Chapter 3.08
PROCUREMENT
Sections:
3.08.050 Procurement procedure.
3.08.070 State funded projects.
3.08.080 Federally funded projects.
3.08.090 Debarment and suspension.
3.08.100 Additional requirements for transportation specific projects.
3.08.010 Purpose and scope.
In order to ensure that the city obtains the most suitable services and commodities at the best price, while providing internal control over expenditures of city resources, the city establishes a clear and efficient policy for acquiring supplies, services, and equipment. The purpose of this policy is to promote efficiency, ensure reliable financial accounting and assure compliance with local, state, and federal laws and regulations.
This policy applies to every city employee. Project managers have an additional responsibility to ensure that all procurements under his or her project, program, or department conform with this chapter. (Ord. 737 (part), 2012).
3.08.020 Definitions.
“Bidder” or “vendor” means a person, business or organization who submits a bid to the city in an effort to win a contract with the city to supply goods or services.
“Procurement” means the process of purchasing, acquiring or procuring goods or services.
“Project manager” means the city employee overseeing the project, program, or department seeking the procurement. In situations where there is not a clear project manager, the “finance director,” as defined in Chapter 2.18, shall be deemed the project manager for procurement purposes.
“Solicitation” means the notice or solicitation of bids from the city to potential vendors for the procurement of supplies, services, or equipment. (Ord. 737 (part), 2012).
3.08.030 Procurement policy.
The city’s procurement policy for purchasing and procuring services, equipment, and commodities may be established by resolution by the city council. The city council may from time to time update the procurement policy by resolution. The city’s current procurement policy, established by resolution, is incorporated by reference into the municipal code. (Ord. 737 (part), 2012).
3.08.040 Code of conduct.
The city’s procurement policy shall include a code of conduct (“code of conduct”) that will apply to every city employee involved in procurement. This code of conduct will require every employee involved in procurement to review the procurement policy and sign a “conflict of interest statement.” Employees who violate the procurement policy’s code of conduct shall be subject to penalties, sanctions or other disciplinary measures as permitted by state and federal law and the city’s employment policies. (Ord. 737 (part), 2012).
3.08.050 Procurement procedure.
For all city procurements, the project manager will follow the guidelines set forth in the city’s adopted procurement policy. The procedure will include:
A. Cost Estimate. At the onset of any procurement, the project manager will prepare a cost estimate of the goods or services sought, in accordance with the city’s procurement policy.
B. Selecting Method of Procurement. Based on the cost estimate, the city manager will select the appropriate method of procurement as follows:
1. Under five hundred dollars: Course of normal business procurement.
2. Between five hundred dollars to twenty-five thousand dollars: Informal quotes.
3. Between twenty-five thousand dollars to one hundred thousand dollars: Informal bid process.
4. Over one hundred thousand dollars: Formal bid process.
C. Course of Normal Business Procurement. For procurements under five hundred dollars, the project manager may purchase the good or service with permission from the department head. The project manager will submit for every purchase an invoice that will be kept on file.
D. Informal Quotes. The project manager will submit a request for purchase order form and obtain approval from the department head for every informal quote procurement. The project manager will obtain at least three verbal quotes from vendors and select the lowest acceptable quote.
E. Informal Bid Process. The project manager shall prepare a solicitation, in accordance to the solicitation guidelines in the procurement policy, inviting informal bids that shall be sent to all participants on the city’s contractor’s lists or vendor’s lists for the good or service to be acquired, and to all applicable construction trade journals. If the service can only be obtained from certain contractors or vendors, the solicitation may be sent exclusively to those entities.
The project manager will log each bid received. At the end of the period for accepting bids, the project manager shall provide the city manager with a record of all bids received, the original cost estimate, and the project manager’s analysis of the responsiveness of each bid. The city manager will select the lowest responsive bid or provide a written explanation for not choosing the lowest bid. The project manager is responsible for ensuring that all contracts entered into by the city comply with state and federal law.
F. Formal Bid Process.
1. The project manager will prepare a solicitation inviting sealed bids. The project manager will send the solicitation to the city clerk for publication and to all applicable vendors. If the procurement is for a public works project, the project manager will publish the solicitation in a local newspaper as required by state law.
