This chapter shall apply to all city purchases, procurements, and contracts including those for supplies, services, equipment, public works, and professional services.
(Ord. 1537 § 2, 2018)
This section applies to all city purchases except public works contracts over five thousand dollars, professional services contracts, and fixed charges. Purchases shall be made to the responsible vendor offering the lowest acceptable bid or through best value procedures that provide adequate and reasonable competition at the sole discretion of the city. Quotations and bids shall be obtained using the following methods.
(a) 
Micro-Purchases. Purchases aggregating three thousand five hundred dollars or less may be awarded without soliciting competitive quotations.
(b) 
Small Purchases. Purchases aggregating over three thousand five hundred dollars to fifty thousand dollars shall be obtained using informal quotations from at least two qualified vendors.
(c) 
Procurements (Over Fifty Thousand Dollars).
(1) 
Service contracts aggregating over fifty thousand dollars shall be selected using a request for proposal or a request for bid process, as determined by the purchasing officer to serve the city's greater benefit, based on each contract or procurement.
(2) 
Other purchases aggregating over fifty thousand dollars shall be awarded to the lowest responsive and responsible bidder through competitive bid procedures unless the purchasing officer determines that the public interest would be served by using a modified procedure.
(3) 
The city reserves the right in its sole discretion to reject any and all bids presented and to readvertise for bids.
(Ord. 1537 § 2, 2018)
Unless the provisions of Chapter 2.38 apply, any award of a public works contract over five thousand dollars shall be made in accordance with this section. The procedures used shall ensure that the city obtains adequate and reasonable competition.
(a) 
Formal Bidding. Public works contracts require formal, competitive sealed bidding pursuant to state law.
(1) 
Public Notice. Public notice of the request for bids shall be published.
(2) 
Bid Opening. Sealed bids shall be opened by the city clerk or designee publicly in the presence of at least one witness at the time and place designated in the request for bids.
(3) 
Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without alteration or correction. The city retains the right to waive minor irregularities in the bid, but will reject nonresponsive bids in accordance with law.
(4) 
Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, if the public interest will not be served by re-advertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders.
(5) 
Rejection of Bids. In its sole discretion the city may reject any and all bids presented and readvertise for bids.
(6) 
Award. The contract shall be awarded to the lowest responsible and responsive bidder.
(7) 
Storage of Sealed Bids. All opened bid materials, after the award, are to be retained for the time prescribed by the records management program.
(b) 
Emergency Exception to Competitive Bidding. In an emergency, the procedures of Public Contract Code Sections 20168 and 22050, or any successor statute, shall apply. The city manager is authorized to order emergency work pursuant to Public Contract Code Section 22050 and if such action is ordered, the city manager shall report to the council at successive regular meetings stating the justification for continuing with the emergency work. In the absence or inability of the city manager to so act, the director of public works shall be authorized to exercise these powers.
(Ord. 1537 § 2, 2018)
This section applies to the procurement of professional services. Professional services includes any type of special service or advice in financial, economic, accounting, engineering, legal or administrative matters by persons specially trained and experienced and competent to perform the special services required (Government Code Section 53060). Such services include, but are not limited to, architectural; engineering; environmental; financial; land surveying; construction management; audits; training services; legal services; preparation of planning or studies; technology application development; and personnel, job classification and benefit studies.
(a) 
Contracts aggregating fifty thousand dollars or less can be obtained by negotiated contract and/or by purchase order.
(b) 
Contracts aggregating greater than fifty thousand dollars shall be obtained by request for proposal (RFP) or request for qualification (RFQ).
(c) 
Professional services contracts shall be awarded only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. Professional services are generally retained considering technical factors (such as qualifications and experience), price and other factors such as the ability to meet the city's time schedule(s) for the project.
(Ord. 1537 § 2, 2018)
Fixed charges are goods or services that can be acquired from only one source for which a fixed charge has been determined. Fixed charge contracts can be obtained without bid, request for proposal, or request for qualifications. A purchase order is not required for these types of purchases.
