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O 181 -- --- < - " j " 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. --'~"~'.'..... "..-..-,..,.,- -~.._-- ....~ -- -- j --,-, ....., (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 -2- .~---_.._- "_._~.'---_.. --- - ..--- _.. ~-~-- "" , . 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. -3- ~ - ,. ..... ~ ~ . . 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. ~~/2 ;[?~ IDR 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 -4- - -,~-,-""",--'-"-'---'-- - ....;:" --~"....---._-