2. The project manager will log and keep on file every bid received in response to a solicitation.
3. The project manager will evaluate each bid to ensure that it is responsive to the solicitation and that the bidder is responsible, in accordance with the guidelines set forth in the city’s procurement policy.
4. The project manager will examine all bids received and perform a bid cost analysis in accordance with the procurement policy.
5. At the end of the solicitation period, all responsive bids from responsible bidders shall be read aloud at a regular city council meeting.
6. After reviewing the bids and the project manager’s cost analysis, the city council will select a bidder to receive the contract.
G. Professional Services. There is no bidding requirement for procurement of professional services as defined under Government Code Section 4525, as may be changed from time to time. A professional service agreement must be submitted to the city council for approval and must provide sufficient background analysis to support the recommendation. After a professional is selected, the city will follow the guidelines in the Public Contract Code Section 6106, as may be changed from time to time, to negotiate the services.
H. Exceptions.
1. Blanket Order Exception. If a project receives a blanket or open purchase order for spending on certain goods or services, the project manager may procure those goods and services without being bound by the methods of procurement provided in this chapter. The project manager must still obtain approval from the department head, submit invoices, and comply with the conflict of interest requirements of this section.
2. Formal Bidding Exceptions. Unless federal or state law so requires, the following shall not require the formal bidding process described in this chapter:
a. The merchandise or service is unique because of its quality, durability, availability, or fitness for a particular use.
b. The merchandise or service is available from only one source.
c. The city manager determines that critical circumstances require the immediate purchase of the merchandise or service.
d. The merchandise or service is provided by an independent contractor who has a preexisting contract with the city to provide labor and materials for other than a public works project.
Even if formal bidding is not required, the city council must formally authorize every procurement for more than one hundred thousand dollars.
I. Solicitation Contents. Solicitations will include bid forms with specifications about the procurement and a request for proposal. All solicitations will be formatted in accordance with the city’s procurement policy and shall contain the information required therein. (Ord. 737 (part), 2012).
3.08.060 Public projects.
Expenditures for public projects shall be contracted in accordance with Public Contracts Code Section 22000 et seq., as may be changed from time to time. (Ord. 737 (part), 2012).
3.08.070 State funded projects.
Any purchase that is related to a project that has received funding from the state sources shall be deemed as a state funded purchase and shall receive the additional scrutiny or policy measures necessary to comply with all relevant state laws or regulations. (Ord. 737 (part), 2012).
3.08.080 Federally funded projects.
Any purchase that is related to a project that has received funding from the federal sources shall be deemed as a federally funded purchase and shall receive the additional scrutiny or policy measures necessary to comply with the Federal Acquisition Regulation, American Recovery Reinvestment Act (“ARRA”), regulations and procedures of relevant agencies, and other federal law. When necessary to ensure compliance, the project manager will include the needed provisions in its contracts with vendors. (Ord. 737 (part), 2012).
3.08.090 Debarment and suspension.
For state and federally funded projects, the city shall require every bidder to submit a debarment and suspension certification form pursuant to Title 49, Code of Federal Regulations, Part 29. The project manager shall search for each bidder on the excluded parties list system (“EPLS”) in the “listing of parties excluded from federal procurement and nonprocurement programs” available at http://epls.arnet.gov to make sure that the bidder is not suspended or debarred from receiving federal funds. Any bidders who appear on the list as suspended or debarred shall not be eligible to receive the contract. The project manager will retain a dated copy of each search for every bidder who submits a bid. Additionally, once a bid is selected, the project manager shall file a copy of the dated search on the EPLS website for the successful bidder in the project file. (Ord. 737 (part), 2012).
3.08.100 Additional requirements for transportation specific projects.
When the procurement is related to a federal or state funded transportation project, in addition to complying with the city’s procurement policy, the project manager will adhere to the procedures set forth in the Local Assistance Procedures Manual (the “Manual”) prepared by the California Department of Transportation. (Ord. 737 (part), 2012).