Del Mar Municipal Code Ch. 7.04 Purchase of Supplies, Equipment and Services

The purposes of this Chapter are to define the centralized system of the City of the purchase of supplies, equipment and services to provide for the fair and equitable treatment of all persons involved in the purchasing process, to obtain the highest possible value in exchange for public funds and to safeguard the quality and the integrity of the purchasing system.

(Ord. No. 547; Ord. No. 827; Ord. No. 1009, § 2(Exh. A), 9-9-2024)

For the purposes of this chapter, the following definitions apply:

A. "Appropriation" refers to funds set aside through the budgeting process by the City Council for a specific use.

B. "Best Value" means the best value to the City based on all factors, including, but not limited to, the following:

1. Cost;

2. The ability, capacity and skill of a vendor/contractor/consultant to perform a contract or provide the supplies, services or equipment required;

3. The ability of a vendor/contractor/consultant to provide the supplies, services or equipment promptly or within the time specified without delay or interferences;

4. The character, integrity, reputation, judgment, experience and efficiency of a vendor/contractor/consultant;

5. The quality of a vendor/contractor/consultant's performance on previous purchases by the City; and

6. The ability of a vendor/contractor/consultant to provide future maintenance, repairs, parts and services for the use of the supplies purchased.

C. "Change Order" is synonymous to "amendment" and is a written amendment executed by both parties to a contract modifying the terms of an existing contract. A change order may revise, add to, or delete previous requirements of the work, adjust the contract sum, or adjust the time for completion of the contract.

D. "Contract" is synonymous to "Agreement" and, regardless of which term is used, it means an agreement between the City and one or more other parties for the purchase or disposition of goods, services, professional services, and/or construction projects.

E. "Cooperative Purchasing" is a form of purchasing that utilizes the competitive pricing and terms of a contract or program entered into by another government entity or cooperative program that includes other governmental agencies following a bidding process (also referenced as "piggybacking").

F. "Debarment" or "Debarred" means the administrative action taken by the City to declare that a Contractor is ineligible to submit a bid, or be awarded a service, procurement, public works contract, or any other contract with the City. Debarment is an administrative sanction to be imposed only in the public interest for the City's protection, and is not imposed for purposes of punishment.

G. "Emergency" means 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. Determination of an "emergency" is defined as any breakdown in machinery or equipment, the interruption of an essential service, or any threat to public health, safety or welfare. Determination of emergency shall not require a formal proclamation, but shall be based upon the sound judgment and discretion of the City Manager or an authorized Purchasing Officer, as applicable.

H. "Responsible Bidder" means a bidder determined by the awarding authority to have demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the contract, including but not limited to being able to provide future maintenance, repair, parts and service for the use of the goods purchased, and if applicable; and having a record of satisfactory performance under prior contracts with the City or other purchasers where such bidder has previously been awarded such contract.

I. "Responsive Bidder" means a bidder determined by the City to have submitted a bid or proposal that conforms in all material respects to the requirements of the bid, contract, or proposal documents.

J. "Professional Services" means all professional or special services that involve the exercise of professional discretion and independent judgment based on advanced or specialized knowledge, expertise or training gained by formal study or experience. Professional services are performed by persons in a professional occupation, provide a recommended course of action or personal expertise, or provide an end product or service. Professional services include, but are not limited to, consulting and performing services for accounting, auditing, computer hardware and software support, architectural, engineering, planning, environmental, land surveying, construction project management, redevelopment, financial, economic, personnel, social services, animal control, legal, management, communication, and other similar professional functions which may be necessary for the operation of the City.

K. "Proposal" is synonymous to "bid" and means an offer at set prices and terms or an offer to enter into a contract submitted in response to a notice inviting bids or a request for proposals or request for qualifications.

L. "Purchases" means supplies, materials, equipment and personal property and any transaction by which the City acquires ownership, as well as leases or rentals.

M. "Specifications" means the description of the physical and/or functional characteristics or of the nature of the required goods, services, professional services, and/or construction projects.

N. "Task Order" is a type of sub-contract issued by the City to a vendor/consultant/contractor who has already been awarded the initial contract. Task Orders are intended to initiate a specific job to meet the over-arching goals of the main contract.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

A. A "Purchasing Officer" is each department head of the City or their designee for the department they oversee.

B. In addition to administering the other procedures of this Chapter, the Purchasing Officer:

1. Shall keep informed of current developments in market conditions and new products and shall maintain records needed for the efficient purchase of supplies and equipment for the Purchasing Officer's department

2. Shall first consider sources of supplies, services and equipment located within the City;

3. Shall inspect supplies and equipment delivered to determine their conformance with the specifications, and may require the vendor to reimburse the City for the performance of chemical and physical tests on samples;

4. For services, shall review the services performed by the consultant/service provider and authorize payment only after determining services have been satisfactorily performed.

