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HomeMy WebLinkAboutCC Resolution 1770RESOLUTION NO. 1770 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL PROVIDING FOR RULES AND REGULATIONS FOR THE ADMINISTRATION OF THE CENTRALIZED PURCHASING SYSTEM AS ESTABLISHED IN ORDINANCE NO. 465 WHEREAS, the City Council is authorized and directed under the provisions of Ordinance No.44-5 to adopt rules and regulations for the administration of the Centralized Purchasing System created in said Ordinance. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby adopt the following rules and regulations: Section 1, Purpose The objective of these rules and regulations are to facilitate efficient and economical administration of the purchasing function of the City of Campbell, California. Section 11, Definition of Terms The following terms, whenever used in these rules, shall be construed as follows: 201. "Agency" and "Using Agency": Any department, agency, commission, bureau or other unit of the City government which derives its support wholly or in part from the City. 202. "Bidder's List": A current file of sources of supply of articles for each category of commodities repetitively purchased for City use. 203. 'Services11' Any and all services including but not limited to the following: he repair or maintenance of equipment, machinery and other City -owned or operated property; and towel and cleaning services. The term does not include services rendered by City officers or employees nor professional and other contractual services which are in their nature unique and not subject to competition. 204. "Lowest Responsible Bidder": In addition to price the "lowest responsible bidder" will be determined after the following factors have been considered: (a) The ability, capacity and skill of the bidder to perform the contract or provide the service required; (b) Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference; (c) The character, integrity, reputation, judgment, experience and efficiency of the bidder; (d) The bidders' record of performance of previous contracts or services; (e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service; (f) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service; (g) The quality, availability and adaptability of the supplies, equipment or services to the particular use required; (h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; (i) The number and scope of conditions attached to the bid. 205. "Responsible Bid": An offer, submitted by a responsible bidder to fur- nish supplies, equipment or services in conformity with the speficications, delivery terms and conditions and other requirements included in the invitation for bids. 206. "Responsible Bidder": A bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgment, skill, ability, capacity and integrity requisite and necessary to perform the contract according to its terms. 207. "Supplies and Equipment": Any and all articles, things or personal property furnished to or used by any agency. 208. "Open Market": Pertains to purchases or transactions that are executed without resort to formalized purchasing procedures. 209. "Ordinance": Ordinance No. 46S which established a Centralized Purchasing System for the City. 210. "Purchase order": A document which authorizes the delivery of specified merchandise or the rendering of certain services and the making of a charge For them. 211. "Re9ai`,itiorr'!: A written demand or request from the using agencies to the Purchasing Officer for a specified article or service. 212. "Specification ";A formulated, definite, and complete statement of what is required by the City of the Vendor, In the way of composition, construction, utility, durability, efficiency, texture and shape, form or dimension. 213. "Stari_dardizatIon": The setting up of standards by which extent,quantity, quality, value, performance of service may be judged or determined. 214. "Using Agencies!': Any and all offices and departments, boards or commis- sions, and other agencies which derive their support wholly or in part from city funds and for which the Purchasing Officer shall purchase or contract for all articles or services needed thereby. 215. "Vendor": An individual, firm, corporation or qualified representative thereof, capable of delivering materials, supplies or performing or executing the contemplated services required by the City. Section III, Requisitions and Estimates 30'. "P�oseP1: The purpose of the requisition is to Inform the Purchasing Officer, in clear• and explicit terms, the needs of the using agencies, thus enabling the Purchasing Officer to buy all goods, services and commodities used by the City or contemplated by law. Except as provided for otherwise in this resolution, the using agencies shall prepare a requisition prior to any order for the purchase or receipt of goods or services. No requisition -2- shall be broken into smaller units to evade any requirement of this resolution, except that unrelated items requested by a department or officer may be sep- arated to provide different lists to vendors dealing in different commodity classes. 302. "Who May Requisition": All requisitions or detailed estimates shall be signed by the officer, head or duly authorized representative of the department, office or agency making the requisition. 