Chapter 9 — PURCHASING PROCEDURE

In order to establish efficient procedures for the purchase of supplies, non-professional 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 centralized purchasing system is hereby adopted.

The City Council may adopt by resolution purchasing policies and procedures consistent with this chapter to assure continuity and uniformity of the City's purchasing procedure, to provide guidance to City departments on the City's purchasing practices, to define the responsibilities of the Purchasing Division and City departments in the purchasing process, and to otherwise implement the requirements in this chapter. If delegated by City Council Resolution, the City Manager may amend or interpret the administrative purchasing policies consistent with this chapter.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

There hereby is created a Purchasing Division of the Finance Department, in which is vested authority for the purchase of supplies, services, and equipment as follows:

• (a) Recommend the execution of contracts for the purchase of supplies, general services, special equipment, and services.

• (b) Keep informed of the current developments concerning purchasing, prices, market conditions and new products and recommend revisions to purchasing procedures when necessary.

• (c) Prescribe and maintain all forms and records necessary for the efficient operation of the purchasing system.

• (d) Supervise and coordinate the process with operating departments for the inspection of all supplies, general services, special equipment, and services purchased under City's Purchasing Ordinance and applicable policies and procedures, to assure conformance with City specifications.

• (e) Supervise the transfer of surplus and unused supplies and equipment or sale/disposal of such.

• (f) Maintain an up-to-date bidder list, vendors' catalogs, files and such other records as needed to perform these duties. Coordinate vendor relations, locate sources of supply, maintain vendor listing, and evaluate and document vendor performance.

• (g) Assist operating departments with research and recommendations in developing specifications; review specifications for completeness of information, and ensure that purchasing specifications are open and non-restrictive to encourage full competition.

• (h) When in the best interest of the City, maintain or coordinate the maintenance with operating departments of a supply of commonly used items in quantities sufficient to satisfy the City's needs.

• (i) Identify, evaluate, and utilize purchasing agreements that best meet the City's needs (i.e., cooperative purchases, blanket purchase orders, contractual agreements, etc.).

• (j) Perform such other tasks as may be necessary for the proper conduct of purchasing supplies, general services, and equipment.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

There hereby is created the position of Purchasing Clerk. He or she shall be appointed by the Finance Director and will have general supervision of the Purchasing Division. The duties of the Purchasing Clerk may be combined with any other office or position. The Purchasing Clerk shall have the authority to:

• (a) Purchase or contract for supplies, services, and equipment required by any department in accordance with purchasing procedures prescribed by the Downey Municipal Code, these policies and procedures, and any such Administrative Regulations;

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

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

• (d) Maintain, when feasible, full and open competition among bidders on all purchases;

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

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

• (g) Supervise the inspection of all supplies, services, and equipment purchased to insure conformance with specifications;

• (h) Recommend the transfer of surplus or unused supplies, services, and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

Purchases of non-professional services, supplies and equipment shall be pursuant to the bidding procedures as set forth in Sections 2906 and 2907 of this chapter and the purchasing policies and procedures adopted by City Council Resolution. The bidding procedures applicable to public works projects and/or materials and supplies related to public works projects shall be as set forth in Downey City Charter, Section 2910 of this chapter and the purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 1026, adopted 9-10-96; Ord. 1309, adopted 3-12-13; Ord. 21-1458, adopted 1-26-21)

Purchases of supplies, non-professional services and equipment having a cost as set by City Council Resolution shall be made only by purchase order. The following purchases/payments are exempt from obtaining a purchase order:

• (a) Utility usage payments (electric, gas, phone);

• (b) Payments to other governmental units;

• (c) Claims/Legal settlement payments;

• (d) Purchase of books;

• (e) Membership dues;

• (f) Debt service payments;

• (g) Employee benefit payments;

• (h) Reimbursement payments;

• (i) Postage;

• (j) Notices and advertisements;

• (k) Bond issuance related services;

• (l) Legal services.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

Except when necessary for the protection of the public peace, health, safety, welfare, or property or interests of the City or the general public, the Purchasing Clerk 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.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

Formal bidding procedures as set forth herein and pursuant to the purchasing policies and procedures adopted by City Council Resolution, shall be followed for all purchases of nonprofessional services, supplies and equipment:

• (a) Notice Inviting Bids. The Purchasing Division shall distribute notices inviting formal bids electronically by email to prospective bidders, posted on the Purchasing Division website, and shall be published at least twice in a newspaper of general circulation printed and published in the City, and in appropriate trade publications at least 14 days before the date of the opening of the bids. Notices inviting bids shall include a general description of the goods, articles, services, or equipment to be purchased, bonding requirements, state where bid plans and specifications may be secured and the time and place for opening the bids.

