Mammoth Lakes Municipal Code Ch. 3.22 Purchasing

The purpose of this chapter is to establish an efficient procedure for the purchase of equipment, vehicles, furnishings, supplies, materials and services, and to establish a procedure for performing or contracting for the construction of public works consistent with State law, which procedures shall not be overly time consuming and cumbersome, while allowing the Town to obtain the best professional services, and acquire quality supplies, general services and equipment in an economic manner, and also to construct public works at the lowest reasonable cost.

(Code 1990, § 3.20.010; Ord. No. 03-03, 2003)

In order to establish efficient procedures for the purchase of supplies, equipment and services, to secure for the Town supplies, equipment and services at the lowest competitive cost commensurate with quality needed and with due consideration to disposability, to exercise positive financial control over purchases, to clearly define authority for the purchasing functions, to ensure the quality of purchases; and to buy without favor or prejudice, a purchasing system is adopted and shall control the procedure for all purchases except as otherwise provided by law.

(Code 1990, § 3.20.020; Ord. No. 03-03, 2003)

The Finance Director or the Town Manager or authorized designee will be the Purchasing Officer. The Purchasing Officer shall purchase, or cause to be purchased, all equipment, vehicles, furnishings, supplies, materials and services, and shall have the responsibility and authority to:

(1) Purchase or contract for supplies, services and equipment;

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

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

(4) Endeavor to obtain as full and open competition as possible on all purchases;

(5) Prepare and recommend to the Town Manager rules governing the purchase of supplies, services and equipment for the Town;

(6) Prepare and recommend revisions and amendments to the purchasing rules;

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

(8) Supervise the inspection of all supplies and equipment purchased to ensure conformance with specifications;

(9) Recommend the transfer of surplus or unused supplies and equipment between departments as needed.

(Code 1990, § 3.20.030; Ord. No. 03-03, 2003)

Information furnished by suppliers or contractors regarding price, terms, performance specifications, or other data will be held confidential until after award of an order or contract. After the award, all papers pertaining to a transaction are public information and will be released for review upon request by any interested person, unless good cause exists for a bidder to specifically request that certain proprietary information (under patent, trademark or copyright) not be released and the withholding of requested information is permitted under the California Public Records Act, Government Code § 7920.000 et seq.

(Code 1990, § 3.20.040; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

No Town employee who participates in the selection or approval of a contractor, products, sources or supply, specifications, or who has supervisory responsibility for such employees, shall have any direct financial interest in the company which furnishes the supplies or services being procured.

(Code 1990, § 3.20.050; Ord. No. 03-03, 2003)

The Purchasing Division's functions will be conducted with absolute integrity. The very highest ethical standards will be maintained in all material activities and the Purchasing Division will be aware of its responsibilities in spending public funds.

(Code 1990, § 3.20.060; Ord. No. 03-03, 2003)

Purchases shall not be made for the personal use of any Town employee using the Town's procurement personnel or facilities, unless approved in writing by the Town Manager with an explanation for why the purchase is being made. The Town's credit or name shall not be used for personal purposes by Town staff, officers or officials.

(Code 1990, § 3.20.070; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

It is in the public interest to promote the Town's purchase of recycled products and recycled materials that are environmentally friendly. This chapter is enacted to demonstrate compliance with State laws and foster market development for recycled products and materials. As part of the analysis of cost and suitability, the purchase of equipment, vehicles, furnishings, supplies, materials, and services may take into account the environmental issues of the purchase. Such issues, include, but are not limited to, performance standards that are equal to or better percentage content of recycled materials, non-polluting and low-polluting qualities, and low overall impact on the environment. For purposes of this section, recycled products and materials, are anything other than new products or materials. In addition to the requirements of this section, the purchasing of all paper products and recovered organic waste products shall comply with the Town's sustainable purchasing and practices policy.

(Code 1990, § 3.20.080; Ord. No. 03-03, 2003; Ord. No. 21-10, § 1(exh. A), 12-15-2021)

The Finance Director may authorize, in writing, any department to purchase equipment, vehicles, furnishings, supplies, materials and services independently of the purchasing division, but such purchases shall be made in conformity with the procedures (including methods of procurement) established by this chapter.

