Chapter 4 — PURCHASING SYSTEM AND CONTRACTS FOR PUBLIC PROJECTS

PURCHASING SYSTEM AND CONTRACTS FOR PUBLIC PROJECTS

In order to establish efficient procedures for the purchase of supplies, and services; to secure for the City supplies, equipment and services at the lowest competitive cost commensurate with quality needed and with due consideration to disposability; to exercise positive financial control over purchases; to clearly define authority for the purchasing functions; to assure the quality of purchases; and to buy without favor or prejudice, a purchasing system is adopted and shall control the procedure for all purchases except as otherwise provided by law. (Ord. 09-745, § 2)

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

Bidders list. A current file of sources of supply of articles for each category of commodities repetitively purchased for City use.

City manager. The Chief Executive Officer of the City, appointed by the City Council. The City Manager, or designee, has the exclusive authority for specific administrative responsibility for this chapter.

Contractual services. Any and all telephone, gas, water, electric service; the rental or lease of equipment and machinery, and all similar services provided by agreements, except agreements for professional services or for public works projects.

Department. Any of the departments, offices, or other organization units of the City, and any special agency whose affairs and funds are under the supervision and control of the City Council and for which the City Council is ex-officio the governing body.

Local bidder. A firm or individual who regularly maintains a place of business and transacts business in, or maintains an inventory of merchandise for sale in, and is licensed by, or pays business taxes to the City.

Non-responsive bidder. A bidder or prospective bidder who fails to furnish a responsible bid.

Professional services. The services of attorneys, physicians, architects, engineers, consultants, auditors, specialized printers, or other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill or expertise, not adaptable to competitive bidding, or where the service involves a contract for special activities, negotiations for the acquisition of land, trash services, insurance bonds or any other service of a similar nature to the above engaged for a particular project or series of projects. Such contracts that exceed formal bidding limits must be approved by the City Manager and City Council prior to execution.

Purchases. Purchases of supplies, equipment, services and personal property shall include leases or rentals of such items as well as transactions by which the City acquires ownership.

Purchasing agent. The official designated by the City Manager for enforcement and administration of this chapter.

Purchasing policy limits. Such limits shall be those amounts which determine purchase procedures. Such purchase limits shall be established by resolution of the City Council.

Responsive bid. An offer, submitted by a responsible bidder in ink or typewritten form, to furnish supplies, materials, equipment or contractual services in conformity with the specifications, delivery terms and conditions, and other requirements included in the invitation for bids.

Services. Any and all services, including but not limited to equipment service contracts. Examples are: building roofing repairs, carpeting repairs, drapery cleaning, furniture upholstery services, specialized lighting repair services, wall papering, plumbing, and other such related repair or providing of such service labor as required.

Supplies, materials and equipment. Any and all articles or things which shall be furnished to or used by any department.

(Ord. 09-745, § 2)

• (a) Creation. There is created a centralized purchasing division within the Financial Services Department of the City, in which is vested authority for the centralized purchase of supplies, services and equipment.

• (b) Purchasing Agent. The Purchasing Agent shall be the City Manager who shall direct and manage the City's purchasing division. The Purchasing Agent shall endeavor to obtain the fullest possible benefit through open competition on all purchases and award all purchases to responsive bidders. He or she shall have the authority to purchase materials, supplies, services, equipment and other personal property required and may negotiate contracts and agreements. He or she shall furnish the City Council and/or Finance Director with such reports and information as may be required. He or she shall establish methods and procedures necessary for the efficient and economical functioning of the purchasing division.

• (Ord. 09-745, § 2)

The Purchasing Agent may, and where legally required to do so, shall authorize in writing or verbally, any department to purchase or contract for certain specified classes of supplies, materials, equipment, or services, independently of the Purchasing Agent; but such purchases or contracts shall be within the financial limits established in writing by the Purchasing Agent and shall be made in conformity with the applicable provisions of this chapter. The Purchasing Agent may also rescind such authorization to purchase independently, by written or verbal notice to the department or departments concerned, unless otherwise prohibited by law. This chapter does not apply to contracts to print legal briefs or legal notices, contracts for professional and other services or items which are in their nature unique and not subject to competition or other services for which by law another officer or body is specifically charged with obtaining. (Ord. 09-745, § 2)

