Lomita Municipal Code Ch. 6 Purchases and Supplies

Footnotes:

--- (1) ---

Editor's note— Section 1 of Ord. No. 772, adopted Dec. 10, 2014, repealed ch. 6 in its entirety and enacted new provisions to read as herein set out. Former ch. 6, §§ 2-6.01—2-6.22, pertained to similar subject matter, and derived from Ord. No. 586, §§ 1—20, adopted Nov. 17, 1997; Ord. No. 699, § 1, adopted April 2, 2007; Ord. No. 730, § 1, adopted May 17, 2010.

In order to establish efficient procedures for the purchase of supplies and equipment; to secure supplies and equipment for the city 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, a purchasing system is hereby adopted.

(Ord. No. 772, § 1, 12-10-14)

Pursuant to the provisions of this chapter, the city manager or his or her designee shall serve as the purchasing officer. Initially, the city manager designates the administrative services director to act as the purchasing officer to coordinate the purchasing process, however, in the absence of such a designation, the city manager shall perform this function.

The purchasing officer shall set forth in writing such administrative procedures and such other rules and regulations as shall be necessary to ensure that all supplies, equipment and service for all city departments are made in accordance with purchasing procedures prescribed in this chapter.

(Ord. No. 772, § 1, 12-10-14)

The procedure set forth in this chapter apply to purchases of supplies, services and equipment and are adopted pursuant to Government Code 54202. In addition, the procedures apply to the sale of personal property procured under the authority of the city. Nothing in this chapter shall apply to contracts for public projects defined in Public Contract Code Section 20161.

(Ord. No. 772, § 1, 12-10-14)

In its discretion, the city council may at any time, by a majority vote and without amending this chapter, waive purchasing procedures or alter these procedures to fit a specific purchase, when the waiver is not in violation of state law.

(Ord. No. 772, § 1, 12-10-14)

As a municipality it is good business to purchase from merchants based within the city, not only because of the physical proximity of the business which facilitates delivery and service, but because it adds to the city tax base and encourages cooperative working relationships throughout the community. To that end, the city will purchase supplies, equipment and services from local merchants whenever reasonable and practicable.

(Ord. No. 772, § 1, 12-10-14)

A centralized purchasing system is set forth in this chapter. The purchasing officer may authorize, in writing, any city department to purchase or contract for supplies and equipment independently of the purchasing officer. The purchasing officer shall require that the purchases or contracts be made in conformity with the procedures established by this chapter and shall further require periodic reports from the city department so authorized, on the purchases and contracts made under such exemption.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer shall set forth the method by which all purchases of supplies, equipment, and service is made. All procurement methods shall be in accordance with the regulation set forth in this chapter and proper documentation shall be maintained in the purchasing record for a minimum of one year from the date of the completed audit of the fiscal year in which the item is purchased.

(1) Capital equipment purchases.

a. Capital equipment is defined as any equipment purchased at a price of five thousand dollars ($5,000.00) or more, not including tax, delivery, installation or other charges and/or has a service life expectancy of more than one (1) year.

b. Capital equipment shall be tagged with a city identification number and placed on an inventory at the time of purchase and removed from said list at the time of disposal from city service. The inventory list shall include:

1. Item name and description.

2. Date of purchase.

3. Cost or value of item.

4. Identification number assigned.

5. Project date of replacement.

c. Purchases of replacement parts that will be installed underground or which will be installed in a vehicle or other equipment will not require a city identification tag if such is not feasible or practicable.

(2) Purchases under five thousand dollars ($5,000.00) shall be purchased by the most expedient method available with price comparisons from at least three (3) vendors whenever practical.

(3) Purchases equal to or greater than five thousand dollars ($5,000.00) but less than ten thousand dollars ($10,000.00) shall require three (3) documented verbal or written price quotes.

(4) Purchases equal to or greater than ten thousand dollars ($10,000.00) but less than twenty thousand dollars ($20,000.00) shall require a written price quote from at least three (3) vendors but will not require sealed bids, except at the discretion of the purchasing officer.

(5) Purchases equal to or greater than twenty thousand dollars ($20,000.00) will require a formal competitive bid, except as may otherwise be defined or allowed within this chapter.

