HomeMy WebLinkAbout15-1353-Modify the Dollar Threshold for Bidding & City Manager Purchasing Authority for Service Contracts2
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ORDINANCE NO. 15-1353
AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
REVISING ORDINANCE NO. 93-1097, TO MODIFY THE DOLLAR
THRESHOLDS FOR BIDDING AND TO ESTABLISH CITY MANAGER
PURCHASING AUTHORITY FOR SERVICE CONTRACTS AND
AMENDING THE HERMOSA BEACH MUNICIPAL CODE
THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 3.12.080 of Title 3, Chapter 3.12 is amended to read as follows:
3.12.080 Open market procedure for purchases of less than fifteen thousand dollars
in value.
Purchases of supplies and equipment of an estimated value in the amount of fifteen
thousand dollars ($15,000.00) or less may be made by the purchasing officer in the open market at
the best prices obtainable and to the best advantage of the City without observing the procedure
prescribed by Section 3.12090.. provided, however, that when practicable, bids or quotations shall
be taken as follows:
A. Minimum Number of Bids. For purchases over one thousand dollars ($1,000.00), at
least three bids or quotations solicited by written requests to prospective responsible vendors, by
telephone, or public notice posted on a public bulletin board in the City Hall.
B. Record. A record of all informal bids and quotations shall be kept and be open to
public inspection for a reasonable period of time.
SECTION 2. Section 3.12.090 of Title 3, Chapter 3.12 is amended to read as follows:
3.12.090 Formal contract procedure for purchases exceeding fifteen thousand dollars
in value.
Except as otherwise provided herein, purchases for supplies and equipment of estimated
value greater than fifteen thousand dollars ($15,000.00) shall be by written contract with the
lowest and best responsible bidder. The following procedure is deemed to be in the best interest to
the City:
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A. Notice Inviting Bids. Notices inviting bids shall include a general description of
the articles to be purchased, shall state where bid blanks and specifications may be secured, and
the time and place for the opening of bids.
B. Published Notice. Notices inviting bids shall be given at least ten days before the
date of opening of the bids. Notices shall be published at least once in a newspaper of general
circulation, printed and published in the City, or it shall be posted in at least three public places in
the City that have been designated by Ordinance as the places for posting public notices.
C. Bidders' List. The purchasing officer shall solicit sealed bids from all responsible
prospective suppliers whose names are on the bidders' list or who have requested that their names
be added thereto.
D. Bidder's Security. When deemed necessary by the purchasing officer bidder's
security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of
bid security provided that a successful bidder shall forfeit his bid security upon refusal or failure to
execute the contract within ten days after the notice of award of contract has been mailed, unless
the City is responsible for the delay. The City Council may, on refusal or failure of the successful
bidder to execute the contract, award it to the next lowest bidder; the amount of the lowest bidder's
security shall be applied by the City to the difference between the low bid and the second lowest
bid, and the surplus, if any, shall be returned to the lowest bidder.
E. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent and
shall be identified as bids on the envelope. Bids shall be opened in public at the time and place
stated in the public notices. A tabulation of all bids received shall be open to public inspection
during regular business hours for a reasonable period of time. No bidder may withdraw his bid for
a period of at least thirty (30) days after the date set for the opening thereof.
F. Rejection of Bids. In its discretion, the City Council may reject any and all bids
presented and re -advertise for bids or to exclude any item or items from the award of bid or waive
any informalities on a bid.
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G. Award of Contracts.
1. Supplies and equipment. A contract for the purchase of supplies ani
equipment shall be awarded to the lowest responsible bidder.
2. Services. A contract for services, other than professional services, shall b
awarded to the bidder which the City Council in its discretion determines offers the best level
services to the City. In making that determination, the Council may consider the bidder's price,
experience, references, location, previous performance experience with the City if any, and overall
reputation.
H. Tie Bids. If two or more bids received are for the same total amount or unit price,
quality and service being equal, and if the public interest will not permit the delay of readvertising
for bids, the City Council may accept the one it chooses or accept the lowest bid made by
negotiations with the tie bidders at the time of the bid opening.
I. Performance Bonds. The City Council shall have authority to require a
performance bond before entering a contract in such amount as it shall find reasonably necessary
to protect the best interest of the City. If the City Council requires a performance bond, the form
and amount of the bond shall be described in the notice inviting bids.
SECTION 3. Title 3, Chapter 3.12 of the Hermosa Beach Municipal Code is amended by
adding a new Section 3.12.035 to read as follows:
3.12.035 Authorization to enter into contracts.
The City Manager is authorized to enter into the following types of contracts:
a. Contracts required of an applicant as a condition of approval of a permit, license,
or other grant of approval not involving expenditure of City funds;
b. Contracts involving the allocation of County, State or Federal funds pursuant to a
program previously approved by the City Council where the form of contract is standard and used
in substantially the same form by all applicants and has been approved by the City Attorney;
c. Contracts for services for a sum not to exceed thirty thousand dollars ($30,000.00)
for which funds have been budgeted in the current year budget and where the form of the contract
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has been approved by the City Attorney;
d. Contracts or amendments to contracts which the City Council has expressly l
authorized the City Manager to execute; and
e. Amendments to contracts previously approved by the City Council not involving)
expenditure of City funds, or modifying the duration and/or amount of the contract in strict
accordance with a specific line item in the approved city budget.
SECTION 4. This Ordinance shall become effective and be in full force and effect from
and after thirty (30) days of its final passage and adoption.
SECTION 5. Prior to the expiration of fifteen (15) days after the date of its adoption, the
City Clerk shall cause this Ordinance to be published in the Easy Reader, a weekly newspaper of
general circulation published and circulated, in the City of Hermosa Beach in the manner provided
by law.
SECTION 6. The City Clerk shall certify to the passage and adoption of this Ordinance,
shall enter the same in the book of original Ordinances of said city, and shall make minutes of the
passage and adoption thereof in the records of the proceedings of the City Council at which the
same is passed and adopted.
PASSED, APPROVED and ADOPTED this 23rd of June, 2015 by the following vote:
AYES:
DiVirgilio, Petty, Tucker
NOES:
Fangary
ABSENT:
Mayor Barragan
ABSTAIN:
None
ATTEST:
City Clerk
of tie city 1counciPand MAYOR of the City of Hermosa Beach, California
APPROVED S TO FORM:
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF HERMOSA BEACH )
I, Elaine Doerfling, City Clerk of the City of Hermosa Beach, California, do
hereby certify that the foregoing Ordinance No. 15-1353 was duly and regularly passed,
approved and adopted by the City Council of the City of Hermosa Beach at a regular
meeting held at the regular meeting place thereof on the 23rd day of June, 2015, and said
Ordinance will be published in the Easy Reader newspaper on July 2, 2015.
The vote was as follows:
AYES: DiVirgilio, Petty, Tucker
NOES: Fangary
ABSENT: Mayor Barragan
ABSTAIN: None
DATED: June 23, 2015
City Clerk