Chapter 3.15
SUPPLIES, SERVICES AND EQUIPMENT PURCHASE PROCEDURE
Sections:
3.15.010 Adoption of purchasing system.
3.15.020 Exemptions from centralized purchasing.
3.15.030 Estimates of requirements.
3.15.060 Confidentiality of bids.
3.15.070 Award of contracts to local bidders.
3.15.090 Purchasing agreements with other agencies.
3.15.100 Encumbrance of funds.
3.15.110 Formal contract procedure.
3.15.120 Public works contract procedure.
3.15.130 Open market purchases.
3.15.140 Contracts for professional services.
3.15.150 Inspection and testing.
3.15.160 Surplus supplies and equipment.
3.15.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases, a purchasing system is hereby adopted for the purchase of all city supplies, services and equipment. [Ord. 99-2 § 1; Code 1990 § 2.9.01.]
3.15.020 Exemptions from centralized purchasing.
The city manager may authorize, in writing, any department to purchase or contract for specified supplies, services and equipment, but he/she shall require that such purchases or contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization. The city manager may also rescind such authorization with written notice to the department concerned. [Ord. 99-2 § 1; Code 1990 § 2.9.02.]
3.15.030 Estimates of requirements.
All departments shall file detailed estimates of their requirements for supplies, services and equipment in such manner, at such times, and for such future periods as set forth in rules prescribed by the city manager. [Ord. 99-2 § 1; Code 1990 § 2.9.03.]
3.15.040 Requisitions.
All departments shall submit requests for supplies, services and equipment to the city manager by standard requisition forms according to the rules prescribed by the city manager. [Ord. 99-2 § 1; Code 1990 § 2.9.04.]
3.15.050 Bidding.
Purchases of supplies, services and equipment and the sale of personal property shall be by bid procedures, pursuant to CMC 3.15.110, 3.15.120 and 3.15.160. With the exception of purchases covered by Article 4 of the State Public Contracts Code, bidding may be dispensed with when an emergency requires that an order be placed with the nearest available source of supply, when the amount involved is less than $1,000, or when the commodity is a sole source item which can be obtained from only one vendor. Sole source items shall include purchases of items where there are restrictions in specifications due to the need for standardization. The city council may also, by majority vote of its entire membership, dispense with such bidding and other procedures required by this chapter in any individual instance upon finding that it would be impracticable, useless or uneconomical in such instance to follow such procedures, and that the public welfare would be promoted by dispensing with same. [Ord. 99-2 § 1; Code 1990 § 2.9.05.]
3.15.060 Confidentiality of bids.
Any bid received pursuant to the procedures of this chapter shall not be disclosed directly or indirectly to any other bidder until the bidding is closed. [Ord. 99-2 § 1; Code 1990 § 2.9.06.]
3.15.070 Award of contracts to local bidders.
A “local bidder” shall mean a firm or individual who, for at least 12 consecutive months, has regularly maintained a place of business in, or maintained an inventory of merchandise for sale in, and who pays appropriate business permit/license fees to, the city. With respect to those bids relating to the purchase of items subject to state sales tax, the term “lowest responsible bidder” shall be deemed to include a one percent discount for local vendors in the computation of bids in order to reflect the financial advantages that accrue to the city by the award of a bid to a local vendor. The city shall also consider the cost to the city to pick up supplies and equipment at some distance from the city, to obtain parts and supplies, and to transport such items for repair and maintenance in the computations used to award contracts. [Ord. 99-2 § 1; Code 1990 § 2.9.07.]
3.15.080 Purchase orders.
Purchases of supplies, services and equipment shall be made only by purchase order, unless otherwise authorized by formal administrative procedure or in writing by the city manager. [Ord. 99-2 § 1; Code 1990 § 2.9.08.]
3.15.090 Purchasing agreements with other agencies.
The purchasing department may enter into purchasing agreements with other governmental agencies, such as the county of Riverside and the state of California, for the purchase of supplies, services and equipment. In such instances, the procedures of that agency shall satisfy all city requirements for the bid and award of purchase contracts. [Ord. 99-2 § 1; Code 1990 § 2.9.09.]
