Del Rey Oaks Municipal Code Art. 2 Supplies, Equipment, and Services

The procedures established in this Article shall apply only to the purchase of supplies, equipment, and services.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

The purchase of supplies, equipment, and services between $5,000.00 and $25,000.00 shall be made by purchase orders approved by the City Manager. Except as otherwise provided in this Chapter, no purchase order shall be issued unless the prior approval of the City Manager or his/her designee has been obtained. Purchases of greater than $25,000.00 shall not be split into separate lesser dollar amount purchase orders to avoid the requirement for a contract.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

Purchases of supplies, equipment, and services of an estimated value between $5,000.00 and $25,000.00 may be made by the City Manager or his/her designee in the open market without observing the procedures prescribed in Sections 3.30.090. Open market purchases shall, wherever possible, be based on at least three informal bids and shall be awarded to the bidder offering the most advantageous bid to the City. The City Manager shall keep a written record of all open market purchases and informal bids for a period of two years. This record, while so kept, shall be open to public inspection.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

Except in cases of emergency, the City Manager, or his/her designee shall not issue any purchase order for supplies, equipment, and services unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

The City Manager or his/her designee shall, in the discretion of the City Manager, inspect supplies and equipment delivered to the City to determine conformance with the specifications set forth in the purchase order. The City Manager or his/her designee shall have the 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. No. 292, § 2 (Exh. A), 11-28-2017)

A. Except as otherwise provided in this Article, purchases of supplies, equipment, and services of an estimated value greater than $25,000.00 shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure prescribed in this section.

B. Notices inviting formal bids shall include a general description of the goods or services desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids.

C. Notices inviting formal bids shall be published at least ten days prior to the date of opening of the bids. Notices shall be published at least once in a newspaper regularly circulated in the City.

D. Where deemed necessary by the City Manager, formal bids shall be accompanied by security, either cash, cashier's check, certified check, or surety bond, in a sum equal to ten percent of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to the return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon their refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is solely responsible for the delay in executing the contract. The Council or City Manager may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and re-advertise.

E. The City Manager shall have authority to require a faithful performance bond or other bonds before entering into a contract other than a public project contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

F. Sealed bids shall be submitted to the City Manager and shall be identified as bids on the envelope. The purchasing officer, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than 30 calendar days after the bid opening.

G. In its discretion, the City Council or City Manager may reject any and all bids presented and may cause re-advertising for bids pursuant to the procedure prescribed in this Article. However, when all bids exceed the authorized budgeted amount, the City Manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed in this Article.

H. Except as otherwise provided in this Article, formal bid contracts shall be awarded by the City Council to the lowest responsible bidder. The determination of lowest responsible bidder shall be at the discretion of the City Council pursuant to findings and recommendations presented by the City Manager at the time of award of contract.

I. If two or more formal 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 re-advertising for bids, the City 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 or award of contract.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

A. Each local supplier providing goods or supplies funded in whole or in part by City funds, or funds which the City expends or administers, shall be eligible for a local preference as provided in this Section.

B. Each local supplier who is within five percent of the lowest responsible bid shall be provided the opportunity to reduce the local supplier's bid to the amount equal to the amount of the lowest responsible bid. The opportunity to reduce bid amounts shall be provided first to the lowest eligible local bidder and, if not accepted by such bidder within five business days of the opening of bids, then to each successive eligible bidder in ascending order of the amount of bids. In the event an eligible local supplier reduces the bid to the amount of the lowest responsible bid, the eligible local supplier shall be deemed to have provided the lowest responsible bid and shall be awarded the contract.

C. For the purpose of this Section, the term "local supplier" shall mean a business or resident doing business as a supplier in the jurisdiction of the City for the past five years.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

When no formal bids or no responsive bids are received, the City Manager is authorized to negotiate for written proposals, and the award, if any, shall be made in accordance with applicable provisions prescribed in this Article.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

A. Notwithstanding any provision of this Article to the contrary, the competitive bidding and informal bidding procedures and requirements as described in the Article may be dispensed within any of the following instances:

1. When the estimated amount involved is less than $5,000.00.

2. When the commodity can be obtained from only one vendor ("Sole Source Procurement").

3. When the Council finds that the commodity is unique and not subject to competitive bidding.

4. The Council may authorize the purchase of materials, supplies, equipment, and services where an emergency is deemed to exist and it is determined that service involving the public health, safety, or welfare would be interrupted if the normal procedure were followed ("Emergency Procurement").

5. Any agreement involving acquisition of supplies, equipment, or services entered into with another governmental entity.

6. Contracts for professional services.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

The City Manager shall use the following procedures for the solicitation, selection and award of proposals or bids for the furnishing of professional services or for other contractual services exceeding $5,000.00. Professional services are defined as those provided by a person or firm engaged in a profession based on a generally recognized special knowledge or skill, including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, training or educational consultant, or land surveyor, The purpose of these procedures is to obtain contractual services of the highest quality together with cost effectiveness.

A. Selection Procedure.

1. Conditions for Use and Exceptions. Except as provided under Sole Source Procurement, or Emergency Procurement, professional services shall be procured in accordance with this subsection.

2. Public Announcement and Form of Request for Proposals. Adequate notice of the need for such services shall be given by the department requiring the services through a request for proposals. The request for proposals shall describe the services required, list the types of information and data required of each offeror, and state the relative importance of particular qualifications.

3. Discussions. The City Manager or his designee may conduct discussions with any offeror who has submitted a proposal to determine such offeror's qualifications for further consideration. Discussions shall not disclose any information derived from proposals submitted by other offerors.

4. Award. Award shall be made to the offeror determined in writing by the City to be best qualified based on the evaluation factors set forth in the request for proposals, and negotiation of compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the best qualified offeror, then negotiations will be formally terminated with the selected offeror. If proposals were submitted by one or more other offerors determined to be qualified, negotiations may be conducted with such other offeror or offerors, in the order of their respective qualifications ranking, and the contract may be awarded to the offeror then ranked best qualified if the amount of compensation is determined to be fair and reasonable.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)

The Council, in an appropriate circumstance as determined by the Council, may waive any provision of this Article when deemed in the best interests of the City.

(Ord. No. 292, § 2 (Exh. A), 11-28-2017)