Editor's note: Section 1 of Ord. No. 877, adopted Jan. 27, 1992, amended Ch. 21A to read as herein set out. Formerly, Ch. 21A consisted of §§ 21A-1—21A-14, which pertained to purchasing and derived from Ord. No. 296; §§ 1—3 of Ord. No. 576, adopted Aug. 10, 1976; § 2 of Ord. No. 592, adopted Nov. 8, 1976; § 1 of Ord. No. 664, adopted July 28, 1980; and § 1 of Ord. No. 812, adopted Mar. 13, 1989. Section 1 of Ord. No. 877 provided for the addition of §§ 21A-0—21A-18. To maintain the numbering style of this Code, these sections have been renumbered as §§ 21A-1—21A-19 at the editor's discretion.
In adopting the provisions of this chapter, the city council finds and determines that purchasing and bidding and the procedures accompanying therewith are matters of local concern subject only to the dictates of the Cypress City Charter and this chapter. This determination by the city council also includes, without limitation, public projects and public works projects. The city council may, in its sole and unfettered discretion, elect not to pay prevailing wages on any locally funded public works project to the maximum extent permitted by California Labor Code section 1782.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99; Ord. No. 1134, § 1, 8-13-12; Ord. No. 1147, § 1, 10-27-14)
In order to establish efficient procedures for the purchases of supplies, equipment, and services; to secure for the city supplies, equipment, and services at the lowest possible cost commensurate with quality needed and with due consideration to disposability; to exercise positive financial control over purchases; to clearly define authority for the purchasing functions; to assure the quality of purchases; and to buy without favor or prejudice, a purchasing system is hereby adopted and shall control the procedure for all purchases except as otherwise provided by law or pursuant to the purchasing rules and regulations. The chapter is divided into two sections, formal contract and open market procedures, each having its own distinct requirements.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
The following terms, whenever used in this chapter, shall be construed as follows:
"Function or using agency"
shall mean any department, agency, or other unit of city government which derives its support wholly or in part from the city.
"Paper products"
include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR section 18982(a)(51).
"Printing and writing paper"
includes, but is not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR section 18982(a)(54).
"Purchasing officer"
shall mean the official designated by the city manager for enforcement of this chapter.
"Recycled-content paper"
means paper products and printing and writing paper that consists of at least 30%, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR section 18982(a)(61).
"Services"
shall mean any and all services, including, but not limited to, equipment service contracts. The term does not include services rendered by city officers or employees, nor professional or other contractual services for which the procedure for procurement is specifically provided by law or the purchasing rules and regulations.
"Supplies and equipment"
shall mean any and all articles, things, or personal property furnished to or used by any city function.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99; Ord. No. 1190, § 4, 9-27-21)
There is hereby created a centralized purchasing section within the finance and administrative services department of the city in which is vested authority for the centralized purchase of supplies, equipment, and services.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
There is hereby created the position of purchasing officer. The purchasing officer shall be appointed by the city manager. The purchasing officer shall direct and supervise the city's purchasing section. The duties of the purchasing officer may be combined with those of any other office or position. He or she shall appoint such employees as may be authorized. The purchasing officer shall endeavor to obtain as full and open competition as possible on all purchases.
He or she shall establish methods and procedures necessary for the efficient and economical functioning of the purchasing program.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
The purchasing officer shall have the authority to:
(a) 
Purchase or contract for supplies, equipment, and services 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 division and such other rules and regulations as shall be prescribed by the city council or city manager or as otherwise provided by law.
(b) 
Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and services.
(c) 
Act to procure for the city the needed quality in supplies, equipment, and services at least expense to the city.
(d) 
Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.
(e) 
Prepare and recommend to the city council rules governing the purchase of supplies, equipment, and services for the city.
(f) 
Prepare and recommend to the city council revisions and amendments to the purchasing rules.
(g) 
Keep informed of current developments in the field of purchasing, prices, market conditions, and new products.
(h) 
Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations.
(i) 
Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications.
(j) 
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 become unsuitable for city use.
(k) 
Maintain a bidders' list, vendors' catalog file, and records needed for the efficient operation of the purchasing section.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
The purchasing officer, with approval from the city manager, may authorize, in writing, any using agency to purchase specified supplies, equipment, or services independently of the purchasing division, but he or she shall require that such purchases be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases made under such written authorization.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
All using agencies shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms or by other means as may be established by the purchasing rules and regulations.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
Purchases of supplies and equipment shall be by bid procedure pursuant to sections 21A-12 and 21A-13 hereof. Bidding may be dispensed with:
(a) 
When an emergency requires that an order be placed with the nearest available source of supply.
