Los Banos Municipal Code Art. 3 Methods of Procurement—commodities, Equipment and General Services

Procurements, the cost of which are Five Thousand and No/100ths ($5,000.00) Dollars or less in any one transaction, shall be made using simplified and cost-effective operational procedures without the required use of formal or informal bids. However, if there is a benefit to the City, competitive bidding should be used whenever practical.

(§ 1, Ord. 1068, eff. February 1, 2008)

(a) Informal bid procedure. The purchase of commodities equipment and general services greater than Five Thousand and No/100ths ($5,000.00) Dollars to Thirty Thousand and No/100ths ($30,000.00) Dollars or less, may be made in the open market, following the procedure prescribed below:

(1) Minimum number of quotations. Open-market purchases shall, whenever possible, be based on at least three quotations and shall be awarded to the lowest responsible quotation;

(2) Notice inviting quotations. The department making the purchase shall solicit quotations by written (including e-mail) or verbal request to prospective vendors;

(3) Quotations. Quotations shall be submitted in writing (including facsimile and e-mail) to the department, which shall keep a record of all open-market orders and quotes for a period specified in Section 3-10.070. This record is open for public inspection;

(4) Award of contracts. The City Manager is authorized to award a contract of Thirty Thousand and No/100ths ($30,000.00) Dollars or less when the City Council has budgeted funds for the item(s) and the amount of the award is not more than the budgeted amount.

(b) Exceptions. The open-market procedure may be dispensed with in accordance with provisions set forth in Section 3-10.250.

(§ 1, Ord. 1068, eff. February 1, 2008)

(a) Formal contract procedures. The City shall purchase commodities, equipment and general services of a value greater than Thirty Thousand and No/100ths ($30,000.00) Dollars following the formal bid procedure prescribed below:

(1) Notice inviting bids. The notice inviting bids shall include a general description of the articles or general services to be purchased, and shall state where bid forms and specifications may be secured and the time and place for opening bids.

(A) Published notice. The notice inviting bids shall be published at least 10 days before the date of the opening of the bids. Notice shall be published at least once in a newspaper of general circulation.

(B) Bidders' list. The City shall also solicit sealed bids from responsible prospective suppliers whose names are on a bidders' list.

(2) Bidders' security. When deemed necessary, the City shall require bidders' security. Bidders' security shall be in accordance with the provisions of the California Public Contract Code.

(3) Bid opening procedure. Bidders shall submit sealed bids to the City Clerk and shall identify them as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

(4) Rejection of bids. At its discretion, the City Council may reject any and all bids presented, and may re-advertise for bids.

(5) Award of contracts. The City Council shall award a contract for the purchase of commodities or equipment or general services with a value more than Thirty Thousand and No/100ths ($30,000.00) Dollars. A contract shall be awarded to the lowest responsible bidder, except as otherwise provided here. A contract may be awarded to the next lowest responsible bidder if the successful bidder refuses or fails to execute the contract.

(6) Tie bids. If two or more bids received are for the same total amount of unit price and quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Manager or City Council may accept the one it chooses, or accept the lowest good faith offer by negotiation with the tie bidders.

(7) Performance bonds. The City has the authority to require a performance bond before entering a contract, in such amount as is reasonably necessary to protect the best interest of the City. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.

(b) Exceptions. Bidding under this section may be dispensed with in accordance with provisions set forth in Section 3-10.250.

(§ 1, Ord. 1068, eff. February 1, 2008)

(a) Applicability. A purchase may be had by negotiations when the purchase is for:

(1) A technology product as defined in Section 3-10.020;

(2) An addition to, repair to, or, maintenance of existing equipment which can be more efficiently added to, repaired or maintained by a particular company or manufacture;

(3) Equipment which must be compatible with existing equipment, by reason of the training of the personnel or, an inventory of existing replacement parts kept by the City.

(b) Competitive negotiation.

(1) Request for Proposals. Proposals are requested from a minimum of three vendors. The notice inviting proposals shall be published at least 10 days before the date of the opening of the bids if the value of the product is expected to reach more than Thirty Thousand and No/100ths ($30,000.00) Dollars. Notice shall be published at least once in a newspaper of general circulation. The request for proposals must identify all of the significant evaluation factors, including cost and their relative importance.

