Delano Municipal Code Ch. 3.08 Purchasing Procedures

Footnotes:

--- (1) ---

State Law reference— For statutory provisions relating to the purchasing of supplies by cities, see Gov. Code § 54201 et seq.

Prior ordinance history: Ords. 382, 678, 868 and 1133.

The procedures of this chapter are adopted in accordance with provisions of Sections 54201 through 54205 of the Government Code of the State of California. This does not cover the procurement or reimbursement of travel expenses, as they may be treated by other government ordinance or resolution.

A. Purchasing Authority. The finance department shall oversee the purchasing function that is administered by each department. Each department shall be responsible for purchasing its own needs subject to the approval by the department head. The approval of purchases of less than five thousand dollars may be delegated to supervisory staff as deemed necessary for maximum efficiency and control. No expenditures shall be made without the appropriate reviews and approval as provided in this chapter.

B. Purchasing Goals. The purchasing procedures described in this chapter aim to achieve the following goals:

1. To establish efficient procedures for the purchase of supplies, equipment and services;

2. To procure for the city, supplies, equipment, and services at the lowest possible cost commensurate with quality and quantity needed;

3. To exercise positive financial control and accountability over purchasing;

4. To give preference to local merchants, with quality and price being equal (when accounting for additional costs such as shipping vs. travel time to pick up or deliver an item, or sales tax to be received by the city);

5. To minimize the need for warehousing thereby saving space, insurance and handling costs;

6. To clearly define authority and responsibilities for the purchasing function.

C. Centralized Purchasing. Centralized purchasing shall be encouraged as a means of acquiring goods and services common to many departments. Such efforts may result in cost savings like volume discounts and will eliminate duplication of effort. All computer hardware and software purchases shall be reviewed by the information systems coordinator for consistency and compatibility. Centralization is recommended for departments close and adjacent to each other and shall be zoned as follows: city hall, police, corporation yard, CCF, and community services. Centralized purchasing is recommended for such items as fuel oil, motor vehicle parts, office supplies and stationery.

D. Budget Transfers. Budget overruns shall not be tolerated but may be remedied through budget transfers. From time to time, budget transfers may be needed to pay for some higher than anticipated costs in purchasing supplies and services, or for existing capital improvement projects. Budget transfers shall be allowed only for line items within a division, subject to approval by the city manager with the following caps:

1. New capital outlay over five thousand dollars and all budget transfers for items other than capital outlay in excess of thirty-five thousand dollars shall be approved by the city council.

2. Budget transfers shall not be allowed for new capital improvement projects.

3. Budget transfers shall be certified by the finance director for no new money appropriations and approved by the city manager through an appropriations transfer request.

4. Budget transfers subject to the approval of the city council shall be included in the consent agenda accompanied by a duly approved appropriations transfer request staff report and city council resolution.

E. Purchasing Principles. Generally, the procurement procedure involves the determination of quantity, quality and related requirements, negotiation and canvassing of prices, referral of bids for analysis and recommendations, award of purchase order and contracts, the supervision of receipt and acceptance procedures and the approval of invoices for payments. Except as provided herewith, the following purchasing functions shall be observed on a departmental level. Each department:

1. Shall process the purchase of and contract for all supplies, equipment and contractual personal services, according to its needs;

2. Shall make procurements in accordance with the purchasing procedures prescribed by this chapter, relevant administrative regulations approved by the city manager, and such rules and regulations as the city shall adopt for the internal management and operation of the purchasing function;

3. Shall negotiate and recommend the execution of contracts for the purchases of supplies, equipment and services. Where a lease purchase arrangement is contemplated, the matter shall be referred to the finance department for proper bidding of financial products or services;

4. Shall act to procure the needed supplies, equipment and services with the necessary quality, capacity, safety performance ability and overall cost, considering labor and maintenance costs and other applicable factors required to meet the service objects at the least expense to the city;

5. Shall discourage collusion in bidding and induce full competition on all purchases;

6. Shall prepare and recommend administrative regulations including revisions and amendments thereto, governing the purchase of supplies and equipment for the city, which regulations shall be effective upon approval by the city manager;