(6) Negotiated bids and contracts shall be used for purchases valued at twenty thousand dollars ($20,000.00) or more, only if a formal competitive bid process would result in limited or non-response due to the nature of the purchase and/or the inability of suitable vendors to meet the requirements of a formal competitive bid process.

(7) Purchases valued at greater than five thousand dollars ($5,000.00) but less than twenty thousand dollars ($20,000.00) shall be approved by the city manager. Regardless of the method of procurement, city council approval and award shall be required for all transactions with a value equal to or exceeding twenty thousand dollars ($20,000.00), including the following types of purchasing transactions:

a. Formal competitive bids.

b. Cooperative purchases.

c. Negotiated bids and contracts.

d. Sole source purchases.

e. Special opportunity purchases.

f. Limited response bids receiving less than three (3) qualified bid responses.

g. Award to the lowest responsible vendor in which a local preference credit factor is applied.

(8) Non-budgeted purchases in excess of five thousand dollars ($5,000.00) may be solicited in whatever method most practical, but shall be presented to the city of council for approval prior to purchase.

(9) Exceptions to this section may be made pursuant to section 2-6.16 (sole source purchases).

(Ord. No. 772, § 1, 12-10-14)

Except as otherwise provided herein, purchases and contracts for supplies and equipment of estimated value equal to or greater than twenty thousand dollars ($20,000.00) shall be by formal competitive bid and shall be processed by a purchase order or written contract with the lowest responsible bidder, pursuant to the procedure prescribed herein:

(1) Notice inviting bids.

a. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be secured, the deadline time and place for receiving the bids and the time and place for publicly opening bids.

b. Circulation of notice. Notice inviting bids shall be mailed or delivered to not less than three (3) individuals, firms or corporations dealing in services, commodities or supplies described in the notice and shall be publicly noticed in a newspaper with a regular weekly circulation within the city.

(2) Bidder's security. When deemed necessary by the purchasing officer, bidder's security may be prescribed in the notices inviting bids.

(3) Acceptance of bids by purchasing officer. The purchasing officer shall not accept bids after the closing date and time set forth in the notice.

(4) Bid opening procedures. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the outside of the envelope. Bids shall be opened only in public at the time and place stated in the notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(5) Award to lowest responsible bidder. Consistent with this chapter and unless otherwise directed by the city council the bid shall be awarded to the lowest responsible bidder as defined herein.

(6) Additional purchases. If it is expected that the city will need to make additional purchases of a similar nature within a limited time-frame an additional purchase clause may be included in the specifications.

a. The terms and conditions for future purchases including the price or basis of price calculation and a specified extension date shall be included in the bid specification and in any contract entered into as a result of the bid process.

b. Such clause shall only be implemented with the mutual consent of both the city and the vendor.

(7) Rejection of bids. In its discretion, the city council may reject any and all bids presented, and after such rejection may at its discretion request new bids or authorize purchase on the open market.

(8) Performance bonds. The purchasing officer shall have authority to require a performance bond and labor and materials bond before entering into a contract in such amounts as it shall find reasonably necessary to protect the best interest of the city. If the city council requires bonds, the form and amount of the bonds shall be described in the notice inviting bids.

(Ord. No. 772, § 1, 12-10-14)

Purchases of supplies and equipment of an estimated value less than twenty thousand dollars ($20,000.00) may be made by the purchasing officer in the open market without observing the procedures prescribed by section 2-6.6. The following procedures shall apply:

(1) Price comparisons. Price comparisons through newspapers, telephone research or other usual and customary open market research method may be used to locate and secure the best price available for all purchases valued at less than five thousand dollars ($5,000.00).

(2) Minimum number of price quotes or bids. Open market purchases shall, whenever possible, be based on at least three (3) price quotes or bids, and shall be awarded to the lowest responsible bidder.

(3) Notice inviting price quotes or bids. The purchasing officer shall solicit price quotes or bids from prospective vendors by the most expedient method available including verbal, telephone, written, computer e-mail or facsimile request for all purchases with an estimated value of less than ten thousand dollars ($10,000.00).

(4) Written price quotes or bids. Written price quotes or bids shall be obtained for all purchases with an estimated value of twenty thousand dollars ($20,000.00) or greater.

