Los Alamitos Municipal Code Ch. 2.60 Purchasing System

Note: Prior ordinance history: Ords. 480, 485, 499, 578, 622, 12-01, 19-01 and 21-04.

In order to establish efficient procedures for the purchase of supplies, equipment, and services, to secure for the city supplies, equipment, and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to ensure the quality of purchases, a purchasing system is hereby adopted.

(Ord. 2023-04, 11/20/2023)

For purposes of this chapter, the following definitions shall apply:

"Estimated value"

the estimated total value as determined by the purchasing officer at the beginning of the procurement process for the proposed supplies, equipment, and services. When making this initial threshold determination, the purchasing officer shall make reasonable use of all available market data and pricing information to estimate the total cost to the city, inclusive of taxes, licenses, freight charges, installation charges, fees, and other consideration, for the proposed procurement. The purchasing officer shall not use the value of any anticipated exchange or trade-in amount to reduce the estimated value of the proposed procurement.

"Non-professional services"

means a contract for services not constituting professional services or public works projects subject to the City Charter and the California Public Contract Code.

"Professional services"

means a contract for services, other than services constituting public works projects, performed by specially trained persons or firms who provide services in connection with financial, economic, accounting, engineering, administrative or other matters involving specialized expertise or unique skills gained by formal studies or experience.

"Purchase order"

means a written authorization by the issuing party for the recipient to provide labor, materials or services for which the issuing party agrees to pay.

(Ord. 2023-04, 11/20/2023)

Except as otherwise provided herein, the procurement regulations, policies, and procedures set forth in this chapter shall apply only to the purchase of supplies, equipment, and services and shall not apply to public works construction projects. Procedures and processes for the procurement of public works construction contracts are subject to the City Charter and the California Public Contract Code.

(Ord. 2023-04, 11/20/2023)

There is hereby created the position of purchasing officer. The city manager shall be the purchasing officer. The city manager may delegate any of the powers and duties conferred upon him or her as purchasing officer to any other officer or employee of the city in accordance with Section 2.60.050. The purchasing officer shall:

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

B. Negotiate, approve, and execute, as well as recommend approval and execution of contracts for the purchase of supplies, equipment, and services;

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

D. Discourage uniform bidding and endeavor to obtain full and open competition on all purchases; provided, however, the purchasing officer may request bids based on brand name or specific make or model when he or she has made the determination that such specific makes or names are clearly in the best interest of the city. Such determination shall be made in writing and shall state the factors taken into account, including, but not limited to, the following:

1. Prior or existing use by the city of the brand or name,

2. Familiarity of the city's employees with the product,

3. Cost savings expected,

4. Spare parts or accessories on hand,

5. Elimination of the need for training on new equipment,

6. Unique adaptability of the brand or name to the city function which it will perform;

E. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

F. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and any other rules and regulations;

G. Coordinate the inspection of all supplies, equipment, and services purchased to ensure conformance with specifications;

H. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and recommend the disposition of all supplies and equipment which have become unsuitable for city use; and

I. Maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of purchasing functions.

(Ord. 2023-04, 11/20/2023)

The purchasing officer may delegate responsibility for administering purchasing policies and procedures to one or more department heads. A department head who has been delegated authority by the purchasing officer hereunder is referred to herein as a purchasing agent. The authorized purchasing agents and their contract authority must be approved in writing by the purchasing officer and maintained on file with the director of finance.

(Ord. 2023-04, 11/20/2023)

A. City Council. Purchases of supplies, equipment, and services with a contract value of more than $100,000 shall be awarded by written contract approved by the city council pursuant to the procedures prescribed in this chapter.

B. City Manager. The city manager is authorized to purchase supplies, equipment, and services with a contract value of up to $100,000, without prior approval of the city council, pursuant to the procedures prescribed in this chapter. The city manager shall promptly notify the budget standing committee in writing of any purchase of more than $80,000.

(Ord. 2023-04, 11/20/2023)

Except in cases of emergency, the city manager shall not issue any purchase order or contract for supplies, equipment, or services unless there exists an unencumbered appropriation in the adopted budget against which such purchases may be charged. The city manager has the authority to transfer unencumbered funds between and among city departments for the procurement of supplies, equipment, and services as necessary to implement the provisions of his chapter.

