3-6.01    Adoption of Purchasing System

3-6.02    Exemptions

3-6.03    Centralized Purchasing Department

3-6.04    Purchasing Officer

3-6.05    Exemptions From Centralized Purchasing

3-6.06    Purchase Procedure

3-6.07    Inspection and Testing of Supplies, Materials and Equipment Purchases

3-6.08    Encumbrance of Funds

3-6.09    Unlawful Purchases or Contracts

3-6.01 Adoption of Purchasing System.

In order to establish efficient procedures for the purchase of supplies, materials, and equipment, to secure for the City supplies, materials, 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. 85-010, eff. July 2, 1985)

3-6.02 Exemptions.

The policies and procedures established by this chapter shall govern the purchase of supplies, materials and equipment and are adopted pursuant to Government Code Section 54201, et seq. As used in this chapter, the term “purchase” includes leases and lease purchases. For the purpose of determining the application of the monetary limits of this chapter to leases and lease purchases, the expenditure under a lease or lease purchase shall be the amount of the annual rental. Such policies and procedures shall not apply to the following:

(a)    Contracts for services and advice such as Code codification, financial, economic, accounting, legal, engineering, personnel, labor negotiation, investigation and administrative services;

(b)    Contracts for public projects where the expenditure exceeds five thousand dollars ($5,000.00). The term “public project” shall have the same meaning as that term is defined in Government Code Section 37901 as the same now reads or is hereafter amended. Public projects shall be advertised, let and contracted for in accordance with Government Code Section 37901, et seq.;

(c)    Purchase of supplies, materials, and equipment shall be exempt from the procedures of this chapter in the following cases:

(1)    The purchase is made through the Department of General Services of the State,

(2)    The purchase is combined with that of another public agency of the State, provided such public agency followed the competitive bidding practices which comply with the legal requirements applicable to such agency,

(3)    The supplies, materials, and equipment are only available from a single source,

(4)    In the event of an emergency situation, such as an extraordinary fire, flood, storm, epidemic, or other disaster, or if it is necessary to do emergency work to prepare for national or local defense, the purchasing officer may expend any sum required in the emergency without complying with the procedures called for in this chapter.

(Ord. 85-010, eff. July 2, 1985)

3-6.03 Centralized Purchasing Department.

There is created a Centralized Purchasing Department in which is vested authority for the purchase of supplies, materials and equipment.

(Ord. 85-010, eff. July 2, 1985)

3-6.04 Purchasing Officer.

The Purchasing Officer shall be the head, and have general supervision of the Purchasing Department. The duties of the Purchasing Officer may be combined with those of any other office or position. Unless and until changed by an amendment, the City Manager shall serve as Purchasing Officer. The Purchasing Officer shall have authority to:

(a)    Purchase or contract for supplies, materials, and equipment required by all City departments. All such purchases and contracts shall be made in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Officer shall adopt for the internal management and operation of the Purchasing Department, and such other rules and regulations as shall be prescribed by the City Council;

(b)    Negotiate and execute contracts for the purchase of supplies, materials and equipment;

(c)    Act to procure for the City the needed quality in supplies, materials, and equipment at least expense to the City;

(d)    Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases;

(e)    Establish rules governing the purchase of supplies, materials, and equipment for the City, and revise and amend such rules;

(f)    Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

(g)    Prescribe and maintain such forms as reasonably necessary to the operations of this chapter and other rules and regulations, including the use of consecutively numbered purchase orders;

(h)    Supervise the inspection of all supplies, materials, and equipment purchased to insure conformance with specifications;

(i)    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.

(Ord. 85-010, eff. July 2, 1985)

3-6.05 Exemptions from Centralized Purchasing.

The Purchasing Officer may authorize any City department to purchase or contract for specified supplies, materials and equipment independently of the Purchasing Department, provided that such purchases or contracts be made in conformity with the procedures established by this chapter.

(Ord. 85-010, eff. July 2, 1985)

3-6.06 Purchase Procedure.

Where an expenditure for the purchase of supplies, materials, or equipment exceeds two thousand dollars ($2,000.00), or where the expenditure for a public project is greater than two thousand dollars ($2,000.00) but less than five thousand dollars ($5,000.00), the Purchasing Officer shall contract for or purchase the same upon the open market in accordance with the procedures established in this section.

(a)    Invitation for Bids. The Purchasing Officer shall solicit bids by written request, by telephone or by public notice on a public bulletin board.

(b)    Minimum Number of Bids. Open market purchases shall, whenever practicable, be based on at least three (3) bids.

(c)    Award. Contracts shall be awarded to the lowest responsible bidder. If two (2) or more bids received are for the same total amount or unit price, the Purchasing Officer may negotiate a price with either or both of the low bidders or award the contract by lot.

(d)    Performance Bonds. The Purchasing Officer shall have the authority to require a performance bond before entering a contract where reasonably necessary to protect the best interests of the City. If the Purchasing Officer requires a performance bond, the form and amount of the bond shall be included in the invitation for bids.

(e)    Trade-in. In the event any purchase of equipment involves a credit for City-owned equipment being traded, for the purpose of establishing the monetary limit of such purchase, the amount shall be the full amount of the purchase price.

(Ord. 85-010, eff. July 2, 1985)

3-6.07 Inspection and Testing of Supplies, Materials, and Equipment Purchases.

The Purchasing Officer or designee shall inspect supplies, materials and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The Purchasing Officer shall have the authority to require chemical and physical tests of samples submitted with bids and sample deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. 85-010, eff. July 2, 1985)

3-6.08 Encumbrance of Funds.

Except in cases of emergency, or by order of the City Council, the Purchasing Officer shall not issue any purchase order for supplies, materials and equipment unless there exists an unencumbered appropriation in the department budget against which said purchase is to be charged.

(Ord. 85-010, eff. July 2, 1985)

3-6.09 Unlawful Purchases or Contracts.

If any officer or employee purchases or contracts for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter, such purchase order or contract shall be void and of no effect. The officer or employee making such purchase or contract shall be personally liable for the amount of such purchase or contract, and if already paid for out of City funds, the amount thereof may be recovered in the name of the City in an appropriate action therefor.

(Ord. 85-010, eff. July 2, 1985)