O 513 C.S.
ORDINANCE NO. 513 C.S.
AN ORDINANCE OF THE CITY COUNCil OF THE
CITY OF ARROYO GRANDE REPEALING CHAPTER 4
OF TITLE 2 OF THE ARROYO GRANDE MUNICIPAL
CODE AND ADDING THERETO A NEW CHAPTER 4
WHEREAS, the City finds it serves the interests and general welfare of the citizens of
the City of Arroyo Grande to encourage and assist businesses to locate and remain in
the City, and thereby preserve and foster the City's economic and social vitality; and
WHEREAS, it is in many cases difficult or impossible for businesses located in the City
to compete with non-local businesses for City and other contracts. This competitive
disadvantage results in many businesses leaving or choosing not to locate in Arroyo
Grande, and thus further results in the deterioration of the local tax base and labor
force, and in some local persons and families having to leave Arroyo Grande in order
to secure work; and
WHEREAS, by affording local businesses a preference in the award of City contracts,
businesses will be encouraged to locate and remain in the City, and as a result the
City's interests and general welfare will be served.
NOW, THEREFORE THE CITY COUNCil OF THE CITY OF ARROYO GRANDE
DOES ORDAIN AS FOllOWS:
SECTION 1: That Chapter 4 of Title 2 of the Arroyo Grande Municipal Code is hereby
repealed and deleted in its entirety and replaced with a new Chapter 4 of Title 2
attached hereto as Exhibit "A" and incorporated herein by this reference as though
fully set forth.
SECTION 2: If any section, subsection, subdivision, paragraph, sentence, clause or
phrase of this ordinance or any part thereof is for any reason held to be unlawful, such
decision shall not affect the validity of the remaining portion of this ordinance or any
part thereof. The City Council hereby declares that it would have passed each
section, subsection, subdivision, paragraph, sentence, clause or phrase thereof,
irrespective of the fact than anyone or more section, subsection, subdivision,
paragraph, sentence, clause or phases be declared unconstitutional.
SECTION 3: A summary of this Ordinance shall be published in a newspaper
published and circulated in the City of Arroyo Grande at least five (5) days prior to the
City Council meeting at which the proposed Ordinance is to be adopted. A certified
copy of the full text of the Proposed Ordinance shall be posted in the office of the
Director of Administrative Services/Deputy City Clerk. Within fifteen (15) days after
adoption of the Ordinance, the summary with the names of those City Council
Members voting for and against the Ordinance shall be published again, and the
Director of Administrative Services/Deputy City Clerk shall post a certified copy of the
full text of such adopted Ordinance.
ORDINANCE NO. 513 C.S.
PAGE 2
SECTION 4: This Ordinance shall take effect thirty (30) days after its final passage.
On motion of Council Member Tolley, seconded by Council Member Runels, and on
the following roll call vote to wit:
AYES: Council Members Tolley, Runels, Dickens, Ferrara, and Mayor Lady
NOES: None
ABSENT: None
the foregoing Ordinance was adopted this 14th day of March, 2000.
ORDINANCE NO. 513 C.S.
PAGE 3
ATTEST:
WtUiJftX-
RE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK
APPROVED AS TO CONTENT:
APPROVED AS TO FORM:
I
EXHIBIT A
2-4.01 2-4.02
CHAPTER 4. PURCHASING PROCEDURE
Sec. 2-4.01. Requisitions.
(a) Form. Whenever any user department requires the purchase or acquisition of
materials, supplies, or services for the proper functioning of such department, it shall order the
purchase from among available vendors, subject to budgeted dollar constraints, in either written or
verbal form. Upon invoicing from the vendor, the user department shall clearly mark the budget
account number(s) to be charged upon payment, for the benefit of the Financial Services
Department.
(b) Authorization. Written invoices shall be signed by the chief officer of the department
ordering the materials or services. The chief officer shall be deemed to be the department
director, as well as such assistants as he/she may authorize.
(c) Petty Cash Purchases. Written requisitions shall not be required for the purchase or
acquisition of materials, supplies, or services under the amount established by resolution of the
City Council. Such purchases may be made from petty cash or via the normal accounts payable
process. The department director shall approve and initial all invoices for purchases under the
amount established by resolution of the City Council and clearly mark the budget account number
to be charged upon payment.
(Sec. 1, Ord. 181, as amended by Sec. 4, Ord. 447 C.S., eff. July 23, 1992; Sec. 1, Ord. 488 C.S.,
eft. September 14, 1997)
Sec. 2-4.02. PurchasinQ Process.'
