Chapter 3.24
PURCHASING SYSTEM
Sections:
3.24.010 Adoption of purchasing system.
3.24.020 Inapplicability of chapter.
3.24.050 Use of State Department of General Services.
3.24.070 Informal bidding procedure.
3.24.080 Bidding procedure for purchasing between $15,000 and $50,000.
3.24.090 Formal bidding procedure.
3.24.100 Inspection – Testing.
3.24.110 Encumbrance of funds.
3.24.010 Adoption of purchasing system.
In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies 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. (Ord. 02-01 § 2, 2002)
3.24.020 Inapplicability of chapter.
This chapter shall not apply to a public project as defined in California Public Contracts Code Section 20161, except the procedure provided in HMC 3.24.050 may be used in the discretion of the city manager. (Ord. 02-01 § 2, 2002)
3.24.030 Purchasing officer.
The city manager shall be the purchasing officer, and shall have authority to:
A. Purchase or contract for supplies and equipment required by the city or any city department in accordance with the provisions of this chapter, such administrative regulations as the purchasing officer may adopt, and such other rules and regulations as may be prescribed by the council;
B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment;
C. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;
D. Discourage uniform bidding and endeavor to obtain, whenever practical, as full and open competition as possible on all purchases;
E. Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the city;
F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the file of purchasing, prices, market conditions and new products;
H. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;
I. Supervise the inspection of all supplies and equipment purchased to ensure conformance with specifications;
J. Recommend 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 agency or which have been unsuitable for city use;
K. Maintain or cause to be maintained a bidders list, vendors catalog file and records needed for the efficient operation of the purchasing department. (Ord. 02-01 § 2, 2002)
3.24.040 Definitions.
A. Whenever in this chapter the word “cost,” “price,” “value,” or words of similar import are used, they shall include not only direct cost, price, or value, but shall also include associated cost, such as, but not limited to, sales tax, shipping charges, or other cost or expense which would be incurred by the city, so that a total cost, price, or value may be used to compare bids, price, or cost.
B. The city shall give preference to businesses located within the city (“local businesses”) when the difference between the bids from Hughson businesses and those outside the city is less than the current sales tax benefit the city would receive from the local sales tax and the local business will be able to provide goods or services which are equal in quality to those of other competing bidders and meet all bid specifications. (Ord. 09-07 § 1, 2009; Ord. 02-01 § 2, 2002)
3.24.050 Use of State Department of General Services.
The purchasing officer is authorized to purchase material, equipment, or supplies which he or she is otherwise authorized to purchase, and which are within the city’s adopted budget, in accordance with California Public Contracts Code Section 10298, by complying with that Section 10298, and any required regulations of the Department of General Services. In such event, the remaining sections of this chapter shall not be applicable. (Ord. 02-01 § 2, 2002)
3.24.060 No bidding required.
Purchase of supplies and equipment shall normally be by bid procedures pursuant to this chapter, as applicable; provided, however, that bidding may be dispensed with in the following circumstances:
A. When an emergency requires that an order be placed with the nearest available source of supply immediately;
B. When the commodity can be purchased only from one vendor or supplier, or, in the case of vehicles, machinery or other equipment, where the commodity can be reasonably repaired or otherwise serviced by only one vendor or supplier; or
C. Where the estimated purchase price is equal to or less than $5,000. (Ord. 02-01 § 2, 2002)
3.24.070 Informal bidding procedure.
Where the estimated value of the purchase of supplies or equipment is greater than $5,000, but less than $15,000, the purchasing officer may make the purchase in the open market under the following procedure (this procedure may be referred to as the “open market” procedure), and need not return to the city council for authorization to make the purchase, if the purchase is authorized in the budget.
A. Inviting Bids. The purchasing officer shall solicit bids by written request to prospective vendors, or by telephone, or by public notice posted at City Hall, or any convention thereof.
B. Bids. Bids received shall be kept by the purchasing officer for a period of one year after the submission of bids, and shall be public record.
C. Award of Bids. The purchasing officer shall award the bid to the bidder who best meets the city’s needs, including timing, cost, responsiveness, service availability (where appropriate) and responsibility. (Ord. 02-01 § 2, 2002)
3.24.080 Bidding procedure for purchasing between $15,000 and $50,000.
Where the estimated value of the purchase of supplies or equipment is equal to or greater than $15,000, but less than $50,000, the purchasing officer may utilize the procedure specified in HMC 3.24.070 to obtain bids; provided, however, that he shall first obtain the consent of the city council before awarding any contract or purchase. (Ord. 02-01 § 2, 2002)
3.24.090 Formal bidding procedure.
Except as otherwise provided herein, purchases and contracts for supplies and equipment of estimated value equal to, or greater than, $50,000 shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed herein.
A. Notice Inviting Bids. Notice inviting 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 bids shall be published at least 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 public places in the city that have been designated as places for posting public notices or ordinances.
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 be added thereto.
3. Bulletin Board. The purchasing officer shall also advertise pending purchases by a notice posted on a public bulletin board in the City Hall.
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 return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the council awards the contract to the next lowest responsible 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 officer 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 30 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 city council to the lowest responsive, responsible bidder, except as otherwise provided herein.
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 readvertising for bids, the council may accept the one it chooses or accept the lowest bid made by negotiation with the bidders at the time of the bid opening.
G. Performance Bonds. The council shall have the authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interest of the city. If the council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 02-01 § 2, 2002)
3.24.100 Inspection – Testing.
The purchasing officer shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The purchasing officer 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. 02-01 § 2, 2002)
3.24.110 Encumbrance of funds.
Except in cases of emergency, the purchasing officer shall not issue any purchase order of supplies or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. (Ord. 02-01 § 2, 2002)