3.15.100 Encumbrance of funds.
Except in cases of emergency, purchase orders shall not be issued for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. [Ord. 99-2 § 1; Code 1990 § 2.9.10.]
3.15.110 Formal contract procedure.
Except as otherwise provided in this chapter, purchases and contracts for supplies, services and equipment of a value greater than $10,000 shall be by written purchase order to the lowest responsible bidder, pursuant to the procedures prescribed herein:
A. Lowest Responsible Bidder. The term “lowest responsible bidder” shall mean that bidder which best responds in price, quality, service, fitness and capacity to the particular requirements of the city. Price alone shall not be the sole determining factor, but shall be considered along with other factors, including, but not limited to, the ability of the bidder to deliver, availability of parts and services on a timely basis, prior experience with the bidder, and other factors relating to the particular needs of the city for the supplies, equipment or services.
B. Notice Inviting Bids. Notices inviting bids shall include a general description of the services or articles to be purchased, shall state where bid forms and specifications may be obtained, and the time and place for opening bids.
1. Published Notice. Notice inviting bids shall be published in a newspaper of general circulation in the city at least 10 days before the date of the opening of the bid. The city manager may waive the necessity to publish the invitation to bid if a source of supply is not available in the local area.
2. Bidders’ List. Sealed bids shall also be solicited from all responsible prospective suppliers whose names are on a bidders’ list or who have requested to have their names added thereto.
3. Posting. Pending purchases shall also be advertised by a notice posted on a public bulletin board at City Hall at least 10 days prior to bid opening.
C. Bidders’ Security. When considered necessary by the purchasing department, bidders’ security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security upon competition of the bid process; provided, however, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the purchase agreement within 10 days after the notice of award of contract has been mailed, unless the city is solely responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the purchase agreement, award a contract to the next lowest responsible 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 city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the city rejects all other bids presented and readvertises, the amount of the lowest bidder’s security may be used to offset the cost of receiving new bids, as well as the difference between the new low bid and the former low bid.
D. Bid Opening Procedure. Sealed bids shall be submitted to the city manager and shall be identified as a bid on each envelope. Bids shall be opened in public at the time and place stated in the appropriate public notice and/or invitation to bid. 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.
E. Rejection of Bids. Incomplete bids may be rejected by the purchasing department or may be referred to the city council with a request to waive irregularities. The city council shall reserve the right to reject any and all bids in whole or in part, and may waive any irregularities in any bids when the public interest will be served thereby. At its discretion, the city council may readvertise for bids, pursuant to the procedures hereinabove described.
F. Award of Purchase or Contract. Purchases or contracts shall be awarded by a majority vote of the city council to the lowest responsible bidder, except as otherwise provided herein.
G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest would not be promoted by readvertising for bids, the city council may accept the low bid it chooses, or may accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. In the case of a tie, preference shall be given to responsible local bidders.
H. Performance Bonds. The purchasing department shall have the authority to require a performance bond before entering into a contract in such amount as shall be reasonably necessary to protect the best interests of the city. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids. [Ord. 99-2 § 1; Code 1990 § 2.9.11.]
3.15.120 Public works contract procedure.
When the expenditure required for a public works project exceeds $5,000, it shall be contracted for and let to the lowest responsible bidder after notice, in accordance with the requirements of Article 4 of the California Public Contracts Code.
A. Public Works Projects. As used in this section, “public works project” shall mean:
1. A project for the erection, improvement, painting or repair of public buildings and works;
2. Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow;
3. Street or sewer work except maintenance or repair;
4. Furnishing supplies and materials for any such project, including maintenance or repair of streets or sewers.
B. Splitting Work Orders. It shall be unlawful to split or separate into smaller work orders or projects any public works project for the purpose of evading the provisions of this section.
C. Notice Inviting Bids. The notice inviting bids shall set a date for the opening of bids. Notices shall be published at least twice, not less than five days apart, in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices. The notice shall distinctly state the project to be done.
