Chapter 2.60
PURCHASING SYSTEM
Sections:
2.60.010 Adoption of purchasing system.
2.60.020 Purchasing officer – Powers and duties.
2.60.030 Exemptions from centralized purchasing.
2.60.040 Estimates of requirements.
2.60.050 Repealed by Ord. 1681.
2.60.060 Application of procedures.
2.60.080 Encumbrance of funds.
2.60.090 Formal contract procedure.
2.60.095 Small business credit.
2.60.100 Open market procedure.
2.60.110 Inspections and testing.
2.60.120 Surplus supplies and equipment.
2.60.130 Professional services and specialized services.
2.60.140 Cooperative purchasing.
2.60.150 Policy on rejection of lowest bids.
2.60.160 Special opportunity purchases.
2.60.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city 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 adopted. (Prior code § 2-8.01)
2.60.020 Purchasing officer – Powers and duties.
The position of purchasing officer is created. The city manager or an appointee of the city manager shall be the purchasing officer.
The purchasing officer shall have the authority to:
A. Purchase or contract for the supplies, services and equipment required by the city in accordance with the procedures set forth in this code or adopted by the council;
B. Negotiate and recommend the execution of contracts for the purchase of supplies, services, and equipment;
C. Act to procure for the city the needed quality in supplies, services and equipment at the least expense to the city;
D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;
E. Prepare and recommend to the council rules governing the purchase of supplies, services and equipment for the city;
F. Prepare and recommend to the council revisions and amendments to the purchasing policy;
G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
H. Prescribe and maintain such procedures and forms as are reasonably necessary to the operation of this chapter and other rules and regulations;
I. Supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;
J. Supervise the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use;
K. Maintain a Bidders’ List, Vendors’ Catalog File and records of all purchases made for the city; and
L. Establish wherever feasible marketing outreach and procurement procedures that ensure local vendors are included as sources for all purchases and are given an opportunity to do business with the city. (Ord. 1686 §§ 1, 2, 2006; prior code § 2-8.03)
2.60.030 Exemptions from centralized purchasing.
The purchasing officer may authorize in writing any department to purchase or contract for specified supplies, services and equipment independently of the purchasing department; provided, however, the purchasing officer shall require that such purchases or contracts be made in conformity with the procedures established by this chapter. (Ord. 1686 § 3, 2006; prior code § 2-8.04)
2.60.040 Estimates of requirements.
All operating departments shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe. (Ord. 1686 § 4, 2006; prior code § 2-8.05)
2.60.060 Application of procedures.
The procedures set forth in this chapter apply to purchases of supplies, services and equipment and are adopted pursuant to Government Code Section 54202. In addition, the procedures apply to the sale of personal property. Except for the credit set forth in Section 2.60.095, nothing in this chapter shall apply to contracts for public projects as defined in Public Contract Code Section 20161. The purchasing officer shall adopt regulations for the implementation of the provisions of this chapter. (Ord. 1686 § 6, 2006; prior code § 2-8.07)
2.60.070 Purchases.
Purchases of supplies, services and equipment may be made by check request, purchase order, written contract, or other means as determined by the purchasing officer consistent with the provisions of this chapter. (Ord. 1686 § 7, 2006; prior code § 2-8.08)
2.60.080 Encumbrance of funds.
Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services, or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. (Prior code § 2-8.09)
2.60.090 Formal contract procedure.
Except as otherwise provided in this chapter, purchases and contracts for supplies, services and equipment, and the sale of personal property, of estimated value greater than fifty thousand dollars ($50,000) shall be by formal bid process and by written contract with the lowest or highest responsible bidder, as the case may be, pursuant to the following procedure:
A. Notices Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold and shall state where bid information and specifications may be secured and the time and place for opening bids.
1. Published Notices. Notices inviting bids shall be published at least ten business days before the date of the opening of the bids. Such notices shall be published at least once in a newspaper of general circulation printed and published in the city, or, if there is none, they shall be posted in at least three public places for posting public notices.
2. Bidders’ List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the Bidders’ List or who have requested their names to be added thereto. The purchasing officer shall annually review the Bidders’ List and the city’s business license records, and shall make appropriate efforts to update the Bidders’ List to include businesses located in the city.
3. Bulletin Board. The purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the City Hall, on the City’s official website, cable television bulletin board and other appropriate electronic media.
B. Bidders’ Security. When deemed necessary by the purchasing officer, bidders’ security may be prescribed in the public notices inviting bids. Bidders shall be entitled to the return of bid security; provided, however, a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten days after the notice of the award of the contract has been mailed unless the city is responsible for the delay. The council, on the refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder. If the council awards the contract to the next lowest bidder, the amount of the lowest bidders’ 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 city clerk and shall be identified as bids on the envelope. Such 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 calendar days after the bid opening.
D. Rejection of Bids. In its discretion, the council may reject any and all bids presented and re-advertise for bids.
E. Award of Contracts. Contracts shall be awarded by the council to the lowest responsible bidder, except as otherwise provided in this chapter.
F. 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 will not permit the delay of re-advertising for bids, the council may accept the bid it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.
G. Performance Bonds. The purchasing officer shall have the authority to require a performance bond before entering into a contract in such amount as the purchasing officer shall find 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. 1686 § 8, 2006; prior code § 2-8.10)
2.60.095 Small business credit.
A. In determining the lowest responsible bidder for any city contract that is for two hundred fifty thousand dollars or less and where responsibility and quality are equal, a credit of five percent of the bid submitted by the lowest responsible bidder meeting specifications shall be given to a bidder that (1) qualifies as a small business as defined in this section, (2) meets the small business subcontracting participation goal established by resolution of the city council, or (3) is a disabled veteran business enterprise.
