Cathedral City Municipal Code Art. 2 Purchasing of Goods and Services

Purchases of goods and services shall be by bid procedures. Bidding may be dispensed with under conditions stated in this chapter.

(Ord. 813 § 1, 2018)

A. Local Preference Option. The purchasing agent may, when seeking bids for goods, notify bidders the bids will be evaluated in a manner that gives preference to local vendors as provided for in this section. The local preference option shall not be exercised unless notice of such option was given in the solicitation.

B. Preference to Local Vendors. A solicitation for goods may include notice that, if the bid of a local vendor, is no more than five percent higher than the otherwise lowest bid, the purchasing agent may accept the local vendor's bid on finding it is in the best interest of the city. A local vendor is defined as a vendor that pays sales taxes from a Cathedral City address so that one percent of the net sales price will be remitted by the state of California to the city.

C. Preference to Coachella Valley Vendors. The solicitation may also include notice that, if the bid of a Coachella Valley vendor is no more than three percent higher than the otherwise lowest bid and a local vendor's bid has not been accepted under subsection B, the purchasing agent may accept that Coachella Valley vendor's bid on a finding it is in the best interests of the city. A Coachella Valley vendor is defined as a vendor that has a valid physical business address, excluding post office boxes, located within one of the nine incorporated cities of the Coachella Valley or an unincorporated area of Riverside County within the boundaries of the Coachella Valley Association of Governments. Furthermore, the business has operated or performed business on a day-to-day basis for at least six months prior to the bid opening date, and holds a valid business license by a jurisdiction located in the Coachella Valley.

(Ord. 813 § 1, 2018)

Except as otherwise provided in this chapter, purchases of goods and services of an estimated value greater than seventy-five thousand dollars shall be by formal sealed written competitive bids. Awards for such expenditures shall be made by the city council to the lowest responsive and responsible bidder pursuant to the formal bid procedure prescribed in this section unless the contract is being awarded based on the best value to the city as provided for in Section 3.12.180. The determination of "lowest responsive and responsible bidder" shall be at the discretion of the city council pursuant to findings and recommendations presented by the purchasing agent at the time of award of contract, and should account for the local vendor preference.

A. Budget Verification. Prior to bid solicitation, the purchasing agent shall confirm the requested purchase is identified in the currently adopted biennial budget. For items not identified in the currently adopted biennial budget, the requesting department shall be required to receive City Council approval prior to bid selection.

B. Bid Specifications. Bid specifications shall be prepared and include the criteria that must be met to be considered the lowest responsive and responsible bidder.

C. Notice Inviting Bids. Notices inviting formal bids shall be published at least ten days prior to the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation in the city. In addition, the purchasing agent shall also solicit formal sealed bids from responsible suppliers whose names are on the approved vendors list, or who have made written request their names be added thereto. The purchasing agent shall advertise the pending formal purchases by posting a notice on the public bulletin board at the city offices. Notice inviting formal bids shall include a general description of the article or service desired, state where bid documents and specifications may be secured, and the time and place for opening bids.

D. Bond Requirements. The city council shall have authority to require a faithful performance bond or other bonds before entering into a contract for goods or services. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

E. Formal Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent and be identified as "bids" on the envelope. The purchasing agent, or designee, shall publicly open all bids at the time and place stated in the public notices. All bids received shall be available for public inspection at the time and place of opening, and thereafter, in the city clerk's office during regular business hours. Bids must be received prior to the bid opening to be considered.

F. Rejection of Formal Bids. In its discretion, the city may reject any and all bids presented and cause re-advertising for bids pursuant to the procedure prescribed in this chapter. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed in this chapter.

(Ord. 813 § 1, 2018)

If two or more formal 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 choose whichever of the following options it deems to serve the best interest of the city:

A. Select one bid, giving preference to a business located within Cathedral City; or

B. Reject all bids and re-solicit for bids; or

C. Reject all bids and authorize negotiation of an agreement between the city and one of the equivalent bidders.

(Ord. 813 § 1, 2018)

When no formal bids or no responsive bids are received, the purchasing officer is authorized to negotiate for written proposals, and a recommendation shall be presented to the city manager and award, if any, shall be made in accordance with applicable provisions prescribed in this chapter.

