Alhambra Municipal Code Ch. 3.36 Purchasing of Supplies and Equipment

Section

Cross-reference:

For provisions concerning executive and administrative departments, see Charter § 28 et seq.

Statutory reference:

For provisions concerning authority of cities to adopt their own policies and regulations, including bidding regulations, not in conflict with the general law, for the purchase of supplies and equipment, see Cal. Gov’t Code §§ 54201 et seq.

For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

AGENCY and USING AGENCY. Any department, agency, commission, bureau or other unit of the city government, which derives its support wholly or in part from the city.

BIDDERS' LIST. A current file of sources of supply of articles for each category of commodities repetitively purchased for city use.

BIDDER'S SECURITY. In connection with any sealed bid process required by this chapter, each bid shall be accompanied by a bond, cashier's check or cash in an amount of not less than 10% of total amount bid.

CITY MANAGER. The city's City Manager and his or her designee.

DIRECTOR OF FINANCE. The city's Finance Director and his or her designee.

PUBLIC PROJECTS. Shall have the same definition as set forth in § 135 of the City Charter (a project for the erection, improvement or repair of public buildings or works; for street, sewer or water work except maintenance or repairs; or for the furnishing of supplies or materials for any such project, including the maintenance or repair of streets, sewers or water works).

PURCHASES. Purchases of supplies and equipment shall include leases or rentals as well as transactions by which the city acquires ownership.

RESPONSIBLE BID. An offer, submitted by a responsible bidder, to furnish supplies and equipment or services in conformity with the specifications, delivery terms and conditions, and other requirements included in the notice inviting bids.

RESPONSIBLE BIDDER.

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

(2) A determination as to whether or not a bidder is a RESPONSIBLE BIDDER shall include an evaluation of relevant factors, including, but not limited to, the following factors:

(a) The ability, capacity and skill of the bidder to perform the contract or provide the maintenance and service required;

(b) Whether the bidder has the facilities to perform the contract promptly, or within the time specified, without delay or interference;

(c) The character, integrity, reputation, judgment, experience and efficiency of the bidder;

(d) The bidder's record of performance of previous contracts, or provision of maintenance and service thereunder;

(e) The previous and existing compliance by the bidder with laws and ordinances relating to the contract, or the furnishing of maintenance and service thereunder;

(f) The sufficiency of the financial resources and ability of the bidder to perform the contract;

(g) The quality, availability and adaptability of the supplies and equipment to the particular use required;

(h) The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

(i) The number and scope of exceptions and conditions attached to the bid.

SUPPLIES and EQUIPMENT. Any and all articles, things or personal property furnished to or used by any agency.

(‘86 Code, § 3.36.010) (Ord. 3507, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies 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 hereby adopted.

(‘86 Code, § 3.36.020) (Ord. 3507, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

There is hereby created a centralized stores department in which is vested authority for the purchase and storage of supplies and equipment to be issued to using departments upon request.

(‘86 Code, § 3.36.030) (Ord. 3507, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

The Director of Finance shall be the head and have general supervision of the purchasing function. The Director of Finance shall:

(A) Ensure the purchase or contract for supplies and equipment by any using agency is in accordance with purchasing procedures prescribed by this chapter, policies and procedures the Director of Finance shall adopt for the internal management and operation of the purchasing function, and such other rules and regulations as shall be prescribed by the City Council or the City Manager.

(B) Ensure the city acts to procure the needed quality in supplies and equipment at least expense to the city.

(C) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

(D) Prepare and recommend to the City Council rules governing the purchase of supplies and equipment for the city.

(E) Prepare and recommend to the City Council revisions and amendments to the purchasing rules.

(F) Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations.

(G) Approve the transfer of surplus or unused supplies and equipment between departments as needed, and the sale or disposition of supplies and equipment that cannot be used by any agency or have become unsuitable for city use.

(‘86 Code, § 3.36.040) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

(‘86 Code, § 3.36.050) (Ord. 3507, passed - - ; Am. Ord. 4517, passed 2-25-08)

Except in cases of emergency or in cases where specific authority has been first obtained from the City Council, no purchase order for supplies or equipment and no contract for public works or consulting services shall be issued, unless the City Manager and the Director of Finance, or their designees, have certified that there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(‘86 Code, § 3.36.100) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

While the need for occasional emergency purchases is recognized, the practice must be curtailed as much as possible by anticipating needs so that the normal purchasing procedure utilizing bidding may be used.

(A) An emergency shall be deemed to exist if:

(1) There is a great public calamity.

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

(3) There is a breakdown in machinery or an essential service that requires the immediate purchase of supplies, equipment and/or services to protect the public health, welfare or safety.

(4) An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item or service.

(B) In case of an emergency requiring immediate purchase of supplies, equipment and/or service, the City Manager may authorize the Director of Finance, or his or her designee, to secure, by the process set forth in § 3.36.090, any supplies, equipment and/or services regardless of the amount of the expenditure; provided, however, that the City Manager shall report any such purchases that do not conform to the non-emergency purchasing requirements set forth in this code to the City Council at the next possible City Council meeting.

(‘86 Code, § 3.36.150) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4593, passed 2-13-12; Am. Ord. 4745, passed 5-14-18; Am. Ord. 4837, passed 9-9-24)

(A) The table below sets forth the required methods for purchasing of supplies and equipment, as well as contracting for public projects. (Contracting for consultants and professional services is addressed in Chapter 3.38.)

