In order to establish efficient procedures for the purchase of supplies and services at the lowest possible cost commensurate with operational needs, to exercise positive financial control over such purchases, to clearly define authority for administration of the purchasing function, and to assure the quality of supplies and services purchased by the city, a purchasing system is adopted.
(Prior code § 2701; Ord. 202 § 1, 1999)
For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section, unless the context or the provision clearly requires otherwise:
"Brand name"
means a product, item or material described by reference to its manufacturer's name or catalogue number.
"Brand name or equal specification"
means a contract or purchase order specification containing a brand name to describe the nature, standard of quality, performance, and other characteristics needed to meet the city's requirements, and which provides for the submission of equivalent products.
"Cost,"
as applied to a single transaction for the purchase of supplies or services, means the total amount to be expended by the city, exclusive of sales or use taxes.
"Services"
means and includes labor, professional services and consulting services. Services shall not include incidental labor such as set-up, testing, and maintenance of supplies where the primary purpose is to purchase the supplies.
"Supplies"
means and includes all materials, supplies, equipment, products, and other items of tangible personal property.
(Prior code § 2702; Ord. 202 § 1, 1999)
The provisions of this chapter shall not apply to any of the following:
A. 
The award of contracts for public projects governed by the provisions of the State Public Contract Code or the provisions of the city's informal bidding ordinance, as contained in Chapter 2.60 of this code;
B. 
The award of contracts governed by any state or federal law which prescribes a different procedure;
C. 
The granting by the city of franchises, rights, privileges, licenses or permits;
D. 
The purchase of utilities, including, but not limited to, electricity, water, gas, or telephone service;
E. 
Employment contracts or collective bargaining agreements with any employees of the city;
F. 
The purchase of insurance, including coverage provided by any self insurance pool in which the city is a participant;
G. 
The extension or renewal of any existing contract for technical or professional services to be performed by consultants, unless the city council elects to award a new contract pursuant to this chapter;
H. 
Contracts for technical or professional services to be performed by consultants, where the cost thereof will be paid in advance by a person applying to the city for a permit, license or other approval;
I. 
Contracts for educational, recreational, travel, or entertainment services furnished by independent contractors or consultants, where the total cost thereof is paid by the persons utilizing the services;
J. 
Contracts for supplies or services to be furnished by any other public agency;
K. 
The purchase of supplies or services made in compliance with the terms and conditions of any grant, gift or bequest to the city that is otherwise consistent with law.
(Prior code § 2703; Ord. 202 § 1, 1999)
A. 
Except as otherwise provided by this chapter, all purchases of supplies and services shall be centralized under the purchasing officer.
B. 
The city manager is appointed as the purchasing officer for the city, and as such shall have authority to:
1. 
Procure or supervise the procurement of all supplies and services needed by the city, in accordance with the procedures prescribed in this chapter and any administrative rules and regulations as may be adopted by the purchasing officer pursuant hereto;
2. 
Exercise direct supervision over the city central stores and general supervision over all other inventories of supplies belonging to the city;
3. 
Establish or supervise the establishment of specifications for supplies and services required by the city;
4. 
Inspect or supervise the inspection of all supplies purchased by the city to insure quality, quantity and conformance with the specifications therefor;
5. 
Prepare and adopt administrative rules and regulations not in conflict with the provisions of this chapter for the purpose of implementing the purchasing system established hereunder;
6. 
Sell, trade or otherwise dispose of surplus supplies, in accordance with the provisions of this chapter.
C. 
The purchasing officer may authorize any department head to investigate, solicit bids, or negotiate the purchase or award of contracts for or services independently of the centralized purchasing system, provided that all such actions shall be done in conformity with the procedures prescribed by this chapter or by duly adopted administrative rules and regulations pertaining thereto.
D. 
The city council may, by resolution, delegate the authority of the purchasing officer as set forth in subsections B and C of this section to the subordinate of the city manager responsible for the financial management of the city.
