Clearlake Municipal Code § 3-4 Purchasing and Sales

A purchasing system is adopted in order to: a. Establish efficient procedures for the purchase of supplies, services and equipment;

b. Secure supplies, services and equipment at the lowest possible cost commensurate with the level of quality required; c. Exercise financial control over purchases; and d. Clearly define authority for the purchasing function. (Ord. #2006-121)

The City Manager is designated as Purchasing Agent. The City Manager may delegate all or a portion of the duties of Purchasing Agent to any City staff member. The Purchasing Agent shall have the authority to: a. Purchase or contract for supplies, services and equipment required by the City, in accordance with the requirements of this chapter; b. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment; c. Act to procure for the City the necessary quality in supplies, services, and equipment at the lowest cost to the City; d. Prepare and recommend to the City Council revisions and amendments to the purchasing guidelines; e. Establish and maintain such forms as reasonably necessary to the operation of purchasing guidelines; f. Supervise the inspection of all supplies, services, and equipment purchased to ensure conformance with specifications; g. Recommend the sale or disposal of all supplies and equipment which cannot be used by the City, or which have become unsuitable for City use; and h. Recommend the transfer of surplus or unused supplies and equipment between departments; and i. Develop administrative regulations for the internal management and operation of the Purchasing Department; and j. Maintain a bidder’s list and other records necessary for the efficient acquisition of goods and services. (Ord. #2006-121; Ord. #2012-153)

When the amount or value involved is over twenty-five thousand ($25,000.00) dollars, the purchase shall be made by the City Council through competitive bid for purchases and contracts for supplies and equipment in accordance with the following. Bids should be obtained from one (1) or more vendors located within the City of Clearlake whenever practical.

a. Notice inviting bids shall include a general description of the services and/or articles to be purchased or sold, where bid blanks and specifications may be obtained, the time and place for bid openings, and whether bid deposit or bond, faithful performance bond or other security will be required. b. At least ten (10) days before the date of opening the bids, notice inviting bids shall be published in a newspaper of general circulation printed and published in the City, or posted in at least three (3) public places in the City that have been designated by ordinance as the place for posting public notices. c. The Purchasing Agent shall also solicit sealed bids from all responsible prospective suppliers whose names are on an applicable bidder’s list, if any, and may advertise the notice inviting bids in applicable publications and websites readily accessible to the public. d. When deemed necessary by the Purchasing Agent or City Council, any bidder may be required to submit a bid deposit or bond in an amount determined by the Purchasing Agent or City Council. Successful bidders (and their sureties, if a bond is furnished) shall be liable for any damages upon the failure to enter into a contract with the City or upon the failure to perform in accordance with the bid. e. When deemed necessary by the Purchasing Agent or City Council, any person or entity entering into a contract with the City may be required to furnish a faithful performance bond and/or other security in an amount determined by the Purchasing Agent or Council. f. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. g. At its discretion, the City Council may reject all bids presented and readvertise for bids. h. Contracts shall be awarded by the City Council to the lowest responsive, responsible bidder, except as otherwise provided in this section. i. If two (2) or more bids received from responsive, responsible bidders are for the same total amount or unit price, quality and service being equal, preference shall be given to the local vendor, or the City Council may award the contract based on the lowest price obtained by negotiation with the tie bidders. (Ord. #2006-121; Ord. #253-2021, S1) 3-4.4 Purchasing Award—Responsiveness, Responsibility Factors to Be Considered. The following factors shall be considered in determining the responsiveness of bids and the responsibility of bidders in accordance with applicable law. a. The number and scope of conditions attached to the bid; b. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

c. The ability of the bidder to perform the contract or provide the service promptly or within the time specified, without delay or interference; d. The reputation and experience of the bidder; e. The previous experience of the City with the bidder; f. The previous and existing compliance by the bidder with the laws and ordinances; g. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service; h. The quality, availability, and adaptability of the supplies or contractual services to the particular use required; i. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract; (Ord. #2006-121)

