Barstow Municipal Code Ch. 2.40 Purchasing System

Footnotes:

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Editor's note— Ord. No. 868-2010, adopted Dec. 6, 2010, amended ch. 2.40 in its entirety to read as set out herein. The former ch. 2.40, §§ 2.40.010—2.40.220, pertained to similar subject matter and derived from Ord. No. 706, § 1(part), 1994, and Ord. No. 810, §§ 2, 4, 5, 7—11(part), 2005. Previously, the title of ch. 2.40 was amended by Ord. No. 810, § 1. Ord. No. 868-2010 has subsequently been amended by Ord. No. 907-2013, adopted June 17, 2013.

State Law reference— Purchases of supplies and equipment by local agencies, Government Code § 54202 et seq.

In order to clearly define the authority for the purchasing function; to establish efficient procedures; to secure for the city supplies, services and equipment at the lowest possible cost commensurate with quality requirements; and to exercise positive financial control over purchases, a purchasing system is adopted.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.010, 6-17-2013)

The city council shall delegate the purchasing responsibility to the finance director as the city's designated purchasing agent, with additional duties delegated to the city manager and assistant city manager as stated in the purchasing limits resolution as adopted by the city council. The purchasing agent shall have the authority to delegate purchasing responsibilities to each department head.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.020, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

The purchasing agent shall have authority to:

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

(2) Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment.

(3) Act to procure for the city the needed quality in supplies, services and equipment at the least expense to the city.

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

(5) Prepare and recommend to the city council rules governing the purchase of supplies, services and equipment for the city.

(6) Prepare and recommend to the city council revisions and amendments to the purchasing rules.

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

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

(9) Supervise either directly or indirectly the inspection of all supplies, services and equipment purchased to ensure conformance with specifications.

(10) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for city use.

(11) Maintain a vendors' catalog file and records needed for the efficient operation of the purchasing division.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.030, 6-17-2013)

It is the intent of this chapter to create a decentralized purchasing system. Each department head delegated with purchasing functions by the purchasing agent shall be responsible for the function of the procurement of suitable equipment, materials, supplies and services for their departments.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.040, 6-17-2013)

The purchasing agent shall have general supervision of the purchasing system.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.050, 6-17-2013)

All using agencies shall file detailed estimates of their requirements in supplies, services and equipment by requisition forms as prescribed by the purchasing agent.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.060, 6-17-2013)

Using agencies shall submit requests for supplies, services and equipment by requisition forms as prescribed by the purchasing agent.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.070, 6-17-2013)

Except as otherwise provided in this chapter, the purchasing agent shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation and is duly authorized for expenditures in the fund account against which the purchase is to be charged.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.080, 6-17-2013)

The city manager may approve and authorize all contracts and purchase orders without city council approval as follows:

(1) Contracts and purchase orders involving an expenditure of city funds may be approved and executed by the city manager in accordance with the adopted limits as set by resolution.

(2) Notwithstanding subsection (1) of this section, contracts involving the settlement of worker's compensation claims may be approved and executed by the city manager if the total amount of the settlement is $10,000.00 or less.

(3) Contracts involving software licensing agreements without regard to amount of the contract, but excludes purchases of computer hardware.

(4) Any contract approved by the city council where the city council expressly authorizes the city manager to execute the contract on its behalf.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.100, 6-17-2013; Ord. No. 947-2016, 2-16-2016)

The following purchases, contracts or obligations shall be exempt, at the purchasing agent's discretion, from the requirements of sections 2.40.130 and 2.40.140:

(1) Emergency purchases. In emergency situations, the purchasing agent has authorization to expend city funds without limitation by way of amount and without the requirement for either formal or informal bids. The purchasing agent has authorization to conclude that an emergency exists without further declaration by the city council. Expenditures made during an emergency must be reported to the city council at the next regular meeting if such expenditure would have been otherwise authorized by the city council.

a. The city manager may authorize any employee or department head to make purchases of supplies, equipment or services in an emergency situation.

b. An emergency, as used in this section, exists when a department has an immediate need for supplies, equipment or services, and that without immediate procurement, the need would have a serious effect on public safety, welfare or city operations. The city manager or a city employee or department head, with the city manager's approval, has the authority to approve emergency purchases of supplies, equipment or services, including public works projects so long as consistent with state law, in a manner and amount set by the city's purchasing and contract policy.