(5) Sealed price quotes or bids. Sealed price quotes or bids for any purchase with an estimated value of twenty thousand dollars ($20,000.00) or greater may be required whenever the purchasing officer determines that it is necessary. In such case all sealed price quotes or bids shall be submitted to the purchasing officer who shall keep a record of price quotes received and any order placed as a result thereof of a period of one (1) year after submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection during regular business hours.

(6) [Exceptions.] Exceptions to this section may be made pursuant to section 2-6.16 (sole source purchases).

(Ord. No. 772, § 1, 12-10-14)

All bids secured under the provisions of sections 2-6.6 and 2-6.7 and equal to or greater than twenty thousand dollars ($20,000.00) shall be submitted to the city council for final approval, award, rejected or further action. Award, rejection or other action may be taken directly by the purchasing officer for all bids valued at less than ten thousand dollars ($10,000.00).

(Ord. No. 772, § 1, 12-10-14)

All procurements shall be awarded to the lowest responsible bidder except as exempted by the provisions of this chapter.

(1) The lowest responsible bidder shall be defined as the vendor who submits the lowest price quote in response to a city issued formal or informal bid, proposal or quote request and whose offer best responds in quality, fitness and capacity to meet the city's needs as stated in the specifications set forth in the price solicitation. Such determination may be made by a variety of methods, but shall take into consideration the initial cost of the purchase, cost of ongoing maintenance and service, projected date and cost of replacement of said item.

(2) The council may upon recommendation of the purchasing officer find and determine that a certain type, make, brand, special service, supply or piece or make of equipment is the most economical for use by the city event though a bid on similar merchandise, equipment or service is lower at initial cost. Since these economical factors could result in considerable long-range cost savings, the city council decision shall be final and conclusive. The council, after making such a determination, may authorize the purchasing officer to dispense with bids and purchase such items pursuant to city council direction.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer shall set forth written rules and procedures for a progressive appeal process to insure that all qualified vendors are provided a fair and competitive opportunity to do business with the city.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer shall inspect or cause to be inspected supplies and equipment delivered to determine their conformance with specifications set forth in the order or contract.

(Ord. No. 772, § 1, 12-10-14)

In the event of an emergency in which a purchase of supplies, equipment and/or service is necessary in order to correct an immediate problem or to prevent or halt the loss or injury of life, materials or property the provisions of this chapter may be dispensed with and purchases made by the most advantageous method available. Such purchases shall be presumed as authorized by this chapter. Once the emergency has passed, the individual who made the purchase shall immediately notify the purchasing officer and shall submit documentation of the expenditure and the nature of the emergency as may be requested by the purchasing officer.

(Ord. No. 772, § 1, 12-10-14)

Where purchases are to be made in collaboration with other governmental agencies, formal bid requirements as set forth in this chapter shall be waived and the purchasing officer shall be authorized to procure materials, supplies and services in cooperation with other government or public entities when it has been determined that said collaboration shall result in the purchase price being less than otherwise could be obtained or that delivery time and installation shall be expedited. Such purchases shall adhere as much as possible to regulations set forth in this chapter.

(Ord. No. 772, § 1, 12-10-14)

Sole source purchases may be made when it would be undesirable or impossible for the city to advertise for bids for particular work or for patented items, or experimental or unique services or products, or where competitive purchases would be unavailable or would not prove advantageous for the city. No sole source purchases may be made where to do so would show favoritism, improvidence, extravagance, fraud or corruption, or result in the waste of public funds, but may be used only to obtain the best economic result for the public. Sole source purchases shall be documented and submitted to the purchasing officer for approval.

(Ord. No. 772, § 1, 12-10-14)

Special opportunity purchases may be made by the purchasing officer in such instances that it is found that the proposed purchase price is either below the current market price, will result in monetary savings to the city, or will result in significant savings in time of delivery or time of installation. Special opportunity purchases shall be documented and submitted to the city council for ratification. The price comparison used to document the special opportunity purchase shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the award of the purchase.

(Ord. No. 772, § 1, 12-10-14)

Contracts for professional and specialized services by persons, firms, companies and corporations shall be made by request for proposal or a request for quote and shall not be required to comply with the formal competitive bid process. However, such contracts shall whenever feasible be based on a minimum of three (3) written responses to the solicitation.

