In order to establish efficient procedures for the purchase of goods 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 and to assure the quality of purchases, a purchasing system is adopted.
(Ord. 81-455 § 1; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
A. 
The Charter of the city of Fortuna, Article IV, Section 400, Public Works, provides in part: "The City shall have the power to establish standards, procedures, rules or regulations to regulate all aspects of the bidding, award and performance of any public works contract, including, but not limited to, the compensation rates to be paid for the performance of such work." In addition, Article IV, Section 401, Purchasing, provides: "The city shall have the power to establish standards, procedures, rules, or regulations related to the purchasing of goods, property, or services."
B. 
Force Account Construction Work. As authorized by City Charter Section 400, Public Works, the city of Fortuna hereby exercises the right granted by the voters to establish force account limits for public works projects. No limit is established for work performed by city employees and the city has the right to complete part of a project with its own employees and bid part of a project, or bid the entire project.
C. 
Definitions. The following definitions apply to this chapter:
"General services"
are services other than professional services or services provided under a public works contract, as defined below, including, but not limited to, services for maintenance of city property; repair of goods; information technology services including installation and maintenance; landscape maintenance; janitorial services; tree-trimming; street sweeping; power washing; and instructors or service providers for recreational programs.
"Goods"
means supplies and equipment.
"Professional services"
are services that involve the exercise of discretion and independent judgment based on specialized training and experience, including, but not limited to, services provided by accountants, actuaries, auditors, appraisers, architects, attorneys, construction managers, engineers, environmental advisors, financial advisors, information technology experts, expert instructors, land surveyors, landscape architects, and land use planners.
"Public works contract"
means an agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.
(Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
The city manager shall act as purchasing agent for the city. The city manager may delegate any of the powers and functions of the purchasing agent to any other officer or employee of the city. The purchasing agent shall have the authority and duty to:
A. 
Purchase or contract for goods and services required by any city department or agency in accordance with purchasing procedures prescribed herein, such administrative regulations as the purchasing agent may adopt and such other rules and regulations as may be prescribed by the city council or city manager, at all times endeavoring to obtain as full and open competition as possible on all purchases;
B. 
Oversee procurement, including negotiation when applicable, and recommend execution of contracts for the purchases of goods and services;
C. 
Act to procure for the city the needed quality in goods and services at least expense to the city, subject to the terms of this chapter;
D. 
Require compliance with applicable laws and grant funding conditions;
E. 
Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
F. 
Prescribe and maintain such procurement and contract templates as reasonably necessary to conform to the requirements of this chapter and other laws and regulations;
G. 
Supervise the inspection of all goods and services purchased to ensure conformance with the applicable request, specifications, or scope;
H. 
Administer the transfer of surplus property between departments as needed, or sell, or otherwise dispose of such surplus property;
I. 
Oversee the operation of all storerooms for the storage of common use items to ensure the safe keeping and proper storage and handling of all supplies and equipment therein;
J. 
Maintain a bidder's list for public works contracts, vendor's catalogue file and other records used in modern procurement operations.
(Ord. 81-455 § 2; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
Except as otherwise provided in this chapter, all purchases and contracts for goods of any value shall be accomplished either by or through the purchasing agent.
A. 
Requisitions. City departments and agencies must submit requests for goods to the purchasing agent by standard requisition forms.
B. 
Purchase Orders. A purchase order must be issued for each purchase of goods.
C. 
Encumbrance of Funds. Except in cases of emergency, as determined pursuant to FMC § 2.50.070(A), the purchasing agent may not issue any purchase order for goods unless there is an appropriation in the fund account against which such purchase is to be charged.
D. 
Request for Quotes. For a purchase of goods that are valued over $5,000, an informal request for quotes may be submitted to three or more appropriate vendors from the vendors catalogue file or as otherwise approved by the purchasing agent. The request for quotes must include a general description of the goods, the required quantity, and any other applicable requirements, such as delivery instructions or time for delivery in order to ensure a fair comparison of pricing from separate vendors.
E. 
Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a purchase of goods up to $100,000. A purchase of goods above that amount must be authorized by the city council.
(Ord. 81-455 § 3; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
Public works contracts are subject to the applicable provisions of the Public Contract Code except as specified in this chapter, as authorized by the Charter of the city of Fortuna.
