Chapter 3.20 — PURCHASING SYSTEM

Editor's note— Ord. No. 1849, § 2, adopted Sept. 7, 2011, repealed the former Ch. 3.20, §§ 3.20.010— 3.20.150, and enacted a new Ch. 3.20 as set out herein. The former Ch. 3.20 pertained to similar subject matter and derived from Ord. 1763, § 2(part), adopted 2005.

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, the city's purchasing system is set forth in this chapter.

(Ord. No. 1849, § 2, 9-7-2011)

As used in this chapter the following terms shall have the following respective meanings:

A.

"Best value" is associated with determining the greatest worth and benefit to the city based on a number of factors, including

Cost;

Quality of the product or service;

Delivery lead time;

Ability of the manufacturer or contractor to provide services, supplies, or equipment as required, and parts, repairs, maintenance and support after the sale;

The character, integrity, reputation, judgment, and experience of the manufacturer, contractor, or supplier.

B.

"Bid" may mean a competitive sealed (formal) bid processed in accordance with Section 3.20.100, or an informal bid processed in accordance with Section 3.20.110 herein.

C.

"Contract" means a written or oral agreement to expend money on a product or service including but not limited to purchase orders, formal contracts, invoices, and oral orders.

D.

"Department" or "using department" means any of the departments of the city government.

E.

"Emergency" shall mean an unforeseen circumstance or combination of circumstances calling for immediate action to procure materials, supplies, equipment, or services in order to make repairs, safeguard lives or property, or maintain public health or welfare, as a result of extraordinary conditions created by war, disease, weather, fire, or other catastrophic or unforeseen occurrence, or imminent or actual failure of any plant, equipment, structure, street, or public work.

F.

"Equipment" shall mean items of property which are maintained on inventory as fixed assets. These items are durable and have a fixed, predetermined life expectancy.

G.

"Professional services," as used in this section, shall mean all services which (1) are of an advisory nature, (2) provide a recommended course of action or personal expertise, or (3) have an end product which is basically a transmittal of information either written or verbal and which is related to the governmental functions of city administration and management and city program management or innovation, and which are obtained by awarding a services contract, a grant, or any other payment of funds for services of the above type. In general, "Professional services" are provided by qualified professionals in such disciplines as accounting, architectural, engineering, environmental, financial, legal, and medical fields.

H.

"Professional services agreement" means the agreement entered into between the service provider and the city for services, as opposed to goods and materials, in a form created by the city attorney.

I.

"Public project" shall mean a project for the erection, improvement, painting, or repair of public buildings and works; work in or about streams, rivers, lakes, or embankments for protection against overflow; street, sewer, water, and electrical distribution system work except maintenance or repair; furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers. (Public Contract Code § 20161)

J.

"Purchases" shall mean legal transactions (including lease and rental) by which the city acquires supplies, equipment, materials, and contractual services.

K.

"Purchasing authority" shall mean any department head authorized to purchase or otherwise enter into contracts for the city under provisions of Part 3.20.040 herein.

L.

"Procurement cards" shall mean bank issued credit cards assigned to positions specified by resolution of the city council.

M.

"Responsible bid" shall mean an offer, submitted by a responsible bidder to furnish supplies, equipment, materials, or services in conformity with the bid instructions, specifications, delivery terms and conditions, and other requirements contained in the Invitation for Bids.

N.

"Responsible bidder" shall mean a bidder who is financially responsible and has the resources, judgment, skill, ability, capacity, integrity, and reliability required and necessary to perform the requirements set forth in the bids, and which will assure good faith performance.

O.

"Responsive bid" is a bid that conforms in all material respects to the invitation for bids.

P.

"Services" shall mean the furnishing of labor, time, or effort performed by specially trained and experienced persons, firms, or corporations rendering professional work and advice in such disciplines as the maintenance or repair of buildings or grounds, equipment or machinery, or other city-owned or operated property. Such term shall not include services rendered by city officers or employees, nor professional or technical services as defined elsewhere in this section.

Q.

"Shall" denotes the imperative.

R.

"Supplies" shall mean property, including but not limited to materials, required to perform a department's routine functions.

S.

"Technical services" shall mean design, installation, diagnostic, or repair services for electrical, electronic, data/telecommunications, mechanical, and/or control systems and their components. These services are distinguished from general repair and maintenance services by their requirements for technical training and/or professional certification.

