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CC Ordinance 2011 ORDINANCE NO. 2011 BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING CHAPTER 3.20 OF THE CAMPBELL MUNICIPAL CODE - PURCHASING PROCEDURES The City Council of the City of Campbell does ordain as follows: SECTION ONE: That Chapter 3.20, Sections 3.20.010, 3.20.20, 3.20.50 and 3.20.80 of the Campbell Municipal Code are hereby amended as set forth in Exhibit A, attached hereto. SECTION TWO: That Chapter 3.20, Section 3.20.81 be adopted as set forth in Exhibit B, attached hereto. SECTION THREE: This Ordinance shall become effective thirty days following its passage and adoption and shall be published once within fifteen days upon passage and adoption in the Campbell Express, a newspaper of general circulation in the City of Campbell, County of Santa Clara. PASSED AND ADOPTED this following roll call vote: bt:h day of November ,2001, by the AYES: Councilmembers: Fur~aoo: Kennedy, Burr, Watson, Dean NOES: Councilmembers: None ABSENT: Councilmembers: None ATTEST: ~~ Anne Bybee, City Clerk EXHIBIT A 3.20.010 Adoption of purchasing system. In order to establish efficient procedures for the purchase, leasing and disposition of supplies, services and equipment, to secure for the city supplies, service and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, leases and dispositions, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. 3.20.020 Purchasing officer. The purchasing officer shall be the city manager or some city employee(s) delegated by the city manager. The duties of purchasing officer may be combined with those of any other office or position( s). The purchasing office~ shall have authority to: (1) Purchase or provide for the purchase or lease of all materials, services, supplies and equipment for the use of all departments, commissions and board comprising the city government, in accordance with the provisions of this chapter, and such administrative rules and regulations as shall be prescribed by the city councilor city manager; (2) Recommend execution of contracts for the purchase or lease of supplies, services and equipment; (3) Act to procure the needed quality in supplies, services and equipment at least expense to city; (4) Keep informed of current developments in the field of purchasing, prices, market conditions, services and new products; (5) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations; (6) Supervise the inspection of all supplies, services and equipment purchased or leased to ~nsure conformance and regulations; (7) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale, donation or disposal of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use; (8) Maintain a bidder's list, vendor's catalogue file and records needed for the efficient operation of the purchasing office. 3.20.050 Formal contract procedure. Except as otherwise provided in this chapter, purchases and contract for supplies, services and equipment of estimated fair market value greater than twenty-five thousand dollars shall be written contract with the lowest responsible bidder pursuant to the procedure prescribed herein as follows: (1) Approval of Specifications. Specifications shall be approved by the city council, the original of which shall be filed in the office of the city clerk. (2) Notice Inviting Bids. The notice inviting bids shall be advertised upon the authority of the city council and shall include a general description of the articles to be purchased or services to be performed, shall state where bid blanks and specifications may be secured, form and amount of performance bond, if required, and the time and place for opening bids: (A) Published Notice. Notice inviting bids shall be published one time in a newspaper of general circulation in the city. (B) Bidder's List. The requesting department shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list or who have requested their names to be added thereto. (C) Bl:dletin Board. The requesting department shall also advertise pending PlMchases by a notice pm:ted on a pl:lblic bl::llletin board in the city hall. (3) Bidder's Security. The notice for invitation for bids shall prescribe an amount of money to accompany the bid proposal, which is required as the bidder's security. Bidder's shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the award of contract has been mailed, unless the city is responsible for the delay. 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 difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (4) 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 notice. The opened bids shall be available at all times for public inspection from the time they are opened until the award has been made by the city council. (5) Tabulation of Bids. The requesting department shall tabulate all bids received and the city manager shall recommend to the city council, which, in his opinion, is the best and lowest bid. (6) Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter. (7) Rejection of Bids. In its description, the city council may reject any and all bids presented. The city council may then readvertise the bids or authorize the city manager to proceed with the purchase of the materials, services or equipment by negotiation in the open market subject to final approval of purchase by city council. (8) Tie Bids. If two or more bids received are for the same total amount or unit price, quality or service being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the meeting at which the award of the bid is to be made. (9) 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. 3.20.080 Sale of obsolete personal property. Personal property which is outmoded, obsolete, no longer usable for the public purpose intended, in a state of disrepair requiring serviceable costs in excess of its salvage value, in need of replacement to maintain a reasonable standard of public service, or of no benefit or surplus to the needs of the city, may be sold at public auction. When sales of city personal property involve a book value or consideration of ten thousand dollars or less per item, the city manager or his or her designee may approve them. All sales involving a book value or consideration of more than ten thousand dollars per item must be approved by the city council. The police department shall sell worn Old, scrap or obsolete personal property of all d0partmoots at its regularly scheduled auctions. If the book value of the property to be sold is of a yalue of two hundred dollars or less, the sale shall be approved by the city manager. In the event the book value ofthe prop8rty to be sold is more than two hundred dollars, the sale shall be subject to the approval of the city council. A list of city property which, is sold or traded, including the cash received or the trade-in value allowed, shall be provided to the finance department for equipment inventory/audit purposes. EXHIBIT B 3.20.081 Disposal of obsolete personal property or transfer for public purposes. Personal property which is outmoded, obsolete, no longer usable for the public purpose intended, in a state of disrepair requiring serviceable costs in excess of its salvage value, in need of replacement to maintain a reasonable standard of public service, or of no benefit or surplus to the needs of the city, may be disposed of, or may be transferred to another public or government entity needing such personal property at a sale price less than its estimated salvage value, or for no sale price by authority of the city manager or his or her designee if each individual item is not in excess of a book value of two thousand five hundred dollars. All disposals involving a book value or consideration of more than two thousand five hundred dollars per item must be approved by the city council.