Chapter 3 — PURCHASING PROCEDURES

This Chapter establishes regulations for the purchasing of materials, supplies and equipment for the City. This Chapter may be referred to as the City's Purchasing Regulations.

(Ord. 177, 8-19-85; 1994 Code)

The City Manager may purchase materials, supplies, equipment and/or labor or professional or specialized services amounting up to $1,000.00 without solicitation of formal or informal bids.

(Ord. 177, 8-19-85; 1994 Code; Ord. No. 304, § 1, 6-11-01; Ord. No. 385, § 1, 6-12-23)

TEN THOUSAND DOLLARS.

The City Manager may purchase materials, supplies, equipment and/or labor amounting to more than $1,000.00 but not more than $10,000.00 on the open market after the solicitation of informal bids from prospective vendors regarding such supplies, equipment and/or labor. Such solicitation shall be made in writing, by telephone, or otherwise and shall be made to sufficient numbers of prospective vendors as may be deemed by the City Manager to be consistent with the policy of the City Council regarding the purchase of materials, supplies, equipment and/or labor.

As used herein, an "informal bid" consists of a purchase order or other written offer to supply materials, supplies, equipment and/or labor to the City upon stated terms and conditions. The City Manager shall award the purchase or contract for materials, supplies, equipment and/or labor to either the lowest responsible bidder or the bidder providing the best value to the City based on quality, price, bidder track record, qualifications, experience, and past performance as determined by the City Manager.

(Ord. 177, 8-19-85; 1994 Code; Ord. No. 304, § 2, 6-11-01; Ord. No. 385, § 2, 6-12-23; Ord. No. 401, § 1, 8-22-25)

The City Manager may purchase materials, supplies, equipment and/or labor amounting to $10,000.00 or more with City Council approval, pursuant to the following procedure:

A.

Minimum Number of Bids: Purchasing shall be based on at least three written bids. If three written bids are not submitted, the City Clerk shall attest to such facts when presenting the bids to the City Council for action.

B.

Notice Inviting Bids: The City Manager may solicit bids by written request to prospective vendors, by telephone, or by notice in at least three public places in the city that have been designated as the places for posting public notices.

C.

Award of Contract: Purchases or contracts for materials, supplies, equipment and/or labor shall be awarded to either the lowest responsible bidder or the bidder providing the best value to the City based on quality, price, bidder track record, qualifications, experience, and past performance, as determined by the City Council.

D.

Waiver of Defect: The City Council has the right to waive any defect or informality in connection with a bid submitted, may reject any and all bids, and may re-advertise for bids.

(Ord. 177, 8-19-85; 1994 Code; Ord. No. 304, § 3, 6-11-01; Ord. No. 385, § 3, 6-12-23; Ord. No. 401, § 2, 8-22-25)

A.

The City Manager, the Mayor or Mayor Pro Tempore may purchase materials, supplies and equipment amounting to $5,000.00 or less without prior Council approval and without soliciting formal or informal bids if an emergency mandates the purchase.

B.

In the absence of the City Manager, the City Clerk and the Mayor may so act; in the absence of the City Clerk and the Mayor, the Mayor Pro Tempore may so act; in the absence of the City Clerk, Mayor and Mayor Pro Tempore, any Councilmember may so act.

C.

As used herein, an "emergency" consists of a condition which imminently threatens the health, safety or welfare of person or property. The City Manager shall report on all emergency purchases at the next City Council meeting following the purchase.

(Ord. 177, 8-19-85; 1994 Code; Ord. No. 304, §§ 4—6, 6-11-01)

A.

A permanent record of all formal and informal bids shall maintained and be open to public inspection. In the case of oral bids, a contemporaneous record of the bid shall be made by the person receiving the bid. In the case of written bids, all written bid documents shall be retained.

B.

All purchases must be evidenced by original invoices or receipts before payment or reimbursement is made therefore. The original invoices or receipts shall be retained as part of the City's official records and be open to public inspection.

