CHAPTER 28
PURCHASE OF SUPPLIES AND CONTRACTUAL SERVICES

*    Prior legislation: Ord. Nos. 77-5, 82-25, 82-35, 88-31, 2013-21 and 2017-16.

Article I. Purpose and Definitions.

28.1 Purpose.

The purpose of this chapter is to establish a purchasing system that is compliant with State and federal law and that will achieve economy and efficiency in the purchase and disposition of supplies and contractual services; exercise effective financial control over purchases; define the authority for the purchasing function; and assure the quality of purchases. (Ord. No. 2019-10, § 1.)

28.2 Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

Emergency. The City Manager may declare that an emergency exists for the purposes of this chapter if one of the following conditions exist:

(a)    There is a sudden, unexpected occurrence 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; or

(b)    There is immediate need to prepare for national or local defense; or

(c)    There is a breakdown in infrastructure or an essential service which requires the immediate purchase of supplies or general contractual services to protect the public health or safety; or

(d)    A local emergency or disaster has been declared.

General Contractual Services. Most types of services, excluding professional services as defined in this chapter, under which the contractor provides services which are required by the City, but not furnished by the City’s own employees.

Landscape Maintenance Services. Services related to the maintenance of land, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

Privately Funded Consultant Services. Consultant services financed by private individuals, entities, or non-profit organizations in their capacity as applicants seeking development approval of any type from the City where such services are employed to determine the impacts of a proposed private development or as applicants seeking other types of permits which require a specialized assessment, study or report.

Professional Services. The services of attorneys, physicians, architects, engineers, surveyors, accountants, appraisers, economic and finance consultants, auditors, real estate brokers, or any other professionals that apply an advanced, specialized type of knowledge, expertise or training, customarily acquired by a prolonged course of study or equivalent experience in the field, which such services requiring extended analysis, the exercise of discretion, and independent judgement in their performance. Professional Services do not include General Contractual Services.

Public Agency. Any city, county, state, federal, school district, or other public entity.

Purchases. Transactions, including lease and rental, by which the City acquires tangible goods, supplies, and equipment, as well as contractual and professional services.

Purchasing Guidelines. Guidelines prepared and maintained by the Finance Director, with the approval the City Manager (Purchasing Officer), including but not limited to the policies, procedures, standardized forms and instructions with which to implement and augment this chapter.

Responsible Bid. An offer, submitted by a responsible bidder to furnish supplies or contractual services in conformity with specifications, delivery terms, conditions, and other requirements included in the bid invitation.

Responsible Bidder. A bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgment, skill, ability, capacity, and integrity requisite and necessary to perform the contract according to its terms.

Supplies. Any and all articles, equipment, or personal property furnished to or used by any organizational unit of the City. (Ord. No. 2019-10, § 1.)

28.3-28.9 Reserved.

Article II. General Purchasing Provisions.

28.10 Centralized Purchasing.

There is hereby created a purchasing unit of the finance department in which is vested the authority for the purchase of supplies and general contractual services. (Ord. No. 2019-10, § 2.)

28.11 Purchasing Officer.

The City Manager, or his or her designee, shall act as the Purchasing Officer and oversee the activities of the purchasing unit. The duties of the Purchasing Officer, or his or her designee, shall include, but not be limited to, the following:

(a)    Purchase of supplies and general contractual services of an actual value less than or equal to the amounts authorized for the Purchasing Officer in Article III of this Chapter, including the execution of any contract related to such purchase, and submit to formal competitive bidding procedures as defined in this chapter the purchase of supplies and contractual services of an actual value exceeding such amounts.

(b)    Prescribe and maintain such records and forms as reasonably necessary.

(c)    Designate surplus supplies and dispose of surplus supplies efficiently and economically.

(d)    Prepare and maintain a purchasing manual as defined in this chapter.

(e)    Authorize certain City employees to purchase limited amounts of supplies and contractual services as may be permitted by this chapter.

(f)    In the exercise of his or her discretion, inspect supplies delivered; including, as required, chemical and physical tests of samples, to determine conformance with specifications set forth in the order. (Ord. No. 2019-10, § 2.)

28.12 Distribution of Purchasing Function.

The Purchasing Officer may delegate the purchase of supplies and general contractual services in such amounts and in a manner consistent with procedures as may be authorized by this chapter and established in the purchasing manual. (Ord. No. 2019-10, § 2.)

28.13 Requisitions.

Organizational units of the City shall submit requests for supplies and general contractual services to the finance department by standard requisition form, or by other means as may be established in the purchasing manual. (Ord. No. 2019-10, § 2.)

28.14 Purchase Orders.

Subject to section 28.15 of this Chapter, the use of purchase orders shall be in accordance with the procedures included in the Purchasing Guidelines in the City’s Administrative Policy Manual. (Ord. No. 2019-10, § 2.)

