Chapter 1.09
CITY PURCHASING SYSTEM

Sections:

1.09.010    Adoption of purchasing system.

1.09.020    Purchasing Officer.

1.09.030    Exemptions from centralized purchasing.

1.09.040    Purchase procedures.

1.09.050    Encumbrance of funds.

1.09.060    Formal contract procedure.

1.09.070    Open market procedure.

1.09.080    Inspection and testing.

1.09.090    Exemptions from bidding procedure.

1.09.010 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 hereby adopted. (Ord. 2014-7 § 2 (Att. A), 8-12-2014)

1.09.020 Purchasing Officer.

There is hereby created the position of Purchasing Officer. He/she shall be appointed by the City Manager. The duties of Purchasing Officer may be combined with those of any other office or position. 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 regulative 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. Keep informed of current developments in the field 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 insure 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 become unsuitable for City use.

K. Maintain a bidders’ list, vendors’ catalog file and records needed for the efficient operation of the Purchasing Department. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 2006-4 § 1(1), 8-22-2006)

1.09.030 Exemptions from centralized purchasing.

The Purchasing Officer may authorize, in writing, any department to purchase or contract for specified supplies and equipment independently of the Purchasing Department, but he shall require that such purchases or contracts shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 2006-4 § 1(2), 8-22-2006)

1.09.040 Purchase procedures.

A. Requisitions. Using departments shall submit requests for supplies and equipment to the Purchasing Officer by standard requisition forms.

B. Bidding. Purchases of supplies and equipment shall be by bid procedures pursuant to NCC 1.09.060 and 1.09.070, unless exempted therefrom pursuant to NCC 1.09.090.

C. Purchase Orders. Purchases of supplies and equipment shall be made only by purchase order when purchases exceed $500.00 per order. Purchase orders should be created prior to order placement. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 2007-4 § 1, 6-26-2007; Ord. 2006-4 § 1(3), 8-22-2006)

1.09.050 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 said purchase is to be charged. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 205, 4-22-1958)

1.09.060 Formal contract procedure.

Except as otherwise provided herein, purchases and contracts for supplies and equipment of estimated value greater than $20,000 shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed herein.

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.

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 for posting public notices.

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 to 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. Bidder’s Security. When deemed necessary by the Purchasing Officer, bidder’s 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 City Council may, on refusal or failure of the successful bidder to execute the contract, award it 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.

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 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 except as otherwise provided in this chapter.

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 re-advertising 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.

G. 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 interests 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.

H. Local Business Preference. In evaluating competitive bids, the Council shall determine the lowest responsible bidder, and any local bidder may be granted a preference in an amount equal to one percent of the lowest responsible bid, if that low bid has been submitted by a nonlocal bidder. If, after the deduction of the one percent preference from a local bidder’s bid, it is equal to or less than the lowest bid, the bid should be awarded to the local bidder. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 2006-4 § 1(4), 8-22-2006; Ord. 77-25, 9-1977; Ord. 205, 4-22-1958)

1.09.070 Open market procedure.

Purchases of supplies and equipment of an estimated value in the amount of $20,000 or less may be made by the Purchasing Officer in the open market without observing the procedure prescribed by NCC 1.09.060, unless exempted therefrom pursuant to NCC 1.09.090.

A. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.

B. Notice Inviting Bids. The Purchasing Officer shall solicit bids by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in the City Hall.

C. Written Bids. Sealed 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. These records, while so kept, shall be open to public inspection. (Ord. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 2006-4 § 1(5), 8-22-2006; Ord. 77-25, 9-1977; Ord. 205, 4-22-1958)

1.09.080 Inspection and 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. 2014-7 § 2 (Att. A), 8-12-2014; Ord. 205, 4-22-1958)

1.09.090 Exemptions from bidding procedure.

Bidding procedures are not required under the following circumstances regardless of the amount involved:

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

B. When the commodity can be obtained from only one vendor;

C. For contracts involving the obtaining of professional or specialized skill, such as, but not limited to, services rendered by attorneys, engineers, accountants, and specialized consultants;

D. Where calling for bids on a competitive basis in the opinion of the Purchasing Officer is undesirable, impossible, unavailing, or incongruous;

E. When engaged in joint purchasing plans with the State and/or other units of government that have been approved by the Council; or

F. When the Council shall have adopted a resolution by at least four affirmative votes determining that the best interests of the City are served without compliance with the bid procedure prescribed by this chapter. (Ord. 2014-7 § 2 (Att. A), 8-12-2014)