HomeMy WebLinkAboutORD 2254••
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• • ORIGINAL .
ORDINANCE NO. 2254
ORDINANCE OF THE GOUNCIL OF THE CITY OF PALO ALTO
AMENDING THE PALO ALTO MUNICIPAL CODE BY ADDING
DIVISION 5 TO CHAPTER 2 THEREOF ESTABLISHING
CONTRACTS AND PURCHASING PROCEDURES AND REPEALING
SECTiONS 2.413, 2.414, 2.415, 2.416 AND 22.01 OF
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The Council of the City of Palo Alto does ORDAIN as
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follows:
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SECTION 1. The Palo Al to Municipal Cocfe is-hereby amended
by adding to Chapter 2 thereof a new division to be designated
Division 5 and entitled "Contracts and Purchasing Procedure;
_,'
Property Control" and reading as set forth in Exhibit A attached
hereto and made a -pa-rt hereof as though fully set forth herein.
SECTION 2. Sections 2.413, 2.414, 2.415, 2.416 and 22.01
of the Palo Alto Municipal Code are herP.by repealed.
SECTION 3. This ordinan~e sh~ll become effective upon the
expiration of thirty days from its passage.
INTRODUCED: September 13, 1965.
PASSED:
AYES:
NOES:
ABSENT:
ATTEST:
September 27, 1965 by a unanimous vote.
-Arnold, Beahrs, Comstock, Cooley, Debs, -Dias, Flint,
Pearson, -Rohrs, Rus, Sher, Woodward, -Worthingto:i.
None•
None.
APPROVED:
~l~~ ayor
FORM: ..
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APPROVED AS TO CONTENT: -
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City ManajiS Asq: /
AP]'.>ROVED AS TO CONTENT:
APPROVED AS TO CONTENT:
L.~
DIVISION 5
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Sec. 2.501
CONTRAC7S AND PURCHASING·PROCEDJJREj
PROPERTY CONTROL ·• .
VALIDITY OF CONTRACTS AND PURCHASE ORDERS
. The City· of Palo Al t'o shall not be--and -is not bound-by -any
contract, purchase order or any other doc1Jment unless the same
shall be made in writing by order of the City Council and signed
by a duly authoriz_ed officer in behalf of the City, e~cept as
hereinafter prov hied. -
SEC. 2. 502 UNAUTHORIZED PURCHASES; EXCEPTIONS
-It shall be unl~wful for any officer or employee to pur
chase or contract for iupplies or services for the City other
than through the Purchasing Agent, excepting purchases made from
petty cash or emergency purchases made in conformance with con
trol procedures established by the City Manager. Any purchases,
·contracts or obligations to pay made contrary to the pr 01visions
of this Division shall be null and void.
SEC. 2.503 DEFINITIONS.
The following words and phrases whenever used in this Divi
sion shall be construed as defined in this section:
a. ."Supplies" shall mean and include all supplies, materials
an·li equipment .
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· b. "Services" shall mean and include labor, professional
services and consulting ~ervices.
SEC. 2. 504 AUTHORITY .. OF CITY MANAGER
a.
b.
c.
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-supelies. Subject, to the bid procedure outlined in this
DivJ.sion, the City Manager is hereby authorized to bind
the City by written contract.or purchase order, without
previous action by the Ci~y Council, for the purchas~ of
any supplies. ·,: _,.
Services. The City Manager is hereby authorized to bind
the City, by written cpntract or pure.base 'order, .involving
an expenditure not exce'eriing $5,-'000 . in any one trans
actio1.,· exclusive of sal~s or use tax, without advertising
',or previous acti-::m ny th_e City Council, for the P'ilyµi_ent
for services or -other valuable· considerationq includlng
supp~iesJ. to·b~ f\lrni~hed.to the City, in·amounts m)t ex
ceeding ~5,000, exclusive of sales or use tax, in any one
cont-:ract.
