Chapter 3.98
PURCHASING OF SUPPLIES, EQUIPMENT AND SERVICES
Sections:
3.98.010 Purpose.
3.98.020 Application.
3.98.030 Definitions.
3.98.040 Establishment of division of purchases.
3.98.050 Duties.
3.98.060 Operational procedures.
3.98.070 Delegation.
3.98.080 Consideration of bids and basis of award.
3.98.090 Justification for acceptance of high bid.
3.98.100 Preference given to bidder within city when bids are equal.
3.98.110 Brand names or equal specification.
3.98.120 Preference given to bidder(s) supplying recycled paper and paper products.
3.98.130 Procedure for purchase of supplies, equipment and services.
3.98.140 Consultants.
3.98.150 Emergency authority of purchasing agent.
3.98.160 Waiver of informalities--Rejection of bids.
3.98.170 Purchase through a governmental entity.
3.98.180 Competitive bids (notice).
3.98.190 Competitive bids.
3.98.200 Bid deposits.
3.98.210 Faithful performance deposits.
3.98.220 Additional powers and duties of purchasing agent.
3.98.230 Request for sealed proposals (RFP).
3.98.240 Preparation of purchase orders.
3.98.250 Sufficient funds must be available.
3.98.260 Department head responsible for checking quality.
3.98.270 Purchasing agent to check invoice.
3.98.280 Purchasing agent’s inspection.
3.98.290 Storerooms and warehouses.
3.98.300 Disposal of less than one thousand dollars.
3.98.310 Deposit.
3.98.320 Disposal of more than one thousand dollars.
3.98.330 Exclusions from chapter.
3.98.010 Purpose.
The purpose of this chapter is to maximize the purchasing value of public funds in procurement, and to provide safeguards for maintaining a procurement system of qualify and integrity. (Ord. 12-95 §2(part), 1995).
3.98.020 Application.
Except as otherwise provided herein, this chapter applies to contracts for the procurement of supplies and services, entered into by the city. When the procurement involves the expenditure of federal assistance or contract funds, the procurement shall be conducted in accordance with mandatory applicable federal law and regulations. Nothing in this chapter shall prevent any public agency from complying with the terms and conditions of any grant, gift or bequest that is otherwise consistent with law. (Ord. 12-95 §2(part), 1995).
3.98.030 Definitions.
A. “Architect-engineer and land surveying services” means those professional services within the scope of practice of architecture, professional engineering, or land surveying, as defined by the laws of the state.
B. “Brand name or equal specification” means a specification limited to one or more items by manufacturers’ names or catalogue numbers to describe the standard of quality, performance, and other salient characteristics needed to meet city requirements, and which provides for the submission of equivalent products.
C. “Brand name specification” means a specification limited to one or more items by manufacturers’ names or catalogue numbers.
D. “Business” means any corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, or any other private legal entity.
E. “City” means the city of Half Moon Bay.
F. “Invitation for bids” means all documents, whether attached or incorporated by reference, utilized for soliciting bids.
G. “Person” means any business, individual, union, committee, club, or other organization, or group of individuals.
H. “Procurement” means the buying, purchasing, renting, leasing or otherwise acquiring of any supplies or services. It also includes all functions that pertain to the obtaining of any supply or service, including description of requirements, selection, and solicitation
of sources, preparation and award of contract, and contract administration.
I. “Quote” is synonymous with bid as used in this chapter.
J. “Services” means the furnishing of labor, time, or effort, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance. This term shall not include employment agreements or collective bargaining agreements.
K. “Specification” means any description of the physical or functional characteristics or of the nature of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing or preparing a supply or service for delivery.
L. “Supplies” means all property (including but not limited to equipment and materials) except as otherwise provided herein.
M. “Surplus supplies” means supplies which are worn out, obsolete or unsuitable for city use. (Ord. 12-95 §2(part), 1995).
3.98.040 Establishment of division of purchases.
There is established for the city a division of purchases, headed by a purchasing agent. The city manager or the city manager’s designee shall be the purchasing agent of the city. Preference shall be given for the city manager to designate the finance director as purchasing agent. (Ord. 6-06 §1, 2006: Ord. 12-95 §2(part), 1995).
