r

k
d
i
pr tt
tv
ttor ney
T3
ORDINANCE
No CMSq
E
w
AN
ORDINANCE FORMULATING AND ESTABLISHING
PROCEDURES
FOR
BIDDING
CONTRACTING AND
PURCHASINGa
ki
V
WHEREAS
the
City
ofOakland
desir estoestablish
d
pr ocedur es
for
the
pur chase
of
supplies
equipment
and
y
ser vices
tosecur efor the
Citysupplies
equipment
and
ser vicesat
thelowest
possible
cost
commensur atewith
quality
needed
toexer cise
positive
financial contr ol
over
pur chases
and
contr acts
todefine
clear lyauthor ity
for the
pur chasing
and
contr acting
function
nowther efor e
the
following pur chasing system
is
her ebyadopted
r
TheCouncil of
the
City
of
Oakland
does
or dain
as
t follows
SECTION 1
DEFINITIONS
The
f1lowing
wor ds
and
phr ases
whenever
usedin
this
or dinanceshall beconstr ued
as
definedinthissection
w
A
3c
h3
o
h
7
1
v
4
v
B
4T
1
a
Supplies
shall mean
and include
supplies
mater ials
commodities
and
equipment
bSer vices
shall mean
andinclude
labor
pr ofessional
ser vices
consulting ser vices
or
a
combination
ofser vices
and
supplies
whichshall
include
public
wor ks
pr ojects
c
City
Manager
shall
mean
the
City
Manager
ofthe
City
ofOakland
or
an
officer
specifically
designated
toact
for
the
CityManager
Author
izations
not
specified
inthis
or dinanceshall
be
made
in
wr iting
by
the
CityManager
and
filedwith
the
City
Cler k
d
Pur chase
shall mean
andinclude
r ental or
lease
of
supplies
as
well as
pur chase
SECTION
2
AUTHORITY
OF
CITY
MANAGER
G
J
c
c
t
y
Su lies
andSer vices
Subject
tothe
ava lability
of
funds
an te
pr oce
ur esset
for thinthis
or dinance
the
City
Manager
is
her eby
author izedtobind
the
City
by
wr itten
contr act
or
pur chase
or der involving
an
expenditur e
not
exceeding
FiveThousand
Dollar s
5000 00
in
any
one
tr ans
action
without
adver tising
or
pr evious
specific
action
by
th e
t
Y
CityCouncil
for the
pur chase
of
supplies
or
payment
for
ser vices
or
a
combination
ther eof
tobe
fur nishedtothe
City
SECTION 3
CONTRACTSIN EXCESSOF
5000
Unless
other wise
pr ovided
her einall contr acts
for
supplies
ser vices
or
a combinationofser vices
and
supplies
involving
an
expenditur e
exceeding
FiveThousand
Dollar s
5000 00
shall be
awar ded
by
the
City
Council
No
contr act
shall be
binding
or of
any
for ceor effect
until
signedby
the
City
Manager
Such
signatur eby
the
CityManager
shall
con
stitutehis
cer tification
that ther e
r emains
unexpended
and
unapplied
balancesof
the
appr opr iations
or
funds
applicable
ther eto
sufficient to
pay
the
estimated
expense
of
executing
suchcontr act
SECTION 4
USE OF
CONTRACTSAND
PURCHASE ORDERS
a
PriaseOr der s
Pur chaseor der s
may
beused
1
For the
pur chase
of
supplies
whenthe
total cost
doesnot
exceedFiveThousand
Dollar s
5000 00
in
any
one
tr ansaction
2In
contr acting
for ser vices
or for
a combination
ofser vices
and
supplies
whenthe
total cost does
not exceedFive
Thousand
Dollar s
5000 00
in
any
one
tr ansaction
b
Contr acts
Contr ol Pr ocedur e
1
For mal
wr itten
contr acts
shall be
used
for
all
pur chases
of
supplies
or
ser vices
or combinations
ther eof
inexcessofFiveThousand
Dollar s
5000 00
2
The
City
Manager
shall institute
contr ol
pr o
cedur esfor
r equests
for
dr afting
offor mal
contr acts
3
Pur suant to
the
City
Char ter the
City
Attor ney
