Avenal Municipal Code Ch. 8 Purchasing System (CA)

Sections:

Title 3 FINANCE
Avenal, California, Code of Ordinances
Page 30
3-8.01 Adoption of purchasing system.
3-8.02 Definitions.
3-8.03 Purchasing Officer.
3-8.04 Purchasing regulations.
3-8.05 Exemptions from centralized purchasing.
3-8.06 Estimates of requirements.
3-8.07 Requisitions.
3-8.08 Emergency procedures.
3-8.09 Bidding.
3-8.10 Purchase orders.
3-8.11 Funding of purchases.
3-8.12 Public project bidding procedures.
3-8.13 Open market procedure.
3-8.14 Small purchases.
3-8.15 Local business enterprise credit.
3-8.16 Professional and other services excluded.
3-8.17 Public projects excluded.
3-8.18 Disposition of obsolete and surplus property.
3-8.19 Approval of modifications and change orders by City Manager.
3-8.20 Gratuities.
3-8.21 Contract splitting.
3-8.22 Purchasing manual. 3-8.01 Adoption of purchasing system. 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 of the purchasing function and to assure the quality of purchases, a purchasing system is hereby adopted. (Ord. 92-03 (part), 1992) 3-8.02 Definitions. As used in this chapter, unless the context otherwise clearly indicates: "Contract" means a written agreement between the City and a vendor, including a purchase order issued to a vendor. "Local business enterprise" means a business entity with fixed offices or distribution points located within the boundaries of the City, listed in the business license tax files with a City of Avenal business

Title 3 FINANCE Avenal, California, Code of Ordinances Page 31 address, and designating, for sales tax purposes, the City of Avenal as the point of sale for retail transactions. "Purchasing Officer" means the City Manager, or his or her designated representative. "Using agency" shall mean any office, department, bureau, commission, board or other agency of the City using supplies or equipment. (Ord. 92-03 (part), 1992) 3-8.03 Purchasing Officer. The Purchasing Officer shall be the City Manager or a person appointed by the City Manager as his or her designated representative. The Purchasing Officer may delegate duties to other employees. The duties of Purchasing Officer may be combined with those of any other office or position. The Purchasing Officer shall have authority to: (a) Purchase and contract for all supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the Purchasing Officer shall adopt, and such other rules and regulations as shall be prescribed by 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 collusive bidding and endeavor to obtain as full and open competition as possible on all purchases; (e) Prepare and recommend rules governing purchasing, maintaining an inventory, and warehousing of supplies and equipment of the City; (f) Keep informed of current developments in the fields of purchasing, prices, market conditions and new products; (g) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations; (h) Be responsible for the inspection of all supplies and equipment purchased to insure conformance with specifications, and, where necessary, to require chemical and physical tests of samples submitted with bids and samples of deliveries to determine their quality and conformance with specifications; (i) Recommend the transfer of surplus or unused supplies and equipment between City departments as needed and the sale or other disposition of all supplies and equipment which cannot be used by any using agency or which have become obsolete or otherwise unsuitable for City use; (j) Maintain a bidders' list, vendors catalog file and records needed for the efficient operation of the purchasing division; (k) Perform such other duties and functions as may be necessary. (Ord. 92-03 (part), 1992) 3-8.04 Purchasing regulations. The Purchasing Officer shall be responsible for determining that the regulations and procedures set forth in this chapter are carried out. (Ord. 92-03 (part), 1992)

Title 3 FINANCE Avenal, California, Code of Ordinances Page 32 3-8.05 Exemptions from centralized purchasing. The Purchasing Officer may authorize, in writing, any using agency to purchase and contract for specified supplies and equipment independently of the purchasing division; but the Purchasing Officer shall require that such purchases and contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the using agency on the purchases and contracts made under such written authorization. (Ord. 92-03 (part), 1992) 3-8.06 Estimates of requirements. All using agencies 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 Officer shall prescribe. (Ord. 92-03 (part), 1992) 3-8.07 Requisitions. Using agencies shall submit requests for supplies and equipment to the purchasing agent by standard purchase requisition forms. (Ord. 92-03 (part), 1992) 3-8.08 Emergency procedures. With regard to public works purchases, if there is a great public calamity, such as an extraordinary fire, flood, storm, epidemic, or other disaster, or if it is necessary to do emergency work to prepare for national or local defense, the City Council may pass a resolution by a four-fifths (4/5) vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with the provisions of this chapter as they apply to such public works purchases. (Ord. 92-03 (part), 1992) 3-8.09 Bidding. Unless Section 3-8.12 is applicable, the purchase of supplies and equipment shall be by openmarket procedures pursuant to Section 3-8.13. Formal bidding procedures required pursuant to Section 3-8.12 may be dispensed with only: (a) When the City Manager finds that such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available from only one source; or (b) When an emergency, as determined by the City Manager, requires that the purchase be completed within a period of time which will not permit normal bidding or quotation procedures; or (c) When there is a breakdown 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; or

