Chula Vista Municipal Code Ch. 2.56 Purchasing System

Sections:

• 2.56.010 Centralized purchasing system established.

• 2.56.020 Purchasing Agent – Appointment – Powers, duties, and authority.

• 2.56.030 Option to delegate authority for purchases of supplies and equipment.

• 2.56.040 Requisitions or estimates – Required revisory changes permitted.

• 2.56.050 Required contract forms – City Attorney.

• 2.56.060 Budget, availability of funds required.

• 2.56.070 Contracts for supplies, equipment, or services exceeding $100,000 – Formal competitive bid procedure.

• 2.56.080 Contracts for supplies, equipment, or services exceeding $100,000 – Competitive bidding process – City Council or City Manager approval required.

• 2.56.090 Contracts for supplies, equipment, or services of $100,000 or less – Open market procedure and Purchasing Agent approval required.

• 2.56.100 Emergency purchases.

• 2.56.110 Professional services exception – Selection process for architectural, engineering, environmental, land surveying, legal, construction project management, and other professional services.

• 2.56.120 Supplies, materials, and equipment no longer used – Disposition procedure.

• 2.56.130 Sale of real property – Procedure.

• 2.56.135 Acquisition of real property interests.

• 2.56.140 Cooperative purchasing agreements.

• 2.56.145 Job order contracts. 2.56.150 Reports to City Council. 2.56.160 Contracts on public works. 2.56.170 Automatic indexed adjustments.

***** For Charter provisions for centralized purchasing by the City, see § 1010; for Charter provisions regarding City finances generally, see Charter §§ 1000 – 1017; for statutory provisions regarding financial powers of cities generally, see Gov. Code § 37201, et seq.

Cross Reference: Lost or Stolen Property, see Ch. 2.60 CVMC.

Prior legislation: Prior code §§ 2.501 – 2.516; Ords. 1197, 1821, 1891, 1977, 2310, 2369 and 2517.

Pursuant to Section 1010 of the City Charter, there is established a centralized purchasing system for City departments, offices, and agencies, in order to (1) establish procedures for the purchase, lease or other acquisition of services, supplies and equipment, at the lowest possible cost commensurate with quality needed, (2) exercise positive financial control over purchases, (3) clearly define authority for the purchasing function, and (4) assure the quality of purchases. Pursuant to Section 1100.7 of the Public Contract Code and the City Charter, except as provided by ordinance or as required by law, the City of Chula Vista is exempt from the requirements of the California Public Contract Code. (Ord. 3420 § 1(A), 2018; Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

The Director of Finance shall appoint, in accordance with Section 507 of the Charter, a Purchasing Agent, who shall be in the unclassified service as provided in Section 500 of the City Charter, and such deputies as may be necessary. The Purchasing Agent shall be the head of the purchasing division of the Finance Department and shall conduct a centralized purchasing system. The Purchasing Agent shall have the power, and it shall be his or her duty, to purchase or contract for all supplies, equipment, and services needed by any and all departments, offices, and agencies of the City, subject to the terms and conditions provided for in this chapter. The Purchasing Agent shall have the authority to:

A. Negotiate, purchase, and obtain supplies, equipment, and contractual services used by the City in accordance with City and state law, and such rules and regulations as are prescribed by the Director of Finance, subject to the review of the City Manager or by the City Council;

B. Act to procure for the City the needed quality in supplies, equipment, and contractual services, at least expense to the City;

• C. Endeavor to obtain as full and open competition as possible on all purchases and sales;

• D. Prepare and recommend to the Director of Finance rules, regulations and procedures governing the purchase of supplies, equipment, and services for the City, and amendments thereto as necessary;

E. Keep informed of current developments in the field of purchasing, prices, market conditions, and new products, and secure for the City the benefits of research done in the field of purchasing by other governmental jurisdictions, national technical societies, trade associations having national recognition, and by private businesses and organizations;

• F. Prescribe and maintain such standardized contracts, subject to the approval of the City Attorney, and other rules and regulations as are reasonably necessary for the operation of the purchasing system;

• G. Prepare and adopt a standard purchasing nomenclature for City departments and suppliers;

• H. Exploit the possibilities of various cost-effective purchasing strategies, such as buying “in bulk” and cooperative purchasing, to take full advantage of favorable pricing;

I. 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 department or which have become unsuitable for City use and the scrapping or surveying of unsalable surplus items;

J. Take such other actions consistent with the provisions of this chapter, all other applicable laws, and current good purchasing practices that are reasonable and appropriate to effectively operate the City’s centralized purchasing system;

K. Control and supervise all existing and future storerooms and warehouses of regularly purchased City supplies and equipment. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

The Purchasing Agent may authorize a department, office, or City agency to purchase supplies, services and equipment directly when he or she determines that direct purchasing can improve efficiency and/or reduce costs and is in the best overall interests of the City. All direct purchasing authorized by the Purchasing Agent under this section shall be carried out in compliance with the procedures established by this chapter and on such forms or through such purchasing mechanisms as shall be determined by the Purchasing Agent. Direct purchases may be effected through the use of procurement cards or other similar mechanisms. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