(Code 1990, § 3.20.090; Ord. No. 03-03, 2003)

Local preference is the practice of procurement/contracting from certain suppliers/contractors because they are also Town taxpayers. Local preference is not acceptable as a measure of product evaluation or contract performance. All orders/contracts are awarded solely on the basis of quality, delivery, service, price and vendor/contractor qualifications. When these factors are equal, preference will be given to local vendors.

(Code 1990, § 3.20.100; Ord. No. 03-03, 2003)

When economically advantageous, repetitively ordered materials will be procured through the use of annual or multiyear contracts. Time and dollar limits will be identified on all such orders. Multiyear contracts will also include terms that specify conditions of renewal each year for the duration of the contract. The Purchasing Officer or the department that administers the contract will make an annual review to determine if the contract will be renewed or terminated.

(Code 1990, § 3.20.110; Ord. No. 03-03, 2003)

When a contract is in effect, changes of any kind, which affect the agreements established by a purchase order or contract, will only be made by the authority that originally made the award. Authorization for the change given to the supplier/contractor must be supported by a proper change request.

(Code 1990, § 3.20.120; Ord. No. 03-03, 2003)

The use of petty cash is available for low-cost items. Petty cash funding must be authorized by division or department heads and in accordance with the petty cash policy.

(Code 1990, § 3.20.130; Ord. No. 03-03, 2003)

Except in cases of emergency, the Purchasing Officer shall not issue any purchase order for equipment, vehicles, furnishings, supplies and materials unless there exists an unencumbered appropriation in the department against which the purchase is to be charged.

(Code 1990, § 3.20.140; Ord. No. 03-03, 2003)

All departments shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time, and for such future periods as the Purchasing Officer shall prescribe.

(Code 1990, § 3.20.150; Ord. No. 03-03, 2003)

Purchases of equipment, furnishings, supplies and materials may be made by purchase orders, except as otherwise provided in this chapter.

(Code 1990, § 3.20.160; Ord. No. 03-03, 2003)

The right is reserved to inspect all equipment, vehicles, furnishings, supplies and materials for compliance with the specifications of a purchase order or contract. Rejected material normally will be returned to the supplier for disposition or replacement at the supplier's expense. If circumstances warrant, negotiations will be made for acceptance at a reduced cost to the Town. The return of purchase material subsequently determined to be in excess of actual requirements will be subject to negotiation by the Purchasing Officer and supplier. Unacceptable/unauthorized shipments will be returned at the seller's risk and expense.

(Code 1990, § 3.20.170; Ord. No. 03-03, 2003)

Purchases of vehicles and equipment, furnishings, supplies, materials and services in the amount of $175,000.00 or less may be made by the Purchasing Officer in the open market process prescribed in Section 3.20.190; provided, however, all bidding may be dispensed with for purchases of equipment, furnishings, supplies, materials, and services having a total estimated value of less than $25,000.00. Purchases of vehicles and equipment, furnishings, supplies, materials, or services in excess of $175,000.00 shall be made using the procedure in Section 3.20.270.

(Code 1990, § 3.20.180; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

The open market or informal bid procedure consists of the following:

(1) Unencumbered budget appropriations must exist in the department requesting the purchase.

(2) Minimum number of bids. Open market purchases shall, when possible, be based on at least three bids.

(3) Soliciting bids. The bids may be solicited from prospective vendors by any or all of the following: Written request, internet posting on the Town's official website, posting of notice on a public bulletin board in the Town hall, telephone request, requests sent by electronic mail, or any other means providing an opportunity for interested bidders to participate.

(4) Oral quotes will be accepted for purchases below $10,000.00.

(5) Receipt of bids. Bids shall be received in the manner specified in the solicitation for bids, which may call for submission of physical bids, submission via electronic mail, an online platform, or any other method specified in the solicitation for bids.

(6) Record retention. All open market orders and quotes shall be retained for a period of 90 days after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection.

(Code 1990, § 3.20.190; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

In purchasing any special equipment or supplies needed to be compatible with existing equipment, or to perform complex or unique functions, the Purchasing Officer may limit bidding to a specific product type, or a brand name product, or utilize a request for proposal approach where warranties, servicing obligations, and product performance will be evaluated in addition to the price of the product.