(2) Professional services or specialized services. Services of professional or specialized services to be performed by specially trained persons or firms and/or requiring a high degree of certification, unique skill or specialized expertise, such as, but not limited to, services rendered by architects, attorneys, accountants, auditors, engineers, and other specialized or professional consultants, are exempt so long as procured consistent with the city's purchasing and contracting policy and approved by the appropriate city official or city body per the city council's purchasing policy and limits as adopted by resolution.

(3) Cooperative agreements. Purchases made pursuant to a cooperative purchasing agreement authorized by the city council are exempt. Cooperative agreements shall be used when such agreements comply with applicable law, have been competitively bid within a 12-month period, and the use of such agreements shall be financially advantageous to the city.

(4) Petty cash funds. Purchases made from this fund as authorized by the finance director, or by his designee, are exempt.

(5) Uniqueness. The supplies, services or equipment is unique because of its quality, durability, proprietary nature, availability or fitness for a particular purpose or where warranty, guarantee or other assurances could be voided, they are exempt.

(6) City working with own employees. Any work performed by the city with its own employees is exempt.

(7) Open market purchases. Open market purchases are those which are under the threshold level of informal bidding requirements as set forth in the city's purchasing and contracting policy. Purchases under this threshold may be made by the purchasing agent or department head under the purchasing limits as set by the city council by resolution.

(8) Sole source purchases. Purchases of supplies, services and equipment are exempt from this chapter if they are one-of-a-kind or unique and can be obtained from only one vendor. Any sole source purchase shall be made within the expenditure limits set by adopted administrative regulations.

(9) Open purchase order. Where the merchandise or service is provided by an independent contractor who has a contract with the city to provide labor and materials for projects other than a public works project if issued under one of the following circumstances:

a. To ensure efficient and effective control of purchases that are difficult to anticipate.

b. For goods and/or services that are required on a recurring basis and are uneconomical to store.

c. To facilitate the acquisition of supplies and services needed by various departments in their day-to-day operations.

d. To reduce the volume of small value purchase orders.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.110, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

Except as otherwise provided in this chapter, the purchase of supplies, services and equipment shall be by bid procedures pursuant to sections 2.40.130 and 2.40.140, except as set forth in section 2.40.110.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.120, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

Purchases and contracts of supplies, equipment or services of an estimated value between $15,000.00 and $24,999.00 shall be made by the purchasing agent or assistant city manager pursuant to the informal bidding procedures set forth herein and as adopted by the city council by resolution. In determining the estimated value of the purchase, the total amount of all items subject to the informal bidding procedure shall be considered.

(1) Minimum number of quotations. For purchases procured under the informal bidding requirements, at least three quotations shall be solicited in writing, at least one of which shall be a local vendor, if available, shall be awarded to the lowest responsive and responsible vendor.

(2) Records of quotations. The city clerk shall keep a record of all informal bid orders and quotations submitted in competition thereon. Such records shall be open to public inspection during business hours. Records of such open market orders or purchases may be disposed of by the purchasing agent in the manner provided by the city's purchasing and contracting policy.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.130, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

Purchases and contracts for supplies, services, and equipment with an estimated value of $25,000.00 or more shall be by written contract pursuant to the procedure prescribed in this section and as adopted by the city council by resolution. The city manager is authorized to award contracts under this section up to the contract award limits as set by the city council by resolution. The city council alone may award contracts under this section above the delegated contract award limits set by the city council by resolution.

(1) Notice inviting bids. Notices inviting bids shall include, at minimum, a general description of the articles to be purchased or sold, shall state where bid forms and specifications may be secured, and the time, date and place for opening bids.

a. Published notice. Notice inviting bids shall be published at least ten days before the scheduled date of opening of the bids. Notice shall be published at least once in a city newspaper of widest circulation. In the event there is no bidder for the required supplies, services and equipment within the area of circulation and no bidders were solicited from the bidders' list, the city clerk shall cause to be published a notice inviting bids at least ten days before the scheduled date of opening of the bids in a trade publication or other publication likely to be received by prospective bidders. It shall be the responsibility of the potential bidder to be self-informed of such publications and no other form of communication shall be deemed necessary to inform said bidder.

b. Bidders' list. The purchasing agent shall promote competition to the maximum extent practicable and compatible with efficiency and economy in regarding administrative costs and time, and, as necessary, solicit sealed bids from selected responsible prospective vendors whose names are in the vendor file.