303. "When to Requisition": Requisitions shall be prepared far enough in advance of the date that the goods will be used to enable the Purchasing Officer to secure competitive prices and the vendor to make delivery. The Purchasing Officer in all instances will secure the earliest delivery practicable. Section N , Emergency Purchases While the need for occasional emergency purchases is recognized, the practice must be curtailed as much as possible by anticipating needs so that the normal purchasing procedure utilizing bidding may be used, 401. "Conditions": An emergency shall be deemed to exist if - (a) There is a great public calamity. (b) There is immediate need to prepare for national or local defense, (c) There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare and safety. (d) An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item or service, 402, "Authorization": Emergency purchases may be made by a department head or his representative only as follows: (a) During business hours he must contact the Purchasing Officer stating the reason and justification for purchases. if the nature of the material, supply or service desired is such that it must be acquired immediately or the job for which it is desired is such that the specifications or requirements can only be ascertained as the job progresses, an emergency purchase order will be issued by the Purchasing Officer as soon as possible and in no event later than the following business day. A requisition confirming the purchase must be prepared and forwared to the Purchasing Officer. (b) After business hours the department head will use his judgment as to the justification of the emergency purchase. As soon as possible and in no event later than the following business day a rea,uisition confirming the purchase must be pepared and forwarded to the Purchasing Officer. (c) The word "confirmation" must be clearly shown on all requisitions and purchase orders issued in confirmation of emergency purchases. -3- Section V, Open Market Purchases 501. "Competitive Bidding Required": All purchases of supplies, material, equipment and contractual services shall be based whenever possible on competitive bids. The Purchasing Officer shall keep a record for one year of all open market orders and the bids submitted thereon, and such records shall be open to public inspection. 502. "Limitations to Open Market Transactions": If the amount of the expendi- tures is estimated to be two thousand dollars ($2,000) or less in amount, the said order may be made in the open market; provided, however, that all such pending orders shall be audited and approved by the Controller -Auditor before issuance, and provided further that where such orders exceed five hundred dollars ($500) In amount, they shall be approved by the City Manager before execution. _ when such action is deemed necessary 503. "Rejection and Awards": The Purcha N-g O"f`f_ice"r'may--reject any and all bids or the bid for any one or more commodities or services and shall other- wise award all purchases, insofar as practicable, to the lowest responsible bidder. 5014• "Notice Inviting Bids!': The Purchasing Officer- shall solicit bids by written requests to prospective vendors and/or by telephone. 505. "Minimum Number of Bids": Open Market purchases shall, wherever possible, be based on at least three (3) bids and shall be awarded to the lowest responsible bidder. Section VI, Purchases and Sales General Requirements 601. "Specifications": The Purchasing Officer shall be responsible for the preparation, keeping and implementation of all specifications. He may consult the using agencies in the preparation of specifications or may adopt specifi- cations prepared by other purchasing jurisdictions. 60'., "Exemptions from Competitive Bidding": Purchases of supplies, services, equipment and the sale of pe-sonal property shall be by bid procedures pur- suant to this resolution. 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 tharr�111Qp.00, when the commodity can be obtained from only one vendor, when the item consists of parts needed for the repair of the City's automotive equipment, or when there is no price difference between recognized manufacturers and suppliers. 603. "Petty Cash Fund". Small supply and material purchases of $5.00 or less may be made from a petty cash Fund established In the City Clerk's office. The department head or his authorized representative shall follow one of the two fol'Iowing procedures w!iew purchasing from this fund: (a) Request on a petty cash form the exact amount needed for the proposed purchase; submit completed form to the City Clerk in return for the desired cash; return to the City Clerk the invoice of item purchased with the signature of the person who received the item purchased. -4- (b) Purchase item with out-of-pocket money; retain invoice of item and return to City Clerk with signature for reimbursement of item purchased. Advances for unanticipated travel and meeting expenses may also be made from the petty cash fund by Department Heads, A petty cash form will be completed and submitted to the City Clerk for such authorized advances, 604. "Purchase Order and Encumbrance of Funds": Purchases of supplies, services and equipment shall be made only by purchase order, except that alternate forms and procedures may be specified for the purchase of con- tracted services. Except in cases of emergency or purchases of less than ?yeo•rc; no purchase order shall be 'Issued unless there exists an unencumbered appropriation In the fund account against which said purchase is to be charged. Except for emergency purchases, no material or service shall be ordered or picked up, or received without a properly executed purchase order having first been delivered to the vendor. 