CHAPTER 28
PURCHASE OF SUPPLIES AND CONTRACTUAL SERVICES

Article I. Purpose of Definitions.

28.1 Purpose.

The purpose of this chapter is to establish a purchasing system that will achieve economy and efficiency in the purchase and disposition of supplies and contractual services; exercise positive financial control over the purchases; define the authority for the purchasing function; and assure the quality of purchases. (Ord. No. 77-5, § 1; Ord. No. 82-25, §2.)

28.2 Definitions.

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

Responsible Bid. An offer, submitted by a responsible bidder to furnish supplies or contractual services in conformity with specifications, delivery terms, conditions, and other requirements included in the bid invitation.

Responsible Bidder. A bidder who submits a responsible bid and who is not only financially responsible, but is possessed of the resources, judgement, skill, ability, capacity, and integrity requisite and necessary to perform the contract according to its terms.

Purchases. Transactions, including lease and rental, by which the city acquires supplies and contractual services.

Supplies. Any and all articles, equipment, or personal property furnished to or used by any organizational unit of the city.

Contractual Services. Most types of agreements, excluding professional services as defined in this chapter, under which the contractor provides services which are required by the city, but not furnished by the city’s own employees, including maintenance contracts, rental of equipment and machinery, and such services as printing and cleaning.

Currently Adjusted Maximum. The maximum unit price of an individual item that the purchasing officer may purchase without submitting to formal competitive bidding procedures as defined in this chapter. (Ord. 88-31, Eff. 10/20/88)

Purchasing Manual. A manual prepared and maintained by the purchasing officer, with the approval of the finance director and the city manager, including but not limited to the policies, procedures, standardized forms and instructions with which to implement and augment this chapter (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.3-28.9 Reserved.

Article II. Purchasing Authority and General Provisions.

28.10 Centralized Purchasing.

There is hereby created a purchasing division of the finance department in which is vested the authority for the purchase of supplies and contractual services. (Ord. No. 77-5, § 1; Ord. No. 82-25, §2.)

28.11 Purchasing Officer.

The purchasing officer shall be the head of the purchasing division, and shall report to the city manager through the finance director. The duties of the purchasing officer shall include, but not be limited to, the following:

(a)    Purchase of supplies and contractual services of an actual value less than or equal to the currently adjusted maximum; and submit to formal competitive bidding procedures as defined in this chapter for purchase of supplies and contractual services of an actual value exceeding the currently adjusted maximum.

(b)    Execute contracts and agreements for the purchase of supplies and contractual services of an actual value less than or equal to the currently adjusted maximum.

(c)    Prescribe and maintain such records and forms as reasonably necessary.

(d)    Authorize the inspection of all supplies purchased to assure conformance with specifications.

(e)    Designate surplus supplies and dispose of efficiently and economically.

(f)    Prepare and maintain, with the approval of the finance director and city manager, a purchasing manual as defined in this chapter.

(g)    Authorize certain city employees to purchase limited amounts of supplies and contractual services. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.12 Currently Adjusted Maximum.

The currently adjusted maximum as of July 1, 1982 shall have an initial limitation of ten thousand dollars ($10,000) and shall be adjusted on July 1st each year hereafter based upon the increase of decrease in the cost of living as determined by the April report of the San Francisco Oakland Metropolitan Area Consumer Price Index For Urban Wage Earners and Clerical Workers as issued by the Bureau of Labor Statistics. (Ord. No. 82-25, § 2.)

28.13 Distribution of Purchasing Function.

The purchasing officer may delegate the purchase of supplies and contractual services in such amounts and in a manner consistent with procedures as may be established in the purchasing manual. (Ord. No. 82-25, § 2.)

28.14 Requisitions.

Organizational units of the city shall submit requests for supplies and contractual services to the purchasing officer by standard requisition form, or by other means as may be established in the purchasing manual. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.15 Purchase Orders.

Purchases of supplies and contractual services shall be made by purchase order or by other means as may be established in the purchasing manual. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.16 Encumbrance of Funds.

Except in cases of emergency, or in cases where specific written authority has first been obtained from the finance director and the city manager, the purchasing officer shall not issue a purchase order for supplies or contractual services unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charges. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.17 Lowest Responsible Bidder.

