HomeMy WebLinkAboutItem C - Ord 1667 J -�=c1
AGENDA STAFF REPORT
�`c4«FORN� I
DATE: July 1.0, 2017
TO: Honorable Mayor and City Council
THRU: Jill R. Ingram, City Manager
FROM: Robin L. Roberts, City Clerk
SUBJECT: Second Reading and Adoption of Ordinance 1667
Chapter 3:20 Purchasing System
SUMMARY OF REQUEST:
That the City Council waive further reading and adopt Ordinance No. 1667, an
Ordinance of the City Council.of the City of Seal Beach Amending Chapter 3.20
of Title 3 of the City of Seal Beach Municipal Code (Code) to update and restate
the City's comprehensive purchasing requirements.
STRATEGIC PLAN
This_item satisfies the following Seal Beach Strategic Plan Objective -Three Year
Goal: Achieve short- and long-term fiscal sustainability - Bring to the City Council
for consideration a citywide:Procurement and`Contract Administration Policy.
BACKGROUND AND ANALYSIS:
At its meeting of June 26, 2017, the City Council introduced Ordinance No. 1667
to update and restate Chapter 3.20, Purchasing System of the Seal Beach
Municipal Code. This item is to adopt Ordinance No. 1667 in compliance•with
state law requiring that ordinances be adopted at least 5 days after introduction
at a regular or adjourned regular meeting. Upon adoption and pursuant to City
Charter Section 414, the ordinance will be published within 15 days after
adoption.
ENVIRONMENTAL IMPACT:
There is no environmental impact related to this item.
LEGAL ANALYSIS:
The City Attorney has reviewed and approved as to form.
Agenda Item C
FINANCIAL IMPACT:
There is no financial impact.
RECOMMENDATION:
That the City Council waive further reading and adopt Ordinance No 1667, an
Ordinance of the City Council of the.City of Seal Beach Amending Chapter 3.20
of Title a-of the City of Seal Beach Municipal Code (Code) to update and restate
the City's comprehensive purchasing requirements.
1414011 /UBMITTED BYNOTED AND APPROVED:
�T► %dxL ! 41,1 ; Lt
Robin L. Roberts, City Clerk DR. Ingram, City anager
Attachments:
A. Proposed Ordinance 1667
Page 2
"Attachment A"
ORDINANCE NO. 1667
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH
AMENDING CHAPTER.3.20 OF TITLE 3 OF THE CODE OF THE CITY OF SEAL
BEACH TO UpDATE.AND RESTATE'THE CITY'S COMPREHENSIVE PURCHASING
REQUIREMENTS
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES ORDAIN AS FOLLOWS:
Section 1. Findings and Intent.
The Charter of the City of Seal Beach directs the City Council to establish a centralized
purchasing procedure and system for the acquisition of goods and services necessary for the
efficient operation of the City, and dthe provision of City services. It is the intent of the City
Council to•restate and update the purchasing processes and procedures of the City through the
adoption of this ordinance.
Section 2. Chapter 3.20 of the Code of the City of Seal Beach is hereby amended in its
entirety to read as follows (text to be added is underlined, text to be deleted is struck through):
"Chapter 3.20 PURCHASING SYSTEM"
3.20.005 Purchasing•System Adopted
(A) There is hereby adopted a purchasing system in order to establish efficient procedures for the
procurement of supplies, equipment and services; to exercise positive financial controlaover
purchases; to clearly define authority for the purchasing function; to conserve public funds
through the reduction of costs; and the improvement of the quality of materials, supplies and
services from local community vendors where practical and in the best interests of the city.
(B) Except as expressly provided herein, the provisions of this chapter shall not cover the
expenditure of funds for Public Works projects, which are covered by Sections 1010 and 1010.5
of the Charter of the City of Seal Beach and those provisions of California law directly.
applicable to California charter cities.
