Cudahy Municipal Code Ch. 3.16 Purchasing System

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services 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 hereby adopted. All purchases or services or supplies for “public projects” as defined in Section 20161 of the Public Contract Code (or any successor to that section) shall be made in accordance with the Public Contract Code and with CMC 3.16.180 and 3.16.220, as applicable. All other purchases of supplies, services and equipment shall be made in accordance with this chapter. (Ord. 649 § 2, 2015).

In accordance with the provisions of Sections 54201 through 54203 of the Government Code of the state of California, the policies and procedures herein contained, as well as the policies and procedures adopted by subsequent rules and resolutions, have been adopted. The authority for purchase of supplies and equipment is vested in a purchasing officer and the procedures and policies herein contained as well as in supplemental rules and resolutions shall hereafter be followed with respect to the purchase of supplies and equipment, unless the provisions of CMC 3.16.110 should apply. (Ord. 649 § 2, 2015).

The city manager, or his designated deputy, shall serve as the purchasing officer. The purchasing officer shall have authority to:

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

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

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

(4) Discourage uniform bidding 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, services and equipment for the city;

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

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

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

(9) Supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

(10) 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

(11) Maintain a bidder’s list, vendor’s catalog file and records needed for the efficient operation of the purchasing department. (Ord. 649 § 2, 2015).

All departments using the purchasing department shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe. (Ord. 649 § 2, 2015).

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. (Ord. 649 § 2, 2015).

Using departments shall submit requests for supplies, services and equipment to the purchasing officer by standard requisition forms. (Ord. 649 § 2, 2015).

Purchases of supplies, services and equipment shall be made only by purchase requisition, purchase order, or, where appropriate, by formal written contract. (Ord. 649 § 2, 2015).

(1) Any alteration to, amendment of, or deviation from an awarded purchase order or contract as to scope, cost, time for completion, material, or equipment furnished as a part of the purchase order or contract, or any alteration to, amendment of, or deviation from the nature of work to be performed shall require the completion and issuance of a change order or execution of a contract amendment.

(2) Additions to work cannot be combined with deletions to work to avoid the change order requirement.

(3) If the original purchase order or contract was approved by the purchasing officer, then the purchasing officer or his or her designee may approve a change order for that purchase order or contract; provided the combined amount of the original purchase order and the change order does not exceed the purchasing officer’s purchasing authority. If the original purchase order or contract was approved by the council, then the purchasing officer or his or her designee may approve a change order in an amount that does not exceed the purchasing officer’s purchasing authority. All other change orders shall be approved by the council or the person, if any, designated in a contract approved by the council. No change order shall be binding on the city until approved as provided in this section.

(4) If a proposed contract modification, change order or request for extra work exceeds the limitations set upon the city manager by this section or resolution, and delay in obtaining city council approval is reasonably determined to subject the city to liability for damages incurred by a contractor, or to jeopardize the public health, welfare, or safety, or to otherwise result in potential detriment to the city, then the purchasing officer shall have authority to exceed the dollar amounts specified in the purchasing policy/municipal code. All contract modifications shall be subject to approval as to form by the city attorney.

(5) Change orders shall not be issued unless:

(a) The change order arises in good faith out of an unknown condition or unforeseen circumstance differing materially from the conditions of the purchase order or contract; or the change order arises due to an error, as determined by the city, in the city’s specifications that accompanied the bid solicitation; or the city desires to make a material substitution or addition to the project based on new information obtained during the construction phase of the project; and

(b) The change order does not change the purpose of the purchase order or contract; and

(c) With regard to a service contract or a contract for public project performance, the change order is reasonably related to the scope of work authorized under the original contract; and

(d) With regard to the purchase of equipment, goods or supplies, the change order is required to allow the equipment, goods or supplies to fulfill the purpose for which they were intended, and such change order does not authorize the purchase of additional equipment, goods or supplies that could also be purchased from another source and used compatibly with the equipment, goods or supplies purchased. (Ord. 649 § 2, 2015).

