing procedure. A. Uses of Informal Competitive Purchasing Procedure. This informal purchasing procedure shall be used for purchases between $5,000.01 and$30,000.00. B. Service provider/Vendor List. The department shall maintain a list of qualified service providers or vendors. Page 3 of 6 EXHIBIT A C. Distribution of Notice Inviting Informal Bids. At least three vendors or service providers shall be asked to submit informal bids, and the city shall endeavor to receive informal bids from at least three vendors or service providers. Notices inviting informal bids shall be mailed to the list of qualified service providers, vendors, and/or trade journals not less than ten (10) days before bids are due. D. Contents of Notice.Inviting Informal Bids. When soliciting informal bids, staff shall: 1. Describe to the vendor in general terms the project, service or item; 2. Advise vendors how to obtain additional information about the project; 3: State the date, time and place for the submission of bids; and 4. Include any other information required by state or local law, as determined by the City Attorney. E. Proprietary Projects or Products. If the director of the using department certifies that, to the best of his orher knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of service providers or vendors, and that no equivalent products or services are available, the notice inviting .informal bids may be sent exclusively to such vendor(s). or service provider(s). F. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director'of the using department, as well as the City Attorney: G. City's Authority. The city may reject any or all bids received,and may waive any minor irregularities in each bid received. H. Proposal Submittal. Service providers or vendors shall submit their proposals in writing. No Bids Received. If no bids are received, the authorized contracting party may award the contract by any alternative purchasing procedure. 3.24.080 - Formal competitive purchasing procedure: A. Use of Formal Competitive Purchasing Procedure. This formal purchasing procedure shall be used for purchases greater than $30,000.00. or whenever formal competitive purchasing is otherwise required by this chapter. B. Required Process. The formal competitive purchasing procedure shall comply ,with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the Public Contract Code, Government Code, Labor Code, resolutions of_ the City Council.as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to time. C. Distribution of Notice Inviting Formal Bids: The notice inviting formal bids shall substantially comply with procedures set forth in Chapter 3.28.'' D. Contents of Notice Inviting Formal Bids. At a minimum, the notice inviting formal bids shall` 1. Describe the project in general terms; 2. State how to obtain more detailed information about the project; Page 4 of 6 EXHIBIT A 3. State the date, time and place for the submission of sealed bids; and 4. Include any other information required by state or local law, as determined by the City Attorney. E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney. F. City's Authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received. G. Proposal.Submittal. Service providers or vendors shall submit their proposals in writing. H. No,Bids Received. If no bids are received, the authorized contracting party may award the contract byany alternative purchasing procedure. 3.24.090 - Using alternative purchasing procedures. For situations provided in this section, an alternative purchasing procedure which results in,a negotiated contract, force account, purchase order or any other procedure determined by the authorized contracting party to be in the best interests of the city and in compliance with the city's policies and procedures may be used. A. Emergencies. For situations determined .by the City Manager to constitute an emergency, the city may use the emergency procedures set forth in Chapter 3.28. B. Professional Services. When purchasing professional services. C. Computers. When purchasing computer software, hardware. maintenance services or software maintenance services. D. Competitive Bidding Already Completed. When the authorized contracting party determines that a competitive bid procedure has been conducted by another public agency(e.g.through CMAS or GSA) and the price to the city is equal to or better than the price to that public agency. E. State Purchase. When the purchase is made on behalf of the city by the State Department of.General Services. F. No Bids Received When no bids are received pursuant to either the informal competitive purchasing procedure or the formal competitive purchasing procedure. G. No:Competitive Market. When the authorized contracting party determines that a competitive market does not exist, such as, but not limited to, with memberships in certain- professional organizations, meetings, conventions, some forms of travel, legal advertising and when the needed supplies, services and equipment are proprietary and canonly be provided by one source.. H. . Best Interests of the city. When the City Council, on recommendation of the City Manager, determines that an alternative procedure will be in the best interests of the city and the policies set forth in this chapter. 