HomeMy WebLinkAbout2009-05-12 - AGENDA REPORTS - MC AMEND PURCHASING (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
Jon Bischetsrieder
City Manager Approval
Item to be presented by:
May 12, 2009
L
FIRST READING OF AN ORDINANCE AMENDING THE
MUNICIPAL CODE REGARDING PURCHASING
Administrative Services
RECOMMENDED ACTION
City Council introduce and pass to second reading an ordinance entitled, "AN ORDINANCE OF
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING
CHAPTERS 3.12 and 3.14 OF THE SANTA CLARITA MUNICIPAL CODE CONCERNING
PURCHASING."
BACKGROUND
Staff periodically reviews the Municipal Code regarding Purchasing to ensure the Code reflects
public agency best practices and facilitates local economic development. As a result, a number
of changes are proposed.
As a result of Council action taken on April 28, 2009 on the 21 -Point Business Plan for Progress,
Section 3.12.205 is changed to reflect the increase in the percentage used for recognizing Santa
Clarita Businesses from 5 to 10 percent. The change to Section 3.12.140 recognizes the
advancements in technology and authorizes the posting of City business opportunities on the
City's website. The change to Sections 3.12.170 and 3.12.190 clarify the authority for the City
Purchasing Officer (City Manager) to award contracts up to fifty thousand dollars ($50,000).
The change to Section 3.12.270 eliminates redundant wording with respect to the Council's
ability to authorize exceptions to the competitive process.
Finally, changes occur in Chapter 3.14. The chapter implements the sections of the State Public
Contract Code the City adopted governing public works bidding. The chapter of the Municipal
Code has not been updated since 1995 and no longer reflects the current wording of the
Ordinance passed to
Second reading
applicable sections of the Public Contract Code. The proposed changes bring the Municipal
Code into compliance with the Public Contract Code.
TERNATIVE ACTIONS
Other actions as determined by Council.
FISCAL IMPACT
No direct fiscal impact is expected as a result of this action.
ATTACHMENTS
Ordinance
IN
ORDINANCE NO. 09 -
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA CLARITA, CALIFORNIA, AMENDING CHAPTERS 3.12 AND 3.14 OF
TITLE 3, OF THE SANTA CLARITA MUNICIPAL CODE
CONCERNING PURCHASING
THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That the Municipal Code is hereby amended at Section 3.12.010 relating
to the Adoption of Purchasing System to read as follows:
"3.12.010 Adoption of Purchasing System.
In order to establish efficient procedures for the purchase of supplies and equipment at the lowest
possible cost commensurate with quality needed, to exercise positive financial control over
purchases, to clearly define authority for the purchasing function and to assure the quality of
purchasing, a purchasing system is adopted. The procedures established in Sections 3.12.050
through 3.12.270 of this chapter do not apply for the purchase of supplies and equipment for
public works projects covered under Chapter 3.14."
SECTION 2. That the Municipal Code is hereby amended at Section 3.12.030 relating
to Purchasing Agent to read as follows:
"3.12.030 Purchasing Agent.
There is created the, position of Purchasing Agent, who shall report to the Director of
Administrative Services and/or his/her designee. The Purchasing Agent shall have the authority
to:
A. Purchase or contract for supplies and equipment required by any using agency in
accordance with purchasing procedures prescribed by this chapter, such administrative
regulations as the Purchasing Agent shall adopt for the internal management and
operation of the purchasing function and such other rules and regulations as shall be
prescribed by the City Council and/or the City Manager;
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;
D. Discourage uniform bidding, and endeavor to obtain as full and open competition as
possible on all purchases;
E. Through the Director of Administrative Services and the City Manager, prepare and
recommend to the City Council rules governing the purchase of supplies, services and
equipment for the City;
F. Prepare and recommend revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the field of purchasing, prices, market
conditions and new products;
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H. Prescribe and maintain such forms as are reasonably necessary for the operation of this
chapter and other rules and regulations;
I. Maintain a vendors' list, vendors' catalog file and records needed for the efficient
operation of the purchasing division."
SECTION 3. That the Municipal Code is hereby amended at Section 3.12.040 relating to
Purchasing Regulations to read as follows:
"3.12.040 Purchasing Regulations.
The Purchasing Agent shall be responsible for determining that the regulations and procedures in
Sections 3.12.050 through 3.12.440 330 are carried out."
SECTION 4. That the Municipal Code is hereby amended at Section 3.12.050 relating to
Exemptions from Centralized Purchasing to read as follows:
"3.12.050 Exemptions from Centralized Purchasing.
