CHAPTER 6
PURCHASING AUTHORITY
ARTICLE 2. BIDDING PROCEDURES
SECTION:
§1520: Competitive Bidding Required
§1521: Formal Contract Procedure
§1522: Open Market, Informal Bidding And Contractual Services Procedure
§1520 COMPETITIVE BIDDING REQUIRED
All purchases of, and contracts for supplies, and all sales of personal property which has become obsolete and unusable shall, except as specifically provided herein, be based wherever possible on competitive bids. (Ord. 667, §2, adopted 1975)
§1521 FORMAL CONTRACT PROCEDURE
When formal public bidding to the lowest responsive and responsible bidder is required by this code or applicable state law, the city shall invite bids and award contracts using the following procedures and such other or different applicable procedures as may be required by state law or other provisions of this code:
A. Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased or services to be rendered and shall state where bid blanks, specifications and plans (if applicable) may be secured, and the time and place for opening bids, all in accordance with policies adopted by the city council.
1. Published Notice: Notices inviting bids shall be published at least ten (10) days before the date of opening of the bids or for such longer period as may be required by state law, such as the California uniform public construction cost accounting act1. Notices shall be published at least once in a newspaper of general circulation, printed and published in the city, and on the city’s website, or if there is none, it shall be posted in at least three (3) public places in the city that have been designated by ordinance as the places for posting public notices.
2. Bidders List: The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders list or who have made written request that their names be added thereto.
B. Bidder’s Security: When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the city council rejects all bids presented and readvertises, due to a refusal of the lowest bidder to enter into a contract, the amount of the lowest bidder’s security may be used to offset the cost of receiving new bids with the surplus, if any, being returned to the lowest bidder.
C. Bid Opening Procedure: Sealed bids shall be submitted to a city official designated in the notice inviting bids and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.
D. Rejection Of Bids: In its discretion, and to the extent and according to the procedures required by law, the city council may reject any and all bids presented and readvertise for bids pursuant to the procedure hereinabove prescribed.
E. Lowest Responsible Bidder: Contracts shall be awarded to the lowest responsible bidder submitting a responsive bid. In determining "lowest responsible bidder", in addition to price, the city council shall consider:
1. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
2. Whether the bidder can perform the contract, or provide the service promptly or within the time specified, without delay or interference;
3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
4. The previous and existing compliance by the bidder with laws and ordinance relating to the contract of service;
5. The quality of performance of previous contracts of service;
6. The sufficiency of financial resources and ability of bidder to perform the contract or provide the service;
7. The quality, availability and adaptability of the supplies, or contractual services to the particular use required;
8. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;
9. The number and scope of conditions attached to the bid.
F. Award To Other Than Low Bidder: When the award is not given to the lowest bidder, a full and complete statement of the reasons for placing the order elsewhere shall be prepared by the agent and filed with the other papers relating to the transaction.
G. Tie Bids: If two (2) or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.
H. Performance Bonds: The city council shall have authority to require performance and payments bonds before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires such bonds, the form and amount shall be described in the notice inviting bids.
I. Bidders In Default To City: The agent shall not accept the bid of a contractor or supplier who is in default on the payment of taxes, licenses or other monies due the city. (Ord. 667, §2, adopted 1975; Ord. 766, §1, adopted 1981; Ord. 1086, §1, adopted 2006)
§1522 OPEN MARKET, INFORMAL BIDDING AND CONTRACTUAL SERVICES PROCEDURE2
A. Definitions: When used in this section, the following terms shall have the following meanings, unless another meaning is expressly stated when the term is used:
CONTRACT FOR SUPPLIES AND EQUIPMENT: A contract for the purchase or rental of supplies and equipment, where the only service provided directly to the city involves the delivery and/or installation of the supplies or equipment, is incidental to the purchase, and where the value of the services provided under the contract is less than twenty percent (20%) of the total contract price.
COSTING: As used in such phrases as "costing the city" or "costing more than" means the total cost to the city, including, but not limited to, applicable sales tax and shipping costs. The amount may be estimated before bids are received. If a bid is received for not more than ten percent (10%) more than the estimated amount, the procurement method specified for the estimated amount may be followed.
LOCAL VENDOR: A business with a physical business address in Mendocino County at which location the owner and/or employees are regularly employed and with a currently effective business license issued by the city in which it is located or, if located in the unincorporated area, by Mendocino County.
MAINTENANCE: Shall have the meaning provided in Public Contracts Code section 22002(d), as it currently reads or as it may be amended to read.