7. Shall keep track of current developments in the field of purchasing, prices, market conditions and new products;

8. The finance department shall prescribe, design and issue forms needed for the purchasing function and shall process payments of purchases with the assurance that such purchases were authorized, that the items purchased were actually received in a satisfactory manner, that the quantity and prices indicated in the purchase order are the same as those indicated in the invoice. Any variance noted between the purchase order and the invoice shall have to be authorized and confirmed by the department head before payment of the invoice;

9. The finance department shall also maintain a bidders' list, vendor's catalog file and other records used in modern procurement operations;

10. The city clerk shall receive and process all formal bids to assure that every bidder complies with all applicable municipal, state and federal safety regulations.

F. Specifications.

1. As needed, each department shall develop standards specifications for repetitively procured items and services.

2. Every specification shall be prepared to assure the broadest possible bidder participation, consistent with the needs of the using department or agency.

3. Alternate specification provisions for any particular bid invitation may be established.

4. No oral interpretation of any written specification shall be made to any bidder as to the meaning of the specification. If a prospective bidder discovers discrepancies or omissions in any specification or if the bidder is in doubt as to the naming of the specification, the bidder shall request clarification or modification from the city in writing and delivered to the person authorized in the specification at least five days before the time specified for the opening of bids, unless a different time is specified in the specifications. Interpretations and modifications shall be issued by the person authorized in the specifications, in the form of an addendum to the specifications, and when issued, shall be transmitted as promptly as practical to all parties known by the person so authorized to have received copies of the specifications. The provisions of the subsection shall be deemed included in all bid specifications issued by the city, including any public project, whether or not the provisions are specifically included in the specifications.

5. City purchases and contracts shall comply with the no procurement debarment and suspension common rule implementing E.O.s 12549 and 12689, "Debarment and Suspension." This common rule restricts sub awards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. In order to determine the status of a vendor regarding debarment and/or suspension, formal solicitations for bids and proposals shall require certification related to this status prior to order placement.

(Ord. 1156 § 1 (Exh. A), 2007; Ord. 1146 § 1(part), 2006).

(Ord. No. 2013-1258, § 1(exh. A), 4-15-2013)

A. Purchase Requisitions. Prior to initiating a purchase, department heads or their designees shall submit a purchase order request form for supplies, materials, maintenance and equipment to the finance department. By approving the purchase request, the department head or his designee shall ensure that the appropriate purchasing procedures have been followed.

By approving the purchase, the finance director or his/her designee shall confirm the existence of a budgetary appropriation, that sufficient funds are available, that the account distribution and calculations of cost are accurate.

Following confirmation, the finance department shall prepare a purchase order, consistent with the provisions of this chapter.

B. Purchase Orders. Upon appropriate approval, purchase orders shall be distributed as follows:

The finance department shall encumber the amount of the purchase order in the designated budgetary accounts as a reduction of the funds budgeted for that line item. Unless it is an emergency, no purchase orders shall be allowed fifteen days before the end of the fiscal year. This will simplify closing and budgeting procedures and avoid rush purchases. Any unused purchases upon which purchase orders have been placed and a binding obligation of the city shall be reappropriated in the following fiscal year as a consent agenda item.

Upon receipt of goods and/or completion of services, the user department head or his designee shall provide proof of receipt of goods or services and provide invoices to the finance department. The finance department shall proceed with processing payment to the vendor. Partial payments shall be permitted when materials, supplies or equipment are received in separate shipments.

C. Open Purchase Arrangements.

1. Open Purchase Orders. Open purchase orders are similar to a charge account set up by the city with certain vendors to provide small equipment or supplies on an "as needed" basis. A blanket order provides a mechanism for purchasing items locally, which are not economical for either the operating department or central stores (garage parts, for example) to stock. This allows employees timely access to materials needed to accomplish their work.

Open purchase orders shall not be used to purchase services, capital items or items stored in central stores. Once an open purchase order is issued to a vendor, any authorized city employee may contact the vendor directly to order items per the terms and conditions specified on the open purchase order.