All City departments and offices shall file with the Purchasing Agent detailed requisitions or written estimates of their requirements for supplies, equipment, and services, in such manner, and at such times, as the Purchasing Agent shall prescribe. The Purchasing Agent shall examine each requisition or estimate and shall have the authority to revise it as to quantity, quality, or estimated cost; provided, however, that a change in quality will not vary substantially from the standards of the using department or office; and provided further, that the using department head, or designee, is first consulted. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

All purchase orders and contracts for purchase of supplies, equipment or services shall be on forms prescribed or approved by the Purchasing Agent and City Attorney. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

For all purchases or contracts for services, the Purchasing Agent shall certify that (1) the required purchase price or compensation is provided for in the budget of the using department or has been approved by the City Council by resolution, and (2) there is to the credit of each using department concerned a sufficient and appropriate unencumbered balance in excess of all unpaid obligations to defray the cost of such purchase or contract. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. In General. All supplies, equipment, and services (except professional services per CVMC 2.56.110), when the maximum amount to be paid by the City during the term of the contract (including all optional term extensions and scope of work expansions), as determined by the Purchasing Agent, after consultation with the Director of the procuring department, (the “maximum contract amount”) exceeds $100,000, shall be awarded to the lowest responsive and responsible bidder submitting the best bid in accordance with the competitive bidding process set forth in CVMC 2.56.080.

• B. Exceptions. The following purchases contain exceptions to the standard competitive bidding requirements:

  1. Public Works. Contracts on public works are governed by Section 1009 of the Charter, as implemented by CVMC 2.56.160, City Council policies, and departmental procedures.

  2. Professional Services. Contracts for certain professional services that are governed by CVMC 2.56.110.

3. City Council Waiver. The City Council may waive the competitive bidding requirements if determined by resolution of the City Council that the competitive bidding requirements as applied to that contract are impractical, impossible or that City interests would be materially better served by applying a different purchasing procedure approved by the Purchasing Agent as being consistent with good purchasing practices.

4. Single/Sole Source. A commodity or service available from only one known source as the result of unique performance capabilities, manufacturing processes, compatibility requirements or market conditions, or as the result of a single, unsolicited proposal, shall not be subject to competitive bidding requirements, in the discretion of the Purchasing Agent, after consultation with the Director of the procuring department.

5. Emergency. Emergency purchases are governed by CVMC 2.56.100.

6. Design-Build Projects. Projects for which the City is utilizing a design-build process, as defined in Charter Section 1009, shall adhere to the alternative processes set forth in applicable City ordinances, policies, procedures, and standards. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

The following competitive bidding and award process shall apply to contracts for supplies, equipment and services with a maximum contract amount in excess of $100,000:

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the article or service, and shall be published by the Purchasing Agent at least once on the City’s Internet website, or in a newspaper of general circulation in the City, and any other method of advertising that is determined by the Purchasing Agent to be in the City’s best interest, at least 10 days prior to the bid opening date.

B. Bidder’s Security. The Purchasing Agent may require a bidder’s security in an amount equal to 10 percent of the bid, either in cash, certified or cashier’s check, or surety bond approved by the City Attorney and the Risk Manager. In the event a bidder’s security is required, no bid shall be considered unless the required security is submitted therewith. All bidder’s security is refundable, except in the case of a successful bidder who shall forfeit this security if the bidder fails to execute a contract within 10 days after the notice of award has been mailed or personally delivered, or otherwise fails to comply with the requirements to complete the transaction.

C. Bid Opening. Sealed bids shall be submitted to the Purchasing Agent, who shall open them in public at the time and place stated in the public notices. A secure, Internet-based system or other appropriate medium may be used in lieu of sealed bids opened in public; provided, that the Purchasing Agent has approved the system for accuracy, confidentiality, and reliability. A tabulation of all bids received shall be available for public inspection in the office of the Purchasing Agent, or on the City’s Internet website, for a period of not less than 30 calendar days after the bid opening. The Purchasing Agent may delegate this responsibility hereunder to responsible assistants and deputies.

D. Compilation of Bids and Recommendations. Following the opening of formal bids, the Purchasing Agent shall compile all of the bids and submit them to the requesting department head, together with a recommendation as to which bid he or she considers best, taking into consideration the amount of money bid, compliance with specifications, and responsiveness and responsibility of the bidder. The responsiveness of the bidder shall be determined by comparing the bid to the bid specifications and bid submittal requirements. In determining the responsibility of the bidder, the Purchasing Agent will be guided by, but not limited to, a consideration of the following factors:

1. The experience of the City in dealing with the low bidder;

2. The experience of other governmental agencies known to the Purchasing Agent in their previous transactions with the low bidder;

3. Knowledge of the quality and fitness of the product offered by the low bidder, substantiated by reports of using departments within the City or other governmental agencies;

4. Options to renew contracts for continuing purchases at the same bid price or with reasonable fixed or capped increases, in those circumstances where price increases are expected or have been experienced in the past;

5. Financial stability and business standing of the low bidder.

The requesting department head shall forward the compilation of bids and his or her recommendation with respect to an award to the City Manager, who in turn, will forward a recommendation for award to the City Council. The Purchasing Agent may reject any or all bids, or any one or more commodities or contractual services included in the proposed contract, if it is determined that the public interest will be served thereby.

