Chapter 3.20
PURCHASING
Sections:
3.20.010 Adoption of purchasing system.
3.20.030 Support services division.
3.20.040 Manager of support services.
3.20.050 Exemptions from centralized purchasing.
3.20.065 Granting local business preference.
3.20.070 Informal bidding procedures.
3.20.080 Formal contract procedure.
3.20.090 Public works projects.
3.20.095 Design-build contracting for public works projects.
3.20.100 Inspections and testing.
3.20.110 Award to other than lowest responsible bidder.
3.20.120 General contracting authority.
3.20.125 Contracting for purchase of supplies, equipment, services, leases or rentals—Exemption.
3.20.130 Conflict of interest.
3.20.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies, equipment and services; to secure for the city, supplies, equipment and services at competitive prices, commensurate with the quality needed and with due consideration to disposability; to exercise positive financial control over purchases; to clearly define authority for the purchasing function; to assure the quality of purchases; and to buy without prejudice, a purchasing system is adopted. (Ord. 749 (part), 1995)
3.20.020 Definition of terms.
As used in this chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended:
(a) “Manager of support services” means the employee designated by the city manager to administer and enforce this chapter.
(b) “Activity or using agency” means any department, agency or other unit of city government which derives its support wholly or in part from the city.
(c) “Services” means any and all services, including but not limited to those furnished under equipment service contracts. This term neither includes services rendered by city officers or employees, nor professional nor other contractual services for which the procedures for obtaining such services are specifically provided by law or other procedures approved by the city council or are by their nature unique and not subject to competition.
(d) “Supplies and equipment” means any and all articles or things which shall be furnished to or used by any city department.
(e) “Purchases” means purchases of equipment, supplies and services and the purchasing, leasing or renting of equipment and other personal property.
(f) “Local bidder” means a firm or individual who regularly maintains a place of business and transacts business in, or maintains an inventory of merchandise for sale in, and is licensed by, or pays business taxes to the city.
(g) “Professional services” means the services of attorneys, physicians, architects, engineers, consultants, auditors, specialized printers, or other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill or expertise, not adaptable to competitive bidding, or where the service involves a contract for special activities, negotiations for the acquisition of land, trash disposal services, insurance, bonds or any other services of a similar nature required by the city for a particular project or series of projects.
(h) “Purchasing policy limit” means the dollar value limit for purchases made pursuant to the informal bidding procedures authorized in Section 3.20.070 of this chapter. Such purchasing policy limit shall be established by resolution of the city council.
(i) “Lowest responsible bidder” means a bidder offering the lowest bid price after the following criteria have been considered:
(1) The ability, capacity and skill of the bidder to provide the service required;
(2) Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;
(3) The reputation, character, integrity, judgment, experience and efficiency of the bidder;
(4) The bidder’s record of performance of previous contracts or services;
(5) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;
(6) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
(7) The quality, availability and adaptability of the equipment, supplies or service to the particular use required;
(8) As applicable, the ability of the bidder to provide future maintenance and service of the equipment requested by the contract;
(9) The number and scope of conditions attached to the bid.
(j) “Cooperative purchase contract” or “cooperative agreement” means a contract provided for the purchase of equipment, supplies and services at the lowest cost to the city through competitively solicited procurement agreements that are accessed by public agencies through a cooperative purchasing agency to make said purchases.
(k) “Piggyback contract” means that city has contracted for the purchase of equipment, supplies and services by utilizing a contract that has been directly awarded through a competitive bidding process by another government agency within three hundred sixty-five days of the original award date.