Some reasons to consider using an open purchase order include:

a. Less paperwork;

b. Quantity purchasing power, possibly combining needs of more than one department;

c. Price protection for a specified period of time;

d. Minimizes on-site inventory (pay-as-you-go);

e. Provides an organized procedure for reviewing purchases of like items.

For open purchase arrangements, the requirements for quotes or bids shall be waived because it is assumed that a diverse and variable quantity in a particular category shall be required on a contingent "as needed" basis. Because of the diverse, variable and contingent nature of such purchases, quotes and bids are not feasible. However, no individual item may exceed a daily order of one thousand dollars or a unit cost of one thousand dollars.

To avoid storing excessive amounts of emergency repair and replacement parts and caustic chemicals and food, the water, wastewater, garage, and streets divisions of the public works department, senior citizens' nutrition program and the CCF (for raw food), may go beyond the spending limit of one thousand dollars per day.

2. Open Purchase Order Exceptions. The following items shall not be purchased on an open purchase order:

a. Tools, both power and hand types, regardless of cost;

b. Office furniture and large office equipment;

c. Capital outlay and improvement items.

3. Open purchase orders shall set a limit on the total amount by indicating the words "Not to Exceed." All open purchase orders exceeding thirty-five thousand dollars shall be included as a consent agenda item except for the waiver provided for in Resolution 2000-108.

4. After the open purchase order is approved, department staff may then order goods or services and then applied against the purchase order. Each department head shall be responsible for monitoring daily purchases using open purchase orders so as not to exceed budgetary appropriations.

5. Revolving Fund/Petty Cash. A centralized revolving fund shall be maintained by the finance department for the purchase of seventy-five dollars or less from vendors without open purchase orders. All petty cash purchases shall be accomplished through a petty cash voucher supported by documentary proof of purchase such as receipts or invoices.

(Ord. 1146 §1(part), 2006).

Purchases of supplies, materials, maintenance and equipment shall strictly adhere to the following quotation/call for bids requirements dictated by the dollar amount of the purchase. The quotation/call for bids requirements and dollar limits are as follows:

A. Immediate Procurement Procedure/Up to One Thousand Dollars. Each department head may exercise his/her own discretion with regard to vendor choices with preference given to local merchants, with quality and price being equal.

The department shall identify the necessary supplies, services or equipment and complete a requisition form with the appropriate account number(s) approved by the department head and forwarded to the finance department so that the expenditure is immediately encumbered. This requisition can immediately be used and submitted to the vendor to obtain the supplies or services. No purchase order is necessary unless the vendor requests for it.

B. Verbal Quotation Procedure/One Thousand One Dollars to Two Thousand Dollars. Each department head or his/her designee shall acquire a verbal quote from at least three vendors. Telephone quotes shall be documented on a telephone sheet. The department head shall select the vendor and shall identify the necessary supplies, services or equipment and complete a requisition form approved by him with appropriate account numbers. The requisition form shall be forwarded to the finance department that prepares the purchase order after verifying that all procedures have been followed. The finance department shall encumber the amount. A formal purchase order is needed before procuring supplies and/or services at this level.

C. Written Quotation Procedure/Two Thousand One Dollars to Thirty-Five Thousand Dollars. Each department head or his/her designee shall solicit written quotations from at least three vendors. Vendors shall submit by fax or e-mail or letter, their written quotations directly to the departments seeking quotations. The department head shall select the vendor and shall then complete a requisition form with the appropriate account numbers. The requisition form shall be approved by the department head or his/her designee and shall be forwarded to the finance department for purchase order preparation after verifying that all purchase procedures have been complied with. All purchases costing thirty-five thousand dollars and over shall be approved by the city council as a consent agenda item except for the waiver provided in Resolution 2000-108.

Exceptions. The written quotation procedure shall be waived for the following types of purchases:

1. Purchase of vehicles or equipment which are acquired at a public auction. These purchases shall have prior approval by the city manager or his/her designee;

2. Purchases of vehicles or equipment through cooperative agreements with the State of California or other public agencies;

3. Where the vendors are selected by other agencies under contract with the city through their normal purchasing procedures.