(1994 Code; Ord. No. 304, § 5, 6-11-01)

The purchase of materials, supplies, equipment and/or labor may be made without observing the bid procedures under the following circumstances:

A.

When the City Manager finds that it is to the City's advantage to engage in cooperative purchasing agreements executed by other governmental jurisdictions or public agencies;

B.

After a reasonable attempt has been made to obtain bids, and it has been determined by the City Manager that no additional vendors can be located or that the competition is determined inadequate;

C.

When the City Council finds that negotiation of the purchases will best serve the interests of the City due to the nature of the materials, supplies, equipment and/or labor to be purchased or the market conditions for such materials, supplies, equipment and/or labor;

D.

The materials, supplies or equipment are proprietary or unique because of their quality, durability, availability or fitness for a particular use;

E.

The materials, supplies, equipment and/or labor are available from only one source;

F.

The materials, supplies or equipment are provided by an independent contractor pursuant to an agreement with the City for the furnishing of labor and materials for other than the construction of a public works project;

G.

The City Manager has determined that exigent circumstances require the immediate purchase of such material, supplies, equipment and/or labor; and

H.

The City Manager or City Council has determined that conformance with the bid procedures would be contrary to the best interests of the City or upon determining that compliance with the procedures would be

impractical. Such determination may be made upon the award of a purchase or contract or at any time prior to such award.

(1994 Code; Ord. No. 304, §§ 5, 7, 6-11-01; Ord. No. 368, § 1, 3-12-18; Ord. No. 385, § 4, 6-12-23)

A.

Informal or formal bidding as set forth in this Chapter shall not apply when services being procured are professional or specialized services. Professional or specialized services awarded by the City Manager or City Council (depending on their respective purchasing authority set forth in Section 2-3-3 or 2-3-4) shall be made on the basis of demonstrated competence, experience, professional qualifications and suitability for the satisfactory performance of the services required. The City Manager shall attempt to obtain information relating to prices and availability of such professional or specialized services from different sources prior to making the purchase; however, neither informal nor formal bidding shall be required prior to the purchase of professional or specialized services.

B.

Professional and specialized services are defined as those services provided by persons, firms, companies, or corporations for architecture, landscape design or architecture, engineering, environmental analysis, land surveying, legal services, accounting, construction management, auditing, computer programming, financial or economic analysis, grant writing, insurance brokers, property analysts, specialized trainers, or other individuals or entities possessing a high degree of specialized skill or expertise that, in the determination of the City Manager, do not readily fall within a cost-based competitive bid process.

(1994 Code; Ord. No. 304, § 5, 6-11-01; Ord. No. 385, § 5, 6-12-23)

The following procedures shall govern the award of contracts for public projects:

A.

Public Projects of $60,000.00 or Less: Public projects of $60,000.00 or less may be performed by City employees, may be awarded by negotiated contract, or may be awarded by purchase order.

Solicitation of Proposals: If the estimated cost of the public project exceeds $5,000.00 and will not be performed by City employees, the City Manager shall solicit written proposals from prospective contractors to perform such public project. Such solicitation shall be made in writing, by telephone, or otherwise and shall be made to sufficient numbers of prospective contractors as may be deemed by the City Manager to be consistent with the policy of the City Council regarding the award of contracts for public projects.

Award and Execution of Contract: The City Manager may award and execute any public project contract of $5,000.00 or less. The City Council shall award any contract for more than $5,000.00. The Mayor shall execute the contract unless otherwise provided by the City Council.

B.

Public Projects of More than $60,000.00 but Less than $200,000.00: Public projects of more than $60,000.00, but less than $200,000.00 shall be let by contract pursuant to the following informal bidding procedures:

The City shall maintain a list of qualified contractors identified according to categories of work. The list shall meet the minimum criteria established by the California Uniform Construction Cost Accounting Commission. Such list shall be updated from time to time by the City Manager or the City Manager's designee.

