Chapter 3.16
PURCHASING

Sections:

3.16.010    Adoption of purchasing system.

3.16.015    Scope of purchasing policies and procedures.

3.16.020    Definitions.

3.16.030    Purchasing officer.

3.16.040    Centralized purchasing.

3.16.050    Inspection and testing.

3.16.060    Appropriation of purchasing funds.

3.16.070    Purchase orders.

3.16.080    Purchase/procurement cards.

3.16.100    Procurement of goods and supplies, equipment, materials, and nonprofessional services—Open market.

3.16.110    Procurement of goods and supplies, equipment, materials, and nonprofessional services—Informal procedure.

3.16.120    Procurement of goods and supplies, equipment, materials, and nonprofessional services—Formal procedure.

3.16.130    Best qualified vendor.

3.16.140    Exceptions to purchasing requirements.

3.16.150    Staging prohibited.

3.16.160    Amendments and change orders.

3.16.170    Leases.

3.16.180    Trade-ins.

3.16.200    Professional services contracts.

3.16.210    Amendments to professional services contracts.

3.16.220    Donated goods and supplies, equipment, materials, professional and nonprofessional services.

3.16.230    Public works projects—Uniform Construction Cost Accounting.

3.16.240    Requirements for contracting public works projects.

3.16.250    Informal bidding procedures for public works projects.

3.16.260    Approval of public works contracts pursuant to informal bidding procedures.

3.16.270    Approval of change orders on public works contracts.

3.16.280    Public works project bids in excess of maximum authority.

3.16.300    Surplus supplies and equipment.

3.16.310    Surplus supplies and equipment—Trade-ins.

3.16.320    Surplus supplies and equipment—Sale.

3.16.330    Surplus supplies and equipment—Donation.

3.16.340    Surplus supplies and equipment—Scrap.

3.16.350    Exemptions to provisions of this chapter.

3.16.010 Adoption of purchasing system.

This purchasing system is adopted in order to establish efficient regulations, policies, and procedures for the purchase of goods and supplies, equipment, materials, and services, to secure on behalf of the town at the lowest possible cost commensurate with quality needed and in a manner that ensures a fair and competitive process, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, to assure the quality, suitability, and fitness of purchases, and to ensure that the town obtains the highest quality of supplies and equipment and level of service at a fair and reasonable cost. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.015 Scope of purchasing policies and procedures.

Except as otherwise provided herein, the procurement regulations, policies, and procedures set forth in this chapter shall apply only to the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services, and shall apply to public works projects, as defined in Section 22002 of the California Public Contract Code. This purchasing system implements the California Government Code: Sections 54201 to 54205. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.020 Definitions.

As used in this chapter, the following terms shall have the meanings indicated, which are applicable to both the singular and plural thereof:

“Approved bidders’ list” means the list of approved qualified contractors or service providers for a specific good or service. The list may contain both locally qualified providers as well as suppliers of state and local agencies that have previously bid and established contracts for goods or services pursuant to California Public Contract Code Sections 12100 through 12113. The list also provides the approved offerings of specific products provided by these contractors.

“Best value” means a value determined by objectives relative to price, features, functions, and life-cycle costs.

“Cost” means the amount charged, inclusive of sales tax, use tax, delivery charges, shipping and/or handling.

“Emergency” means a sudden, unexpected occurrence that poses a clear and eminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

“Estimated value” means the estimated total value as determined by the purchasing officer at the beginning of the procurement process for the proposed acquisition of goods and supplies, equipment, materials, and nonprofessional services. When making this initial threshold determination, the purchasing officer shall make reasonable use of all available market data and pricing information to estimate the total cost to the town, inclusive of taxes, licenses, freight charges, installation charges, fees, and other consideration, for the proposed procurement. The purchasing officer shall not use the value of any anticipated exchange or trade-in amount to reduce the estimated value of the proposed procurement.

“Force account” means construction or maintenance activities performed by a municipality’s own personnel and equipment, rather than by outside labor or contract.

“Goods and supplies, equipment, and materials” means fixed, movable, disposable, and/or reusable products, commodities, or items used by the town, including but not limited to office supplies, program supplies, subscriptions, vehicles, fuel and vehicle supplies, tools, computers, computer hardware and software, computer-related equipment and copiers, office furniture, and fixtures.