3.24.100- Inspection and testing. Page 5 of 6 EXHIBIT A The Purchasing Officer shall inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications 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.necessary to determine their quality and conformance with specifications. 3.24.110 - Surplus supplies and equipment. All using agencies shall submit to the Purchasing.Officer at such times and in such form as he or she 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 equipment which cannot be used by anyagency or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. Page6of6 M � O S CIVICPRIDE -.ApoRATE.,0 Attachment C Exhibit B _ Text of Chapter 3.28 EXHIBIT B Chapter 3.28— PUBLIC PROJECT BIDDING PROCEDURES 3.28.010— Purpose. This chapter is enacted for the purpose of implementing procedures for contracts related to certain public projects in accordance with Public Contract Code Section 20160 et seq., including but not limited to notice and publication of the bids and the award of the contract to the lowest responsible bidder. A "public project" is as defined in Public Contract Code Section 20161. 3.28.020—Competitive bidding requirement. Competitive bidding for public works contracts, for public projects over $5,000.00, is required and will be conducted in accordance with the Public Contract Code and this chapter. 3.28.030- Bid procedure. A. Notice inviting bids. Notices inviting bids shall be advertised by the city clerk, and shall include a general description of the work to be done, state where bid forms and specifications may be secured, and the time and place for opening bids. 1. Published notice. The city clerk shall cause notices inviting bids to bepublished twice in a newspaper of general circulation at least ten days before the date of opening of the bids, or posted for five days in three public places in the city designated by the City Council, in accordance with Public Contract Code Section 20164. B. Bidder's security. 1. Application. Unless otherwise provided by the City Manager before the letting of public notice inviting bids, each bid shall be accompanied by bidder's security.. 2 Return. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute the contract within ten days after thepreparation and mailing of the contract, unless in the latter event the city is solely responsible for thedelay in executing the contract. On refusal or failure of the successful bidder to execute the contract, the contract may be awarded to the next lowest responsible bidder. In such event, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest 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 submitted to the city and shall ,be identified as "BID".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 available for public inspection. during regular business hours for a period of not less than 30 calendar days after the bid opening. Once opened, the bids shall be public records. Notwithstanding the foregoing, any bid deemed non-responsive at.the time of bid opening shall not be, kept by the city, and once deemed non-responsive, shall be returned to the bidder. Grounds for determining a bid is non- responsive include, but are not limited to, failure to provide the required bid'bond and failure to attend any mandatory walk through or pre-bid meeting. D. Rejection of bids. At its discretion, the City Council mayreject any and all bids presented and readvertise for bids pursuant to the procedure prescribed in this chapter. Page 1 of 2 EXHIBIT B E. Award of contracts. Except as otherwise provided herein, contracts shall be awarded 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 if the public interest will not permit the delay or readvertising for bids, the city, atits discretion, may accept the one it chooses. G. Performance bonds. The City Manager shall have the authority to require a performance bond ormaterials and labor bond or bonds before entering a contract in such amounts as the City Manager finds reasonably necessary to protect the best interests of the city. If the City Manager requires such bond or bonds, the form,and amount of same shall be described in the notice inviting bids. H. Insurance. All contracts for public projects shall require the contractor to furnish evidence, in a form satisfactory to the city, that the contractor has taken out and has in force liability and worker's compensation insurance in such amounts and form as may be required by the city, in addition to any other insurance required by the city's risk manager. I. Contract Retention. No contract for a public project shall provide for, authorize or permit the payment of more than 90% of the contract price before the completion of the work ' done under the contract, and acceptance thereof by the city, and the expiration of the stop notice claim period and the resolution of any such claims filed thereunder. 