Chapter 3.08 PURCHASING

This chapter shall be known as the City of Palmdale purchasing ordinance. The provisions of this chapter shall prevail over any conflicting State law. The purpose of this chapter is to establish procedures and policies for the procurement of goods, materials, equipment, supplies and services, including, but not limited to, construction of public works projects and professional services. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010)

3.08.020 Policy of competitive procurement.

It is the policy of the City to utilize competitive procurement processes to obtain the best quality and prices for needed goods, materials, equipment, supplies and services except as provided in this chapter. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010)

3.08.030 Requirement of good faith.

This chapter requires all parties involved in the negotiation, performance, or administration of City contracts to act in good faith. (Ord. 1599 § 1 (Exh. A), 2022)

3.08.040 Administrative regulation and instructions.

The City Manager or designee is authorized to adopt written administrative regulations and instructions that are consistent with and that further the terms and requirements set forth within this chapter. City Manager or designee from time to time may amend any or all such rules and regulations necessary for the operation of this chapter. (Ord. 1599 § 1 (Exh. A), 2022)

3.08.050 Adoption of centralized purchasing system.

In order to establish efficient procedures for the purchase of goods, materials, equipment, supplies and services, to secure for the City goods, materials, equipment, supplies and services at the lowest possible cost, commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority of the purchasing function and to assure the quality of purchases, a centralized purchasing system is hereby adopted. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.040)

3.08.060 Definitions.

As used in this Chapter, unless the context otherwise clearly indicates:

(A) “Awarding authority” means the Palmdale City Council employee of the City of Palmdale authorized to award or enter into any contract, as defined in this Chapter, on behalf of the City.

(B) “Bid” means a response to a procurement solicitation, including a bid, a proposal, and a statement of qualifications and experience.

(D) “Competitive procurement process” means a selection process where contractors and vendors who supply goods, materials, equipment, supplies, and services to the City are selected through a formal or informal process that allows full, fair, and open competition for all qualified contractors with selection based on specified criteria established to best meet the needs of the City. Invitations for bids, requests for proposals, and requests for qualifications and experience are examples of competitive procurement processes.

(E) “Construction projects” and “public projects” mean those public projects as defined in California Public Contract Code Section 22002.

(F) “Contract” is synonymous with “agreement” and, regardless of which term is used, means a written agreement between the City and a vendor, including a purchase order issued to a vendor, for the procurement or disposition of goods, materials, equipment, supplies, and services.

(G) “Contractor” includes vendor and means any person who has entered into a contract with the City.

(H) “Designee” means any person to whom the Procurement Officer delegates authority under this Chapter.

(I) “Director of Finance” shall mean that individual who is appointed to that position and, in their absence, the City Manager shall act as the Director of Finance, subject to PMC § 3.02.070.

(J) “Eligible local provider” shall mean a local provider who is an otherwise responsible bidder and responsive to the City’s procurement solicitation.

(K) “Local provider Palmdale” shall mean a manufacturer, supplier, or provider of goods, materials, equipment, supplies, or services that has an established place of business within the City of Palmdale, which has complied with City of Palmdale business license requirements, and which has paid all currently due business license fees and taxes prior to the City’s solicitation for the respective purchase.

(L) “Materials” means all property, including, but not limited to, equipment and supplies, but does not include land, a permanent interest in land, or leases of real property.

(M) “Procurement” and “procure” mean the acquisition of materials or services, professional services, or construction projects by the City, including but not limited to purchasing, renting, or leasing, and all functions and procedures pertaining to such acquisitions, such as a description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration.

(N) “Procurement Officer” means the Director of Finance or their designee. The Procurement Officer shall manage the City’s Purchasing Office to procure goods, materials, equipment, supplies, and services for the City.

(O) “Proposal” means any response to a City solicitation for proposals.

(P) “Purchasing Office” means the division in the Finance Division that handles the procurement process to procure goods, materials, equipment, supplies and services for the City.

(Q) “Services” means the furnishing of labor, time, or effort by a contractor.

(R) “Solicitation” means an invitation for bids, a request for technical offers, a request for proposals, a request for qualifications, a request for quotations, or any other invitation or request by which the City invites a person to participate in a procurement.

(S) “Using department” means any office, department, commission, board or other agency of the City using goods, materials, equipment, supplies or services. (Ord. 1645 § 3, 2024; Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.030)

3.08.070 Eligible vendors.

Prior to a vendor and/or contractor proposing and/or bidding on a City project, they must register with the City’s electronic bid management system. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.120)

3.08.080 Procurement officer duties and authority.

(A) The Director of Finance is hereby designated as the Procurement Officer of the City. The Director of Finance may delegate procurement authority to any designee, as well as such other duties and functions as may be required.

