Brea Municipal Code Ch. 3.24 Purchasing

In order to establish efficient procedures for the purchase of supplies, materials, equipment, and services at the lowest 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; 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. 1198, 11-21-2017)

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

"Cost-based services."

All services other than professional services.

"Department."

Any of the departments, offices, or other organization units of the city, or of 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.

"Director."

The person appointed by the City Manager to lead a department.

"Emergency."

A sudden, unexpected occurrence requiring immediate action to maintain public safety, or to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

"Local vendor."

A vendor that satisfies all of the following criteria:

Regularly maintains a place of business and transacts business in, or regularly maintains an inventory of merchandise for sale in, the city;

Is current in the payment of business taxes to the city; and

Possesses all necessary licenses and permits from the city.

"Local vendor preference amount."

The amount by which an offer from a local vendor in a formal solicitation pursuant to § 3.24.090 shall be reduced for offer comparison purposes.

"Offer."

A quote, bid, or proposal.

"Offeror."

The individual or entity providing a quote, bid, or proposal.

"Professional services."

The services of architects, artists and designers, attorneys, auditors, computer programmers, economic analysts, engineers, environmental analysts, financial analysts, grant and specification writers, insurance brokers, property analysts, real estate agents, specialized trainers, or other individuals or entities possessing a high degree of specialized skill or expertise that, in the determination of the City Manager, do not readily fall within a cost-based competitive offer process.

"Public works project."

A public project as defined by the UPCCAA.

"Purchase."

Purchase of supplies, materials, equipment, and services shall include leases or rentals of such items as well as transactions by which the city acquires ownership or services.

"Purchasing policy."

The City Council resolution designating:

The limits for open market, informal solicitation, and formal solicitation purchases of supplies, materials, equipment, services, and public works projects; and

The local vendor preference amount.

"Responsive and responsible offeror."

An offeror that both:

Has submitted an offer to furnish supplies, materials, equipment, services, or a public works project in conformity with the solicitation; and

Has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily provide the supplies, materials, equipment, services, or public works project specified in the solicitation (as determined from prior experience with the city, references, and other available information).

"Services."

Any and all cost-based services and professional services.

"Solicitation."

A request for quote, bid or proposal.

"Supplies, materials, and equipment."

Any and all items that shall be furnished to or used by any department.

"Surplus personal property."

Any item that is obsolete, worn out, or no longer used by the acquiring department.

"UPCCAA."

The Uniform Public Construction Cost Accounting Act (Cal. Pub. Cont. Code § 22000 et seq.).

"Vendor."

A consultant, contractor, or provider of supplies, materials, equipment, and services.

"Vendors list."

A current file of vendors for supplies, materials, equipment, and services.

(Ord. 1198, 11-21-2017)

A. Centralized Purchasing Division. There is created a Centralized Purchasing Division within the Administrative Services Department in which is vested authority to purchase supplies, materials, equipment, and services. The City Manager, acting for and on behalf of the City Council, shall have the power to issue instructions as deemed necessary for the operation of the Purchasing Division.

B. Purchasing Agent. There is created the position of Purchasing Agent. The Purchasing Agent shall be appointed by the City Manager to direct and manage the city’s purchasing division. The Purchasing Agent shall have the authority to purchase supplies, materials, equipment, and services in accordance with this chapter. The Purchasing Agent shall establish methods and procedures necessary for the efficient and economical functioning of the purchasing division.

(Ord. 1198, 11-21-2017)

The Purchasing Agent may, and where legally required to do so shall, authorize a department to independently purchase particular classes of supplies, materials, equipment, or services in accordance with this chapter. Unless otherwise prohibited by law, the Purchasing Agent also may rescind such authorization to purchase independently.

(Ord. 1198, 11-21-2017)

All departments shall submit requests to the Purchasing Agent by standard requisition forms for the supplies, materials, equipment, and services required for their operations subject to available City Council-adopted budget appropriations.

(Ord. 1198, 11-21-2017)

Purchases of supplies, materials, equipment, and services shall be made by purchasing card transaction, or by a purchase order, or by both a written contract and a purchase order as specified below and within the limits specified in the purchasing policy.

(Ord. 1198, 11-21-2017)

A. Applicability. The Purchasing Agent, directors, and directors’ designees may use the procedure set forth in this section for purchases of supplies, materials, equipment, and cost-based services of a value within the open market purchase limit specified in the purchasing policy.

