Jackson Municipal Code Ch. 3.08 Purchasing of Supplies, Equipment and Services

In order to establish efficient procedures for the purchase of supplies and equipment at the lowest possible cost commensurate with quality needs, 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. 615 §1, 2000)

The procedures established by this chapter shall apply only to the purchase of supplies, equipment and services, and shall not apply to public projects as defined in Section 20161 of the California Public Contracts Code.

(Ord. 615 §1, 2000)

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

(Ord. 615 §1, 2000)

All city departments shall use recycled products whenever possible. Special emphasis shall be placed on the purchase of products manufactured with post-consumer recycled materials.

(Ord. 649, 2005)

There is created the position of purchasing agent, who may also be known as the purchasing officer, and shall be appointed by the city manager. The purchasing agent shall be the head and have general supervision of the purchasing division. The duties of purchasing agent may be combined with those of any other office or position. The purchasing agent 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 agent shall adopt for the internal management and operation of the purchasing division and such other rules and regulations as shall be prescribed by the city council or the city manager;

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 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 are reasonably necessary for 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 an approved vendors list, vendors' catalog file and records needed for the efficient operation of the purchasing division.

L. Promote the use of recycled products by publicizing its eco-procurement policy whenever practicable.

(Ord. 615 §1, 2000)

The purchasing agent shall be responsible for determining that the regulations and procedures in Sections 3.08.060 through 3.08.120 are carried out.

(Ord. 615 §1, 2000)

The city manager may authorize, in writing, any department to purchase specified supplies, services and equipment independent of the purchasing agent, but such purchases shall be made in conformity with the procedures established by this chapter and shall require further periodic reports from the department on the purchases made under such written authorization.

(Ord. 615 §1, 2000)

All departments 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 agent shall prescribe.

(Ord. 615 §1, 2000)

Departments shall submit requests for supplies, services and equipment purchases of one thousand dollars and over to the purchasing agent by standard requisition form, or by other means as may be established by the purchasing rules and regulations.

(Ord. 615 §1, 2000)

Purchases of supplies, services and equipment costing one thousand dollars and over shall be made only by purchase orders. Except as otherwise provided herein, no purchase order shall be issued unless the prior approval of the purchasing agent or designated representative has been obtained. Open purchase orders may be issued with vendors who are expected to provide products or services on an on-going basis throughout the year.

(Ord. 615 §1, 2000)

Except in cases of emergency, the purchasing agent shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.

(Ord. 615 §1, 2000)

The purchasing agent shall, with discretion, inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing agent 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 specification.

(Ord. 615 §1, 2000)

Purchases of supplies and equipment shall be by bid procedures pursuant to Sections 3.08.130 through § 3.08.280. Bidding may be dispensed under conditions stated in Section 3.08.290.

(Ord. 615 §1, 2000)

Except as otherwise provided herein, purchases of supplies and equipment of an estimated value greater than two hundred thousand dollars shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure hereinafter prescribed.

(Ord. 615 §1, 2000; Ord. 710 §2, 2019)

Notices inviting formal bids shall include a general description of the article or service desired, shall state where bid documents and specifications may be secured and shall state the time and place for opening bids.

(Ord. 615 §1, 2000)

Notices inviting formal bids shall be published at least ten days prior to the date of opening the bids. Notices shall be published at least once for all projects in a newspaper of general circulation in the city.

(Ord. 615 §1, 2000)

The purchasing agent shall also solicit formal sealed bids from responsible suppliers whose names are on the approved vendors list, or who have made written request that their names be added thereto.

(Ord. 615 §1, 2000)

The purchasing agent shall advertise the pending formal purchases by posting a notice on the public bulletin board at the city offices.

(Ord. 615 §1, 2000)

Where deemed necessary by the purchasing agent, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless 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 lower responsible bidder who is willing to execute the contract, or may reject all bids and readvertise.

(Ord. 615 §1, 2000)

The city council shall have authority to require a faithful performance bond or other bonds. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

(Ord. 615 §1, 2000; Ord. 710 §3, 2019)

When deemed necessary by the purchasing agent or his/her designated representative, prospective bidders shall be required to attend a prebid meeting at which the bid package will be reviewed in order to avoid misconceptions and ambiguities. A written addendum shall follow the meeting to address changes, if any, to the bid document.