3.98.050 Duties.
In accordance with this chapter, the purchasing agent shall:
A. Procure or supervise the procurement of all supplies and services needed by the city, except as otherwise provided herein;
B. Exercise direct supervision over the city central stores and general supervision over all other inventories of supplies belonging to the city;
C. Sell, trade or otherwise dispose of surplus supplies belonging to the city; and
D. Establish and maintain programs for specifications development, contract administration and inspection and acceptance, in cooperation with the public agencies using the supplies and services. (Ord. 12-95 §2(part), 1995).
3.98.060 Operational procedures.
Consistent with this chapter, the purchasing agent may adopt operational procedures relating to the execution of duties. (Ord. 12-95 §2(part), 1995).
3.98.070 Delegation.
The purchasing agent may delegate authority to purchase supplies or services, and to dispose of surplus supplies, to other city officials if such delegation is deemed necessary for the effective procurement or disposal of those items, and is authorized by the city manager. (Ord. 12-95 §2(part), 1995).
3.98.080 Consideration of bids and basis of award.
In every case, purchases shall be awarded on the basis of the bid or bids most advantageous to the city. In determining whether a bid is most advantageous to the city, in addition to price, the purchasing agent or city council may consider the following:
A. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
B. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;
C. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
D. The quality of performance of previous contracts or services;
E. The previous and existing compliance by the bidder with the laws and ordinances;
F. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
G. The quality, availability and adaptability of the supplies or contractual services to the particular use required;
H. The ability of the bidder to provide future maintenance and services for the use of the subject of the contract;
I. The number and scope of conditions attached to the bid. (Ord. 12-95 §2(part), 1995).
3.98.090 Justification for acceptance of high bid.
In cases where the purchasing agent makes the purchase and, in the opinion of the purchasing agent, the most advantageous bid is not the lowest bid, the purchasing agent shall prepare and place on file with the permanent records of the department a written statement of his or her opinion and the reasons therefor. Such statements shall be open to public inspection at all times during regular office hours. (Ord. 12-95 §2(part), 1995).
3.98.100 Preference given to bidder within city when bids are equal.
A bidder with a permanent place of business within the city shall be preferred over a bidder without a permanent place of business within the city, in cases where two or more bids are judged to be equal on the basis of price, quality and service. (Ord. 12-95 §2(part), 1995).
3.98.110 Brand names or equal specification.
A. Use. Brand name or equal specifications may be used when the purchasing agent determines that:
1. No other design or performance specification or qualified products list is available;
2. Time does not permit the preparation of another form of purchase description, not including a brand name specification;
3. The nature of the product or the nature of the city’s requirements makes use of a brand name or equal specification suitable for the procurement; or
4. Use of a brand name or equal specification is in the city’s best interest.
B. Designation of Several Brand Names.
1. Brand name or equal specifications shall state that substantially equivalent products to those designated will be considered for award.
2. Where a brand name or equal specification is used in a solicitation, the solicitation shall contain explanatory language that the use of a brand name is for the purpose of describing the standard of quality, performance and characteristics desired and is not intended to limit or restrict competition. (Ord. 12-95 §2(part), 1995).
3.98.120 Preference given to bidder(s) supplying recycled paper and paper products.
The purchasing agent shall provide a preference to the suppliers of recycled paper or paper products as defined in Section 10855 of the Public Contract Code equal to five percent of the lowest bid or price quoted by suppliers offering nonrecycled paper or paper products, provided the recycled paper is compatible with city equipment and when fitness and quality are comparable to nonrecycled paper products. (Ord. 12-95 §2(part), 1995).
3.98.130 Procedure for purchase of supplies, equipment and services.
The purchase of all supplies, equipment and nonconsultant services of the city shall be made pursuant to this section.
A. Purchases of Less Than or Equal to One Thousand Dollars. Where the amount or value is less than or equal to one thousand dollars, the purchase may be made without an informal or formal quote or bid process.
B. Purchases of Greater Than One Thousand Dollars to Ten Thousand Dollars. Where the amount or value involved is from greater than one thousand to ten thousand dollars, the purchase or disposal may be made by the purchasing agent without written quote, and by informal price-checking through telephone or mail inquiry, comparison of prices on file or otherwise. At least three informal quotations should be obtained.
