Chapter 2.68
CONTRACTS AND PURCHASING*

Sections:

Article I. General

2.68.010    Purpose.

2.68.020    City Council approval required.

2.68.030    General procedural requirements.

2.68.040    Definitions.

Article II. Contract Authority

2.68.060    City Manager authority.

2.68.070    City Attorney authority.

2.68.075    Assistant City Manager authority.

2.68.080    Administrative Services Director authority.

2.68.090    Public Works Director and Community Development Director authority.

2.68.100    Police Chief authority.

2.68.110    Library Services Director and innovation and economic development director authority.

Article III. Supplies, Equipment and General Services

2.68.340    Short form contracts.

2.68.350    Purchases of general services, sole source services or equipment, or supplies and equipment for $5,000 or less.

2.68.360    Purchases of general services or supplies and equipment for more than $5,000 and up to $50,000.

2.68.370    Purchases of general services or supplies and equipment for more than $50,000.

2.68.380    Negotiated purchases.

2.68.390    Purchases of supplies and equipment through cooperative purchasing arrangements.

2.68.400    Equipment leasing.

2.68.410    Inspection and testing.

2.68.420    Repealed.

2.68.430    Surplus supplies and equipment.

Article IV. Public Projects

2.68.500    Public project contracting procedures.

2.68.510    Bid splitting prohibited.

2.68.520    Contractors list.

2.68.530    Informal bidding – Notice.

2.68.540    Formal bidding – Notice.

2.68.550    Exceptions.

2.68.560    Modification of public works contracts.

2.68.570    Contracts for maintenance and other work.

2.68.580    Award of public works contracts.

2.68.590    Rejection of bids.

2.68.600    Approval of plans, specifications and designs.

*Prior legislation: Ord. 1450.

Article I. General

2.68.010 Purpose.

The purpose of this chapter is to:

A. Provide for the authority of city officers to enter into contracts and to set forth procedural requirements; and

B. Establish efficient procedures for the purchase of supplies, equipment and general services 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. (Reference: Government Code Sections 54201 through 54205.) (Ord. 1994 § 1 (Exh. A), 2014; Ord. 1556 § 3, 1999)

2.68.020 City Council approval required.

City Council approval is required for all contracts unless otherwise specified in this chapter or code, or in another provision of federal or state law. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1556 § 3, 1999)

2.68.030 General procedural requirements.

All contracts shall conform with the procedural requirements set forth in this section unless otherwise specified in this chapter or code, or in another provision of federal or state law.

A. All contracts must be in writing and be signed in the name of the City.

B. All contracts must include appropriate insurance and indemnification provisions and be reviewed by the City’s risk manager.

C. All contracts must be approved as to form by the City Attorney.

D. A signed original of each contract entered into must be filed with the city clerk’s office, except for copies of purchase orders evidencing the purchase of supplies, equipment or general services which must be filed in the office of the Administrative Services Director. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 4, 2010; Ord. 1556 § 3, 1999)

2.68.040 Definitions.

For the purposes of this chapter, the following definitions shall apply:

A. “Administrative Services Director” means the Administrative Services Director of the City or his or her designee, who shall also act as the purchasing agent for the City pursuant to Chapter 2.28 LMC.

B. “Best value” means the best value to the City based on all factors, including, but not limited to, the following:

1. Cost;

2. The ability, capacity, and skill of the contractor to perform the contract or provide the supplies, services or equipment required;

3. The ability of the contractor to provide the supplies, services, or equipment promptly or within the time specified without delay or interference;

4. The character, integrity, reputation, judgment, experience, and efficiency of the contractor;

5. The quality of the contractor’s performance on previous purchases or contracts with the City; and

6. The ability of the contractor to provide future maintenance, repair, parts, and services for the use of the supplies purchased.

C. “Change order” means a change or addendum to an executed contract.

D. “Contract” means any formal written agreement to do a certain thing. “Contract” and “agreement” are synonymous. The term “contract” includes, but is not limited to, a purchase order or blanket purchase order, a contract for services, a contract for maintenance, leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of understanding or memorandum of agreement.