Lease 01; Purchase of Proeert&. Except as 6cherwise di~
rected by the City Council t e City Manager is authorized
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Sec. 2.504
Continued
to lease City property for terms not in excess of one (1)
year and to lease or purchase real property where the
lease or purchase price docs not ·exceed $5)000 in one
-~--------------t-ransaGt.ion. --A -\T>ritten-report _of al 1 such_transac_tJomL _____________ _
shall be made to the City Council quarterly.
d.
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Subdivision land Demolition A_greements~ The City Manager
is further author!zed to sfgn in behalf of the Cit:y all
contracts with subdividers for the install{lt.ion of improve
ments and all agreements for demolition of buildings made
pursuant to the Building Code.
to Si n Purchase Orders. All pur-
e ase or ers· s a e sJ.gne y t e City Manager and City
'Controller except as otherwise provided herein and in
Sec. 2.505. The Assistant City Ma""!~ger, when author_ized
in writing by the City Manager, shall have the pci~1er to
sign purchase orders for the City Manager. The Deputy
Controller; when authorized in writing by the City Con
troller, shall have the power to sign purchase orders for
the Controller. The delegation or revocation of such
pcwer shall be filed in the office of the City Clerk.
SEC. 2.505 AUTHORITY OF PURCHASING AGENT
The Purchasing Agent is hereby authorized to sign for the
City Manager purchase orders for supplies involving an expendi
ture not exceeding $500.00, exclusive of sales or use tax, in
conformance with c911trol procedu":"es to be established by the
City Manager for th~t purpose.
SEC. 2.506 CONTRACTS IN EXCESS OF $5,000
The award of all contracts for services or a combination
of-services and supplies ~nvolving an expenditure exceeding
$5,000, exclusive of sales' or •1se tax, shall be made by the
City Council and the contract shall be signed by the Mayor.
SEC • -2-. 5 0 7 USE OF CONTRACTS AND PURCHASE ORDERS
a.
b.
Purchase Orders. Purchase orders m~y be used:
1.
2.
For the purcha:se. of suj)'plies when the total cost does
not exceed $5,000, exclusive of sales or u~·e tax.
In contracting for services or for a combinat1on of
services and supplies when the total cost does not
e*_ceed $1,000, exclusive of sales or use tax. -·.
Contracts, Control Procedure. Formal writ,ten contracts
shall be used in conf orrnance with control procedur".!s to be
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Sec. 2.507
Contfnued
establishe0 by the City Manager for that purpose. The
approval of the form of all contracts shall be endorsed
thereon by the City Attorn~y ~efore the executiori ther~of .
c. .fusceptions. The City Manager shall establish contrcl pro
---------c-edure-s --for·-,-p_etty 'Casl1 funds and-···em£:rgency~~purche.ses ~ , .. .,ith-
out priox use of purchase o~ders or contracts.
SEC. 2.508 BID PROCEDURE
a.
b.
c.
When Advertising RcSuired. -Wl~.:.:re the cost of services or
. supplies requiredy the City exceeds the sum of $5,00Q, ·
exclusive of sales OL'·\lSe tax, the Purchasing Agent shall call
. 6:1r---bids -by-advertising at lea!->t _onc_P. in a deiily newspap_?r
of general ci!'culation in the City no~ les.s than five (5)
days prior to the date set for receiving bids.
Bid Bond on Deposit. All bids shall be accompanied by
either cash, a certificate of deposit or certified check
or draft, or a cashier's c!:eck or draft, of or on som~
responsible bank in the United States, in favor of and
payable at sight to the City of Palo Alto, in an amount
not less than five percent (5%) of ,the aggregate amQunt of
the bid. If the bidder to whom the contract is awarded
shall, for fifteen (15) days after postihg of such con
tract, fail or neglect to en~er into the contract and file
·.: the ·required bonds, the City Treasurer sha 11 draw the
c t.0ney due on such certificate of deposit or check or draft .. ,
and pay the same or any c.'.1sh 4eposir:ed into thf> Treasury, -.
and uncle:"." no circumstances shall· it be retm:·ned to the
defaulti.ng bidder. In lieu of the_ foregoing, any bid may
oe accompanied by a surety bond in said amount furnished
by a surety authorized to do a surety business in the
State of California, guaranteeing that s~id bidder will
en~er into the conttact and file the required bonds within
said period. W.ith the, ~~pproval of the City Manager, pro
spective bidders may fl-l~ annual surety bonds covering all
bids to be made' during a calendar year.
