This chapter shall be known and may be cited and referred to as the "Purchasing Ordinance of the city of Lemon Grove."
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purposes of this chapter are to define the centralized system of the city for the purchase of supplies, services and equipment, to provide for the fair and equitable treatment of all persons involved in the purchasing process, to obtain the highest possible value in exchange for public funds and to safeguard the quality and integrity of the purchasing system.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
For the purposes of this chapter, the following definitions apply:
means the best value to the city based on all factors, including, but not limited to, the following:
Cost;
The ability, capacity and skill of a contractor to perform a contract or provide the supplies, services or equipment required;
The ability of a contractor to provide the supplies, services or equipment promptly or within the time specified without delay or interferences;
The character, integrity, reputation, judgment, experience and efficiency of a contractor;
The quality of a contractor's performance on previous purchases by the city; and
The ability of a contractor to provide future maintenance, repairs, parts and services for the use of the supplies purchased.
mean the documents, including their attachments and addenda, which set forth instructions to bidders or proposers and which are disseminated for the purpose of soliciting bids or proposals.
means equipment (fixed assets) with a monetary value established by the finance director.
means the California Multiple Award Schedule which has a wide variety of commodity and information technology products and services at prices which have been assessed to be fair, reasonable and competitive by the state of California.
means goods, services or equipment that can be obtained from only a single source. Items that have specific requirements by law or are required to match or be compatible with other furnishings, materials or equipment presently on hand, or when a particular type or make of commodity, furnishings, type of material or equipment has been standardized for the city by the city manager or the city council (see Section 3.24.100, Exemptions).
means construction, reconstruction, alteration, renovation, demolition, erection, improvement, painting or repainting and repair work involving any publicly owned, leased or operated facility.
means agreements, regardless of what they may be labeled, between the city and one or more other parties for the purchase or disposition of goods and/or services or construction.
means any party (business) who has entered into a contract with the city for the provision or disposition of goods and/or services.
means the Lemon Grove School District located in Lemon Grove, California.
means the city of Lemon Grove or any city department/division requesting goods and/or services.
means the use of electronic technology for the acquisition or disposition of supplies, services, equipment or construction.
means articles that are moveable at the time of sale, including, but not limited to, equipment, supplies and/or materials.
means a gift, payment, loan, advance, deposit of money, or service, presented or promised in return for or in anticipation of favorable consideration in the procurement process.
means services intended to preserve and/or restore a public facility to a clean, safe, efficient and/or continually usable condition. Maintenance may include, but is not limited to: carpentry, electrical, minor repainting, plumbing, glazing and other craftwork to preserve a facility in the condition for which it was intended; cleaning and other operations on machinery and other equipment attached to a facility as fixtures; the mowing, pruning and trimming of lawns, grass, trees, shrubs, bushes and hedges; servicing of irrigation and sprinkler systems; and the regular removal or relocation of by-products or waste products accumulated at city facilities.
means the acquisition of supplies, services, equipment or construction by the city, including, but not limited to, purchasing, renting or leasing, and all functions and procedures pertaining to such acquisitions.
means services that involve the exercise of professional discretion, independent judgment, and recommendations based on advanced or specialized knowledge, expertise or training gained by formal study or experience. Such services include, but are not limited to, those provided by appraisers, architects, attorneys, engineers, instructors, insurance advisors, physicians and/or other specialized consultants.
means the person responsible for the procurement of goods and/or services in accordance with the provisions of this chapter. The person designated by the city manager as the purchasing officer of the city can designate department representative(s) to procure goods and/or services for the city.
means an approved list of supplies, services, or construction items described by model or catalog numbers that, prior to competitive solicitation, the city has determined will meet the specification requirements.
means a bidder determined by the awarding authority:
To have the ability, capacity, experience and skill to provide the goods and/or services in accordance with bid specifications, and if applicable;
To have the ability to provide the goods and/or services promptly, or within the time specified, and if applicable;
To have equipment, facilities and resources of such capacity and location to enable the bidder to provide the required goods and/or services, and if applicable;
To be able to provide future maintenance, repair, parts and service for the use of the goods purchased, and if applicable;
To have a record of satisfactory performance under prior contracts with the city or other purchasers where such bidder has previously been awarded such contract.
means a bidder determined by the city to have submitted a bid or proposal that conforms in all material respects to the requirements of the bid, contract, or proposal documents.
means a bid which has been submitted in a sealed envelope or sealed electronically to prevent its contents from being revealed or known prior to the deadline for the submission of all bids; required on formal bids.
means work performed, or labor, time and effort expended, by an independent contractor.
means a description of the physical and/or functional characteristics or of the nature of the required goods and/or services.
means a contractor undertaking part of the work of a contract under the control of the principal contractor.
means goods owned by the city which are no longer needed or which are obsolete or unserviceable, or property that is a by-product (scrap metal, used tires and oil etc.).