E. Contract Awarding Authority. The City Council shall be the authority responsible for awarding contracts (“awarding authority”) with a maximum contract amount over $250,000; the City Manager shall be the authority responsible for awarding contracts with a maximum contract amount over $100,000 and up to $250,000. (For purposes of this chapter, City Manager authority shall include the City Manager’s designation of authority to the Purchasing Agent, or other designee, in accordance with an administrative City policy.) The awarding authority may make an award of contract to the lowest responsive and responsible bidder submitting the best bid in all respects.

F. Rejection of Bids – Alternative Procedures. The awarding authority may reject any or all bids, direct City forces to provide the required commodity or service, authorize the readvertising of bids, or authorize the purchase of supplies or services pursuant to the open market procedure set forth in CVMC 2.56.090.

G. Tie Bids. In the event two or more bids are received which are for the same total amount or unit price and in all other respects are equal, the contract shall be awarded to a local bidder. In the event, however, that such tie bids are all from vendors either wholly inside or all outside of the City, then the contract shall be awarded by drawing lots in public.

H. Performance Bond. The Purchasing Agent shall have authority to require a performance bond in such amount as he or she shall find reasonably necessary to protect the best interests of the City. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. In General. Purchases of supplies, equipment, and services (except professional services, pursuant to CVMC 2.56.110) with a maximum contract amount in the amount of $100,000 or less may be made by the Purchasing Agent in the open market without observing the formal bidding procedure prescribed in CVMC 2.56.080. Notwithstanding the foregoing, for contracts in excess of $10,000, informal bidding shall be required, and, whenever practical, be based on at least three bids.

Contracts shall be awarded to the lowest responsive and responsible bidder submitting the best bid in all respects, except as provided below. Responsiveness and responsibility shall be determined pursuant to the standards set forth in CVMC 2.56.080(D). The Purchasing Agent shall keep a record of all open market orders and the bids submitted in competition thereon, and such records shall also be open to public inspection.

• B. Exceptions. The following purchases shall be exempt from the requirements in subsection (A) of this section:

  1. Ten Thousand Dollars or Less. Contracts for a commodity or service costing $10,000 or less, in which case the contract may be awarded by the Purchasing Agent based upon suitability of the item and market rates in the case of a commodity, and demonstrated competence at reasonable fees in the case of services;

  2. Impractical or Impossible. When it is determined by the Purchasing Agent that the competitive bidding requirements are impractical, or impossible, or that City interests would be materially better served by applying a different purchasing procedure, the Purchasing Agent may award the contract consistent with best purchasing practices;

  3. Certain CVMC 2.56.070 Exemptions. Those exemptions set forth in CVMC 2.56.070(B)(1), (2), (4) and (5) shall also apply to contracts of $100,000 or less. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. By City Manager or Purchasing Agent Permitted When. In case of an emergency which poses an immediate threat to public health, safety or welfare and which requires immediate purchase of supplies, equipment, or contractual services, the City Manager or Purchasing Agent are authorized to secure in the open market at the lowest obtainable price any supplies, equipment, or contractual services, regardless of the amount of the expenditure; provided, however, that a full explanation of the circumstances of such emergency shall be entered in the minutes of the Council at the first available meeting following the commitment to the expenditure and shall be open to public inspection.

B. By Using Department – Procedure. In case of an emergency, and with the prior consent of the City Manager or Purchasing Agent, any using department may purchase directly any supplies, equipment, or services when the maximum contract amount thereof does not exceed $100,000, whose immediate procurement is essential to prevent delays in the work of the using department which may affect the life, health, or public safety of citizens. The head of such using department shall send to the Purchasing Agent a copy of the delivery record, together with a full written explanation of the circumstances of the emergency, which shall be filed by the Purchasing Agent as a permanent and public record of the purchase. The Purchasing Agent shall, by rules and regulations, prescribe the procedures under which such emergency purchases may be made. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

• A. In General.

1. Except as otherwise provided in this section, architectural, engineering, environmental, land surveying, legal, construction project management, and other professional consultant services (collectively “professional services”) provided to the City shall not be governed by the bidding requirements set forth in CVMC 2.56.080 or 2.56.090, but shall be negotiated on the basis of demonstrated competence and qualifications for the services required and at fair and reasonable fees in accordance with the procedures set forth in this section. Notwithstanding the foregoing, once demonstrated competence and qualifications have been established, expense may be considered as one factor in the selection of a consultant hereunder.

