Hesperia Municipal Code Ch. 3.08 Purchasing System

A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies, equipment, and services; to secure for the city supplies, equipment, and services at competitive costs commensurate with quality needed and with due consideration to disposability; to exercise financial control over purchases; to clearly define authority for the purchasing function; to assure the quality of purchases and to buy without favor or prejudice.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

"Authorization limits," "open market limit," or "informal bid limit" means such limits established by city council.

"Department approval" means the approval of purchases by the department director, as outlined by resolution of the city council. The department director may delegate approval of purchases to division managers and supervisors, so long as the approvals adhere to the amounts set forth by resolution of the city council.

"General services" means all services that are not deemed a professional service.

"Lowest responsible, responsive bidder" means the person, firm, partnership, or corporation submitting the lowest price for the supplies, materials, equipment, or services that meet or exceed the specifications, delivery terms and conditions, and other requirements included in the invitation to bid and has demonstrated skill, quality, capacity, and experience necessary to perform the contract satisfactorily.

"Paper products" include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR section 18982(a)(51).

"Printing and writing paper" includes, but is not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR section 18982(a)(54).

"Professional services" means the services of attorneys, physicians, architects, engineers, consultants, auditors, specialized printers, or other individuals or organizations possessing a high degree of professional, unique, specialized, or technical skill/expertise, not adaptable to competitive bidding, or where the service involves a contract for special activities, negotiations for the acquisition of land, insurance, bonds, or other service of a similar nature to the above, engaged for a particular project or series of projects.

"Purchases" means the city's acquisitions of supplies, equipment, property and services.

"Purchasing supervisor" means the city manager or his/her designee to provide the administration and/or enforcement of this chapter.

"Supplies" and "equipment" means all articles, goods, or property furnished to, or used by, any city department.

(Ord. No. 2014-09, § 1, 5-6-14; Ord. No. 2021-012, § 4, 12-21-21)

It is the intent of this chapter to create a centralized purchasing system. The city manager will manage the purchasing functions and shall be responsible for the function of procurement of equipment, materials, supplies, and services for the city.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

A. Open Market Purchases. The functional section may procure goods, general services, and supplies and equipment for the city without resorting to either the formal bid or informal bid procedures with regard to purchases in amounts established as the open market limit by resolution of the city council. The purchasing supervisor shall maintain lists of providers capable of supplying such goods, services, and supplies and equipment. All technology-related equipment or software purchases shall follow the process established by the city manager to ensure compatibility with established city technology.

B. Exemption. The following items are exempt from centralized purchasing and will require the approval pursuant to the authorization limits set forth by resolution of the city council. For amounts exceeding the authorization limits, the purchase of non-commodity items approved by the city council in the current budget shall not require further city council approval:

1. Training and education, which includes conferences, conventions, courses, seminars, memberships, staff workshops, certifications, and subscriptions/publications.

2. Refundable employee expenses, which includes advances, meal allowances, miscellaneous reimbursements, and travel expenses.

3. General expenses, which includes, but not limited to, payroll deductions, licenses, advertising, insurance premiums, damage claims, petty cash replenishment, tax remittances, refunds, postage, freight charges, debt service related payments, fuel, and charges to or from other government agencies.

4. Utilities, which includes the payment of water, sewer, electricity, natural gas, and telecommunication expense.

(Ord. 2001-4 § 1 (part), 2001)

(Ord. No. 2014-09, § 1, 5-6-14)

The city manager may delegate the duties of that position to subordinate employees, herein called the "purchasing supervisor." The purchasing supervisor shall direct and supervise the city's purchasing program. The purchasing supervisor shall establish methods and procedures for the efficient and economical functioning of the purchasing program.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

The purchasing supervisor shall have the authority to:

A. Purchase or contract for supplies, materials, equipment, property, and services required by the requesting department in accordance with the purchasing procedures prescribed by this chapter;

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

C. Prepare and recommend citywide purchasing policies and procedures consistent with the municipal code setting forth procedures for the purchase of supplies, services, property, and equipment for the city;

D. 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 department or which become unsuitable for city use;

E. Maintain a vendor's list, vendor's catalog file and records needed for the efficient operation of purchasing.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

The city manager is authorized to sign written contracts made or entered into by the city, provided such written contracts and conveyances do not exceed the established authorization limits.