(2) Receipt of proposals. Sealed proposals must be submitted by the date and time specified on the notice inviting proposals and shall be identified by the Request for Proposal number.

(3) Negotiation. The most qualified and responsive proposer will be selected for contract negotiations. If agreement cannot be reached with the first proposer, the second choice proposer (and then the third and so on) will be contacted with the first choice proposer (or other proposers, in order) dismissed from further consideration on that particular project. All elements of the negotiation process shall be documented by the negotiating department and submitted to the City Manager. Responsible proposers shall be accorded fair and equal treatment with respect to opportunity for discussion and revision of proposals. Any revisions are permitted after submission in writing and prior to the award of a contract.

(4) Award and notification. A contract award in accordance with Article 2 of this chapter may be made to the responsible proposer whose proposal will be best for the City considering evaluation factors outlined in Section 3-10.240 of this chapter. All proposers participating in the process shall be notified in writing of the successful award.

(c) Noncompetitive negotiations. When there is only one source, purchase can be made through solicitation and negotiation directly with that source. The affected department head shall state in writing that basis for the determination that this subsection applies, and before any purchase is made, that determination must be approved in writing by the City Manager.

(§ 1, Ord. 1068, eff. February 1, 2008)

In determining the lowest responsible bidder, the following shall be considered in addition to price:

(a) Quality of the materials, supplies and/or equipment offered;

(b) The ability, capacity and skill of the bidder to perform the contract or provide the materials, supplies or equipment;

(c) Whether the bidder can perform the contract or provide the materials, supplies or equipment promptly or within the time specified, without delay or interference;

(d) The sufficiency of the bidder's financial resources to perform the contract or provide the materials, supplies or equipment;

(e) The ability of the bidder to provide future maintenance and services if essential to adequate performance;

(f) The compatibility of the materials, supplies and/or equipment with the City's existing inventory of same;

(g) The quality and timeliness of the bidder's performance on previous orders or contracts for the City;

(h) Litigation by the bidder on previous orders or contracts with the City;

(i) The ability of the bidder to provide future maintenance and service where such maintenance and service is essential;

(j) The character, integrity, reputation, judgment, experience and efficiency of the bidder.

(§ 1, Ord. 1068, eff. February 1, 2008)

Contracts for goods and/or services for which the cost to the City in one transaction will be more than Five Thousand and No/100ths ($5,000.00) Dollars, shall be let by either informal or formal competitive bidding or proposals pursuant to this chapter. Procurement requirements shall not be artificially divided so as to avoid the competitive bidding requirement. Nothing in this section shall preclude the solicitation of competitive bids or proposals, when possible. The following are exemptions to the competitive bidding requirements:

(a) Professional or specialized services;

(b) Emergency procurements, as defined in Section 3-10.270;

(c) Situations where solicitations of bids or proposals would for any reason be impractical, unavailing or impossible;

(d) Cooperative procurements as defined in Section 3-10.290;

(e) Sole source goods or services;

(f) Insurance and bonds;

(g) Procurements funded by grants, donations or gifts when the special conditions attached to the grants, donations or gifts require the procurement of particular goods and/or services;

(h) Goods and/or services obtained from or through agreement with any governmental, public or quasi-public entity;

(i) Works of art, entertainment or performance;

(j) Surplus personal property owned by another governmental, public or quasi-public entity;

(k) Membership dues, conventions, training, and travel arrangements;

(l) Advertisements in magazines, newspapers, or other media;

(m) Where competitive bids or proposals have been solicited and no bid or proposal has been received. In such a situation the City Manager may proceed to have the services performed or the goods procured without further competitive bidding.

(§ 1, Ord. 1068, eff. February 1, 2008)

It is unlawful to split into smaller orders the purchases of commodities, equipment or general services for the purpose of evading the competitive bidding provisions of this article.

(§ 1, Ord. 1068, eff. February 1, 2008)

The City Manager, or designee, may make or authorize others to make emergency procurements, regardless of the cost, if there is an urgent necessity to do so for the preservation of life, health or property as defined in this chapter. Such emergency procurements shall be made with such competition as is practical under the circumstances and shall be limited to those goods and services necessary to satisfy the emergency need. In such circumstances, a written report of the procurement will be given to the City Manager including a description of the emergency and the basis for selection of the particular contractor; and a copy of this report shall be included in the procurement records. In the event that such emergency action is necessary and the procurement cost is more than Thirty Thousand and No/100ths ($30,000.00) Dollars in any one transaction, the City Manager shall make a full and complete report to the City Council at its next regularly scheduled meeting.