All contractors on the list for the category of work being bid or all construction trade journals specified in California Public Contract Code Section 22036, or both, shall be mailed a notice inviting informal bids, unless the product or service is proprietary. The City may elect to email or fax the notice inviting informal bids to all construction trade journals specified in California Public Contract Code Section 22036.

The notice shall be mailed not less than ten days before bids are due and 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.

Bids shall be in writing and sealed and shall be opened at the time and place designated in the notice. If a contract is awarded, the contract shall be awarded by the City Council to the lowest responsible bidder. The Mayor shall execute the contract unless otherwise provided by the City Council.

If all bids received are in excess of $200,000.00, the City Council may award the contract at $212,500.00 or less, to the lowest responsible bidder, if the City Council determines that the cost estimate of the City was reasonable and a resolution awarding the contract is adopted by a four-fifths vote.

C.

Contracts of $200,000.00 or More: Contracts of $200,000.00 or more shall be let by the formal bidding procedures specified in the Uniform Construction Cost Accounting Act contained in the California Public Contract Code. In addition to any other applicable requirements of the Public Contract Code, the following rules apply to notices for bids for public projects pursuant to the formal bidding process.

Contents of notice. Notices inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

Publication of notice. 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 city, or if there is no newspaper of general circulation, publication shall be by posting the notice in at least three places within the jurisdiction of the City as have been designated by ordinance or resolution as places for the positing of its notices.

Electronic transmission of notice. 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 accordance with Public Contract Code § 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. The city may provide additional notice as it deems proper.

D.

Rejection of Bids, Failure to Receive Bids:

Rejecting formal bids. In its discretion, the City Council may reject any bids presented, if the City, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the agency, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the City's intention to reject the bid and shall be mailed at least two business days prior to the City Council meeting at which the City intends to reject the bid. If after the first invitation of bids all bids are rejected, after re- evaluating its cost estimates of the project, the city shall have the option of either of the following: (a) abandoning the project or re-advertising for bids in the manner described by this Section; or (2) after passing a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by city employees, have the public project done by force account without further complying with the procedures of this Section.

Lowest bidder. If a contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses.

No bids. If no bids are received through the formal or informal procedure, the project may be performed by the employees of the City, by force account or negotiated contract without further complying with the procedures of this Section. This Section may waive any irregularity in any bid and may readvertise for bids. If no bids are received through the formal or informal procedure, the project may be performed by City employees or may be performed by negotiated contract without further compliance with the procedures of this Section.

E.

Emergencies: The City Council may act contrary to this Section under any emergency authority granted by the Uniform Construction Cost Accounting Act contained in the California Public Contract Code. Furthermore, in the case of an emergency, as that term is used in the Act, the City Manager is delegated the authority to take such actions authorized by the Act without compliance with the procedures of this Section.

(Ord. No. 304, § 8, 6-11-01; Ord. No. 368, § 2, 3-12-18; Ord. No. 385, §§ 6, 7, 8, 9, 6-12-23)

Where purchases are to be made in concert with or through agreements executed by other governmental agencies, formal bid requirements as specified in the California Public Contract Code's Uniform Construction Cost Accounting Act may be waived with City Council approval. Such determination may be made upon the award of the contract or at any time prior to such award.

(Ord. No. 368, § 3, 3-12-18; Ord. No. 385, § 10, 6-12-23 )

A.

Officers and employees of the City shall not be financially interested in any purchase or contract made by them in their official capacity, as such terms are defined in California Government Code Sections 1090 et seq. and 87100 et seq., and relevant case law.

B.

No officer or employee of the City shall directly or indirectly accept any rebate, kickback, gift, money or other consideration from any person, company, firm or corporation in consideration for selling materials, supplies or equipment to the City or providing professional services or being awarded a contract for a public project under this Chapter.

(Ord. No. 385, § 11, 6-12-23)

If any section, sentence, clause or phrase of this Chapter conflicts with any Federal requirements mandated for any grant funded or federally funded purchase (whether for goods or services), the applicable Federal requirements shall apply to that purchase.

(Ord. No. 385, § 12, 6-12-23)