(l) “Public works contract” is a contract paid for in whole or in part utilizing public funds for the construction or improvement of public buildings, works, streets, drains, sewers, utilities, parks, playgrounds or other public improvement. (Ord. 1044 § 3, 2024; Ord. 749 (part), 1995)
3.20.030 Support services division.
There shall be a support services division within the administrative services department of the city in which authority for the centralized purchasing of equipment, supplies and services is vested. (Ord. 749 (part), 1995)
3.20.040 Manager of support services.
The responsibility and authority for purchases of equipment, supplies and services is vested in the position of manager of support services. The manager of support services shall be appointed by the city manager or designee. This position shall direct and supervise the city’s purchasing program. The manager of support services shall endeavor to obtain full and open competition to the extent reasonably possible in making all purchases. The manager of support services shall establish methods and procedures for the efficient and economical functioning of the purchasing program. The manager of support services shall have the authority to:
(a) Purchase or contract for equipment, supplies and services required by any department in accordance with the purchasing procedures prescribed by this chapter, such administrative procedures as the manager of support services may adopt for the internal management and operation of the support services division, and such other rules and regulations as shall be prescribed by the city council, the city manager, the director of administrative services or as otherwise provided by law;
(b) Negotiate and recommend the execution of contracts for the purchase of equipment, supplies and services;
(c) Procure for the city the necessary quality of equipment, supplies and services at the least expense to the city;
(d) Enter into any contract permitted by law, including but not limited to equipment service contracts, lease-purchase or lease and rental agreements, subject to any restrictions set forth in this chapter or otherwise imposed by the city council or the city charter, not prohibited by law;
(e) Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
(f) Recommend and maintain such forms as are reasonably necessary to perform the position;
(g) Maintain when feasible full and open competition among bidders in making all purchases;
(h) Recommend the transfer of surplus or unused supplies and equipment between departments, as needed, and arrange for the sale of all supplies and equipment which cannot be used by any department or which become unsuitable for the city’s use;
(i) Maintain a bidder’s list, vendor’s catalog file and such other records necessary for the efficient operation of the support services division;
(j) Prepare, recommend and implement procedures governing the purchase of equipment, supplies and services for the city and recommend revisions and amendments where applicable;
(k) Manage and supervise the city’s central warehousing facility. (Ord. 749 (part), 1995)
3.20.050 Exemptions from centralized purchasing.
In addition to the manager of support services, the city manager may authorize any officer or employee in writing to purchase or contract for specific equipment, supplies and services; however, such purchases or contracts shall be made in conformity with the procedures established by this chapter and may, within the city manager’s discretion, further require periodic reports from such officer or employee regarding the purchase and contracts made under such authorization. (Ord. 749 (part), 1995)
3.20.060 Bidding.
Purchases of equipment, supplies or services shall be by bid process pursuant to Sections 3.20.070 and 3.20.080. Bidding may be dispensed with when one of the following conditions applies:
(a) When an emergency requires that an order be placed with the most immediate available source of supply or service;
(b) When a procurement of any equipment, supply or service is obtainable from only a single or sole source, and not adaptable to competitive bidding, the manager of support services, upon approval of the city manager, may negotiate with the vendor of such equipment, supply or service to purchase, or lease or rent where applicable, any such equipment without following the procedures prescribed herein. Any equipment, supply or service shall be deemed to be obtainable from only one source when only one vendor or service provider is willing or capable of supplying same within the time frame and/or under the terms and conditions which reasonably meet the needs of the using department or agency, or when there is only one distributor or manufacturer of a product or service such that there is no acceptable substitute within the reasonable geographical area of the city;
(c) When there is to be a contract for professional services;
(d) Public Contract Code Section 10324 authorizes the Department of General Services to the state of California to make purchases of materials, equipment or supplies on behalf of the city in those instances where the purchases can be made by the Department of General Services upon the same terms, conditions and specifications at a purchase price lower than that which the city can obtain through its normal purchasing procedures. In such instances, the manager of support services is authorized to purchase through the Department of General Services;
(e) Whenever equipment, supplies and services can be purchased at the least cost to the city by making purchases through cooperative purchase contracts and/or in concert with other public agencies, the manager of support services is authorized to make the purchases without complying with the provisions of Sections 3.20.070 and 3.20.080;