(§ 1, Ord. 1068, eff. February 1, 2008)

When deemed necessary for an adequate understanding of requirements, the City is authorized to require bidders or proposers to attend pre-bid conferences or site inspections prior to the time and date set for receipt of bids or proposals and to consider non-responsive bidders or proposers not in attendance.

(§ 1, Ord. 1068, eff. February 1, 2008)

(a) Cooperative purchasing agreements. Nothing in this article prohibits the voluntary participation by the City in any cooperative purchasing agreement(s) or programs entered into between the City and the State, County, or other cities or public agencies situated within the State. The City Manager is authorized to act under the provisions of this article to procure for the City commodities, equipment and/or services in conjunction with such voluntary cooperative purchasing agreement(s) or programs as may be entered into by the City. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program.

(b) Use of another entity's contract. The City Manager may authorize the procurement of commodities, equipment and/or services through the use of a contract initiated by another governmental, public agency, provided that the original parties to the contract agree, the contract was awarded within 12 months of the date of authorization, the contract is for identical or nearly identical goods and/or services, and the contract resulted from a competitive bid using methods similar to those required by this chapter.

(§ 1, Ord. 1068, eff. February 1, 2008)

(a) Leasing of purchasable or nonpurchasable equipment shall be in accordance with the authority limits set forth in Article 2, depending upon the annual cost of the lease.

(b) Each contract for the leasing or rental of equipment for the City shall contain a provision permitting the City to terminate the contract at the end of any fiscal year during the term of the contract upon not less than 30 days' written notice to the other party.

(§ 1, Ord. 1068, eff. February 1, 2008)

The City may inspect supplies, equipment and general services delivered, and determine their conformance with the specifications set forth in the order or contract. A Department Head has 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.

(§ 1, Ord. 1068, eff. February 1, 2008)

In evaluating competitive bids, the City Council shall determine the lowest responsible bidder, and any local bidder shall be granted a preference in an amount equal to 5% of the lowest responsible bid, if that low bid has been submitted by a non-local bidder. If, after deduction of the 5% preference from a local bidder's bid, it is equal to or less than the lowest bid, the bid shall be awarded to the local bidder.

To qualify as a local bidder, firms or individuals must submit written proof of the address of their principal place of business and a copy of their current City business license with each bid for which a preference is claimed. Proof of address is normally the address to which contract and payments will be sent.

Local preference only applies to supplies, materials and/or equipment, and will not apply to bids conducted with other public agencies nor when prohibited by State or Federal statutes or regulations to be awarded to the lowest responsible bidder, or otherwise exempted from local preferences. A total amount of such a preference granted in a single bid shall not exceed Five Thousand and No/100ths ($5,000.00) Dollars over a non-local bidder.

(§ 1, Ord. 1068, eff. February 1, 2008)

The City of Los Banos promotes and supports the use of recycled products and will support the development of stable markets for recyclables by purchasing recycled products whenever such products perform satisfactorily and are available at a reasonably competitive price. Each City Department shall:

(a) Procure recycled products whenever practical, including: recycled paper; other office paper products; janitorial supplies; corrugated products, toner cartridges; lubricating and hydraulic oils; outdoor wood substitutes; recycled construction, building and maintenance products; re-crushed or recycled cement concrete, aggregate and asphalt products; recycled rubber products; compost, mulch and other recycled bio-solid products; re-manufactured paint and other products that may be identified by the City.

(b) Identify, evaluate and maintain information about recycled products containing the maximum practical amount of recycled materials.

(c) Develop specifications used in public bidding aimed at eliminating barriers to recycled content products.

(d) Encourage contractors and grantees to participate in the City's Recycle and Buy Recycled Program as feasible.

(e) Ensure that procurement documents issued by the Department require recycled or waste reducing alternatives whenever practical.

(§ 1, Ord. 1068, eff. February 1, 2008)