(Ord. 813 § 1, 2018)

A. Purchases of goods and services of an estimated value in the amount of seventy-five thousand dollars or less may be made by the purchasing agent in the open market and without observing the formal competitive bid procedures prescribed in this chapter. Such purchases shall be based on at least three competitive quotations, whenever practical, to the lowest responsive and responsible bidder, unless the purchase is being made based on best value to the city as provided for in Section 3.12.180.

B. The purchasing agent shall solicit informal bids by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the city offices.

C. The purchasing agent shall keep a written record of all open market purchases and informal bids for a period of one year after placing the order. This record, while so kept, shall be open to public inspection.

(Ord. 813 § 1, 2018)

Notwithstanding any provision of this chapter to the contrary, the formal and informal bidding procedures and requirements of this article may be dispensed with in any of the following instances:

A. When the commodity can be obtained from only one vendor.

B. The city manager may authorize the purchase of goods and services where an emergency is deemed to exist and it is determined the public health, safety or welfare would be threatened if the normal procedure were followed. Emergency purchases of seventy-five thousand dollars or more shall be submitted to the city council for ratification at the next regular council meeting after the purchase is authorized.

C. Unless otherwise provided by state or federal law, the city council may authorize the execution of contracts for general services, professional and consultant services without observing the bidding requirements provided in this chapter.

D. Unless otherwise provided by state of federal law and provided there exists an unencumbered appropriation in the fund account against which the expense is to be charged, the city manager may enter into a contract for goods, general services or professional and consulting services without observing the bidding procedure in this chapter where the amount of the contract or purchase does not exceed the amount of seventyfive thousand dollars.

E. Any agreement involving acquisition of goods and services entered into with another governmental entity, or through any advantageous governmental contract approved by the city council, or to the purchase of election supplies; or to purchases from a vendor or manufacturer which, through the city's bidding procedure, or through the competitive bidding procedures of another governmental entity in the state of California, has established a price at which such a vendor or manufacturer is willing to sell to the city. To avail the city of the benefit of the rate established by other entities' bidding procedures, that other entity's bidding procedure must have received more than one responsive bid, and the bid award must have occurred within one year prior to the city's issuance of a purchase order.

F. Secondhand, previously-owned or used merchandise may be purchased without competitive bidding under procedures established by the city manager, which assure a variety of sources are considered, when feasible. For any proposed purchase, the cost of which will be exceeding seventy-five thousand dollars, approval of the utilization of such process by the city council shall be required in advance.

(Ord. 813 § 1, 2018)

The city council shall by resolution prescribe any additional procedures, rules and regulations governing the solicitation, selection and award of proposals or bids for the furnishing of personal services or professional or consulting services or for other contractual services. Such procedures, rules and regulations shall have the dual purpose of obtaining both the highest quality and most cost-effective contractual services. Local preference may be given in accordance with this chapter, as allowed for by state and federal law.

(Ord. 813 § 1, 2018)

The city may opt to award a contract subject to formal or informal procedures under Section 3.12.120 or 3.12.150 based on the best value provided the city rather than the lowest responsive and responsible bidder. The determination as to which methodology will be used shall be made prior to the publication of solicitation materials by the city, and the city may reserve the right to use either methodology in its solicitation materials.

Where a contract may be awarded based on the best value to the city, in determining the vendor that will provide the best value to the city consideration is to be given to quality and performance of the goods and services to be provided by the vendor. Criteria for determining the best value may include, but not be limited to, the following:

A. The cost of the goods and nonprofessional services;

B. The ability, capacity, and skill of the vendor to perform the contract and to provide the goods and nonprofessional services requested;

C. The ability of the vendor to provide the goods and nonprofessional services requested promptly or within the time specified, without delay or interference;

D. The ability of the vendor to demonstrate the attributes of trustworthiness, quality, fitness, capacity, and experience to satisfactorily perform the contract;

E. The character, integrity, reputation, judgment, experience, and efficiency of the vendor;

F. The quality of the vendor's performance on previous purchases or contracts with the city;

G. The ability of the vendor to provide future maintenance, repair parts, and services for the use of the goods and supplies, equipment, or materials purchased; and

H. The ability of the vendor to demonstrate its prior, current, and continued compliance during the contract term with all applicable federal, state, and local laws, statutes, ordinances and all lawful orders, rules, and regulations promulgated thereunder.

(Ord. 813 § 1, 2018)