In order to establish efficient procedures for the purchase
of supplies, equipment and services; secure supplies, equipment and
services at competitive cost commensurate with quality and quantity
needed; exercise positive financial control over purchases; clearly
define accountability and authority for the purchasing functions;
and ensure against favoritism in awarding purchasing contracts; the
purchasing system set forth in this chapter shall govern the procedure
for all purchases except as otherwise required by law.
For the purpose of this chapter, the definition of "purchasing
authority" means the person(s) responsible for the procurement of
supplies, equipment and services, in accordance with the provisions
of this chapter.
As defined in Section
2.24.070 of this Code, authority and responsibility for the purchase of supplies, equipment, and services is vested in the City Manager. The City Manager may designate a person or persons in writing to serve as purchasing authority and delegate to such person(s) the duties and responsibilities imposed by this chapter. Purchasing authorization thresholds shall be established by Council resolution.
The City Manager shall approve policies and procedures that
are appropriate and necessary to implement the provisions of this
chapter. The policies and procedures shall be written in such a way
to: (1) encourage open and competitive bidding; (2) provide equal
opportunity based on merit; (3) ensure against favoritism in awarding
purchasing contracts; (4) provide for efficient and timely acquisition
of supplies, equipment, and services; and (5) provide effective fiscal
controls.
Except where expressly exempted, all purchases and contracts
governed by this chapter shall be by competitive bid. Purchases exempted
from competitive bidding requirements set forth in this chapter include:
A. Professional
and consultant services.
B. Information
technology purchases and contracts.
C. Emergency
purchases and contracts.
D. Cooperative
purchases and contracts.
E. Sole
source purchases and contracts.
F. Over-the-counter
purchases and contracts.
G. Certain
purchases and contracts as determined by the City Manager where the
competitive bid process is impracticable.
The competitive bidding provisions of this chapter shall not
apply to contracts involving the acquisition of professional or specialized
consultant services. Selection for such service shall be on the basis
of demonstrated competence, the professional qualifications necessary
for the satisfactory performance of the professional services required
and a fair and reasonable price proposal.
The acquisition of professional services for architecture, landscape
architecture, engineering, environmental services, land surveying,
or construction project management is governed by California Government
Code Sections 4525 through 4529.
The competitive bidding provisions of this chapter shall not
apply to purchases and contracts involving the acquisition of information
technology. Selection shall be on the basis of requirements and specific
evaluation criteria which result in the best value to the City.
In the event of an emergency as determined by the City Manager
which requires immediate action to ensure public health, safety, welfare
and continuity of operations, the City Manager may cause the purchase
of necessary supplies, equipment and services without competitive
bidding for the purpose of responding to the emergency with unencumbered
money, irrespective of whether the money has been appropriated for
such purpose.
A full report of the circumstances of any such emergency purchase
shall be presented to the City Council at the next available regularly
scheduled City Council meeting.
(Ord. 2017-07)
The purchasing authority shall have the ability to join with
other public or quasi-public agencies in cooperative purchasing plans
or programs for the purchase of goods and/or services by contract,
arrangement or agreement pursuant to law and as determined by the
purchasing authority to be in the City's best interest. The purchasing
authority may buy directly from a vendor at a price established by
another public agency when the other agency has made their purchase
in a competitive manner.
If the City Manager determines that there is only one reasonably
known capable supplier due to the unique nature of the requirements
for the desired supplies, equipment or services, the City Manager
may waive the competitive bidding requirements.
The price threshold and award authority for over-the-counter
purchases and contracts shall be set by Council resolution. Comparative
pricing is not required but shall be used whenever practical.
The price threshold and award authority for over-the-counter purchases and contracts shall be set by Council resolution. Open market purchases may be made without observing the formal contract procedures set forth in Section
7.18.110 of this chapter.
The purchasing authority shall solicit at least three written
quotes from at least three prospective vendors.
A. Purchases
and contracts of supplies, equipment and services having an estimated
value equal to or greater than the price threshold specified by Council
resolution for formal bid procedures shall be made by the purchasing
authority in accordance with the procedures set forth in this chapter
and any policies or procedures approved by the City Manager for the
purpose of implementing this chapter.
B. The
purchasing authority shall develop specifications for the desired
supplies, equipment or services.
C. The
purchasing authority shall issue a notice inviting bids which shall
include, but is not limited to, the following:
1. The
requirement that bids be in writing and sealed.
2. A
general description of the item(s) or service(s) to be purchased.
3. The
location where bid forms and specifications may be obtained.
4. The
deadline and the time and place for opening bids.
5. The
type and character of bidder's security required, if any.
D. Notice
inviting bids shall be published in accordance with all legal and
City policy requirements.
E. Sealed
bids shall be opened at the time and place stated in the notice inviting
bids.
F. The
purchasing authority shall keep a record of all submitted bids in
accordance with the City's retention policy.
For purchases and contracts subject to the competitive bidding
requirements, the purchase or contract shall be awarded to the lowest
qualified bidder in conformity with the specifications except as described
below.
When a bid is recommended to be awarded to other than the lowest
qualified bidder, written justification is required. The written statement
must be signed by the City Manager and retained with the contract.
If no bids are received, the purchase may be made through negotiated
contract or other process approved by the City Manager.
The purchasing authority may reject:
A. Any
bid that fails to meet the bidding requirements in any respect.
B. All
bids, for any reasons, with or without cause, and submit the supplies,
equipment or service involved to a new bidding process or abandon
the purchase.
Bidder's security may be required when deemed necessary by the
purchasing authority. Bidders shall be entitled to return of bid security.
However, a successful bidder shall forfeit his or her security upon
refusal or failure to execute a contract within 15 days after notice
of award of that contract, unless the City is responsible for the
delay. The contract may be awarded to the next lowest qualified bidder
upon the refusal or failure of the successful bidder to execute the
contract within the time herein prescribed.
The purchasing authority may require as a condition to executing
a contract on behalf of the City, a performance bond or a labor and
material bond, or both, in such amounts as the purchasing authority
shall determine appropriate to protect the best interests of the City.
The form and amount of such bond(s) shall be described in the notice
inviting bids.
With the exception of emergency procedures, as defined in this
chapter, no purchase shall be made without prior budget authority.
No obligation for the payment of supplies, equipment or services
shall be incurred by the City except as defined by this chapter. Any
agreement for the purchase of equipment, supplies or services made
contrary to the provisions of this chapter shall be void and any claim
and demand against the City based thereon shall be invalid.