Lemoore Municipal Code Ch. 8 Purchases and Contracts

This purchasing system is adopted for the purposes of establishing efficient and uniform procedures for the purchase of supplies and equipment; securing supplies and equipment for the city at the lowest possible cost commensurate with quality and quantity needed and the availability of the item(s); exercising positive financial control over purchasing; and clearly defining the authority for the purchasing function to assure the quality of purchases. (Ord. 2016-05, 6-21-2016)

City departments shall submit requests for supplies, equipment, and vehicles to the purchasing officer by standard requisition forms. (Ord. 2016-05, 6-21-2016)

Except as provided in section 1-8A-6, "Bidding Exceptions", of this article, the following approval levels shall apply to purchases of supplies, equipment, and vehicles, provided that such expenditures are within the budget limitations:

A. Single purchases in excess of fifty thousand dollars ($50,000.00) shall be authorized by the city council and shall be made pursuant to the formal bid procedure set forth in section 1-8A-5 of this article, unless expressly waived by the city council.

B. Any purchase of more than ten thousand dollars ($10,000.00) up to fifty thousand dollars ($50,000.00) shall require at least three (3) written quotations and shall be approved by the city manager or designee. However, if there are fewer than three (3) available vendors, the city manager or designee may authorize a purchase with fewer than three (3) quotations.

C. The city manager or designee is authorized to make any purchase not exceeding ten thousand dollars ($10,000.00) in the open market with or without solicitation of multiple quotations.

D. Separate purchases of components of equipment, or phasing of projects, solely to avoid the provisions of this section shall not be permitted. (Ord. 2016-05, 6-21-2016)

Purchases of supplies, equipment, and vehicles are to be made by purchase order whenever possible; provided, however, that purchases made by credit card, merchant account, or petty cash are permissible if appropriate authorization is obtained. (Ord. 2016-05, 6-21-2016)

Except to the extent permitted by law, or as otherwise provided in section 1-8A-6, "Bidding Exceptions", of this article, purchases and contracts for supplies and equipment of estimated value greater than fifty thousand dollars ($50,000.00) shall be by written contract with the lowest responsible bidder, pursuant to the procedure prescribed herein.

A. Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be obtained, and the time and place for submitting bids and the opening of bids.

1. Notices: Notices inviting bids may be published in a newspaper of general circulation, or trade journal.

2. Bidder Solicitation: The purchasing officer may solicit sealed bids from responsible prospective suppliers.

3. City Website: The purchasing officer shall also advertise pending purchases by a notice posted on the city's public website.

B. Rejection Of Bids: In his or her discretion, the city manager, or designee, may reject any and all bids presented and readvertise for bids.

C. Award Of Contracts: Contracts shall be awarded by the city council to the lowest responsible bidder, except as otherwise provided in subsection D of this section.

D. Bidder's Failure To Execute Contract: If the successful bidder fails or refuses to execute the contract, the city manager or designee is authorized to award the contract to the next lowest responsible bidder.

E. Tie Bids: If two (2) 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 manager or designee may accept whichever one he or she chooses, and may accept the lowest bid made after negotiation with the tie bidders at the bid opening.

F. Performance Bonds: The city manager or designee shall have authority to require a performance bond or other appropriate security before entering a contract in such amount as determined to be reasonably necessary to protect the best interest of the city. If a performance bond or other security is required, the form and amount of the bond or security shall be described in the notice inviting bids. (Ord. 2016-05, 6-21-2016)

A. Emergency Purchases: Purchases of an emergency nature may be made as the need arises, and such purchases shall be exempt from the requirements of this section; provided, however, such emergency purchases shall be authorized by the city manager or designee.

B. Sole Source: Bidding shall be dispensed when the item(s) can be obtained from only one vendor; provided, however, such sole source purchases are authorized by the city manager or designee.

C. Cooperative Purchasing: The city manager or designee shall have the authority, to the extent permitted by law, to join with other units of government or other governmental agencies or authorities in cooperative purchasing when beneficial to the city. Bidding may be dispensed when the supplies, equipment or vehicles can be acquired under a valid purchasing contract that has been previously bid by the city or other governmental agency.

D. Other Considerations: The city manager shall have the authority to dispense with bidding if it can be shown that a project, usually complex in nature, in which the design, installation or support of equipment and systems from a vendor is of higher significance than the component costs of supplies or equipment purchased as part of the overall project. (Ord. 2016-05, 6-21-2016)

The purchasing officer shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The purchasing officer 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 specifications. (Ord. 2016-05, 6-21-2016)

A. The use of vendors who have a fixed business location within the city limits provides certain benefits to the city and its citizens, including, without limitation, the following:

• 1. Receipt of sales tax revenue from sales made within the city limits;
• 2. Cost savings resulting from local maintenance, repair, pick up and delivery; and
• 3. Use of the local labor force.

