Chapter 3.16
PURCHASING SYSTEM
Sections:
3.16.010 Adoption.
3.16.020 Centralized purchasing division.
3.16.030 Purchasing officer position established.
3.16.040 Authority and duties.
3.16.050 Estimates of requirements for using departments.
3.16.055 Leases.
3.16.060 Award of contracts—Supplies and services.
3.16.070 Requisitions.
3.16.080 Purchase orders.
3.16.090 Encumbrance of funds.
3.16.100 Informal competitive bid and small purchases.
3.16.110 Bids required—Exception.
3.16.120 Public projects—Exemption and informal bidding procedure.
3.16.130 Specifications.
3.16.140 Exemptions from centralized purchasing.
3.16.150 Competitive sealed bids.
3.16.160 Bidder’s security.
3.16.170 Performance bonds.
3.16.180 Contract execution.
3.16.190 Inspection and testing.
3.16.010 Adoption.
A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, services and equipment; to secure for the town supplies, services and equipment at the lowest possible cost commensurate with quality needed; to exercise positive financial control over purchases; to define clearly the authority for the purchasing function and to assure the quality of purchases. (Ord. 483 § 2 (part), 1994)
3.16.020 Centralized purchasing division.
There is created a centralized purchasing division within the finance department which is vested with the authority to purchase supplies, services and equipment. (Ord. 483 § 2 (part), 1994)
3.16.030 Purchasing officer position established.
There is created the position of purchasing officer, who shall be the town’s principal public purchasing official. The duties of the purchasing officer may be combined with those of any other office or position within the town. (Ord. 483 § 2 (part), 1994)
3.16.040 Authority and duties.
A. Duties. In accordance with this chapter, and subject to the approval of the city manager or his/her designee, the purchasing officer shall:
1. Procure or supervise the procurement of all supplies, services and equipment needed by the town;
2. Exercise general supervision and control over all inventories of supplies belonging to the town;
3. Recommend the transfer of surplus or unused supplies and equipment between departments or divisions as needed and the sale of all supplies and equipment which cannot be used by any department or division or which have become unsuitable for town use;
4. Negotiate and recommend execution of contracts for the purchase of supplies, services or equipment;
5. Discourage uniform bidding and endeavor to obtain full and open competition on all purchases;
6. Prescribe and maintain such forms as are reasonably necessary for the operation of this chapter and other rules and regulations;
7. Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications;
8. Prepare and recommend to the city manager rules governing the procurement of supplies, services and equipment, and keep informed of current developments in the field of purchasing prices, market conditions and new products;
9. Recommend the adoption of formal and informal purchase dollar limits which establish the methods of source selection and contract award;
10. Maintain a bidder’s list, vendors catalog file and records needed for the efficient operation of the purchasing department; and
11. Such other future duties as in the city manager’s discretion, are incidental and necessary to the conduct of the department.
B. Operational Procedures. Consistent with this chapter, and with the approval of the city manager or his/her designee, the purchasing officer may adopt operational procedures relating to the execution of his/her duties. (Ord. 483 § 2 (part), 1994)
3.16.050 Estimates of requirements for using departments.
All departments shall furnish such reports as the purchasing officer may require concerning usage, needs and stocks on hand, and the purchasing officer shall have authority to prescribe forms to be used by the departments in requisitioning, ordering and reporting of supplies, services and equipment. (Ord. 483 § 2 (part), 1994)
3.16.055 Leases.
All lease purchases and leases of personal property shall be subject to the requirements of this chapter. The requirements applicable to each lease shall be determined in accordance with the aggregate amount of contracted or projected lease payments, which shall be deemed equivalent to a purchase price. (Ord. 505 § 1, 1999)
3.16.060 Award of contracts—Supplies and services.
The city council shall establish the estimated value of service and supply contracts for which formal bidding is required. Any such contracts requiring a formal bid shall be awarded by the city council. The city manager is authorized to award contracts for services and supplies for which formal bidding is not required pursuant to Section 3.16.100. (Ord. 483 § 2 (part), 1994)
3.16.070 Requisitions.
Requests for supplies, services and equipment items over two hundred fifty dollars shall be submitted to the finance department by standard forms which may later be adapted to computerization. (Ord. 483 § 2 (part), 1994)
3.16.080 Purchase orders.
Procurement of supplies, services and equipment over seven hundred fifty dollars shall be made only by purchase order, or by written contract approved by the city manager.
