(1)
Method determined by cost estimate. The procedure to be followed in soliciting contracts or purchase orders is determined initially by the estimated cost to the city of the supplies or services over the time the supplies or services are needed.
(2)
No division of procurements. The procurement of supplies or services shall not be knowingly staged or separated into smaller units or segments solely for the purpose of evading the competitive bidding requirements of this title.
(3)
Cancellation of solicitation. A solicitation may be canceled by the director, when cancellation or rejection is in the best interests of the city. The reasons therefor shall be made part of the contract file.
(4)
Use of electronic means.
(a)
Consistent with the stated policy of promoting efficient public contract law, consistent with the best of modern practice and research, and pursuant to the authority granted by Public Contract Code Sections 1600 and 1601, the director shall be authorized to utilize electronic means in the procurement of supplies and services, so long as the purpose and intent of applicable state law, this chapter, and any supplemental rules or regulations are met.
(b)
Without limiting the nature of the foregoing, the city may utilize online bidding and selling methods, electronic signature in accordance with applicable state, local and federal law, and electronic mail for delivery of notices when "mailed" notice is required herein. For purposes of this title, "supporting materials," as defined in Public Contract Code Section 1601, shall be deemed to also include security bonds, which the city may, in its sole and absolute discretion, allow to be submitted electronically, consistent with any supplemental regulations, adopted in accordance with this title, implementing the submission of electronic security bonds. Whenever "sealed" bids or proposals are called for, any electronic means may be used so long as such electronic means provide for the secured submission of the required data. Whenever bids are required to be "opened," such bids shall be deemed "opened" if and when they are made available to both the city and the public simultaneously, in a public setting, including, without limitation, by way of making such bids available in an electronic format that is readable by the public. If provisions of this section are in conflict with any other resolution or ordinance of the city, this section shall prevail.
(c)
The city may use electronic signature platforms to obtain signatures on contracts and other related documents.
(5)
Use of purchase requisitions and purchase orders.
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(a)
The director shall prepare administrative policies and procedures controlling the implementation of each procurement approved pursuant to this chapter through the use of a purchase requisition and corresponding purchase order. Each procurement may only be approved after issuance of a purchase requisition and approval of a purchase order approved by the director, unless otherwise exempt pursuant to applicable supplemental regulations. Purchase orders are required for all purchases with the exception of spot purchased items under $5,000 where a P-Card is used or where a claim voucher is allowed under finance's claim voucher policy.
(b)
Purchase requisitions are required through the city's ERP system (currently Tyler Munis) to obtain purchase orders for the authorization to purchase supplies, services, and public projects for the city. Each department shall have selected staff trained to input required information into the system to obtain the required purchase orders. Preparing detailed notes and adding supporting documents in the system will help facilitate the approval process. The following documents shall be included with the requisition:
1.
The required number of quotes and signed contract.
2.
For supplies, services and public projects, any insurance certificates and endorsements required to demonstrate the vendor has the required levels of insurance.
3.
For sole source purchases a letter from the vendor explaining the sole source with a current date on it and an explanation from the department on why only that product or vendor can be used will also be required for approval. To avoid any delays in processing purchase orders, sole source items should be submitted in advance to the procurement and contracting department for review and signoff.
4.
For emergency purchases proper authorization from the city manager shall be included.
6.
Purchase order terms must follow the contract term and not just align with the fiscal year, or the purchase order and contract terms will become out of sync and cause a shortening or lengthening of the contract term. Budgets follow fiscal year terms, but contract terms may span between fiscal years or remain in effect for multiple fiscal years.
(c)
Release purchase orders. On-call contracts can be set up to allow for services to be performed on an as needed basis. If a contract of this nature is utilized, the departments may use release purchase orders to authorize work under the on-call contract. Departments will contact the procurement and contracting department to set up the contract in the ERP system for use. When a requisition is created the contract number will need to be selected on the line detail screen to tie the purchase order to the contract. The purchase order will then enter into a reduced workflow and will only be authorized by the department director allowing for a quicker issuance of the purchase order. The ERP system will then track the value of the commitments on the contract and will not allow ordering that exceeds the contract value. This tool can be very useful for departments that need to perform quick repairs to maintain facilities or perform lower valued simple projects such a smaller building repair or remodeling projects. Please note release purchase orders can be authorized off estimates using the contract pricing from the Contractor or by the department's estimate in the event of an emergency.
(d)
Blanket purchase orders may be issued each fiscal year for purchases of supplies and some limited services at lower dollar values that are repetitive in nature and on an "as needed" basis. Examples where a blanket purchase order may be used includes office supplies or other small but repeatedly purchased commodities.
(e)
Purchase order authorization. The procurement and contracting department issues purchase orders to authorize the purchase of supplies, services, and public projects. Purchase orders are not issued after a purchase since the purchase has already taken place. The city and the vendor are at risk if items are purchased without proper authorization through a contract or purchase order. Noncompliance with the procurement policies and procedures may cause the transaction in question to be audited and presented to the city manager and city attorney for their review before payment can be made. All transactions are monitored and audited on a regular basis for compliance and violations are subject to disciplinary action.
(f)
Changes to purchase orders should a change to a purchase order be needed after the purchase order is issued the change will be processed through the city's ERP system. Information must be provided in the notes section to explain why the change is necessary with supporting documentation attached. For contracts spanning more than one year, the initial purchase order that was issued should be change ordered to add the additional years so that all costs are collected on one purchase order to match the contract. This allows for easier tracking of the contract value and for invoicing to be tied to the same PO.
(6)
Requests for formal solicitations. If a department needs a procurement by formal solicitation (IFB, RFP or RFQ), the department shall contact the procurement and contracting department for further assistance. The using department must provide a scope of work, pricing structure and any specific qualifications or minimum requirements the department would like included in the solicitation. The procurement and contracting department will draft the solicitation for review and comment by the department. Once the solicitation is finalized, the solicitation will be advertised to the public and the procurement and contracting department, in conjunction with the department, will conduct any pre submittal meetings, prepare any addenda to make changes to the solicitation, open the bids or proposals, and finalize the evaluation and selection process until a contract is ready for recommendation of award.
(Ord. 2108, 1/23/2025)