(Ord. No. 772, § 1, 12-10-14)

When money from other than the general fund is used to make a purchase, the regulations of said funding source will be applied in concert with the regulations set forth in this Code. When the regulations set forth in the Lomita Municipal Code and the regulations set forth by the funding source provide conflicting definitions and requirements, the more restrictive regulation shall prevail, unless the city council has, prior to purchase, passed a resolution adopting the regulations of the funding source as the regulation to be applied.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer may establish separate petty cash funds within various city departments for use in making small dollar purchases and the purchasing officer shall set forth the funding level and method of accounting for all purchases made from such funds.

(Ord. No. 772, § 1, 12-10-14)

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services, or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. Nor shall the purchasing officer authorize the purchase of capital equipment not approved for purchase by the city council.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer may extend, renew, or modify a contract only in such cases as the terms have been defined and included in the original contract authorized and signed by the city council. When it is determined by the purchasing officer that it is in the city's best interest to extend, renew or modify a contract rather than soliciting new bids, the purchasing officer may present the justification to the city council and recommend that the contract be amended. The city council's decision shall be final.

(Ord. No. 772, § 1, 12-10-14)

The purchasing officer shall ensure that an inventory of all supplies and equipment purchased by the city is maintained and updated regularly.

(1) All departments shall submit to the purchasing officer, at such times and in such form as prescribed, reports showing all supplies and equipment which are no longer used, obsolete, or beyond repair.

(2) The purchasing officer shall have the authority to sell, exchange or otherwise dispose of all supplies and equipment, provided the item sold or disposed of does not have a current salvage value of more than five thousand dollars ($5,000.00) and cannot be used by any city department. Where applicable such sales shall be made in the same method as prescribed in this Code for the purchase of such items. City council authorization shall be required for the disposal of all items with a value equal to or exceeding five thousand dollars ($5,000.00).

(3) All departments shall inform the purchasing officer immediately of any suspected theft or destruction of supplies and equipment and file the appropriate criminal and/or insurance reports. The purchasing officer shall pursue as appropriate the replacement of said items.

(Ord. No. 772, § 1, 12-10-14)

Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:

(1) General.

a. "Act" means the Uniform Public Construction Cost Accounting Act found at California Public Contract Code section 22000 et seq. The Act is incorporated herein by reference as if fully set forth herein.

b. "Commission" means the California Uniform Construction Cost Accounting Commission created by division 2, part 3, chapter 2, article 2 of the California Public Contracts Code (commencing at section 22010).

c. "Public project" shall have that meaning provided in Section 22002(c) of the Act, as that section may be amended from time to time.

d. "Public project formal bidding procedure" means a procedure which meets the requirements of state and local law, including section 22037 of the Act, this chapter and any policies and procedures approved by the City Manager consistent with this chapter.

e. "Public Project Informal Bidding Procedure" means a procedure which meets the requirements of State and Local Law, including Section 22034 of the Act, this chapter and any policies and procedures Approved by the city manager consistent with this chapter.

f. "Purchasing officer" means the city manager or his or her designee.

(2) Bidding requirements—Public projects.

a. Small projects. Public projects that do not exceed the limit set forth in subd. (a) of section 22032 of the Public Contract Code, currently seventy-five thousand dollars ($75,000.00) as of 2025, may be performed by force account or negotiated contract.

b. Medium projects. Public projects that do not exceed the limit set forth in subd. (b) of section 22032 of the Public Contract Code, currently two hundred twenty thousand dollars ($220,000.00) as of 2025, may be let by public project informal bidding procedure.

c. Large projects. Public Projects that exceed the limit set forth in subd. (c) of section 22032 of the Public Contract Code, currently two hundred twenty thousand dollars ($220,000.00) as of 2025, may be let to contract by public project formal bidding procedure.

d. Award. Contracts for public projects subject to the public project informal bidding procedure or public project formal bidding procedure, if awarded, shall be awarded to the lowest responsive and responsible bidder, and if two (2) or more bids are the same and the lowest, the purchasing officer of city council, as applicable, may accept the one it chooses.

e. No bid splitting. The city shall not split a public project, work, service or purchase into smaller projects, works, services or purchases for the purpose of avoiding any bidding or contracting requirements of this Code.

f. Delegation of awarding authority. Pursuant to section 22034 of the Public Contract Code, the city council hereby delegates authority to the purchasing officer to award contracts that do not exceed the limit set forth in subd. (b) of section 22032 of the Public Contract Code, currently two hundred twenty thousand dollars ($220,000.00) as of 2025.

g. Exemptions. Notwithstanding any other provision of this chapter, the city may dispense with the procedures otherwise required by this chapter to the extent permitted by applicable law, including by way of illustration and not by limitation, when competitive bidding would work an incongruity, confer no advantage, or otherwise be contrary to the public interest.

