Chapter 3.98
PURCHASING OF SUPPLIES, EQUIPMENT AND SERVICES
Sections:
3.98.040 Establishment of division of purchases.
3.98.060 Operational procedures.
3.98.080 Consideration of bids and basis of award.
3.98.130 Procedure for purchase of supplies, equipment and services.
3.98.150 Emergency authority of purchasing agent.
3.98.160 Waiver of informalities--Rejection of bids.
3.98.170 Purchase through a governmental entity.
3.98.180 Competitive bids (notice).
3.98.210 Faithful performance deposits.
3.98.230 Request for sealed proposals (RFP).
3.98.300 Disposal of less than one thousand dollars.
3.98.320 Disposal of more than one thousand dollars.
3.98.330 Exclusions from chapter.
3.98.010 Purpose.
The purpose of this chapter is to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of quality and integrity. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.020 Application.
Except as otherwise provided herein, this chapter applies to contracts for the procurement of supplies and services, entered into by the city. When the procurement involves the expenditure of federal assistance or contract funds, the procurement shall be conducted in accordance with mandatory applicable federal law and regulations. Nothing in this chapter shall prevent any public agency from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.040 Establishment of division of purchases.
There is established for the city a division of purchases, headed by a purchasing agent. The city manager or the city manager’s designee shall be the purchasing agent of the city. (Ord. C-4-11 §9(part), 2011: Ord. 6-06 §1, 2006: Ord. 12-95 §2(part), 1995).
3.98.050 Duties.
In accordance with this chapter, the purchasing agent shall:
A. Procure or supervise the procurement of all supplies and services needed by the city, except as otherwise provided herein;
B. Exercise direct supervision over the city central stores and general supervision over all other inventories of supplies belonging to the city;
C. Sell, trade or otherwise dispose of surplus supplies belonging to the city; and
D. Establish and maintain programs for specifications development, contract administration and inspection and acceptance, in cooperation with the public agencies using the supplies and services. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.060 Operational procedures.
Consistent with this chapter, the purchasing agent may adopt operational procedures relating to the execution of duties. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.070 Delegation.
The purchasing agent may delegate authority to purchase supplies or services, and to dispose of surplus supplies, to other city officials if such delegation is deemed necessary for the effective procurement or disposal of those items, and is authorized by the city manager. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.080 Consideration of bids and basis of award.
In every case, purchases shall be awarded on the basis of the bid or bids most advantageous to the city. In determining whether a bid is most advantageous to the city, in addition to price, the purchasing agent or city council may consider the following:
A. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
B. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;
C. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
D. The quality of performance of previous contracts or services;
E. The previous and existing compliance by the bidder with the laws and ordinances;
F. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide 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 services for the use of the subject of the contract;
I. The number and scope of conditions attached to the bid. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.130 Procedure for purchase of supplies, equipment and services.
The city council shall, by resolution, establish the dollar thresholds for the procurement, by the purchasing agent, of supplies, equipment and services by informal or formal quote or bid, or by the city council by competitive bidding. (Ord. C-4-11 §9(part), 2011: Ord. 6-06 §2, 2006: Ord. 12-95 §2(part), 1995).
3.98.140 Consultants.
A. The council finds and declares that the competitive bid process is ill-suited for the selection of consultants. Consultants are required for professional or technical expertise and for matters requiring specialized abilities or a high degree of skill. Their numbers (in relation to a particular skill or expertise required) are comparatively limited. Where consultants are involved, the bidding process is not likely to result in a lower price to the city or eliminate unnecessary expense or delay.
B. The city council shall establish, by resolution, the dollar thresholds for which the purchasing agent shall be empowered to engage consultants (including, but not limited to, material testing services and construction inspection services) without formal approval in advance by the city council. (Ord. C-4-11 §9(part), 2011: Ord. 6-06 §3, 2006: Ord. 12-95 §2(part), 1995).
3.98.150 Emergency authority of purchasing agent.
A. In an emergency requiring the immediate preservation of the public peace, health and safety, and precluding action by the city council, the city manager may authorize the purchasing agent to purchase supplies or services in excess of the dollar thresholds established by the city council without formal or competitive bids.
B. The purchasing agent shall submit to the council a written statement of the circumstances of such emergency, a written description of the supplies or services purchased and the prices thereof within thirty days of the expenditure. (Ord. C-2013-04 §6, 2013: Ord. C-4-11 §9(part), 2011: Ord. 6-06 §4, 2006: Ord. 12-95 §2(part), 1995).
3.98.160 Waiver of informalities--Rejection of bids.
Where the purchasing agent or city council are required to make purchases upon competitive bids, said agent or council may waive any informalities or minor irregularities or may reject any and all bids (anything herein contained to the contrary notwithstanding) if said agent or council deems said rejection to be in the best interests of the city. Said rejection shall be at the sole discretion of the agent or council, as the case may be. Upon rejection of bids, the agent or the council, as the case may be, may (A) give subsequent notice for new competitive bids, or (B) postpone said purchase or disposal definitely or indefinitely, or (C) elect to make the purchase without competitive bids, upon notice (and as if competitive bids, upon notice, had not been required in the first instance) in accordance with the authority granted by the various subsections of this chapter. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.170 Purchase through a governmental entity.
