Chapter 3.08 GENERAL PROVISIONS

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. [Ord. 1109 § 1, 2003].

3.08.015 Scope of chapter.

The procedures established by this chapter shall apply only to the purchase of supplies, equipment and services, and shall not apply to public projects as defined in Section 20161 of the California Public Contract Code. A purchase shall include leasing or renting of equipment and shall be valued for purposes of applying the procedures established by this chapter at the net present value of the payment amounts as determined by the Purchasing Officer. [Ord. 1109 § 1, 2003].

3.08.020 Purchasing Officer – Office created.

There is created the position of Purchasing Officer. The Purchasing Officer shall be responsible and have general supervision of the purchasing function. The duties of the Purchasing Officer shall be combined with those of the Director of Administrative Services. The Purchasing Officer shall have the authority to:

A. Purchase or contract for supplies and equipment required by any using agency or department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Officer shall adopt for the internal management and operation of the Purchasing Department, and such other rules and regulations as shall be prescribed by the City Council or City Manager;

B. Negotiate and recommend execution of contracts or purchase orders 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 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 field of purchasing, prices, market conditions and new products;

H. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations;

I. Coordinate 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 supplies and equipment which cannot be used by any department or which becomes unsuitable for City use; and

K. Maintain a bidder’s list, vendor’s catalog file and records needed for the efficient operation of purchasing functions. [Ord. 1109 § 1, 2003].

3.08.030 Additional authorization for purchasing.

The Purchasing Officer, with approval of the City Council, may authorize in writing any agency or department to purchase or contract for specified supplies, services and equipment independently of the Purchasing Officer, but shall require that such purchases be made in conformity with the procedures established by this chapter. The Purchasing Officer shall also require that all documents supporting the formal or informal bidding procedures be attached to the City’s copy of purchase order. [Ord. 1109 § 1, 2003].

3.08.035 Estimates of requirements.

All City departments shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time, and for such future periods as the Purchasing Officer shall prescribe. [Ord. 1109 § 1, 2003].

3.08.040 Requisitions.

Each City department shall submit requests for supplies, services and equipment to the Purchasing Officer by standard requisition forms, or by other means as may be established by the purchasing rules and regulations. [Ord. 1109 § 1, 2003].

3.08.045 Purchase orders.

Purchases of supplies, services and equipment shall be made by purchase order, or by such other procedures established by the Purchasing Officer. [Ord. 1109 § 1, 2003].

3.08.050 Encumbrance of funds.

Except in cases of emergency, the Purchasing Officer shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. [Ord. 1109 § 1, 2003].

3.08.055 Inspection and testing.

The Purchasing Officer or requesting department 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 right to waive any defect or informality. 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. [Ord. 1109 § 1, 2003].

3.08.060 Purchase order splitting prohibited.

The Purchasing Officer or requesting department shall not engage in contract splitting or purchase order splitting in order to avoid the bidding procedures as set forth in this chapter. [Ord. 1109 § 1, 2003].

3.08.065 City Manager.

The City Manager is authorized to enter into contracts for the purchase of supplies or equipment or contracts for personal, professional, consultant and maintenance services where the amount of such contract does not exceed $15,000. [Ord. 1109 § 1, 2003].

3.08.070 Exceptions to bid procedures.

Notwithstanding the purchase procedures set forth in this chapter, bidding procedures for the purchases of supplies, services and equipment shall not apply to the following situations:

A. An emergency requires that an order be placed with the nearest available source of supply;

B. The commodity or service can be obtained from only one vendor;

C. Professional services contracts for accountants, attorneys, architects, engineers, surveyors, construction managers and other professionals and consultants;

D. When in the best interest of the City, the City Manager may authorize the Purchasing Officer to bypass the formal bid process for the purchase of surplus property from another governmental entity;

E. When in the best interest of the City, the City Manager may authorize the Purchasing Officer to bypass the bid process required under this chapter for purchases of $15,000 or less;

F. When in the best interest of the City, the City Council may authorize the City Manager or Purchasing Officer to bypass the bid process required under this chapter for purchases greater than $15,000; or

G. Purchases of Less Than $2,000. The City Council will be advised by the City Manager of procurements over $5,000 which were exempted from the bid process set forth in this chapter. [Ord. 1109 § 1, 2003].

Article II. Open Market Purchase Procedures

3.08.100 Limits.

Except as provided in this chapter, purchases of supplies, equipment, contractual services and sales of personal property of an estimated value in the amount of $15,000 or less, and in the case of public works projects in the amount of $5,000 or less, may be made by the Purchasing Officer in the open market as follows without observing the procedure prescribed in LEMC 3.08.200 through 3.08.235. [Ord. 1109 § 1, 2003].

3.08.110 Minimum number of bids.

Open market purchases shall, whenever possible, be based on at least three bids and shall be awarded to the lowest responsible bidder. [Ord. 1109 § 1, 2003].

3.08.120 Request for bids.

The Purchasing Officer shall solicit bids by written requests, telephone, facsimile or electronic mail to prospective vendors. [Ord. 1109 § 1, 2003].

3.08.130 Written bids.

Written bids shall be submitted to the Purchasing Officer who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection. [Ord. 1109 § 1, 2003].

3.08.140 Award.

The bid shall be awarded to the lowest responsible bidder except as otherwise provided herein. Bidders located within the City of Lake Elsinore may be given a three percent pricing allowance when calculating the lowest responsive bid due to the City of Lake Elsinore’s interest in promoting growth and stimulate the local economy. To qualify for this preference, the purchase (or portion of purchase) must be subject to sales tax collection reported as collected within the City of Lake Elsinore, the vendor has a fixed facility with employees within the City of Lake Elsinore and such vendor shall hold a current and valid City of Lake Elsinore business license. [Ord. 1109 § 1, 2003].