28.15 Encumbrance of Funds.

Except in cases of emergency, or in cases where specific written authority has first been obtained from the Purchasing Officer, a purchase order shall not be issued for supplies or general contractual services unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. No. 2019-10, § 2.)

28.16 Surplus Supplies and Equipment.

The Purchasing Officer shall designate as surplus and dispose of all supplies which cannot be used, or which have become unsuitable, in accordance with procedures established in the Purchasing Guidelines in the City’s Administrative Policy Manual. (Ord. No. 2019-10, § 2.)

28.17 External Restrictions.

Some purchases may be subject to the terms and conditions of various codes, statutes and agreements of other governmental entities, including but not limited to federal and State grants. In these cases, this chapter shall apply only to the extent that it does not conflict with these other legal requirements. (Ord. No. 2019-10, § 2.)

28.18-28.29 Reserved.

Article III. Types of Contracts and Procurement Methods.

28.30 Supplies and General Contractual Services.

Except as may be otherwise set forth in Article V of this Chapter, the following requirements shall apply to the purchase of supplies and contractual services:

(a)    The City Council shall establish, by resolution, a tiered system authorizing the threshold dollar amounts up to which the following individuals shall have contract execution authority:

1)    Tier I. Any department head, or his or her designee, is authorized to enter into a Tier I contract to purchase supplies or procure general contractual services, provided he or she first obtains three written quotes for the same.

2)    Tier II. The Purchasing Officer is authorized to enter into a Tier II contract to purchase supplies or procure general contractual services, provided he or she first obtains three written quotes.

3)    Tier III. The Purchasing Officer is authorized to enter into a Tier III contract to purchase supplies or procure general contractual services, provided he or she first obtains three written quotes.

4)    Tier IV. Except for recurring purchases as provided below, the City Council shall approve all Tier IV contracts to purchase supplies or procure contractual services. All such contracts approved by the City Council shall be let through the formal competitive bidding procedures set forth in Article IV of this chapter, unless otherwise exempt.

(b)    In addition to the procedures set forth above, the approving authority for any contract subject to this section 28.30 may elect, but is not required, to issue a request for proposals or request for qualifications, if either would be useful in selecting a provider for the purchase of supplies or contractual services. (Ord. No. 2019-10, § 3.)

28.31 Professional Services and Landscape Maintenance Services.

(a)    Except as may otherwise be required under state or local law, the following selection process and approval authority shall be required for the procurement of professional services and landscape maintenance services:

1)    The City Manager is authorized to enter into a contract without seeking City Council approval where the cost of the contract does not exceed $100,000.

2)    Any contract with a cost greater than $100,000 must be presented to City Council for approval.

(b)    To the extent that the services sought by the City include professional services or landscape maintenance services, such contracts shall be let on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. (Ord. No. 2019-10, § 3.)

28.32 Contractual Amount.

In determining the dollar amount of a contract, the amount includes all costs of the contract, including associated costs for tax, shipping, delivery, and installation or set up at City facilities. Additionally, the contractual amounts shall apply to the entire term of the agreement, including automatic extensions or renewals. Except for information technology and software license and maintenance contracts subject to one or more automatic extensions, the automatic extensions shall not be included for purposes of calculating the initial contract amount. (Ord. No. 2019-10, § 3.)

28.33 Prohibition on Splitting.

Splitting the purchase of goods, general contractual services, professional services, or landscape maintenance services into contracts with smaller dollar amounts for the purpose of evading the competitive bidding thresholds set forth in this Article is prohibited. (Ord. No. 2019-10, § 3.)

28.34 Replacement of Landscape Maintenance Contractors.

In the event of unsatisfactory performance of any landscape maintenance contract, the director of public works is authorized to terminate such contract in accordance with its provisions for termination. Upon such termination, notwithstanding the requirements of Section 28.31, the director of public works may negotiate and award a replacement contract for the landscape services provided by the terminated contract for a period not to exceed six months. Any extension of the six month term shall be subject to the requirements of Section 28.31. The director of public works shall provide a written report to the City Council and the City Manager of any action taken to terminate a landscape maintenance contract and hire a replacement contractor within 15 days after such action is taken. (Ord. No. 2019-10, § 3.)

28.35 Recurring and Replacement Purchases.

Recurring purchases that are made for the replenishment of supplies, materials, and equipment, or for services are subject to the procedures described in this chapter. However, such purchases do not have to adhere to the required procurement methods provided funds are available. Recurring purchases shall include, but are not limited to, chemicals, paving materials, gasoline, electric, water and sewer utility costs, and postage meter costs. The Purchasing Guidelines in the City’s Administrative Policy Manual shall specify the type or purchases which will qualify as a recurring purchase. (Ord. No. 2019-10, § 3.)

