A purchasing system is hereby adopted in order to establish uniform, prudent, and efficient purchasing procedures for the acquisition of high quality goods and services at the lowest reasonable cost.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)
For the purpose of this chapter, the meaning and construction of words and phrases hereinafter set forth shall apply:
"Bid"
means a vendor's offer to provide supplies, materials, equipment or services to the city.
"Bid notice"
means a document sent to prospective vendors or posted in public which describes the bid process, either formally or informally as outlined in Section 2.30.030 of this chapter.
"Capital outlay"
means items that are purchased which have an anticipated usable life of greater than one year, such as tools, equipment, computers, printers, vehicles, or office furniture.
"Commodities and supplies"
means items that are purchased and will normally be consumed within one year such as office supplies, gasoline, asphalt, copy paper, volleyball nets, paint material, or ammunition.
"Construction services"
means services purchased for the purpose of construction, replacement, or major repair of public infrastructure such as streets, buildings, storm drains, walkways, playgrounds, or sewers.
"Contractual services"
means services purchased in support of city operations, such as street sweeping, tree trimming, weed abatement, or equipment repair.
"Cooperative purchasing"
means purchases made based upon, or in conjunction with, the bidding efforts of another public agency.
"Emergency"
means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.
"Most qualified bidder"
means a bidder who best meets the requirements of the city based upon consideration of one or more of the following factors as appropriate:
(1) 
Price;
(2) 
The ability, capacity, and skill of the bidder;
(3) 
Whether the bidder has the facilities to perform the contract promptly, or within the time specified, without delay or interference;
(4) 
The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(5) 
The bidder's record of performance of previous contracts;
(6) 
Previous and existing compliance by the bidder with laws and ordinances relating to the contract;
(7) 
The sufficiency of the financial resources and ability of the bidder to perform the contract;
(8) 
The quality and availability of the supplies, equipment, or services purchased, and the adaptability of the above to the particular use required;
(9) 
The ability of the bidder to provide future maintenance and service for the supplies, equipment, or services purchased;
(10) 
The number and scope of conditions attached to the bid;
(11) 
Determination of lowest responsible bidder for construction projects in accordance with California Public Contract Code Section 20162.
"Procedures for general procurement"
means the procedures that must be followed when spending funds other than federal funds, e.g., city funds, state funds.
"Procedures for special procurement for federally-funded projects and purchases"
means the procedures that must be followed when spending United States Federal Government funds. These procedures are contained in the City of Laguna Beach Administrative Policy: Purchasing Policy and the United States Title 2, Code of Federal Regulations (2 CFR Section 200).
"Professional services"
means services of a professional nature purchased to provide general administrative support to city operations including for example legal, accounting, engineering, architectural, or consulting services.
"Purchases"
occur whenever the city enters into a transaction by which the city: acquires ownership including the acquisition of supplies, materials, capital outlay, or equipment; enters into a lease or rental transaction; or contracts for professional, construction, or other types of services.
"Purchasing authority"
means the staff position designated in Section 2.30.040 of this chapter who, depending on the size and type of transaction, is authorized to approve a particular purchasing transaction.
"Purchasing policy"
means the city administrative policies as may from time to time be authorized and issued by the city manager.
"Request for proposal (RFP)"
means a written description of the goods and services the city desires to purchase which is used to solicit bids.
"Request for qualifications (RFQ)"
means a variation on the request for proposal (RFP) which is used for soliciting bids for "professional services" when the selection of most responsive bidder will be primarily determined by the bidder's qualifications such as experience and expertise as opposed to other criteria such as lowest price.
"Sole source item or service"
means a unique item or service that is available from only one vendor.
"Solicitation of bids"
means a city request to prospective vendors to provide written, e-mailed, faxed, or verbal bids.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)
(a) 
Purchases Subject to Procedures for General Procurement and Purchases Subject to Procedures for Special Procurement for Federally-Funded Projects and Purchases. Prior to purchasing goods or services, it is necessary to identify those purchases that are being made with federal funds. All federally-funded purchases are subject to the city's special procurement procedures for federally-funded projects and purchases, as stipulated in the City of Laguna Beach Administrative Policy: Purchasing Policy and by reference, the United States Title 2, Code of Federal Regulations (2 CFR Section 200). Emergency purchases for which the city will use federal funds, or for which the city will be reimbursed by Federal funds, e.g., Federal Emergency Management Agency (FEMA) awards, must be made in accordance with the procedures for special procurement for federally-funded projects and purchases.