In addition to price, the determination of the lowest responsible bidder will include consideration of the following:

(a)    The ability, capacity, and skill of the bidder, including adequacy of physical facilities and financial resources, to perform the contract within the specified time and production requirements.

(b)    The bidders record of performance on previous contracts.

(c)    The character, integrity, experience, and reputation of the bidder, including compliance with laws and ordinances relating to the contract.

(d)    The bidder’s ability to provide future maintenance and service for the use of the subject of the contract.

(e)    The quality, availability, and adaptability of supplies or contractual services to the particular use required.

(f)    The number and scope of conditions attached to the bid. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.18 Exceptions to Bidding.

Bidding, formal or informal, may be dispensed with when:

(a)    An emergency requires that an order be placed with the nearest available source of supply.

(b)    The supplies or contractual services can reasonably be obtained from only one vendor. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.19 Professional Services.

The city manager may, without the prior approval of the city council, make and execute agreements for professional services. (Ord. No. 82-25, §§ 1, 2.)

28.20 Inspection and Testing.

The purchasing officer or designated authority shall inspect supplies delivered; including, as required, chemical and physical tests of samples, to determine conformance with specifications set forth in the order. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.).

28.21 Surplus Supplies and Equipment.

The purchasing officer shall designate as surplus and dispose of all supplies which cannot be used, or which have become unsuitable, in accordance with procedures established in the purchasing manual. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.22 External Restrictions.

Some purchases may be subject to the terms and conditions of various external codes, statutes and agreements of other governmental entities, including but not limited to Federal and State Grants and "public projects" as defined in the California Government Code. In these cases, this chapter shall apply only to the extent that it does not conflict with the external authority. (Ord. No. 82-25, § 2.)

28.23 Replacement of Landscape Maintenance Contractors.

In the event of unsatisfactory performance of any landscape maintenance contract, the Director of Public Works is authorized to terminate such contract in accordance with its provisions for termination. Upon such termination, notwithstanding the bidding requirements of this Chapter, the Director of Public Works may negotiate and award a replacement contract for the landscape services provided by the terminated contract for a period not to exceed six months. Any extension of the six month term shall be subject to the approval of the City Council and such extension shall be limited to the time necessary to restore and stabilize the landscaping and prepare contract bid documents for the award of a longer term maintenance contract on a competitively bid basis. The Public Works Director shall provide a written report to the City Council and City Manager of any action taken to terminate a landscape maintenance contract and hire a replacement contractor within 15 days after such action is taken. (Ord. No. 2013-21, § 1.)

28.24-28.29 Reserved.

Article III. Formal Competitive Bidding Procedures.

28.30 Purchases in Excess of the Currently Adjusted Maximum.

The selection of a vendor for the purchase of supplies and contractual services of an actual value greater than the currently adjusted maximum shall be by formal competitive bidding procedures as prescribed herein and in a manner consistent with procedures established in the purchasing manual. These procedures shall not apply when:

(a)    After inviting bids as required herein, no valid bids are received.

(b)    After receiving bids, the city council rejects all such bids.

(c)    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 bidder.

(d)    The city council determines that it is in the best interests of the city to suspend competitive bidding for any purchase. (Ord. No. 82-25, § 2.)

28.31 Formal Bid Invitations.

All invitations to formal competitive bidding shall be approved by the city council and include a general description of the supplies or contractual services to be purchased, and shall specify the time, place and date for opening bids as well as other data as may be established in the purchasing manual. Notices inviting bids shall be issued at least ten (10) days before the date of opening of the bids. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.32 Bidder’s Security.

When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the invitations to bid. Bidders shall be entitled to return of bid security after award of contract. However, a successful bidder shall forfeit bid security upon refusal or failure to execute the contract as agreed. If the lowest bidder defaults, and the city council awards the contract to the next lowest bidder, the lowest bidder’s security shall be applied to the contract price differential between the lowest bid and the second lowest bid. Any surplus security shall be returned to the lowest bidder. If the city council rejects all remaining bids and reissues invitations, the security of the defaulted lowest bidder may be used to offset the cost of receiving new bids, and any surplus returned. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.33 Bid Opening.

