Imperial Beach Municipal Code Ch. 3.04 Purchasing

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 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 adopted.

(Ord. 758 § 2, 1988)

There is hereby established a centralized Purchasing Department in which is vested authority for the purchase of supplies, services and equipment.

(Ord. 758 § 2, 1988)

No obligation for the payment of supplies, services and equipment shall be incurred by the City except as prescribed by this chapter. Any agreement for the purchase of supplies, services and equipment made contrary to the provisions of this chapter shall be void and any claim or demand against the City based thereon shall be invalid.

(Ord. 758 § 2, 1988)

There is established the position of Purchasing Officer. The Purchasing Officer shall be appointed by the City Manager. The duties of Purchasing Officer may be combined with those of any other officer or position.

(Ord. 758 § 2, 1988)

The Purchasing Officer shall have the following powers and duties:

A. To purchase or contract for supplies, services 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 internal management and operation of the purchasing function and such other rules and regulations as shall be prescribed by the City Council or the City Manager;

B. To negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;

C. To act to procure for the City the needed quality in supplies, services and equipment at least expense to the City;

D. To discourage uniform bidding and endeavor to obtain as full competition as possible on all purchases;

E. To prepare and recommend to the City Manager rules governing the purchase of supplies, services and equipment for the City;

F. To prepare and recommend to the City Manager revisions and amendments to the purchasing rules;

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

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

I. To supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

J. To 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;

K. To maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of the purchasing function; and

L. To prepare, in consultation with using departments, a standards list with specifications for supplies, services and equipment for the City.

(Ord. 758 § 2, 1988)

The City Manager, 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 chapter, and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization.

(Ord. 758 § 2, 1988)

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. 758 § 2, 1988)

Using agencies shall submit requests for supplies, services and equipment to the Purchasing Officer by standard requisition forms, or by other means as may be established by the purchasing rules and regulations.

(Ord. 758 § 2, 1988)

Contracts for "public projects," as defined in Section 20161 of the Public Contract Code, shall be administered in a manner provided by Division 2, Part 3, Chapter 1, Article 4 of the Public Contract Code. References in this chapter to supplies, services and equipment shall be deemed to exclude "public projects" as defined to the extent that the provisions of this chapter would conflict with the aforementioned provisions of the Public Contract Code.

(Ord. 758 § 2, 1988)

Purchases of supplies, services and equipment shall be made only by purchase order. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the Purchasing Officer or a designated representative has been obtained.

(Ord. 758 § 2, 1988)

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, services or equipment unless there exists an unencumbered appropriation in the fund account against which such purchases is to be charged.

(Ord. 758 § 2, 1988)

Purchases of supplies, services, equipment and the sale of personal property shall be by bid procedures pursuant to this chapter. Bidding may be dispensed with:

A. When the City Manager determines that an emergency requires that an order be placed with the nearest available source of supply;

B. When the amount of an item purchased is less than $1,000.00;

C. When the City Council finds that the commodity can be obtained from only one vendor;

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

E. When services are involved which will be performed entirely by City forces; or

F. When the provisions of Sections 3.04.140, 3.04.150, and 3.04.160 are applicable.

(Ord. 758 § 2, 1988)

Except as otherwise provided in this chapter, purchase of supplies, services and equipment of an estimated value greater than $45,000.00 shall be by written contract with the lowest responsible bidder who submits a responsive bid pursuant to the following procedure:

A. Notice Inviting Bids.

1. Notices inviting bids shall be published at least once, 10 days before the date of opening of the bids, in a newspaper of general circulation in the City, printed and published in the County. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

2. The Purchasing Officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have made a written request that their names be added thereto, or as known to the Purchasing Officer.

3. The Purchasing Officer shall also advertise pending purchases by a notice posted on a public bulletin board in the 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 or her bid security upon his or her refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the City is solely responsible for the delay in executing the contracts. 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. If the City Council rejects all bids presented, due to the failure of the successful bidder to execute the contract, 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 Officer and shall be so identified on the envelope. Bids shall be opened in public at the time and place stated in the public notices inviting the bids. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

D. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and readvertise for bids pursuant to the procedure prescribed in this section. In the event no bids are received or that all bids substantially exceed the City estimate of cost for the purchase, the City Council may reject all bids and direct the Purchasing Officer to proceed pursuant to Sections 3.04.140, 3.04.150, and 3.04.160. In addition and as an alternative to the actions taken by the City Council as described in this subsection, the City Manager shall have the authority to reject any and all bids presented and to direct the Purchasing Officer to readvertise for bids pursuant to the procedures described in this section whenever the City Manager determines that all bids substantially exceed the City estimate of cost for the purchase or exceed the amount budgeted for the purchase, that no bids are received, or that alternate bids have been submitted by one or more vendors making evaluations of the bid difficult. The City Council may reject bids in other circumstances, such as when funds are insufficient or when the Council decides in its discretion not to do the work. All bids shall be deemed rejected if no City Council action is taken on the bids within 90 days after the bids have been received and opened regardless of whether the matter has been formally submitted to the City Council for consideration.

E. 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.

F. Performance Bonds. The City shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the City. If the City requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

G. Award of Contracts.

1. The contract shall be awarded to the lowest responsible bidder and, in the case of a sale, to the highest responsible bidder.

2. In ascertaining lowest responsible bidder, or highest, under this chapter, the following standards shall be considered in addition to price:

a. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

b. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference;

c. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

d. The quality of performance of previous contracts or service;

e. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

f. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

g. The quality, availability and adaptability of the supplies or contractual services to the particular use required;

h. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

i. The number and scope of conditions attached to the bid.

3. It shall be the duty of the Purchasing Officer to discourage uniform bidding and to endeavor to obtain as full and open competition as possible on all purchases and sales.

(Ord. 758 § 2, 1988; Ord. 2017-1169 § 2)

A. Notwithstanding Section 3.04.130, the Purchasing Officer may purchase supplies, services and equipment in the open market pursuant to the procedures established in this section. The open market procedure may be utilized when the estimated value for the supplies, services and equipment to be purchased is less than $45,000.00, when no bids are received pursuant to the bid procedures established by this chapter or when all bids received substantially exceed the City's estimated cost for the purchase. Further, the City Council may designate types of classes of supplies, services and equipment costing more than $45,000.00 which may be purchased through use of open market procedure whenever the City Council finds that use of open market procedures is economically advantageous to the City.

B. The open market procedures shall be as follows:

1. The Purchasing Officer shall solicit bids by written or oral request to prospective vendors.

2. Sealed written bids shall be submitted to the Purchasing Officer.

3. The Purchasing Officer shall keep a public record of all open market requests and bids for a period of one year after the submission of the bids or, if no bids are received, the placing of the orders.

4. If feasible, purchases shall be based upon at least three written bids and shall be awarded to the lowest responsible bidder who submits a responsive bid which, based upon total cost, is most advantageous to the City.

(Ord. 758 § 2, 1988; Ord. 2017-1169 § 3)

A. The Purchasing Officer may authorize the purchase of highly technical supplies or equipment by competitive negotiations when:

1. The supplies or equipment are such that suitable technical or performance specifications are not readily available;

2. The City is not able to develop descriptive specifications; or

3. The proposals for the purchase would be more advantageous to the City.

B. When the purchases are made by competitive negotiations, the best offer, as judged against proposal evaluation criteria, shall be accepted. The use of competitive negotiations is not intended to be used for the purpose of avoiding the bidding procedures as set forth in this chapter.

(Ord. 758 § 2, 1988)

Because of their unique nature, it is in the best interest of the public, as allowed by state law, that contracts for professional services such as attorneys, accountants, architects, planning consultants, computer consultants, engineers, auditors, financial advisors, public relations consultants, real estate agents and brokers, insurance and bond agents and brokers, or other professional or consultant services of a similar nature, or at the discretion of the Purchasing Officer, be selected on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required, negotiated between parties rather than on the basis of cost alone. Therefore, the City Manager is not limited to awarding professional services contracts to the lowest responsible bidder, but rather on the basis of demonstrated competence and qualifications for the types of service to be performed at a fair and reasonable price.

The procurement of professional services shall be as follows:

A. The City Manager may exempt professional service contracts from the bid requirements applicable to other contracts under this section for contracts less than $45,000.00 when it is necessary or convenient for the management of the City's affairs.

B. The Purchasing Officer shall ascertain from informed sources the names of not less than three professionals qualified for the service desired who are professionally and financially qualified to undertake the proposed assign-ment. When three such professionals are not readily identifiable, the City Manager may determine that a lesser number of professionals are adequate.

