Madera Municipal Code Ch. 4 Purchasing Procedures

(A) Title. This chapter shall be known as the "City of Madera Purchasing Ordinance" ("Purchasing Ordinance"). The purpose of this purchasing ordinance is to establish efficient procedures for the purchase of supplies, equipment, and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to define purchasing authority, and to assure the quality of purchases.

(B) Compliance with laws. The adoption of this Purchasing Ordinance is intended to meet the requirements of state law including but not limited to the following:

(1) Cal. Gov't Code §§ 54201 to 54205 regarding the purchase of supplies and equipment;

(2) Cal. Public Contract Code §§ 20160 to 20174 regarding city public works construction projects;

(3) Cal. Public Contract Code §§ 22000 to 22045 regarding the Uniform Public Construction Cost Accounting Procedures;

(4) Cal. Gov't Code § 4526 regarding professional services;

(5) Cal. Labor Code requirements for prevailing wages;

(6) Cal. Gov't Code § 4529.2 regarding architectural engineering services; and

(7) Other applicable laws.

(C) Superseding state and federal procurement requirements. The procurement requirements under this Purchasing Ordinance shall be followed. However, in the event stricter requirements are required by state or federal funding sources, those requirements shall be met to ensure funding compliance and shall supersede the provisions of this chapter.

(D) Administrative Purchasing Policy. The city's purchasing functions shall be governed by this Purchasing Ordinance and by the city's Administrative Purchasing Policy, which shall be established by the City Manager or his or her designee, both as may be amended from time to time. The Administrative Purchasing Policy will serve to implement the provisions of this Purchasing Ordinance and will generally contain administrative requirements, responsibilities, and updated best practices to meet the city's needs.

(Ord. 996 C.S., passed 12-21-22)

Purchase and contract expenditures must be authorized in the city's annual budget or pursuant to amendment to the annual budget approved by the City Council.

(Ord. 996 C.S., passed 12-21-22)

(A) The City of Madera Municipal Code § 2-2.203(D) designates the Director of Finance of the city as the City Purchasing Agent with the responsibility to supervise and control the disbursement of all monies and the audit of all purchase orders and related invoices and payments. Subject to the direction of the Director of Finance, the duties of the Purchasing Agent may be performed by an authorized representative or be delegated to such city office or position as may be determined by the Director of Finance.

(B) The Purchasing Agent shall have authority to:

(1) Purchase or contract for supplies, equipment and services required by the city in accordance with purchasing procedures prescribed by this Purchasing Ordinance, the Administrative Purchasing Policy, and any requirement as shall be prescribed by state or federal funding agencies;

(2) Negotiate and recommend execution of contracts for the purchase of supplies, equipment, and services at least expense to the city;

(3) Act to procure for the city the needed quality in supplies, equipment, and services at least expense to the city;

(4) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on purchases;

(5) Prepare and recommend to the City Council revisions and amendments to the Purchasing Ordinance;

(6) Prescribe and maintain the forms as are reasonably necessary to the operation of the Purchasing Ordinance and other laws;

(7) Supervise or delegate the inspection of all supplies, equipment and services purchased to ensure conformance with specifications of the product or service;

(8) Maintain a bidders list, vendors catalog file, pre-qualified vendor lists, and records needed for the efficient operation of the Purchasing System; and

(9) Require that all employees verify and ensure purchases are made in accordance with the Purchasing Ordinance and with state or federal funding sources.

(Ord. 996 C.S., passed 12-21-22)

(A) City Manager. Purchases and contracts of less than $60,000 per project per fiscal year may be awarded and signed by the City Manager, after being approved as to form by the City Attorney and Purchasing Agent, unless the City Council expressly reserves approval on a particular purchase or contract, or the City Manager requests Council approval. This also includes contracts not measured monetarily, such as the waiver of indemnification and insurance.

(B) City Council. If the amount of any purchase or contract is $60,000 or more in a fiscal year, the contract shall be awarded by the City Council and signed by the Mayor unless a resolution specific to the particular contract authorizes the City Manager or other designee to sign the contract.

(Ord. 996 C.S., passed 12-21-22)

(A) Procedures for specific amounts. The procedures in this section shall be followed when purchasing or leasing materials, supplies, equipment, or services that are: (i) not public projects as defined in § 2-4.06 of this Code and (ii) not procured through requests for qualifications and requests for proposals.

