The purpose of this chapter is to set forth policy for the purchase of supplies, material, equipment and services, and to clearly define the authority of the purchasing function.
(Ord. 3474 § 1, 2000)
Note: Prior history: Prior code §§ 8.375—8.388 as amended by Ords. 2265, 2900, 2918, 3053, 3155 and 3280.
As used in this chapter, the following terms are defined as follows:
mean any of the departments, offices or other organizational units of the City government.
means services such as, but not limited to, the services of attorneys, physicians, architects, engineers, and other consultants or individuals or organizations possessing a high degree of technical skill.
means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind, including demolitions, and the construction and installation of drainage systems, lighting and signaling systems, sewer and water systems, and park and recreational facilities.
means a person or entity who has the capability in all respects to perform fully the contract requirements.
means a person or entity who has submitted a bid which conforms in all material respects to the invitations for bids.
means any and all work performed or services rendered by independent contractors, with or without the furnishing of material, such as, but not limited to: custodial services, building and equipment maintenance, machinery and equipment rental, and telephone, gas, water, electric light and power services, excluding contracts for public works projects or professional services.
mean any and all articles or things which shall be furnished to or used by any department of the City, including those items purchased by the City and furnished to contractors for use in public works projects.
means waste materials generated in the work process and discarded articles, parts, equipment or supplies, material, equipment useful only for reprocessing.
(Ord. 3474 § 1, 2000; Ord. 4005 § 1, 2013)
In order to establish efficient procedures for the purchase of supplies, material, equipment and services at the lowest possible cost, with appropriate fitness for purpose and quality needed, to exercise positive financial control over purchases, and to clearly define authority for the purchasing function, a centralized purchasing system is adopted.
(Ord. 3474 § 1, 2000)
There is created a centralized purchasing organization in which is vested authority for the purchase of supplies, materials, equipment and services, creation and maintenance of the policy for the management of inventory, and to perform duties as assigned by ordinance or regulation.
(Ord. 3474 § 1, 2000; Ord. 4005 § 2, 2013)
The Purchasing Agent shall have authority to:
(A)
Purchase or contract for supplies, materials, equipment, and services required by any using department including lease agreements for said property in accordance with purchasing procedures prescribed by this chapter;
(B)
Act to procure for the City the needed quality in supplies, materials, equipment and services at least expense to the City;
(C)
Obtain as full and open competition as possible on all purchases;
(D)
Prepare and recommend to the Council rules and regulations for governing the purchase of supplies, materials, equipment and service for the City;
(E)
Prepare and recommend revisions and amendments to the purchasing policies and procedures;
(F)
Keep informed of current developments in the field of purchasing prices, market conditions and new products;
(G)
Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations;
(H)
Supervise the inspection of all supplies, materials, equipment, and services purchased to insure conformance with specifications;
(I)
Recommend the transfer of surplus or unused supplies, materials and equipment between departments as needed and dispose of, through sale or other means, surplus property and scrap materials; and
(J)
Exercise general supervision and control over all inventories of supplies belonging to the City as assigned to the Purchasing Agent, and provide guidance to City personnel operating other storage sites.
(Ord. 3474 § 1, 2000)
The Purchasing Agent may authorize, in writing, any or all departments to purchase or contract for supplies, materials, equipment and services, independently of the Purchasing Section, including supplies, materials, equipment and services with a total cost of less than $10,000.00, but shall require that such purchases or contracts be made in conformity with the procedures established by this chapter. The Purchasing Agent may also rescind any or all of such authorizations upon written notice.
(Ord. 3474 § 1, 2000; Ord. 4005 § 3, 2013)
Using departments shall submit to the Purchasing Agent requisitions for supplies, material, equipment and services required for their operations, in such a manner at such time and for such future periods as the Purchasing Agent shall prescribe, and for the purposes and within the limits of funds appropriated therefor.
(Ord. 3474 § 1, 2000)
All using departments shall submit to the Purchasing Agent, at such times and in such forms as he or she shall prescribe, reports showing all supplies, materials, and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Agent shall have authority to sell as surplus such supplies, materials and equipment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for, or trade in the same on new supplies, materials, and equipment.
(Ord. 3474 § 1, 2000)
Except in cases of an emergency, the Purchasing Agent shall not issue any purchase order nor shall any contract be approved for supplies, materials, equipment or services unless there exists an unencumbered appropriation in the fund account against which said purchase or contract is to be charged.
(Ord. 3474 § 1, 2000; Ord. 4005 § 4, 2013)
(A)
All purchases of and contracts for supplies, material, equipment and services, and all sales of said property which have been found not to be required for public use, shall be based, wherever possible, on competitive bids.
