Commerce Municipal Code Ch. 3.16 Purchasing System

The city council declares that it is necessary to establish efficient procedures to obtain supplies, equipment and contractual services at the lowest possible cost commensurate with quality, and to exercise financial control over purchases. Therefore, the purchasing system set forth in this chapter is established and shall control the procedure for all purchases except as otherwise provided or limited by the Constitutions or laws of the state or of the United States of America.

(1) "Contractual services," as used in this chapter, means and includes, but is not limited to, the obtaining of towel and cleaning services, insurance, rubbish service and collection services, and the purchase, rental, leasing, repair or maintenance of buildings, grounds, equipment, machinery and personal property. The term shall not include professional and other contractual services or items which are in their nature unique and not subject to competition, or for which the procedure for procurement is specifically provided by this code or by state law.

(2) "Supplies," as used in this chapter, means and includes all supplies, materials and equipment.

(Ord. 202 § 1, 1974).

The city administrator is designated the purchasing agent. The duties of the purchasing agent may be combined with those of any other officer or position. The purchasing agent shall have authority and responsibility to:

(1) Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing agent shall adopt and other rules and regulations as shall be prescribed by the city council;

(2) Negotiate and recommend execution of contracts for the purchase of supplies and equipment;

(3) Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

(4) Discourage uniform bidding by suppliers and endeavor to obtain as full and open competition as possible on all purchases;

(5) Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the city;

(6) Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

(7) Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;

(8) Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications;

(9) Transfer between department surplus or unused supplies and equipment and recommend the sale of all supplies and equipment which cannot be used by any agency or which becomes unsuitable to city use;

(10) Maintain a bidder's list, vendor's catalog file and records needed for the efficient operation of the purchasing department;

(11) Operate all storerooms for the storage of common use items, being responsible for the safekeeping and proper storage and handling of all supplies and equipment therein;

(12) Prescribe and maintain a perpetual inventory system showing quantities and monetary values of the inventories in all storerooms including those operated by agencies.

(Ord. 202 § 2, 1974).

Subject to authorization of the city council, department heads may purchase or contract for specified supplies and contractual services in accordance with procedures and regulations established by the purchasing agent and this chapter. Periodic reports of all purchases and contracts made under such authorization shall be forwarded to the purchasing agent by the department head so authorized.

(Ord. 202 § 3, 1974).

Using agencies shall submit request for supplies and equipment to the purchasing agent by standard requisition forms.

(Ord. 202 § 4, 1974).

Purchases of supplies and equipment shall be made only by purchase order, except as provided for emergency purchases in Section 3.16.060.

(Ord. 202 § 5, 1974).

The purchasing agent may make emergency purchases free of the provisions of this chapter upon a showing by any agency or officer that the purchase required is for the immediate preservation of health, safety and welfare of the people or for the protection of property and that there is a present, immediate and existing emergency which could not reasonably be foreseen.

(Ord. 202 § 6, 1974).

Purchases of supplies, equipment and contractual services of an estimated value of five thousand dollars or less may be made by the purchasing agent in the open market at the best prices obtainable and to the best advantage of the city unless it is in the city's best interest that such purchases shall be by formal contract procedure provided for in this chapter. All bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than five hundred dollars.

(Ord. 382 § 1, 1986: Ord. 202 § 7, 1974).

The purchasing agent shall solicit bids or quotation by written requests to prospective responsible vendors, by telephone, by public notice posted on a public bulletin board in the City Hall or by newspaper publication.

(Ord. 202 § 8, 1974).

The purchasing agent shall keep a record of all open market quotations which shall be open to public inspection for a reasonable period of time.

(Ord. 202 § 9, 1974).

Purchases of supplies and equipment of a value in excess of five thousand dollars shall be by written contract with the lowest and best bidder whenever this procedure is deemed to be in the best interests of the city.

(1) Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured and the time and place for the opening of bids.

(A) Published Notice. Notices inviting bids shall be published or posted at least ten days before the opening of the bids. Notices shall be published at least once in a newspaper of general circulation, serving the city; or shall be posted in at least three public places that have been designated as the places for posting public notices.

(B) Bidder's List. The purchasing agent shall solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list or who have requested that their names be added thereto.

(2) Bidder's Security. When deemed necessary by the purchasing agent, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be enTitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

(3) Bid Opening Procedure. Sealed bids shall be submitted to the city clerk and shall be identified as bids on the envelope. Bids shall be opened by the city clerk in public at the time and place stated in the public notices. A tabulation of all bids received shall be forwarded to the city council and shall be open to public inspection during regular business hours for a reasonable period of time. No bidder may withdraw his bid for a period of thirty days.

(4) Rejection of Bids. In its discretion, the city council may reject any and all bids presented and readvertise for bids or to exclude any item from the award of bid or waive any informalities on a bid.

(5) Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder presenting the best bid to the city. In considering the lowest and best bid, the city council may take into consideration the location and availability of spare parts, availability of service and the vendor's experience with the commodity he is offering and such factors as delivery.

(6) Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

(7) Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

(Ord. 226 § 1, 1976; Ord. 202 § 10, 1974).

The purchasing agent shall be responsible for inspection and testing supplies and equipment delivered to determine their conformance with the specifications set forth in the purchase order or contract. The purchasing agent 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. 202 § 11, 1974).

The purchasing agent and every officer and employee of the city is expressly prohibited from accepting, directly or indirectly, from any person, to which any purchase order or contract is or might be awarded, any rebate, gift or money. The offer of any such gratuity to an official or employee by any vendor or contractor, or prospective vendor or contractor, shall be cause for declaring such individual to be an irresponsible bidder and to disqualify him from future bidding pursuant to this chapter.

(Ord. 202 § 12, 1974).

The city administrator is authorized to determine whether any item of city-owned personal property is surplus to the present or future needs of the city.

(1) Such items so declared to be surplus shall be offered by him for sale on a competitive bid basis. Bids may be solicited by him or by the purchasing agent by written request, telephone, public notice posted on city property, by public auction, by advertisements in any newspaper or magazine or by any combination of such methods.

(2) The city administrator, or his designee, is authorized to sell to the highest bidder any item of surplus city personal property for which an offer of two hundred fifty dollars or less is received as the highest bid for such item, and any conglomerate surplus material for which the highest offer received is five hundred dollars or less. No sale of any item of surplus city personal property for which an offer in excess of two hundred fifty dollars is received, and no sale of any conglomerate material for which there is received an offer in excess of five hundred dollars, shall be made unless approved by the city council.

(3) When, after a reasonable effort has been made to obtain bids, no bids have been obtained for any item of city-owned personal property so declared to be surplus, the city administrator is authorized to dispose of such item for the highest scrap value that can be obtained therefor, and if a reasonable effort to do so produces no opportunity to sell the same for scrap, he may cause its destruction or any other disposition thereof.

(Ord. 202 § 13, 1974).