(Ord. 2001-4 § 1 (part), 2001)

(Ord. No. 2014-09, § 1, 5-6-14)

All departments shall submit requests to the purchasing supervisor by standard requisition form or by other means as may be established by purchasing procedures for the supplies, materials, equipment, property, and services as required for their operations and purposes and within the limits of funds appropriated therefore.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

Except in cases of emergency as defined in Section 3.08.070(A)(1), the purchasing supervisor shall not issue any purchase order/requisition, authorize the execution of any contract or enter any contract for purchasing of supplies, services, property, or goods unless there exists an unencumbered appropriation in the fund against which such purchase is to be charged.

(Ord. 2001-4 § 1 (part), 2001)

(Ord. No. 2014-09, § 1, 5-6-14)

A. Purchasing of general services, supplies, and equipment shall be by bid process pursuant to Sections 3.08.080 and 3.08.090. However, bidding may be dispensed with upon adequate, specific documentation when one of the following conditions pertains:

1. Emergency Purchase. When, in the sole view of the city manager, an emergency exists and the procurement of any and all goods/services is necessary to properly mitigate the emergency, may direct that emergency procurement to be made. For purposes of an emergency purchase, an emergency is defined as an emergency operations center (EOC) activation period initiated by the city manager. All purchases made under such emergency authority shall be subject to ratification by the city council at a subsequent public meeting;

2. Sole Source. So long as the authorization limits set forth by city council are adhered to, the bidding procedures of this chapter may be waived for the following:

a. The commodity or service can be obtained from only one responsible and responsive source;

b. The commodity is required to match or be compatible with other furnishings, material, or equipment presently on hand and is to be purchased from the supplier of such on-hand items;

c. The city manager or city council has ordered a standardized type of commodity or quality of product.

3. Piggyback Agreement. When the purchase of goods or services is beneficial to the interest of the city and is from a supplier who has been awarded a specific item or items in a contract resulting from a formal competitive bid process by another local governmental agency within the State of California within the previous three hundred sixty-five (365) days;

4. Cooperative Purchasing. When such purchases are based on any master agreement, cooperative agreement, multiple award schedule, or other types of agreements entered into by the State of California or the federal government. Examples include, but are not limited to, the California Multiple Award Schedules (CMAS), the Western State Contracting Alliance (WSCA), and the Federal General Services Administration (GSA) Contracts;

5. Governmental Purchase. When purchasing from or selling to another governmental agency and such action is beneficial to the interests of the city, the bidding procedures may be waived;

6. City Council Override. When the city council determines by resolution it would be in the best interest of the city to dispense with bidding; provided, however, that the city council shall state the basis of its determination;

7. Unforeseen Circumstances. When there is a breakdown in essential machinery, essential services, or when unforeseen circumstances arise including delays by contractors, delays in transportation, and unanticipated volume of work, which requires the immediate attention of a professional or immediate service/repair in order to protect public health, safety or welfare;

8. Technology Purchase. When there is to be a contract for the purchase of telecommunications, computer, and/or networking hardware and software, the purchase of "such items" (telecommunications, computer and/or networking hardware and software) will be done pursuant to regulations and procedures established by the city manager to ensure compatibility with current city infrastructure.

B. Additional Requirements and Prohibitions.

1. Any person, firm, partnership, or corporation that is awarded a contract must secure a city business license when required to possess the same pursuant to Title 5 of the Hesperia Municipal Code.

2. No employee, elected or appointed official of the city shall be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members (See: California Government Code Section 1090, et seq.) or violative of the conflict of interest provisions of the city and/or the Political Reform Act (See: California Government Code Section 87100, et seq.).

3. Splitting orders of supplies, materials, equipment or services into smaller or separate orders for the purpose of evading the competitive bidding provisions of this chapter are prohibited.

4. Contract amendments or changes to purchase orders that exceed either the maximum authorization limit set forth by the city council or the original authorization as granted by city council will require subsequent approval of the city council before the contract amendment and/or change order is executed.