(b) 
When the amount involved is less than an amount established by resolution of the city council. The council shall establish such amount based upon its determination that the requirement of a competitive bidding procedure constitutes an unwarranted expense for the amount established.
(c) 
When the commodity can be obtained from only one vendor.
(d) 
When there is to be a contract for professional services such as, but not limited to, the services of attorneys, architects, or engineers or where the service contracted for deals with public relations or promotions, elections, negotiations, acquisition of land, trash, garbage or refuse disposal or the like, insurance, bonds, any other services of similar nature to those listed, those items which are in their nature unique and not subject to competition or other services for which by law another officer or body is specifically charged with obtaining. For professional services, a request for qualifications, ('RFQ'), should be used to select the appropriate professional or professionals. For contracts under $25,000 the city manager is authorized to enter into the contract. Contracts in excess of $25,000 shall be approved by the city council.
(e) 
When, through cooperative purchasing with the state, the county, and other public agencies, the advantages of large scale buying may be obtained at a lower price upon the same terms, conditions, and specifications.
(f) 
When the city council determines it would be in the best interest of the city to dispense with bidding; provided, however, that the city council shall state the basis of its determination.
(g) 
When, at the discretion of the purchasing officer, a distinct advantage is clearly evident in the city's best interest in regard to product uniformity and its subsequent maintenance requirements, a decision shall be rendered by the purchasing officer justifying the product line to be used. Such decision shall be in writing and attached to the file copy of the purchase order.
(h) 
Any contract which combines professional services and the acquisition of goods or equipment where the professional services are specifically retained to advise the city on the selection of the goods or equipment and the professional services utilized under the contract also include designing, retrofitting, or modifying the goods or equipment to meet the particular needs of the city. This exemption shall also include the acquisition by the city of 'intellectual property.' In utilizing this exemption, an RFQ shall be used. For contracts under $25,000 the city manager is authorized to enter into the contract. Contracts in excess of twenty-five thousand ($25,000.00) shall be approved by the city council.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
Purchase of supplies, equipment, and services shall be made by use of a purchase order except as provided for in the purchasing rules and regulations. Except as otherwise provided herein, no purchase order shall be issued unless the prior approval of the purchasing officer or his/her designated representative has been obtained.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
Except as otherwise provided herein and in accordance with the city's power as a Charter City, purchases of supplies, equipment, or services of an individual of an estimated value greater than $25,000 shall be by written contract with the lowest responsible bidder, pursuant to the procedure hereinafter prescribed.
(a) 
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.
(1) 
Published notices. Notices inviting bids shall be published at least 10 days before the date of opening the bids. Notices shall be published pursuant to Section 420 of the Cypress City Charter.
(2) 
Bidders' list. The purchasing officer shall also solicit bids from responsible prospective suppliers whose names are on the bidders' list or who have made a written request that their names be added thereto.
(3) 
Bulletin board. The purchasing officer shall also advertise pending purchasing by a notice posted on a public bulletin board in the city hall.
(b) 
Bidder's security. 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, however, that a successful bidder shall forfeit his/her bid security upon his/her refusal or failure to execute the contract within 10 days after the notice of award of the contract has been mailed unless in the latter event the city is solely responsible for the delay in executing the contract. 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 awards the contract to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the city council rejects all bids presented and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids (and the surplus, if any, shall be returned to the lowest bidder).
(c) 
Bid opening procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as "bid" on the envelope. Bids shall be opened in public at the time and place stated in the public notice. 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.
(d) 
Rejection of bids. In its discretion, the city council may reject any and all bids presented.
(e) 
Award of contracts. Except as otherwise provided herein, contracts shall be awarded by the city council to the lowest responsible bidder.
(f) 
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 in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.
(g) 
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 interest 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.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99; Ord. No. 1189, § 4, 8-23-21)
Purchases of supplies, equipment, and services of an estimated value in the amount of $25,000 or less may be made by the purchasing officer in the open market pursuant to the procedure prescribed in section 21A-12; provided, however, all bidding may be dispensed with for purchases of supplies, equipment, and services having a total estimated value of less than the amount established by resolution of the city council pursuant to section 21A-10.
(a) 
Minimum number of bids. Open market purchases shall, wherever possible, be based on at least three bids and shall be awarded to the lowest responsible bidder.
(b) 
Notice inviting informal bids. The purchasing officer may solicit informal bids by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board in the city hall.
(c) 
Written bids. Sealed written bids shall be submitted to the purchasing officer, who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
The purchasing officer or such person as appointed by the purchasing officer shall inspect the supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing officer shall have authority to require chemical or physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with the specifications.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
All using agencies shall submit to the purchasing officer, at such times and in such forms as he/she 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 exchange for or trade in on new supplies and equipment all supplies and equipment which have become unsuitable for city use.
