Lake Forest Municipal Code Ch. 3.12 Purchasing

This purchasing system is adopted 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.

(Ord. 165 § 1, 2007)

There is created the position of Purchasing Officer. The Purchasing Officer shall be responsible and have general supervision of the following purchasing functions as implemented by various departments throughout the City pursuant to procedures established by the Purchasing Officer and approved by the City Council. The Purchasing Officer shall be the City Manager, or designee. The Purchasing Officer shall have the authority to:

A. Purchase or contract for supplies, services and equipment;

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

C. Act to procure for the City the needed quality in supplies, services 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, services and equipment for the City;

F. Prepare and recommend to the City Council 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 reasonably necessary to the operation of this chapter and other rules and regulations;

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

J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of supplies and equipment which cannot be used by any department or which becomes unsuitable for City use; and

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

(Ord. 165 § 1, 2007)

No officer or employee of the City shall be compensated, directly or indirectly, in connection with the award of any contract pursuant to this chapter. No member, officer or employee of the City, during the term of his or her service with the City and for two years following his or her termination of office or employment with the City, shall have any direct interest in any contract awarded hereunder, or obtain any present or anticipated material benefit arising therefrom.

(Ord. 165 § 1, 2007)

The following terms, as used in this chapter, shall have the following meanings:

A. Professional services contract or contract for professional services shall mean a contract for services, other than services constituting public works projects, performed by specially-trained persons or firms who provide services in connection with financial, economic, accounting, engineering, administrative or other matters involving specialized expertise or unique skills.

B. Non-professional services contract or contract for non-professional services shall mean a contract for services not constituting professional services or public works projects.

(Ord. 165 § 1, 2007)

Purchases of supplies, contract services, equipment, the sale of personal property, and construction work other than public works projects, as defined in Chapter 3.13 of this Code, shall be by the procedures set forth herein.

(Ord. 165 § 1, 2007)

Except in cases of emergency, the Purchasing Officer shall not issue any purchase order unless there exists an unencumbered appropriation in the departmental budget against which such purchase is to be charged.

(Ord. 165 § 1, 2007)

The Purchasing Officer or requesting department shall inspect supplies and equipment delivered and contract services performed to determine their conformance with the specifications set forth in the order or contract. The Purchasing Officer or requesting department shall have the right to waive any defect or informality. The Purchasing Officer or requesting department shall have the 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 specifications.

(Ord. 165 § 1, 2007)

Purchases of equipment, supplies and non-professional service contracts of estimated value of under $10,000 may be made by the City Manager or his/her designee in the open market.

(Ord. 165 § 1, 2007)

Purchases of supplies, equipment, non-professional services, and sales of surplus property of an estimated value of $10,000 to $50,000 shall be made by informal procedures as described in this section.

A. The requesting department shall solicit proposals by telephone or written request to prospective vendors.

B. Informal purchases shall be based on at least three proposals unless the product or service is proprietary. The order shall be awarded to the best qualified vendor, consistent with quality and delivery requirements and selection criteria set forth in Section 3.12.125 below.

C. The City Manager is authorized to award contracts and orders set forth herein.

D. Proposals shall be submitted by vendors to the requesting department. The City Clerk shall keep a record of all informal orders and proposals for a period of six months after placement of the order. This record, while so kept, shall be open to public inspection.

(Ord. 165 § 1, 2007; Ord. 353 § 1, 2022)

Purchases of supplies, non-professional service contracts, equipment, and the sale of surplus property of estimated value of $50,001 or more shall be let by the formal procedures set forth herein.

A. Notices inviting formal proposals from vendors shall be sent no later than 10 calendar days before the submission date for formal proposals. The notices shall describe the commodities or services in general terms, how to obtain more detailed information, and state the time and place for submission of sales proposals.

B. The notice shall be published at least 10 calendar days before the date of opening of the proposals, the method or detail of which shall be outlined in administrative regulations adopted by the City Council.

C. The City Manager is authorized to award contracts in an amount of $50,000 or less. For multi-year contracts, the fifty thousand dollar ($50,000.00) authority shall apply per year for the contract term, up to a maximum of $150,000. With the exception of the aforementioned multi-year contracts, all contracts in excess of $50,000 shall be awarded by City Council.

D. Contracts shall be awarded by the City Council to the best qualified vendor except as otherwise provided in this chapter. The decision of the City Manager/City Council shall be final.

