CHAPTER 6
PURCHASING SYSTEM

Sections:

§ 2600 Adoption of Purchasing System.

§ 2600.1 Definitions.

§ 2601 Purchasing Manager.

§ 2602 Exemptions from Centralized Purchasing.

§ 2603 Requisitions.

§ 2604 Bidding.

§ 2605 Purchase Orders.

§ 2606 Funding of Purchases.

§ 2607 Formal Bidding Procedure.

§ 2608 Open Market Procedure.

§ 2609 Inspection and Testing.

§ 2610 Services.

§ 2600 Adoption of Purchasing System.

In order to establish efficient procedures for the purchase of supplies, equipment, and services, to secure for the City supplies, equipment, and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority of the purchasing function and to assure the quality of purchases, a purchasing system is hereby adopted. (Ord. 42, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2600.1 Definitions.

As used in this Chapter, unless the context otherwise clearly indicates:

(a) “Services” shall include, in addition to ordinary services, those professional services identified in California Government Code Sections 37103 and 53060.

(b) “Purchasing Manager” shall mean the person holding the position of Purchasing Manager in the Finance Division of the City.

(c) “Using Agency” shall mean any office, group, division, bureau, commission, board or other agency of the City using supplies or equipment. (Ord. 88-829, § 1; Ord. 98-1134, § 1; Ord. 00-1216, §§ 1, 2)

§ 2601 Purchasing Manager.

The Purchasing Manager shall be appointed by the Director of Finance, and the duties of the Purchasing Manager may be combined with those of any other office or position in the Finance Division. The Purchasing Manager shall have authority to:

(a) Purchase and contract for all supplies, equipment and services required by any using agency in accordance with purchasing procedures prescribed by this Chapter, such administrative regulations as the Purchasing Manager shall adopt, and such other rules and regulations as shall be prescribed by the City Manager or the City Council.

(b) Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and services.

(c) Act to procure for the City the needed quality in supplies, equipment, and services at least expense to the City.

(d) Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases.

(e) Prepare and recommend to the Director of Finance and the City Manager rules governing purchasing, maintaining an inventory, and warehousing of supplies and equipment of the City.

(f) Keep informed of current developments in the fields of purchasing, prices, market conditions and new products.

(g) Prescribe and maintain such forms as are reasonably necessary to the operation of this Chapter and other rules and regulations.

(h) Be responsible for the inspection of all supplies and equipment purchased to insure conformance with specifications.

(i) Recommend the transfer of surplus or unused supplies and equipment between using agencies as needed and the sale of all supplies and equipment which cannot be used by any using agency or which have become unsuitable for City use.

(j) Maintain a Bidders’ List, Vendors Catalog file and records needed for the efficient operation of the Purchasing Division.

(k) Establish and maintain inventory, storage and distribution systems.

(l) Perform such other duties and functions as may be assigned by the Finance Director or the City Manager. (Ord. 42, § 1; Ord. 80-507; Ord. 88-829, § 1; Ord. 98-1134, § 1; Ord. 00-1216, §§ 3, 4)

§ 2602 Exemptions from Centralized Purchasing.

The Purchasing Manager, with approval of the City Manager, may authorize, in writing, any using agency to purchase and contract for specified supplies, equipment, and services independently of the Purchasing Division; but the Purchasing Manager shall require that such purchases and contracts be made in conformity with the procedures established by this Chapter, and shall further require periodic reports from the using agency on the purchases and contracts made under such written authorization. (Ord. 42, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2603 Requisitions.

Using agencies shall submit requests for supplies and equipment to the Purchasing Manager by standard requisition forms. (Ord. 42, § 1; Ord. 80-507, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2604 Bidding.

