Chapter 3.05
PURCHASES AND SALES1
Sections:
3.05.010 Purchasing department created – Function.
3.05.020 City manager designated – Duties.
3.05.030 Independent purchases and contracts may be authorized.
3.05.060 Estimates of requirements.
3.05.070 Encumbrance of funds.
3.05.080 Bidding required for purchases – Exceptions.
3.05.090 Purchases $5,000 and over.
3.05.100 Purchases less than $5,000.
3.05.110 Inspection and testing of articles and services.
3.05.120 Surplus supplies and equipment.
3.05.010 Purchasing department created – Function.
There is created a central purchasing department in which is vested the authority to exercise positive financial control over purchase and disposition of public property. [Ord. 419 § 2, 9-13-65. Prior code § 6-46].
3.05.020 City manager designated – Duties.
The purchasing officer shall be the city manager, and the purchasing officer shall have general supervision of the purchasing department. The duties of the purchasing officer may be combined with those of any other office or position. Pursuant to the provisions of this chapter and of state law, the purchasing officer shall:
(1) Purchase or contract for supplies, services and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing department and such other rules and regulations as shall be prescribed by the city council.
(2) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment.
(3) Act to procure for the city the needed quality in supplies, services and equipment at least expense to the city.
(4) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.
(5) Prepare and recommend to the city council rules governing the purchase of supplies, services and equipment for the city.
(6) Prepare and recommend to the city council revisions and amendments to the purchasing rules.
(7) Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations.
(8) Supervise the inspection of any supplies, services and equipment purchased to ensure conformance with specifications.
(9) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use.
(10) Upon request of the city council, and subject to its approval of each transaction, perform all delegable functions in connection with acquisition and disposal of real property. [Ord. 529-77, 10-25-77; Ord. 419 § 3, 9-13-65. Prior code § 6-47].
3.05.030 Independent purchases and contracts may be authorized.
The purchasing officer may authorize in writing any agency to purchase or contract for specified supplies, services and equipment independently of the purchasing department; but he shall require that such purchases or contracts be made in conformity with the procedures established by this chapter, and further require periodic reports from the agency on the purchases and contracts made under such written authorization. [Ord. 419 § 4, 9-13-65. Prior code § 6-48].
3.05.040 Requisitions.
Using departments shall submit requests for supplies, services and equipment to the purchasing officer. For the purposes and within the limits of funds appropriated therefor, the purchasing officer may question the propriety of any requisition and may require from the head of the using department a justification of the quality or quantity of requisitions. [Ord. 529-77, 10-25-77. Prior code § 6-49].
3.05.050 Purchase order.
Purchases of supplies, services and equipment shall be made only by purchase order. [Ord. 419 § 6, 9-13-65. Prior code § 6-50].
3.05.060 Estimates of requirements.
All using agencies shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time and for such future periods as the purchasing officer shall prescribe. [Ord. 419 § 7, 9-13-65. Prior code § 6-51].
3.05.070 Encumbrance of funds.
Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. [Ord. 419 § 8, 9-13-65. Prior code § 6-52].
3.05.080 Bidding required for purchases – Exceptions.
Purchases of supplies, service and equipment shall be by bid procedures pursuant to WMC 3.05.090 and 3.05.100. Bidding shall be dispensed with only when there is an emergency or when the amount involved is less than $500.00 or when the commodity can be obtained from only one vendor. [Ord. 529-77, 10-25-77. Prior code § 6-53].
State law reference—For provisions as to sale of real property, see § 190 et seq., Gov. Code.
3.05.090 Purchases $5,000 and over.
Except as otherwise provided herein, purchases and contracts for supplies and equipment of estimated value greater than $5,000 shall be by written contract with the lowest responsible bidder utilizing procedures pursuant to this section:
(1) Information on Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.
(2) Publishing Notice Inviting Bids. Notice inviting bids shall be published at least 10 days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.
(3) Lowest Responsible Bidder. “Lowest responsible bidder” as used in this chapter shall mean that bidder which best responds in price, quality, service, fitness, or capacity to the particular requirements of the city. Price alone shall not be the determining factor but shall be considered along with the other factors including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience with the bidder, and other factors relating to the particular needs of the city for the supplies or equipment to be purchased.
(4) Bidder’s Security May Be Required. 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, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the city is responsible for the delay. 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 so awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
(5) Form of Surety of Successful Bidder. The successful bidder shall furnish surety in the form of a certified or cashier’s check or bond for the faithful performance of the contract in the amount specified in the contract bid form.
(6) Annual Bid Bond. Bidders who regularly do business with the city shall be permitted to file with the purchasing agent an annual bid bond and an annual performance bond in an amount established by the purchasing agent. Such annual bonds shall be acceptable as surety in lieu of the furnishing of surety with each individual transaction.
(7) Bid and Contract Approval. All contract bid forms and all contracts shall be approved by the city attorney as to form and legality. Following such approval, all contracts shall be signed in behalf of the city by the city manager. A copy of each signed contract shall be filed with the director of finance.