(a) 
Such items so declared to be surplus shall be offered for sale on a competitive bid basis. Bids may be solicited by written request, telephone, public notice posted on city property, by public auction by advertisements in any newspaper or magazine, or by any combination of such methods.
(b) 
The city manager or designee is authorized to sell to the highest bidder any surplus supplies or equipment. Sale of any item with an estimated value in excess of $5,000 shall be sold to the highest bidder, in accordance with the formal bid procedures, or any other means provided herein, with the approval of the city manager.
(c) 
When, after a reasonable effort has been made to obtain bids, no bids have been obtained for any item or city-owned personal property declared to be surplus, the city manager or his/her designee is authorized to dispose of such item for the highest scrap value that can be obtained therefor, and if a reasonable effort to do so produces no opportunity to sell the same for scrap, he/she may cause its destruction or any other disposition thereof upon a finding that the disposition is for the common benefit. (Government Code section 37350).
(d) 
The city manager or designee is authorized to declare surplus office furniture, office equipment and supplies (with a negligible fair market value) as eligible for distribution to local non-profit organizations and local public agencies rather than disposal through a formal bidding or auction process. All non-profit agencies that participate in the Cypress non-profit grant request program will be notified when such items become available for donation. Any entity requesting a donation must demonstrate a transparent need for the item(s) and must utilize the item(s) as part of their operating activities. The city manager or designee will determine the entities selected to receive a donation based on overall value to the community. The total cumulative value of any donated office furniture, office equipment and supplies to a single non-profit or local public agency cannot exceed $1,000 annually.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99; Ord. No. 1196, § 1, 6-27-22)
Any provision of this chapter to the contrary notwithstanding, supplies, equipment, and/or services may be purchased from other than the lowest responsible bidder in any case in which the city council shall find that, in light of all circumstances applicable to the particular purchase, including, but not limited to, location of the vendor and the amount of staff time required for the administration of the contract, the city will acquire the supplies, equipment, or service at a lower net cost by effecting its purchase from a party other than the lowest responsible bidder.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
The purchasing officer, with the approval of the council, may contract for supplies equipment, services, or leases without observing the procedure required herein regardless of estimated value of such supplies, equipment, services, or leases when the best interests of the city would be served thereby. Whenever the council approves the purchase of supplies, equipment, services, or leases without observing the procedures required in this chapter, the council may require that the purchasing officer solicit informal bids under such conditions and limitations as the city council may impose. This exemption section shall not apply to any public work of a total value of $25,000 or more.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
In those situations that a procurement of any product is obtainable only from a single or sole source, and not adaptable to competitive bidding, the purchasing officer, upon approval of the city manager, shall negotiate with the purveyor of such equipment, product, supply, or service to the end that the city receives the desired equipment, product, supply, or service on fair and equitable terms, without observing the procedures prescribed in this chapter.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99)
Every project involving an expenditure of more than $100,000 for the construction, improvement, repair, or maintenance of public works shall be let in accordance with the procedures set forth in the Charter of the City of Cypress. Such projects involving an expenditure of $100,000 or less may be affected by the use of city forces or let through informal bid procedures applicable to the purchase of supplies and equipment. For professional services contracts under $50,000 related to public works projects, the city manager is authorized to enter into contract. Contracts in excess of $50,000 shall be approved by city council. These limits shall be updated annually before July 1 of each year, based on the cost index for construction costs in Los Angeles area as published by ENGINEERING NEWS-RECORD, New York, New York, by resolution of city council.
(Ord. No. 877, § 1, 1-27-92; Ord. No. 985, § 1, 1-25-99; Ord. No. 1102, § 1, 10-27-08)
(a) 
City departments, and direct service providers to the city, as applicable, shall comply with the city's procurement policy regarding recovered organic waste products and recycled-content paper procurement, as adopted by the city council.
(b) 
All vendors providing paper products and printing and writing paper to the city shall:
(1) 
If fitness and quality are equal, provide recycled-content paper instead of non-recycled products whenever recycled-content paper is available at the same or lesser total cost than nonrecycled products.
(2) 
Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standards as defined in 16 Code of Federal Regulations (CFR) Section 260.12, as published January 1, 2013.
(3) 
Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the city. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
(4) 
Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the city is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12, as published January 1, 2013.
(5) 
Provide records to the city, in accordance with the city's procurement policy, of all paper products and printing and writing paper purchases within 30 days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by any division or department or employee of the city. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in subsections (b)(3) and (b)(4) of this section for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper was not provided.
(Ord. No. 1190, § 5, 9-27-21)