(b) 
Open Market Purchase Procedure. An open market purchase is the "off-the-shelf' purchase of goods or services that does not involve a formal or informal solicitation and evaluation of competitive bids, but, rather, relies on the experience and judgment of the purchasing authority to make the best decision based on the criteria set forth in Section 2.30.020(i) of this chapter. The open market procedure is typically utilized for small, frequent retail purchases necessary for day-to-day operations of the city, particularly when convenience and immediate availability are critical. In addition, in the case of small purchases, it is assumed that the purchasing authority already has a firm idea of the market and seeking bids would not improve pricing. The open market procedure may be used for those purchases set forth in Section 2.30.040 of this chapter.
(c) 
Informal Bid Procedure. The informal bidding procedure provides a cost-effective; competitive bidding process for canvassing the market place to identify the vendors most likely to provide appropriate goods or services at a reasonable price, and awarding the purchase to the vendor that provides the most responsive bid. Under the informal bid procedure, the purchasing authority solicits written, faxed, emailed, or verbal quotations from a minimum of three vendors. The solicitation itself may be either written or verbal as dictated by the circumstances and judgment of the purchasing authority. The bid shall be awarded to the most qualified bidder based on the criteria set forth in Section 2.30.020(i) of this chapter. The informal bid procedure may be used for those purchases set forth in Section 2.30.040 of this chapter.
(d) 
Formal Bid Procedure. The formal bid procedure is to be used primarily for large dollar purchases and requires the use of competitive bidding whereby the purchasing authority issues a formal public notice soliciting formal written bids. Under this procedure, bids shall be solicited through the issuance of a written bid notice or request for proposals (RFP), and the process shall be conducted as specified below. The bids shall be presented to the city in writing, and in the case of construction contracts shall be handled pursuant to the California Public Contract Code, including, but not limited to, Section 20162 thereof.
(1) 
Notice Inviting Sealed Bids. A written bid notice shall be prepared and sent to prospective vendors. In the case of construction contracts, the notice inviting bids shall also be advertised as required by state law. Bidder's security, performance bonds, required insurance and publication of notice may be called for in the bid process if deemed necessary or required by state law.
(2) 
Bid Opening Procedure. In the case of construction contracts, and pursuant to the California Public Contract Code, sealed bids shall be submitted to the department requesting the bid, and must be identified as a "sealed bid" on the envelope. Sealed bids must be opened at the time and place stated in the public notice. A summation of all sealed bids received will be open for public inspection during regular business hours for a period not less than thirty days after the bid opening.
(3) 
Award of Bid. All bids shall be awarded to the most qualified bidder based upon the criteria set forth in Section 2.30.020(i) of this chapter.
(4) 
Tie Bids. If two or more bids quote the same total amount or unit price, and if quality and service are equal, and if the public interest will not permit the delay of re-advertising of bids, the city council may accept one of the tie bids or may negotiate with the tie bidders for a lower price and make their selection based upon price.
(5) 
Rejection of Bids. In its sole discretion, the city council may reject any and all bids presented and, at its discretion, re-advertise for bids.
(6) 
Bidder's Security. When deemed necessary, bidder's security may be required in the public notice inviting bids. Bidders shall be entitled to the return of bid security; except that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within ten days after the notice of award has been mailed, or a time agreed upon in writing by both the successful bidder and the city, 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 the contract to the next most qualified 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.
(7) 
Performance Bonds. Before entering a contract, the city council may require a performance bond in such amount as it finds 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 specifications of the bids.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)
Depending on the types of goods and services desired and the dollar amount of the purchase, each purchase of goods and services shall require the following approvals and be conducted utilizing the following procedures:
(a) 
Capital Outlay, Contractual Services, and Professional Services.
(1) 
Purchases of up to thirty thousand dollars shall follow either the informal bid procedure or the open market procedure as set forth in Sections 2.30.030(a) and 2.30.030(b) of this chapter depending upon the complexity of the purchase, knowledge of the marketplace, and/or immediate operational constraints. Purchases at this level require department director approval. Each department director may approve amendments and/or change orders to existing purchases, agreements, contracts, and/or purchase orders, so long as the cumulative total of the contract (change order(s)/amendment(s) plus original contract value) does not exceed thirty thousand dollars. The department director may delegate approval authority to his/her deputy directors or managers with city manager approval.
