Banning Municipal Code Ch. 3.24 Purchasing System

Footnotes:

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Editor's note— Ord. No. 1604, § 1, adopted May 28, 2024, amended ch. 3.24 in its entirety to read as herein set out. Former ch. 3.24, §§ 3.24.010—3.24.150, pertained to similar subject matter, and derived from Code 1965, §§ 18A-1—18A-17; 2007 recodification; Ord. No. 1408, § 2, adopted August 25, 2009; Ord. No. 1440, § 2, adopted January 24, 2012; Ord. No. 1508, §§ 1—8, adopted June 27, 2017; Ord. No. 1550, §§ 3, 4, adopted August 27, 2019.

Note— Prior ordinance history: Ord. Nos. 657, 678, 704, 817, 998, 1054, 1061, 1203 and 1266.

The purpose of this chapter is to establish regulations regarding the purchase of supplies, services, and equipment, and to exercise positive financial control over purchases through the adopted centralized purchasing system and purchasing officer vested with the authority to purchase city supplies, services, and equipment.

(Ord. No. 1604, § 1, 5-28-24)

The city council may, by resolution, from time to time as it deems necessary, but not less than every five years, for the administration or implementation of the intent of this chapter, review, revise, adopt and/or promulgate new or amended rules set forth in Procurement Policy (B-30).

(Ord. No. 1604, § 1, 5-28-24)

Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:

"Contract" means a written agreement between two or more competent individuals and/or corporate entities to perform or not perform a specific act(s) for compensation. Contract includes all types of government agreements, regardless of what they may be titled for the procurement of supplies, services, or construction.

"Purchasing officer" means the city manager or his or her designee(s). Initially, the city manager designates the Purchasing Manager to act as the purchasing officer. Pursuant to this section, the city manager may change his or her designation at any time.

"Purchasing policy" means the policy adopted and amended from time to time by resolution of the city council, as referenced in and required by Section 3.24.020 of this chapter, for purposes of providing specific purchasing and procurement procedures, consistent with State law.

(Ord. No. 1604, § 1, 5-28-24)

Pursuant to California Government Code Section 40602, the mayor must execute all contracts, conveyances, and instruments requiring the city seal on behalf of the city, unless another city officer or employee is authorized to do so. The city manager and/or his or her designee(s) are authorized to execute contracts, conveyances, and instruments requiring the city seal on behalf of the city. The city manager shall inform the city council in writing in the event authorization is given to a designee.

(Ord. No. 1604, § 1, 5-28-24)

There is created the position of purchasing officer, who shall be appointed by the city manager. The purchasing officer shall have general supervision over all purchasing functions of the city. The duties of the purchasing officer may be combined with those of any other office or position. Subject to the supervision of the city manager, the purchasing officer shall have the authority to:

A. Negotiate contracts on behalf of the city for the purchase of supplies, equipment and services in accordance with this chapter and the Procurement Policy, which contracts will be subject to award by the city council or city manager and execution by the mayor or city manager;

B. Negotiate and execute purchase orders on behalf of the city, for the purchase of supplies, equipment and services required by the city in accordance with this chapter;

C. Prepare, and implement city council approved policies and procedures governing the purchase, bidding, contracting, storing, distribution and disposal of supplies, services and equipment for the city;

D. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and the Procurement Policy and any other policies and procedures approved by the city manager consistent with this chapter;

E. Review the working details, drawings, plans and specifications pertaining to procurement compliance and bidding processes for any projects or purchases requiring such review in this chapter and the Procurement Policy;

F. Inspect or supervise the inspection of purchased supplies, services and equipment to ensure conformity with any specifications established or required by the city;

G. Transfer among departments any supplies, services and equipment not needed by one such department, but which are necessary for the operations of one or more other departments;

H. Sell any supplies and equipment not needed for public use or that may become unsuitable for their intended use;

I. Develop and maintain any bidder's list, contractor's list or vendor's catalog file necessary to the operation of this chapter and any other policies and procedures approved by the city manager consistent with this chapter;

J. Approve and confirm emergency purchases;

K. Identify and pursue cooperative agreements with the State of California, Counties, other Cities and other governmental agencies and organizations in order to obtain cost savings for the city;

L. Be authorized in the absence of the Administrative Services Director to allow a budget over-ride for purposes of timely completion of a purchase transaction if such action would not put the fund over-budget when reasonably projected to the end of the fiscal year, and when the requesting department has submitted a Budget Transfer Form.

(Ord. No. 1604, § 1, 5-28-24)

A. Formal contracts shall be used for the purchase of goods, equipment, or services whenever those goods, equipment, or services are sought by way of a request for proposal or when the purchasing officer determines that, due to the complexity, risk, or monetary value of the goods, equipment, or services sought, a formal agreement with detailed procedural and substantive protections of the city's interests is necessary.

B. Informal letter contracts shall be used when the purchasing officer determines that due to a lack of complexity, risk, or monetary value, a purchase of services need not include the detailed procedural and substantive protections of the city's interests.

C. Purchase orders are formal, contractual documents requesting the delivery of specific goods, equipment, or services and promising payment therefor. They are issued by the purchasing officer and must be used in conjunction with formal contracts or else as provided in this chapter as stand-alone documents for all city purchases with the exception of purchases made pursuant to short form purchase orders or other methods consistent with this chapter and the policies and procedures implementing this chapter.

