CHAPTER 6
PURCHASING AND CONTRACTING
3.6.002 Adoption of a Purchasing System.
A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, services and equipment to secure for the City supplies, services and equipment at the lowest possible cost commensurate with the level of quality required, to exercise financial control over purchases, and to clearly define authority for the purchasing function.
3.6.004 Purchasing Agent Designated; City Manager Authorized to Sign Contracts.
a. The Finance Director is designated as Purchasing Agent. The Purchasing Agent may delegate all or a portion of the purchasing duties to any City staff member. The Purchasing Agent shall have the authority to:
1) Purchase or contract for supplies, services and equipment required by the City, in accordance with purchasing procedures outlined in this chapter;
2) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;
3) Act to procure for the City the necessary quality in supplies, services and equipment at the lowest cost to the City;
4) Prepare and recommend to the City Council revisions and amendments to the purchasing rules;
5) Establish and maintain such forms as reasonably necessary to the operation of purchasing guidelines;
6) Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications;
7) Recommend the sale or disposal of all supplies and equipment which cannot be used by the City, or which have become unsuitable for City use;
8) Maintain a bidder’s list and other records necessary for the efficient acquisition of goods and services.
b. The City Manager (or his/her designee) is hereby authorized to sign all contracts for the purchase of goods or services awarded pursuant to this chapter or separately approved by the City Council.
3.6.006 Purchases By City Council – Competitive Bidding.
When the amount or value involved is at least $50,000 and the purchase does not qualify as an exception to competitive bidding requirements per Section 3.6.010 or 3.6.028, the purchase shall be made by the City Council through competitive bid as outlined below:
a. Notice inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid blanks and specifications may be obtained, the time and place for bid openings, and whether bid deposit or bond and faithful performance bond will be required.
b. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder’s list and may advertise the notice inviting bids in applicable publications.
c. When deemed necessary by the Purchasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Purchasing Agent or City Council. A successful bidder (and the bidder’s surety, if a bond is furnished) shall be liable for any damages upon the bidder’s failure to enter into a contract with the City or upon the failure to perform in accordance with the tenor of his/her bid.
d. When deemed necessary by the Purchasing Agent or City Council, any person or entity entering into a contract with the City may be required to furnish a faithful performance deposit or bond in an amount determined by the Purchasing Agent or Council.
e. 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 (30) calendar days after the bid opening.
f. At its discretion, the City Council may reject all bids presented and re-advertise for bids.
g. Contracts shall be awarded by the City Council to the lowest responsible bidder, except as otherwise provided herein.
h. If two or more bids received from responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the City Council may accept the lowest bid made by negotiation with the tie bidders and the Purchasing Agent at the time of the bid opening.
(Sec. 1, Ordinance No. 14-20, adopted September 8, 2020)
3.6.008 Purchasing Award – Factors to be Considered.
Purchases shall be awarded after consideration of the following factors:
a. The amount of the bid price. In determining the lowest bid, 5% of the amount of the total bid or of the base bid and each alternate shall be deducted if a bidder’s principal place of business is located within the City of Oakley or the City’s Sphere of Influence, as defined in the City’s General Plan;
b. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
c. The ability of the bidder to perform the contract or provide the service promptly or within the time specified, without delay or interface;
d. The reputation and experience of the bidder;
e. The previous experience of the City with the bidder;
f. The previous existing compliance by the bidder with federal, state, and local laws and ordinances;
g. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;
h. The quality, availability, and adaptability of the supplies or contractual services to the particular use required;
i. The ability of the bidder to provide future maintenance and service of the use of the subject of the contract;
j. The number and scope of conditions attached to the bid.
3.6.010 Exception to Competitive Bidding Requirements.
a. The provisions of this chapter requiring competitive bidding shall not apply to the following:
1) Contracts involving the acquisition of professional or specialized services, such as, but not limited to, services rendered by architects, attorneys, engineers, and other specialized consultants;
2) When the City’s requirements can be met solely by a single patented article or process;
3) When no bids have been received following bid announcements under other provisions of this chapter;
4) When the amount involved is less than $50,000;
5) When an emergency requires that an order be placed with the nearest source of supply as set forth in Section 2.5.024;
6) When a purchase involves goods of a technical nature, and it would be difficult for a vendor to bid on a standard set of specifications, the Purchasing Agent shall undertake a thorough review of known products and a comparison of features which would most closely meet the City’s needs at the least cost;
7) For janitorial services for City buildings and facilities;
8) For maintenance and repair of buildings and facilities;
9) For maintenance and repair of public streets, including street sweeping;
10) When another public agency has administered a competitive bidding process within the past two years for the same or substantially similar supplies, services or equipment;
11) When the City Council specifically waives the competitive bid process and authorizes staff to negotiate the purchase of vehicles by a four-fifths vote.
b. When the procurement falls into any of the categories listed above, and the amount does not exceed $50,000, the Purchasing Agent may authorize the use of the other purchasing procedures set forth in this chapter, depending on the value of the goods or services. When the procurement falls into one of the categories listed above, and the amount exceeds $50,000, procurement without competitive bidding must be authorized by the City Council by simple majority, except as otherwise provided above.
c. Any request for an exception under this section shall include the nature of the contract, amount of the contract, and the reasons why competitive bidding is not feasible.