28.36-28.39 Reserved.

Article IV. Formal Competitive Bidding Procedures.

28.40 Purchases in Excess of the Purchasing Officer’s Authorization Limit.

The selection of a vendor for the purchase of supplies and contractual services of an actual value greater than the Purchasing Officer’s authorization limit, as set forth in Article III of this Chapter, shall be by formal competitive bidding procedures as prescribed in a manner consistent with procedures established in the purchasing guidelines. These procedures shall not apply when any of the exceptions to formal bidding, as set forth in Article V of this Chapter, exist or in the event that:

(a)    After inviting bids as required by this article, no valid bids are received.

(b)    After receiving bids, the City Council rejects all such bids.

(c)    The bidder to whom an award is made fails to enter into the contract as required and the City Council does not make an award to the next lowest responsible bidder. (Ord. No. 2019-10, § 4.)

28.41-28.59 Reserved.

Article V. Exceptions to Formal Competitive Bidding Procedures.

28.60 City Council Suspension of Bidding Procedures.

The City Council may suspend competitive bidding for any purchase and may enter into a contract to purchase supplies or procure general contractual services through the use of an alternative selection process after making a finding that doing so would be in the best interests of the city. (Ord. No. 2019-10, § 5.)

28.61 Emergency Purchase Procedure.

In case of a locally declared emergency which requires immediate purchase of supplies or general contractual services, the Purchasing Officer is authorized to secure in the open market supplies or general contractual services regardless of the amount of the expenditure and may waive any other purchase proceedings. (Ord. No. 2019-10, § 5.)

28.62 Cooperative Purchasing Agreements.

The City Manager, where advantageous to the City, may, by cooperative purchasing agreements, purchase supplies through competitively let legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the City, provided that the contract for purchase includes indemnification and insurance terms which satisfy the City’s requirements as set forth in the Purchasing Manual. In addition, the City may act as the cooperating purchasing agent for other public entities. (Ord. No. 2019-10, § 5.)

28.63 Sole Source.

Purchase of materials, supplies and equipment may be made without adhering to the required procurement methods if they can only be obtained from one vendor either because the desired materials, supplies or equipment is proprietary in nature or because a sole sourced purchase of such items is in the best interest of the City. In any event, approval for all sole source purchases shall be made by the required signing authority, depending on the purchase’s dollar amount. (Ord. No. 2019-10, § 5.)

28.64 Surplus Supplies.

When it is advantageous to the City, the Purchasing Officer may direct the purchase of surplus supplies from the United States government, or any agency thereof, or from the State of California, or any agency thereof, or any other public body, without compliance with the competitive bidding requirements of this chapter. (Ord. No. 2019-10, § 5.)

28.65 Privately Funded Consultant Services.

Contracts for privately funded consultant services are not subject to the formal bidding procedures of this Chapter, or the Purchasing Officer authorization limit set forth in Section 28.30, provided that, prior to authorizing the consultant to proceed, the applicant has either made payment in full to the City for the cost of any such contract or has entered into an agreement with the City to pay the full cost of any such contract. (Ord. No. 2019-10, § 5.)

28.66-28.69 Reserved.

Article VI. Informal Bidding Procedures for Public Projects.

28.70 Adoption of Uniform Public Construction Cost Accounting Act.

The City has adopted the alternative bidding procedures provided by the Uniform Public Construction Cost Accounting Act, California Public Contract Code section 22000 et seq. (UPCCAA). Public projects as defined by the UPCCAA may be let to contract by informal procedures as set forth in Section 22032, et seq. of the Public Contract Code. The Purchasing Manual shall describe how to apply these procedures in the event that the grant procedures of other governmental entities, including but not limited to federal and State agencies, also apply. (Ord. No. 2019-10, § 6.)

28.71 Contractor’s List.

A list of contractors shall be developed and maintained in accordance with the provision of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. (Ord. No. 2019-10, § 6.)

28.72 Notice Inviting Informal Bids.

Where a public project is to be performed which is subject to provisions of this ordinance a notice inviting informal bids shall be advertised in accordance with one or both of the following methods:

1.    A notice inviting informal bids shall be mailed, faxed, or emailed not less than 10 calendar days before bids are due to all contractors for the category of work to be bid as shown on the list developed in accordance with Section 28.71 or,

2.    A notice inviting informal bids shall be mailed, faxed, or emailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contracts, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. (Ord. No. 2019-10, § 6.)

28.73 Award of Contracts.

The Purchasing Officer and the Director of Public Works is authorized to award informal contracts pursuant to this section. (Ord. No. 2019-10, § 6.)