D. Rejection of Bids and Readvertisement. At its discretion, the city council may reject any bids presented and readvertise. If two or more bids are the same, the city council may accept the one it chooses. If no bids are received, the city council may direct the city manager to have the project completed with no further compliance with this section.
E. Performance of Project After Rejection of Bids. After rejecting bids, the city council may pass a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by day labor, or the material or supplies furnished at a lower price in the open market. Upon the adoption of such a resolution, the city council may direct the city manager to have the project completed in the manner stated with no further compliance with this section.
F. Presentation of Bids. All bids shall be presented under sealed cover and accompanied by one of the following forms of bidders’ security:
1. Cash.
2. A cashier’s check made payable to the city.
3. A certified check made payable to the city.
4. A bidder’s bond executed by an admitted surety insurer, made payable to the city.
G. Amount of Bidders’ Security. Security shall be in an amount equal to at least 10 percent of the amount of the bid. A bid shall not be considered unless one of the forms of bidders’ security is enclosed with it.
H. Forfeiture of Security. If the successful bidder fails to execute the contract, the amount of the bidder’s security shall be forfeited to the city. The city council may award the contract to the next lowest responsible bidder, and the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid. The surplus, if any, shall be returned to the lowest bidder if cash or a check is used, or to the surety on the bidder’s bond if a bond is used.
I. Calamities or Emergencies. If there is a great public calamity, such as an extraordinary fire, flood, storm, epidemic, or other disaster, or if it is necessary to do emergency work to prepare for national or local defense, the city council may pass a resolution by four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. Upon the adoption of such a resolution, the city council may direct the city manager to expend any sum required in the emergency with no further compliance with this section. [Ord. 99-2 § 1; Code 1990 § 2.9.12.]
3.15.130 Open market purchases.
Purchase of supplies and equipment of an estimated value of less than $10,000, not subject to the conditions specified in CMC 3.15.120, may be made by the city manager in accordance with the procedures set forth in this section, without compliance with the formal contract procedure set forth in CMC 3.15.120. The purchasing department shall solicit competitive bids for all such purchases pursuant to the procedures described herein:
A. For the purchase of less than $10,000 and more than $5,000, at least three written bids shall be required, and all such purchases shall be approved by the city manager.
B. For purchases of $5,000 or less, but more than $1,000, bids may be verbal or written, and shall be made at the discretion of the purchasing department. Wherever possible, at least three bids shall be obtained.
C. The city clerk shall keep a record of all open market orders and bids for a period of one year after the submission of bids or placing of orders, to include the name of the companies or individuals contacted and the prices bid. This record shall be open to the public during normal business hours.
D. The competitive bidding procedures set forth in this section may be waived by the city manager in instances of valid emergencies or sole source, or when it is determined that the public interest would not be best served by competitive bidding. All such instances shall be fully recorded. [Ord. 99-2 § 1; Code 1990 § 2.9.13.]
3.15.140 Contracts for professional services.
The award of contracts for professional services shall be exempt from the bidding and award requirements of this chapter, and shall be governed by the provisions of this section.
A. Professional Services. In general, the term “professional services” shall mean professional contractual services performed by a member(s) of the profession. “Profession” shall include, but not be limited to, the following: accountants, appraisers, architects, attorneys, computer consultants, economic and finance consultants, health and insurance consultants, engineers, land surveyors, geologists, inspectors, environmental consultants, marketing and media consultants, planners, construction management, and any other type of profession in which individuals or organizations possess a degree of professional, specialized, technical skill or expertise, not adaptable to competitive bidding, or any other service of a similar nature to the above engaged for a particular project or projects.