(B) Except as specifically exempted herein, upon the Director of Finance’s designation of a separate Procurement Officer, that Procurement Officer shall have authority to:

(1) Procure, purchase, and contract for all goods, materials, equipment, supplies, and services required by any using department in accordance with purchasing procedures prescribed by this Chapter;

(2) Negotiate and recommend execution of contracts for the purchase of goods, materials, equipment, supplies, and services;

(3) Act to procure for the City the needed quality in goods, materials, equipment, supplies, and services at least expense to the City;

(4) Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases;

(5) Prepare and recommend to the Director of Finance rules governing purchasing, maintaining an inventory, and warehousing of goods, materials, equipment, supplies and services of the City;

(6) Keep informed of current developments in the fields of purchasing, prices, market conditions and new products;

(7) Prescribe and maintain such forms as are reasonably necessary to the operation of this Chapter and other rules and regulations;

(8) Be responsible for the inspection of all goods, materials, equipment, supplies, and services purchased to ensure conformance with specifications and, where necessary, to require chemical and physical tests of samples submitted with bids and samples of deliveries to determine their quality and conformance with specifications; and

(9) Maintain a vendors list of qualified vendors and contractors. (Ord. 1645 § 4, 2024; Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.050)

3.08.090 Delegation to other departments.

(A) The Director of Finance may authorize, in writing, any using department to purchase and contract for specified goods, materials, equipment, supplies, and services independently of the Central Purchasing Office; but the Director of Finance shall require that such purchases and contracts be made in conformity with the procedures established by this Chapter, and shall further require periodic reports from the using department on the purchases and contracts made under such written authorization.

(B) Contracts to implement the capital improvement program and for construction services for public projects shall be procured by the Director of Public Works/designee in cooperation with the Finance Director/Procurement Officer and in compliance with the requirements of this Chapter and the Palmdale Charter. For contracts to be procured by the Public Works Department, the references in this Chapter to the separately designated Procurement Officer’s authority and duties shall apply to the Director of Public Works/Designee unless, by mutual agreement between the departments, the Director of Finance agrees to perform such tasks. (Ord. 1645 § 5, 2024; Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.060)

3.08.100 Small purchases ($30,000 and under) – Nonpublic projects and/or nonconstruction projects.

Goods, materials, equipment, supplies and services less than or equal to $30,000 may be procured by purchase order or negotiated contract and need not be publicly bid but shall be procured at a reasonable price in a manner that best meets the needs of the City. Care shall be taken to avoid the appearance of favoritism, bias or preclusion of new vendors. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.160)

3.08.110 Procurement ($30,000 to $150,000) – Nonpublic projects and/or nonconstruction projects.

Except as otherwise provided herein, goods, materials, equipment, supplies and services valued at more than $30,000 but less than or equal to $150,000 may be procured by the open market procedure described herein.

(A) Solicitation Notice. At least 10 business days before the date of opening of the proposals, the Procurement Officer shall mail or send electronically a notice requesting quotations or proposals to a minimum of three vendors or contractors on the City vendors list listed as qualified to provide the required type of service, supplies or equipment. If there are no vendors or contractors on the City’s vendors list qualified to provide the type of goods, materials, equipment, supplies or services sought, the notice shall be posted on at least two websites that publish solicitations and specifications which have been determined to provide best notice to potential bidders for the type of goods, materials, equipment, supplies or services sought and/or publish the notice in a newspaper of general circulation within the City. The notices inviting bids, requesting proposals or requesting qualifications and experience shall include a general description of the goods, materials, equipment, supplies or services to be procured, describe how to obtain more detailed information, state where bid forms and specifications may be obtained and state the time and place for submission of bids, proposals or statements of qualifications and experience.

(B) Minimum Number of Quotations. If fewer than three quotations, proposals or informal bids are received, the Procurement Officer may reject all bids, re-notice the procurement, determine to use a formal solicitation or make the award based on less than three quotations. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1473 § 2, 2015; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.170)

3.08.120 Procurement ($150,000 and above) – Nonpublic projects and/or nonconstruction projects.

Except as otherwise provided herein, purchases of goods, materials, equipment, supplies and services of an estimated dollar value greater than $150,000 shall be procured by a formal competitive procurement process, and awarded to the responsive, responsible bidder who best meets the City’s needs based on the criteria specified in the formal solicitation.

(A) Solicitation Notice. Notices inviting bids, requesting proposals or requesting qualifications and experience shall include a general description of the goods, materials, equipment, supplies or services to be procured, describe how to obtain more detailed information, state where bid forms and specifications may be obtained and state the time and place for submission of bids, proposals or statements of qualifications and experience.