E. “Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. (Reference: Public Contract Code Section 1102).

F. “General services” means and includes any work performed or services rendered by an independent contractor, with or without the furnishing of materials, including, but not limited to, the following:

1. “Maintenance work” as defined by Public Contract Code Section 22002, which includes all of the following:

a. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes.

b. Minor repainting.

c. Resurfacing of streets and highways less than one inch.

d. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

e. Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher.

2. Repair, modification and maintenance of city equipment and software;

3. Cleaning, analysis, testing, moving, removal or disposal (other than by sale) of city supplies and equipment;

4. Providing other miscellaneous services to facilitate city operations;

5. Performing repair, demolition or other work required to abate nuisances under this code;

6. Licensing software;

7. Leasing or rental of equipment (personal property) for use by the City;

8. A maintenance agreement for equipment owned or leased by the City;

9. Sole source services.

“General services” does not include work defined as a public works contract.”

G. “Professional services” means the services of an attorney, engineer, doctor, financial consultant, land surveying consultant, planning, environmental consultant, construction project manager, investment advisor, bank or trustee officer, or other professional or independent contractor. “Professional services” shall also include use of temporary personnel services.

H. “Public works contract” means any city contract for the performance of a “public project” as defined by Public Contract Code Sections 20161 and 22002, as they may be amended from time to time. “Public project” means any of the following:

1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.

2. Painting or repainting of any publicly owned, leased or operated facility.

3. In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher.

I. “Responsible bidder,” as used in this chapter, means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience, specified in notice inviting bids, including the project specifications, prepared for the project bid by the City, to satisfactorily perform the public works contract. (Reference: Public Contract Code Section 1103).

J. “Short form contracts” are contracts, not to exceed $1,000, for the performance of short-term (e.g., hourly) services such as, for example, on-site training sessions, book readings, art instruction, artistic rendering or slideshow presentations determined to be of limited risk of liability to the City by the risk manager.

K. “Supplies and equipment” means and includes all such items purchased on behalf of the City except for supplies or materials finished for a public works project.

L. “Technology product” means hardware, software, or communications equipment; or related equipment or goods which incorporate any such items. (Ord. 2069 § 3 (Exh. A §§ 1, 2), 2018; Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 5, 2010; Ord. 1637 § 1, 2001; Ord. 1556 § 3, 1999)

Article II. Contract Authority

2.68.060 City Manager authority.

A. The City Manager is authorized to enter into and sign for and on behalf of the City, without the prior approval of the City Council, general or professional service contracts or contracts for supplies and equipment:

1. Which contain maximum compensation up to $100,000. The City Manager may approve a change order or amendment to a general or professional service contract initially approved by the City Manager or the City Council, in an amount not to exceed an additional $100,000. However, amendments to a general or professional service contract initially approved by the City Manager that cumulatively exceed $100,000 must be approved by the City Council; and

2. For which moneys have been appropriated or will be appropriated at the earliest practicable time but in no event later than the next budget adoption.

B. In addition to the authority in subsection A of this section, the City Manager is authorized to enter into and execute, for and on behalf of the City, the following contracts:

1. Contracts with public agencies or public utility companies regarding construction or use of public improvements or utility facilities, which require no payment of money by the City in excess of $100,000, or which provide for payment of money to the City under each contract.

2. Contracts for community social or recreational services, or for the use of city property or facilities, in accordance with established administrative guidelines, which require no payment of money by the City in excess of $100,000, or which provide for payment of money to the City under each contract.

3. Contracts for professional services in an amount up to $250,000 if:

a. A developer has deposited the full amount of the contract into a trust fund account.

b. The deposited funds are to be used for a city-managed professional services contract, such as an environmental impact report.

c. For contracts entered into and executed by the City Manager as provided in subsection (B)(3) of this section, alterations, deviations, additions or deletions from the original scope of work for a professional services contract, which are determined by the City to be necessary during the progress of work, shall be documented by a supplemental agreement. The City Manager is authorized to enter into and execute, for and on behalf of the City, supplemental agreements for professional service contracts in the amount up to $50,000.

4. Public works contracts in accordance with the monetary limits for informal bidding set forth in Public Contract Code Section 22032, as it may be amended from time to time.

