Article V — PURCHASING

Editor's note— Ord. No. 1576, § 1, adopted March 25, 2008, amended article V in its entirety to read as herein set out. Formerly, article V, §§ 10-136—10- 150 pertained to similar subject matter, and derived from the Code of 1968, §§ 2-75—2-88; Ord. No. 1086, §§ 11, 12, adopted August 17, 1993; Ord. No. 1311, § 1, adopted December 21, 1999, and Ord. No. 1522, § 1, adopted August 8, 2006.

City. Means the City of Fontana.

City manager. For the purposes of this article, the term "city manager" shall mean the city manager or person designated by the city manager to perform all or some of the duties prescribed in this article.

Emergency. For the purposes of public projects, as defined in this article, the term "emergency" shall have the meaning provided in California Public Contracts Code § 22050. For all other purchasing or contracting purposes, "emergency" shall mean a condition or possible safety situation which makes bidding procedures, either formal or informal, impractical or not in the best interests of the city.

Fontana formal bidding procedure. For purposes of this article, the term "Fontana formal bidding procedure" shall mean a procedure that meets the requirements for formal bidding on nonpublic projects, as specified in section 10-148 and in the purchasing manual.

Maintenance work. For the purpose shall have the definition given in Public Contracts Code § 22002 or any successor statute thereto, and shall also include janitorial and custodial services.

Nonpublic project. For purposes of this article, the term "nonpublic project" shall mean any purchases and contracts for supplies, materials, equipment, and services that are not a public project or part thereof, as defined in this article, and that are not professional services.

Professional services. For the purposes of this article, the term "professional services" shall mean all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for accounting, auditing, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, personnel, social services, animal control, legal, management, cable television, communication and other similar professional functions which may be necessary for the operation of the city.

Purchasing manual. For the purposes of this article, the term "purchasing manual" shall mean the purchasing policies and procedures manual adopted by the city for the purpose of implementing this article.

Public project. For the purposes of this article, the definition given in Public Contracts Code § 22002 or any successor statute thereto. "Public project" does not include maintenance work.

Using agency. For the purposes of this article, the term "using agency" shall mean all departments, boards, commissions and offices of the city.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Cross reference— Definitions and rules of construction generally, § 1-2.

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 best value commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to ensure the quality of purchases, a purchasing system is hereby adopted.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

There is hereby created a centralized purchasing department, responsible to the city manager, for the purchase of supplies, services, and equipment.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

There is hereby created the position of purchasing officer. The purchasing officer, under the direction of the city manager, shall have general supervision of the purchasing department. The duties of purchasing officer may be combined with those of any other office or position.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

The purchasing officer shall have authority to:

(1)

Prepare and issue all notices inviting bids and, prior to issuance, determine the requested supplies, service or equipment is contained in the city's adopted budget.

(2)

Purchase or contract for supplies, services and equipment required by any using agency in accordance with purchasing procedures prescribed by this article.

(3)

Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment.

(4)

Act to procure for the city the needed quality in supplies, services and equipment at the best value to the city.

(5)

Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

(6)

Prepare and maintain for the city manager a purchasing manual.

(7)

Prepare and recommend to the city manager revisions and amendments to the purchasing manual.

(8)

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

(9)

Maintain such forms as reasonably necessary to the operation of this article and other rules and regulations.

(10)

Supervise the inspection of all supplies, services and equipment purchased, to ensure conformance with specifications.

(11)

Recommend to the city manager the transfer of surplus or unused supplies 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.

(12)

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

(13)

Enter into participating purchase agreements with other public agencies, such as the county and the state, for services, supplies and equipment.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

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

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

All using agencies shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time and for such future periods as the purchasing officer shall prescribe.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Using agencies shall submit requests for supplies, services and equipment to the purchasing officer by approved electronic means or methods.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to this article. Bidding procedures shall be dispensed with only under the circumstances set forth in section 10-152, or as otherwise specified herein.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Except for purchase of supplies, services, and equipment within the amount identified in the purchasing manual as a "small purchase," all purchase of supplies, services and equipment shall be made only by purchase order.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Except in cases of emergencies, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exist budgeted funds against which such purchase is to be charged.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

(a)

Formal. Public projects, as defined in this article, shall be let to the lowest responsible, responsive bidder in accordance with the Public Contracts Code § 22032 et. seq., such additional procedures that may be established in the city's purchasing manual and the following requirements:

(1)

Notice inviting bids. The notice inviting bids shall state the time and place for the receiving and opening of sealed bids and shall distinctly describe the project. At a minimum, the notice inviting formal bids shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of sealed bids; and (4) include any other information required by this article, or as may be determined by the purchasing officer and city.