(1) Published Notice. The notice inviting bids, requesting proposals or requesting qualifications and experience shall be published on at least two websites that publish solicitations and specifications which have been determined to provide best notice to potential bidders for the type of goods, materials, equipment, supplies or services to be procured, at least 30 calendar days before the date of closing of the bids.

(2) Additional Mailed Notice. The Procurement Officer may also mail or email the solicitation notice to prospective vendors and contractors whose names are or are not on the City’s vendors list.

(B) Bidder’s Security. When deemed necessary or appropriate by the Procurement Officer, a bidder’s security in an amount deemed appropriate may be required.

(C) Bid Opening Procedure. All bids shall only be submitted electronically through the City’s electronic bid management system, unless otherwise specified in the solicitation notice. Paper sealed bids shall not be accepted. The Procurement Officer, in connection with the designated reviewers of the bids and proposals, shall review the bids and evaluate them as set forth in the criteria in the request for proposals. The proposer with the highest evaluated score shall be recommended for award to the City Council.

(D) Rejection of Bids. Any and all bids may be rejected at the discretion of the City. If the City intends to reject all bids, the Procurement Officer/designee will provide notice to all bidders via the City’s bidding portal. After rejecting all bids, the City may:

(1) Abandon the project;

(2) Re-advertise the project; or

(3) Perform the work with City forces. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1473 § 3, 2015; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.180)

3.08.130 Bid protest procedures/solicitations.

All protests regarding a solicitation must be submitted in writing to the Procurement Officer. This includes all protests relating to advertising of the solicitation notice, deadlines, or proposal opening, as well as any protest relating to alleged improprieties with the solicitation process. To be considered valid, the protest must be submitted in writing by an authorized representative of the contractor and (1) specify the grounds upon which the protest is based and (2) come from a bidder who claims to be the successful bidder. A protest will not be considered valid if filed by a bidder who cannot show they would be awarded the contract if their protest were accepted.

(A) Bidders who have submitted a bid proposal are permitted to challenge the City’s intent to award a contract. A bidder shall have five business days after the issuance of the notice of intent to award (NOIA) to file a protest. A protest must include:

(1) The name, address, and telephone number of the protester.

(2) The signature of the protester or its representative.

(3) Identification of the project and the solicitation or contract number.

(4) A detailed statement of all the grounds for the protest, including, without limitation, all facts, supporting documentation, legal authorities, and arguments in support of the grounds for the protest, including providing copies of all relevant documents. All factual contentions must be supported by competent, admissible, and credible evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to these procedures shall be rejected as invalid.

(5) The form of relief requested.

Failure to protest within the time allotted shall constitute a waiver of any protest.

(B) The Procurement Officer shall review the merits and timeliness of the protest and issue a written decision to the respondent within seven calendar days of receipt of the protest.

(C) The respondent may appeal the decision of the Procurement Officer to the Director of Finance by filing a letter of appeal within 10 calendar days from the date of the Procurement Officer’s decision. The letter must be addressed to the Director of Finance and set forth the information required in Subsection (A) of this Section. A letter of appeal not conforming to these procedures shall be rejected as invalid.

(D) The Director of Finance shall review the merits and timeliness of the letter of appeal and shall issue a written decision to the respondent within 14 calendar days of receipt of the letter of appeal. The decision of the Director of Finance is final. However, the decision is reviewable under the California Code of Civil Procedure Section 1094.5 et seq. The time in which judicial review of the decision must be sought shall be governed by California Code of Civil Procedure Section 1094.6, or as such section may be amended from time to time. (Ord. 1645 § 6, 2024; Ord. 1599 § 1 (Exh. A), 2022)

3.08.140 Exceptions to competitive procurement requirements.

(A) Specified Professional Services. The procurement of services from specified professional classifications, without regard to the dollar amount of the contract, is exempt from the competitive process but shall be selected based on qualifications. Such services include, but are not limited to, financial services, actuaries, psychologists, medical doctors, entertainers and performers, specialty services required for parks and recreation programs, claims consultants, insurance brokers, attorneys-at-law, and consultants and experts used during the ongoing course of litigation in which the City, Successor Agency of Redevelopment Agency, Housing Authority, or any of the boards, commissions, officers or employees are involved. The Director of Finance shall have the authority to approve similar professional classifications exempt from competitive procurement requirements.

