Firebaugh Municipal Code § 2-12 Purchasing System

[Ord. #171, S1; Ord. #327, S1; Ord. #97-1, S1]

The following purchasing system is hereby adopted, in order to promote efficient procedures for the purchase of supplies and equipment, to clearly define authority and procedures for the City's purchasing function, to secure supplies and equipment for the City at the lowest possible cost commensurate with the quality needed, and to exercise positive financial control over purchases.

[Ord. #171, S2; Ord. #327, S2]

The City Manager shall be the purchasing officer. When the office of City Manager is vacant, the assistant City Manager or acting City Manager shall act as purchasing officer.

[Ord. #171, S3; Ord. #327, S3; Ord. #97-1, S2; amended 10-5-2020 by Ord. No. 20-04]

a. The City Manager, as purchasing officer, has the authority to administratively approve and execute contracts where the expenditure has been approved in the City budget, the contract does not require competitive bidding, and the total proposed expenditure or liability exposure is under $15,000.

b. The City Manager is authorized to take steps to seek requests for qualifications (RFQs)/requests for proposals (RFPs) as necessary to determine the best value to the City for the given contract.

c. The City Manager shall also seek the approval as to legal form of the City Attorney for each contract.

[Ord. #171, S4; Ord. #327, S4; Ord. #97-1, S3]

The purchasing officer shall have the following duties and authority:

a. Purchase needed supplies or equipment, or contract for needed professional or technical services or assistance, in accordance with procedures prescribed by this section 12 and other applicable rules, regulations and laws.

b. Negotiate and issue or execute, or recommend for issuance or execution (as applicable in accordance with this section 12), purchase orders or purchase contracts for the purchase of supplies or equipment, or contracts for the obtaining of professional or technical services.

c. Keep informed of current developments in the field of purchasing, prices, market conditions and new products.

d. Prepare and recommend to the City Council such rules, regulations and revisions thereto as may be, in his judgment, advisable.

e. Prescribe and maintain such forms as are reasonably necessary to the operation of this section 12 and the rules and regulations. Such forms shall include requisition forms, purchase orders and such other forms as the purchasing officer deems necessary.

f. Maintain inventory of supplies and equipment, and inspect supplies and equipment purchased to determine conformance with specifications and other City requirements.

g. Recommend the transfer of surplus or unused supplies or equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which have become unsuitable for City use.

h. Maintain a vendors' list, vendors' catalog file and records needed for efficient operation of the purchasing system.

i. Subject to approval of the City Council, delegate any of the duties specified in this section to another City officer or employee.

[Ord. #171, S5; Ord. #327, S5; Ord. #97-1, S4]

City department heads or their respective designees shall submit all requests for supplies and equipment to the purchasing officer by standard requisition forms.

[Ord. #171, S6; Ord. #327, S6; Ord. #97-1, S5]

a. Except as provided otherwise in subsection b of this subsection 2-12.6, purchases of supplies and equipment shall be by formal bidding or open market procedures, as applicable, pursuant to subsections 2-12.9 or 2-12.10.

b. Bidding or open market procedures for a purchase of supplies and equipment may be dispensed with in any of the following cases:

1. The amount of the purchase is $5,000 or less.

2. An emergency requires that the purchase be made from the nearest source of supply. For purposes of this section 12, "emergency" means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate loss or impairment of life, health, safety, property or essential public services.

3. The supplies or equipment are available from only one source of supply.

4. The Council determines, based on findings in the record, that (i) the circumstances of the purchase would make it impracticable to make the purchase by bidding, (ii) bidding would not produce any economic advantage to the City and the taxpayers, or (iii) the purposes of bidding would not be met.

5. The contract is for professional services or technical services.

[Ord. #171, S6; Ord. #327, S6]

Purchases of supplies and equipment shall be made only on purchase order. In an emergency situation, where it is necessary to purchase supplies or equipment without a purchase order, the purchasing officer shall be contacted as soon as practicable to cover the purchase with a purchase order. Strict control shall be maintained to see that such emergency procedure does not become routine.

