Chapter 2.68 PURCHASES OF SUPPLIES, MATERIALS AND EQUIPMENT

For the purpose of this chapter, the words and phrases set out in this article shall be construed as defined in the following sections. (Ord. 1500 §1(part), 1993).

2.68.020 Appropriation or appropriated.

“Appropriation” or “appropriated” means city funds authorized by a resolution of the city council for expenditure in accordance with an adopted city budget. (Ord. 1500 §1(part), 1993).

2.68.030 Allocated.

“Allocated” means that portion of an appropriation which has been distributed within the city accounting system to the city department or organizational level authorized to expend city funds. (Ord. 1500 §1(part), 1993).

2.68.040 Bid.

“Bid” means an offer to sell supplies, materials, equipment or services at a specified price. (Ord. 1500 §1(part), 1993).

2.68.050 Bidding.

“Bidding” means the act of submitting a bid or bids. (Ord. 1500 §1(part), 1993).

2.68.060 Emergency.

“Emergency” means a situation involving:

A. A public calamity including, but not limited to, fire, flood, storm, earthquake, epidemic or other disaster; or

B. A threat to the national or local defense. (Ord. 1500 §1(part), 1993).

2.68.070 Idle act.

“Idle act” means a situation where the solicitation of bids would not be useful or produce any advantage for the city. Idle acts include, but are not limited to, the following situations where:

A. Specifications cannot be drawn in a way which would enable more than one bidder to meet them;

B. It is impossible, as a practical matter, to obtain the supplies, materials or equipment required and follow the bidding procedure;

C. Due to circumstances beyond the control of the city, the time necessary to use the bidding procedure would result in an economic loss to the city or would interfere with a city operation or function;

D. The solicitation of bids would not be, in the purchasing agent’s judgment, advantageous to the city or its residents. (Ord. 1500 §1(part), 1993).

2.68.080 Open purchase order.

“Open purchase order” means a document issued to a vendor which establishes a line of credit allowing appropriate city employees to obtain supplies, materials, equipment or services on an “as needed” basis. (Ord. 1500 §1(part), 1993).

2.68.090 Proposal.

“Proposal” means an offer to perform services. (Ord. 1500 §1(part), 1993).

2.68.100 Purchase.

“Purchase” means the acquisition of supplies, materials or equipment bought in a single transaction from a single vendor. (Ord. 1500 §1(part), 1993).

2.68.110 Purchasing agent.

“Purchasing agent” means the city manager and any person or persons designated by the city manager to purchase or acquire supplies, materials, equipment or services on behalf of the city. (Ord. 1500 §1(part), 1993).

2.68.120 Service.

“Service” means:

A. Any work performed or services rendered by an independent contractor, with or without the furnishing of supplies, materials or equipment, including, but not limited to:

1. Consultant services,

2. Repair, modification and maintenance of city equipment and software,

3. Maintenance work, as defined in Section 22002 of the Public Contract Code,

4. Cleaning, analysis, testing, moving, removal or disposal of city supplies, materials or equipment,

5. Demolition work,

6. Temporary personnel services, or

7. Other miscellaneous services to facilitate city operations;

B. Licensing software;

C. Leasing or rental of personal property for use by the city;

D. “Services” shall not include public projects, as defined in Sections 20161 and 22002 of the Public Contract Code. Contracts for public projects shall be awarded in accordance with the applicable provisions of the Public Contract Code or Chapter 2.72 of this code. (Ord. 1500 §1(part), 1993).

2.68.130 Surplus property.

“Surplus property” means city-owned personal property that is no longer needed for, nor adaptable to, municipal purposes. (Ord. 1500 §1(part), 1993).

2.68.140 Unencumbered.

“Unencumbered” means that portion of an allocated appropriation which is immediately available for reservation against incoming purchase orders. (Ord. 1500 §1(part), 1993).

Article II. General Provisions

2.68.150 Purchases and contracts for services.

No officer or employee of the city shall purchase, order, contract for, or otherwise acquire any supplies, materials, equipment or services unless there exists an unencumbered balance of an allocated appropriation of funds available for such purpose against which the expenditure will be charged. No such purchase, order, contract or acquisition shall be made by any such officer or employee except as provided in this chapter and the purchasing/contracting procedures established pursuant to Section 2.68.160. (Ord. 1500 §1(part), 1993).

2.68.160 Purchasing/contracting procedures.

In addition to the provisions of this chapter, the city manager shall establish purchasing/contracting procedures that shall govern the acquisition of supplies, materials, equipment and services by officers and employees of the city. Such purchasing/contracting procedures shall be consistent with the provisions and purpose of this chapter and any other applicable laws and regulations. (Ord. 1500 §1(part), 1993).

