American Canyon Municipal Code Ch. 3.12 Purchasing System

In order to establish efficient procedures for the purchase of

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 adopted. Approval thresholds delineated for purchases of supplies and equipment and services are as specified on Chart A as shown at the end of this chapter, in accordance with the fiscal policy adopted by the city council on April 19, 2007.

Ord. 2007-05, 2007

Previously codified as 3.12.010

There is created a centralized purchasing division in which is

vested authority for the purchase of supplies and equipment.

Previously codified as 3.12.020

There is created the position of purchasing agent, who may also be known as the

"purchasing officer." He or she shall be appointed by the director of finance and general services subject to the approval of the city manager. The purchasing agent shall be the head and have general supervision of the purchasing division. The duties of purchasing agent may be combined with those of any other office or position. The purchasing agent shall have the authority to:

(A) Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed in this chapter, such administrative regulations as the purchasing agent shall adopt for the internal management and operation of the purchasing division and such other rules and regulations as shall be prescribed by the council or the city manager;

(B) Negotiate and recommend execution of contracts for the purchase of supplies and equipment;

(C) Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

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

(E) Prepare and recommend to the council rules governing the purchase of supplies and equipment for the city;

(F) Prepare and recommend revisions and amendments to the purchasing rules;

(G) Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

(H) Prescribe and maintain such forms as are reasonably necessary for the operation of this chapter and other rules and regulations;

(I) Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications;

(J) Recommend the transfer of surplus or unused supplies and equipment between departments as needed;

(K) Maintain an approved vendors list, vendors' catalogue file and records needed for the efficient operation of the purchasing division.

Previously codified as 3.12.030

The purchasing agent shall be responsible for determining that the

regulations and procedures in Sections 3.12.050 through 3.12.110 are carried out.

Previously codified as 3.12.040

The city manager may authorize, in writing, any

department to purchase specified supplies and equipment independently of the purchasing division; but he or she shall require that such purchases shall be made in conformity with the procedures established by this chapter and shall further require periodic reports from the department on the purchases made under such written authorization.

Previously codified as 3.12.050

All using departments shall file detailed estimates of their

requirements in supplies and equipment in such manner, at such time, and for such future periods as the purchasing agent shall prescribe.

Previously codified as 3.12.060

Using departments shall submit requests for supplies and equipment to the

purchasing agent by standard requisition forms, or by other means as may be established by the purchasing rules and regulations.

Previously codified as 3.12.070

Purchases of supplies and equipment shall be made only by purchase orders.

Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the purchasing agent or his designated representative has been obtained.

Previously codified as 3.12.080

Except in cases of emergency, the purchasing agent shall not issue any

purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

Previously codified as 3.12.090

The purchasing agent shall, in his discretion, inspect supplies and

equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing agent shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

Previously codified as 3.12.100

Purchases of supplies and equipment shall be by bid procedures pursuant to Sections

3.12.120 through 3.12.260. Bidding may be dispensed with only under conditions stated in Section 3.12.270.

Previously codified as 3.12.110

Except as otherwise provided in this chapter, public projects, as

defined in Section 20161 of the Public Contracts Code, and purchases of supplies and equipment of an estimated value greater than the threshold amount listed on Chart A at the end of this chapter shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure as hereinafter prescribed.

Ord. 2007-05, 2007

Ord. 94-01 § 4, 1994

Previously codified as 3.12.120

Notices inviting formal bids shall include a general description of the

article or service desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids.

Previously codified as 3.12.130

Notices inviting formal bids shall be published at least ten days

prior to the date of opening of the bids. Notices shall be published at least once for non-public projects at least twice, not less than five days apart for public projects, in a newspaper of general circulation in the city.

Previously codified as 3.12.140

The purchasing agent shall also solicit formal sealed bids from responsible

suppliers whose names are on the approved vendors list, or who have made written request that their names be added thereto.

Previously codified as 3.12.150

The purchasing agent shall advertise the pending formal purchases by

posting a notice on the public bulletin board at the city offices.

Previously codified as 3.12.160

(A) When a public project is involved, and in other cases when deemed necessary by the purchasing agent, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his security upon his refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is solely responsible for the delay in executing the contract.

(B) The council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and readvertise.

Previously codified as 3.12.170

A faithful performance bond and labor and material bond shall

be required for all public projects, unless waived by the council, in an amount reasonably necessary to protect the best interests of the city. In addition, the council shall have authority to require a faithful performance bond or other bonds before entering into a contract other than a public project contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

Previously codified as 3.12.175

Sealed bids shall be submitted to the purchasing agent and shall

be identified as "bids" on the envelope. The purchasing officer, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than thirty calendar days after the bid opening.

