Chapter 2.7
PURCHASING SYSTEM*
Sections:
2.7.04 Purchasing Agent: Powers and duties.
2.7.06 Authorization levels for purchases and contracts.
2.7.07 Formal bids or proposals.
2.7.10 Surplus supplies, equipment, and confiscated Police Department property.
2.7.11 Acceptance of gratuities prohibited.
2.7.12 Local business preference.
* Sections 2.7.01 through 2.7.16, as added by Ordinance No. 450, effective May 1, 1968, as amended by Ordinance No. 71-11, effective May 19, 1971, repealed by Ordinance No. 87-22, effective November 18, 1987.
2.7.01 Adopted: Purposes.
A purchasing system is hereby adopted for the following purposes:
(a) To establish and maintain uniform policies and procedures for the purchase of supplies, services, and equipment;
(b) To secure for the City supplies, services, and equipment at the lowest possible cost commensurate with the quality and quantity needed, availability of the items, and the ultimate use intended;
(c) To exercise positive financial control over purchasing; and
(d) To clearly define the authority for the purchasing functions. (§ 2, Ord. 87-22, eff. November 18, 1987)
2.7.02 Purchasing Department.
The General Services Department is designated as the Purchasing Department of the City. Wherever the term “Purchasing Department” is used in this chapter, it shall refer to and be interchangeable with the term “General Services Department.” (§ 2, Ord. 87-22. eff. November 18, 1987, as amended by § 1, Ord. 99-16, eff. July 29, 1999)
2.7.03 Purchasing Agent.
The City Manager shall be and is designated as the Purchasing Agent for the City. Wherever the term “Purchasing Agent” is used in this Code, it shall refer to and be interchangeable with the term “City Manager.” The City Manager may authorize the General Services Director, or any other designated employee, to be the City Manager’s authorized designee to perform the duties of the City’s Purchasing Agent. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 2, Ord. 99-16, eff. July 29, 1999; § 1, Ord. 15-10, eff. April 15, 2015)
2.7.04 Purchasing Agent: Powers and duties.
The Purchasing Agent shall have general supervision of the purchasing functions of the City. The duties and functions of the Purchasing Agent shall be as follows:
(a) To establish a system of centralized purchasing for City procurement;
(b) To review purchases required by the several departments of the City for conformity with established procedures;
(c) To review the warehouse and storage facilities of the City for proper inventory control and records;
(d) To control emergency purchases in accordance with approved procedures;
(e) To review the preparation and maintenance of standard specifications for materials, supplies, and equipment whenever practicable;
(f) To maintain records relating to sources of supply for types of purchases, including vendor lists, bids, lists of prospective responsible bidders, and bid quotations;
(g) To maintain an inventory record of all capital outlay items owned by the City, including land, buildings, and equipment, and to ensure that they are properly recorded in the City’s accounting system;
(h) To dispose of all salvage materials and equipment; and
(i) To keep informed of current developments in the field of purchasing, prices, market conditions, and new products. (§ 2, Ord. 87-2, eff. November 18, 1987, as amended by § 2, Ord. 15-10, eff. April 15, 2015)
2.7.05 Purchasing Manual.
The Purchasing Agent shall prepare, or cause to be prepared, rules and regulations for the administration of the purchasing system created by the provisions of this chapter. Upon the approval of such rules and regulations by the City Manager, they shall be reproduced as a Purchasing Manual, and copies of the Purchasing Manual shall be made available to each department head and officer of the City. (§ 2, Ord. 87-22, eff. November 18, 1987)
2.7.06 Authorization levels for purchases and contracts.
Except as provided in Section 2.7.08 (Bidding exceptions), the following approval levels shall apply to purchases. Authorization levels include the authority to sign contracts as set forth in Section 2.2.113.
(a) Single purchases in excess of sixty thousand and no/100ths dollars ($60,000.00) shall be authorized by the Council and shall be made by formal bidding or proposal procedures established in the Purchasing Manual, unless expressly waived by the Council.