(B) Sole Source. Where the Director of Finance determines that the materials or services are unique and available only from one source, so that the quotation procedure required by this Section would be meaningless, or where it would be undesirable or impossible for the City to solicit bids for a particular work, a contract may be let to a sole source. Sole source procurements may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area, or a specified product that the Director of Finance determines to be the only product that is acceptable. The basis upon which this determination is made shall be supported by written documentation signed by the requesting department head and provided to the Director of Finance. No sole source purchases may be made where to do so would show favoritism, improvidence, extravagance, fraud, or corruption or result in the waste of public funds, but may be used only to obtain the best economic result for the public.

(C) City’s Best Interest. Except where competitive bidding is required by Federal law or by reason of the source of funding for the project, goods, materials, equipment, supplies, and services may be procured by negotiated contract and without competition when the Director of Finance determines that, due to the nature of the supplies or equipment, bidding is not likely to serve the best interests of the City or to result in the lowest price.

(D) Cooperative Purchasing. The Central Purchasing Office may participate in, sponsor, conduct, or administer cooperative purchasing with other public agencies and with nonprofit groups or organizations established by public entities for the purpose of cooperative purchasing; provided, that competitive purchasing procedures similar to those required in the City of Palmdale are employed. Such participation may also consist of the following:

(1) Purchasing goods, materials, equipment, supplies, or services through contracts or bid award lists of others; provided, that competitive purchasing procedures similar to those required in the City were employed to create such contracts or bid award lists.

(2) Purchasing supplies and equipment through Federal programs when authorized by City Council.

(3) Participating in joint or cooperative sale or disposal of City property.

(E) Competitive Procurement. Any procurement for goods that are procured from a bidder who offers the same or better price, terms and conditions as the bidder previously offered as the lowest responsive bidder under a competitive procurement conducted by the City or another public agency under competitive purchasing procedures similar to those required in the City; provided, that, in the opinion of the Director of Finance, it is in the best interest of the City to do so.

(F) Technology – Owner. Procurement of a renewal of maintenance, license(s), support, or a similar need for existing technology systems, including hardware, and the items procured are from the owner/developer of the software/hardware or from a sole source provider and the Director of Finance is satisfied that the best price, terms and conditions have been negotiated.

(G) Technology – Reseller. Procurement of a renewal of maintenance, license(s), support or a similar need for existing technology systems, including hardware, and the items procured are from a vendor/reseller that was originally selected based on the City’s procurement standards; provided, that (1) the vendor has been used continuously since such selection, (2) there are no substantive changes to the procurement and (3) when it is determined by the Director of Finance to be in the best interests of the City to do so.

(H) City Equipment Repair. Procurement of parts and/or service for repairs to City equipment, which includes City vehicles and other motorized fleet related equipment.

(I) Emergencies. The City Manager, Assistant City Manager, or Director of Finance may execute contracts without the use of a competitive method without prior approval of the City Council when procurements are (1) for goods, materials, equipment, supplies, or services that are required to remedy an exigent situation where the health, safety, welfare or quality of welfare of the public or public property is endangered or severely reduced if immediate corrective or preventive action is not taken, (2) to prevent or minimize serious disruption in City services, or (3) in the reasonable opinion of the City Manager, Assistant City Manager, or Director of Finance, whenever the best interests of the City are served. The Procurement Officer/Designee shall implement procedures to meet these requirements and, when practicable, conduct an open market procurement for the award of an emergency contract. Any emergency purchases made in excess of the City Manager’s threshold authority shall be submitted to City Council for approval as soon as practicable. (Ord. 1645 § 7, 2024; Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.080)

3.08.150 Use of City forces.

City forces may be used to perform services including but not limited to repairs, maintenance and construction of public projects, in compliance with the California Public Contract Code, whenever such use best meets the needs of the City. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010. Formerly 3.08.110)

3.08.160 Award of contracts.

Contracts shall be awarded to the vendor or contractor who best meets the needs of the City based on specified criteria, including but not limited to the following:

(A) Price.

(B) Qualifications and experience.

(D) Schedule and ability to meet the City’s time constraints.

(E) Percentage of local employees for both prime and subcontractors who will perform one percent or more of the contract.

(F) Any other criteria appropriate for the type of contract to be awarded. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010. Formerly 3.08.140)

3.08.170 Public works projects and construction projects.

Except where specifically exempted from such laws by ordinance of the City Council, contracts for construction projects in the City shall be governed by applicable State laws, including the California Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Public Construction Cost Accounting Act, which are hereby adopted for use in the City. Contracts for construction shall also be governed by the current edition of the standard specifications for public works construction, and the latest supplement thereto, adopted by the Greenbook Committee of the Public Works Standards, Inc., or other standards required depending on the project, except as otherwise provided by the City Council or the Procurement Officer if the contract is within his/her authority.

