Gustine Municipal Code Art. 2 Purchasing Procedure

Footnotes:

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Editor's note— Ord. No. 442, § 1(Exh. A), adopted August 5, 2008, amended article 2 in its entirety to read as herein set out. Formerly, article 2 pertained to similar subject matter, and derived from the Code of 1966, §§ 3-7.02—3-7.14.

State Law reference— Local purchasing policies required, Government Code § 54201 et seq.

In order 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, 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 hereby adopted.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

There is hereby created the position of purchasing officer. The purchasing officer shall be appointed by the council. The duties of purchasing officer may be combined with those of any other office or position.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

The purchasing officer shall have authority to:

(1) Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this subchapter, such administrative regulations as the purchasing officer shall adopt and such other rules and regulations as shall be prescribed by the Council.

(2) Negotiate and recommend execution of contracts for the purchase of supplies and equipment.

(3) Act to procure for the city the needed quality in supplies and equipment at least expense to the city.

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

(5) Prepare and recommend to the council rules governing the purchase of supplies and equipment for the city.

(6) Prepare and recommend to the council revisions and amendments to the purchasing rules.

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

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

(9) Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications.

(10) Recommend 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.

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

(12) The purchasing officer shall present to and for the city council approval of expenditures greater than $10,000.00.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

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

(b) Cooperative purchases with the state are hereby authorized.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

(a) Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms.

(b) Purchases of supplies and equipment shall be made only by purchase order. The purchasing officer shall have the authority to establish open accounts for the purchase of minor supplies and equipment.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

All individuals requiring petty cash reimbursement or advance petty cash disbursals shall be required to fill out the appropriate claim form. Receipts shall be required to substantiate all purchases. No petty cash shall be dispensed without the approval of the department head and the purchasing officer or designee. All receipts for advance petty cash must be returned within two days. Disbursements from petty cash shall not exceed $50.00.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. The normal purchasing procedures as provided for under this article may be dispensed with only for the purchase of supplies, equipment or services necessary to provide an essential city-supplied service affecting the public health, safety or welfare. Waiver of said procedure may only occur when the normal purchasing procedure would cause an undue delay in the procurement of the items to insure emergency services are provided.

(Ord. No. 442, § 1(Exh. A), 8-5-2008)

(a) Informal and formal bidding procedures. Public projects, as defined by Cal. Public Contract Code § 22002, and in accordance with the monetary limits described in Cal. Public Contract Code § 22032 (as amended from time to time by the California Uniform Construction Cost Accounting Commission), shall be let to contract by procedures described in Cal. Public Contract Code §§ 22030 et seq.

(b) Procedures not established by the Act. When the Act does not establish a procedure for bidding public projects, the procedures described in this section and/or Cal. Public Contract Code §§ 20160 et seq. shall govern.

(c) Contractors list. Lists of contractors shall be developed and maintained in accordance with the provisions of Cal. Public Contract Code § 22034 and criteria promulgated from time to time by the Commission.

(d) Award to low bidder; no bids.

(1) All contracts must be awarded to the lowest bidder.

(2) If two or more bids are the same and lowest, the city may perform public projects with city employees or through a negotiated contract without further compliance with this section.

(e) Notice inviting informal bids.

(1) Preparation of notice. When a public project anticipated to fall within the monetary limits on informal bids described in Cal. Public Contract Code § 22032 (as amended from time to time by the Commission) is to be performed, the city shall prepare a notice of the opportunity to bid, which describes the project in general terms, states the time and place for the submission of bids, and describes how to obtain more detailed information about the project.

(2) Mailing of notice.

a. The city shall mail the notice to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection (c).

b. It may also be mailed to all construction trade journals, as specified by the Commission in accordance with Cal. Public Contract Code § 22036.

c. Other contractors and/or construction trade journals may also be notified at the discretion of the department soliciting bids.

d. Mailing shall be completed at least ten days before bids are due.

(f) Award of informally bid contracts. The city manager, community development director, or finance director are authorized to award informal contracts as defined in Cal. Public Contract Code § 22032, except those described in subsection (m).

(g) Bids exceed informal bidding limit. If all informal bids received exceed the monetary limits on informal bids described in Cal. Public Contract Code § 22032 (as amended from time to time by the commission), and the city determines that the cost estimate was reasonable, the city may award the contract at up to the limit described in Cal. Public Contract Code § 22034(f), by resolution approved by a four-fifths vote of the city council.

(h) Bid documents for formal bids. The city council shall adopt plans, specifications and working details for all public projects anticipated to fall outside the monetary limits on informal bids described in Cal. Public Contract Code § 22032 (as amended from time to time by the commission).

(i) Notice inviting formal bids.

(1) Preparation of notice. When a public project anticipated to fall outside the monetary limits on informal bids described in Cal. Public Contract Code § 22032 (as amended from time to time by the commission) is to be performed, the city shall publish a notice inviting formal bids in a newspaper of general circulation as described in Cal. Public Contract Code § 22037.