(B)
It shall be the responsibility of the Purchasing Agent to evaluate each purchase or surplus action and to initiate the appropriate method of purchase or disposal which will be most cost effective for the City.
(C)
Emergency purchases and contracts for supplies, material, equipment and services may be made free of the bidding requirements of this chapter when the purchase or contract for the item or items is immediately necessary for the continued operation of a department or for the preservation of life or property, or when such purchase is required for the health, safety, and welfare of the people or for the protection of property; provided, that, there is a present, immediate, and existing emergency. Determination and declaration that such an emergency exists shall be made at the same level of authority as set forth in Section 3-08.110 of this chapter.
(D)
If limitations on the source of supply, necessary restrictions in specifications, necessary standardization, quality considerations, or other valid reasons for waiving competition appears, then purchases may be made without recourse to the competitive bidding provisions of this chapter. Approval of waiver of competitive bidding shall be given by the same level of authority as set forth in Section 3-08.110 of this chapter.
(Ord. 3474 § 1, 2000; Ord. 4005 § 5, 2013)
(A)
Purchases or contracts that exceed $100,000.00 shall be awarded by the City Council, except that the Board of Public Utilities may award purchases or contracts that exceed $100,000.00 in accordance with City Charter Section 25. Purchases or contracts equal to or less than $100,000.00 may be awarded by the City Manager. Purchases or contracts equal to or less than $50,000.00 may be awarded by the Purchasing Agent.
(B)
No purchase or contract made by any person other than the above shall be binding upon the City or constitute a lawful charge against any City funds.
(C)
Modifications to contracts or purchase orders which represent no change in the scope of the character of material or services provided in the original contract or purchase order may be approved by the City Manager or Purchasing Agent if the dollar value of the modification is within their award authority.
(Ord. 3474 § 1, 2000; Ord. 3649 § 1, 2004; Ord. 4005 § 6, 2013)
(A)
Restrictions on Amount. If the cost of a service or commodity or a class of commodities normally obtained from the same sources of supply, or for a sale of personal property which has been found not to be required for public use, is estimated to exceed $100,000.00, purchase or sale shall be by formal bid. When the cost of the foregoing items is less than $100,000.00, purchase or sale shall be made in accordance with small purchase procedures. Bidding may be dispensed with in the discretion of the Purchasing Agent if the total cost is less than $10,000.00. (B) Formal bid procedures are competitive sealed bidding or competitive sealed proposals as provided for in this chapter.
(Ord. 3474 § 1, 2000; Ord. 4005 § 7, 2013)
(A)
Conditions for Use. All contracts and/or purchases formally bid shall be by competitive sealed bidding except as otherwise provided in Section 3-08.140 of this chapter.
(B)
Invitations for Bids. An invitation for bids (IFB) shall be issued and shall include a purchase description, specifications and all contractual terms and conditions applicable to the procurement.
(C)
Public Notice. Public notice of the invitation for bids shall be given as determined by the Purchasing Agent. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid documents and specifications may be secured, and the time and place for opening bids.
(D)
Bidders' Security. When deemed necessary by the Purchasing Agent, bidders' security may be prescribed in the invitation to bid. Bids received without the prescribed security shall be considered nonresponsive and shall be rejected. 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 purchase agreement within 10 days after the notice of award has been mailed, unless the City is responsible for the delay. If the successful award is made to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
(E)
Performance Bonds. When deemed necessary by the Purchasing Agent, a performance bond may be prescribed in such amount as he or she shall find reasonably necessary to protect the best interest of the City, and shall be described in the notice inviting bids. Failure to submit a performance bond in the time prescribed in the notice of award shall be just cause for annulment of the award and forfeiture of the bidder's security.
(F)
Insurance and Indemnity. Bids solicited for contractual services or specialized equipment shall include insurance requirements and indemnity clauses.
(G)
Bid Opening. Sealed bids shall be submitted to the Purchasing Agent and shall be identified on the envelope as a bid. Bids may also be submitted over the Internet, at the discretion of the Purchasing Agent, in accordance with California Public Contract Code Section 1601. Bids shall be opened in public at the time and place stated in the invitation for bids. A tabulation of all bids received shall be open for public inspection in the City's purchasing office during regular business hours for a period of not less than 30 calendar days after the bid opening.