a. The requirements of subsection 3-4.3 concerning competitive bidding shall not apply to the following: 1. Contracts involving the acquisition of professional or specialized services, such as, but not limited to, services rendered by architects, engineers, surveyors, construction managers, accountants, attorneys and other specialized consultants; 2. Where the City’s requirements can be met solely by a particular patented article or process or item or service available only from a single source; 3. Where no bids have been received following bid announcements in accordance with this section; 4. When the amount involved is twenty-five thousand dollars ($25,000) or less; 5. When an emergency requires dispensing with competitive bidding to protect the public health, safety and welfare; 6. When another public agency has administered a competitive bidding process within the past two (2) years for the same or substantially similar supplies, services or equipment, the City may purchase supplies, services or equipment in reliance on such executive process of such other public agency in lieu of compliance with this section; 7. When the City Council specifically waives the competitive bid process and authorizes staff to negotiate the purchase by a four-fifths vote; 8. The purchase of supplies, equipment, or services through a cooperative purchasing agreement or program, or by using a competitively awarded agreement of another local, State, or Federal government agency or joint powers authority made up of government agencies to obtain the same supplies, equipment or services at the same or lower prices (commonly referred to as “piggybacking”). Such programs and agreements include, but are not limited to, the California Multiple Award Schedules Program (CMAS), the Interlocal Purchasing Systems (TIPS), the U.S. General Services Administration (GSA) Multiple Award Schedule Program, Sourcewell, and the U.S. Communities Government Purchasing Alliance; and 9. When competitive bidding pursuant to this section would be impracticable, infeasible, or otherwise unavailing, and provide no advantage for the public in accordance with legal doctrine discussed in Genevieve Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631. b. Any application to the City Council for an exception under this section shall include the nature of the contract, amount of the contract, and the reasons why competitive bidding is not feasible. (Ord. #2006-121; Ord. #206-2018; Ord. #227-2019, S1; Ord. #253-2021, S2) 3-4.6 Purchases of Less than Twenty-Five Thousand ($25,000.00) Dollars—Procedure. Where the amount or value involved is less than twenty-five thousand ($25,000.00) dollars the purchase may be made by the Purchasing Agent, without written bid, and by informal price checking through telephone or mail inquiry and comparison of prices on file or otherwise. When deemed by the Purchasing Agent to be practical and necessary in order to get the best value for the City on the purchase, the Purchasing Agent shall attempt to receive multiple price quotations. At the discretion of the Purchasing Agent, the formal competitive bid process may be used where the value of goods and services is twenty-five thousand ($25,000.00) dollars or less. (Ord. #2006-121; Ord. #253-2021, S3) 3-4.6A Local Vendor Preference. Local business contribute significantly to the economic health of the City and to the quality of life of its citizens and visitors. Procurement should seek to involve local vendors to the maximum extent possible while still complying with Ordinance No. 2006-121 and any other relevant provisions of the City of Clearlake Municipal Code. To achieve this the following applies: a. A bid or proposal from a local vendor for supplies, general services and equipment will be tabulated as if it were five (5%) percent below the figure actually set forth in the bid or proposal to account for the financial advantages accruing to the City by the award of a bid to a local vendor. The City, when seeking bids or proposals for commodities or equipment, will notify bidders or proposers that bids or proposals will be evaluated on the basis of a local preference or five (5%) percent of the bid or proposal price; b. A local vendor is defined as a business with a physical location within the boundaries of the City of Clearlake, maintains a current City of Clearlake business license and is not delinquent with any payments to the City;

c. The provisions of this section shall not apply to: 1. Purchases under the informal bid limit; 2. Sole source purchases; 3. Urgent purchases necessary to protect public health, safety and/or welfare; 4. Purchases made under cooperative agreement; 5. Purchases funded by outside agencies that prohibit the use of preferences; 6. Professional services request for proposals where price is not considered in the selection of which service provided to engage in negotiations; 7. Purchases or agreements which are funded in whole or in part by a governmental entity, and the laws, regulations or policies governing such funding prohibit application of that preference; 8. Public projects governed under the State of California Public Contract Code. In addition, the City Council shall have the authority to waive application of the local preference provisions at its discretion. d. The local vendor preference shall be applied to a maximum of one hundred thousand ($100,000.00) dollars per bid including all costs, except sales tax. (Ord. #2014-166)