(C ) In cases where the City's use of federal, state, or other governmental sources of funds are
contingent on the use, purchasing,bidding, or contracting requirements that are different from
those imposed by this Chapter, the Purchasing Officer shall use those procedures as are
necessary, in his/her discretion, to comply with any conditions of the funding source as well as
any procedures established by this Chapter that do not conflict with, and are more restrictive
than, the other agency's requirements.
3.20:010 Purchasing Officer.
A. Position Created. There is hereby created in the city government the position of
purchasing officer. The city manager shall serve as the purchasing officer except that,with
approval of the city council, the city manager may delegate to another officer or employee some
or all of the powers and duties of the purchasing officer.
B. Powers and Duties. The purchasing officer shall have the following powers and
duties:
1. To approve the purchase of,supplies and equipment in accordance with the
procedures set forth in this chapter.
2.. To negotiate and recommend execution of contracts for the purchase of,supplies
and equipment,
3. To discourage uniform bidding and endeavor to obtain as full and open
competition as possible on all purchases.
4. To recommend to the city council rules to govern the purchase of supplies and
equipment.
5. To keep informed of current developments in the field of purchasing, prices,
market conditions and new products.
6. To maintain such forms as reasonably necessary for the implementation of this
chapter.
7. To supervise the inspection of all purchased supplies and equipment to ensure
conformance,with specifications.
8. To maintain a bidders' list, vendors' catalog file, and other records appropriate for
the efficient operation of the purchasing department.
9. To procure for the city the highest quality in supplies and contractual services at
the least reasonable expense to the city, while taking quality and fitness into account.
10. To direct the transfer of surplus or unused supplies and equipment between
departments, as.needed.
11. To sell all supplies, equipment and other property of the city which has been
declared surplus or which has become unsuitable for city use.
3.20.015 Unauthorized Purchases.
It shall be unlawful for any city officer or employee to willfully and intentionally order the
purchase of any supplies or make any contract within the purview of this Chapter in violation of
the provisions of this Chapter for the purpose of personal gain or to favor any particular vendor
or contractor. Any purchase order or contract made contrary to the provisions of this chapter
shall not be approved by any city official or officer, and the city shall not be bound thereby. It
shall be unlawful,for'any city officer or employee to intentionally segment orders and/or
contracts into smaller units to avoid complying with the requirements of this chapter.
3.20.020 Estimates'of Requirements.
The head of each department shall file with the purchasing officer detailed estimates of
the departmentds requirements in supplies and.equipment. Such filing shall be made of the time
and in the manner prescribed by the purchasing officer.
3.20.025 Encumbrance of Funds and Purchase Orders.
Except in cases of emergency, the purchasing officer shall not purchase supplies or
equipment unless there exists an approved and unencumbered appropriation in the fund account
againstwhich such purchase is to be charged.. Department requests for normal operating
supplies:and':equipment for which an approved'and unencumbered budget allocation exists in the
fund account against which the purchase is to be charged may be made by using standardized
purchase order forms. Prior to submission to the purchasing officer, each purchase order shall be
reviewed and approved by the head of the department making the request.
3.20.030 Purchases`Exempt from Bidding Requirements.
The following purchases are exempt from the bidding requirements of this chapter:
A. Purchases made during a declared emergency from the nearest available source of
supply, or as authorized in the Declaration of Emergency.
B. Purchases made in preparation for an anticipated local emergency, which requires
immediate;purchase of supplies or contractual services, in which case the purchasing officer shall
be authorized to,secure by openmarket procedure as set forth in this Chapter, at the lowest
reasonably obtainable price, any supplies or contractual services regardless of the amount of the
expenditure;. Afull report of the circumstancesof an emergency purchase shall be made by the
purchasing officer to the City Council at its next regular.meeting and shall be entered in the
minutes of',the;Council and shall be open to public inspection..