(A) Bidding Thresholds.

(1) Construction projects less than the amount specified in Section 22032(a) (currently $60,000 or less) of the California Public Contract Code may be performed by City forces, by negotiated contract or by purchase order.

(2) Construction projects less than the amount specified in Section 22032(b) (currently $200,000 or less) of the California Public Contract Code may be let to contract by informal bidding procedures set forth in Subsection (D) of this Section, to the lowest responsible bidder.

(3) Construction projects of more than the amount specified in Section 22032(c) (currently $200,000 and over) of the California Public Contract Code shall be let by formal bidding procedure, set forth in Subsection (E) of this Section, to the lowest responsible bidder.

(4) It shall be unlawful to split projects into smaller work orders or projects for the purpose of evading the provisions of this Chapter or applicable State laws.

(5) After the effective date of any contract approved by the City Council for work on a public project, the City Manager shall have the authority to approve in writing any amendment or change order directing an addition, deletion, or revision in such contract, including, without limitation, plans, specifications, and the nature or quantity of services, equipment, supplies or work, so long as the cumulative dollar value of all such change orders relating to any one contract shall not exceed 15 percent of the contract price unless City Council has authorized a different change order amount for a specific contract.

(B) Bidder’s Security. A bidder’s security in an amount equal to at least 10 percent of the amount of the bid shall be submitted with a bid. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within the time specified in the invitation to bid unless the City is responsible for the delay. The City may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive bidder. If the City awards the contract to the next lowest responsive bidder, the amount of the lowest bidder’s security shall be applied by the City to the difference between the lowest bid and the next lowest bid, if any, and the surplus, if any, shall be returned to the lowest bidder.

(C) Registering With the City’s Electronic Bid Management System. All prospective bidders must be registered as a vendor with the City’s electronic bid management system to access all notice inviting bids and solicitation documents, including any attachments.

(D) Notice Inviting Bids, Informal Bidding. The notice inviting 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. Notice shall be provided in accordance with either Subsection (D)(1) or (D)(2) of this Section, or both.

(1) The Central Purchasing Office or the Public Works Department, through the City’s electronic bid management system, shall maintain a list of qualified contractors, identified according to categories of work. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this Subsection shall be completed not less than 10 calendar days before bids are due.

(2) The Central Purchasing Office or the Public Works Department may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals specified in Section 22036 of the California Public Contract Code.

(3) If all the bids received are in excess of $200,000, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract, at $212,500 or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.

(E) Notice Inviting Bids, Formal Bidding. The notice inviting bids shall distinctly state the project to be done. Notice shall be provided as set forth in Subsection (E)(1) of this Section.

(1) Notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the City. The notice inviting formal bids shall also be sent electronically by either facsimile or electronic mail through the City’s electronic bid management system and mailed to all construction trade journals specified in Section 22036 of the California Public Contract Code. The notice shall be sent at least 14 calendar days before the date of opening the bids.

(2) Additional Notice. In addition to the notice required by Subsection (E)(1) of this Section, the City may also give such other notice as it deems proper, including mailing or emailing the notice to prospective vendors and contractors whose names are or are not on the City’s vendors list.

(F) Bid Submittals and Opening Procedure. All bids shall only be submitted electronically through the City’s electronic bid management system unless otherwise specified in the notice inviting bids. Paper-sealed bids shall not be accepted. Bids shall be opened and evaluated on the City’s electronic bid management system. After the completion of the evaluation and scoring process, the City will issue an update on its electronic bid management system, changing the award status to pending, and will indicate the successful bidder, bid amount, and date of the applicable City Council meeting where the contract will be recommended for award.

(G) Award of Bid. The City Manager, or designee, has the authority to award informal bids up to the amount specified in PMC § 3.08.240. Any informal bid over the threshold set forth in PMC § 3.08.240 shall be awarded by City Council. All formal bids shall only be awarded by the City Council. A bid shall be awarded to the lowest responsible bidder.

(H) Rejection of Bids. Any and all bids may be rejected at the discretion of the City. If the City intends to reject all bids, the Procurement Officer/designee must mail notice of the City’s intent to reject the bid at least two business days prior to the City Council meeting at which the bids will be considered. After rejecting all bids, the City may:

(1) Abandon the project;

(2) Re-advertise the project; or

(3) By a passage of a resolution by a four-fifths vote of the City Council, perform the work with City forces. (Ord. 1645 § 8, 2024; Ord. 1599 § 1 (Exh. A), 2022)

3.08.180 Bid protest procedures/public works construction bids.

All protests regarding a solicitation must be submitted in writing to the City’s Project Manager listed in the solicitation materials. This includes all protests relating to advertising of the notice inviting bids, deadlines, and bid proposal opening, as well as any protest relating to alleged improprieties with the solicitation process. To be considered valid, the protest must be submitted on contractor letterhead, and (1) specify the grounds upon which the protest is based and (2) come from a respondent for the award of a contract who claims to be the lowest responsive bidder. A protest will not be considered valid if filed by a bidder who cannot show they would be awarded the contract if their protest were accepted.

