CHAPTER 4.04
PURCHASING1
4.04.010 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 adopted. (Ord. 586 NCS §1: prior code §2.67.)
4.04.020 Purchasing officer.
There is created the position of purchasing officer. He shall be appointed by the city manager. The duties of purchasing officer may be combined with those of any other officer 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 regulations as the purchasing officer shall adopt and such other rules and regulations as shall be prescribed by the city council by resolution duly adopted;
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. 586 NCS §1: prior code §2.68.)
4.04.030 Exemptions from centralized purchasing.
The purchasing officer, with approval of the city council, may authorize, in writing, any agency 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. 586 NCS §1: prior code §2.69.)
4.04.040 Requisitions.
Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms. (Ord. 586 NCS §1: prior code §2.70.)
4.04.050 Bidding.
Purchases of supplies and equipment shall be pursuant to Sections 4.04.080 and 4.04.090 and 4.04.100. The procedures set forth in Sections 4.04.080 and 4.04.090 may be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply, when the commodity can be obtained from only one vendor, or when purchase is pursuant to Section 4.04.100. (Ord. 1975 NCS §1, 1995: Ord. 1938 NCS §3, 1993: Ord. 586 NCS §1: prior code §2.71.)
4.04.060 Purchase orders.
Purchases of supplies and equipment shall be made only by purchase order. (Ord. 586 NCS § 1: prior code §2.72.)
4.04.070 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 such purchase is to be charged. (Ord. 586 NCS § 1: prior code §2.73.)
4.04.080 Formal contract procedure.
Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than the amount defined by city charter shall be by formal bid pursuant to the procedure prescribed in this section.
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 once in the official newspaper at least five days before the date of opening of the bids,
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,
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 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;
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 thirty calendar days after the bid opening;
D. Rejection of Bids. The city council shall reserve the right to reject any or all bids in whole or in part and may waive any irregularities or informalities in any bids.
E. Award of Purchase or Contracts. Purchases or contracts shall be awarded to the lowest responsible bidder. In determining the lowest responsive and responsible bidder, the following shall be taken into consideration:
1. The quality, suitability, and efficiency of the item;
2. The total or life cycle cost of the equipment;
3. The delivery, discount terms, and all other conditions submitted in the bid;
4. The reputation of the equipment, the service reputation of the bidder, and all other information and data required to prove the responsibility of the supplier.
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 readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders;
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.
(Ord. 1975 NCS §2, 1995: Ord. 875 NCS § 1: Ord. 586 NCS § 1: prior code §2.74.)
4.04.090 Open market procedure.
Purchases of supplies and equipment of an estimated value less than required by charter for seeking formal bids may be made by the purchasing officer in the open market without observing the procedure prescribed by Section 4.04.080.
A. Minimum Number of Quotations. Open market purchases shall, whenever possible, be based on at least three quotations, and shall be awarded to the lowest responsible party;
B. Inviting Quotations. The purchasing officer shall solicit quotations from responsible prospective suppliers;
C. Quotations. Quotations shall be submitted to the purchasing officer who shall keep a record of all open market orders and quotations for a period of one year after the submission of quotations or the placing of orders. This record, while so kept, shall be open to public inspection.
(Ord. 1975 NCS §3, 1995: Ord. 875 NCS §2: Ord. 586 NCS §1: prior code §2.75.)
4.04.100 Cooperative purchasing programs.
Purchases of supplies and equipment made under a cooperative purchasing program with the state, county or other public agencies are exempt from the requirements of this chapter. Cooperative purchases joined will have been competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained. (Ord. 1938 NCS §2, 1993.)
4.04.110 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. 1938 NCS §1, 1993: Ord. 586 NCS § 1: prior code §2.76.)
Editor’s Note: For statutory provisions relating to the purchasing of supplies by cities, see Gov. Code §54201, et seq.