C. The City Manager may authorize, in writing, a City employee to purchase specified supplies and equipment, independently from the Purchasing Officer of a City department. The authorized employee shall comply with the procedures of this Chapter and shall make periodic reports to the City Manager on the status of the purchase. The City Manager shall ensure that each individual so authorized has filed a financial disclosure statement in accordance with this Code.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

A. The adopted budget for each department shall include the needs for supplies and equipment of that department during the fiscal year.

B. Each Purchasing Officer shall ensure that sufficient documentation is submitted with the request for payment to demonstrate compliance with the procedures of this Chapter and to justify the acquisition and acceptance of the supplies or equipment.

C. Each Purchasing Officer shall submit a report to the City Manager showing all supplies and equipment on hand in the department that are no longer useful to the department upon request. The Purchasing Officer may exchange or trade in such supplies and equipment as part of a purchase only after approval from City Manager. The City Manager may direct the transfer of surplus supplies and equipment to another City department. The City Manager may direct the disposal of such surplus supplies and equipment. The City Manager shall have the authority to delegate the disposal of such surplus and equipment as set forth in this Chapter by memorandum or by administrative order.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

If the estimated value of the purchase of supplies, services or equipment is $5,000.00 or less, the Purchasing Officer may:

A. Select a vendor, without bid;

B. Complete the purchase transaction or place the order; and

C. After supplies, services or equipment have been received, submit the invoice to the Finance Division head for placement on the warrant list/list of demands.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

If the estimated value of the purchase of supplies, services, excluding professional services, or equipment is $5,000.01 or more, but less than $60,000.01, the Purchasing Officer shall:

A. Solicit informal bids/proposals by written and telephonic request to prospective vendors.

B. Require bids/proposals to be in writing and transmitted to the City as specified in the bid documents.

C. Seek at least three bids/proposals, unless the purchase qualifies for exemption procedure set forth in Chapter 7.04.090.

D. Recommend the responsible and responsive bidder in conformity with the specifications and/or qualifications as appropriate.

1. If the goods, services, and/or equipment specified in the request are of a generic quality and a vendor with particular attributes is not required to meet the needs of the City and the purposes of this chapter, then the Purchasing Officer shall select the bidder whose proposal offers to sell the supplies/equipment at the lowest price.

2. If vendor reliability, experience, availability, or expertise is a component of meeting the needs of the City and the purposes of this Chapter, then the Purchasing Officer shall award a purchase based on best value and need not necessarily purchase from the bidder proposing the lowest price.

E. Prepare and submit a requisition to the Finance Division head for approval.

F. The Finance Division head or their designee will issue a purchase order to the selected vendor.

G. After supplies, services or equipment have been received, the Purchasing Officer shall submit the invoice to the Finance Division head for placement on the warrant list/list of demands.

H. The Purchasing Officer shall have the option to purchase goods, services, and/or equipment in an amount of $5,000.01 or more, but less than $60,000.01, utilizing the formal bidding procedure set forth in Chapter 7.04.060.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

If the estimated value of the purchase of supplies, services, excluding professional services, or equipment is $60,000.01 or more, the following provisions shall be satisfied:

A. If funds have not been appropriated in the current fiscal year for the supplies, services or equipment, the Purchasing Officer shall receive authorization from City Council to solicit bids and/or proposals.

B. Provided the City Council has authorized the solicitation of bids and/or proposals or funds have been appropriated in the current fiscal year, the Purchasing Officer shall proceed as follows:

1. For the purchase of supplies, equipment, and services, excluding professional services, the Purchasing Officer shall publish an electronic notice soliciting bids/proposals on the City's website at least 15 days before the date of opening of the bids or proposal submittal date.

2. For the purchase of Public Works construction and capital improvement projects that are not subject to the alternative bidding procedure as set forth in Chapter 7.20, a notice soliciting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The first publication or posting of the notice shall be at least 15 days before the date of opening the bids. In addition to posting the Notice on the City's website or bid platform, the Notice shall be published at least twice, not less than five days apart, in a newspaper of general circulation, or as required by the Public Contract Code.

C. The Purchasing Officer shall include in the notice soliciting bids/proposals:

1. The requirement that the bid/proposal be in writing.

2. For Public Works construction and capital improvement projects, the requirement that the bid must be sealed.

3. A general description of the supplies, services or equipment sought to be purchased.

4. The location where bid blanks, specifications and/or required services and qualifications may be obtained.

5. The time and place for opening bids/proposals.

6. The security required, if any.

7. The Purchasing Officer has authority to require a performance and/or payment bond as a condition of any contract in such amount as is reasonably necessary to protect the best interests of the City. If the Purchasing Officer requires a performance/payment bond, the form and amount of the bond shall be described in the notice inviting bids.