All departments shall submit requests to the Purchasing Agent by standard requisition forms for the supplies, materials, equipment, and services as required for their operations and purposes and within the limits of funds appropriated therefor. The Purchasing Agent, after reviewing any such requisition, may question its propriety and may require from the head of the requesting department a justification of the quantity or quality requisitioned. Notwithstanding the foregoing, purchases for supplies, materials and services and payments and advances for incidental meeting and travel expenses may be made and paid for out of the Petty Cash Fund without a purchase order. The maximum amount for individual purchases and expenditures through the Petty Cash Fund shall be established by resolution of the City Council. (Ord. 09-745, § 2)

Purchases of supplies, materials, equipment and services shall be made only by purchase orders. Except as otherwise provided herein, no purchase order shall be issued unless the prior written approval of the Purchasing Agent or designated representative has been obtained and the purchase order has been signed by the person receiving the materials or services. (Ord. 09-745, § 2)

• (a) Public Projects. When repairs or replacements are necessary in an emergency, the City Council, by a four-fifths (4/5) vote, 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. 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. The work may be done by day labor, by contract, or by a combination of the two. If notice for bids to let contracts is not given, the City shall comply with Cal. Pub. Cont. Code Section 22050. 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 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 Section 22050.

• (b) Other Procurements. In the event of an emergency, as defined in subsection (a) of this section or great public calamity, such as an extraordinary fire, flood, storm, epidemic or other disaster, or if it becomes necessary to prepare for national or local defense, thereby giving rise to the need to procure goods and/or services not constituting a public project, without complying with this chapter, the City Council may dispense with bidding or other requirements of this chapter, and expend any sum to procure goods and/or services required due to the emergency. The City Manager is hereby delegated the authority to declare the public emergency in such circumstances when it is not feasible for the Council to meet to do so, and take such actions as he or she deems necessary, consistent with the provisions of this section; provided, however, that 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 the manner provided in subsection (a) of this section.

• (Ord. 09-745, § 2)

Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 3-4.08 through 3-4.18. Bidding shall be dispensed with only when no public work of total value in excess of the public works bidding limit is involved and one of the following conditions pertains:

• (a) The amount involved is within open market purchasing policy limits;

• (b) An essential/critical need requires that an order be placed with the nearest available source of supply due to time constraints;

• (c) The Purchasing Agent determines that the commodity can be obtained from only one vendor;

• (d) There is a break-down in essential machinery or in an essential service, or when unforeseen circumstances arise including delays by contractors, delays in transportation, and unanticipated volume of work which requires the immediate attention of a professional or immediate service/repair in order to protect the public health, safety or welfare;

• (e) An essential operation affecting the preservation of life or property, public health, safety or welfare would be greatly hampered if the prescribed procedure would cause an undue delay in the procurement of the needed services or materials; or

• (f) If, at the discretion of the Purchasing Agent, a distinct advantage is clearly in the City's best interest in regard to product uniformity and/or similar considerations.

• (Ord. 09-745, § 2)

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) Minimum Number of Bids. Purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.

• (b) Notice Inviting Informal Bids. The Purchasing Agent may solicit bids by written requests to prospective vendors, by telephone or by public notice on a public bulletin board in the Artesia City Hall or by any other means deemed effective.

• (c) Written Informal Bids. Sealed written informal bids shall be submitted to the Purchasing Agent.

• (Ord. 09-745, § 2)

All purchases of supplies, services, leases, equipment, and the sale of personal property 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. As used in this chapter, the amount involved in a lease shall be the total amount to be paid during a one year term of the lease. Exceptions to the formal bidding procedures as otherwise provided herein are stated in Sections 3-4.07 and 3¬4.21. (Ord. 09-745, § 2)

Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

• (a) Published Notice. Notices inviting bids shall be published at least 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) Bidder's List. 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. 09-745, § 2)

Sealed bids shall be submitted to the Purchasing Agent and shall be identified as "Bids" on the envelope. Bids shall be opened in public at the time and place stated in the public notice. In the case of a bid submitted by a local bidder as defined in Section 3-4.020 the Purchasing Agent shall, for the purpose of bid comparison only, reduce the amount of said bid by 1%. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. (Ord. 09-745, § 2)

When deemed necessary by the 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 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 readvertises, 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. 09-745, § 2)

• (a) At its discretion, the City Council may reject any and all bids presented and readvertise for bids.

• (b) Except as otherwise provided in this chapter, contracts shall be awarded by the City Council to the lowest responsible and responsive bidder.