(Ord. No. 1849, § 2, 9-7-2011)

There is established the position of purchasing officer. The purchasing officer shall be appointed by the city manager and shall be the head and have general oversight of the purchasing functions of the city. The duties of the purchasing officer may be combined with those of any other office or position.

(Ord. No. 1849, § 2, 9-7-2011)

The purchasing officer shall have the responsibility and authority to:

A.

Purchase or contract for supplies, services, and equipment required by any city department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing function of the city and such other rules and regulations as shall be prescribed by the city council or city manager;

B.

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

C.

Act to procure for the city the needed quantity and quality in supplies, services, and equipment at least expense to the city;

D.

Discourage uniform bidding (wherein bidders conspire to submit the same cost for a given job or tangible item), and endeavor to obtain as full and open competition as possible on all purchases;

E.

Prepare rules governing the purchase of supplies, services, and equipment for the city;

F.

Prepare and recommend to the city council revisions and amendments to this chapter;

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.

Oversee the inspection of all supplies, services, and equipment purchased to insure conformance with specifications;

J.

Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which may become unsuitable for city use;

K.

Maintain a bidders' list, vendors catalog file, and records necessary for the efficient operation of the purchasing function;

L.

The foregoing responsibilities and authorities may be delegated by the purchasing officer to departmental purchasing authorities (as defined herein) under this purchasing policy.

(Ord. No. 1849, § 2, 9-7-2011)

The city manager, in accordance with Lodi Municipal Code Section 2.12.060(T), may authorize in writing any department head (hereinafter "purchasing authority") to purchase or contract for, or to delegate to qualified staff members the authority to purchase or contract for specified supplies, services, and equipment independently; but shall require that such purchases or contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization.

(Ord. No. 1849, § 2, 9-7-2011)

The bidding process described in this chapter may be waived when advantageous for the city and authorized by the city manager for purchase of supplies, equipment, or contractual services awarded in accordance with formally adopted bidding or negotiation procedures approved by the governing boards of other California public agencies. Purchases or contracts in excess of the city manager's contract authority as defined by section 2.12.060(T) of this code shall require the approval of the city council.

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1998, § 2, 4-20-2022)

City departments shall submit requests for supplies, services, and equipment to the purchasing officer, or designee, electronically or by standard requisition forms, for the purposes and within the limits of funds appropriated therefore.

(Ord. No. 1849, § 2, 9-7-2011)

Purchases of supplies, services, equipment, and the sale of personal property shall be by bid procedures pursuant to sections 3.20.100 and 3.20.110. Bidding shall be dispensed with only (1) bid in cases of emergency as defined in this chapter, and therefore requires that an order be placed with the best available source of service or supply, (2) when the amount involved is less than ten thousand dollars (but competitive quotes shall be obtained if it is in the city's best interest to do so), (3) when the commodity can be obtained from only one vendor, due to (a) product standardization by resolution of the city council, or (b) need for branded replacement parts or supplies for equipment of like brand; (4) when professional or technical requirements preclude competitive bidding, pursuant to section 3.20.075 of this chapter, or (5) when the city council determines that the purchase or method of purchase would be in the best interests of the city.

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1998, § 2, 4-20-2022)

The following professional services contracts are specifically exempt from the advertising and bidding requirements of Section 3.20.070:

Contracts for:

Legal defense, legal advice, or legal services;

Architectural and engineering services, including, but not limited to construction management, aerial photography, laboratory, and material testing services;

Accounting and financial services;

Real estate appraisals;

Transportation services consultants;

Safety, environmental, or hazardous material consultants;

Workshops, seminars, and conferences;

Computer consulting services.

Such contracts shall be awarded on the basis of professional qualifications and experience, quality of service, past performance, and negotiated prices.

(Ord. No. 1849, § 2, 9-7-2011)

The city manager shall have the contracting authority set forth in Section 2.12.060(T) of this code.

(Ord. No. 1849, § 2, 9-7-2011)

Acquisition of electronic hardware and software shall be by negotiation, requests for proposal, or competitive bids, and award shall be based on 'best value' criteria as established by Section 3.20.15, under direction of the information systems manager, and set forth in the terms of the negotiation, Request for Proposals, or bid. Alternatively, purchase of electronic hardware and software may be made in accordance with Section 3.20.045. Electronic software purchases shall also be made in accordance with

the City of Lodi Administrative Polices - Information Systems - Section 5 Software Selection and Acquisition.