B. Solicitation. The Purchasing Agent, directors, and directors’ designees shall make a reasonable effort to obtain the lowest cost commensurate with quality needed by written, electronic, or other means without the necessity of publishing notice of the solicitation or seeking competitive offers.

C. Execution. Open market purchases may be executed by a purchasing card transaction or by a purchase order as deemed appropriate by the Purchasing Agent. Any such purchasing card transaction may be executed by the Purchasing Agent, directors, and directors’ designees. Any such purchase order may be executed by the Purchasing Agent.

(Ord. 1198, 11-21-2017)

A. Applicability. The Purchasing Agent may use the procedure set forth in this section for purchases of supplies, materials, equipment, and cost-based services of a value within the informal solicitation limit specified in the purchasing policy.

B. Solicitation. The Purchasing Agent shall make a reasonable effort to obtain at least three (3) competitive offers by written, electronic, or other means without the necessity of publishing notice of the solicitation. In the event three (3) competitive offers are not obtained, the Purchasing Agent shall document the reasons therefore in the files of the Purchasing Division.

C. Offer submission. Offers shall be submitted to the Purchasing Agent as specified in the solicitation.

D. Purchase award; offer rejection. The Purchasing Agent shall award the purchase to the lowest responsive and responsible offeror or shall reject all offers. If all offers are rejected, then the Purchasing Agent may cancel the procurement or may reissue the solicitation.

E. Tie offers. If two (2) or more offers received are for the same total amount or unit price, quality and service being equal, then the Purchasing Agent may either:

1. Select one (1) based on delivery date, scope of warranty, local vendor status, or other benefit deemed to be in the city’s best interests; or

2. Accept the offer made by negotiation with the tie offerors.

F. Execution. Informal solicitation purchases may be executed by a purchase order or by both a written contract and a purchase order as deemed appropriate by the Purchasing Agent. Any such purchase order and written contract may be executed by the Purchasing Agent or the Administrative Services Director.

(Ord. 1198, 11-21-2017)

A. Applicability. The Purchasing Agent shall use the procedure set forth in this section for purchases of supplies, materials, equipment, and cost-based services of a value within the formal solicitation limit specified in the purchasing policy.

B. Solicitation. The Purchasing Agent shall publish notice of the solicitation. Such notice shall include a general description of the supplies, materials, equipment, or services to be purchased; shall state where the solicitation documents may be obtained; and shall state the time and place for opening of offers. The Purchasing Agent shall also solicit offers from vendors whose names are on the vendors list for the category of purchase being solicited.

C. Offer submission. At the discretion of the Purchasing Agent, sealed written offers may be received in paper copy or by secured electronic means, as specified in the solicitation.

D. Offer opening. The Purchasing Agent shall publicly open offers at the time and place stated in the solicitation. If an offer is submitted by a local vendor, the Purchasing Agent shall, for the purpose of offer comparison only, reduce the amount of such offer by the local vendor preference amount. Offer results shall be posted publicly or otherwise made available for public inspection.

E. Purchase award; offer rejection. The City Council shall award the purchase to the lowest responsive and responsible offeror or shall reject all offers. If all offers are rejected, then the City Council may cancel the procurement or may order reissuance of the solicitation.

F. Tie offers. If two (2) or more low offers received are for the same total amount or unit price, quality and service being equal, then the City Council may either:

1. Select one (1) based on delivery date, scope of warranty, local vendor status, or other benefit deemed to be in the city’s best interests; or

2. Accept the lowest offer made by negotiation with the tie offerors.

G. Execution. Formal solicitation purchases may be executed by a purchase order or by both a written contract and a purchase order as deemed appropriate by the Purchasing Agent. Any such purchase order may be executed by the Administrative Services Director. Any such written contract may be executed by the Mayor or the City Manager.

(Ord. 1198, 11-21-2017)

A. Open market solicitation. The Purchasing Agent, directors, and directors’ designees may use the procedure set forth in this paragraph for purchases of professional services of a value within the open market purchase limit specified in the purchasing policy.

1. The Purchasing Agent, directors, and directors’ designees shall make a reasonable effort to obtain offers by written, electronic, or other means without the necessity of publishing notice of the solicitation or seeking competitive offers.

2. Open market purchases may be executed by a purchasing card transaction or by a purchase order as deemed appropriate by the Purchasing Agent. Any such purchasing card transaction may be executed by the Purchasing Agent, directors, and directors’ designees. Any such purchase order may be executed by the Purchasing Agent.

