Chapter 3.10
PURCHASING
Sections:
3.10.030 Purchasing authority; public projects.
3.10.040 Purchasing authority; services, supplies and equipment.
3.10.050 General policy; emergency purchases.
3.10.060 Bidding regulations for purchases requiring bids that are not public projects.
3.10.080 Waiver of bidding regulations.
3.10.090 Bid splitting not permitted.
3.10.010 Purpose of article.
The purpose of this article is to establish a policy to achieve maximum economy and efficiency in the purchase or sale of supplies, services, and equipment, to include bidding regulations and the disposal of surplus materials, and to define the authority for the purchasing and contracting function.
(Code 1965, § 2311; Code 2002, § 2-641. Ord. No. 1001; Ord. No. 11-9)
3.10.020 Definitions.
For purposes of this article, unless the context clearly indicates otherwise, the following words and phrases have the meanings given in this section:
Bid. A solicitation made by the city to potential vendors requesting costs to provide services, supplies or equipment to the city. A bid may be classified as “formal” or “informal.”
Contract. A written agreement between the city and a vendor or contractor to provide goods, supplies, equipment, and or services. The terms “contract” and “agreement” are synonymous. The term “contract” includes, but is not limited to, a purchase order, a contract for services, an addendum or change order, a letter agreement, or a memorandum of understanding.
Cooperative Purchasing. A combining of the needs of multiple governmental agencies into a single solicitation of bids.
Emergency. A sudden, unforeseen occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss of impairment of life, health property, or essential public services.
Equipment. Any and all articles and tangible property furnished to or used by the city. Includes, but is not limited to, all equipment, tools, furnishings, and fixtures.
Formal Bid. A procedure to solicit bids requiring a written document officially noticed and distributed as widely as possible with specific instructions regarding due date and format for written response. A formal bid is usually used for more expensive and more complicated purchases.
Informal Bid. A procedure by which the city can solicit cost quotes for less complicated and less expensive purchases. The informal bid may be solicited either in writing or orally, though the documentation of the results is written.
Master professional services agreement. A master professional services agreement is an agreement for professional services with a single person or entity that performs a variety of professional services over the course of the term of the agreement by issuance of Task Orders. Such agreements shall not be in an amount less than $100,000 for the term of the agreement and shall be approved by the City Council.
Piggyback contract. A contract entered into by means of placing a purchase order based on an existing contract of another public agency.
Price. Obtaining, with competition from vendors and contractors, the best value possible for the quality and quantity needed, the service required, the service to be rendered, and the delivery date.
Professional services. Services which involve the exercise of professional discretion and independent judgment based on an advanced or specialized knowledge, expertise or training gained by formal studies or experiences. Such services include but are not limited to the services of appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians, and other specialized consultants.
Quality. A quality achieved through appropriate specifications and inspection of supplies and services received for conformance to specifications.
Quantity. The result of evaluating a combination of the factors of consumption, delivery schedules, and prices.
Services. Any work performed or services rendered by an independent contractor, with or without the furnishing of materials. Includes labor and other services, except employment contracts pursuant to a budget-authorized position.
Supplies. Any and all consumable articles and tangible property furnished to or used by the City. Includes all supplies and materials.
Value. A concept to be applied in determining the lowest responsive bidder, which includes price, quality, quantity, and the ability of the bidder to perform the contract or order and to provide future maintenance or repairs.
(Code 1965, § 2312; Code 2002, § 2-642. Ord. No. 1001; Ord. No. 92-9; Ord. No. 98-3; Ord. No. 11-9)
3.10.030 Purchasing authority; public projects.
The City Council authorizes and approves the following bidding procedures for Public Projects:
(1) Informal and formal bidding procedures. Public Projects, as defined by Public Contract Code § 22002 and in accordance with the monetary limits described in Public Contract Code § 22032 as amended from time to time by the California Uniform Construction Cost Accounting Commission (hereby further referred to as Commission) shall be let to contract by procedures described in Public Contract Code § 22030 et seq., unless Commission notified of suspension by City Resolution.
(2) Procedures not established by the California Uniform Construction Cost Accounting Act (Act). When the Act does not establish a procedure for bidding Public Projects, the procedure described in Public Contract Code § 20160 et seq. shall govern.
(3) Award to low bidder; no bids. All contracts must be awarded to the lowest responsive bidder. If two (2) or more bids are the same and lowest, the city may accept the one it chooses. When no bids are received, the city may perform Public Projects with city employees or through a negotiated contract without further complying with this Article.
