Chapter 3-08
PURCHASING
Sections:
3-08.010 Adoption of purchasing system.
3-08.020 Scope of purchasing policies and procedures – Authority and responsibility.
3-08.050 Inspection and testing.
3-08.060 Appropriation of purchasing funds.
3-08.100 Best qualified vendor.
3-08.110 Exceptions to purchasing requirements.
3-08.120 Amendments and change orders.
3-08.150 Professional services contracts.
3-08.160 Amendments to professional services contracts.
3-08.170 Exemptions to provisions of this chapter.
Prior legislation: Ords. 02-7 and 2004-5.
3-08.010 Adoption of purchasing system.
This purchasing system is adopted in order to:
A. Establish efficient regulations, policies, and procedures for the purchase of goods and supplies, equipment, materials, and services;
B. Secure on behalf of the city goods and supplies, equipment, materials, and services at the lowest possible cost commensurate with quality needed;
C. Exercise positive financial control over purchases;
D. Clearly define authority for the purchasing function;
E. Assure the quality, suitability, and fitness of purchases;
F. Ensure that the city obtains the highest quality of supplies and equipment and level of service at a fair and reasonable cost.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.020 Scope of purchasing policies and procedures – Authority and responsibility.
Except as otherwise provided herein, the procurement regulations, policies, and procedures set forth in this chapter shall apply only to the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services, and shall not apply to public works construction projects. Procedures and processes for the procurement of public works construction contracts are subject to the California Public Contract Code. The authority and responsibility for the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services is vested in the City Manager and City Council. The Purchasing Officer shall be the City Manager or the City Manager’s designee. The Purchasing Officer may promulgate additional administrative rules, procedures and orders necessary to implement the policies and procedures established by this chapter with regard to the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services on behalf of the city. Each city department head is responsible for administering and implementing for that department the purchasing policies and procedures set forth in this chapter. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.030 Definitions.
As used in this chapter, the following terms shall have the meanings indicated, which are applicable to both the singular and plural thereof:
“City department head” means the person who is designated by the City Manager as being responsible for each particular city department, including, but not limited to, Administration, Community Development, City Attorney, City Clerk, Community Services, Finance, Police Services, Public Services, Public Works, and City Engineering.
“Estimated value” means the estimated total value as determined by the Purchasing Officer at the beginning of the procurement process for the proposed acquisition of goods and supplies, equipment, materials, and nonprofessional services. When making this initial threshold determination, the Purchasing Officer shall make reasonable use of all available market data and pricing information to estimate the total cost to the city, inclusive of taxes, licenses, freight charges, installation charges, fees, and other consideration, for the proposed procurement. The Purchasing Officer shall not use the value of any anticipated exchange or trade-in amount to reduce the estimated value of the proposed procurement.
“Goods and supplies, equipment, and materials” means fixed, movable, disposable, and/or reusable products, commodities, or items used by the city, including but not limited to office supplies, program supplies, subscriptions, vehicles, fuel and vehicle supplies, tools, computers, computer hardware and software, computer-related equipment and copiers, office furniture, and fixtures.
“Nonprofessional services” means those services not constituting professional services or public works projects.
“Professional services” means those services provided by any specially trained and experienced person, company, corporation, or firm in areas including but not limited to private architectural, landscape architectural, engineering, environmental, land surveying, construction project management, management and administration, financial, accounting, auditing, actuarial, economic and/or development and planning, which involve the exercise of discretion and independent judgment together with an advanced or specialized knowledge, expertise, training, or unique skills gained by formal studies or experience. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.040 Purchasing Officer.
