Chapter 3.12 — PURCHASE OF SUPPLIES, EQUIPMENT AND SERVICES

For statutory provisions on bids for local public contracts, see Gov. Code §37901 et seq. ; for provisions on local purchases of supplies and equipment, see Gov. Code §54201.

In order to establish efficient procedures for the purchase of supplies, equipment and services, to secure for the city supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted.

(Ord. 583 §1b, 1999; Ord. 145 §1, 1958).

There is created the position of Purchasing Officer. The Purchasing Officer of the City of Corning is the City Manager or his designee. The duties of Purchasing Officer may be combined with those of any other office or position. The Purchasing Officer shall have the duty and authority to:

A.

Purchase or contract for supplies, equipment and services required by any City department in accordance with purchasing procedures prescribed by this chapter such administrative regulations as the Purchasing Officer shall adopt and such other rules and regulations as shall be prescribed by the City Council;

B.

Negotiate and recommend execution of contracts for the purchase of supplies, equipment and services;

C.

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

D.

Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

E.

Prepare and recommend to the city council rules governing the purchase of supplies, equipment and services for the city;

F.

Prepare and recommend to the city council revisions and amendments to the purchasing rules;

G.

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

H.

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

I.

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

J.

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;

K.

Maintain a bidders' list, vendors catalog file and records needed for the efficient operation of the purchasing procedures of the city.

(Ord. 583 §lc(part), 1999; Ord. 444 §4, 1986; Ord. 145 §2, 1958).

The purchasing officer, with approval of the city council, may authorize in writing any department to purchase or contract for specified supplies, equipment and services independently of the purchasing officer, but he or she shall require that such purchases or contracts shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization.

(Ord. 583 §§1c(part), 1d, 1999; Ord. 145 §3, 1958).

Using departments shall submit requests for supplies, equipment and services to the purchasing officer by standard requisition forms.

(Ord. 583 §1e, 1999; Ord. 145 §4, 1958).

Purchases of supplies, equipment and services in excess of one hundred dollars shall be made only by purchase order or by other documentation approved by the purchasing officer.

A.

For purchases under one thousand dollars:

Up to one hundred dollars may be paid for in advance or on a reimbursable basis from petty cash;

Any single purchase under one thousand dollars may be made by authorized personnel from a list of established vendors with whom the city has open purchase orders;

The purchasing officer shall have authority to issue purchase orders or other documents required for purchases under one thousand dollars from vendors with which the city has established an open purchase order procedure.

(Ord. 603 (part), 2004: Ord. 583 §1g, 1999; Ord. 145 §6, 1958).

Except in cases of emergency, the purchasing officer shall not issue any purchase order or other form of authorization for supplies, equipment or services unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. 583 §lh, 1999; Ord. 145 §7, 1958).

The following procedures shall be followed with regard to all purchases of supplies, equipment and services (except professional services such as legal services, accounting services, engineering, etc.) by the City of Corning:

A.

For purchases under one thousand dollars:

Up to fifty dollars may be paid for in advance or on a reimbursable basis from petty cash;

Any single purchase under one thousand dollars may be made by authorized personnel from a list of established vendors with whom the City has open purchase orders;

The Purchasing Officer shall have authority to issue purchase orders or other documents required for purchases under one thousand dollars from vendors with which the City has established an open purchase order procedure.

B.

For purchases over one thousand dollars but less than ten thousand dollars:

Three faxed or otherwise documented price quotations shall be obtained for all purchases of supplies, equipment or services unless the Purchasing Officer makes a written determination that the purchase falls within one of the exceptions specified in Section 3.12.082 of this chapter.

The purchase of supplies, equipment or services shall be made from the vendor with the lowest price if the products or services offered conform to the City's specifications unless the Purchasing Officer makes a written determination that the purchase falls within one of the exceptions specified in Section 3.12.082 of this chapter.

City Council approval for specific purchases in this price range need not be obtained in advance.

C.

For purchases of ten thousand dollars or more but less than fifteen thousand dollars:

Three faxed or otherwise documented price quotations shall be obtained for all purchases of supplies, equipment or services unless the City Council determines that the purchase falls within one of the exceptions specified in Section 3.12.082 of this chapter.

The purchase of supplies, equipment or services shall be made from the vendor with the lowest price if the products or services offered conform to the City's specifications unless the City Council determines that the purchase falls within one of the exceptions specified in Section 3.12.082 of this chapter.

City Council approval for specific purchases in this price range must be obtained in advance.

D.

For purchases of fifteen thousand dollars or more the following formal bid procedures shall be followed unless the City Council determines that the purchase falls within one of the exceptions specified in Section 3.12.082 of this chapter.

E.

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

Notice inviting bids shall be published at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the City, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.

The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have requested their names to be added thereto.

F.

Bidder's Security. When deemed necessary by the Purchasing Officer, 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 a 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 responsible bidder. If the City Council awards the contract 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.

G.

Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. 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 calendar days after the bid opening.

H.

Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and readvertise for bids.

I.

Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder unless the Council determines that one of the other bids submitted better meets the needs of the City with respect to the supplies or equipment being acquired. If the Council determines that the purchase is to be made from someone other than the low bidder, it shall state on the record the reasons which justify making the purchase at a price higher than the lowest amount bid. The Council retains the right to reject all bids and to have staff solicit new bids if the bids received are too high or do not satisfactorily meet the needs of the City. The City Council is the administrative body vested with complete authority to make final decisions with respect to the foregoing matters.

J.

Tie Bids. If two or more bids received are for the same total 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.

