Chapter 2.10 Purchasing System and Public Works Contracts
2.10.10 Purpose of this Chapter
This purchasing system is hereby adopted in order to establish efficient policies and procedures for the procurement of public works projects, general services, professional services, maintenance services, and materials, supplies, and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and procurements, to clearly define authority for the purchasing function, and to comply with all applicable laws in a professional and ethical manner. (Ord. 2020-01 § 3)
2.10.20 Definitions
For the purposes of this Chapter, the following words and terms shall be construed with the following definitions:
A. "General services" means the furnishing of labor, time, or effort by a contractor for nonprofessional services as the City may, from time to time, find necessary and proper for the functioning of the City.
B. "Maintenance services" means:
1. Routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes;
2. Minor repainting;
3. Resurfacing streets and highways at less than one (1) inch;
4. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems;
5. Work performed to keep, operate and maintain publicly owned water or waste disposal systems; and
6. Other similar services that are generally classified as maintenance and are not public projects.
C. "Goods" means any and all supplies, materials, articles, things, or property, other than real property, furnished to be used by the City.
D. "Purchase order" means a document generated by the Finance Department to formalize a purchase transaction with a vendor or to assure the proper allocation of funds for a purchase.
E. "Professional services" means services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique.
F. "Public project" or "public works project," means:
1. A project for the erection, improvement, painting, or repair of public buildings and works;
2. Work in or about streams, embankments or other works for protection against overflow;
3. Street or sewer work except maintenance or repair; and
4. Furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers.
G. "Services" means either general services, maintenance services, or professional services. (Ord. 2020-01 § 3)
2.10.30 Purchasing Authority
The authority applicable for the purchase of materials, supplies, equipment, services, and public works projects shall be delegated as follows:
A. Award by City Manager. The City Manager may make purchases or contracts for services, materials, supplies, and equipment, in an amount not to exceed ten thousand ($10,000.00) dollars. The City Manager may award contracts for public projects, or take any other action in response to bids for public projects, if the estimated amount of the contract will not exceed ten thousand ($10,000) dollars.
B. Award by City Council. The City Council shall make purchases or contracts, for services and materials, supplies, and equipment, that exceed ten thousand ($10,000.00) dollars and for public projects that exceed ten thousand ($10,000.00) dollars. (Ord. 2020-01 § 3)
2.10.40 Purchasing Policy Procedures
A. Procurement Guidelines. The City Manager shall implement policies and procedures governing the procurement of public works projects, services and materials, supplies, and equipment for the City consistent with this Chapter. Said procedures and policies may be amended as needed to address operational issues as they arise.
B. Rejection of Bids and Proposals. At its discretion, the City Council may reject any and all bids, proposals, quotations, or prices and take any other action deemed appropriate for the procurement of public works projects, goods and services.
C. Required Restrictive Procedures. More restrictive procurement methods shall be used if required by Federal and State law, or where Federal or State funds are involved in the contract to be awarded, or when the City Council or City Manager determines it is in the best interest of the City to do so.
D. Appropriations Requirement. No contract or purchase shall be made unless the City Manager or Finance Director shall have first confirmed that there is an unencumbered appropriation in the fund against which such expenditure is to be charged sufficient to cover the amount of purchase or contract, unless in cases of emergency.
E. Unauthorized Purchases. No officer or employee of the City shall request a supplier to deliver goods or services to the City without prior authorization by the City Manager. Such purchases are void and not considered an obligation of the City.
F. Performance Bonds. The City Manager shall have authority to require a performance bond before entering a contract in such an amount necessary to protect the best interests of the City.
G. Review and Approval of Plans and Specifications. The City Engineer, or qualified designees, is authorized to review and approve engineering plans for all public works projects. This shall include the working details, drawings, plans and specifications prepared for every public works project, including emergency and change order work, which may affect the design or operation of public improvements and which may bring into question the City’s liability for dangerous conditions of public property.