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
End User. The end user shall:
1.
Identify its procurement needs and the availability of funding;
2.
Submit to the purchasing officer specifications for the required goods and/or services;
3.
Participate in the evaluation of bids and proposals; and
4.
Inspect goods delivered and services performed to determine conformity with the requirements set forth in the bid or proposal documents and with contractual obligations, and authorize payments for conforming goods and/or services.
B.
Purchasing Officer. The purchasing officer shall be appointed by the city manager. The purchasing officer shall be responsible for the procurement of goods and/or services for the city in accordance with the provisions of this chapter. No procurement of goods and/or services shall be made contrary to the provisions of this chapter. Any agreement or contract for the purchase of supplies, services and equipment made contrary to the provisions of this chapter shall be void and any claim or demand against the city based thereon shall be invalid. The purchasing officer shall:
1.
Prepare and recommend to the city manager operational procedures and forms for the procurement of goods and/or services in cooperation with the end users and for the disposal of surplus personal property;
2.
Procure or supervise the procurement of all goods and/or services needed in coordination with end users;
3.
Process the contracts awarded administratively and/or by city council;
4.
Whenever possible, establish standardized specifications and consolidation of requirements for goods and/or services required by two or more end users; and
5.
Sell or otherwise dispose of surplus personal property, and lost and unclaimed property held by the sheriffs department.
C.
City Manager. The city manager shall be the awarding authority for:
1.
All procurement of goods and/or services for which the cost to the city is fifteen thousand dollars or less;
2.
All capital outlay items approved by the city council during the budgeting process in an amount of fifty thousand dollars or less;
3.
All contracts for professional services of thirty thousand dollars or less;
4.
All change orders, amendments or extensions to existing agreements within the authority granted in subsections (C)(1) and (2) of this section;
5.
All public works change orders equal to the contingency amount set when the underlying contract was awarded to a nonpublic works contract;
6.
All change orders or amendments to non-public works contracts awarded by the city council in an amount up to twenty-five percent of the original contract amount, including the total of all amendments, up to a limit of fifteen thousand dollars;
7.
The city manager shall approve alternate procurement methods, if appropriate, for use on an experimental basis, and recommend to the city council additions, deletions or modifications to the city's procurement methods; and
8.
The city manager shall have the authority to delegate the awarding of contracts, amendments and change orders for goods and services as set forth in this chapter by memorandum or by administrative order.
D.
City Council. The city council shall be the awarding authority for:
1.
All procurement of goods and/or services costing more than fifteen thousand dollars;
2.
All public works contracts that are five thousand dollars or more; and
3.
All contracts for professional services that exceed the city manager's authority as set forth in this chapter and contracts greater than thirty thousand dollars.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
Small Procurements. Procurements of supplies, services and equipment, the cost of which are five thousand dollars or less in any one transaction, shall be made using simplified and cost effective operational procedures without the use of formal bids. Procurement requirements shall not be unnecessarily divided so as to constitute several small procurements under this subsection.
B.
Informal Bidding for Supplies, Services and Equipment. The purchasing officer may purchase supplies, services and equipment using the informal bidding procedures established in this section. Informal bidding procedure may be utilized:
1.
When the anticipated cost of the supplies, services and equipment to be purchased is less than the dollar amount established for formal bidding in subsection (C)(1) of this section;
2.
When no bids are received pursuant to the formal bid procedures established for supplies, services and equipment;
3.
When all bids received substantially exceed the city's estimated costs;
4.
Further, the city council may designate types or classes of supplies, services and equipment costing more than the dollar amount established for formal bidding in subsection (C)(1); which may be purchased through the use of informal bidding procedures whenever the city council finds that use of the informal bidding procedure is advantageous to the city consistent with applicable law; and
5.
The informal bidding procedure shall be as follows:
a.
The purchasing officer shall solicit bids by written or oral request. Responses shall be in writing, and may be transmittable to the purchasing officer by facsimile, by mail, orally, electronically over the Internet, or by any other means of delivery. When possible, a minimum of three bidders should be solicited and the award shall be based on best value and shall be awarded by the city manager.
