O 488 C.S.
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ORDINANCE NO. 488 c.s.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE REPEALING CHAPTER 6 OF
TITLE 2 OF THE ARROYO GRANDE MUNICIPAL CODE
AND ADDING THERETO A NEW CHAPTER 6
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:
SECT10N ,: 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hereby repealed and deleted in its entirety and replaced with a new Chapter 4 of Title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
unconstitutional, 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 that anyone or more section, subsection,
subdivision, paragraph, sentence, clause or phrases be declared unconstitutional.
SECTJON 3: Witl.rin fifteen (15) days after passage of this Ordinance, it shall be'
published once, together with the names of the Council members voting thereon, in a newspaper
of general circulation within the City.
SECTION 4: This Ordinance shall take effect thirty (30) days after its final
passage.
.Ordinance No. 488 c. S.
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On motion of Council Member Runels , seconded
by Council Member Tollev and on the following roll call vote,
to-wit:
AYES: Council Members Runels, Tolley, Lady, and Mayor Dougall
NOES: None
ABSENT:Council Member Fuller
the foregoing Ordinance was adopted this 12th day of ,1997.
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A lTEST:
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NANCY A. VIS, CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LYON & CARMEL
BY: kh:LTL.~~
ROBERT L. HUNT, CITY MANAGER
I, NANCY A. DAVIS, 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
foregoing Ordinance NO.4 8 8 C _8.is a true, full and correct copy of said Ordinance
passed and adopted at a regular meeting of said Council on the 1 ?"th day of
Aucrust , 1997.
WITNESS my hand and Seal of the City of Arroyo 'Grande affixed this 14th day of
;l')."t]."c::+ , 1997.
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NANCY~IS, CITY CLERK
CHAPTER 6. PURCHASING PROCEDURE r
2-4.01 ReQuisitions.
(a) Blan. Whenever any user department requires the purchase or
acquisition of materials, supplies, or services for the proper functioning of such
department, it shan order the materials, supplies, or services 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 deputies 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
of One Hundred Dollars ($100). 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 One Hundred Dollars ($100) and clearly mark r
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the budget account number to be charged upon payment.
2-4.02 Purchasing Process.
(a) Expenditures Under $7.500. For expenditures under Seven
Thousand Five Hundred Dollars ($7,500), unless otherwise ordered by the City
Manager, 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. All informal
bids shall be recorded by the user department director or his/her authorized assistant.
For expenditures over One Thousand Five Hundred Dollars ($1,500), the user
department shall prepare a written purchase order. The original purchase order shan
be forwarded to the designated vendor, and the second copy shalf be filed with the
user department until delivery or acceptance of the purchase.
(b) Expenditures Over $7.500. For purchases over Seven Thousand
Five Hundred Dollars ($7,500), only written bids 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. I
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(d) Expenditures Over $5.000 Involving Public Proiects. Expenditures
over Five Thousand Dollars ($5,000) involving public projects shall be made in
compliance with the State laws applicable thereto.
(e) 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) lls.e. 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 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.
(f) Guidelines for Evaluating 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;
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(6) Fitness and quality being equal, a preference may be r
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
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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 l
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.
2-4.03 Purchase Orders Over $1 .500~ Approval by City Manager.
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, in
excess of the sum of One Thousand Five Hundred Dollars ($1,500) in value until such
time as the City Manager has authorized same in writing and any such purchase
orders or acceptance of goods in excess of One Thousand Five Hundred Donars
($1,500) in value without the prior written approval of the City Manager shall be a
nullity .
2-4.04 Purchase Orders Over $7.500~ 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, in excess of the sum
of Seven Thousand Five Hundred Dollars ($7,500) in value until such time as the
Council first shall have authorized the same and any purchase orders or acceptance
of goods in excess of Seven Thousand Five Hundred Dollars ($7,500) in value without
the prior approval of the Council shall be a nuftity.
2-4.05 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 as to 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:
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I (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,
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I 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 in a more favorable and efficient comparison of materials,
supplies, or services.
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