Maywood Municipal Code Ch. 4 Purchasing System

A centralized purchasing system is hereby adopted in accordance with the requirements of the California Public Contract Code and California Government Code, Section 4525 et seq. The purpose of this chapter is to establish efficient procedures for the purchase of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), 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.

(Ord. No. 08-15, § 6, 12-9-2008)

There is created the position of purchasing officer. The purchasing officer shall be the Chief Administrative Officer or his or her designee. The duties of the purchasing officer may be combined with those of any other City office or position. The purchasing officer may delegate the duties of that position to one or more subordinate employees with the consent of the Chief Administrative Officer, each of whom shall be under the purchasing officer's supervision.

The purchasing officer shall be the head of all purchasing functions of the City. The purchasing officer shall direct and supervise the City's purchasing program. The purchasing officer shall endeavor to obtain full and open competition on all purchases and services required by the City to the extent possible. The purchasing officer shall establish methods and procedures for the efficient and economical functioning of the purchasing department.

(Ord. No. 08-15, § 6, 12-9-2008)

Subject to the supervision of the Chief Administrative Officer, the purchasing officer shall have the authority to:

(a) Purchase and contract. Purchase or contract for materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment required by the City.

(b) Negotiate and recommend. Negotiate and recommend to the City Council and Chief Administrative Officer the execution of contracts for the purchase of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment.

(c) Purchasing Policies and Procedures Manual. Prepare and implement policies and procedures governing the bidding, contracting, purchasing, storing, distribution, and disposal of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment for the City. To this end, the purchasing officer shall be responsible for developing and obtaining Chief Administrative Officer approval of a Purchasing Policies and Procedures Manual, which shall outline the policies and procedures necessary to implement the regulations of this Chapter. Upon approval by the Chief Administrative Officer, the Purchasing Policies and Procedures Manual shall have the same force and effect as the provisions of this Chapter.

(d) Forms. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this Chapter and any other policies and procedures approved by the Chief Administrative Officer consistent with this Chapter.

(e) Review plans and specifications. In consultation with the appropriate department director, review, or provide for the review of, the working details, drawings, plans, and specifications for any projects or purchases requiring such review.

(f) Inspections and testing. Inspect, supervise, or provide for the inspection and supervision of, purchased materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment to ensure conformity with any specifications established or required by the City. The purchasing officer or his or her designee shall have authority to require appropriate testing of items delivered or samples to determine their quality and conformance with the specifications. Samples of items, when required, shall be furnished free of expense to the City and, if not destroyed by test, will be returned upon request at the bidder's expense.

(g) Bidder, contractor, and vendor lists and catalogs. Develop and maintain, or provide for the development and maintenance of, any bidder's list, contractor's list, or vendor's list and catalog file necessary to the operation of this chapter and any other policies and procedures approved by the Chief Administrative Officer consistent with this Chapter. Each City department may have its own lists or catalogs. If the purchasing officer delegates the obligation to develop and maintain any list to another City employee, the purchasing officer shall retain final oversight authority and approval regarding how the list is developed and maintained.

(Ord. No. 08-15, § 6, 12-9-2008)

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

(Ord. No. 08-15, § 6, 12-9-2008)

Purchases of supplies and equipment shall be made only be purchase order. Except in cases of emergencies, 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 the such purchase is to be charged.

(Ord. No. 08-15, § 6, 12-9-2008)

The City shall comply with all requirements of the California Public Contract Code, for any public works project, as that term is defined therein.

(Ord. No. 08-15, § 6, 12-9-2008)

All purchases of equipment, supplies and services shall be made by formal or informal public bids pursuant to the procedures set forth in this Chapter, except where an exception applies pursuant to this Chapter. The following general regulations shall apply:

(a) Basis of Award. The City shall secure materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law. Notwithstanding the foregoing, although the city is not adopting the formal procedures outlined in California Government Code, Section 4525 et seq., the City shall secure professional services based upon demonstrated competence, professional qualifications, and suitability for the project in general. The City may consider cost of professional services if the City determines it to be a relevant factor under the circumstances.