C.
Formal Bidding for Supplies, Services and Equipment.
1.
The purchasing officer shall purchase supplies, services and equipment using the formal bidding procedures established in this section. Formal bidding procedures shall be utilized when the anticipated cost of the supplies, services and equipment is greater than fifteen thousand dollars. The bid limit shall be reviewed annually by the purchasing officer and automatically adjusted in response to the San Diego – All Urban Consumer Price Index. The purchasing officer shall calculate the effect of the cumulative change in the index to twenty-five thousand dollars beginning in 2003. Adjustment to the bid limit will be made in five thousand dollar increments whenever the calculated value exceeds a previously set bid limit by more than two thousand five hundred dollars. The bid limit adjustment will be made effective at the beginning of a fiscal year by memorandum from the purchasing officer; and
2.
Procurement requirements shall not be divided so as to avoid the formal bidding requirements.
D.
The formal bidding procedures shall be as follows:
1.
The purchasing officer shall issue a notice inviting bids using one or more methods designed to provide reasonable public notice in a manner that will permit current information to be disseminated widely. The notice shall include:
a.
Instruction to bidders,
b.
Specifications describing the required supplies, goods or equipment,
c.
Bid forms and schedules,
d.
Any required bond and/or security forms,
e.
General provisions,
f.
The time on or before which bids will be received,
g.
Where and with whom bids shall be filed, and
h.
The date, time, and place where and when the bids will be publicly opened;
2.
At the bidders' request and/or when the city deems feasible, bid documents may be transmitted and/or reviewed over the Internet. The purchasing officer shall receive the sealed formal bids at a time, date and place designated in the bid documents. The purchasing officer will publicly open formal bids, timely received, and the aggregate bid pricing shall be read aloud;
3.
Any person with whom the city has contracted to prepare or assist in the preparation of bid or proposal documents is ineligible to submit a bid or proposal for the provision of the goods or the performance of the services so specified in the notice inviting bids or proposals;
4.
Formal bids received after the deadline for receipt of bids shall not be accepted by the city and shall be returned to the bidder unopened, unless opening is necessary for identification purposes. The purchasing officer shall submit written notification to the bidder whose bid was received after the deadline stating what the deadline was, when the bid was actually received and that the bid is being returned because it was received after the deadline;
5.
If no bids are received or if no bids meet the requirements as specified in the solicitation documents, the purchasing officer may reissue the solicitation using the informal bidding procedures or the city may cease the procurement;
6.
If two or more bids are received with the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of advertising again for bids, the purchasing officer shall enter negotiations to determine if a low bid can be negotiated;
7.
In considering formal bids for supplies, services and equipment, the awarding authority may waive minor defects or irregularities, provided that the irregularities do not affect the bid amount or give a particular bidder an advantage over others;
8.
All bids shall be deemed rejected if no city council action is taken on the bids or proposals within ninety days after the bids have been received and opened, unless bidders agree to extend a bid's effective date upon request by the city;
9.
The city shall have the authority to require a performance bond in such amount as it finds reasonably necessary to protect the best interests of the city consistent with applicable law. If the city requires a performance bond, the amount of the bond shall be described in the notice inviting bids;
10.
All contracts for supplies, services and equipment shall be awarded based on the best value for the city; and
11.
The city manager shall send to the city council a report of all contracts that have been awarded administratively.
E.
Petty Cash. The high cost of payment processing makes it imperative that small-dollar purchases be made by cash. Each department, with city manager approval, may have a petty cash fund of five hundred dollars and should use it for minor purchases up to fifty dollars per item when buying from uncommon sources or vendors unwilling to establish a credit account with the city. Each department should submit their petty cash expenditures for reimbursement as needed. The finance department shall periodically audit each department's petty cash fund.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purchasing officer may authorize the solicitation of professional services other than those listed in Section 3.24.070, and the purchase of technical supplies or equipment by competitive negotiations when:
A.
The cost of the supplies, services, or equipment is greater than five thousand dollars;
B.
The supplies or equipment are such that suitable technical or performance specifications are not readily available;
C.
The city is not able to develop descriptive specifications;
D.
Requesting proposals for the particular service or purchase would be more advantageous to the city; and
E.