C. Purchases of a service, commodity, or equipment that can be obtained only from
one vendor due to:proprietary factors, contractual restrictions, licensing, or fitness fora particular
use In such cases, the purchasing department shall document the justification for utilizing the
sole source:purchasing method and shall obtain prior approval by the purchasing officer before
commencing:a sole source procurement process.
D. Purchases of professional services. Professional services are, by their nature,
unique and therefore not subject to competitive bidding requirements. Professional services
include, without limitation: Appraiser; Architect; Attorney; Bond Counsel; Certified Building
Inspector; Certified Plan Checker; Certified Public Accountant; Chemical Engineer; Chemist;
Chiropractor; Civil Engineer; Computer Specialist; Construction Engineer; Consulting Engineer;
Dentist; Economic Consultant; Electrical Engineer; Entertainers; Environmental Consultant;
Expert Witness;,Financial Consultant; Geologist; Graphic Designer; Health Insurance Providers
Consultant; Information Technology Consultant; Instructors; Labor Relations Consultant;
Landscape;Architect; Licensed Land Surveyor; Lighting Consultant; Lobbyist; Market
Feasibility Consultant; Media Consultant; Mechanical Engineer; Planning Consultant;Public
Relations Consultant;.Psychologist; Real Property Manager or Consultant; Records Management
Consultant; Sanitation Engineer; Soils Engineer; Structural Engineer; Traffic/Transportation
Engineer; Training'Consultant; Veterinarian; Water Quality Consultant; Website Designer or
other specialized personal and professional services determined by the Purchasing Officer to be
consistent with this definition. When the City Manager or City Council authorizes the'hiring of
professional,,serviees, as defined herein, for which standard specifications cannot be developed
due toethe nature of the service or because of national association bylaws or professional policies
prohibitingcompetitive bidding, the City Manager may authorize officers and/or employees to
negotiate for the authorized,service., Proposals shall be submitted, whenever practical, from at
least three fitms,if the expected cost of service is greater::than $10,000. However, recognizing
the uniqueness professional services and the varied qualities presented by differing firms, the
City Manager shall have the authority to determine the necessity and appropriateness of
soliciting multiple proposals. The City Manager and Department Directors are authorized to
approve;and execute professional services contracts with a total not-to-exceed cost of less than
the bidding threshold amount established pursuant to Section.3.20.035 of this Code. All
contracts for services equal to or exceeding said amount shall be approved by the City Council.
E. When the City Council finds by the vote of a majority of its members that
negotiation:shall,best serve the city due to the specialized nature of supplies, equipment, or
services, or the'time-within which if is necessary that the supplies, equipment, or services be
obtained.
F. When the City seeks to purchase or lease any land, building, or facility.
G. When the City makes payments to utility companies or franchise services (i.e.
electricity, gas, phone, and internet service, communications, solid waste, or towing).
H. Payments for insurance premiums and other liability expenses.
I. Purchases of office supplies,and event:materials (i.e. Staples, Smart and Final,
'Office Solutions) that are provided for in the approved budget.
J. Purchases of authorized travel expenses for official business.
K. Purchases of a subscription, dues, trade circular, book, or periodical.
L. Purchases of publication of a notice or advertisement in a local newspaper.
M. When it is to the City's:advantage to combine its purchases with those of another
governmental entity in order to effect economies by bidding combined requirements, and the
governmental entity actually soliciting the bids employs a bidding procedure adequate to ensure
competition among responsible bidders.
Notwithstanding the exemption from bidding contained in this section, all monetary thresholds
for the award and approval of the contract contained in this Chapter and the City Charter shall
still apply.
3.20.035 Formal Bid Procedure.
A. Requirement. Except as otherwise provided in this chapter, purchases of supplies
and equiprnenthaving;an estimated value greater than an amount established at least annually by
resolution:of the City Council pursuant to Charter Section 1010 shall be made from the lowest
responsible bidder pursuant to the procedure set forth in this section.
