Chapter 3.02
PURCHASING
Sections:
3.02.010 Adoption of purchasing system.
3.02.030 Financial services review.
3.02.040 Contract approval authority.
3.02.050 Contracts for public projects.
3.02.055 Contracts for goods and nonprofessional services.
3.02.060 Contracts for professional services.
3.02.070 Inspection and testing.
3.02.090 Cooperative purchases.
3.02.100 Conflicts of interest.
3.02.010 Adoption of purchasing system.
This purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, services and equipment; to secure supplies, services and equipment for the city at the lowest possible cost commensurate with quality needed; to exercise positive financial control over purchases; to clearly define authority for the purchasing function; and to assure the quality of purchases. Purchasing procedures provide a process for the purchase of goods and services used for the operation of city programs. These procedures enable the finance department to coordinate the city’s purchasing process, and to establish a system of financial controls for the efficient use and expenditure of public funds. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-12)].
3.02.020 Definitions.
The following terms, as used in this chapter, shall have the following meanings:
“Act” shall mean the Uniform Public Construction Cost Accounting Act, as set forth in California Public Contract Code Section 22000 et seq., as amended or superseded.
“Commission” shall mean the California Uniform Construction Cost Accounting Commission created by Division 2, Part 3, Chapter 2, Article 2 of the California Public Contract Code (commencing with Section 22010).
“Facility” shall mean any plant, building, structure, ground facility, utility system, real property, streets and highways or other public work improvement.
“Goods” shall mean equipment, supplies, materials, and other commodities, other than services and real property.
“Maintenance work” is defined in California Public Contract Code Section 22002.
“Nonprofessional services” shall mean services not constituting professional services or public projects, but including maintenance work.
“Professional services” shall mean services, other than services constituting public projects, performed by specially trained persons or firms in a professional occupation, including, but not limited to, services in connection with financial, economic, accounting, auditing, architectural, engineering, planning, legal, administrative or other matters involving advanced or specialized knowledge, expertise or training gained by formal studies.
“Public project” is defined in California Public Contract Code Section 22002. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-13)].
Cross-reference: definitions generally, AVMC 1.02.010.
3.02.030 Financial services review.
A. Finance Department Review. The director of financial services (director of finance) shall be responsible for administering the purchasing policies and procedures set forth in this chapter and assuring budget accountability. The director of finance shall have the following responsibilities:
1. Review purchase requisitions for completeness.
2. Determine that bids have been obtained, if required.
3. Determine that the appropriate approvals are included.
4. Determine that the account number charged shall be appropriate for the item being acquired.
5. Review availability of funds or determine whether a budget adjustment is required.
6. Approve purchase requisitions, if appropriate.
B. Purchasing Policies. The director of finance shall develop supplemental purchasing policies and procedures to provide additional instructions and clarifications as necessary for the administration of this chapter, and such policies and procedures which shall be consistent with the intent and purpose of this chapter. Any such policies and procedures shall be approved and adopted by the city manager.
C. Department Head Review. The head of each department shall be responsible for ensuring that their respective budgets stay within the prescribed funding levels. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-14)].
3.02.040 Contract approval authority.
A. The director of finance, or his/her designee, is authorized to award contracts in an amount not to exceed $10,000.
B. The city manager is authorized to award contracts in an amount not to exceed $50,000.
C. Notwithstanding subsection (A) of this section, contracts for materials or services, in which the city shall receive full and complete reimbursement for its financial obligations thereunder from a third party, shall be approved by the city manager.
D. Contracts with an estimated value of more than $50,000 shall be approved by the city council.
E. The dollar limits specified in this section shall apply to the original contract and to any amendments or change orders. Unless otherwise provided in this chapter, any contract amendment or change order that would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount. [Ord. 2018-196 § 2; Ord. 2016-175 § 1; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-15)].
3.02.050 Contracts for public projects.
A. Contract Award to Lowest Responsible Bidder. Contracts for public projects shall be awarded to the lowest responsible bidder.
B. Bidding Requirements.
1. Public projects of $45,000 or less ($3,500 if subject to federal procurement requirements) may be performed by the employees of the city by force account, by negotiated contract or by purchase order.
2. Contracts of $175,000 or less ($150,000 if subject to federal procurement requirements) may be awarded pursuant to the informal bidding procedures set forth in subsection (C) of this section.
3. Contracts of more than $175,000 ($150,000 if subject to federal procurement requirements) shall be awarded pursuant to the formal bidding procedures set forth in subsection (D) of this section.
4. The city council, or its designee, city manager, shall approve all formal bidding activity for public projects in excess of $175,000 prior to the mailing of notices inviting bids.