C. In an emergency endangering the lives, property or welfare of the people of the City or the property of the City, the City Manager may authorize the expenditure of any unencumbered moneys in the operating stabilization fund balance, notwithstanding the fact that such moneys may not have been appropriated for such purpose, to the extent that other moneys have not been appropriated or are otherwise unavailable therefor.

D. The City Manager may delegate in writing to any city department head or the Assistant City Manager, the authority to purchase or contract for specified supplies, services, and equipment as long as such purchases or contracts are made in conformity with the procedures established by this chapter. (Ord. 2082 § 1(B), 2019; Ord. 2069 § 3 (Exh. A §§ 3, 4), 2018; Ord. 2065 § 1(A), 2018; Ord. 2033 § 1(B), 2015; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1895 § 4, 2010; Ord. 1746 § 1, 2004; Ord. 1642 § 1, 2001; Ord. 1556 § 3, 1999)

2.68.070 City Attorney authority.

A. The City Attorney is authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Council, contracts:

1. Which contain a maximum compensation up to $50,000 or less. As to a change order or amendment, the limit of authority may not exceed an additional $50,000; and

2. The object or purpose of which is related to the activities or functions of the office of the City Attorney; and

3. For which moneys have been appropriated and for which there is an unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract; and

4. Which is for consultant or professional services, or for books, periodicals or other legal reference materials.

B. Additionally, the City Attorney is authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Council, contracts:

1. Which appoint and retain outside legal counsel to prosecute lawsuits for the City or defend lawsuits against the City.

2. Which settle claims or litigation against the City for an amount not to exceed $100,000, without prior approval of the City Council. A legal settlement in excess of $10,000 requires the concurrence of the City Manager.

3. Which settle workers’ compensation claims or litigation.

4. Which are for the City’s membership in public agencies organized and operating under California Government Code Section 6507 and related provisions of law that authorize the creation and operation of governmental joint powers authorities under California Law to self-insure and pool resources for excess losses.

5. Which are to purchase insurance to protect and cover city facilities and operations, and for trust accounts maintained to satisfy the City’s trust fund requirements for its excess liability pools.

C. The City Attorney may designate in writing any senior assistant City Attorney or assistant City Attorney to purchase or contract for specified supplies, services and equipment as long as such purchases or contracts are made in conformity with the procedures established by this chapter. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1931 § 1, 2011; Ord. 1895 § 4, 2010; Ord. 1556 § 3, 1999)

2.68.075 Assistant City Manager authority.

A. The Assistant City Manager is authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Manager or City Council, a contract for the purchase of general or professional services or contract for supplies and equipment:

1. Which contains a maximum compensation amount of $50,000. As to a change order or amendment, the limit of authority is 100 percent of the original contract, not to exceed a cumulative additional amount of $50,000; and

2. For which moneys have been appropriated and for which there is unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract.

B. The Assistant City Manager, with approval of the City Manager, may delegate in writing to any city department head the authority to purchase or contract for specified supplies, services and equipment as long as such purchases or contracts are made in conformity with the procedures established by this chapter.

C. The Assistant City Manager may execute contracts not to exceed $100,000, in the absence of the City Manager. (Ord. 2069 § 3 (Exh. A § 5), 2018; Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1746 § 3, 2004)

2.68.080 Administrative Services Director authority.

A. The City Administrative Services Director is authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Manager or City Council, a contract for the purchase of general or professional services or contract for supplies and equipment:

1. Which contains a maximum compensation amount of $25,000. As to a change order or amendment, the limit of authority is 100 percent of the original contract, not to exceed a cumulative additional amount of $25,000; and

2. For which moneys have been appropriated and for which there is unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract.