“Maintenance” work means:

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 at 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 or waste disposal systems.

“Nonprofessional services” means construction services for public works projects or those services not constituting professional services.

“Professional services” means any service which is generally characterized as a “profession” rather than a “business,” “industry,” “occupation” or “trade” under California State law. Without limiting the foregoing, the following types of services shall be included within the definition of “professional services” under this chapter: accounting; architecture; auditing; business appraisal or valuation; construction project management; construction management and inspection; engineering; environmental; financial planning; insurance; land surveying; landscape architecture; landscape engineering; legal; medical; municipal planning; public housing; real estate appraisal; and real estate brokerage or sales. Moreover, the provision of consulting services with respect to, rather than the actual performance of, any of the foregoing services shall also be deemed “professional services” for purposes of this chapter.

“Purchase” means the renting, leasing, purchasing, licensing, or a trade of equipment or supplies. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.030 Purchasing officer.

There is hereby created the position of purchasing officer. The purchasing officer shall be responsible for, and have general supervision of, the following purchasing functions as implemented by various departments throughout the town pursuant to this chapter and any implementing administrative orders established by the purchasing officer. The purchasing officer shall be the city manager or his or her designee, unless a formal purchasing officer position is created, whereby the role cannot be further delegated, except back to the city manager. Pursuant to the regulations, policies, and procedures established in this chapter, the purchasing officer shall have the authority to:

A. Purchase or contract for goods and supplies, equipment, materials, and professional and nonprofessional services, including preparation and circulation of requests for proposals, requests for qualifications, and other similar requests for submission of bids or proposals;

B. Negotiate, approve, and execute, as well as recommend approval and execution of, orders and contracts for the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services;

C. Act to procure on behalf of the town the needed quality in goods and supplies, equipment, materials, and services at the least expense to the town;

D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

E. Prepare administrative rules, procedures, and orders necessary to implement the policies and procedures established by this chapter with regard to the purchase of goods and supplies, equipment, materials, and services on behalf of the town;

F. Keep informed of current developments in the field of municipal purchasing, pricing, market conditions, new technologies, and new products and services;

G. Develop, amend and monitor the town’s standard purchasing terms and conditions;

H. Prescribe and maintain such forms and other rules and regulations as reasonably necessary for the proper implementation of the policies and procedures established in this chapter;

I. Coordinate or supervise the inspection of all goods and supplies, equipment, materials, and services purchased on behalf of the town to ensure conformance with bid specifications;

J. Exercise general supervision and control over all inventories of supplies belonging to the town and use such inventories in making procurement decisions to avoid excessive inventories and inventory spoilage;

K. Recommend the transfer of underutilized, surplus, or unused goods and supplies, equipment, and materials between departments as needed and the sale of such goods and supplies, equipment, and materials which cannot reasonably be used by any department or which become unsuitable or obsolete for town use;

L. Maintain and update periodically a vendor master file or list necessary for the efficient operation of purchasing functions, such as approved bidders’ list or standard contracts;

M. Conduct (or ensure the conducting of) annual audits of the process to ensure compliance of purchasing, receiving and payment authorization procedures;

N. Consider and encourage the purchase of recycled and recyclable materials and environmentally friendly products, whenever practicable;

O. Where other factors are equal, procure goods and supplies, equipment, materials, and services from local business enterprises; and

P. Confirm periodic physical inventories are conducted and monitor asset tagging procedures and audit trails. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.040 Centralized purchasing.

The purchasing officer may implement centralized purchasing for the purchase of goods and supplies, equipment, materials, and professional and nonprofessional services if it is deemed applicable for cost savings and efficiency purposes. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.050 Inspection and testing.

The purchasing officer or requesting department shall inspect goods and supplies, equipment, and materials delivered, as well as contract services performed, to determine their conformance with the specifications set forth in the order or contract. The purchasing officer or requesting department shall have the right to waive any defect, irregularity, or informality that does not result in a competitive advantage to any bidder or proposer. The purchasing officer or requesting department shall have the authority to require demonstrative testing of samples submitted with bids and samples of deliverables which are necessary to determine their quality, fitness for a particular use, and conformance with specifications. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.060 Appropriation of purchasing funds.

