Chapter 3.08
PURCHASING
Sections:
3.08.010 Adoption of a purchasing system.
3.08.020 Purchasing agent designated.
3.08.030 Purchases by city council—Competitive bidding.
3.08.040 Purchases of less than fifty thousand dollars—Procedure.
3.08.050 Exceptions to competitive bidding requirements.
3.08.060 Local preference for discretionary purchases.
3.08.080 Bidder responsibility.
3.08.110 Availability of sufficient funds.
3.08.120 Inspection and review.
3.08.130 Surplus supplies and equipment.
3.08.140 Splitting orders prohibited.
3.08.150 Exceptions—Public projects.
3.08.010 Adoption of a purchasing system.
A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services and equipment at the lowest possible cost commensurate with the level of quality required, to exercise financial control over purchases, and to clearly define authority for the purchasing function. (Ord. 662-2008 § 2 (part), 2008)
3.08.020 Purchasing agent designated.
The city manager is designated as purchasing agent. The city manager may delegate all or a portion of the duties of purchasing agent to any city staff member. The purchasing agent shall have the authority to:
A. Purchase or contract for supplies, services and equipment required by the city, in accordance with purchasing procedures established in this chapter;
B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;
C. Act to procure for the city the necessary quality in supplies, services, and equipment at the lowest cost to the city;
D. Prepare and recommend to the city council amendments to the purchasing rules;
E. Establish and maintain such forms as reasonably necessary to the purchasing function;
F. Supervise the inspection of all supplies, services, and equipment purchased to ensure conformance with specifications;
G. Recommend and oversee the sale or disposal of all supplies and equipment which cannot be used by the city, or which have become unsuitable for city use;
H. Maintain a bidder’s list and other records necessary for the efficient acquisition of goods and services. (Ord. 662-2008 § 2 (part), 2008)
3.08.030 Purchases by city council—Competitive bidding.
When the amount or value involved is at least fifty thousand dollars, the purchase or disposition of supplies, services and equipment shall be made by the city council through a competitive bid as specified in this section. When the amount or value involved is less than fifty thousand dollars and more than one thousand dollars, the purchase shall be made as specified in Section 3.08.040. Bids should be obtained from one or more vendors located within the city of Cloverdale whenever possible.
A. Notice inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid documents and specifications may be obtained, the time and place for bid openings, and whether bid deposit or bond, or other security, such as performance, payment, or maintenance bond, will be required.
B. Notice inviting bids shall be posted in at least three public places in the city that have been designated by ordinance as the place for posting public notices, at least ten days before the date of opening the bids.
C. The purchasing agent shall also solicit sealed bids from all responsible suppliers whose names are on any relevant bidder’s list and may advertise the notice inviting bids in appropriate publications and websites readily accessible to the public.
D. When required by law and when deemed necessary or appropriate by the purchasing agent or city council, any bidder may be required to submit a bid deposit or bond in an amount determined by the purchasing agent or city council. A successful bidder (and the bidder’s surety, if a bond is furnished) shall be liable for any damages upon the bidder’s failure to enter into a contract with the city.
E. When required by law and when deemed necessary or appropriate by the purchasing agent or city council, any person or entity entering into a contract with the city may be required to furnish a faithful performance deposit or bond, or other security, such as a payment or maintenance bond, in an amount determined by the purchasing agent or city council.
F. 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 for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.
G. In its sole discretion, the city council may reject all bids presented and readvertise for bids.
H. Contracts shall be awarded by the city council to the lowest responsible bidder that submitted a responsive bid, except as otherwise provided in this chapter.
I. If two or more responsive bids received from responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the city council may accept the lowest bid made by negotiation between the tie bidders and the purchasing agent at the time of the bid opening. (Ord. 751-2023 § 2, 2023; Ord. 662-2008 § 2 (part), 2008)
3.08.040 Purchases of less than fifty thousand dollars—Procedure.
Where the amount or value involved is more than one thousand dollars, but less than fifty thousand dollars, the purchase or disposal may be made by the purchasing agent, without written bid, and by informal quotes through telephone or mail inquiry, comparison of prices on file or otherwise. Every attempt shall be made to receive at least three price quotations. At the discretion of the purchasing agent, the competitive bid process specified in Section 3.08.030 may be used for the acquisition of goods and services where the value is more than one thousand dollars but less than fifty thousand dollars. (Ord. 751-2023 § 2, 2023; Ord. 662-2008 § 2 (part), 2008)