There is hereby created the position of Purchasing Officer. The Purchasing Officer shall be responsible for, and have general supervision of, the following purchasing functions as implemented by various departments throughout the city pursuant to this chapter and any implementing administrative orders established by the Purchasing Officer. The Purchasing Officer shall be the City Manager or the City Manager’s designee. Pursuant to the regulations, policies, and procedures established in this chapter, the Purchasing Officer shall have the authority to:
A. Purchase or contract for goods and supplies, equipment, materials, and professional and nonprofessional services;
B. Negotiate, approve, and execute, as well as recommend approval and execution of, orders and contracts for the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services;
C. Act to procure on behalf of the city the needed quality in goods and supplies, equipment, materials, and services at the 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 administrative rules, procedures, and orders necessary to implement the policies and procedures established by this chapter with regard to the purchase of goods and supplies, equipment, materials, and services on behalf of the city;
F. Keep informed of current developments in the field of municipal purchasing, pricing, market conditions, new technologies, and new products and services;
G. Prescribe and maintain such forms and other rules and regulations as reasonably necessary for the proper implementation of the policies and procedures established in this chapter;
H. Coordinate the inspection of all goods and supplies, equipment, materials, and services purchased on behalf of the city to ensure conformance with specifications;
I. Recommend the transfer of underutilized, surplus, or unused goods and supplies, equipment, and materials between departments as needed and the sale of such goods and supplies, equipment, and materials which cannot reasonably be used by any department or which become unsuitable or obsolete for city use;
J. Maintain and update periodically a vendor master file or list necessary for the efficient operation of purchasing functions;
K. Consider and encourage the purchase of recycled and recyclable materials and environmentally friendly products, whenever practicable and cost effective or efficient; and
L. Except as otherwise required by law, where other factors are equal, consider the procurement of goods and supplies, equipment, and materials from businesses located within the city.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.050 Inspection and testing.
The Purchasing Officer or requesting department shall inspect goods and supplies, equipment, and materials delivered, as well as contract services performed, to determine their conformance with the specifications set forth in the order or contract. The Purchasing Officer or requesting department shall have the right to waive any defect, irregularity, or informality. The Purchasing Officer or requesting department shall have the authority to require demonstrative testing of samples submitted with bids and samples of deliverables which are necessary to determine their quality, fitness for a particular use, and conformance with specifications. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.060 Appropriation of purchasing funds.
The City Council is responsible for and shall appropriate such funds as are necessary to carry out the provisions of this chapter. Except in cases of emergency, or as otherwise provided in this chapter, the City Manager shall not issue any purchase order or contract for goods and supplies, equipment, materials or services unless there exists an unencumbered appropriation in adopted budget against which such purchase may be charged. The City Manager has the authority to transfer unencumbered funds between and among City departments as necessary for the procurement of goods and supplies, equipment, materials, and services as necessary to implement the provisions of this chapter. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.070 Procurement of goods and supplies, equipment, materials, and nonprofessional services – Up to and including twenty-five thousand dollars ($25,000.00) – Open market.
The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value of up to and including twenty-five thousand dollars ($25,000.00), inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, may be made by the Purchasing Officer in the open market without observing the procedures set forth in Sections 3-08.080 and 3-08.090. At least three informal quotes should be obtained, when practicable. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.080 Procurement of goods and supplies, equipment, materials, and nonprofessional services – Greater than twenty-five thousand dollars ($25,000.00) up to and including fifty thousand dollars ($50,000.00) – Informal procedures.
The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value of greater than twenty-five thousand dollars ($25,000.00) up to and including fifty thousand dollars ($50,000.00), inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, shall be made by the informal procedures set forth in this section.
A. The requesting department shall solicit informal proposals by telephone or written request to prospective vendors.
B. Except as otherwise provided in this chapter, purchases shall be based on at least three informal proposals.
C. Informal proposals shall be submitted by prospective vendors to the requesting department. The City Clerk shall retain a record of all informal proposals for a period of two years following completion of the informal procedures established in this section, which shall be made available for public review and inspection upon request.
D. The order or contract shall be awarded by the Purchasing Officer to the lowest proposer consistent with the best qualified vendor selection criteria set forth in Section 3-08.100.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.090 Procurement of goods and supplies, equipment, materials, and nonprofessional services – Greater than fifty thousand dollars ($50,000.00) – Formal procedures.
The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value of greater than fifty thousand dollars ($50,000.00), inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, shall be made by the formal procedures set forth in this section.