Article III. Purchases of Supplies, Materials and Equipment

2.68.170 Purchasing agent – Powers and duties.

The purchasing agent shall be responsible for the acquisition and provision of supplies, materials and equipment for the city. Such responsibilities shall include, but not be limited to, the following:

A. Take the necessary action to ensure that the city will receive the needed quality and quantity of supplies, materials and equipment at least expense to the city;

B. Negotiate and execute contracts and purchase orders for the purchase of supplies, materials and equipment;

C. Keep informed of current developments in the field of purchasing prices, market conditions and new products;

D. Prepare and recommend to the city manager procedures governing the purchase of supplies, materials and equipment for the city;

E. Prescribe and maintain forms as are reasonably needed to implement this chapter. (Ord. 1500 §1(part), 1993)

2.68.180 Purchasing of supplies, materials and equipment.

Purchases of supplies, materials and equipment shall be made in accordance with the requirements prescribed in this chapter. (Ord. 1500 §1(part), 1993).

2.68.190 Purchasing authority.

A. The purchasing agent may enter into and execute on behalf of the city, without prior approval of the city council:

1. Contracts and purchase orders for the acquisition of supplies, materials and equipment, provided there is an unencumbered balance of an allocated appropriation available for such contracts or purchase orders; and

2. Contracts and purchase orders for the acquisition of supplies, materials and equipment for which funds have not been appropriated, which do not exceed twenty-five thousand dollars.

B. Contracts and purchase orders for the acquisition of supplies, materials and equipment for which funding has not been appropriated and which exceed twenty-five thousand dollars shall be approved by the city council.

C. Subsection (B) of this section notwithstanding, in the event of an emergency, the purchasing agent may enter into contracts and purchase orders for the acquisition of supplies, materials and equipment for which funding has not been appropriated and which exceed twenty-five thousand dollars when the purchasing agent determines that such supplies, materials and equipment are needed to safeguard life, health, safety or property. (Ord. 1500 §1(part), 1993).

2.68.200 Competitive bids.

The purchasing agent shall obtain competitive bids on contracts or purchase orders for the acquisition of supplies, materials and equipment if the purchasing agent determines the solicitation of bids to be in the best interest of the city. The purchasing agent shall not be required to obtain competitive bids when, in his or her judgment, the solicitation of bids would not be in the best interest of the city or its residents. (Ord. 1500 §1(part), 1993).

2.68.210 Competitive bids unavailing.

A. The solicitation of competitive bids shall not be deemed to be in the best interests of the city or its residents in situations including, but not limited to, the following:

1. The purchase or acquisition of supplies, materials or equipment from or through agreement with any public agency or utility;

2. The purchase or acquisition of supplies, materials or equipment which can be obtained from only one vendor or manufacturer;

3. The purchase or acquisition of any supplies, materials or equipment deemed by the purchasing agent to be of urgent necessity for the preservation of life, health or property during a public emergency;

4. The purchase of supplies, materials or equipment where solicitation of bids would, for any reason, be an idle act.

B. The purchasing agent is authorized to acquire supplies, materials or equipment in the open market where the solicitation of competitive bids would not be in the best interests of the city or its residents. (Ord. 1500 §1(part) 1993).

2.68.220 Solicitation of bids.

Bids shall be solicited in the manner deemed appropriate by the purchasing agent under the circumstances. The manner of solicitation may include, but shall not be limited to, any of the following methods:

A. Notices inviting bids published in newspapers or other publications;

B. Direct mailings to vendors;

C. Telephonic communications with vendors;

D. Facsimile transmissions to vendors. (Ord. 1500 §1(part), 1993).

2.68.230 Bidder’s security.

All bids shall include such bidder’s security as is required by the bid documents and shall be presented under sealed cover. If the successful bidder fails to execute the contract within the time specified in the notice inviting bids or in the specifications referred to therein, the bidder’s security may be declared forfeited by the purchasing agent to the city, and any bonds so forfeited may be prosecuted and collected and the amount of the security paid into the general fund. Unsuccessful bidders shall be entitled to return of their bidders’ security. The form and amount of such security shall be described in the notice inviting bids or in the specifications referred to therein. (Ord. 1500 §1(part), 1993).

2.68.240 Performance bonds for contracts.

To secure faithful performance of the contract, the purchasing agent is authorized to require security in the form of cash, cashier’s check, certified checks or corporate faithful performance bonds, in such amount as the purchasing agent shall deem reasonably necessary to protect the best interests of the city. If the purchasing agent requires such security, the form and amount thereof shall be described in the notice inviting bids or in the specifications referred to therein. The purchasing agent need not require such security if he or she does not deem such to be reasonably necessary to protect the best interest of the city, or if he or she believes the interests of the city are best served by not requiring the same. (Ord. 1500 §1(part), 1993).