C. A request for proposal shall be provided to all candidates described in subsection B of this section outlining the scope of services required, time frame for completion, pricing structure, liability insurance information and coverage and other pertinent information. Professionals must submit their responses in the specified format no later than the stated final due date for proposals. The response must include liability insurance information and coverage.

D. The evaluation process will be based on the criteria stated in the request for proposal but will generally include the scope of services offered, the professional's capabilities and previous experience in the field.

E. After the proposals are evaluated, the Purchasing Officer will negotiate an agreement with the selected professional. If an agreement is not reached within a reasonable time, the Purchasing Officer will terminate discussion with the first candidate and open negotiations with the second choice or repeat the process described in subsections B through E of this section.

F. Professional services contracts must go out to bid pursuant to this section after five years of utilizing the same vendor.

G. The City Council may waive the bid requirements of this section by resolution when it is necessary or convenient for the management of the City's affairs.

(Ord. 2009-1084 § 2; Ord. 2017-1169 § 4)

The Purchasing Officer or a designated representative shall be responsible for the inspection of supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The Purchasing Officer, or a designated representative, shall have authority to require chemical and physical tests of samples submitted with the bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. 758 § 2, 1988)

All using agencies shall submit to the Purchasing Officer, at such times and in such form as he or she 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 sell all supplies and equipment which cannot be used by any agency, or which have become unsuitable for City use, or to exchange the same, or trade in the same, for new supplies and equipment. Such sales shall be made pursuant to Section 3.04.130 or 3.04.140, whichever would be applicable for a purchase of the same amount or nature.

(Ord. 758 § 2, 1988)

Purchase of supplies, services and equipment by contract, arrangement and agreement for cooperative purchasing programs with the State, the County, or any other public or municipal corporation of the State, or any other organization comprised of states or local governments approved by the City Manager, may be made by the City Manager or design-ee when the administering agency or organization has made its purchasing contract in a competitive manner.

(Ord. 758 § 2, 1988; Ord. 2009-1093 § 1)

A. Except in emergency situations, pursuant to subsection A of Section 3.04.120, all contracts for supplies, services and equipment in an estimated amount of $75,000.00 or more shall be awarded by the City Council.

B. Contracts for supplies, services and equipment in an estimated amount of less than $75,000.00 that have already been budgeted by the City Council shall be awarded and executed by the City Manager.

(Ord. 758 § 2, 1988; Ord. 2017-1169 § 5; Ord. 2026-1260, 4/15/2026)

A. Change orders for an amount of less than $10,000.00 may be approved by the City Manager or the assistant to the City Manager if unencumbered funds are available.

B. Change orders for an amount of $10,000.00 or more shall require City Council approval.

C. Any change order that results in the need of additional appropriation shall be approved by City Council.

(Ord. 758 § 2, 1988)

A. Change orders for an amount of less than $5,000.00 shall be approved by the department director overseeing the project.

B. The City Manager may approve any change order for $5,000.00 or more with the following limitations: 10% of the project contract value, provided sufficient project appropriations exist.

C. The City Council shall approve any change order for amounts that exceed any of the limitations described in subsection B of this section.

(Ord. 758 § 2, 1988)

A. Any change order that results in the need of additional appropriations shall be approved by the City Council.

B. All requests for change orders shall be reviewed by the Administrative Services Director to verify that sufficient appropriations exist to fund the requested change order.

C. All change order requests will be accompanied by a written report to be prepared by the requesting operating department detailing the specific nature of the change order and associated fiscal impact.

(Ord. 758 § 2, 1988; Ord. 2012-1133 § 3)

The Purchasing Officer, with approval of the City Manager, may authorize in writing any department to purchase specified supplies, services and equipment of estimated amounts of less than $5,000.00 independently of the Purchasing Department. Such purchases shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases made under such written authorization.

(Ord. 758 § 2, 1988)

Supplies, services and equipment not subject to the provisions of this chapter are as follows:

A. Utility services and related charges;

B. Work or services performed by another public or quasipublic entity;

C. Real property purchases and related title and escrow fees;

D. Credit card purchases of gasoline, oil and emergency automotive needs;

E. Transportation and freight charges when not specifically indicated on a purchase order;

F. Insurance and bond premiums;

G. Advertising; and

H. "Works of art."

(Ord. 758 § 2, 1988)