East Palo Alto Municipal Code Ch. 2.84 Purchasing

Footnotes:

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Editor's note— Ord. No. 340, att. A, adopted Feb. 15, 2011, amended ch. 2.84 in its entirety to read as herein set out. Former ch. 2.84, §§ 2.84.010—2.84.170, pertained to similar subject matter and derived from: Prior code §§ 2-5.401—2-5.416; and Ord. 200, § 1, 1996.

In order to establish efficient procedures for the purchase or contract of supplies, services, equipment, and public projects, at the lowest cost commensurate with required quality; to exercise positive financial control over purchases that meet legal requirements and generally accepted accounting principles; and to define authority for the purchasing function: a purchasing system is adopted.

(Ord. No. 340, att. A, 2-15-2011)

The city manager shall recommend, and the city council shall approve, a purchasing policy as necessary to implement a purchasing system compliant with Section 2.84.010.

The purchasing policy shall include designating city staff, known collectively as the "purchasing authority", who are authorized and obligated pursuant to the authority granted by the ordinance from which this chapter derives to:

A. Purchase or contract for supplies, services, equipment and public projects required by any using department in accordance with purchasing procedures prescribed by this chapter and such administrative regulations as may be adopted for the internal management and operation of the purchasing authority;

B. Negotiate and recommend execution of contracts for the purchase of supplies, services, equipment and public projects;

C. Act to procure for the city needed quality in supplies, services, equipment, and public projects at the lowest cost to the city;

D. Encourage competitive bidding as set forth in this chapter;

E. Prepare and recommend to the city manager rules, revisions and amendments governing the procedures for the purchase of supplies, services, equipment and public projects for the city;

F. Prescribe and maintain such forms as necessary to the operation of this chapter and other rules and regulations;

G. Supervise the inspection of all supplies and equipment purchased to insure conformance with contract documents;

H. Maintain a bidders' list of the vendors that are capable of supplying the various goods, supplies, and services required by the city;

I. Execute the provisions contained in this chapter, provide administrative interpretation thereof and advise on the provisions contained herein.

(Ord. No. 340, att. A, 2-15-2011)

All departments shall be responsible for estimating requirements for supplies, services, equipment, and public projects. Estimates shall be prepared in a manner, and at such time, as necessary for the appropriation of funds and to conduct City business.

(Ord. No. 340, att. A, 2-15-2011)

A. All departments shall comply with Public Contracts Code Section 22150 which requires the purchase of recycled products instead of non-recycled products whenever recycled products are available at the same or a lesser total cost than non-recycled items, if fitness and quality are equal.

B. All service providers and vendors providing paper products and printing and writing paper 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 (30) percent, by fiber weight, postconsumer fiber instead of non-recycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than 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, which may be electronic, 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, in accordance with this chapter, of all paper products and printing and writing paper purchases within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by any city department or employee. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required by subsections B.3. and B.4. 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.

C. All service providers and vendors providing compost shall:

1. Provide compost that meets the definition in East Palo Alto Municipal Code Chapter 8.32.

D. All vendors providing mulch shall:

1. Provide SB 1383 eligible mulch that meets the definition in East Palo Alto Municipal Code Chapter 8.32.

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

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

G. "Recycled-content paper" means and include paper products and printing and writing paper that consists of at least thirty (30) percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).

(Ord. No. 05-2021, § 1, 11-16-2021)

When an emergency exists, in the judgment of the department head or designee, which requires immediate action in the interest of public health, safety and welfare, and the city manager or an appointed designee are not available, the department head, or designee may authorize the necessary supplies, services and equipment. The city manager, or an appointed designee,shall have similar authority in the event of the necessity for immediate emergency action.

(Ord. No. 340, att. A, 2-15-2011)

Bidding may be dispensed with:

A. When an emergency requires the invocation of Section 2.84.060;

B. When the amount involved is less than five thousand dollars ($5,000.00) for public projects, and less than ten thousand dollars ($10,000.00) for other purchases of supplies, services, and equipment;

C. When the commodity can be obtained from only one vendor;

D. When other special circumstances require, and the city manager recommends disregarding bid procedures, and city council approval is obtained to disregard bid procedures and which expressly authorizes negotiations with one or more firms, persons, corporations, partnerships and/or associates for entities;

E. When either Section 2.28.140 or Section 2.28.180 of this chapter is applicable.

(Ord. No. 340, att. A, 2-15-2011)

Public projects with an estimated value exceeding five thousand dollars ($5,000.00) and other purchases with an estimated value exceeding twenty-seven thousand dollars ($27,000.00) shall be by written contract with the lowest responsible bidder, except as otherwise provided in this chapter and pursuant to the procedures prescribed in this chapter.

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the supplies, services, equipment and public projects to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

1. Published Notice. The purchasing agent shall cause the city clerk to have notice inviting bids published and posted at least ten days before the date of opening the bids. Notices shall be circulated and shall be posted on the official bulletin board of the city located in the city offices.

2. Bidders List. The purchasing authority shall solicit sealed bids from all responsible prospective suppliers whose names are on the bidders list or who have made written request that their names be added thereto.

3. Bulletin Board. The purchasing authority shall also advertise pending purchases by a notice posted on a public bulletin board in the city offices.

B. Bidder's Security. When deemed necessary by the purchasing authority, bidders security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract and the contract has been mailed. The city council may, at its option, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder, and if the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the contract price differential between the lowest bid and the second lowest bid, subtracting administration costs; if any surplus exists it shall be returned to the defaulted bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing authority and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices by the city clerk, the purchasing authority and department head or their authorized designee. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

D. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of 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 negotiations with the tie bidders at the time of the bid opening.