5. Notwithstanding the foregoing, if the project is subject to federal funding requirements, then public projects of $3,500 or less may be performed by the employees of the city by force account, by negotiated contract or by purchase order. Otherwise, the project shall be awarded pursuant to the informal or formal bidding procedures as provided above.
C. Informal Bidding Procedures.
1. Contractor List. For public projects, the public works director shall maintain a list of qualified contractors, identified according to categories of work, as described in Section 22034(a) of the Act. The list shall be developed and maintained in accordance with criteria established by the Commission. In developing the list, the public works director shall obtain from the Contractor’s State License Board and from the contractor’s trade associations in the county the names and addresses of qualified contractors located in the county.
2. Notice Inviting Informal Bids. A notice inviting informal bids, which describes the project in general terms, explains how to obtain more detailed information about the project, and states the time and place for the submission of bids, shall be mailed to either or both of the following not less than 10 calendar days before the bids are due:
a. All contractors on the qualified contractors list maintained pursuant to subsection (C)(1) of this section; and/or
b. All construction trade journals specified in Section 22036 of the Act.
The notice inviting informal bids may also be published in a newspaper of general circulation printed and published in the city or, if there is none, posted in the public places in the city that have been designated by ordinance as the places for placing public notices.
3. Contract Award. Contract award shall be to the lowest responsive and responsible bidder except as otherwise provided in this chapter.
4. The city shall receive, whenever possible, at least three informal bids from qualified contractors.
5. If all bids received are in excess of $175,000, the city council may, by passage of a resolution by a four-fifths vote, award the contract at $187,500 or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.
D. Formal Bidding Procedures.
1. Notice Inviting Bids. A notice inviting sealed bids, which describes the project and states the time and place for submission of bids, shall be sent no later than 15 calendar days before the opening date of the bids as follows:
a. By mail to all construction trade journals specified in Section 22036 of the Act; and
b. By mail or electronic mail to any prospective bidders.
2. Publication of Notice. The notice inviting bids shall be published at least 14 calendar days before the date of opening of the bids. Notice shall be published in a newspaper of general circulation printed and published in the city or, if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance or policy as the places for placing public notices.
3. Opening Bids. Sealed bids shall be submitted to the city clerk or the department head initiating the bid process 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 shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
4. Contract Award. Contracts shall be awarded by the city council to the lowest responsive and responsible bidder except as otherwise provided in this chapter. The decision of the city council shall be final.
E. Bid Guarantee – Bonds.
1. All bids shall be accompanied by a bid guarantee in the amount of 10 percent of the bid price which may consist of one of the following forms: (a) cash, (b) cashier’s/certified check made payable to the city, or (c) a bid bond executed by an admitted surety.
2. The vendor which is awarded a contract pursuant to this section shall execute a performance bond for the faithful performance of the contract and a payment bond to ensure payment as required by law of all persons supplying labor and material in the execution of the contract. The performance bond and payment bond shall be in an amount equal to at least 100 percent of the contract price.
F. Rejection of Bids. In its discretion, the city council may reject any bids presented. If, after the first invitation of bids, all bids are rejected, after reevaluating its cost estimates for the public project, the city shall have the option of any of the following:
1. Abandon the project; or
2. Readvertise for bids in the manner described in this chapter; or
3. By passage of a resolution by a four-fifths vote of the city council, declare that the project can be performed more economically by the employees of the city and have the project done by force account or negotiated contract, without further compliance with this chapter.
G. Waiver of Defects. Unless provided by law, the city council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. Unless provided by law, no defect or informality shall void any contract entered into. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-16)].
3.02.055 Contracts for goods and nonprofessional services.
A. Contracts for goods and nonprofessional services, including maintenance services, shall be awarded on the basis of best value in accordance with the provisions herein.
B. Bidding Requirements.
1. Contracts of $3,500 or less may be performed by the employees of the city by force account, by negotiated contract, or by purchase order.
2. Contracts of $150,000 or less may be awarded pursuant to the informal bidding procedures set forth in subsection (C) of this section.
3. Contracts of more than $150,000 shall be awarded pursuant to the formal bidding procedures set forth in subsection (D) of this section.
C. Informal Procurement Procedures.
1. Obtaining Written Quotations. Whenever feasible, at least three written quotations shall be obtained via mail, electronic mail, facsimile or hand delivery. All quotations received will be kept on file with the finance department.
2. Contract Award. Contract award shall be based upon the best value to the city, as defined in subsection (E) of this section, and may be based on criteria other than just price.
D. Formal Purchase Procedures.
1. Notice Inviting Bids. A notice inviting sealed bids, which describes the goods or nonprofessional services, the time and place for submission of bids, shall be published no later than 15 calendar days before the opening date of the bids. Notice shall be published in a newspaper of general circulation printed and published in the city or, if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance or policy as the places for placing public notices.