B. Process for Obtaining Proposals for Professional Service Contracts.
1. Process for selection of professional service contracts other than those specified in subsection (B)(2) of this section.
a. In the case of contracts not to exceed $10,000, the city manager shall attempt to assure that all qualified and interested consultants shall have the opportunity to provide proposals for the provision of city services. The selection of consultants for specific projects shall be based on the criteria and factors set forth in this subsection (B). The city manager may, but shall not be required to, use a formal RFP and/or RFQ process for solicitation of proposals for the professional services.
b. Contracts which are anticipated to exceed $10,000 but which are not anticipated to exceed $50,000 may be awarded by the city council without a formal RFP and/or RFQ process, based on the particular requirements of the service to be provided and the experience and availability of the individual consultant(s). All such contracts for professional services which are anticipated to exceed $10,000 shall be let by the city council based on a written proposal which shall include the scope of services to be provided and the fee schedule for services.
c. In the case of contracts which are anticipated to exceed $50,000, the city council shall determine whether to cause an RFP or RFQ to be prepared, which shall be mailed to all qualified consultants whose names are on file with the city, or who request a copy of the RFP or RFQ. Proposals need not be sealed and opened in a formal bidding opening process, and are subject to negotiation of both scope and fee. The city manager shall screen proposals and make a recommendation to the city council for contract award. The city council, if it finds that the public interest will not be best served by a formal proposal process, may waive the solicitation of RFPs and/or RFQs, and may award contracts for professional services based on a single proposal.
d. The RFP or RFQ shall include a description of the project for which the services are to be required, the criteria upon which the award shall be made, the due date, statement of qualifications submission and contract requirements. If a formal RFP or RFQ process is not used, all such contracts shall be let based on a written proposal which shall include the scope of the services to be provided, and the fee schedule of the services.
2. Professional service contracts for landscaping, private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services shall be selected in accordance with the following procedures.
a. For contracts not anticipated to exceed $10,000, the city manager may select an individual or firm through the use of a request for proposal (“RFP”) or request for qualifications (“RFQ”) process, or may award the contract without a formal RFP or RFQ process. The RFP or RFQ shall include a description of the project for which the services are to be required, the criteria upon which the award shall be made, the due date, statement of qualifications submission and contract requirements. If a formal RFP or RFQ process is not used, all such contracts shall be let based on a written proposal which shall include the scope of the services to be provided, and the fee schedule of the services.
b. Contracts which are anticipated to exceed $10,000 but which are not anticipated to exceed $50,000 may be awarded by the city council without a formal RFP and/or RFQ process, based on the particular requirements of the service to be provided and the experience and availability of the individual consultant(s). All such contracts for professional services which are anticipated to exceed $10,000 but not to exceed $50,000 shall be let by the city council based on a written proposal which shall include the scope of services to be provided and the fee schedule for services.
c. For contracts anticipated to exceed $50,000, the city council shall select an individual or firm following an RFP or RFQ process. The RFP or RFQ shall include a description of the project for which the services are to be required, the criteria upon which the award shall be made, the due date, statement of qualifications submission and contract requirements.
d. Regardless of the size of the contract, the city manager shall issue a written announcement within the Southern California area through the publications of the respective professional societies or organizations. The city manager may also advertise to reach providers of services within the appropriate trade or profession by publishing the announcement in electronic communication media or Internet web sites that have demonstrated regional accessibility and are regularly maintained at established addresses by professional organizations which are representative of the services to be procured, in a construction trade journal, or publicize the requirements for services in other appropriate publications. Failure of any professional society or construction trade journal to publish the announcement shall not invalidate any contract. The announcement shall include information describing the project or services, any applicable RFPs or RFQs, and the due date, time and location for submission of a proposal or statement of qualifications. The announcement may also identify the criteria upon which the award will be made.
e. In those situations where the selecting authority (city manager or city council) uses an RFP or RFQ process, the city manager shall also disseminate the RFP or RFQ to those individuals or firms who have previously requested copies of RFPs or RFQs issued by the city.
