In order to establish efficient procedures for the purchase
of supplies, services and equipment, to secure for the city supplies,
services and equipment at the lowest possible cost commensurate with
quality needed, to exercise positive financial control over purchases,
to clearly define authority for the purchasing function, and to assure
the quality of purchases, a purchasing system is adopted, in accordance
with Section 54202 of the Government Code.
(Prior code § 2700)
In accordance with the provisions of Sections 54201 through 54204 of the Government Code, the policies and procedures contained in this chapter, as well as the policies and procedures adopted by subsequent rules and resolutions, have been adopted. The authority for the purchase of supplies and equipment is vested in a purchasing officer, and the procedures and policies contained in this chapter, as well as in supplemental rules and resolutions, shall hereafter be followed in respect to the purchase of supplies and equipment, unless the provisions of Section 3.20.030 of this chapter should apply.
(Prior code § 2701)
The acquisition of vehicles, which
has been deemed necessary by the public works director and city manager
through methods such as cooperative agreements, piggyback contracts,
or sole source procurement, shall not require the city council's approval
prior to the purchase. However, if the purchase amount exceeds the
city manager's approval threshold, it must be reported at the next
city council meeting for ratification.
(Ord. 1183, 3/26/2024)
The provisions of this chapter shall
not apply in respect to the purchase of supplies, services, and equipment
in the following circumstances:
A.
Emergency. As defined in CPCC Section 22035,
in case of emergency when repair or replacements are necessary, the
city may proceed at once to replace or repair any public facility
without adopting plans, specifications, strain sheets, or working
details, or giving notice for bids to let contracts. The work may
be done by day labor under the direction of the city, by contractor,
or by a combination of the two. The day labor includes the use of
maintenance personnel employed on a permanent or temporary basis.
The procurement must be reported to council at the next council meeting
for ratification if the amount has been subject to approval of the
city council.
B.
Sole Source Purchasing. The city may dispense with the bidding requirements if it finds that the supplies, services, or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one source, or, if available from more than one source, can be purchased from the manufacturer or service provider for a lower price. The sole source form has to be reviewed and signed off by the appropriate authority outlined in Section 3.20.210.
C.
Contracts with other government agencies
for supplies, services, and equipment.
D.
Cooperative or Piggyback Purchasing.
1.
Where the city council, by contract or
resolution, or both, transfers the authority to make the purchase
of supplies, services, and equipment, whether blanket authority or
single purchases, to another governmental agency, or officer thereof,
pursuant to lawful authority, and where such other governmental agency
or officer, in the purchase of supplies and equipment, follows to
the satisfaction of the purchasing officer policies and procedures
in compliance with the provisions of Sections 54201 through 54204
of the Government Code. In the event of the transfer of blanket authority
in respect to such purchase of supplies or equipment pursuant to this
section, the purchasing officer, as defined in this chapter, shall
remain the purchasing officer of the city, and the other office or
agency performing the services shall be designated the purchasing
agent. In such an event, the purchasing officer of the city may authorize
purchases through said purchasing agent in accordance with the authority
vested in him or her by the city council;
2.
The purchase of equipment, services and
supplies through the Department of General Services pursuant to Section
10324 of the Public Contracts Code;
3.
The purchase is made by, through, or in
concert with another public agency provided the other public agency
makes such purchase in accordance with the state laws or local rules
and regulations governing such purchase for the other public agency.
Procurement of personal and professional
services under sixty thousand dollars.
(Prior code § 2702; Ord. 938 § 1, 1999; Ord.
1151 § 2, 2021; Ord. 1179, 12/12/2023; Ord. 1183, 3/26/2024)
The city manager, or designated deputy, shall serve as the purchasing
officer. He or she shall have authority to:
A.
Purchase
or contract for supplies, services and equipment required by any department
in accordance with purchasing procedures prescribed by this chapter,
such administrative regulations as the purchasing officer shall adopt,
and such other rules and regulations as shall be prescribed by the
city council;
B.
Negotiate
and recommend execution of contracts for the purchase of supplies,
services and equipment;
C.
Act
to procure for the city the needed quality in supplies, services and
equipment 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 purchasing of
supplies, services and equipment 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, services 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 have become unsuitable for city use;
K.
Maintain
a bidders' list, vendors catalogue file, and records needed for the
efficient operation of the purchasing department.
(Prior code § 2703; Ord. 1151 § 2, 2021)
A.