2. Notwithstanding the above requirement, the Purchasing Agent may require competitive bidding, pursuant to the requirements of CVMC 2.56.080 or 2.56.090, upon a finding by the Purchasing Agent after consultation with the Director of the procuring department that the professional services required are of more of a technical nature or involve little professional judgment, and requiring bids would be in the public interest.

3. If the maximum contract amount of the professional services contract exceeds $50,000, it shall be awarded by the City Council after compliance with the procedures specified in subsection (C) of this section. Contracts for professional services with a maximum contract amount of $50,000 or less may be awarded pursuant to subsection (D) of this section. The awarding authority for such contracts in excess of $50,000 shall be the City Council; for contracts in the amount of $50,000 or less, the awarding authority shall be the City Manager.

• B. Definitions. For purposes of this chapter, the following terms have the following meanings:

1. “Architectural, engineering, environmental, and land surveying services” includes those professional services of an architectural, engineering, environmental, or land surveying nature as well as incidental services that members of these professions and those in their employ may logically or justifiably perform.

2. “Construction project management” means those services provided by a licensed architect, registered engineer, or licensed general contractor which meet the requirements of Government Code Section 4529.5 for management and supervision of work performed on construction projects.

3. “Environmental services” means those services performed in connection with project development and permit processing in order to comply with federal and state environmental impact laws, and the analysis of hazardous material.

   4. “Legal services” are those of a specialized legal nature as determined by the City Attorney.

4. “Other professional services” include services which provide intellectual products of a specialized nature unique to a given situation or requirement.

• C. Selection Process for Contracts of Greater than $50,000.

  1. Any department head desiring to enter into a contract for professional consultant services whose maximum contract amount exceeds $50,000 shall first analyze the cost effectiveness of having the proposed service completed.

2. Public announcement of all projects of an estimated cost in excess of $50,000 requiring architectural, engineering, environmental, land surveying, construction project management, or other professional consultant services shall be made by the City through notice to the respective professional societies, advertisement on the City’s Internet website, or publication in a newspaper of general circulation, and any other method of advertising that is determined by the Purchasing Agent to be in the City’s best interest. The notice shall invite service providers to submit letters of interest for specific projects.

3. The recommendation to City Council for the award of the contract shall be made by a selection committee. The responsible department head, or designee, and two or more staff members shall perform the duties of the selection committee.

4. After reviewing all proposals submitted, the selection committee may choose the most qualified firms for personal interviews to discuss anticipated concepts and the relative utility of alternative methods of approach for furnishing the required services. The selection committee shall evaluate and rank the firms based upon criteria established in advance by the City. Cost comparisons between service providers may also be considered as a factor. A list containing the ranking information will be sent to the responsible department head.

5. The responsible department head shall negotiate a contract with the firm ranked the highest by the selection committee at a price determined to be fair and reasonable to the City. The agreement shall define the conditions of the contract scope, work plan, schedule, costs, method of payment, duration, insurance, indemnification and other appropriate matters.

   6. If the department head is unable to negotiate a satisfactory contract with the highest ranked firm, negotiations shall be formally terminated.

   7. The department head shall then undertake negotiations with the next highest ranked firm. This process shall continue until a satisfactory contract is negotiated.

   8. If the list of qualified firms is exhausted without a contract being negotiated, the selection committee shall choose additional firms, and the process shall continue until a satisfactory contract is negotiated.

• D. Selection Process for Contracts of $50,000 or Less. Purchases of professional services with a maximum contract amount of $50,000 or less shall be made after informal solicitation of proposals, in accordance with the same standards and exceptions set forth in CVMC 2.56.090.

E. Prequalification Lists. Solicitations may be made using prequalification lists maintained and approved by the Purchasing Agent. The Purchasing Agent shall review types of services required and determine for which types of services prequalification lists would be appropriate. Prequalification lists may be used in lieu of open advertisement.

F. Legal Services. In accordance with Section 503 of the City Charter, the City Attorney oversees contracts for legal and related professional services. Whenever practical, and in consultation with the Purchasing Agent, requests for outside attorney or professional services shall be based on a competitive solicitation of proposals. Otherwise, justification shall be provided based on unique qualifications or performance characteristics of the attorney or consultant recommended. Except for contracts for the retention of special counsel pursuant to Chapter 2.52 CVMC, contracts for legal and related professional services in excess of $50,000 shall be approved by the City Council. Contracts for the retention of special counsel pursuant to Chapter 2.52 CVMC in excess of $100,000 shall be approved by the City Council.

• G. Unlawful Acts and Conflicts of Interest Prohibited.

  1. In the selection and award of professional consultant contracts pursuant to this exception, all unlawful activity, including, but not limited to, rebates, kickbacks, or other unlawful consideration, is prohibited.

2. No City officer or employee shall be a member of a selection committee, or otherwise participate in the selection process, when they have a relationship with a person or business entity seeking a contract which would constitute a conflict of interest under Government Code Section 87100 or under City conflict of interest rules.