(2) Bid bond. When deemed necessary by the purchasing agent, a bid bond may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. 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 difference between the low bid and the next lowest bid and the surplus, if any, shall be returned to the lowest bidder. Any subsequent refusals or failures to execute the contract under the terms shall continue in like fashion as the first lowest bidder and the second lowest bidder.

(3) Business license. The successful bidder shall be required to obtain a business license pursuant to title 5 of this Code.

(4) Performance, labor, material and other bonds. The city council shall have authority to require performance, labor, material and other bonds before entering a contract in such amount as they shall find reasonably necessary to protect the best interests of the city. If the city council requires such a bond, the form and amount of the bond shall be described in the notice inviting bids. Such a bond in said amount shall be furnished by a surety authorized to do a surety business in the state.

(5) Insurance requirements. The purchasing agent shall require sufficient evidence of insurance before entering a contract in such amount as they shall find reasonably necessary to protect the interests of the city. The form and amount of the insurance shall be described in the notice inviting bids. Such insurance in said amount shall be furnished by a surety authorized to do a surety business in the state.

(6) Certification requirements. The city council shall have authority to require sufficient evidence of certification before entering a contract in such amount as they shall find reasonably necessary to protect the best interests of the city. If the city council requires such certification, the same shall be described in the notice inviting bids.

(7) Submission of bids. Bids shall be submitted in sealed packages that are:

a. Addressed to the office specified in the solicitation;

b. Showing the date and time specified for receipt; and

c. Showing the solicitation number, name and address of the bidder.

Bids must be submitted in sufficient time so that they will be delivered to the bid opening room prior to the scheduled time of bid opening. The only acceptable evidence establishing the time of receipt at the specified office shall be the time/date stamp or other documentary evidence of receipt maintained by such an office.

(8) Submission of bid modifications or withdrawals. Bid modifications or withdrawals must be submitted in like manner as the submission of bid. The bid may be withdrawn or modified in writing or in person by a bidder or its authorized representative if, before the scheduled bid opening, the identity of the requester is established and if upon request for withdrawal the same signs a receipt for the bid. A telephone request for any submittal or its modification or withdrawal is strictly prohibited. A facsimile request for any withdrawal must be in like form as described herein and in the solicitation, the bidder bears the sole responsibility for its delivery to the bid opening room before the scheduled time of bid opening and for the clarity thereof. Final determination shall be the city's.

(9) Bid opening procedures. Unless otherwise provided in the notice inviting bids, bids shall be opened in the council chambers of the city located at 220 East Mountain View Street, Barstow, California, 92311. Bid openings shall be open to the public. The department head or their representative most closely affected by the bid shall be present at the bid opening. The city clerk or his designee shall decide when the time set for opening bids has arrived and shall inform those present of that decision. The city clerk or his designee shall then:

a. Personally and publicly open all bids which were received prior to the scheduled time of bid opening;

b. If practical, read the bids aloud to the persons present; and

c. Have the bids recorded.

Following the bid opening, the city clerk or his designee shall prepare a tabulation of bids and submit the same to the city council along with an appropriate recommendation as to disposition of bids. 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.

(10) Rejection of bids. With discretion, the purchasing agent may recommend rejection of any and all bids by the city council and readvertise for bid.

(11) Award of contracts. With discretion, the purchasing agent may recommend contracts to be awarded by the city council to the lowest responsive and responsible bidder, except as otherwise provided in this chapter.

(12) 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 of readvertising for bids, the city council may accept the one they choose or accept the lowest bid made by negotiation prior to the time of award.

(13) No bids. If either no bids are received or none meet the specifications, the purchasing agent may proceed to have the services performed or the supplies purchased without further competitive bidding.

(14) Waiver of requirements. The purchasing agent may waive any informalities or minor irregularities in the bids which are deemed to have no effect upon the essential requirements of the solicitation.