(2) 
Purchases over thirty thousand dollars to seventy-five thousand dollars shall follow the informal bid procedure set forth in Section 2.30.030(b) of this chapter, and require city manager approval. The city manager may approve amendments and/or change orders to existing purchases, agreements, contracts, and/or purchase orders, so long as the cumulative total of the contract (change order(s)/amendment(s) plus original contract value) does not exceed seventy-five thousand dollars.
(3) 
Purchases over seventy-five thousand dollars shall follow the formal bid procedure set forth in Section 2.30.030(d) of this chapter, and require city council approval.
(b) 
Commodities and Supplies.
(1) 
Purchases of up to thirty thousand dollars shall follow either the informal bid procedure or the open market procedure as set forth in Sections 2.30.030(a) and 2.30.030(b) of this chapter depending upon the complexity of the purchase, knowledge of the market place, and/or immediate operational constraints. Purchases at this level require department director approval. Each department director may approve amendments and/or change orders to existing purchases, agreements, contracts, and/or purchase orders, so long as the cumulative total of the contract (change order(s)/amendment(s) plus original contract value) does not exceed thirty thousand dollars. The department director may delegate approval authority to his/her deputy directors or managers with city manager approval.
(2) 
Purchases over thirty thousand dollars shall follow the informal bid procedure or the formal bid procedure depending on the complexity of the purchase as set forth in Sections 2.30.030(b) and 2.30.030(c) of this chapter, and require city manager approval.
(c) 
Construction Services.
(1) 
Purchases up to thirty thousand dollars shall follow either the informal bid procedure or the open market procedure as set forth in Sections 2.30.030(a) and 2.30.030(b) of this chapter depending upon the complexity of the purchase, knowledge of the market place, and/or immediate operational constraints. Purchases at this level require department director approval. Each department director may approve amendments and/or change orders to existing purchases, agreements, contracts, and/or purchase orders, so long as the cumulative total of the contract (change order(s)/amendment(s) plus original contract value) does not exceed thirty thousand dollars.
(2) 
Purchases over thirty thousand dollars up to seventy-five thousand dollars shall follow the procedures set forth in Section 2.30.030(b) of this chapter and the procedures set forth in the California Public Contract Code, and require city manager approval. The city manager may approve amendments and/or change orders to existing purchases, agreements, contracts, and/or purchase orders, so long as the cumulative total of the contract (change order(s)/amendment(s) plus original contract value) does not exceed seventy-five thousand dollars.
(3) 
Purchases over seventy-five thousand dollars shall follow the procedures set forth in Section 2.30.030(b) of this chapter and the procedures set forth in the California Public Contract Code, and require city council approval.
(Ord. 1368 § 1, 2000; Ord. 1626 § 1, 2017; Ord. 1637 § 1, 2019; Ord. 1669 § 1, 2022)
(a) 
Emergency Purchases. The city manager may authorize any purchase up to five hundred thousand dollars and a department director may authorize any purchase up to fifty thousand dollars without regard to bid procedures when one or more of the following conditions exist:
(1) 
There is great public calamity;
(2) 
There is immediate need to prepare for national or local defense;
(3) 
There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies and equipment to protect the public health, welfare or safety;
(4) 
An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item.
(b) 
Sole Source Item or Service. If an item or service were available from only one vendor or firm, then the purchase is exempt from bid requirements.
(c) 
Cooperative Purchasing. If a purchase is based on the bidding efforts of another public agency or purchased in conjunction with another public agency, then the purchase is exempt from bid requirements.
(d) 
Purchase of Investment Instruments. The purchase of investment instruments are governed by the criteria set forth in the city's investment policy and are exempt from the requirements of this chapter.
(e) 
Emergency Purchases Using Federal Funds. Emergency purchases for which the city will use federal funds, or for which the city will be reimbursed by federal funds, e.g., Federal Emergency Management Agency (FEMA) awards, must be made in accordance with the procedures for special procurement for federally-funded projects and purchases.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)
Departments shall inspect supplies, materials and equipment delivered to determine their conformance with the specifications set forth in the order or contract. Departments shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries, as are necessary to determine their quality performance with specifications.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)
In its discretion, the city council may reject any and all bids or proposals and re-advertise.
(Ord. 1368 § 1, 2000; Ord. 1637 § 1, 2019)