(Sec. 2, Ordinance No. 14-20, adopted September 8, 2020; Sec. 2, Ordinance No. 04-18, adopted March 27, 2018)
3.6.012 Purchases Between $10,000 and $50,000 – Procedure.
If the amount or value involved in a purchase is $10,000 or more, but less than $50,000, the Purchasing Agent may make the purchase, without written bid, by informal price checking through telephone or mail inquiry, comparison of prices on file or otherwise. Every attempt shall be made to receive at least three price quotations. At the discretion of the Purchasing Agent, the acquisition of goods and services the value of which is at least $10,000, but less than $50,000, the formal competitive bid process may be used.
(Sec. 3, Ordinance No. 14-20, adopted September 8, 2020)
3.6.014 Purchases Between $201 and $10,000 – Procedure.
If the amount or value involved in a purchase is at least $201, but less than $10,000, the Purchasing Agent may make the purchase, without written bid, by using purchase orders or by direct purchase. The Purchasing Agent may attempt to obtain two price quotations.
(Sec. 4, Ordinance No. 14-20, adopted September 8, 2020)
3.6.016 Purchases Up To $200 – Procedure.
If the amount or value involved in a purchase is $200 or less, the Purchasing Agent may make the purchase, without written bid, by using direct purchase, including by using available petty cash.
(Sec. 5, Ordinance No. 14-20, adopted September 8, 2020)
3.6.018 Purchase Orders.
All purchases over $10,000 shall be documented by a purchase order prepared by the Purchasing Agent. The original copy shall be directed to the vendor and one copy shall be retained for the purchase order file. The final copy shall be directed to the department for whose benefit the purchase is being made to be used as a receiving report.
(Sec. 6, Ordinance No. 14-20, adopted September 8, 2020)
3.6.020 Availability of Sufficient Funds.
No purchase order shall be issued until it has been ascertained that there is to the credit of the department of the City for whose benefit such purchase is to be made a sufficient unappropriated balance in excess of all unpaid obligations to defray the amount of such order.
3.6.022 Inspect and Review.
The Purchasing Agent shall require the inspection of supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications and requirements set forth in the order or contract.
3.6.024 Surplus Supplies and Equipment.
At such times as determined by the Purchasing Agent, reports shall be prepared showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Agent shall have the authority to sell, trade or exchange all said supplies and equipment. The manner of disposing of surplus property shall be consistent with the procedures for purchases set forth in this chapter, depending on the value of the property.
3.6.026 Splitting Orders Prohibited.
It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this chapter.
3.6.028 Exceptions – Public Projects.
This chapter is expressly made inapplicable to bids for public projects, as provided in Chapter 3.7, or as defined by Public Contract Code Section 20161 and where the expenditure required for the public project exceeds the limit set by Public Contract Code Section 20162. The provisions contained in Chapter 3.7 or Public Contract Code Section 20161 et seq. establish contract procedures the City shall follow regarding public projects.
(Sec. 7, Ordinance No. 14-20, adopted September 8, 2020)
3.6.030 Exceptions – Contracting for Emergency Cleanup of Hazardous Materials.
When, in the discretion of the Public Works Director/City Engineer or his or her designee, it is determined that a hazardous spill has occurred and that immediate cleanup is required to prevent the spill from entering the City storm drain system or any watercourse, the City Manager, or his or her designee, may contract for the clean up of the spill. Any such contract in the amount of $5,000 or less may be entered into on behalf of the City by the City Manager, or his or her designee, without prior City Council approval; however, no such contract exceeding $5,000 in amount shall be executed without prior approval of the City Council.
3.6.032 Protest Procedure.
After the award of any contract, any unsuccessful bidder may challenge the bid procedure by filing a written protest with the City Manager. The protest must set forth the reasons for the challenge and must be filed within 10 days of the award of the contract. The City Manager shall review the protest and provide a written reply in an expeditious manner. The decision of the awarding authority with respect to the protest shall be final. Failure to file a timely protest shall be deemed a waiver of any challenge to the procedure or award of contract.
3.6.034 Adoption of Administrative Policies.
The City Manager may adopt and amend administrative policies and procedures for the purpose of implementing the provisions of this chapter.