Note: Prior ordinance history: Ords. 87-13, 87-35 and 02-6.
The purpose of this chapter is to establish policies and procedures for the purchase of supplies and equipment, contractual services agreements and awarding of public project contracts, and to comply with Government Code Sections 54201 through 54205 that require that cities adopt policies and procedures governing the purchase of supplies and equipment.
(Ord. 3-11 § 2)
For the purposes of this chapter, the following words and phrases shall have the meanings ascribed to them by this section.
"Competitive bid" or "competitive bidding"
means an offer, or the process leading to an offer, submitted pursuant to a public notice inviting suppliers to provide the city with specified supplies or equipment; and which offers are submitted as sealed bids.
"Contractual service agreement"
means an agreement for any service not performed by city personnel, including the following:
1. 
Telephone, gas, water, electric and other utility services;
2. 
Towel, window washing and cleaning services;
3. 
Banking, loaning, leasing and other financial services;
4. 
The rental of equipment and facilities;
5. 
The services of attorneys, physicians, architects, engineers, consultants or other individuals or organizations possessing a high degree of technical and professional skills;
6. 
Insurance, maintenance agreements and other forms of guarantee;
7. 
Labor and materials provided by individuals acting as independent contractors or by organizations, unless provided as part of a public project;
8. 
Other items not considered supplies, equipment or public projects.
"Open market purchase"
means the purchase of supplies and equipment without the need for soliciting sealed bids or awarding to the lowest bidder.
"Public project"
has the meaning ascribed to it in Section 20161 of the Public Contract Code.
"Purchase"
means all obligations to disburse public funds for the acquisition of supplies and equipment.
"Responsible bidder"
means a bidder who has furnished, when requested, information and data to provide that his or her financial resources, production or service facilities, service reputation and experience are adequate to make satisfactory delivery of the supplies or equipment to satisfy any provision of this chapter.
(Ord. 3-11 § 2)
A. 
The director of finance shall act as purchasing agent and shall be responsible for the proper administration of this chapter and administrative policies adopted pursuant to this chapter. The director of finance may delegate such duties and responsibilities assigned as appropriate and desirable.
B. 
The purchasing agent shall prepare administrative policies to implement the provisions of this chapter. Such policies shall be approved by the city manager, who shall submit them to the city council for final adoption. Thereafter, the director of finance shall take such steps as are necessary and proper to ensure compliance with them.
(Ord. 3-11 § 2)
All purchases shall be in keeping with policies adopted by the city council through the general plan, annual budget, ordinances, resolutions, administrative policies and minute orders. Furthermore, except for the following exceptions, all purchases shall be made from unencumbered appropriations. Accordingly, no open market purchases shall be made, no notice of award shall be issued, no contract shall be signed until the purchasing agent has determined that the unexpended balance in the appropriation is sufficient to defray the amount of such purchase or contract, or until provisions for modifying the appropriation are made.
(Ord. 3-11 § 2)
It is unlawful for any officer or employee of the city to obligate the city in any way for purchases by methods other than those prescribed in this chapter. Any purchases, orders, commitments or obligations to pay made contrary to the provisions of this chapter, or related administrative policies adopted pursuant to this chapter, shall be null and void.
(Ord. 3-11 § 2)
Purchases for supplies and equipment having an estimated value of ten thousand dollars or less may be made in the open market. Procedures governing the open market purchases of supplies and equipment shall be included in the administrative policies adopted pursuant to this chapter.
(Ord. 3-11 § 2)
Unless an open market purchase is allowed under Section 3.04.070 purchases of supplies and equipment shall be from the lowest responsible bidder whose bid has been solicited, received and approved pursuant to the following procedure:
A. 
Bidding Requirements—Exceptions. The bidding requirements set forth in this chapter do not apply in the following situations:
1. 
When, after advertising for bids as required in this chapter, no responsible bids were received;
2. 
When, upon a majority vote of the council, it is determined that it is in the best interests of the city to suspend competitive bidding;
3. 
When the desired supplies or equipment is produced and/or distributed by only one individual or organization;
4. 
When there is a public calamity, such as an extraordinary fire, flood, storm, epidemic or other disaster, or it is necessary for emergency work, the purchasing agent may declare the existence of such calamity or emergency and in the public interest and necessity demand the immediate expenditure of such money to safeguard life, health or property;
5. 
Where cooperative purchasing agreements permit purchases through legal contracts of other public agencies;
6. 
When purchasing from another public agency;
7. 
When maintaining, exchanging and/or upgrading components of existing equipment.
B. 
Invitation of Bids.
1. 
The notice inviting bids shall include the following statements:
a. 
A general description of the supplies or equipment to be purchased;
b. 
The location where bid forms and specifications may be secured;
c. 
The time and place for opening bids;
d. 
The type and character of the bidder's security required.
2. 
The notice inviting bids shall be published at least once in a newspaper of general circulation in the city; such notice to be published ten days or more prior to the date set for bid opening.
C. 
Security Required. Whenever, upon the call for bids for any purchase or contract, the purchasing agent or the city council deems it advisable, each bidder shall be required to submit with the bid as security, either in cash, by cashier's check or by certified check in favor of and payable at sight to the city of West Sacramento, or by surety bond, an amount determined to be sufficient, but not to exceed ten percent of the aggregate amount of the bid. If the bidder to whom the contract is awarded fails or neglects, for ten calendar days after receipt of such award, to enter into the contract or to timely deliver or provide the desired supplies or equipment, the bid security shall be forfeited and the purchasing agent shall draw the money due on such bid security and pay the same, or any cash deposited, into the city treasury. The bid security shall not be returned to the defaulting bidder in such case until the city council approves the return thereof in whole or in part. Unsuccessful bidders will receive their bid security within thirty days unless the city council deems it necessary to keep the bid security beyond the thirty days.
D. 
Opening and Public Record. Written bids shall be submitted to the city clerk in sealed envelopes. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be opened for public inspection during regular business hours for a period not less than thirty calendar days after the bid opening.
E. 
Rejection of Bids. The city council may reject any and all bids for any reason whatsoever. When all bids are rejected, the council may authorize any of the following:
1. 
Rewrite bids using the same or amended specifications;
2. 
Direct the purchasing agent to negotiate with bidders.
F. 
Award of Bid.
1. 
The award shall be given to the lowest responsible bidder except as otherwise provided in this section. In addition to price in determining the lowest responsible bidder, consideration shall be given to the quality of the supplies or equipment.
2. 
The purchasing agent may waive any informality or immaterial irregularity in any bid.
3. 
The bid of any bidder from within the city shall be computed by subtracting from his or her bid the amount of sales tax that would be received by the city for the project being bid.
4. 
If two or more bids received from responsible bidders are equal in price and quality, the purchasing agent may re-invite bids, choose one bid over the other, or negotiate with the bidders to receive a low bid.
(Ord. 3-11 § 2)
The procedure for bidding and awarding construction contracts on public projects shall be in accordance with Public Contract Code Section 20160 and following.
(Ord. 3-11 § 2)