• (b) Bonds. The City may, or if applicable, require bidders' security equal to 10% of the bid amount and/or a performance bond in such amount as it shall find reasonably necessary to protect the public interest. If the City requires either or both such security and bond, the form and amount of the security and bond shall be described in the notice inviting bids.

• (c) Bid Opening. Sealed bids shall be submitted to the City Clerk's Office and shall be clearly identified as the bidder, bid item and bid on the envelope. Bids shall be opened by the City Clerk, with a representative of the department that developed the bid or proposal document present, in public at the date, time, and place stated in the notice inviting bids. A written record and tabulation shall be made at the time all bids are received and the tabulation shall be available for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

• (d) Award of Bid. The City Council may reject all bids or award the purchase contract to the lowest responsive and responsible bidder whose bid fulfills the intended purpose according to criteria designated in the solicitation, provided that an unencumbered appropriation exists for the purchase. The City Council may waive any minor bid irregularities. If bids are rejected, the City Council may authorize Purchasing staff to negotiate a contract for the purchase, initiate a rebid or abandon the purchase.

• (e) Rejection of Bids. The Purchasing Division and/or Department may recommend to the City Council rejection of any or all bids if it is determined to be in the best interest of the City.

• (f) Tie Bids. If two or more bids are received 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 accept either bid.

• (g) Bid Protest. Bid protest procedures shall be governed by the purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 144, adopted 5-24-60; amended by Ord. 21-1458, adopted 1-26-21)

Purchases of all supplies, non-professional services, and equipment shall be made by the Purchasing Clerk following any one of the open market procedures described herein when State and Federal laws, the purchasing policies and procedures adopted by City Council Resolution or directives of the Finance Director do not require observing the procedure prescribed by Section 2906:

• (a) Small Dollar. The purchase of non-professional services, supplies or equipment when the aggregate amount of which does not exceed the small dollar purchase threshold established by purchasing policies and procedures adopted by City Council Resolution.

• (b) Informal Written Quotes. The purchase of non-professional services, supplies or equipment when the aggregate amount of which does not exceed the threshold established by City Council Resolution. Informal written quotes require at least three quotes from unrelated vendors. If the quotes are received in other than written form then a quote form documenting the quote containing at a minimum the firm name, person providing the quote, the item(s) quoted, the price, and any other relevant information must be prepared, attached to the purchase requisition, and submitted to the Finance Department.

• (c) Formal Written Quotes. The purchase of non-professional services, supplies or equipment when the aggregate amount of which does not exceed the threshold established by City Council Resolution. Three written quotes must be obtained from unrelated vendors. The quotes are to be attached to the purchase requisition form submitted to Finance Department.

(Added by Ord. 170, adopted 4-25-61; amended by Ord. 21-1458, adopted 1-26-21)

For purchases of non-professional services, supplies, and equipment, bidding may be dispensed with under the following circumstances and pursuant to the purchasing policies and procedures adopted by City Council Resolution:

• (a) Emergency Situation. Emergency purchases shall be made only for the following reasons: (1) to preserve or protect life, health or property; (2) upon natural disaster; or (3) to correct or forestall a shutdown of public services.

• (b) Sole Source. The purchase of unique commodities and services which can be obtained from only one vendor or one distributor authorized to sell in Downey, with singular characteristics or performance capabilities or which have specific compatibility components with existing City products. Sole source purchases may include proprietary items sold direct from the manufacturer.

• (c) Cooperative. The Purchasing Division may participate in purchases and contracts established by other public or governmental agencies, provided the cooperative agreement has not expired and is established following a competitive bid process.

• (d) Piggyback onto Existing Contract. An existing unexpired contract for goods between another local, State or Federal government agency and a vendor may be used to purchase the same goods as those outlined in the awarding bid document.