(A) Respondents who have submitted a bid proposal are permitted to challenge the City’s intent to award a contract. A bidder shall have five calendar days after the posting of the bid results on the City’s electronic bid management system to file a protest. A protest must include:

(1) The name, address and telephone number of the protester.

(2) The signature of the protester or its representative.

(3) Identification of the project and the solicitation or contract number.

(4) A detailed statement of all the grounds for the protest including, without limitation, all facts, supporting documentation, legal authorities, and arguments in support of the grounds for the protest, including providing copies of all relevant documents. All factual contentions must be supported by competent, admissible and credible evidence. Any matters not set forth in the written protest shall be deemed waived. Any protest not conforming to these procedures shall be rejected as invalid.

(5) The form of relief requested.

Failure to protest within the time allotted shall constitute a waiver of any protest.

(B) The Director of Public Works, or designee, shall review the merits and timeliness of the protest and issue a written decision to the respondent within seven calendar days of receipt of the protest.

(C) The decision of the Director of Public Works, or designee, is final. However, the decision is reviewable under the California Code of Civil Procedure Section 1094.5 et seq. The time in which judicial review of the decision must be sought shall be governed by California Code of Civil Procedure Section 1094.6, or as such section may be amended from time to time. (Ord. 1599 § 1 (Exh. A), 2022)

3.08.190 Contract provisions.

(A) All contracts, including, but not limited to, those for design professional services and for construction-related services, shall require the contractor to fully indemnify the City for all damages and loss caused by them, without regard to negligence and whether caused in whole or in part by the contractor.

(B) Payment and performance bonds in amounts determined by the City to provide appropriate protection shall be required, or as otherwise required by State law.

(C) Contractors shall advertise any job openings with the Palmdale Worksource Center and, if applicable, shall follow the requirements in the Community Workforce Agreement. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1473 § 1, 2015; Ord. 1398 § 2 (Exh. A), 2010. Formerly 3.08.150)

3.08.200 Types of contracts.

The award of contracts for construction, repairs, maintenance and other services shall not be limited to the standard process of design/bid/build, but alternative contracting methods such as job order contracting, design/build, and construction manager at risk may be utilized whenever such alternative contracting methods best meet the needs of the City. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010. Formerly 3.08.100)

3.08.210 Multi-year contracts.

Unless otherwise provided by law, a contract for materials or services may be entered into for any period of time deemed to be in the best interest of the City, if the term of the contract and conditions of renewal or extension, if any, are included in the solicitation and monies are available for the first fiscal period at the time of contracting. Payment and performance obligations for succeeding fiscal periods are subject to the availability and appropriation of monies.

(A) Prior to use of a multi-year contract, it shall be determined that:

(1) Estimated requirements cover the period of the contract and are reasonably firm and continuing;

(2) The contract will serve the best interests of the City by encouraging effective competition or otherwise promoting economies in City procurement.

(B) When funds are not appropriated or otherwise made available to support continuation of performance in a subsequent fiscal year, the contract shall be cancelled. (Ord. 1599 § 1 (Exh. A), 2022)

3.08.220 Funding of purchases.

The Procurement Officer shall not authorize or issue a solicitation or written contract for goods, materials, supplies and services unless there exists a sufficient unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.200)

3.08.230 Purchase orders, requisitions, and written contracts.

Purchase orders for amounts greater than $5,000 are authorized for the procurements of goods, materials, supplies and equipment. Purchases of services under $30,000 may be made by a purchase order. Purchases of services valued at greater than $30,000 shall be made only by written contract executed by an authorized representative of the City. The procedures and authorized services are set forth in the administrative regulation and instructions. However, as set forth in the administrative regulations and instructions, certain contracts will be required regardless of the dollar amount; this includes contracts for the purchase of goods, materials, supplies and equipment. The using departments shall submit requests for services, supplies and equipment to the Procurement Officer using standard purchase requisition forms. No verbal agreement shall be binding on the City and no City employee has authority to verbally bind the City to any agreement or any course of action. (Ord. 1599 § 1 (Exh. A), 2022)

3.08.240 Approval of purchase orders, contracts, contract amendments and change orders.

(A) The approval authority for all purchase orders, contracts, contract amendments, and change orders shall be set forth as follows:

(1) The City Manager shall have the authority to review, approve, and execute, on behalf of the City, all purchase orders or contracts for the purchase or acceptance of goods, materials, supplies, and services in an amount not exceeding $125,000 per purchase order or contract, so long as the proper procurement procedures set forth in this Chapter have been followed.