will
dr aft such
contr acts
4o The
CityAttor ney
will
appr ove
thefor m
and
legality
ofall
for mal wr itten
contr acts
befor e
theexecution
ther eof
c
Exc e
tions
The
City
Manager
shall
cec es or
petty
cash
fundswithout
or der sor
contr acts
establish
contr ol
pr o
pr ior
useof
pur chase
SECTION
5BID
PROCEDURE
a
When
Adver tisin
Reuir ed
Wher ethe
cost of
ser vices
supp
ies
or
com ination
ther eof
r equir edby
the
Ct
exceeds
the
sumofFive
Thousand
Dollar s
5000 00
the
City
Cler k
shall
call for
for mal
bidsther efor
by
adver tis
ing
at least
oncein
theofficial newspaper
of
City
not
2
lessthan
ten
10
calendar
days
pr ior
tothedateset for
r eceiving
said
bids The
CityManager
whenhedeems it
to
be
advisablemay
r equir e
mor e
than
one
adver tising
of
the
call for
bids
b
Bid
Secur ity
Whenever
the
City
callsfor
bidsfor
ser vices
andwhenever
the
CityManager
deems it
tobe
advisablein
callsfor
bidsfor
supplies
eachbidder shall
be
r equir ed
to
submit
withthebid
asbid
secur ity
either
cash
cer tified
check
or
acashier s
check ofor on
some
r esponsible
bank in
theUnited
States
in
favor of
and
pay
able
at
sight
tothe
City
of
Oakland
inanamount
not less
thanten
per cent
10
of
the
aggr egate
amount
ofthebid
Ifthebidder
towhom the
contr act is
awar ded
shall
for
twenty20
calendar
days
after
r eceipt
ofsuch
contr act
fail
or
neglect
toenter
intothecontr act
andfiletl e
r equir ed
bonds
thebid
secur ity
shall
be
for feited
the
CityManager
shall dr aw
the
money
due
onsuchbid
secur ity
and
pay
thesameor
any
cash
deposited
into
the
City
Tr easur y
anddander
nocir cumstances
shat iit
er etur ned
to
the
defaulting
bidder Inlieu
oft1 ae
fr egoing
any
bid
may
be
accompanied
by
a
sur ety
bondinsaidmount fur nished
by
a
sur ety
author ized
to
do
a
sur ety
business
inthe
Stateof
Califor nia guar anteeing
tothe
City
that saidbidder
will
enter intothe
contr act
andfilethe
r equir ed
bonds
within
said
per iod
Failur e
ofthe
bidder toenter
intothecon
tr act
as
specified
her einshall
r esult
ina for feitur eof
theamount
specified
in
the
sur ety
bond
Withthe
appr oval
ofthe
City
Manager pr ospective
bidder s
may
fileannual
sur ety
bonds
cover ing
all
bidstobemade
by
such
bidder
dur ing
a
calendar
year
c
No
per son
fir m
or
cor por ation
shall
beallowed
tomake
or
fileor
be
inter ested
inmor ethan
onebidfor
thesame
supplies
ser vicesor
both
dAll bids
shall be
made
upon
for ms
to
be
pr epar edby
City
and
fur nished
upon
application
All
bidsshall
be
clear ly
and
distinct7
wr itten
without
any
er asur e
or inter lineation
e
0
enin
of
Bids
and
Awar ds
All
bidsshall
be
sealed
ientiie
as
is on
te
envelope
and
shall
be
submitted
tL
the
City
Cler k
at
the
place
and
time
specified
inthe
pu ic
notice
inviting
bids Bids
shall be
openedby
the
City
Manager
or his
designated
r epr esentative
in
public
at
the
time
and
place
designated
in
thenotice
inviting
bids
Bids
r eceived
after the
specified
timeshall not
be
accepted
and
shall
be
r etur ned
tothebidder
unopened
Thecontr act
shall
be
let
to
thelowest
r esponsible
bidder
as
defined
her ein
by
the
City
Council
at
any
timenot
exceeding
thixty30
calendar
days
after
1id
opening
The
City
Council may
r eject any
andall
bdsandwaive
any
anfor mal
ities
or r a nor