C. Purchases of Greater Than Ten Thousand Dollars to Forty Thousand Dollars Made Through Formal Written Quote. Where the amount or value involved is greater than ten thousand dollars and up to forty thousand dollars, the purchase or disposal shall be made by the purchasing agent through formal written quotation, with the purchase being made in the discretion of the purchasing agent taking into account the provisions of Sections 3.98.080 through Section 3.98.120 of this chapter.
D. Purchases of Greater Than Forty Thousand Dollars Made by the City Council Through Competitive Bids. Where the amount or value involved is greater than forty thousand dollars, the purchase shall be made by the city council through competitive bids, upon notice as hereafter required by Section 3.98.180(A). Provided, however, the council may elect to make any purchase in any amount (except as the laws of the state of California otherwise require) in the following cases:
1. By affirmative vote of three councilpersons upon a determination that competitive bids upon notice would not be likely to result in lower price to the city from a responsible bidder or would cause unnecessary expense or delay under the circumstances;
2. By majority vote of councilpersons present at a council meeting that said purchase may be made through a governmental entity, as provided in Section 3.98.170 of this chapter, upon a determination that competitive bids upon notice would not be likely to result in a lower price to the city from a responsible bidder or would cause unnecessary expense or delay under the circumstances;
3. By majority vote of those present at a council meeting upon a determination that the immediate preservation of the public peace, health or safety requires said purchase be made without competitive bids upon notice;
4. By majority vote of those present at a council meeting upon a determination that there is only one source for the required supply or service based on a review of available sources by the purchasing agent or written recommendation therefor. (Ord. 6-06 §2, 2006: Ord. 12-95 §2(part), 1995).
3.98.140 Consultants.
A. The council finds and declares that the competitive bid process is ill-suited for the selection of consultants. Consultants are required for professional or technical expertise and for matters requiring specialized abilities or a high degree of skill. Their numbers (in relation to a particular skill or expertise required) are comparatively limited. Where consultants are involved, the bidding process is not likely to result in a lower price to the city or eliminate unnecessary expense or delay.
B. The purchasing agent shall be empowered to engage a consultant (including, but not limited to, material testing services and construction inspection services) without the necessity of competitive bidding or notice thereof:
1. Without council approval if the consultant’s total fee for services and materials under the contract by which the consultant is engaged does not exceed thirty thousand dollars;
2. With council approval if the consultant’s total fee for services and materials under the contract by which the consultant is engaged exceeds thirty thousand dollars. (Ord. 6-06 §3, 2006: Ord. 12-95 §2(part), 1995).
3.98.150 Emergency authority of purchasing agent.
A. In an emergency requiring the immediate preservation of the public peace, health and safety, and precluding action by the city council, the purchasing agent may purchase supplies or services, even though the amount thereof may exceed forty thousand dollars, without competitive bids upon notice.
B. At the next succeeding council meeting, the purchasing agent shall submit to the council a written statement of the circumstances of such emergency, a written description of the supplies or services purchased and the prices thereof. (Ord. 6-06 §4, 2006: Ord. 12-95 §2(part), 1995).
3.98.160 Waiver of informalities--Rejection of bids.
Where the purchasing agent or city council are required to make purchases upon competitive bids, said agent or council may waive any informalities or minor irregularities or may reject any and all bids (anything herein contained to the contrary notwithstanding) if said agent or council deems said rejection to be in the best interests of the city. Said rejection shall be at the sole discretion of the agent or council, as the case may be. Upon rejection of bids, the agent or the council, as the case may be, may (a) give subsequent notice for new competitive bids, or (b) postpone said purchase or disposal definitely or indefinitely, or (c) elect to make the purchase without competitive bids, upon notice (and as if competitive bids, upon notice, had not been required in the first instance) in accordance with the authority granted by the various subsections of this chapter. (Ord. 12-95 §2(part), 1995).
3.98.170 Purchase through a governmental entity.
Purchases may be made on behalf of the city through any governmental entity (including, but not limited to, the state of California or the county of San Mateo) pursuant to authority granted by any statute or ordinance or pursuant to contractual arrangement between the city and said governmental entity. The city is authorized and empowered to enter into contracts with other governmental entities providing for purchases to be made on behalf of the city. (Ord. 12-95 §2(part), 1995).
