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ORDINANCE NO. 1080 AN ORDINANCE OF THE CITY OF COLTON PROVIDING FOR. THE PURCHASE AND SALE OF SUP- PLIES, SERVICES AND EQUIP- MENT. THE CITY COUNCIL OF THE CITY OF COLTON DOES ORDAIN AS FOL- LOWS: SECTION 1. ADOPTION OF PUR- CHASING SYSTEM. In order to estab- lish efficient procedures for the pur- chase of supplies, services and equip- ment, to secure for the City supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly de- fine authority for the purchasing func- tion and to assure the quality of pur- chases, a purchasing system is hereby adopted. SECTION 2. PURCHASING OFFICER. There is hereby created the position of Purchasing Agent. He shall be assigned such duties by the Finance Director as the Director may deem in the best interests of the City. SECTIONS. EXEMPTIONS FROM CENTRALIZED PURCHASING. The City Manager, with approval of the City Council, may authorize in writing any agency to purchase or contract for specified supplies, services and equip- ment independently of the Purchasing Department; but he shall require that such purchases or contracts be made in conformity with the procedures established by this ordinance and shall further require periodic reports from the agency on the purchases and con- tracts made under such written authori- zation. SECTION 4. ESTIMATES OF RE- QUIREMENTS. All using agencies shall file detailed estimates of their require- ments in supplies, services and equip- ment in such manner, at such time, and for such future periods as the City Manager shall prescribe. SECTION 5. REQUISITIONS. Using agencies shall submit requests for sup- plies, services and equipment to the Purchasing Agent by standard requi- sition forms. SECTION 6. BIDDING. Purchases of supplies, services, equipment and the sale of personal property shall be by procedures pursuant to Sections 10 and 11. Bids or quotations 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 $100.00, or when the commodity can be obtained from only one vendor. SECTION 7. PURCHASE ORDERS. Purchases of supplies, services and equipment shall be made only by pur- chase order. SECTION 8. ENCUMBRANCE OF FUNDS. Except in cases of emergency the Purchasing Agent shall not issue any purchase order for supplies, ser- vices or equipment unless there exists an unencumbered appropriation in the account against which said purchase Is to be charged. SECTION 9. FORMAL CONTRACT PROCEDURE. Except as otherwise pro- vided herein, purchases and contracts for supplies, services, equipment and the sale of personal property of esti- mated value greater than $2,500.00 shall be by written contract with the lowest and best bidder, pursuant to the pro- cedure prescribed herein: (a) Notice Inviting Bids. Notices in- viting bids shall include a general des- cription of the articles to be purchased or sold, shall state where bid blanks and specifications may be securedand the time and place for opening bids. (1) Published Notice. Notice Invit- ing bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once 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 public places In the City that have been desig- nated by ordinance as the places for postingpublic notices. (2) Bidders' List. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the Bidders List or who have requested their names to be added thereto or whom he knows to be responsible suppliers in the City. (b) Bidders Security. When deemed necessary by the City Manager, bidders security may be prescribed in the pub- lic notices inviting bids. Bidders 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 (10) days after the notice of 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 and best bidder. If the City Council awards the contract to the next lowest and best bidder, the amount of the lowest bidder's security shall be ap- plied 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. (c) Bid Opening Procedure. Sealed bids shall be submitted to the Pur- chasing Agent 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 tabula- tion of all bids received shall be open 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. (e) Award of Contracts. Contracts shall be awarded by the City Council to the lowest and best bidder except as otherwise provided herein. (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 accept the one it chooses or accept the lowest bid made by 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 10. OPEN MARKET PROCE- DURE. Purchases of supplies, equip- ment, contractual services and sales of personal property of an estimated value in the amount of $2,500.00 or less may be made by the Purchasing Agent in the open market without observing the procedure prescribed by Section 9. (a) Minimum Number of Bids. Open market purchases shall wherever pos- sible, be based on at least three bids, and shall be awarded to the lowest and best bidder. (b) Notice Inviting Bids. The Pur- chasing Agent shall solicit bids by writ- ten requests to prospective vendors or by telephone. (c) Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who shall keep a record of al) open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to the public inspection. SECTION 11. INSPECTION AND TESTING. The Purchasing Agent shall inspect supplies and equipment deliver- ed, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. 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 de- termine their quality and conformance with specifications. SECTION 12. SURPLUS SUPPLIES AND EQUIPMENT. Ali using agencies shall submit to the Purchasing Agent, 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 Agent shall have authority to sell all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equip- ment. Such sales shall be made pur- suant to Section 9 or 10, whichever is applicable. SECTION 13. SEVERABILITY. If any section, subsection, subdivision, sen- tence, clause or phrase of this ordin- ance is for any reason held to be un- constitutional or otherwise invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council here- by declares that it would have passed this ordinance, and each section sub- section, subdivision, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses or phrases be declared uncon- stitutional. SECTION 14. EFFECTIVE DATE. This Ordinance shall be in force and effect on and after the 3rd day of February, 1961. SECTION 15. PUBLICATION OF ORDINANCE. The City Clerk shall cer- tify to the passage of this ordinance and cause the same to be published in the Colton Courier a newspaper of general circulation within the City of Colton. PASSED, ADOPTED AND APPROVED this 3rd day of January, 1961. MELLVINE FUCHS Mayor ATTEST: ELIZABETH DAVIS City Clerk I HEREBY CERTIFY that the fore- going ordinance was passed by the City Council of the City of Colton at a regular meeting thereof held on the 3rd day of January, 1961 by the follow- ing vote, to -wit: AYES: Councilmen Fuchs, Coltrin, Miller, Rimbaugh, Oliva NOES: Councilmen None ABSENT: Councilmen None ELIZABETH DAVIS City Clerk (SEAL)