Purchases may be made on behalf of the city through any governmental entity (including, but not limited to, the state of California or the county of San Mateo) pursuant to authority granted by any statute or ordinance or pursuant to contractual arrangement between the city and said governmental entity. The city is authorized and empowered to enter into contracts with other governmental entities providing for purchases to be made on behalf of the city. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.180 Competitive bids (notice).
Where notice is required, notice shall be given as follows:
A. Notice of a proposed purchase by competitive bidding shall be by publication in a newspaper of general circulation within the city on at least one occasion at least five days prior to the date set for the final receipt of bids.
B. The notice shall give such information as to the proposed purchase or disposal as the purchasing agent deems sufficient but shall include the following:
1. A general description of the supplies, equipment, or services to be purchased or personal property to be disposed of;
2. Date, time and place of bid opening;
3. Whether bid deposit or bond and faithful performance bond will be required. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.190 Competitive bids.
Where competitive bids are required, they shall be submitted in writing in a sealed envelope at the office of the purchasing agent no later than the final time and date for the receipt of bids as set forth in the notice of publication and opened publicly. Where competitive bids are required, the purchase or disposal shall be made on the basis of three or more of said bids unless the purchasing agent shall certify in writing that less than three prospective vendors or purchasers have submitted bids or that, to the best of the agent’s knowledge, there are less than three prospective vendors from whom the supplies or services are available and that bids were invited from all of said vendors. Any bid may be withdrawn by a written request signed by the bidder and received by the purchasing agent prior to the final time and date for the receipt of bids.
A. Opening. Bids shall be opened in public at the time and place stated in the public notices.
B. Tabulation. A tabulation of all bids received shall be posted for public inspection. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.200 Bid deposits.
When deemed necessary 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 council. A successful bidder (and his or her 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 or upon the bidder’s failure to perform his or her bid. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.210 Faithful performance deposits.
When deemed necessary by the purchasing agent or city council, any person entering into a contract with the city may be required to furnish a faithful performance deposit or bond in an amount determined by the purchasing agent or council. Said person (and his or her surety, if a bond is furnished) shall be liable for any damages upon said person’s failure to faithfully perform the terms of his or her contract. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.230 Request for sealed proposals (RFP).
A. The purchasing agent may utilize the request for sealed proposal method to procure supplies, equipment or services without city council approval if the amount or value involved is less than the dollar threshold established by city council resolution and the purchasing agent determines that so doing would be advantageous to the city.
B. Proposals shall be solicited through a request for proposals.
C. Notice shall be given as required by Section 3.98.180.
D. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. A register of proposals shall be prepared containing the name of each offeror and a description sufficient to identify the item offered. The register of proposals shall be open for public inspection only after contract award.
E. The request for proposals shall state evaluation factors.
F. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements. Offerors shall be accorded equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of the identity of competing offerors or of any information derived from proposals submitted by competing offerors.
G. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation.
H. Without limitation to the applicability of any other provisions of this chapter, the purchasing agent or city council may reject any and all proposals if said rejection is deemed in the best interests of the city. Upon rejection, the purchasing agent or council may request new sealed proposals or utilize any alternative method allowed under this chapter. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.300 Disposal of less than one thousand dollars.
Except as otherwise provided by state law or city ordinance, the purchasing agent shall be empowered to dispose of personal property of the city, which cannot be used by any department of the city, at public or private sale or by renting or destroying the same (all with or without notice, competitive bid or necessity of posting bid bonds, at the purchasing agent’s discretion, and upon such terms as he or she deems best), provided any single item of property involved does not exceed one thousand dollars in current market value; and provided, that disposal of property pursuant to this section shall be reported to the city council. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.320 Disposal of more than one thousand dollars.
In the event any single item of property exceeds one thousand dollars in current market value, the city council may empower the purchasing agent to dispose of it (in accordance with the same terms and conditions and subject to the same discretion and limitations as if it were under one thousand dollars in value). Alternatively, the city council may elect to sell, rent or destroy the same in accordance with whatever provision, terms and conditions the council may, in its discretion, decide. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).
3.98.330 Exclusions from chapter.
The provisions of this chapter shall not apply:
A. To public works projects (governed by the provisions of the California Public Contracts Code);
B. To franchises governed by the provisions of the California Public Utilities Code or other statute of the state of California;
C. Where state or federal law requires a different procedure;
D. To franchises, rights, privileges, license and permits granted by the city;
E. To the purchase of insurance;
F. To the leasing, purchase or sale of land or any interest therein;
G. To the hiring of or contracting for personnel (whether as temporary, seasonal or permanent employees, agents or independent contractors);
H. To construction contracts other than public works projects;
I. To the purchase of utilities, including, but not limited to, telephone service, gas, electricity or water. (Ord. C-4-11 §9(part), 2011: Ord. 12-95 §2(part), 1995).