Chino Hills Municipal Code Ch. 3.16 Purchasing System

Footnotes:

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Editor's note— Ord. No. 271, §§ 2, 3, adopted May 27, 2014, repealed former Ch. 3.16, §§ 3.16.010—3.16.330, and enacted new provisions as herein set out. Former Ch. 3.16 pertained to similar subject matter and derived from Ord. No. 91-05, §§ 3.12.010—3.12.330; Ord. No. 130, § 2, adopted in 2000.

This chapter is adopted for the purpose of authorizing city officers and employees to procure materials, supplies, and equipment and establishing the manner by which such actions and other related actions may occur. Nothing in this chapter is intended to, nor does it, apply to public projects as defined by state law.

(Ord. No. 271, § 3, 5-27-2014)

A. There is created the position of Purchasing Agent. The City Manager appoints the Purchasing Agent(s) by written designation. The City Manager may appoint one or more Purchasing Agent(s), and the City Manager may limit the responsibilities to a department, division, or some other organizational unit within the City as determined by the City Manager in the written designation. The duties of the Purchasing Agent may be combined with those of any other office or position. In the absence of a designated Purchasing Agent, the City Manager will serve as the Purchasing Agent.

B. The Purchasing Agent is responsible for the following:

1. The procurement of materials, supplies, and equipment;

2. The administration of this chapter and implementation of any administrative regulations for purchasing, any purchasing policies and procedures promulgated by the City Council pursuant to this chapter and such additional regulations that the City Council may adopt (such regulations, policies and procedures are collectively referred to as " Purchasing Policy");

3. Implementation of any additional administrative regulations adopted by the City Manager for the internal management and operation of purchasing procurement; and

4. Materials, supplies, and equipment for the City must be purchased in accordance with this code, the Purchasing Policy and any additional administrative regulations adopted by the City Manager for the internal management and operation of purchasing procurement.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 1, 1-10-2023)

Editor's note— Ord. No. 391, § 2, adopted Jan. 10, 2023, repealed § 3.16.030, which pertained to purchasing agent's powers and duties and derived from Ord. No. 271, § 3, adopted May 27, 2014.

A. The following are authorized to award a purchase order, on the City's behalf:

1. The City Council;

2. The City Manager up to and including fifty thousand dollars ($50,000.00); and

3. Department Directors up to and including twenty-five thousand dollars ($25,000.00).

B. Upon written approval by the City Manager and Department Director, approved departmental staff are authorized to procure goods up to and including ten thousand dollars ($10,000.00).

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 372, § 4, 9-14-2021; Ord. No. 391, § 3, 1-10-2023)

Editor's note— Ord. No. 391, § 4, adopted Jan. 10, 2023, repealed § 3.16.050, which pertained to requisitions and derived from Ord. No. 271, § 3, adopted May 27, 2014.

Purchases of materials, supplies, and equipment shall be made only by purchase order except for certain purchases up to and including ten thousand dollars ($10,000.00) following the procedures set forth in the Purchasing Policy.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 5, 1-10-2023)

Except in cases of emergency or an urgent event authorized by subsections E and F, respectively, of Section 3.16.110 of this code, a purchase order shall not be issued, nor shall a change order be processed for materials, supplies, or equipment unless there exists an unencumbered appropriation against which such purchase is to be charged or the most recent City Council budget resolution otherwise authorizes such appropriation.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 5, 1-10-2023)

For purchases up to and including ten thousand dollars ($10,000), competitive bidding is not required but shall be used when prudent and practical. Prudent judgment shall be used at all times.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 5, 1-10-2023)

For purchases over ten thousand dollars ($10,000.00) and up to and including fifty thousand ($50,000.00), a reasonable attempt must be made to obtain three written competitive quotes prior to submitting a requisition for a purchase.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 5, 1-10-2023)

Purchases with an estimated value of over fifty thousand dollars ($50,000.00) require the following:

A. Notices inviting formal bids must be mailed and/or transmitted electronically at least ten (10) working days before the deadline for submitting bids to all vendors on the department's list for the category, the materials, supplies, or equipment is being sought. The notice must also be posted on the City's website, at least ten (10) working days prior to the date of the bid opening.

B. The notice must describe the materials, supplies, or equipment needed in general and generic terms, identify security required for the bid, if applicable, how bid specifications can be obtained, and designate the deadline and place for submitting formal bids.

C. The Purchasing Agent may require bidders to secure bids and performance in a manner approved by the Purchasing Agent and in a form approved by the City Attorney. Unsuccessful bidders are entitled to the return of bid security within sixty (60) days after the date of the award.

D. Formal bids must be submitted to the City Clerk's Office in a sealed envelope and be clearly marked as a bid along with the bidder's name and bid title written on the outside of the envelope. The City Clerk's Office will open properly submitted bids at the time and place stated in the notice inviting bids. A written record and tabulation must be made at the time all bids are received and then opened.

E. Bids may be evaluated based upon lowest bid amount, compliance with bid specifications, responsibility of the bidder, or any other reasonable matter identified in the notice soliciting bids.

F. If the City does not receive any bids, the City Council may:

1. Abandon the purchase;

2. Authorize rebidding the purchase on an informal basis; or

3. Authorize purchasing the materials, supplies, or equipment on a direct negotiated purchase.

G. If the City Council determines the bids received are unacceptably high, or specifications were misleading, the City Council may reject any bids presented and the item may be rebid.