(b) Purchasing Policies and Procedures Manual. The purchasing officer shall develop, for approval by the Chief Administrative Officer, such policies and procedures as are necessary to implement the provisions of this section. The policies and procedures shall be written and implemented in such a way to encourage open and competitive bidding, where appropriate, provide equal opportunity based on merit, make each selection process free of invidious discrimination or bias, provide for efficient and timely acquisition of needed materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment, and provide effective fiscal controls.

(c) Applicable state and federal law. The City shall comply with all applicable federal and state laws for the particular purchase at issue including, but not limited to, bidder's security and bonding requirements, as well as prevailing wage requirements.

(d) Unlawful purchasing activities and conflicts. The Purchasing Policies and Procedures Manual shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit City officials, officers, and employees from participating in the bidding or selection process when they have a relationship with a person or business entity seeking a contract under this Chapter which would subject the officials, officers, or employees to the prohibitions of California Government Code, Section 1090 and 87100 et seq.

(e) Records retention. The purchasing officer shall keep a written record of all bids for a period of two (2) years following the award of the purchase. If no purchase is awarded pursuant to a particular bid process, the purchasing officer shall keep a written record of the bid information for a period of six months following the City's decision not to award the purchase.

(f) State or federal funding. Any purchases made with state or federal funds shall comply with all laws, rules, and regulations made applicable by the funding source.

(Ord. No. 08-15, § 6, 12-9-2008)

(a) Thirty thousand dollars ($30,000.00) or less. Professional services contracts of thirty thousand dollars ($30,000.00) or less may be awarded by the Chief Administrative Officer or his or her designee by any alternative procedure or the non-public project informal bidding procedures as defined in this Chapter.

(b) More than thirty thousand and one dollars ($30,001.00). Professional services contracts of more than thirty thousand and one dollars ($30,001.00) shall, except as otherwise provided in this Chapter, be awarded by the City Council pursuant to either the non-public project formal bidding procedures or non-public project informal bidding procedures as determined by separate resolution of the City Council.

(c) Review of scope of services. The purchasing officer and department director shall review and approve, or provide for the review and approval of, the scope of services prepared for every professional services contract.

(d) City Council review of scope of services. The City Council shall review and approve the scope of services prepared for every professional services contract of more than fifty thousand dollars ($50,000.00).

(e) Award. Contracts for professional services shall be awarded to the contractor who will best serve the interests of the City, taking into account the demonstrated competence, professional qualifications, and suitability for the project in general. The City may consider cost of professional services if the City determines it to be a relevant factor under the circumstances.

(f) Subsequent contract awards, amendments, extensions, or renewals. Notwithstanding anything herein to the contrary, the Chief Administrative Officer shall not award a subsequent contract to the same individual or entity for the same or similar services, or amend, extend, or renew such a contract, without obtaining the City Council approval authority when the award, amendment, extension, or renewal will result in the City paying an aggregate amount in excess of the approval authority of the Chief Administrative Officer to the individual or entity in any given fiscal year.

(g) Dollar limits and change orders or amendments. The dollar limits approved by separate resolution of the City Council shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless an exception applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount. For professional service agreements awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the Chief Administrative Officer or his or her designee shall have authority to approve contract amendments or change orders up to twenty-five (25) percent of the original contract amount.

(h) No bid splitting. The city shall not split a project, work, service or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this Chapter.

(Ord. No. 08-15, § 6, 12-9-2008)

(a) Thirty thousand dollars ($30,000.00) or less. Purchases of materials, supplies, and equipment of thirty thousand dollars ($30,000.00) or less may be awarded by the Chief Administrative Officer or his or her designee by any alternative procedure or the non-public project informal bidding procedures as defined in this Chapter.

(b) More than thirty thousand and one dollars ($30,001.00). Purchases of materials, supplies, and equipment of more than thirty thousand and one dollars ($30,001.00) shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to either the non-public project formal bidding procedures or non-public project informal bidding procedures as determined by separate resolution of the City Council.

(c) Review of specifications. The purchasing officer and department director shall review and approve, or provide for the review and approval of, the specifications prepared for every purchase of materials, supplies, and equipment.