D. The Purchasing Officer may require a security deposit to be submitted as a condition for considering a bid/proposal. The amount of the security deposit shall be sufficient to reimburse the City for costs incurred if the bidder is successful but fails to execute the contract or fails to perform obligations under the contract. Bid security shall be returned to each unsuccessful bidder. A successful bidder shall forfeit their security upon refusal or failure to execute a contract within 15 days after notice of award of that contract, unless the City is responsible for the delay. The City may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible and responsive bidder. If the City 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.

E. The City Clerk or their designee shall open the sealed bids in public and non-sealed bids/proposals internally and submit to the City Council a recommendation regarding the award of the contract.

F. The City Council may award the contract to the responsible and responsive bidder submitting the lowest bid for Public Works constructions and capital improvement projects, in conformity with the specifications, or to other bidder for other services, or may reject all bids presented, or waive any minor irregularity or informality in such bids.

G. If two or more bids received are of the same total amount, the City Council may award the contract to the bidder of the Council's choice or direct the Purchasing Officer to further negotiate with the tie bidders and award the contract to the lowest negotiated bidder.

H. After the City Council awards the contract, the Purchasing Officer may submit a purchase requisition to the Finance Division head to encumber the funds.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

Except where specific authority is first obtained from the City Manager, the Purchasing Officer may not prepare or submit a requisition for supplies, services or equipment unless there exist an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

In case of an emergency as defined in Section 7.04.015 of this Chapter, which requires immediate purchase of supplies, materials, equipment or contractual services, the City Manager may authorize the Purchasing Officer to secure in the open market at the lowest obtainable price any supplies, materials, equipment or contractual services, regardless of the amount of the expenditure; provided, however, that any expenditure exceeding the City Manager's established approval authority shall be later ratified by the City Council at the first available public meeting following the commitment to the expenditure.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

Where otherwise required by this Chapter, the following procurements, contracts or transactions are exempted from the provisions of this Chapter, at the discretion of the City Manager:

A. Emergency procurements for construction, equipment, repairs, goods, and/or services;

B. Goods and/or services that can be reasonably obtained from only a single source;

C. Sufficient, satisfactory bids are not received or after solicitation of a number of sources, competition is determined inadequate;

D. Items required to match or be compatible with other goods, furnishings, materials or equipment previously purchased by the City;

E. Goods, furnishings, types of materials or equipment that have been standardized for the City by the City Manager or by the City Council;

F. Utility services and related charges;

G. Goods, services and/or professional services obtained from or through agreement with any governmental, public or quasi-public agency where the agency contracted for goods, services and/or services through a competitive process as described in Section 7.04.100;

H. Real property leases or purchases and related title and escrow fees, to the extent permitted by law;

I. Insurance and bonds;

J. Advertising in magazines, newspapers or other media;

K. Works of art, entertainment or performers;

L. Library collection materials or services or other books or periodicals;

M. Membership dues, conventions, training, travel arrangements including hotels, car rentals and airfare;

N. Surplus personal property owned by another government, public or quasi-public entity;

O. Public projects governed by alternative bidding procedures as set forth in Chapter 7.20;

P. Purchases of gasoline, oil or emergency automotive needs;

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Transportation and freight charges when not specifically included on a purchase order;

R. Demolition or abatement of dangerous structures or hazardous or unsafe conditions;

S. Information technology purchases and software licensing, maintenance or upgrades to existing software purchased from the same contractor;

T. Payroll related activities or transactions;

U. For procurement under award of Federal assistance, when the Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City;

V. Situations where solicitations of bids or proposals for goods, services and/or professional services would be, in the discretion of the awarding authority, impractical, unavailing, impossible, or not in the best interests of the City.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

The Purchasing Officer shall have the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of goods and/or services by contract, arrangement or agreement as allowed by law and as determined by the Purchasing Officer to be in the City's best interest. For purposes of this section, the determination of whether it is in the City's best interest shall include consideration of whether the procedure used by the public or quasi-public entity was competitive or otherwise resulted in a competitive price. The Purchasing Officer may buy directly from a vendor at a price established by another public agency when the other agency has made their purchase in a competitive manner. Such cooperative purchasing programs and agreements include, but are not limited to, the California Multiple Award Schedules program ("CMAS"), the U.S. General Services Administration ("GSA") Multiple Award Schedule program, Sourcewell, the U.S. Communities Government Purchasing Alliance, and other similar programs. The Purchasing Officer also may purchase from the United States of America or any state, municipality or other public corporation or agency without following formal or informal purchasing procedures.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

For purposes of this section, Professional Services as defined in Section 7.04.015 of this Chapter, shall be purchased as follows:

A. It is in the best interest of the public, as allowed by State law, that contracts for professional and special services be awarded based on the demonstrated competence and professional qualifications necessary for the satisfactory performance of the services required. The Purchasing Officer may negotiate with qualified firms or individuals to obtain a fair and reasonable price for the services to ensure best value to the City and is not required to award a contract to the lowest responsible bidder. Notwithstanding the foregoing, once demonstrated competence and qualifications have been established, expense may be considered as one factor in the selection of a consultant hereunder.

