Lindsay Municipal Code § 3.04 Purchasing And Contracting

The provisions of this chapter are adopted pursuant to Section 8.11 of the Lindsay City Charter.

1. The city manager shall have control of the city purchasing and contracting system, and may delegate such authority by written executive order as is permitted by this code, resolutions, and rules and regulations promulgated in conformance therewith.
2. The finance director is designated as the purchasing officer and shall have such duties as set out in this chapter.

(Ord. 482 § 3 (part), 1996)

Contracts and purchases made in accordance with Section 3.04.070 cumulatively totaling seventy- five thousand dollars, or more, in any three-year period awarded to anyone vendor or contractor are prohibited, such being evidence of "bid splitting," which practice is prohibited.

1. In such event vendor or contractor shall be required to comply with the competitive bidding process set out in this code prior to being awarded a further contact or purchase order within the three-year period.
2. Splitting contracts or purchases to avoid dollar limits set out in this chapter is prohibited.

(Ord. 482 § 3 (part), 1996)

The duties and responsibilities of the purchasing officer shall be to:

1. Purchase or contact for all supplies, equipment and contractual personal services, excluding professional services, needed by all city departments or agencies which derive financial support wholly or in part from the city, in accordance with purchasing procedures as prescribed by this chapter, relevant administrative regulations and such rules and regulations as the purchasing officer shall adopt and the city manager approve;
2. Negotiate and recommend execution of contracts for the purchase of supplies and equipment and for the contacting for services from the lowest responsible bidder;
3. Act to procure for the city acceptable quality of supplies, equipment and services at the least expense to the city;
4. Discourage uniform bidding by purveyors and induce full competition on all purchases and for all purchases and contracts;
5. Adopt administrative regulations, subject to prior approval of the city manager, including revisions and amendments thereto, governing the purchase of goods and the contracting for services or supplies and equipment for the city;
6. Keep informed of current developments in the field of purchasing and contracting, price, costs, market conditions, new products and new contractual situations prevailing in the industries which might be supplying goods or services to the city;
7. Prescribe, design and issue forms needed for the operation of the procedures and requirements set out in this chapter, and such other applicable rules as may seem necessary to fulfill the requirements of this chapter;
8. Regulate the transfer of surplus property between departments as needed, or sell or otherwise dispose of surplus property when designated as such by other department heads or city manager;
9. Maintain a bidders list, vendors and contractors catalog file, and such other records as might be used in modem procurement;
10. Assure that every bidder complies with all applicable city, state and federal health, employee, safety and occupational laws and regulations;
11. Such other matters as shall be required to fulfill the requirements and procedures of this chapter, the City Charter and requirements of the city council and the city manager.

(Ord. 482 § 3 (part), 1996)

Generally, the purchasing procedures of the city shall consist of the following:

1. Determination of requirements by the purchasing officer, in consultation with the requesting department heads;
2. The negotiation of or processing of appropriate procurement actions;
3. Referral of bids to using departments or agencies for analysis and recommendation;
4. Award of purchase order or contract to the lowest responsible bidder;
5. Supervision of receipt and acceptance procedures;
6. Approval of invoices for payment.

(Ord. 482 § 3 (part), 1996)

As needed, the purchasing officer, in conjunction with using departments or agencies, shall develop standard specifications for repetitively procured items and services.

1. Every specification shall be prepared to assure the broadest possible bidder participation, consistent with the needs of the using agency.
2. Alternative specification provisions for any particular bid invitation may be established with concurrence of the purchasing officer and the using department or agency.

(Ord. 482 § 3 (part), 1996)

Annually, as part of the city budget, city staff shall provide data and the city council shall adopt new dollar limits affecting sections of this chapter in which dollar limits are set out.

1. Such dollar limits for purchases of goods and supplies shall be adjusted by the same percentage as the Municipal Price Index (MPS), as determined by City & County Magazine, shall have changed during the prior calendar year, either upward or downward.
2. Such dollar limits for construction and equipment purchases and contracts shall be adjusted by the same percentage as the McGraw Hill Index of Construction Prices shall have changed during the prior calendar year, either upward or downward.

(Ord. 482 § 3 (part), 1996)

The city manager may delegate in writing to the department heads, purchasing officer or other city officer as he shall determine, the authority to make purchases and to contract for items and services involving less than twenty-five thousand dollars. Such delegated authority shall be exercised as set out in this section, and shall be subject to other applicable provisions of this chapter.