Contract purchase orders shall be issued for supplies, services or equipment when the vendor has submitted a price quotation to hold pricing for a specified length of time; or a contract has been approved by the city council through formal bid procedures. Requisitions will not be required for payments if a contract exists. (Ord. 543 § 1, 2003; Ord. 538 § 1, 2002: Ord. 483 § 2 (part), 1994)
3.16.090 Encumbrance of funds.
The purchasing officer shall not issue any purchase order for supplies, services and equipment items unless there exists an unencumbered appropriation in the department where the purchase is charged. (Ord. 483 § 2 (part), 1994)
3.16.100 Informal competitive bid and small purchases.
Any purchase not exceeding the amount established for formal bid procedures in Section 3.16.150 shall be made in accordance with the informal bid and small purchase procedures authorized in this section. Purchase requirements shall not be artificially divided so as to avoid compliance with any provision of this section.
A. Small Purchases (up to $750). Purchase of supplies, service or equipment in this category can be obtained by soliciting a single vendor of choice. No requisitions or purchase orders are required.
B. Informal Verbal Purchases ($750—$5,000). The purchase of supplies, services or equipment in this category shall be obtained by soliciting no less than three verbal bids and written on a requisition unless otherwise provided for in Section 3.16.140. Such operation procedures shall provide for obtaining adequate and reasonable competition for the supplies, services or equipment being purchased.
C. Informal Written Purchases ($5,000—$15,000). No less than three vendors shall be solicited to submit written quotations for the purchase of supplies, services and/or equipment in this category. At times deemed necessary, verbal quotations will be accepted only when followed with written quotations. Award shall be made to the vendor offering the lowest acceptable quotation. The written quotation shall be recorded, attached to the requisition and maintained as a public record for no less than two years after the submission of the quotation.
D. Professional/Consultant Services ($5,000—$15,000). Services provided by independent contractors such as attorneys, architects, engineers and consultants on designs, studies of governmental operations, etc., or with specialized abilities will be obtained by requesting quotations (RFQ) from no less than three written bids. Award will be made for professional services based on demonstrated competence, professional qualifications, etc., rather than competitive bid. The written quotation shall be recorded, attached to the requisition/contract/agreement and maintained as a public record for no less than two years after the submission of the quotation.
E. Professional/Consultant Services (over $15,000). Departments contracting for professional services over fifteen thousand dollars shall write their specifications in a Request for Proposal (RFP). Selected professionals shall be interviewed to consider the experience and capability of each firm and/or individual. The contracting department shall request city council authorization to negotiate and return for council approval of the completed contract. All written bids will be retained in the town’s files for a period of one year after placing of order. (Ord. 543 § 1, 2003; Ord. 538 § 2, 2002; Ord. 483 § 2 (part), 1994)
3.16.110 Bids required—Exception.
A. Bidding may be dispensed with only when:
1. An emergency requires that an order be placed with the nearest source of supply;
2. When the amount of the purchase involved is less than seven hundred fifty dollars;
3. When the commodity or service can be obtained from only one vendor;
4. When used equipment can be acquired which meets the town’s needs at less cost than new equipment;
5. When participating in state and county cooperative contracts or utilizing other municipal government’s competitive bids;
6. When the services of attorneys, engineers, accountants or other specialized professionals are sought as approved by the city manager;
7. When the public interest may otherwise require that bidding be dispensed with; provided, that the city council shall approve of the purchase by majority vote and indicate the reasons bidding was dispensed with;
8. When the city manager makes similar findings for contracts with a value of less than fifteen thousand dollars.
B. In no event shall bidding be dispensed with when required by federal or state law. (Ord. 483 § 2 (part), 1994)
3.16.120 Public projects—Exemption and informal bidding procedure.
This chapter does not apply to “public projects” as the same are defined in the Public Contract Code, except where the town elects to undertake a project under the Uniform Public Construction Cost Accounting Act (Section 22000 et seq. of the Public Contract Code) and in accordance with the limits listed in Section 22030 of the Public Contract Code, it may be let to contract by informal procedures as set forth in Section 22032 et seq. of the Public Contract Code when implemented in accordance with the following informal bidding procedures:
A. Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.