(H)
Bid Evaluation. Bids shall be evaluated based on the requirement set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. Those criteria that will affect the bid price and be considered in evaluation for award shall be objectively measurable. The invitation for bids shall set forth the evaluation criteria to be used. The contract will be awarded to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
(I)
Local Preference. A one percent preference shall be granted to local bidders in determining low monetary bid, except that the amount of the preference shall not exceed $5,000.00. "Local bidder" is defined as a business entity with its principal place of business located within the City limits. To qualify for the preference, local bidders must submit proof of the address of its principal place of business and a copy of a current City business license with their bids. This provision shall only apply to bids where written bids are solicited, and shall not apply when conducting verbal quotations. These provisions shall not apply to bids that are intended to be in cooperation with other jurisdictions. These provisions may be waived by the Purchasing Agent when prohibited by the conditions of Federal, State or private grant monies.
(J)
Rejection of Bids. The City shall reserve the right to reject any or all bids in whole or in part and may waive any irregularities or informalities in any bid when such action is considered to be in the best interest of the City. The Purchasing Agent shall have the authority to reject bids and waive irregularities or informalities on behalf of the City. All bids received after the designated closing date and time shall be considered nonresponsive and shall be rejected.
(K)
Tie Bids. If two or more bids received are for the same total amount of unit price, quality and service being equal and if there is no evidence of collusion between the bidders, then the award authority may accept the bid of its choice.
(Ord. 3474 § 1, 2000; Ord. 4005 § 8, 2013)
(A)
Conditions for Use. When the Purchasing Agent determines in writing that the use of competitive sealed bids is either not practical or not advantageous to the City, a contract or purchase may be entered into by use of competitive sealed proposals.
(B)
Request for Proposal. Proposals shall be solicited through a request for proposal.
(C)
Public Notice. Public notice of the request for proposal shall be given as determined by the Purchasing Agent.
(D)
Receipt of Proposals. Sealed proposals shall be submitted to the Purchasing Agent by the date and time specified on the prescribed forms and shall be identified by the request-for-proposal number. Proposals may also be submitted over the Internet, at the discretion of the Purchasing Agent, in accordance with California Public Contract Code Section 1601.
(E)
Proposal Evaluation. The request for proposals shall state the criteria for evaluation and the relative importance of price and other factors.
(F)
Negotiation. The most qualified and responsive offeror will be selected for contract negotiation. If agreement cannot be negotiated with the first choice offeror, the second choice offeror will be contacted with the first choice offeror dismissed from further consideration on that particular project. The negotiation process shall be documented by the Purchasing Agent.
(G)
Award. Award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the City, taking into consideration price and the criteria established for evaluation set forth in the request for proposal. The contract file shall contain the basis on which the award is made.
(H)
Rejection of Proposals. The City reserves the right to reject any or all proposals in whole or in part and may waive any irregularities or informalities in the proposals when such action is considered to be in the best interest of the City. The Purchasing Agent shall have the authority to reject proposals and waive irregularities or informalities on be-half of the City. All proposals received after the designated closing date and time shall be considered nonresponsive and shall be rejected.
(Ord. 3474 § 1, 2000; Ord. 4005 § 9, 2013)
Any contract or purchase not exceeding $100,000.00 may be made in accordance with small purchase procedures; provided, however, that requirements shall not be artificially divided so as to constitute a small purchase under this section. Insofar as is practical, no less than three bids shall be solicited. All bids shall be recorded by the Purchasing Agent or the Purchasing Agent's designee and maintained as a public record open for inspection for a period of one year from date of award. Award shall be made to the lowest responsive and responsible bidder through request for quotations, or to the offeror whose proposal is determined to be the most advantageous to the City through request for proposals following procedures promulgated by the Purchasing Agent.
(Ord. 3474 § 1, 2000; Ord. 4005 § 10, 2013)
Purchases of supplies, material, equipment or services, and sales of surplus property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the State, County, or other public agencies are exempt from the requirements of this chapter. To the extent possible, cooperative purchases joined will be competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained.
(Ord. 3474 § 1, 2000)
The City shall inspect supplies, materials, and equipment delivered, and contractual services performed to determine their conformance with specifications set forth in the order to contract. The Purchasing Agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.
(Ord. 3474 § 1, 2000)
(A)
Right to Protest. Any bidder who objects to the award of contract may protest to the Purchasing Agent prior to the bid award.
(B)
Authority to Resolve Protests. The Purchasing Agent shall have authority, prior to award, to settle and resolve a protest.
(C)
Decision Process. If the protest is not resolved by mutual agreement, the Purchasing Agent shall issue a decision in writing, stating the decision and facts supporting the decision and informing the protestant of its right to appeal the decision in accordance with City of Santa Rosa, City Code, Chapter 1-20. A copy of the decision shall be mailed or otherwise furnished to the protesting bidder. A decision under this procedure shall be final except that the Purchasing Agent's final decision may be appealed to the Council.
(Ord. 3474 § 1, 2000)