1. Purchases under this section shall be based whenever possible on competitive quotations and award to the lowest responsible bidder.
2. Either verbal or written quotations shall be received from prospective vendors or contractors, and notations made thereof in every case involving any purchase or contract of amount greater than five thousand dollars.
3. Verbal or written quotations shall be solicited and received from prospective vendors or contractors and made a part of the file for each specific proposed acquisition of goods or services involving expenditures of five thousand and one dollars up to and including twenty-five thousand dollars.
4. A written and signed statement of the city officer or employee who made such solicitation shall be included as a part of each purchase order issued under the provisions of this section, which statement shall swear under penalty of perjury that the procedures set out in this section were complied with and that the award was made to the lowest responsible bidder.
5. Award of all contracts and purchases made pursuant to the procedures of this section shall be made to the lowest responsible bidder or vendor meeting specifications, except as specifically otherwise authorized by this chapter.

(Ord. 482 § 3 (part), 1996)

All purchases and contracts involving amounts between twenty-five thousand and one dollars and seventy-four thousand nine hundred and ninety-nine dollars shall be purchased and contracted for only under the procedures set out in this section.

1. Award of all contracts and purchases made pursuant to the procedures of this section shall be made to the lowest responsible bidder or vendor meeting. specifications, except as specifically otherwise authorized in this chapter.
2. Written quotations shall be secured in all cases from at least three prospective and qualified vendors or contractors, and such quotations shall be made a part of the file of each purchase made or contract awarded under this section. Such file shall be maintained for three years after award of the contract or purchase order.

(Ord. 482 § 3 (part), 1996)

The procedure set out in this section shall be utilized for all purchases or contracts involving amounts of seventy-five thousand dollars or more.

1. Award of all contracts and purchases made pursuant to the procedures of this section shall be made to the lowest responsible bidder meeting specifications, except as specifically otherwise authorized by this chapter.
2. Written specifications and plans, if appropriate, shall be prepared for all purchases proposed to be made and contracts proposed to be awarded under this section. Such specifications and plans. together with the deadline for and place to file sealed bids with the city, and other requirements, shall be circulated to publications appropriate to the subject of the call for bids, posted at city hall, and advertised in a legally adjudicated newspaper in geographic areas appropriate to reaching prospective bidders.
3. Such notices and advertisements shall be designed to cause full public notification of all calls for sealed bids by providing at least ten days written notice to prospective bidders prior to the proposed deadline for the receipt of sealed bids.
4. Sealed bids shall be accompanied by a bid bond or cashiers check in amount set forth by the city manager, and failure to include such bid bond or cashiers check with any bid shall be disqualifying.
5. Sealed bids shall be received and opened by the city official designated by the bid call, at the place and time specified in said bid call.
6. A written analysis shall be made of all sealed bids received under the procedures of this section, and shall contain information relative to all bidders, including a recommendation by the affected department head and the city manager as to which bidder is recommended to be the lowest responsible bidder.
7. The city council shall award. or may reject, all purchases or contracts developed under the procedures of this section and proposed to be awarded pursuant to this section.
8. All bid calls shall contain a statement that the city council may reject any and all bids for any goods or service, and may cancel any call for bids at any time in the process.
9. At the option of the city manager an alternate purchasing and contracting procedure may be followed for any specific purchase or construction contract bid process, which procedure would follow California Government Code Section 54205, or appropriate Public Contract Code provisions, but without compliance with the dollar limits of said Government Code or Public Contract Code sections. The use of such alternate procedure shall be solely discretionary by the city council or city manager, and generally will not be followed, merely being an optional procedure which might be utilized, if desired.

(Ord. 482 § 3 (part), 1996)

The acquisition of copyrighted and/or patented items and services for which there is no reasonable alternative which is of equal to or of better quality or nature shall be made by following the procedures set out in this section.

1. The purchase order or contract award for such professional or specialized services or materials shall have a copy of a statement attached thereto by both the vendor or contractor and the city manager stating the reasons and the specific copyright or patent circumstances which have given rise to the invoking of this exception to the competitive acquisition process set out in this chapter. The original of such statement shall be fIled with the city clerk.
2. Professional or specialized services which involve a qualitative judgment in addition to qualitative and dollar amount shall be involved when the procedure set out in this section is utilized.
3. When this exception to the competitive purchasing and contracting procedures set out in this chapter is utilized, a written finding shall be filed with the contract and the city clerk regarding the reason for such noncompetitive acquisition and, further, the process utilized in the selection of contractors to be interviewed, the interview process used, those firms contacted and interviewed, and the results of such interviews, cumulatively which shall have resulted in the decision to award the contract to which the contract was subsequently awarded.
4. The criteria utilized for exception to the competitive process of this chapter in subsections B and C of this section:
5. Shall be it requirement for specialized abilities and knowledge in addition to quality and price,
6. Shall not be utilized without the prior written approval of the city manager.
7. "Professional services" means work performed by specially trained and experienced persons, firms or corporations rendering professional services and advice such as accounting, auditing, financial advisory, securities underwriting, legal, medical, engineering, architectural, environmental, economic, real estate, insurance, appraisals, lobbying, public relations, ordinance codification and publication, or similar such highly specialized services.