B. Notice Inviting Informal Bids. Where a public project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection A of this section, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids; provided, however:
1. If there is no list of qualified contractors maintained by the town for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission.
2. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
C. Award of Contracts. The city manager is authorized to award contracts resulting from informal bids that are under the limit requiring formal bidding for supplies and services set by the city council pursuant to Section 3.16.060. Contracts which exceed this limit shall be awarded by the city council. (Ord. 530 § 1, 2002: Ord. 483 § 2 (part), 1994)
3.16.130 Specifications.
All specifications shall be drafted so as to promote overall economy for the purposes intended and encourage competition in satisfying the town’s needs, and shall not be unduly restrictive. The policy enunciated in this section applies to all specifications including but not limited to those prepared for the town by architects, engineers, designers and draftsmen. (Ord. 483 § 2 (part), 1994)
3.16.140 Exemptions from centralized purchasing.
With the approval of the city manager, the purchasing officer may delegate authority to procure services to department heads, but it shall be required that such purchases or contracts be made in conformity with the procedures established by this chapter. (Ord. 483 § 2 (part), 1994)
3.16.150 Competitive sealed bids.
A. Conditions for Use. All contracts for town supplies, services and equipment over fifteen thousand dollars unless as otherwise provided in Section 3.16.110, and public works projects over five thousand dollars as defined in the Public Contract Code, shall be awarded by competitive sealed bidding.
B. Invitations for Bids. An invitation for bids shall be issued and shall include specifications, and all contractual items and conditions applicable to the procurement.
C. Public Notice. Adequate public notice of the invitation for bids shall be given a reasonable time, not less than ten working days prior to the date set forth therein for the opening of bids. Such notice may include publication in a local newspaper of general circulation, or posted in three designated places for posting public notices, a reasonable time prior to bid opening. The public notice shall state the place, date and time of bid opening.
D. Bidder’s List. The purchasing officer shall issue invitations for bids to all responsible prospective bidders whose names are on the bidders’ list or who have requested their names be added thereto.
E. Bid Opening. Sealed bids shall be opened publicly by the finance director or designee in the presence of one or more witnesses at the time and place specified in the invitation for bids. The amount of each bid, and such other relevant information as the purchasing officer deems appropriate, together with the name of each bidder shall be recorded; the record and each bid shall be open to public inspection, during regular business hours, for a period of not less than thirty calendar days after the bid opening, but shall not be otherwise retained so as to constitute a public record.
F. Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted without alteration or correction. Bids shall be evaluated based on the requirements set forth in the invitation for bids. The town retains its right to waive minor irregularities in the bid. No criteria may be used in bid evaluation that are not set forth in the invitation for bids.
G. Tie Bids. If two or more bids are for the same total amount or unit price, quality and service being equal, if the public interest will not be served by readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.
H. Rejection of Bids. In its sole discretion the city council may reject any and all bids presented and readvertise for bids.
I. Award of Bid. The contract shall be awarded with reasonable promptness by forwarding a purchase order to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
J. Storage of Sealed Bids. All opened bid materials, after award, are to remain in the possession of the city clerk for the time prescribed by law. (Ord. 483 § 2 (part), 1994)
3.16.160 Bidder’s security.
When deemed necessary by the city manager or his/her designated representative, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the town is responsible for the delay. The city council may, on refusal or failure to execute the contract, award it to the next lowest responsible, responsive bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the town to the difference between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (Ord. 483 § 2 (part), 1994)
3.16.170 Performance bonds.
The town shall have authority to require a performance bond of the successful bidder before entering into a contract pursuant to an award in such an amount as it shall find reasonably necessary to protect the best interests of the town. The amount and form, whenever possible, shall be set forth in the notice inviting bids. (Ord. 483 § 2 (part), 1994)
3.16.180 Contract execution.
The mayor or city manager is authorized to sign and enter into contracts on behalf of the town. The city manager alone is authorized to sign contracts and agreements when the total value of the contract is less than fifteen thousand dollars. No other employee is authorized to sign a contract binding the town and any contract so signed is void. (Ord. 483 § 2 (part), 1994)
3.16.190 Inspection and testing.
The supplies and equipment delivered, and contractual services performed, shall be inspected to determine their conformance with the specifications set forth in the order or contract. The city manager, or his/her designated representative, shall have the authority to request professional service, or to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. 483 § 2 (part), 1994)