5. Employees, volunteers, and elected and appointed officials of the city are advised to be knowledgeable of all laws, rules and regulations concerning conflict of interest; disclosure/reporting requirements; and the acceptance of anything of value from any individual or business including, but not limited to, vendors, business clients, and the public.

(Ord. 2001-4 § 1 (part), 2001; Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14; Ord. No. 2021-012, § 5, 12-21-21)

A. In the procurement of goods for the city, a preference shall be given to buy recycled goods whenever reasonably possible. Recycled goods are defined and provided for in such state legislation as the State Assistance for Recycling (STAR) Markets Act of 1989 (commencing with the California Public Contracts Code Section 12150), the California Integrated Waste Management Act of 1989 (commencing with the California Public Resources Code Section 40000), and Environmentally Preferable Purchasing (AB 498). A Sustainable Purchasing policy will be adopted by resolution of the city council.

B. When purchasing paper products and printing and writing paper, the city shall comply with 14 CCR Section 18993.3, as may be amended.

C. All vendors providing paper products and printing and writing paper to the city shall make the certifications required by 14 CCR Section 18993.3(c), as may be amended, and shall provide the city with all records and documents required by the city to comply with the reporting requirements in 14 CCR Section 18993.4, as may be amended.

D. The city shall procure recovered organic waste products in accordance with the requirements of 14 CCR Section 18993.1, as may be amended, and as further specified in the Sustainable Purchasing policy or a different policy adopted by the city council.

(Ord. No. 2021-012, § 6, 12-21-21

A. Except as otherwise provided in this chapter, purchases of supplies, equipment, or services that exceed the informal bid limit, as established by resolution, shall follow the formal bid procedures and will result in a written contract with the lowest responsible, responsive bidder, as the case may be, pursuant to the procedures prescribed in this section.

1. Published Notices. Notices inviting bids shall be published at least ten days before the date of the opening of the bids. Notices shall be published at least once in a newspaper of general circulation, or shall be posted in at least three places in the city pursuant to city council resolution.

2. Bidder's List. The purchasing supervisor shall also solicit bids from responsible prospective suppliers whose names are on the bidder's list or who have made a written request that their names be added to the bidder's list.

B. Bidder's Security. When deemed necessary by the purchasing supervisor, bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to return of bid security upon completion of the contract. However, if a successful bidder fails or refuses to execute the contract within ten days after the notice of award of the contract has been mailed, unless explicitly stated in the terms of the contract, the bidder shall forfeit the bid security. The city may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible, responsive bidder, with the bidder's security being applied to the amount of the contract price differential between the lowest bid and the second lowest bid, with the surplus, if any, returned to the lowest bidder. If the city rejects the remaining bids presented and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing supervisor and shall be clearly identified as requested in the request for bid document. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be available for public inspection during regular business hours after the bid opening.

D. Rejection of Bids. The city may reject any and all bids presented, readvertise for bids or award a contract after negotiation for the most reasonable cost under existing conditions. The right to reject any and/or all bids is expressly reserved to the city and said decision shall be final.

E. Determination of Lowest Responsible, Responsive Bidder. Upon opening and tabulation of all bids received to determine the low bidder, the purchasing supervisor shall thereafter determine the lowest responsible, responsive bidder by applying the following criteria:

1. For purposes of determining the lowest responsible, responsive bidder, there shall be deducted from the bid(s) submitted by a local bidder all sales taxes which will be apportioned to and received by the city;

2. The capacity, quality and skill of the bidder to provide the service or commodity required and to comply with all specified requirements in the bid document;

3. The bidder's record of performance of previous contracts or services; previous failure to perform to city requirements may disqualify the bidder;

4. Whenever the purchasing supervisor determines that a bidder is not responsible pursuant to this section and the specifications of the notice inviting bids, the purchasing supervisor shall notify the bidder of said determination, in writing.

F. Award of Contracts. Except as otherwise provided in this chapter, contracts shall be awarded to the lowest responsible, responsive bidder. Contracts which exceed the appropriated amount, or which are not budgeted, shall not be awarded except upon approval of the city council.