Unless CMC 2607 is applicable, the purchase of supplies and equipment shall be by open market procedures pursuant to CMC 2608. Bidding or proposals for services may be dispensed with only:

(a) When the City Manager finds, with the concurrence of the City Council, that such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source, or, if available from more than one (1) source, can be purchased from the manufacturer for a lower price; or

(b) When an emergency, as determined by the City Manager, requires that the purchase be completed within a period of time which will not permit normal bidding or quotation procedures; or

(c) When the amount of the purchase is less than $1,000; or

(d) The City Council finds that due to the nature of the supplies or equipment, bidding is not likely to result in the lowest price. (Ord. 42, § 1; Ord. 80-507, § 1; Ord. 87-775, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2605 Purchase Orders.

Purchases of supplies and equipment shall be made only by purchase order. Acquisition of services may be by purchase order or contract. (Ord. 42, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2606 Funding of Purchases.

The Purchasing Manager shall not issue a purchase order or contract for supplies, equipment, or services unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. 42, § 1; Ord. 80-507, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1)

§ 2607 Formal Bidding Procedure.

Except as otherwise provided herein, purchases and contracts for supplies and equipment of an estimated value greater than $25,000 shall be by sealed bid and written contract with the lowest responsible bidder.

(a) Notice Inviting Bids. Notices inviting sealed bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

(1) Published Notice. Notice inviting sealed bids shall be published at least ten (10) days before the date of opening of the bids. Notice shall be published at least once 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 (3) public places in the City that have been designated by ordinance as the places for posting public notices.

(2) Bidders’ List. The Purchasing Manager shall also solicit sealed bids from responsible prospective suppliers whose names are on the Bidders’ List or who have requested their names to be added thereto.

(3) Bulletin Board. The Purchasing Manager shall also advertise pending purchases by a notice posted on a public bulletin board in the City Hall.

(b) Bidder’s Security. When deemed necessary by the Purchasing Manager, 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 its bid security upon refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it 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.

(c) Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Manager and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(d) Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids.

(e) Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. In the event that the lowest responsible bid is $25,000 or less, the contract may be awarded under CMC 2608 without the need for City Council action.

(f) Tie Bids. If two (2) or more bids received are the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one (1) it chooses or accept the lowest bid made by negotiation with tie bidders at the time of the bid opening.

(g) Performance Bonds. The City Council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the City. If the City Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 42, § 1; Ord. 80-507, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1; Ord. 00-1216, §§ 5, 6)

§ 2608 Open Market Procedure.

Purchases of supplies and equipment of an estimated value in the amount of $25,000 or less may, with the written approval of the City Manager, be made by the Purchasing Manager in the open market without observing the formal bidding procedure prescribed by CMC 2607.

(a) Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least five (5) bids and shall be awarded to the lowest responsible bidder, except as otherwise provided hereinabove.

(b) Bids. Bids shall be submitted to the Purchasing Manager who shall keep a record of all open market orders and bids for a period of two (2) years after submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection, except that vendor proprietary data shall not be open to public inspection except as otherwise required by law. (Ord. 42, § 1; Ord. 80-507, § 1; Ord. 88-829, § 1; Ord. 98-1134, § 1; Ord. 00-1216, § 7)

§ 2609 Inspection and Testing.

The Purchasing Manager shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The Purchasing Manager shall have authority 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. 88-829, § 1; Ord. 98-1134, § 1; Ord. 00-1216, § 8. Formerly 2610)

§ 2610 Services.

Procurement of services of an estimated value in the amount of $25,000 or less may, with the written approval of the City Manager, be made by the Purchasing Manager. Procurement of services of more than $25,000 shall be approved by the City Council.

(a) Minimum Number of Proposals. Procurement of services of an estimated value of less than $10,000 shall require at least one (1) written proposal; procurement of services of an estimated value of $10,000 or more but less than $25,000 shall require at least two (2) written proposals; and procurement of services of an estimated value of $25,000 or more shall require at least three (3) written proposals.

(b) Retention of Proposals. Proposals shall be submitted to the Purchasing Manager who shall keep a record of all proposals for a period of two (2) years after submission of proposals. This record, while so kept, shall be open to public inspection, except that proposer proprietary data shall not be open to public inspection except as otherwise required by law. (Ord. 98-1134, § 1; Ord. 00-1216, §§ 8, 9. Formerly 2611)