Loyalton Municipal Code Ch. 4.04 Purchasing, Bidding and Surplusing

This chapter is enacted to adopt policies and procedures governing purchases of supplies and equipment, pursuant to Government Code Section 54201 and following, and bidding on public projects (pursuant to Government Code section 2540 and following.)

Purchase orders must be obtained for all purchases prior to the purchase of supplies and equipment, purchase orders must be signed by the City Controller and the Council member of the department in which purchase is being made.

Two petty cash funds will be retained in the City Hall, one for $150.00 per month for administrative expenditures and one for $50.00 per month for maintenance expenditures. These funds will be used for minor purchases and do not require purchase orders.

Within the limits of the appropriate budget item, council members may purchase supplies and equipment for their department in the amounts of $500 or less without prior council approval.

In case of emergencies an employee must first try to contact a council member, if council member is not available an e3mployuee may then make the necessary purchase to take care of the emergency.
Written documentation that the emergency existed and that no council members could be contacted shall be supplied on the following regular working day.

Within the limits of the appropriate budget item, council members may purchase supplies and equipment for their departments in the amount of mor than $500 but less than $5,000 only with council approval.

The Council shall invite bids on purchases of supplies and equipment in amounts of $5,000 or more y informal bid procedures as set forth in Section 4.04.070. In its discretion, the Council may waive this requirement if it finds it is in the public interest to do so, for causes including but not limited to emergency purchases and purchases through the State Department of General Services pursuant to Government Code Section 54205.

Work on public projects costing $4,000 but less than $10,000 shall be let to bid either by informal or formal bid procedures as set forth in Section 4.04.070 or 4.04.080. informal bid procedures are sufficient for all such projects except if the Council orders formal bid procedures.

Work on public projects costing $10,000 or more shall be let to bid by formal bid procedures as set forth in Section 4.04.080. The Council shall adopt, and shall allow all bidders to examine planes, specifications and working details for all such projects.

Informal bid procedures are as follows:

A notice inviting sealed bids shall be published at least once in a newspaper of general circulation, at least five (5) days before the bid deadline.

Formal bid procedures are as follows: A notice inviting sealed bids shall be published at least twice in a newspaper of general circulation, not less than five (5) days apart, with the first publication completed not less than ten (10) days before the bid deadline. The notice shall describe the project, state where bid documents are to be obtained and filed, and the bid deadline.

In its discretion; the Council shall follow any of the following alternatives after the opening of bids: (a) The Council shall accept the lowest responsible bid. (b) The Council shall reject all bids. After such rejection, supplies, materials, equipment and hirer for labor may be purchased at lower cost or on the open market without further bids or compliance with this chapter. (c) After bid rejections on public works projects, work on with one of the following procedures: (1) Bids shall again be solicited pursuant to this chapter. After such rebidding, the Council shall accept the lowest responsible bid or shall reject all bids and perform the work at a lower cost with the use of City personnel.

(2) The Council shall reevaluate the cost estimates of the project and pass a resolution by a four-fifths vote declaring that the project can be performed more economically by city personnel, or that a contract to perform the project can be negotiated at a lower price than in any of the bids, or that the materials and supplies involved in the public project can be furnished at a lower price in the open market. Upon adoption of the resolution, the Council shall have the project done in the manner stated without further compliance with this chapter. (d) If no bids are received by the bid deadline, supplies and equipment may be purchased and work on public projects may be performed without further compliance with this chapter.

No City property may be surplused without prior approval of the Council. The Council shall declare any property as surplus when deemed appropriate by the Council.

Surplus property shall be sold or disposed of as prescribed by law and any sale of surplus property shall be posted at the City Hall at least five (5) days prior to the sale. All sales of surplus property shall occur at the City Hall.