H. Exceptions. The following purchases shall be exempt from the requirements in subsections (C) and (D) of this section:

1. Ten Thousand Dollars or Less. Contracts for professional service contracts with a maximum contract amount of $10,000 or less may be awarded by the Purchasing Agent based upon demonstrated competence at reasonable fees;

2. Impractical or Impossible. When it is determined by the Purchasing Agent (for contracts with a maximum contract amount of $100,000 or less) or by resolution of the City Council (for contracts with a maximum contract amount in excess of $100,000) that the competitive bidding requirements are impractical, or impossible, or that City interests would be materially better served by applying a different purchasing procedure, the Purchasing Agent or City Council, respectively, may award the contract utilizing alternative procedures consistent with best purchasing practices;

3. Certain CVMC 2.56.070 Exemptions. Those purchases exempted under CVMC 2.56.070(B)(1), (2), (4) and (5). (Ord. 3400 § 1, 2017; Ord. 2956 § 1, 2004; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. General Procedures. All using departments shall submit to the Purchasing Agent, at such times and in such form as he or she shall prescribe, reports showing stocks of all supplies, materials, and equipment which are no longer used or which have become obsolete, worn out, or scrapped. The Purchasing Agent may transfer such stock to other departments which have need for and can use it. The Purchasing Agent shall also have the power to sell all supplies, materials, and equipment which have been unsuitable for public use, or to exchange for, or tradein the same on, new supplies, materials, and equipment.

B. Approval Required – Competitive Process. Where the value of an item, or a group of items expected to be sold to one bidder, exceeds $100,000, such sale must be approved by resolution of the City Council. Any such sale, exchange, or trade-in shall be made to the highest responsive and responsible bidder, in accordance with the competitive bid procedures established by the Purchasing Agent.

C. Donations. Supplies, materials, and equipment, when the estimated value involved is $10,000 or less, may be donated, or sold for less than fair market value, to local civic or social organizations, where it is deemed by the City Manager that such a disposition of property would best serve the City’s public interests. Such donations or discounted sale of items valued in excess of $10,000 must be approved by resolution of the City Council.

D. Worthless Property. In the case of scrap or survey items having no estimated or appraised value and which have not been desired by any civic or social organization, the Purchasing Agent may dispose of such items in any manner he or she deems appropriate, keeping full records of such disposition.

E. Special Procedures for Disposition of Library Materials. The City Librarian shall submit to the Purchasing Agent reports showing used, damaged, or unneeded library materials and indicating disposition thereof. The Librarian may, at his or her discretion, donate such materials to the Friends of the Chula Vista Public Library for such book sales as they may desire, or he or she may offer such materials to any bona fide charitable or nonprofit institutional organizations serving primarily the interests of the City. If at any time the Librarian chooses to dispose of such materials other than as provided herein, he or she shall follow the general procedures set forth hereinabove. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

The Purchasing Agent, with the recommendation of the City Manager and approval of the City Council, shall have the power to sell for fair value any real property owned by the City which has been declared by the City Council to have no present or future use for public purposes. Notice of such sale shall be published at least once on the City’s Internet website, or in a newspaper of general circulation in the City, and any other method of advertising that is determined by the Purchasing Agent to be in the City’s best interest. Real property may be sold for less than fair market value upon a determination by the City Council that such sale will be in the public interest. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. CIP Projects. The Public Works Director, or City Engineer, shall have authority to acquire interests in real property that are necessary for the construction, repair, operation, or maintenance of City facilities without City Council approval; provided, that:

1. A CIP project has been established for the construction, repair, operation, or maintenance of City facilities and funds have been appropriated to that CIP budget;

2. Sufficient funds are available in the approved CIP budget to acquire the real property interest(s) and the use of such funds will not materially impact the City’s ability to fully implement the CIP project with the remaining funds;

3. The purchase price for the real property interests being acquired does not exceed $100,000 per parcel; and

4. The purchase price for the real property interests being acquired does not exceed 125 percent of the appraised value of the interests to be acquired.

B. Notwithstanding the limitation in subsection (A)(4) of this section, the purchase price may exceed 125 percent of the appraised value of the real property interests to be acquired where subsections (A)(1) through (3) of this section have been satisfied and the purchase is approved by the City Manager. This section does not apply to acquisitions of real property interests by eminent domain. (Ord. 3500 § 1, 2021).

No provision of this chapter shall be interpreted or construed to prohibit or prevent the City from purchasing supplies, equipment, and services by contracts, arrangements, and agreements for cooperative purchasing programs with the state of California, the county of San Diego, the city of San Diego, or any other public agency, including a joint exercise of powers authority, school district, or water authority within the United States; provided, that such items are purchased through a competitive process that the Purchasing Agent determines to be consistent with good purchasing practices. If the contract, agreement, or arrangement exceeds $2,000,000, then City Council approval is required. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

A. In General. City of Chula Vista Charter Sections 1009, 1010, and 1011 (Measure A), among other things, delegate authority to the City Council to establish procurement policies and procedures for awarding City construction contracts. The purpose of this section is to add job order contracting procurement policies and procedures and to provide definitions and guidelines for the award, use, and evaluation of job order contracts.