H. Master Agreements. The City may enter into master agreements, under which City staff purchases goods and services, including but not limited to on-call services. Master agreements shall have a not-to-exceed cost limit and be subject to the procurement requirements of this Chapter based on the not-to-exceed value. (Ord. 2020-01 § 3)
2.10.50 Protest Procedure
A. Right to Protest. Prior to making the award, any responsible bidder in connection with the award of a contract may protest the award. A subcontractor of a bidder or proposer may not submit a protest. Protests shall be limited to matters in which the City Council does not have discretion to act, or acts outside of its discretion. This section shall apply to all contracts awarded by the City Council through a formal competitive process, including but not limited to a formal bid or formal request for proposal process.
B. Timing of Protest. The protest shall be submitted in writing within the following times:
1. If the City issues a notice of intent to award (or reject) a bid, then within five (5) calendar days following the issuance of the notice of intent and prior to the date of the award.
2. If the City does not issue a notice of intent, then within five (5) calendar days following the City Council’s award of the contract.
Untimely protests will not be considered and will be deemed waived.
C. Contents of Protest. The protest shall identify and explain the factual and legal grounds for the protest. Any grounds not raised in the written protest are deemed waived by the protesting bidder.
D. City Response. If the protest is in response to a notice of intent, then the protest will be considered as part of the award of the contract, and the City Council’s action is final. If the City does not issue a notice of intent, and the protest is after the award, then the City Manager shall notify the protestor that either the protest is denied or that a hearing on the protest will be scheduled with the City Council. The hearing shall take place within forty-five (45) days.
E. Effect of Failure to Comply with Protest Procedures. The procedures set forth in this section are mandatory and are the sole and exclusive remedy of a bidder or proposer to dispute the award of a contract. A protest that does not comply with these procedures may be summarily rejected.
F. Conflicts. The protest procedures contained in this section shall not apply if a particular procurement solicitation contains a different protest procedure. (Ord. 2020-01 § 3)
2.10.60 Competitive Bidding
The total estimated cost of goods, services or public works projects determines the bidding procedures and procurement methods that must be followed, as described below:
A. Goods.
1. No bidding required: five thousand ($5,000.00) dollars or less;
2. Informal quote process: five thousand ($5,000.00) to twenty-five thousand ($25,000.00) dollars;
3. Formal bid process: over twenty-five thousand ($25,000.00) dollars.
The City Council may dispense with the formal bid process for goods over twenty-five thousand ($25,000.00) dollars if the City Council finds that a competitive request for proposal process would be more beneficial to the City or if the City Council finds that the need to compare different products and/or negotiate the best value would be better achieved through a formal request for proposal process.
B. Professional, Maintenance and General Services.
1. No bidding required: five thousand ($5,000.00) dollars or less;
2. Informal quote process: five thousand ($5,000.00) to twenty-five thousand ($25,000.00) dollars;
3. Formal request for proposal (RFP)/request for qualifications (RFQ) process: over twenty-five thousand ($25,000.00) dollars.
C. Public Works Projects.
1. No bidding required: five thousand ($5,000.00) dollars or less;
2. Formal bid process: over five thousand ($5,000.00) dollars.
The threshold for formal bidding of public works projects shall be the same as the threshold set forth in Public Contract Code Section 20162 and shall automatically adjust with any changes to the statutory threshold. The City Council may, by resolution, elect to become subject to the California Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.), in which case the bidding threshold in the Act shall apply in the City. (Ord. 2020-01 § 3)
2.10.70 Informal Quote Process
A. Soliciting Quotes or Proposals. City staff shall solicit, via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, price quotes or proposals documented in writing. If unable to obtain a minimum of three (3) price quotes, staff shall document that reasonable efforts were made to obtain price quotes or proposals, including that a notice was posted for not less than seven (7) business days; that there were no other vendors to solicit price quotes or proposals from; or that they solicited to other vendors and two (2) or more declined to provide a quote or proposal. In lieu of soliciting three (3) price quotes or proposals, staff may elect to procure by formal bidding procedures.
B. Award of Purchase. Award shall be made to the best qualified vendor presenting a quote or proposal that is in the City’s best interests. Contracts for the purchase of professional services shall be awarded to the best qualified vendor on the basis of demonstrated competence and professional qualifications. (Ord. 2020-01 § 3)
2.10.80 Formal Request for Proposal (RFP)/Request for Qualifications (RFQ) Process
The RFP or RFQ process shall be utilized to engage services on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City. The following minimum guidelines and procedures shall be implemented by:
A. Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs or RFPs shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of qualifications or proposals; (4) describe general parameters for evaluation and selection; and (5) include any other information required by State or local law.
