Chapter 2.20
PURCHASING DIVISION1
Sections:
2.20.030 Purchasing supervisor.
2.20.040 Filing estimates of requirements.
2.20.070 Unencumbered appropriation in account.
2.20.080 Bidding – Required – Exceptions.
2.20.090 Formal bid procedure – Generally.
2.20.100 Notice inviting bids.
2.20.120 Bid – Opening procedure.
2.20.170 Informal bid procedure.
2.20.175 Purchase – Professional and specialized services.
2.20.180 Purchase – Inspection and testing.
2.20.190 Disposition of surplus or obsolete supplies and equipment.
2.20.200 Joint bidding with other governmental entities.
2.20.210 Joint purchasing agreements with other governmental entities.
2.20.010 Adoption.
In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies and equipment 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, a purchasing system is adopted. (1964 Code § 20A.1.)
2.20.020 Purchasing division.
There is created a centralized purchasing division in the finance department which is vested authority for the purchase of supplies, services and equipment. (Ord. 1224 § 1, 1973; 1964 Code § 20A.2.)
2.20.030 Purchasing supervisor.
There is created the position of purchasing supervisor. The duties of purchasing supervisor may be combined with those of any other office or position. While the position of purchasing supervisor is unfilled, these duties generally are to be assumed by each individual department head. The purchasing supervisor shall have authority to:
A. Purchase or contract for supplies and equipment required by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the finance director shall adopt and such other rules and regulations as shall be prescribed by the city council or city manager;
B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment;
C. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;
D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;
E. Prepare and recommend to the finance director rules governing the purchase of supplies and equipment for the city;
F. Prepare and recommend to the finance director revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
H. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;
I. Supervise the inspection of all supplies and equipment purchased to ensure conformance with specifications;
J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use;
K. Maintain a bidders’ list, vendors’ catalog file and records needed for the efficient operation of the purchasing division. (Ord. 1232 § 2, 1973; Ord. 1224 § 1, 1973; 1964 Code § 20A.3.)
2.20.040 Filing estimates of requirements.
All departments shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time and for such future periods as the purchasing supervisor shall prescribe. (Ord. 1224 § 1, 1973; 1964 Code § 20A.4.)
2.20.050 Requisitions.
All departments shall submit requests for supplies and equipment to the purchasing supervisor by standard requisition forms. (Ord. 1224 § 1, 1973; 1964 Code § 20A.5.)
2.20.060 Purchase orders.
Purchase of supplies, services and equipment of estimated value greater than $1,000 shall be made only by purchase order. The city manager shall authorize purchases and contracts for supplies, services and equipment with an estimated value of $25,000 or less. The city council shall authorize all purchases and contracts for supplies, services and equipment with an estimated value greater than $25,000. (Ord. 07-1943 § 1, 2007; Ord. 00-1872, 2000; Ord. 1599 § 1, 1985; 1964 Code § 20A.6.)
2.20.070 Unencumbered appropriation in account.
Except in cases of emergency, the finance director shall not issue any purchase order for supplies, services, and equipment unless there exists an unencumbered appropriation in the fund cost center against which such purchase is to be charged. (Ord. 00-1872, 2000; Ord. 1224 § 1, 1973; 1964 Code § 20A.7.)
2.20.080 Bidding – Required – Exceptions.
A. Purchase of supplies, services, or equipment shall be by bid procedures pursuant to CMC 2.20.090 through 2.20.170.
B. Procurement by noncompetitive proposals may be made only when at least one of the following circumstances applies:
1. The supply, service or equipment is available from only one source;
2. The public exigency or emergency for the supply, service or equipment will not permit a delay resulting from competitive solicitation;
3. After solicitation of a number of sources, competition is determined inadequate;
4. The amount involved is $10,000 or less; or
5. The services being procured are professional or specialized services as identified within CMC 2.20.175. (Ord. 07-1943 § 2, 2007; Ord. 03-1897 § 1, 2003; Ord. 00-1872, 2000; Ord. 92-1742 § 1, 1992; 1964 Code § 20A.8.)
2.20.090 Formal bid procedure – Generally.
Except as otherwise provided by federal and state statutes and herein, purchases and contracts for supplies, services and equipment of estimated value greater than $25,000 shall be by written contract with the lowest responsible bidder pursuant to the formal bid procedure prescribed in CMC 2.20.100 through 2.20.160. (Ord. 07-1943 § 3, 2007; Ord. 00-1872, 2000; Ord. 1599 § 2, 1985; Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.100 Notice inviting bids.