(Prior code § 2704; Ord. 202 § 1, 1999)
Purchases of supplies or services having a cost of $5,000 or more shall be made only by purchase orders signed by the purchasing officer, or other city employees as may be designated by the purchasing officer to act on his or her behalf. Nothing herein shall preclude the use of authorized petty cash funds for purposes intended by their establishment.
(Prior code § 2705; Ord. 202 § 1, 1999; Ord. 300 § 1, 2006)
Except in case of an emergency, the purchasing officer shall not issue any purchase order for supplies or services unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. The appropriate account and funds shall be encumbered immediately after the issuance of the purchase order.
(Prior code § 2706; Ord. 202 § 1, 1999)
A. 
The purchasing officer is authorized to issue purchase orders and award contracts for supplies or services where the cost thereof does not exceed $60,000.
B. 
Contracts or purchase orders for supplies or services involving a cost in excess of $60,000 must be approved or awarded by the city council.
C. 
Notwithstanding subsections A and B of this section or any other provision of this chapter, the purchasing officer may purchase supplies or services having a cost in excess of $60,000 in the event of emergency requiring the immediate preservation of the public peace, health or safety, and precluding action by the city council. In such instances, the purchasing officer shall submit to the city council at its next succeeding meeting a written report describing the circumstances of the emergency, the supplies or services purchased, and the cost thereof.
(Prior code § 2707; Ord. 202 § 1, 1999; Ord. 300 § 2, 2006; Ord. 529, 11/24/2025)
A. 
Brand name or equal specifications may be used when the purchasing officer determines that:
1. 
No other design or performance specification or products list is available; or
2. 
Time does not permit the preparation of another form of purchase description which does not include a brand name specification; or
3. 
The nature of the product or the nature of the city's requirements makes use of a brand name or equal specification suitable for the procurement; or
4. 
Use of a brand name or equal specification is in the city's best interests.
B. 
Brand name or equal specifications shall state that substantially equivalent products to those designated will be considered for award.
C. 
Where a brand name or equal specification is used in a solicitation, the solicitation shall contain explanatory language that the use of a brand name is for the purpose of describing the standard of quality, performance and characteristics desired and is not intended to limit or restrict competition.
(Prior code § 2708; Ord. 202 § 1, 1999)
A. 
Purchases of supplies or services will be made on the basis of the bid or bids most advantageous to the city. In addition to price, the criteria for determining the most advantageous bid shall include, but not be limited to the following:
1. 
Compliance with the bid specifications;
2. 
The ability, capacity and skill of the bidder to perform the contract or provide the supplies or services required;
3. 
The ability of the bidder to perform the contract or provide the supplies or services promptly, or within the time specified, without delay or interference;
4. 
The character, integrity, reputation, judgment, experience, and efficiency of the bidder;
5. 
The quality of the bidder's performance on previous purchases or contracts with the city;
6. 
The previous and existing compliance by the bidder with the ordinances of the city;
7. 
The sufficiency of the bidder's financial resources to perform the contract or provide the supplies or services required;
8. 
The quality, availability and adaptability of the supplies or services to the particular use required;
9. 
The ability of the bidder to provide future maintenance, repair parts and services for the use of the supplies purchased;
10. 
The number and scope of conditions attached to the bid.
B. 
Where a formal competitive bidding procedure is required and the contract is not awarded to the bidder offering the lowest price, the purchasing officer shall prepare and place on file with the records of such contract a written statement of the reasons for the award. Such statement shall be open to public inspection.
(Prior code § 2709; Ord. 202 § 1, 1999)
A. 
The purchasing officer shall establish and maintain procedures and specifications for the purchase of paper and paper products which give preference, whenever feasible, to the purchase of recycled paper, and paper products containing recycled paper.
B. 
The purchasing officer shall purchase recycled paper and paper products, instead of unrecycled paper and paper products, whenever such recycled paper and paper products are available at no more than the total cost of unrecycled paper and paper products, and when fitness and quality are equal.
C. 
The purchasing officer may provide a preference to the suppliers of recycled paper or paper products equal to five percent of the lowest bid or price quoted by suppliers offering unrecycled paper or paper products.