The city council is responsible for and shall appropriate such funds as are necessary to carry out the provisions of this chapter. Unless otherwise provided in this chapter, the purchasing officer shall not issue any order or contract for goods and supplies, equipment, materials, or services unless there exists an unencumbered appropriation in the adopted budget against which such purchase may be charged.

All outstanding encumbrances, with the exception of capital improvement project funds, shall lapse at fiscal year end. There shall be no non-capital fund balance reserve for encumbrances. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.070 Purchase orders.

Procurement of goods and supplies, equipment, materials, and professional and nonprofessional services over one thousand dollars not covered within a construction contract or public work specification shall be made only by purchase order issued by the city manager (purchasing officer) and approved by the finance director. Contract purchase orders shall be issued for goods and supplies, equipment, materials, and professional and nonprofessional services when the vendor has submitted a price quotation to hold pricing for a specified length of time (thirty days minimum required), the item being procured is on the approved bidders’ list, or a contract has been approved by the city council through formal bid procedures.

To request a purchase order, a purchase requisition must be submitted to the finance department to confirm available funding, and approved by the finance director. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.080 Purchase/procurement cards.

Department heads are authorized to make purchases of goods and supplies, equipment, materials, and nonprofessional services up to one thousand dollars using town authorized procurement cards. Any single-item purchase greater than one thousand dollars requires approval of the city manager. Each such purchase shall be immediately documented with a receiving report and procurement card authorization slip to the finance director for approval and payment. Except in the event of a certified emergency, combined monthly procurement card purchases shall be limited to no more than five thousand dollars for any department. (Ord. 608 § 1, 2014: Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.100 Procurement of goods and supplies, equipment, materials, and nonprofessional services—Open market.

The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value as established by resolution of the city council on a periodic basis, inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, may be made by the purchasing officer in the open market. These purchases may be placed using approved bidders’ lists or by obtaining at least three recorded informal quotes, when practicable. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.110 Procurement of goods and supplies, equipment, materials, and nonprofessional services—Informal procedure.

The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value as established by resolution of the city council on a periodic basis, inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, shall be made by the informal procedures set forth in this section.

A. The requesting department shall solicit informal proposals by telephone or written request to prospective vendors.

B. Except as otherwise provided in this chapter, purchases shall be based on at least three informal written proposals or bids; or purchase shall be placed using approved bidders’ list, if available.

C. Informal proposals shall be submitted by prospective vendors to the requesting department. The city clerk shall retain a record of all informal proposals for a period of two years following completion of the informal procedures established in this section, which shall be made available for public review and inspection upon request.

D. The order or contract shall be awarded by the purchasing officer to the lowest proposer consistent with the best qualified vendor selection criteria set forth in Section 3.16.130. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.120 Procurement of goods and supplies, equipment, materials, and nonprofessional services—Formal procedure.

The procurement of goods and supplies, equipment, materials, and nonprofessional services with an estimated value as established by resolution of the city council on a periodic basis, inclusive of taxes, licenses, freight charges, installation charges, fees, and other considerations, shall be made by the formal procedures set forth in this section.

A. Notice Inviting Bids. Notices inviting formal bids or proposals from prospective vendors shall be published and posted no later than ten calendar days before the submission date for formal bids in accordance with Government Code Section 20162, Bids Requiring Notice. The notices shall describe the requested goods or supplies, equipment, materials, or nonprofessional services in general terms, how to obtain more detailed information concerning the procurement, and state the time, place, and deadline for submission of sealed bids or proposals. The notice inviting bids shall also include specifications, and all contractual terms and conditions applicable to the procurement.

B. Published Notice. The notice inviting formal bids or proposals shall be published and posted in at least two public places in the town that have been duly designated by the city clerk as the official places for the posting of public notices and on the town’s official website. In addition, such notice may also include trade publications when practicable. The public notice shall state the place, date and time of the bid opening.

C. Bidders’ List. The town may require that a bidders’ list be developed listing and approving qualified vendors before the vendor is eligible to submit a bid or proposal. If a bidders’ list is used it must be stated in the notice inviting bids.