(f) When the purchase can be made via piggyback contract, is beneficial to the interest of the city and is from a supplier who has been awarded a contract to sell a specific equipment, supply or service in a contract resulting from a formal competitive bid by another governmental agency in the state of California or by the federal government within the period of the past three hundred sixty-five days. Purchases made using piggyback contracts shall be subject to the purchasing limits and approval standards set forth within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.040(B), Piggyback Contracts (or successor section);
(g) When purchasing from or selling to another governmental agency where such action is beneficial to the interests of the city;
(h) When the city council determines it would be in the best interest of the city to dispense with bidding; provided, however, that the city council shall make findings for the basis of its determination;
(i) When there is a breakdown in essential machinery, essential services, or when unforeseen circumstances arise including delays by contractors, delays in transportation, and an unanticipated volume of work which requires the immediate attention of a professional or immediate service/repair in order to protect public health, safety or welfare;
(j) When the cost of the item does not meet the minimum bidding threshold as set forth within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.040, Decentralized Purchasing and Bidding Requirements (or successor section);
(k) When the purchase is for one of the following goods or services:
(1) Annual services agreement(s) for existing equipment and/or computer applications;
(2) Travel-related expenses;
(3) Utility user fees, including natural gas, electricity, telephone, internet service, cable television and water;
(4) Insurance claims;
(5) Legal settlements;
(6) United States Post Office services and postage;
(7) Package courier and shipping fees;
(8) Professional memberships and subscriptions and educational training;
(9) Food and drinks, catered or purchased separately, including food service tips not to exceed fifteen percent of the food and drink service charge;
(10) Artist fees associated with performances at Cerritos Center for the Performing Arts, Cerritos Library, and other city-sponsored events;
(11) Advertising channels and media outlets;
(12) Other mandated expenditures;
(13) Any other purchase for specific goods or services listed in the City of Cerritos Purchasing and Contracting Policy, Section 8.03.040(C), Bidding Exemptions (or successor section). (Ord. 1044 § 4, 2024; Ord. 749 (part), 1995)
3.20.065 Granting local business preference.
A local business which responds to a bid solicitation by the city for the purchase of equipment, supplies or services required for public use shall be granted a credit of one percent of its submitted bid in the city’s determination of lowest and most responsible bidder.
In the case of a bid submitted by a business located within the city, for the purpose of bid comparison only, the city shall reduce the amount of said bid by one percent. (Ord. 749 (part), 1995)
3.20.070 Informal bidding procedures.
The purchase of equipment, supplies and services within the purchasing limit determined and established by the city council by resolution and set forth within the City of Cerritos Purchase and Contracting Policy, Section 8.03.060, Informal Bid Process (or successor section), may be made by the manager of support services by an informal bid process according to the following procedures:
(a) Minimum Number of Bids. Informal bid purchases shall be based on at least three bids whenever reasonably possible. Upon examination of all bids and determination of the most competitive bidder the contract shall be awarded to the lowest responsible bidder.
(b) Notice Inviting Informal Bids. The manager of support services may solicit informal bids by written requests to prospective vendors, via fax machine, by telephone or by any other means deemed reasonably appropriate.
(c) Written Bids. Written informal bids shall be submitted to the manager of support services, who shall keep a record of all informal bid orders and bids for a period of one year after the submission of bids or the placing of an order. Such records, while so kept, shall be open to public inspection. This procedure, however, shall not be construed to conflict with the duties and responsibilities of city clerk as specified in the city charter.
(d) Waiver of Defects. The manager of support services may waive any irregularity or informality so long as such waiver does not conflict with other provisions of the city’s charter, codes or the law. (Ord. 1044 § 5, 2024; Ord. 749 (part), 1995)
3.20.080 Formal contract procedure.
Except as otherwise provided in this chapter, purchases of equipment, supplies or services having an estimated value greater than the amount established by the city council by resolution and set forth within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.070, Formal Bid Process (or successor section), shall be by written contract with the lowest responsible bidder according to the following procedures:
(a) Notice Inviting Bids. Notices inviting bids shall include a specific description of the supply or service to be purchased, shall state where bid proposals and specifications may be secured, and the time and place of bid opening.
(1) Published Notices. Notices inviting bids shall be published at least ten days before the date of opening the bids. Notices shall be published at least once in a newspaper of general circulation, and pursuant to any requirements as may apply in the city charter.
(2) Bidder’s List. The manager of support services shall also solicit sealed bids from responsible prospective suppliers whose names are on the city’s bidder’s list.