D. 
The term "recycled paper," as used in this section, shall have the same meaning as defined in Section 10391 of the State Public Contract Code.
(Prior code § 2710; Ord. 202 § 1, 1999)
The purchase of supplies or services having a cost of less than $10,000 can be made without a purchase order by the purchasing officer or other employee of the city having authorization from the purchasing officer to do so. A petty cash fund can be used for such purchases.
(Prior code § 2711; Ord. 202 § 1, 1999; Ord. 300 § 3, 2006; Ord. 529, 11/24/2025)
A. 
Purchases of supplies or services having a cost of $10,000 or more but less than $25,000 may be made in the open market without formal competitive bidding procedures, if authorized by either the purchasing officer or the city council as provided in Section 2.56.070 of this chapter.
B. 
Open market purchases involving a cost of $10,000 or more shall, whenever possible, be based upon at least three informal price quotations and shall be awarded on the basis of the price quotation most advantageous to the city. The purchasing officer may solicit price quotations either orally or in writing, or may utilize price information on file with the city or available elsewhere.
(Prior code § 2712; Ord. 202 § 1, 1999; Ord. 300 § 4, 2006; Ord. 529, 11/24/2025)
A. 
Except as otherwise provided in subsection B of this section, all purchases of supplies or services involving a cost of $25,000 or more shall be made by contract awarded pursuant to the formal competitive bidding procedure set forth in Section 2.56.140 of this chapter.
B. 
A contract for the purchase of supplies or services involving a cost of $25,000 or more may be awarded by the city council without competitive bidding in each of the following cases:
1. 
Where the city council determines that the immediate preservation of the public peace, health or safety requires the purchase to be made without competitive bids;
2. 
Where the supply or service required by the city can only be obtained from a single source;
3. 
Where the contract is for specialized or professional services such as, but not limited to, services rendered by architects, engineers, attorneys, appraisers, geologists, and other specialized consultants;
4. 
Where the city council determines that use of the competitive bidding process is impracticable or impossible, or would not be likely to result in a lower price to the city from a responsible bidder, or would cause unnecessary expense or delay under the circumstances;
5. 
Where the city council utilizes the request for proposal method of purchase, as set forth in Section 2.56.150 of this chapter.
(Prior code § 2713; Ord. 202 § 1, 1999; Ord. 300 § 5, 2006)
Where formal competitive bidding is required, the following procedure shall be followed:
A. 
Notice Inviting Bids. Notices inviting bids shall include a general description of the supplies or services to be purchased, the place where bid forms and specifications can be obtained, the time and place for opening bids, whether a bid deposit or bond will be required, and whether a performance bond will be required. The notice shall be published at least once, not less than 10 days prior to the date set for final receipt of bids, in a newspaper having general circulation in the city, and shall be posted at the City Hall location used for the posting of legal notices. Notices shall also be sent to persons who have submitted a written request to the city to be notified of such bidding opportunities, and notices may be sent at the discretion of the purchasing officer to any additional persons.
B. 
Bidder's Security. When deemed necessary by the purchasing officer, bids shall be accompanied by a bidder's security in the form of a cashier's check, certificate of deposit, money order, or unconditional an irrevocable letter of credit, payable at sight to the city, or a surety bond in favor of the city, in such amounts as determined by the purchasing officer to be adequate for protection of the city's interests. Bidders shall be entitled to return of their bid security. A successful bidder shall forfeit his or her bid security upon failure or refusal to execute a contract within 10 days after mailing the notice of the award, unless the city is responsible for the delay. The city council may, on failure or refusal of the successful bidder to execute the contract, award it to the next lowest responsible bidder, in which event, the lowest bidder's security shall be applied by the city first to the difference between the low bid and the second lowest bid, then toward payment of any other costs, expenses or damages incurred by the city as a result of such failure or refusal, and the balance of the security, 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 bids on the envelope. Bids received after the deadline for submitting the same shall not be accepted and shall be returned to the bidder unopened. The bids shall be opened in public at the time and place stated in the public notice. All opened bids shall be available for public inspection during regular business hours from the time of bid opening until the contract has been awarded by the city council.