Published notice. Notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the public agency. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in Public Contracts Code § 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. In addition to notice required by this section, the public agency may give such other notice as it deems proper.

(2)

City authority. The city may reject any or all bids received, and may readvertise at its discretion. The city may also waive any minor irregularities in each bid received.

(3)

Bidder's security. Bidder's security in the amount of at least ten percent of the bid amount shall be required.

(4)

Award of contracts. Contracts shall be awarded by the city council to the lowest responsible, responsive bidder, except as otherwise provided in this article.

(5)

Tie bids. If two or more bids received are for the same total amount or unit price, the city may accept the one it chooses or accept the lowest bid made by negotiation with the bidders at the time of the bid opening.

(6)

Emergency procedures. Contracts for public work projects may be let without following the procedures established in this article if such purchases are deemed by the city council to be of urgent necessity for the preservation of life, health, or property. Such determination shall be authorized by resolution of the city council passed by at least four affirmative votes. The resolution shall contain a declaration of facts that constitute the urgency.

(b)

Informal. Informal bidding procedures is hereby being added to the Code as follows:

(1)

Informal bid procedures. Public projects, as defined by the Act and in accordance with the limits listed in Public Contracts Code § 22032, may be let to contract by informal procedures as set forth in Public Contracts Code § 22032 et seq.

(2)

Contractors list. A list of contractors shall be developed and maintained in accordance with the provisions of Public Contracts Code § 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(3)

Notice inviting informal bids. Where a public project is to be performed which is subject the provisions of this section, a notice inviting informal bids shall be mailed, emailed or faxed to all contractors for the category of work to be bid, or to all construction journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Public Contracts Code § 22036 or to both. Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids, provided however:

If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission.

If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

(4)

Award of contracts. The city purchasing agent/officer is each authorized to award informal contracts pursuant to this section. The awarding of public projects pursuant to this section may also be authorized by the appropriate official or body pursuant to delegation of authority by the city council.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1595, 5-12-09; Ord. No. 1911, § 2(Exh. A), 12-13-22)

The city shall use the following Fontana formal bidding procedure for nonpublic projects in an amount equal to or greater than that amount specified in the purchasing manual as requiring use of the formal contract procedure.

(1)

Awarding of bid. Contracts shall be awarded in the best interest of the city either: (i) to the lowest responsible, responsive bidder pursuant to the procedures established in this section and the purchasing manual, or (ii) to the bidder that provides the best value to the city based on the criteria and requirements established in the bid documents and the purchasing manual. The bid documents shall specify the basis upon which the contract shall be awarded.

(2)

Notice inviting bids. Notice inviting bids shall include a general description of the articles to be purchased, shall state where bids and specifications may be secured, shall state the basis for award of the contract, and shall state the deadline and place for bid submission.

a.

Published notice. Notice inviting bids shall be published on the city's web page at least ten calendar days prior to the scheduled deadline for submission of bids.

b.

Bidder's list. The purchasing officer shall maintain a list of qualified contractors, suppliers and vendors, identified according to categories of work or supplies. The purchasing officer shall also solicit sealed bids from at least three responsible prospective suppliers and bidders whose names are on the bidders' list or who have requested their names to be added thereto.

c.

Bulletin board. The purchasing officer shall also advertise pending purchases by a notice posted on a public bulletin board in the city hall.

(3)

Bidder's security. When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notice inviting bids. If bid security is prescribed, the same type and rate of security shall be required of each bidder, and no contract may be awarded to any bidder failing to post the required bid security except upon approval of the city council. Each bidder shall be entitled to the return of his bid security within 30 days after the opening of bids for which security was posted or upon execution of a contract with the city by the successful bidder, whichever occurs first; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, upon the refusal or failure of the successful bidder to execute the contract, award it to the next bidder selected by the city on the basis of the criteria set forth in the bid documents. Alternatively, the city may decide to reject all bids and rebid the contract. If the city council awards the contract to another bidder, the amount of the originally selected bidder's security shall be applied by the city to the difference between the originally selected bid and the next best bid, and the surplus, if any, shall be returned to the originally selected bidder.

(4)

Bid submission procedure. Sealed bids shall be submitted electronically through the city's bid system, to the purchasing officer, or the city clerk, as specified in the bid documents.

(5)

City authority. The city may reject any or all bids received, and may readvertise at its discretion. The city may any minor irregularities in each bid received.