B. The Administrative Services Director may delegate in writing to any City department or division head the authority to purchase or contract for specified supplies, services and equipment as long as such purchases or contracts are made in conformity with the procedures established by this chapter. (Ord. 2082 § 1(C), 2019; Ord. 2069 § 3 (Exh. A §§ 6, 7), 2018; Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1895 § 4, 2010; Ord. 1556 § 3, 1999)

2.68.090 Public Works Director and Community Development Director authority.

A. The Public Works Director and the Community Development Director are each authorized to enter into and sign for and on behalf of the City, without the prior approval of the City Council or the City Manager, a contract:

1. Which does not exceed $25,000. As to a change order or amendment, the limit of authority is 100 percent of the original contract, not to exceed a cumulative additional amount of $25,000; and

2. For which moneys have been appropriated and for which there is an unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract; and

3. Which is for general or professional services; or

4. Which is any one of the following:

a. Is required as a condition of approval by the City Council or the Planning Commission; or

b. The consideration to be paid by the City is to be reimbursed in full by an applicant for a land use permit; or

c. Is between the City and a public utility for work to be done for the City on property that is the direct concern to both the City and the public utility and, in addition, in the Director’s opinion, can be best or better performed, or more efficiently or expeditiously performed, or performed with less inconvenience to the public, or be more inexpensively performed, or be more safely performed, by the public utility than by others.

B. In addition to the authority in subsection A of this section, the Public Works Director and Community Development Director are each authorized to enter into and execute, for and on behalf of the City, a public works contract which does not exceed $25,000.

C. The Public Works Director or the Community Development Director may delegate in writing to division heads within his or her department the authority to contract for general or professional services. (Ord. 2069 § 3 (Exh. A § 8), 2018; Ord. 2065 § 1(A), 2018; Ord. 2045 § 1(B), 2016; Ord. 2016 § 1(B), 2015; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1780 § 1, 2005; Ord. 1642 § 2, 2001; Ord. 1556 § 3, 1999)

2.68.100 Police Chief authority.

A. The Police Chief is authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Manager or City Council, a contract for the purchase of professional services:

1. Which contains a maximum compensation amount of $25,000. As to a change order, the limit of authority is 100 percent of the original contract, not to exceed a cumulative additional amount of $25,000; and

2. For which moneys have been appropriated and for which there is unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract.

B. The Police Chief may delegate in writing to division heads within his or her department the authority to contract for professional services. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014)

2.68.110 Library Services Director and innovation and economic development director authority.

A. The Library Services Director and innovation and economic development director are each authorized to enter into and execute for and on behalf of the City, without the prior approval of the City Manager or City Council, a contract for general or professional services:

1. Which contains a maximum compensation amount of $25,000. As to a change order or amendment, the limit of authority is 100 percent of the original contract, not to exceed a cumulative additional amount of $25,000; and

2. For which moneys have been appropriated and for which there is unexpended and unencumbered balance of such appropriation sufficient to pay the expense of the contract.

B. The Library Services Director or innovation and economic development director may delegate in writing to division heads within his or her department the authority to contract for general or professional services. (Ord. 2069 § 3 (Exh. A § 9), 2018; Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1971 § 1(F), 2012; Ord. 1556 § 3, 1999. Formerly 2.68.100)

Article III. Supplies, Equipment and General Services

2.68.340 Short form contracts.

Department heads or their designees are authorized to enter into short form contracts in an amount not to exceed $1,000. (Ord. 1994 § 1 (Exh. A), 2014)

2.68.350 Purchases of general services, sole source services or equipment, or supplies and equipment for $5,000 or less.

For purchases of general services or supplies and equipment for $5,000 or less, additional purchasing procedures shall be established by an administrative regulation of the City Manager. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1556 § 3, 1999. Formerly 2.68.340)

2.68.360 Purchases of general services or supplies and equipment for more than $5,000 and up to $50,000.

A. Quotation Requirement. The purchase of supplies, equipment and general services in an amount that is greater than $5,000 but less than $50,000 may be made by the Administrative Services Director in the open market, following the procedure prescribed in this article.

1. Minimum Number of Quotations. Open-market purchases shall, whenever possible, be based on at least three quotations.

2. Notice Inviting Quotations. The Administrative Services Director shall invite quotations by written request (including facsimile or electronic mail) or telephone to prospective vendors.

3. Quotations. Quotations shall be submitted to the Administrative Services Director (or his or her designee), who shall keep a record of all open-market orders and quotes for a period of one year after the submission of quotes or placing of orders. This record is open to public inspection. For a purchase of up to $15,000, the quotations may be verbal or written. For a purchase in an amount between $15,000 and $50,000, the quotations shall be written (including facsimile and electronic mail).