(Code 1990, § 3.20.195; Ord. No. 03-03, 2003)

Formal bid procedure shall apply, except as otherwise provided in this chapter, to public projects (over $5,000.00), as defined in Public Contracts Code § 20161 and shall be awarded to the lowest responsible bidder in accordance with State law. The purchase of vehicles, equipment, furnishings, supplies and materials that exceed the amount authorized in Section 3.20.180 shall be subject to the formal bid procedure.

(Code 1990, § 3.20.200; Ord. No. 03-03, 2003)

Notices inviting formal bids shall include a general description of the public project and article or service desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids.

(Code 1990, § 3.20.210; Ord. No. 03-03, 2003)

The Purchasing Officer may also solicit formal sealed bids from responsible contractors and suppliers whose names are on the approved vendors list, or who have made written request that their names be added thereto.

(Code 1990, § 3.20.220; Ord. No. 03-03, 2003)

The Town Clerk shall advertise the pending public project or purchases by posting a notice on the public bulletin board at the Town offices. The Town Clerk may advertise on the Town's official website and other advertising media.

(Code 1990, § 3.20.230; Ord. No. 03-03, 2003)

When a public project is involved, and in other cases when deemed necessary by the Purchasing Officer, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent of the total aggregate of the bids and shall be designated in the notice inviting bids. Bidders shall be entitled to the return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon the bidder's refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the Town is solely responsible for the delay in executing the contract. The Town Council may, on refusal or failure of the successful bidder to execute the contract, award it to a bidder who is willing to execute the contract or may reject all bids and re-advertise.

(Code 1990, § 3.20.240; Ord. No. 03-03, 2003)

A faithful performance bond and labor and material bond shall be required for all public projects, unless waived by the Town Council, in an amount reasonably necessary to protect the best interests of the Town. In addition, the Town Council shall have authority to require a faithful performance bond or other bonds before entering into a contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

(Code 1990, § 3.20.250; Ord. No. 03-03, 2003)

Purchases of vehicles and equipment, furnishings, supplies and materials in excess of $175,000.00, and any other purchases or projects for which competitive bidding is required, shall be made pursuant to this section. Sealed bids shall be submitted in the manner specified in the notice to bidders. If the notice to bidders specifies that physical, non-electronic bids are to be submitted, bids shall be submitted to the Town Clerk and shall be identified as bids on the envelope. If the notice to bidders specifies that bids may be submitted electronically, a method shall be used that ensures bids are not opened before the deadline and that all bids can be verified as authentic, pursuant to Public Contracts Code § 1601. The Town Clerk, or designee, shall publicly open all bids at the time and place stated in the public notices, unless the notice to bidders specifies that bids shall be submitted electronically, in which case the bids shall be opened at the time and place stated in the notice to bidders. A tabulation of all bids received shall be available for public inspection in the Town Clerk office during regular business hours for a period of not less than 30 calendar days after the bid opening. If bids are permitted to be submitted electronically, the Town shall provide an electronic receipt to the bidder showing the date and time the submission was received. The Town shall provide the electronic receipt to the bidder either by immediate transmission to the bidder or by providing the bidder access to an electronic file online that contains this information and that can be viewed and printed by the bidder.

(Code 1990, § 3.20.260; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

Except as otherwise provided in this chapter, formal bid contracts shall be awarded by the Town Council to the lowest responsible bidder. The determination of lowest responsible bidder shall be at the discretion of the Town Council pursuant to findings and recommendations presented by the public works director, Purchasing Officer or Town Manager at the time of award of contract.

(Code 1990, § 3.20.270; Ord. No. 03-03, 2003)

If two or more formal bids received are for 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 Town Council may accept either bid or accept the lowest bid made by negotiation with the tied bidders.

(Code 1990, § 3.20.280; Ord. No. 03-03, 2003)

• Exceptions to open market, informal or formal bid competitive bidding procedures and requirements.

(a) Notwithstanding any provisions of this chapter to the contrary, the competitive bidding procedures and requirements for the purchase of equipment, vehicles, furnishings, supplies, materials and services may be dispensed with in any of the following instances:

(1) When the commodity or service can be obtained from only one responsible source.

(2) Emergency work as provided in Public Contracts Code § 20168.

(3) When the acquisition of equipment, supplies, materials and services is necessitated by reason of emergency circumstances.

