Note: Prior ordinance history: Prior code §§ 5-1—5-13; Ordinance Nos. 1028, 770, 581, 552 and 289.
The purpose of this chapter is to establish efficient policies and procedures for the purchase of goods, services, and equipment, to clearly define authority for city purchases, and to assure the quality of purchases.
(Ord. 1270 § 2, 2019)
As used in this chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended:
"Bidder's list"
means a list of responsible prospective vendors capable of providing the services or items being bid upon.
"Cooperative or piggyback purchasing"
means a cooperative competitive bidding procedure or a "piggyback" contract prepared by and processed through another local, state, or federal governmental agency or a cooperative purchasing entity set up by or utilized by such governments or public agencies, and where the piggyback contract has gone through the competitive bidding process of that entity.
"Emergency"
for purposes of public projects has the meaning provided in California Public Contract Code Sections 22035 and 22050.
"Equipment"
means furnishings, machinery, vehicles, rolling stock, and other personal property used by the city in its operations.
"Goods", also referred to as "supplies",
means office supplies, janitorial supplies, materials, tools, or other commodities used in the general conduct of the city's business, excepting supplies or materials for a public work which is regulated under the California Public Contract Code Section 20160, et seq.
"Maintenance work"
has that meaning provided in Section 22002D. of the Public Contract Code, as that section may be amended from time to time, and shall include, but is not limited to, all of the following:
1. 
Routine, recurring, and usual work for the cleaning, preservation, or protection of any publicly owned or publicly operated facility for its intended purposes.
2. 
Minor repainting.
3. 
Resurfacing of streets and highways at less than one inch.
4. 
Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.
"Piggyback"
means use of another public agency's existing contracting and/or bidding procedures to purchase the same product(s) as outlined in the awarding bid document.
"Professional services"
means any work performed by an artist, attorney, doctor, architect, engineer, environmental consultant, land surveyor, construction manager, appraiser, expert, accounting firm, consultant or those services such as computer services, and transportation/transit operator services.
"Public works"
has the meaning provided in Section 22002C. of the Public Contract Code, as that section may be amended from time to time, and shall not include maintenance work. Public works shall include, but shall not be limited to, all of the following:
1. 
Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.
2. 
Painting or repainting of any publicly owned, leased, or operated facility.
"Purchase"
means and shall include renting, leasing, licensing, or a trade of equipment or supplies.
"Purchase order"
means the city's written documentation provided to a vendor formalizing the terms and conditions associated with the ordering of the goods, services, or public project required by the city.
"Purchasing officer"
means the city manager or designee.
"Services"
means any and all services, with the exception of professional services as defined above, including, but not limited to, equipment service contracts.
"Splitting"
means dividing a purchase or contract into two or more parts in order to avoid the provisions of this chapter requiring work to be done by contract after competitive bidding.
"Sole source"
means a non-competitive procurement decision whereby acceptable justification exists to support public works or non-public works related purchases provided by one particular supplier or contractor.
"Surplus personal property"
means any personal property that is no longer needed or useable by the city.
(Ord. 1270 § 2, 2019)
The purchase of supplies, services, personal property, equipment and professional services are the responsibility of the individual departments making such purchases. It is the responsibility of the purchasing officer described in Section 3.28.040 to ensure the adherence to the provisions prescribed in this chapter.
(Ord. 1270 § 2, 2019)
The purchasing officer or designee shall have the authority to:
A. 
Purchase or contract for needed city supplies, services, and equipment;
B. 
Investigate, keep knowledgeable about, negotiate, and recommend on the execution of contracts or the purchasing of supplies, services, and equipment pursuant to the procedures of this chapter, and such administrative rules and regulations as promulgated by the city;
C. 
Prescribe and maintain such forms as necessary for the proper operation of this purchasing system;
D. 
Assist with the supervision and inspection of all supplies, general services, and equipment purchased under this chapter to assure conformance with city specifications;
E. 
Supervise the transfer of surplus and unused supplies and equipment for sale or disposal of such;
F. 
Maintain up-to-date bidder's list, vendors' catalogs, files, and such other records as needed to perform these duties;
G. 
Ensure that purchasing specifications are written to encourage full competition;
H. 
Perform such other tasks as may be necessary for the proper conduct of purchasing of supplies, services, and equipment.
(Ord. 1270 § 2, 2019)
The city council hereby authorizes the city manager to establish and maintain written administrative policies and procedures and standards consistent with the requirements of this chapter.