B. Informal solicitation. The Purchasing Agent may use the procedure set forth in this paragraph for purchases of professional services of a value within the informal solicitation limit specified in the purchasing policy.

1. The Purchasing Agent shall make a reasonable effort to obtain at least three (3) competitive offers by written, electronic, or other means without the necessity of publishing notice of the solicitation. In the event three (3) competitive offers are not obtained, the Purchasing Agent shall document the reasons therefor in the files of the Purchasing Division.

2. The Purchasing Agent shall either:

a. Award the purchase to a responsive and responsible offeror on the basis of demonstrated competence, professional qualifications, and a fair and reasonable price for the city; or

b. Reject all offers. If all offers are rejected, then the Purchasing Agent may cancel the procurement or may reissue the solicitation.

3. Informal solicitation purchases may be executed by a purchase order or by both a written contract and a purchase order as deemed appropriate by the Purchasing Agent. Any such purchase order and written contract may be executed by the Purchasing Agent or the Administrative Services Director.

C. Formal solicitation. The Purchasing Agent shall use the procedure set forth in this paragraph for purchases of professional services of a value within the formal solicitation limit specified in the purchasing policy.

1. The Purchasing Agent shall publish a notice of the solicitation.

2. The City Council shall either:

a. Award the purchase to a responsive and responsible offeror on the basis of demonstrated competence, professional qualifications, and a fair and reasonable price for the city; or

b. Reject all offers. If all offers are rejected, then the City Council may cancel the procurement or may order reissuance of the solicitation.

3. Formal solicitation purchases may be executed by a purchase order or by both a written contract and a purchase order as deemed appropriate by the Purchasing Agent. Any such purchase order may be executed by the Administrative Services Director. Any such written contract may be executed by the Mayor or the City Manager.

(Ord. 1198, 11-21-2017)

A. Open market purchases. The Public Works Director may execute written contracts for public works projects of a value within the open market purchase limit specified in the purchasing policy. Such purchases may be made without competitive bidding.

B. Informal solicitation purchases. The Public Works Director may use the procedure set forth in this paragraph for public works project contract awards within the informal solicitation limit specified in the purchasing policy.

1. The city shall maintain a list of all qualified contractors, identified according to categories of work. The criteria for development and maintenance of the contractors list shall be as determined by the California Uniform Construction Cost Accounting Commission.

2. Not less than ten (10) calendar days before offers will be due, the Public Works Director shall issue an offer invitation notice to all qualified contractors on the list for the category of work being solicited or to all trade journals specified pursuant to Cal. Pub. Cont. Code § 22036, or both, unless the product or service is proprietary. The notice shall describe the project in general terms and how to obtain more detailed information about the project, and shall state the time and place for submission of offers.

3. All received offers that are timely shall be evaluated by the Public Works Department.

4. The Public Works Director shall award the contract to the lowest responsive and responsible offeror or shall reject all offers. If all offers are rejected, then the Public Works Director may cancel the procurement or may reissue the solicitation.

5. If all offers received are in excess of the public works project informal solicitation limit specified in the purchasing policy, then, by adoption of a resolution by four-fifths vote, and upon determining that the city’s cost estimate was reasonable, the City Council may award the contract to the lowest responsive and responsible offeror in an amount up to the limit specified in the purchasing policy for such circumstances.

C. Formal purchases. The Public Works Director shall use the formal solicitation procedure set forth in the UPCCAA for public works project contract awards within the formal solicitation limit specified in the purchasing policy.

D. Execution. Public works project purchases shall be executed by both a written contract and a purchase order. Any such purchase order may be executed by the Purchasing Agent or the Administrative Services Director as applicable. Written contracts for an open market purchase, and for an informal solicitation purchase within the informal solicitation limit specified in the purchasing policy, may be executed by the Public Works Director. All other written contracts may be executed by the Mayor or City Manager.

E. Administration. Public works project contract administration will be the responsibility of the Public Works Department.

(Ord. 1198, 11-21-2017)

A. Special government payments. This chapter does not apply to payments made for Department of Justice background checks, U.S. Postal Service postage, or permit fees imposed by other government agencies.

B. Legal notices. This chapter does not apply to contracts for printing of legal notices in a newspaper of general circulation. The City Council shall annually award such contracts in accordance with Cal. Pub. Cont. Code § 20169 based on price, circulation, and any other matters deemed to affect the value to the public.

