Chapter 3.45 PURCHASING

Where the cost of materials, supplies, equipment and services for nonpublic projects equals or exceeds a sum set forth by separate resolution of the city council, the city manager shall require that a formal competitive bidding process be used by advertising on PlanetBids or another medium of similar scope and circulation. Where the cost of materials, supplies, equipment and services for nonpublic projects is less than the sum set forth by separate resolution of the city council, the city may select a contractor, supplier or provider without using a formal competitive bidding process. The city manager shall implement procedures for formal competitive bidding. Such procedures shall include the following guidelines:

A. Invitations to Bid, RFPs, and RFQs. Invitations to bid, requests for proposals (RFP) and requests for qualifications (RFQ) shall include specifications that describe the material, supplies, equipment and services for nonpublic projects with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required.

B. Bid Opening. A bid opening will occur at a time and place noticed in the invitation to bid, RFP or RFQ.

C. Award of Contracts. Contracts for materials, supplies, equipment and services for nonpublic projects shall be awarded to the lowest qualified responsible bidder with the following exception: Where a contract is for professional services, the city is authorized to award contracts based solely upon evaluation of the qualifications held by responsible bidders.

D. Waiver of Defects and Technicalities. The city may waive defects and technicalities when to do so would be in the best interests of the city.

E. Bid Protests.

1. A nonselected bidder may protest award of an invitation to bid by submitting a written bid protest which shall be received by the city clerk no later than seven calendar days after the city’s selection of the winning bidder or no later than 10 calendar days from the date that the city issues notice of designation of a bidder as nonresponsible. A nonselected proposer may not protest the award of a professional service or concessionaire agreement.

2. The bid protest shall state all grounds claimed for the protest and include supporting documentation. Failure to clearly state the grounds for the protest and provide supporting documentation shall be deemed a waiver of all protest rights.

3. Where award of the contract is to be made by the city council, the city clerk shall place a discussion of the bid protest on the next regularly scheduled council meeting agenda and the city council shall determine whether, based on the protest, to award the contract to the selected bidder, to reject all bids, or to award the contract to the next lowest responsible bidder.

F. Local Business Preference. The city shall apply a five percent discount to all local businesses which submit bids for materials, supplies, equipment and services for nonpublic projects. The city shall evaluate the local businesses’ bids as though the bid had been submitted at a cost of five percent lower than the cost submitted.

G. Bidder’s Security. When deemed necessary, bidders’ security may be prescribed in invitations to bid, RFPs, and RFQs. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute that contract within 10 days after receipt of the contract. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-1)

3.45.030 Informal bidding.

Where the cost of materials, supplies, equipment and services for nonpublic projects is less than a sum set forth by separate resolution of the city council, the city manager shall require that an informal bidding process be used. The city manager shall implement procedures for informal bidding. Such procedures shall include the following guidelines:

A. The city manager or his or her designee shall obtain three quotes for the materials, supplies, equipment or services for nonpublic projects; documentation of said quotes shall be submitted to the finance department.

B. Though the quotes need not be submitted to the city in writing, for each quote received, the city manager or his or her designee shall document the quote in writing.

C. The city manager or his or her designee shall select the lowest responsible quote, with the following exception: Where a contract is for professional services, the city is authorized to award contracts based solely upon evaluation of the qualifications held by responsible bidders. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-2)

3.45.040 Control procedures.

The city manager shall institute procedures for the execution of contracts and purchase orders as required herein. The city attorney shall approve the form and legality of all written agreements prior to the execution thereof. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-3)

3.45.050 Bifurcation of purchases.

No acquisition of materials, supplies, equipment or services from a single vendor, provider or contractor shall be accomplished by the issuance of several purchase orders or contracts for portions thereof. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-4)

3.45.060 Sole source purchases.

Where an acquisition would otherwise be subject to formal competitive bidding, the acquisition of materials, supplies, equipment or services from a sole source may be permitted only where the requesting department submits to the finance department and the city attorney’s office an explanation as to why a sole source is necessary and in the best interest of the city. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-5)

3.45.070 Emergency purchases.

Whenever the procedures set forth in this chapter would result in hazardous delays, loss to the city, or damage to life, health or convenience of citizens, the city manager or his/her designee may purchase materials, supplies, equipment or services. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-6)

3.45.080 Environmentally preferable products.

The city desires to purchase environmentally preferable products that minimize environmental impacts, reduce waste by increasing product efficiency, contain recycled content, and contain U.S. Environmental Protection Agency Energy Star-certified materials whenever economically feasible. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-7)

