Ceres Municipal Code Ch. 03 Formal Purchasing Procedures

Except as otherwise provided in this title, purchases of supplies, equipment, or services, over $25,000.00 shall be by formal bid awarded to the lowest responsible bidder, pursuant to the procedure described in this section.

A. Notice. The Purchasing Officer shall request that the City Clerk call for formal bids by publishing a notice inviting bids at least once in a newspaper of general circulation in the City not less than ten calendar days prior to the date set for opening bids. The Purchasing Officer, when he or she deems it to be advisable, may require more than one advertising of the request for bids. The notice inviting bids shall be prepared and shall include: a general description of the supplies or nonprofessional services to be purchased, where the bid instructions and specifications may be obtained, the time and place for the bid openings, and whether a bid deposit or bond, or other security, such as performance, payment or maintenance bonds, will be required.

B. Bidder's security. When deemed necessary by the Purchasing Officer, or a department head authorized pursuant to section 3.04.030 [1] of this chapter, bidder's security may be prescribed by the Purchasing Officer in the public notices inviting bids. Where required, each bidder shall be required to submit with the bid as bid security, either in cash, by cashier's check or certified check in favor of and payable to the City, or by surety bond, an amount determined to be sufficient, but not to exceed ten percent of the total amount of the bid. The bid security shall be returned to all bidders except the successful bidder within ten days of the contract being awarded. The bid security shall be returned to the successful bidder once the contract is executed and any required bonds or securities required under the contract have been deposited, as required. If the successful bidder refuses or fails to execute the contract or post any required bonds within 20 days of receiving the contract award from the City, the bid security shall be forfeited to the City and the Purchasing Officer shall draw the money due on such bid security and pay the same, or any cash deposited, into the City treasury. The bid security shall not be returned to the defaulting bidder in such case unless the City Council approves the return of the bid security in whole or in part. Upon good cause being shown, the Purchasing Officer may extend the time for the bidder to enter the contract for a period not to exceed 30 days.

C. Bid opening procedure. Sealed bids shall be submitted to the Purchasing Officer, or a department head authorized pursuant to this title, and shall be identified as bids on the envelope. All bids shall be made upon forms to be prepared by the City and furnished upon application. The preparation of such forms by bidders shall be subject to procedures formulated by the Purchasing Officer and shall include controls over erasures, corrections, and interlineations. Bids shall be opened by the City Clerk or his or her designated representative in public, at the time and place stated in the public notice. Bids received after the deadline established in the notice inviting bids shall be returned to the bidder unopened. 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.

D. Award of contracts and purchase orders. Except as otherwise provided in this chapter, contracts and purchase orders shall be awarded to the lowest responsible bidder, taking into consideration the local vendor preference provided in title 4, ch. 04.

E. Tie bids. If two or more bids are received for the same total amount or unit price, quality and service being equal, City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders.

F. Performance bonds. The Purchasing Officer, or a department head authorized pursuant to this title, shall have the authority to require a performance bond before entering into a contract. The bond will be in an amount reasonably necessary to protect the best interest of the City. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.

G. Splitting or separating purchases or contracts. Contracts for the purchase or supplies, equipment or services may not be split or separated into smaller work orders for the purpose of evading the provisions of this section.

(Ord. No. 2019-1053, § 4, 11-12-2019)

Footnotes:

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Editor's note— Section 3.04.030 of the prior Code has not been moved to the current Code.

If the bidder to whom the contract is awarded shall fail to enter into the contract as required, the City Council may declare the award to that bidder a nullity, and award the contract to the next lowest responsible bidder, or it may readvertise for bids, or dispense with competitive bidding, as provided in this chapter.

(Ord. No. 2019-1053, § 4, 11-12-2019)

In the event the City Council rejects any and all bids, receives no bids, or in the event the bidder to whom a contract award is made fails to enter into the contract as required and the City Council does not make an award to the next lowest responsible bidder, the City Council may readvertise for bids, or may dispense with competitive bidding pursuant to state law.

(Ord. No. 2019-1053, § 4, 11-12-2019)

Section 4.03.010 of this chapter shall not apply to the purchase of supplies, services, equipment, or furnishings under the following circumstances:

A. The Purchasing Officer finds that such supplies, services, or equipment are unique because of the quality, durability, availability, or fitness for a particular use and are available from only one source, or if available from more than one source, bidding is not likely to result in the lowest price;

B. The Purchasing Officer finds that circumstances require the immediate purchase of such supplies, equipment services, or furnishings;

C. When the amount of the purchase is less than $2,000.00;

D. Purchases of supplies, equipment, or furnishings are made through a cooperative purchase agreement.

(Ord. No. 2019-1053, § 4, 11-12-2019)

Where any provision of this chapter requires award of the contract for supplies or nonprofessional services to the "lowest responsible bidder," it shall mean a responsible bidder who submits the lowest monetary bid that is a responsive bid. In determining whether a bidder is a responsible bidder, the City may use any of the following criteria to evaluate bidders:

A. The ability, capacity and skill of the bidder to perform the contract, provide the services required, or effectuate the transaction;

B. The ability of the bidder to perform the contract or effectuate the transaction within the time specified, without delay;

C. The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

D. The quality of the bidder's performance on previous purchases by, or contracts with, the City;

E. Prior and current compliance by the bidder with applicable law, including, without limitation, compliance with any applicable licensing requirements;

F. The sufficiency of the bidder's financial and staffing resources for performing the contract or providing supplies or nonprofessional services;

G. The quality, availability and adaptability of the supplies or nonprofessional services to the particular use required; and

H. The ability of the bidder to provide future maintenance, repair parts and services for the supplies provided.

(Ord. No. 2019-1053, § 4, 11-12-2019)

The Purchasing Officer, or a department head authorized pursuant to this title, shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The Purchasing Officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. No. 2019-1053, § 4, 11-12-2019)