ir r egular ities
antebd
f
Dis
ositionofBid
Secur it
All bidsecur ities
andbid
bol
s sa1
be
r etur ne
to
the
unsuccessful
bidder s
after
har d
ofthecontr act
tothesuccessful
bidder
Thebid
secur ity
andbid
bondofthesuccessful
bidder
shall be
tur nedafter
execution
of thecontr act
and
deposit
of
nr e
r y
bonds
3
g
A
r oval ofFaithful
Per for manceandLabor
andMater ials
Bons
Waiver Fait u
per
or mance
an
a or an
mater ial
osin
an
amount
equal
toat least
fiftyper cent
50
ofthe
contr act
pr ice
shall
be
r equir ed
by
City
specifica
tionsor
contr actsfor
ser vicesandshall
be
appr oved
as to
for m
by
the
CityAttor ney
Whenever
the
CityManager
deems
it tobe
advisableinthe
pur chase
of
supplies
he
may
r equir e
the
fur nishing
of a faithful
per for mance
bondinan
amount
equal
to
at
least
twenty fiveper cent 25
ofthe
total
amount ofthecontr act
pr ice
whichbondshall
be
appr oved
as to
for m
by
the
City
Attor ney
h TimeofCom
letionThecontr act shall
specify
thetime
wit
inwistior k
shall becommenced
andwhenit shall
be
completed
inaccor dance
withthe
specifications
The
City
Manager may
extend
saidtimefor
actsofthe
City
actsof
God
weather or
str ikes
or
other cir cumstances
over whichthecontr actor hasno
contr ol TheCouncil
may
extendsaid
time
but inno
event shall thetimefor the
per for mance
of
any
contr act beextended
mor ethan
ninety 90
days
inadditiontoextensionsas author ized
by
the
City
Manager except
by
a
two thir ds
23
vote
of
theCouncil
In
caseoffailur eonthe
par t
of the
contr actor
to
complete
hiscontr act
withinthetime
specified
inthecontr act or
withinsaid
extension
of
saidtime
as
her ein
pr ovidedfor
the
contr act
may
beter minated
andthecontr actor shall not
be
paid
or
allowed
any
fur ther
compensation
for
any
wor k
done
by
himunder said
contr act
and
the
City
Manager may
pr oceed
to
complete
suchcontr act
either
by
r eletting
or
other wise
andthecontr actor andhis
sur ety
shall be
liable
to
the
City
for all lossor
damage
whichthe
City
may
suffer
on
account ofhisfailur e
to
complete
the
contr act on
time
iExcetions
toCom etitive
Biddin
Upon
the
finding
and
eter mining
ineac instance
y
the
City
Council that
any
ofthe
following
conditions
exist
the
r estr ictionsand
pr ovisions
ofthis
sectionshall not
apply
1To
contr acts
involving
the
obtaining
of
pr ofessional
or
specialized
ser vicessuch
as
but
not
limited
to
ser vicesr ender ed
byar chitectsengineer s
andother
specializedpr ofessional
consultants
2Wher e
calling
for bidsona
competitive
basisis
impr acticableunavailing
or
impossible
3Placement ofinsur ance
cover age
4When
public
wor k is
per f or m edy
the
City
withits
own
employees
5
In
other cases
when
spec
icallyuth zized
by
the
City
Council after
a
finding
anddeter minationthat
it isin
thebest
inter ests
ofte
City
j
NoBids Ifnovalidbidsar er eceivedafter
adver tising
tzer r or
as
r equir ed
in
this
or dinance
the
CityManager
4
maypr oceed
tohir eor havetheser vices
per for med
or
pur chase
the
supplies
inthe
open
mar ket
SECTION
6LOWESTRESPONSIBLE BIDDER
Inadditionto
pr ice
in
deter mining
thelowest
r esponsiblebidder
consider ation
shall be
given
to
1The
quality
and
per for mance
ofthe
supplies
to
be
pur chased
or ser vices
to
be
pr ovidedby
theseller
2The
ability
