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HomeMy WebLinkAboutORD-02-79 INCREASES THE AMOUNT OF PURCHASE EXEMPTED FROM BIDDING PROCEDURESORANGE CITY NEWS: Please publish Wednesday, January 24, 1979 only and send PROOF and PROOF OF PUBLICATION to City Clerk, P.O. Box 449, Orange, California 92666. CHARLOTTE M. JOHNSTON, CMC, CITY CLERK ORDINANCE NO. 2- 79 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ORANGE AMENDING SECTION 2376 OF THE ORANGE MUNICIPAL CODE INCREASING THE AMOUNT OF PURCHASES EXEMPTED FROM BIDDING PROCEDURES PURSUANT TO SECTIONS 2379 AND 2380 FROM $300.00 TO $500. 00.WHEREAS, since 1967, the National average increase of inflation has been computed at 100.8 percent, and WHEREAS, Section 2376 of the Orange Municipal Code was last amended in 1969, and WHEREAS, rising inflation costs have caused an increase in items and services that could formerly be purchased on the open market to be purchased under the bidding procedures, and WHEREAS, during the past four months there were an average of 46 purchase orders falling in the informal bidding area, and of these, 25 purchase orders were in the $300.00 to $500. 00 category, and WHEREAS, 6.5 manhours are required to process an informal bid, and WHEREAS, 6.5 manhours times 25 purchase orders per month equals 162.5 manhours per month, and WHEREAS, 162.5 manhours per month times $11.10 (the approximate cost per hour) equals $1,803.75 per month, and WHEREAS, .21 manhours are required to process a routine purchase order, and WHEREAS, for 25 purchase orders, 4.6 manhours are required and at $11.10 per hour, the cost would be $51.06 per month, and WHEREAS, the projected savings would be l57. 9 manhours per month or $1,752.69 per month if the exemption from bid procedures was increased from $300.00 to $500. 00.NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ORANGE DOES ORDAIN AS FOLLOWS:SECTION I:Section 2376 of the Orange Municipal Code is hereby amended to read as fo llows :Section 2376 Bidding Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 2379 and 2380. Bidding shall be dispensed with only when an emergency requires that an order be placed with the nearest source of supply, when the amount of the purchase involved is less than $500.00, when the commodity can be obtained from only one vendor, or when, pursuant to Section 2383, the City Council has determined that the best interests of the City would be served by dispensing with the bid procedures required by Sections 2379 and 2380. c'~ SECTION II:This ordinance shall be published once within fifteen (15)days after its passage in the Orange City News, a newspaper of general circulation, published and circulated in the City of Orange, and shall take effect thirty (30) days from and after the date of its final passage.ADOPTED this 16th day of January 1979.I:? ~Mayor of the City of Orange ATTEST:1 I?.., ff- hl: kh-U;-Uf'~ lll .Ci ty Clerk of CMC Orange STATE OF CALIFORNIA ) COUNTY OF ORANGE ) CITY OF ORANGE ) I, CHARLOTTE M. JOHNSTON, CMC, City Clerk of the City of Orange, California, DO HEREBY CERTIFY that the foregoing ordinance was introduced at a regular meeting of the City Council duly held on the 9th day of January, 1979, and thereafter at a regular meeting of said City Council duly held on the 16th day of January, 1979, was duly passed and adopted by the following vote, to wit: ss AYES:NOES: ABSENT: COUNCILMEN: COUNCILMEN: COUNCILMEN: BARRERA, SMITH, MAYOR HOYT, PEREZ, BEAM.NONE.NONE.WITNESS my hand and seal this 17th day of January, 1979.Jr--tt;~ )//- ClrA .'-?~ Charlotte M. Jdh~;ton, CMC City Clerk of the City of Orange 2-q~j,,;