D. Formal Purchasing Procedure/Call for Bids Over Thirty-Five Dollars. A formal bid shall be required if the estimated dollar amount of the purchase, including tax, shipping and related costs, exceeds thirty-five thousand dollars. Capital improvement purchasing procedures are further elaborated in Section 3.08.070.

1. The department head or his/her designee shall prepare a bid package to solicit bids from qualified firms. The bid package shall consist of the following items:

a. Notice inviting bids;

b. Information to bidders;

c. Bid specifications;

d. Proposal form;

e. Insurance and/or bond requirements.

Notice inviting bids shall include a general description of the articles to be purchased and shall state where the bid forms and specifications may be secured, as well as the time and place for the opening of bids. The notice shall specify which factors will be given special consideration in determining the lowest responsible bidder.

When considered necessary, bidders' security may be prescribed in the notice inviting bids. Bidders shall be entitled to return of bid securities, provided, however, that the successful bidder shall forfeit the bid security upon the refusal of the bidder to execute the contract within the time designated in the bid specifications. The council, on the refusal or failure of the successful bidder to execute the contract, may award the contract to the next lowest responsible bidder. If the 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 contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. Lowest responsible bidder shall mean the bidder which best responds to the price, quality, service, fitness or capacity to the particular requirements of the city. Price alone shall not be the determining factor but shall be considered along with other factors relating to the particular needs of the city.

Example: Clause to add to bid requirements:

The bidders must not appear on any list of debarred, suspended or ineligible concerns or individuals that would compromise the funding agency's ability to comply with Executive Orders 12549 and 126898 related to "Debarment and Suspension."

2. The city clerk shall administer the bidding process and shall follow bid procedures regarding posting notices, sending notice inviting bids, receiving bids, and opening and tabulation of bids. Confidentiality of bids shall be maintained and shall not be disclosed directly or indirectly to any other bidder until the bidding is closed or other further bidding is excluded. If two or more bids received are for the same total amount or unit price, quality or service being equal, and if the public interest will not permit the re-advertising of 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 opening. Before bid opening, ensure none of the bidders are debarred, suspended, or otherwise excluded. If any are, reject those bids before opening them.

3. The city council shall have the authority to require a performance bond before entering into a contract in such amount as it finds reasonably necessary to protect the best interest 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.

4. When the council finds that it is in the public interest and necessity or that it is impractical to purchase supplies or equipment without compliance with formal contract procedures set forth in this section, the council may waive such procedures by so declaring with a separate motion or resolution.

5. The council reserves the right to reject any or all bids or to waive any irregularities or informalities in any bid or all bidding and to determine which bid in the judgment of the council is the lowest responsible bidder and which bid should be accepted in the best interest of the city.

6. The department head shall recommend award of contract to the lowest responsible bidder to the city manager. The department shall prepare an agenda report and present it to the city manager, who shall then present the item to the city council as a regular agenda item. In all cases, price shall not be the sole determining factor, but shall be considered along with other factors, including, but not limited to, ability of the vendor to deliver, ability to service, prior experience, quality, compatibility with existing city equipment, and other particular needs of the city.

7. Upon award of contract by the city council, the department head or his/her designee shall submit a purchase requisition with award recommendation and documentation, appropriate account numbers, including contract, if applicable, to the finance department which shall prepare the purchase order.

8. After award of the contract by the city council, the vendor awarded the contract shall be notified by the city clerk.

9. The city clerk shall send notices to vendor(s) not selected.

(Ord. 1146 §1(part), 2006).

(Ord. No. 2013-1258, § 1(exh. A), 4-15-2013)

A. An emergency is a situation in which the delay in procurement of material, equipment or service may jeopardize the life, health, welfare, or convenience of local residents, or the city manager determines that an emergency purchase is necessary to ensure operational efficiency and/or fiscal responsibility of the city. For purposes of this section, an emergency shall be deemed to exist only if:

1. There is a great public disaster.

2. There is an immediate need to prepare for a national or local defense.

3. There is a breakdown in machinery or an essential service which requires the immediate procurement of supplies or equipment or services to protect the public health, welfare or safety.