(8) Bidder’s Oath. For either the purchase or sale of supplies, services and equipment, the purchasing agent shall require each bidder to accompany his bid with a statement made under oath that he has not been a party with other bidders to an agreement to bid a fixed or uniform price. Violation of such statement shall render void the bid of such bidders. Any disclosure to, or acquisition by, a competitive bidder, in advance of the opening of the bids, of the terms or conditions of the bid submitted by another competitor shall render the proceedings void and shall require readvertising for bids.
(9) Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer 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 30 calendar days after the bid opening.
(10) Rejection of Bids. In its discretion, the city council may reject any or all bids presented and readvertise for bids.
(11) Award of Contracts. Contracts for purchases shall be awarded by the city council to the lowest responsible bidder except as otherwise provided herein. Contracts for personal property sales shall be awarded by the city council to the highest responsible bidder and shall be subject to all other applicable requirements of this section.
(12) Tie Bids. If two 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 accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.
(13) Performance Bonds. The city council shall have authority to require a performance bond 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 a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
(14) Debarment of Irresponsible Bidders. The purchasing agent may determine and declare a bidder to be irresponsible for reasons indicated in this section, may remove his name from the bidder’s list, and may debar him from bidding for a reasonable period, or not less than one year. Such debarred bidder shall be notified in writing of such action and shall be furnished with a statement of the reasons therefor. [Ord. 529-77, 10-25-77; Ord. 419 § 10, 9-13-65. Prior code § 6-54].
3.05.100 Purchases less than $5,000.
Purchases of supplies, services, and equipment and the sales of personal property of less than $5,000 may be made by the purchasing officer in the open market without observing the procedure prescribed by WMC 3.05.090. [Ord. 529-77, 10-25-77. Prior code § 6-55].
3.05.110 Inspection and testing of articles and services.
The receiving agencies shall inspect deliveries of supplies, materials and equipment or the furnishing of contractual services to ensure their conformance with the specifications set forth in the purchase order or contract.
Any agency which has the necessary facilities and staff for adequate inspection may be authorized and directed by the city council, on the recommendation of the purchasing agent, to inspect deliveries made to other agencies.
The purchasing agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries to the extent necessary to determine their quality and conformance with the specifications. For such tests, the purchasing agent shall have authority to make use of facilities of any department. [Ord. 419 § 12, 9-13-65. Prior code § 6-56].
3.05.120 Surplus supplies and equipment.
All using departments shall submit to the purchasing officer, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out.
The purchasing officer shall have authority to transfer any such commodities which are usable to another department in lieu of filling requisitions for the purchase of new and additional stock of the same or similar articles.
The purchasing agent of the city council shall have authority to sell all such supplies, materials and equipment which cannot be used by any agency and which have been found by the city council not to be required for public use or to exchange or trade in such articles in part of full payment for new supplies, materials or equipment of a similar nature. Any such sale, exchange or trade-in shall be made in accordance with WMC 3.05.090 or 3.05.100, whichever is applicable. [Ord. 419 § 13, 9-13-65. Prior code § 6-57].
3.05.130 Unlawful purchases.
If any department purchases or contracts for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter, such purchase order or contract shall be void and of no effect. The head of the department making such purchase transaction shall be personally liable for the amount of such purchase order or contract, and, if already paid for out of city funds, the amount thereof may be recovered in the name of the city in an appropriate action therefor.
It shall be unlawful for any department to split its requirements for supplies, materials, equipment and contractual services into estimated amounts of less than $5,000 in order to evade the provisions of this chapter. [Ord. 529-77, 10-25-77; Ord. 419 § 14, 9-13-65. Prior code § 6-58].
3.05.140 Personal purchases.
Purchases of supplies or equipment for the personal use of an official or employee of the city shall be made by the purchasing agent only when the item or items are required parts of a worker’s equipment, are necessary to the successful performance of the duties of such city official or employee, and which the city council has agreed to furnish at the expense of the city. [Ord. 419 § 15, 9-13-65. Prior code § 6-59].
3.05.150 Gratuities.
(1) The acceptance of any gratuity in the form of cash, merchandise or any other thing of value by an official or employee of the city from any vendor or contractor, or prospective vendor or contractor, shall be deemed to be a violation of this chapter and shall be cause for removal or other disciplinary action.
(2) The offer of any such gratuity to any official or employee of the city by any vendor or contractor, or prospective vendor or contractor, shall be cause for declaring such individual or firm to be an irresponsible bidder and for debarring him from bidding. [Ord. 419 § 16, 9-13-65. Prior code § 6-60].
3.05.160 Local preference.
Purchases shall be made locally whenever possible. [Ord. 419 § 17, 9-13-65. Prior code § 6-61].
State law references—For requirement that policies and procedures be established, see § 54202, Gov. Code; purchases by State Department of General Services on behalf of city, authorized on request, § 14814.