OPEN MARKET PURCHASE: A purchase made without a prior written solicitation of formal bids. In making open market purchases, the purchasing officer is encouraged to take advantage of modern communications to obtain the lowest possible price, consistent with the city’s needs, including, but not limited to, the use of the telephone, the internet and e-mail, and to use all reasonable means to solicit quotes or proposals from local vendors. The purchasing officer shall maintain a permanent public record for a period of one year from the date of purchase of each open market purchase, including the method used to obtain information from vendors, the quotes sought and received, the bid selected and the reason for the selection.
PERSONAL SERVICES CONTRACT: A contract for professional or other services that does not involve the building or construction trades, but does include construction management, engineering, architectural and similar construction design or inspection services.
PUBLIC PROJECT: Has the meaning provided in Public Contracts Code section 22002(c)-(d), as it currently reads, and as it may be amended from time to time.
B. Purchases Of Supplies And Equipment:
1. Supply And Equipment Contracts Under Ten Thousand Dollars: Open market purchases may be used for contracts for the purchase of supplies and equipment costing ten thousand dollars ($10,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Purchases costing more than five thousand dollars ($5,000.00) shall be reported to the city council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase".
2. Supply And Equipment Contracts Over Ten Thousand Dollars: Contracts for the purchase of supplies and equipment costing more than ten thousand dollars ($10,000.00) shall be procured using the following procedures:
a. Minimum Number Of Bids: Whenever reasonably feasible, the purchasing officer will award the contract based on at least three (3) bids.
b. Notice Inviting Bids: The purchasing officer shall solicit bids by written request, including the use of e-mail or fax, and/or by telephone with written confirmation to follow within three (3) working days, which notice shall include such specifications and bidding requirements as the purchasing officer determines are appropriate to the work, and as are required by law. The purchasing officer shall make reasonable efforts to solicit bids from local vendors.
c. Written Bids: Sealed written bids or bids submitted by e-mail or fax shall be submitted to the purchasing officer. The purchasing officer shall not disclose the contents of any bids submitted by sealed bid, fax, e-mail, or telephone, followed by timely written confirmation, until the time appointed to open or consider all submitted bids.
d. Award Of Bids: Supplies and equipment shall be rented or purchased from the least expensive source, if the purchasing officer is satisfied that all sources and the products offered are of equal quality and suited to the city’s needs. The purchasing officer shall maintain a permanent record for a period of one year of the quotes sought and received, the bid selected and the reason for the selection. The city council must award the bid based on the recommendation of the purchasing officer.
3. Cooperative Purchases: The purchasing officer may purchase supplies and equipment through a consolidated supply contract or other cooperative purchasing arrangement with another governmental agency, if available to the city and if the purchasing officer determines that the procurement method used by that agency provides a purchasing advantage to the city.
C. Other Contracts:
1. Public Projects Contracts:
a. Contracts for public projects shall be procured in accordance with the California uniform public construction cost accounting act, as it now reads and as it may be amended from time to time.
b. Contracts for public projects costing forty-five thousand dollars ($45,000.00) or less or such other amount as may be periodically established by the California uniform construction cost accounting commission pursuant to Public Contracts Code section 22020 may be procured by open market purchase.
(1) Contracts costing twenty thousand dollars ($20,000.00) or less may be awarded without prior City Council approval, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which payment of the contract may be charged. Contracts costing more than twenty thousand dollars ($20,000.00) shall be reported to the City Council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase.”
(2) Contracts costing more than thirty thousand dollars ($30,000.00) must be awarded by the City Council based on a staff recommendation.
c. Contracts to be performed for a City owned public utility, such as the City’s electrical system, which are not public projects or subject to subsections C2 and C3 of this section, shall be procured in accordance with procedures adopted by the Public Utilities Department and approved by City Council resolution from time to time. In the absence of a resolution, the Public Utilities Department may use the procedures specified in subsections C1a and C1b of this section.
2. Maintenance Contracts:
a. Open market purchases may be used for maintenance contracts costing ten thousand dollars ($10,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Maintenance contracts costing more than five thousand dollars ($5,000.00) shall be reported to the city council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase".
b. Maintenance contracts costing more than ten thousand dollars ($10,000.00) shall be procured using the following procedures:
(1) Minimum Number Of Bids: Whenever reasonably feasible, the purchasing officer will award the contract based on at least three (3) bids.