Sealed bids shall be submitted to the purchasing officer or designated authority, and shall be date stamped at the time received. At the time and place stated in the invitation to bid, all bid envelopes shall, in public, be opened at the same time and each read aloud. The purchasing officer, or his designated representative shall be present at all bid openings. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.34 Rejection of Bids, Irregularities.

In its discretion, the city council may reject any and all bids presented, or waive any informalities or minor irregularities in the bids. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.35 Change of Specifications.

If it is necessary to make minor, clarifying changes in specifications, an amendment, or addendum to the bid specifications shall be issued by the purchasing officer to all prospective bidders setting forth the changes. (Ord. No. 77-5, § 1; Ord. No. 82-35, § 2.)

28.36 Award of Contract.

Except as otherwise provided herein, contracts shall be awarded by the city council to the lowest responsible bidder. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.37 Uniform Bids.

If two or more bids received are for the same total amount or unit price, quality and service being equal, the city council may draw lots to determine the successful bidder or employ other means as deemed appropriate to award the contract. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.38-28.39 Reserved.

Article IV. Exceptions to Formal Competitive Bidding Procedures.

28.40 Purchases Less Than or Equal to the Currently Adjusted Maximum.

The purchase of supplies and contractual services of an actual value less than or equal to the currently adjusted maximum, may be made by the purchasing officer in the open market, in a manner consistent with procedures as may be established in the purchasing manual. (Ord. No. 82-25, § 2.)

28.41 Emergency Purchase Procedure.

In case of an emergency which requires immediate purchase of supplies or contractual services, the city manager or designated representative may authorize the purchasing officer to secure in the open market supplies or contractual services regardless of the amount of the expenditure and may waive any other purchase proceedings. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.42 Definition of Emergency.

An emergency shall be deemed to exist if:

(a)    There is a great public calamity.

(b)    There is immediate need to prepare for national or local defense.

(c)    There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies to protect the public health, welfare, or safety. (Ord. No. 82-25, § 2.)

28.43 Cooperative Purchasing Agreements.

The city manager, where advantageous to the city, may, by cooperative purchasing agreements, purchase supplies through legal contracts of other governmental jurisdictions or public agencies without separate competitive bidding by the city.

The city may act as the cooperating purchasing agent for other public entities. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

28.44 Surplus Supplies.

When it is advantageous to the city, the city manager may direct the purchase of surplus supplies from the United States government, or any agency thereof, or from the State of California, or any agency thereof, or any public body, without compliance with the competitive bidding requirements of this chapter. (Ord. No. 77-5, § 1; Ord. No. 82-25, § 2.)

Article V. Informal Bidding Procedures Under Uniform Public Construction Cost Accounting Act.

28.50 Informal Bid Procedures.

Public projects (as defined in Section 22002 of the California Public Contract Code) that do not exceed the dollar limits in Section 22032(b) of the Public Contract Code (as such limits currently exist or may subsequently be amended), may be let to contract by informal procedures as set forth in Section 22030 et seq. of the Public Contract Code. (Ord. 88-31, § 1; Ord. No. 2017-16, § 1.)

28.51 Contractor’s List.

A list of contractors may be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Public Construction Cost Accounting Commission. (Ord. 88-31, § 1; Ord. No. 2017-16, § 2.)

28.52 Notice Inviting Informal Bids.

Where a public project is to be performed which is subject to provisions of Section 28.50, it shall be advertised in accordance with one or both of the following methods:

a.)    a notice inviting informal bids shall be mailed, faxed, or emailed not less than ten calendar days before bids are due to all contractors for the category of work to be bid as shown on the list developed in accordance with Section 28.51, or

b.)    a notice inviting informal bids shall be mailed, faxed, or emailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids. 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. (Ord. 88-31, § 1; Ord. No. 2017-16, § 3.)

28.53 Award of Contracts.

The Purchasing Officer and Public Works Director are each authorized to award informal contracts pursuant to this Article V of Chapter 28. (Ord. 88-31, § 1; Ord. No. 2017-16, § 4.)