The City Manager may authorize, in writing, any department to purchase specified supplies.,
services and equipment independently of the purchasing division; but he shall require that such
purchases shall be made in conformity with the procedures established by this chapter and shall
further require periodic reports from the department on the purchases made under such written
authorization."
SECTION 5. That the Municipal Code is hereby amended at Section 3.12.070
relating to Requisitions to read as follows:
"3.12.070 Requisitions.
Using departments shall submit requests for supplies, services and equipment to the Purchasing
Agent by standard requisition form, or by other means as may be established by the purchasing
rules and regulations. Except as provided herein, no requisition form shall be processed unless
the prior approval of the Purchasing Agent or designee has been obtained."
SECTION 6. That the Municipal Code is hereby amended at Section 3.12.100
relating to Inspection and Testing to read as follows:
"3.12.100 Inspection and Testing.
The Purchasing Agent shall, in his discretion, inspect supplies, services and equipment delivered
to determine their conformance with the specifications set forth in the order. The Purchasing
Agent 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."
SECTION 7. That the Municipal Code is hereby amended at Section 3.12.140
relating to Published'Notice for Formal Bids to read as follows:
"3.12.140 Published Notice for Formal Bids.
Notices inviting formal bids shall be published at least ten (10) days prior to the date of opening
of the bids. Notices shall be published at least one twice in a newspaper of general circulation in
the City and/or published on the City's website."
SECTION 8. That the Municipal Code is hereby amended at Section 3.12.170
relating to Bidder's Security to read as follows:
"3.12.170 Bidder's Security.
Where deemed necessary by the Purchasing Agent, formal bids shall be accompanied by security,
either cash, cashier's check, certified check or surety bond, in a sum equal to ten (10) percent of
the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be
entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid
security upon his refusal or failure to execute the contract within ten (10) days after the notice of
award of contract has been mailed, unless the City is solely responsible for the delay in executing
the contract. The City Council, or Purchasing Officer (or designee) for bids of fifty thousand
dollars ($50,000) or less, may, on refusal or failure of the successful bidder to execute the
contract, award it to the next lowest responsible bidder who is willing to execute the contract, or
may reject all bids and readvertise."
SECTION 9. That the Municipal Code is hereby amended at Section 3.12.190
relating to Rejection of Formal Bids to read as follows:
"3.12.190 Reiection of Formal Bids.
In its discretion, the City Council, or Purchasing Officer (or designee) for bids of fifty thousand
dollars ($50,000) or less, may reject any and all bids presented and may cause readvertising for
bids pursuant to the procedure hereinabove prescribed. However, when incomplete bids are
received, a defect in the solicitation of bidding process is identified after the bid opening, all bids
exceed the authorized budgeted amount, or if the products or services are no longer required, the
City Mara Purchasing Officer (or designee) may authorize rejection of all bids and, if
appropriate, authorize rebidding based upon the original specifications or as they may be
modified, in accordance with procedures prescribed herein."
SECTION 10. That the Municipal Code is hereby amended at Section 3.12.205
relating to Support of Santa Clarita Businesses to read a follows:
"3.12.205 Support of Santa Clarita Businesses.
A. Should the bidder that submits the lowest responsive bid or quote and would otherwise
normally qualify to receive the bid pursuant to Sections 3.12.120, 3.12.200 and 3.12.230
of the City of Santa Clarita Municipal Code not be a Santa Clarita business as defined
herein, the lowest bid or quote submitted by a Santa Clarita business that is within we
(-5) ten 10 percent of the lowest bid or quote, whether or not that bidder is the second
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lowest bidder, may be deemed to be the lowest bidder if the bidder agrees to reduce its
bid to match the bid or quote of the lowest bidder in writing within one business day, and
providing that the Purchasing Officer, or designee, determines that said Santa Clarita
bidder is a responsible bidder submitting a bid or quote that is responsive to the City's
specifications, terms and conditions and the application of this section is appropriate.
B. If the lowest Santa Clarita bidder within five (5) ten 10 percent of the lowest bid or
quote does not elect to reduce its bid or quote to match the bid or quote of the lowest
bidder, then the next lowest Santa Clarita bidder shall be given the opportunity to match
the bid or quote of the lowest bidder as set forth above, providing that this bidder is also
within five (5) ten 10 percent of the lowest bid or quote that has been deemed
responsive.
C. To qualify as a Santa Clarita bidder, the bidder must have a physical presence within the
Santa Clarita city limits by maintaining a permanent office, factory or other facility
carried on the business records with at least one employee of the company operating out
of said facility. The Purchasing Officer, or designee, is hereby granted the authority to
finally determine if the bidder qualifies as a Santa Clarita bidder as set forth herein. The
Purchasing Officer, or designee, may take into account the permanency of the business in
Santa Clarita, and whether the business appears to be claiming to be a Santa Clarita
business solely or primarily to qualify for the contract award, and any other material
factors.