(a) First Level Expenditures. For First Level Expenditures, in an amount established by
resolution of the City Council, the user departm~nt is not obligated to obtain bids nor to issue a
written purchase order.
(b) Second Level Expenditures. For Second Level Expenditures, in an amount
established by resolution of the City Council, the user department shall first solicit at least three (3)
informal bids, diligently attempting in good faith to obtain the best value for the City. The user
department director or his/her authorized assistant shall record all informal bids. The user
department shall prepare a written purchase order for all Second Level Expenditures. The original
purchase order shall be forwarded to the designated vendor, and the second copy shall be filed
with the user department until delivery or acceptance of the purchase.
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(c) Third Level Expenditures. For Third Level Expenditu~es in an amount established by
resolution of the City Council, unless otherwise ordered by the City Manager, the user
department shall first solicit at least three (3) written competitive bids, diligently attempting in
good faith to obtain the best value for the City. All written bids shall be retained by the user
department director or his/her authorized assistant. For purchases greater than First Level, the
user department shall prepare a written purchase order. The original purchase order shall be
forwarded to the designated vendor, and the second copy shall be filed with the user department
until delivery or acceptance of the purchase.
(d) Fourth Level Expenditures. For Fourth Level purchases, in an amount established
by resolution of the City Council, only the formal bid process shall be permitted. The completed
purchase order, with bids or bid summaries attached, shall be forwarded to the user department
director for his/her approval and signature on all copies. The original purchase order shall be
forwarded to the designated vendor, and the second copy shall be filed with the user department
until delivery or acceptance of the purchase.
(e) Expenditures Involvinq Public Proiects. Not withstanding the provisions of Article 4
(commencing with Section 20160) of Chapter 1, part 3 of the California Public Contract Code,
the requirements for the award of contracts for public projects of the City shall be governed by
the alternative procedures contained in Article 3 (commencing with Section 22030) of the
Uniform Public Construction Cost Accounting Act (hereinafter "Act"), except as otherwise
provided for in this Chapter.
(1 ) Public proiects of $25.000 or less. Public projects, as defined by the Act,
of twenty-five thousand dollars ($25,000) or less, appropriations for which have been
approved by the City Council, may be performed by the employees of the City by force
account, or by negotiated contract or purchase order approved by the City Manager.
(2) Public proiects of $75.000 or less (informal bidding procedures). Public
projects, as defined by the Act, of seventy-five thousand dollars ($75,000) or less may be
let to contract by informal procedures as set forth in Section 22032, et seq., of the Public
Contract Code.
. (a) A list of contractors shall be developed and maintained by the Director
of Public Works in accordance with the provisions of Section 22034 of the Act.
(b) Where a public project is to be performed which is subject to the
provisions of this <?hapter, a notice inviting informal bids shall be mailed to all
contractors for the category of work to be bid, as shown on the list developed in
accordance with Section 22034 of the Act, and to all construction trade journals as
specified by the California Uniform Construction Cost. Accounting Commission
pursuant to Section 22036 of the Act. Additional contractors and/or construction
trade journals may be notified at the discretion of the department/agency soliciting
bids; provided however: 1) if there is no list of qualified contractors maintained by the
City for the particular category of work to be performed, the notice inviting bids shall
be sent only to the construction trade journals specified by the Commission, or 2) if
the product or service is proprietary in nature such that it can be obtained only from a
certain contractor or contractors, the notice inviting informal bids may be sent
exclusively to such contractor or contractors. All mailing of notices to contractors and
construction trade journals shall be completed not less than ten (10) calendar days
before bids are due.
(c) The notice inviting informal bids shall describe the project in general
terms, how to obtain more detailed information about the project, and state the time
and place for the submission of bids.
(d) The City Manager is authorized to award informal contracts pursuant to
this section.
(e) If all bids received are in excess of seventy-five thousand dollars
($75,000), the governing body of the public agency may by passage of a resolution
by a four-fifths vote, award the contract, at eighty thousand dollars ($80,000), or less,
to the lowest responsible bidder, if it determines the cost estimate of the public
agency was reasonable.
(3) Public proiects of more than $75.000 (formal biddinq procedures). For all public
projects of more than $75,000, a contract shall be awarded pursuant to a formal bidding.
procedure as set forth in the Act, and subject to the exemptions provided for therein.
(f) Open Purchase Orders.
(1) Defined. "Open purchase order" shall mean a purchase where the acquisition is
not made all at one time; it shall be a continuing order providing continuing authority to purchase
from vendors who furnish monthly supplies or services in such volume as to justify the issuance
of an open order. All open purchase orders shall state a maximum amount of expenditures.