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OaEminf of Bids and Awards. All bids shall be se~?-led,
i enti~led as bids on the envelope and shall be submitted
to th~ City Clerk at the place and time specified in-· the
public notice inviting bids. Bids sh211 be opened by ~h~
City Manager or his designated representative, ir.public, at
the time _and plac~ _9esignated in· the notice inviting ~ids.
Bies received after th1J specif i~d time shall not be accepted
and shall be returned to the bidder unopened. The contract.
shall be let to th12 lowe'st responsible bidder,:·as defined
herein, either by the Cit)» CounciJ,_,_,.if the pa}rment is for.
services,'' or a ·combination of services arid supplies in ·
excess of .$5,000, exclusive of sales or use tax, or in all
other cases by the City Manager who shall make a monthly
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-• Sec. 2.508
·.Continued
report thereof· to the c..:1 ty Ccfuncil.-ine \,;l.t:y CounciI--or
the ·City Manager, as the case may be, may ·reject any and
all bids ar..d waive any informalities or minor irregula·.ti
ties in the bids.
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Dis~ositiori'·of Bid Bond or 'oeposit. All deposits and
Eon s shall be returned after execution of the contract by
the successfuf bidder and deposit of the nec·essary bonds. -,
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Bonds; Waiver. Faithful performance or lator and material
bonds reqnired by City specifications or contracts _5hall
be approved ·as to form by the City Attorney. The City
Mam-!ger may waive thJ;>_-furnishirig of. a faithfuL_pe:rformance_
bond when in hi.s opinion such waiver will not be detri
mental to the City.
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f. Exce;etions to Competitive Bidding. The restrictions and
provisions of tfiis section shall not apply:
g.
1. To contracts involving the obtaining of professional
or specialized services such as, but not limited to,
services rei'hlered by architects~ attorneys> engineers,
and other specialized consultants.
2. Where calling for bids on a competitive basis in the
opinion of the City Manager is impracticable, unavail
ing or impossible. -' ·
3. Where the City's requirements can be met solely by a
single patented article.or process.
4. ''.Placement of insurance c·overage.
5. When'~ublic work is performed by the' City with its
own employees.
No Bi~s. lf1no bids are received~· the City Manage~ mjy
procee3 to have the services performed or the supplies
purchased without further competitive bidding.
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SEC. 2.509 LOWEST RESPONSIBLE BIDDER
. In addition to price, in determining the "lowest responsi
ble. bidder;" consideration will be given to quality and per
formance of the supplies to be p'urchas~d or services provided
by thC' _seller. Criteria for d~terminii\g low bid shall include,
but not l>e limited lo the following:
1. ·The ability, capacity and skill of the bidde·r, to
pei·{olJJl the contract __ or provide the supplies or
·services required.
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Sec. 2.509
Continued
2. The ability of the bidder to provide the supplies,
or services promptly, or within the time specified,
without delay or interference.
3. The character, integrity, reputation, judgnaent,
experience and efficiency of the bidder.
4. The_ quality of bidder's performance on previous pur-
chases or contracts with the City. -
5. The _ability of the bidder to provide future mainten
ance, repcir parts and services for the use of the ,
s-up-plies-purcffa-sed. -
SEC. 2.510 OPEN MARKET PURCHASES
-Except as otherwise provid.e';i by this chapter or when
dire_cted by the 'City ,Manager, r,ll purchase's of supplier. and ser
vices involving an e}lfpendituie of City funds in the amount of -
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th --·b~-... .: _ ... ~-~-... ~ f tt.~-r-.: .:... -: ~ ,_h,... ope .... "''1-lo-lraf-hu -.rt-i f-t-o::>n it: tt::bL J...llLlli::.L..tt::::>l.. V lit: V..LLJ, .Lii ~ .. 1 ~ &1-u.1Qa..&'""""''"" ...,J y._..._ ____ .._ .
quotation or telephone solicitation, without newspaper advertise.
ment and without observing the procedure prescribed for the
award of fonnal bid purchases.