B. Published Notice. City staff shall solicit RFQs or RFPs via published notice in a newspaper of general circulation and/or the City’s website at least ten (10) calendar days before the date for receiving qualifications or proposals, unless exigent circumstances call for a shorter time.
C. Review of Qualifications or Proposals. Proposals shall be evaluated based on the evaluation and selection criteria established by the City.
D. Award. Award for professional services contracts shall be to the best qualified consultant who will best serve the City interests, taking into account the demonstrated competence, professional qualifications and suitability for the project. Award for other contracts shall be to the vendor offering the best value to the City, in the City’s sole and absolute discretion.
E. Rejection of Bids. The City Council may, in its sole and absolute discretion, reject all proposals presented and readvertise. (Ord. 2020-01 § 3)
2.10.90 Formal Bidding Process
A. Required Process. The formal bidding procedures shall comply with all aspects of State and local law governing formal competitive bidding, including, but not limited to, the Public Contract Code, Government Code, Labor Code, resolutions of the City Council as may be adopted from time to time, this Chapter, and policies and procedures as the City Manager may approve from time to time.
B. Notice Inviting Formal Bids. Notice inviting formal bids shall be provided. Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a minimum, the notice inviting formal bids shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of sealed bids; and (4) include any other information required by State or local law.
C. Published Notice. The notice shall be published at least ten (10) calendar days before the date of opening the bids in a newspaper of general circulation and on the City’s website. Notice shall be published at least twice, not less than five (5) days apart.
D. Bidder’s Security. All bids shall be presented under sealed cover accompanied by one (1) of the following forms of bidder’s security: (1) cash; (2) cashier’s check made payable to the City; or (3) a bidder’s bond executed by an admitted surety insurer made payable to the City. Such security shall be an amount at least equal to ten (10) percent of the bid amount. No bid shall be considered unless security in the form above set forth is enclosed with the bid.
E. Forfeiture of Security. If the successful bidder fails to execute the contract, the bidder’s security shall be forfeited to the City. The City Council may on refusal or failure of the successful bidder to execute such contract award the contract to the next lowest responsible bidder. If the City Council awards the contract to the second 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 low bid. The surplus, if any, shall be utilized to offset any and all costs of preparation and printing of plans, specifications, estimates of cost, publication of notices, and any surplus remaining shall be returned to the lowest bidder who fails to execute the contract.
F. Bid Opening. Sealed bids shall be submitted to the City Clerk and shall be clearly identified with the bid number on the envelope. Upon receipt, the City Clerk shall date and time stamp the envelope. Bids shall be opened in public at the time and place stated in the public notices.
G. Review of Bids. The City shall review all bids received for completeness, accuracy, responsiveness to the invitation and bid documents, and the City’s experience with or knowledge of the qualification and reliability of each bidder and prepare a recommendation for the City Council. The City Council may waive any irregularities or discrepancies in each bid received.
H. No Bids. If no bids are received, the City Council may have the project done in any manner that the City Council may direct without further complying with this Chapter.
I. Award of Contract. If awarded, the contract shall be awarded to the lowest responsible and responsive bidder. If two (2) or more bids received are the same amount, the City Council may decide which bid to accept and award.
J. Rejection of Bids. The City Council may, in its sole and absolute discretion, reject any one (1) or more items of a bid, reject any and all bids, or waive any irregularities or informalities in the bids or bidding process if deemed to best serve the interests of the City. After all bids are rejected, the City Council may pass a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by employees of the City or procuring goods on the open market, or elect to readvertise for bids pursuant to the procedures prescribed in this section. (Ord. 2020-01 § 3)
2.10.100 Exceptions to Procurement Methods
There shall be no informal bid process or formal bid process required for the purchases of goods, services or public works projects under the any of the following circumstances:
A. Minimum Procurement Levels. Where the procurement of public works projects, services, and goods is not subject to any of the required procurement methods in this Chapter.
B. Disaster Relief. When in the case of a disaster, as further explained in Chapter 4.18, the requirements of this Chapter do not apply.
C. Emergency. When in case of emergency.
1. "Emergency" means 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.