• (e) Multiple Awarded Bids. Multiple awarded bids conducted by larger Federal, State or other governmental agencies wherein a competitive bidding process is conducted for a specified product. Several vendors whose product meets the specification are awarded the contract. Maximum item price and contract terms are established.

Exceptions to bidding for public works projects shall be governed by Downey City Charter Section 1211.

(Added by Ord. 21-1458, adopted 1-26-21)

• (a) For the purpose of calculating the lowest responsible bidder, vendors whose business or sales office or place of manufacture is located in the City of Downey shall be given a 10% credit in their bid in order to reflect the advantages that accrue to the City by the award of a bid to a local vendor.

• (b) This section does not apply to professional services and public works contracts which are subject to bidding pursuant to City Charter and State law.

(Added by Ord. 776, adopted 11-27-84; amended by Ord. 1310, adopted 2-12-13; Ord. 21-1458, adopted 1-26-21)

Bidding procedures as set forth herein and pursuant to Downey City Charter Section 1211 and the purchasing policies and procedures adopted by City Council Resolution, shall be followed for all public works projects as follows:

• (a) Informal Bidding Procedures.

  • (1) A public works project valued below the threshold for formal bidding as established by City Council Resolution pursuant to City Charter section 1211 shall utilize the informal bidding procedures set forth herein and as established by City Council Resolution.

  • (2) The initiating Department will obtain written quotations from at least three licensed contractors or authorized vendors. The contract shall be awarded to the lowest responsive and responsible bidder offering the most advantageous quote to the City.

  • (3) The City has the absolute right, in its sole discretion, to reject all bids, readvertise for bids or abandon the project.

  • (4) A Notice of Completions shall be filed upon final acceptance of the project.

• (b) Formal Bidding Procedures. A public works project, which is valued above the threshold for formal bidding as established by City Council Resolution pursuant to City Charter Section 1211 and the purchasing policies and procedures adopted by City Council Resolution, shall utilize the formal bidding procedures as follows:

  • (1) Authorization to Bid. The City Council shall authorize staff to advertise/solicit bids and approve the plans and specifications of the project on or before the City Council authorizes bid solicitation.

  • (2) Notice Inviting Bids. The Purchasing Division shall issue a notice inviting bids that includes a general description of the articles to be purchased or the services sought, states where the bid forms and specifications may be secured, and announces the time and place for opening bids. Notices inviting bids shall be publicly advertised not less than 10 days before the date of opening of bids, and shall be published at least twice, not less than five days apart, in a newspaper of general circulation published in the City. Additionally, notices inviting bids shall be advertised in an electronic bidding system established by the Purchasing Division.

  • (3) Bonds. The City may require the posting of a bidders' bond, performance bond and/ or payment bond for the project. If the City requires a bond, the form and amount of the bond shall be described in the notice inviting bids. Lowest responsive and responsible bidder shall forfeit all or part of its bid security upon the bidder's refusal or failure to execute the contract within 10 days of bid award.

  • (4) Bid Opening. Bids shall be submitted through an electronic bidding platform established by the Purchasing Division, as specified in the notice inviting bids. Bids shall be submitted in a manner that conceals the bid until the time of opening of all bids. Bids shall be opened at a location open to the public at the time and place stated on the notice inviting bids or as may otherwise be announced to all bidders. A tabulation of all bids received shall be open for public inspection during regular City business hours for a period of not less than 30 calendar days after the bid opening.

The manner of submission and the time and location of bid opening shall be stated in the notice inviting bids.

• (5) Award of Bid. City Council shall award the contract or reject the bids consistent with City Charter section 1211. If no bids are received, the project may be readvertised, modified and readvertised, or cancelled with the approval of the City Council.

• (6) Project Acceptance. Final acceptance reports for these public works projects must be submitted by the Director of Public Works or City Engineer to City Council for acceptance of capital improvement projects as complete. Notice of Completions shall be filed upon final acceptance of the project.

• (7) Exceptions. For procurement of public work projects, bidding may be dispensed with consistent with City Charter Section 1211 and State law.

• (8) Supplies and Materials. The purchase of supplies and materials for public works projects shall follow the bidding procedures in this chapter, the Downey City Charter Section 1211, and the purchasing policies and procedures adopted by City Council Resolution.