(15) Waiver of procedures. Where it is deemed to be in the best interests of the city, the city council, upon motion duly carried, may waive the procedures required in this section, and may authorize the purchasing agent to purchase supplies, equipment and contract services pursuant to the procedures prescribed in section 2.40.130.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.140, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

Any bid with the value in excess of the threshold level of formal bidding may be appealed in accordance with the following procedure:

(1) The purchasing agent shall post a letter of intent to award bid on the public bulletin board located in the first floor of city hall three working days prior to awarding any formal competitive bid.

(2) An appellant shall file a written notice of appeal to any letter of intent to award bid in accordance with the following procedures:

a. The written notice of appeal shall be filed with the city manager prior to bid award.

b. The written notice of appeal must include specifics as to the nature of the appeal.

c. The appellant must provide any and all documentation to support the appeal.

d. The city manager will respond in writing to the appellant within five working days.

e. In the event the appeal is denied by the city manager, the appellant may appeal the city manager's ruling to the city council at the next available council meeting.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.150, 6-17-2013)

Editor's note— Ord. No. 876-2011, § 1, adopted May 2, 2011, deleted § 2.40.155, which pertained to public projects and derived from Ord. No. 868-2010 adopted December 6, 2010. See chapter 2.42 for regulations pertaining to awarding public projects.

Except as otherwise provided in this chapter, all thresholds for informal bid, and formal bid for the purchase of supplies, services and equipment shall be bound by the purchasing and contract policy and the state laws pertaining to a general law city.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.160, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

The city department receiving or utilizing services or supplies shall inspect supplies delivered and services performed to determine their conformity with the specifications applicable thereto or set forth in the contract and shall report any deficiencies to the purchasing agent. The city may require chemical and physical tests of supply samples submitted with bids and samples of supply deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.170, 6-17-2013)

(a) In establishing a preference to local vendors in the award of contracts for supplies, equipment or services under this chapter, the city council finds that local businesses are disadvantaged in comparison to business located outside the city, particularly due longer commutes for the delivery of goods and services and the high gas prices which increase the cost of goods and services delivered to and from the city limits.

(b) The city council, or the city staff pursuant to purchasing and contract policy, in awarding bids pursuant to sections 2.40.130 and 2.40.140, may, at their discretion, grant qualified local vendors a bidding preference of ten percent for any contract awarded under this chapter.

(c) For purposes of this section, a "qualified local vendor" means any individual, business, partnership or corporation which maintain a place of business located within the limits of the city, which have a current city business license and which must report to the state sales tax returns for goods purchased at its business located within the boundaries of the city which regularly maintains a place of business and an inventory of merchandise for sale within the sphere of influence of the city and has the necessary licenses, certificates, bonds and insurances, and is in good financial and legal standing with the city.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.180, 6-17-2013; Ord. No. 947-2016, 2-16-2016; Ord. No. 1020-2023, § 1, 6-20-2023)

The purchasing agent in awarding bids pursuant to sections 2.40.130 and 2.40.140, may, with discretion, grant a bidding preference in accordance with adopted administrative regulations for any contract awarded under this chapter for items which either are recycled, recyclable, reusable or provide waste minimization. Such preference shall be in accordance with performance, price, delivery, other requirements, and are deemed equivalent or acceptable by the purchasing agent.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.190, 6-17-2013)

The purchasing agent, with the approval of the city manager, may authorize refunds for business licenses and payroll related items in an amount not to exceed the prescribed limits in the administrative regulations.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.200, 6-17-2013)

All surplus supplies and equipment shall be disposed of in accordance with adopted administrative regulations for the sale of surplus supplies and equipment.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.210, 6-17-2013)

The purchasing agent shall prepare purchasing and contract policy which shall be adopted by city council by resolution and will serve as the administrative regulations for the purchasing system. The purchasing and contract policy shall clearly define and describe the aim and purpose of this chapter. The purchasing and contract policy manual shall describe and explain in detail the procedures that the purchasing agent or his designees must follow in the procurement of supplies, services and equipment. It shall include, among other things, control procedures established under the authority of this chapter.

(Ord. No. 868-2010, 12-6-2010; Ord. No. 907-2013, § 2.40.220, 6-17-2013; Ord. No. 1020-2023, § 1, 6-20-2023)

Editor's note— Ord. No. 1020-2023, § 1, adopted June 20, 2023, amended § 2.40.220 and in doing so changed the title of said section from "Purchasing and contract guidelines" to "Purchasing and contract policy," as set out herein.