B. Procurement of professional or special services where the total cost of services provided in a contract period is $60,000.00 or less shall be made using simplified and cost effective operational procedures and forms approved by the City Manager and in accordance with Section 7.04.050 of this Chapter.

C. Professional or special services where the cost of services provided in a contract period is $60,000.01 or more, or has no pre-determined cost (for example, as-needed services) shall be procured as follows:

1. The Purchasing Officer shall obtain the names of at least three firms or individuals that are, or have within the preceding 12 months, provided substantially similar services to public agencies. The Purchasing Officer may waive the requirements for solicitation of multiple proposals if only one individual or firm can reasonably provide the professional services, and it is in the best interest of the City to waive the requirement.

2. A request for proposal or qualifications shall be published on the City's website and provided to all potential candidates outlining the scope of services required, time frame for completion, pricing structure, liability insurance information and coverage and other pertinent information. Professionals must submit their responses in the specified format no later than the stated final due date for proposals. The response must include written acceptance of the terms of City's standard agreement, Including liability and other insurance coverage requirements.

3. The evaluation process will be based on the criteria stated in the request for proposal but will generally include the scope of services offered, the professional's capabilities and previous experience in the field.

4. After the proposals are evaluated, the Purchasing Officer may negotiate an agreement with the selected professional. If an agreement is not reached within a reasonable time, the Purchasing Officer may terminate discussion with the first candidate and open negotiations with the second choice.

5. The City Council shall approve agreement for as-needed professional services with no pre-determined contractual cost or those with the total contractual cost exceeding City Manager's signing authority.

6. The City Council may waive the bid requirements of this chapter when it is necessary or convenient for the management of the City's affairs.

7. The provisions of this Chapter shall not apply where the City Manager determines that the services needed are of a technical nature and involve little professional judgment, and that selecting the lowest responsible bidder would be in the public's interest.

D. The City Manager may develop and maintain a procedure whereby architects, engineers, land surveyors and construction project management firms may submit annual statements of qualifications and performance data. The Purchasing Officer may directly solicit proposals from appropriate firms from the list in-lieu of competitive solicitation.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

A. The City Manager shall have the authority to award the contracts as below.

1. All procurement of professional services, supplies, goods and/or materials, capital outlay items approved by the City Council during the applicable budget year for which the total contractual cost to the City is $60,000.00 or less.

2. Change orders/amendments, including term extensions, for contracts for the purchases of supplies, services and equipment provided the total contractual cost does not exceed the lesser $60,000.00 or the contingency amount set when the initial contract was awarded, and sufficient unencumbered funds exist or have been previously appropriated for the specific contract. In circumstances when the Council-approved contingency exceeds $60,000.00, and the delay in work is anticipated to result in significant costs, the City Manager is authorized to execute a single change order up to the full amount of the approved contingency, provided that there are sufficient funds in the allocated project budget. The City Manager shall report the change order to the City Council at its next regularly scheduled meeting.

3. Task orders for as-needed agreements approved by City Council with each task order amount not exceeding $60,000.00.

4. Task orders for as-needed agreements approved by City Council for any task order amount if the City acts as a pass-through agency and the cost is covered by a third party.

5. Public Works projects in accordance with Chapter 7.20.020 of this Chapter.

6. Emergency purchases exceeding $60,000.00 as set forth in Chapter 7.04.080

7. Notwithstanding the foregoing, any change order that results in the need for additional budget appropriation or that is in excess of the City Manager's authority as described above shall be approved by the City Council.

B. The City Manager shall approve alternate procurement methods, if appropriate, for use on an experimental basis, and recommend to the City Council additions, deletions or modifications to the City's procurement methods.

C. The City Manager shall have the authority to delegate the awarding of contracts, amendments and change orders for goods and services as set forth in this Chapter by memorandum or by administrative order.

D. Upon request of the City Council, the City Manager shall submit a report to the City Council identifying all contracts, including the amount of each contract that has been awarded administratively.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)

No obligation for the payment of supplies, services and equipment shall be incurred by the City except as prescribed by this Chapter. Any agreement entered into contrary to the provisions of this Chapter shall be void and any claim or demand against the City based thereon shall be invalid.

(Ord. No. 1009, § 2(Exh. A), 9-9-2024)