4. No Responsive Quotations. If no quotations, or no responsive quotations, are received after inviting quotations under this section, the Administrative Services Director or City Manager may proceed to hire or have services performed or purchase the supplies in the open market.

5. Award of Contract. The Administrative Services Director, or other department head if within his or her authority, is authorized to award a contract for $25,000 or less when the City Council has budgeted funds for the item(s) and the amount of the award is not more than the quoted amount. Under this section, a contract shall be awarded to the quotation representing the best value as defined in LMC 2.68.040. The basis upon which the award is made shall be in writing.

B. Exceptions. The quotation procedure under this section may be dispensed with:

1. In an emergency as defined in LMC 2.68.040;

2. Where it is determined that supplies and equipment are unique or available only from one source, so that the quotation procedure required by this section would be meaningless. The basis upon which this determination is made shall be in writing;

3. Where supplies and equipment are purchased through a cooperative purchasing arrangement pursuant to LMC 2.68.390;

4. Where supplies and equipment are purchased through competitive or noncompetitive negotiations pursuant to LMC 2.68.380. (Ord. 2069 § 3 (Exh. A § 10), 2018; Ord. 2065 § 1(A), 2018; Ord. 2033 § 1(C), 2015; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 6, 2010; Ord. 1637 § 2, 2001; Ord. 1578 § 1, 2000; Ord. 1556 § 3, 1999. Formerly 2.68.350)

2.68.370 Purchases of general services or supplies and equipment for more than $50,000.

A. Bidding Requirement. The Administrative Services Director shall purchase supplies, equipment and general services of a value greater than $50,000 following the formal bid procedure prescribed in this section.

1. Notice Inviting Bids. The notice inviting bids shall include a general description of the articles or general services to be purchased, and shall state where bid forms and specifications may be secured, and the final time and place for submitting bids.

a. Published Notice. The notice inviting bids shall be published at least 10 business 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 locally. In addition, notice inviting bids may also be published electronically.

b. Bidders’ List. The Administrative Services Director shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders’ list.

2. Bidders’ Security. When deemed necessary, the Administrative Services Director shall require bidders’ security. Bidders are entitled to the return of bid security upon execution of the contract or upon the readvertisement for bids; provided, that a successful bidder forfeits 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.

3. Bid Opening Procedure. Bidders shall submit sealed bids to the Administrative Services Director, and shall identify them as bids on the envelope. 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.

4. Rejection of Bids. In their discretion, the City Manager or City Council may reject any and all bids presented, and may readvertise for bids.

5. No Responsive Bid. If no bid, or no responsive bid, is received after inviting bids under this section, the Administrative Services Director or City Manager may proceed to hire or have services performed or purchase the supplies in the open market.

6. Award of Contract. The City Manager shall award a contract for the purchase of supplies, equipment or general services of a value of $100,000 or less. The City Council shall award a contract for the purchase of supplies or equipment or general services of a value greater than $100,000. Under this section, a contract shall be awarded to the bid representing the best value as defined in LMC 2.68.040. The basis upon which the award is made shall be in writing.

7. Performance Bonds. The Administrative Services Director has the authority to require a performance bond before entering a contract, in such amount as is reasonably necessary to protect the best interests of the City. If the Administrative Services Director requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids and subject to approval by the City Attorney.

B. Exceptions. The bidding procedure under this section may be dispensed with:

1. In an emergency as defined in LMC 2.68.040;

2. Where it is determined that the supplies and equipment are unique or available only from one source, so that the bidding required by this section would be meaningless. The basis upon which this determination is made shall be in writing;

3. Where supplies and equipment are purchased through a cooperative purchasing arrangement pursuant to LMC 2.68.390;

4. Where supplies and equipment are purchased through competitive or noncompetitive negotiations pursuant to LMC 2.68.380;

5. If there is no competitive advantage to be gained by soliciting bids (for example, where it is determined that the supplies and equipment are unique or available only from one source), the bidding requirement required by this section would be meaningless. The basis upon which this determination is made shall be in writing by a department head and directed to the City Manager.