Title 3 FINANCE Avenal, California, Code of Ordinances Page 33 (d) When 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 (e) When the City has contracted with another governmental entity to purchase particular supplies or equipment on a cooperative basis; or (f) When the City Manager determines that due to the nature of the supplies or equipment, formal bidding is not likely to result in the lowest price. (Ord. 92-03 (part), 1992) 3-8.10 Purchase orders. Purchases of supplies and equipment shall be made by contract, which may include a purchase order. (Ord. 92-03 (part), 1992) 3-8.11 Funding of purchases. The Purchasing Officer shall not authorize or issue a written contract for supplies or equipment unless there exists a sufficient unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. 92-03 (part), 1992) 3-8.12 Public project bidding procedures. (a) Intent. (1) It is the intent of this chapter to direct and authorize the establishment and maintenance of informal bidding procedures for the City of Avenal in accordance with Section 22034 of the Public Contract Code to govern the selection of contractors to perform public projects under the Uniform Public Construction Cost Accounting Act (the "Act"). (2) This chapter shall be in effect throughout the City of Avenal and shall apply to the performance of all public projects undertaken by, or to be undertaken by, the City of Avenal, and it shall be liberally construed for the accomplishment of its purposes. (b) Definitions. For the purpose of this chapter, the terms, phrases, and words used in this section shall have the same meaning given them in the Public Contract Code of the State of California. When not inconsistent with the context, words used in the present tense include the future, words used in the plural include the singular, and words used in the singular include the plural. The words "include," "including" or other similar words of inclusion shall mean without limitation or restriction. (c) Force account negotiated contract purchase order. Any public project to be undertaken by the City of Avenal, the estimated cost of which is less than thirty thousand dollars ($30,000.00), may be performed by the City of Avenal. (d) Informal bidding requirements. (1) Any public project to be undertaken by the City, the estimated cost of which is less than one hundred twenty-five thousand dollars ($125,000.00) may be let to contract by the informal procedures established in this section. (2) A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and in accordance with criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

Title 3 FINANCE Avenal, California, Code of Ordinances Page 34 (3) Where a public project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list of contractors described in subsection (d)(2) of this section, or to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors or construction trade journals may be notified at the discretion of the City of Avenal, provided, however: (i) If there is no list of qualified contractors maintained by the City of Avenal for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission. (ii) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. (e) Administrative authority. The Public Works Director, with the written concurrence of the City Manager, is hereby authorized to award contracts pursuant to the informal procedures established in this chapter, subject to the requirement that the current adopted City of Avenal budget provides for the work. (f) Limitations. Nothing in this chapter shall prohibit, or construed to prohibit, the City Council of the City of Avenal, the Public Works Director, or the City Manager from utilizing the alternative procedures set forth in (1) Article 25 (commencing with Section 20390) of Chapter 1 of Part 3 of Division 2 of the Public Contract Code, or (2) in Article 7 (commencing with Section 25500) of Chapter 5 of Part 2 of Division 2 of Title 3 of the Government Code. (Ord. 95-12 § 1, 1995: Ord. 95-11 § 1, 1995: Ord. 92-03 (part), 1992; Res. No. 2009-14, 6-3-2009) 3-8.13 Open market procedure. Purchases of supplies and equipment of an estimated value in an amount less than fifty thousand dollars ($50,000.00) but greater than twenty-five thousand dollars ($25,000.00) may, upon receipt and approval of a purchase requisition executed by a department manager, be made by the Purchasing Officer in the open market without observing the formal bidding procedures prescribed by Section 3-8.12. (a) Minimum number of quotations. Open market purchases shall, wherever practicable, be based on at least three (3) quotations and shall be awarded to the lowest responsible vendor, except as otherwise provided herein. (b) Inviting quotations. The Purchasing Officer may solicit quotations by written requests to prospective vendors, by telephone or by public notice posted on a public bulletin board in the Avenal City Hall, or by any other means deemed effective. (c) Quotations. Sealed, written quotations shall be submitted to the Purchasing Officer, who shall keep a record of all open market quotations and contracts for a period of two (2) years after submission of quotations or the execution of contracts. This record, while kept, shall be open to public inspection, except that vendor proprietary data shall not be open to public inspection. (Ord. 92-03 (part), 1992) 3-8.14 Small purchases. All ordinary purchases of day-to-day supplies or capital acquisitions with a value of less than five thousand dollars ($5,000.00) shall be made at the discretion and direction of the Purchasing Officer. No bidding procedures, formal or otherwise, or any other formal procedures or requirements, shall be necessary.