E. In its discretion, the City Manager/City Council may reject any sales proposals, abandon the purchase or readvertise. After rejecting all sales proposals, the City Council may either readvertise or adopt a resolution by a four-fifths majority declaring that the materials or supplies can be furnished at a lower price in the open market and may award the contract in the open market without further complying with this section.

F. If two or more sales proposals received are the same and lowest, the City Manager/City Council may accept the one it chooses.

G. If no sales proposals are received, the contract may be let in the open market or by the informal procedures set forth in this chapter.

H. The City Manager/City Council shall have the right to waive any defect or informality in the sales proposals or in the procedures set forth in this section. No defect or informality shall void any contract entered into.

(Ord. 165 § 1, 2007; Ord. 308 § 1, 2018; Ord. 322 § 1, 2019; Ord. 353 § 2, 2022)

In determining the best qualified vendor, consideration will be given to quality and performance of the equipment or supplies to be purchased or non-professional services to be provided by the vendor. Criteria for determining the best qualified vendor shall include, but not be limited to, the following:

A. The cost of the equipment, supplies or non-professional services;

B. The ability, capacity and skill of the vendor to perform the contract or provide the supplies or services required;

C. The ability of the vendor to provide the supplies or non-professional services promptly or within the time specified, without delay or interference;

D. The character, integrity, reputation, Judgment, experience and efficiency of the vendor;

E. The quality of vendor's performance on previous purchases or contracts with the City;

F. The ability of the vendor to provide future maintenance repair parts and services for the use of the supplies purchased;

G. Current compliance by the vendor with Federal acts and executive orders and State statutes governing the subject of nondiscrimination in employment, provided that the City Manager shall recognize as proof of noncompliance only the final decisions and orders of those Federal and State agencies empowered under the law to make such findings.

(Ord. 165 § 1, 2007)

The procurement procedures set forth in this chapter need not be followed in situations determined by the City Manager to constitute an emergency; or when the commodity or service is proprietary; or for the contracting of professional services (e.g., attorneys, architects or engineers); or for the contracting for trash and garbage service; or for public relations services; or for services connected with elections; or for other similar commodities and services as determined by the City Manager.

(Ord. 165 § 1, 2007)

The City may, subject to any limits and policies set forth in this chapter, make purchases for any goods or services by contracts established by other public agencies, including, but not limited to, cooperative purchase agreements, piggyback contracting, and multiple award schedules, provided the contract was awarded or established following a competitive selection process.

(Ord. 299 § 1, 2017)

Following the award of a procurement contract for materials, supplies, equipment or nonprofessional service contracts pursuant to Sections 3.12.110 and 3.12.120, the contract may be amended by the issuance of a change order or amendment, provided the change which is the subject of the change order or amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s) and the Director of Finance will certify the availability of funds for the proposed change in the event that the change order increases the contract cost. Unless the City Council sets a separate limit, any change orders or amendments which result in a total contract price of $50,000 or less may be approved by the City Manager. Unless the City Council sets a separate limit, change orders or amendments for contracts pursuant to Section 3.12.120, which in the aggregate do not exceed 10% of the original contract price may be approved by the City Manager. Any change orders or amendments for contracts pursuant to Section 3.12.120 in excess of the foregoing 10% threshold must be approved by the City Council.

(Ord. 165 § 1, 2007; Ord. 219 § 1, 2010; Ord. 296 § 1, 2017; Ord. 308 § 2, 2018; Ord. 353 § 3, 2022)

A. Purchases of goods or nonprofessional service contracts in an amount of $50,001 or more which can be obtained from only one source may be made by the City Manager without advertising and after approval by the City Council.

B. The City Council may authorize purchase of supplies, equipment and non-professional service contracts without complying with the above procedures 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 may authorize emergency purchases of supplies, equipment or non-professional service contracts. For the purpose of this chapter, 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.

(Ord. 165 § 1, 2007; Ord. 353 § 5, 2022)

A. The bidding procedures contained in this chapter shall not apply to contracts for specially trained persons or firms to provide services in connection with financial, economic, accounting, engineering, administrative or other matters involving specialized expertise or unique skills. Rather, to secure professional services, the City shall utilize a request for proposals procedure, the method and details of which shall be outlined in administrative regulations adopted by the City Council. The City Manager may award any contract for professional services when the cost of such contract is $50,000 or less. For multi-year contracts, the fifty thousand dollar ($50,000.00) authority shall apply per year for the contract term, up to a maximum of $150,000 over a maximum period of three years. With the exception of the aforementioned multi-year contracts, all professional services contracts in excess of $50,000 shall be awarded by City Council.