D. Bidders’ Security. When deemed necessary, the town shall require bidders’ security. Bidders’ security shall be in accordance with the provisions of the California Public Contract Code.

E. Bid Opening Procedure. Sealed bids or proposals shall be submitted to the office of the city clerk and shall be identified as formal competitive bids or proposals on the outside of the sealed envelope. The city clerk shall store all sealed bids in a secure location until opening. The city clerk shall open all bids or pro-

 

posals in public at the time and place stated in the notice inviting bids, with a witness present. A tabulation of all bids or proposals received shall be open for public review and inspection in the office of the city clerk during regular business hours for a period of not less than thirty calendar days after the bid opening.

F. Rejection of Bids. In its sole discretion, the city council may reject any and all bids or proposals for any reason or for no reason, and may suspend, delay, or otherwise cancel the procurement, or may order the readvertisement of the request for bids. If all formal bids or proposals are rejected and the city council resolves by a recorded majority vote of council that is present that the procurement can be performed more economically by force account, by informal procedures, or through open market purchases, then it may dispense with further formal competitive public bidding.

G. Tie Bids. If two or more formal bids or proposals received are the same and are the lowest, the city council may accept the one it chooses, and the city council may allow for a local vendor preference or accept the lowest bid made after negotiation with the tie bidders.

H. Award of Contracts. Contracts subject to formal procedures shall be awarded by the city council to the lowest responsive and responsible bidder consistent with the best qualified vendor selection criteria set forth in Section 3.16.130, except as otherwise provided herein. The decision of the city council shall be final. Contracts shall be finalized and executed with reasonable promptness.

I. Contract Execution. Only the mayor or city manager is authorized to sign and enter into contracts on behalf of the town. The city manager may sign contracts and agreements when the total value of the contract is less than the amount set by resolution for formal procedures. No other employee is authorized to sign a contract binding the town, and any contract inappropriately signed is voidable. Before a contract is signed by the city manager or placed on a city council agenda for approval, the contract must: include appropriate insurance and indemnification provisions reviewed by the town’s risk manager or city attorney; be approved as to form by the city attorney; be approved as to budget availability and purchasing procedural compliance by the finance director; and executed by the other party (except in the instance of a public entity).

J. No Bids Received. If no bids are received, the purchase may be let by the informal procedures set forth in Section 3.16.110.

K. Performance Bonds. The town shall have authority to require that a performance bond be posted before entering into a contract in such amount as may be reasonably necessary to protect the best interests of the town. If a performance bond is required, the form and amount of the bond shall be described, whenever possible, in the notice inviting bids, and shall be in a form approved by the city attorney. Release of performance bonds shall be made only upon successful completion of the work and approval and acceptance by the purchasing officer or city council.

L. Defects, Irregularities, and Informalities. The city council may, in its sole discretion, waive any defect, irregularity, or informality in the formal bids or proposals or in the competitive procedures established in this section as long as no unfair advantage results, and no such defect, irregularity, or informality shall void any contract entered into by the town once executed.

M. 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. 595 § 1 (Exh. A)(part), 2012)

3.16.130 Best qualified vendor.

In determining the best qualified vendor, consideration is to be given to quality and performance of the goods and supplies, equipment, or materials to be purchased or nonprofessional services to be provided by the vendor. Criteria for determining the best qualified vendor shall include but not be limited to the following:

A. The cost or best value of the goods and supplies, equipment, materials, or nonprofessional services;

B. The ability, capacity, and skill of the vendor to perform the contract and to provide the goods and supplies, equipment, materials, or nonprofessional services requested;

C. The ability of the vendor to provide the goods and supplies, equipment, materials, or nonprofessional services requested promptly or within the time specified, without delay or interference;

D. The ability of the vendor to demonstrate the attributes of trustworthiness, quality, fitness, capacity, and experience to satisfactorily perform the contract;

E. The character, integrity, reputation, judgment, experience, and efficiency of the vendor;

F. The quality of vendor’s performance on previous purchases or contracts with the town;

G. The ability of the vendor to provide future maintenance, repair parts, and services for the use of the goods and supplies, equipment, or materials purchased;

H. The ability of the vendor to demonstrate its prior, current, and continued compliance during the contract term with all applicable federal, state, and local laws, statutes, ordinances and all lawful orders, rules, and regulations promulgated thereunder;

I. The ability of the vendor to timely produce a complete and accurate IRS Form W-9; and

J. A local business enterprise preference may be given when practicable and when called out in the plan bid specifications. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.140 Exceptions to purchasing requirements.