(2) Notice Inviting Bids: The purchasing officer shall solicit bids by written request, including the use of e-mail or fax, and/or by telephone with written confirmation to follow within three (3) working days, which notice shall include such specifications and bidding requirements as the purchasing officer determines are appropriate to the work, and as are required by law. The purchasing officer shall make reasonable efforts to solicit bids from local contractors.
(3) Written Bids: Sealed written bids or bids submitted by e-mail or fax shall be submitted to the purchasing officer. The purchasing officer shall not disclose the contents of any bids submitted by sealed bid, fax, e-mail or telephone, followed by timely written confirmation, until the time appointed to open or consider all submitted bids.
(4) Award Of Bids: The maintenance contract shall be awarded to the least expensive bidder, if the purchasing officer is satisfied that all bids are equally qualified and suited to the City’s needs. The purchasing officer shall maintain a permanent record for a period of one year of the quotes sought and received, the bid selected and the reason for the selection. The purchasing officer shall present the recommended bid to the City Council for award.
3. Personal Services Contracts:
a. Open market purchases may be used for personal services contracts costing ten thousand dollars ($10,000.00) or less, if the purchase is included within an approved fund account and an unencumbered appropriation exists in the fund against which the purchase may be charged. Personal services contracts costing more than five thousand dollars ($5,000.00) shall be reported to the City Council at its next regular meeting following the purchase. The report shall include the information described in the definition of "open market purchase."
b. Personal services contracts costing more than ten thousand dollars ($10,000.00) shall be awarded using the following procedures:
(1) Minimum Number Of Bids: Whenever reasonably feasible, the purchasing officer will award the contract based on at least three (3) proposals, and shall award the contract on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. To the extent permitted by law, including, but not limited to, Government Code section 4526, the purchasing officer shall consider cost as one factor in awarding the contract.
(2) Notice Inviting Bids: The purchasing officer shall solicit proposals by written request for proposal (RFP), which shall include such specifications and requirements as the purchasing officer determines are appropriate to the work and as are required by law. Announcements of RFPs may, but need not, be placed in appropriate professional publications. RFPs shall be sent to the largest number of qualified professionals practical in the judgment of the purchasing officer. The purchasing officer shall include as many small business firms as identified by the director of general services of the State of California pursuant to Government Code section 14837 as the purchasing officer determines is practical. The purchasing officer shall use reasonable efforts to solicit proposals from local vendors. The purchasing officer and his or her designees shall not engage in any practice which might result in unlawful or unfair treatment in processing proposals and awarding contracts, including, but not limited to, rebates, kickbacks, bribes or other unlawful consideration. No City officer or employee shall participate in the selection process when those officers or employees have a relationship with a person or business entity seeking a contract under this subsection which would subject those officers or employees to the prohibition of Government Code section 87100.
(3) Written Proposals: Written proposals shall be submitted to the purchasing officer who shall keep a public record of all such proposals for a period of one year after their submission. The contract shall be awarded by the City Council based on the proposal, such personal interviews as the purchasing officer deems appropriate, the criteria set forth in subsection C3b(2) of this section, and the recommendation of the purchasing officer.
D. Miscellaneous:
1. Any dollar limits specified herein, except for the limit in subsection B2 of this section, may be revised by a resolution of the City Council based on changes in the cost of living or the cost of goods or services available to the City.
2. Procurement of goods or services not specifically addressed in this section may be purchased by open market purchase, unless a different method is required by State statute or regulation or another provision of this code.
3. When soliciting bids or proposals, the purchasing officer shall use all practical available means to solicit such bids and proposals from as large a pool of qualified sources as possible. To aid in accomplishing this goal, the purchasing officer shall solicit proposals from qualified bidders who appear on any list of bidders maintained by the City, including the bidders list referenced in subsection 1521A2 of this article. The purchasing officer shall develop specialized bidders lists for each type of contract described in this section, including contracts for equipment and supplies, public projects, personal service and maintenance services. The purchasing officer shall notify potential suppliers or contractors who contact the City of the opportunity to be listed on bidders lists, including through the City’s website.
4. The City Council, in the exercise of its discretion, may by resolution provide a preference for local businesses in bidding or submitting price quotes under this section, when and to the extent such preference is allowed or not prohibited by applicable State or federal law. (Ord. 918, §2, adopted 1991; Ord. 1086, §1, adopted 2006; Ord. 1134, §1, adopted 2012; Ord. 1170, §1, adopted 2016)
Pub.Con.C. §22000 et seq.
Code reviser’s note: Pursuant to subsection D1 of this section, the dollar limits in this section have been revised by Resolution 2015-10.