The purpose of this chapter is to:
A. 
Provide for the authority of certain city employees to enter into contracts and to set forth procedural requirements; and
B. 
Establish efficient procedures for the purchase of goods and general services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases. (Reference: Government Code sections 54201 through 54205.)
C. 
This chapter does not apply to public works construction contracts (see PHMC Chapter 11.10), to contracts concerning real property, franchise agreements or to labor contracts with city employees.
(Ord. 807 § 1, 2005)
Following are the major types of purchases and contracts governed by this chapter.
A. 
Goods. Goods includes tangible goods, supplies, equipment, vehicles, materials, printing and insurance. An employee purchasing goods shall comply with the requirements in PHMC § 5.10.060. If the purchase of goods and general services are combined in one transaction, the requirements of a general services contract apply.
B. 
Services. There are two types of service contracts, each defined in PHMC § 5.10.030, with separate requirements applying to each:
1. 
General services contracts. An employee obtaining general services shall comply with the requirements in PHMC § 5.10.070.
2. 
Professional services contracts. A professional services contract includes services by architects, accountants, attorneys, engineers, planners, environmental consultants, technicians, and similar services. An employee obtaining professional services shall comply with the requirements in PHMC § 5.10.110.
(Ord. 807 § 1, 2005)
For the purposes of this chapter, the following definitions apply:
Best value
means the best value to the city based on all factors, including: cost; contractor's ability, capacity or skill; ability to perform within the time required; character, integrity, reputation, judgment, experience and efficiency; quality of contractor's performance on previous purchases or contracts, if applicable; and the ability of the contractor to provide future maintenance, repair, parts and services, if necessary.
Contract and agreement
are synonymous. They include, but are not limited to, a purchase order, a contract for services, an addendum or change order, a letter agreement or a memorandum of understanding.
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. (This does not include a self-created emergency resulting from delay or inaction.)
Goods
includes tangible goods, supplies, equipment, vehicles, materials, printing and insurance.
Public project
means (1) construction, reconstruction, erection, alteration, renovation, improvement, demolition or repair work involving any publicly owned, leased, or operated facility; or (2) painting or repainting of any publicly owned, leased or operated facility. Public project does not include maintenance work: (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one inch thickness; or (4) landscape maintenance. (Public Contract Code section 22002.)
Services
involve the furnishing of labor, time or effort by an independent contractor who is specially trained to perform the services.
A. 
General services
includes any work performed or services rendered, with or without the furnishing of materials, including, but not limited to:
1. 
Repair, modification and maintenance of city equipment;
2. 
Licensing software;
3. 
Repair, modification and maintenance of software;
4. 
Cleaning, analysis, testing, moving, removal or disposal of city supplies and equipment (other than by sale);
5. 
Providing temporary personnel services which are not professional services;
6. 
Performing repair, demolition or other work required to abate a nuisance;
7. 
Leasing or rental of equipment, and related maintenance agreements;
8. 
Maintenance work on city property including: (a) routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes; (b) minor repainting; (c) resurfacing of streets and highways at less than one inch; or (d) landscape maintenance. General services does not include work defined as a public project. (See PHMC Chapter 11.10.)
B. 
Professional services or consultant services
means the services of an attorney, architect, accountant, financial consultant, planning or environmental consultant, investment advisor, bank or trustee officer, or other professional.
(Ord. 807 § 1, 2005)
The finance director is authorized to implement this chapter. This implementation includes, among other things, the preparation and circulation of purchasing procedures.
(Ord. 807 § 1, 2005)
The city manager, or his or her designee, is authorized to enter into and sign on behalf of the city the following contracts. At the discretion of the city manager, any contract may be submitted to the city council for its approval.
A. 
Goods and services contracts. A purchase or contract for goods or services if funds have been appropriated in the budget. The manager may also enter into change orders or amendments which, cumulatively, do not exceed 20% of the original contract price.
B. 
Professional services contracts. A purchase or contract for professional services for up to $25,000 if funds have been appropriated in the budget. The manager may also enter into change orders or amendments which, cumulatively, do not exceed 20% of the original contract price.
C. 
Contracts with no cost to the city. Contracts which have no cost to the city, including:
1. 
Community services. Contracts for community, social or recreational services, or for the use of city property or facilities, in accordance with established administrative guidelines, which require no payment of money by the city or which provide for payment of money to the city in an amount not in excess of $50,000 under each contract.
2. 
Professional services contract paid for by developer. Contracts for professional services in an amount up to $100,000 if (a) a developer has deposited the full amount of the contract into a trust fund account (or made a deposit with a written promise to pay the balance when due), and (b) the funds are to be used for a city-managed professional services contract, such as an environmental impact report.
3. 
Public agencies and utilities. Contracts with public agencies or public utility companies regarding construction or use of public improvements or utility facilities, which require no payment of money by the city or which provide for payment of money to the city in an amount not in excess of $50,000 under each contract.
4. 
Other. Any other contract when there is no cost to the city.
D. 
Settlement agreements. Agreements documenting the settlement of litigation against the city for an amount not to exceed $20,000, in consultation with the city attorney.
E. 
Emergency contracts. In an emergency endangering the lives, property or welfare of the people of the city or the property of the city, the city manager may authorize the expenditure of any unencumbered moneys in the emergency reserve fund, notwithstanding the fact that such moneys may not have been appropriated for such purpose, to the extent that other moneys have not been appropriated or are otherwise unavailable. (See also PHMC § 11.10.100 regarding public projects in an emergency.)
(Ord. 807 § 1, 2005)
Purchasing goods and services from local vendors is desired because it stimulates the local economy, recognizes that our local vendors are valued members of our community, and provides additional sales tax revenue to the city. If factors such as quality, previous performance, and availability are substantially equal among vendors, a vendor whose business is located in Pleasant Hill shall be awarded a contract if his or her quote or bid is within 5% of the low bid (including shipping costs).
(Ord. 835 § 2, 2008)