The purpose of this chapter is to:
A. 
Clearly define authority for the city's purchasing function and delegate authority to persons to sign city contracts to procure goods and services, and for public projects;
B. 
Establish efficient procedures to award and sign city contracts to procure goods, general services, and professional services;
C. 
Establish efficient procedures to award and sign public works contracts for the city;
D. 
Ensure city contracts for goods, general services, and public projects are awarded at the lowest possible cost commensurate with quality needed;
E. 
Ensure contracts for qualified professional services are awarded to qualified consultants at the lowest possible cost commensurate with quality needed, and all contracts for professional services are awarded to the consultants best able to provide the needed services at a cost commensurate with the quality needed;
F. 
Ensure the quality of the goods and services purchased by the city is fit for their intended purpose; and
G. 
Exercise positive financial control over city procurement contracts.
Except as otherwise provided herein, this chapter applies to all city contracts goods, services, and public projects, but it does not apply to other city contracts.
(Ord. 2159 § 3 (Exh. A), 2024)
Other relevant provisions of law or regulation notwithstanding, this chapter establishes the city's purchasing policy. For operational efficiency and effectiveness, the City Manager is directed to prepare administrative regulations to implement the provisions of this chapter in coordination with the Administrative Services Director and the City Attorney, or their respective designees. In the event of a conflict between the administrative regulations and the provisions of this chapter, the provisions of this chapter shall govern. In the event of a conflict between this chapter and a state or federal law, the provisions of the state or federal law shall govern.
(Ord. 2159 § 3 (Exh. A), 2024)
A. 
All city contracts for goods, services, and public projects shall conform with the procedural requirements set forth in this chapter to solicit, award, and sign contracts for the city, except as otherwise specified elsewhere in the LMC, or in state or federal law.
B. 
The general procedural requirements for all city contracts for goods, services, and public projects are as follows:
1. 
All city contracts for goods, services, and public projects shall be in writing and shall be awarded as set forth in this chapter and signed in the name of the city by the body or person with the appropriate approval authority. Oral contracts are specifically prohibited and shall not be binding on the city;
2. 
As applicable, all city contracts for goods, services, and public projects must include appropriate insurance provisions as required by the city's Risk Manager or their designee, and indemnity provisions as required by the City Attorney or their designee;
3. 
As applicable, all public works contracts must include the appropriate bonds or other security as required by the California Civil Code, the California Public Contracts Code, and other applicable law and regulation for the public work, in the maximum amounts allowed by law, as well as warranty and maintenance bonds specified by the City Manager in the administrative regulations for public projects;
4. 
All city contracts for goods, services, and public projects must be approved as to form by the City Attorney or their designee, all bonds or security for public projects must be approved as to form by the City Attorney or their designee, and all insurance certificates must be approved as to form by the Risk Manager or their designee;
5. 
A signed original of each city contract for goods, services, and public works shall be filed with the city clerk's office, except for purchase orders that shall be filed in the Administrative Services Department as directed by the Administrative Services Director;
6. 
For operational efficiency and effectiveness, the City Manager or their designee may, in coordination with the City Attorney and Risk Manager, establish the conditions for the use of purchase orders or other efficient forms or methods of procurement in place of, or in addition to, duly signed written contracts, which conditions shall be reflected in the administrative regulations; and
7. 
When a city contract for goods, services, or a public project is funded by money the city receives through assistance, contract funding, grant funding, or other governmental sources provided by a county, regional, state, or federal government, then the procurement shall be conducted in accordance with mandatory applicable county, regional, state, and federal laws and regulations.
(Ord. 2159 § 3 (Exh. A), 2024)
For the purposes of this chapter, the following definitions shall apply:
A. 
"Administrative Services Director"
means the Administrative Services Director of the city who is the city's purchasing agent pursuant to LMC § 2.28.030.
B. 
"Amendment"
means any change to a contract.
C. 
"Best value"
means the best overall value to the city for goods, general services, and qualified professional services contracts based on all factors, including, but not limited to, the following:
1. 
Total cost;
2. 
The ability, capacity, and skill of the consultant, contractor, or vendor to provide the desired goods and services;
3. 
The ability of the consultant, contractor, or vendor to provide the desired goods and services promptly or within the time specified without delay or interference;
4. 
The character, integrity, reputation, judgment, experience, and efficiency of the consultant, contractor, or vendor;
5. 