(d) Award. Contracts for the purchase of materials, supplies, and equipment of thirty thousand dollars ($30,000.00) or less, if awarded, may be awarded in the best interests of the City. Contracts for the purchase of materials, supplies, and equipment of more than thirty thousand dollars ($30,000.00), if awarded, shall be awarded to the lowest responsive and responsible bidder. If two (2) or more bids are the same and the lowest, the City may accept the one it chooses.

(e) Dollar limits and change orders or amendments. The dollar limits approved by separate resolution of the City Council shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless an exception applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contract amount. For materials, supplies, and equipment contracts awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the Chief Administrative Officer, or his or her designees shall have authority to approve contract amendments or change orders up to twenty-five (25) percent of the original contract amount.

(f) No bid splitting. The City shall not split a project, work, service, or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this Chapter.

(Ord. No. 08-15, § 6, 12-9-2008)

(a) Uses of the non-public project formal bidding procedure. A formal bidding procedure shall be used whenever formal bidding is required by this Chapter.

(b) Distribution of notice inviting formal bids or request for proposals. A notice inviting formal bids or a request for proposals or qualifications, as appropriate, shall be posted at least once and at least ten (10) calendar days before the date of opening the bids or proposals. The notice shall be published once at least ten (10) calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the City, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the City or posted in at least three (3) public places in the City which have been designated as the places for posting of public notices.

The notice inviting formal bids or request for proposals or qualifications shall also be posted on the City's public bulletin boards and provided directly to bidders, vendors, or contractors on the City's approved list for the type of purchase or service at issue. The City shall endeavor to receive formal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals or qualifications may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder. If the purchasing officer and the director of the using department certify that, to the best of their knowledge, there is no local source or local provider available for the project, the notice inviting bids or the request for proposals, as appropriate, may be distributed to a list of qualified vendors maintained by the purchasing officer and/or published in a trade journal appropriate to the project.

(c) Contents of notice inviting formal bids or request for proposals. At a minimum, the notice inviting formal bids or request for proposals or qualifications shall:

(1) Describe the project or purchase in general terms;

(2) State how to obtain more detailed information about the project or purchase;

(3) State the date, time, and place for the submission of bids or proposals; and

(4) Include any other information required by state or local law, as determined by the City Attorney.

Bids for purchases of more than one hundred thousand dollars ($100,000.00) shall be sealed bids.

(d) Proprietary projects or sole source products. If the purchasing officer or the director of the using department certifies that, to the best of his or her knowledge, the project, product, or service is proprietary in nature and can be obtained only from one vendor or contractor, and that no equivalent products or services are available, the notice inviting formal bids or request for proposals may be sent exclusively to such vendor or contractor.

(e) Contents of remaining bid and contract documents. The contents and form of the remaining bid and contract documents shall be approved by the purchasing officer, as well as the City Attorney.

(f) Bidder's security. When required by applicable law or determined necessary by the Chief Administrative Officer or purchasing officer, each bidder shall be required to provide appropriate security to guarantee its bid. Upon refusal or failure to execute the required contract or agreement and provide all required information and documentation, the full amount of the bid security shall be forfeited, except to the extent limited by applicable law.

(g) City's authority. The City may reject any or all bids or proposals received, and may waive any minor irregularities in each bid or proposal received.

(h) No bids received; Same bids. If no bids are received, the City may award the contract by any alternative procedure. If two (2) or more bids are the same and the lowest, the city may accept the one it chooses.

(Ord. No. 08-15, § 6, 12-9-2008)

(a) Uses of non-public project informal bidding procedure: This informal bidding procedure shall be used whenever informal bidding is allowed for a purchase which does not involve a public project.

(b) Distribution of notice inviting informal bids or request for proposals. A notice inviting informal bids or request for proposals, as appropriate, shall be provided. The notice inviting informal bids or requests for proposals shall be provided to at least three vendors or contractors, and the City shall endeavor to receive informal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals or qualifications may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder.

(c) Contents of notice inviting informal bids or request for proposals. At a minimum, the notice inviting informal bids or request for proposals shall:

(1) Describe the project or purchase in general terms;

(2) State how to obtain more detailed information about the project or purchase;

(3) State the date, time, and place for the submission of bids or proposals; and

(4) Include any other information required by state or local law, as determined by the purchasing officer or City Attorney. Bids for purchases of more than one hundred twenty-five thousand dollars ($125,000.00) shall be sealed bids.