Federal
and/or State Grants. In addition to the provisions of this chapter,
the procurement of all contracts for supplies, services, and equipment
that are funded in whole or in part with federal and/or grant funds
shall be subject to applicable grant requirements, such as the 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.The city has
to ensure that all granting agency requirements, including the solicitation
threshold amounts, are met.
B.
Public Projects. As defined in CPCC Section 22002, a public project includes, but may not be limited to, construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operating facility. A public project does not include maintenance work. The city shall procure for a public project by following the requirements and bidding thresholds set forth by the California Uniform Public Construction Cost Accounting Act (UPCCAA), which adjusts the requirements and limits periodically for efficiency and inflation. The city's Municipal Code Chapter 3.48 provides more specific guidelines for public project procurement.
(Ord. 1151 § 2, 2021)
All departments shall file detailed estimates of their requirements
in supplies, services and equipment in such manner, at such time,
and for such future periods as the purchasing officer shall prescribe.
(Prior code § 2704; Ord. 1151 § 2, 2021)
Departments shall submit requests for supplies, services and
equipment to the purchasing officer by standard requisition forms.
(Prior code § 2704.1; Ord. 1151 § 2, 2021)
Purchase of supplies, services and equipment shall be made only by purchase order, except as provided by resolution of the city council or as exempted by Section 3.20.210.
(Prior code § 2706; Ord. 937 § 1, 1999; Ord.
1151 § 2, 2021)
The city manager has the authority
to approve cumulative change orders, up to ten percent of the original
contract value. If the total change order is over ten percent of the
original contract value city council approval will be required.
(Ord. 1183, 3/26/2024)
B.
Bidding
shall be dispensed only when an emergency requires that an order be
placed with the nearest available source of supply when the amount
involved is less than ten thousand dollars, or when the commodity
can be obtained from only one vendor. Purchases shall not be divided
or split in order to circumvent formal bidding requirements.
(Prior code § 2705; Ord. 784 § 1, 1990; Ord.
1151 § 2, 2021; Ord. 1183, 3/26/2024)
Except in cases of emergency, the purchasing officer shall not
issue any purchase order for supplies, services and equipment unless
there exists an unencumbered appropriation in the fund account against
which such purchase is to be charged.
(Prior code § 2707)
A.
Authorized when purchases of supplies and equipment of an estimated value of forty thousand dollars or less may be made by the purchasing officer in the open market without observing the procedure prescribed by Sections 3.20.110 through 3.20.190. Purchases of supplies and equipment of an estimated value between the amounts of ten thousand dollars and forty thousand dollars shall also require the approval of the Director of Finance.
B.
Minimum
Number of Bids. Open-market purchase shall, wherever possible, be
based on at least three bids, and shall be awarded to the lowest responsible
bidder.
C.
Notice
Inviting Bids. The purchasing officer shall solicit bids by written
requests to prospective vendors, by telephone, by public notice posted
on a public bulletin board in the City Hall or on an electronic procurement
platform (such as Planet Bids), approved by the city, or by other
suitable means.
D.
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 or
made available on the city's approved electronic procurement platform.
(Prior code § 2708; Ord. 784 § 2, 1990; Ord.
1035 § 2, 2007; Ord. 1076 § 7, 2013; Ord. 1151 § 2, 2021; Ord. 1159 § 2, 2022; Ord.
1183, 3/26/2024)
A.
Except for the provisions of Section 3.20.210, the City may award purchase orders and contracts sixty thousand dollars for personal or professional services without complying with the provisions of this chapter; provided that the award shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the service required and shall be subject to the provisions of Government Code Section 4526, when applicable.
B.
For
purposes of this section, personal services shall include:
1.
Any
communication, gas, water, electric light and power service or similar
utility service;
2.
Insurance,
postage, freight and courier service;
3.
Travel/hotel
accommodations, education and training expense;
4.
Subscriptions
and memberships;
5.
Rental
of real property or equipment and other personal property; and
6.
Such
other services as the city council may, by resolution, specifically
direct.
C.
For
purposes of this section, professional services shall include:
1.
Services
of engineers, architects, accountants, attorneys, doctors, appraisers
and similar professionals when the city is contracting for the skill,
integrity, judgment and/or special technical ability of the professional.
2.
Such
other services as the city council may, by resolution, specifically
direct.
D.
For
purposes of this section, other services are defined as general services,
which are services of a general nature (as opposed to personal and
professional services). A general service includes but is not limited
to the following:
(Ord. 784 § 5, 1990; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024)
Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than forty thousand dollars shall be by written contract with the lowest responsible bidder, pursuant to the procedure prescribed in Sections 3.20.120 through 3.20.190 of this chapter.