(Ord. 615 §1, 2000)

Sealed bids shall be submitted to the purchasing agent and shall be identified as "bids" on the envelope. The purchasing officer, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than thirty calendar days after the bid opening.

(Ord. 615 §1, 2000)

In its discretion, the city council may reject any and all bids presented and may cause readvertising for bids pursuant to the procedure hereinabove prescribed. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize rebidding based upon the procedure hereinabove prescribed. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed herein.

(Ord. 615 §1, 2000)

Except as otherwise provided herein, formal bid contracts shall be awarded by the city council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the city council pursuant to findings and recommendations presented by the purchasing agent at the time of award of contract.

(Ord. 615 §1, 2000)

If two or more formal 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 or award of contract.

(Ord. 615 §1, 2000)

When no formal bids or no responsive bids are received, the purchasing officer is authorized to negotiate for written proposals, and make recommendation to the city manager and the award, if any, shall be made in accordance with applicable provisions prescribed herein. A responsive bid is defined as a bid which conforms in all material respects to the terms and conditions, the specifications and other requirements of the invitation for bid/request for proposal.

(Ord. 615 §1, 2000)

A. A bidder may be found to be irresponsible, and his or her bid may be rejected upon determination that any or all of the following circumstances exist:

1. That a bid submitted by a bidder did not strictly conform to the required bid specifications; provided, that the city council or bid coordinator shall have the authority to waive nonsubstantial deviations from such specifications.

2. That a bidder has demonstrated, through documented past performance in the industry or through prior dealings with the city, that he or she is unable to satisfactorily meet the responsibilities required of a successful low bidder.

3. That a bidder's product has been demonstrated, through documented past performance in the industry or through prior use by the city, to be incapable of satisfactorily meeting the accepted demands to be placed upon such product.

Determination of irresponsibility of a bidder shall be made by the city council in any formal bid process requiring city council award of contract.

B. In any informal bid process where it appears irresponsibility of the bidder may be present, the purchasing agent shall, in consultation with the city attorney, review the bidder's qualifications and the reason or reasons for which they believe the bidder should be deemed irresponsible. In any case where the bidder is so deemed irresponsible, the bidder shall be disqualified from consideration on the subject bid, and the purchasing agent shall, on the next available city council agenda, request that the council make a formal determination as to the bidder's irresponsibility. In the event the city council finds a bidder to be irresponsible, the bidder shall be excluded from future city bidding procedures until such time as the bidder has obtained consent from the city council to resume his or her active status to bid.

C. Requests for reinstatement for active bidder status may be made no sooner than one year following the determination that a bidder has been irresponsible. All such requests shall be made directly to the city council, and shall be granted only upon a determination by the city council that the bidder's status should be reinstated for future bids.

(Ord. 615 §1, 2000)

After the award of any bid, anyone who submitted a bid who wishes to challenge the bid procedure, the bids, or the award of the bid shall file a written protest within ten days of the award of the bid with the city attorney, stating the reasons for the challenge. The city attorney shall review the protest and provide the protestor with a written reply regarding the protest. Following the city attorney's decision, the protestor shall have ten days to file an appeal with the city manager or city council (the one with authority to award the bid). The appropriate authority shall review the protest and provide the protestor with a written reply regarding the protest. Failure to file a timely initial written protest or appeal waives any such challenge to the bid procedure, the bids or the award of the bid.

(Ord. 615 §1, 2000)

Purchases of supplies and equipment of an estimated value in the amount of two hundred thousand dollars or less may be made by the purchasing agent in the open market pursuant to the procedure prescribed in Sections 3.08.260 through 3.08.280 and without observing the procedure prescribed in Section 3.08.130 through 3.08.255; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than sixty thousand dollars. In addition, the city council shall approve all purchases of twenty thousand dollars or more.

(Ord. 615 §1, 2000; Ord. 710 §4, 2019)

Open market purchases shall, wherever possible, be based on at least three informal bids, and shall be awarded to the bidder offering the most advantageous bid to the city after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors.