Without complying with the requirements of CMC 3.16.120 and 3.16.130, the purchasing officer may procure an item or service if such item or service is essentially unique and can only be met by a single patented, copyrighted or proprietary article or unique process or skill set available from a single or sole source. Nonexclusive examples of acceptable sole-source purchases are equipment for which there is no comparable competitive product, a component or replacement part for which there is no commercially available substitute and which can be obtained only from the manufacturer, or an item where compatibility with supplies, equipment, materials, general services or processes already in use by the city is the overriding consideration. (Ord. 672 § 2, 2017).

(1) Without complying with the requirements of CMC 3.16.120 and 3.16.130, the purchasing officer may participate in a cooperative purchasing agreement for the procurement of any items or services with any federal, state, county or local government agency when that agency has made their purchases in a competitive manner. The purchasing officer may participate in a cooperative purchasing agreement when the city can obtain items or services at a purchase price lower than that which the city can obtain through its normal purchasing procedures. In those instances where it is determined that purchasing through the federal, state, county or local government agencies will result in savings to the city, the purchasing officer is authorized to make such purchases.

(2) The purchasing officer may also purchase items or services directly from a vendor at a price established by competitive bidding by another federal, state, county or local government agency in substantial compliance with CMC 3.16.120 and 3.16.130 even if the city has not joined with that public agency in a cooperative purchase agreement. (Ord. 672 § 3, 2017; Ord. 649 § 2, 2015).

(1) Less than $5,000. Purchases of supplies, equipment, or services and sales of personal property of an estimated value in an amount less than $5,000 may be made by, or at the direction of, the purchasing officer in the open market without observing the procedures prescribed in subsection (2) of this section or prescribed in CMC 3.16.130.

(2) From $5,000 to $25,000. Purchases of supplies, equipment, or services and sales of personal property of an estimated value in an amount greater than $5,000 but less than $25,000 may be made by the purchasing officer in the open market without observing the procedure prescribed in CMC 3.16.130. Purchase requisitions or purchase orders shall, whenever possible, be based on at least three informal quotes and shall be awarded to the lowest responsible bidder. Purchases made pursuant to this subsection shall be authorized and signed for by the city manager, or in the city manager’s absence the designee, provided purchases of items authorized by the city manager or the designee are included as part of an approved and adopted budget for the city. The limitation affecting the authority of the designee shall not include that person designated as an acting city manager in the city manager’s absence or unavailability. (Ord. 649 § 2, 2015).

(1) Contracts for public projects within the meaning of Section 20161of the Public Contracts Code which exceed the expenditure limits of Section 20162of the Public Contracts Code shall be by bid procedures pursuant to this section and CMC 3.16.130. Bidding shall be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply, when the city council by a four-fifths majority determines after opening of bids that rejection of all bids and purchase on the open market will best serve the city, or when the commodity can be obtained from only one vendor.

(2) Prior to bid solicitation, the purchasing officer shall confirm the requested purchase is identified in the current fiscal year adopted budget. For items not identified in the current fiscal year adopted budget, the requesting department shall be required to receive city council approval at the time of contract award. (Ord. 728 § 2, 2022; Ord. 649 § 2, 2015).

Except as otherwise provided herein, purchases and contracts for supplies, services (other than professional services), equipment and the sale of personal property of estimated value greater than $25,000 shall be by purchase order or written contract with the lowest (or for purposes of CMC 3.16.190, highest) responsible bidder, as the case may be, pursuant to the procedure prescribed herein:

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

(a) Published Notice. Notice inviting bids shall be published at least 10 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 notices.

(b) Bidder’s List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder’s list or who have requested their names to be added thereto.

(c) Bulletin Board. The purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the City Hall;

(2) 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 refusal or failure to execute the contract within 10 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;

(3) 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 opened for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening;

(4) Rejection of Bids. In its discretion, the city council may reject any and all bids presented and readvertise for bids;

(5) Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder who meets the quality requirements. The decision of the city council shall be final. For purchases of supplies and equipment, determination of the lowest responsible bidder may include the adjustment of the bid price of a qualifying local vendor (as defined in CMC 3.16.220(2)(a)) according to the local vendor preference procedures described in CMC 3.16.220(2)(c). For purposes of this section, a “responsible bidder” means a bidder who has demonstrated the quality, fitness, capacity, and experience to satisfactorily perform the particular requirements of the city;

(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) No Bids. If no bids are received, the council may authorize the purchase of goods in compliance with informal bidding procedures prescribed in CMC 3.16.110(2);

(8) Performance Bonds. The city council shall have authority to require a performance bond before entering into 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, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 649 § 2, 2015).