D. This support of local business policy shall only apply to supplies, material,
nonprofessional services and equipment required for the conduct of City business, except
where prohibited by state or federal law, and it shall only apply to purchases and contracts
greater than two thousand dollars ($2,000).
E. No contract awarded to a Santa Clarita business under this section shall be assigned or
subcontracted in any manner that permits more than fifty (50) percent or more of;1the
dollar value of the contract to be performed by an entity that is not a Santa Clarita
business as defined herein.
F. Solicitations for bids or quotes must include notice of this section."
SECTION 11. That the Municipal Code is hereby amended at Section 3.12.230
relating to Open Market or Quote Procedures to read a follows:
"3.12.230 Open Market or Quote Procedure.
Purchases of supplies, equipment and services (other than professional) of an estimated value in
the amount of twenty thousand dollars ($20,000) or less may be made by the Purchasing Agent in
the open market pursuant to the procedure prescribed in Sections 3.12.240 through 3.12.260 and
without observing the procedure prescribed in Sections 3.12.120 through 3.12.215; provided,
however, all biddia uotin may be dispensed with for purchases of supplies and equipment
having a total estimated value of less than two thousand dollars ($2,000). Quotes as used in this
context include any solicitation following the procedures described below including, but not
limited to, requests for quote to bid and requests for proposal of twenty thousand dollars
($20,000) or less."
SECTION 12. That the Municipal Code is hereby amended at Section 3.12.270
relating to Exceptions to Competitive Bidding Requirements to read as follows:
"3.12.270 Exceptions to Competitive Bidding Requirement.
Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures
and requirements may be dispensed with in any of the following instances:
A. When the estimated amount involved is less than two thousand dollars ($2,000);
B. When the commodity can be obtained from only one vendor;
C. The City Manager and/or his/her designee may authorize the purchase of materials,
supplies, equipment and services where an emergency is deemed to exist and it is
determined that service involving the public health, safety or welfare would be
interrupted if the normal procedure were followed. All emergency purchases, which
would otherwise require formal bidding procedures, made pursuant to this section shall
be submitted to the City Council for ratification at the next regular Council meeting after
the purchase is authorized;
D. The formal bid process is waived for the purchase of information technology goods or
services which may be acquired through the infefmal bid cluote procedures described in
Sections 3.12.230 through 3.12.260;
must be „ e by the City G,,,,neil.
E E. Any agreement involving acquisition of supplies, equipment or service entered into with
another governmental entity;
G F. Any request to waive competition for a procurement not covered by the exceptions herein
must be approved by the City Council. In the event the City Council finds that it is in the
public interest and necessity to purchase supplies, equipment or services without
compliance with the formal contract procedures set forth in this section, the City Council
may waive such procedures by declaring so in a motion or resolution."
SECTION 13. That the Municipal Code is hereby amended at Section 3.14.030
relating to Informal Bidding to read as follows:
"3.14.030 Informal Bidding.
Public works projects subject to informal bid procedures may be let to contract as follows:
A. -A.Cfl_„-,,,,,., Number- of Bids. q4 o .,.,.ard of bia shall b based an t least thfee (3) bids.
B. Nefirae hnvitiag Bids. After- the City Couneil has budgeted the pr-qjeet, the Pufehasing
Offieer- (or- designee) may solieit bids by written Fe"est to eentT-aetaFs liee Sed An.
eentfaaeter-Spursuant to Seetie i 3.14.040. The�ir'u--- --iteria for -acv elopment and
maintenanreof the -eontFac-ters- lists —sh 'tee determined by the Galifemia Unifoffn
for- the eategoi-y of work to be per-fe�ed and all eanstfuetion trade jouffials speeified-by
the -CIS" a fflailed a notiee iii`oififig ififefinal bids unless the-pr-oduet or- se rye
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A. The Purchasing Agent shall maintain a list of qualified contractors, identified accordin
to categories of work. Minimum criteria for development and maintenance of the
contractors list shall be determined by the commission.
B. All contractors on the list for the category of work being bid or all construction trade
journals specified in Section 22036, or both all contractors on the list for the category of
work being bid and all construction trade journals specified in Section 22036 shall be
mailed a notice inviting informal bids unless the product or service is proprietary,
C. All mailing of notices to contractors and construction trade journals pursuant to
subdivision (b) shall be completed not less than 10 calendar days before bids are due
D. The notice inviting informal bids shall describe the project in general terms and how to
obtain more detailed information about the project and state the time and place for the
submission of bids.