B. Bid Invitation Notice. The bid invitation notice shall describe the articles to be
purchased, shall indicate the time°and place for bid opening and shall state where bid blanks and
specifications may be secured.
1. Published-Notice: Bid invitation notices shall be published at least 10 days before
the opening,of bids. Notice shall be published at least once in a newspaper of general circulation,
printed and published in the city. If there is no such paper, then notice shall be given by public
posting. The purchasing officer may advertise in suitable trade publications and on suitable
internet sites.
2.. Bidders' List.The,purchasing officer shall also solicit sealed bids from all
responsible prospective vendors whose names are on the bidders' list or who have requested that
their names be added thereto.
3. Bulletin Board. The city clerk shall also advertise pending purchases by posting
the notice on a.public bulletin board at city hall.
4. Bid invitation notices shall be posted on the City's website.
C. .Bidder's Security. When deemed necessary, the purchasing officer may
prescribe bidder's,security in the bid invitation notice. The bid security shall be returned to
bidders provided, however, that a successful bidder shall forfeit its bid security upon failure to
execute the purchase contract within 10 days after mailing of the notice of award of the contract.
D. Bid Opening Procedure. The city clerk shall receive only those bids that are
sealed and identified as bids on the envelope. Bids shall be opened in public at the time and
place indicated in the bid invitation notice.
E. Bid Rejection. Inits absolute discretion, the city council may reject all'submitted
bids and direct the purchasing officer to issue a new bid invitation notice.
F. Contract Award. The city council shall award the purchase contract toithe lowest
responsible bidder. If the lowest responsible bidder fails to execute the contract within'pie
allotted time, then the city council may award the contract to the next lowest responsible bidder.
In such event, the bidder's security of the lowest responsible bidder shall be applied to,the
difference;between the low bid and the next lowest bid and any surplus shall be returned to the
lowest responsible bidder.
G. Tie'Bids. If the lowest monetary bid is submitted by multiple responsive bidders,
then the city council may award the purchase contract to'the lowest responsible bidder that it
deems;appropriate‘Alternatively, the city council may accept the lowest bid made by negotiation
with the tie bidders at the time of the bid opening.
H. Performance.Bonds. When deemed necessary, the city council may require a
performance bond as a condition to the award of a;purchase contract. If a performance bond is
required, then the form and amount of the bond shall be described in the bid invitation notice.
3.20.040 Informal Bid Procedure.
A. Requirement. Except as otherwise provided in this chapter, purchases of supplies
and equipment having an estimated value less than the amount established by the City Council
pursuant to Section 3.20.035 A.
B. Low Tier Purchases. The purchasing!officer may purchase supplies and
equipment having an estimated value up to $3,000 by soliciting a price quote from a single
vendor.
C. Middle Tier Purchases: The purchasing officer may purchase supplies,and
equipment having an estimated value in excess of$3,000 and up to $10,000 by soliciting verbal
bids from at least.3 vendors. The purchase contract shall be awarded to the vendor offering the
lowest acceptable quotation.
D. High Tier Purchases. The purchasing officer may purchase supplies and
equipment having,an estimated value in excess of$10,000 and not more than the amount
established,by resolution pursuant to Section 3.20.035.A by soliciting written bids from at least
3 vendors. The purchase contract shall be awarded to the vendor offering the lowest acceptable
quotation.
3.20.045 Inspection and Testing.
The purchasing officer shall inspect purchased supplies and equipment to determine their
conformance with the specifications set forth in the purchase contract. The purchasing officer
may:require chemical and physical tests of samples.
3.20.050 Council Authority to Waive Requirements.
A. The city council may waive the bidding requirements of this chapter and award a
contract for the purchase of supplies and equipment upon making a finding by at least a majority
of those voting that, due to the circumstances applicable to the particular purchase, the net cost to
the city will be reduced by dispensing with bidding. Such finding shall be set forth in a
resolution authorizing the waiver of the bid requirements.