C. It is unlawful to split into smaller orders the purchase of supplies, equipment or general services for the purpose of evading the competitive bidding provisions of this section. (Ord. 2065 §§ 1(A), (F), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 7, 2010; Ord. 1746 § 2, 2004; Ord. 1637 § 3, 2001; Ord. 1578 § 2, 2000; Ord. 1556 § 3, 1999. Formerly 2.68.360)

2.68.380 Negotiated purchases.

A. Applicability. A purchase may be had by negotiations when the purchase is for:

1. A technology product, as defined in LMC 2.68.040;

2. An addition to, or repair or maintenance of, existing equipment which can be more efficiently added to, repaired or maintained by a particular company or manufacturer;

3. Equipment which must be compatible with existing equipment, by reason of the training of the personnel or an inventory of existing replacement parts kept by the City;

4. Public art (which may or may not also fall within the “sole source” exception);

The affected department head shall state in writing the basis for a determination that this section applies. Before any purchase is made, that determination and the method of negotiation (competitive or noncompetitive) must first be approved by (1) the City Manager, when the purchase involves $25,000 or more, or (2) the Administrative Services Director, when the purchase involves less than $25,000.

B. Method of Negotiation. When a negotiated purchase is approved under subsection A of this section, the purchase may be made by either (1) competitive negotiation following a request for proposals or (2) noncompetitive negotiation.

C. Competitive Negotiation Following a Request for Proposals.

1. Request for Proposals. Under this method, proposals are requested from a number of sources and the request for proposals is publicized. The request for proposals must identify all the significant evaluation factors, including price or cost and their relative importance. Proposals must be solicited from an adequate number of qualified sources to permit reasonable competition.

2. Receipt of Proposals. Sealed proposals must be submitted by the date and time specified on the prescribed forms and shall be identified by the request-for-proposal number.

3. Negotiation. The most qualified and responsive offeror will be selected for contract negotiation. If agreement cannot be reached with the first choice offeror, the second choice offeror (and then the third, and so on) will be contacted, with the first choice offeror (or other offerors, in order) dismissed from further consideration on that particular project. All elements of the negotiation process shall be documented by the negotiating department and submitted to the finance director. Responsible offerors shall be accorded fair and equal treatment with respect to opportunity for discussion and revision of proposals. Any revisions are permitted after submission in writing and prior to the award of a contract.

4. Award and Notification. An award may be made to the responsible offeror whose proposal will be the best value to the City, as defined in LMC 2.68.040. All offerors participating in the process shall be notified in writing on the terms and conditions of the successful award.

D. Noncompetitive Negotiations. When there is only one source, purchase can be made through solicitation and negotiation directly with that source. The affected department head shall state in writing the basis for the determination that this subsection applies, and before any purchase is made, that determination must be approved in writing by the City Manager (for $25,000 or more) or the Administrative Services Director (for less than $25,000). (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 8, 2010; Ord. 1637 § 4, 2001. Formerly 2.68.370)

2.68.390 Purchases of supplies and equipment through cooperative purchasing arrangements.

The Administrative Services Director may purchase supplies and equipment without complying with the quotation or bidding requirements of this chapter, if such purchases are based on an agreement or cooperative purchasing program entered into by any of the following public agencies, regardless of whether the City is a named party to the agreement or an actual participant in such a program:

A. The California Multiple Award Schedules (CMAS), the California Communities Purchasing Program, the Western States Contracting Alliance (“WSCA”), The Cooperative Purchasing Network (“TCPN”), the National Joint Powers Alliance, the County of Alameda, the County of Contra Costa;

B. The U.S. Communities Government Purchasing Alliance or the Federal GSA Contracts.

C. Any other cooperative purchasing programs or consortiums, provided the City’s Administrative Services Director (or his or her designee) approves of such participation in writing or if the underlying purchase was made using quotation or bid procedure at least as restrictive as the City’s.

In all such cases, the supplies and equipment purchased must be the same and be offered at the same price as the supplies and equipment subject to the agreement or program, except that (1) up to 10 percent variation is allowed for customizing the order or for desirable options, (2) a cost of living adjustment (using San Francisco-Oakland-San Jose Consumer Price Index – Urban, All Items) can be added for up to three years, and (3) the City Manager’s written approval is required for any extensions of contracts for supplies and equipment obtained through a cooperative purchasing program, provided such extensions do not exceed three years. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 9, 2010; Ord. 1637 § 5, 2001; Ord. 1556 § 3, 1999. Formerly 2.68.380)

2.68.400 Equipment leasing.

A. Leasing of purchasable or nonpurchasable equipment shall be in accordance with LMC 2.68.350, 2.68.360 or 2.68.370, depending upon the cost of an annual lease.