(b) Any purchase of more than thirty thousand and no/100ths dollars ($30,000.00) up to sixty thousand and no/100ths dollars ($60,000.00) shall require at least three (3) quotations and shall be authorized by the City Manager; provided, the expenditure is within the budget limitation. However, if there are fewer than three (3) available vendors, the City Manager may authorize a purchase with fewer than three (3) quotations.
(c) Any purchase of more than ten thousand and no/100ths dollars ($10,000.00) up to thirty thousand and no/100ths dollars ($30,000.00) may be authorized by a department head; provided, the expenditure is within the budget limitation. Unless there are fewer than three (3) available vendors, the department head shall first obtain three (3) informal quotations.
(d) A department head may purchase equipment, supplies, or services up to ten thousand and no/100ths dollars ($10,000.00) in the open market; provided, such expenditures are within the budget limitations.
(e) Separate purchases of components of equipment, or phasing of projects, solely to avoid the provisions of this section shall not be permitted. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 3, Ord. 99-16, eff. July 29, 1999; § 2, Ord. 13-24, eff. December 4, 2013; § 1, Ord. 19-06, eff. May 8, 2019)
2.7.07 Formal bids or proposals.
(a) Notices inviting bids or proposals. Notices inviting bids or proposals shall include a general description of the articles to be purchased or sold and shall state where the forms and specifications may be secured and the time and place for opening bids or proposals. The notices shall be signed by the City Manager.
(1) Published notices. Unless otherwise provided, each notice inviting bids or proposals shall be published once at least ten (10) days before the date set for opening bids or proposals. Such publication shall be in a newspaper of general circulation in the City or as may be required by State laws.
(2) Vendor list. Bids or proposals from responsible prospective suppliers whose names are on a vendor’s list shall also be solicited.
(3) Conditions. The bid or proposal form shall state any qualifications for acceptable vendors and shall state the manner in which bids or proposals will be evaluated.
(b) Procedures for opening bids or proposals. Sealed bids and proposals shall be carefully safe-guarded until the hour established for opening such bids or proposals. Sealed bids shall be submitted to the City Clerk and shall be identified as bids on the envelopes. The bids shall be opened in public at the time and place stated in the public notice. The City Clerk shall read the name of each bidder and the total price. Unit prices will be read upon request. A tabulation of all bids received shall be open for public inspection during regular business hours. Proposals shall be submitted to the requesting department. Results of the proposals shall not be divulged until after the time has passed for submittal.
(c) Procedures for opening electronic bids or proposals. Electronic bids and electronic proposals shall be carefully safeguarded until the hour established for opening such bids or proposals. Electronic bids shall be submitted to the City Clerk through the City’s online procurement system and shall be identified as bids in the submissions. The bids shall be opened pursuant to the procedure(s) stated in the public notice. A tabulation of all bids received shall be made available for public inspection through the City’s online procurement system, subject to the City Clerk’s review and verification. Electronic proposals shall be submitted to the requesting department. Results of the electronic proposals shall not be divulged until after the time has passed for submittal.
(d) Rejection of bids or proposals. The Council, in its discretion, may reject any and all bids presented under the formal bidding procedure. Proposals may be rejected by the appropriate department head or the City Manager.
(e) Award of contracts. Contracts shall be awarded to the vendor whose bid or proposal is determined to be to the best advantage of the City, except as otherwise provided in this section and as provided in the Purchasing Manual.
(f) Tie bids. If two (2) or more bids are for the same total amount or unit price, quality and service being equal, the Council or the City Manager may choose and accept one of the bids. In the event of a tie, preference shall be given to local vendors based on the amount of sales tax returned to the City.
(g) Lowest responsible bidders or proposal. All valid responsible bids or proposals shall be considered in determining which is the best. Late or incomplete bids and proposals and void bids shall be disregarded. The designated official shall take into consideration the delivery terms, conditions, and conformity with the specifications and other factors identified in the Purchasing Manual. If the lowest vendor is unknown or if his responsibility is in question, proof of such vendor’s responsibility may be required.
