Ordinance Number 416POW
ORDINANCE NO. 416
ESTABLISHING PURCHASING SYSTEM
AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO,
CALIFORNIA, ADDING CHAPTER 4 TO TITLE 3 OF THE
SAN JUAN CAPISTRANO MUNICIPAL CODE ESTABLISHING
PROCEDURE FOR THE PURCHASE OF SUPPLIES, SERVICES,
AND EQUIPMENT
THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1.
1. Adoption of Purchasing System.
2. Local Purchasing System.
3. Purchasing Officer.
4. Exemptions from Centralized Purchasing.
5. Estimates of Requirements.
6. Requisitions.
7. Bidding.
8. Purchase Orders.
9. Encumberance of Funds.
10. Formal Contract Procedure.
11. Open Market Procedure.
12. Inspection and Testing.
13. Surplus Supplies and Equipment.
14. Severability.
15. Effective Date.
16. City Clerk's Certification.
SECTION 2. Additions to Title 3.
Chapter 4 is hereby added to read as follows to Title 3
of the San Juan Capistrano Municipal Code.
"CHAPTER 4. PROCUREMENT PROCEDURES
"Article 1. General Provisions
"Section 3-4.101. Adoption of Purchasing System.
"In order to establish efficient procedures for the
purchase of supplies, services, and equipment, to secure for the
City supplies, services, and equipment at the lowest possible
cost cummensurate with quality needed, to exercise positive
financial control over purchases, to clearly define authority for
the purchasing function and to assure the quality of purchases, a
purchasing system is hereby adopted in accordance with Section
54202 of the Government Code of the State of California.
"Section 3-4.102
Local Purchasing System.
"In accordance with the provisions of Sections 54202-
54205 of the Government Code of the State of California, the
policies and procedures adopted by subsequent rules and resolutions,
have been adopted. The authority for the purchase of supplies,
services, and equipment is vested in a Purchasing Officer and the
procedures and policies herein contained as well as in supplemental
rules and resolutions shall hereafter be followed in respect to
the purchase of supplies, services, and equipment, unless the
provisions of Section 3-4.202 should apply.
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"Article 2. Delegation of Authority
"Section 3-4.201. Purchasing Officer.
"The City Manager, or his designatee shall serve as the
Purchasing Officer. He shall have authority to:
"(a) Purchase or contract for supplies, services, and
equipment required by any using department in
accordance with purchasing procedures prescribed
by this Ordinance, such administrative regulations
as the Purchasing Officer shall adopt, and such
other rules and regulations as shall be prescribed
by the City Council.
"(b) Negotiate and recomend 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) Encourage uniform bidding and endeavor to obtain
as full and open competitidn as possible on all
purchases.
"(e) Prepare and recommend to the City Council rules
governing the purchasing of supplies, services,
and equipment for the City.
"(f) Prepare and recommend to the City Council revisions
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 Ordinance and
other rules and regulations.
"(i) Supervise the inspection of all supplies, services,
and equipment purchases 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
cannot be used by any department or which have
become unsuitable for City use.
"(k) Maintain a Bidders' List, Vendors' Catalog file
and records needed for the efficient operation of
the Purchasing Division.
"Section 3-4.202
Exemptions from Centralized Purchasing.
"The Purchasing Officer, with approval of the City
Council, may authorize, in writing, any department to purchase
specified supplies, but he shall require that such purchases
shall be made in conformity with the procedures established by
this Ordinance, and the provisions of Sections 54201-54204 of the
Government Code of the State of California, and may further
require periodic reports from the department on the purchases
made under such written authorization.
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"Article 3. Purchasing Procedures
"Section 3-4.301. Estimates of Requirements.
"All using departments shall file detailed estimates of
their requirements in supplies, services, and equipment in such
manner, at such time, and for such future periods, as the p
Purchasing Officer shall prescribe.
"Section 3-4.302. Requisitions.
"Using departments shall submit requests for supplies,
services, and equipment to the Purchasing officer by standard
requisition forms.
"Section 3-4.303. Bidding.