(2) All purchase orders or contracts in excess of $125,000 or change orders that cause the total contract or purchase order to exceed $125,000 shall be submitted to the City Council for approval.

(3) The City Manager shall have the authority and discretion, up to the amount authorized under Subsection (A)(1) of this Section, to delegate the authority to review, approve, and execute contracts, purchase orders, contract amendments, and change orders of goods, materials, supplies, and services to specific department representatives based on the needs of the organization.

The department representative exercising such authority given above shall ensure that the total of all contracts, purchase orders, contract amendments, and change orders does not exceed their delegated authority on a single contract or purchase order per fiscal year period, so long as the proper procurement procedures set forth in this Chapter have been followed.

(B) For contracts under $125,000, the City Manager shall have the authority to approve in writing any change order directing an addition, deletion, or revision to such purchase orders or contracts; however, in no event shall the sum total of the purchase order or contract, including all such change orders, exceed $125,000 per purchase order or contract. Any change order in which a contract or purchase order will exceed $125,000 will require City Council approval.

(C) After the effective date of any contract approved by the City Council for the purchase of services, equipment or supplies, the retention of professional services, or work on a public project, the City Manager shall have authority to approve in writing any amendment or change order directing an addition, deletion or revision in such contract, including, without limitation, plans, specifications, and the nature or quantity of services, equipment, supplies or work, so long as the cumulative dollar value of all such change orders relating to any one contract shall not exceed 15 percent of the original contract price unless City Council has authorized a different change order amount for a specific contract.

(D) Any change order exceeding the limitations set forth in Subsection (C) of this Section shall be submitted to the City Council for approval in the form of a contract amendment or supplemental agreement. Such amendment or supplemental agreement shall set forth the amended contract price, which will constitute the new contract price for purposes of the authority for City Manager-approved change orders or amendments in accordance with Subsection (A) of this Section. (Ord. 1645 § 9, 2024; Ord. 1599 § 1 (Exh. A), 2022; Ord. 1542 § 1, 2020; Ord. 1440 § 1, 2013; Ord. 1425 § 1, 2011; Ord. 1398 § 2 (Exh. A), 2010; Ord. 1347 § 1, 2008. Formerly 3.08.210, 3.08.220)

3.08.250 Local business preference.

In order to promote the economic health and development of the City, to stimulate and enhance the local economy, to generate jobs and spur further investment into the community, to recognize the amount of sales tax that is returned to the City as a result of the award of a purchase contract for goods, materials, equipment, and supplies to a local bidder, and to encourage local participation in the purchase of goods, materials, equipment, and supplies, the City shall grant a local business preference as provided herein.

(A) In determining the price submitted in response to a formal or informal solicitation, the awarding authority is authorized to extend a local business preference to a local provider Palmdale who submits a price within five percent of the lowest price submitted by any other bidder.

(B) The local business preference shall be applied to bids and proposals in the following manner:

(1) The awarding authority is authorized to give a local business preference to a responsive, local provider Palmdale, when awarding a contract for the purchase of goods, materials, equipment, or supplies. The responsive, local provider Palmdale must be able to provide the goods, materials, equipment, or supplies in a manner and quality which meets the specifications outlined in the bid or proposal.

(2) In determining if a local business preference is applicable the awarding authority shall reduce the total price bid or proposal by the local provider Palmdale by five percent. If the resulting amount of the local provider Palmdale is the same as or lower than the lowest responsive bidder, the local provider Palmdale shall be deemed the lowest responsive bidder. If the local provider Palmdale is ultimately awarded the contract, the contract price shall in all events be the original amount bid by that local provider Palmdale, not taking into account any local business preference granted.

(3) If, after allowing a local business preference, two or more bids are determined to be substantially equal, the awarding authority, in its discretion, may award the contract to either party.

(C) The local business preference authorized under this section shall also be subject to the following additional requirements:

(1) This section neither creates a right to receive a bid preference, nor a duty to grant a bid preference;

(2) This section only applies to contracts involving the expenditure of funds entirely within the City’s control. This section shall not apply to contracts involving State or Federal grant funds, where the granting of preferences is prohibited;

(3) This section shall not apply to contracts which are required under State or Federal law, or this Chapter, to be granted to the lowest responsible bidder, or in any situation where the granting of a local business preference would otherwise be prohibited by law; and

(4) This section shall not apply to contracts made in cooperation with other public entities.