(b) Bidder’s Security. When deemed necessary by the manager of support services, bidder’s security may be required in the public notices inviting bids. Bidders shall be entitled to a refund or release of any bid security, provided that a successful bidder shall forfeit the bid security by refusing or otherwise failing to execute a contract with the city within ten days after a notice of award has been mailed or such other time agreed upon in writing by both the bidder and city, unless the city is responsible for the delay. The city council may, upon the refusal or failure of the successful bidder to execute a contract, award a contract to the next lowest responsible bidder. In such case, the amount of the original lowest successful bidder’s security shall be applied by the city to the contract price differential between the lowest bid; the surplus, if any, shall be returned to the original lowest successful bidder. If the city council rejects the remaining bids presented and readvertises to solicit for bids, the amount of the original lowest successful bidder’s security may be used to offset the cost of receiving new bids and the price or prices in the awarded contract by the city and the surplus, if any, shall be returned or released to the original lowest bidder.
(c) Bid Opening Procedure. Sealed bids shall be submitted to the city clerk and shall be identified as “Bid” on the envelope. Bids shall be opened in public at the time and place designated in the public notice. In the case of a bid submitted by a local bidder, as defined in Section 3.20.020(f) of this chapter, the manager of support services shall, for the purpose of bid comparison only, reduce the amount of such bid by one percent. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.
(d) Council Review. Formal bid award recommendations shall be presented to the city council for consideration by the city manager or designee.
(e) Rejection of Bids. The city council may, within its sole discretion, reject any and all bids presented, readvertise for bids or authorize the manager of support services to award a contract through negotiation in order to obtain the most reasonable price. The right to reject any or all bids is expressly reserved to the city council or, prior to requested council action, the city manager.
(f) Award of Contracts. Except as otherwise provided in this chapter, contracts exceeding the formal bid limit shall be awarded by the city council to the lowest responsible bidder.
(g) Tie Bids. If two or more bids are for the same total amount or unit price, and the quality and service being offered are equal, the city council may, within its sole discretion, accept one of the bids or direct that the manager of support services negotiate with both bidders and select the bidder offering the lowest overall price, or reject all bids and readvertise for bids.
(h) Performance Bonds. The city council shall have authority to require that bidders furnish a performance bond before the city enters into a contract in such amount as the city council shall deem reasonably necessary to protect the interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the request for bid or proposal and the form thereof shall be approved by the city attorney.
(i) Waiver of Defects. The city council may waive any irregularities or informalities in the bidding process or the procedure set forth in the ordinance codified in this chapter, unless otherwise prohibited by law. No such waived irregularity or informality shall be grounds for voiding any contract. (Ord. 1044 §§ 6, 7, 2024; Ord. 749 (part), 1995)
3.20.085 Bidder’s protest.
Bidders may file a written protest of a bid with the city clerk’s office within five calendar days of bid opening. The protest must be filed in accordance with the terms set forth within the City of Cerritos Purchasing and Contract Policy, Section 8.03.090, Filing of Bid Protests (or successor section). (Ord. 1044 § 8, 2024)
3.20.090 Public works projects.
Public projects, as defined by California Public Contract Code Section 20161, or subsequent amendments thereof, shall be advertised, bid, and awarded as public works contracts, in accordance with Article IX, Section 905 of the City Charter and applicable sections of California Public Contract Code, except as provided in Chapter 8.03 (Purchasing and Contracting Policy) of the City of Cerritos Policy and Procedure Manual and in Section 3.20.095 regarding design-build contracts.
Public projects shall be subject to the expenditure approval and authorization requirements as set forth within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.150, Public Works Contracts (or successor section).