B. Definitions. “Job order contract” means a construction contract for minor or recurring construction tasks, including repairs, renovations, and alterations, with minimal design requirements, at a fixed price and for an indefinite quantity which are awarded on a unit price basis for all necessary labor, materials, and equipment. “Task order” means an authorization to perform construction work under a job order contract.

• C. Implementation.

  1. Job Order Contracts.

a. Competitive Process. Job order contracts shall be procured through a competitive process that the Purchasing Agent determines to be consistent with good procurement practices.

b. Term. Job order contracts shall have a term of no longer than four years. Job order contracts may have a duration of more than four years only if necessary to complete outstanding task orders issued during the four-year term, or as otherwise approved by the City Council.

c. Specifications. The advertisement for bids and specifications shall include line item unit prices and detailed technical specifications for each construction task to be performed under the job order contract.

d. Contractor Adjustment. Contractors submitting bids on a job order contract shall state in their bids an adjustment on a percentage basis either increasing or decreasing the preset unit prices for all construction tasks in the bid documents.

e. Awarding Authority. The awarding authority for job order contracts shall be as follows: Purchasing Agent for contracts with a maximum contract amount of $2,000,000 or less; City Council for contracts with a maximum contract amount of more than $2,000,000 (“job order contract awarding authority”).

f. Periodic Review. The City Manager, or his designee, shall monitor the City’s use of job order contracts and provide periodic informational reports regarding the observed advantages and disadvantages of the use of job order contracts.

2. Task Order(s).

a. Scope. Each task order shall include a detailed scope of work and time certain for completion of the work.

b. Task Order Price. The task order price shall be no more than the sum of the applicable unit prices and the contractor’s bid adjustment factor. The task order price shall not exceed $2,000,000 (“maximum task order amount”).

c. No Subdivision of Work. City staff shall not subdivide work that logically should be performed as a single task order into multiple task orders for purposes of avoiding the task order limits in this section.

d. Awarding Authority. The awarding authority for task orders shall be the Purchasing Agent (“task order awarding authority”).

e. Change Orders. The task order awarding authority shall have the authority to approve change orders for a task order up to the maximum task order amount. The City Council shall have sole authority to approve change orders that exceed the maximum task order amount.

f. Rejection of Task Order Proposals. The task order awarding authority may reject any and all task order proposals, waive minor defects in any task order proposal, or complete the scope of work contained in a task order proposal by means of other authorized procurement methods, if the task order contract awarding authority determines that such action is necessary or appropriate for the benefit of the public. (Ord. 3420 § 1(B), 2018).

The Director of Finance shall provide the City Council with reports regarding City purchasing practices in such form and at such intervals as the City Council may direct. (Ord. 3400 § 1, 2017; Ord. 2899 § 1, 2003; Ord. 2766 § 1, 1998).

The provisions of this section shall apply to contracts on public works, as defined in City Charter Section 1009.

A. Competitive Bid Processes. The informal bidding process set forth in CVMC 2.56.090(A) shall apply to public works contracts with a maximum contract amount of $250,000 or less. For public works with a maximum contract amount in excess of $250,000, the competitive bidding process set forth in CVMC 2.56.070(A) and 2.56.080 shall apply.

B. Contract Awarding Authority. Notwithstanding subsection (A) of this section, the contract awarding authority for public works contracts shall be as follows: maximum contract amount of $100,000 or less: Purchasing Agent; maximum contract amount over $100,000 and up to $250,000: City Manager; maximum contract amount in excess of $250,000: City Council (“public works awarding authority”).

C. Capital Improvement Projects (CIP). Notwithstanding anything else in this section, public works contracts for capital improvement projects shall be subject to the following:

1. Awarding Authority. The public works awarding authority shall be: the Purchasing Agent, for public works contracts with a maximum contract amount up to $2,000,000; the City Council for public works contracts with a maximum contract amount in excess of $2,000,000.

2. Change Orders. The Public Works Director, or City Engineer, shall have authority to approve change orders up to the remaining CIP budget available for any CIP project.

D. Rejection of Bids. The public works awarding authority may reject any and all bids, authorize the readvertising for bids, or waive minor defects in any bid, if the public works awarding authority determines that such action is necessary or appropriate for the benefit of the public.

• E. Emergency Waiver. For contracts on public works, emergency purchases shall be authorized pursuant to CVMC 2.56.100.

• F. Professional Services. The selection process for professional services for public works projects shall be awarded pursuant to CVMC 2.56.110.

G. “Special” Public Works Contracts. The City Council retains the authority to require its approval of the award of any public works contract it defines as “special,” based on factors such as contract cost, value, or other relevant factors, either by amendment to this chapter or adoption of a City Council policy.