(1) Less than $6,000. All city employees authorized to purchase or lease materials, supplies, equipment, or services shall ensure that the city pays fair prices and receives commensurate value for amounts expended.

(2) $6,000 to less than $15,000. Price quotes must be solicited, either verbally or in writing, from a minimum of three vendors, if available. The low-price quote must be confirmed in writing by the vendor.

(3) $15,000 to less than $60,000. Written specifications describing the delivery schedule, materials, supplies, equipment, or services must be prepared by city. Price quotes must be solicited in writing from a minimum of three vendors, if available.

(4) $60,000 or higher. The informal bidding requirements under § 2-4.06(D)(2) of this Code relating to public projects shall be followed except that for non-public projects, the city is not required to award to the lowest bidder. The city may award to the best qualified vendor. In determining "best qualified vendor", as used in this section, consideration is to be given to quality and performance of the goods and supplies, equipment or materials to be purchased or nonprofessional services to be provided by the vendor. Criteria for determining best qualified vendor includes, but is not limited to, the following:

(a) The cost or best value of the goods and supplies, equipment, materials, or nonprofessional services;

(b) The ability, capacity, and skill of the vendor to perform the contract and to provide the goods and supplies, equipment, materials, or nonprofessional services requested;

(c) The ability of vendor to provide the goods and supplies, equipment, materials, or nonprofessional services promptly or within the time specified and without delay;

(d) The quality of vendor's performance on previous purchases or contracts; and

(e) The vendor's responsiveness.

(B) Purchase order or written contract required. Purchases of supplies, equipment, and services of $6,000 or more shall be made only by written purchase order or by written contract.

(C) Emergency purchases. In the case of an emergency regarding a non-public project as defined in § 2-4.06, the Purchasing Agent may determine to proceed with the immediate purchase of goods, supplies, equipment, materials, or services. The term EMERGENCY means a sudden, unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential services. Such immediate purchase of goods, supplies, equipment, materials, or services still requires the standard terms and conditions for written purchase orders or written contracts.

(1) If the dollar amount is within the City Manager's authority, the Purchasing Agent shall promptly file with the City Manager a signed declaration showing that emergency conditions existed and created the necessity for such action, together with an itemized account of all expenditures.

(2) If the dollar amount is above the City Manager's authority, the Purchasing Agent shall at the next regular meeting of the Council seek ratification of the purchase by resolution which includes the emergency conditions which existed and the immediate need to take action, together with an itemized account of all expenditures.

(D) Prohibition against piecemealing, splitting or separating purchases. It is impermissible to split or separate purchases of materials, supplies, equipment or services for the purpose of evading the provisions of the procedures for specific amounts set forth above.

(Ord. 996 C.S., passed 12-21-22)

(A) California Uniform Public Construction Cost Accounting Act adopted. The City Council of the City of Madera, California hereby re-adopts the California Uniform Public Construction Cost Accounting Act (Cal. Public Contract Code §§ 22000 et seq.) for the purpose of prescribing regulations governing contracts awarded by the city for public projects. However, nothing contained herein shall preclude the city from utilizing more restrictive procedures if and when required by federal or state law, or when federal or state funds are involved in the contract to be awarded and the funding agency requires more restrictive procedures.

(B) Definitions of terms. As used in this section, the words, terms, and phrases shall have the following meanings, as defined in Cal. Public Contract Code § 22002, unless otherwise apparent from the context:

FACILITY. Any plant, building, structure, ground facility, real property, street, highway, or other public work improvement.

MAINTENANCE WORK. Does not constitute a "public project" under the definition of "public project" below; it does include the following:

(a) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;

(b) Minor repainting;

(c) Resurfacing of streets and highways at less than one inch;

(d) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and

(e) Work performed to keep, operate, and maintain city-owned water and wastewater systems.

PUBLIC PROJECT. Any of the following:

(a) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility;

(b) Painting or repainting any publicly owned, leased, or operated facility;

(c) PUBLIC PROJECT does not include maintenance work, as defined above; and

(d) Furnishing supplies or materials for any such project, including maintenance or repair of streets or sewers.