(Ord. 1270 § 2, 2019)
In accordance with Government Code Section 40602, the following officers are authorized to sign agreements pursuant to this chapter on the city's behalf:
A. 
The mayor;
B. 
The city manager or assistant city manager for agreements up to and including fifty thousand dollars;
C. 
Department directors for agreements up to and including twenty thousand dollars;
D. 
Other staff identified by the city manager authorized to approve agreements up to and including ten thousand dollars.
(Ord. 1270 § 2, 2019)
Pursuant to the authority granted by Public Contract Code Sections 1600 and 1601, the city shall be authorized to utilize electronic means in the procurement and administration of contracts, in accordance with all applicable laws, rules and regulations. Without limiting the nature of the foregoing, the city may utilize online bidding and selling methods, electronic signature in accordance with applicable state, local and federal law, and electronic mail for delivery of notices when "mailed" notice is required herein. Whenever "sealed" bids or proposals are called for, any electronic means may be used so long as such electronic means provide for the secured submission of the required data. Whenever bids are required to be "opened", such bids shall be deemed "opened" if and when they are made available to both the city and the public simultaneously, in a public setting, including, without limitation, by way of making such bids available in an electronic format that is readable by the public.
(Ord. 1270 § 2, 2019)
Purchase orders are required when:
A. 
A single item or aggregate purchase with an estimated value of one thousand dollars or greater.
B. 
Multiple purchases with a single vendor are expected to exceed two thousand five hundred dollars or greater within a fiscal year.
(Ord. 1270 § 2, 2019)
The following provisions apply in determining the purchasing authority thresholds identified in Sections 3.28.100 and 3.28.110.
A. 
Cumulative Amounts. The amount of multiple purchases or contracts from the same vendor shall be aggregated on a department basis for each fiscal year.
B. 
The splitting of purchases to circumvent the purchasing authority thresholds shall be prohibited.
C. 
Multi-Year Contracts. The total not to exceed amount for the entire term of a multi-year contract shall be used to determine the purchase amount and purchasing authority.
(Ord. 1270 § 2, 2019)
For purchases of supplies, services, professional services, personal property and equipment in an amount less than fifty thousand dollars, the purchasing officer shall use the following procedures:
A. 
For purchases having an estimated value of two thousand five hundred dollars or less, informal quotes may be obtained from vendors, but are not required.
B. 
For purchases having an estimated value of more than two thousand five hundred dollars, but less than fifty thousand dollars, firm quotes either received in writing or taken verbally but confirmed in writing, shall be obtained.
C. 
If two or more bids received are for the same total amount or unit price, quality and service being equal, the purchasing officer may accept either bid, or accept the lowest bid offered following negotiations with the tie bidders.
(Ord. 1270 § 2, 2019)
Purchases of supplies, services, professional services, personal property and equipment with an estimated value of fifty thousand dollars or more shall be made as follows:
A. 
Purchases of fifty thousand dollars or more require city council approval.
B. 
A "notice inviting bids" shall be prepared and shall include a general description of the goods or services to be purchased or sold, where bid instructions and specifications may be obtained, the time and place for bid openings, and whether a bid deposit or bond, or other security, such as performance, payment or maintenance bonds, will be required.
C. 
The city shall publish the notice inviting bids to potential qualified vendors.
D. 
When required by law or deemed appropriate by the purchasing officer, and if included in bid instructions, bidders shall submit a bid deposit or bond in an amount determined by the purchasing officer. Bidders shall be entitled to return of bid security, except that a successful (and a successful bidder's surety, if a bid bond is required) shall be liable for any damages suffered or incurred by the city upon refusal or failure to execute a contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay.
E. 
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 bidder following a forfeit of the bid security by the lowest bidder, the amount of the lowest bidder's bid security shall be applied by the city to the difference between the low bid and the second lowest bid; the surplus, if any, shall then be returned to the lowest bidder.
F. 
When deemed appropriate by the purchasing officer or designee, and if included in bid instructions, any person or entity entering into a contract with the city shall furnish a faithful performance deposit or bond in an amount determined by the purchasing officer.
G. 
Sealed bids shall be submitted to the purchasing officer or designee and shall be identified as bids 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 available for public inspection in accordance with the California Public Records Act.
H. 
Award of Contracts/Minor Irregularities. Contracts may be awarded by the city council to the lowest responsive and responsible bidder whose bid fulfills the purpose intended. The city council may waive any bid defect or irregularity.
I. 
