El Centro Municipal Code Div. 5 Purchasing System

Footnotes:

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Editor's note— Ord. No. 90-14, § 1, adopted June 20, 1990, repealed former Div. 5, §§ 2-166—2-178, in its entirety and enacted new provisions therefor. Former Div. 5 was concerned with similar provisions, and derived from Ord. No. 61-11, § 1; and the Code of 1962, §§ 2-28—2-40.

This division shall be known and may be cited as the "El Centro Purchasing Ordinance."

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

In order to establish efficient procedures for the purchase of supplies, 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 purchasing system is adopted. Excluded from this policy are purchases of supplies, services and equipment which are included as part of a "Public Works Contract" and consequently are subject to the regulations contained in the State of California Public Contract Code and is covered within City Code, ch. 2, art. IV, div. 5.1, public projects.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

The director of finance, or in the alternative such other person as may be designated in writing by the city manager, shall be and is appointed to perform the functions of the purchasing officer for the city.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

The purchasing officer shall:

(1) Purchase or contract for supplies, services and equipment required by any using agency or department in accordance with purchasing procedures prescribed by this division, such administrative rules and regulations as the purchasing officer shall adopt for the internal control and operation of the purchasing function and such other rules and regulations as shall be prescribed by the council or city manager;

(2) Prepare and adopt administrative rules and regulations not in conflict with the provisions of this ordinance for the purpose of carrying out the requirements and intent of this purchasing system.

(3) Negotiate and execute contracts for the purchase of supplies, services and equipment;

(4) Procure for the city the needed quality in supplies, services and equipment at least expense to the city;

(5) Encourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;

(6) Prepare and recommend to the council rules governing the purchase of supplies, services and equipment for the city;

(7) Prepare and recommend to the council revisions and amendments to the purchasing rules;

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

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

(10) Insure that all supplies, services and equipment purchased conform with specifications;

(11) Recommend to the city manager or city council, as appropriate, the transfer of surplus or unused supplies and equipment between agencies or departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which become unsuitable for city use;

(12) Maintain a bidder's list.

(13) Recommend to the council the disqualification for a stated period of time vendors who default on their quotations.

(14) Consider the possibilities of buying "in bulk" so as to take full advantage of discounts.

(15) Have the right to waive any defect or informality with the approval of the using department or agency.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

All standards and specifications shall permit competition.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

The purchasing officer may authorize in writing any agency or department to purchase or contract for specified supplies, services and equipment independently of the purchasing officer, but shall require that such purchases comply with the procedures established by this division and shall further require periodic reports from the agency or department on the purchases on contracts made under such written authorization.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

(a) Purchases materials, supplies, equipment or services may be made by means of purchase orders processed and issued pursuant to this chapter and shall be valid only when signed by the purchasing officer or other persons as may be designated by the purchasing officer to act in his behalf. Except as otherwise provided, a purchase order is not required for the purchase of supplies, equipment and services of less than two thousand five hundred dollars ($2,500.00) and for the following type of expenditures:

(1) Advertisements and notices;

(2) Attorney services;

(3) Consultant services;

(4) Courier/delivery/messenger services;

(5) Fuel;

(6) Insurance claims and premiums;

(7) Medical payments (physicians, lab, etc.);

(8) Memberships dues;

(9) Payments to other governmental units;

(10) Petty cash replenishment;

(11) Subscriptions;

(12) Trade circulars or books;

(13) Travel expense/advances;

(14) Utility payments;

(15) Real property/easement acquisition;

(16) Personal services;

(17) Debt service payments;

(b) All purchase orders shall be issued in advance of any commitment for which they are issued except in emergency situations where a delay would be detrimental to the interest of the city or would jeopardize the health, safety or welfare of its citizens (see section 2-176). Except in an emergency, no purchase order shall be issued and no contract shall be awarded unless there exists an unencumbered appropriation in the expense account against which such purchase or contract is to be charged. The appropriate account and funds shall be encumbered immediately after the issuance of the purchase order or award of contract.

(c) Open purchase orders. An open purchase order is an agreement whereby the city contracts with a vendor to provide equipment or supplies on an as-needed and often over-the-counter basis. Open purchase orders provide a mechanism whereby items, which are uneconomical to stock, may be purchased in a manner that allows field operations timely access to necessary materials. Open purchase orders shall not be used to purchase services, capital assets or items maintained in stock.