C. Emergency procurements.

1. Public works projects. When repairs or replacements are necessary in an emergency, the City Council, by a four-fifths vote, may proceed at once to repair or replace any public facility without adopting plans, specifications, or working details, or publishing a notice of the solicitation, and without otherwise complying with the requirements of this chapter. Prior to taking such action, the City Council shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a solicitation for competitive offers, and that the action is necessary to respond to the emergency. The work may be done by day labor, by contract, or by a combination of the two. If a notice of the solicitation is not published, the city shall comply with Cal. Pub. Cont. Code § 22050. The City Manager is delegated the authority to declare the emergency in such circumstances when it is not feasible for the City Council to meet to do so, and to take such actions as the City Manager deems necessary, consistent with the provisions of this paragraph. 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 Cal. Pub. Cont. Code § 22050.

2. Supplies, materials, equipment and services. In the event of an emergency giving rise to the need to procure supplies, materials, equipment or services without complying with this chapter, the City Council may dispense with bidding or other requirements of this chapter, and may expend any sum to make the procurement required due to the emergency. The City Manager is delegated the authority to declare the emergency in such circumstances when it is not feasible for the City Council to meet to do so, and to take such actions as the City Manager deems necessary, consistent with the provisions of this paragraph. The City Manager’s actions shall be subject to prompt review by the City Council as to the need to continue the emergency action.

D. Developer-funded professional services. This chapter does not apply to purchases of professional services that both:

1. Relate to a private development project under review by the city; and

2. Are solely funded by the project applicant or an affiliate of the project applicant. Such purchases may be executed by a purchasing card transaction, or by a purchase order, or by both a written contract and a purchase order as deemed appropriate by the Purchasing Agent. Any such purchasing card transaction, purchase order, or written contract may be executed by the Purchasing Agent or the Administrative Services Director.

E. Public interest exemption. The competitive offer requirements of this chapter shall not apply to purchases of supplies, materials, equipment, or services when the Purchasing Agent, with the approval of the City Manager, determines that the best interests of the city would be served thereby and the amount of the contract does not exceed twice the formal solicitation limit specified in the purchasing policy. This exemption may not be used for public works projects. Whenever the City Manager approves the use of this exemption, the City Manager may require that the Purchasing Agent solicit informal offers under such conditions and limitations as the City Manager may impose. If the value of a procurement made using this exemption is within the open market limit specified by the purchasing policy, then the purchase may be executed by purchasing card or purchase order as deemed appropriate by the Purchasing Agent. If the value of a procurement made using this exemption is within the informal solicitation limit specified by the purchasing policy, then a purchase order and written contract shall be executed by the Purchasing Agent. For all other procurements made using this exemption, a written contract shall be executed by the City Manager and a purchase order shall be executed by the Purchasing Agent or Administrative Services Director.

F. Sole source procurements. The competitive offer requirements of this chapter shall not apply to purchases of supplies, materials, equipment, or services that are available from only one (1) source. The Purchasing Agent may negotiate with such source to the end that the city receives the desired supplies, materials, equipment, or service on fair terms. Such procurements shall be executed in accordance with paragraph J. below.

G. Piggyback or cooperative purchase procurements. The competitive offer requirements of this chapter shall not apply to purchases of supplies, materials, equipment, or services available through:

1. A valid contract executed by another public agency; or

2. A cooperative purchasing program in which the city’s participation is authorized by law and is deemed to be in the city’s best interests in the determination of the Purchasing Agent. Such procurements shall be executed in accordance with paragraph J. below.

H. Uniformity exemption. The competitive offer requirements of this chapter shall not apply to purchases of supplies, materials, equipment, or services that are required to maintain compatibility, functionality, or conformity with existing designs, products, equipment, facilities, systems, software, technologies, standardizations, and the like or to maintain current warranties or contractual obligations deemed to be in the city’s best interests in the determination of the Purchasing Agent. Such procurements shall be executed in accordance with subparagraph J. below.

I. Best value purchases. If the Purchasing Agent determines that it is not in the city’s best interests to obtain a particular cost-based service using the competitive offer process of §§ 3.24.080 and 3.24.090, then the Purchasing Agent may procure such service on a best value basis. For such procurements, the Purchasing Agent shall determine the vendor that offers the best overall value to the city based on qualifications, experience, past performance, and price. Such procurements shall be executed in accordance with subparagraph J. below.