Open market purchases, whenever possible and practicable,
shall be based on at least three (3) competitive quotations and
shall be awarded to the person, firm or corporation submitting
the _lowest responsible quotat_ion. In detennining the lowest
quotation, the City shall do so ori: et.::h~ 1;>.asis defined in Section
2.509 for determining the lowest responsibJe bidder used in
formal bid purchases.
The Purchasing Agent shall keep a record of all open market
orde'l:s and the quotati·ons submitted in competition thereon.
Such records shall be opeh to public inspection during business
hours. Records of such-open market orders·or purchases may be
disposed of by the Purchasing Agent following two (2) years.
from the date of the purchase. - .
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SEC. 2 • 51 L INSPECTION AND TESTING
The using department shall _inspect supplies delivered and
services performed ·'to determine their conformity with the
specifications set forth in the purcha.se order or contract and
shall report any deficiencies-to the Purchasing Agen~. _ The
-,City may require chemical and physical tests of samples sub-_ -
mitted with bids and samples of deliveries which are necessary
to determine their quality a_nd conformance with specifications.
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Sec. 2.512
SEC. 2.512 CONTRACT SPLITTING PROHIBITF.D
It-shall be unlawful to split or separate into smaller
work orders, PI".Ojects, purchase orders or contracts, any public
work project for the purpose of evading the provisions '·of this
chapter.
SEC. 2.513 SURPlUS SUPPLIES AND E~UIPMENT;
D!SPOSAT. OR -DF.STRIICTTO:: --
a.
b.
Authoritt of Purchasing Agent. All using d~partments
shall su mit to the Purchasing Agent, at such time_s and in
_such form as he_ shall prescribe~-]."__gp()rts :>ht:>_ti;l_ing all sup
plies which are no longer used or which have become~obso~
lete or worn out. The Purchasing Agent shall have authority
to sell all· supplies which cannot be use~d by any department
or which.have become unsuitable for City'use, or to ex
change.-the same for; or trade in the same for .new supplies.
Such satis' shall be h~ld in accordanc_e ·with the procedure
followed in. the awarding of pltrchases but to the highest
responsible ilidder.
Authorita of Citv Mar.ager. The City Ma~ager may authorize
the aban onment, destruction or donation.to public bodies,
charitable, civic or non-profit organizations, of City
property which-has no commercial value or of ~~hich the
.estimated cost of cqntinued care, handling, maintenance or
-stoi:ag~. would exceed the estimated proceeds of sale. Such
detelfu?:i.riation shall be made in writing and countersigned
by the Controller and Purchasing Agent.
SEC. 2.514 PURCHASING MANUA 1.
The Purchasing Agent ,,shall prepare .a Purchasing Manual which
will clearly define and d~scribe the aims and purpo'ses of this
Division. The Purchasing Manual shall-describe an~ explain in
detail the procedures that the using departmE!nts must follow in
the procurement c;\f supplies and services, and shall include,
amodg other things:, control procedures, ~stablished by the City
__ 'Manager under a11thority of this Division.
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• Sec. 2.521
SEC. 2.521 POLICE CHIEF TO RECEIVE UNCLAIMEQ ?ROPER'IY
when lost, stolen, abandoned or otherwise unGlaimed property
·or money, except vehicles subject to registration under the
~,-::-.v~hicle Code of the State of California, comes into the possession
of '-any employee or depar(me·nt of the C:tty, it shall be .held for
rive (5) day.-; by such department and thereafter-'it unclaimed shall
be delivered to the Police Department.
SEC.--2 .:512 ------------HOLDING. AND STORAGE _p_F UNCLAlMED PROPERTY
When los·t:, stolE::n.:. abandoned or otherwise unclaimed property
or money, except. vehicles subject to registrat_ion under the
-----Vehicle _Code of the_ S_t_a__t_e:_.Qf_Cst_lif_ornia, comes into possession of
the Police Department, the departmertt shall hoI<l---and -·store-such -
·property in a safe place or-with some responsible person u'ntil 'it
isclaimed and all just and ·reasonable charges for saving and
storage ther,;:0f have been :P8_ir.L--The -City Manager shall. es tab 1 ish
rules and regulations for the storage of such unclaimed property
· <lnd ·shall establish charges and fees for saving '-ctnd storage of
t~e same.