The quality of the consultant, contractor, or vendor's performance on previous purchases or contracts with the city or requested references;
6. 
The consultant's demonstrated competence for qualified professional services contracts; and
7. 
The ability of the consultant, contractor, or vendor to provide future maintenance, repair, parts, and services for the use of the supplies purchased.
D. 
"Change order"
means an amendment to a public works contract that changes the contract's scope of work to be performed, the amount of time to complete the work, the compensation to be paid for materials, labor, or equipment, and other material terms, conditions, and aspects of work.
E. 
"Consultant"
means the party to a contract who is providing professional services to the city.
F. 
"Contract"
for the purpose of this chapter means any formal written agreement between the city and a consultant, contractor, or vendor that creates mutual obligations that are enforceable by law. The basic elements for a contract are mutual assent, a valid offer and acceptance, consideration, capacity, and legality. For the purposes of this chapter, the terms "contract" and "agreement" are synonymous, and the term "contract" includes, but is not limited to, a purchase order, blanket purchase order, contract for general services, contract for professional services, contract for maintenance, leasing agreement for personal property or equipment, letter agreement, memorandum of agreement, and an amendment to any of those documents. The term "contract" does not include memorandums of understanding that do not create mutual obligations that are enforceable by law.
G. 
"Contractor"
means the party to a general services contract who is providing general services to the city, and the party to a public works contract with the city for a public project.
H. 
"Demonstrated competence"
means the ability to apply, and prior experience applying, the knowledge and skills required to perform the critical functions specified in the scope of work for a professional services agreement.
I. 
"Emergency"
means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services as defined by California Public Contract Code Section 1102, and the conditions defined as an "emergency" in LMC § 2.56.020.
J. 
"General services"
means and includes any work performed or services rendered by an independent contractor, with or without the furnishing of materials, including but not limited to the following, but does not include work on a public project:
1. 
"Maintenance work"
as defined by California Public Contract Code Section 22002, as it may be amended from time to time, which includes all of the following:
a. 
Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes.
b. 
Minor repainting.
c. 
Resurfacing of streets and highways less than one inch.
d. 
Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.
e. 
Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher;
2. 
Repair, modification, and maintenance of city equipment and technology products;
3. 
Cleaning, analysis, testing, moving, removal or disposal (other than by sale) of city goods;
4. 
Providing other miscellaneous services to facilitate city operations;
5. 
Performing repair, demolition, or other work required to abate nuisances;
6. 
Licensing software;
7. 
Leasing of equipment and personal property for use by the city as set forth in LMC § 2.68.600; and
8. 
A maintenance agreement for equipment owned or leased by the city.
K. 
"Goods"
means and includes all such supplies, materials, equipment, personal property, and other items purchased for the city for its operations, but "goods" does not include items furnished for a public project. The term "goods" also includes equipment and personal property leased by the city as set forth in LMC § 2.68.600.
L. 
"Low bid"
means the bid with the lowest compensation amount proposed by a responsive bidder to a contract solicitation.
M. 
"Lowest responsive and responsible bidder"
means the bidder for a public works contract who submits a bid that conforms to the material requirements set forth in the city's solicitation document and who has also demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the work required.
N. 
"Professional services"
means the services of a specially trained and experienced person, firm, or corporation for special services in financial, economic, accounting, engineering, legal, and administrative matters within the scope of California Government Code Section 37103 as it may be amended from time to time, as well as similar services and other services, such as medical services, that require special training, experience, and educational certifications. "Professional services" shall also include contracts with providers of temporary personnel services.
O. 
"Public project"
means a public project as defined by California Public Contract Code Sections 20161 and 22002, as those statutes may be amended from time to time, and includes the following:
1. 
Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.
2. 
Painting or repainting of any publicly owned, leased or operated facility.
3. 
In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher.
P. 
"Public works contract"
means a city contract for a public project.
Q. 
"Qualified professional services"
means architectural, landscape architectural, engineering, land surveying, and construction management services that are covered by California Government Code Section 4525 et seq., as those statutes may be amended from time to time, and that are required to be procured on the basis of demonstrated competence and professional qualifications.
R. 
"Responsible bidder"
means a bidder for a public works contract who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience to satisfactorily perform the work required.
S. 
"Responsive bidder"
means a bidder for a contract for goods, services, or qualified professional services whose submitted bid conforms to the material requirements set forth in the city's solicitation documents.
T. 