G. 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 may, at its discretion, award the bid to a vendor located within the city limits. Should a tie continue to exist, a request for additional bids, only from the tie low bidders will be requested, whereby, the lowest bid will be accepted.

H. Performance Security. A performance bond, certificate of deposit or cash may be required before entering into a contract, in such amount as is deemed reasonably necessary to protect the interests of the city. If performance security is required, the acceptable type and amount thereof shall be described in the notice inviting bids and, if a bond, the form of the bond shall be as approved by the City Attorney.

(Ord. 2001-4 § 1 (part), 2001; Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

When there is to be a contract for professional services, except for city attorney services, the city manager is authorized to solicit request for proposals/qualifications or to proceed in such other fashion for professional services, whenever the city manager determines in his/her sole discretion that the best interests of the city would be fully served by proceeding in such a manner. The award of professional services contracts shall be made by the purchasing supervisor, as approved by the city manager, when the same have been budgeted for and sufficient funds have been appropriated.

Each professional agreement shall: (1) be in writing, (2) include the nature and scope of services, total amount, and time for performance; (3) include appropriate insurance and indemnification provisions; and (4) be approved on a form approved by the city attorney, (5) garner approval for amounts in excess of the limits set forth by resolution of the city council; and (6) to be completely executed with signatures of the city manager and the contracting party.

A consultant that is contracted with the city, and is engaged in service on city property shall hold the city harmless, and maintain property damage, general liability, and workers' compensation insurance in the amounts approved by the city manager and the city's insurance provider, as well as sign all applicable contract forms approved by the city attorney.

(Ord. No. 2014-09, § 1, 5-6-14)

Purchases of supplies, equipment and services of a value within the informal bid limit, shall follow the informal bid process pursuant to the procedure prescribed in this section and without observing the procedure described in Section 3.08.080, unless otherwise identified.

A. Minimum Number of Bids. Informal bid purchases shall, whenever possible, be based on at least three bids and shall be awarded to the lowest responsible, responsive bidder.

B. Solicitation of Informal Bids. The purchasing supervisor or requesting department shall solicit informal bids by written requests to prospective vendors.

C. Informal Bids. Informal bids shall be submitted, in writing, to the purchasing supervisor, who shall keep a record of all such bids, in accordance with the city's records retention policy, open to public inspection after the submission of bids or the placing of an order.

D. The purchasing supervisor shall establish lists, by category or type, of persons, firms, partnerships or corporations capable of and willing to submit bids for goods, services, or supplies and shall invite submittals for placement on said lists. Any bid submitted during the recruitment period shall be considered, even if no notice was previously provided to the bidder.

E. Notwithstanding any other term or provision of this section, the provisions of Section 3.08.080(D) through (H) shall be applicable to informal bids.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

Any person, firm, company, vendor, contractor, or other individual/group that unsuccessfully bids on a city contract may file a protest in accordance with the provisions of this chapter.

A. Persons Entitled to File Bid Protests. Only a bidder on a contract or a bidder's authorized representative may file a bid protest on a contract. A subcontractor of a party filing a bid on a contract may not submit a bid protest.

B. Form of Bid Protest. Bid protests shall be in writing; shall provide the name, address, electronic mail address, telephone and fax numbers of the protesting bidder; and shall identify the contractor bid request number to which the bid protest pertains. The bid protest shall identify and explain the factual and legal grounds for the protest, and shall include any written materials that the protesting bidder wishes to have considered in determining the protest. Any grounds not raised in the written protest are deemed waived by the protesting bidder. Bid protests shall be addressed and delivered to the city clerk's office. Any bid protest that is not submitted as provided herein shall be invalid and shall not be considered.

C. Submission of Bid Protest to City. After bids are received and opened by the city, city staff shall provide each bidder with notice of the city staff's preliminary recommendation for award of the contract. Any bid protest shall be received by the city clerk no later than five calendar days after the city notifies the bidders of the recommendation for award. The effective date of notice by mail is the postmark date. The effective date of the notice electronically is the date of the transmission. If the fifth calendar day does not fall on a business day, the deadline to submit a protest shall be extended to 5:00 p.m. on the next business day.