2. In the case of an emergency which requires the immediate procurement of public works, services or goods less than one hundred thousand ($100,000.00) dollars, the City Manager may procure these items without regard to the provisions of this Chapter. The action shall only be to repair or replace a public facility, take any directly related and immediate action required by that emergency, or procure the necessary equipment, services, and supplies for those purposes. Award shall be made to the vendor offering the lowest acceptable quotation that best meets the needs of the City. The City Manager shall terminate the emergency action at the earliest possible date that conditions warrant. If a contract or purchase is made pursuant to this authority, the City Manager shall provide to the City Council for review a written public record showing the nature of the emergency and the City Manager’s authorization to proceed pursuant to the provisions of this section and Public Contract Code Section 22050.
3. In the case of an emergency which requires the immediate procurement of public works, services or goods greater than one hundred thousand ($100,000.00) dollars, the City Council, by a four-fifths vote, may procure these items without regard to the provisions of this Chapter. The action shall only be to repair or replace a public facility, take any directly related and immediate action required by that emergency, or procure the necessary equipment, services, and supplies for those purposes. Award shall be made to the vendor offering the lowest acceptable quotation that best meets the needs of the City. The City Council shall terminate the emergency action at the earliest possible date that conditions warrant.
D. No Competitive Market. When the City Council determines that a competitive market does not exist or that the City will not gain a competitive advantage by using the formal bidding procedure, the City may use any other procurement method.
E. Competitive Bidding Already Completed. When the City Manager or City Council determines that: (1) a competitive bid procedure has been conducted by another public agency, including, but not limited to, another local agency, the State through the California Multiple Award Schedule (CMAS), the Federal government through the General Services Administration (GSA), or a joint powers agency, authority or alliance that procures competitive contracts; and (2) the price to the City is equal to or better than the price to that public agency.
F. State Purchase. When the purchase is made on behalf of the City by the State Department of General Services.
G. Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees, utilities, postage, waste disposal fees or other nonnegotiable permit, use or application fees.
H. Shared Services. When the City Council or City Manager authorizes the award and execution of contracts for services, subject to the dollar limits consistent with this Chapter, that are provided by another government, public entity, joint powers authority, quasi-governmental entity, special district or nonprofit entity that will maximize efficiency, increase cost effectiveness, increase range of services, minimize duplication, provide training or education, encourage collaboration or standardize efforts, or leverage government resources.
I. Best Interest of City. Except where otherwise prohibited by law, when the City Council or City Manager authorizes the award and execution of contracts for services and goods subject to the dollar limits consistent with this Chapter, without following the required procurement methods; provided, that the City Council or City Manager finds that such award is in the best interest of the City, or of the public health, safety, and welfare.
J. Sole Source. When the City Council or City Manager determines that there is only one (1) source that provides the needed services or goods, or to ensure compatibility with other City products and equipment, the City shall work to procure these items in the best interest of the City.
K. Purchase of Recurring Charges. The City may create an open vendor list for the purposes of providing co-services and goods for the fiscal year for ongoing cleanup, maintenance and different routine items that are of a continuing nature. Prices from each vendor shall be obtained in a manner to ensure competitive pricing, in the best interest of the City. The threshold for each vendor may be determined by the City Council, at the recommendation of the City Manager. A vendor list may be approved by the City Council as often as necessary but not less than once every twenty-four (24) months.
L. Task or Job Orders. Unless prohibited by law, task or job orders that the City places through a duly approved master agreement shall not be subject to further procurement requirements.
M. Otherwise Authorized. When otherwise authorized by this Chapter or applicable law. (Ord. 2020-01 § 3)
2.10.110 Disposition of Surplus Goods
A. Submitting Reports. All departments shall submit to the City Manager, when requested, reports showing all materials, supplies and equipment which are no longer used or which have become obsolete or worn out.
B. Disposing of Surplus. The City Manager shall have authority to sell as surplus all materials, 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 materials, supplies, and equipment. The sale of surplus materials, supplies, and equipment shall be made pursuant to rules prescribed by the City Manager and only after authorization from the City Council as to any items of an estimated value of ten thousand ($10,000.00) dollars or more.
C. City Officials and Staff. City officials and employees and their immediate families shall not be eligible to purchase such surplus materials, supplies, and equipment. (Ord. 2020-01 § 3)