Jurupa Valley Municipal Code Ch. 3.15 Purchasing

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State Law reference— Local purchasing procedures required, Government Code § 54201 et seq.; public works contracts, Public Contract Code § 20160 et seq.

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 through the use of purchase orders, contracts and other authorized procedures, and to assure the quality of purchases, the purchasing system set forth in this chapter is adopted for the City of Jurupa Valley. This chapter does not apply to public works construction contracts as defined in Public Contracts Code Section 20161. This chapter shall apply to professional services contracts only as specifically provided here.

(Ord. No. 2011-02, exh. A(3.15.010), 7-1-2011)

A. The authority and responsibility for the purchase of supplies and equipment, procurement of professional services and disposition of surplus supplies and equipment is vested in the City Manager and City Council. The City Manager may delegate certain purchasing and contract authorization to other city employees but shall be ultimately responsible for the city purchases and contracts. The City Manager may promulgate rules and procedures necessary to carry out the responsibilities of this chapter. The head of each city department is responsible for administering and implementing for that department the purchasing policies and procedures set forth in this chapter.

B. In addition to administering these policies and procedures, the City Manager and each department head shall:

(1) In awarding contracts or issuing purchase orders, first consider sources of supplies and equipment located within the city. The City Council has encouraged all residents and businesses located within the City of Jurupa Valley to shop locally at businesses located in the city. In keeping with this policy, the City Manager shall make every attempt to purchase supplies and equipment from Jurupa Valley businesses in accordance with this chapter. The City Manager shall maintain a list of Jurupa Valley vendors offering the types of supplies and equipment used by the city and shall circulate this list to all city departments. The City Manager or City Council may give preference to local bidders when awarding any contract or issuing any purchase order for the purchase of goods when the bids meet any of the following criteria to the extent allowed by law.

(a) The difference between bids from local bidders and those outside the city is less than the current sales tax benefit the city would receive from the local sales tax; and

(b) The local bidder will be able to provide goods which are equal in quality and meet all bid specifications of the city and of other competing bidders; or

(c) A reasonable condition of the contract performance is expeditious delivery of goods and it is reasonably believed that the local bidder will be able to provide its goods more expeditiously than a business located outside the city; or

(d) Any other reason which would factually justify selection of a local bidder based upon criteria which do not illegally discriminate against outside businesses.

(2) Keep informed of current developments in market conditions and new products and maintain a bidders list, vendors catalogue, files or other records needed for the efficient purchase of supplies and equipment.

(3) Cause supplies and equipment delivered to the city to be inspected to determine their conformance with specifications.

(4) Evaluate contract services performed to determine conformance with the specifications set forth in the contract.

(5) Consider and encourage the purchase and use of environmentally friendly, "green" and recyclable materials and products, whenever practicable.

(6) The term "department head" as used in this chapter means the person who is designated by the City Manager as being responsible for each particular city department, including, but not limited to, City Manager, City Clerk, Finance, Community Development, Community Services, Law Enforcement Services, Fire Protection Services, and Engineering/Public Works.

(Ord. No. 2011-02, exh. A(3.15.020), 7-1-2011)

A. The adopted budget for each department for each fiscal year shall include funding for the necessary supplies, services, and equipment for that department during the fiscal year. Except in cases of emergency, the City Manager shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the department account against which such purchase is to be charged.

B. Each department head or his/her designee shall ensure that sufficient documentation is submitted to the City Manager, with a request for purchase to demonstrate compliance with these policies and procedures and to justify the acquisition of supplies and equipment.

(Ord. No. 2011-02, exh. A(3.15.030), 7-1-2011)

A. The purchase of supplies, equipment, and nonprofessional services may be made by the City Manager subject to compliance with the procedures and limitations contained in this section. No expenditure of funds shall be made pursuant to this section unless there is an unencumbered appropriation available to cover the expenditure.

(1) For purchases of one hundred dollars ($100) or less, petty cash may be used and the applicable department head or their designee must approve the purchase. It is not required that bids be obtained for such purchases. No purchase order is necessary; the receipt should be provided to the responsible department head or the City Manager.

(2) For purchases over one hundred dollars ($100) but less than five thousand dollars ($5,000), the City Manager is authorized to make the purchase without City Council approval. Requests for purchases shall be made on forms prescribed and provided by the City Manager (requisition forms).