The finance department shall request confirmation from the city departments, as to which vendors they want to maintain in the open purchase order list. Confirmations will be performed annually before the beginning of the fiscal year. Requests for open purchase orders may also be submitted to the finance department on an as-needed basis. The finance department may review the open purchase order requests using the following criteria:

(1) Frequency of need;

(2) Average dollar value and type of items to be purchased;

(3) Responsiveness and capabilities;

All open purchase orders shall include the following information:

(1) A general description of the equipment of supplies which may be charged;

(2) The period of time the order will remain open, not to exceed one (1) fiscal year;

(3) The maximum total amount which may be charged on the purchase order;

(4) Items excluded from the purchase, if applicable;

(5) Identification of the department(s) and employee(s) who may charge against the order;

(6) Requirement that the employee show city identification;

(7) Requirement that employees print and sign their names when picking up goods; and

(8) Account number to be charged.

Once an open purchase order is issued to a vendor, any authorized city employee may contact the vendor directly to place orders per the terms and conditions in the open purchase order.

(d) Nothing herein shall preclude the use of authorized petty cash funds for purposes intended by their establishment.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)

(a) A bid bond, performance bond, payment bond or any combination thereof, with sufficient surety, in such amount as may be determined necessary by the purchasing officer may be required of each bidder or contractor on a particular contract.

(b) Any such bonds may be to insure proper performance of the contract and save, indemnify and keep harmless the city against all loss, damages, claims, liabilities, judgments, cost and expenses which may accrue against the city in consequence of the awarding of the contract.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

Except as otherwise provided by specific statute:

(1) The purchasing officer may enter into a contract of any nature without advertising when the estimated amount required to perform the contract is twenty-five thousand dollars ($25,000.00) or less.

(2) Contracts of between twenty-five thousand dollars ($25,000.00) and fifty thousand dollars ($50,000.00) will require both the city manager's and purchasing officer's approval and shall be let by the administrative bid process set forth herein:

a. The department head may mail notices inviting formal bids. The notices shall be mailed to all qualified vendors on the bid list or who have requested their name to be added thereto unless the product or service is proprietary.

b. The notices to the fullest extent possible should be mailed no later than ten (10) calendar days before the opening date of the bids. The notices shall describe the commodities or services in general terms, how to obtain more detailed information, and state the time and place for submission of bids. Failure of any person to receive such notice shall not invalidate any bid awarded.

c. A notice inviting bids shall be published at least ten (10) calendar days before the date of opening of the bids. Notice shall be published in a newspaper of general circulation, printed and published in the city, or, if there is none, it shall be posted in at least three (3) public places in the city.

d. Such notice must state:

1. The nature, character or object of the contract.

2. If the plans and specifications are to constitute part of the contract, where the plans and specifications may be seen.

3. The time and place where bids will be received and opened.

4. Such other matters as may properly pertain to giving notice to bid.

e. Sealed bids shall be submitted to the city clerk and shall be identified as a bid on the envelope. The bid must include an original signature of an authorized person.

f. The city clerk or his/her designee shall open bids in public at the time and place stated in the public notices.

g. Contract shall be awarded by the city manager and purchase officer to the lowest responsible bidder except as otherwise provided in this chapter. The decision of the city manager shall be final.

h. In their discretion, the city manager and purchase officer may reject any or all bids presented, abandon the purchase or re-advertise. A permanent record of all requests for bids and all bids received shall be maintained. If no responsible bid is received, the city manager and purchasing officer may let the contract without further competitive bidding.

i. If two (2) or more bids received are the same and lowest, the city manager and purchase officer may accept the one it chooses.

j. If no bids are received, the contract may be let in the open market, or by the informal procedures set forth in section 2-173.

k. The city manager and purchase officer shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.

l. In the event no responsible bids are received, the city manager and purchase officer may let the contract without competitive bidding.

(3) If the estimated amount required to perform the contract, is more than five thousand dollars ($5,000.00) but not more than twenty-five thousand dollars ($25,000.00), requests for bids may be submitted in writing or verbally to two (2) or more persons or businesses capable of performing the contract. If the bid was received verbally, the department head must submit a written memo documenting the request and bids received. The contract shall be issued to the lowest responsible bidder. The purchasing officer shall maintain a permanent record of all requests for bids and all bids received. If no responsible bid is received, the purchasing officer may let the contract without further competitive bidding.

(4) Nothing [in] this section prohibits the purchasing officer from advertising for or requesting bids regardless of the estimated amount to perform the contract.