Public projects for the construction, resurfacing, maintenance or repair of streets, drains, or sewers are exempt from the requirements of the Cerritos City Charter, Section 905, if such work is performed by a qualified on-call contractor under contract with the city, or the city or county of Los Angeles. (Ord. 1044 § 9, 2024; Ord. 1016 § 2, 2017: Ord. 749 (part), 1995)
3.20.095 Design-build contracting for public works projects.
Notwithstanding any provision of the California Public Contract Code or any other city ordinance, procedure, or policy, the city may use the design-build project delivery process for public works projects, regardless of their estimated value. Design-build contracts shall be advertised, bid, and awarded as follows:
(a) Prior to selecting a design-build contractor, the city shall issue a request for proposals detailing the terms, conditions, and scope of the project, and clearly stating the minimum qualifications that a prospective contractor must possess to be deemed responsive. The city may also elect to prequalify prospective contractors and solicit proposals only from those contractors that have been prequalified. A request for qualifications issued for such purposes may include any criteria deemed relevant by the director of public works; provided, that such criteria are reasonable and objective and allow for an accurate and impartial comparison of contractors seeking prequalification.
(b) The contract award shall be made to the lowest responsible bidder, as defined in Section 3.20.020(i), following negotiation, as desired, with the top-ranked prospective contractor concerning price, scope, schedule, or any other relevant matters. If an agreement is not reached with the top-ranked prospective contractor, the city may enter into negotiations with the second-ranked prospective contractor, and so on, until an agreement is reached.
(c) The city council shall award to the contractor whose proposal is determined to be most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals.
(d) Notwithstanding any other provision herein, the city, in its sole discretion, may elect to reject all proposals or elect not to prequalify any prospective contractors. (Ord. 1016 § 3, 2017)
3.20.100 Inspections and testing.
The manager of support services or such person designated by the manager of support services shall inspect the equipment and supplies furnished to the city to assure compliance with the contract. The manager of support services shall have authority to require chemical or physical testing of samples submitted with bids and testing of samples of equipment and supplies delivered to the city when deemed reasonably necessary to determine the quality of and compliance with the requirements of the contract. (Ord. 749 (part), 1995)
3.20.110 Award to other than lowest responsible bidder.
Any provision of this chapter to the contrary notwithstanding, equipment, supplies or services may be purchased from other than the lowest responsible bidder where the city council shall find that under the circumstances applicable to the particular purchase, including but not limited to the inconvenient location of the vendor, the burden on staff if required to administrate the contract, or a purchase can be made at a lower net cost by effecting the purchase from a party other than the lowest responsible bidder. (Ord. 749 (part), 1995)
3.20.120 General contracting authority.
(a) City Manager Contracting Authority. The city manager shall have the authority to approve and execute contracts for the acquisition of equipment, materials, supplies, labor, nonprofessional services, public works contracts or other items based upon the authorization limits and authority established within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.190, General Contracting Authority (or successor section).
(1) The city manager may delegate contracting authority and modify or terminate contracts based upon the authority established within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.210, Authority to Contract (or successor sections).
(b) City Council Contracting Authority. The city council will have the sole authority to approve, and the mayor or designee shall have the authority to execute, contracts for the acquisition of equipment, materials, supplies, labor, nonprofessional and professional services, public works contracts or other items that exceed the contracting thresholds established within the City of Cerritos Purchasing and Contracting Policy, Section 8.03.190 (or successor section).
(1) The city council will have the sole authority to approve, and the mayor or designee shall have the authority to execute, contracts for the sale or lease of city-owned real property, regardless of the amount of the contract. (Ord. 1044 § 10, 2024)
3.20.125 Contracting for purchase of supplies, equipment, services, leases or rentals—Exemption.
The city manager or designee may contract for equipment, supplies, services, leases or rentals of equipment without observing the procedures required in this chapter, regardless of estimated value of such supplies, equipment, services, leases or rentals, where the city council has determined it is in the best interest of the city to do so. Whenever the city council approves the purchase of equipment, supplies, services, leases or rentals without observing the procedures required in the ordinance codified in this chapter, the city council may require that the manager of support services solicit informal bids under such conditions and limitations as the city council may impose. This section shall not apply to public works projects. (Ord. 1044 § 10, 2024; Ord. 749 (part), 1995. Formerly 3.20.120)
3.20.130 Conflict of interest.
Matters relating to potential conflicts of interest, including financial conflicts of interest, shall be subject to the requirements and standards set forth within Article VI, Section 606—Illegal Contracts, Financial Interest—of the Cerritos City Charter, and any applicable state or federal laws. (Ord. 1044 § 11, 2024)