Whenever possible, at least three proposals shall be received and the award will be based on the proposal that is determined to be most advantageous to the city, taking into consideration price and the evaluation criteria set forth in the request for proposal. Competitive negotiations are not intended to be used for the purpose of avoiding the bidding procedure set forth in this chapter. The city manager shall award contracts for goods, services or equipment less than fifteen thousand dollars. The city manager shall send to the city council a report of all competitively negotiated contracts that have been awarded administratively.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
For the purpose of this section, a local vendor is a business that is located in and licensed to provide goods and/or services within the city limits of Lemon Grove, and reports sales taxes to the state of California.
The purchase of taxable goods by the city of Lemon Grove in any solicitation of bids or quotes for goods or services and any solicitation for work involving the supply of materials or goods as a part of the bid or quote is subject to the application of a local vendor preference. When calculating bids or quotes based on the lowest responsible bid, and which involves the purchase of taxable goods in whole or in part, the preference to be granted to the price bid or quoted by a local vendor shall be two percent.
If the bid or quote is a mixture of taxable and nontaxable items, the two percent preference will only apply to the taxable portion of the bid or quote. If the bid or quoted price after the preference is granted makes the local vendor the lowest responsible bidder, the city shall make the purchase from the local vendor at the bid or quoted price.
(Ord. 413 § 1, 2012)
A.
Request for proposal shall be used when the services of professionals are needed. The selection of specialized professional services, including, but not limited to, architectural, landscape architectural, engineering, appraisals, environmental, land surveying or construction project management firms is based on the professional qualifications necessary for the satisfactory performance of the service required, on demonstrated competence, and on a fair and reasonable price consistent with Government Code Section 4526. Whenever possible at least three proposals shall be received for the professional service needed. The purchasing officer may waive the requirements for solicitation of multiple proposals if only one individual or firm can provide the professional services. The city manager shall send to the city council a report of all professional service contracts that have been awarded administratively.
B.
The city's professional services procurement practice prohibits unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration. No city employee shall participate in the selection process if that employee has a relationship with a person or business entity seeking a contract with the city that would subject that employee to the prohibition of Government Code Section 87100 (Conflicts of Interest).
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
No change in an agreement or contract shall be made without the issuance of a written change order or amendment, and no payment for any such change shall be made unless a written change order or amendment has first been approved and executed in accordance with this section designating in advance the work to be done and the amount of additional compensation to be paid.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purchasing officer shall have the authority to join with other public or quasi-public agencies such as the district and CMAS in cooperative purchasing plans or programs for the purchase of supplies, services and/or equipment by contract, arrangement or agreement as allowed by law and as determined by the purchasing officer to be in the city's best interest. The purchasing officer 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.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The following procurements, contracts or transactions are exempted from the provisions of Chapter 3.24:
A.
Emergency procurements for construction, equipment or repairs;
B.
Sole source goods or services;
C.
Items required to match or be compatible with other furnishings, materials or equipment previously purchased by the city;
D.
Commodities, furnishings, types of materials or equipment that have been standardized for the city by the city manager or by the city council;
E.
Utility services and related charges;
F.
Goods or services obtained from or through agreement with any governmental, public or quasi-public agency;
G.
Real property leases or purchases and related title and escrow fees;
H.
Insurance and bonds;
I.
Advertising in magazines, newspapers or other media;
J.
Works of art, specialty signage, entertainment or performers;
K.
Library collection materials or services or other books or periodicals;
L.
Membership dues, conventions, training, travel arrangements including hotels, car rentals and airfare; and
M.
Surplus personal property owned by another government, public or quasi-public entity.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
The purchasing officer shall have the authority to sell or dispose of surplus property. All surplus property is for sale "as is" and "where is," with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability of the property offered for sale. Appropriate methods of sale are as follows:
1.
Public Auction. Surplus property may be sold at public auction. Public auction may be conducted by the city staff, county of San Diego, or the city may contract with a professional auctioneer including professional auction services.
2.
Sealed Bids. Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest responsible bidder.
3.
Selling for Scrap. Surplus property may be sold as scrap if the purchasing officer deems that the raw materials exceed the value of the property as a whole.
4.
Negotiated Sale. Surplus property may be sold outright if the purchasing officer determines that only one buyer is available or interested in acquiring the property.
5.
No Value Sale. When the purchasing officer determines the specific supplies or equipment are surplus and of minimum value to the city due to obsolescence, other cause, or where the purchasing officer determines that the cost of disposal of such supplies or equipment would exceed the recovery value, the purchasing officer shall dispose of the same in such a manner as deemed appropriate and in the best interest of the city.