(5) The council may, from time to time, modify the monetary limits in this section by resolution.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)

(a) Purchases and contracts for supplies, services, equipment and the sale of surplus property of estimated value greater than fifty thousand dollars ($50,000.00) shall be let by the formal procedures set forth herein.

(1) The department head shall mail notices inviting formal bids. The notices shall be mailed to all qualified vendors on the bid list or who have requested their name to be added thereto unless the product or service is proprietary.

(2) The notices to the fullest extent possible should be mailed no later than ten (10) calendar days before the opening date of the bids. The notices shall describe the commodities or services in general terms, how to obtain more detailed information, and state the time and place for submission of bids. Failure of any person to receive such notice shall not invalidate any bid awarded.

(3) A notice inviting bids shall be published at least ten (10) calendar days before the date of opening of the bids. Notice shall be published in a newspaper of general circulation, printed and published in the city, or, if there is none, it shall be posted in at least three (3) public places in the city.

(4) Such notice must state:

a. The nature, character or object of the contract.

b. If the plans and specifications are to constitute part of the contract, where the plans and specifications may be seen.

c. The time and place where bids will be received and opened.

d. Such other matters as may properly pertain to giving notice to bid.

(5) Sealed bids shall be submitted to the city clerk and shall be identified as a bid on the envelope. The bid must include an original signature of an authorized person.

(6) Bids shall be opened in public by the city clerk or designee at the time and place stated in the public notices.

(7) Contracts shall be awarded by the council to the lowest responsible bidder except as otherwise provided in this chapter. The decision of the council shall be final.

(8) In its discretion, the council may reject any bids presented, abandon the purchase or re-advertise. If all the bids submitted are rejected, the council may either re-advertise or adopt a resolution by a four-fifths (⅘) majority declaring that the materials or supplies can be furnished at a lower price in the open market and away award the contract in the open market without further complying with this section.

(9) If two (2) or more bids received are the same and lowest, the council may accept the one it chooses.

(10) If no bids are received, the contract may be let in the open market, or by the informal procedures set forth in section 2-173.

(11) The council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.

(12) In the event no responsible bids are received, the council may let the contract without competitive bidding.

(13) The council may modify, from time to time, the monetary limits in this section by resolution.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)

Contracts shall be awarded to the lowest responsible bidder. In determining "lowest responsible bidder" in addition to price and conformance to specifications, the following, without limitation, may be considered:

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

(2) That the products offered provide the quality, fitness, and capacity for the required usage;

(3) Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;

(4) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

(5) The quality of performance of previous contracts or services;

(6) The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

(7) The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

(8) The quality, availability, and adaptability of the supplies or contractual services to the particular use required; and

(9) The ability of the bidder to provide future maintenance and service.

(10) The number and scope of conditions attached to the bid.

(11) The amount of sales tax to be received by the city.

When the contract is not awarded to the lowest bidder under section 2-173, a statement of the reasons for placing the award elsewhere shall be prepared by the purchasing officer and filed with the other papers relating to the transaction.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

(a) The bid procedures set forth in section 2-173 and 2-174 need not be followed in situations determined by the city manager to constitute an emergency. If such emergency action is taken, the city manager shall report it to the council at its next regularly scheduled meeting.

(b) For the purposes of this section, an "emergency" includes:

(1) Results from the occurrence of disaster such as, but not limited to, fire, flood, hurricane, riot, power outage or disease; or,

(2) May lead to impairment of the health, safety, or welfare of the public if not immediately attended to.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

(a) Contracts including, but not limited to:

(1) Items which may only be contracted from a sole source;

(2) Contracts for professional services;

(3) Additions to and repairs and maintenance of equipment which may be more efficiently added to, repaired, or maintained by a certain person;

(4) Equipment which, by reason of the training of the personnel or of any inventory of replacement parts maintained by the city is compatible with the existing equipment;

(5) Computer equipment, and software.

(6) Books, library materials, and subscriptions; and

(7) Any insurance, may not be subject to the competitive bidding requirements of this division as determined by the council or the purchasing officer.

(b) Except in cases of emergency, at least sixty (60) days prior to the expiration date of any existing contract for insurance in which the city is the insured, the city clerk may cause to be given, by advertising, or in another manner deemed adequate and desirable by the council, notice of the expiration date of such contract for insurance.