capacity
andskill of
thebidder
to
per for m
the
contr act or
pr ovide
the
supplies
or
ser vices
r equir ed
3The
ability
ofthebidder
to
pr ovide
the
supplies
or ser vices
pr omptly
or withinthetime
specified
without
delay
4The
char acter
integr ity
r eputation
judgment
exper ience
and
efficiency
of the
bidder
5
The
quality
of
bidder s
per for mance
on
pr evious
pur chases
by
or contr acts
with
the
City
6
The
ability
ofthe
bidder to
pr ovide
futur emain
tenancer epair par ts
andser vicesfor
the
use
ofthe
supplies
pur chased
SECTION 7
OPEN MARKET
PURCHASES
Except
as other wise
pr ovided
by
thisor dinance
or unless
other wisedir ected
by
the
City
Manager
all
pur chases
of
supplies
or
ser vices
involving
an
expenditur e
of
City
fundsinan
amount
not
exceeding
Five
Thousand
Dollar s
5000 00
shall be
pur chased
when
feasible
andwhen
inthebest inter est
ofthe
City
in
the
open
mar ket
by
wr itten
quotation
or
telephone
solicitation
with
out
newspaper
adver tisement
and
without
obser ving
the
pr ocedur e
pr escr ibed
for the
awar dof for mal
bid
pur chases
The
pr ocedur e
for such
open
mar ket
pur chases
shall be
as
specified
incontr ol
pr ocedur es
to
beestablished
by
the
CityManager
SECTION
8COOPERATIVE
PURCHASING
AGREEMENTS
The
CityManager
wher e
advantageous
for
the
Citymay
bycooper ative
pur chasing
agr eements
appr ovedby
the
City
Council
pur chase
supplies
or
ser vices
thr ough legal
contr actsof other
gover nmental
jur isdictions
or
public
agencies
without
separ ate
for mal
bidding
by
the
City
SECTION
9SURPLUSSUPPLIES9
PURCHASES
When
it is
advantageous
tothe
City
the
City
Manager
may
dir ect
the
pur chase
of
sur plus
supplies
fr om
theUnited
States
Gover nment
or
anyagency
ther eof
or fr omthe
State
of
5
Califor nia
or
anyagencyther eof
or
anypublic body
with
out
compliance
with
open
mar ket
pur chase
pr ovisions
for mal
bidding
r equir ements
or
enter ing
into
a for mal contr act ther efor
SECTION 10INSPECTION AND TESTING
The
r eceiving depar tment
shall
inspect
supplies
deliver ed
andser vices
per for med
to
deter minetheir
confor mity
withthe
specifications
set for thinthe
pur chase
or der
or
contr act and
shall
r epor t any
deficienciestothe
CityManager
or
officer
author ized
by
the
CityManager
The
Citymayr equir e
chemical
and
physical
testsof
samples
submittedwithbidsand
samples
of deliver ies
whichar e
necessar y
todeter minetheir
quality
andconfor mance
with
specifications
SECTION
11CONTRACTSPLITTING PROHIBITED
a It
shall beunlawful to
split
or
separ ate
intosmaller
wor k
or der spr ojects
pur chase
or der s
or
contr acts
or
anypublic
wor k
pr oject
for the
pur pose
of
evading
the
pr ovisions
ofthisor dinance
b
Splitting
or
separ ating
a
tr ansactionshall mean
and
includethe
r educing
theamount of
anysupply
or
ser vicetobe
fur nished
to
the
City
under cir cumstances
wher ether eis
ar easonable
knowledge
that thesame
supply
or
ser vicewill be
additionallyr equir ed
within
thesame
budgetar y
ter m
ther e
ar efundsavailable
for
that
pr oject
or
pur chase
andthesole
pur pose
is
to
knowingly
avoid
the
for mal
calling
ofbids
In
instances
wher eit is
deemedto
be
tothe
benefit of
the
City
to
split
or
separ ate
a
tr ansaction
the
pr o
posedsplitting
or
separ ation
shall