(D) To qualify as a local business, a contractor must satisfy all of the following criteria:

(1) Meet the definition for local provider Palmdale as set forth in this Chapter.

(2) The contractor shall certify under penalty of perjury, as a part of its bid and in a form and manner as required by the City, that the contractor qualifies as a local provider Palmdale. If this certification does not appear on the respective bid, the local business preference shall not be considered.

(3) Qualifications as a local provider Palmdale must be reestablished for each new solicitation.

(4) Any contractor granted a local business preference must continue to maintain its qualifications as a local business for the duration of the contract for which the local business preference was granted.

(E) Contractors shall have an affirmative duty to notify the City if facts change, such that the contractor no longer qualifies as a local provider Palmdale. If a contractor fails to maintain its qualifications under this section, the awarding authority shall be entitled to withhold or recover from the local business an amount equal to the value of the local business preference granted. The awarding authority may also withhold or recover any other costs reasonably incurred by the City as a result of the contractor’s failure to maintain its qualifications under this section. Prior to seeking to withhold or recover funds, the City must provide 15 calendar days’ written notice and opportunity to cure the violation to the contractor. These remedies available to the City under this section are cumulative to all other rights and remedies available to the City under current law.

(F) Any contractor that has obtained the status of a local provider Palmdale by reason of having furnished false or misleading information, or by reason of having withheld information where the contractor knew or should have known the information was false or misleading or that the information withheld was relevant to the awarding authority’s determination, and as a result been awarded a contract to which it would not otherwise have been entitled, shall:

(1) Be subject to termination by the City of all or part of the contract entered into with such contractor as determined by the City Manager.

(2) Pay the City the difference between the full value of the contract awarded to the person or business and the amount that would have been incurred by the City if the contract had been awarded to the next qualified bidder without taking the contractor’s bid into account.

(3) Be subject to debarment from future award of contracts from the City.

(G) Nothing in this section shall be construed to limit or restrict the City’s right and obligation to compare the quality and fitness of all goods, materials, equipment, and supplies proposed to be purchased by the City, or the duty to review and compare the character, responsibility, fitness and qualification of all persons or businesses submitting bids or proposals to the City. Furthermore, the preferences authorized in this section shall not be construed to limit the City’s ability to grant any other preferences authorized by law. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1538 § 1, 2020; Ord. 1519 § 1, 2019; Ord. 1398 § 2 (Exh. A), 2010. Formerly 3.08.130)

3.08.260 SB 1383 procurement requirements.

(A) Any direct service provider of the City’s Community Choice Aggregation program (CCA) or landscaping, maintenance, renovation, and construction shall comply with the City’s SB 1383 procurement requirements.

(1) Use compost, mulch and eligible materials, as practicable, produced from recovered organic waste, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. Use renewable gas for fuel for transportation, electricity, or heating applications, whenever available, and capable of meeting quality standards and criteria specified. Use electricity from biomass conversion, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 eligible compost, mulch, renewable gas, and electricity used to comply with procurement requirements shall comply with 14 California Code of Regulations, Division 7, Chapter 12, Article 12 and must meet or exceed the standards specified in 14 California Code of Regulations Section 18993.1. Mulch used for land application shall comply with 14 California Code of Regulations, Division 7, Chapter 12, Article 12 and must meet or exceed the standards specified in 14 California Code of Regulations Sections 17852(a)(24.5)(A)(1) through (3).

(2) Keep and provide records of procurement of recovered organic waste products (either through purchase or acquisition) to the City, upon completion of projects. Information to be provided shall include:

(a) General description of how and where the product was used and, if applicable, applied;

(b) Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the recovered organic waste products were procured;

(d) Quantity of each product; and

(e) Invoice or other record demonstrating purchase or procurement.

(B) All vendors providing paper products and printing and writing paper shall:

(1) If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least 30 percent, by fiber weight, postconsumer fiber instead of nonrecycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than nonrecycled items.

(2) Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standards as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

(3) Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

(4) Certify in writing, on invoices or receipts; provided, that the paper products and printing and writing paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

(5) Provide records to the City or its designee of all paper products and printing and writing paper purchases within 30 days of the purchase (both recycled-content and nonrecycled content, if any is purchased) made by any division or department or employee of the City. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in subsections (B)(3) and (B)(4) of this section for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if nonrecycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided. (Ord. 1599 § 1 (Exh. A), 2022; Ord. 1587 § 6, 2022, Formerly 3.08.230)