SEC, 2~523 DISPOSITION OF ~CLAIMED PROPERTY O~
THAN VEHICLES
,.
If the ownet'or pergon entitled .to the po~session thereof_ ..
-fails to claim the property, cxc¢pt unclaimed bictycles, with!n _ -
r-"x (6) months and pays the charges, or if an unclaimed bicyc_le,
wfthin three (3) months and pays the charges, the Police Depa.rt·
ment may sell such property to the highest bic~er a·t public
_ auction. Notice of· such sale shall be given at\\)_'.east five (5)
days before the tirfle fixed therefore by publication once in a
newspapt;r of general circtilatiori published in the City> giving
~hr•_'-'t-i:me·, .;ind plac~. of such sale;,-and generally describing the
p:rc:?p erty to be sold.
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SEC. 2. 524 ABANDONED VEHICJ~ES
Abandoned vehicles .on public ot private ,property shall be_.
disp·osed of as "provided in Section 22700 et seq. of the Vehicle
Code of the,,-State of California.
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SEC. 2.525 FINDER MAY . .-RECLA'lM PROPERTY OR MONEY
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If the true own~r does not Uppear during the time such __
property or money is so heJ.d, and claim the pr.op~rty or money,
it may be delivered back to the ~inder, qther :t.han a· City
employee who fqund the saine 1 while-performing his regular. duty,
if such finder has served written notice upon-the City that h~
wishes to assert-a claim tq_ the prop~~-ty or the money as a
finder, and if -he has complied with "'~h~ reqcirements''of .!:he
Civil Code governing the-duties and obligations of a finder .
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SEC. 2.526
• Sec. 2.526
UNCLAIMED MONEY TO BB DEPOSITED. tN
-GENERAL FUND
All money so rec~ived by the Chief of Police and .unclaimed
after ten (10) days shall be deposited in.the City Treasury and
held in trust on the b60k~of ~~qount of the City and if not
delivered to the true owner during a six (6) month· period, c·r
to the findeT, shall thereafter be transferred to the General
1'~und.
SE.C. 2.527 . .D ISPOS IT ION OF J?ROCEEDS OF SALE
After sue.~ auction is completed the proceeds of the .auction
_______ sha 11 _ b_e_d_elive_x_ed to. the __ .Ci ty _Treasur.~r fpr deposit to :tl:i.t;
cr~dit cf the ·General Fund. -
SEC. 2.528 SALE TO VEST TITLE
On payment of the,price.bid for the property sold, delivery
of the property sold with B bill of sale signed by the Chief of
Police shall vest_ title in the purchaser.
SEC. 2"529 I'ROCEEDINGS WHERE NO BID
In any case where there is no bid offered \'-u'r the property
or if the highest bid offered does•rtot exceed.the charges for
·saving', holding and storage and the expenses pf sale, the same.
shall become the property of the City as compensation for ex
penses_ incurred, or if of no use oi value to the City shall be
dispos>~d of in sunh manner as the City Manager directs.
SEC. 2.530 DANGEROUS OR PERISHABLE PROPERTY
Any property coming into possession of the Chief of Pol:fce
which he detepnines to be dangerous or perishable may be dis
posed of i1mne,diately, without notice, in such mann~r as he
determines to be in the public interest. ·
SEC. 2.531 SECTIONS NOT APPLICABLE
_,,~':1.~f:~:,provision~ of Sections 2.521 -2.527 shall-not be
deeme·d--to apply to pr~perty or mon~y suijje,ct ~o confiscation
under the laws of the'State of California or of the United'
s·tates of Amerfc'a, and~.shall -apply ·tO property ot m0ney held as
evidence only"'when the same is l1nc laimed by any person and no
other provisions of law are applicable concerning its dispos~~ion~
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