3.98.180 Competitive bids (notice).
Where notice is required, notice shall be given as follows:
A. For purchase under subsection 3.98.130(D) (twenty thousand and one dollars or more) by publishing notice in a newspaper of general circulation within the city on at least one occasion at least five days prior to the date set for the final receipt of bids. Provided that publication may be made in any newspaper of general circulation in San Mateo County which the purchasing agent shall select if the publication schedule of all newspapers of general circulation in the city are such that notice by publication cannot be given in time.
B. The notice shall give such information as to the proposed purchase or disposal as the purchasing agent deems sufficient but shall include the following:
1. A general description of the supplies, equipment, or nonconsultant services to be purchased or personal property to be disposed;
2. Date, time and place of bid opening;
3. Whether bid deposit or bond and faithful performance bond will be required. (Ord. 12-95 §2(part), 1995).
3.98.190 Competitive bids.
Where competitive bids are required, they shall be submitted in writing in a sealed envelope at the office of the purchasing agent no later than the final time and date for the receipt of bids as set forth in the notice of publication and opened publicly. Where competitive bids are required, the purchase or disposal shall be made on the basis of three or more of said bids unless the purchasing agent shall certify in writing that less than three prospective vendors or purchasers have submitted bids or that, to the best of the agent’s knowledge, there are less than three prospective vendors from whom the supplies or services are available and that bids were invited from all of said vendors. Any bid may be withdrawn by a written request signed by the bidder and received by the purchasing agent prior to the final time and date for the receipt of bids.
A. Opening. Bids shall be opened in public at the time and place stated in the public notices.
B. Tabulation. A tabulation of all bids received shall be posted for public inspection. (Ord. 12-95 §2(part), 1995).
3.98.200 Bid deposits.
When deemed necessary by the purchasing agent or city council, any bidder may be required to submit a bid deposit or bond in an amount determined by the purchasing agent or council. A successful bidder (and his or her surety, if a bond is furnished) shall be liable for any damages upon the bidder’s failure to enter into a contract with the city or upon the bidder’s failure to perform his or her bid. (Ord. 12-95 §2(part), 1995).
3.98.210 Faithful performance deposits.
When deemed necessary by the purchasing agent or city council, any person entering into a contract with the city may be required to furnish a faithful performance deposit or bond in an amount determined by the purchasing agent or council. Said person (and his or her surety, if a bond is furnished) shall be liable for any damages upon said person’s failure to faithfully perform the terms of his or her contract. (Ord. 12-95 §2(part), 1995).
3.98.220 Additional powers and duties of purchasing agent.
A. The purchasing agent may call for bids or give notice to any and all persons whatsoever or publish in any case where the same is not required by the terms of this chapter; and is empowered to invite bids by telephone, telegraph or by mail when deemed in the best interests of the city.
B. The purchasing agent shall keep a record of all purchases made and the bids, if any, submitted thereon. Said records shall be open to the public inspection. (Ord. 12-95 §2(part), 1995).
3.98.230 Request for sealed proposals (RFP).
A. The purchasing agent shall be empowered to utilize the request for sealed proposal method for purchase of supplies, equipment or nonconsultant services without council approval if the amount or value involved is twenty thousand dollars or less if the purchasing agent determines that the use of competitive bidding is advantageous to the city.
B. Proposals shall be solicited through a request for proposals.
C. Notice shall be given as required by Section 3.98.180 of this chapter.
D. No proposals shall be handled so as to permit disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. A register of proposals shall be prepared containing the name of each offeror and a description sufficient to identify the item offered. The register of proposals shall be open for public inspection only after contract award.
E. The request for proposals shall state evaluation factors.
F. As provided in the request for proposals, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and conformance to, the solicitation requirements. Offerors shall be accorded equal treatment with respect to any opportunity for discussion and revision of proposals and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of the identity of competing offerors or of any information derived from proposals submitted by competing offerors.
G. Award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the city, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation.
H. Without limitation to the applicability of any other provisions of this chapter, the purchasing agent or city council may reject any and all proposals if said rejection is deemed in the best interests of the city. Upon rejection, the purchasing agent or council may request new sealed proposals or utilize any alternative method allowed under this chapter. (Ord. 12-95 §2(part), 1995).