B. Each contract for the leasing or rental of equipment for the City shall contain a provision permitting the City to terminate the contract at the end of any fiscal year during the term of the contract upon not less than 30 days’ written notice to the other party. (Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1556 § 3, 1999. Formerly 2.68.390)

2.68.410 Inspection and testing.

The Administrative Services Director, or his or her designee, may inspect supplies, equipment and general services delivered, and determine their conformance with the specifications set forth in the order or contract. The Administrative Services Director has 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. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 10, 2010; Ord. 1556 § 3, 1999. Formerly 2.68.400.)

2.68.420 Purchases of supplies and equipment through cooperative purchasing arrangements.

Repealed by Ord. 1637. (Ord. 1556 § 3, 1999. Formerly 2.68.410)

2.68.430 Surplus supplies and equipment.

Each department shall submit to the Administrative Services Director, at such times and in such forms as the Director prescribes, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Administrative Services Director has the authority to sell or otherwise dispose of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for or trade the same in on new supplies and equipment.

The Administrative Services Director, or his or her designee, may surplus the service weapons of employees of the Livermore police department upon an employee’s retirement from service with the Livermore police department.

The Administrative Services Director, or his or her designee, may surplus the badges of employees of the Livermore police department upon an employee’s retirement from service with the Livermore police department, upon an employee being promoted to a higher classification within the department, or for employees who resign in good standing with a minimum of 10 years of service with the Livermore police department.

City Manager approval is needed for disposition of supplies and/or equipment when the total estimated value exceeds $5,000. Disposition may include abandonment, destruction or donation to public bodies, charitable, civic or nonprofit organizations and may include city property which has no commercial value or for which the estimated cost of continued care, handling, maintenance or storage would exceed the estimated proceeds of sale. Sales procedures may include negotiated sales, acceptance of sealed bids or public auction. Services of a paid auctioneer may be used, as appropriate. The Administrative Services Director also has the authority to make transfers between departments of any usable surplus supplies or equipment and which are $5,000 or less in value. (Ord. 2068 § 1, 2018; Ord. 2065 § 1(A), 2018; Ord. 2063 § 1, 2017; Ord. 2043 § 1 (Exh. A), 2016; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1908 § 11, 2010; Ord. 1556 § 3, 1999. Formerly 2.68.420)

Article IV. Public Projects

2.68.500 Public project contracting procedures.

The City shall follow the contracting procedures set forth in Article 3 of the Uniform Public Construction Cost Accounting Act as set forth in Public Contract Code Section 22030 et seq., referred to as the “Act” for the purposes of this article. The City shall procure public projects by force account, negotiated contract, purchase order, informal bidding or formal bidding as required in accordance with the applicable dollar amount limitations under Section 22032 of the Act, as it may be amended from time to time. The City Manager shall be authorized to implement administrative policies and procedures consistent with the Act and this chapter. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.510 Bid splitting prohibited.

It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.520 Contractors list.

A list of contractors shall be developed and maintained in accordance with the provisions of the Act and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission, referred to as “the Commission” for the purposes of this article. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.530 Informal bidding – Notice.

A. Where a public project to be performed is subject to the informal bidding provisions of the Act and this chapter, a notice inviting informal bids shall be delivered by mail, fax, or electronic mail to all contractors for the category of work to be bid, as shown on the list developed in accordance with LMC 2.68.520 and/or may be delivered to all construction trade journals as specified by the Commission in accordance with the Act. Delivery of notices to contractors pursuant to this section shall be completed not less than 10 calendar days before bids are due. Additional contractors and/or construction trade journals may be notified at the discretion of the City; provided, however:

1. If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall be sent to only the construction trade journals specified by the Commission.

2. If the product or service is such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

B. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.540 Formal bidding – Notice.

