In order to establish efficient procedures for the purchases of supplies, equipment and services, to obtain these items at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over all purchases, and to clearly define authority for the purchasing function, a purchasing system is adopted.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
As used in this chapter, the following words have the following meanings:
"Competitive proposal"
means the procurement method whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation.
"Informal bid"
means solicitation by purchasing agent of at least three written price quotations, of which the bid yielding the lowest ultimate cost shall be accepted.
"Lowest ultimate cost"
means the lowest bid price commensurate with the quality needed and shall include consideration of anticipated operating costs, transportation or packing charges, availability, storage costs, vendor reliability, past experience with the vendor, and supplier responsibility when such factors are relevant.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
There is created the position of purchasing agent(s). The agent(s) shall be appointed by the city manager. The duties of the purchasing agent(s) may be combined with those of any other office or position. The purchasing agent(s) have the authority and duty to:
A. 
Purchase or contract for supplies, equipment and services in accordance with the purchasing procedures prescribed in this chapter, such administrative regulations, policies or procedures as the director of finance and administrative services adopts with the city manager's approval, and such other rules and regulations as prescribed by the city council or city manager, at all times endeavoring to obtain as full and open competition as possible on all purchases in a cost effective manner;
B. 
Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
C. 
Prepare or revise written standard specifications for purchases of goods, supplies, equipment and services;
D. 
Insure the inspection of all supplies and equipment purchases to guarantee conformance with specifications, and require chemical or physical tests of samples submitted with bids and samples of deliveries if such are necessary to determine their quality and conformance with specifications.
E. 
Negotiate and properly prepare contracts for the procurement of the needed quality and quantity of materials, supplies, services and equipment, required by any department at the least expense to the city and in conformity with the procedures established for that purpose;
F. 
Administer the opening of sealed bids pursuant to Section 4.20.060(E);
G. 
Explore and encourage bulk purchasing when possible in order to take advantage of discounts; to join with the state, county of Orange, or any other public agency in cooperative purchasing on another agency's bid effort.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
The director of finance and administrative services has the authority and duty to:
A. 
Recommend the transfer of surplus or unused supplies and equipment between departments as needed;
B. 
Maintain records needed for the efficient operation of the purchasing function.
C. 
Prescribe and maintain such forms as are reasonably necessary to the purchasing operation.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
Except as otherwise provided in this chapter, or state law, all purchases and contracts for supplies, equipment, commodities and services of any value shall be accomplished either by or through the purchasing agent or the city manager.
Purchases shall be processed by one of the following:
A. 
Requisitions. Using department shall submit requests for supplies, equipment and services to the purchasing agent by standard requisition forms.
B. 
Purchasing Orders. Purchase of supplies, equipment and services shall be made only by purchase order.
C. 
Encumbrance of Funds. Except in cases of emergency, as determined pursuant to Section 4.20.070, the purchasing agent shall not issue any purchase order for supplies, equipment or services unless there is an encumbered appropriation verified by the director of finance and administrative services in the fund account against which the purchase is to be charged.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
A. 
Bidding requirements for the purchase of goods and services, other than for public works projects, is as follows:
1. 
Except as otherwise provided in this chapter, when the value of any purchase or contract for goods, supplies, equipment or services is more than thirty-five thousand dollars for a single item or bulk purchase of a single item, the purchase shall be by formal bid procedure, competitive proposal procedure, government cooperative pricing, or sole source. In all such cases the purchase of goods or services must be approved by the city council and executed by the city manager.
2. 
When the value of any purchase or contract for goods, supplies, equipment or services is more than fifteen thousand dollars and up to thirty-five thousand dollars for a single item or bulk purchase of a single item, the purchase must be by formal bid procedure, competitive proposal procedure, informal bid procedure, government cooperative pricing, or sole source, as determined by the purchasing agent or city manager. In all such cases, a purchase order, written contract and payment requisition must be approved by the city manager.
3. 
When the value of any purchase or contract for goods, supplies, equipment or services is more than three thousand five hundred dollars and up to fifteen thousand dollars for a single item or bulk purchase of a single item, the purchase may be by formal bid procedure, competitive proposal procedure, informal bid procedure, government cooperative pricing, or sole source as determined by the purchasing agent. In all such cases, a payment requisition must be approved and executed by the purchasing agent.
4. 
When the value of any purchase or contract for goods, supplies, equipment or services is in an amount of up to three thousand five hundred dollars for a single item or bulk purchase of a single item, the purchase may be formal bid procedure, competitive proposal procedure, informal bid procedure, government cooperative pricing, sole source, or no bid as determined by the purchasing agent or designee. In all such cases, a payment requisition must be approved and executed by the purchasing agent or designee.
B. 
Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be obtained and the time and place for opening of bids. The purchasing agent shall solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have requested their names to be added thereto, and any other source known to the purchasing agent.
C. 
Bidder's Security. When deemed necessary by the purchasing agent, 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 refusal or 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, city manager, or purchasing agent 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, city manager or purchasing agent 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 and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
D. 
