Each transaction for the purchase of goods shall conform with this section and with the procedural requirements in PHMC §§ 5.10.080 through 5.10.100.
A. 
Requirements. An employee purchasing goods shall make appropriate use of purchase orders, request for proposals, notice inviting sealed bids, vendor letters, credit card purchases, petty cash, or a combination of them, under the city's purchasing policy. (See PHMC §§ 5.10.080 through 5.10.110.)
B. 
Keeping records of purchase transactions. Each employee purchasing goods shall keep records of the purchase as required by his or her department. When quotations, request for proposals or notice inviting sealed bids is required, those records shall be kept in the department responsible for the transaction.
C. 
Leasing. Leasing of equipment shall be in accordance with PHMC §§ 5.10.080, 5.10.090 or 5.10.100, depending upon the cost of an annual lease. Each contract for the leasing or rental of equipment for the city shall contain a provision permitting the city to terminate the contract at the end of any fiscal year during the term of the contract upon not less than 30 days' written notice to the other party. (Cal. Const. art. XVI § 18.)
(Ord. 807 § 1, 2005)
Each contract for general services shall conform to the following procedural requirements:
A. 
Requirements. An employee contracting for general services shall make appropriate use of purchase orders, request for proposals, notice inviting sealed bids, vendor letters, credit card purchases, petty cash, or a combination of them, under the city's purchasing policy. (See PHMC §§ 5.10.080 through 5.10.100.)
B. 
Service contract. The employee purchasing general services shall obtain written confirmation of: the contractor's license number (when applicable), automobile and general liability insurance coverage, workers' compensation insurance, and a city business license.
A written agreement is required for services of $10,000 or more. Each general services contract must: (1) be in writing, (2) be signed by an employee having the authority to sign (See PHMC § 5.10.050); (3) include appropriate insurance and indemnification provisions; and (4) be approved as to form by the city attorney, either individually or by approval of a standard form.
C. 
Keeping original contracts. A signed original of each general services contract entered into must be kept by the department handling the contract matter for as long as the contract is in effect, plus three years.
D. 
Indemnity and insurance. A contractor engaged in services on city property shall hold the city harmless, and maintain commercial general liability, automobile and workers' compensation insurance in the amounts and form determined by the city attorney. The department handling the general services matter is responsible for reviewing and monitoring insurance requirements, both initially and during the term of the contract.
E. 
Keeping records of purchase transactions. Each employee purchasing services shall keep records of the purchase as required by the city's purchasing policy and by his/her department. When quotations, a request for proposals or notice inviting sealed bids is required, those records shall be kept in the department responsible for the transaction.
(Ord. 807 § 1, 2005)
A. 
Quotation. A department may purchase goods or general services of a value of up to $50,000 (in a one-year period) according to the following procedures.
Whenever possible and practical, the purchase shall be based on at least three quotations. The department shall solicit quotations by written request (including facsimile or electronic mail) or by telephone to prospective vendors. The department shall keep a record of all orders and quotes for a period of one year after the submission of quotes or placing of orders.
For a purchase of up to $10,000, the quotations may be verbal or written. For a purchase in an amount between $10,000 and $50,000, the quotations shall be written (including facsimile and electronic mail). The department shall award the contract to the quotation representing the best value as defined in PHMC § 5.10.030. If no bid, or no responsive bid, is received after inviting quotations under this section, the department head may, with the city manager's approval, proceed to hire or have services performed or purchase the goods in the open market.
B. 
Exceptions. The quotation procedure under this section may be dispensed with under any exception set forth in PHMC § 5.10.100.
(Ord. 807 § 1, 2005)
A. 
Bidding procedures. A department shall purchase goods or general services for more than $50,000 (in a one-year period) by the formal bid procedures prescribed in this section.
1. 
Notice. The notice inviting bids shall include a general description of the articles or general services to be purchased; state where bid forms and specifications may be secured; and state the final time and place for submitting bids. The notice shall be published 10 days before the bid opening date at least once in a newspaper of general circulation. The department shall also solicit sealed bids from responsible prospective suppliers.
The department may require bidders' security or a performance bond, or both, and that requirement shall be included in the notice. A bidder is entitled to the return of bid security upon execution of the contract or upon the readvertisement for bids. A successful bidder forfeits the bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the city is responsible for the delay.
2. 
Bid opening procedure. Bidders shall submit sealed bids to the department director, and shall identify them as bids on the envelope. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
In his or her discretion, the department director may reject any and all bids presented, and may readvertise for bids. If no bid, or no responsive bid, is received after inviting bids under this section, the department director may, with the city manager's approval, proceed to hire or have services performed or purchase the supplies in the open market.
3. 
Award of contract. The department director shall award the contract to the bid representing the best value as defined in PHMC § 5.10.030. The basis upon which the award is made shall be in writing.
B. 
Exceptions. The bidding procedure under this section may be dispensed with under any exception set forth in PHMC § 5.10.100.
C. 
No splitting. Splitting the purchase of goods or general services into smaller orders for the purpose of evading the competitive bidding provisions of this section is not permitted.
(Ord. 807 § 1, 2005)
The department may dispense with quotation or bidding procedures for purchasing goods or general services in any of the following circumstances:
A. 
Emergency. In an emergency situation as defined in PHMC § 5.10.030.
B. 
Sole or limited source. Occasionally, required goods are unique, of a proprietary nature, or of specific design or construction. Examples include hardware, software or communications equipment. In these cases, quotation or bidding procedures could be meaningless. The department shall keep a written record of the basis for this determination.
C. 
Cooperative purchasing. If such purchases are based on an agreement or cooperative purchasing program entered into by any of the following, regardless of whether the city is a named party to the agreement or an actual participant in such a program: (1) any public agency situated within the state, if the underlying purchase was made using quotation or bid procedure substantially similar to the city's; or (2) the California Multiple Award Schedules (CMAS); or (3) the federal Government Services Administration (GSA) Cooperative Purchasing Program.
D. 
Other. Where goods or general services are purchased through negotiations. This exception applies when the purchase is for: (1) a specialized technology product; (2) an addition to, or repair or maintenance of, existing equipment which can be more efficiently added to, repaired or maintained by a particular company or manufacturer; or (3) equipment which must be compatible with existing equipment, by reason of the training of the personnel or an inventory of existing replacement parts kept by the city.
The affected department head shall state in writing the basis for a determination that this section applies.
(Ord. 807 § 1, 2005; Ord. 860 § 1, 2012)