C. Criteria for Award of Contracts for Professional Services.
1. In the case of professional service contracts for architectural, landscape architectural, engineering, environmental, land surveying, or construction project management services, the award of a contract shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. The selecting authority (city manager or city council) shall establish criteria which will comprise the basis for the selection of an individual or firm for each project, including such factors as professional excellence, demonstrated competence, specialized experience of the firm, education and experience of key personnel to be assigned, staff capability, workload, ability to meet schedules, nature and quality of completed work, reliability and continuity of the firm and/or subcontractors, location, fees and costs, or other considerations deemed relevant. The factors shall be weighted by the selecting authority according to the nature of the project, the needs of the city, and complexity and special requirements of the specific project. The selection process shall include procedures to facilitate participation by small business firms. As used herein, a “small business firm” is a firm certified in accordance with Government Code Section 14837 or its successor provisions. The city shall participate in outreach programs to provide small businesses with information on city contracting opportunities, and shall make other reasonable efforts to facilitate participation by small businesses in the city’s professional contractual services process.
2. In the case of all other types of professional service contracts, the selecting authority (city manager or city council) may use the criteria set forth in subsection (B)(1) of this section, or may use any other criteria applicable to the particular type of contract or project including the consultant’s experience, approach, availability and knowledge of the subject area.
D. Authorization of the City Manager to Execute Contracts Not to Exceed $10,000.
1. The city manager shall be authorized to solicit proposals and contracts for professional services in the following instances:
a. Funds have been approved in the budget for a specific type of professional services or specific project, and the contract is not anticipated to exceed $10,000; or
b. Funds are generally available in the budget, and the contract does not exceed $10,000.
2. All professional service contracts which are anticipated to exceed $10,000 shall be approved by a majority vote of the city council.
E. Conflicts of Interest and Improper Considerations. In addition to all other requirements of this section, the selection of professional services contracts shall be subject to the following additional requirements:
1. No city employees shall participate in the selection process if those employees have a financial interest or relationship with a person or business entity seeking a contract which would subject those employees to the conflict of interest prohibition of Government Code Section 87100.2.
2. Practices that may result in unlawful activity, including but not limited to rebates, kickbacks, or other unlawful consideration, are strictly prohibited. The city shall endeavor to provide that all professional service contracts entered into pursuant to this section shall include a provision in which the individual or firm selected certifies that the contract was not obtained through rebates, kickbacks, or other unlawful considerations either promised or paid to any city employee or official. In addition to any other applicable legal proscriptions, failure to adhere to any required certification may be cause for contract termination and recovery of damages under the rights and remedies due the city under the default provision of the contract or as otherwise allowed by law.
F. Audits. Professional services contracts are subject to standard accounting practices. The city manager or city council may require pre-award, interim-award and/or post-award financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget, and in accordance with the contractual requirements. [Ord. 289 § 2, 2009; Ord. 99-2 § 1; Code 1990 § 2.9.14.]
3.15.150 Inspection and testing.
The purchasing department shall inspect supplies, materials and equipment delivered, to determine their conformance with the specifications set forth in the purchase order or contract. The purchasing department shall have the authority to require chemical and physical tests, or the report of the testing, of samples submitted with bid and samples of deliveries which are necessary to determine their quality and conformance with specifications. [Ord. 99-2 § 1; Code 1990 § 2.9.15.]
3.15.160 Surplus supplies and equipment.
All departments shall submit to the city manager, at such times and in such form as he/she shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out.
A. The city manager shall have authority to sell as surplus all supplies, materials and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies, materials and equipment.
1. The sale of surplus supplies and equipment shall be made pursuant to rules prescribed by the city manager, and only after authorization from the city council as to any items of an estimated value of $10,000 or more.
2. Surplus supplies and equipment may be sold to the public if so prescribed by the city manager and/or the city council. City officials and employees, and their immediate families, however, shall be ineligible to purchase such surplus items. [Ord. 99-2 § 1; Code 1990 § 2.9.16.]
3.15.170 Unlawful purchases.
If any person or department purchases or contracts for any supplies, materials, equipment, or services contrary to the provisions of this chapter, such purchase order or contract shall be void and of no effect. The head of the department making such a purchase transaction shall be personally liable for the amount of such purchase order or contract, and, if already paid out of city funds, the amount thereof may be recovered in the name of the city in an appropriate action therefor. It is unlawful for any department to split its requirements for supplies, material, equipment or services to willfully evade any requirement of this chapter. [Ord. 99-2 § 1; Code 1990 § 2.9.17.]