(C) Dollar amount of public project determines process to be used. The dollar amount thresholds provided in this section shall automatically adjust upon the effectiveness of any adjustment notification by the State Controller in accordance with Cal. Public Contract Code §§ 22020 et seq., without the necessity of amending this section or any division herein to reflect any such adjustment.

(1) Public projects of $60,000 or less may be performed by city employees by force account, by negotiated contract or by purchase order.

(2) Public projects of $60,000.01 to $200,000 may be let to contract by informal bidding procedures as set forth in division (D) below.

(3) Public projects of more than $200,000 shall, except as otherwise provided in this section, be let to contract by formal bidding procedure as set forth in division (D) below.

(D) Procedures to be used for contracts regarding public projects.

(1) No bidding required. Per Cal. Public Contract Code § 22032, public projects of $60,000 or less may be performed by the employees of the city by force account, by negotiated contract, or by purchase order consistent with the procedures in § 2-4.05(A)(1) - (3). Such contracts may be approved and executed by City Manager or designee.

(2) Informal bidding procedures. Public projects of $60,000.01 to $200,000 per division (C)(2) above shall be awarded to the lowest responsive and responsible bidder in accordance with the Uniform Construction Cost Accounting Act, Cal. Public Contract Code §§ 22034 et seq., as follows:

(a) Contractors list. A list of qualified contractors shall be developed and maintained in accordance with the provisions of Cal. Public Contract Code § 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(b) Notice inviting informal bids. A notice inviting informal bids shall be prepared, which shall describe the project in general terms, describe how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than ten days before bids are due, to either all the contractors on the contractors list for the category of work to be bid or to all construction trade journals specified in the Cal. Public Contract Code § 22036, or both, unless the product or service delivery is proprietary.

(c) The informal bids for public projects shall be awarded by the City Council and signed by the Mayor or by City Council designee.

(d) If all bids received are in excess of $200,000, the City Council may, by adoption of a resolution of four-fifths vote of the members of the Council, award the contract, at $212,500 or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.

(3) Formal bidding procedures. Public projects of more than $200,000 per division (C)(3) above shall be awarded pursuant to formal bidding procedures to the lowest responsive and responsible bidder in accordance with, but not limited to, the procedures set forth below.

(a) Notice inviting formal bids. The following are required:

1. Contents of notice. Notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

2. Publication of notice. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the city, or otherwise comply with the requirements of Cal. Public Contracts Code § 22037.

3. Electronic transmission of notice. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals as required by the Commission as specified in Cal. Public Contract Code § 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids.

4. Per Cal. Labor Code § 1771.1, the notice must state that a contractor or subcontractor is not qualified to bid on, be last in a bid proposal for, or perform work on a project unless it is registered and qualified under Cal. Labor Code § 1725.5.

(b) Instructions to bidders. The notice inviting formal bids should also identify the contract documents to be considered, the availability of information, any scheduled pre-bid meetings, bid protest procedures, addenda, and any other procedures to be followed for bids to be considered.

(c) Bid package. The bid package should include the following:

• 1. The proposal form;
• 2. Submission of sealed bids;
• 3. A public bid opening;
• 4. Award to the lowest, responsive and responsible bidder;

5. City reservation in notice inviting bids of the right to reject any or all bids and to waive minor irregularities;

• 6. Award and execution of a written contract;
• 7. Reference to applicable state or federally funded project requirements;
• 8. Bid security;
• 9. Performance and payment bonds; and
• 10. Listing of subcontractors.

(E) Authority to prepare and issue notice inviting bids. The Purchasing Agent or designee is authorized to prepare and issue notices inviting bids and to establish such additional bidding procedures which must be consistent with those stated herein.

(F) Prohibition against splitting or separating projects. It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this Purchasing Ordinance requiring work to be done by contract after competitive bidding. Under Cal. Public Contract Code § 22033, "It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding."

(G) City Council authority to reject, re-advertise, or otherwise award.

(1) In its discretion, the City Council may reject any and all bids presented under the informal and formal bidding procedures described above for public projects, if the city, prior to rejecting all bids, furnishes a written notice to the apparent low bidder. The notice shall inform the bidder of the city's intent to reject the bid and shall be mailed or emailed at least two business days prior to the Council meeting at which the city intends to reject the bid. If after the first invitation for bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the option of either of the following:

(a) Abandoning the project or re-advertising for bids in the manner described in this section;

(b) By passage of a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by the employees of the city, the city may have the project done by force account without further complying with this section;

(2) If the contract is awarded, it shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses.