B. The city council may award a contract for the purchase of supplies and equipment
to other than the lowest responsible bidder upon making a finding that, due to the circumstances
applicable to the particular purchase, the net cost to the city or the overall value to the city will
be reduced'by selection of a different vendor. Such finding shall beset forth in a resolution
authorizing the waiver of the lowest responsible bidder requirement.
3.20.055 Subdivision Prohibited
No contract,,purchase order, or open market purchase shall be intentionally subdivided into
smaller amounts ti avoid the requirements Of this Chapter, the City Charter, or applicable State
law.
3.20.060 Prohibition of Conflict of Interest.
Any purchase order or contract within the purview of this,chapter in which the Purchasing
Officer, or any officer or employee of the city is financially interested, directly or indirectly,
shall be void, except that before the execution of a purchase order or contract, the Council shall
have the authority to waive compliance with this section when it finds such action to be in the
best interests of the city and compliant with applicable state or federal law.
3.20.065 Gifts and Rebates.
The•Purchasing Officer and every officer and employee of the city are expressly prohibited from
knowingly-and willfully accepting, directly or indirectly, from any person, company, firm or
corporation any gift, reward or rebate, or anything of value whatsoever as a gratuity in:exchange
for awarding"a.purchase or contract to the donor, except where given for the use and benefit of
the city. Any violation of this section shall constitute a misdemeanor.
3.20.070 Sale of Surplus Property.
(A) Surplus personal property.
(1) When it is deemed advisable by the Purchasing Officer to dispose of any surplus
personal property belonging to the city, the sale of such property shall be made following the
principles of open competitive bidding.
(2) The Purchasing Officer.shall determine the appropriate method for the disposal of
surplus.personal property, including but not necessarily limited to open competitive formal bid,
public auction, or negotiated sale. The Purchasing Officer shall promulgate rules for the sale of
surplus personal property.
(B) Surplus real property. The sale of surplus city-owned property shall be made
pursuant to applicable state law.
3.20.075 Harmless Error or Omission to be Disregarded.
No transaction covered by this chapter, or other applicable purchasing, bidding or procurement
law, shall be deemed or construed to be void or invalid by reason of inadvertence, mistake, or
excusable neglect in failing to comply with thestrict letter of said regulations, unless after an
examination,of the entire transaction and the regulation governing the same, it shall appear that
the error or mistake complained of was prejudicial to one of the parties, and that by reason of
such error.or mistake, the party complaining sustained and suffered substantial injury, and that
such injury would not have been probable if such error or mistake had not occurred or existed, or
the specific law in question requires that the contract be voided. There shall be no presumption
that any error or omission is prejudicial, or that injury was done if an error or omission'is
shown."
Section,2. This Ordinance shall take effect thirty (30) days after adoption. The City Clerk is
directed to cause this ordinance to be published and/or posted as required by law.
PASSED; APPROVED, AND ADOPTED by the City Council of the City of Seal Beach
at a meeting thereof held on the l0°" day of March, 2017.
Sandra Massa-Lavitt, Mayor
ATTEST:
Robin L. Roberts, City Clerk
STATEOF CALIFORNIA )
COUNTY OF ORANGE } ss
CITY OF SEAL BEACH }
I, Robin Roberts, City Clerk of the City of Seal Beach, do hereby certify that the foregoing
Ordinance was introduced for first reading at a regular meeting held on June 26, 2017 and was
approved for introduction by the following vote:
AYES: Council Members: Massa-Lavitt, Varipapa,Deaton, Moore, Sustarsic
NOES: Council Members: None
ABSENT: Council Members: None
ABSTAIN: Council Members: None
and was passed, approved, and adopted by the City Council at a regular meeting held on 10th day
of July, 2017 by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSENT:Council Members:
ABSTAIN: Council Members:
and do hereby further certify that Ordinance Number 1667 has been published pursuant to the
Seal Beach City Charter and Resolution Number 2836.
Robin L. Roberts, City Clerk