3.45.090 Cooperative purchasing.

Where another governmental agency performs a solicitation and/or bid process for the city and/or multiple agencies or jurisdictions, and where the purchase of materials, supplies and equipment is based on an agreement or cooperative purchasing program pursuant to authority granted by statute or ordinance, pursuant to contractual arrangement between the city and said governmental agency, or pursuant to a determination by the city manager that the governmental agency conducted a competitive bidding process, the city may purchase materials, supplies and equipment based upon the governmental agency’s solicitation and/or bid process without complying with the bidding requirements of this chapter. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-8)

3.45.095 Valid business and professions tax certificate.

The city shall not render payment to any vendor or professional services provider where such vendor or provider does not possess a valid South Lake Tahoe business and professions tax certificate. (Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1)

Article II. Public Contracts and the Uniform Public Construction Cost Accounting Act

3.45.100 Requirements for public projects.

Awarding contracts for public projects shall be in accordance with the Uniform Public Construction Cost Accounting Act (the “Act”) (Public Contract Code Section 22000 et seq. or any successor provision thereto) for all public projects except design-build projects under SLTCC 3.45.165 and those in which grant funds require alternate bidding procedures. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-20)

3.45.105 Prequalification.

A. The city may require each prospective bidder for a contract to submit a standardized questionnaire and financial statement in the form specified by the director of public works.

B. The city may establish a process for prequalifying prospective bidders on a quarterly basis, and a prequalification pursuant to this process shall be valid for one calendar year following the date of initial prequalification. The director of public works is authorized to establish such a quarterly prequalification process.

C. A prospective bidder may appeal its prequalification rating for a contract to the director of public works in accordance with this subsection and procedures consistent with this section issued by the director of public works.

1. Upon request of the prospective bidder, the director of public works shall provide notification to the prospective bidder in writing of the basis for the prospective bidder’s disqualification and any supporting evidence that has been received from others or adduced as a result of investigation by the city.

2. Prior to the closing time for receipt of bids, the prospective bidder shall provide to the director of public works in writing any rebuttal evidence as to why the prospective bidder should be found qualified.

3. If the prospective bidder does not avail itself of this process, the proposed prequalification rating may be adopted without further proceedings. (Ord. 1171 § 1)

3.45.110 Director of public works authority.

A. Public project contracts of $60,000 or less may be executed by the director of public works or his or her designee by force account, negotiated contract, or purchase order. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Public project contracts of $200,000 or less may be executed by the director of public works or his or her designee in accordance with the provisions of this article. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-21)

3.45.120 Formal competitive bidding.

A. Monetary Limit. Public projects of greater than $200,000 shall be bid in accordance with the procedures set forth in Public Contract Code Section 22037 et seq. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Local Hire. Unless such provision would conflict with a state or federal law or grant requirement applicable to a particular contract for a public project, contracts for public projects subject to formal competitive bidding shall contain provisions requiring the contractor to make a good faith effort to hire individuals who are residents of the Lake Tahoe Basin portion of El Dorado County in sufficient numbers so that no less than 15 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, are such residents. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1; Ord. 1179 § 1. Code 1997 § 22-22)

3.45.130 Informal bidding.

A. Monetary Limit. Public contracts of $200,000 or less may be let to contract by informal procedures as set forth in this section. This limit shall be automatically adjusted from time to time to reflect changes in the limits established by the state of California.

B. Contractors List. The city shall maintain a contractors list and contractors shall be selected to perform public projects in accordance with the provisions of Public Contract Code Section 22034.

C. Notice Inviting Informal Bids. Not less than 10 calendar days before bids are due, the city will mail notices inviting informal bids to all contractors on the contractors list and/or all trade journals specified in Public Contract Code Section 22034(b).

a. 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 only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission.

b. If the product or service is proprietary in nature 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.

c. The notice inviting informal bids shall include specifications that describe the public project with sufficient particularity to allow for competitive bidding and evaluation. The specifications shall also describe the functions and performance that are required. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-23)

3.45.140 Waiver of irregularities and rejection of bids.

A. At its discretion, the city may waive any irregularity in any bid received and award the contract.

B. At its discretion, the city may reject all bids presented and may readvertise the project.

C. At its discretion, the city may abandon the project. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-24)

3.45.150 Lowest responsible bidder.

Contracts for public projects shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses. In determining the lowest responsible bidder, the following factors may be considered in addition to price:

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

B. The character, integrity, reputation, judgment, experience, efficiency and performance demonstrated in previous contracts or services for the city;

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

D. The ability of the bidder to provide future maintenance for service for the public project. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-25)

3.45.160 Prohibition against splitting projects.

It shall be unlawful to split or separate any public project into smaller work orders or projects for the purpose of circumventing or evading the requirements of the Act. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-26)

3.45.165 Design-build contracts.

A. The purpose of this section is to authorize and provide guidelines for the award and use of “design-build contracts,” which means a public project procurement method in which both the design and construction of the project are procured from a single entity, in accordance with Public Contract Code Section 22160 et seq. This section shall be effective until January 1, 2025, unless the authorizing statute is extended, in which case this section shall be effective so long as Public Contract Code Section 22160 et seq. is in effect.