(3) If no bids are received through the informal or formal bidding procedures described above, the project may be performed by employees of the city by force account or by informal bidding procedures set forth above.

(H) Emergency.

(1) In case of an emergency regarding a public project which requires formal bidding procedures, the City Council may pass a resolution by a four-fifths vote declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property. The resolution shall specify findings as required in Cal. Public Contracts Code § 22050.

(2) EMERGENCY as used in this section means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

(I) Written contracts required. All contracts for public projects shall be in writing; all amendments to contracts shall be in writing. The City Manager or his or her designee shall work with the City Attorney to ensure that the contract includes language protecting the city's interest and language required by law. This language shall include, but is not limited to specified term, scope of services, termination language, insurance, warranties, indemnification, non-collusion, contractor license, security, bonds, liquidated damages, change orders, retention, delays, claims process, prevailing wages, and compliance with applicable laws.

(J) Change order limits for public projects. The award of contracts for public projects shall include a recommended contingency amount not to exceed 15%. Any change order must be reasonably related to the scope of the original contract and based on post-award information that requires modification based on unforeseen conditions or by mutual agreement of the parties. Any change order which results in a total contract amount greater than the limits in this provision shall require City Council approval.

(Ord. 996 C.S., passed 12-21-22)

(A) Cooperative purchasing. The city, through the Purchasing Agent, may purchase supplies, equipment, or services through a joint powers or other cooperative purchasing program with any local, county, state, or federal public entity or entities, or any association of public agencies, including the California League of Cities, the California State Association of Counties, and the National Conference of Mayors, provided that:

(1) The selected bidder was selected in compliance with the competitive bidding or proposal process requirements of any participating entity or association; and

(2) The Purchasing Agent determines that the competitive bidding or proposal process utilized is similar to that contained in this chapter; and

(3) The Purchasing Agent determines that, as a result of cooperative purchasing, the price of the supplies, equipment, or services is likely to be lower than it would be if purchased directly by the city pursuant to this chapter.

(B) Information technology goods and services. In accordance with Cal. Public Contract Code § 10299, the city, through the Purchasing Agent may, without formal or informal bidding, contract with suppliers who have been awarded contracts by governmental entities for the purchase of goods, information technology, and services under the competitive process in Cal. Public Contract Code §§ 12100 to 12113. Such contracts typically take the form of master agreements, price schedules, or multiple award schedules. The city may make these purchases directly from the vendors or the state may provide assistance to the city in making these acquisitions.

(C) "Piggyback" purchasing. The city may utilize the purchasing practice commonly referred to as "piggyback" purchasing. The city, through the Purchasing Agent, may purchase supplies, equipment, or services without complying with the bidding or proposal procedures in this chapter from any supplier who offers the supplies, equipment, or services at the same or better price, terms, and/or conditions as the supplier previously offered to another city or other public agency as the lowest bidder pursuant to the competitive bidding or proposal process required by that city or other public agency, provided that:

(1) The competitive bidding or proposal process required by that city or other public agency is similar to that contained in this chapter; and

(2) The competitive bidding or proposal process required by that city or other public agency included all known bidders; and

(3) The supplier's bid or proposal was for like or greater quantities, and a like or greater quality, of supplies, equipment, or services.

(Ord. 996 C.S., passed 12-21-22)

(A) In the event that there is one, and only one, source for a product of $6,000 or more, a sole-source purchase may be used. When a department wishes to make a sole-source purchase, it must make the findings set forth below in writing and file such certification with the Purchasing Agent for the Purchasing Agent's approval. In order to establish a legal basis for a sole-source exception, the following statements and findings must be made:

(1) A statement describing every unique or specialized feature of the product in question;

(2) A statement of the department director's efforts to locate all possible suppliers of such product;

(3) A statement that, in spite of its efforts, the department director has been able to locate only one supplier of the product in question;

(4) A statement that indicates the ultimate cost of the product and the process used to determine the cost of the product;

(5) A finding that it is, therefore, proper for the city to dispense with a competitive bidding requirement and to authorize the city to purchase the product in question under the sole-source exception; and/or

(6) A disclosure statement of the department director and each individual involved in evaluating and/or in making a recommendation for the purchase.