(6)

Performance bonds. The city council shall have the authority to require a performance bond before entering into a contract in such amount as it shall find 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.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Professional service contracts shall be awarded in the best interests of the city on the basis of demonstrated competence and qualifications necessary for the satisfactory performance of the professional services required to be performance at fair and reasonable price, pursuant to the following requirements:

(1)

Awarding of bid. Professional service contracts shall be awarded in accordance with the procedures established in the purchasing manual. Selection of the winning bid shall be based on criteria and requirements specified in any bid documents and in the purchasing manual.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Sale of personal property valued in an amount equal to or greater than that amount specified in the purchasing manual as requiring use of the formal contract procedure shall be made pursuant to the Fontana formal bidding procedure set forth in section 10-148 and the purchasing manual, provided that contracts for sale of personal property in such amount shall be awarded to the highest responsible, responsive bidder.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Nonpublic project purchases of supplies, materials, equipment and services and sales of property in an amount less than that amount set forth in the purchasing manual as requiring use of the formal contract procedure may be awarded by the purchasing officer in the open market without observing the Fontana formal bidding procedure prescribed in this article. Such purchase orders shall comply with all provisions of the purchasing manual and the following:

(1)

Minimum number of bids. Open market purchases shall, whenever possible, be based on at least three bids, and shall be awarded in the best interests of the city.

(2)

Notice inviting bids. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, email, or by posting on the city's bid system.

(3)

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

(4)

In selecting the winning bid for commodities, the purchasing officer, or his or her designee, may apply a one percent discount, or an amount as may be established from time to time by resolution of the city council, to the total bid amount submitted by a local bidder.

(5)

For purposes of this section, "local bidder" shall mean a local business enterprise whose business address at the point of sale is located within the geographical boundaries of the city and who maintains a valid license or permit to do business in the city.

(6)

Limited purchase order. A limited purchase order procedure shall be established, implemented and used by the purchasing officer for the purchase of goods and/or services within the amount identified in the purchasing manual as a small purchase. The limited purchase order procedures shall be established in the purchasing manual.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Nonpublic project purchases or services and sale of personal property may be made without complying with any of the bidding procedures specified in this article in any of the situations described below. Under such conditions, any alternative procedure including no bidding; may be used.

(1)

Emergencies. In situations determined by the authorized contracting party to constitute an emergency, as defined in section 10-136.

(2)

Micro-purchases. When the amount of the purchase or sale involved is equal to or less than that amount identified in the purchasing manual as a "micro- purchase."

(3)

No competitive market/single source/sole source. When the purchasing officer determines that a competitive market does not exist, such as, but not limited to, when the needed supplies, services and equipment are proprietary and can only be provided by one vendor.

(4)

Competitive bidding already completed. When the purchasing officer determines that a competitive bid procedure has been conducted by another public agency (e.g. through CMAS or GSA) and the price to the city is equal to or better than the price to that public agency;

(5)

State purchase. When the purchase is made on behalf of the city by the state department of general services.

(6)

No bids received. When no bids are received pursuant to any of the bidding procedures required or permitted by this article.

(7)

Bidding impractical. When the city council determines by that bidding would be impractical, inefficient, or otherwise not in the best interest of the city, provided that the city council shall state the basis for its determination in the resolution.

(8)

Budgeted noncommodity items. Budgeted noncommodity items such as debt service payments, deposits, dues, insurance premiums, legal advertising, memberships, publications, self-insurance claim payments, seminar registration, subscriptions and travel expenses.

(9)

Real property. Real property purchases and leases, utility services and related charges, work or services performed by another public agency.

(10)

Unique services. When the services are from attorneys, entertainers, music artists, class instructors, counseling, and motivational speakers.

(11)

Otherwise authorized by this article. When otherwise authorized by this article.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Contracts shall be awarded and executed by the body or official specified in the purchasing manual, or pursuant to any other delegation of authority adopted by the city council.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

The purchasing officer shall inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have 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.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

(a)

All using agencies shall submit to the purchasing officer, at such time and in such form as he or she shall prescribe, reports showing all supplies, vehicles and equipment which are no longer used, or which have become obsolete or worn out.

(b)

The purchasing officer shall have authority to dispose of all surplus supplies, vehicles and equipment which cannot be used by any city agency or which have become unsuitable for city use by one or more of the following methods:

(1)

Any applicable provision of this article and the purchasing manual.

(2)

Trade-in, only when the purchasing officer determines that the trade-in value is expected to exceed the value estimated to be obtained through the sale or other disposition of such supplies, vehicles or equipment.

(3)

Public auction.

(4)

Scrap.

(5)

Other procedures permitted by law, as directed by the city council.

(c)

City employees and their spouses are prohibited from bidding on city-owned surplus supplies, vehicles and equipment.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Cross reference— Purchase of city property by city officers and employees, § 20-43.

In the case of any conflict between the terms of this article and the purchasing manual, the terms of this article shall govern.

(Ord. No. 1576, § 1, 3-25-08; Ord. No. 1911, § 2(Exh. A), 12-13-22)

Secs. 10-157—10-175. - Reserved.