[Ord. #171, S2; Ord. #327, S8]

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies and equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

[Ord. #171, S9; Ord. #327, S9; Ord. #97-1, S6]

Except as otherwise provided in this section 12, purchases for supplies or equipment of estimated value greater than $10,000 shall be by written purchase contract with the lowest responsible bidder pursuant to the procedure prescribed herein.

a. Notice Inviting Bids. Notice inviting bids shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be secured, and the time and place for opening bids.

1. A notice inviting bids shall be published at least 10 days before the date of the opening of the bids. The notice inviting bids shall be published at least once 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 public places in the City as provided in section 2-13.

2. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible suppliers whose names are on the bidders' list or who have requested in writing that their names to be added thereto at least 10 days before the date of the opening of the bids.

3. Bulletin Board. The purchasing officer shall also advertise pending purchases by notice posted on a public bulletin Board in or at the City hall.

b. Bidders' Security. When deemed necessary by the purchasing officer or the City Council, bidders' security may be prescribed in the public notices inviting bids. The amount of the bidders' security also shall be determined by the purchasing officer or the City Council and set forth in the notices inviting bids; if no amount is so specified, it shall be not less than 10% of the aggregate amount of the bid. If bidders' security is prescribed, all bids shall be accompanied by bidders' security in the required amount and in the form of a surety bond, cashiers' check, certificate of deposit assigned to the City, or which other form as may be acceptable to the purchasing officer and the City attorney. Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed to the bidder, unless the City is solely responsible for the delay. On refusal or failure of the successful bidder to execute the contract within such ten-day period, the Council may award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest responsible bidder, the amount of the lowest bidder's security shall be applied to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

c. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be submitted at the place and by the time specified in the notices inviting bids. Any bid submitted at a different place or later than such time may be rejected. A tabulation of all bids received shall be open for public inspection during regular business hours of the City for a period of not less than 30 calendar days after the bid opening.

d. Rejection of Bids. Notwithstanding any other provision of this section 12, the City Council, in its sole and absolute discretion, may reject any and all bids presented. If the City Council rejects all bids, it may, in its sole and absolute discretion, either readvertise for bids or direct the purchasing officer to purchase the supplies or equipment according to the procedure in subsection 2-12.10.

e. Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein.

f. 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 accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening or within 10 days thereafter.

g. The City Council shall have authority to require a performance bond before entering a contract in such amount as it shall find 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.

[Ord. #171, S10; Ord. #327, S10; Ord. #97-1, S7]

Purchases of supplies or equipment of an estimated value in the amount of $10,000 or less may be made in the open market pursuant to this section without observing the procedure prescribed by subsection 2-12.9.

a. Minimum Number of Quotations. Open market purchases subject to this section shall, whenever possible and practicable, be based on at least three quotations, and shall be awarded to the vendor that submits the lowest responsible quotation, as determined by the purchasing officer. This requirement shall not apply when the amount involved is $5,000 or less. The purchasing officer may, in his discretion, reject any and all formal quotations.

b. Quotation Solicitation Procedure. The purchasing officer shall solicit formal written quotations by any one or more of the following, as determined by the purchasing officer: (i) written requests or telephone calls to prospective vendors, or (ii) interviews of prospective vendors, or (iii) public notice posted on a public bulletin Board in or at the City hall.

c. Written Quotations. Formal written quotations shall be submitted to the purchasing officer who shall keep a record of all open market orders and formal quotations for a period of one year after submission of quotations or the placing of orders, whichever is later. This record, while so kept, shall be open to public inspection during regular City business hours.

[Ord. #171, S11; Ord. #327, S11; Ord. #97-1, S8]

The purchasing officer or his designee shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the purchase order or contract. The purchasing officer or his designee shall have the authority to require chemical, physical and other tests of samples submitted with quotations or bids and samples of deliveries as deemed necessary to determine quality of the supplies or equipment and their conformance with specifications.