O 181
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ORDINANCE NO. /8/
Al'l ORDINANCE OF THE CITY OF ARROYO GRANDE
PRESCRIBING A PURCPASING PROC2DURE.
THE CITY COUNCIL OF THE CITY OF ARROYO GRM"DE DOES ORDAIN:
SECTION 1. All municipal purchases shall comply with the
following:
l. Processing Requisitions.
Whenever any department requires the purchase or acquisi-
tion of materials, supplies or services for the proper function-
ing of such department, it or he shall prepare a two-part pre-
numbered requisition, preliminary to the processing of a pur-
chase order, upon the fOrQ prescribed by the City Administrator.
(a) The requisition shall be signed by the Chief Officer
of the department issuing same. The Chief Officer shall be
deemed to be the department head and such deputies as he may
authorize, provided such authorization is in writing, approved
by the City Administrator and on file with the City Clerk.
(b) Each such requisition, before it is processed, must
be clearly marked by the department issuing, as follows:
1. Account number to which item
is to be charged. i
2. Name and address of vendor.
3. Shipping instructions.
(c) A requisition is not required for the purchase or
acquisition of materials, supplies or services under the amount
of five dollars ($5.00) or less. Such purchases shall be made
from petty cash, upon the approval of the department head. The
department head shall approve and initial all invoices for pur-
chases und~r $5.00.
(d) The City Administrator must approve and initial all
~ requisitions before a purchase order can be processed.
2. Purchasing Process (after receipt of requisition).
(a) Expenditures less than $100.00 (not emergency or
blanket). The Purchasing Department shall prepare the purchase
order and then such purchase order shall be signed, on all
copies, by the City Administrator. The original shall then be
forwarded to the designated vendor. The second copy shall be
filed with the City Administrator, until delivery or acceptance
of the purchase together with the acknowledgment of such [
delivery or acceptance.
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(b) ~xpenditures in excess of $100.00. Unless otherwise
ordered by the City Administrator, the department involved shall
first solicit at least three informal bids, diligently attempt-
ing in good faith to obtain the best value for the City. All
telephone bids shall be recorded by the department head. On
purchases in excess of $500.00, only written bids shall be per-
mitted. The completed requisition, with bids, or bid summary
attached, shall then be forwarded to the City Adroinistrator for
his approval and signature on all copies. The purchase order
shall be processed and the signature of the City Adroinistrator
shall be placed on all copies of th~ purchase order. The
original shall then be delivered to the lowest responsible bid-
der. The second copy, shall be filed with the City Administrator
until delivery or acceptance of the purchased item together with
acknowledgment of such delivery and with the informal bids
attached.
(c) Expenditures over $2,000 involving public projects.
Such purchases shall be made in compliance with State law
applicable thereto.
(d) Definition of a Blanket Purchase Order.
A Blanket Purchase Order is defined as a purchase not in
excess of $500.00 where the acquisition is not made all at one
time; it is a continuing order providing continuing authority
to purchase from vendors who furnish monthly supplies or service(
at a predetermined rate, it is also to provide for purchase of
items of $5.00 or less Which are regularly purchased from a
single vendor in such volume as to justify issuance of a blanket
order. All Blanket Purchase Orders shall state a maximum amount
of expenditures, and all Blanket Purchase Orders shall auto-
matically expire at the end of each calendar month and must be
renewed thereafter; provided, however, that Blanket orders for
utilities, annual service contracts or other specialties approve
by the City Administrator may be renewed annually.
Blanl~t Purchase Orders.
Upon department's written request therefor, the entire pur-
chase order shall be pr?pared and issued by the City Administra-
tor. The original copy, after approval and signature, shall be
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forwarded to the vendor. The second copy shall be retained by
the City Administrator. (Departmeut Heads shall be notifed of
purchase order numbers assigned for Blanket Purchase Orders.)
Daily expenditures shall be reported by the use of requisitions,
such requisitions shall be signed by the Department Head or his
duly authorized assistant, and shall be approved and initialed
by the City Administrator. Such requisitions against a Blanket
Purchass Order shall be filed immediately with the purchasing
department, before each and every purchase.
(e) Emergency defined.
Emergency is defined as a situation where the circumstances
or conditions are so eytreme and urgent as, in the opinion of
the department head, makes it necessary, desirable and for the
public welfare to so expedite the particular purchase or
acquisition as to justify the failure to procure the prior
approval of the City Administrator. All other purchases or
acquisitions shall be deemed non-emergency. An emergency pur-
chase order may never exceed $200.00.
1. Emergency Purchase Orders. In such cases as set
forth above, the Department Head, or his duly authorized
assistant, shall follow the regular requisition procedure
as set forth under Section 1, and shall attach to the
requisition a signed statement explaining the emergency to
the City Administrator.
2. In emergency cases, a Department Head shall be
authorized to issue an emergency temporary purchase order,
and acquire the item or services necessary.
3. A duly processed and approved purchase order,
covering the emergency, shall then be forwarded to the
vendor, with the marking "confirmation" or "confirmation
of emergency call"; the remaining copies shall be distrib-
uted in the usual manner.
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SECTION 2.. The City Administrator shall not be authorized to
sign, issue or d.:liver any purchase oI'der, or accept any delivery
of goods or servi.::es in excess of the '!IUD! of $500.00 of: value,
until such time as the City Council shall first have authorized the
same, and any purchase orders or acceptance of goods in excess
of $500.00 in value without the prior approval of the City Council
shall be a nUllity.
SECTION 3. All purchase orders shall be clearly marked as to
the type of purchase (i.e., type No. a, b, c, d, or e, as set forth
in Section 1 hereof), and shell stata that the same is subject to
the terms of th:..3 Ordinance. The City reserves the right to dis-
allow any claim for items purchased in violation hereof.
SECTION 4. This Ordinance shall be in full force and effect
thirty (30) days after its passage, and within fifteen (15) days
after its passage it shall be published once, together with the
names of the Councilmen voting thereon, in the Arroyo Grande
Herald-Recorder, a newspaper published and circulated in the City
of Arroyo Grande.
on motion of Councilman Jacobs, seconded by Councilman Lee and
on the following roll call vote, to-wit:
AYES : Councilmen Lee, Wood, Jacobs and Mayor Burt.
NOES: None
ABSENT: Councilman McNeil
the foregoing Ordinance was adopted this 27th day of August, 1963.
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ATTEST: c9~ ""'/''/7fi //LA./
P CITY CLERK
1, POLLY S. MILLER, City Clerk of the City of Arroyo Grande,
County of San Luis Obispo, State of California, do hereby Certify
that the foregoing Ordinance No. 181 is a true, full and correct
copy of said Ordinance passed and adopted by the City Council of
the City of Arroyo Grande at a r~~~l3r meeting of said Council on
the 27th day of August, 1963. (5-7~J~
Cit~ lerk of the City of
(seal) Arroy;:> wre.nde
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