Therefore, except in public works projects or other projects where the city is required to award a bid or contract to the lowest bidder, and notwithstanding anything to the contrary in this article, the city may allow the following preferences to vendors having a fixed business location within the city limits. In instances where a local vendor and a nonlocal vendor submit equivalent lowest responsible bids, the city shall give preference to the local vendor having a fixed business location and a valid business license within the city limits. If the city receives two (2) or more bids/quotations with all factors being equal except price, an allowance adjustment of up to five percent (5%) of the quoted price may be afforded to the local vendor having a fixed business location and a valid business license within the city limits and such local vendor may be determined the lowest bidder and the city may award the contract to such local vendor. (Ord. 2016-05, 6-21-2016)

If any section, subsection, phrase, provision, or clause of this article is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this article. The city council hereby declares that it would have adopted this article and each section, subsection, phrase, provision, or clause hereof irrespective of the fact that any one or more sections, subsections, phrases, provisions, or clauses be declared invalid. (Ord. 2016-05, 6-21-2016)

ARTICLE B. PROCUREMENT PROCEDURES FOR PUBLIC PROJECTS

SECTION:

This article is adopted to implement the procedures for contracting for public projects as authorized by the uniform public construction cost accounting act. (Ord. 2016-05, 6-21-2016)

For the purposes of this article, unless otherwise apparent from the context, certain words and phrases used in this article are defined as follows:

CONTRACTORS LIST: A list of qualified contractors, identified according to categories of work. The minimum criteria for the development and maintenance of the list shall be determined by the California uniform construction cost accounting commission.

FACILITY: As defined in section 22002 of the Public Contract Code, and means any plant, building, structure, ground facility, real property, streets and highways, or other public work improvement.

MAINTENANCE WORK: Includes all of the following:

A. Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility.

B. Minor repainting.

C. Resurfacing of streets and highways at less than one inch (1").

D. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

E. Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems.

PUBLIC PROJECT: As defined in section 22002 of the Public Contract Code, and means any of the following, but does not include "maintenance work":

A. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.

B. Painting or repainting of any publicly owned, leased, or operated facility. (Ord. 2016-05, 6-21-2016)

The dollar amount thresholds provided in this section shall automatically adjust upon the effectiveness of any adjustment notification by the state controller in accordance with Public Contract Code section 22020, without the necessity of amending this section or any subdivision herein to reflect any such adjustment.

A. Forty Five Thousand Dollars Or Less: Public projects of forty five thousand dollars ($45,000.00) or less may be performed by city employees by force account, by negotiated contract, or by purchase order. Provided the expenditure is within the budget limitation, the city manager or designee is authorized to approve the use of city employees for public projects, approve and sign any contract or purchase order for public projects not exceeding forty five thousand dollars ($45,000.00), and accept the completed public project and authorize the recording of a notice of completion.

B. One Hundred Seventy Five Thousand Dollars Or Less: Public projects of one hundred seventy five thousand dollars ($175,000.00) or less may be let to contract by informal bidding procedures as follows:

1. Informal Bid Procedures: Public projects, in accordance with the limits listed in section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in section 22032 et seq., of the Public Contract Code.

2. Contractors List: A list of qualified contractors shall be developed and maintained in accordance with the provisions of section 22034 of the Public Contract Code and criteria promulgated from time to time by the California uniform construction cost accounting commission.

3. Notice Inviting Informal Bids: A notice inviting informal bids shall be prepared, which notice shall describe the project in general terms, describe how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than ten (10) calendar days before bids are due, to either all contractors on the contractors list for the category of work to be bid, or to/and to all construction trade journals as specified by the California uniform construction cost accounting commission in accordance with section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids, provided, however:

a. If there is no contractors list maintained by the city for the particular category of work to be performed, the notice shall be sent only to the construction trade journals specified by the commission.

b. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice may be sent exclusively to such contractor or contractors.

C. Award Of Contracts: Contracts for public projects in excess of forty five thousand dollars ($45,000.00) shall be awarded by the city council. If all bids received are in excess of one hundred seventy five thousand dollars ($175,000.00), the city council may, by adoption of a resolution by four-fifths (4/5) vote, award the contract, at one hundred eighty seven thousand five hundred dollars ($187,500.00) or less, to the lowest responsible bidder, if it determines the project cost estimate was reasonable.

D. More Than One Hundred Seventy Five Thousand Dollars: Public projects for more than one hundred seventy five thousand dollars ($175,000.00) shall, except as otherwise provided in this section, be let to contract by formal bidding procedure in accordance with applicable provisions of the Public Contract Code. (Ord. 2016-05, 6-21-2016)

If any section, subsection, phrase, or clause of this article is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this article. The city council hereby declares that it would have adopted this article and each section, subsection, phrase, or clause thereof irrespective of the fact that any one or more sections, subsections, phrases, or clauses be declared invalid. (Ord. 2016-05, 6-21-2016)