4. An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchase would cause an undue delay in the procurement of the needed item.

B. Each department head may exercise his/her own discretion with regard to vendor choice with preference given to local merchants, with quality and price being equal. The department identifies necessary supplies, services or equipment and completes a purchase request clearly labeled "EMERGENCY PURCHASE." The request shall be accompanied by a fully costed invoice duly signed by the department head and forwarded to the finance department, who shall follow up with the issuance of a purchase order. The request number is all that is needed at this level, though a formal purchase order is issued later.

C. Emergency purchases in excess of five thousand dollars shall require written approval by the city manager or his/her designee.

(Ord. 1146 §1(part), 2006).

Sole-source specifications shall be avoided whenever possible, as they minimize or eliminate competition. The appropriate authority may waive bidding requirements if sufficient written justification for a sole-source purchase exists. In the case of sole-source vendors, a department head or his/her designee shall indicate a "sole source" notation on the requisition and forward it to the finance department before a purchase order is approved. Sole-source vendors shall include those that provide equipment, parts, supplies and services that are uniquely compatible to existing equipment or systems. Any sole-source purchase in excess of thirty-five thousand dollars shall be approved by the city council except for the waiver provided for in Resolution 2000-108.

(Ord. 1146 §1(part), 2006).

Professional services may include, but not be limited to, architectural, engineering, testing, land surveying, appraising, environmental, planning, financial, economic, accounting, legal, development processing, waste management, governmental operations, special studies, construction project management and other related services.

A. Process. The requesting department head shall prepare a request for proposal (RFP), and request for qualifications which shall then be sent to the appropriate professional service firms. The RFP shall include a description of the project and a scope of work to be performed. As a rule, proposals from a minimum of prospective firms shall be solicited. However, this requirement may be waived by the city manager depending upon the nature of the services to be provided.

B. The department shall review all proposals received. The general selection criteria for determining which firm is to be selected include:

1. Qualifications;

2. The firm's experience with similar projects;

3. Schedule of completion;

4. Lastly, price, unless excluded by state or federal law.

C. Based on the results of the initial screening process, the top firms may be invited to present their qualifications. Based upon their qualifications and presentations, the city shall rank order the firms. The city may negotiate the price, terms and conditions of the project with the top firm. The city also reserves the right to negotiate with another top-ranked firm if an agreement cannot be reached with the number one ranked firm.

D. Once the firm is selected, the contract shall be forwarded to the city attorney for review.

E. A staff report with recommendations shall be presented to the city manager, who will then present the matter to the city council as a regular agenda item. All contracts in excess of thirty-five thousand dollars shall require the city council's approval.

F. The city clerk shall retain the original contract. The finance department shall encumber the amount against the budget.

(Ord. 1146 § 1(part), 2006).

When determining the lowest responsible bidder, the city may take into account additional costs such as shipping, travel expenses to pick up or have an item(s) delivered and/or sales taxes to be received by the city.

(Ord. 1156 § 1 (Exh. B), 2007).

A. Definition. A capital improvement project shall be defined as new construction of capital assets and improvements to previously constructed capital assets. The rule on emergency situations as provided for under Section 3.08.040 shall also apply for capital improvement projects.

B. Capital improvement projects of twenty-five thousand dollars or less may be performed by city employees by force account, by negotiated contracts or by purchase order.

C. The expenditure of funds for capital improvements shall follow the same bidding thresholds as provided for in Section 3.08.030.

D. Where the city council is asked to approve plans and specifications and authorized to call for bids, the department head and the city engineer shall prepare an agenda report to the city manager, who then takes the matter to the city council, requesting these actions. The request shall include identification of the unencumbered funding source for the project, based on the estimated project cost. The request shall include a bid opening date, which shall be approved by the city clerk.

E. City council approval is required for all plans and specifications for capital improvements prepared by the city engineer. If the project involves federal or state dollars, the department shall observe federal and state statutes regarding the bidding process and selection of vendors.