(Ord. 1537 § 2, 2018)
When deemed necessary by the city manager or the city manager's designated representative, bidder's security may be prescribed in the notice inviting bids. All public works bids shall be accompanied by security. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within ten 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 to execute the contract, award it to the next lowest responsible, responsive 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 difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
(Ord. 1537 § 2, 2018)
The city shall have authority to require a performance bond of the successful bidder before entering into a contract pursuant to an award in such an amount as it shall find reasonably necessary to protect the best interests of the city. If the city requires a performance bond, the form shall be approved by the city attorney. The amount and form, whenever possible, shall be set forth in the notice inviting bids.
(Ord. 1537 § 2, 2018)
(a) 
Bidding may be dispensed with when one or more of the following apply:
(1) 
An emergency requires that an order be placed with the nearest source of supply;
(2) 
When the commodity or service can be obtained from only one vendor;
(3) 
When used equipment can be acquired which meets the needs of the city and costs less;
(4) 
When participating in cooperative contracts with another government agency;
(5) 
When "piggybacking" off the pricing that was previously established by another government agency; provided the original solicitation was made in a competitive manner and awarded to the lowest responsible bidder;
(6) 
When the public interest otherwise requires that bidding be dispensed with provided the city council approves the purchase by majority vote and, as part of its approval, indicates the reasons bidding was dispensed with; or the city manager, director of finance, or purchasing officer makes similar findings for contracts with a value of fifty thousand dollars or less;
(7) 
Where two bids cannot be obtained.
(b) 
In no event shall bidding be dispensed with when required by federal or state law.
(Ord. 1537 § 2, 2018)
All purchases over three thousand five hundred dollars shall be made by purchase order or written contract except for purchases involving "fixed charges."
(Ord. 1537 § 2, 2018)
(a) 
The city manager is authorized to award and sign contracts on behalf of the city when the total amount of the city's expenditure on the contract is fifty thousand dollars or less. The director of finance is authorized to award and sign contracts on behalf of the city when the total amount of the city's expenditure on the contract is twenty-five thousand dollars or less. Contracts greater than fifty-thousand dollars require city council approval.
(b) 
The city council is authorized to award any city contract. Any contract awarded by the city council shall be attested to by the city clerk and signed by the mayor. In the absence or unavailability of the mayor, the mayor pro tempore may sign contracts awarded by the city council.
(c) 
The city council may authorize by minute order, resolution, or ordinance, any person to award, sign, or both, any contract on behalf of the city.
(d) 
Any contract that is not awarded and signed in compliance with this section is void.
(Ord. 1537 § 2, 2018)
Notwithstanding the provisions of this chapter, federal or state law and any special conditions pertaining to grants shall also be met when purchasing or contracting pursuant to such grants.
(Ord. 1537 § 2, 2018)
The city shall endeavor to create specifications and make purchases that are environmentally friendly to the extent practicable and consistent with the common good, taking into account the city's budget and other factors.
(Ord. 1537 § 2, 2018)
(a) 
There is hereby established a local preference for purchases of goods and services of five percent. Such preference shall be applied to a bid or proposal for such goods and services as follows:
(1) 
The bidder asserting the local preference produces proof of a Fountain Valley business license that has been in existence for at least six months;
(2) 
The bidder who is selling goods produces a resale license listing a Fountain Valley address;
(3) 
The bidder shall have a physical address and place of business in the city of Fountain Valley.
(b) 
The local preference shall not apply to the following:
(1) 
Contracts funded in whole or in part from donations and gifts to the city to the extent the provisions would conflict with any special conditions attached to the gifts or donations, provided the gift and the special conditions have been approved and accepted pursuant to the donations policy of the city.
(2) 
Contracts resulting from emergency conditions where any delay in completion or performance of the contract would jeopardize public health, safety or welfare of the citizens of the city, or where in the judgment of the city manager or designee the operational effectiveness or a significant city function would be seriously threatened if the contract were not entered into expeditiously.
(3) 
Contracts with any single or sole source supplier for supplies, material, equipment or other personal property.
(4) 
Contracts funded by the federal government. Local preferences shall not be used in the evaluation of bids or proposals unless state/federal statutes expressly mandate or encourage geographic preference.
(5) 
Public works contracts.
(Ord. 1537 § 2, 2018)