H. Developer-Performed Public Works. This section shall apply to public works (as defined by the Charter of the City of Chula Vista, as amended) that are to be constructed, or designed and constructed, by or at the direction of a developer or private property owner and subsequently accepted by, dedicated to, or acquired by the City of Chula Vista (“developer-performed public work”).

1. Procurement. A developer-performed public work shall be procured pursuant to one of the following project contracting methods:

• a. Competitive Bid or Solicitation. A developer may award a contract for a developer-performed public work by competitive bid or solicitation in compliance with all applicable requirements of this section.

  • b. Sole Source. A developer may award a contract for a developer-performed public work on a sole source basis where, in addition to compliance with all applicable requirements of this section:

i. City makes findings that an award of a sole source contract is in the best interest of the public because of the particular (A) performance capabilities of the proposed entity or contractor, (B) project characteristics, (C) manufacturing processes, (D) compatibility requirements, and/or (E) market or other conditions/circumstances that render the award of a sole source contract to be in the best interest of the public; and

• ii. The entity or contractor awarded a contract for a developer-performed public work competitively bids all subcontracts for the developer-performed public work.

c. Developer as Design-Build Entity or Prime Contractor. A developer may act as a design-build entity or prime contractor for a developer-performed public work where, in addition to compliance with all applicable requirements of this section:

• i. Developer provides written notice to City of its intent to act as a design-build entity or prime contractor and provides information demonstrating its competence and qualifications to perform the developer-performed public work;

ii. City determines, in City’s sole discretion, that the developer is competent and qualified to complete the developer-performed public work and authorizes the developer to proceed with the developer-performed public work; and

iii. Developer competitively bids all subcontracts for the developer-performed public work.

2. Bid and Award.

a. Authorization to Proceed. If a developer-performed public work is not otherwise authorized by means of an approved agreement with the City or other approved action of the City, a developer shall be required to: (i) obtain prior written approval of the City Manager, or designee, to proceed with a developer-performed public work with an estimated maximum contract value of $2,000,000 or less; or (ii) obtain approval of the City Council, by resolution, to proceed with a developer-performed public work with an estimated maximum contract value of more than $2,000,000. Failure to comply with the procedures in this section may, in City’s discretion, result in a waiver of all claims for payments by City, bond drawdowns, or development credits (as hereinafter defined) to developer in connection with a developer-performed public work.

b. Bid and Contract Documents. Developer shall prepare, or cause to be prepared, bid documents (except with respect to prime contracts awarded pursuant to subsection (H)(1)(b) of this section) and contract documents for a developer-performed public work in accordance with all local codes, City design guidelines, and project-specific design guidelines, subject to City approval. The bid and contract documents shall include, without limitation, detailed plans and technical specifications, bonding requirements, insurance requirements, prevailing wage requirements, mandates for timely completion, and remedies for untimely completion.

c. Competitive Solicitation of Bids. Developer shall solicit, or cause to be solicited, sealed competitive bids for prime contracts (except for prime contracts awarded pursuant to subsection (H)(1)(b) of this section) and subcontracts for a developer-performed public work on a guaranteed maximum price, lump sum price, or per unit, line item basis and in accordance with industry standard procurement practices as determined by City. A developer may combine into one bid solicitation the construction of a developer-performed public work and other development work, but the bid and contract documents must clearly separate the developer-performed public work from other development work to be performed, in a manner and form as approved by City. Any consultant retained by a developer to assist in the preparation of bid or contract documents (including without limitation preliminary/concept designs), or to assist in the solicitation of bids for a developer-performed public work, shall not be eligible to submit a bid for or be awarded a subsequent contract for that developer-performed public work.

d. Award of Contract. Developer shall award contracts (except for contracts awarded pursuant to subsection (H)(1)(b) of this section), and shall award, or shall cause the applicable entity or contractor to award, subcontracts for a developer-performed public work to the lowest responsive and responsible bidder, or the bidder that is determined by developer to be the “best qualified contractor,” subject to City approval. When determining the “best qualified contractor,” developer shall consider, without limitation, a bidder’s demonstrated competence, qualifications, ability to achieve timely completion, capacity, skill, compliance with bid documents, costs, and other relevant criteria. If a developer awards a prime contract or subcontract to a bidder other than the lowest responsive and responsible bidder for an item or unit of work, then all payments, reimbursements, and credits against developer impact fees or other developer fees or obligations (“development credits”) shall not exceed the amount of the lowest responsive bid for that item or unit of work. This not-to-exceed limitation may be waived where:

• i. The amount of the bid does not exceed the engineer’s estimate or other approved estimate for the developer-performed public work by more than 10 percent; and

• ii. City approves the waiver in accordance with subsection (H)(6) of this section.