E. Award of Contracts. The purchasing authority, except as otherwise provided in this chapter, shall recommend contract approval to the city manager and city council. Contracts subject to formal bid procedure shall be awarded by the city council.

F. Rejection of Bids. At its discretion, the city council may reject any or all bids presented, waive any irregularity in any bid received and award the contract or readvertise for bids pursuant to the procedure hereinabove prescribed.

G. Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

H. Lowest Responsible Bidder Determination. In determining the lowest responsible bidder, the following factors may be considered in addition to price:

1. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

2. The character, integrity, reputation, judgement, experience of the bidder, considering efficiency for the city or other contracting parties;

3. The quality of performance by the bidder of previous contacts or services for the city or other contracting parties;

4. The previous and existing compliance by the bidder with state laws and city ordinances relating to contracts or services;

5. The sufficiency of the financial resources and the ability of the bidder to perform the contract or provide the services;

6. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract.

(Ord. No. 340, att. A, 2-15-2011)

Purchase of supplies, services and equipment, other than public projects, of an estimated value in the amount of twenty-seven thousand dollars ($27.000.00) or less may be made by the purchasing authority in the open market pursuant to the procedure prescribed in this chapter; provided, however, that all bidding may be dispensed with for purchases of supplies, services, and equipment having a total value of ten thousand dollars ($10,000.00) or less.

Purchases for public projects with an estimated value of five thousand dollars ($5,000.00) or less may be made by the purchasing authority in the open market pursuant to the procedure prescribed in this chapter and without regard to the procedure prescribed in Section 2-5.308.

A. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids and shall be awarded to the lowest responsible bidder consistent with the quality of supplies, services, equipment and public projects required.

B. Notice Inviting Bids. The purchasing agent or his/her designated representative shall solicit bids by written request to prospective vendors or by telephone.

C. Written Bids and Phone Bids. Written bids and phone bids shall be submitted to the purchasing agent who shall keep a record of all open market orders and bids for a period of one year after submission of bids or the placing of orders. This record, while so kept, shall be open for public inspection.

(Ord. No. 340, att. A, 2-15-2011)

Purchases of supplies, services and equipment shall be made by purchase orders when practicable. Unless otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the purchasing authority has been obtained. The purchasing Authority shall enforce the purchasing procedure.

(Ord. No. 340, att. A, 2-15-2011)

Except in cases of emergency or in cases where specific authority has been first obtained from the city manager, the purchasing authority shall not issue any purchase order for supplies, services, equipment and public projects unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. No. 340, att. A, 2-15-2011)

The purchasing agent or his delegated representative shall inspect supplies and equipment delivered to determine their conformance with the contract documents or specifications set forth in the order. The purchasing agent 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, including OSHA and/or California industrial safety standards.

(Ord. No. 340, att. A, 2-15-2011)

All departments shall submit to the purchasing authority, at such time and in such forms as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing authority shall have authority to exchange for or trade in on new material supplies and equipment which cannot be used by any agency or which have become unsuitable for city use with value up to five thousand dollars ($5,000.00) total value for any one transaction. Multiple transactions shall not be utilized by the purchasing authority to avoid the five thousand dollar ($5,000.00) limit. All exchange or trade transactions shall be reported to the city manager.

(Ord. No. 340, att. A, 2-15-2011)

Government Code 20161 defines "public project" as follows:

A. A project for the erection, improvement, painting, or repair of public buildings and works;

B. Work in or about streams, bays, water fronts, embankments, or other work for protection against overflow;

C. Street or sewer work except maintenance or repair; and

D. Furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers.

(Ord. No. 340, att. A, 2-15-2011)

The city manager is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts funded for construction or purchase and for contingencies as established in the project authorization.

(Ord. No. 340, att. A, 2-15-2011)

A. On any specific project exceeding fifty thousand dollars ($50,000.00) in estimated costs, the City may elect to prequalify contractors as defined in this section. In such case the city shall limit bids to contractors who have been prequalified and placed on a prequalification list for such project.

B. "Prequalification" is defined as the process of establishing that a contractor is qualified, fit and capable, based upon past experience and current ability, to perform and complete the project in a timely and economically efficient manner. Poor past performance, by itself, is an adequate ground for determining that a bidder is not responsible. Prequalification shall be used to determine if a contractor is responsible as required by the ordinance codified in this section and state law.

C. In order to prequalify all general contractors (hereinafter contractors) must complete a questionnaire designed to obtain information about licenses, past experience in performing similar projects, financial ability, compliance with appropriate laws and regulations, insurance, past and urgent information regarding litigation, and staffing, and such other areas of inquiry that will enable the city to complete the project on time and within budget.

D. All information provided by contractors is subject to review by the city. The determination as to whether a contractor is prequalified rests solely with the city. The city further reserves the right to reject all prequalification questionnaires and repeat the prequalification process.

(Ord. No. 340, att. A, 2-15-2011)

Subject to the California Government Code and the California Public Contracts Code, the city manager shall recommend, and the city council shall approve, a report of purchases for which the provisions of this chapter shall not apply. Such report may contain, but is not limited to, purchases for the following:

A. Franchises governed by the provisions of the California Public Utilities Code or other statute of the State of California;

B. Insurance coverage and employee benefits;

C. Intergovernmental agreements;

D. Utilities, including, but not limited to, telephone service, fuel, electricity, or water.

(Ord. No. 340, att. A, 2-15-2011)