be
r efer r ed
to
the
City
Council
for
its
finding
anddeter mination
in
accor dance
withSection5iher ein
SECTION
12SURPLUS
SUPPLIESAND
EQUIPMENT
DISPOSAL
OR DESTRUCTION
a Author it
of
Pur chasin
A ent All
using
depar tments
sa su mit
totePur c
asing Agent
at suchtimes
and
in
suchfor mas
heshall
pr escr iber epor ts
showing
all
supplies
which
ar e
no
longer
used
or whichhave
become
obsoleteor wor n
out The
Pur chasing
Agent
shall have
author ity
to
sell
at
public
auctionafter
adver tising
for one
day
in
theofficial
newspaper
of
City
all
supplies
whichcannot be
used
byanydepar tment
or
whichhave
become
unsuitablefor
Cityuse
or to
exchange
or
tr adein
the
same
for new
supplies
How
ever
the
salesof
such
supplies
may
bemade
toother
public
bodies
at
the
fair mar ket value
b
Noofficer or
employee
shall
as
pr incipal agent
attor ney
or
other wise
be
dir ectly
or
indir ectly
inter
estedinthesale
of
any
ar ticle
by
the
City
c
Author ity
of
Ci tManager
Except
as other wise
pr ohib
ited
law
t
City
Manager may
author izethe
abandon
ment
destr uction
or donation
to
public
bodies
char it
able
civic or
non pr ofit
or ganizations
of
Citypr oper ty
6
whichhasnocommer cial valueor ofwhich
theestimated
cost ofcontinued
car e
handling
maintenanceor
stor age
would
excel
dtheestimated
pr oceeds
ofsale
Such deter minationshall bemadein
wr iting
and
counter
signedby
theDir ector ofGener al Ser vicesand
City
Manager
SECTION 13ADMINISTRATIVE CONTROLS
The
CityManager
shall
pr epar e
administr ativedir ectives
andcontr olssufficient to
car r y
out theintent ofthis
or dinance
SECTION 14
COLLUSION WITHBIDDER EFFECTON OFFICER
Any
officer ofthe
City
or of
anyDepar tment
ther eof
whoshall aidor assist
a
bidder
in
secur ing
a
contr act
to
fur nish
labor
mater ial or
supplies
at
a
higher
pr ice
than
that
pr oposedby
any
other
bidder
or
whoshall favor
one
bidder
over
another
bygiving
or
withholding
infor mationor
whoshall
wilfully
mislead
any
bidder
in
r egar d
tothe
char acter ofthemater ial or
supplies
called
for
or
who
shall
knowingly
accept
mater ials
or
supplies
ofa
qality
infer ior tothosecalledfor
by
the
contr act
or whoshall
knowingly
cer tify
to
a
gr eater
amount oflabor
per for med
thanhasbeen
actually
per for med
or tothe
r eceipt
of
a
gr eater
amount or
differ ent kindofmater ial
or
supplies
thanhasbeen
actually
r eceived
shall bedeemed
guilty
of
malfeasanceandshall be
r emovedfr om
office
andbefor
ever
ineligible
to
hold
any
office
or
employment
inor
under the
City
of
Oakland
SECTION 15
UNAUTHORIZED
PURCHASES
EXCEPTIONS
It
shall beunlawful for
any
officer
or
employee
to
pur chase
or
contr act for
supplies
or
ser vicesfor the
City
other thanasher einafter
pr escr ibedexcepting pur chases
made
fr om
petty
cash
emer gencypur chases
or other
pur chases
made
in
confor mancewithcontr ol
pr ocedur es
established
by
the
CityManager
Anypur chases
contr acts
or
obligations
to
pay
made
contr ar y
tothe
pr ovisions
ofthis
or dinance
shall benull andvoid
IN
COUNCIL OAKLAND
CALIF
19
PASSED
BY THE
FOLLOWING VOTE
BINNS ENG
VUKASIN
AYES
BROMCHIALVO MAGGIORA
OGAWA ROSE
AND PRESIDENTREADING
NOES
ABSENT
r
ATT EST
f
ATTEST
dcLf
r
CfC t3
C
ITVCLER ANDCLERK OF TE GOU CIL
OF THE CITY
OFOAKLAND CALIF
600 242
l8 88