Chapter 2.42
PURCHASING SYSTEM
Sections
2.42.030 Purchasing policies, procedures, limits and functions.
2.42.040 Use of purchase orders.
2.42.060 Purchases without bidding.
2.42.070 Sole source procurement.
2.42.080 Informal bidding procedure.
2.42.090 Formal bidding procedure.
2.42.100 Notice inviting bids.
2.42.110 Bid opening procedure.
2.42.130 Rejection of bids; award of contracts.
2.42.160 Surplus supplies and equipment.
2.42.170 Requirements for public projects.
2.42.190 Lowest responsible bidder determination.
2.42.210 Prohibition against splitting projects.
2.42.220 Affirmative action—Penalty for noncompliance.
2.42.010 Purpose.
A purchasing system is adopted for the purpose of establishing efficient procedures for the purchase of supplies, services, equipment and public projects for the city, at the lowest cost commensurate with required quality, to exercise positive financial control over purchases that meet legal requirements and generally accepted accounting principles, and to define authority for the purchasing function. (Ord. No. 962, § 2, 10-28-2008)
2.42.020 Definitions.
"Bidder’s List" means a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the list shall be determined by the California Uniform Construction Cost Accounting Commission.
"Change Order" means the written authorization from the City directing an addition, deletion or revision to an awarded purchase order or contract.
"Facility" is generally defined as any plant, building, structure, ground facility, utility system, real property, streets and highways, or other public work improvement.
"Maintenance Work" means and includes (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one (1) inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher.
"Public Project" means any of the following: (1) construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or (2) painting or repainting of any publicly owned, leased, or operated facility. A Public Project does not include Maintenance Work.
"Purchasing Agent" means the City Manager and his/her designee. (Ord. No. 962, § 2, 10-28-2008)
2.42.030 Purchasing policies, procedures, limits and functions.
The City Manager shall recommend and the City Council shall approve policies and procedures necessary to implement a purchasing system compliant with Section 2.42.010, which will include the necessary assignment of duties in order to carry out those policies and procedures. Those policies and procedures shall include dollar limits associated with the purchase of goods, supplies and services, professional services agreements, and Public Projects. Such dollar limits shall be reviewed and modified based upon City Council resolution on a periodic basis as determined by the City Manager. In accordance with the adopted policies and procedures, the purchasing agent is authorized pursuant to the authority granted by this Chapter to:
A. Purchase or contract for supplies, services, equipment and public projects required by City departments;
B. Negotiate and recommend execution of contracts for the purchase of supplies, services, equipment, and public projects;
C. Comply with the requirements of the California Public Contracts Code, including the provisions of the Uniform Cost Accounting Act (California Public Contract Code Section 22000 et seq.) for competitive bidding of public projects;
D. Prescribe and maintain forms required by this Chapter;
E. Supervise the inspection of all supplies and equipment purchased to ensure conformance with contract documents;
F. The individual departments who use this ordinance will be responsible for maintaining a bidders’ list of the vendors that are capable of supplying the various goods, supplies and services required by the City;
G. Encourage competitive bidding as set forth in this Chapter;
H. Act to procure for the City the necessary quality in supplies, services, equipment, and public projects at the lowest cost to the City;
I. Execute the provisions contained in this Chapter and provide administrative interpretation and advice on the provisions contained herein. (Ord. No. 962, § 2, 10-28-2008)
2.42.040 Use of purchase orders.
Purchases of supplies, materials, equipment and services of any amount greater than the minimum amount established in the City’s purchasing policy shall be made only by purchase orders. (Ord. No. 962, § 2, 10-28-2008)
2.42.050 Emergency purchases.
When repairs or replacements are necessary in an emergency, the City Council, by a four-fifths vote, declaring that the public interest and necessity demand the immediate expenditure of money to safeguard life, health or property, may proceed at once to replace or repair any public facility without adopting plans, specifications, or working details, or giving notice of bids to let contracts, and without otherwise complying with the requirements of this Chapter. For purposes of this Section the term "emergency" shall mean a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. The work may be done by day labor, by contract, or by a combination of the two (2).
A. Prior to taking such action, the City Council shall make a finding, based on substantial evidence in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to an emergency.
B. If the City Council orders emergency action, it shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action.
C. For the purposes of this Section, the City Manager is hereby delegated the authority to declare the public emergency in such circumstances when it is not feasible for the City Council to meet to do so, and take such actions as he or she deems necessary, consistent with the provisions of this Section. The City Manager’s actions shall be subject to prompt review by the City Council as to the need to continue the emergency action, in accordance with the provisions of Public Contract Code Section 22050.