F. The sealed bids shall be received by the city clerk who shall be responsible for publicly opening and reading sealed bids at the stipulated time. Once the bids have been opened, the department head shall recommend award of the contract to the lowest responsible bidder. The department head or his/her designee shall prepare an agenda report and present it to the city manager who will then present it to the city council.

G. Upon approval by the city council, the contract package shall be forwarded to the department which shall obtain signatures from the contractor, city attorney and the mayor. The city clerk shall retain the original contract.

H. Upon city council award of the contract, the city clerk shall prepare a resolution noting the city council's approval of the contract, project name, cost and budget account numbers. The approved resolution shall be submitted to the finance department to record the encumbrance. The department head shall be responsible for monitoring the project account balance during the course of the project to ensure that overages do not occur.

I. Change Orders. During the course of the capital improvement project, modifications to the scope of work may be required that was not anticipated in advance. The city council must approve capital improvement change orders where the cumulative total exceeds ten percent of the original contract amount, or the individual change order is more than twenty-five thousand dollars prior to initiating the work when possible in all cases, prior to the payment of additional cost. Change orders equating to less than ten percent of the original contract amount and under twenty-five thousand dollars may be approved by the city manager upon recommendation by the department head and finance director. A change order that causes the project to go over the approved budget may be approved by the city manager, as long as additional funds are taken from savings from another project in the same fund. All other change orders for capital improvement projects must be approved by the city council. The instances that require city council approval include change orders that:

1. Cause the project to go over budget;

2. Require transfers between funds and reserves;

3. Require transfers between accounts, but from projects that have not yet experienced savings.

(Ord. 1146 §1(part), 2006).

Purchases of materials, equipment or supplies, other than printed materials, may be requested of the State Department of General Services (DGS) pursuant to the provisions of Section 54205 of the Government Code of the state. The department shall at its option access the state DGS designated vendor websites which can provide the best economical terms available in the market place. (http://www.dgs.ca.gov/buy/default.htm). Such purchases shall be made upon the same terms, conditions and specifications at a lower price than the city can obtain through normal purchasing procedures subject to Section 3.08.030 of this chapter. Any purchases made through DGS shall be approved by the department head.

(Ord. 1146 §1(part), 2006).

Materials, equipment and supplies may be purchased from any other governmental agency with which the city has entered into a joint powers agreement, pursuant to the provisions of Section 6502 of the Government Code of the state, provided:

A. The sales price of the item to be purchased has been obtained through competitive bidding process by the other agency which is party to the agreement; and

B. The items of property to be procured can be purchased by the other governmental agency upon the same terms, conditions and specifications at a lower price than the city can obtain through normal purchasing procedures.

(Ord. 1146 §1(part), 2006).

Materials and supplies and equipment may also be purchased through other jointly sponsored procurement programs like US Communities (http://www.uscommunities.org) and Western States Contracting Alliance (http://aboutwcsa.org). Such purchases shall be made upon the same terms, conditions and specifications at a lower price than the city can obtain through normal purchasing procedures subject to Section 3.08.030 of this chapter. Any purchases made through US Communities or WCSA shall be approved by the department head.

(Ord. 1146 §1(part), 2006).

Each department head shall be responsible for determining obsolete or surplus property in his department and its proper disposition.

A. The department head shall inform other departments of the existence of such surplus property for the purpose of determining whether such property is usable in other departments, and if so, shall cause the transfer of such surplus property to that department.

B. If the surplus property has no more utility value within the city, the property shall be sold at public auction. A public auction of city property shall be held at one time or another as the department may deem appropriate. The department may, with the approval of the city council, declare an item or items surplus and authorize the transfer of the surplus property to another public agency where the City of Delano would benefit from such transfer, with the agency the property is to be transferred to assume all costs associated with such transfer of property.

