Chapter 3.16 — Purchasing System

• 3.16.010 Adopted--Purpose.

• 3.16.020 Centralized purchasing department.

• 3.16.030 Purchasing officer.

• 3.16.040 Exemptions from centralized purchasing.

• 3.16.050 Estimates of requirements.

• 3.16.050 Council review of fixed asset purchases.

• 3.16.055 Council review of fixed asset purchases

• 3.16.060 Requisitions.

• 3.16.070 Bid procedures.

• 3.16.080 Purchasing orders.

• 3.16.090 Encumbrance of funds.

• 3.16.100 Informal bid procedures.

• 3.16.110 Contractors list.

• 3.16.120 Notice inviting informal bids.

• 3.16.130 Splitting project to avoid competitive bidding.

• 3.16.140 Selection of contractors to perform public projects.

• 3.16.150 Award of contracts.

• 3.16.160 Formal contract procedure.

• 3.16.170 Open market procedure.

• 3.16.180 Inspection and testing.

• 3.16.190 Surplus supplies and equipment.

A purchasing system is adopted to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies and equipment at the lowest possible cost commensurate with quality needed, and to exercise positive financial control over purchases.

(Ord. 556 (part), 1989).

There is created a centralized purchasing department in which is vested authority for the purchase of supplies and equipment.

(Ord. 556 (part), 1989).

There is created the position of purchasing officer. He shall be appointed by the city council. The purchasing officer shall be the head and have general supervision of the purchasing department. The duties of purchasing officer may be combined with those of any other office or position. The purchasing officer shall have the authority to:

A. Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing department and such other rules and regulations as shall be prescribed by the city council;

• B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment;

• C. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

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

• E. Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the city;

• F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;

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

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

• I. Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications;

• J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed;

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

• (Ord. 556 (part), 1989).

The purchasing officer may authorize any department to purchase specified supplies and equipment independently of the purchasing department; but he or she shall require that such purchases shall be made in conformity with the procedures established by this chapter.

(Ord. 556 (part), 1989).

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

(Ord. 556 (part), 1989).

Prior to the purchase of any depreciable fixed asset exceeding $1,000 in estimated costs ($2,500 for enterprise fund purchases), the department director shall notify the purchasing officer of his or her intent to purchase a given asset. The following review standards are established for all purchases of depreciable fixed assets exceeding $1,000 in estimated costs($2,500 for enterprise funds):

(A) Purchase requests over $1,000 in estimated cost that are not included in the current approved budget shall be promptly agendized by the purchasing officer for review by the city council. If said requested purchase is approved by the city council, purchase may proceed as specified in Chapter 3.16.

(B) Purchase requests included in the current approved budget shall have the following review standards:

1. Purchase requests over $1,000 ($2,500 for enterprise funds) shall be approved by the department director and Finance Director.

2. Purchase requests over $5,000 ($7,500 for enterprise funds) shall be approved by the department director, the Finance Director and the City Administrator. The bid procedure specified in Chapter 3.16.070 shall apply.

3. Purchase requests over $10,000 ($15,00 for enterprise funds) shall be approved by the department director, the Finance Director and the City Administrator. In addition, the purchase request shall also be promptly agendized by the purchasing officer for review by the city council. If said requested purchase is approved by the city council, purchase may proceed as specified in Chapter 3.16.

• (Ord. 703-2000; Ord. 556 (part), 1989).

Departments shall submit requests for supplies and equipment to the purchasing officer on standard requisition forms, or by other means as may be established by the purchasing rules and regulations.

(Ord. 556 (part), 1989).

Purchases of supplies and equipment shall be by bid procedures pursuant to sections 3.16.160 and 3.16.170. Bidding may be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply, or when the amount involved is less than fifteen thousand dollars, or when the commodity can be obtained from only one vendor, or when the item to be purchased is purchased surplus from another public agency, or for used equipment not readily available on the general used equipment market.

(Ord. 556 (part), 1989).

Purchases of supplies and equipment shall- be made only by purchase orders. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the purchasing officer or his designated representative has been obtained.

(Ord. 556 (part), 1989).

Except in cases of emergency or in cases where specific authority has been first obtained from the city council, the purchasing officer shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the budgetary category against which the purchase is to be charged.

(Ord. 556 (part), 1989).

