Corte Madera Municipal Code Ch. 3.40 Purchasing System

This chapter shall be known as the Corte Madera Purchasing Ordinance and shall apply to the purchase of all materials, supplies, equipment and services other than those for public projects as specified in Chapter 3.33 of this Municipal Code.

(Ord. 757 § 1 (part), 1989; Ord. No. 1004, § 3, 2-16-2021)

In order to establish efficient procedures for the purchase of materials, supplies, equipment and services; to secure for the town materials, supplies, equipment and services 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. This chapter is established under Government Code Sections 54201-54205.

(Ord. 757 § 1 (part), 1989)

Under the direction of the town manager, there is created a centralized purchasing office which is vested with authority for the purchase of all materials, supplies, equipment and services for all departments, divisions, officers, employees, boards, commissions, committees, subsidiary districts, joint power authorities, and any other agencies or activities under the administrative control of the town, hereinafter referred to collectively as "users."

(Ord. 757 § 1 (part), 1989)

There is created the position of purchasing agent. The purchasing agent shall be the head and have general supervision of the purchasing office. The duties of purchasing agent may be combined with those of any other office or position. The town manager is hereby appointed as purchasing agent. The town manager may designate a subordinate officer or employee of the town to perform these duties.

(Ord. 757 § 1 (part), 1989)

The purchasing agent shall have the authority to:

(a) Supervise and/or purchase or contract for materials, supplies, equipment and services required by the town in accordance with purchasing procedures prescribed by this chapter and the town's Environmentally Preferable Purchasing Policy;

(b) Supervise and/or negotiate and execute contracts for the purchase of materials, supplies, equipment and services;

(c) Act to procure for the town the needed quality in materials, supplies, equipment and services at the least expense to the town;

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

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

(f) Prescribe and maintain such forms and procedures as are reasonably necessary to the operation of this chapter;

(g) Supervise the inspection of all materials, supplies, equipment and services to ensure conformance with specifications or requirements;

(h) Arrange for the transfer of surplus or unused materials, supplies and equipment within the town organization as needed;

(i) Dispose of obsolete or unusable materials, supplies and equipment;

(j) Maintain a bidders' list, vendors' catalog file in coordination with the Finance Department and records needed for the efficient operation of the purchasing office;

(k) For purchases exempt from bidding, periodically reexamine current vendors' prices as to their competitiveness.

(l) To approve contracts of not more than one hundred thousand dollars.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1052, § 2, 12-2-2025)

All users shall file with the purchasing agent detailed estimates of their requirements in materials, supplies, equipment and services in such manner, at such time, and for such future periods as prescribed by the purchasing agent for budget preparation purposes. The requirement for preparing estimates shall in no way prevent any user from filing with the purchasing agent at any time a requisition for any materials, supplies, equipment, or services the need for which was not foreseen when the detailed estimates were filed.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1052, § 2, 12-2-2025)

All users shall submit requests for materials, supplies, equipment and services to the purchasing agent by standard requisition forms, or by other means as may be established by the purchasing agent. For the purposes and within the limits of moneys appropriated therefor, the purchasing agent may question the propriety of any requisition and may require from the head of the user justification of the quality or quantity requisitioned.

(Ord. 757 § 1 (part), 1989)

Purchases of materials, supplies, equipment and general services not exceeding an estimated cost of one thousand dollars may be made by any user, provided, however, there exists, at the time of purchase, sufficient unencumbered moneys in the budget activity(s) against which the purchase is to be charged. Unless otherwise directed by the purchasing agent, no user is required to secure the purchasing agent's prior consent to such purchases.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1052, § 2, 12-2-2025)

(a) Purchases of materials, supplies, equipment and general services over one thousand dollars but not exceeding ten thousand dollars shall be from the vendor catalog. Except as otherwise provided herein, no purchases shall be made unless the prior approval of the purchasing agent, a department head, or a designated representative of the purchasing agent has been obtained.

(b) It is preferred but not required that at least three quotations be solicitated and obtained from which the lowest responsible bidder can be selected to effect the purchase of materials, supplies, equipment and services contemplated in this Section 3.40.090.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

Editor's note— Ord. No. 1004, § 3, adopted Feb. 16, 2021 amended § 3.40.090 and in doing so changed the title of said section from "Purchases of one thousand one dollars to five thousand dollars" to "Purchases of one thousand one dollars to ten thousand dollars," as set out herein.