• (Ord. 09-745, § 2)

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 of re-advertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

(Ord. 09-745, § 2)

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 requires a performance bond, the form and the amount of the bond shall be described in the notice giving bids. (Ord. 09-745, § 2)

Purchases of supplies, equipment, services, and sales of personal property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the county, state, or other public agencies, are exempted from the requirements of this chapter. Cal. Pub. Cont. Code Section 10324 authorizes the Department of General Services to make purchases of materials, equipment or supplies on behalf of cities in those instances when the purchases can be made by the Department of General Services upon the same terms, conditions and specifications at a purchase price lower than that which the City can obtain through its normal purchasing procedures. In those instances where it is determined that purchasing through the Department of General Services will result in savings to this City, this City is authorized to make such purchases.

(Ord. 09-745, § 2)

• (a) All departments shall submit to the Purchasing Agent at such times and in such form as he or she shall prescribe, reports showing stocks of all supplies, materials and equipment which are no longer used or which have become obsolete, worn out, no longer used, or scrapped. The Purchasing Agent shall have authority to transfer any such commodities which are usable to another or other departments in lieu of filing requisitions for the purchase of new and additional stocks of the same or similar articles.

• (b) The Purchasing Agent shall make an estimate of the value of any surplus items not usable by any City department or not required for public use. The Purchasing Agent shall have authority to sell all such supplies, materials and equipment which cannot be used by any department, or any agency or which have been found not to be required for public use; or to exchange or trade-in such articles in part or full payment for new supplies, materials or equipment of a similar nature. Any such sale, exchange or trade-in shall be made in accordance with Section 3-4.08, 3-4.09 or 3-4.10, whichever is applicable.

• (c) Such items so declared to be surplus shall be offered for sale on a competitive-bid basis. Bids may be solicited by written request, telephone, public notice posted on City bulletin boards, City website, by public auction, by advertisements in any newspaper or magazine, or by any combination of such methods. Employee bids will be considered on all publicly

  • advertised sales; however, no employee whose job responsibility includes the administration of such surplus property sales shall be permitted to bid on or purchase such surplus property.

• (d) The Purchasing Agent is authorized to sell to the highest bidder. Sale of any item or items with an estimated value in excess of the state purchasing policy limits shall be sold to the highest bidder, in accordance with the formal bid procedures, or any other means provided herein.

• (e) When, after a reasonable effort has been made to obtain bids, no bids have been obtained for any item of City-owned personal property so declared to be surplus, the Purchasing Agent is authorized to dispose of such item for the highest scrap value that can be obtained therefor, and if a reasonable effort to do so produces no opportunity to sell the same for scrap, he or she may cause its destruction or any other lawful disposition thereof.

• (Ord. 09-745, § 2)

• (a) Notwithstanding any other provision of this chapter, contracts for public projects, as defined herein, shall be administered by the City's Director of Public Works, or designee, and shall be awarded in accordance with the Uniform Public Construction Cost Accounting Act, Public Contract Code Section 22000, et seq., and in compliance with the provisions of this Section 3-4.19. To the maximum extent permitted by law, the provision of this section shall be alternative to any other means provided by law for effecting the completion of public projects. However, nothing contained herein shall limit or preclude the use of a designbuild delivery method provided by Public Contract Code Section 20175.2, or any other authority or procedure provided by law, and the City Council expressly authorizes the Director of Public Works to utilize any such procedures with the concurrence of the City Manager.

• (b) Definitions. Unless otherwise provided by law, for purposes of this Section 3-4.19 the following terms shall have those definitions as are set forth next to each:

  • (1) Facility means any plant, building, structure, ground facility, utility system (subject to the limitation found in subsection (b)(2)(C) of this section), real property, streets and highways, or other public work improvement.

  • (2) Public project means any of the following:

    • (A) Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility;

    • (B) Painting or repainting of any publicly owned, leased or operated facility;

    • (C) In the case of a publicly owned utility system, public project includes only the construction, erection, improvement or repair of dams, reservoirs, power plants and electrical transmission lines of 230,000 volts and higher.

  • (3) Public project does not include maintenance work. For purposes of this section, maintenance work includes all of the following:

    • (A) Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;

    • (B) Minor repainting;

    • (C) Resurfacing of streets and highways at less than one inch;

    • (D) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems;

    • (E) Work performed to keep, operate and maintain publicly owned water, power or waste disposal systems, including, but not limited to, dams, reservoirs, power plants and electrical transmission lines of 230,000 volts and higher.