B. In the event of a vacant City employee position previously approved by the City Council, the City Manager shall have the authority to award any and all contracts for the same or substantially similar services to independent contractors or consultants when the cost of such contract does not exceed the salary, including benefits, of the City employee position.

C. Contracts for professional services described in subsection A may be awarded without utilizing a request for proposals procedure, in the following circumstances: (i) the City Manager may award a contract for services which can be obtained from only one source without advertising and after approval by the City Council; (ii) the City Council determines that use of the request for proposals procedure is not in the best interest of the City; and (iii) the City Manager may authorize emergency purchases of services required to prevent the immediate interruption or cessation of necessary City services or to safeguard life, property or the public health and welfare.

(Ord. 165 § 1, 2007; Ord. 322 § 2, 2019)

Contracts for professional services pursuant to Section 3.12.160 may be amended by the issuance of a written amendment, provided the change which is the subject of the amendment is reasonably related to the scope of the original contract. The requesting department will maintain control relative to the scoping, estimating, and negotiating of the proposed change(s), and the Director of Finance will certify the availability of funds for the proposed change in the event that the amendment increases the contract cost. Unless the City Council sets a separate limit, any amendment which results in a total contract price of $50,000 or less may be approved by the City Manager. Unless the City Council sets a separate limit, for amendments to contracts for professional services in excess of $50,000, any amendment which in the aggregate do not exceed 10% of the original contract price may be approved by the City Manager. Any amendments which are in excess of the foregoing 10% threshold must be approved by the City Council.

(Ord. 165 § 1, 2007; Ord. 219 § 2, 2010; Ord. 296 § 2, 2017; Ord. 308 § 3, 2018; Ord. 353 § 4, 2022)

Wherever hard copy bids, proposals or other responses to City solicitations are required in this chapter, the City may elect to substitute in and allow for electronic and/or digital bid, proposal or alternative responses pursuant to instructions specified by the City in the solicitation document.

(Ord. 353 § 6, 2022)

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

(Ord. 165 § 1, 2007)

The Purchasing Officer shall have authority to exchange for or trade in on supplies and equipment all supplies and equipment which cannot be used by any department or which have become unsuitable for City use.

(Ord. 165 § 1, 2007)

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

(Ord. 165 § 1, 2007)

The City Manager shall have authority to donate surplus supplies and equipment subject to the following:

A. Surplus supplies and equipment may be donated to nonprofit organizations or school districts located or operating within the City, or if none are identified, then to nonprofit organizations or school districts whose operations benefit Lake Forest residents.

B. Donations made to nonprofit organizations or school districts, ("recipient entity"), shall be on a first-come, first-serve basis.

C. Prior to transfer of the donated supplies or equipment, the recipient entity shall provide a statement executed by a person duly authorized to legally bind the recipient entity that the donated property will:

1. Be accepted "as is," with no express or implied warranties; and

2. That an immediate need exists for the property and that it will be put into immediate use; and

3. That the property not be sold or otherwise transferred for profit; and

4. That the recipient entity shall assume all costs and liability associated with the removal and transportation of the surplus property from the City.

D. City shall provide notice of the surplus property to be donated.

E. If in the opinion of the City Manager, the property to be donated pursuant to this section has a value of $1,000 or more, the City Manager shall notify the City Council, in writing, of the property to be donated, the estimated value of the property to be donated, and the recipient of the property proposed to be donated at least 30 days prior to the donation of the property.

(Ord. 165 § 1, 2007)

A. The City Manager shall have authority to scrap surplus supplies or equipment if the surplus supplies or equipment cannot otherwise be traded-in, sold, auctioned, donated, or salvaged. At least 30 days prior to any such action, the City Manager shall notify the City Council, in writing, of the property to be scrapped.

B. If after reviewing the procedures outlined in Sections 3.12.210 to 3.12.220, the City Manager determines that trade-in or sale of the surplus supplies or equipment is not practicable and after offering said surplus supplies or equipment for donation in accordance with Section 3.12.230, the City Manager may dispose of such surplus supplies or equipment as he or she determines is in the best interests of the City. Prior to such final disposition of the surplus supplies or equipment, the City Manager shall notify the City Council of the proposed method of disposal which shall be done not less than 30 days thereafter unless the City Council directs further review or takes other action as appropriate.

(Ord. 165 § 1, 2007)