(d) Proprietary projects or sole source products. If the purchasing officer or the director of the using department certifies that, to the best of his or her knowledge, the project, product, or service is proprietary in nature and can be obtained only from one vendor or contractor, and that no equivalent products or services are available, the notice inviting formal bids or request for proposals may be sent exclusive to such vendor or contractor.

(e) Contents of remaining bid and contract documents. The contents and form of the remaining bid and contract documents shall be approved by the purchasing officer, as well as the City Attorney.

(f) Bidder's security. When required by applicable law or determined necessary by the Chief Administrative Officer or purchasing officer, each bidder shall be required to provide appropriate security to guarantee its bid. Upon refusal or failure to execute the required contract or agreement and provide all required information and documentation, the full amount of the bid security shall be forfeited, except to the extent limited by applicable law.

(g) City's authority. The City may reject any or all bids or proposals received, and may waive any minor irregularities in each bid or proposal received.

(h) No bids received; Same bids. If no bids are received, the City may award the contract by any alternative procedure. If two (2) or more bids are the same and the lowest, the city may accept the one it chooses.

(Ord. No. 08-15, § 6, 12-9-2008)

"Alternative procedure" means purchasing materials, supplies, services, (professional, consulting, public works, maintenance, and other general services) or equipment by negotiated contract, purchase order or any other procedure outlined in the City's purchasing policies and procedures manual and consistent with this Chapter. A type of alternative procedure may include, but is not limited to, what is referred to as a "simplified pricing procedure" wherein the authorized contracting party, or his or her designee, obtains oral price quoted from one or more potential contractors or suppliers, and accepts the quotes which is determined to be in the best interests of the City.

(Ord. No. 08-15, § 6, 12-9-2008)

Competitive bidding, either formal or informal, is not required for non-public projects in the situations provided for in this section. The purchasing officer shall establish rules and regulations within the Purchasing Policies and Procedures Manual which are necessary to implement the provisions of this section. Under the conditions outlined herein and in the Purchasing Policies and Procedures Manual, any alternative procedure, including no bidding, may be used with the Chief Administrative Officer's approval.

(a) Emergencies. When the purchasing officer and the authorized contracting party, with the approval of the Chief Administrative Officer, determine that an emergency exists. For purposes of this section, an emergency shall be defined as a situation which makes competitive bidding, either formal or informal, impractical or not in the best interests of the City. Concurrence that an emergency exists shall be approved by four-fifths (4/5) vote of the City Council.

(b) No competitive market. When the purchasing officer and the authorized contracting party, with the approval of the Chief Administrative Officer, determines, in accordance with applicable law, that a competitive market does not exist and that no competitive advantage will be gained by the public bidding process.

(c) Competitive bidding already completed. When the purchasing officer and the authorized contracting party, with the approval of the Chief Administrative Officer, determines that:

(1) A competitive bid procedure has been conducted by another public agency including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), the U.S. Communities Government Purchasing Alliance, or the Western States Contracting Alliance (WSCA); and

(2) The price to the city is equal to or better than the price to that public agency.

(d) State purchase. When the purchase is made on behalf of the City by the State Department of General Services.

(e) Purpose of bidding is otherwise accomplished. When the purchasing officer and the authorized contracting party, with the approval of the Chief Administrative Officer, determine that it is in the best interest of the City and its administrative operations to dispense with public bidding for non-public projects under this chapter. Concurrence that waiver of the applicable bidding requirements is in the best interests of the City shall be approved by four-fifths (4/5) vote of the City Council.

(f) No bids received. When no bids are received through the non-public project formal or informal bidding procedures.

(g) Natural gas, water, and electricity. The purchase of natural gas, water and electricity agreements with privately-owned, federally-owned, state-owned and locally-owned utilities and agencies for the purchase and sale of natural gas, water and electricity.

(h) Mandated expenditures. Expenditures mandated by law or regulation, such as county booking fees, waste disposal fees, or other non-negotiable permit, use, or application fees.

(i) Otherwise authorized. When otherwise authorized by this chapter or applicable law.

(Ord. No. 08-15, § 6, 12-9-2008)