A. Notice Inviting Bids. Notices inviting formal bids or proposals from prospective vendors shall be publicly noticed no later than ten calendar days before the submission date for formal bids. The notices shall describe the requested goods or supplies, equipment, materials, or nonprofessional services in general terms, how to obtain more detailed information concerning the procurement, and state the time, place, and deadline for submission of sealed bids or proposals.
B. Public Notice. The notice inviting formal bids or proposals shall be publicly noticed in any generally accepted manner, which includes on the city’s official website. In addition, such notice may also include trade publications when practicable.
C. Bid Opening Procedure. Sealed bids or proposals shall be submitted to the office of the City Clerk or requesting city department and shall be identified as formal competitive bids or proposals on the outside of the sealed envelope. The City Clerk or requesting city department head shall store all sealed bids in a secure location until opening. The City Clerk or requesting city department head shall open all bids or proposals in public at the time and place stated in the notice inviting bids. A tabulation of all bids or proposals received shall be open for public review and inspection in the office of the City Clerk or requesting city department during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.
D. Rejection of Bids. The City Council or the Purchasing Officer shall have the discretion to reject any and all bids or proposals for any reason or for no reason, and may suspend, delay, or otherwise cancel the procurement, or may order the re-advertisement of the request for bids. If all formal bids or proposals are rejected and the City Council resolves by a recorded majority vote of the total membership of the City Council that the procurement can be performed more economically by force account, by informal procedures, or through open market purchases, then it may dispense with further formal competitive public bidding.
E. Tie Bids. If two or more formal bids or proposals received are the same and are the lowest, the City Council may accept the one it chooses.
F. Award of Contracts. Contracts or purchase orders shall be awarded by the City Council to the lowest bidder or proposer consistent with the best qualified vendor selection criteria set forth in Section 3-08.100, except as otherwise provided herein. The decision of the City Council shall be final. The City Council may authorize that such purchase orders or contracts be executed by either the Mayor or the City Manager, or the City Council may otherwise delegate such signature authority.
G. No Bids Received. If no bids or proposals are received, the purchase may be let in the open market or by the informal procedures set forth in Section 3-08.080, subject to City Council approval.
H. Performance Bonds. The Purchasing Officer shall have authority to recommend that a performance bond or other form of security or guarantee be required before entering into a contract in such amount as may be reasonably necessary to protect the best interests of the city. If a performance bond or other form of security or guarantee is required, the form and amount of the bond, security or guarantee shall be described in the notice inviting bids, and the performance bond, security or guarantee shall be in a form approved by the City Attorney.
I. Defects, Irregularities, and Informalities. The City Council may, in its sole discretion, waive any defect, irregularity, or informality in the formal bids or proposals or in the competitive procedures established in this section, and no such defect, irregularity, or informality shall void any contract entered into by the city.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.100 Best qualified vendor.
In determining the best qualified vendor, consideration is to be given to price, quality, and performance of the goods and supplies, equipment, or materials to be purchased or nonprofessional services to be provided by the vendor. Criteria for determining the best qualified vendor shall include but not be limited to the following:
A. The cost and quality of the goods and supplies, equipment, materials, or nonprofessional services;
B. The ability, capacity, and skill of the vendor to perform the contract and to provide the goods and supplies, equipment, materials, or nonprofessional services requested;
C. The ability of the vendor to provide the goods and supplies, equipment, materials, or nonprofessional services requested promptly or within the time specified, without delay, interference, or service interruption;
D. The ability of the vendor to demonstrate the attributes of trustworthiness, quality, fitness, capacity, and experience to satisfactorily perform;
E. The character, integrity, reputation, judgment, references, experience, and efficiency of the vendor;
F. The quality of vendor’s performance history and record on previous purchases or contracts with the city;
G. The ability of the vendor to provide future maintenance, repair parts, and services for the use of the goods and supplies, equipment, or materials purchased; and
H. The ability of the vendor to demonstrate its prior, current, and continued compliance during the contract term with all applicable federal, state, and local laws, statutes, ordinances and all lawful orders, rules, and regulations promulgated thereunder.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.110 Exceptions to purchasing requirements.