Title 3 FINANCE Avenal, California, Code of Ordinances Page 35 (Ord. 92-03 (part), 1992) 3-8.15 Local business enterprise credit. In determining the lowest responsible bidder pursuant to Section 3-8.12, or the lowest responsible vendor pursuant to Section 3-8.13, the Purchasing Officer shall be authorized to give credit of up to one percent of the bid price or quotation to a local business enterprise. If such credit is to be given, the dollar or percentage amount thereof shall be set forth in the notice inviting bids or in the request for quotations. The Purchasing Officer shall provide a form by which a local business enterprise shall document and certify that it qualifies for such credit, where applicable. (Ord. 92-03 (part), 1992) 3-8.16 Professional and other services excluded. Except as provided in Section 3-8.19, the procedures set forth in this chapter shall not apply to purchase orders or contracts for professional or other services. The City Manager shall prepare an administrative instruction setting forth the procedures to be followed by all city departments in contracting for professional and other services, which procedures shall be approved by the City Council. (Ord. 92-03 (part), 1992) 3-8.17 Public projects excluded. Except for Section 3-8.19, the procedures set forth in this chapter shall not apply to a "public project," as said term is defined in Section 20161 of the Public Contract Code, when the expenditure required therefor exceeds five thousand dollars ($5,000.00). The procedures to be followed by the Purchasing Officer and all city departments in contracting for a public project shall be in conformity with state law, including without limitation the Public Contract Code and the Labor Code. (Ord. 92-03 (part), 1992) 3-8.18 Disposition of obsolete and surplus property. Each using agency shall submit to the Purchasing Officer at least annually a report describing all supplies, equipment, materials, fixtures, and other personal property of the City in the agency's custody which is deemed to be surplus or which has become obsolete or unserviceable. (a) Subject to subsection (e) of this section, the Purchasing Officer, with the approval of the City Manager, is authorized from time to time to sell or exchange any and all supplies, equipment, materials, fixtures, and other personal property of the City having a salvage value and which is obsolete or unserviceable, or is deemed to be surplus, or for which replacements are to be purchased. The Purchasing Officer may sell the same for the best price obtainable in the open market, or, when it is deemed advisable, to the highest bidder at a public sale, or the Purchasing Officer may exchange the same for other property or for credit on other property. (b) If the Purchasing Officer determines that any such obsolete, unserviceable, or surplus property has no salvage value, it may be disposed of, with the approval of the City Manager, in any acceptable manner. (c) All sales shall be paid for in cash or by certified check or money order payable to the City. (d) The Purchasing Officer shall be authorized, with the approval of the City Manager, to sign bills of sale and any other documents evidencing transfer of title to such property by and on behalf of the City.

Title 3 FINANCE Avenal, California, Code of Ordinances Page 36 (e) Prior to disposing of any obsolete, unserviceable or surplus property having an estimated market value in excess of one thousand dollars ($1,000.00), the Purchasing Officer shall inform the City Council of the nature of the property proposed for disposition and the proposed sales price. Such disposition shall be subject to the City Council's prior approval. (Ord. 92-03 (part), 1992) 3-8.19 Approval of modifications and change orders by City Manager. The City Manager shall have the authority to approve modifications and change orders as follows: (a) After the effective date of any contract executed on behalf of the City for the purchase of equipment or supplies, the retention of professional or other services, or work on a public project, the City Manager shall have authority to approve in writing any modification involving an addition to, deletion from, or revision in any item in such contract, including, without limitation, plans, specifications and extra work, and change orders relating to the nature or quantity of services, equipment, supplies or work, subject to the following limitations: (1) The dollar amount of all such modifications or change orders relating to any one contract having an original contract price of one million dollars ($1,000,000.00) or less shall not exceed fifty thousand dollars ($50,000.00) or twenty (20) percent of the original contract price, whichever is less. (2) The dollar amount of all such modifications or change orders relating to any one contract having an original contract price of one million one dollars ($1,000,001.00) or more shall not exceed one hundred thousand dollars ($100,000.00). (b) The authority herein conferred upon the City Manager may, in the sound discretion of the City Manager, be delegated in whole or in part to a department manager or other designated employee or agent of the City. (c) In connection with any specific contract where the circumstances so warrant, the City Council may, by resolution, authorize the City Manager to exceed the specific dollar amounts or percentage limitations set forth in divisions (1) and (2) of subsection (a) of this section. (d) If a proposed contract modification, change order or request for extra work exceeds the limitations imposed upon the City Manager by this section or by resolution, and any extended delay in obtaining City Council approval is reasonably determined to subject the City to liability for damages incurred by a contractor, or to jeopardize the public health, welfare or safety, or to otherwise result in potential detriment to the City, then the City Manager shall have authority to exceed the dollar amounts or percentage limitations specified herein. (e) The City Manager shall, not less frequently than every six (6) months, report to the City Council on modifications and change orders which are approved pursuant to this Section 3-8.19. (Ord. 92-03 (part), 1992) 3-8.20 Gratuities. Each officer and employee of the City is hereby prohibited from accepting, directly or indirectly, any rebate, gift, money, or anything of value whatsoever from any person to whom any purchase order or contract is or might be awarded. (Ord. 92-03 (part), 1992)

Title 3 FINANCE Avenal, California, Code of Ordinances Page 37 3-8.21 Contract splitting. It is unlawful to split or separate into smaller portions, work orders, projects, purchases, contracts or any public work project for the purpose of evading the provisions of this chapter, including the splitting of work or services between or among departments or divisions or other organizational units of the City. (Ord. 92-03 (part), 1992) 3-8.22 Purchasing manual. The Purchasing Officer shall prepare a purchasing manual which will clearly define and describe the aims and purposes of this chapter. The purchasing manual shall describe and explain in detail the procedures that the using agencies must follow in the procurement of supplies and services. (Ord. 92-03 (part), 1992)