(2) Mailing of notice.

a. The notice shall also be mailed to all construction trade journals, as specified by the commission in accordance with Cal. Public Contract Code § 22036.

b. Other contractors and/or construction trade journals may also be notified, at the discretion of the department soliciting bids.

c. Mailing shall be completed at least 30 days before bids are due.

(j) When contractors list has not been prepared; proprietary product or service. Notwithstanding subsections (e) and (i):

(1) If the city has not prepared a list of contractors for the particular category of work to be performed, the notice inviting bids shall be sent to each of the construction trade journals specified by the commission.

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

(k) Contracts for maintenance and other work. Contracts for maintenance, as defined by Cal. Public Contract Code § 22002, and for any other work that does not fall within that section's definition of public projects, may be bid pursuant to the informal bidding procedures described in subsection (e), and the formal bidding procedures in subsection (i).

(l) Rejection of bids; re-solicitation; use of city employees.

(1) If the city intends to reject all bids, it must mail the apparent low bidder a written notice of the city's intent to reject the bid, at least two business days prior to the hearing at which the bids will be considered.

(2) After rejecting all bids, the city may:

a. Abandon the project;

b. Readvertise the project; or

c. Perform the work with city employees, after a four-fifths majority of city council has passed a resolution, declaring that the project can be performed more economically by city employees.

(m) Emergency procedures. When an emergency necessitates repair or replacement, contracts shall be awarded pursuant to the procedures described in Cal. Public Contract Code §§ 22035 and 22050. Pursuant to Cal. Public Contract Code § 22050(b), the city manager is delegated authority, in the case of an emergency, to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts. The city manager shall report to the city council, at its next meeting, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.

(n) Uniform cost accounting procedures. Whenever the city uses its own employees to perform a public works or maintenance project valued at more than the monetary limit on informal bidding projects described in California Public Contract Code § 22032 (as amended from time to time by the commission), it must implement the uniform construction cost accounting policies and procedures described in California Public Contract Code §§ 22043 et seq. and the commission's policies and procedures manual.

(Ord. No. 442, § 1(Exh. A), 8-5-2008; Ord. No. 477, § 1, 1-16-2018)

Editor's note— Ord. No. 485, § 2, adopted July 17, 2018, repealed § 2-6-39, which pertained to formal contract procedure and derived from Ord. No. 442, adopted Aug. 5 2008.

Purchases of supplies, equipment and services not subject to section 2-6-42 may be made by the purchasing officer or city council as set forth in this section.

(1) Minimum number of bids. Purchases shall, wherever advisable, be based on at least three bids and shall be awarded to the lowest responsible bidder. If bids are not solicited, the purchasing officer shall document his or her rationale for not seeking bids.

(2) Notice inviting bids. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in the city hall, city website or other website.

(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) Award. Purchases of supplies, equipment and services shall be made to the lowest, responsible bidder unless the city determines that a different vendor provides greater value. In such case, the award shall include findings explaining the rationale for this determination. The purchase officer may award contracts of $25,000.00 or less. The city council shall approve all other awards.

(Ord. No. 485, § 3(Exh. A), 7-17-2018)

Editor's note— Ord. No. 485, § 3(Exh. A), adopted July 17, 2018, repealed the former § 2-6-40, and enacted a new § 2-6-40 as set out herein. The former § 2-6-40, pertained to open market procedure, derived from Ord. No. 442, adopted August 5, 2018.

The purchasing officer shall inspect supplies and equipment delivered 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. 442, § 1(Exh. A), 8-5-2008)

(a) Procurement of certain professional services. The services of certain professions that involve extended analysis, the exercise of discretion and independent judgment in their performance, and an advanced, specialized type of knowledge, expertise, or training customarily acquired either by a prolonged course of study or equivalent experience in the field, shall be procured in accordance with the selection procedures specified in this section.

(b) Selection procedure.

(1) Conditions for use. Services provided under emergency procurements are exempt from the requirements of this section.

(2) Statement of qualifications. Persons engaged in providing professional services as described in subsection (a), may submit statements of qualifications and expressions of interest in providing such professional services.

(3) Public announcement and form of request for proposals. The city manager, or designee, through a request for qualifications, shall give adequate notice of the need for such services.

(4) Discussions. The city manager, or designee, may conduct discussions with any consultant who has submitted an interest to determine such consultant's qualifications for further consideration. Consultants shall be accorded fair and equal treatment with respect to any opportunity for discussion.

(5) Award. Award shall be made to the consultant determined in writing to be best qualified based on the evaluation factors set forth in the request for proposals, and negotiation of compensation determined to be fair and reasonable.

(6) Alternative procedure. The city council may award professional services agreements without seeking proposals when determined to be necessary or advisable.

(Ord. No. 442, § 1(Exh. A), 8-5-2008; Ord. No. 485, § 4, 7-17-2018)

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

(Ord. No. 442, § 1(Exh. A), 8-5-2008)