Chapter 3.16
PURCHASING SYSTEM

Sections:

3.16.010    Adoption of system.

3.16.020    Purchasing officer—Powers and duties.

3.16.030    Requisitions.

3.16.040    Bidding required—Exceptions.

3.16.050    Purchases by purchase orders.

3.16.060    Bidding procedure.

3.16.070    Preference for local suppliers.

3.16.010 Adoption of 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. 76-4 § 1, 1976)

3.16.020 Purchasing officer—Powers and duties.

The city manager, or his appointee, shall act as purchasing officer. The purchasing officer shall have authority to:

A.    Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt and such other rules and regulations as shall be prescribed by the city 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 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.    Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;

H.    Supervise the inspection of all supplies and equipment purchases to ensure conformance with specifications;

I.    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 become unsuitable for city use;

J.    Maintain a bidders’ list, vendors’ catalog file and records needed for the efficient operation of the purchasing department. (Ord. 76-4 § 2, 1976)

3.16.030 Requisitions.

Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms. (Ord. 76-4 § 3, 1976)

3.16.040 Bidding required—Exceptions.

Purchases of supplies and equipment shall be by bid procedures as prescribed by this chapter; provided, that bidding shall be dispensed with when an emergency requires that an order be placed with the nearest available source of supply, or when the amount involved is less than twenty-five thousand dollars, or when the commodity or product can be obtained from only one vendor or when the city council has found by resolution that competitive bidding would be unavailing, would not produce an advantage and would not be in the public interest. An emergency shall be deemed to exist if:

A.    There is a great public calamity;

B.    There is immediate need to prepare for national or local defense;

C.    There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare or safety; and

D.    An essential operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item or service. (Ord. 2013-01 § 1 (part), 2013; Ord. 96-9 § 1, 1996; Ord. 92-7 § 1, 1992; Ord. 76-4 § 4, 1976)

3.16.050 Purchases by purchase orders.

Except in those cases in which the bidding procedures set forth in this chapter are to be followed, all purchases of supplies and equipment shall be made by purchase order. 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. 76-4 § 5, 1976)

3.16.060 Bidding procedure.

Except as provided by this chapter, purchases of supplies and equipment of an estimated value of twenty-five thousand dollars or more shall be made from the lowest responsible bidder pursuant to the procedure prescribed herein, as follows:

A.    Notice Inviting Bids. Notices 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.

B.    Published Notice. Notice inviting bids shall be published at least ten days before the date of opening of the bids. Such 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.

C.    Bidders’ List. The purchasing officer shall also solicit sealed bids from all prospective suppliers whose names are on the bidders’ list or who have requested that their names be added thereto.

D.    Bidder’s Security. When deemed necessary by the purchasing officer, or when required by law, bidder’s security shall 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 purchase contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest 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.

E.    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 thirty calendar days after the bid opening.

F.    Lowest Responsible Bidder. In addition to price, the lowest responsible bidder will be determined by the city council, in its discretion, after the following factors have been considered:

1.    The ability, capacity and skill of the bidder to perform the contract or provide service required;

2.    Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;

3.    The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4.    The bidder’s record of performance of previous contracts or services;

5.    The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

6.    The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

7.    The quality, availability and adaptability of the supplies, equipment or services to the particular use required;

8.    The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; and

9.    The number of scope of conditions attached to the bid.

G.    Rejection of Bids. In its discretion, the city council may reject any or all bids presented, waive any informalities or make award on any alternative that may be in the best interest of the city.

H.    Performance Bonds. The city council shall have 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 city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 2013-01 § 1 (part), 2013; Ord. 92-7 § 2, 1992; Ord. 76-4 § 6, 1976)

3.16.070 Preference for local suppliers.

A.    General Requirements. Each local supplier to the city, or any department or agency of the city, shall be eligible for a local preference as provided in this section.

B.    Rights of First Refusal. Each local supplier who is within five percent of the lowest responsible bid and who is otherwise responsive and responsible to the call for bids shall be provided the opportunity to reduce the local supplier’s bid to the amount equal to the amount of the lowest responsible bid, if the lowest responsible bid is submitted by other than a local supplier. The opportunity to reduce the amount of the bid shall be provided first to the lowest eligible local supplier and, if not accepted by such local supplier within five business days of the opening of bids, then to each successive eligible local supplier, in ascending order of the amount of bids, who is within five percent of the lowest responsible bid. In the event: an eligible local supplier reduces the bid to the amount of the lowest responsible bid, the eligible local supplier shall be deemed to have provided the lowest responsible bid and shall be awarded the contract.

1.    The foregoing provisions apply only to competitive bids that require that contracts be awarded to the lowest responsible bidder. For contracts awarded pursuant to requests for proposals or requests for quotations, the awarding authority may consider, as one of the factors in determining the most suitable proposal or quotation, whether or not the proposal or quotation is submitted by a local supplier.

C.    Definitions. For the purpose of this section, the term “local supplier” shall mean a business or resident doing business (i.e., having a city business license and reporting the city as the point of any business sales) and located (i.e., maintaining an office or location) within the city as a supplier of goods, supplies or equipment for the past two years. (Ord. 99-09 § 1, 1999)