All purchases over two thousand five hundred ($2,500.00) dollars shall be documented by a purchase order prepared by the Purchasing Agent and/or by City contract. The purchase order may be directed to the vendor and one (1) copy shall be retained for the purchase order file. A copy shall be directed to the department for whose benefit the purchase is being made to be used as a receiving report. (Ord. #2006-121)

No purchase order shall be issued or contract executed until it has been ascertained that there is to the credit of the department of the City for whose benefit such purchase is to be made, a sufficient unappropriated balance in excess of all unpaid obligations to defray the amount of such order or contract. (Ord. #2006-121)

The Purchasing Agent shall require the inspection of supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications and requirements set forth in the order or contract. (Ord. #2006-121)

At such times as determined by the Purchasing Agent, reports shall be prepared showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Agent shall have the authority to sell, trade or exchange all said supplies and equipment which have a fair market value of less than ten thousand ($10,000.00) dollars. The Purchasing Agent shall have the discretion to dispose of surplus supplies and equipment which have a fair market value of ten thousand ($10,000) dollars or more either by offering them for sale in a public auction or by exchanging or trading in such supplies or equipment in part or full payment for new supplies, materials or equipment of a similar nature. Such sales will be made pursuant to subsection 3-4.3 or subsection 3-4.6, whichever is applicable. (Ord. #2006-121; Ord. #253-2021, S4)

It is unlawful to split or separate into smaller orders the purchase of supplies, materials, equipment or services for the purpose of evading the competitive bidding provisions of this section. (Ord. #2006-121)

This section is expressly made inapplicable to bids for public projects as defined by California Public Contract Code section 20161 where the expenditure required for the public project exceeds the limit set by California Public Contract Code section 20162. The provisions contained in California Public Contract Code section 20161 et seq., establish contract procedures the City shall follow regarding public projects. (Ord. #2006-121)

The City of Clearlake is committed to the conservation and protection of State and local resources. Therefore, bidders able to supply recycled products and products containing recycled and environmentally preferable materials that meet performance requirements are encouraged to offer them in bids and proposals. a. If the fitness and quality are equal, the Purchasing Agent shall purchase recycled products and materials, as defined in Section 12200 of the Public Contract Code, instead of nonrecycled products whenever recycled products are available at the same or a lesser total cost than nonrecycled products.

b. All departments shall require all businesses, as defined in Section 12200 of the Public Contract Code, to certify in writing the minimum percentage of post-consumer materials in the products, materials, goods, or supplies, offered or sold. All contract provisions impeding the consideration of recycled products shall be deleted in favor of performance standards. c. With respect to printer or duplication cartridges that comply with the requirements of California Public Contract Code subsection 12156(e), the certification required by this subsection shall specify that the cartridges so comply. d. All printing contracts made by the City shall specify that the paper used shall meet the recycled content requirements of Section 12209 of the California Public Contract Code. e. All departments may specify recycled content at levels higher than the minimum content standards. (Ord. #2006-121)

a. The acceptance of any gratuity in the form of cash, merchandise, or any other thing of value by an official or employee of the City from any vendor or contractor, or prospective vendor or contractor, shall be deemed to be a violation of this section, and may be cause for removal or other disciplinary action. b. The offer of any such gratuity to any official or employee of the City by any vendor or contractor, or prospective vendor or contractor, may be cause for declaring such individual or firm a non-responsive bidder and for debarring the vendor or contractor from bidding. c. Any employee offered such a gratuity shall report through proper channels such an offer to their immediate supervisor. Failure to report shall subject the employee to disciplinary action. (Ord. #2006-121)

If any department purchases or contracts for any supplies, materials, equipment, or contractual services contrary to the provisions of this section, such purchase order or contract shall be void and of no effect. (Ord. #2006-121)

a. Informal Bid Procedures. Public projects, as defined by the Act and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code. b. Contractors List. The agency shall comply with the requirements of Public Contract Code Section 22034.

c. Notice Inviting Informal Bids. Where a public project is to be performed which is subject to the provisions of this subsection, a notice inviting informal bids shall be circulated using one or both of the following alternatives: 1. Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with paragraph b.; 2. Notices inviting informal bids may be mailed to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids, provided however: (a) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. d. Award of Contracts. The City Manager/Purchasing Agent is authorized to award informal contracts pursuant to this subsection. (Ord. #214-2018)