2.68.250 Rejection of bids.

The purchasing agent may, in his or her discretion, reject any or all bids presented. If the purchasing agent rejects all bids, the purchasing agent may, in his or her discretion, readvertise for new bids or may have such supplies, materials or equipment purchased in the open market without readvertising for bids. (Ord. 1500 §1(part), 1993).

2.68.260 Procedure when no bids received.

If no bids are received, the purchasing agent may, at his or her discretion, readvertise or may otherwise acquire in the open market such supplies, materials and equipment. In the event that bids are received, but none of the bids meets specifications, this section shall apply as if no bids were received. (Ord. 1500 §1(part), 1993).

2.68.270 Most advantageous bid – Criteria.

The purchasing agent shall not be required to award a contract to the bidder with the lowest price. Rather, the purchasing agent shall determine the most advantageous bid to the city and to its residents, which shall be based on, but not limited to, the following factors:

A. Price;

B. Trade discounts;

C. Shipping costs, when included in the specifications;

D. Life cycle costs when included in the specifications;

E. City’s share of tax revenue generated by sale (e.g., sales tax);

F. Vendor proximity to the using department;

G. Completeness of inventory;

H. Quality of past service;

I. Most favorable price discounts; and

J. Vendor that has consistently offered the lowest price during the previous twelve-month period. (Ord. 1500 §1(part), 1993).

2.68.280 Award of contract.

Where bidding is utilized, contracts shall be awarded by the purchasing agent to the most advantageous bid meeting specifications, unless the purchasing agent rejects all bids. The purchasing agent shall have the right to waive any informalities or minor irregularities in bids or bidding. For the purpose of this section, “informalities or minor irregularities” shall include, but not be limited to, clerical errors, erasures, incompletions, misspellings and other such items. (Ord. 1500 §1(part), 1993).

2.68.290 Additional quantities.

Following the execution of a contract or purchase order for supplies, materials or equipment, the purchasing agent may purchase additional quantities at the quoted price, if such an option for additional quantities is offered by the vendor and an unencumbered balance of an allocated appropriation is available. (Ord. 1500 §1(part), 1993).

2.68.300 Standardization.

Where the purchasing agent has determined that it is required by the health, safety or welfare of the people or employees of the city or that significant costs savings have been demonstrated, standardization of supplies, materials or equipment is permitted and the specifications may limit the purchase to a single brand or trade name. Among the factors that may be considered in determining to standardize on a single brand or trade name are that:

A. Repair and maintenance costs would be minimized;

B. User personnel training would be facilitated thereby;

C. Supplies or spare parts would be minimized;

D. Modifications to existing equipment would be minimized or not be necessary;

E. Training of repair and maintenance personnel would be minimized; and/or

F. Matching existing supplies, materials or equipment is required for proper operation of a function or program. (Ord. 1500 §1(part), 1993).

2.68.310 Inspection and testing of purchased materials and equipment.

A. The purchasing agent shall have authority to require chemical and physical tests of samples submitted with proposals, to determine their quality and conformance with specifications.

B. Within a reasonable time after delivery to and receipt by the city, the purchasing agent shall have the right to inspect and test any supplies, materials or equipment purchased by the city in order to determine whether they conform with the specifications set forth in the order or contract.

C. Acceptance by the city shall not constitute a waiver of performance by the seller, in accordance with the specifications and other contract documents. (Ord. 1500 §1(part), 1993).

2.68.320 Open market purchases.

Purchases of supplies are not obtained through the use of competitive bidding may be made in the open market. Open market purchases of supplies, materials and equipment by the purchasing agent shall be awarded to the vendor which, in the judgment of the purchasing agent, submits an offer that is most advantageous to the city. (Ord. 1500 §1(part), 1993).

Article IV. Contracts for Services

2.68.330 Authority of purchasing agent.

A. The purchasing agent may enter into and execute on behalf of the city, without prior approval of the city council:

1. Any contract or purchase order for services provided there is an unencumbered balance of an allocated appropriation available therefor; and

2. Contracts and purchase orders for services for which funds have not been appropriated, which do not exceed twenty-five thousand dollars.

B. Contracts and purchase orders for services for which funding has not been appropriated shall be approved by the city council.

C. Subsection (B) of this section notwithstanding, in the event of an emergency, the purchasing agent may enter into contracts and purchase orders for services for which funding has not been appropriated and which exceed twenty five thousand dollars when the purchasing agent determines that such services are needed to safeguard life, health, safety or property. (Ord. 1500 §1(part), 1993).

2.68.340 Contracting procedure.

A. Competitive bidding shall not be required for contracts for services. Competitive bids or proposals, however, shall be obtained if the purchasing agent determines the solicitation of bids or proposals to be in the best interests of the city or its residents.

B. Bids or proposals may be solicited by direct mail, telephone, telefacsimile, or such other methods of communication deemed appropriate by the purchasing agent.

C. Contracts for services shall be made or awarded on the basis of the most advantageous bid or proposal to the city or its residents, as determined by the purchasing agent.