The procurement policies and procedures set forth above need not be followed, may be dispensed with, and/or are not applicable to the following situations, purchases, or contracts:

A. Sole Source. When in the opinion of the purchasing officer goods and supplies, equipment, materials, or proprietary services are unique, available only from one source, or are sought to match existing goods already in use, then a sole source procurement may be used;

B. No Bids Received. When after a reasonable attempt has been made to obtain informal bids or proposals, and it has been determined by the purchasing officer that three bids or proposals cannot be obtained;

C. Emergency Purchases. When the purchasing officer finds that emergency conditions require the immediate purchase of goods and supplies, equipment, materials, or services; the purchasing officer shall file promptly with the city council a certificate showing that emergency conditions existed and created the necessity for such action, together with an itemized account of all expenditures;

D. Obtaining Lowest Price. When in the opinion of the purchasing officer formal bidding is not likely to result in the lowest price and that no competitive advantage can be gained by soliciting bids. However, under such circumstances compliance with the informal procedures set forth in Section 3.16.110 shall be required;

E. Piggyback or Awarded Competitive Bid. When in the opinion of the purchasing officer the goods and supplies, equipment, materials, or nonprofessional services are available from a vendor who has been selected as the lowest bidder within the prior six months by another public agency using competitive bidding procedures substantially the same as or similar to those normally utilized by the town for the acquisition of such supplies or services, and when the price offered to the town is substantially equivalent to that offered to the other public agency;

F. Cooperative-Type (State Contract) Bids. When in the opinion of the purchasing officer the goods and supplies, equipment, materials, or nonprofessional services are available from a vendor who has been selected as the lowest bidder through a cooperative-type agreement with another government entity using competitive bidding procedures substantially the same as or similar to those normally utilized by the town for the acquisition of such supplies or services, and when the price offered to the town is substantially equivalent to that offered to the other public agency. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.150 Staging prohibited.

Purchases shall not be knowingly staged, or bids be split or separated into smaller units or segments, solely for the purpose of evading the competitive formal or informal procurement procedures of this chapter. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.160 Amendments and change orders.

Following the award of a procurement contract for goods and supplies, equipment, materials, or nonprofessional services pursuant to Sections 3.16.100, 3.16.110, and 3.16.120, the contract may be amended by the issuance of a change order or amendment, provided the change which is the subject of the change order or amendment is reasonably related to the scope of the original contract and based on post-award information that requires modification of the agreement based on unforeseen conditions or by mutual agreement of the parties. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s) and the finance director will confirm the availability of funds for the proposed change in the event that the change order increases the contract cost. Any change order or amendment which results in a total amended contract amount less than the purchasing officer’s authority level may be approved by the purchasing officer. Any change order or amendment which results in a total amended contract amount of greater than the purchasing officer’s authority level shall be approved by the city council. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.170 Leases.

All leases or lease purchases of goods 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. 595 § 1 (Exh. A)(part), 2012)

3.16.180 Trade-ins.

The purchasing officer is authorized to exchange for or trade in goods and supplies, equipment, and materials for the purpose of exchanging or trading in such supplies and equipment for like-kind replacement, for other commodities, products, equipment, or property, or for rebate, down payment, or credit toward the purchase of other similar goods and supplies, equipment, or materials. The purchasing officer shall not consider the trade-in value amount in calculating the procurement authority dollar thresholds established in Sections 3.16.100, 3.16.110, and 3.16.120. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.200 Professional services contracts.

A. Professional services are defined as those provided by a person or firm engaged in a profession based on a generally recognized special knowledge or skill, including, but not limited to, the professions of accountant, attorney, artist, architect, engineer, environmental consultant, dentist, physician, training or educational consultant, or surveyor, and whose services are considered distinct and unique to such a degree that bidding of such services would not be feasible.