Previously codified as 3.12.180

In its discretion, the council may reject any and all bids presented and

may cause readvertising for bids pursuant to the procedure prescribed in this chapter. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed in this chapter.

Previously codified as 3.12.190

Except as otherwise provided in this chapter, formal bid contracts

shall be awarded by the council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the council pursuant to findings and recommendations presented by the purchasing agent at the time of award of contract.

Previously codified as 3.12.200

If two or more formal 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 of readvertising for bids, the council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract.

Previously codified as 3.12.210

When no formal bids or no responsive bids are received, the purchasing officer is

authorized to negotiate for written proposals, and his recommendation shall be represented to the city manager and award, if any, shall be made in accordance with applicable provisions prescribed in this chapter.

Previously codified as 3.12.215

Purchases of supplies and equipment of an estimated

value of less than the amount as specified on Chart A at the end of this chapter may be made by the purchasing agent in the open market pursuant to the procedure prescribed.

Ord. 2007-05, 2007

Previously codified as 3.12.230

Open market purchases shall, wherever possible, be based

on at least three informal bids, and shall be awarded to the bidder offering the most advantageous bid to the city after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors.

Previously codified as 3.12.240

The purchasing agent shall solicit informal bids by written requests

to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the city offices.

Previously codified as 3.12.250

The purchasing agent shall keep a written record of all open market

purchases and informal bids for a period of one year. This record, while so kept, shall be open to public inspection.

Previously codified as 3.12.260

Notwithstanding any provision of this chapter

to the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following instances:

(A) When the estimated amount involved is less than two thousand five hundred dollars;

(B) When the commodity can be obtained from only one vendor,

(C) The city manager may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. All emergency purchases, which would otherwise require formal bidding procedures, made pursuant to this section shall be submitted to the council for ratification at the next regular council meeting after the purchase is authorized;

(D) The council may authorize the execution of contracts for personal services, for professional and consultant services, and for other, nonpublic projects and for contractual services without observing the bidding procedures provided in this chapter where the amount of the contract exceeds the value of five thousand dollars;

(E) The city manager and department directors are authorized to enter into contracts for personal services, for professional and consulting services and for other contractual services without observing the bidding procedure provided here where the amount of the contract does not exceed the amount as specified on Chart A at the end of this chapter;

(F) Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity;

(G) The council may authorize the execution of a lease or leases for office space for the city government without observing the bidding procedures provided in this chapter irrespective of the term of the lease or leases or the amount of rent and other charges to be paid by the city under the lease or leases.

Ord. 2007-05, 2007

Previously codified as 3.12.270

The council may, by resolution, adopt a local business

preference policy which otherwise complies with the regulations of this chapter.

Ord. 2015-11 § 1, 2015

The council shall by resolution prescribe

procedures, rules and regulations governing the solicitation, selection and award of proposals or bids for the furnishing of personal services or professional or consulting services or for other contractual services, the contracts for which may be awarded without observing the bidding procedures provided for in this chapter. Such procedures, rules and regulations shall have as one purpose the obtaining of contractual services of the highest quality together with cost-effectiveness.

Previously codified as 3.12.280

All using departments shall submit to the purchasing agent, at

such times and in such forms as he or she shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete and worn out.

Previously codified as 3.12.300

The purchasing agent shall have authority to exchange for or trade

in on new supplies and equipment all supplies and equipment which cannot be used by any department or which have become unsuitable for city use.

Previously codified as 3.12.310

The purchasing agent shall also have authority, subject to approval of the

city manager, to dispose of surplus supplies or equipment by auction or by sale or otherwise after receiving bids or proposals which, in his or her judgment, provide the maximum return to the city. CHART A

APPROVAL REQUIREMENTS

PURCHASES OF SUPPLIES AND EQUIPMENT AND
SERVICES

Threshold Department City City
Head Manager Council

SUPPLIES AND EQUIPMENT

Less than $5,000

$5,000 to $25,000

(requires 3 informal proposals)

Exceeding $25,000

(requires formal proposals)

SERVICES

Less than $10,000

$10,000 to $50,000

(requires 3 informal proposals)

Exceeding $50,000

(requires 3 formal proposals)

Petty Cash Reimbursement Limit $100.00

Denotes signature approval

Denotes council authorization

Previously codified as 3.12.320