D. In determining the most advantageous bid or proposal, the purchasing agent shall consider the following factors:

1. Cost to the city;

2. Quality of the proposed service;

3. Location of vendor in relation to the work required;

4. Capabilities and expertise of the vendor;

5. Capacity of the vendor to perform the service;

6. Responsibility of the vendor;

7. Past service record of the vendor;

8. References from other customers of vendor. (Ord. 1500 §1(part), 1993).

2.68.350 Contracts for leasing of personal property.

Each contract for the leasing or rental of personal property for the city executed by the purchasing agent shall contain a provision permitting the city to terminate such agreement at the end of any fiscal year during the term of the contract. (Ord. 1500 §1(part), 1993).

Article V. Open Purchase Orders and Store Fund

2.68.360 Open purchase orders – Procedure.

A. Open purchase orders may be used as a means of procuring supplies, materials, equipment or services when the amount or nature of the specific items or services cannot be predicted before they are needed, or where it is necessary that the place from which the items are purchased is strategically located. More than one vendor may be issued an open purchase order for the same item or service.

B. Competitive bidding is not required in order to establish an open purchase order for supplies, materials, equipment or services. The open market purchasing procedure set forth in Section 2.68.320 shall apply to open purchase orders of supplies, materials, equipment or services.

C. Open purchase orders shall be executed by the purchasing agent, provided the necessary funds therefor have been budgeted and appropriated or, if such funds have not been budgeted and appropriated, the amount of such open purchase order does not exceed twenty-five thousand dollars. Open purchase orders for which funding has not been appropriated and which exceed twenty-five thousand dollars shall be approved by the city council.

D. Since open purchase orders are established in order to obtain the most advantageous purchasing arrangements for the city or its residents, the factors set forth in Sections 2.68.270 and 2.68.340 shall be used by the purchasing agent in determining the most advantageous price quotation. (Ord. 1500 §1(part), 1993).

2.68.370 Store fund.

A. A revolving store fund shall be maintained for the purpose of enabling the purchasing agent to procure, from time to time, when most advantageous to the city, materials, supplies and equipment which will be needed by the city, and for the purpose of accumulating a store of supplies, materials and equipment from which requisitions of the various city officers and departments may be filled. The purchasing agent may expend store fund moneys for such purpose subject to the provisions for execution of contracts or purchase orders contained in this chapter. Departments requisitioning any supplies, materials or equipment from the store fund shall be charged and shall pay the store fund for the same with moneys appropriated to them for the acquisition of such materials, supplies and equipment. The amount of such charges shall be determined by the purchasing agent and shall be sufficient to enable the purchasing agent to maintain the store fund on a revolving basis.

B. If any officer or department of the city should requisition any supplies, materials or equipment which are not available in the stores acquired through use of the store fund, or if the purchasing agent deems it best not to acquire the same with store fund moneys, the purchasing agent may purchase the same for the requisitioning officer or department and charge the cost to the appropriations made to the requisitioning officer or department for such supplies, materials or equipment. (Ord. 1500 §1(part), 1993).

Article VI. Disposition of Surplus Property

2.68.380 Surplus property.

Any personal property that has been deemed to be surplus property by an officer or department of the city shall be forwarded to the purchasing agent, who shall dispose of such property in accordance with the provisions of this article. (Ord. 1500 §1(part), 1993).

2.68.390 Disposition – Procedures.

A. Any surplus property that has been forwarded to the purchasing agent shall be disposed of by the purchasing agent in a manner deemed by the purchasing agent to be in the best interests of the city. Methods of disposal shall include, but not be limited to, the following:

1. Public auction;

2. Newspaper advertisement inviting sealed bids;

3. Trade in or return to vendor for credit;

4. Sale or trade to other governmental agency or utility;

5. Sold as scrap;

6. Discarded as junk if, in the opinion of the purchasing agent, the surplus property has no appreciable value;

7. Donate to a nonprofit, public service organization which provides services or benefits to the citizens of Vacaville.

B. If the surplus property cannot be disposed of through any of these methods the purchasing agent shall dispose of the property through such other means as the purchasing agent deems appropriate. (Ord. 1500 §1(part), 1993).

2.68.400 Sale to city employees.

Section 2.68.380 notwithstanding, surplus property shall not be sold, transferred, or given to any city officer or employee except as provided in this section. City officers and employees may acquire surplus property through public auction or sealed bid sale. City officers and employees shall not be permitted to acquire surplus property through any other method or means. (Ord. 1500 §1(part), 1993).

2.68.410 Salvaging prohibited.

No person shall salvage or otherwise take any surplus property that has been discarded as junk by the purchasing agent other than the authorized garbage collectors designated by the city in accordance with Chapter 8.08 of this code. (Ord. 1500 §1 (part), 1993).