When a public project to be performed requires formal bidding, notice of such project shall be given as follows unless an exception to competitive bidding applies:

A. The notice shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

B. The notice shall be published at least 14 calendar days before the date of opening of the bids in a newspaper of general circulation, printed and published in the City; or if there is no newspaper printed and published within the jurisdiction of the City, in a newspaper of general circulation which is circulated within the City; or if there is no newspaper which is circulated within the jurisdiction of the City, publication shall be by posting the notice in at least three places within the jurisdiction of the City as have been designated by ordinance or regulation of the City for the posting of its notices.

C. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified by the Commission. The notice shall be sent at least 15 calendar days before the date of opening the bids. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.550 Exceptions.

Bidding required by LMC 2.68.540 may be dispensed with:

A. In an emergency as defined by LMC 2.68.040 pursuant to the procedures contained in the Public Contract Code;

B. Design-build contracts, provided they are consistent with the requirement of the Public Contract Code; or

C. If there is no competitive advantage to be gained by inviting bids (for example, where it is determined that the supplies and equipment are unique or available only from one source, and where the low bid benefits are otherwise satisfied by the Act), so that the bidding requirement required by this section would be meaningless. The basis upon which this determination is made shall be made by the City Council upon recommendation by the city engineer. (Ord. 2069 § 3 (Exh. A § 11), 2018; Ord. 2065 § 1(A), 2018; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1556 § 3, 1999. Formerly 2.68.510)

2.68.560 Modification of public works contracts.

Alterations, deviations, additions, or deletions from the original scope of work for public works projects which are determined by the City to be necessary during the progress of work shall be documented by written change orders or amendments.

A. The Community Development Director, Public Works Director, and city engineer, or their designee, may authorize change orders or amendments up to a cumulative amount not exceeding $25,000.

B. The City Manager may authorize change orders or amendments up to a cumulative amount not exceeding $50,000 or 10 percent of the overall contract price, whichever is greater.

C. The cost of each change order or amendment shall be determined by a fair and reasonable valuation, agreed to in writing by the Community Development Director or Public Works Director or designees and an authorized representative of the contractor, and shall be added to or deducted from the contract price. (Ord. 2069 § 3 (Exh. A § 11), 2018; Ord. 2065 § 1(A), 2018; Ord. 2045 § 1(B), 2016; Ord. 2016 § 1(B), 2015; Ord. 1994 § 1 (Exh. A), 2014; Ord. 1780 § 1, 2005; Ord. 1642 § 3, 2001. Formerly 2.68.520)

2.68.570 Contracts for maintenance and other work.

Contracts for maintenance, as defined by Public Contract Code Section 22002 and LMC 2.68.040(F)(1), and for any other work which does not fall within that section’s definition of public projects, may be bid pursuant to the informal bidding procedures in LMC 2.68.530 and the formal bidding procedures in LMC 2.68.540. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.580 Award of public works contracts.

A. The City Manager is authorized to award public works contracts in accordance with the monetary limits for negotiated contracts or purchase orders as set forth in the Act, as now existing or hereafter amended.

B. The City Manager is authorized to award public works contracts in accordance with monetary limits for informal procedures as set forth in the Act, as now existing or hereafter amended, and this chapter to the lowest, responsive, and responsible bidder. If all bids are received in excess of the City Manager’s monetary authority, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract, subject to monetary limits set forth in the Act for informal bidding, as now existing or hereafter amended, if the City Council determines the cost estimate of the public agency was reasonable.

C. Contracts subject to formal bidding under the Act shall be awarded, if at all, by the City Council to the lowest, responsive, and responsible bidder. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.590  Rejection of bids.

The City Manager or the City Council, as the case may be, may in the City Manager’s or City Council’s discretion, reject all bids and proceed as authorized by the Act. (Ord. 2069 § 3 (Exh. A § 11), 2018)

2.68.600 Approval of plans, specifications and designs.

In accordance with Government Code Section 830.6, as it may be amended from time to time, the City Council hereby delegates authority to the city engineer, or designee, to approve plans, specifications and designs and all amendments and addenda thereto, field changes through the change order process and/or approval of as-built plans for all city public works contracts. (Ord. 2069 § 3 (Exh. A § 11), 2018)