A. 
Bid Thresholds. Except as otherwise provided in this chapter, the bid thresholds established pursuant to the California Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) (CUPCCAA) as set forth in Public Contract Code Section 22032, as may be amended from time to time, will apply to determine the applicable bidding requirements as set forth below. Notwithstanding that the city has elected to index bid thresholds for public works contracts to the current thresholds approved under CUPCCAA, the city has not elected to be subject to CUPCCAA and none of the CUPCCAA requirements will be construed to apply to the city.
1. 
Public works contracts that are valued at or less than the amount set forth in Public Contract Code Section 22023(a) may be procured by negotiated contract following an informal request for quotes from at least three qualified contractors, as practicable.
2. 
Public works contracts that are valued over the amount set forth in Public Contract Code Section 22023(a), but not more than the amount set forth in Public Contract Code Section 22023(b), are subject to the informal bid procedures set forth below.
3. 
Public works contracts that are valued over the amount set forth in Public Contract Code Section 22032(c) are subject to the formal bid procedures set forth below.
B. 
Formal Bid Procedures.
1. 
Using the bid document forms approved by the purchasing agent, a notice inviting bids must be prepared to include a general description of the project, the required contractor license classification, information for obtaining the project plans and specifications, the time and place for opening of bids, and any other requirements required by law, including Labor Code requirements. The purchasing agent may solicit sealed bids from qualified contractors by one or more of the following: (a) publishing the notice inviting bids in a newspaper of general circulation, (b) submitting the notice inviting bids for publication in local or regional construction trade journals, (c) posting the notice inviting bids on the city website, or (d) by transmitting the notice inviting bids to qualified contractors on the bidders' list. The notice inviting bids must be published, submitted, or transmitted at least 14 days before the bid opening date.
2. 
The bid documents must require each bidder to submit with its bid, bid security equal to 10 percent of the bid amount and made payable to the city, in the form of a bidder's bond, in a form approved by the purchasing agent, executed by an admitted surety; or a certified check or cashier's check. The city council or purchasing agent may, on refusal or failure of the successful bidder to execute the contract or to supply the required payment and performance bonds, award it to the next lowest responsible bidder. If the city council 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 surety if a bidder's bond is used or to the lowest bidder if a check is used.
3. 
Unless the bid documents require electronic submission of bids, sealed bids must be submitted to the purchasing agent and must be identified as bids on the envelope. Bids will be opened in public at the time and place stated in the public notice. A tabulation of all bids received will be opened for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. No bids will be accepted after the specified date and time for bid opening, which is subject to amendment only by addenda.
4. 
The bids shall be submitted to the purchasing agent, who has the discretion to waive any immaterial irregularities as permitted under California law. The city council, or the purchasing agent, may approve a contract with the lowest responsible bidder, or reject all bids.
5. 
If two or more bids received are for the same total amount, the city council or purchasing agent may accept one of them or accept the lowest bid following negotiations with the tied bidders after the bid opening.
C. 
Informal Bid Procedures. The informal bid procedures are identical to the formal bid procedures in this chapter except that the notice inviting bids may be issued 10 days before the bid opening date.
D. 
Request for Quotes. For public works contracts that are valued below the threshold for informal bid procedures, as authorized by the purchasing agent, an informal request for quotes may be issued via email to three or more qualified contractors, including, but not limited to, contractors on the bidders list. The request for quotes must include a general description of the project, the required contractor license classification, information for obtaining the project plans and specifications (if applicable), and any other requirements required by law, including Labor Code requirements if applicable. Alternatively, the purchasing agent may authorize direct negotiations with a qualified contractor on the bidders list.
E. 
Payment and Performance Bonds. For any public works contract valued over $25,000, before commencing any work, the contractor must provide a payment bond in conformance with Civil Code Section 9554, as may be amended from time to time, and a performance bond guaranteeing completion of the work under the terms of the contract, each provided for 100 percent of the total amount payable under the contract, and each issued by an admitted surety on bond forms provided by or acceptable to the purchasing agent.
F. 
Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a public works contract up to $100,000. Any public works contract above that amount must be authorized by the city council.
(Ord. 81-455 § 4; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
A. 