2. Opening Bids. Sealed bids shall be submitted to the city clerk or the department head initiating the bid process 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 shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
3. Contract Award. Contract award shall be based upon the best value to the city, as defined in subsection (E) of this section, and may be based on criteria other than just price.
4. Rejection of Bids. In its discretion, the city council may reject any bids presented. After rejecting all bids, the city council may either readvertise or adopt a resolution by a four-fifths majority declaring that the goods or services can be purchased at a lower price in the open market and may award the contract in the open market by negotiated contract without further complying with this section.
5. No Bids Received. If no bids are received, the project may be performed by employees of the city by force account, or negotiated contract without further compliance with this section.
6. Waiver of Defects. The city council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.
E. Criteria for determining the best qualified vendor shall include, but not be limited to, the following:
1. Cost to city.
2. Ability, capacity and skill of bidder.
3. Ability to meet time requirements.
4. Character, integrity and reputation.
5. City’s previous experience with the vendor.
6. Sufficiency of financial resources needed to perform.
7. Ability to provide future maintenance and service, if applicable. [Ord. 2018-196 § 2].
3.02.060 Contracts for professional services.
A. Contracts for professional services shall be awarded on the basis of demonstrated competence and professional qualifications for the satisfactory performance of the services required and the reasonableness of the cost of services:
1. Contracts of $150,000 or less may be awarded pursuant to the informal proposal procedures set forth in subsection (B) of this section.
2. Contracts of more than $150,000 shall be awarded pursuant to the formal proposal procedures set forth in subsection (C) of this section.
B. Informal Request for Proposal Procedure. Staff may submit a general email or letter request for proposals to select firms, which shall include, whenever possible, at least three firms. The RFP shall describe the services requested in general terms, how to obtain more detailed information, and state the time and place for submission of proposals.
C. Formal Request for Proposal Procedure. A request for proposals shall be mailed to prospective vendors no later than 10 calendar days before the scheduled date for opening the proposals. The RFP shall consist of a detailed description of the requested services and state the time and place for submission of proposals. A notice inviting the submission of proposals may be published in a newspaper of general circulation printed and published in the city or, if there is none, posted in the public places in the city that have been designated by ordinance as the places for placing public notices, if it is determined that such publication and/or posting will generate more responses to the request for proposals.
D. Review of Proposals and Selection of Vendor. The city’s policy shall be to award professional services contracts to vendors based upon the qualifications of the vendor and the reasonableness of the price. Criteria for determining the qualifications and reasonableness of proposals shall include, but shall not be limited to, the following:
1. Ability, capacity and skills necessary to perform service.
2. Ability to meet time requirements imposed by project.
3. Character, integrity and reputation through a reference check.
4. Previous experience with the vendor.
5. Sufficiency of financial resources needed to perform the services.
6. Reasonableness of cost. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-17)].
3.02.070 Inspection and testing.
The department requesting the contract shall inspect supplies and equipment delivered and services performed to determine their conformance with the specifications set forth in the order or contract. The department requesting the contract shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. [Ord. 2018-196 § 2; Ord. 2012-143 § 1; Ord. 2010-126 § 1 (Exh. A); Ord. 2005-079 § 1 (1-4-18)].
3.02.080 Exceptions.
The city manager may make any of the following procurements without complying with the procedures set forth in this chapter, as follows:
A. Emergency purchases of goods or services in accordance with Public Contract Code Section 22050 et seq.;
B. The goods, services, or public project can be obtained from only a single source;
C. The city council determines that competitive proposals would be unavailing and not produce an advantage, and the advertisement would be undesirable or impractical and not in the best interest of the city; or
D. Alternate purchasing procedures are required for compliance with federal purchasing requirements, including but not limited to CFR 200.317 through 200.326, and in such case the city shall apply the more stringent requirement. [Ord. 2018-196 § 2].
3.02.090 Cooperative purchases.
The city may, subject to any limits and policies set forth in this chapter, award a contract for goods or services by utilizing a contract by another public agency, including but not limited to cooperative purchase agreements, piggyback contracting, and multiple award schedules, provided the contract was awarded following a competitive selection process in compliance with California laws. [Ord. 2018-196 § 2].
3.02.100 Conflicts of interest.
The officers, employees, and agents of the city may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts, subject to any applicable standards for determining whether a financial interest is not substantial or a gift is an unsolicited item of nominal value. City officials and employees are subject to the prohibitions and limitations set forth in the city’s conflict of interest code and the regulations of the Fair Political Practices Commission (“FPPC”). [Ord. 2019-210 § 4; Ord. 2018-196 § 2].