Public projects, as defined by Public Contract Code Section 22002(c), may be let to contract by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code.

(Ord. 559, 1989; Ord. 556 (part), 1989).

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

(Ord. 556 (part), 1989).

A. Where a public project is to be performed which is subject to the provisions of this ordinance, a notice inviting informal bids shall be

mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with § 3.16.110, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Public Contract Code.

B. Additional contractors and/or construction trade journals may be noticed at the discretion of the department soliciting bids; provided, however:

1. 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.

2. 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.

• (Ord. 556 (part), 1989).

It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding.

(Ord. 556 (part), 1989).

A. The city shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the contractors list shall be determined by the California Uniform Construction Cost Accounting Commission.

B. All contractors on the list for the category of work being bid and/or all construction trade journals specified in Section 22036 shall be mailed a notice inviting informal bids unless the product or service is proprietary.

C. All mailing of notices to contractors and construction trade journals pursuant to subdivision (B) shall be completed not less than ten calendar days before bids are due.

D. The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.

(Ord. 556 (part), 1989).

The City Administrator shall be authorized to award informal contracts pursuant to this chapter.

(Ord. 556 (part), 1989).

Except as otherwise provided in this chapter, purchases of supplies and equipment of an estimated value greater than fifteen thousand dollars, and public works projects whose estimated cost exceed the limits established by this chapter, shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed as follows:

A. Notice Inviting Bids. Notices 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. The notice shall be forwarded to the members of the city council at least three days prior to publication (specified in subdivision 1 of this subsection) or mailing. The members of the city council shall be allowed three days in which to submit their comments concerning the bid specifications; if no comment is received, bidding procedures will commence as dictated in this chapter.

1. Published Notice. Notices inviting bids shall be published at least ten days before the date of opening of the bids. Notices 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 that have been designated by ordinance as the places for posting public notices.

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

B. Bidder’s Security. When deemed necessary by the purchasing officer, bidder’s 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 in accordance with the contract documents after the notice of award of contract has been mailed, unless in the latter event the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder 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, and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening procedure. Sealed bids shall be submitted to the city clerk and shall be identified on the envelope as a "sealed bid," with the item and date of opening set forth thereon. Bids shall be opened publicly at the time stated in the time stated in the public notice. A tabulation of all bids received will be available for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

D. Rejection of Bids. In its discretion, the city council may reject any and all bids presented and re-advertise for the bids pursuant to the procedure hereinabove prescribed.

E. Award of Contracts. Except as otherwise provided in this chapter, contracts shall be awarded by the city council to the lowest responsible bidder. The city may award the contract to other bidders than the lowest responsible bidder if the city deems such award to be in the best interest of the city, giving due consideration to such items, but not limited to such items as time of delivery, convenience of service and maintenance.

(Ord. 586, 1991).

F. 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 readvertising for bids, the city council may, in its discretion, accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening.

G. Performance Bonds. The city council shall have the authority to require a performance bond in which 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 will be described in the bid documents.

(Ord. 556 (part), 1989).

Purchases of supplies and equipment of an estimated value of fifteen thousand dollars or less may be made by the purchasing officer in the open market pursuant to the procedure prescribed in this section in lieu of the procedure prescribed in § 3.16.160:

A. Minimum Number of Bids: Open market purchases shall, in the discretion of the purchasing officer, be based on at least three bids. However, the obtaining of three informal bids shall only apply on purchases in excess of seven hundred fifty dollars, and even then the failure of three parties to bid shall not render the purchase voidable.

B. Notice Inviting Bids. The purchasing officer, or his authorized agent, shall solicit bids from prospective vendors by written request, by telephone or by public notice posted on the public bulletin board in city hall.

C. Written Bids. If requested by the purchasing agent, 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.

(Ord. 556 (part), 1989).

The purchasing officer or his authorized representative shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing officer shall have authority to require chemical and physical tests of samples submitted with bids, or random samples of deliveries, which are necessary to determine their quality and conformance with specifications.

(Ord. 556 (part), 1989).

All departments shall submit to the purchasing officer, at such times and in such forms as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to exchange for or trade in on new supplies and equipment all supplies and equipment which cannot be used by any department or which have become unsuitable for city use.

(Ord. 556 (part), 1989).