B. At two-year intervals commencing on July 1, 2012, the two hundred fifty thousand dollar total cost limit shall be adjusted upward or downward by the city manager to reflect the percentage change in the Consumer Price Index for All Urban Consumers in the Los Angeles-Riverside-Orange Country Area over the previous two years. The amount shall be rounded off to the nearest one thousand dollar figure.
C. No credit shall be given pursuant to this section where legal constraints on the expenditure of funds prohibit the giving of such a credit.
D. As used in this section, “small business” means a business entity that has for at least the twelve months prior to submittal of its bid (1) held a current business license issued by the city; and (2) maintained its principal business office within the city’s geographic boundaries, and that either employs fewer than one hundred employees or has average annual gross receipts of ten million dollars or less over the previous three years.
E. As used in this section, “disabled veteran business enterprise” means a disabled veteran business enterprise as defined in Military and Veterans Code Section 999(g) as it may be amended from time to time. (Ord. 1717 § 1, 2010: Ord. 1686 § 9, 2006)
2.60.100 Open market procedure.
Except as otherwise required under federal or state law, purchases of supplies, equipment and contractual services and the sale of personal property of an estimated value of fifty thousand dollars or less may be made in the open market by the purchasing officer. Purchases greater than fifty thousand dollars shall be approved by the city council. The purchasing officer shall attempt to obtain information relating to prices and availability of such supplies, equipment or services from different sources prior to making the purchase. Whenever possible, local vendors shall be included as sources. (Ord. 1861 § 1, 2024; Ord. 1780 § 1, 2017: Ord. 1686 § 10, 2006; Ord. 1493 § 1, 1996: prior code § 2-8.11)
2.60.110 Inspections and testing.
The purchasing officer shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have the 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. (Prior code § 2-8.12)
2.60.120 Surplus supplies and equipment.
All department heads shall submit to the purchasing officer, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. If such an item is still serviceable, the purchasing officer shall first make an attempt to relocate the item for continued use in other departments. If such item has become unsuitable for city use, the purchasing officer shall have the authority to sell, exchange, or otherwise dispose of all supplies and equipment, provided the item sold or disposed of does not have a current salvage value of more than twenty-five thousand dollars ($25,000). The purchasing officer is charged with the responsibility to secure the highest value possible in the disposal of city goods. Such sales shall be made pursuant to Sections 2.60.090 or 2.60.100 where applicable. (Ord. 1686 § 11, 2006; prior code § 2-8.13)
2.60.130 Professional services and specialized services.
Contracts for specialized services and professional services by persons, firms, companies, or corporations shall be made subject to either the formal contract procedure or the open market procedure, except that there shall be no requirement to solicit bids. (Prior code § 2-8.14)
2.60.140 Cooperative purchasing.
Where purchases are to be made in concert with other governmental agencies, formal bid requirements as set forth in this chapter shall be waived and the purchasing officer shall be authorized to procure materials, supplies and services in cooperation with other governmental or public entities. (Prior code § 2-8.15)
2.60.150 Policy on rejection of lowest bids.
The council, upon the recommendation of the purchasing officer, may find and determine that a certain type, make, brand, special service, supply, or piece or make of equipment is the most economical for use by the city even though a bid on similar merchandise or equipment is lower at initial cost. Since these economical factors could make considerable long-range cost savings, the council’s decision shall be final and conclusive. The council, after making such a determination, may authorize the purchasing officer to dispense with bids and purchase such equipment. (Prior code § 2-8.16)
2.60.160 Special opportunity purchases.
Special opportunity purchases may be made by the purchasing officer where the purchasing officer finds that there is a current need for the purchase and that the proposed purchase is either below the current market price, will result in monetary savings to the city, or will result in savings in time of delivery or time of installation. (Ord. 1686 § 12, 2006; prior code § 2-8.17)
2.60.170 Emergencies.
In the event of an emergency, the provisions in this chapter may be dispensed with and purchases made by the most advantageous method available. The purchasing officer shall be responsible for documenting such purchases and, whenever such purchase is in response to a disaster situation, the purchasing officer shall seek reimbursement from the appropriate state and or federal agencies. (Ord. 1686 § 13, 2006; prior code § 2-8.18)
2.60.180 Recycled-content paper procurement requirements for city departments, direct service providers, and vendors.
A. All vendors providing paper products and printing and writing paper shall:
1. If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least thirty percent, by fiber weight, postconsumer fiber instead of nonrecycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than nonrecycled items or at a total cost of no more than ten percent of the total cost for nonrecycled items.
2. Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standards as defined in 16 CFR Section 260.12.
3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the city. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
4. Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the city are eligible to be labeled with an unqualified recyclable label as defined in 16 CFR Section 260.12 (2013).
5. Provide records to the city’s recordkeeping designee of all paper products and printing and writing paper purchases within thirty days of the purchase (both recycled-content and nonrecycled content, if any is purchased) made by any division or department or employee of the city. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in Sections 308.150(a)(3) and 308.150(a)(4) for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if nonrecycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided.
6. Maintain records required by 308.150(a)(5) for five years.
B. Definitions.
1. “Paper products” includes, but is not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).
2. “Printing and writing papers” includes, but is not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).
3. “Recycled-content paper” means paper products and printing and writing paper that consists of at least thirty percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61). (Ord. 1837 § 3, 2021)