Architectural and Engineering Services. Pursuant to Government Code Section 4529.10 et seq., all contracts for architectural, landscape architectural, environmental, engineering, land surveying, and construction project management services will be procured pursuant to a fair, competitive selection process which prohibits city employees from participating in the selection process when they have a financial or business relationship with any private entity seeking the contract, and the procedure must require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities. A request for proposals, which may include a request for qualifications, must be used for those professional services subject to Government Code Section 4529.10 et seq. While cost may be considered as a factor, the basis for award may include other considerations as well, including relevant qualifications and experience. Award must be based on the factors stated in the request for proposals. Notwithstanding the foregoing, if such services are funded in whole or in part by grant funding that requires specific procurement requirements such as qualifications-based selection, procurement and award must comport with the applicable grant funding requirements.
B. 
Other Professional Services. For all other professional services, for agreements valued up to $75,000, the purchasing agent may directly negotiate the terms of the agreement with a service provider deemed to provide the best value for the city, based on the service provider's qualifications, experience, references or performance history, and cost. For agreements valued over $75,000, the professional services must be procured pursuant to a request for proposals that includes a request for qualifications. Cost may be considered as a factor, but the basis for award may include other considerations as well, including relevant qualifications and experience. Award must be based on the factors stated in the request for proposals.
C. 
Authorization. Except as expressly authorized by the city council, the purchasing agent has authority to approve a contract for professional services up to $100,000. Any contract for professional services above that amount must be authorized by the city council.
(Ord. 81-455 § 5; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
When the city council or city manager authorize the hiring of general services for which standard specifications cannot be drawn due to the nature of the service, such as, but not limited to, maintenance; janitorial; landscape maintenance; technology installation, maintenance, or repair; or recreational instructional services, the city manager may negotiate with qualified providers for the authorized service when the value of the contract does not exceed $75,000. For general services contracts over $75,000, an informal request for proposals must be issued to solicit proposals from at least three qualified service providers, whenever practicable. When the value of any agreement for general services is greater than $100,000, the contract or purchase order may not be executed unless it is approved by the city council.
(Ord. 81-455 § 6; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
Purchases of goods and services subject to formal or informal bid procedures pursuant to this chapter may be exempted from bid procedures under the following circumstances:
A. 
In case of an emergency as determined by the city manager or, in his or her absence, the acting city manager, pursuant to FMC § 2.08.160. The city manager shall be advised of such emergency purchase as soon as practicable;
B. 
When the goods or services can be obtained from only one vendor or provider;
C. 
When the city has entered or may enter into a contract with another governmental entity to purchase a particular item on a cooperative basis;
D. 
When the city council finds that direct negotiations with a qualified vendor or provider will best serve the city due to the nature of the goods or services.
E. 
When alternative procurement methodology, including, but not limited to, design-build, progressive design-build, or construction-manager-at-risk has been authorized by the city council for a public works contract.
(Ord. 81-455 § 7; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
No purchase or contract for any goods or services may be made contrary to the provisions of this chapter. No contract or purchase may be subdivided or split to avoid any of the provisions of this chapter. All purchases for goods or services must be memorialized in writing by a written agreement in a form approved by the city attorney, or by purchase order as authorized by the purchasing agent.
(Ord. 81-455 § 8; Ord. 97-611 § 2; Ord. 2025-777 § 3 (Exh. A))
Pursuant to Labor Code Section 1782, contracts for city-funded public works construction projects valued in excess of $25,000, and contracts for city-funded alteration, demolition, repair or maintenance projects valued in excess of $15,000, are subject to payment of prevailing wages and compliance with all applicable requirements of Article 2 of Chapter 1, of Part 7, of Division 2 of the California Labor Code beginning at Section 1770, as may be amended from time to time, including, but not limited to, requirements for contractor and subcontractor registration with the Department of Industrial Relations (DIR) pursuant to Labor Code Section 1771.1; notice of award to the DIR pursuant to Labor Code Section 1773.3; and DIR payroll submission requirements pursuant to Labor Code Section 1771.4.
(Ord. 97-607 § 2; Ord. 97-611 § 2; Ord. 2012-695 § 1; Ord. 2014-716 § 2; Ord. 2025-777 § 3 (Exh. A))