K.

Security for Contracts. The city council shall have authority to require a performance bond or other type of security before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond or other type of security, the form and amount of the security shall be described in the notice inviting bids.

(Ord. 583 §§1i, j, 1999; Ord. 453 §1, 1986; Ord. 444 §1, 1986; Ord. 323 §3, 1978; Ord. 145 §8, 1958).

(Ord. No. 648, § 2, 11-22-2011)

A.

The procedures set forth above may be dispensed with only when:

An emergency requires that the purchase be made immediately;

The product or services being sought are of such a unique nature that they are reasonably available from only a single source;

The services being sought are of a professional or other nature where factors other than price are considered significant;

The product or services being sought have already been put out to bid by the state or another public entity and the city may utilize the benefits of that process to obtain a competitive price;

The product being sought is a used or surplus product and it would be extremely difficult to seek competitive bids for something which is similar in nature.

The City Council determines that the supplies or equipment being sought should not go out to formal bid because the City's needs will be better met by soliciting prices from several different vendors, negotiating prices from a single vendor or following other procedures designed to expeditiously acquire what the City needs at a reasonable price. This exception to the formal bidding requirement recognizes that the lowest price available is a very important consideration but that it should not be the sole consideration when the City is also seeking the best quality product which most closely meets the City's needs. When this exception is applied, it shall only be done by the City Council and the final price, however it has been arrived at, shall only become a binding commitment of the City when the City Council approves it and authorizes the purchase to take place.

B.

The purchasing officer shall not have authority to invoke any of the foregoing exceptions to purchasing procedures when services rather than supplies and/or equipment are the subject of the purchase.

C.

When the purchasing officer or the city council authorizes a purchase using one or more of the foregoing exceptions from the regular purchasing procedures, the vendor to be used and the price to be paid should be thoroughly researched and aggressively negotiated so that the product or services being obtained are in the best interests of the city.

(Ord. 583 §1k, 1999).

(Ord. No. 648, § 2, 11-22-2011)

All individuals requiring petty cash reimbursement or advance petty cash disbursals shall be required to fill out the appropriate claim form. Receipts shall be required to substantiate all purchases. No petty cash shall be dispensed without the department head and the city clerk, or in the alternative, the purchasing agent's written approval. All receipts for advance petty cash must be returned within two days. Any disbursements in excess of one hundred dollars will be made by city draft or check.

(Ord. 603 (part), 2004: Ord. 583 §11, 1999; Ord. 444 §2, 1986).

The City of Corning recognizes that strategies that promote the use of local vendors and service providers help create a sustainable economy and preserve local businesses. The use of local businesses contributes toward retaining local dollars within the community and strengthens employment opportunities. It is the policy of the city to promote employment and business opportunities for local businesses on all contracts and give preference to Tehama County businesses and consultants to the extent consistent with the law and interests of the public.

(Ord. No. 686, 3-24-2020)

A local business is defined as a business or consultant who meets all the following qualifications:

Has a valid physical address located within the County of Tehama from which the vendor or consultant operates or performs business on a day-to-day basis;

Has conducted business in Corning for at least six months prior to submittal of a qualifying bid; and

Holds a valid City of Corning business license for at least six months prior to submittal of a qualifying bid.

(Ord. No. 686, 3-24-2020)

Departments shall consider the locality of consultants or businesses and their sub-consultants when selecting business for purchases or service contracts. If there is more than one business or service provider being considered and the providers are competitively matched in terms of other criteria, local service providers should be selected.

When comparing the prices offered by bidders, local businesses may be given a five percent local preference value for purposes of quantitative comparisons in determining the lowest responsible bidder. The financial value of this local preference shall not be higher than one hundred fifty thousand dollars. Application of the local preference is for comparison purposes only when evaluating proposals and does not actually reduce the amount ultimately paid to the successful Vendor. This policy applies in all cases when the city is soliciting proposals for products or services, except as noted below.

(Ord. No. 686, 3-24-2020)

The policy to select a local service provider does not apply in the following scenarios:

Services provided under a cooperative purchasing agreement.

Contracts which are funded in whole or in part by a governmental entity, and the laws, regulations or policies governing such funding prohibit application of a local preference.

Construction contracts or other contracts procured under authority which requires award to the lowest responsible bidder without an exception for a local preference criterion or which otherwise does not allow consideration of a local preference criterion.

Contracts procured under emergency situations.

When the city manager determines that application of this policy would hinder the operational effectiveness or public benefit of the city.

(Ord. No. 686, 3-24-2020)

The preference established in this policy shall in no way be construed to inhibit, limit or restrict the right and obligation of the city to compare quality and fitness for use of services proposed for purchase and compare the qualifications, character, responsibility and fitness of all persons, firms, or corporations submitting bids or proposals. Nor shall the preference established in this policy be construed to prohibit the right of the city from giving any other preference permitted by law.

(Ord. No. 686, 3-24-2020)

Where the city will be paying sales tax on the purchase, the local business must possess a valid resale license from the state board of equalization showing evidence of a City of Corning address. The payment of the local share of the sales tax must go to the City of Corning.

The local business must not be in default or delinquent on any fee, tax or charge owed to the City of Corning or the County of Tehama.

(Ord. No. 686, 3-24-2020)

Any vendor or consultant claiming to be a local business shall provide a signed declaration when submitting their bid. The city shall verify the accuracy of the declaration and shall have sole discretion to determine if a consultant meets the definition of "local business".

(Ord. No. 686, 3-24-2020)