D. When the City Council reviews the emergency action, it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the action may be completed by giving notice for bids to let contracts. (Ord. No. 962, § 2, 10-28-2008)
2.42.060 Purchases without bidding.
Purchases of supplies, services and equipment of an estimated value less than so stated in purchasing policy limits may be made by the purchasing authority by force account, negotiated contract or purchase order. (Ord. No. 962, § 2, 10-28-2008)
2.42.070 Sole source procurement.
In those situations where the procurement of any product is obtainable only from a single or sole source, and not adaptable to competitive bidding, the purchasing agent shall negotiate with the purveyor of such equipment, product, supply or service, to the end that the City receives the desired equipment, product, supply, or service on fair and equitable terms, without observing the bidding procedures prescribed in this Chapter. (Ord. No. 962, § 2, 10-28-2008)
2.42.080 Informal bidding procedure.
Purchases of supplies, services and equipment of a value less than so stated in purchasing policy limits, may be made by the purchasing agent by observing the informal bid procedure.
A. Purchases shall, wherever possible, be based on at least three (3) bids, and shall be awarded to the lowest responsible bidder.
B. The purchasing agent may solicit bids by written requests to prospective vendors, by telephone or email or by any other means deemed effective. (Ord. No. 962, § 2, 10-28-2008)
2.42.090 Formal bidding procedure.
All purchases of supplies, services, and equipment of an estimated value greater than the stated purchasing policy limits shall be based on competitive sealed written bids, with the lowest or highest responsible bidder as the case may be, pursuant to the procedure hereinafter prescribed. (Ord. No. 962, § 2, 10-28-2008)
2.42.100 Notice inviting bids.
Notices inviting bids shall include a general description of the supplies, services, or equipment to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening bids.
A. Notices inviting bids shall be published at least ten (10) days before the date of the opening of the bids. Notice shall be published at least once in a newspaper of general circulation, published in the area of the City.
B. The purchasing agent shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders’ list or who have made written request that their names be added thereto. (Ord. No. 962, § 2, 10-28-2008)
2.42.110 Bid opening procedure.
Sealed bids shall be submitted to the City and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the bid notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. (Ord. No. 962, § 2, 10-28-2008)
2.42.120 Bidder’s security.
When deemed necessary by purchasing agent, bidders’ security may be prescribed in the public notices inviting bids. 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 ten (10) days after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The City Council, on refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder or reject all bids. If the City Council awards the contract to the next lowest responsible bidder, the amount of the lowest bidder’s security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. If the City Council rejects all bids presented and re-advertises, the amount of the lowest bidder’s security may be used to offset the cost of receiving new bids, and the surplus, if any shall be returned to the lowest bidder. (Ord. No. 962, § 2, 10-28-2008)
2.42.130 Rejection of bids; award of contracts.
A. At its discretion, the City Council or purchasing agent may reject any and all bids presented and re-advertise for bids.
B. Except as otherwise provided in this Chapter, contracts shall be awarded by the City Council to the lowest responsible bidder. (Ord. No. 962, § 2, 10-28-2008)
2.42.140 Tie bids.
If two (2) 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 for readvertising for bids, the City Council or purchasing agent may, in its discretion, accept the bid it chooses or accept the lowest bid made after negotiation with the tie bidders. (Ord. No. 962, § 2, 10-28-2008)
2.42.150 Performance bonds.
The City Council or the purchasing agent shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interest of the City. If the City Council or purchasing agent requires a performance bond, the form and the amount of the bond shall be described in the notice giving bids. (Ord. No. 962, § 2, 10-28-2008)
2.42.160 Surplus supplies and equipment.
All departments shall submit to the purchasing agent, at such time and in such forms as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have authority to sell or exchange for or trade in on new supplies and equipment which cannot be used by any agency or which have become unsuitable for City use. (Ord. No. 962, § 2, 10-28-2008)
2.42.170 Requirements for public projects.
Awarding contracts for public projects shall be in accordance with the Uniform Public Construction Cost Accounting Act, Public Contract Code Sections 22000 et seq., or any successor provision thereto.
A. Informal Bidding.
1. Public projects of one hundred twenty-five thousand dollars ($125,000.00) 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.
2. Informal bidding shall be governed by the uniform construction cost accounting procedures set forth in Public Contract Code Section 22030 et seq., or any successor provision thereto.