(B) Notwithstanding the table in division (A), the purchase method for the purchase of supplies or equipment may be dispensed with under the following circumstances:

(1) An emergency, as described in § 3.36.070, requires that an order be placed immediately to protect the public health, safety or welfare; or

(2) The supply or equipment can only be obtained from one source ("sole source"); or

(3) The supply or equipment is available through or in conjunction with another public agency's purchase of such supply or equipment, and the other public entity has gone through a bidding process the City Manager determines is comparable to the processes described above ("piggybacking").

(C) Notwithstanding the table set forth in division (A), the purchase method for public projects may be dispensed with under the following circumstances:

(1) An emergency, as described in § 3.36.070, requires that the project or service be undertaken immediately; or

(2) The project can only be performed by or the service can only be rendered by one vendor; or

(3) If, after rejecting bids for a public project, the Council makes any of the determinations set forth in § 135 of the City Charter.

(D) The agreement format required by the table in division (A) shall be required for any purchase pursuant to divisions (B) or (C).

(E) At its discretion, except where it would conflict with state or federal laws or regulations, the City Council may at any time, by a majority vote and without amending this chapter, waive the purchasing procedures or alter these proceedings to fit a specific purchase.

(Ord. 4517, passed 2-25-08; Am. Ord. 4593, passed 2-13-12; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24; Am. Ord. 4845, passed 4-28-25)

(A) Minimum number of bids. Wherever possible, purchases utilizing verbal and written quotations shall be based on at least three bids, and shall be awarded to the lowest responsible bidder.

(B) Solicitation of bids. The Director of Finance shall obtain quotations as follows:

(1) Non-written bids can be by telephone, internet search, or other methods provided the amount of the purchase is over $7,000, but less than $25,000; and

(2) In writing, provided the amount of the purchase is $25,000 or more, but not more than $75,000.

(C) Written bids. All bids received pursuant to this section shall be submitted to the Director of Finance, who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. While so kept, this record shall be open to public inspection.

(D) Alternate procedures for public projects. Notwithstanding § 3.36.080, for any public project of $75,000 or less, the City Manager shall have discretion to utilize the procedures described in this section or those described in § 3.36.110.

(‘86 Code, § 3.36.120) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Ord. 4014, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24; Am. Ord. 4845, passed 4-28-25)

Except where it would conflict with state or federal regulations, for the purpose of determining the lowest responsible bidder as required by §§ 3.36.090 and 3.36.110, 1% of that portion of any bid subject to sales or use tax shall be deducted from such bid where it is determined that, if such bid were accepted by the city as the lowest responsible bid received, the city would receive a refund of the 1% sales and use tax imposed by Chapter 3.08 of this code.

(‘86 Code, § 3.36.125) (Ord. 3760, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)

Purchases of supplies and equipment of an estimated value greater than $75,000 shall be by written contract with the lowest responsible bidder pursuant to the procedure hereinafter prescribed.

(A) Notice inviting bids. Notices inviting bids shall be advertised by the City Clerk, and shall include a general description of the articles to be purchased, state where bid forms and specifications may be secured, and the time and place for opening bids.

(1) Published notice. The City Clerk shall cause notices inviting bids to be published once in a newspaper of general circulation five days before the date of opening of the bids, or posted for five days in three public places in the city designated by the City Council.

(2) Bidders' list. The Director of Finance, or his or her designee, shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list, or who have made written request that their names be added thereto.

(B) Bidder's security.

(1) Unless otherwise provided by the City Manager prior to the letting of public notice inviting bids, each bid shall be accompanied by bidder's security.

(2) 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 the contract within ten days after the preparation and mailing of the contract, unless in the latter event the city is solely responsible for the delay in executing the contract. On refusal or failure of the successful bidder to execute the contract, the City Council may award it to the next lowest responsible bidder. In such event, if the City Council awards the contract to the next lowest 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.

(C) Bid opening procedure. Sealed bids shall be submitted to the city and shall be identified as "BID" on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. Once opened, the bids shall be public records. Notwithstanding the foregoing, any bid deemed non-responsive at the time of bid opening shall not be kept by the city, and once deemed non-responsive, shall be returned to the bidder. Grounds for determining a bid is non-responsive include, but are not limited to, failure to provide the required bid bond and failure to attend any mandatory walk through or prebid meeting.

(D) Rejection of bids. At its discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure hereinabove prescribed.

(E) Award of contracts. Except as otherwise provided herein, contracts shall be awarded by the City Council to the lowest responsible bidder.

(F) Tie bids. If two 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 or readvertising for bids, the City Council, at its discretion, may accept the one it chooses.

(G) Performance bonds. The City Manager shall have the authority to require a performance bond or materials and labor bond or bonds before entering a contract in such amounts as he or she shall find reasonably necessary to protect the best interests of the city. If the City Manager requires such bond or bonds, the form and amount of same shall be described in the notice inviting bids.

(‘86 Code, § 3.36.110) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Am. Ord. 4014, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9- 24; Am. Ord. 4845, passed 4-28-25)

All using agencies shall submit to the Director of Finance, at such times and in such forms as he or she shall prescribe, reports showing all supplies and equipment that are no longer used or have become obsolete or worn out. The Director of Finance shall have authority to sell, exchange for, or trade in on new supplies and equipment, all supplies and equipment that cannot be used by any agency or have become unsuitable for city use.

(‘86 Code, § 3.36.140) (Ord. 3507, passed - - ; Am. Ord. 3723, passed - - ; Am. Ord. 4517, passed 2-25-08; Am. Ord. 4745, passed 10-22-18; Am. Ord. 4837, passed 9-9-24)