Chapter 5.02
PURCHASES AND CONTRACTS – SUPPLIES AND NONPROFESSIONAL SERVICES
Sections:
5.02.020 Contracts of twenty-five thousand dollars ($25,000.00) or less.
5.02.030 Contracts exceeding twenty-five thousand dollars ($25,000.00).
5.02.040 Formal bidding procedures.
5.02.050 Determination of lowest responsible bidder.
5.02.060 Preference to local vendors.
5.02.080 Alternative award upon failure of bidder to enter into contract.
5.02.100 Administrative and control procedures.
5.02.110 Exceptions to formal bidding procedures.
5.02.120 Cooperative purchasing agreements.
5.02.140 Collusion with vendor.
5.02.150 Unauthorized purchases – Exceptions.
5.02.170 Independent price determination.
5.02.180 Faithful performance, payment and maintenance bonds.
5.02.200 Failure of completion.
5.02.010 Findings.
In adopting this chapter, the City Council finds and determines that the giving of preference to local businesses who are vendors of supplies and providers of services directly and measurably benefits the City and the community at large by ensuring that local businesses are readily available and continue to be readily available to provide such supplies and services to the City and its residents from a location within the City. Such preferences also reduce time and expense expended by the City staff in acquiring supplies and services from businesses located outside of the City, provide additional sales tax revenues to the City, and assist local businesses in continuing to provide a source of employment for residents of the City. [Ord. 13-010 § 1.]
5.02.020 Contracts of twenty-five thousand dollars ($25,000.00) or less.
Subject to the availability of funds and the procedures set forth in this chapter, the Purchasing Officer is hereby authorized to bind the City, by written contract or purchase order, involving an expenditure of twenty-five thousand dollars ($25,000.00) or less, without first obtaining specific authorization by the City Council, for the purchase of supplies or nonprofessional services for the City. The Purchasing Officer shall use the following procedures:
A. For purchases of supplies or nonprofessional services having an estimated cost of two thousand five hundred dollars ($2,500.00) or less, informal quotes may be obtained from vendors but are not required.
B. For purchases of supplies or nonprofessional services having an estimated cost of more than two thousand five hundred ($2,500.00) but less than twenty-five thousand dollars ($25,000.00), an informal bid procedure should be used.
C. Bids should be solicited and obtained from local vendors whenever possible. [Ord. 13-010 § 1.]
5.02.030 Contracts exceeding twenty-five thousand dollars ($25,000.00).
Unless otherwise provided herein, all contracts for supplies or nonprofessional services involving an expenditure of more than twenty-five thousand dollars ($25,000.00) shall be awarded by City Council resolution after a formal bidding process, unless specifically exempted in this chapter. Such contracts shall be formal written agreements executed by the Purchasing Officer on behalf of the City. The signature of the Purchasing Officer shall constitute his or her certification that there remain unexpended and unapplied balances of the appropriations or funds applicable thereto sufficient to pay the estimated expense of performance of such contract. [Ord. 13-010 § 1.]
5.02.040 Formal bidding procedures.
A. When the Purchasing Officer determines that formal bidding procedures are necessary pursuant to DMC 5.02.030, the Purchasing Officer shall request that the City Clerk call for formal bids therefor by publishing a notice inviting bids at least once in a newspaper of general circulation in the City not less than ten (10) calendar days prior to the date set for opening bids. The Purchasing Officer, when he or she deems it to be advisable, may require more than one (1) advertising of the request for bids. The notice inviting bids shall be prepared and shall include: a general description of the supplies or nonprofessional services to be purchased, where the bid instructions and specifications may be obtained, the time and place for the bid openings, and whether a bid deposit or bond, or other security, such as performance, payment or maintenance bonds, will be required pursuant to DMC 5.02.180.
B. The Purchasing Officer shall solicit sealed bids from known responsible vendors whose names are on a bidder’s list maintained by the City, including local vendors and vendors who have requested their names be added to the bidder’s list. The Purchasing Officer may advertise the notice inviting bids in applicable publications and websites accessible to the public.