(4) Notice inviting informal bids. When a Public Project which is anticipated to fall within the monetary limits of informal bids described in Public Contract Code § 22032 (as amended from time to time by the Commission) is to be performed, the city shall prepare a notice of the opportunity to bid which describes the project in general terms, states the time and place for the submission of bids and describes how to obtain more detailed information about the Project. The city shall mail the notice to all construction trade journals as specified by the Commission in accordance with Public Contract Code § 22036. Other contractors and/or construction trade journals may also be notified at the discretion of the department soliciting bids. Mailing shall be completed at least ten (10) days before bids are due.
(5) Submittal of informal bids. Informal bids shall be submitted to the City Clerk at the time and place as stated in the call for bids. The City Clerk shall retain submitted bid bonds, cash or cashier’s checks in lieu of a bid bond.
(6) Award of informally-bid contracts. The City Manager is authorized to award informal contracts as defined in Public Contract Code § 22032, except those described in subsection (13). Following award of informal contracts, the successful bidder shall submit all required bonds and insurance documents to the City Clerk. The City Clerk shall release bid bonds, cash or cashier’s check in lieu of bid bond, to the unsuccessful bidder(s) following award of contract to the successful bidder.
(7) Bids exceeding informal bidding limit. If all informal bids received exceed the monetary limits prescribed for informal bids as described in Public Contract Code § 22032 (as amended from time to time by the Commission) and the city determines that the cost estimate was reasonable, the city may award the contract at up to the limit described in Public Contract Code § 22034, subdivision (f), by a Resolution approved by a four-fifths (4/5) vote of the City Council.
(8) Bid documents for formal bids. The City Council shall adopt plans, specifications and working details for all Public Projects which are anticipated to fall outside the monetary limits of informal bids as described in Public Contract Code § 22032 (as amended from time to time by the Commission).
(9) Notice inviting formal bids. When a Public Project which is anticipated to fall outside the monetary limits on informal bids described in Public Contract Code § 22032 (as amended from time to time by the Commission) is to be performed, the city shall publish a notice inviting formal bids in a newspaper of general circulation as described in Public Contract Code § 22037. The notice shall also be mailed to all construction trade journals as specified by the Commission in accordance with Public Contract Code § 22036. Other contractors and/or construction trade journals may also be notified, at the discretion of the department soliciting bids. Mailing shall be completed at least thirty (30) days before bids are due. Formal bids shall be submitted to the City Clerk at the time and place as stated in the call for bids.
(10) Proprietary product or service. Notwithstanding subsections (3) and (6), if the product or service is proprietary in nature, such that it can be legally obtained only from a certain contractor(s) pursuant to Public Contract Code § 3400, the notice inviting informal bids may be sent exclusively to such contractor(s).
(11) Contracts for maintenance and other work. Contracts for Maintenance, as defined by Public Contract Code § 22002, and for any other work which does not fall within that section’s definition of Public Projects, may be bid pursuant to the informal bidding procedures described in subsection (4) and the formal bidding procedures described in subsection (8).
(12) Rejection of bids; re-solicitation; use of city employees. If the city intends to reject all bids, all bidders must be mailed a written notice of the City’s intent to reject all bids at least two (2) business days prior to the hearing at which the bids will be considered.
After rejecting the bids, the city may:
a. Abandon the project;
b. Re-advertise the project; or
c. Perform the work with city employees, after adoption of a Resolution by a four-fifths (4/5) majority vote of the City Council declaring that the project can be performed more economically by city employees.
(13) Emergency procedures. When an emergency necessitates repair or replacement, contracts shall be awarded pursuant to the procedures described in Public Contract Code §§ 22035 and 22050.
(14) Uniform cost accounting procedures. Whenever the city uses its own employees to perform a public works or maintenance project valued at more than the monetary limit on informal bidding described in Public Contract Code § 22032 (as amended from time to time by the Commission) it must implement the Uniform Construction Cost Accounting Policies and Procedures described in Public Contract Code § 22042 et seq. and the Commission’s policies and procedures manual.
(Code 1965, § 2313; Code 2002, § 2-643. Ord. No. 1001; Ord. No. 89-8; Ord. No. 92-9; Ord. No. 07-4; Ord. No. 11-9)
3.10.040 Purchasing authority; services, supplies and equipment.
(a) The city shall establish the minimum threshold over which City Council approval is required. This amount shall be established by resolution on an annual basis.