(3) For purchases of five thousand dollars ($5,000) or more, the City Council must approve the contract for the purchase. Contracts shall be subject to approval as to form by the City Attorney. The City Council may authorize that such purchase orders or contracts be executed by the City Manager.

B. The City Manager shall report to the City Council at each City Council meeting all purchases and contracts of three hundred dollars ($300) or more made or entered into by the City Manager without City Council approval of the purchase or agreement.

C. If the City Manager finds that emergency conditions require the immediate purchase of supplies or equipment are required to prevent the immediate interruption or cessation of necessary city services or to safeguard life, property or the public health and welfare, the City Manager shall have the authority to make such purchases even if the amount would exceed the limitations of this section. The City Manager shall report any such purchases to the City Council as soon as possible and not more than twenty-four (24) hours following the purchase.

D. The City Council may, by resolution, modify the amount of the City Manager's purchasing and contract authority set forth in this chapter.

(Ord. No. 2011-02, exh. A(3.15.040), 7-1-2011)

For purchases of supplies, equipment, or nonprofessional services with a value of five hundred dollars ($500) to five thousand dollars ($5,000), or such other amount as set by resolution of the City Council, at least three (3) bids or quotes must be obtained; and the applicable department shall solicit bids by written request to prospective vendors. Further, the purchase order or contract for such purchases shall be awarded to the lowest responsible vendor, consistent with the quality, quantity and delivery requirements. The lowest responsible bidder shall be determined by such factors as reputation, ability, references, quality of supplies and equipment, and price. Bids shall be submitted to the City Manager, who shall keep a record of all informal orders and bids for a period of two (2) years after placement of the order, or such other period as established by the city's document retention policy. This record, while kept, shall be open to public inspection.

(Ord. No. 2011-02, exh. A(3.15.050), 7-1-2011)

Contracts for supplies, equipment, and nonprofessional services of estimated value greater than five thousand dollars ($5,000) shall be let by the formal procedures set forth herein.

(1) The City Manager shall mail notices inviting formal bids. The notices shall be mailed to all qualified vendors on the bid list or who have requested their name to be added thereto unless the products or service is proprietary.

(2) The notices shall be mailed no later than ten (10) calendar days before the opening date of the bids. The notices shall describe the supplies and equipment in general terms, how to obtain more detailed information, and state the time and place for submission of bids.

(3) The notice inviting bids shall be published at least ten (10) calendar days before the date of opening of the bids. Notice shall be published in a newspaper of general circulation, printed and published in the city or, if there is none, it may be posted in at least three (3) public places in the city that have been designated by ordinance as the places for placing public notices or it may be published in a newspaper circulated in the city.

(4) The City Clerk shall also post a notice of pending purchases on a public bulletin board at City Hall.

(5) Sealed bids shall be submitted to the City Clerk and shall be identified as bids on the envelope. Bids shall be opened in public by the City Clerk or designee at the time and place stated in the public notices. A tabulation of all bids shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(6) Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein. The decision of the City Council shall be final.

(7) In its discretion, the City Council may reject any bids presented, abandon the purchase or advertise again. After rejecting the bids submitted, the City Council may either advertise again or adopt a resolution by a four-fifths (⅘) majority declaring that the supplies or equipment can be furnished at a lower price in the open market, and may award the contract in the open market without further compliance with this section.

(8) If two (2) or more bids received are the same and are the lowest, the City Council may accept the one it chooses.

(9) If no bids are received, the purchase may be let in the open market or by the informal procedures set forth in Section 3.15.050.

(10) The City Council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. A waiver of any defect or informality shall not void any contract subsequently entered into.

(Ord. No. 2011-02, exh. A(3.15.060), 7-1-2011)

A. The bidding requirements set forth in this chapter may be waived, at the discretion of the City Manager, when any of the following is applicable:

(1) The product is proprietary.

(2) After a reasonable attempt has been made to obtain bids, and it has been determined by the City Manager that three (3) bids cannot be obtained.

(3) The City Manager finds that emergency conditions require the immediate purchase of supplies or equipment. For the purpose of this section, emergency purchases are those procurements required to prevent the immediate interruption or cessation of necessary city services or to safeguard life, property or the public health and welfare.