The procurement policies and procedures set forth in Sections 3-08.070, 3-08.080, 3-08.090 and 3-08.150 need not be followed, may be dispensed with, and are not applicable, irrespective of their estimated value, when the City Council or Purchasing Officer find and determine that the following situations, purchases, procurements or contracts apply, but are otherwise subject to the purchasing limitations set forth in this code:
A. When goods and supplies, equipment, materials, or contract services are of a unique, sole source nature because of their quality, durability, availability, or fitness for a particular use and are available only from one source. A sole source procurement is a procurement where only one source is practicably available for the type of procurement required;
B. When the goods and supplies, equipment, materials, or nonprofessional services are proprietary. A proprietary procurement is a procurement where the desired good or service must be restricted to one manufacturer because the good or service is compatible with or is an integral component of existing equipment or products, is necessary to support a specific need of a program, is covered by patent or copyright, must yield absolute continuity of results, or is one with which a user has extensive experience and the use of any other similar good or service would require considerable reorientation and training. Under such circumstances, an equitable evaluation of comparable goods or services should be made showing that rejection of other goods or services is based solely on their failure to meet that need;
C. When after a reasonable attempt has been made to obtain informal bids or proposals, and it has been determined by the Purchasing Officer that three bids or proposals cannot be obtained;
D. When emergency conditions require the immediate purchase of goods and supplies, equipment, materials, or services. For purposes of this section, emergency purchases are those procurements that are required to prevent immediate interruption or cessation of necessary city services or to safeguard life, property, or the public health and welfare. The Purchasing Officer shall file promptly with the City Council a report showing such conditions and the necessity for such action, together with an itemized account of all expenditures;
E. When formal bidding is not likely to result in the lowest price. However, under such circumstances compliance with the informal procedures set forth in Section 3-08.080 should be considered;
F. When a specific make, model, or brand is necessary to match existing city equipment or to facilitate the continuity of effective maintenance and support;
G. When the goods and supplies, equipment, materials, or nonprofessional services are available from a vendor who has been selected as the lowest bidder through a procurement with another local public agency or government entity using competitive bidding procedures substantially the same as or similar to those normally utilized by the city for the acquisition of such goods and supplies, equipment, materials, or services, and when the price offered to the city is substantially equivalent to that offered to the other public agency or government entity;
H. When the goods and supplies, equipment, materials, or nonprofessional services are available from suppliers who have been awarded contracts by the state of California for the purchase of goods and supplies, information technology, and services where state procurement is made in the form of master agreements, price schedules, or multiple award schedules that allow the state to take advantage of leveraged pricing that can be obtained through the state’s buying power and where the state has determined that such vendor pricing is deemed to be reasonable, fair, and competitive. Pursuant to such state multiple award programs, the Purchasing Officer or City Council may make these purchases directly from the vendors without competitive bidding, or the state may provide assistance to the city in making such purchases;
I. When an unusual or unique situation exists, in that due to experience, specialized qualifications, particular expertise, performance history, and/or reputation, a particular company, vendor, consultant, or contractor is uniquely qualified for a particular task or project, which makes application of the requirements for competitive solicitation under this chapter contrary to either the intended purpose of the project or the public interest;
J. When, in the opinion of the City Council, it is determined that compliance with the procurement policies, procedures and/or requirements is not in the best interest of the city;
K. When goods and supplies, equipment, or nonprofessional services are for information technology or computer hardware, software, programming, or related equipment and devices, such procurements shall be subject to the informal procedures set forth in Section 3-08.080;
L. When goods and supplies, equipment, materials, and nonprofessional or professional services are for any of the following:
1. Contracts for professional or other expert witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which the city is or may become a party, including contracts for special investigative services;
2. Contracts to commission original works of art, and for fine art or any form of public art;
3. The purchase of miscellaneous books, magazines, newspapers, subscriptions, online library reference services, film, videos, and assorted materials;
4. Intergovernmental payments, purchases, and agreements, including but not limited to contracts for the procurement of law enforcement or other public safety services;
5. Contracts for government affairs, public relations, and legislative advocacy or affairs;
6. Contracts for economic development services;
7. Specialized seminar, training, and educational classes;
8. Contracts for election services;
9. Contracts for appraisal services;
10. Contracts for entertainment services;
11. Contracts for community support and/or recreation services;
12. Contracts for printing and/or graphical design services.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.120 Amendments and change orders.