(2) Use. Upon the user department's written request therefor, an open purchase
order may be prepared and issued. The original copy, after approval and signature, shall be
forwarded to the vendor. The second copy shall be retained by the user department. When an
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open purchase order is utilized, expenditures shall be reported by the use of requisitions. Such
requisitions shall be signed by the department director or his/her duly authorized assistant. Such
requisitions against an open purchase order shall be filed immediately by the user department
before each and every purchase.
(g) Guidelines for Evaluatinq Bids. Except as otherwise required by law, guidelines for
evaluating bids shall include, but not be limited to, the following:
(1 ) The character, integrity, reputation, judgment, experience, and efficiency of
the bidder (this may include an analysis of previous work performed for the City);
(2) The ability of the bidder to perform the contract, or provide the materials,
supplies, or services required, within the time specified, without delay or interference;
(3) The ability of the bidder to provide future maintenance, repair parts, and
replacement of purchased materials or supplies;
(4) Compliance by the bidder with federal acts, executive orders, and state
statutes governing nondiscrimination in employment;
(5) The results of any evaluation relating performance and price, such as testing,
life cycle costing, and analysis of service, maintenance, and technical data;
(6) Fitness and quality being equal, a preference may be granted to local vendors
for the purchase of materials, supplies, and services. The City may provide a preference to each
qualified local vendor if the bid of a local qualified vendor does not exceed the lowest bid or price
quoted by other vendors by more than five percent (5%). Application of the five percent (5%)
preference in the award of the contract shall mean the amount by which the local vendor bid or
estimate shall be deemed reduced in the City's bid award or selection process and shall not
actually reduce the amount ultimately paid by the City to the successful bidder. To qualify as a
local vendor, a business must have all current applicable City licenses and permits, must
maintain its primary office, distribution point, or place of business within the City of Arroyo
Grande and must report and pay sales tax to the State of California that identifies the point of
sale for taxable transactions as a location within the City limits.
Sec. 2-4.03. Third Level Purchase Orders: Approval by City Manaqer.
Department directors and all other City employees shall not be authorized to sign, issue, or
deliver any purchase order, or accept any delivery of goods or services of Third Level value, until
such time as the City Manager has authorized same in writing. Any such purchase orders or
acceptance of goods or services of Third Level value without the prior written approval of the
City Manager shall be a nullity.
Sec. 2-4.04. Purchase Orders For Four Level Purchases: Approval by Council. The City
Manager and department directors shall not be authorized to sign, issue, or deliver any purchase
order, or accept any delivery of goods or services, of Fourth Level value until such time as the
Council first shall have authorized the same. Any purchase orders or acceptance of goods or
services in excess of Fourth Level value without the prior approval of the Council shall be a
nullity.
Sec. 2-4.05. Professional Services Contracts. The City Manager and department
directors shall not be authorized to sign, issue, or deliver any purchase order, or accept any
professional services contract, in excess of amount established by resolution of the City Council,
until such time as the Council first shall have authorized same. The issuance of any purchase
orders or acceptance of a contract in excess of amount established by resolution of the City
Council without the prior approval of the Council shall be a nullity. Professional services
contracts of less than the amount established by resolution of the City Council and budgeted in
the original approved annual budget, may be approved by the City Manager.
Sec. 2-4.06. Use of Procedures Not Required. The procedures and provisions set forth in
Section 2-4.02 of this chapter may be dispensed with, at the discretion and judgment of the City
Manager if deemed to be in the best interests of the City, as follows:
(a) When an emergency requires that an order be placed with the nearest available
source of supply;
(b) When the item(s) to be purchased can be obtained from only one vendor or supplier;
(c) When the purchase will be made cooperatively with one or more other units of
government, or by use of another agency's bid procurement procedure, provided it meets the
standards established by this chapter;
(d) When reasonably necessary for the preservation or protection of public peace,
health, safety, or welfare of persons or property; or
(e) When, given the indeterminate nature of the City's need, a request for proposal will
result ina more favorable and efficient comparison of materials, supplies, or service.
OFFICIAL CERTIFICATION
I, KELL Y WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that the attached Ordinance No. 513 C.S.
is a true, full, and correct copy of said Ordinance passed and adopted at a
regular meeting of the City Council of the City of Arroyo Grande on the 14th day
of March, 2000.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th
day of March, 2000.
f!J/U!-
ORE, DIRECTOR OF ADMINISTRATIVE SERVICESI
DEPUTY CITY CLERK