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Chapter 2.20
PURCHASING SYSTEMSections:
2.20.010 Purchasing system – Purposes and objectives.
2.20.020 Purchasing department established.
2.20.030 Designation of purchasing agent – Powers and duties.
2.20.040 Filing of estimated requirements.
2.20.050 Exemptions from centralized purchasing.
2.20.060 Professional services.
2.20.070 Public projects.
2.20.080 Purchases under fifty thousand dollars.
2.20.090 Encumbrance of funds.
2.20.100 Formal contract procedure.
2.20.110 Inspection and testing of materials and services.
2.20.120 Change orders.
2.20.130 Surplus supplies and equipment.
2.20.140 Splitting orders to avoid competitive bidding prohibited.
2.20.150 Cooperative purchasing agreements with other agencies.
Prior legislation: Ords. 443 and 503.
2.20.010 Purchasing system – Purposes and objectives.
In order to establish efficient procedures for the purchase of supplies, nonprofessional 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. Contracts for nonprofessional services which are subject to this chapter cover services with standard nonpersonal qualities that are easily quantifiable and which lend themselves to bid price comparison. (Ord. 566, § 1; 1976 Code § 2-4.01).
2.20.020 Purchasing department established.
There is created a centralized purchasing department, in which is vested the responsibility and authority for the purchase of supplies, nonprofessional services and equipment as more particularly set forth in this chapter and such other rules and regulations as may be prescribed by the city council. (Ord. 566, § 1; 1976 Code § 2-4.02).
2.20.030 Designation of purchasing agent – Powers and duties.
A. The city manager is designated as purchasing agent. The city manager may delegate the routine administrative responsibilities as specified in this chapter, or in any other applicable purchasing regulations, to another staff person(s). The purchasing agent shall be the head of, and have general supervision over, the purchasing function. The duties of the purchasing agent may be combined with those of any other office or position.
B. The purchasing agent or his/her designee shall:
1. Negotiate purchases and contracts for equipment, supplies (other than library books and periodicals), nonprofessional services or services not involving unique ability required by any office or department of the city in accordance with purchasing procedures prescribed by this chapter, and such other rules or regulations as shall be prescribed by the city council;
2. Act to procure for the city the needed quality in equipment, supplies, nonprofessional services or services not involving unique ability, at least expense to the city;
3. Discourage uniform bidding, and endeavor to obtain as full and open competition as possible on all purchases;
4. Prepare and recommend to the city council rules governing the purchase of supplies, services and equipment for the city;
5. Keep informed of current developments in the field of purchasing prices, market conditions and new products;
6. Prescribe and maintain such forms and documents as are reasonably necessary to the operation of this chapter and other rules and regulations;
7. 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 department, or which have become unsuitable for city use;
8. Maintain a bidders’ list, vendors’ catalogue file, and records needed for the efficient operation of the purchasing system. (Ord. 566, § 1, Amended by Ord. 698, § 1; 1976 Code § 2-4.03).
2.20.040 Filing of estimated requirements.
All city departments shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing agent shall prescribe. The requirements for preparing estimates shall not prevent any city department from filing with the purchasing agent at any time a requisition for any supplies, services, or equipment, the need for which was not foreseen when the detailed estimates were filed. (Ord. 566, § 1; 1976 Code § 2-4.04).
2.20.050 Exemptions from centralized purchasing.
The purchasing agent may authorize in writing any city department to purchase or contract for specified supplies, services and equipment independently of the purchasing department, but such purchases or contracts shall be made in conformity with the procedures set forth in this chapter and such other rules and regulations as may be established, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization. (Ord. 566, § 1; 1976 Code § 2-4.05).
2.20.060 Professional services.
The city shall not be restricted to engaging in a competitive bidding procedure when seeking to retain specially trained persons or firms to provide services in connection with financial, economic, accounting, engineering, administrative, or other matters involving specialized expertise or unique skills. In securing professional services, the city shall utilize a request for proposals procedure, the method and details of which shall be outlined in administrative regulations adopted by the city. The purchasing agent may award any contract for professional services when the cost of such contract is equal to or less than fifty thousand dollars. Any contract for professional services which exceeds the cost of fifty thousand dollars shall be awarded by the city council. (Ord. 566, § 1; Amended by Ord. 697, § 1; 1976 Code § 2-4.06).
2.20.070 Public projects.
This chapter is expressly made inapplicable to bids for public projects which are governed by the procedures in Public Contract Code Sections 20160 et seq. The provisions contained in the Public Contract Code Sections 20160 et seq. establish the contract procedures the city shall follow regarding public projects. (Ord. 566, § 1; 1976 Code § 2-4.07).
2.20.080 Purchases under fifty thousand dollars.
A. Informal Bid Procedure. Purchases of an estimated value in the amount of fifty thousand dollars or less for supplies, equipment, nonprofessional services or services not involving a unique ability may be made by the purchasing agent in the open market, pursuant to the procedure prescribed in this chapter; provided, however, all bidding may be dispensed with for emergency purchases, or where the goods or services can be obtained from only one source, or when the amount is one thousand dollars or less.
1. Minimum Number Quotations. Open-market purchases shall, whenever possible, be based on at least three quotations and shall be awarded to the lowest responsible quotation.
2. Notice Inviting Quotations. The purchasing agent shall solicit bids by written request to prospective vendors or by telephone.
3. Written Quotations. Written quotations shall be submitted to the purchasing agent, who shall keep a record of all open-market orders and quotes for a period of one year after the submission of quotes or the placing of orders. Written records shall be maintained of all telephone quotations solicited. These records, while so kept, shall be open to public inspection.