D. Investigation by City. Upon receipt of the filed bid protest, the purchasing supervisor shall prepare a written response to the bid protest. The purchasing supervisor will review all the facts and make a determination.

E. Appeal to City Manager. In instances where the city manager has delegated the role of the purchasing supervisor to a subordinate staff member, an appeal of the purchasing supervisor's decision on the bid protest may be made by the protesting bidder to the city manager by filing a written notice of appeal with the city clerk within five calendar days after the date of notice of the purchasing supervisor's decision regarding the bid protest. If an appeal is timely filed and subsequently has not been withdrawn by the protesting bidder or by operation of the provision of this section, the city manager shall consider the bid protest and make a determination.

F. Appeal to City Council. An appeal of city manager's decision on the bid protest may be made by the protesting bidder to the city council by filing a written notice of appeal with the city clerk within five calendar days after the date of notice of the city manager's decision regarding the bid protest. If an appeal is timely filed and subsequently has not been withdrawn by the protesting bidder or by operation of the provisions of this section, the city council shall consider the bid protest at a noticed, public meeting. The city council may hear the bid protest as part of the city council's consideration of the award of the contract to which the bid protest relates or may hear the bid protest as a separate item, provided that the city council shall decide the bid protest prior to awarding the contract, unless the city council exercises its discretion to reject all bids.

G. City Council's Decision. The scope of the bid protest considered by the city council shall be limited to the issues set forth in the bid protest timely filed with the city clerk. The city council may take any action on the bid protest that is authorized by law, including adoption of city staff's recommended determination of the bid protest, adoption of a determination different from that recommended by city staff, or the rejection of all bids without deciding the bid protest. The decision of the city council on a bid protest shall be the final administrative action on the protest and shall exhaust the protesting bidder's administrative remedies.

(Ord. 2001-4 § 1 (part), 2001)

(Ord. No. 2014-09, § 1, 5-6-14)

The purchasing supervisor may procure goods, services and supplies for the city without resort to either the formal bid or informal bid procedures with regard to purchases in amounts established as within the open market procedure by resolution. The purchasing supervisor shall maintain lists of providers capable of supplying such goods, services and supplies and shall rotate the use thereof.

(Ord. 222 § 2 (part), 1995)

Public works projects, as defined by the California Public Contract Code shall be bid, advertised and awarded in accordance with California Public Contract Code.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

The purchasing supervisor, shall have authority to require chemical or physical tests of samples submitted with bids and samples or deliveries, which are necessary to determine their quality and conformance with the specifications. The department responsible for receiving the requested services, supplies, and equipment must inspect and ensure their conformance with the specifications set forth in the contract and bid documents. Such inspection and testing may include offsite travel as approved by the city manager.

(Ord. 222 § 2 (part), 1995)

Departments shall submit to the purchasing supervisor, on such forms as the purchasing supervisor shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out.

A. When, after a reasonable effort has been made to obtain competitive bids, no offers are received for any item of city-owned property so declared to be surplus, the purchasing supervisor is authorized to dispose of such item for the highest scrap value that can be obtained therefore and if a reasonable effort to do so produces no opportunity to sell the same for scrap, the purchasing supervisor may cause its destruction or any other disposition thereof.

B. The city may sell obsolete or surplus property to any other governmental agency at an established "fair market value" without other bids.

C. The city may, in its sole and absolute discretion, donate surplus personal property to any agency or entity, which is exempt from federal income tax, with the approval of the city council.

(Ord. 222 § 2 (part), 1995)

(Ord. No. 2014-09, § 1, 5-6-14)

It is unlawful for any person, firm, partnership or corporation to violate or to fail to comply with any federal or state law as well as any county and/or local ordinance. Violation or failure to comply with such laws and ordinances may result in immediate termination of any and all contracts as well as being precluded from doing business with the city for a period of five years.

(Ord. 250 (part), 1997; Ord. 222 § 4, 1995)

(Ord. No. 2014-09, § 1, 5-6-14)