(Ord. No. 1849, § 2, 9-7-2011)

Purchases of supplies and equipment in an amount of ten thousand dollars or more shall be made only by written contract or by purchase orders. Purchase orders should not be used to procure services, except as noted in section 3.20.085.

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1998, § 2, 4-20-2022)

Services, as opposed to goods or materials, shall be procured using a professional services agreement as created, and revised as needed, by the city attorney. Purchase orders, with the appropriate terms, conditions, and insurance requirements, may be used in lieu of a professional services agreement when the nature of the service is that of a one-time service. On-going, recurring services shall be procured using a professional services agreement.

(Ord. No. 1849, § 2, 9-7-2011)

Except in cases of emergency, the purchasing officer or purchasing authority shall not issue any purchase order or otherwise contract for supplies, services, or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

(Ord. No. 1849, § 2, 9-7-2011)

Where a procurement involves the expenditure of state or federal grant funds the procurement process shall comply with such state or federal laws and authorized regulations which are mandatorily applicable and which are not presently reflected in this code.

(Ord. No. 1849, § 2, 9-7-2011)

Purchases of supplies, equipment, contractual services, public projects, and sales of personal property of an estimated value greater than the city manager's contract authority as defined by section 2.12.060(T) of this code shall follow the formal contract procedure:

A.

Specifications and plans shall be subject to review and approval by the city council prior to the solicitation of bids.

B.

The advertisement for bids will be conducted as provided for in the Government Code.

C.

Notice Inviting Bids. Notice inviting bids shall include a general description of the articles to be purchased or sold, or work to be performed, and shall state where bid forms and specifications may be secured and the time and place for opening of bids.

Published Notice. Notice inviting bids shall be published at least ten calendar days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.

Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list.

Internet Posting. The purchasing officer may also advertise pending bids for purchases or sales on the city's web page.

D.

Bidder's Security. When required by law or deemed necessary by the purchasing officer, bidder's security may be prescribed in the notice inviting bids. Bidders shall be entitled to the return of their bid security; except that a successful bidder shall forfeit all or part of his or her bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. Thereafter, if the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

E.

Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

F.

Rejection of Bids. In its discretion, the city council may reject any and all bids presented and, if it is in the city's best interest to do so, readvertise for bids.

G.

Award of Contracts. After evaluation of bids, contract shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter. In determining the lowest responsible bid, considerations shall include but not be limited to such factors as (1) whether any portion of the state sales tax payable on the article which is the subject of the bid will be rebated to the city by reason of awarding such contract to a person or firm domiciled within the city, (2) total life-cycle costs, and/or (3) residual value.

H.

Tie Bids. If two or more bids received are for the same total amount or unit price, with quality, service, and factors considered in section 3.20.100(E) above, being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the lowest bid determined by toss of a coin performed at a time as soon after the bid opening as is possible.

I.

Performance Bond. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessity to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the bidding documents.

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1998, § 2, 4-20-2022)

A.

Informal Bid Procedures. Public projects, as defined by the Public Construction Cost Accounting Act (Public Contract Code §§ 22000, et seq.) and 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.

B.

Contractor's List. The agency shall comply with the requirements of Public Contract Code Section 22034.

C.

Notice Inviting Informal Bids. Where a public project is to be performed which is subject to the provisions of this [section], a notice inviting informal bids shall be circulated using one or both of the following alternatives:

Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with section 3.20.105(B).

Notices inviting informal bids may be mailed 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/agency soliciting bids, provided however:

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

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1995, § 2, 4-6-2022)

A.

Generally. The city of Lodi suffers economically as evidenced by unemployment rates, and the Lodi city council supports improving the economic well being of the city by increasing employment opportunities for citizens of Lodi and the surrounding communities.

The city of Lodi periodically awards construction contracts, which employ significant numbers of employees in various trades, and many city and San Joaquin County residents possess the skills required of such construction efforts and are in need of employment.

B.

Local Hire:

Bidders on construction projects shall complete a bidder local hire information form and checklist. The form shall be submitted with all construction bids in excess of two hundred thousand dollars, which indicates the bidder's effort to employ local hire. A copy of the local hire information form and checklist is attached [by reference] as exhibit A and shall be included in all bid packages with an engineer's estimate over two hundred thousand dollars. Unless this provision conflicts with a state law, federal law, regulation, or funding requirement, bidders who fail to establish a good faith local hire effort shall be rejected as non-responsive.