Following the award of a procurement contract for goods and supplies, equipment, materials, or nonprofessional services pursuant to Sections 3-08.070, 3-08.080, and 3-08.090, the contract may be amended by the issuance of a change order or amendment, provided the change which is the subject of the change order or amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s) and the Finance Director will confirm the availability of funds for the proposed change in the event that the change order increases the contract cost. Any change order or amendment which results in a total contract amount of fifty thousand dollars ($50,000.00) or less may be approved by the Purchasing Officer. Any change order or amendment which results in a total contract amount of greater than fifty thousand dollars ($50,000.00) shall be approved by the City Council. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.130 Vehicle purchases.
Any vehicle(s) with an estimated value greater than twenty thousand dollars ($20,000.00) to be purchased or leased by the city shall be approved in advance by the City Council prior to commencement of the procurement process. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.140 Trade-ins.
The Purchasing Officer is authorized to exchange for or trade in goods and supplies, equipment, and materials for the purpose of exchanging or trading in such supplies and equipment for like-kind replacement, for other commodities, products, equipment, or property, or for rebate, down payment, or credit toward the purchase of other similar goods and supplies, equipment, or materials. The Purchasing Officer shall not consider the trade-in value amount in calculating the procurement authority dollar thresholds established in Sections 3-08.070, 3-08.080, and 3-08.090. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.150 Professional services contracts.
A. The informal and formal bidding procedures contained in this chapter shall not apply to contracts for professional services. Rather, to secure professional services, the city shall utilize a request for proposals procedure, the method and details of which shall be promulgated by the City Manager in the form of administrative regulations. The City Manager may award any contract for professional services when the total not to exceed contract amount of such services is fifty thousand dollars ($50,000.00) or less. Any contract for professional services having a total contract amount of greater than fifty thousand dollars ($50,000.00) shall be awarded by the City Council.
B. In the event of a vacant city employee position previously approved by the City Council, the City Manager shall have the authority to award any and all contracts for the same or substantially similar services to independent contractors or consultants when the cost of such contract does not exceed the salary, benefits, and other related costs of the vacant position.
C. Notwithstanding any provision in this chapter to the contrary, selection by the city for professional services in areas including but not limited to private architectural, landscape architectural, engineering, environmental, land surveying, construction project management, management and administration, financial, accounting, auditing, actuarial, economics, and/or development and planning, which involve the exercise of discretion and independent judgment together with an advanced or specialized knowledge, expertise, training, or unique skills gained by formal studies or experience, shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required, and shall not be awarded solely on the basis of cost. In order to implement this method of selection, the City Manager shall promulgate administrative regulations concerning contracting for professional services to ensure that such services are engaged 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. In accordance with state law, the city shall consider price after the city is satisfied that the would-be person, company, corporation, contractor, consultant, or firm has demonstrated the competence and professional qualifications necessary for the satisfactory performance of the services required.
(Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.160 Amendments to professional services contracts.
Contracts for professional services pursuant to Section 3-08.150 may be amended by the issuance of a written amendment provided the change which is the subject of the amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s), and the Finance Director will confirm the availability of funds for the proposed change in the event that the amendment increases the contract cost. Any amendment which results in a total contract amount of fifty thousand dollars ($50,000.00) or less may be approved by the City Manager. Any amendment which results in a total contract amount of greater than fifty thousand dollars ($50,000.00) shall be approved by the City Council. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))
3-08.170 Exemptions to provisions of this chapter.
The provisions of this chapter are not applicable to the following procurements, which may be approved by the City Council and are otherwise subject to the requirements of this code: contracts for banking and/or investment services; franchise agreements; and contracts for procuring and maintaining insurance policies for the benefit of the city. (Ord. 2016-3 § 1 (part): Ord. 2011-1 § 1 (part))