A. Notice inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.
B. Notice inviting bids shall be published at least 10 days before the date of opening of bids. Notice shall be published at least twice in a newspaper of general circulation, printed and published in the city. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.110 Bidder’s security.
A. All bids shall be presented under sealed cover and accompanied by one of the following forms of bidder’s security:
1. Cash;
2. Cashier’s check made payable to the city;
3. A certified check made payable to the city;
4. A bidder’s bond executed by an admitted surety insurer, made payable to the city.
B. The security shall be in an amount equal to at least 10 percent of the amount bid. A bid shall not be considered unless one of the forms of bidder’s security is enclosed with it. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
C. The finance director may waive the requirement of bidder’s security in requests for supplies, services and equipment of less than $100,000 if the result of doing so would encourage additional parties to participate in the competitive bidding process. (Ord. 07-1943 § 4, 2007; Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.120 Bid – Opening procedure.
Sealed bids shall be submitted to the city clerk and shall be identified as bids on the envelope. Bids shall be opened at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.130 Bid – Rejection.
In its discretion, the city council may reject any and all bids presented and readvertise for bids. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.140 Award of contracts.
Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.150 Tie bids.
If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bids made by negotiation with the tie bidders at the time of the bid opening. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.160 Performance bonds.
Before entering into a contract, the city council may require a performance bond in such amount as it finds reasonably necessary to protect the best interests of the city. (Ord. 1224 § 1, 1973; 1964 Code § 20A.9.)
2.20.170 Informal bid procedure.
Purchases of supplies, services and equipment of an estimated value greater than $10,000 and equal to or less than $25,000 may be made by utilizing informal bids without observing the formal bid procedure prescribed by CMC 2.20.090 through 2.20.160.
A. Informal bid purchases shall, wherever possible, be based on at least three bids and shall be awarded to the lowest responsible quote.
B. Bids shall be solicited by written requests to prospective vendors or by telecommunications.
C. A record of bids shall be kept for a period of one year after the submission of the bids or the placing of the orders. This record, while so kept, shall be open to public inspection. (Ord. 07-1943 § 5, 2007; Ord. 00-1872, 2000; Ord. 1599 § 3, 1985; Ord. 1224 § 1, 1973; 1964 Code § 20A.10.)
2.20.175 Purchase – Professional and specialized services.
Purchase of professional and specialized services by persons, firms, companies, or corporations (including, but not limited to, architecture, landscape architecture, engineering, environmental, land surveying, legal, accounting or construction management) shall be made on the basis of demonstrated competence and experience of the service provider and on the professional qualifications necessary for the satisfactory performance of the services required. The purchasing supervisor shall attempt to obtain information relating to prices and availability of such professional or specialized services from different sources prior to making the purchase; however, neither formal nor informal bidding shall be required prior to the purchase of professional or specialized services. (Ord. 03-1897 § 2, 2003.)
2.20.180 Purchase – Inspection and testing.
The purchasing supervisor shall have the authority to require supplies and equipment tested to determine their compliance with the specifications set forth in the order or contract. The purchasing supervisor shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and compliance with specifications. (1964 Code § 20A.11.)
2.20.190 Disposition of surplus or obsolete supplies and equipment.
All using departments shall submit to the finance director, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The finance director shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for or trade in the same on new supplies and equipment. Such sales shall be made pursuant to CMC 2.20.090 through 2.20.160 or 2.20.170, whichever is applicable. (Ord. 1224 § 1, 1973; 1964 Code § 20A.12.)
2.20.200 Joint bidding with other governmental entities.
The formal bid procedure prescribed in CMC 2.20.100 through 2.20.160 may be waived by the city manager in those instances where it is to the city’s advantage to combine its purchases with those of another governmental entity in order to effect economies by bidding combined requirements and the governmental entity actually soliciting the bids employs a bidding procedure adequate to ensure competition among responsible bidders. (Ord. 1646 § 1, 1987.)
2.20.210 Joint purchasing agreements with other governmental entities.
When it is to the city’s advantage, the formal bid procedure prescribed in CMC 2.20.100 through 2.20.160 may be waived by the city manager in the following instances:
A. Supplies, vehicles, equipment or services can be purchased in cooperation with other governmental entities or associations; or
B. Supplies, vehicles, equipment or services can be purchased from a vendor offering the same prices, terms and conditions as in a previous award from the city or another governmental entity either by competitive bid or through a negotiated process. (Ord. 16-2051 § 1, 2016.)
For statutory provisions regarding purchasing of supplies and equipment by local agencies, see Government Code §§ 54201 – 54205.