3.28.040— Emergencies. The City Manager is delegated the power,to declare a public emergency and take any directly related and immediate action required by'the emergency, up to a total of.$100,000.00, pursuant to 'Public Contract Code Section :22050. Emergency expenditures of more than $100,000.00 must first be approved by the City Council. Work maybe performed without the benefit of competitive purchasing, either formal or informal, only so long as necessary under Section 22050: 3:28.050 Delegation of authority to award contracts: Public works contracts $5,000.00 or less may be approved and executed at the director level without formal bidding. Publicworks contracts between $5,000.01 and $30,000:0p.may be approved and executed by the City Manager. 'A table summarizing the methods of approval and bidding requirement is provided below. Value of Public Project Method of Approval Bidding Requirement Up to.$5,000.00 Approval by director of Bidding not required: department responsible for the project, using a vendor or letter of.agreement. $5,000:01 to $30,000.00 Approval by the City' ' Bidding required. Manager. $30,000.01 or more. Approval by the City Council: Bidding required. Page 2 of 2 • S E M • • . - CIVIC 'P RIDE • 'Nc,oAf'ORA7EO • Attachment D Redline of Changes to. Existing. Chapter 3.24` _ Chapter 3.24-PURCHASING SYSTEM*- FOR NON-PUBLIC WORKS CONTRACTS 3.24.010 - Definitions. Unless:.otherwise indicated, the following definitions shallapply to all provisions of this chapter: "Act" means the Uniform Public Construction-.Cost Accounting..Act.found at Public Contract Code Section 22000 et seq. when any of the following situations exist an emergency; no competitive market; competitive: "Authorized contracting party" means the city official or body provided with authority under this chapter to approve a contract or to make a purchase. "City Manager" means the City_Manager or person designated by the City Manager to perform all or:someact on behalf of the duties prescribed inthis chapter: e•• •• •- •- - - (commencing at Section 22010): "Direct competitive purchasing procedure" or "bidding" means quotes shall be obtained and required. Contract,Code Sections 22035 and 22050. Emergency for all other purchasing purposes means a situation which makes competitive bidding, either formal or informal, impractical ,,or not in the best interests of the city. may be amended from time to time. In this light, facility shall. include any plant, building, definition. "Public project" of this section, real property, streets andhighways, or other public. work imprnvementsCity Manager. I- - - -"Formal competitive, purchasing procedure" means a procedure :.which "meets the requirements of state. and local law, including the Act, this chapter,and any policies and procedures .approved by the City Manager consistent with this chapter. The-project-shallbe . may be prepared for purchase by vendors. cervices which aro not professional services. obtained from a predetermined vendor list and the City Manager shall approve final selection "Maintenance work" shall have that meaning provided in Section 22002(d) of.the Act, as but shall not be,limited to, all:of the following:, Page 1 of 9 1. Routine, recurring, and usual work for the preservation orprotection of any publicly owned or publicly operated facility for its intended purposes; 2. Minor repainting; filling of pot holes, slurry soling, edge grading, "street 'striping, resurfacing of streets and,. highways at less than one °_inch, sign replacement, sidewalk;. repair. and /I: Sewer 'maintenance, including foaming, video taping, cleaning and manhole restoration; traffic signal; 6. Storm drain-related maintenance;. tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair, and landscape rehabilitation; 8. Maintenance of facilities, including roof repairs, heating and air conditioning repairs, and electric repairs; 10: Work performed tokeep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams,-reservoirs, power plants, and electrical transmissionlines of two hundred thirty thousand (230,000)volts and higher, • "Negotiated contract" means a letter of agreement, vendoragreement: contract, professional services agreement, maintenance services/public works projects agreement or written documentation which details termsand conditions of the purchase. "Professional`se " services"' means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for accounting, auditing, computer hardware and software support, engineering, architectural, planning, redevelopment, financial, economic; personnel, social services, 'animal control, . legal, management, environmental, cable television, communicationand:other similar professional functions which may be necessary for the operation of the city. section,may