"Single source"
means a consultant, contractor, or vendor of goods or services that are available from more than one source, but there is a compelling and justifiable reason, such as product standardization, to select a single consultant, contractor, or vendor.
U. 
"Sole source"
means a consultant, contractor, or vendor who, to the best of the city's knowledge based upon thorough research, is the only one capable of providing the city's required goods or services solicited for the city's needs and circumstances.
V. 
"Technology product"
means hardware, software, and communications equipment, as well as related equipment or goods that incorporate any such items.
W. 
"Vendor"
means the party to a contract who is selling goods, or leasing equipment or personal property, to the city.
(Ord. 2159 § 3 (Exh. A), 2024)
The Administrative Services Director shall oversee and facilitate compliance with this chapter and the corresponding administrative regulations, including:
A. 
Staying informed of current developments in the field of purchasing;
B. 
Staying informed of the procurement needs in the city's departments;
C. 
Prescribing and maintaining such forms as are reasonably necessary to the operation of this chapter and the purchasing policy;
D. 
Recommending updates to this chapter and making revisions to the administrative regulations, as needed;
E. 
Evaluating and recommending to the appropriate approval authority organization structures in city departments and divisions that optimize the procurement function; and
F. 
Coordinating the purchasing of goods and services that will be used by multiple city departments where feasible and practical.
(Ord. 2159 § 3 (Exh. A), 2024)
Each department head shall be aware of the procurement needs within their respective departments, and shall ensure that all city contracts for goods, services, and public projects for their respective departments are made in compliance with this chapter. The Community Development Director has the additional responsibility for ensuring the City Engineer complies with this chapter for public works contracts. Each department head shall ensure the persons preparing contracts for goods and services within their respective departments comply with the following:
A. 
Prepare solicitation materials, as needed, for each procurement;
B. 
Make a good faith estimate of the compensation amount for each procurement to determine the appropriate solicitation procedure;
C. 
Ensure that the proper solicitation procedure is followed based on the estimated compensation amount for the procurement;
D. 
Evaluate received bids or proposals in accordance with the selection criteria and process described in this chapter and the administrative regulations;
E. 
Ensure that each contract for goods and services is awarded consistent with the requirements in this chapter and the administrative regulations;
F. 
Ensure that sufficient funds are appropriated to pay the compensation amount specified in the contract;
G. 
Ensure that the consultant, contractor, or vendor selected for the contract award has obtained appropriate insurance certificates with endorsement meeting the contract requirements, as applicable, before the contract is signed for the city, and thereafter maintains appropriate insurance certificates at all times during the term of the agreement;
H. 
Ensure that the consultant, contractor, or vendor selected for the contract award has obtained an appropriate city business license before the contract is signed for the city, and thereafter maintains an appropriate business license all times during the term of the agreement;
I. 
Ensure that each contract for goods and services is signed by the consultant, contractor, or vendor before it is signed for the city;
J. 
Ensure that each contract for goods and services is signed for the city by a person or body with appropriate approval authority based on the contract's compensation amount;
K. 
Inspect goods, general services, equipment, and personal property delivered to the city to ensure their conformance with the contract specifications;
L. 
Inspect all equipment and personal property leased to the city to ensure it is in a fit and satisfactory condition for the city's use and is free from defect so that it may be safely used for its intended purpose;
M. 
Monitor the performance of consultant, contractor, or vendor under approved contracts to ensure compliance with contract requirements;
N. 
Recommend and prepare contract amendments as needed and ensure that the amendments are approved and signed by a person or body with appropriate approval authority, and that sufficient funds are appropriated to pay for the compensation specified by the amendment;
O. 
Ensure that due diligence is performed before preparing a written justification for submission to the Administrative Services Director requesting an exception pursuant to LMC § 2.68.360(B) to forgo an informal solicitation or a competitive purchase process for a sole source or single source contract in accordance with this chapter and the administrative regulations;
P. 
Take reasonable steps to avoid conflicts of interest in the purchasing process;
Q. 
Keep sufficient records of all departmental contracts and expenditures and ensure that such records are properly filed and stored in accordance with the city's records retention schedule; and
R. 
Submit reports to the Administrative Services Director showing all departmental supplies and equipment that are no longer used or have become obsolete or worn out so that the City Manager or their designee can transfer surplus or unused goods between departments, or sell, exchange, or trade in such supplies and equipment, if desired.
(Ord. 2159 § 3 (Exh. A), 2024)