Tie Bids. If two or more bids received are for the same total amount or unit price, the city council may accept either bid, or accept the lowest bid offered following negotiations with the tie bidders.
J. 
Performance/Labor/Materials Bonds. A labor and materials bond, plus a performance bond may be required, from an acceptable surety, in such amounts and in such a form as the purchasing officer finds reasonably necessary to protect the public interest.
(Ord. 1270 § 2, 2019)
Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements of this chapter may be dispensed with in any of the following instances:
A. 
Under Two Thousand Five Hundred Dollars. When the estimated amount involved is two thousand five hundred dollars or less.
B. 
Sole Source. When the commodities or services are unique and can only be obtained from one vendor.
C. 
Interagency Purchases. The contracting of materials, supplies, equipment or services from other governmental agencies.
D. 
Emergency Purchase. The city manager may authorize the purchase of materials, supplies, and equipment when an emergency is deemed to exist and it is determined that service involving the public health, safety, or welfare would be interrupted if the normal procedure were followed. A declaration of emergency as set forth in this code is conclusive evidence of such an event. All emergency purchases which would otherwise require formal bidding procedures made pursuant to this section shall be submitted to the city council for ratification at the next regular city council meeting after the purchase is authorized for which legally required meeting notice can be provided.
E. 
Cooperative or Piggyback Purchasing. When the purchasing officer identifies a cooperative competitive bidding procedure or a "piggyback" contract prepared by and processed through another local, state, or federal governmental agency or a cooperative purchasing entity set up by or utilized by such governments or public agencies, and where the piggyback contract has gone through the competitive bidding process of that entity.
F. 
Professional Services. Agreements for professional may be executed without observing the bidding procedures provided in this chapter if the city manager determines that an informal or formal competitive process is unnecessary because a professional services provider is the best provider for a particular agreement based on some or all of these factors: demonstrated competence; qualifications for the types of services to be performed; experience; knowledge of the city due to a long-standing relationship; reasonableness of cost to perform work; or other similar relevant criteria.
(Ord. 1270 § 2, 2019)
The city council may, for any reason, reject all bids, and at its discretion, abandon acquisition or rebid.
(Ord. 1270 § 2, 2019)
A. 
The city manager or assistant city manager may authorize change orders up to the amount of budgeted contingency authorized by city council for an approved public project or the city manager may authorize change orders that do not exceed fifty thousand dollars.
B. 
The director of the supervising department may authorize change orders that do not exceed twenty thousand dollars.
C. 
Other staff identified by the city manager authorized to approve change orders that do not exceed ten thousand dollars.
(Ord. 1270 § 2, 2019)
A. 
Each department shall periodically review its equipment and inventory and complete a disposal form for items deemed disposable or that have become obsolete or worn out. The completed list shall be submitted to the purchasing manager or designee. Upon approval, a copy of the list shall also be given to the finance division in order to remove any items on the fixed asset inventory list.
B. 
Disposition. The purchasing officer or designee is hereby authorized to dispose of surplus goods which are not used or needed or which have become unsuitable for city use. Such goods may be disposed of by any of the following procedures:
1. 
Exchanged or traded in on new goods;
2. 
Sold utilizing competitive procedures similar to those prescribed herein for open market procurement per Section 3.28.040;
3. 
Sold at public auction conducted by a professional auctioneer;
4. 
Sold utilizing a negotiation process when the purchasing officer deems that such process is in the best interests of the city;
5. 
Disposed of as scrap material or destroyed if no resale value exists; or
6. 
Donated to a non-profit organization or other public entity following a city council determination that such donation serves a public purpose.
(Ord. 1270 § 2, 2019)
A. 
In addition to the provisions of this chapter, the procurement of all contracts for goods, services, and equipment that are funded in whole or in part with federal grant funds shall be subject to applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of Management and Budget, 2 U.S. Code of Federal Regulations Part 200.
B. 
All violations of federal or criminal law involving fraud, bribery or gratuity violations potentially affecting the federal award must be disclosed in writing to the federal or pass-through entity in a timely manner prior to awarding the contract.
C. 
The non–federal entity (city of San Dimas) must take all necessary affirmative steps to assure that minority businesses, women's business enterprises and labor surplus firms are used when possible. Affirmative steps include:
1. 
Placing qualified small and minority businesses and women's business enterprises on solicitation lists;
2. 
Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
3. 
Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
4. 
Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
5. 
Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
6. 
Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed above.
D. 
Conflicts of Interest Involving Federal Funds. No city employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the non-federal entity may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.
(Ord. 1270 § 2, 2019)