D. 
Rejection of Bids. If, in the opinion of the city council, none of the bids is satisfactory, the council may reject all bids and either purchase the supplies or services in the open market or readvertise for new bids.
E. 
Award of Contract. Except as otherwise provided herein, a contract shall be awarded to the lowest responsible bidder, taking into consideration the criteria listed in Section 2.56.090 of this chapter.
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 a delay for readvertisement would not be in the public interest, the city council may accept the bid it chooses or it may accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.
G. 
Performance Bond. The city council may require that a performance bond be furnished before entering into a contract with a successful bidder. The performance bond shall be in a form satisfactory to the city attorney. The performance bond amount will be satisfactory to the purchasing officer and in compliance with the contract specifications.
H. 
Waive Irregularities. The city council may waive any minor irregularities in the bids, based upon a determination that the same have no material impact upon the bidding process or other bids submitted.
I. 
No Bids. If no bids are received in response to the notice inviting bids, the city council may proceed to purchase the supplies or services without further competitive bidding.
(Prior code § 2714; Ord. 202 § 1, 1999)
A. 
The city council may utilize the request for proposal method of purchasing supplies or services upon a determination that competitive bidding is not practical or advantageous to the city because:
1. 
Quality, capability, performance or qualification is overriding in relation to price;
2. 
Delivery, installation, service, maintenance, reliability or replacement is overriding in relation to price; or
3. 
In the opinion of the city council, the marketplace will respond better to a solicitation permitting a range of alternative proposals or evaluation and discussion of proposals before entering the contract.
B. 
Proposals shall be solicited in such manner as directed or approved by the city council. The identity of persons responding to the request for proposals and the content of proposals submitted to the city may be kept confidential during the process of negotiation and until a contract is awarded.
C. 
The request for proposals shall state evaluation factors. Discussions may be conducted with responsible offerors and revisions to proposals, based upon such discussions, may be accepted.
D. 
The contract award shall be based upon the proposal determined by the city council to be most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals.
E. 
The city council may reject any and all proposals if such rejection is deemed to be in the best interests of the city. The council may thereupon direct that proposals be solicited or utilize any other purchasing method set forth in this chapter.
(Prior code § 2715; Ord. 202 § 1, 1999)
The purchasing officer shall inspect, or cause to be inspected, all deliveries of supplies or services to determine their conformance to specifications set forth in the purchase order or contract. The purchasing officer shall have the authority to require any tests necessary to determine quality and conformance with specifications.
(Prior code § 2716; Ord. 202 § 1, 1999)
Notwithstanding any other provision of this chapter, the purchasing officer may issue a joint purchase order together with any other city, county, or public agency in the state for the purchase of supplies or services. The specifications for such supplies or services shall have been approved by the purchasing officer if the cost thereof is less than $25,000, or by the city council if the cost thereof is $25,000 or more. At least one of the other agencies shall have solicited or advertised for bids in a manner similar to the applicable procedures set forth in this chapter.
(Prior code § 2717; Ord. 202 § 1, 1999; Ord. 300 § 6, 2006)
The purchasing officer shall have authority to dispose of personal property of the city which cannot be used by any department or has become obsolete or worn out. The disposition may be accomplished by negotiated sale, public auction, exchange or trade-in for other supplies or, upon a determination by the purchasing officer that the property has no commercial value, by abandonment, destruction or donation to a public body or a nonprofit charitable or civic organization. The disposition of any property having a value of $500 or more shall first be authorized by the city council. All surplus property shall be sold or donated on an "as-is" basis. Sale of surplus property shall first be offered for purchase to city employees and residents of Malibu. Property offered for sale to the general public shall be done through a bid process. If no bids are received, other methods of disposal as determined by the purchasing officer shall be employed.
(Prior code § 2718; Ord. 202 § 1, 1999)