(Prior code § 2709; Ord. 784 § 3, 1990; Ord.
1035 § 3, 2007; Ord. 1076 § 8, 2013; Ord. 1151 § 2, 2021; Ord.
1183, 3/26/2024
A.
Contents
of Notices. 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.
B.
Published
Notices. Notices inviting bids shall be given at least ten days before
the date of opening of the bids. Notice shall be published at least
once in a newspaper of general circulation, printed and published
in the city, or if there is none, it shall be posted in at least three
public places in the city that have been designated by ordinance as
the places for posting public notices or the city's approved electronic
procurement platform.
C.
Bidders'
List. The purchasing officer shall also solicit sealed bids from all
responsible prospective suppliers whose names are on the bidders'
list, or who have requested their names be added thereto.
D.
Bulletin
Board. The purchasing officer shall also advertise pending purchases
or sales by a notice posted on a public bulletin board in the City
Hall or the city's approved electronic procurement platform.
(Prior code § 2709(a); Ord. 1159 § 2, 2022)
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, that a successful
bidder shall forfeit his or her bid security upon 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 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,
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.
(Prior code § 2709(b))
Sealed bids shall be submitted to the purchasing officer and
shall be identified as bids on the envelope, or submitted on the city's
approved electronic procurement platform if required by the notice
inviting bids. Bids shall be opened in public at the time and place
stated in the public notices. A tabulation of all bids received shall
be open for public inspection during regular business hours or on
the city's approved electronic procurement platform for a period of
not less than thirty calendar days after the bid opening.
(Prior code § 2709(c); Ord. 755 § 2, 2022)
In its discretion, the city council may reject any and all bids
presented and readvertise for bids.
(Prior code § 2709(d))
Contracts shall be awarded by the city council to the lowest
responsible bidder, except as otherwise provided in this chapter.
(Prior code § 2709(e))
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 accept the one it chooses, or accept the lowest bid made by negotiation
with the tie bidders at the time of bid opening.
(Prior code § 2709(f))
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 interests 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.
(Prior code § 2709(g))
The purchasing officer shall inspect supplies and equipment
delivered, and contractual services performed, to determine their
conformance with the specifications set forth in the order of the
contract. The purchasing officer 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.
(Prior code § 2710)
All department heads shall submit to the purchasing officer, at such times and in such forms as they 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 the authority to sell all personal property desired to be sold by the city, supplies, 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 and equipment. Sales not exceeding sixty thousand dollars shall be made pursuant to Section 3.20.100 and sales of more than sixty thousand dollars shall require approval of the city council and be made pursuant to Section 3.20.110, except sales shall be made to the highest responsible bidder or by public auction to the highest bidder. Notice of any public auction pursuant to this section shall be published in a newspaper of general circulation and posted on the city's website at least 10 days prior to the date of the auction. The auction may be conducted by professional auctioneers who are compensated out of the proceeds of the sale, or by a flat or hourly fee. Records of all bids and payments conducted by professional auctioneers shall be provided to the city. The city council may also elect to have the surplus supplies and equipment donated to a nonprofit organization or other tax-exempt organization pursuant to Internal Revenue Code Section 510(c)(3) in lieu of sale.
(Prior code § 2711; Ord. 784 § 4, 1990; Ord.
1076 § 9, 2013; Ord. 1183, 3/26/2024)
If no exemptions or special federal
and/or state requirements are applicable, the city has the following
procurement thresholds, which may be adjusted periodically for inflation:
A.
The small purchase threshold is set at
ten thousand dollars. For purchases less than this amount, no purchase
order is required. The department heads or their designees may approve
the purchases.
B.
An informal competitive procurement is
for a purchase between ten thousand and forty thousand dollars. Either
three informal quotes or a sole source form is required. The finance
director and city manager may approve the sole source form, purchase
orders, and/or contracts in this category.
C.
A formal competitive procurement is for
a purchase above forty thousand dollars. A formal competitive process
or a sole source form is required.
1.
The city manager is authorized to approve and execute, on behalf of the city, any contract in an amount not exceeding sixty thousand dollars, including the contracts for the services described in Section 3.20.105(B) and (C).
2.
The city council shall approve any contracts above sixty thousand dollars, including the procurement for personal and professional services described in Section 3.20.105(B) and (C). Contracts described in Section 3.20.105(C) shall be subject to the provisions of Section 3.20.105(A).
(Ord. 784 § 6, 1990; Ord. 1025 § 1, 2006; Ord. 1035 § 1, 2007; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024; Ord. 1183, 3/26/2024)