C. All bids shall be sealed, identified as bids on the envelope, and shall be submitted to the City Clerk at the place and time specified in the public notice inviting bids. All bids shall be made upon forms to be prepared by the City and furnished upon application. The preparation of such forms by bidders shall be subject to procedures formulated by the Purchasing Officer and shall include controls over erasures, corrections, and interlineations. Bids shall be opened in public at the time and place stated in the public notice inviting bids.
D. Bids shall be opened by the City Clerk or his or her designated representative, in public, at the time and place designated in the notice inviting bids. Bids received after the specific time shall not be accepted and shall be returned to the bidder unopened.
E. Within the time set forth in the specifications, the contract shall be awarded by the City Council to the lowest responsible bidder, as defined in DMC 5.02.050, taking into consideration the local vendor preference provided in DMC 5.02.060.
F. In its sole and absolute discretion, the City Council may waive any informalities or minor irregularities in the bids or reject all bids presented or readvertise for bids. [Ord. 13-010 § 1.]
5.02.050 Determination of lowest responsible bidder.
A. Where any provision of this chapter requires award of the contract for supplies or nonprofessional services to the “lowest responsible bidder,” it shall mean a responsible bidder who submits the lowest monetary bid that is a responsive bid.
In determining who is the lowest responsible bidder, the following matters shall be considered:
1. In determining whether a bidder is a responsible bidder, the city may use any of the following criteria to evaluate bidders:
a. The ability, capacity and skill of the bidder to perform the contract, provide the services required, or effectuate the transaction;
b. The ability of the bidder to perform the contract or effectuate the transaction within the time specified, without delay;
c. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
d. The quality of the bidder’s performance on previous purchases by, or contracts with, the City;
e. Prior and current compliance by the bidder with applicable law, including, without limitation, compliance with any applicable licensing requirements;
f. The sufficiency of the bidder’s financial and staffing resources for performing the contract or providing supplies or nonprofessional services;
g. The quality, availability and adaptability of the supplies or nonprofessional services to the particular use required; and
h. The ability of the bidder to provide future maintenance, repair parts and services for the supplies provided.
2. In determining whether a bid is a responsive bid, consideration shall be given to whether the bid documents are completed as required and the bid generally conforms to the bidding requirements.
3. In determining the lowest monetary bid, in addition to considering the lowest monetary price bid, the City Council or Purchasing Officer, as the case may be, shall consider which bids, price offers or quotations shall result in receipt by the City of sales or use tax under the provisions of Cal. Rev. & Tax. Code Division 2, Part 1.5 and Chapter 4.04 DMC and shall deduct the amount of sales or use tax which will have been received from any such bid, price offer or quotation.
B. The City Engineer/Public Works Director is authorized to create standardized prequalification questionnaires and related documents consistent with Cal. Pub. Cont. Code § 20101. These standardized prequalification questionnaires and related documents may be used as an alternate means of determining the lowest responsible bidder. [Ord. 13-010 § 1.]
5.02.060 Preference to local vendors.
A. Except when prohibited by State or Federal law or the agency providing to contract funds, for all contracts awarded by the City through formal bidding, if the lowest responsible bid is submitted by a local vendor, that business shall be awarded the contract. If the lowest responsible bid is not submitted by a local vendor, the lowest responsive bid submitted by a local vendor may be awarded the contract; provided, that the total contract price is within five percent (5%) of the total contract price of the lowest responsible bid.
B. Where formal bidding is not required by this chapter for supplies or nonprofessional services, preference shall be given to local vendors who can provide such supplies and nonprofessional services at a price that will be substantially competitive with businesses which are not located in the City. The administrative procedures shall provide that in making said determination, the officer or employee of the City may consider factors which include the need to undertake timely repair and maintenance of City equipment critical for the operations of the City, savings in staff time and expense associated with making purchases of supplies and nonprofessional services, and the desirability of having a local source of supplies and nonprofessional services for use by the City and its residents. [Ord. 13-010 § 1.]