• (9) Maintenance and Repair Projects. Public works projects involving solely maintenance and/or repair projects shall follow be governed by Downey City Charter Section 1211 and the purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 21-1458, adopted 1-26-21; amended by Ord. 25-1530, 7/8/2025)

Professional services are those activities to be performed by specially trained persons or firms who provide services in connection with financial, economic, accounting, engineering, legal, environmental, administrative or other matters involving specialized expertise or unique skills. The retention of professional services shall be made pursuant to the purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 21-1458, adopted 1-26-21)

For the purchase of supplies, services, and equipment, such purchases may be made by the City officers and employees designated in the City's purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 21-1458, adopted 1-26-21)

Any unsuccessful bidder of a public works contract or a contract that is solely maintenance and/ or repair may file a protest regarding the procurement decisions authorized under this chapter.

• (a) Notice of Decision. After a decision regarding a procurement has been made, the Department Director or designee shall notify all persons, who submitted a response to a City solicitation, of the intended award. If a bidder is rejected because the bid is found nonresponsive or because the bidder is deemed not responsible, the City will give written notice to said bidder of evidence reflecting such decision.

• (b) Time to File Protest. All protests must be filed in writing and received by the Department Director within five business days of the date of opening the bids.

• (c) Form of Protest. All protests shall be in writing, state the grounds for the protest, state the facts relevant to the protest, and all evidentiary support to rebut adverse evidence that it or another bidder was either non-responsive or not responsible. All protests have to be filed in accordance with the instructions contained in the solicitation which is the subject of the protest.

• (d) City Manager Review. The City Manager or designee shall review the protest and issue a written decision on the protest. The City Manager or designee may base the decision on the written protest alone or may informally gather evidence from the person(s) filing the protest or any other person having relevant information. For procurements having a value of $125,000 or less, the City Manager's or designee's decision shall be final.

• (e) Hearing on Protest. If a bid was rejected on the grounds that the bidder was not a "responsible" bidder, the protesting party must submit materials set forth in subsection (d) above for consideration. A hearing will be set within a reasonable time to provide a decision before final approval of the selected low bid. For procurements having a value of $125,000 or less, the City Manager's or designee's decision shall be final.

• (f) Appeal of City Manager's Decision to City Council. For procurements having a value exceeding $125,000, an appeal of the City Manager's decision may be filed with the City Council. All such appeals must be in writing, and shall be filed with the City Clerk within five business days from the date of the City Manager's written decision.

• (g) Failure to Timely Appeal. An unsuccessful bidder who fails to file a protest within the times set forth in this section waives any right to protest the issue further. No appeal to either the City Manager or City Council of any decision to award a bid under this chapter may occur once the contract has been awarded.

• (Added by Ord. 21-1458, adopted 1-26-21)

Surplus property shall be disposed of in accordance with the purchasing policies and procedures adopted by City Council Resolution.

(Added by Ord. 21-1458, adopted 1-26-21)

CHAPTER 9A MISCELLANEOUS

The City of Downey declares that it desires to qualify to receive aid from the State of California under the provisions of Chapter 1 of Title 4, Part 4 of the California Penal Code. (Added by Ord. 167, adopted 4-25-61)

Pursuant to the provisions of Section 13522 of the Penal Code of the State of California, the City, while receiving aid from the State of California, pursuant to Chapter 1 of Title 4, Part 4 of said Penal Code, will adhere to standards no less strict or stringent than the standards for recruitment and training established by the California Commission on Peace Officer Standards and Training of the Department of Justice.

(Added by Ord. 167, adopted 4-25-61)

A member of the auxiliary police force shall have peace officer powers as provided for in Section 832.6 of the Penal Code. In addition thereto, a member of the auxiliary police force who is issued a level one reserve officer certificate before January 1, 1981, shall have the full powers and duties of a peace officer as provided by Section 830.1 if the Chief of Police determines that such member is qualified to perform general law enforcement duties by reason of the person's training and experience.

(Added by Ord. 663, adopted 7-14-81)

CHAPTER 10 DEBARMENT OF CONTRACTORS FROM CITY CONTRACTS