D. Open purchase orders are formal agreements whereby the city contracts with a vendor to provide services, tools and equipment or supplies on a just-in-time basis. They are encumbered purchase orders with a maximum dollar amount that may be purchased per transaction and a maximum dollar amount that can be spent through the term of the contract. They must be used in conjunction with a formal contract.

E. Blanket Purchase Orders (BPO) are contractual documents and should be issued for recurring purchases, such as office supplies, not valid for longer than one year, and shall always expire at the end of the fiscal year in which they were initiated.

F. Short form purchase orders are formal documents that provide a method whereby department directors, or designee may purchase non repetitive, low volume, low-cost goods or services valued at less than five thousand dollars.

(Ord. No. 1604, § 1, 5-28-24)

A. The city shall secure supplies, services, and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by federal and state law. For federal grants, the requirements of 2 C.F.R. 200 and any C.F.D.A. requirements of the award will apply. For non-Federal Awards, the city policy may be less restrictive if all applicable laws and regulations are followed.

B. The city shall secure professional services based upon demonstrated competence, professional qualifications, and suitability for the project in general. The city may consider the cost of professional services if the purchasing officer determines it to be a relevant factor under the circumstances.

C. The purchasing officer shall update, at least every five years, the Procurement Policy for approval by the city manager and the city council via resolution. Such policies as are necessary to implement the provisions of this chapter. Procedures for staff to follow policy as defined herein shall be approved by the city manager The policies and procedures shall be written and implemented in such a way to:

1. Encourage open and competitive bidding, where appropriate;

2. Provide equal opportunity based on merit;

3. Make each selection process free of favor, prejudice and discrimination;

4. Provide for efficient and timely acquisition of needed supplies, services and equipment; and

5. Provide effective fiscal controls.

D. In purchasing, supplies, services and equipment, the city shall make use of competitive bidding, both formal and informal, whenever required by law, this chapter, the Purchasing Policy, or any policies and procedures approved by the city manager consistent with this chapter.

E. The city shall comply with all federal and state bidders' security and bonding requirements and all prevailing wage laws applicable to each contract or purchase.

F. The city shall not split a project, work, service or purchase into small projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code.

(Ord. No. 1604, § 1, 5-28-24)

Except in cases of emergency, orders for supplies, services, and equipment may not be processed unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.

(Ord. No. 1604, § 1, 5-28-24)

Contracts for public projects shall be awarded consistent with, and pursuant to, the procedures set forth in the Uniform Public Construction Cost Accounting Act, California Public Contract Code Section 22000, et seq. ("UPCCAA"), and as set forth in the Procurement Policy adopted by the city council.

(Ord. No. 1604, § 1, 5-28-24)

Exceptions to standard purchasing methods, spending authorities, and bidding requirements shall be specified in the Procurement Policy adopted by the city council.

(Ord. No. 1604, § 1, 5-28-24)

A. In order to promote the economic health of the city and to encourage local participation in the procurement process, the city council shall give a preference to local businesses, to the extent that such preference does not give an unlawful advantage to such local business over its foreign competition and is otherwise permitted by law.

B. In the assessment of any responsive bid submitted by a local business pursuant to this chapter and the Procurement Policy, the amount bid by the local business shall be lowered by the local preference percentage, for purposes of award, than the amount actually bid. The local preference percentage will be set by city council resolution.

(Ord. No. 1604, § 1, 5-28-24)

It is the city's policy to purchase recycled products whenever possible to the extent that such use does not negatively impact the health, safety or operational efficiency of the city. The purchase of products which cannot be recycled or reused is strongly discouraged.

(Ord. No. 1604, § 1, 5-28-24)

The city manager or his or her designee is authorized to establish policies and procedures for the identification and disposal of the city's surplus personal property, including supplies, equipment, materials, inventory, and scrap material. Each determination that an item constitutes scrap material or city's surplus personal property shall be in writing. The value of personal property that may be declared surplus by the purchasing officer shall be set by city council resolution. Any personal property above the established threshold shall be declared surplus by the city council. Surplus personal property may not be purchased by a city official or an employee of the city, except at public auction or through other sealed bid procedures. Disposal of the city's surplus personal property shall be made pursuant to this chapter and City of Banning Administrative Policy No. B-24.

(Ord. No. 1604, § 1, 5-28-24)

No officer or employee of the city shall have any financial interest in the transaction of business in connection with the purchase of supplies, equipment and services for the city. No officer or employee of the city may contract with any person related to any officer or employee of the city by blood or marriage within the third degree for supplies, services or equipment, unless the purchase is made by a competitive bid process, and the person related submits the lowest responsible bid. No officer or employee shall participate in the procurement or selection process when such officer or employee has a relationship with a person or business entity seeking a contract under this chapter, which would subject such officer or employee to violation of the Government Code or this chapter.

(Ord. No. 1604, § 1, 5-28-24)

It is the city's policy to align the Procurement Policy with the criteria used to obtain the Achievement of Excellence in Procurement Award issued by the National Procurement Institute and sponsored by the California Association of Public Procurement Officials and the Government Finance Officers Association.

(Ord. No. 1604, § 1, 5-28-24)