(b) City Council approval shall be required for all purchases of supplies, equipment and professional services, consulting, and other services contracts which provide for remuneration exceeding the amount established in accordance with subsection 3.10.040(a) to the same vendor within any fiscal year regardless of funding source or type of service, with the following exceptions:
(1) Consulting or professional services contracts necessitated by an emergency may be approved and executed by the City Manager or his designee. Such contracts shall be presented for Council confirmation following City Manager approval.
(2) Legal services for prosecution or defense of claims or lawsuits may be authorized by the City Attorney. The City Attorney will notify the City Council following retention of litigation counsel.
All professional service contracts, consulting contracts, and other services contracts not subject to the preceding exceptions exceeding the amount established in accordance with subsection 3.10.040(a) shall be by agreement only.
(c) The City Manager serves as Purchasing Officer of the city, and subject to subsections (a) and (b) of this section and the availability of funds, may award and execute any contract or purchase order for supplies, services, or equipment, or any combination thereof, may declare supplies or equipment as surplus and may assign purchasing duties to other city employees.
(1) The Purchasing Office may delegate and/or assign to other city employees authority to:
a. Solicit bids as necessary;
b. Execute purchase orders subject to the limitations of subsection (a) of this section; and
c. Sell, trade in, or otherwise dispose of supplies or equipment declared to be surplus or obsolete appropriate to the circumstances. The sale or donation of surplus personal property to a governmental, public, quasi-public, or charitable agency may be made without sale in the open market. Surplus goods or equipment with no salvage value, as determined by the Purchasing Officer or designee, may be disposed of in a manner that salvages recyclable components, if practical.
(d) The City Attorney shall approve as to form and content, all contracts (excluding purchase orders), insurance, faithful performance bonds, and labor and materials bonds.
(e) The Director of Finance, or designated representative, shall endorse upon all contracts, purchase orders, or other applicable documents indicating that funds are available to support the expenditure.
(f) The original of all contracts entered into by the city, fee class instruction contracts, and employment contracts, shall be provided to and retained by the City Clerk’s Office.
(Code 1965, § 2314; Code 2002, § 2-644. Ord. No. 1001; Ord. No. 11-9; Ord. No. 89-8)
3.10.050 General policy; emergency purchases.
(a) Purchases shall be made in the quality, quantity, and at the price needed to fulfill but not exceed the using department’s requirements.
(b) It is recognized that emergency situations may arise that affect the public health, welfare, and safety and require purchases without resorting to this policy. The City Manager is authorized to establish conditions whereby department heads shall be authorized to purchase supplies, equipment, and services to remedy limited emergency conditions. The City Council shall be notified and shall ratify emergency purchases exceeding the formal bid limit established by City Council Resolution under subsection 3.10.040(a).
(Code 1965, § 2315; Code 2002, § 2-645. Ord. No. 1001; Ord. No. 98-3; Ord. No. 11-9)
3.10.060 Bidding regulations for purchases requiring bids that are not public projects.
(a) Small procurements. Purchases of services, supplies, and/or equipment in any fiscal year with a value less than the bid limit established by City Council Resolution under subsection 3.10.040(a), exclusive of sales tax or use tax, in any fiscal year, may be purchased without obtaining competitive bids or quotes with Department Head or designee approval.
(b) Informal competitive bids. Purchases of services, supplies and/or equipment in any fiscal year with a value below the amount established by City Council Resolution under subsection 3.10.040(a) exclusive of sales or use tax, may be purchased with City Manager or designee approval according to the following procedures:
(1) Whenever possible and practical, the purchase shall be based on at least three quotations. The department shall solicit quotations by written request (including facsimile or electronic mail) or by telephone to prospective vendors. If feasible, at least one local vendor must be solicited. The department shall provide a record of all orders and quotes to the Purchasing Officer or designee, who shall retain the records for a period of two years after the submission of quotes or placing of orders.
(2) For a purchase of up to the amount determined by the Purchasing Officer, not to exceed the amount established by City Council Resolution under subsection 3.10.040(a), the quotations shall be written, whenever practicable (including facsimile and electronic mail). The City Manager shall award the contract to the quotation representing the best value as defined in subsection 3.10.070(e). If no bid, or no responsive bid, is received after inviting quotations under this section, the Department Head may, with the City Manager’s approval, proceed to hire or have services performed or purchase the goods in the open market within thirty (30) days.