Except in cases of emergency or in cases where specific authority has been first obtained, the purchasing agent shall not purchase materials, supplies, equipment or services unless there exists sufficient unencumbered moneys in the budget activity(s) against which a purchase is to be charged.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1052, § 2, 12-2-2025)

The policy of the town shall be to receive and consider at least three bids on all purchases of materials, supplies, equipment and general services over ten thousand dollars following the "open market procedure" of Section 3.40.160 or the "formal contract procedure" of Section 3.40.170 of this chapter whenever possible.

(Ord. 757 § 1 (part), 1989; Ord. No. 1004, § 3, 2-16-2021)

For purposes of this chapter, "lowest responsible bidder" shall mean that bidder which best responds in price, quality, service, fitness, or capacity to the particular requirements of the town as determined by the town manager. Price alone shall not be the determining factor but shall be considered along with the other factors including, but not limited to, the ability of the bidder to deliver, availability of parts or service, prior experience with the bidder, and other factors relating to the particular needs of the town for the materials, supplies, equipment or services to be purchased.

(Ord. 757 § 1 (part), 1989)

Bidding shall not be required under the following conditions:

(a) When the amount of the purchase is not more than ten thousand dollars;

(b) When an emergency requires that an order be placed or a purchase be made immediately;

(c) When the purchase can be obtained from only one vendor and no equivalents or alternatives exist;

(d) When the purchase is an expenditure of no more than one hundred thousand dollars for the professional services of engineers, architects, accountants, attorneys, doctors and other professional classes where the town is depending upon the skill, integrity, judgment, and ability of the service;

(e) When purchases are being made through the State of California or other public sector cooperative purchasing program;

(f) When pooled purchases with other public agencies are being made.

(g) When the town council finds that negotiation would best serve the town due to the nature of the project, good, supply, equipment, or service.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

Purchases of an expenditure of more than one hundred thousand dollars per year for the professional services of engineers, architects, accountants, attorneys, doctors and other professional classes, where the town is depending upon the skill, integrity, judgment, and ability of the service, shall be made by a competitive process determined by the purchasing agent.

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

The policy of the town shall be to purchase materials, supplies, equipment and services from vendors whose principal place of business is located within the corporate limits (hereinafter sometimes referred to as "local vendors"). To accomplish this policy, the bid amounts of all local vendors who submit bids or quotations otherwise in conformance with this chapter shall be deemed reduced by five percent of said bid amount for purposes of determining whether local vendors' bids are the lowest bid(s) submitted.

(Ord. 757 § 1 (part), 1989)

The policy of the town shall be to purchase materials, supplies, and equipment that are consistent with the town's goals of environmental sustainability and greenhouse gas reduction. To accomplish this policy, the town manager shall establish and periodically update an environmentally preferable purchasing policy to ensure that the town's goals are reflected in all of the town's purchases of supplies and equipment. To accomplish this policy, the bid amounts of all vendors who submit bids or quotations for supplies or equipment in compliance with the environmentally preferable purchasing policy and otherwise in conformance with this chapter shall be deemed reduced by five percent of said bid amount for purposes of determining whether local vendors' bids are the lowest bid(s) submitted.

(Ord. No. 1052, § 2, 12-2-2025)

Editor's note— Ord. No. 1052, § 2, December 2, 2025, repealed § 3.40.050, which pertained to blanket purchase orders and derived from Ord. 757 § 1 (part) 1989.

Purchases of materials, supplies, equipment, and general services having a total estimated value over ten thousand dollars but not more than one hundred thousand dollars per year shall be made by the purchasing agent following the "open market procedure" described in this section.

(a) Number of Bids. Open market purchases shall, whenever possible, be based on at least three bids, and shall be awarded by the purchasing agent to the lowest responsible bidder. In the event the utilization of the "open-market procedure" results in the submittal of a lowest, responsible bid over one hundred thousand dollars, but not more than one hundred and five thousand dollars, the bid shall be awarded to the lowest responsible bidder. In the event the bid of the lowest responsible bidder is more than one hundred and five thousand dollars, all bids shall be rejected by the purchasing agent and the "formal contract procedure" specified in Section 3.40.170 must then be followed.