(B) If the purchase exceeds the City Manager's monetary authority to contract, a resolution making the findings set forth above must be submitted with the staff's request for award of a sole-source contract by the City Council.

(Ord. 996 C.S., passed 12-21-22)

(A) This section applies to prevailing wages under local and state law. The requirements for prevailing wages under the federal Davis-Bacon Act are separate and should be reviewed separately as required by applicable federal funding sources. Under Cal. Labor Code § 1771, all work performed under contract for "public works" projects of more than $1,000 shall be subject to prevailing wages. The Cal. Labor Code defines the term "public works project" broader than the Cal. Public Contract Code defines "public project" as per § 2-4.06 above. There may be instances in which bidding is not required but payment of prevailing wages is required.

(B) PUBLIC WORKS PROJECT for the purpose of state prevailing wages means:

(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part from city funds. For purposes of this division, CONSTRUCTION includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work. For purposes of this division, INSTALLATION includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems;

(2) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds;

(3) Street, sewer, or other improvement work done under the direction and supervision of the city;

(4) Hauling refuse from a public works site to an outside disposal location; or

(5) Maintenance work, including routine, recurring, and usual work for the preservation of a city-owned or operated facility, and landscape maintenance work per Cal. Labor Code § 1771.

(C) Prevailing wage requirements do not apply to work performed by the city with its own forces.

(D) The City Manager is authorized to establish guidelines for implementing prevailing wages requirements that are consistent with this section and with the Cal. Labor Code.

(E) The City Manager shall designate a person to comply with the contractor registration requirements on all contracts requiring prevailing wages.

(Ord. 996 C.S., passed 12-21-22)

Procurements under a Request for Proposal (RFP) or Request for Qualifications (RFQ) are appropriate for services that are not subject to legal public bidding requirements. Such procurements may include consulting services, professional services, and maintenance services as described in this section.

(A) RFP or RFQ. If there are no statutory or funding condition requirements that specify use of an RFP or RFQ, selection is based on the nature of the procurement. For example, an RFP is generally the preferred option for project-based procurement where the specific scope of services is known in advance and one of the primary criteria will be the best lump sum price for providing services (although experience and qualifications may also be considered). An RFQ is often preferable for ongoing or on-call professional or consulting services where there is not a single, defined project and the qualifications and experience of the consultant are the primary criteria (although hourly rates may also be considered).

(B) RFP/RFQ required.

(1) Architectural and engineering services. Per Cal. Gov't Code § 4529.12, all architectural and engineering services shall be procured pursuant to a fair, competitive selection process. Therefore, an RFP/RFQ process must be followed. The term "architectural and engineering services" includes all architectural, landscape architectural, environmental, engineering, land surveying, and construction project management services (see Cal. Gov't Code § 4529.10).

(2) Design-build. An RFQ and RFP must be used if the city adopts an ordinance for design-build procurement under Cal. Public Contract Code §§ 22160 et seq.

(3) Funding source requirement. The city shall comply with county, state, or federal funding source requirements for use of an RFP/RFQ.

(4) Master service agreements. Master service agreements may be entered into with specific vendors for support services on an "as needed" basis pursuant to an RFP process.

(C) RFP/RFQ not required.

(1) Professional/consultant services. The city may contract with any specially trained and experienced persons, firms or corporations for special services and advice in financial, economic, accounting, legal or administrative services. Selection shall be on the basis of demonstrated competence, on the professional qualifications necessary for the satisfactory performance of the services required, and at a fair and reasonable price to the city. To obtain the best competitive value for services, the city may employ an RFP or RFQ process dependent on nature of the services, complexity, estimated cost, and immediate needs as determined by the City Manager.

(2) Routine supplies/equipment. Procurement of routine supplies or equipment where best price is the only objective, there is no need to use an RFP/RFQ. A clear and specific request for price quotes or informal bidding requirements per § 2-4.05 of this Code is often the most efficient procurement method for obtaining the best price for goods except that factors other than low price may be considered. However, the city may choose to use an RFP/RFQ process.

(Ord. 996 C.S., passed 12-21-22)

No person shall recommend, participate in any contract evaluation, selection, purchase, or lease which would constitute a conflict of interest defined in the city Conflict of Interest Code or applicable state law.

(Ord. 996 C.S., passed 12-21-22)