5.02.070 Bid security.
Whenever, upon the call for bids for any purchase or contract, the City Council deems it to be advisable, each bidder shall be required to submit with the bid as bid security, either in cash, by cashier’s check or certified check in favor of and payable to the City, or by surety bond, an amount determined to be sufficient, but not to exceed ten percent (10%) of the total amount of the bid.
The bid security shall be returned to all bidders except the successful bidder within ten (10) days of the contract being awarded. The bid security shall be returned to the successful bidder once the contract is executed and any required bonds or securities required under the contract have been deposited, as required. If the successful bidder refuses or fails to execute the contract or post any required bonds within twenty (20) days of receiving the contract award from the City, the bid security shall be forfeited to the City and the Purchasing Officer shall draw the money due on such bid security and pay the same, or any cash deposited, into the City treasury. The bid security shall not be returned to the defaulting bidder in such case unless the City Council approves the return thereof in whole or in part. Upon good cause being shown, the Purchasing Officer may extend the time for the bidder to enter the contract for a period not to exceed thirty (30) days. [Ord. 13-010 § 1.]
5.02.080 Alternative award upon failure of bidder to enter into contract.
If the bidder to whom the contract is awarded shall fail to enter into the contract as required, the City Council may declare the award to that bidder a nullity, and award the contract to the next lowest responsible bidder, or it may readvertise for bids, or dispense with competitive bidding, as hereinafter provided. [Ord. 13-010 § 1.]
5.02.090 Readvertisement.
In the event the City Council rejects any and all bids, or in the event the bidder to whom a contract award is made fails to enter into the contract as required and the City Council does not make an award to the next lowest responsible bidder, the City Council may readvertise for bids, or may dispense with competitive bidding, as hereinafter provided. [Ord. 13-010 § 1.]
5.02.100 Administrative and control procedures.
The Purchasing Officer shall prepare, subject to approval by the City Council, administrative procedures sufficient to carry out the intent of this chapter. Such procedures shall include methods for the utilization of informal bidding procedures for those contracts and purchases to which the formal bidding procedures of this chapter are inapplicable. The Purchasing Officer shall institute control procedures for the execution of contracts and purchase orders as required herein. The Purchasing Officer shall establish control procedures for petty cash funds without prior use of purchase orders or contracts. [Ord. 13-010 § 1.]
5.02.110 Exceptions to formal bidding procedures.
The restrictions and provisions of this chapter requiring the award of contracts by formal bidding procedures shall not apply:
A. When, after advertising for bids as required herein, no valid bids are received;
B. When, upon the majority vote of all of the members of the City Council, it is determined that it is in the best interests of the City to suspend formal bidding procedures for any purchase or contract;
C. When, after receiving bids, the City Council rejects any and all of such bids, or when the bidder to whom an award is made fails to enter into the contract as required and the City Council does not make an award to the next lowest responsible monetary bidder, as provided herein;
D. When, upon majority vote of all members of the City Council, a written determination is made and supported finding that the supply or nonprofessional service can only be obtained from one vendor;
E. When the purchase is being done pursuant to a cooperative purchasing agreement as authorized in DMC 5.02.120; or
F. When the purchase is for surplus supplies as authorized in DMC 5.02.130. [Ord. 13-010 § 1.]
5.02.120 Cooperative purchasing agreements.
The Purchasing Officer, where advantageous to the City, may, by cooperative purchasing agreements approved by the City Council, purchase supplies or nonprofessional services through legal contracts of other governmental jurisdictions or public agencies without separate formal bidding procedures by the City. [Ord. 13-010 § 1.]
5.02.130 Surplus supplies.
When it is advantageous to the City, the Purchasing Officer, on approval by the City Council, may direct the purchase of surplus supplies from the United States government, or any agency thereof, or from the State of California, or agency thereof, or any public body, without compliance with formal bidding procedures or informal bidding procedures. [Ord. 13-010 § 1.]