Performance Bonds. The city council, city manager and purchasing agent 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, city manager or purchasing agent requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
E. 
Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent and shall be identified as bids on the envelope. 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 for a period of not less than thirty calendar days after the bid opening. No bids shall be accepted after the stated time specified in the notice inviting bids.
F. 
Council Approval. In the event of city council approval set forth in subsection (A)(1), the city council shall approve a contract or purchase order for the lowest responsible bidder, or reject all bids.
G. 
Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, the city council, city manager or purchasing agent may accept one of them or accept the lowest bid made by negotiation with the tie bidders at the time of or after the bid opening.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018; Ord. CC 2024-02, 8/5/2024)
This method of procurement is generally used when conditions are not appropriate for the use of sealed bids. Departments may use competitive proposal procedures for qualifications-based procedures of professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. If this method is used, the following requirements apply:
A. 
Requests for proposals (RFP) will be publicized. Any response to publicized RFP shall be honored to the maximum extent practical;
B. 
Proposals will be solicited from an adequate number of qualified sources;
C. 
All evaluation factors will be identified and included along with their relative importance in the RFP.
D. 
The evaluation process may include, but is not limited to, review of written proposals, panel interview, and reference checking.
E. 
Awards will be made to the responsible firm whose proposal is most advantageous to the city with all factors identified in the RFP considered.
(Ord. 1793 § 1, 2018; Ord. CC 2024-02, 8/5/2024)
Purchases of goods, supplies, equipment and services, except public works projects, shall be by bid procedure pursuant to Section 4.20.060(A) except:
A. 
In case of an emergency as determined by the city manager or, in his or her absence, the purchasing agent; provided, that they shall advise the city manager of such emergency purchase as soon as practicable;
B. 
When the goods or service can be obtained from only one vendor;
C. 
When the city can utilize cooperative governmental purchasing contracts or pricing for a given item or service which was established by another governmental agency's successful bid award for that general or specific type of item or service, and which had been conducted on a negotiated or competitive basis;
D. 
When the city council finds that negotiation shall best serve the city due to the nature of the goods, supplies, equipment or services;
E. 
When the proposed purchase involves the acquisition of information technology, hardware, software, computers, telecommunications equipment, cabling, installation, support or similar electronic equipment or product, which requires the expertise of information technology, computer or telecommunications vendors who are highly and technically skilled, the city council, city manager or purchasing agent may acquire the equipment through formal or informal negotiations rather than competitive bidding.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018; Ord. CC 2024-02, 8/5/2024)
A. 
When the city manager or city council authorizes the procurement of services for which standard specifications cannot be drawn due to the nature of the service or because of national association bylaws or professional policies prohibiting competitive bidding, such as, but not limited to, architectural services, consultant services, legal services and engineering services, persons designated by the city manager shall negotiate for the service.
B. 
When a service firm has established such a successful past history of work with the city that it is clearly in the public interest not to negotiate with any other source.
C. 
When it is necessary to hire a consultant to prepare an environmental impact report for private development projects as provided for in the California Environmental Quality Act and applicable state and city regulations.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
Departments shall submit to their purchasing agent, at such time and in such form as he or she shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out.
The purchasing agent shall have authority to sell all supplies and equipment which cannot be used in any agency or department or which have become unsuitable for city use, or to exchange the same for, or trade in same on, new supplies and equipment, with the approval of the city manager.
Any such sale of such equipment shall be made by the most effective method which may include formal sealed bids, informal bids, internet auction, or negotiation. In addition, the city may hold a public auction when selling city supplies and equipment. In the event the supplies and equipment are offered at public auction, any person, including a city employee, may make an offer to purchase the supplies and equipment, but provided further, that no city employee shall purchase any supplies or equipment sold by means other than a public or internet auction, and provided further that in no event shall the purchasing agent or any other department director conducting the sale, regardless of its form, be a purchaser of the equipment or supplies.
The city may require cash or a certified check when selling supplies or equipment.
In the event that certain property, after being designated by a department as surplus, is determined by the purchasing agent or city public safety representative to be potentially dangerous to the public, such potentially dangerous property shall be so designated by the department and a proposed means of disposing of such potentially dangerous property submitted to the city manager for approval. Upon approval by the city manager, such property shall be disposed of in accordance with the plan of disposal approved by the city manager.
Any plan for the disposal of potentially dangerous property shall recognize the need to protect the public health, safety and welfare in the most reasonable means available.
(Ord. 1740 § 1, 2012; Ord. 1764 § 1, 2015; Ord. 1793 § 1, 2018)
There is established a "revolving fund" for the prepayment of deposits, cash purchases, expense advances, reimbursements, or for the purchase of goods and services by the city. Such fund may be established as a separate bank account with the signature of the director of finance and administrative services, or as a cash fund payment by the director of finance and administrative services on a voucher approved by the city manager.