(Ord. 2023-04, 11/20/2023)

Purchases of equipment, supplies, and non-professional services with an estimated value of up to $10,000 may be made by the purchasing officer in the open market without observing the procedures set forth in Sections 2.60.090 and 2.60.100.

(Ord. 2023-04, 11/20/2023)

Purchases of equipment, supplies, and non-professional services with an estimated value of more than $10,000 and up to $100,000 shall be made by the informal procedures set forth in this section.

A. Request for Proposals. The requesting department shall solicit informal proposals by telephone or written request to prospective vendors.

B. Number Proposals. Whenever possible, and except as otherwise provided in this chapter, informal purchases shall be based on at least three informal proposals. Where, after a reasonable attempt has been made to solicit proposals no informal proposals are received, the purchase may be made in the open market.

C. Written Proposals. Informal proposals shall be submitted by vendors in writing to the purchasing officer, who shall keep a record of all informal proposals. This record, while so kept, shall be open to public inspection.

D. Award of Contract by Purchasing Officer. The purchase order or contract shall be awarded by the purchasing officer to the lowest cost proposer consistent with the best qualified vendor selection criteria set forth in Section 2.60.110.

E. Report to Budget Standing Committee. The city manager shall promptly notify the budget standing committee in writing of any informal purchase of equipment, supplies, or non-professional services made in accordance with this section with a contract value of more than $80,000.

(Ord. 2023-04, 11/20/2023)

Purchases of equipment, supplies, and non-professional services with an estimated value of more than $100,000 shall be made by the formal procedures set forth in this section.

A. Request for Proposals. An invitation for bids or request for proposals solicitation document shall be publicly noticed and made available to prospective vendors. The invitation for bids or request for proposals shall describe the requested supplies, equipment, or non-professional services in general terms, how to obtain more detailed information concerning the procurement, and state the time, place, and deadline for submission of proposals.

B. Published Notice. The invitation for bids or request for proposals shall be publicly noticed in any generally accepted manner, which includes on the city's official website. In addition, such notice may include publication in an adjudicated newspaper of general circulation, printed and published in the city, posting in at least three public places within the city that have been designated by resolution as the places for posting public notices, and/or a public bulletin board in City Hall.

C. Proposal Opening Procedure. Formal bids and proposals shall be submitted to the Purchasing Officer and shall be identified as formal competitive bids/proposals on the outside of the sealed envelope. The formal bids and proposals shall be opened in public at the time and place stated in the city's solicitation document. A tabulation of all bids/proposals received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the proposal opening.

D. Rejection of Proposals. At its discretion, the city council may reject any and all bids/proposals presented for any reason or for no reason, and may suspend, delay, or otherwise cancel the procurement, or may order the re-advertisement of the invitation for bids or request for proposals. If all formal bids or proposals are rejected and the city council resolves by a recorded majority vote of the total membership of the city council that the procurement can be performed more economically by force account, by informal procedures, or through open market purchases, then it may dispense with further formal competitive public bidding.

E. Tie Bids. If two or more formal bids or proposals received are the same and are the lowest, the city council may accept the one it chooses.

F. No Bids Received. If no bids or proposals are received, the purchase may be let in the open market or by the informal procedures set forth in Section 2.60.090, subject to city council approval.

G. Award of Contracts by City Council. Formal contracts shall be awarded by the city council to the lowest cost proposer, except as otherwise provided herein, consistent with the best qualified vendor selection criteria set forth in Section 2.60.110.

H. Defects, Irregularities, and Informalities. The city council may, in its sole discretion, waive any defect, irregularity, or informality in the formal bids or proposals or in the competitive procedures established in this section, and no such defect, irregularity, or informality shall void any contract entered into by the city.

I. Performance Bonds. The purchasing officer shall have authority to recommend that a performance bond or other form of security or guarantee be required before entering a contract in such amount as may be reasonably necessary to protect the best interest of the city. If the city council requires a performance bond or other form of security of guarantee, the form and amount of the bond, security or guarantee shall be described in the invitation for bids or request for proposals, and the performance bond, security or guarantee shall be in a form approved by the city attorney.