1. Procurement of Professional Services Contracts—Open Market Proposals. Contracts estimated to be less than the amount established by resolution of the city council on a periodic basis may be let by the city manager without formal or informal proposals subject, however, to fair, just and equitable contract terms and conditions.

2. Procurement of Professional Services Contracts––Informal Proposals. Contracts for professional services in excess of the amount allowed for open market proposals but not exceeding an amount established by resolution of the city council on a periodic basis may be made by the city manager informally without observing the procedures prescribed in subsection (A)(3) of this section. Such contracts shall, unless infeasible, be based on at least three informal proposals and shall be awarded based on firm qualifications, experience and responsiveness, in addition to other appropriate criteria.

3. Procurement of Professional Services Contracts––Formal Proposals. Award of contracts for services of a professional nature valued at an amount established by resolution of the city council on a periodic basis or more shall be subject to city council approval pursuant to the procedure prescribed herein.

a. Request for Proposal. When selecting providers of professional services with an estimated cost greater than an amount established by resolution of the city council on a periodic basis, requests for proposal shall be used. Requests for proposal shall specify the deadline and place for submission, the nature of the services required, and the selection criteria to be used for awarding the contract. City council will approve all requests for proposal for formal professional services contracts prior to issuance unless waived or excepted.

b. Award of Contract. Except as otherwise provided herein, the city council shall award a contract based on firm qualifications, experience and responsiveness, in addition to any other criteria set forth in the request for proposal. Before a contract is signed by the city manager or placed on a city council agenda for approval, the contract must: include appropriate insurance and indemnification provisions reviewed by the town’s risk manager or city attorney; be approved as to form by the city attorney; be approved as to budget availability and purchasing procedural compliance by the finance director; and executed by the other party (except in the instance of a public entity).

c. Rejection of Proposals. The city council may reject any and all proposals submitted and may, in its discretion, readvertise for other proposals.

B. The open market, informal and formal bidding procedures contained in this chapter (Sections 3.16.100, 3.16.110 and 3.16.120) shall not apply to contracts for professional services.

C. The city manager may award any contract for professional services when the total not to exceed contract amount of such services is less than the formal contract amount established by resolution of the city council on a periodic basis. Any contract for professional services having a total contract amount of greater than the formal contract amount established by resolution of the city council on a periodic basis shall be awarded by the city council.

D. Notwithstanding any provision in this chapter to the contrary, selection by the town for professional services shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required, and shall not be awarded solely on the basis of cost. In accordance with state law, the town shall consider price after the town is satisfied that the would-be person, company, corporation, contractor, consultant, or firm has demonstrated the competence and professional qualifications necessary for the satisfactory performance of the services required and is the best qualified or suited professional to perform the services required. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.210 Amendments to professional services contracts.

Contracts for professional services pursuant to Section 3.16.200 may be amended by the issuance of a written amendment provided the change which is the subject of the amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s), and the finance director will confirm the availability of funds for the proposed change in the event that the amendment increases the contract cost. Any amendment which results in a total contract amount that would qualify for an informal proposal may be approved by the city manager and the finance director. Any amendment which results in a total contract amount that would qualify for a formal proposal shall be approved by the city council, or resubmitted to council for approval of the amendment. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.220 Donated goods and supplies, equipment, materials, professional and nonprofessional services.

All procurement of goods and supplies, equipment, materials, professional and nonprofessional services with funds donated will follow the procedures of this chapter. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.230 Public works projects—Uniform Construction Cost Accounting.

The city council has adopted a resolution electing to make the town subject to the Uniform Construction Cost Accounting Procedures of the California Public Contract Code (commencing with Section 22010) and has notified the State Controller of the election. Therefore, the city council may utilize the alternative procedures for the award of public works project bids authorized by the California Public Contract Code (commencing with Section 22030). (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.240 Requirements for contracting public works projects.

A public works project means any of the following: (1) construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or (2) painting or repainting of any publicly owned, leased, or operated facility. A public works project does not include maintenance work, which includes the following: (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; or (2) minor repainting; or (3) resurfacing of streets and highways at less than one inch; or (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; or (5) 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 two hundred thirty thousand volts and higher.