4. Written Contracts. Where written contracts are entered into for purchases made under this section, the purchasing agent is authorized to execute such contracts on behalf of the city. Such contracts may take the form of purchase orders.
B. Requisition Forms. Using departments shall submit requests for the procurement of goods and services under this section to the purchasing agent by standard requisition forms. (Ord. 566, § 1; Amended by Ord. 697, § 1; 1976 Code § 2-4.08).
2.20.090 Encumbrance of funds.
Except in cases of emergency purchases, the purchasing agent shall not issue any purchase order for supplies, equipment, nonprofessional services or services involving unique ability for which there is an insufficient appropriation in the budgetary account against which said purchase is to be charged. (Ord. 566, § 1; 1976 Code § 2-4.09).
2.20.100 Formal contract procedure.
Except as otherwise provided herein, purchases of a value greater than fifty thousand dollars for supplies, equipment, nonprofessional services, or services not involving a unique ability shall be by written contract with the lowest responsive and responsible bidder, pursuant to the procedure prescribed in this section.
A. Notice Inviting Bids. Notice inviting bids shall include a general description of the articles to be purchased and shall state where bid forms and specifications (“contract documents”) may be secured, and the time and place for opening bids.
1. Publish Notice. Notice inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, circulated in the city.
2. Bidders’ List. The purchasing agent shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders’ list.
B. Bidder’s Security. When deemed necessary by the purchasing agent, bidder’s security shall be required in an amount that the purchasing agent deems appropriate for the procurement. Bidders shall be entitled to a return of the bid security upon the city’s execution of the contract with the successful bidder or upon the re-advertisement for bids; provided that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within the time period specified in the contract documents after the notice of award of contract has been mailed, unless the city is responsible for the delay.
C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent, 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.
D. Rejection of Bids. In its discretion, the city council may waive any minor irregularities in the bids or in the bidding procedures. The city 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 responsible bidder.
F. Tie Bids. If two or more bids received are for the same total amount or unit price with quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the city council may accept the bid it chooses, or accept the lowest bona fide offer by negotiation with the tie bidders following the bid opening.
G. Performance Bonds. The purchasing agent shall have authority to require a performance bond in such amount as it shall be found reasonably necessary to protect the best interests of the city. If the purchasing agent requires a performance bond, the form and amount of the bond shall be set forth in the contract documents.
H. Exemptions from Formal Contract Procedure.
1. Purchases of goods or services which can be obtained from only one source may be made by the purchasing agent without advertising and after approval by the city council.
2. The city council may authorize purchase of supplies, equipment and services without complying with the above procedures when in the opinion of the council, compliance with the procedures is not in the best interest of the city.
3. The city manager may authorize emergency purchases of supplies, equipment or services. For the purpose of this chapter, emergency purchases are those procurements required to prevent the immediate interruption or cessation of necessary city services or to safeguard life, property, or the public health and welfare. (Ord. 566, § 1, Amended by Ord. 697, § 1 and Ord. 698, § 1; 1976 Code § 2-4.10).
2.20.110 Inspection and testing of materials and services.
The purchasing agent shall inspect supplies and equipment delivered, and determine their conformance with the specifications set forth in the order or contract. The purchasing agent 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. 566, § 1; 1976 Code § 2-4.11).
2.20.120 Change orders.
Following the award of a procurement contract for materials, supplies, equipment or services pursuant to this chapter, the contract may be amended by the issuance of a change order, provided the change which is the subject of amendment is reasonably related to the scope of the original contract. The purchasing agent or his designee will maintain control relative to the scoping, estimating and negotiating of the proposed change(s) and the finance director will certify the availability of funds for the proposed change in the event that the change order increases the contract cost. On a regular basis, a report will be submitted to the city council outlining all change orders that have been issued to contracts governed by this chapter during the reporting period. Any change order with a total cost in the amount of twenty thousand dollars or less may be approved by the purchasing agent, provided the aggregate amount of all changes to a particular contract, including the change order under consideration, does not exceed twenty percent of the original contract cost. Any change order in an amount greater than twenty thousand dollars or any change order which, when considered with the aggregate amount of all other changes to a contract, exceeds twenty percent of the original contract cost, shall be approved by the city council. Any time extension of performance deadline up to a total of sixty days under a contract may be granted by the purchasing agent. Any time extension of a performance deadline that exceeds sixty days shall be approved by the city council. (Ord. 566, § 1; 1976 Code § 2-4.12).
2.20.130 Surplus supplies and equipment.
All using departments shall submit to the purchasing agent, at such times and in such forms as shall be prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have authority to sell by auction, advertisement for sealed bids or negotiation, 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 purchasing agent shall also have the authority to make transfers between departments of any usable surplus supplies or equipment. (Ord. 566, § 1; 1976 Code § 2-4.13).
2.20.140 Splitting orders to avoid competitive bidding prohibited.
It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter. (Ord. 566, § 1; 1976 Code § 2-4.14).
2.20.150 Cooperative purchasing agreements with other agencies.
Nothing contained in this chapter shall prohibit the participation by the city in any voluntary cooperative purchasing agreement or program entered into between the city and the state, county, or other municipalities or agencies. The purchasing agent is empowered and authorized to act under the provisions of this chapter to procure for the city supplies and equipment in conjunction with such voluntary cooperative purchasing agreements or programs which may be available and advantageous to the city. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program. (Ord. 566, § 1; 1976 Code § 2-4.15).
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