605. "Local Preference": In the purchasing of supplies, materials, and equipment for the City's requirements, preference is given those vendors having stores or warehouses within the City of Campbell; price, quality, terms, delivery and service reputation being equal. 606. "Distribution": Purchases for the City are distributed or rotated among the various merchants regularly handling or stocking merchandise; price, quality, terms, delivery and service being equal. 607. "Bidders List": The Purchasing Officer shall maintain a public list of prospective bidders for each class of commodities or services for which competitive bidding is required. This list shall show the names and addresses of prospective sources of supplies and services and shall include the manufacturer of such supplies or services in all instances in which said manufacturer or producer follows the practice of direct bidding in addition to or in lieu of bidding through a local wholesaler, distributor, or representative. Section V3i, Receivino Goods 701. "Receiving Report Procedure": The Purchasing Officer shall designate a procedure on which the person receiving deliveries of goods or services shall immediately verify by actual count the items delivered. The notice of the receiving report shall be processed in accordance with established procedures in order to assure prompt payment for goods and services received and allow the Cl_y to take advantage of the best terms offered by the suppliers. 702. "Claims": The Purchasing Office shall refer all claims for shortage, bma.':ages, or other claims against either shipper or carrier in connection with any shipment to the City Manager for appropriate action. 703, "Inspection and Tests": The Purchasing Officer shall at such time and frequency as his judgment dictates conduct or require such physical, chemical or other tests as may be necessary to insure conformity to such specifications „filth respect to quality of materials and equipment. The Purchasing Officer or his representative shall be privileged at any time to test or inspect goods or services for this purpose. The Purchasing Officer shall, in any -5- Instance in which he desires, order that no goods or services be received prior to his having been notified and having conducted a test or inspection, and in such event the person receiving goods or services shall notify him personally of any deliveries attempted without such test or inspection. Section VICI, Surplus Supplies and Equlomentt 80). "Reporting": 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. At such time as a periodic physical inventory is re- quired by the City Manager, the using department shall cake a segregation of all possible salvage materials, commodities or equipment, and a report thereof shall be furnished the Purchasing Officer for the control or sale of such goods. 802. "Disposal': The Purchasing Officer shall have authority to sell all supplies and equipment which cannot be used by a department or which have be- come unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment. If the value of the surplus property to be sold Is Two -hundred dollars ($200) or less, the sale shall be approved by the City Manager. In the event the value of the property to be sold is more than Two -hundred dollars ($200), the sale shall be subject to the approval of the City Council. In the event the City Council desires to dispose of public buildings or land it shall be necessary that the procedures prescribed by State law be followed. 803. "Transfer": Before disposing of surplus supplies and equipment, the Purchasing Officer shall first canvass all other City agencies to assure the surplus items cannot be used by another agency. 804. "Custody of Salvage": The using department shall retain custody of such proposed salvage in such manner and at such place as the Purchasing Officer shall direct, until final disposition shall have been made. No using depart- ment shall in any event permit any such materials, commodities, or equipment to be loaned, destroyed, or otherwise removed from the City's custody without the prior official approval of the Purchasing Officer, in writing, with respect thereto, Section IX, Gifts and Rebates 901. The Purchasing Officer and every officer and employee of the City are expresF] y prohibited from accepting, directly or indirectly, from any person, company, firm or corporation to which any purchase order or contract is, or might be awarded, any rebate, gift, money, or anything of value whatsoever. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Campbell on the 28th day of September , 1964, by the following vote: AYES: Councilmen:Doetsch, McElroy, Rogers, Smeed, Rose NOES,, Councilmen: None ABSENT: Councilmen: None 1� � APPROVED: Charles Rose, Mayo ATTEST,_ Doro Trevethan, City Clerk -6-