(Ord. 2023-04, 11/20/2023)

In determining the best qualified vendor, consideration is to be given to quality and performance of equipment or supplies to be purchased and/or the non-professional services to be provided by the vendor. Criteria for determining the best qualified vendor shall include, but not be limited to, the following:

A. The cost of the equipment, supplies or non-professional services;

B. The ability, capacity, and skill of the vendor to perform the contract and to provide the equipment, supplies, or non-professional services requested;

C. The ability of the vendor to provide the equipment, supplies, or non-professional services requested promptly or within the time specified, without delay, interference, or service interruption;

D. The ability of the vendor to demonstrate the attributes of trustworthiness, quality, fitness, capacity, and experience to satisfactorily perform;

E. The character, integrity, reputation, judgment, references, experience, and efficiency of the vendor;

F. The quality of vendor's performance history and record on previous purchases or contracts with the City;

G. The ability of the vendor to provide future maintenance, repair parts, and services for the use of the goods and supplies, equipment, or materials purchased; and

H. The ability of the vendor to demonstrate its prior, current, and continued compliance during the contract term with all applicable federal, state, and local laws, statutes, ordinances and all lawful orders, rules, and regulations promulgated thereunder.

(Ord. 2023-04, 11/20/2023)

The purchasing officer or requesting department shall inspect supplies and equipment delivered and evaluate contract services performed to determine their conformance with the specifications set forth in the purchase order or contract. The purchasing officer or requesting department shall have the right to waive any defect or informality. The purchasing officer or requesting department shall have the 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. 2023-04, 11/20/2023)

Purchases of supplies and equipment shall be made only by purchase order; provided, however, that any city department that maintains a city issued credit card may make purchases with such credit card of less than $2,500.

(Ord. 2023-04, 11/20/2023)

The procurement policies and procedures set forth in Sections 2.60.090 and 2.60.100 may be dispensed with and are not applicable, irrespective of their estimated value, in the following situations:

A. Sole Source. When supplies, equipment, or non-professional services are of a unique, sole source nature because of their quality, durability, availability, or fitness for a particular use and are available only from one source. A sole source procurement is a procurement where only one source is practicably available for the type of procurement required;

B. Proprietary Procurement. When the equipment, supplies, or non-professional services are proprietary. A proprietary procurement is a procurement where the desired good or service must be restricted to one manufacturer because the good or service is compatible with or is an integral component of existing equipment or products, is necessary to support a specific need of a program, is covered by patent or copyright, must yield absolute continuity of results, or is one with which a user has extensive experience and the use of any other similar good or service would require considerable reorientation and training. Under such circumstances, an equitable evaluation of comparable goods or services should be made showing that rejection of other goods or services is based solely on their failure to meet that need;

C. Emergency Purchases. When emergency conditions require the immediate purchase of equipment, supplies, or non-professional services from a known available source of supply. For purposes of this section, emergency purchases are those procurements that are required to prevent immediate interruption or cessation of necessary city services or to safeguard life, property, or the public health and welfare. In the event of an emergency, the purchasing officer may contract for equipment, supplies or non-professional services. The purchasing officer shall file promptly with the city council a report showing such emergency conditions and the necessity for such action, together with an itemized account of all expenditures; and

D. Purchases through other Public Agencies. When the city council or purchasing officer determines that another public agency or government entity, including, without limitation, the county of Orange, the state of California, and the Federal Government (hereinafter "the acquiring agency") has selected the vendor using competitive bidding procedures substantially the same as or similar to those normally utilized by the city for the acquisition of the desired equipment, supplies or services. If such a determination is made, the city council or purchasing officer, as applicable, may proceed to purchase the equipment, supplies or services at a price equivalent to that offered to the acquiring agency.

(Ord. 2023-04, 11/20/2023)

A. The procurement policies and procedures set forth in Sections 2.60.090, 2.60.100 shall not apply to contracts for professional services. The purchasing officer may award any contract for professional services when the total not to exceed contract amount is $100,000 or less. Any contract for professional services having a total contract amount of more than $100,000 shall be awarded by the city council.

B. The city manager shall promptly notify the budget standing committee in writing of any purchase of professional services with a contract value of more than $80,000.

C. Notwithstanding any provision in this chapter to the contrary, selection by the city for professional services shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required, and shall not be awarded solely on the basis of cost. The city shall consider price after the city is satisfied that the would-be person, company, corporation, contractor, consultant, or firm has demonstrated the competence and professional qualifications necessary for the satisfactory performance of the services required.

(Ord. 2023-04, 11/20/2023)