Livingston Municipal Code Ch. 11 Purchase Policies and Procedures

(A) In conformance with Cal. Gov’t Code Title 5, Division 2, Part 1, Chapter 5, Article 7, § 54203 the city shall adopt by ordinance, policies and procedures, including bidding regulations, governing purchases of supplies and equipment by the city.

(B) As per § 1-6-5(D) of this title, the authority is given for the establishment of a purchasing policy.

(Ord. 331, passed 5-19-1987)

The purchasing system is hereby established in order:

(A) To establish efficient procedures for the purchase of city supplies, materials, equipment and contractual services at the lowest possible cost commensurate with quality needed;

(B) To exercise financial control over purchases; and

(C) To clearly define authority and procedure for the purchasing function.

(Ord. 331, passed 5-19-1987)

The purchasing system shall be the responsibility of the Finance Department of the city under the supervision of the City Manager/Director of Finance.

(Ord. 331, passed 5-19-1987)

The City Manager/Director of Finance or designee, shall have the following responsibilities:

(A) For the administration of all rules and regulations established by this chapter;

(B) Make and execute contracts on behalf of the city, involving budgeted or appropriated expenditures;

(C) May authorize any department to purchase budgeted operational supplies, materials, equipment and contractual services, provided that such purchases or contracts shall be made in conformity with the procedures established by this chapter. All purchases, however, shall be subject to review and control of the City Manager/Director of Finance;

(D) Is responsible for assuring written specifications for supplies, materials, equipment and contractual services as may be needed to conform with good purchasing practices;

(E) Must authorize expenditures for each purchase over $500;

(F) Strive to obtain all federal and other tax exemptions to which the city is entitled; and

(G) With approval of the Council, join with the state and other units of government in cooperative purchasing plans when the best interest of the city would be served thereby.

(Ord. 331, passed 5-19-1987)

All purchases in excess of $10,000 are subject to formal sealed bid procedures and must be publicly advertised.

(A) Notice inviting bids.

1. The notice inviting bids must be published in a newspaper of general circulation in the city by one or more insertions, the first of which must be at least seven days before the time of bid opening. The notice shall include a general description of the supplies, materials, equipment and contractual services to be purchased, state where bid blanks and specifications may be secured, and the time and place for bid opening.

2. Whenever feasible, copies of the bid proposal shall be sent to prospective vendors and contractors in an attempt to encourage as wide a response as possible.

(B) Bid deposits.

1. Where required by the city and when not so required but deemed necessary or desirable by the City Manager/Director of Finance, all bids shall be accompanied by either a certified or cashier’s check, or a bidder’s bond executed by a corporate surety authorized to engage in such business in California, made payable to the city. Such security shall be in an amount not less than that specified in the notice inviting bids or in the specifications referred to therein, or if no amount is specified by the notice inviting bids, then in an amount not less than 10% of the aggregate amount of the bid. If the successful bidder neglects or refuses to enter into the contract to provide supplies, materials, equipment or contractual services according to specifications referred to therein, the amount of the bidder’s security shall be declared forfeited to the city, and shall be collected and paid into its general fund, and all bonds forfeited shall be prosecuted and the amount thereof collected and paid into such fund.

2. All bids not submitted with the required deposit shall be rejected. Unsuccessful bidders shall be entitled to the return of deposits when such have been required.

(C) Sealed bids. Bids shall be sealed, shall be identified as bids on the envelope, shall be submitted at the place and no later than the time stated in the public notice inviting bids, and shall be opened publicly at the time and place stated in the public notice. Bids received after the stated time shall not be accepted and shall be returned to the bidder unopened.

(D) Council may reject bids. The Council shall have the authority to accept or reject any or all bids, or to waive any informalities or minor irregularities in a bid. The Council, after rejecting bids, or if no bids are received, may declare and determine that, in its opinion, based on estimates approved by the City Manager/Director of Finance, the purchase in question may be made without a formal bid procedure and, after the adoption of a resolution to this effect by at least five affirmative votes of the Council, may proceed to have said purchase made in the manner stated without further observation of the provisions of this section.

(E) Lowest responsible bidder. In addition to price in determining the “lowest responsible bidder”, consideration will be given to quality and performance of the commodity to be purchased, or service provided by the seller. Criteria for determining the low bid shall include, but not be limited to, the following:

1. The ability, capacity and skill of the bidder to provide the supplies, materials, equipment or contractual services as required;

2. The ability of the bidder to provide the supplies, materials, equipment or contractual services within the time specified;

3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4. The quality or performance of previous purchases from said bidder; and

5. The ability of the bidder to provide future maintenance, repair parts and services for the use of the commodity purchased.

(F) Faithful performance bond. When the specifications so provide, the successful bidder shall furnish surety in the form of certified or cashier’s check, corporate surety bond or savings and loan certificate for faithful performance of the contract.

(Ord. 331, passed 5-19-1987)

Formal bid procedures of items over $10,000 can only be waived if the purchase is:

(A) Of urgent necessity for the preservation of life, health or property;

(B) Waived by Council resolution passed by at least four affirmative votes; and/or

(C) Available from only one source. Sole source procurement must be adequately justified.

(Ord. 331, passed 5-19-1987)

All purchases of $10,000 or less shall be based, when feasible and when in the best interest of the city, on at least three competitive quotations, written or verbal, and shall be awarded to the lowest responsible bidder. Sole source justification for awards shall be prepared by the requesting department subject to acceptance by the City Manager/Director of Finance. Preference for one particular brand may be challenged unless evidence can be supplied as to the benefits to the city of limiting procurement to a specific brand.

(Ord. 331, passed 5-19-1987)

Any officer of the city or any department thereof who shall aid or assist a bidder in securing a contract to furnish supplies, materials, equipment or contractual services at a higher price than that proposed by any other bidder, who shall favor one bidder over another by giving or withholding information, or who shall willfully mislead any bidder in regard to the character of the materials or supplies called for, or who shall knowingly accept commodities of a quality inferior to those called for by the contract, or who shall knowingly certify to a greater amount of labor performed than has actually been performed, or to the receipt of a greater amount or different kind of materials or supplies than have actually been received, shall be deemed guilty of malfeasance and shall be removed from office.

(Ord. 331, passed 5-19-1987)

If at any time it shall be found that the person to whom a contract has been awarded has in presenting any bid or bids, colluded with any other party or parties for the purpose of preventing any other bid being made, then the contract so awarded shall be null and void.

(Ord. 331, passed 5-19-1987)

Contractual services will not include the following, which will be exempt from the bidding requirements:

(A) Contracts involving the obtaining of professional or specialized skills such as, but not limited to, services rendered by attorneys, architects, engineers, accountants and specialized consultants;

(B) When calling for bids on a competitive basis in the opinion of the City Manager/Director of Finance is undesirable, impossible, unavailing or incongruous; and

(C) Where the City Manager/Director of Finance’s requirements can be met solely by a single patented article or process.

(Ord. 331, passed 5-19-1987)