(h) Performance bonds. Before entering into a contract, the Council may require a performance bond in such amount as the Council shall find reasonably necessary to protect the best interests of the City. If such bond is required, the form and amount of the bond shall be described in the specifications. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 4, Ord. 99-16, eff. July 29, 1999; § 3, Ord. 15-10, eff. April 15, 2015)
2.7.08 Bidding exceptions.
(a) Emergency purchases. Purchases of an emergency nature may be made as the need arises, and such purchases shall be exempt from the requirements of this section; provided, however, such emergency purchases shall be made only in accordance with the established rules and regulations of the Purchasing Manual.
(b) Professional consulting services, except architects and engineers. In accordance with the dollar authorization levels set forth in Section 2.7.06, consulting services may be obtained without requiring the formal bidding procedure, using the following procedures:
(1) For contracts in excess of sixty thousand and no/100ths dollars ($60,000.00), written proposals shall be requested from at least three (3) potential vendors, if available, and shall be selected in accordance with the Purchasing Manual and approved by the Council.
(2) For contracts of sixty thousand and no/100ths dollars ($60,000.00) or less, proposals shall be requested from at least three (3) potential vendors, if available. The department head shall evaluate the proposals and recommend a vendor for the approval of the City Manager.
(3) In evaluating proposals for consulting services, the City shall take into account all factors, including the costs to the City, the timeliness of the completion schedule, the qualifications and capability of the consultant, prior experience on City projects and other factors as provided in the Purchasing Manual.
(4) Subject to the adopted budget, the renewal of ongoing consulting arrangements may be approved by the City Manager.
(c) Consulting architects and engineers. Consulting architectural and engineering services as may be required to implement the Five-Year Capital Improvement Program, or to evaluate private development projects, may be obtained in accordance with this subsection.
(1) The City Manager shall annually recommend a list of qualified consulting architects and engineers for approval by the Council.
(2) Architects and engineers shall be selected by one of two methods: (a) from the approved lists by the City Engineer, with approval by the City Manager; or (b) pursuant to the procedures set forth in subsection (b) of this section.
(3) Contracts in excess of sixty thousand and no/100ths dollars ($60,000.00) shall be exempt from the provisions of this chapter requiring Council approval, provided those services are identified in the adopted budget.
(4) The Council may determine that architectural or engineering services for certain public works projects may require specialized consulting services and may authorize a formal request for proposal process.
(d) Master service agreements. A department head may enter into a master service agreement (“MSA”) for purchases with one or more vendors. The purpose of the MSA is to retain a vendor under contract for small, miscellaneous, and routine work and projects that may be needed from time to time and which are not required to be publicly bid. MSAs may be utilized for individual purchases up to thirty thousand and no/100ths dollars ($30,000.00). A department head desiring to enter into an MSA shall solicit proposals from interested vendors. The department head shall evaluate complete proposals and may enter into an MSA with those vendors qualified to perform the desired work. MSAs shall be good for a period of up to two (2) years. Department heads may utilize the services of a vendor through a MSA without following the quotation procedures set forth in Section 2.7.06. There is no requirement to rotate work among vendors subject to an MSA, but when feasible department heads shall evenly distribute the work among equally qualified vendors. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 1, Ord. 94-2, eff. February 17, 1994; § 5, Ord. 99-16, eff. July 29, 1999; § 3, Ord. 13-24, eff. December 4, 2013; § 1, Ord. 19-06, eff. May 8, 2019)
2.7.09 Purchase orders.
Purchases of supplies, services, and equipment shall be made by purchase orders duly issued in accordance with the established rules and regulations provided in the Purchasing Manual. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 6, Ord. 99-16, eff. July 29, 1999)
2.7.10 Surplus supplies, equipment, and confiscated Police Department property.
(a) Departmental reports. Departments shall submit to the City Manager reports showing supplies, equipment, and confiscated property which are no longer in use or which have become obsolete.