A. Procurement of Public Works Projects—Force Account/Open Market Procedures. Public works projects of up to an amount established by resolution of the city council on a periodic basis, appropriations for which have been approved by the city council, may be performed by the employees of the town or its agencies by force account, or by negotiated contract or purchase order approved by the city manager.

B. Procurement of Public Works Projects—Informal Bidding Procedures. Public works projects greater than the amount qualifying for a force account/open market procedure up to and including an amount established by resolution of the city council on a periodic basis may be let to contract by the informal bidding procedures (alternative procedure) set forth in this chapter as prescribed in Section 3.16.250.

C. Procurement of Public Works Projects—Formal Bidding Procedures. Public works projects greater than an amount established by resolution of the city council on a periodic basis shall be let to contract by the formal bidding procedure set forth in the Uniform Construction Cost Accounting Act. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.250 Informal bidding procedures for public works projects.

Pursuant to California Public Contract Code Section 22034, when utilizing the alternative procedures authorized by Section 3.16.240, the following provisions shall apply to public works projects for which formal bidding procedures are not required:

A. The public works department shall maintain a list of qualified contractors, identified according to categories or work. The list shall be developed and maintained in accordance with criteria established for such lists by the California Uniform Construction Cost Accounting Commission and in accordance with the provisions of California Public Contract Code Section 22034;

B. Each contractor on the list for the category of work being bid, and/or the current California construction trade journals for this area specified by the Commission to receive mailed notices of all informal construction contracts being bid for work in San Mateo County, as determined by the department of public works, shall be mailed a notice inviting informal bids unless the product or services are proprietary;

C. All mailings of notices to contractors and construction trade journals, as determined above, shall be completed not less than ten calendar days before bids would be due pursuant to the notice;

D. Each notice inviting informal bids shall describe the project in general terms, state how to obtain more detailed information about the project, and specify the time and place for submission of bids; and

E. Each informal bid shall be reviewed and approved by the director of public works. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.260 Approval of public works contracts pursuant to informal bidding procedures.

Unless otherwise determined by the city council for any individual contract to be awarded, the award of a public works contract by informal bidding process may be approved by the city manager, upon the recommendation of the director of public works, and subject to approval as to the form of the contract by the city attorney. The determination of the city manager to award a contract by informal bidding procedure shall be final. In awarding the contracts, the city manager shall exercise prudent judgment in determining the lowest responsible bidder, taking into account the public’s interest in efficiency and economy in the award of the contracts and giving due consideration to fairness and equity to competing bidders. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.270 Approval of change orders on public works contracts.

A. No change in agreement or contract shall be made without the issuance of a written change order or amendment and no payment for any change shall be made unless a written change order or amendment has first been approved and executed in accordance with this section designating in advance the work to be done and the amount of additional compensation to be paid.

B. Provided the funding for a public project contract has been previously approved and the expenditure of funds authorized by the city council, the city manager shall have the authority to execute change orders or amendments for any contract in an amount not to exceed fifteen percent of the original price, subject to approval as to the form of the amendment by the city attorney.

C. In the event of an emergency and provided the funding for a public project contract has been previously approved and the expenditure of funds authorized by the city council, the director of public works shall have the authority to execute a change order or amendment for any contract in an amount not to exceed five thousand dollars. For the purposes of this section, the term “emergency” shall mean either a condition that causes an immediate danger to life or property or a condition that if left unabated will cause unreasonable delay or costs to the project. The director of public works shall notify the city manager in writing of the basis for approving the change order or amendment, including all facts and circumstances leading to the determination that an emergency was present. The written notice shall be delivered to the city manager within twenty-four hours of approving of the change order.

D. All other change orders or amendments shall be approved by the city council. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.280 Public works project bids in excess of maximum authority.

Pursuant to California Public Contract Code Section 22034, if all bids received are in excess of one hundred thousand dollars, the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at one hundred ten thousand dollars or less, to the lowest responsible bidder, if the city council determines the cost estimate of the town was reasonable. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.300 Surplus supplies and equipment.