Any procurement of supplies, materials, equipment or general services is exempt from the requirements of CMC 3.16.120 and 3.16.130 if the city council finds, by resolution adopted by not less than four-fifths of its members, that such procurement may be more economically and efficiently effected through the use of an alternate transactional process or alternate procurement procedure. This exception may not be applied to public projects which are subject to mandatory competitive bidding under applicable state law or any mandated informal bidding authorized under the Uniform Public Construction Cost Accounting Act. (Ord. 726 § 2, 2022).

The purchasing officer shall inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The purchasing officer 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. 649 § 2, 2015).

(1) Purchase of professional services provided by persons, firms, companies, or corporations (including, but not limited to, architecture, landscape architecture, engineering, environmental, land surveying, legal, accounting or construction management) shall be made on the basis of demonstrated competence and experience of the service provider and on the professional qualifications necessary for the satisfactory performance of the services required. The process for securing professional services may be through negotiation or through request for proposals; the purchasing officer will attempt to obtain information relating to prices and availability of such professional services from different sources prior to making the purchase; however, neither formal nor informal bidding shall be required prior to the purchase of professional services.

(2) The city manager shall sign all professional services contracts on behalf of the city. Professional services contracts will be prepared in accordance with the city’s standard consultants services agreement. Authorization to approve the contract value shall be subject to the limitations of CMC 3.16.110; furthermore, contracts with a contract value of greater than $25,000 shall require city council approval prior to execution, unless otherwise authorized pursuant to CMC 3.16.170.

(3) Unless otherwise limited by the CMC, or applicable state or federal law, the term of a contract shall be as set forth in the contract and may include extensions as authorized in the contract. The city manager may approve a multiyear contract; provided, that the value of the multiyear contract as extended does not exceed the city manager’s purchasing authority. Otherwise, multiyear contracts shall require the approval of the council. (Ord. 649 § 2, 2015).

During times of emergency, as declared by a four-fifths vote of the city council, emergency purchases may be made without competitive bidding and without compliance with this chapter. During times of emergency, if action is needed before the council has an opportunity to meet to declare an emergency, the city manager is authorized to order the repair of a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts.

An “emergency,” for purposes of this policy, is defined as a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Since emergency purchases do not normally provide the city an opportunity to obtain competitive quotes or properly encumber funds committed, sound judgment shall be used in keeping such orders to an absolute minimum. In addition, the following requirements shall apply:

(1) The finance department shall be contacted as soon as possible for an advance purchase order number, which may be given verbally, to cover the urgent or emergency transaction. If unable to contact the finance department, place the order and contact the finance department the next workday.

(2) A completed purchase order shall be submitted to the purchasing officer within two workdays, or as soon as the information is available. All purchase orders for urgent or emergency purchases shall be signed by the appropriate department head.

(3) Documentation explaining the circumstances and nature of the urgency or emergency purchase shall be submitted by the appropriate department head as follows:

(a) Purchases equal to or less than $12,500: Report to the purchasing officer by processing a requisition within one week.

(b) Purchases equal to $12,500 – $25,000: Require city manager’s (or designee in city manager’s absence or unavailability) approval prior to purchase. Report to the purchasing officer by processing a requisition within two days.

(c) Purchase of $25,000 or more requires city manager’s (or designee in city manager’s absence or unavailability) approval prior to purchase and report to the city council within two working days to explain the circumstances and necessity of the purchase.

(4) If the urgency or emergency purchase causes any budget line items to exceed the approved budget, it shall be the responsibility of the department requesting the purchase to obtain advance city council approval for an additional appropriation or to make a transfer to cover the purchase.