3.98.240 Preparation of purchase orders.
Upon ascertaining the price to be paid for supplies or services, the purchasing agent shall prepare a purchase order. The purchasing agent shall forward the original purchase order to the vendor, retaining one copy for his or her purchase order file. He or she shall likewise forward one copy of the purchase order to the department for whose benefit the purchase is being made to be used as a receiving report. (Ord. 12-95 §2(part), 1995).
3.98.250 Sufficient funds must be available.
No purchase order shall be issued until it has been ascertained that there is to the credit of the department of the city for whose benefit such purchase is to be made, a sufficient unencumbered appropriated balance in excess of all unpaid obligations to defray the amount of such order. (Ord. 12-95 §2(part), 1995).
3.98.260 Department head responsible for checking quality.
Upon receipt by any department of supplies or services, the department head shall be responsible for the making of a careful check of the quality, condition and quantity received as against his or her copy of the purchase order and the packing lists. The department head shall fill out the receiving report form, attaching thereto the packing lists, if any, and return the same to the purchasing agent. (Ord. 12-95 §2(part), 1995).
3.98.270 Purchasing agent to check invoice.
The purchasing agent, upon receipt of the vendor’s invoice, shall compare the same with the copy of the purchase order and the receiving report. He or she shall check the invoice for correctness of unit prices, discounts, transportation allowances, etc., and with reports of quality and quantity of goods received. (Ord. 12-95 §2(part), 1995).
3.98.280 Purchasing agent’s inspection.
The purchasing agent shall inspect, or cause to be inspected, all deliveries of supplies or services to determine their conformance to specifications. The purchasing agent shall have the authority to require chemical, physical, or other tests of samples submitted with bids and samples of deliveries which are necessary to determine quality and conformance to the specifications. In the performance of such tests, the purchasing agent shall have the authority to make use of laboratory facilities of any department of the city or any outside laboratory. (Ord. 12-95 §2(part), 1995).
3.98.290 Storerooms and warehouses.
The purchasing agent shall control and supervise any and all storerooms or warehouses of the city. The purchasing agent shall be responsible and accountable for all supplies in his or her custody and shall maintain a suitable inventory thereof. (Ord. 12-95 §2(part), 1995).
3.98.300 Disposal of less than one thousand dollars.
Except as otherwise provided by state law or city ordinance, the purchasing agent shall be empowered to dispose of personal property of the city, which cannot be used by any department of the city, at public or private sale or by renting or destroying the same, (all with or without notice, competitive bid or necessity of posting bid bonds, at the purchasing agent’s discretion, and upon such terms as he or she deems best) provided any single item of property involved does not exceed one thousand dollars in current market value. (Ord. 12-95 §2(part), 1995).
3.98.310 Deposit.
The purchasing agent may, in his or her discretion, require that a deposit in the amount of the bid or any fraction thereof accompany each bid upon the disposal of personal property. (Ord. 12-95 §2(part), 1995).
3.98.320 Disposal of more than one thousand dollars.
In the event any single item of property exceeds one thousand dollars in current market value, the city council may empower the purchasing agent to dispose of it (in accordance with the same terms and conditions and subject to the same discretion and limitations as if it were under one thousand dollars in value). Alternatively, the city council may elect to sell, rent or destroy the same in accordance with whatever provision, terms and conditions the council may, in its discretion, decide. (Ord. 12-95 §2(part), 1995).
3.98.330 Exclusions from chapter.
The provisions of this chapter shall not apply:
A. To public works projects (governed by the provisions of the California Public Contracts Code);
B. To franchises governed by the provisions of the California Public Utilities Code or other statute of the state of California;
C. Where state or federal law requires a different procedure;
D. To franchises, rights, privileges, license and permits granted by the city;
E. To the purchase of insurance;
F. To the leasing, purchase or sale of land or any interest therein;
G. To the hiring of or contracting for personnel (whether as temporary, seasonal or permanent employees, agents or independent contractors);
H. To construction contracts other than public works projects;
I. To the purchase of utilities, including, but not limited to, telephone service, gas, electricity or water. (Ord. 12-95 §2(part), 1995).