In the event that two or more bids are the same and the lowest, the city shall award the contract to the bidder that made the most significant effort to employ local residents as indicated on the bidder local hire information form.

C.

Local Apprenticeship Program. Unless the provision would conflict with a state law, federal law, regulation, or funding requirements applicable to a particular contract for a public works project, city contracts for public works in excess of two hundred thousand dollars shall contain provisions pursuant to which each contractor or subcontractor shall make a good faith effort to employ apprentices who are enrolled in and

participating in an apprenticeship program serving the San Joaquin Valley and approved by the state department of apprenticeship standards. This apprenticeship requirement shall apply for each apprenticable craft or trade in which the contractor employs workers in performing any of the work under the contract. A contractor shall evidence its good faith effort by complying with California Labor Code Section 1777.5 and the implementing regulations and seeking apprentices from apprenticeship programs serving San Joaquin County.

A contractor employing apprentices pursuant to this section shall employ apprentices in a ratio consistent with the provisions of the California Labor Code.

This section shall not be construed to exempt a contractor from any otherwise applicable requirement imposed upon the contractor by federal or state law.

(Ord. No. 1857, § 1, 2-15-2012)

Editor's note— It should be noted that exhibit A is not set out at length herein but is on file and available for inspection in the office of the city clerk.

Purchases of supplies, equipment, contractual services and sales of personal property of an estimated value in the amount of the city manager's contract authority as defined by section 2.12.060(T) of this code or less may be made in the open market without observing the formal contract procedure prescribed by section 3.20.100.

A.

Minimum Number of Informal Bids or Quotations. Open market purchases shall, wherever possible, be based on at least three informal bids or quotations, and shall be awarded to the lowest responsible bidder.

B.

Request for Quotations. The purchasing officer or purchasing authority shall solicit informal written bids or quotations from prospective vendors by written request, by telephone or by electronic data interchange. Quotations or informal bids shall be in writing for amounts greater than ten thousand dollars.

C.

Quotations and written informal bids shall be submitted to the requestor, who shall keep a record of all quotations, bids, and open market orders for a period of one year after the submission of quotations or the placing of orders. This record, while so kept, shall be open to public inspection.

D.

The purchasing officer or purchasing authority may reject any and all informal bids, offers and quotations when, in his or her discretion, it shall be in the best interest of the city to do so.

(Ord. No. 1849, § 2, 9-7-2011; Ord. No. 1998, § 2, 4-20-2022)

No person shall willfully split a single transaction into two or more transactions for the purposes of evading the bidding requirements of this section. (Public Contract Code § 10329, 20163)

(Ord. No. 1849, § 2, 9-7-2011)

The purchasing officer or purchasing authority shall assure the inspection of supplies and equipment delivered, and contractual services performed, 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. No. 1849, § 2, 9-7-2011)

The purchase and disposition of fleet vehicles and other specific equipment governed by the city's fleet policies and procedures, as adopted by resolution of the city council, is exempt from the provisions of this chapter.

(Ord. No. 1849, § 2, 9-7-2011)

The city council shall select a vendor to provide procurement cards for use by city staff. Purchases in accordance with this policy shall be authorized to be paid for with such cards. The city council shall approve issuance of procurement cards to specified staff positions by resolution for the efficient operations of the city. Authorized limits for individual and aggregate transactions shall be in accordance with the transaction and contract limits set forth in this chapter. The purchasing officer shall be responsible for preparing rules and procedures governing the use of procurement cards.

(Ord. No. 1849, § 2, 9-7-2011)

If any department purchases or contracts for any supplies, equipment or contractual services made contrary to the provisions of this chapter, the purchase or contract shall be void and of no effect. The head of the department making the purchase transaction shall be personally liable for the amount of the purchase or contract, or, if already paid for out of city funds, the amount thereof may be recovered in the name of the city in appropriate action therefore.

(Ord. No. 1849, § 2, 9-7-2011)

Any person who violates, or permits a violation of this chapter is guilty of an infraction which may be punishable as provided in Chapter 1.08 of this code.

(Ord. No. 1849, § 2, 9-7-2011)