HomeMy WebLinkAboutORD 3132..
• • ORJGJNAL
ORDIHAHCE NO. 3132
ORDI.UAHCE OF THE COUNCIL OF THE C!TY OF PALO ALTO
NmimiNG CEUTAIN SP.CT!OHS OF CHAPTER 2. 30 OF THE
PALO AJ .. TO HUHIC:IPAL CODE REGARDING CONTRACTS AHD
PURCHASIHG PROCEDURE
Tlte Council of the City of ?alo Alto does ORDAIN as follows:
SECTION 1. Section 2.30.030(2) of the Palo Alto Hunicipal
Code is nereby amended to read as follm\fs: ·
''(2) 'Services' means and includes labor,
~rofessional services and consulting services.
Services shall not include incidental labor
such as set-up, testing, and maintenance of
supplies 1vhere the primary purpose i.s to pur~
chase the supplies.'"
SEC~IOil 2. Section 2.30.040(b) of the Palo Alto Municipal
Code TS1lereDY' ar~ended to read as follmvs:
n(b) S(~rvices: The city manager is
authori :~ed to bind the city~ hy writ ten con
tract, involving an expenditure not exceeding
ten thousand dollars in any one transaction,
exclusive of sales or use tax, vdthout a.dve::c~
tising or previous action by the city council,
for the payment of services, If servief.:\S are
provided in combination with supplies, the
value of the supplies shall not be considered
for purposes of calcu.lating the cost of servi.ces."
SECTIO!l 3. Section 2.30.040(f) is hereby added to the Palo
Alto HUi1fcipaT Code to read ad follmvs:
''(f) Emergencies: In emergency situations
the city manager is authorized to expend city
funds \vithout limitation by way of amount and
without the requirement for either fon1al bids
or informal quotations. ¥Emergency' shall mean
an unforeseen situation which threatens life l"~r
pt·operty; the city manager is authorized to co· •. -
clude that an emergf;:r.·~y E.:.ists without further
declaration by the City Council. Purchaseo made
during an emergency must be reported to the City
Council at the next regular meeting if such
purchase would otherwise have been made by the
City Council."
SECTION 4. Section 2.30.050(a) of the Palo Alto Municipal
Code is-hereb-y amended to read as follows:
"'(a) Continuing contracts: A continuing
contract is a contract for the purchase of
supplies as needed over a period of time up to
three years, or contracts for services or a
combination of supplies and ~Jervices ·which no
not exceed ten thousand dollars, exclusive of
sales or use tax, or purchases of capital equip
ment involving an expenditure not exceeding one
thousand dollars, exclusive of sales or use tax."
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SECTION 5. Section 2.30.060 of the Palo Alto Municipal
Code ia hereby amended to read as follows:
"2. 3(). 060 Award of contracts. in exc·ess of
ten thousand dollars. The a\-1ara Of atr=contracts
Tor !ervices or a combination of services and
supplies involving an expenditure exceedinB ten
thousand dollars, exclus5.ve of sales or use tax,
shall be made by the city council and the contract
shall be signed by the mayor, or in the mayor's
absence by the vice-mayor. If services are pro
vided in combination with supplies, t.he value of
the supplies shall not be considered for purposes
of calculating the cost of service.s."
SECTION 6. Section 2.30.070 of the Palo Alto Municipal
Code Is fiereby amended to read a.s follo~vs:
11 2. 30. 070 Contro_L.E_rocedures. The type
of \·n:itten contract to-11el:i'Se'dl:or all purchases
shall he in conformanee 't-:rlth control procedures
established by the city manager, city controller,
and city attorney, provided that all contracts
for services or a conbination of services and
supplies when the cost exceeds ten thousand
dollars, exclusive of sales or use tax, shall be
prepared or approved by the city attorney. The
city attorney shall approve the form of all
contracts."
SECTION l. Section 2,30.073 of the Palo Alto Hunicipal
Code isnereby amended to read as follo~·m!
"2.30.0'78 0Een market purchases. Except
as otherwise directed oy the clt.ymru:iager' supplies
involving an expt~nditure of city funds in an amount
of twenty thousand dollars or less, exclusive of
sales or use tax, or services involving an expendi
ture in the amount of ten thousand dollars or leas,
exclusive of sales or use tax, shall be purchased,
when fea~ible and when in the best interest of the
city, in the open market by -r;rri tten quotation
or telephone solicitation, without posting at
Civic Center or newspaper advertisement and
without observing the procedure prescribed for
the award of formal bid purchases. If the
e~-penditure :f.s for a combination of supplies
and se.rvices, services and supplies shall be
individually considered b,g.sed on thei.r respective
values for purpoBes of ascertaining whether the
open 1.'1\arket proc.edure may be :Jsed.
"Open market purchases, whenever possible
and practicable, shall be based on at least
three competitive quotations and shall be awarded
by the director of purchasing services to the
person~ firm or corporation submitting the lowest
responsible quotation. In detet~nining the lowest
q.uotation, the city shall do so on the basis de
fined in Section 2.30.090 for determining the
lowest responsible bidder used in formal bid
purchases.