(b) Notice Inviting Bids. The purchasing agent shall solicit bids by written requests to prospective vendors, by telephone, or by public notice posted on the town's website or by a combination of such notifications. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, the time and place for submitting bids, and the security required, if any.

(c) Written Bids. Sealed written bids shall be submitted to the purchasing agent who shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection.

(d) Rejection of bids. In its his or her discretion, the purchasing agent may reject any and all bids presented and solicit new bids pursuant to the procedure hereinabove prescribed.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

Purchases of materials, supplies, equipment, and general services having a total estimated value over one hundred thousand dollars shall be by written contract with the lowest responsible bidder. Such written contract shall be entered into only after the following procedures are followed (said procedures are herein called the "formal contract procedures"):

(a) 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, the time and place for opening bids, and the security required, if any.

(1) Published Notice. Notices inviting bids shall be published at least ten days before the date of opening of the bids. Notices shall be published by public notice posted on the town's website.

(2) Bidders' List. The purchasing agent shall also solicit sealed bids from all responsible prospective vendors whose names are on the bidders' list or who have made written request that their names be added thereto, or from such other vendors who are not on the list, but known by the purchasing agent.

(3) Bulletin Board. The purchasing agent shall also advertise pending purchases by a notice posted on a public bulletin board at town hall.

(b) Bidders' 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, however, that a successful bidder shall forfeit his/her bid security upon his/her refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless in the latter event the town is solely responsible for the delay in executing the contract. The town council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the town council awards the contract to the next lowest bidder under such circumstances, the amount of the lowest bidder's security shall be applied by the town to the contract price differential between the lowest bid and the second lowest bid, and any excess amount of the security not so applied, shall be returned to the lowest bidder. In the event the lowest responsible bidder fails to execute the contract, and as a result thereof, the town council rejects all bids presented and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder.

(c) Bid Opening Procedure. Sealed bids shall be submitted to the purchasing agent 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.

(d) Rejection of Bids. In his or her discretion, the purchasing agent may reject any and all bids presented and readvertise for bids pursuant to the procedure hereinabove prescribed.

(e) Award of Contracts. Except as otherwise provided herein, contracts shall be awarded by the town council to the lowest responsible bidder.

(f) 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 or readvertising for bids, the town council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.

(g) Performance Bonds. The purchasing agent shall have authority to require a performance bond before entering a contract in such amount as the purchasing agent shall find reasonably necessary to protect the best interests of the town. If the purchasing agent requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

(Ord. 757 § 1 (part), 1989)

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

The purchasing agent may modify a contract, provided that the modification does not change the scope of the character, material or services of the original contract and the total amount of the contract after the modification is within the purchasing agent's award authority.

(Ord. No. 1004, § 3, 2-16-2021; Ord. No. 1052, § 2, 12-2-2025)

The purchasing agent shall inspect materials, supplies and equipment delivered, and to the extent possible, services provided, to determine conformance with the specifications set forth in the order or contract. The purchasing agent shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries, which are necessary to determine quality and conformance with specifications.

(Ord. 757 § 1 (part), 1989)

To split or divide any purchase of materials, supplies, equipment, general services or professional services into two or more purchases for the purpose of evading the requirements of this chapter shall constitute misconduct.

(Ord. No. 1052, § 2, 12-2-2025)

All users shall submit to the purchasing agent, at such times and on such forms as the purchasing agent shall prescribe, reports showing all materials, supplies and equipment which are not longer used or which have become obsolete or worn out. The purchasing agent shall have the authority to transfer the surplus materials, supplies and equipment to other users in lieu of purchasing new and additional stock of the same or similar items. The purchasing agent shall have the authority to dispose of unusable surplus as follows:

(a) By exchange;

(b) By trade-in;

(c) By bid;

(d) By negotiation;

(e) By any other means that would result in some return to the town;

(f) By donation to a nonprofit organization;

(g) If worthless, by outright disposal.

(Ord. 757 § 1 (part), 1989)