• (c) Classification of Projects.

  • (1) The Director of Public Works shall review all City public projects with respect to the monetary limits imposed by Public Contract Code Section 22032, or any successor provision thereto, and shall designate such projects as follows:

• (A) Projects that may be performed with the City's own forces by force account, by negotiated contract, or by purchase order;

  • (B) Projects that may be let by contract after informal bidding, and the Director shall accomplish such identified projects by informal bidding;

  • (C) Projects that may be let by contract only after formal bidding, and the Director shall accomplish such identified projects by formal bidding.

  • (2) Projects shall not be split to avoid any of the bidding requirements contained in Public Contract Code Section 22000, et seq.

• (d) Informal Bidding Procedures.

  • (1) Development, Maintenance and Use of List of Qualified Contractors.

    • (A) The Director of Public Works shall develop a list of qualified contractors eligible to bid on projects awarded by informal bidding, in accordance with the provisions of Public Contract Code Section 22034(a).

    • (B) The list shall be organized in accordance with the license classifications of the Contractor's State License Board.

    • (C) Any licensed California contractor may request to be added to the list of qualified contractors at any time by filing a completed application with the Director of Public Works on a form provided by the Director. The contractor will be added to the list if the contractor meets all criteria established by the California Uniform Construction Cost Accounting Commission (Commission).

  • (2) Plans, Specifications and Working Details. The Director of Public Works shall prepare and adopt plans, specifications and working details for all contracts awarded by informal bidding to enable a qualified contractor to perform the work required for each contract awarded by informal bidding.

  • (3) Identifying and Inviting Bids.

  • (A) The Director of Public Works shall mail notice inviting informal bids to all contractors on the list of qualified contractors for the category of work being bid, and/or to all construction trade journals as specified by the Commission pursuant to Public Contract Code Section 22036.

  • (B) The Director of Public Works shall complete the mailing of notices inviting informal bids, as required by this subsection, not less than 10 calendar days before bids are due.

  • (C) The notice inviting informal bids shall describe the projects in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.

• (4) Opening of Informal Bids and Award of Contract.

• (A) At the time provided in the notice inviting informal bids, the City Clerk shall open all bids timely received. If a contract is awarded, it shall be awarded by the City Council to the lowest responsible and responsive bidder. If two or more responsive bids are the same and lowest, the City Council may award the contract by drawing lots. If no bids are received, the project may be performed by City forces, negotiated contract, or by any other means provided by law, as the City Council determines to be in the best interests of the City.

  • (B) If all competent bids received are in excess of the informal bidding limit, the City Council may, by adoption of a resolution by a four-fifths (4/5) vote, award the contract, at or below the provisional limit set forth in Public Contract Code Section 22034(f), to the lowest responsible bidder, if it determines that the City's cost estimate was reasonable.

(e) Formal Bidding Procedures.

• (1) Contracts for public projects determined by the Director of Public Works to require formal bidding pursuant to the provisions of Public Contract Code Section 22032 and subsection (c)(1) of this section, shall be formally bid and awarded or rejected, in accordance with the provisions of Public Contract Code Sections 22037 and 22038.

• (2) The City Council shall adopt plans, specifications and working details for all formally bid public projects.

• (3) If a contract is awarded, it shall be awarded by the City Council to the lowest responsible and responsive bidder. If two or more bids are the same and the lowest, the City Council may accept either bid. If no bids are received, the project may be performed by City forces, negotiated contract, or by any other means provided by law, as the City Council determines to be in the best interests of the City.

• (Ord. 09-745, § 2)

In those situations that a 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 procedures prescribed by Sections 3-4.09 through 3-4.16. (Ord. 09-745, § 2)

The Purchasing Agent may contract for supplies, services, and equipment without observing the procedures required by Sections 3-4.09 through 3-4.16 when the best interests of the City would be served thereby and the amount of the contract does not exceed twice the formal bidding policy limits. Whenever the Purchasing Agent approves the purchases of supplies, services, or equipment without observing the procedure required by Sections 3-4.10 and 3-4.11, the City Council may require that the Purchasing Agent solicit informal bids under such conditions and limitations, if any, that the Council may impose. This exemption section shall not apply to any public works projects.

(Ord. 09-745, § 2)

CHAPTER 5 TAXES