(Ord. 482 § 3 (part), 1996)

All supplies, equipment, construction and services for federally assisted grant or loan programs shall be procured in accordance with Attachment O of OMB Circular No. A-102, contained in the Standards Governing State and Local Grantee Procurement.

(Ord. 483 § 3 (part), 1996)

The uSing department or agency shall inspect all goods and equipment, and:

1. Certify to the finance director that all goods and services received conform in quality and quantity with the specifications accompanying the purchase order for such goods and services.
2. Before payment is authorized, satisfactory receipt of goods and services must be certified as prescribed in the administrative regulations governing processing of purchase orders and contracts.

(Ord. 483 § 3 (part), 1996)

Without complying with other sections of this chapter, the purchasing officer may participate in, sponsor, conduct or administer a cooperative purchasing agreement for the procurement or any supplies, equipment, service or construction with one or more public procurement units, in accordance with an agreement entered into between the participants.

1. Such cooperative purchasing may include, but not limited to joint or multiparty contracts between public procurement units; and
2. Open-ended state public procurement contracts which are made available to the city.

(Ord. 482 § 3 (part), 1996)

The provisions of this chapter may be waived when the following circumstances exist:

1. During emergencies which have been declared by a unanimous vote of the city council, or by order of the Governor or President, which emergency shall encompass the city and/or its services.
2. An emergency determined by the city manager and the purchasing officer if:
3. There is a great public calamity; or
4. There is immediate need to prepare for national or local defense; or
5. There is a breakdown in machinery, equipment or essential service which requires immediate purchase of supplies and equipment to protect public health, welfare or safety; or
6. An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchase would cause an undue delay in procurement of the needed item or service.
7. A statement of the nature of the declared emergency shall be attached to each purchase order issued pursuant to the provisions of this section.
8. The purchasing officer is authorized to make emergency purchases for all supplies. equipment and services which cost ten thousand dollars or less, the city manager is authorized to make such purchases which cost twenty-five thousand dollars or less, but the city council shall authorize any such purchases in amount exceeding twenty-five thousand dollars.

(Ord. 482 § 3 (part), 1996)

To promote the economic health of the city and to encourage local participation in the city procurement process, the city, in determining the lowest responsible bidder, may take into consideration the sales tax which would be returned to the city, as well as reduced delivery costs, service and any other savings features that are known of as a result of the award to a bidder who has an established place of business within the Lindsay city limits.

(Ord. 482 § 3 (part), 1996)

Selected commodities with recurring high usage rates may be stocked and issued from central stores under the direction and control of the purchasing officer.

1. The purchasing officer shall examine usage rates for various commodities and, in coordinating with using department, expend or reduce the quantities and types of items in such central stores.
2. Central stores items shall be replenished as needed from the purchasing revolving account through regular purchasing procedures.
3. Inventory levels of commodities on hand in central stores shall be determined by the purchasing officer, based on economic and demand factors.
4. Detailed instructions for ordering and accounting methods for such central stores shall be set forth in administrative regulations governing such operation.

(Ord. 482 § 3 (part), 1996)

Purchase of supplies and equipment and the award of public works contacts shall be made in accordance with prescribed administrative regulations governing the preparation and issuance of purchase orders. Except as otherwise prescribed in this chapter, the .administrative regulations the preparation and issuance of purchase orders. Except as otherwise prescribed in this chapter, the administrative regulations governing purchasing and contracting shall establish responsibilities for the signing and processing of purchase orders, and no exceptions may be made unless specifically provided for in such regulations.

(Ord. 482 § 3 (part), 1996)

All using departments or agencies shall file detailed estimates of their requirements for supplies and equipment in such a manner, at such a time, and for such future periods as the purchasing officer may request.

(Ord. 482 § 3 (part), 1996)

Each using department or agency shall submit at least annually to the purchasing officer, or more often if required, in the form and manner he shall prescribe, reports describing all supplies, equipment, materials, fixtures and other personal property of the city in the custody of the department or agency which personal has become obsolete or unserviceable.

