Los Altos Municipal Code Ch. 2.20 Purchasing System

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

(Prior code § 2-4.01)

A.

The city manager is designated as the purchasing officer of the city and shall have the following powers and duties:

Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt, and such other rule and regulations as shall be prescribed by the council or the city manager;

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

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

Discourage uniform bidding and endeavor to obtain as full and open completion as possible on all purchases;

Prepare and recommend to the council rules governing the purchase of supplies and equipment for the city;

Prepare and recommend to the council revisions and amendments to the purchasing rules;

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

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

Supervise the inspection of all supplies and equipment purchased to insure conformation with specifications;

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 agency or which have become unsuitable for city use; and

Maintain a bidders' list, vendors' catalog file and records need for the efficient operation of the purchasing department.

B.

The city manager shall have the authority to delegate purchasing duties to any department or person he may desire.

(Prior code § 2-4.02)

Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms.

(Prior code § 2-4.040

Purchases of supplies and equipment shall be by procedure pursuant to Sections 2.20.070 and 2.20.080 of this chapter. Bidding shall be dispensed with only when an emergency requires that an order be placed

with the nearest available source of supply, when the amount involved is less than an amount to be set by the council by resolution, or when the commodity can be obtained from only one vendor.

(Prior code § 2-4.05)

Purchase of supplies, equipment, or services shall be made by purchase order, contract, petty cash, claim form or other procedure specified by the city manager.

(Prior code § 2-4.06)

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

(Prior code § 2-4.07)

Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than an amount to be set by the city council by resolution, shall be by written contract with the lowest reasonable bidder pursuant to the following procedure:

A.

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

Published notices. Notices inviting bids shall be published at least ten (10) days before the date of opening the bids. Such notices shall be published at least once in a publication deemed appropriate by the purchasing officer.

Bidders' list. The purchasing officer shall solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list or who have requested their names to be added thereto.

B.

Bidders' security. When deemed necessary by the purchasing officer, bidders' security may be prescribed in the public notices inviting bids. Bidders shall be entitled to the return of bid security; provided, however, a successful bidder shall forfeit his bid security upon his refusal or failure to execute a contract within ten (10) days after the notice of the award of the contract has been mailed, unless the city is responsible for the delay. The council may award the bid to the next lowest responsible bidder on the refusal or failure of the

successful bidder to execute a contract. If the 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.

C.

Bid opening procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. The bids shall be opened in public at the time and place stated in the public 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.

D.

Rejection of bids. In its discretion, the council may reject any and all bids presented and re-advertise for bids.

E.

Award of contracts. A contract shall be awarded by the council to the lowest responsible bidder, except as provided in this chapter. After city council approval all contracts and other documents may be executed on behalf of the city by the city manager.

F.

Tie bids. If two or more bids received are the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the council may accept the bid it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

G.

Performance bonds. The council shall have the authority to require a performance bond in such amount as the council shall find reasonably necessary to protect the best interests of the city before entering into a contract. If the council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

(Prior code § 2-4.08)

Purchases of supplies and equipment including installation and maintenance thereof, not exceeding an estimated value to be set by the city council by resolution may be made by the purchasing officer in the open market pursuant to the following procedure:

A.

Minimum number of quotations. Wherever possible, open market purchases shall be based on at least two quotations and shall be awarded to the lowest responsible quoter.

B.

Notices inviting quotations. The purchasing officer shall solicit quotations by written requests to prospective vendors or by telephone.

C.

Written quotations. Written quotations shall be submitted to the purchasing officer who shall keep a record of all open market orders and quotations for a period of two years after the submission of quotations or the placing of orders. Such records, while so kept, shall be open to public inspection.

(Prior code § 2-4.09)

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

(Prior code § 2-4.10)