(c) Exceptions. The quotation procedure under this section may be dispensed with under any exception set forth in section 3.10.080.
(Code 1965, § 2316; Code 2002, § 2-646. Ord. No. 1001; Ord. No. 98-3; Ord. No. 11-9)
3.10.070 Formal competitive bids; bidding regulations for purchases over threshold established by City Council Resolution.
(a) Advertising for bids. Where the cost of services, supplies, and/or equipment required by the city exceeds the sum of the amount as established by City Council Resolution under subsection 3.10.040(a) exclusive of sales or use tax, the Purchasing Officer shall call for bids by posting at the Civic Center or other designated location or by advertising at least once in a daily newspaper of general circulation circulated in the city or county not less than five calendar days prior to the date set for opening bids. Awarding bids and approval of contracts for services exceeding the amount as established by City Council Resolution under subsection 3.10.040(a) shall be by the City Council pursuant to subsection 3.10.040(b).
(b) Bidder’s security. The Purchasing Officer may require the bidder to submit bid security.
(c) Opening of bids. All sealed bids, identified as such on the envelope, shall be submitted to the Purchasing Officer or other designated representative. Bids shall be opened in a public setting at the time and place stated in the call for bids.
(d) Rights reserved. The city reserves the right to reject any or all bids and to waive informalities, minor irregularities, and minor variations from specifications in bids received. The city may accept any item or group of items of any bid which will produce the most satisfactory results suited to the city’s requirements.
(e) Award of contract. The contract shall be awarded to the lowest responsive bidder. In determining the “lowest responsive bidder,” the city will apply the best value concept. Criteria for determining low bids shall include, but not be limited to, the following:
(1) The ability, capacity, and skill of the bidder to perform the contract or provide the supplies, services, or equipment required;
(2) The ability of the bidder to provide the supplies, services, or equipment promptly or within the time specified without delay or interference;
(3) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;
(4) The quality of the bidder’s performance on previous purchases or contracts with the city;
(5) The ability of the bidder to provide future maintenance, repair, parts, and services for the use of the supplies purchased.
(f) No responsive bids. If no responsive bids are received, the services performed or the supplies or equipment furnished may be obtained without further competitive bidding. The purchase must be made within thirty (30) days of the bid due date and time.
(g) Forfeiture of bid security. The contract shall be signed by the successful bidder and returned to the city, together with any required contract bonds, within ten calendar days after the contractor has received the contract. Failure to execute a contract and file acceptable bonds and certificates of insurance as specified in the contract shall be just cause for the annulment of the award and the forfeiture of the bidder’s security.
(h) Disposition of bid security. All bid securities and bid bonds of the unsuccessful bidders shall be returned at a time to be determined by the Purchasing Officer or designee following City Council award of the contract.
(Code 2002, § 2-647. Ord. No. 11-9)
3.10.080 Waiver of bidding regulations.
Bidding regulations may be waived by the Purchasing Officer, except as otherwise provided by law, when:
(1) Where an emergency situation exists and the public health, welfare, and safety of the city requires that an order be immediately placed with a source of supply;
(2) There is only one documented and verified vendor for the product or service;
(3) The city is participating in a cooperative purchase or piggyback of an existing contract. The Purchasing Officer or designee shall join with other public jurisdictions in cooperative purchasing plans or programs as determined to be in the city’s best interest. The Purchasing Officer or designee may also buy directly from a vendor at a price established by a competitive bid by another public jurisdiction in substantial compliance with sections 3.10.050 and 3.10.060, even if the city had not joined with that public agency in a cooperative purchase. The Purchasing Officer or designee may also purchase from the United States of America or any state, municipality, or other public corporation or agency.
(4) Contracts or purchase orders involving the obtaining of professional or specialized services, such as, but not limited to, services rendered by architects, attorneys, engineers, or other specialized consultants. Contracts exceeding the amount as established by City Council Resolution under subsection 3.10.040(a) shall be subject to the provisions of subsection 3.10.040(c).
(Code 2002, § 2-648. Ord. No. 11-9)
3.10.090 Bid splitting not permitted.
Splitting the purchase of goods or general services into smaller orders for the purpose of evading the competitive bidding provisions of this section is not permitted.
(Code 2002, § 2-649. Ord. No. 11-9)