(3) Public projects—Force account and negotiated contract.

a. Small projects. Public projects that do not exceed the limit set forth in subd. (a) of section 22032 of the Public Contract Code, currently seventy-five thousand dollars ($75,000.00) as of 2025, may be performed by the employees of a public agency by force account, by negotiated contract, purchase order, or alternative procedure.

(4) Public projects—Informal bidding procedure.

a. Uses of public project informal bidding procedure. This informal bidding procedure shall be used when a public project is involved and informal bidding is permitted by this chapter.

b. Contractor list. The purchasing officer may maintain a list of qualified contractors, identified according to categories of work, as described in section 22034(a) of the Act. The list shall be developed and maintained in accordance with criteria established by the commission.

c. Distribution of notice inviting informal bids. The purchasing officer shall provide a notice inviting informal bids. The notice inviting informal bids shall be mailed to either or both of the following:

1. All contractors on a qualified contractors list maintained pursuant to subsection b. of this section; and/or

2. All construction trade journals specified in section 22036 of the Act.

i. The notice inviting informal bids must be given not less than ten (10) calendar days before the bids are due.

d. Contents of notice inviting informal bids. At a minimum, the notice inviting informal bids shall:

1. Describe the public project in general terms;

2. State how to obtain more detailed information about the public project;

3. State the date, time and place for the submission of sealed bids; and

4. Include any other information required by state or local law, as determined by the city attorney.

e. Contents of remaining bid and contract documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the city attorney.

f. City's authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received.

g. No bids received. If no bids are received, the city may award the contract by force account or negotiated contract.

h. Award of contract. The contract shall be awarded, if at all, to the lowest responsible bidder. If two (2) or more bids are the same and the lowest, the city may accept the one it chooses.

(5) Public projects—Formal bidding procedure.

a. Uses of formal bidding procedure. This formal bidding procedure shall be used whenever formal bidding is required for a public project.

b. Required process. The formal competitive bidding procedure shall comply with all applicable aspects of state and local law governing formal competitive bidding, including, but not limited to, the California Public Contract Code, California Government Code, California Labor Code, resolutions of the city council as may be adopted from time to time, and policies and procedures as the city manager may approve from time to time.

c. Notice inviting formal bids. Notice inviting formal bids shall be provided. The notice inviting formal bids shall comply with section 22037 of the Act, as such section may be amended from time to time. Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the public project. At a minimum, the notice inviting formal bids shall:

1. Describe the public project;

2. State how to obtain more detailed information about the public project;

3. State the date, time and place for the submission of sealed bids; and

4. Include any other information required by state or local law, as determined by the city attorney.

d. Published notice. The notice shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the city, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the city.

e. Distribution of notice inviting formal bids. The notice inviting formal bids shall also be sent to those construction trade journals specified in section 22036 of the Act at least fifteen (15) calendar days before the date of bid opening.

f. Additional notice. The city shall also provide any additional notice as it deems proper.

g. City's authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received.

h. No bids received. If no bids are received, the purchasing officer may award the contract by any alternative procedure.

i. Award of contract. The contract shall be awarded, if at all, to the lowest responsible bidder. If two (2) or more bids are the same and the lowest, the city may accept the one it chooses.

j. Rejection of bids. The city may, in its sole and absolute discretion, reject any bids presented. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates for the public project, the city shall have the option of any of the following:

1. Abandon the public project; or

2. Readvertise for bids in the manner described in this chapter; or

3. By passage of a resolution by a four-fifths (⅘) vote of the city council, declare that the public project can be performed more economically by the employees of the city and have the public project done by force account.

(Ord. No. 875, § 2, 8-19-25)