(4) The City Manager determines that due to the nature of the supplies or equipment, formal bidding is not likely to result in the lowest price.

(5) Sufficient, satisfactory bids are not received.

(6) Supplies or equipment are procured through a cooperative purchasing program with the federal, state, county or other public agencies.

(7) The commodity is unique, including, but not limited to, acquisition of data processing, telecommunications and word processing equipment, goods and services.

(8) The product or service can be obtained from only one (1) vendor (sole source).

(9) The purchase of a specific brand name, make or model is necessary to match existing city equipment or facilitate effective maintenance and support.

B. The bidding requirements of this chapter may be waived by the City Council when, in the opinion of the City Council, compliance with the procedures is not in the best interest of the city.

C. The City Manager shall report to the City Council at each City Council meeting all purchases and contracts in which the bidding requirements have been waived as authorized by this section.

(Ord. No. 2011-02, exh. A(3.15.070), 7-1-2011)

In recognition of the complex and technical nature of supplies and equipment the city requires and the wide variations in options and cost factors affecting the purchase of supplies and equipment, the city may, as an alternative to the formal bidding requirements of this chapter, solicit proposals for the purchase of supplies and equipment and award the purchase to the proposal which best serves the needs of the city and provides the city with the highest quality and cost effectiveness based on the following factors (which are listed without any implication of priority):

(1) The extent to which the proposal meets the needs of the city for the equipment or supplies;

(2) The quality of the equipment or supplies proposed;

(3) The overall cost to the city of the proposal, including, but not limited to, pricing of the equipment or supplies, delivery schedule, terms of payment, warranties, maintenance requirements and required site preparation;

(4) The experience and qualifications of vendor submitting a proposal to successfully meet the requirements for the equipment or supplies;

(5) Previous performance of the vendor submitting a proposal in providing similar equipment or supplies;

(6) Financial ability of the vendor submitting the proposal to provide the equipment or supplies to the city;

(7) Vendor's conformity to the specifications for the equipment or supplies set forth in the request for proposal; and

(8) Such similar factors as may be specifically included in the request for proposal.

(Ord. No. 2011-02, exh. A(3.15.080), 7-1-2011)

The requirements for bidding or requests for proposal for purchases of goods or services as provided in this chapter may be satisfied through the use of bids or proposals received by federal, state or local agencies or may be procured through a cooperative purchasing program with the federal, state, county or other public agencies, provided that the city's purchase is the same as that described in the other agency's bid or proposal and is equal to or less than the other agency's bids or proposal.

(Ord. No. 2011-02, exh. A(3.15.090), 7-1-2011)

A. Professional services are defined as services provided by any specially trained and experienced person or firm, including but not limited to, persons or firms in the areas of accounting, administration, architecture, construction management, economics, environmental analysis, engineering, finance, landscape architecture, law, planning, surveying, or other matters involving specialized expertise or unique skills.

B. Contracts awarded for the performance of services in the above-listed areas shall be awarded by the City Council on the basis of the demonstrated competence of the contractors, and on the contractor's professional qualifications necessary for the satisfactory performance of the services required, and on the fairness and reasonableness of the cost of the services to the city, and shall not be awarded solely on the basis of cost. The competitive formal bidding requirements set forth in Section 3.15.060 are not applicable to the procurement of professional services.

C. Subject to compliance with the procedures set forth in this section, the City Manager may enter into and execute contracts or purchase orders for professional services when the cost of such services is less than five thousand dollars ($5,000) or such other amount as approved by resolution of the City Council. City Council approval is required for all contracts for professional services when the cost of the services is five thousand dollars ($5,000) or such other amount as approved by resolution of the City Council. The City Council may authorize that such contracts be executed by the City Manager.

D. Notwithstanding the above provisions of this section, all contracts for the performance of the annual audit of the city's financial statements shall be competitively bid by obtaining at least three (3) proposals for providing the required services, evaluating the proposals pursuant to criteria set forth in subsection (B) of this section, and awarding the contract based on the best proposal. Further, the award of all such contracts regardless of cost shall be approved by the City Council.