(Ord. 1740 § 1, 2012; Ord. 1793 § 1, 2018)
The purpose of Sections 4.20.110 to 4.20.170 is to establish procedures for public works construction projects in the city in compliance with the California Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Construction Cost Accounting Act.
(Ord. CC 2024-02, 8/5/2024)
A. 
"Public works project" shall include:
1. 
Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work of city owned, leased or operated facilities.
2. 
Maintenance work involving the routine, recurring and usual work for the preservation of protection of city owned, leased or operated facilities.
B. 
"Public works project" does not include:
1. 
Minor repainting.
2. 
Resurfacing of streets and highways less than one inch.
3. 
Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.
(Ord. CC 2024-02, 8/5/2024)
A. 
Projects Sixty Thousand Dollars or Less. Construction projects less than the amount specified in California Public Contract Code § 22032(a) may be performed by city forces, by negotiated contract or by purchase order.
B. 
Projects Two Hundred Thousand Dollars or Less. Construction projects less than the amount specified in California Public Contract Code Section 22032(b) may be let to contract by informal bidding procedures, set forth in Section 4.20.130 below, to the lowest responsible bidder.
C. 
Projects Two Hundred Thousand Dollars or More. Construction projects of more than the amount specified in California Public Contract Code Section 22032(c) shall be let by formal bidding procedure, set forth in Section 4.20.135 below, to the lowest responsible bidder.
(Ord. CC 2024-02, 8/5/2024)
It shall be unlawful to split projects into smaller work orders or projects for the purpose of evading the provisions of this chapter or applicable state laws.
(Ord. CC 2024-02, 8/5/2024)
A. 
Notice Inviting Bids. The notice inviting bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. Notice shall be provided in accordance with either subsection (B)(1) or (2), or both.
B. 
Notice to Contractor.
1. 
The city shall maintain a list of qualified contractors, identified according to categories of work. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this division shall be completed not less than ten calendar days before bids are due.
2. 
The city may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals as specified in California Public Contract Code Section 22036.
C. 
Award of Bids in Excess of Informal Amount. If all the bids received are in excess of two hundred thousand dollars the city council may, by adoption of a resolution by a four-fifths vote, award the contract up to two hundred fifteen thousand dollars to the lowest responsible bidder if it determines the cost estimate of the city was reasonable.
(Ord. CC 2024-02, 8/5/2024)
Notices inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the city; or, if there is no newspaper printed and published within the city, in a newspaper of general circulation which is circulated within the city, or, if there is no newspaper which is circulated within the city, publication shall be by posting the notice in at least three places within the city as have been designated by ordinance or regulation of the city as places for the posting of its notices. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in California Public Contract Code Section 22036. The notice shall be sent at least fifteen calendar days before the date of opening the bids. In addition, the city may also give such other notice as it deems proper, including mailing or e-mailing the notice to prospective vendors and contractors.
(Ord. CC 2024-02, 8/5/2024)
In both informal and formal bidding process, award shall be to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses.
(Ord. CC 2024-02, 8/5/2024)
In its discretion, the city may reject any bids presented if the city declares that the project can be performed more economically by employees of the city. Prior to rejecting any bids, the city shall furnish a written notice to an apparent low bidder informing the bidder of the city's intention to reject the bid. Said notice shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the option of either of the following:
A. 
Abandon the project or readvertise for bids, or
B. 
With the passage of a resolution by a four-fifths vote of the city council declaring that the project can be performed more economically by the employees of the city, may have the project done by force account.
(Ord. CC 2024-02, 8/5/2024)
If no bids are received through the formal or informal procedure, the project may be performed by the employees of the city by force account, or by negotiated contract.
(Ord. CC 2024-02, 8/5/2024)
The city manager, or designee, has the authority to award informal bids up to thirty-five thousand dollars and to execute all contracts associated therewith. All informal bids and formal bids over thirty-five thousand dollars shall be awarded by the city council and executed by the city manager, or designee.
(Ord. CC 2024-02, 8/5/2024)
The city manager, or designee, is authorized to approve one or more change orders not exceeding in aggregate ten percent of the contract award amount, unless the city council has granted additional authority. All change orders over ten percent will require city council approval.
(Ord. CC 2024-02, 8/5/2024)
A. 
Declaration of Emergency. In the case of an emergency, the city, pursuant to a four-fifths vote of the city council, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. The city council, in a resolution, shall make findings that the emergency is such that it will not permit a delay which would occur from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.
B. 
Delegation of Authority. The city council, by a four-fifths vote herein, delegates to the city manager the authority to make an initial determination of an emergency and take any action under subsection A.
1. 
If the city manager orders any action specified in subsection A, the city manager shall report to the city council, at its next meeting, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.
C. 
Review of the Emergency.
1. 
If the city council orders any action specified in subsection A, the city council shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action.
2. 
If the city manager orders any action specified in subsection A, the city council shall initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action.
3. 
The city council shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.
(Ord. CC 2024-02, 8/5/2024)