H. The City Council may reject all bids or award the purchase order to the best qualified bidder whose bid fulfills the purpose intended according to criteria designated in the solicitation, provided that the purchase order amount is within the unencumbered appropriation for that item. The City Council may waive any minor bid irregularities.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 372, § 5, 9-14-2021; Ord. No. 391, § 5, 1-10-2023)

Any change to an approved purchase which results in a cost in excess of the award amount may be approved by those authorized in Section 3.16.040 above, provided that the total of all change orders, and the original amount of the purchase order, does not cumulatively exceed the respective authority limits authorized in Section 3.16.040 of this code. Notwithstanding the above, if a purchase order was approved by the City Council, all change orders must go back to the City Council for approval, unless the City Council provided change order authority to the City Manager or Department Director when the purchase order was approved.

(Ord. No. 391, § 6, 1-10-2023)

Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements of this chapter may be dispensed within any of the following instances:

A. Under Ten Thousand Dollars ($10,000.00). When the amount involved is ten thousand dollars ($10,000.00) or less.

B. Sole Source. When the commodity can be obtained from only one vendor, appropriate written justification shall be provided to and approved by the City Manager or City Council, according to the applicable authority limits in Section 3.16.040 above.

C. Brand Name. When the City Manager or City Council, according to the applicable authority limits in Section 3.16.040 above, finds that the purchase of a specific brand name, make or model is necessary to match existing City equipment.

D. Less Than Three Quotes Obtained. After a reasonable attempt has been made to obtain bids, and it has been determined in writing by the Department Director that the three responsive bids cannot be obtained from responsible bidders.

E. Emergency. The City Manager may authorize the purchase of materials, supplies, and equipment, when an emergency is deemed to exist and it is determined that service involving the public health, safety, or welfare would be interrupted if the normal procedures were followed. A declaration of emergency as set forth in this code is conclusive evidence of such an event. All purchases which would otherwise require formal bidding procedures made pursuant to this section shall be submitted to the City Council for ratification at the next regular City Council meeting after the purchase is authorized for which legally required meeting notice can be provided.

F. Urgent. Purchases may be made without competitive bidding when time is of the essence to avoid interruption of a City event. For urgent purchases, written approval shall be obtained prior to purchase from the City Manager. Such written approval can be obtained through email or other means of electronic communication that can be printed for record. Notwithstanding the above, if every reasonable attempt to obtain written approval from the officials above prior to purchase has been unsuccessful, then the Department can proceed on oral approval, but such oral approval must be memorialized in writing to the official providing such oral approval, documenting the time and date of such approval, as soon as practicable. All urgent purchases which would otherwise require formal bidding procedures made pursuant to this section shall be submitted to the City Council for ratification at the next regular City Council meeting after the urgent purchase is authorized for which legally required meeting notice can be provided.

G. Cooperative Purchasing. Competitive procedures need not be followed where the City Council, City Manager or Department Director (depending on which has the authority to award the purchase) identifies a cooperative competitive bidding procedure, being prepared by and processed through a federal, state, county, local or other public agency, or a cooperative purchasing entity set up by or utilized by such governments or public agencies, and finds that the procurement process utilized by the entity is substantially similar to the provisions of this chapter and achieves the objectives of this chapter. Under such circumstances, the City may join into an existing written purchase order obtained within the last sixty (60) months through competitive bidding process prepared by and awarded by a federal, state, county or local or other public agency, or a cooperative purchasing entity. City Council consent is required for such arrangements where the estimated value of the materials, supplies, or equipment is more than fifty thousand dollars ($50,000.00).

H. Interagency Purchases. Any agreement involving acquisition of materials, supplies, or equipment entered into with another governmental entity.

I. Waiver. When the City Council determines a waiver of bidding procedures is required or desirable and in conformance with state law.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 7, 1-10-2023)

The Finance Director is responsible for the transfer and disposal of surplus City property process. "Surplus property" is used generically to describe City property such as but not limited to materials, supplies, equipment, and vehicles that are no longer needed or useable by the holding department. The Finance Director has the authority to declare item(s) with a value estimated at twenty-five thousand ($25,000.00) or less as surplus. Property disposal may occur by public auction, competitive sealed bids, or exchange or trade in for new goods. The sale or lease of surplus property to a governmental, public, or quasi-public agency may be without advertisement for or receipt of bids. Surplus property without salvage value, as determined by the Finance Director, should be disposed of in a manner that salvages recyclable components. The City Council must direct disposal of surplus property with an estimated value of more than twenty-five thousand dollars ($25,000.00) based upon a recommendation from the City Manager. The Finance Director must keep regular logs showing surplus property disposed of, the method of disposal, and the amounts recovered from its disposal and maintain records for public inspection relative to the disposal of surplus property for a period of time in compliance with state law and the City's records retention schedule. Upon the advance written approval of the City Manager, surplus property may be donated to governmental, public or quasi-public agencies, charities, or non-profit organizations. Proceeds from the sale of surplus property must be deposited into the appropriate City fund.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 7, 1-10-2023)

In addition to the provisions of this chapter, the procurement of materials, supplies and equipment that are funded in whole or in part with federal grant funds shall be subject to applicable Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of Management and Budget, currently codified at 2 U.S. Code of Federal Regulations part 200.

(Ord. No. 391, § 8, 1-10-2023)

The City Council is authorized to promulgate the policies and administrative regulations to implement this chapter. The City Manager is authorized to adopt additional administrative regulations and procedures for the internal management and operation of the purchasing function.

(Ord. No. 271, § 3, 5-27-2014; Ord. No. 391, § 9, 1-10-2023)