(5) For contracts under the purview of California Public Contract Code Section 20100 et seq., the city council must review the emergency action at its next regularly scheduled meeting, and each meeting thereafter until the action is terminated, to determine by four-fifths vote that there is a need to continue the action. (Ord. 649 § 2, 2015).

Whenever the city seeks to construct any public work, excluding projects on the state highway system, with design and construction costs in excess of $1,000,000, the city council may proceed to contract therefor as a design/build project in compliance with California Public Contract Code Section 22160 et seq., as amended, or any later enacted statute regulating design/build contracts. (Ord. 649 § 2, 2015).

All using departments shall submit to the purchasing officer, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to CMC 3.16.110, 3.16.120 and 3.16.130, as applicable. (Ord. 649 § 2, 2015).

All bidders and consultants shall disclose in writing to the purchasing officer any prior and current business and personal relationship with the city, members of the city council, and city employees prior to entering into any transaction or contractual arrangement with the city exceeding $5,000. (Ord. 649 § 2, 2015).

No employee, member of the council, nor any appointed member of a city commission, board or committee, shall be financially interested, directly or indirectly, in any purchase order or contract for furnishing equipment, goods, supplies or services within the purview of this chapter. Any purchase order or contract involving former city employees, members of the council, or any appointed member of a city commission, board or committee shall be awarded solely by the council at a public meeting. (Ord. 649 § 2, 2015).

(1) The city has established a local vendor preference program to be applied in the procurement of supplies and equipment under CMC 3.16.130.

(2) The adjustment to bids provided for under the local vendor preference program shall be implemented according to the following:

(a) Qualification for Local Vendor Preference. In the procurement of supplies and equipment for the city’s requirements, preference shall be given to those vendors who: (i) qualify as a local vendor (“qualifying local vendor”) under this subsection and (ii) submit a written statement in their bid package requesting to be considered a qualifying local vendor. In order to qualify as a local vendor, the bidder must certify the following information as part of the bid package:

(i) It has fixed facilities with employees located within the city limits;

(ii) It has a business street address (post office box or residential address shall not suffice to establish a local presence);

(iii) All sales tax returns for the goods purchased must be reported to the state through a business within the geographic boundaries of the city; and

(iv) It has a city business license.

(b) False Certifications. False certifications shall be immediate grounds for rejection of any bid or, if the bid is awarded, grounds for voiding the bid, terminating any agreement, and seeking damages thereto. Failure to certify the above information shall result in the bid being considered by the city without any adjustment for a local vendor as described in subsection (2)(c) of this section.

(c) Application of Local Vendor Preference. The bid of a qualifying local vendor shall be adjusted according to the following procedures:

(i) In the tabulation of bids to determine the lowest responsible bidder, the bid of each qualifying local vendor shall be reduced by five percent.

(ii) The reduced bid price of the qualifying local vendor will then be compared to the other bids received by the city to determine the lowest responsible bidder under CMC 3.16.130. Notwithstanding this reduction for purposes of determining the lowest responsible bidder, the contract amount with the lowest responsible bidder shall be at the bid price. (Ord. 649 § 2, 2015).

(1) All vendors providing paper products and printing and writing paper shall:

(a) If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consist of at least 30 percent, by fiber weight, postconsumer fiber instead of nonrecycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than nonrecycled items or at a total cost of no more than 10 percent of the total cost for nonrecycled items.

(b) Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

(c) Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the city. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

(d) Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the city are eligible to be labeled with an unqualified recyclable label as defined in 16 CFR Section 260.12 (2013).

(e) Provide records to the city’s recovered organic waste product procurement recordkeeping staff, in accordance with the city’s recycled-content paper procurement policy(ies) of all paper products and printing and writing paper purchases within 30 days of the purchase (both recycled content and nonrecycled content, if any is purchased) made by any division or department or employee of the city. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in subsections (2)(c) and (d) of this section for recycled content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if nonrecycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided.

(2) Definitions.

(a) “Paper products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).

(b) “Printing and writing papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, notepads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).

(c) “Recovered organic waste products” means products made from California, landfill-diverted recovered organic waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60).

(d) “Recycled-content paper” means paper products and printing and writing paper that consist of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61). (Ord. 716 § 3, 2021).