E. The award of project shall be made to the lowest responsible bidder, and the Purchasing
Officer (or designee) is authorized to award and execute the construction contract
provided the contractor has posted the required bonds and insurance.
F. If all bids received are in excess of one hundred twenty-five thousand dollars ($125,000),
the City Council may, by adoption of a resolution by a four-fifths vote award the
contract, at one hundred thirty-seven thousand five hundred dollars ($137,500) or less to
the lowest responsible bidder, if it determines the cost estimate of the public agency was
reasonable."
SECTION 14. That the Municipal Code is hereby amended at Section 3.14.040
relating to Maintenance of Contractor's List to read as follows:
"3.14.040 Maintenance of Contractors List.
Prior to November 30th4-st of each year, the Purchasing Agent shall mail written notice to all
construction trade journals designated by the CUCCAC, inviting all licensed contractors to
submit information on firms to be included on the list of qualified bidders, according to category,
for the following calendar year. The notice shall require that the contractor provide the name and
address to which a notice to contractors or proposal may be mailed, a telephone number at which
the contract may be reached, the type or category of work in which the contractor is experienced
and currently licensed to perform, together with the number and type of contractor's license or
licenses held. The Purchasing Agent shall assemble an updated contractors list to be effective
January 1 of each year, which shall include all contractors who submitted one or more valid bids
to the City during the preceding calendar year and all contractors who have properly provided the
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Purchasing Agent with the information described above. A contractor may be added to the list at
any time during the year by providing the Purchasing Officer with the information described
above."
SECTION 15. That the Municipal Code is hereby amended at Section 3.14.050
relating to Public Projects Included to read as follows:
"3.14.050 Public Proiects Included.
Public projects will be performed pursuant to the Uniform Public Construction Cost Accounting
Act and this Chapter. Public projects include the following_ FuFt e", mai to.,anee er-k may be
the.
A. RA39,-r-C'euFfifig and usual work -f6r- the preservation -vi prvtovrro
w.., e e .,,,blie1..operated foe l;ty for- its intended purposes.
a. Minor- repainting --
f Resu •f:...;ng of streets and highways .,t loss tl,.,.-, o 4wh,
D. L eape mainte eek}chiding 1 Aerxng, g, pnming, plantiag,-
r-eplar.ement of'plants and ser-v4eing of ii:Fig t;„„ and s pAde- systems.
1 . Work pe4ed to beep,operate ,1 maintain publ;ely owned water-, pto
disposal systems o „the-- publiely owned buildings and foe l;ties
A. Construction, reconstruction, erection, alteration, renovation, improvement, demolition
and repair work involving any publicly owned, leased, or operated facility.
B. Painting or repainting of any publicly owned, leased, or operated facility.
C. In the case of a publicly owned utility system, "public project" shall include only the
construction, erection, improvement, or repair of dams, reservoirs, powerplants, and
electrical transmission lines of 230,000 volts and higher.
A "facility" means any plant, building, structure, ground facility, utility system, subject to the
limitation found in paragraph (C) above, real property, streets and hi ways, or other public work
improvement."
SECTION 16. That the Municipal Code is hereby amended at Section 3.14.060
relating to Rejection of Bids to read as follows:
"3.14.060 Rejection of Bids.
The City reserves the right to reject any and all bids presented. Should the City exercise this
right, the procedures outlined in Public Contract Code 22038 will be observed. if after the
7 IF
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SECTION 17. This Ordinance shall be in full force and effect thirty (30) days from its
passage and adoption.
SECTION 18. The City Clerk shall certify to the passage of this Ordinance and shall
cause the same to be published as required by law.
PASSED, APPROVED AND ADOPTED this day of , 2009.
ATTEST:
CITY CLERK
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MAYOR
8 `0
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that
the foregoing Ordinance 09- was regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the day of, 2009. That thereafter, said
Ordinance was duly passed and adopted at a regular meeting of the City Council on the day
of , 2009, by the following vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
AND I FURTHER CERTIFY that the foregoing is the original of Ordinance and
was published in The Signal newspaper in accordance with State Law (G.C. 40806).
CITY CLERK
9
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL ORDINANCE
I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true
and correct copy of the original Ordinance 09- , adopted by the City Council of the City of
Santa Clarita, CA on , 2009, which is now on file in my office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
12009.
Sharon L. Dawson, MMC
City Clerk
By
Susan L. Caputo, CMC
Deputy City Clerk
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