J. Execution. If the value of a procurement made under subparagraphs F. through I. above is within the open market limit specified by the purchasing policy, then the purchase may be executed by purchasing card or purchase order as deemed appropriate by the Purchasing Agent. If the value of a procurement made under subparagraphs F. through I. above is within the informal solicitation limit specified by the purchasing policy, then a purchase order or both a purchase order and written contract shall be executed by the Purchasing Agent. If the value of a procurement made under subparagraphs F. through I. above is within the formal solicitation limit specified by the purchasing policy, then the purchase shall be subject to City Council approval, a written contract shall be executed by the Mayor or the City Manager, and a purchase order shall be executed by Administrative Services Director.

(Ord. 1198, 11-21-2017)

A. Authority. The Public Works Director or the Purchasing Agent shall have authority to require a bid, performance, payment, or other bond as deemed necessary to protect the best interest of the city. The form and the amount of any required bond shall be described in the solicitation.

B. Return or forfeiture of bid bond. Offerors shall be entitled to return of bid security; provided that a successful offeror shall forfeit its bid bond upon refusal or failure to execute the contract within ten (10) days after the notice of award has been issued. If the purchase is awarded to another offeror, then the amount of the lowest offeror’s bid bond shall be applied by the city to the contract price differential between the lowest offer and the awarded offer, and any surplus shall be returned to the lowest offeror. If all offers are rejected and the solicitation is reissued, then the amount of the lowest offeror’s bid bond may be used to offset the cost of receiving new offers, and any surplus shall be returned to the lowest offeror.

(Ord. 1198, 11-21-2017)

For any City Council-approved purchase, the Administrative Services Director may execute change orders that cumulatively do not exceed the contingency limit specified by the City Council. If no contingency limit has been specified, then the Purchasing Agent and the Administrative Services Director may execute change orders that cumulatively do not exceed five percent (5%) of the original purchase amount or five thousand dollars ($5,000), whichever is less.

(Ord. 1198, 11-21-2017)

A. Reports. All departments shall submit to the Purchasing Agent, at such times and in such form as the Purchasing Agent shall prescribe, reports showing stocks of surplus personal property.

B. Interdepartmental transfers. The Purchasing Agent may transfer any usable surplus personal property to another department in lieu of filling requisitions for the purchase of new and additional stocks of the same or similar articles.

C. Estimate of value. The Purchasing Agent shall make an estimate of the value of all surplus personal property that is not usable by any department.

D. Exchange, trade-in, or sale. The Purchasing Agent may exchange, trade-in, or sell any surplus personal property that is not usable by any department.

1. For items with an estimated value within the open market limit specified in the purchasing policy, the Purchasing Agent shall make a reasonable effort to obtain a fair price by written, electronic, or other means without the necessity of publishing notice of the sale or seeking competitive offers.

2. For items with an estimated value within the informal solicitation limit specified in the purchasing policy, the Purchasing Agent shall make a reasonable effort to obtain at least three (3) competitive offers by written, electronic, or other means without the necessity of publishing notice of the sale.

3. For items with an estimated value within the formal limit specified in the purchasing policy, the Purchasing Agent shall publish notice of the sale. Such notice shall include a general description of the supplies, materials, or equipment to be sold; shall state where the solicitation documents may be secured; and shall state the time and place for opening of offers.

4. The Purchasing Agent shall also solicit offers from responsible vendors whose names are on the vendor list or by means of a contracted professional auction services.

E. Employee offers. Employee offers will be considered on all publicly advertised sales; however, no employee whose job responsibility includes the administration of such surplus personal property sales shall be permitted to bid on or purchase such items.

F. Scrapping, donation, and destruction. If the Purchasing Agent is unable to exchange, trade-in, or sell surplus personal property, then the Purchasing Agent shall document the reasons therefore in the files of the Purchasing Division and may dispose of such articles through scrap sale, donation to another public agency, destruction, or any other disposition thereof.

G. Retired police dogs. The Purchasing Agent, upon approval of the City Manager and Police Chief, may sell a retired police dog to its handler or another member of the Police Department without need for competitive bidding.

H. Payments. Payments shall be made in full prior to transfer of the property to the winning bidder. Deposits shall be made into the general fund unless otherwise restricted by law.

(Ord. 1198, 11-21-2017)