The purchasing agent shall aggressively pursue the acquisition of recycled material products whenever possible without incurring unreasonable additional costs. The purchasing agent may provide a ten percent price preference to the suppliers of recycled paper or other recycled products over the lowest bid or price quoted by suppliers offering unrecycled paper or other products. Such preference shall be set forth in any notice inviting bid or similar solicitation.

(Ord. 649, 2005; Ord. 710 §5, 2019)

The purchasing agent shall solicit informal bids by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the city offices.

(Ord. 615 §1, 2000)

The purchasing agent shall keep a written record of all open market purchases and informal bids for a period of two years. This record, while so kept, shall be open to public inspection.

(Ord. 615 §1, 2000)

Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following instances:

A. When the commodity and/or service can be obtained from only one responsible source;

B. The city manager may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. Notice of all emergency purchases which would otherwise require formal bidding procedures made pursuant to this section shall be provided to the city council at the next regular council meeting after the purchase is authorized;

C. Contracts for personal and professional services may be executed without observing the bidding procedures provided herein. Contracts for maintenance and similar services shall be executed under the bidding procedures applicable to supplies and equipment unless otherwise provided in this chapter. The city manager is authorized to enter into such contracts where the amount of the contract does not exceed twenty thousand dollars; provided there exists an unencumbered appropriation in the fund account against which such expense is to be charged. Where the amount of the contract exceeds twenty thousand dollars, the contract shall be approved by the city council. The council may waive bidding for other services contracts as appropriate;

D. Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity.

(Ord. 615 §1, 2000; Ord. 710 §6, 2019)

The city council may, by resolution, prescribe procedures, rules and regulations governing the solicitation, selection and award of proposals or bids for the furnishing of personal services or professional or consulting services or for other contractual services, the contract for which may be awarded without observing the bidding procedures provided for in this chapter. Such procedures, rules and regulations shall have as one purpose the obtaining of contractual services of the highest quality together with cost-effectiveness.

(Ord. 615 §1, 2000)

All using departments shall submit to the purchasing agent, at such times and in such forms as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete and worn out.

(Ord. 615 §1, 2000)

The purchasing agent shall have authority to exchange for or trade-in for supplies and equipment all supplies and equipment which cannot be used by any department or which have become unsuitable.

(Ord. 615 §1, 2000)

The purchasing agent shall have authority, subject to approval of the city manager, to dispose of surplus supplies or equipment by auction or by sale or otherwise after receiving bids or proposals which provide the maximum return to the city. City employees or officers may participate in the purchase of surplus supplies and/or equipment on the same basis as other members of the general public; provided, however, there is no direct bid involvement or conflict of any kind.

(Ord. 615 §1, 2000)

A. Notwithstanding the other provisions of this article, the city council may convey to charitable, nonprofit organizations surplus personal property as it is determined by the city council that the use to which the personal property will be put will be for the benefit of the general welfare of the community in matters such as recreation, education, aid to the destitute, city beautification, or any other activity in which the city government may legitimately participate.

B. The organization accepting such personal property shall sign a statement that accepts such property on the condition that it will be used for the purpose designated by the city council; that it shall not be used for any other purpose without permission of the city council; and that if such property is ever diverted to other than a charitable use, the city may reclaim such property.

(Ord. 615 §1, 2000)

Purchases of supplies, materials, equipment or services and sales of surplus property made under a cooperative purchasing program, utilizing purchasing agreements maintained by the state, county or other public agencies are exempt from the requirements of this chapter. To the extent possible, cooperative purchases will be competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained.

(Ord. 615 §1, 2000)

Purchases with credit cards shall be for gasoline, telephone, travel expenses, and for supplies that will not be billed by a vendor. These purchases, except for telephone, shall be submitted to the purchasing agent for prior approval. The operational policy, as established in the purchasing rules and regulations, for the use of all credit cards shall be utilized.

(Ord. 615 §1, 2000)

The bid of any bidder from within the city shall be computed by subtracting from his or her bid that amount of sales tax that would be received by the city if the bid were awarded to such local bidder. As a condition precedent to the deduction of such tax from a local bid, a local bidder must, upon submission of his or her bid, provide the amount of tax to be rebated to the city, which figure shall be subject to confirmation and correction by the purchasing agent.

(Ord. 615 §1, 2000)