Article III. Formal Bidding Purchase Procedures

3.08.200 Procedure for purchases exceeding $15,000.

Except as provided in this chapter, purchases of supplies, services, equipment and the sale of personal property of estimated value greater than $15,000 shall be by written contract as follows. [Ord. 1109 § 1, 2003].

3.08.205 Request for bids.

Notices inviting bids shall include a general description of the articles to be purchased or sold, state where bid blanks and specification may be secured, and the time and place for opening bids. [Ord. 1109 § 1, 2003].

3.08.210 Notice of bids.

Notice inviting bids shall be published at least five days before the date of opening of the bids. Notice shall be published in a newspaper of general circulation in the City, and, additionally, shall be posted in at least one public place in the City that has been designated as the place for posting public notices. [Ord. 1109 § 1, 2003].

3.08.215 Bidder’s list.

The Purchasing Officer shall also solicit sealed bids from any responsible prospective suppliers. [Ord. 1109 § 1, 2003].

3.08.220 Bid opening procedure.

Sealed bids shall be submitted to the City Clerk and shall be identified as bids on the envelope. It is the responsibility of the bidder to ensure receipt of the bid document by the City Clerk by the designated hour. Bids shall be opened in public at the time and place stated in the public notice. 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. [Ord. 1109 § 1, 2003].

3.08.225 Rejection of bids.

The Purchasing Officer may recommend to the City Manager the rejection of any and all bids and readvertise for bids. [Ord. 1109 § 1, 2003].

3.08.230 Award.

Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. Bidders located within the City of Lake Elsinore may be given a three percent pricing allowance when calculating the lowest responsive bid due to the City of Lake Elsinore’s interest in promoting growth and stimulating the local economy. To qualify for this preference, the purchase (or portion of purchase) must be subject to sales tax collection reported as collected within the City of Lake Elsinore, the vendor has a fixed facility with employees within the City of Lake Elsinore and such vendor shall hold a current and valid City of Lake Elsinore business license. [Ord. 1109 § 1, 2003].

3.08.235 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 City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening. [Ord. 1109 § 1, 2003].

Article IV. Job Order Contracting for Nonpublic Works Maintenance and Repairs

3.08.300 Purpose.

The purpose of this article is to provide for the use of job order contracts that will benefit the public by providing an effective means of reducing the total lead-time and cost for recurring expenses or purchase of unique or nonstandard supplies and equipment. [Ord. 1109 § 1, 2003].

3.08.305 Procedures.

In lieu of the open market and formal bid procedures set forth herein, the Purchasing Officer may issue a purchase order to a job order contractor pursuant to an approved contract under LEMC 3.08.345 for maintenance, minor repairs, rehabilitation, or alteration of facilities that is of a recurring nature or for such other purchases of supplies and equipment which, due to the wide variation of options and cost factors, best serves the needs of the City and provides the City with the highest quality and cost effective goods and services. [Ord. 1109 § 1, 2003].

3.08.310 Request for proposals.

Notices inviting proposal shall include a general description of the supplies, equipment, or contractual services to be purchased and state where proposal blanks and specification may be secured, and the time and place for opening proposals. [Ord. 1109 § 1, 2003].

3.08.315 Notice of request for proposals.

Notice inviting proposals shall be published at least five days before the date of opening of the proposals. Notice shall be published in a newspaper of general circulation in the City, and, additionally, shall be posted in at least one public place in the City that has been designated as the place for posting public notices. [Ord. 1109 § 1, 2003].

3.08.320 Proposer’s list.

The Purchasing Officer shall also solicit sealed proposals from any responsible prospective job order contractor. [Ord. 1109 § 1, 2003].

3.08.325 Proposal opening procedure.

Sealed proposals shall be submitted to the City Clerk and shall be identified as proposals on the envelope. It is the responsibility of the proposer to ensure receipt of the bid document by the City Clerk by the designated hour. Proposals shall be opened in public at the time and place stated in the public notice. A tabulation of all proposals received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the proposal opening. [Ord. 1109 § 1, 2003].

3.08.330 Rejection of bids.

The Purchasing Officer may recommend to the City Manager the rejection of any and all proposals and readvertise the request for proposals. [Ord. 1109 § 1, 2003].

3.08.335 Recommendation.

The Purchasing Officer shall consider the following factors when recommending the selection of a job order contractor to the City Council:

A. The extent to which the proposal meets the needs of the City for the equipment or supplies;

B. The quality of the equipment or supplies proposed;

C. The overall cost to the City of the proposal, including, but not limited to, pricing of the equipment or supplies, delivery schedule, terms of payment, warranties, maintenance requirements and required site preparation;

D. The experience and qualifications of the vendor submitting a proposal to successfully meet the requirements for the equipment or supplies;

E. Previous performance of the vendor submitting a proposal in providing similar equipment or supplies;

F. Financial ability of the vendor submitting the proposal to provide the equipment or supplies to the City;

G. The vendor’s conformity to the specifications for the equipment or supplies set forth in the request for proposal; and

H. Such similar factors as may be specifically included in the request for proposal. [Ord. 1109 § 1, 2003].

3.08.340 Award.

Contracts for job order contractors shall be awarded by the City Council. [Ord. 1109 § 1, 2003].

3.08.345 Term.

Job order contracts shall be in writing and shall be approved by the City Council for an initial contract term not to exceed three years. Such job order contracts shall be reviewed periodically by the City Council. [Ord. 1109 § 1, 2003].