All departments shall submit to the finance director, at such times and in such forms as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete and worn out. Annually the finance director shall account for all additions and deletions to capital assets, and shall require a physical inventory of all capital assets every five years, at a minimum. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.310 Surplus supplies and equipment—Trade-ins.

The finance director shall have the authority to exchange for or trade in supplies and equipment which cannot be used by any department or which have become unsuitable for town use. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.320 Surplus supplies and equipment—Sale.

The finance director shall have authority to dispose of surplus supplies or equipment by auction or by sale, including by sale to town employees or residents, after receiving bids or proposals which, in his judgment, provide the maximum return to the town. Sales to town employees shall only be utilized when, in the opinion of the finance director, all other alternative means of disposal would provide less return to the town. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.330 Surplus supplies and equipment—Donation.

A. The finance director shall have authority to donate surplus supplies and equipment subject to the following:

B. Surplus supplies and equipment may be donated to nonprofit organizations or school districts located or operating within the town, or if these organizations express no interest, then to any other nonprofit organization or private organization that provides assistance to nonprofit organizations that has expressed interest in receiving donated surplus town property.

C. Donations made to eligible entities shall be on a first-come, first-serve basis.

D. Prior to transfer of the donated supplies or equipment, the recipient entity shall provide a statement executed by a person duly authorized to legally bind the recipient entity that the donated property will:

1. Be accepted “as is,” with no express or implied warranties; and

2. That an immediate need exists for the property and that it will be put into immediate use; and

3. That the property not ever be sold or otherwise transferred for profit; and

4. That the recipient entity shall assume all costs and liability associated with the removal and transportation of the surplus property from the town.

E. Town shall provide notice of the surplus property to be donated to solicit interest from potential donors.

F. If, in the opinion of the finance director, the total amount of property to be donated pursuant to this section has a historical value of one thousand dollars or more, the finance director shall prepare a report of the property to be donated, the estimated current value of the property to be donated, and the recipient(s) of the property proposed to be donated, for approval by the city council. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.340 Surplus supplies and equipment—Scrap.

A. The finance director shall have authority to scrap surplus property if, regardless of value, it is broken or inoperable, cannot be repaired economically, and cannot otherwise be traded in, sold, auctioned, donated, or salvaged.

B. The finance director shall have authority to scrap surplus property in the following instances:

1. If the surplus property, in the opinion of the finance director, has a historical value of less than five hundred dollars per unit, and for multiple items, has a combined total historical value of less than one thousand dollars, is not broken and cannot otherwise be traded in, sold, auctioned, donated, or salvaged.

2. If the surplus property, regardless of value, is obsolete or nonfunctional and cannot otherwise be traded in, sold, auctioned, donated, or salvaged.

C. All other surplus property may be scrapped by the finance director subject to the additional approval of the city council. (Ord. 595 § 1 (Exh. A)(part), 2012)

3.16.350 Exemptions to provisions of this chapter.

The provisions of this chapter are not applicable to:

A. Contracts for professional witnesses if the purpose of such contracts is to provide for professional services or testimony relating to an existing or probable judicial proceeding in which the town is or may become a party, including contracts for special investigative services for law enforcement purposes;

B. Agreements negotiated and/or prepared by the city attorney or special counsel in connection with the settlement of a dispute, claim, or matter of litigation or threatened litigation;

C. Contracts to commission original works of art, and for fine art or entertainment;

D. The award of financial participation agreements, owner participation agreements, disposition and development agreements, development agreements, real estate purchase or lease agreements, covenants, easements, encroachment agreements, memoranda of understanding, or other similar agreements or instruments. Such contracts shall be awarded in accordance with applicable legal requirements and/or administrative directives of the town;

E. The purchase of miscellaneous books, magazines, newspapers, subscriptions, online library reference services, film, videos, and assorted materials for which contracts by competitive bid solicitation are not practicable;

F. Intergovernmental payments, purchases, and agreements;

G. Specialized seminar, training, and educational classes;

H. Contracts for election services;

I. Contracts for legal services;

J. Franchise agreements; and

K. Contracts for procuring and maintaining insurance policies for the benefit of the town, which are approved by the city council. (Ord. 595 § 1 (Exh. A)(part), 2012)