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:
means a product, item or material described by reference
to its manufacturer's name or catalogue number.
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.
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.
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.
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.
(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 $25,000.
B.
Contracts
or purchase orders for supplies or services involving a cost in excess
of $25,000 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 $25,000 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)
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
$5,000 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)
A.
Purchases of supplies or services having a cost of $5,000 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 $5,000 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)
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;
(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)