• e. Design-Build Contracts. Where a design-build contract is utilized to complete a developer-performed public work, a developer is not required to comply with subsection (H)(2)(b) or (H)(2)(c) of this section; provided, that developer complies with:

  • i. All remaining requirements of this subsection H;

  • ii. The City’s design-build procurement requirements set forth in CVMC 2.57.030;

  • iii. The City’s qualification and selection process set forth in CVMC 2.57.040; and

  • iv. All other applicable City policies, procedures, and standards for design-build projects.

3. Construction and Acceptance.

   • a. Payments. City shall have the authority to audit and determine the acceptable amounts of all payments by City, bond drawdowns, and/or development credits for a developer-performed public work.

b. Change Orders. Any change to the contract documents or improvements for a developer-performed public work (“change order”) shall be subject to City’s prior written approval, except for change orders that: (i) result in no additional payment by City, bond drawdown, or development credits to developer; (ii) result in no additional maintenance or overhead costs to the City; (iii) result in no material delay to the completion date; and (iv) result in no material modifications to the design or construction. City shall have the sole discretion to determine whether subsections (H)(3)(b)(i), (ii), (iii), and (iv) of this section have been satisfied. All change order requests shall be submitted in writing in advance of performing any work or incurring any increased costs for a change order, and substantiated with supporting documentation justifying the request. Cumulative change orders resulting in a total project amount of less than

$2,000,000 shall be considered by and subject to approval of the City Manager, or designee. Cumulative change orders resulting in a total project amount of $2,000,000 or more shall be considered by and subject to approval of the City Council. Failure to comply with the procedures in this section may, in City’s discretion, result in a waiver of all claims for additional payments by City, bond drawdowns, or development credits to developer in connection with a change order.

c. Post-Construction. City shall have the discretion to accept a developer-performed public work based on City’s determination of compliance with local codes, City’s general design and construction standards, and project-specific design and construction standards. City shall have the discretion to release all bonds for a developer-performed public work.

4. Other Obligations. Nothing in this section shall limit or relieve a developer of other obligations or restrictions applicable to the performance of a developer-performed public work, including, without limitation, obligations or restrictions required by a funding source for the developer-performed public work.

5. Agreement. Where otherwise required or advisable, in City’s sole discretion, City may require a developer to enter into an agreement prior to commencement of a developer-performed public work to implement the developer-performed public work in accordance with the terms of this section and/or in accordance with other obligations or restrictions applicable to the developer-performed public work. Such agreement may: (a) clarify or modify the application of and/or waiver of the requirements of this section to a developerperformed public work, and/or (b) clarify, establish, or modify the procedures to be undertaken by developer and City in connection with this section (including but not limited to the procedures and approvals described in subsection (H)(3) of this section). City Council’s approval of an agreement that clarifies and establishes such procedures constitutes the City Council’s determination and finding that such procedures satisfy all applicable requirements of this subsection H.

6. Waiver. The requirements of this section may be waived, in whole or in part, solely as follows:

a. For developer-performed public works with an original project award amount of more than $2,000,000, by resolution of the City Council making findings that (i) the waiver is in the best interest of the public after consideration of factors including, without limitation, project costs, time for completion, and other relevant criteria, and (ii) appropriate safeguards are in place to protect the public interest.

b. For developer-performed public works with an original project award amount of $2,000,000 or less, by written determination of the City Manager, or designee, that (i) the waiver is in the best interest of the public after consideration of factors including, without limitation, project costs, time for completion, and other relevant criteria, and (ii) appropriate safeguards are in place to protect the public interest.

c. For post-award waiver requests, if the estimated total project amount, including all change orders, is more than $2,000,000, post-award waiver requests shall be considered by and subject to approval of the City Council and require the findings stated in subsection (H)(6)(a) of this section. If the estimated total project amount, including all change orders, is $2,000,000 or less, post-award waiver requests shall be considered by and subject to the approval of the City Manager, or designee, and require the findings stated in subsection (H)(6)(b) of this section. Nothing in this section shall subject previously approved waivers to further consideration and/or approval.

d. For a “special purpose project,” by resolution of the City Council making findings that: (i) the waiver is in the best interest of the public after consideration of factors including, without limitation, the total project costs, City’s share of project costs, time for project completion, public benefits of the project, and other relevant criteria and circumstances, and (ii) appropriate safeguards are in place to protect the public interest. For purposes of this section, “special purpose project” means a developer-performed public work that is intended to be owned, leased, and/or operated by a party or parties other than the City for a period of no less than 10 years after completion of the developer-performed public work. (Ord. 3420 §§ (1)(C), (D), 2018; Ord. 3400 § 1, 2017).

The limits set forth in CVMC 2.56.140, 2.56.145 and 2.56.160 shall automatically increase annually based on the Engineering News Record (ENR) Construction Index. These limits will increase by administrative action of the City Manager, starting on October 1, 2018, and again on each October 1st thereafter, based on the one-year change (from July to July) in the Los Angeles Construction Cost Index as published monthly in the Engineering News Record (“LA ENR CCI”) by rounding up to the nearest $1,000. (Ord. 3420 § 1(E), 2018; Ord. 3400 § 1, 2017).