(b) Sales or trades. Surplus equipment, supplies, and confiscated property shall be disposed of in accordance with the rules and regulations provided in the Purchasing Manual. (§ 2, Ord. 87-22, eff. November 18, 1987, as amended by § 7, Ord. 99-16, eff. July 29, 1999)
2.7.11 Acceptance of gratuities prohibited.
Each officer and employee of the City is hereby prohibited from accepting, directly or indirectly, any rebate, gift, money, or anything of value whatsoever from any person to whom any purchase order or contract is or might be awarded. (§ 2, Ord. 87-22, eff. November 18, 1987)
2.7.12 Local business preference.
(a) Definitions. For the purposes of this chapter “local business” means a business enterprise, including but not limited to a sole proprietorship, partnership, or corporation, which has a legitimate business presence in the City of Clovis, California. Evidence of a legitimate business presence in the City of Clovis shall include:
(1) Having a current City of Clovis business license if required by the City; and
(2) Having either of the following types of offices operating legally within the City of Clovis:
(a) The principal business office, or
(b) A regional, branch, or satellite office with at least one full-time employee, located in the City of Clovis.
(b) Application of preference in award of contracts. Except as otherwise provided in subsection (c) of this section, where price is the determinative factor in the award of a contract, the Purchasing Agent shall apply the following local business preference for bid processes involving purchases of supplies, services, and equipment.
(1) When competitive bidding is used pursuant to this chapter or the City’s Purchasing Manual, and the lowest responsible bidder is not a local business, the Purchasing Agent shall provide the lowest responsible local business bidder, who is within five percent (5%) of the lowest responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder. Notice shall be by telephone, facsimile or electronic mail. The local business shall have two (2) business days after the date of such notice to match the lowest responsible bid in writing. Should the local business so match, it will be deemed the lowest responsible bidder and receive the award.
(2) Should the lowest responsible local business bidder decline to match, the Purchasing Agent shall provide the next lowest responsible local bidder who is within five percent (5%) of the lowest responsible bidder with the same notice and opportunity to match the bid of the lowest responsible bidder as outlined in subsection (b)(1) of this section. This process shall continue as necessary until an award is made either to a responsible local business bidder who is within five percent (5%) of the lowest responsible bidder, or the lowest responsible bidder itself.
(3) In instances where a local business and a nonlocal business submit equivalent lowest responsible bids, the Purchasing Agent shall give preference to the local business.
(4) No contract awarded to a local business under this section shall be assigned or subcontracted in any manner that permits more than fifty percent (50%) of the dollar value of the contract to be performed by an entity that is not a local business.
(5) In submitting a bid subject to this section, a local business shall affirm its compliance as defined in subsection (a) of this section on a form to be provided by the Purchasing Agent, and the Purchasing Agent may request additional documents or reasonably investigate in order to verify a business’s claimed local status.
(6) In the event the only bidders are local, the bid will be awarded to the lowest responsible bidder without an opportunity to match.
(7) In the event there are two (2) or more local businesses whose bids are tied and within five percent (5%) of the lowest responsible bid, the Purchasing Agent or designee shall determine the tie as provided in Section 2.7.07(e). The winner of the tie will be contacted with the option to match the lowest nonlocal bid pursuant to the process outlined in subsection (b)(1) of this section. If they decline, the local business whose bid was tied will be contacted and given the opportunity to match the bid pursuant to subsection (b)(2) of this section.
(c) Exceptions. This section and the local preference policy shall not be applicable to: (i) construction agreements or other contracts required by state or federal statutes or regulations to be awarded to the “lowest responsible bidder”; (ii) procurements based on a request for proposals process, in which price may not be the sole determining factor in awarding a contract; or (iii) where legal constraints on the expenditure of funds prohibit the applications of the preference.
(d) Disqualification. Any business falsely claiming to be a local business as defined under subsection (a) of this section will be subject to disqualification as provided in the City’s Purchasing Manual. (§ 2, Ord. 12-05, eff. July 18, 2012)