be amended from time to time. In this light, public project shall not include andrepair work involving any publicly owned, leased, or operated facility; 2. Roof replacements for publicly owned, leased or operated facilities; 11. In the case of a publicly owned utility system, "public project" shall include only the electrical transmission lines of two hundred thirty thousand (230,000)volts and higher. Page 2 of 9. Section- 3:24.020. Pursuant to Section 3.24.020, the City Manager may change his or her designation at any time: "Rosemead vendor" means a local business enterprise whose business address at the point of sale is located within the geographical boundaries of the city and who maintains a valid license or permit to do business in the city. 3.24:015-Purchasing Methods. Value of.Purchase Purchase:method Method of Approval $5,000 or less Direct competitive purchasing. Approval by-director-of procedure, unless subject to department responsible for an alternative purchasing the proiect, using a vendor or procedure. letter of agreement, $5,000.01-to$30,000.00' Informal competitive Approval by City Manager: - purchasing procedure, unless subject to an alternative. purchasing procedure. hasi q prose e $30,000.01 or. More Formal competitive Approval by the City Council purchasing procedure, unless subiect to an alternative purchasing procedure. 3:24.020 Purchasing Officer—Position created-Appointment. There is established in the office of the City Manager the role of.a PurchasingOfficer: .. The Purchasing Officer shall be the City Manager or his or her designee(s). If the City Manager. designates one or more persons to act in this role, the Purchasing Officer(s) shall serve at the pleasure of the City Manager The duties of the Purchasing Officer may combined with those of any other officer(s) or position(s). 3.24.030 - Purchasing Officer—Powers and duties. : The Purchasing Officer, in accordance with the policies set forth in this chapter and in any written procedures approved by the City Manager that are consistent with this chapter, shall have the power to: A. —Purchase or contract for supplies, services and equipment required by the city, B. Negotiate and recommend' to the City Council. execution of contracts for the purchase of supplies, services and equipment; C. Prepare and .implement policies andprocedures governing the bidding, contracting, purchasing, storing, .distribution and disposal ofsupplies, services and equipment for the city;. Page3of9. D. —Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapterand any other policies and procedures approved- by pprovedby.the City.Manager consistent with this chapter; E Review the working details, drawings, plans and specifications for any projects or purchases requiring such review in this chapter; F. Inspect or. supervise the inspection of purchased supplies, services and equipment to ensure conformity with any specifications established or required, by the city; G. Transfer among departments any supplies, services and equipment not needed by one such department, but which are necessary for the operation of one or more other departments;` H. Sell any supplies and equipment notneeded for publicuse or that may become unsuitable for their intended use; I. Develop and maintain any bidder'slist, contractor'sservice provider's list or vendor's catalog file necessary to the operation of this chapter and any other policies and procedures approvedby the City Manager consistent with this chapter: 3.24.040- Purchasing policies and procedures: A. The city shall secure supplies, services and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law. Notwithstanding the foregoing, the city shall secure professional services based upon, demonstrated competence, professional qualifications and suitability for the project in general. The city may consider cost of professional;services if the authorized contracting party determines it to be a relevant factor under the circumstances. In order to promote the economic health and development of the city, to recognize the amount of sales tax that is returned to the city as a result of the to a Rosemead vendor, . -. purchasesupplies to encourage local participation in the procurement process, and to exercise the prudent use of public funds, the City Council may, by minute action, award"a bid to a Rosemead vendor provided the local bid does not exceed the lowest bid by morethan five percent or ten thousand dollars ($110,000.00), whichever is less For purposes of this scction, "Rosemead vendor" shall mean a local business enterprise . • whose business address at the point of sale is located within the geographical boundaries of f tho city and who maintains a valid license or permit to do business in the city. B. The PurchasingOfficer shall develop,: p forapproval by the City Manager, such policies and procedures as are necessary to implement the provisions of this • chapter. The policies and procedures shallbe written and implemented in such a way toencourage open and competitive bidding, provide equal opportunity based on merit, make each selection`. process free of invidious discrimination, provide for efficient and timely acquisition of needed supplies, services and equipment, and provide effective fiscal controls. - C. —In purchasing, supplies, services and equipment, the city shall make use of competitive bidding, either direct, formal or informal, whenever required by law, Page 4 of.9 . • this chapter, or any policies and procedures approved by the City Manager consistent with this chapter. D. Direct, formal or informal competitive bidding is not required,f r i^ tam, win an "emergency" if there is _ - _- _- - - •_• . .!