E. The City Manager shall report to the City Council at each City Council meeting all contracts entered into by the City Manager pursuant to this section without City Council approval of the purchase or agreement.

(Ord. No. 2011-02, exh. A(3.15.100), 7-1-2011)

A. Following the award of a contract or issuance of a purchase order for materials, supplies, equipment, services, or construction contracts, the contract or purchase order may be amended by the issuance of a change order, provided the change which is the subject of amendment is reasonably related to the scope of the original contract.

B. The City Manager will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s) and the Director of Finance shall certify the availability of funds for the proposed change in the event that the change order increases the contract cost.

C. On a regular basis, a report shall be submitted to the City Council outlining all change orders that have been issued to contracts governed by this chapter during the reporting period.

D. Any change order on a contract approved by the City Council with a total cost in the amount of five thousand dollars ($5,000) or less may be approved by the City Manager, provided the aggregate amount of all changes to a particular contract, including the change order under consideration, does not exceed ten (10) percent of the original contract cost. Any change order in an amount greater than five thousand dollars ($5,000) or any change order which, when considered with the aggregate amount of all other changes to a contract, exceeds ten (10) percent of the original contract cost, shall be approved by the City Council.

E. Any time extension of the performance deadline up to a total of sixty (60) days may be approved by the City Manager. Any time extension of a performance deadline that exceeds sixty (60) days shall be approved by the City Council.

F. If a proposed contract modification, change order or request for extra work exceeds the limitations imposed upon the City Manager by this section or by resolution, and any extended delay in obtaining City Council approval is reasonably determined to subject the city to liability for damages incurred by a contractor, or to jeopardize the public health, welfare, or safety, or to otherwise result in potential detriment to the city, then the City Manager shall have authority to exceed the dollar amounts or percentage limitations specified herein.

G. The limitations in contract authority set forth in this section may be modified by resolution of the City Council.

H. All contract modifications shall be subject to approval as to form by the City Attorney.

(Ord. No. 2011-02, exh. A(3.15.110), 7-1-2011)

A. The head of any city department may declare supplies or equipment (collectively "personal property") held by such department surplus. Such declaration shall be in writing and the written declaration shall be delivered to the City Manager who shall maintain a written inventory of surplus supplies and equipment for circulation to and review by each department. If any department has use for such personal property, the department head may request reassignment of such personal property from the City Manager. The City Manager shall have the authority to assign the personal property to the department best able to make use of such personal property. If no department head makes a request for use of such personal property after the inventory report has been circulated for one (1) month, the personal property shall be deemed surplus.

B. The City Manager shall have the authority to dispose of surplus supplies or equipment by auction or sale or otherwise after receiving bids or proposals which, in his or her judgment, provide the best return to the city.

(1) Sale on the open market. The City Manager shall cause to be published at least three (3) days before the sale, in a locally adjudicated newspaper or newspaper circulated in the city, and by posting on any city website, a notice of sale setting forth a general description of the personal property to be sold, and the day, time and location of the sale. The terms of all such sales shall be cash in the amount of the full purchase price.

(2) Sale by sealed bid or auction. As an alternative to the sale on the open market, the City Manager may, when in his/her judgment it is in the best interest of the city, sell surplus personal property by means of sealed bid or public auction.

(a) In the case of sale by sealed bid or public auction, the City Manager shall cause to be published at least three (3) days before the sale, in a locally adjudicated newspaper, and by posting on any city website, a notice setting forth a general description of the surplus personal property to be sold, and the day, time and location of the sale. The terms of all such sales shall be cash in the amount of the full purchase price.

(b) In conducting an auction, the City Manager may contract with a professional auctioneer and allow a flat fee, hourly fee or percentage of the amount of the sale to be paid based upon that which is common and customary method and rate for such auctioneering services.

C. The City Manager may, when in his or her judgment sale or auction of surplus personal property is infeasible or will result in minimal return to the city, recommend to the City Council that such surplus personal property be donated to any other governmental organization (including those outside the United States) or nonprofit group or corporation exempt from federal taxes pursuant to Internal Revenue Code Section 501(c)(3) located within or serving the City of Jurupa Valley. Surplus personal property shall only be donated upon approval by the City Council.

(Ord. No. 2011-02, exh. A(3.15.120), 7-1-2011)