B.
All proceeds from the sale of surplus property shall be deposited in the city's general fund.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
Contracts for public projects in the city shall be governed by applicable state laws including the California Public Contract Code, Division 2, Part I, and Division 2, Part 3, the Local Agency Public Construction Act. Contracts for public projects shall also be governed by the adopted edition of the Standard Specifications for Public Works Construction and the adopted supplement thereto, adopted by the Greenbook Committee of the Public Works Standards, Inc. and other documents as deemed appropriate by the city manager, except as otherwise provided by the city council or the city manager if the contract is within their authority (Division 2, Part 3, Chapter I, Article 4, Sections 20160-20174). Further, the city of Lemon Grove has, by resolution, chosen to be governed by the Uniform Construction Accounting Procedures Act (Public Contracts Code Sections 22010 et seq.), as amended, under the procedures set forth herein and by implementing resolutions established by the city council. All procedures set forth herein shall be interpreted in a manner consistent with state law.
A.
Public projects equal to or less than the amount specified in Section 22032(a) of the California Public Contract Code may be performed by city employees by force account, by negotiated contract or by purchase order.
B.
Public projects equal to or less than the amount specified in Section 22032(b) of the California Public Contract Code may be let to contract by informal procedures. The informal bidding procedures for construction projects shall include the following:
1.
The purchasing officer or designee shall maintain a list of qualified contractors established by this chapter;
2.
The purchasing officer or designee shall send a notice inviting informal bids to all contractors on the list of qualified contractors or to the designated construction trade journals and/or both not less than ten calendar days before bids are due;
3.
The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, the time, date and place for the submission of bids;
4.
Bid documents may be transmitted and/or received over the Internet, by facsimile and/or electronic mail;
5.
The city council may, in its sole discretion, reject any or all bids presented and waive any minor irregularity or informality in such bids. The contract shall be awarded to the lowest responsive, responsible bidder. If two or more bids are the same and the lowest, the city council may accept the one it chooses. If no bids are received through the informal procedure, the project may be performed by city employees, by force account or negotiated contract without further complying with this section;
6.
If all bids received are in excess of the amount specified in this subsection, the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at the amount specified in Section 3.24.130(F); and
7.
The city council shall award all informal contracts in a form approved by the city attorney.
C.
Public projects of more than the amount specified in Section 22032(c) of the California Public Contract Code shall, except as otherwise provided in this chapter, be let to contract by the city council through the formal bidding procedure. The formal bidding procedures for construction projects shall include the following:
1.
The purchasing officer or designee shall maintain a list of qualified contractors established by this chapter;
2.
The notice inviting formal bids for public projects shall be published at least fourteen calendar days before the bid opening date in a newspaper of general circulation in the city. The notice shall distinctly state the project to be done, how to obtain more detailed information about the project, and state the time and place for submission of bids. The purchasing officer or designee shall send a notice inviting informal bids to all contractors on the list of qualified contractors and to the designated construction trade journals at least ten calendar days before bids are due. In addition to the newspaper and use of publication methods required under the California Uniform Construction Cost Accounting Commission, the notice inviting bids may be advertised in any manner which will permit the information to be widely disseminated, including additional contractors and/or construction trade journals;
3.
Bid documents may be transmitted and/or received over the Internet, by facsimile and/or electronic mail;
4.
The city council may, in its sole discretion, reject any or all bids presented and waive any minor irregularity or informality in such bids. The contract shall be awarded to the lowest responsive, responsible bidder. If two or more bids are the same and the lowest, the city council may accept the one it chooses. If no bids are received, the city council may have the project done without further complying with this chapter;
5.
If no bids are received through the formal procedure, the project may be performed by city employees, by force account or negotiated contract without complying with this section.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012; Ord. 415 § 2, 2013)
The city council may by resolution authorize the city manager to approve change orders on a project to an amount it determines appropriate for a large, complex project.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
In cases of emergency, as determined by the city council, including, but not limited to, states of emergency defined in Government Code Section 8558, as may be amended from time to time, when repair or replacements are necessary to permit the continued conduct of the operation or services of a public agency or to avoid danger to life or property, the city manager may then proceed at once to replace or repair any public facility and/or procure the necessary equipment, services and supplies, without giving notice of bids to let contracts. Emergency work may be completed by day labor under the direction of the city manager, or by contractor, or a combination of the two. The city manager is delegated the power to declare a public emergency subject to ratification by the city council within seven days thereafter.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)