3.08.050 Exceptions to competitive bidding requirements.
Section 3.08.030, requiring competitive bidding, shall not apply to the following:
A. Contracts involving the acquisition of professional or specialized services, such as, but not limited to, services rendered by architects, attorneys, engineers, environmental engineers, environmental planners, surveyors, construction managers, economists, rate/housing study providers, bond counsel, bond underwriter, fiscal advisers, appraisers, attorneys, auditors, artists, collection services, software service providers, business entrepreneur trainers, and web design and development and other specialized consultants;
B. Where the city’s requirements can be met solely by a single proprietary article or process;
C. Where no bids have been received following bid announcement in accordance with this chapter;
D. When the amount involved is one thousand dollars or less;
E. When an emergency exists involving a sudden, unexpected occurrence or discovery of a condition or circumstance that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services;
F. Contracts for janitorial services for city buildings and facilities;
G. Contracts for maintenance and repair of buildings and facilities;
H. Contracts for maintenance and repair of public streets, including street sweeping;
I. When another public agency has administered a competitive bidding process within the past two years for the same or substantially similar supplies, services or equipment;
J. When the city council specifically waives the competitive bid process and authorizes staff to negotiate the purchase by a four-fifths vote. (Ord. 699-2015 § 1, 2015; Ord. 662-2008 § 2 (part), 2008)
3.08.060 Local preference for discretionary purchases.
To the extent permitted by applicable law, purchases that are exempt from competitive bidding pursuant to this chapter or other applicable law shall be made from suppliers or contractors located and/or doing business in the city, so long as the purchasing agent determines that the local supplier or contractor meets the city’s requirements. (Ord. 662-2008 § 2 (part), 2008)
3.08.070 Bid responsiveness.
In determining bid responsiveness, the purchasing agent and the city council shall consider whether the bid documents are completed as required and the bid generally conforms to the bidding requirements. The purchasing agent or city council may waive any bid nonconformities in accordance with applicable law. Any conditions or qualifications included with a bid may be a basis for the purchasing agent or city council determining the bid to be nonresponsive. (Ord. 662-2008 § 2 (part), 2008)
3.08.080 Bidder responsibility.
The following shall be considered in determining bidder responsibility pursuant to this chapter and applicable law:
A. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
B. The ability of the bidder to perform the contract or provide the service promptly, or within the time specified, without delay or interference;
C. The reputation and experience of the bidder;
D. The previous experience of the city with the bidder;
E. The prior and current compliance by the bidder with applicable law;
F. The sufficiency of the bidder’s financial and staffing resources for performing the contract or providing the service;
G. The quality, availability, and adaptability of the supplies or contractual services to the particular use required;
H. The ability of the bidder to provide future maintenance and service. (Ord. 662-2008 § 2 (part), 2008)
3.08.090 Recycled products.
Product purchases, whenever feasible, shall contain the highest amount of postconsumer and recovered materials practicable. In all cases, these products must meet reasonable performance standards, and be readily available at a competitive price. In addition, all equipment bought, leased or rented shall, wherever feasible, be compatible with the use of recycled products purchased by the city. (Ord. 662-2008 § 2 (part), 2008)
3.08.100 Purchase orders.
Purchases of supplies or equipment less than one thousand dollars do not require a purchase order. Purchases of supplies or equipment equal to or greater than one thousand dollars shall be documented by a purchase order prepared by the purchasing agent. The original copy shall be directed to the vendor and one copy shall be retained for the purchase order file. The final copy shall be directed to the department for whose benefit the purchase is being made to be used as a receiving report. (Ord. 699-2015 § 2, 2015: Ord. 662-2008 § 2 (part), 2008)
3.08.110 Availability of sufficient funds.
No purchase order shall be issued until it has been ascertained that there is to the credit of the department of the city for whose benefit such purchase is to be made a sufficient unappropriated balance in excess of all unpaid obligations to defray the amount of such order. (Ord. 662-2008 § 2 (part), 2008)
3.08.120 Inspection and review.
The purchasing agent shall require the inspection of supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications and requirements set forth in the order or contract. (Ord. 662-2008 § 2 (part), 2008)
3.08.130 Surplus supplies and equipment.
At such times as determined by the purchasing agent, reports shall be prepared showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have the authority to sell, trade or exchange all said supplies and equipment. Such sales will be made pursuant to Section 3.08.030. (Ord. 662-2008 § 2 (part), 2008)
3.08.140 Splitting orders prohibited.
It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter. (Ord. 662-2008 § 2 (part), 2008)
3.08.150 Exceptions—Public projects.
This chapter shall not apply to bids for public projects as defined by California Public Contract Code Section 20161 where the expenditure required exceeds the limit set by Public Contract Code Section 20162. Such public projects shall be carried out in accordance with applicable provisions of the California Public Contract Code and other applicable law. (Ord. 662-2008 § 2 (part), 2008)
3.08.160 Prevailing wages.
Potential bidders for purchases of supplies, services or equipment that are subject to the requirements of the California prevailing wage law in accordance with California Labor Code Section 1720 shall be notified of the applicability of prevailing wage requirements in the bid documents. (Ord. 662-2008 § 2 (part), 2008)