(c) Nothing in this section prohibits council or the purchasing officer from advertising for or requesting bids.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)

(a) Nothing in this division prohibits the purchasing officer from contracting for interstate or intrastate carriage of persons or property with a certificated common carrier at the rates set forth in the officially approved tariff of such carrier.

(b) Nothing in this section prohibits the purchasing officer from soliciting informal rate quotations.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

(a) Except as otherwise provided by law, if the purchasing officer, with the approval of the city manager, determines that supplies, materials or equipment can be purchased at any public auction, closeout sale, bankruptcy sale, sale of merchandise left after an exhibition, or other similar sale at a reasonable savings over the cost of like merchandise and below the market cost in the community, a contract or contracts may be let or the purchase made without complying with the requirements of this division for competitive bidding.

(b) The documentation for the purchase or acquisition shall be summarized for the next regularly scheduled meeting of the council, together with written justification showing the savings involved.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

(a) Any agreement or collusion among bidders or prospective bidders in restraint of freedom of competition by agreement to bid a fixed price, or otherwise, shall render the bids of such bidders void.

(b) Advance disclosures of any information to any particular bidder which would give that particular bidder any advantage over any other interested bidder in advance of the opening of bids, whether in response to advertising or an informal request for bids, whether in response to advertising or an informal request for bids, made or permitted by an officer or employee of the city, shall operate to void all proposals of that particular bid solicitation or request.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1

When purchasing personal property, the purchasing officer may solicit and accept advantageous trade-in allowances for personal property of the city which has been determined by the council to be no longer required for public use, and may award any bid to the bidder submitting the lowest net bid after deduction of such trade-in allowance.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1)

The head of any city department may request that supplies or equipment (collectively "personal property") held by such department be declared to be surplus when such supplies or equipment are of no further use to that department or to any other department in the city. Such property may be disposed of as set out below depending upon the value of the personal property and the maximum return to the city.

(a) This section does not apply to the police department's disposal of unclaimed personal property pursuant to City Code chapter 18, article VI (section 18-126 et. seq.) and supersedes Policy No. 302 in its entirety.

(b) For surplus personal property valued at fifty thousand dollars ($50,000.00) or more, the department head or his/her designee shall dispose of surplus supplies or equipment by auction as set out here:

(1) Auction: In conducting an auction, the department may contract with a professional auctioneer and allow a flat fee, hourly fee or percentage of the amount of the sale to be paid based upon that which is common and customary method and rate for such auctioneering services. The department head also may post items on the city website and accept sealed bid.

In either case, the department head shall cause to be published at least ten (10) calendar days before the sale, in a locally adjudicated newspaper, and by posting on the city website, a notice setting forth a general description of the surplus personal property to be sold, and the day, time and location of the sale. The terms of all such sales shall be cash or cashier's check in the full amount of the purchase price.

(2) Website: Alternatively, the department head may utilize an online auction company for an online under the terms and conditions provided by that auction website.

(c) For personal property with a value of less than fifty thousand dollars ($50,000.00) or for personal property that has not sold under the provisions of subsection (a) above, the department head may recommend to the city council that such surplus personal property be donated to any other governmental organization (including one outside the United States) or non-profit group or corporation exempt from federal taxes pursuant to Internal Revenue Code section 501(c)(3) located within or serving the City of El Centro. Such donation must be approved by resolution of the city council.

(d) For personal property valued at less than ten thousand dollars ($10,000.00), the city manager may authorize the donation of such property to a governmental organization (include one outside the United States) or non-profit 501(c)(3) located within or serving the city.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)

The city may join or use the contracts of other public agencies with the authorization of the contracting vendor, even when one or more of the contracting agencies is located outside California.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 14-04, § 1)

The purchasing officer may 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. 90-14, § 1; Ord. No. 07-16, § 1)

(a) No contract awarded pursuant to section 2-173 (below fifty thousand dollars ($50,000.00)) may be assigned without consent of the city manager.

(b) No contract awarded pursuant to section 2-174 (above fifty thousand dollars ($50,000.00)) may be assigned without consent of the city council.

(c) No contract awarded or any portion thereof may be assigned to any person who was declared by the purchasing officer, with respect to contracts awarded under section 2-173, or by the council with respect to contracts awarded under section 2-174, not to be a responsible person to perform the particular contract.

(Ord. No. 90-14, § 1; Ord. No. 07-16, § 1; Ord. No. 18-12, § 4, 12-4-18)