B. Design-build procurement may be used for public projects in excess of $1,000,000 consisting of the construction of a building or buildings and improvements directly related thereto and park and recreational facilities, and may not be used for construction of other infrastructure including, but not limited to, streets and highways.

C. The city shall prepare and issue a request for qualifications to prequalify or short-list the design-build entities. The request for qualifications shall include an identification of basic scope and needs of the project, the expected cost range, the methodology that will be used to evaluate proposals, the procedure for final selection of the design-build entity, technical design and construction expertise, acceptable safety record, and all other nonprice-related factors. The city shall use a standard template request for statements of qualifications that shall require the information from design-build entities required by Public Contract Code Section 22164(b)(3).

D. The city shall issue a request for proposals to prequalified or short-listed design-build entities which sets forth the scope of the project that may include the size, type, and desired design character of the buildings and site and performance specifications. Performance specifications should describe the quality of materials, equipment, and workmanship, preliminary plans or building layouts, and other information deemed necessary to adequately describe the city’s needs. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California. The request for proposals shall also set forth the estimated price, methodology used to evaluate proposals, and whether the contract will be awarded on the basis of lowest responsible bidder or best value.

E. For design-build projects awarded on the basis of best value, proposals shall be evaluated on the basis of price, technical design and construction expertise, life-cycle costs over 15 or more years, and other factors within the city’s discretion that are included in the request for proposals, including whether the design-build entity has made a good faith effort to hire individuals who are residents of the Lake Tahoe Basin portion of El Dorado County in sufficient numbers so that no less than 15 percent of the contractor’s total construction workforce, including any subcontractor workforce, measured in labor work hours, are such residents. The city may request proposal revisions and hold discussions and negotiations with responsive proposers in accordance with procedures set forth in the request for proposals.

F. Any architectural firm, engineering firm, specialty consultant, or individual retained by the city to assist in the development of plans, designs, performance standards, or the request for proposals shall not be eligible to submit a proposal as a design-build entity or join a design-build team.

G. The design-build entity shall provide payment and performance bonds for the project in the form and amount required by the city, and issued by a California-admitted surety. Final design plans shall be signed and sealed by a California-registered professional engineer or architect for the required disciplines. The design-build entity shall provide errors and omissions insurance for the design elements of the project.

H. The city may identify specific types of subcontractors that must be included in the statement of qualifications and proposal. All construction subcontractors identified in the proposal shall be afforded the protections of the Subletting and Subcontracting Fair Practices Act, Public Contract Code Section 4100 et seq. Alternatively, if construction subcontractors are not identified in the proposal, the design-build entity shall specify the specific types of subcontractors and construction trades, and following award, for all construction subcontracts with a value exceeding one-half of one percent of the contract price allocated to construction work, the design-build entity shall provide public notice of availability of work to be subcontracted, including a fixed date and time on which qualification statements, bids, or proposals will be due, establish reasonable qualification criteria and standards, and award the subcontract on the basis of either best value or lowest responsible bidder. (Ord. 1171 § 1; Ord. 1179 § 2)

3.45.170 Change orders.

The director of public works is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts authorized in this chapter so long as the combined amounts are within the approved project budget. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-27)

3.45.180 Emergencies.

In cases of emergency, when repair or replacements are necessary, the governing body may proceed to replace or repair any public facility by complying with Public Contract Code Section 22050. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1; Ord. 1171 § 1. Code 1997 § 22-28)

Article III. Expenditure of City Funds

3.45.190 Award of contracts by city council.

All contracts for supplies and services involving an expenditure beyond the spending limit authority of a department or employee shall be awarded by the city council. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-30)

3.45.200 Procurement methods.

Expenditure of city funds for all materials, supplies, equipment and services (for both public projects and nonpublic projects) shall be made using the following methods:

A. City-issued CalCards, or other approved credit cards, shall be used for purchases of materials, supplies, and equipment of a monetary amount set forth by separate resolution of the city council. Where city-issued CalCards are not accepted, invoices accompanied by a city purchase order may be used for purchases of materials, supplies, and equipment equal to this amount.

B. Invoices (submitted to the city’s accounts payable division) shall be used for purchases of materials, supplies and equipment of a monetary amount set forth by separate resolution of the city council.

C. Invoices accompanied by a city purchase order signed by a city employee possessing the authority to approve such a purchase order shall be used for all services of a monetary amount set forth by separate resolution of the city council.

D. Written contracts shall be used for all materials, supplies, equipment, and services of a monetary amount set forth by separate resolution of the city council. (Ord. 1069 § 1 (Exh. A); Ord. 1109 § 1 (Exh. A); Ord. 1165 § 1. Code 1997 § 22-31)