•e A _ an alternative procedure set forth in this chapter. With respect to emergencies involving public projects of thirty thousand dollars ($30,000.00) or more, however, this waiver of competitive bidding shall last only so long as the emergency exists in the,determination of the City Council. 3.24.050 - Bidding, purchasing and contracting. A. '. e- .-e the - _ $5,000.00} or Less. Any purchase of five thousand dollars ($$5,000.00} or less may be awarded by the director of the department responsible for the project by any direct competitive purchasing procedure as defined herein. B. e- - •e e•- `= - :: $5,001.00)000.01 to Thirty Thousand Dollars f$$30,000.00}-. Any purchase of more than ' 'e. . 'e e e - ::$5,000.00} and not greater than thirty thousand dollars ($$30,000.00} may be awarded by the City Manager by any informal competitive purchasing procedure as defined herein. C. Thirty Thousand One Dollars ($30,001.00) $30,000.01 or More. Any purchase of more thanthirty thousand dollars ($$30,000.00} shall, except as otherwise provided in this chapter or the Act, be awarded by the City Council pursuant to the formal competitive purchasing procedure set forth in Section 3.21.080.below. D. City Engineer Approval. The City Engineer shall review and approve the and.maintenance work where applicable in the areas of streets, sewer, storm drains, and traffic signals, but not necessarily for parks, .buildings, and improvements and which may bring into question the city's liability for dangerous conditions of public property. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve all contracts for public projects of five thousand dollars {$$5,000.09}01 or more before the contract is effective. Five-Year Term Limitation. No agreement or contract shall extend for a period of more than five years, including any authorized extensions. 3.24.060 -Rosemead Direct competitive purchasing procedure. _ - e -_ _- ' - -- - • • -- •- • e ' -- -• Direct purchasing procedure shall be used for purchases between one thou and dollar ($ 1,000.00} and five thousand dollars ($$5,000.00). B. , which includes contacting at least three vendors - _ _ _ .'e-from a.predetermined vendor list for informal quotes. . The -e. "•-• . • - _ - ity is responsible for updating and maintaining a list of predetermined vendors. Once the quotes are obtained and a pricing sheet is completed, the city may use a vendor agreement or letter of agreement to complete the purchase. Page5of9 3.24.070 -Rosemead-Informal tv mead-Informal competitive purchasing procedure. A. A—_Uses of Rosemead Informal Competitive Purchasing Procedure. This informal purchasing procedure shall be used for purchases between five thousand ono dollars ($$,5,001.00)000.01 and thirty thousand dollars ($$30,000.00), B. Contractor Service providerNendor List. The department shall maintain a list of qualified contractors.service providers or vendors. C. Distribution of Notice Inviting Informal Bids. At least three vendors or contractorsservice providers shall be asked to submit informal bids, and the city shall endeavor to receive informal bids from at least three vendors or contractors.service providers. Notices inviting informal bids shall be mailed to the list of qualified contractorsservice providers, vendors, and/or trade journals not less than ten (10) days before bids are due. D. Contents of Notice Inviting Informal Bids. When soliciting informal bids, staff shall: 1. Describe to the vendor in general terms the project, service or item; 2. Advise vendors how to obtain additional information about the project; 3. State the date, time and place for the submission of bids; and 4. Include any other information required by state or local law, as determined by the City Attorney. E. Proprietary Projects or Products. If the director of the using department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of contractorGservice providers or vendors, and that no equivalent products or services are available, the notice inviting informal bids may be sent exclusively to such vendor(s) or contractorservice provider(s). F. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney. G. City's Authority. The city may reject any or all bidsreceived, and may waive any minor irregularities in each bid received. H. Proposal Submittal. Contractor;Service providers or vendors shall submit their proposals in writing. I. No Bids Received. If no bids are received, the authorized contracting party may award the contract by any alternative purchasing procedure. 3.24.080 - Formal competitive purchasing procedure. A. ' Uses Use of Formal Competitive Purchasing Procedure. This formal purchasing procedure shall be used for purchases greater than thirty thousand dollars ($$30,000.00) or whenever formal competitive purchasing is otherwise required by this chapter. B. Required Process. The formal competitive purchasing procedure shall comply with all aspects of state and local law governing formal competitive bidding, Page6of9 including, but not limited to, the Public Contract Code, Government Code, Labor Code, resolutions of the City Council as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to time. C. Distribution of Notice Inviting Formal Bids. The notice inviting formal bids shall substantially comply with Section 22037 of the Act, as such section may be _•_ _ _ e _ -• _ _ __ __ _ __ _. _ _ e procedures set forth in Section 22036 of the Act at I act thirty (30) calendar days before the date of bid opening. Any other notice as may be deemed proper may also be given for any particular projectChapter 3.28. D. Contents of Notice Inviting Formal Bids. At a minimum, the notice inviting formal bids shall: 1. Describe the project in general terms; 2. State how to obtain more detailed information about the project; 3. State the date, time and place for the submission of sealed bids; and 4. —Include any other information required by state or local law, as determined by the City Attorney. E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney. F. City's Authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received. G. Proposal Submittal. ContractorsService providers or vendors shall submit their proposals in writing. H. No Bids s Received. If no bids are received, the authorized contracting party may award the contract by any alternative purchasing procedure. 3.24.090 - Using alternative purchasing procedures. For k e- '.e ' e•- --e _ -- situations provided in this section an alternative purchasing procedure which results in a negotiated contract, force account, purchase order or any other procedure determined by the authorized contracting party to be in the best interests of the city and in compliance with thecity's policies and procedures may be used. A. Emergencies. In situations determined by the City Manager to constitute an emergency for _.._ - 99,999.99 Section 22035 of the Act and Public Contract Code Section 22050. Emergency Page7of9 action at the arlicst po-siblc date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to a formal competitive purchasing procedure. that the remainder of the emergency action may be completed pursuant to an informal competitive purchasing procedure. A. Emergencies. For situations determined by the City Manager to constitute an emergency, the city may use the emergency procedures set forth in Chapter 3.28. B. Professional Services. When purchasing professional services. C. Computers. When purchasing computer software, hardware maintenance services or software maintenance services. D. Competitive Bidding Already Completed. When the authorized contracting party determines that a competitive bid procedure has been conducted by another public agency (e.g. through CMAS or GSA) and the price to the city is equal to or better than the price to that public agency. E. State Purchase. When the purchase is made on behalf of the city by the State Department of General Services. F. No Bids Received. When no bids are received pursuant to either the .public project informal competitive purchasing procedure or the .formal competitive purchasing procedure. G. No Competitive Market. When the authorized contracting party determines that a competitive market does not exist, such as, but not limited to, with memberships in certain professionalorganizations, meetings, conventions, some forms of travel, legal advertising and when the needed supplies, services and equipment are proprietary and can only be provided by one source. H. Best Interests of the city. When the City Council, on recommendation of the City Manager, determines that an alternative procedure will be in the best interests of the city and the policies set forth in this chapter. 3.24.1-20100 Inspection and testing. The Purchasing Officer shall inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications 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 necessary to 'determine their quality and conformance with specifications. 3.24.1-30110 - Surplus supplies and equipment. Page8of9 All using agencies shall submit to the Purchasing Officer at such times and in such form as he or she 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 equipment 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. - • - e _ . ;' e Page9of"9. .