"Purchases of supplies, services, equipment and the sale
of personal property shall be by bid procedures pursuant to
Sections 3-4.306 and 3-4.307. Bidding shall be dispensed with
only when an emergency requires that an order be placed with the
nearest available source of supply, when the amount involved is
less than $5,000 or when the commodity -can -be obtained from only
one vendor.
"Section 3-4.304. Purchase Orders.
"Purchase of supplies, services, and equipment shall be
made only by purchase order. Except as otherwise provided herein,
no purchase order shall be issued unless the prior approval of
the Purchasing Officer or his designated representative has been
obtained.
"Section 3-4.305. Encumbrance of Funds.
"Except in cases of emergency, the Purchasing Officer
shall not 'issue any purchase order for supplies, services, and
equipment unless there exists an unencumbered appropriation in
the fund account against which said purchase is to be charged.
"Section 3-4.306. Formal Contract Procedure.
"Except as otherwise provided herein, purchases and
contracts for supplies, services, and equipment, and the same of
personal property of estimated value greater than $5,000, which
do not constitute a public project as defined by Section 37901 of
the California Government Code, shall be by written contract with
the lowest responsible bidder, pursuant to the procedure
prescribed herein.
"(a) Notice Inviting Bids.
"Notices inviting bids shall include a general
description of the articles to be purchased or
sold, shall state where bid blanks and
specifications may be secured, the date, time and
place for opening of bids.
"(1) Published Notice.
"The first publication or posting of the
notice inviting bids shall be given at least
ten (10) days before the date of opening of
the bids. The notice shall be published at
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least twice, not less than five (5) days
apart, in a newspaper of general circulation,
printed and published in the City, or if
there is none, it shall be posted in at least
three (3) 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 made written request that
their names be added thereto.
(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 fifteen (15) 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 executing 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 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. If the City Council rejects all
bids presented and re -advertises, the amount of
the lowest bidder's security may be used to
offset 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 City Clerk
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 opened for public
inspection during regular business hours for a
period of not less than thirty (30) calendar days
after the bid opening.
"(d) Rejection of Bids.
In its discretion, the City Council may reject any
and all bids presented and re -advertise for bids
pursuant to the procedure herein above prescribed.
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"(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 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 time
of the bid opening.
"(g) Performance Bonds.
"The City Council shall have authority to require 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 3-4.307
Open Market Procedure.
"Purchase of supplies, equipment, contractual services,
and sales of personal property of an estimated value in the
amount of $5,000 or less may be made by the Purchasing Officer in
the open market without observing the procedure prescribed by
Section 3-4.306.
"Section 3-4.308. 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 of 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.
"Article 4. Miscellaneous Provisions
"Section 3-4.401
Surplus Supplies and Equipment.
"All using departments 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 equipment
which cannot be used by any department 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 3-4.306 and 3-4.307.
"Section 3-4.402
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, subsection,
subdivision, sentence, clause, 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."
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SECTION 3. Effective Date.
This Ordinance shall take effect and be in force thirty
(30) days after date of passage.
SECTION 4. City Clerk's Certification.
The City Clerk shall certify to the adoption of this
Ordinance and cause same to be posted in the duly designated
posting places within the City of San Juan Capistrano within
fifteen (15) days after its passage.
PASSED, APPROVED AND ADOPTED this 3rd day of
February 1 1981 , by the following vote, to wit:
AYES: Councilmen Friess, Schwartze, Bland,
Buchheim and Mayor Hausdorfer
NOES: None
ABSENT: N^^�
ATTEST:
CITY C K
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF SAN JUAN CAPISTRANO )
I, MARY ANN HANOVER, City Clerk of the City of San Juan
Capistrano, California, DO HEREBY CERTIFY that the foregoing is a
true and correct copy of Ordinance No. 416 , which was
introduced at a meeting of the City Council of the City of San Juan
Capistrano, California, held on January 20 F 1981 , and adopted at
a meeting held on February 3 r 1981 .
(SEAL)
MARY ANN Hili OVER, CITY CLERK
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