5.02.140 Collusion with vendor.
Any officer or employee of the City, or of any department thereof, who shall aid or assist a vendor in securing a contract to furnish supplies or nonprofessional services at a higher price than that proposed by any other vendor, or who shall favor one (1) vendor over another by giving or withholding information, or who shall willfully mislead any vendor in regard to the character of the supplies called for, or who shall knowingly accept supplies of a quality inferior to those called for in the contract, or to the receipt of greater amount or different kind of supplies than has been actually received, shall be deemed guilty of a misdemeanor. [Ord. 13-010 § 1.]
5.02.150 Unauthorized purchases – Exceptions.
It shall be unlawful for any City officer or employee to purchase or contract for supplies or nonprofessional services on behalf of the City, other than as herein prescribed, excepting purchases made from petty cash, emergency purchases or other purchases made in conformance with procedures established by the Purchasing Officer. Any purchases, contracts, or obligations to pay made contrary to the provisions of this chapter shall be null and void. [Ord. 13-010 § 1.]
5.02.170 Independent price determination.
A. No person submitting any bid or proposal in connection with the procurement of supplies or nonprofessional services by the City shall:
1. Propose or bid prices which have not been arrived at independently without consultation, communication, or agreement with any other bidder, offeror, or competitor for the purpose of restricting competition as to any matter relating to the prices bid or proposed;
2. Unless otherwise provided by law, prior to opening of the bids or proposals, knowingly disclose any price bid or proposed to any other bidder, offeror or to any competitor;
3. Make any attempt to induce any other person, firm or other entity or association to submit or not to submit a bid or proposal for the purpose of restricting competition;
4. Knowingly be interested in more than one (1) bid as the principal bidder; provided, however, subcontract bids to the principal bidders are excluded from this subsection (A)(4).
B. In the case of joint venture bids, the joint venture and each and every member of the joint venture shall, for purposes of this section be construed to be the person submitting the bid or proposal.
C. Any violation of this section shall be unlawful and a misdemeanor and shall be punished by a fine not exceeding five hundred dollars ($500.00) or imprisonment for a term not exceeding six (6) months, or by both such fine and imprisonment. Any bid received or contract awarded where there was a violation of this section shall be null and void and the City Council shall proceed with the bid as if the bidder failed to enter into the contract after the award. Nothing in this section shall limit the City to any other remedy available to it under law and equity. [Ord. 13-010 § 1.]
5.02.180 Faithful performance, payment and maintenance bonds.
Whenever the City Council deems it advisable, it may require that a faithful performance bond be given on any contract in an amount determined to be sufficient up to and including one hundred percent (100%) of the contract price. Additionally, the City Council may require additional payment bonds or maintenance bonds, as it deems advisable in its sole discretion. Such bonds shall be approved as to form by the City Attorney. [Ord. 13-010 § 1.]
5.02.190 Time of completion.
The contract shall specify the time within which the supplies or nonprofessional services shall be furnished to the City and may provide for liquidated damages for failure to comply. The Purchasing Officer may extend such time for the acts of the City, acts of God, weather, strikes, or other circumstances over which the contractor has no control. The City Council may extend such time for causes other than those for which the Purchasing Officer may grant an extension of time, but in no event shall the time for the performance of any contract be extended by the Council more than ninety (90) days in addition to extensions as authorized by the Purchasing Officer. [Ord. 13-010 § 1.]
5.02.200 Failure of completion.
In case of failure on the part of the vendor to complete any obligation under the contract within the time specified in the contract, or within the extension of such time as herein provided, the contract may be terminated and the vendor shall not be paid or allowed any further compensation for any work done by it under such contract. The City Council may proceed to complete such a contract through any method it deems appropriate, and the vendor and vendor’s surety, if any, shall be liable to the City for all loss or damage which the City may suffer on account of vendor’s failure to complete the contract on time. [Ord. 13-010 § 1.]