C. The notice of the auction sales shall be published by the department and shall prepare bid packages to be given to interested parties. The department shall indicate a lowest suggested price for the property where the value is determinable by reference to a suggested value source, like a "blue book" value, for example, in the case of motor vehicles, or if no value figure is available, will indicate a "best offer" option. The bidders may inspect the property for sale before submitting their bids to the city clerk.

D. The city clerk shall open the bids and award the sale to the highest bidder and inform the successful bidder to make payment to the finance director who shall issue a receipt for the payment.

E. The successful bidder shall then pick up the property from the department after presenting the official sales award and receipt to the department.

F. Disposition of obsolete or surplus computer equipment shall be under the responsibility of the information systems coordinator.

(Ord. 1146 §1(part), 2006).

(Ord. No. 2009-1192, § 1, 2-2-2009)

Selected commodities with recurring usage rates may be stocked and issued from a central location associated with centralized purchasing zones in Section 3.08.010(C) under the control of the department head. A perpetual inventory record may be utilized when warranted for control and planning purposes. The department head shall determine the levels of inventory in accordance with the economic order quantity model. The economic order quantity has been defined as the amount of inventory which should be ordered at one time in order to minimize the annual associated cost of the inventory.

(Ord. 1146 §1(part), 2006).

No expenditures shall be approved beyond the appropriated amount. Expenditures of thirty-five thousand dollars or more shall be approved by the city council before the issuance of a purchase order except for the waiver as provided for in Resolution No. 2000-108.

(Ord. 1146 §1(part), 2006).

Under certain circumstances, the use of a city credit card may be the most appropriate method for certain purchases.

A. City bank and gasoline credit cards shall be signed out on an "as needed" basis to staff by the finance department and to the city council by the city clerk.

B. Because of IRS tax reporting requirements, except for urgency purposes, city credit cards may not be used to purchase services provided by vendors who are doing business as partnerships or sole proprietors.

C. City credit cards shall be available to the city council and staff for conduct of official city business, including, but not limited to, the following purposes:

1. Gasoline;

2. Authorized travel expenses and hotel charges which shall subsequently be documented on the travel reconciliation report;

3. To charge the cost of meals when required when conducting official business, except when an employee is traveling on a per diem basis.

D. All city credit transactions must be fully supported by related documentation like invoices and receipts. Any unsupported transactions may be billed to the credit card user and may be collected through payroll deduction.

E. It is unlawful to charge personal items on any city credit card.

F. Vendor credit cards may be signed out by the finance department to an employee authorized to purchase. Only those names with appropriate signatures submitted to the vendor may use vendor credit cards.

(Ord. 1146 §1(part), 2006).

Except as provided in this chapter, it is unlawful for any officer, employee or agent of the city to order the purchase of supplies or equipment or make any contract in violation of this chapter, and any purchase ordered or made or contracted contrary to the provisions of this chapter shall not be approved by any officer or employee of the city, and the city shall not be obligated by any such purchase or contract made in violation of this chapter. The city cannot conduct business with any vendor that is debarred or suspended from selling to the federal government.

(Ord. 1146 §1(part), 2006).

(Ord. No. 2013-1258, § 1(exh. A), 4-15-2013)

Federal or other grant programs may require special conditions which are more stringent than city procedures. It is the responsibility of the department accepting the grant to ensure that all grant provisions are complied with. The finance department will assist departments on request.

(Ord. No. 2013-1258, § 1(exh. B), 4-15-2013)

A. All vendors providing paper products and printing and writing paper to the City of Delano shall:

1. If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least thirty percent, by fiber weight, postconsumer fiber instead of non-recycled products whenever recycled paper products and printing and writing paper are available at a total cost of no more than one hundred fifty percent of the total cost for non-recycled items.

2. 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.

3. 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.

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

5. Provide records to the city's recovered organic waste product procurement recordkeeping designee, in accordance with the city's recycled-content paper procurement policy(ies) of all paper products and printing and writing paper purchases within thirty days of the purchase (both recycled-content and non-recycled 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 for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled 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.

B. For the purpose of this section, words will be interpreted in accordance with the definitions set forth in Section 13.48.020.

(Ord. No. 2022-1333, § 4(Exh. B), 2-22-2022)