1. Subject to the provisions of subsection E of this section, the purchasing officer is authorized from to sell or to exchange any and all such supplies or unserviceable equipment, materials, fixtures and other personal property of the city, including trade-in value if such property is to be replaced.
2. The purchasing officer may sell for the best price obtainable on the open market or, when he deems it advisable, to the highest bidder at public sale, or he may exchange such surplus property for credit on other property.
3. In the event the purchasing officer determines that any such obsolete or surplus property has no salvage value he may dispose of it as he deems advisable.
4. All sales of such surplus or obsolete personal property shall be for cash or certified check or money order payable to the city.
5. The purchasing officer shall have authority to sign bills of sale and any other papers or documents for and on behalf of the city evidencing transfer of title of the property.
6. Prior to disposing of any obsolete or surplus personal property having an apparent market value in excess of twenty-five thousand dollars the purchasing officer shall inform the city council of the nature of the personal property proposed for disposition and the price offered and shall obtain the council's approval for such disposition.

(Ord. 482 § 3 (part), 1996)

The city manager may determine which public works projects may be performed by city forces, or what portions of any public works project which is to be bid to be performed by city forces and thus excluded from such bid process.

1. Such determination shall be made by the city manager after consultation with the appropriate city department head, and shall take into consideration the skills and abilities, wage and benefit rates, and time availability of the specific city employees who would be involved in such specific public works project.
2. Reasons for the decision made by the city manager shall be filed with the bid documents should such project be performed in part by city forces, and in the construction files for the project should such public works project be performed in whole by city forces.

(Ord. 482 § 3 (part), 1996)

Each public works project proposed to be put to sealed bid pursuant to the procedures set out in Section 3.04.090 of this chapter shall have as a part of such bid call a statement by the city manager as to the requirement for the payment of wage rates by bidders, any geographic coverage of such proposed wage rates, and any other appropriate guidelines and restrictions on the payment of wages by prospective contractors to their employees.

1. Insofar as is possible, bidders which agree to employ persons to work on specific project bids are being submitted, and such employed persons live within the city limits of the City of Lindsay, then those bidders shall be provided preference in the award of bids by the city.
2. Bidders who have their headquarters within the city limits of the City of Lindsay, who pay a business license tax to the city, and who agree to employ persons resident within the City of Lindsay, shall be provided added preference in the award of public works contracts by the city, insofar as is possible.

(Ord. 548, § 1,2015; Ord. 482 § 3 (part), 1996)

Purchase contracts to supply the city's needs may be entered into for up to three years for specified types and groupings of goods or services, provided that the procedures of this chapter are complied with.

(Ord. 482 § 3 (part), 1996)

Purchases may be made via electronic data transfer of data, provide the intent and substance of the requirements of this chapter are met.

(Ord. 482 § 3 (part), 1996)

All contracts for the construction of a public works project in an estimated amount of seventy-five thousand dollars or greater shall require the furnishment of security for completion of the project and the payment of labor, materials and equipment.

1. The provisions of Chapter 5 of Division 2 of Title 7 of the California Government Code (Sections 66499 through 66499.10) as the same now reads or is hereinafter amended shall govern the kind of security (G.C. Section 66499); the form of bond (G.C. Sections 66499.1 and 66499.2); the amount of security (G.C. Section 66499.3); the costs, expenses, and fees included in the amount of the security (G.C. Section 66499.4); the provisions for reduction of improvement security (G.C. Section 66499.5); exemption of security from enforcement of money judgment (G.C. Section 66499.6); release of security (G.C. Section 66499.7); restriction on release of security (G.C. Section 66499.8); limitation on security liability (G.C. Section 66499.9); and party against whom suit on security maintained (G.C. Section 66499.10).
2. Such Government Code provisions are incorporated in this section of this chapter by reference, as set forth herein.

(Ord. 520 § 1,2006; Ord. 482 § 3 (part), 1996)

Changes in the general method or policy of purchasing and contracting by the city and the operation of central stores shall be made only by amending this chapter. Changes affecting only the details or forms used in the administration of these provisions concerning purchasing officer or city manager as administrative revision to the pertinent procedural regulations.

(Ord. 482 § 3 (part), 1996)

"Lowest responsible bidder" means the lowest bidder whose offer best responds in quality, fitness and capacity to the requirements of the proposed work or usage, as specified. In determining the lowest responsible bidder the following shall be considered, in addition to price:

1. The quality of supplies offered;
2. The ability, capacity and skill of the bidder to perform the contract or to provide the supplies or services required;
3. Whether the bidder can perform the contract or provide the supplies or services promptly, or within the time specified, without delay or interference;
4. The sufficiency of the bidder's financial resources and the effect thereof on his ability to perform the contract or to provide the supplies or service;
5. The character, integrity, reputation, judgment, experience, and efficiency of the bidder;
6. The quality of the bidder's performance on previous orders or contracts for the city;
7. Litigation by the bidder on previous orders or contacts with the city;
8. Previous and existing compliance by the bidder with local laws and ordinances relating to the subject of the purchase or contact;
9. The ability of the bidder to provide future maintenance and service where such maintenance and service is essential.

(Ord. 482 § 3 (part), 1996)