(4) When the contract is for professional services such as attorneys, physicians, architects, engineers, consultants, accountants, or other individuals or organizations possessing a high degree of professional, unique, specialized, technical skill or expertise, not adaptable to competitive bidding, or where the service involves a contract for special activities, negotiations for the acquisition of land, insurance bonds or any other service of a similar nature to the above engaged for a particular project or series of projects. The professional services selected shall be of the highest quality together with cost-effectiveness. Such contracts under $75,000.00 may be executed by the Town Manager.

(5) The Town Council may authorize the execution of contracts, pursuant to Subsection (a)(4) of this section, without observing the bidding procedures provided in this chapter where the amount of the contract exceeds the Town Manager's authorization.

(6) Any agreement involving acquisition of equipment, vehicles, furnishings, supplies, materials or services entered into with another governmental entity.

(7) The Town Council may authorize the execution of a lease for office space for the Town government without observing the bidding procedures provided in this chapter irrespective of the term of the lease or the amount of rent and other charges to be paid by the Town under the lease.

(8) The Town Manager is authorized to enter into contracts, pursuant to Subsection (a)(4) of this section without observing the bidding procedure provided in this chapter when the amount of the contract does exceed the amount set by Subsection (a)(4) of this section, provided the service is required by a development application and the necessity of the service has been agreed to by the applicant, and the applicant has deposited with the Town adequate monies to pay the cost of the services.

(9) The competitive bid process is not applicable to certain purchases. The following are exempt from bid processes of this chapter:

a. Travel/expense advances;

b. Subscriptions;

c. Trade circulars or books;

d. Insurance claims;

e. Reimbursement of expenses;

f. Food expenses;

g. Petty cash reimbursement;

h. Medical payments;

i. Newspaper advertisements and notices;

j. Organization dues and membership;

k. Payments to other government entities;

l. Utility payments;

m. Attorney services;

n. Courier/delivery services;

o. Land;

p. Buildings;

q. Fuel, cinders, computers, plotters, printer/copiers, streetlights and traffic signals;

r. Purchases which are:

1. Made through cooperative purchasing agreements offering competitive pricing to government agencies (including, without limitation, those administered by Sourcewell or Omnia Partners); or

2. Made by piggybacking on contracts entered into by other government agencies which allow the Town to take advantage of the same contract terms, provided that this exception shall not apply to contracts for which bidding is required by State law, including, without limitation, Public Contracts Code § 20162 or required by the source of funds to be used for the purchase.

(b) While such exceptions are permitted, it is the general policy of the Town Council, the Town Manager, and the Purchasing Officer to allow for maximum possible competition in all areas to obtain the best product or service available at a fair and reasonable price.

(Code 1990, § 3.20.290; Ord. No. 03-03, 2003; Ord. No. 21-07, § 1(exh. A), 6-2-2021)

All using departments shall submit to the Purchasing Officer, at such times and in such forms as the Purchasing Officer shall prescribe, reports showing all equipment, vehicles, furnishings, supplies and materials which are no longer used or which have become obsolete or worn out.

(Code 1990, § 3.20.300; Ord. No. 03-03, 2003)

The Purchasing Officer shall have authority to exchange for or trade in on new equipment, vehicles, furnishings, supplies and materials which cannot be used by the department or which have become unsuitable for Town use.

(Code 1990, § 3.20.310; Ord. No. 03-03, 2003)

The Purchasing Officer shall also have authority, subject to approval of the Town Manager, to dispose of surplus equipment, vehicles, furnishings, supplies and materials by auction, sealed bids, for scrap or negotiated sale, which, in the Purchasing Officer's judgment, provide the maximum return to the Town.

(Code 1990, § 3.20.320; Ord. No. 03-03, 2003)

• Surplus equipment, vehicles, furnishings, supplies and materials—Disposed as junk.

When the cost of locating a buyer exceeds the estimated sale price of surplus items or the item is obsolete or worn out or of minimal value, the Purchasing Officer may destroy or dispose of the item as junk.

(Code 1990, § 3.20.330; Ord. No. 03-03, 2003)

• Surplus equipment, vehicles, furnishings, supplies and materials—Disposed as gifts.

The Purchasing Officer, subject to approval of the Town Manager, may give surplus items to any fraternal, benevolent, patriotic, charitable or religious organization not organized for profit, or to any other public agency.

(Code 1990, § 3.20.340; Ord. No. 03-03, 2003)