3. Contractors shall be selected to perform public projects in accordance with the provisions of Public Contract Code Section 22034(a) through (f).
a. The City shall maintain a bidder’s list. Not less than ten (10) calendar days before bids will be due, the City will mail notices inviting informal bids to all contractors on the bidder’s list and/or all trade journals specified pursuant to Public Contract Code Section 22034(b). 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. 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.
b. Nothing herein shall prevent the city from rejecting any or all bids as permitted by law.
4. The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and shall state the time and place for the submission of bids.
5. If all bids received are in excess of one hundred twenty-five thousand dollars ($125,000.00), the City Council may, by adoption of a resolution by four-fifths vote, award the contract, at one hundred thirty-seven thousand five hundred dollars ($137,500.00) or less, to the lowest responsible bidder, if it determines the cost estimate of the City was reasonable.
B. Formal Bidding. Bidding on all other public projects not governed by the provisions of paragraph A. above, shall be in accordance with the procedures set forth in Public Contract Code Section 22037 et seq.
1. The purchasing agent shall authorize issuance of notices inviting formal bids which shall include a general description of the public project to be constructed, shall state where bid forms and specifications may be secured, and the time and place for opening bids.
2. Notices inviting bids published and posted at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation as provided for in California Public Contract Code Section 22037.
3. The purchasing agent may require a bid to include prices for items that may be added to, or deducted from, the scope of work in the contract for which the bid is being submitted. Whenever additive or deductive items are included in a bid, the bid solicitation shall specify which one of the following methods will be used to determine the lowest bid. In the absence of a specification, only the method provided by subsection A.3.a. of this section will be used.
a. The lowest bid shall be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items.
b. The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price.
c. The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the city before the first bid is opened.
d. The lowest bid shall be determined in a manner that prevents any information that would identify any of the bidders or proposed subcontractors or suppliers from being revealed to the public entity before the ranking of all bidders from lowest to highest has been determined.
4. A responsible bidder who submitted the lowest bid as determined by this section shall be awarded the contract, if it is awarded. This section does not preclude the City from adding to or deducting from the contract any of the additive or deductive items after the lowest responsible bidder has been determined.
5. Nothing in this Section shall preclude the prequalification of general contractors or subcontractors.
6. The purchasing agent shall also solicit sealed bids from all responsible prospective bidders whose names are on the bidders’ list or who have made written request that their names be added thereto.
7. The purchasing agent I shall also advertise bids by a notice posted at a publicly accessible location at City offices. Such posting places can include, but shall not be limited to, electronically accessible locations such as the city’s web site or by other means that reasonably allow prospective bidders to be notified of pending purchases. (Ord. No. 962, § 2, 10-28-2008)
2.42.180 Waiver of irregularity, rejection of bids, failure to receive bids, options on public projects.
A. At its discretion, the purchasing agent may waive any irregularity in any bid received and award the contract.
B. At its discretion, the purchasing agent may reject all bids presented. If the purchasing agent, prior to rejecting all bids, declares that the project can be more economically performed by City employees and furnishes a written notice to an apparent low bidder mailed at least two (2) business days prior to the hearing at which the City intends to reject the bid, the purchasing agent may:
1. Abandon the project or readvertise for bids.
2. Declare that the project can be performed more economically by City employees, and order the project done by force account.
C. If no bids are received, the project may be performed by the city employees by force account or by negotiated contract entered into without need for further bidding. (Ord. No. 962, § 2, 10-28-2008)
2.42.190 Lowest responsible bidder determination.
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 and efficiency demonstrated in previous contracts or services for the City or other contracting parties;
C. The quality of performance demonstrated in previous contracts or services for the City or other contracting parties;
D. The previous and existing compliance by the bidder with the laws and ordinances relating to a contract or service;
E. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
F. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract. (Ord. No. 962, § 2, 10-28-2008)
2.42.200 Change orders.
The purchasing agent is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts authorized in this ordinance so long as the combined amounts are within the approved project budget. (Ord. No. 962, § 2, 10-28-2008)
2.42.210 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 Uniform Construction Cost Accounting Act or this Chapter. (Ord. No. 962, § 2, 10-28-2008)
2.42.220 Affirmative action—Penalty for noncompliance.
Any contractor who is found by a court of competent jurisdiction or by a federal or state agency empowered to make such findings to be in substantial or material violation of the Fair Employment Practices Act of the state, or of similar federal law or executive order in the performance of a contract with the City, thereby shall be found in material breach of such contract; and thereupon the city shall have power to cancel or suspend the contract, in whole or in part, or to deduct from the amount payable to such contractor a sum as specified by purchasing policy for each person for each working day during which such person was discriminated against, as damages for such breach of contract, or both. (Ord. No. 962, § 2, 10-28-2008)