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"The director of purchasing services shall
keep a record of all open market orders and the
quotations submitted in competition thereon.
Such records shall be open to public inspection
during business hours. Records of such open
market orders or purchases may be disposed of by
the director of purchasing services following t\-10
years fr.om the date of the purchase."
SECTION 8. Section 2.30.080(a), (h)~ and (c) of the Palo
Alto Hunicipal" Code are hereby amended to read as follows:
"(a) H'hen advertisin~ required. Hhere
the cost of supp l'i.es or ser"~rices exceeds the
amounts set forth in Section 2,30.078 for open
market purchases, the director of purchaaing
services shall call for bids by posting at
Clvic Center or by advertifdng at least once
in a daily newspaper of general circulation in
the city not less than five days prior to the
date set for receiving bids,
11 (b) Bid bond or. deposit. Unless waived
by the cttymanage1.~ -Incases \'There it dete:!.."mi.ned
that such 'miver \vill not be detriMental to the
interests of city, all bids shall be accompanihd
by either cash, a certificate of deposit or
certified ch~ck or draft, or a cashier's check or
draft of or on some responsible bank in the United
States! in favor of and payable at sight to the
city, in an amount not less than five percent of
t:he Rggresate afllount of the bid. If the bidder
to ~.;hom the contract is awarded shall, fox: fifteen
dAys after postinB of such contract, fail or neglect
to e~.ter into the contract and file the required
bonds, the city treasurer shall dral~ the money due
on such certificate of deposit or check or draft
and pay the same or any ca8h deposited into the
treasury, and under no circumstances shall it be
returned to the defaulting bidder. In lieu ot the
foregoing 1 any bid may be 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 said bidder will enter into the
contract and file the required bonds within ~aid
period. With the approval of the city manager,
prospective bidders may file annual or continuous
surety bonds covP-ring all bids to be made during
the period that the surety bond is in effect.
"(c) Olenin~ of bids and awards. All bids
shall be sea ed,dentifiea as hfds on the envel.ope
and shall be submitted to the director of purchasing
services at the place and time specified in t.he
public notice inviting bids. Bids shall be opened
by the city manager or his designated representative,
in public, at the time and place designated in the
notice inviting bids. Bids received after the
specified time shall not be accepted and shall be
returned to the bidder unopened. The contract shall
be let to the lowest responsible bidder. as defined
herein, either by the city council, if the payment
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is fot· services in excess of ten thousand dollars,
or a combination of ~.ervices and supplies in exce.se
of ten thousand dollars, exclusive of sales or use
taxt or. in all other cases by the city mana~er who
shall make a quarterly report thereof to the city
council. The contract shall be let to the lowest
bidder, as defined herein~ either by the city council
or the city manager, The city council or the city
manager, as the case may bep may reject any and all
bids and t.;aive any infomalities or minor irregula:r
ities in the bids. The city manager shall make a
quarterly report to the city council of those awards
made by him."
SECTIOI1 9. Section 2.30.0~0(7) (c) is hereby added to the
Palo Alto Yfunicipal Code to read as folloNs:
''(c) Such certification shall be provided
orly t.w that bidder t·1ho is detemined to be the
lo~·.'(·:st" responsible bidder· pursuant to all other
criteria. The provieions of this subsection must
be met and the information provided shall be
evaluated prior to a final determination that
such bidder is in fact the lowest responsible
bidder for purposes of an mvard of the contract. 11
S:CCTIOI-l 10. Section 2.30.091 of the Palo Alto Munic.i.pal Code
is herei)y-amended to read as follm·,rs:
11 2.30.091 Certificate of nondiec·.rimination.
The bidder tc ;?hom the contract Ts-'"'t'Ol)-e-awariie"J
shall provide n certificate statins whether he is
currently i,n compliance ~-d.th all federal and state
of California lmvs covering nondiscrimination in
employment, and that he will purr?ue an affirmative
course of action as required by affirmative action
guidelines as set forth in Section 2.30.090 and
resolutions adopted pursuant thereto, and that if
aNarded the contract, he will not discriminate in
the employment Clf any person under the contract
because of race~ color, national origin or
ancestry, or religion, of such person, and that
he will participate, if requested, j_n preaward
review of his qualifications under the provisions
of this section. The requirement of this section
shall apply only to contracts in excess of five
thousand dollars. No1"'vithst.anding the fact that
an aw·ard is to be made by the city council or the
city manager, a failure to meet the requirements
of this section shall disqualify the bidder from
furthc( consideration .. 11
SECTIOU 11. The Council finds that this is not a project under
the California Environmental Quality Act and, therefore, no environ ..
mental impact assessment is necessary.
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SECTIO!~ 12. This ordinance shall becoMe effective upon the
commefiC"e'Mei1f()f' the thirty-first day after the day of its passage.
li~TRODUCf:D: June 18~ 1979
PASSED: July 2, 1979
AYES: Brennerr Eyerly, Fletcher, Henderson, Levy, Witherspoon
NOES: Fazzino~ Renzel, Sher
ABSTEr~:-rons: None
ABSEUT: None
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