Mendota Municipal Code Ch. 2.48 Purchasing System

As used in this chapter, the following terms are defined as follows:

"Department" and "using department" mean the departments, offices or other organizational units of the city of Mendota.

"Professional services" means services of attorneys, physicians, architects, engineers, planners and others possessing a high degree of technical skill.

"Public works project" means the construction, improvement or repair, but not including the maintenance of: (1) public buildings and other works, (2) embankments or other works for against flooding, (3) streets and related improvements, including lighting and signaling systems, (4) sewer and water systems, (5) parks, playgrounds, recreational and scenic areas.

"Services" means work performed by independent contractors, with or without the furnishing of materials, not including contracts for public works projects and professional services.

"Supplies," "materials" and "equipment" mean articles or things furnished to, used or rented by any department of the city, including items purchased by the city and furnished to contractors for use in public works projects.

"Surplus property" means articles, supplies, parts or equipment which are no longer useful to the city.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.001)

In order to establish efficient procedures for the purchase of supplies, materials, equipment and services at the lowest possible cost commensurate with quality, to exercise positive financial control over purchases, and to clearly define authority for the purchasing function, a centralized purchasing system is adopted.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.002)

There is created a centralized purchasing office within the city finance department, vested with authority for the purchase of supplies, materials, equipment and services for the city. The negotiation, administration and contracting for public works projects in excess of five thousand dollars ($5,000.00) shall not be the responsibility of the centralized purchasing office.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.003)

The director of finance shall be the purchasing agent. The purchasing agent shall:

A. Purchase or contract for the purchase of supplies, materials, equipment and services for all city departments, including lease-purchase agreements;

B. Procure supplies, materials, equipment and services;

C. Obtain full and open competition on purchases;

D. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

E. Prescribe and maintain forms appropriate for the operations of the purchasing office;

F. Supervise the inspection of supplies, materials, equipment and services purchased in order to insure conformance with specifications;

G. Recommend the transfer of surplus or unused supplies, materials and equipment between departments as needed, and dispose of, through sale or other means, surplus property and scrap materials;

H. Maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of the purchasing office;

I. Have authority to operate a central store for commonly used supplies and materials in order to take advantage of quantity purchases; and

J. Apply the principles of total cost and life cycle cost analyses in the evaluation of equipment purchases.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.004)

The purchasing agent may, in writing, authorize any department to purchase or contract for the purchase of specified supplies, materials, equipment and services independent of the purchasing office. All such purchases or contracts shall be made in conformity with the procedures established by this chapter. The purchasing agent may at any time rescind such authorization.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.005)

Using departments shall submit to the purchasing agent requisitions for supplies, materials, equipment and services required for their operations, in such manner, at such times and for such future periods as the purchasing agent shall prescribe, and for the purposes and within the limits of funds appropriated therefor.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.006)

Editor's note— Section 1 of Ord. No. 12-08, adopted Nov. 27, 2012, repealed § 2.48.070, which pertained to surplus supplies and equipment, and derived from prior code § 2.03.007; and Ord. No. 91-07, § 1 (part).

Except in cases of emergency, the purchasing agent shall not issue any purchase order nor shall any contract be approved for supplies, materials, equipment or services unless there exists an unencumbered appropriation in the fund account against which such purchase or contract is to be charged.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.008)

A. Except as otherwise provided, all purchases and contracts for the purchase of supplies, materials, equipment and services, and all sales of property which have been found not to be required for public use, shall be based on competitive bids.

B. It shall be the responsibility of the purchasing agent to evaluate each purchase and surplus property action to determine the appropriate method of purchase or disposal.

C. Professional services may be engaged without competitive bidding, provided that a reasonable number of prospective service providers are given an opportunity to submit their qualifications for the desired service. The specific procedures for hiring professionals shall vary with the nature and extent of the required service. The award shall be made to the professional deemed most qualified and capable of providing the required service in a timely and acceptable manner. Compensation shall be subject to negotiation. If agreement cannot be reached with the designated professional, negotiations shall be terminated, and negotiations shall be initiated with the next best qualified and capable professional service provider. The renewal, extension or amendment of contracts with professional service providers shall not require a new competitive process except upon order of the city council.

D. Emergency purchases and contracts for supplies, materials, equipment and services may be made without competitive bidding when the purchase or contract for the item or items is immediately necessary for the continued operation of a city department; is immediately necessary for the preservation of life and property; or is immediately necessary for the health, safety or welfare of the public, or for the protection of property. The determination that an emergency exists shall be made by the city administrator in writing to the city council, setting forth the specific facts establishing the emergency.

E. If the purchasing agent determines that limitations on the source of supply, necessary restrictions in specifications, necessary standardization, quality considerations or other valid reasons for proceeding without competitive bidding are present, purchases may be made without competitive bidding. The specific facts establishing this exemption from competitive bidding shall be reported in writing by the purchasing agent to the city council.

F. Regular expenditures for public utility services shall be exempt from the competitive bid procedures.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.009)

A. If the amount of any purchase or contract exceeds five thousand dollars ($5,000.00), the purchase or contract shall be awarded by the city council. Purchases or contracts less than five thousand dollars ($5,000.00) may be awarded by the purchasing agent.

B. No purchase by any person, other than as provided in this chapter, shall be binding upon the city or constitute a lawful charge against city funds.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.010)

A. Restrictions on Amount. If the expenditure for a service or article, or for a class of articles normally obtained from the same sources of supply, or from the sale of surplus property is estimate to be ten thousand dollars ($10,000.00) or more, the purchase or sale shall be by formal bid. When the cost or value of the item is less than ten thousand dollars ($10,000.00) the purchase or sale may be made in accordance with the small purchase procedures set forth in Section 2.48.130.

B. Formal Bid Procedure—Competitive Sealed Bids.

1. Conditions for Use. All contracts and/or purchases shall be by competitive sealed bid except as otherwise provided in this chapter.

2. Invitations for Bids. The invitation for bids (IFB) shall include the specifications and contractual terms and conditions applicable to the procurement.

3. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold; shall state where bid blanks and specifications may be obtained and the time and place for opening bids.

4. Published Notice. Notice inviting bids shall be published at least ten (10) days before the date set for opening the bids. Notice shall be published at least once in a newspaper of general circulation in the city or the county of Fresno. The purchasing agent may waive the requirement to publish the invitation for bids if there is no source of supply in the local area.

5. Bidders' List. The purchasing agent shall solicit sealed bids from all responsible suppliers whose names are on the bidders' list. Suppliers may be disqualified from bidding on city contracts and removed from the bidders' list for a period of up to five years if their performance in dealings with the city has not been satisfactory. Suppliers removed from the bidders' list shall receive written notification of the conditions prompting disqualification.

6. Bidder's Security. When deemed necessary by the purchasing agent, a bidder's security may be prescribed in the invitation to bid. Bids received without the prescribed security shall be considered nonresponsive and shall be rejected. The successful bidder shall be in default and forfeit his/her bid security upon refusal or failure to execute the purchase agreement within ten (10) days after the notice of award was mailed to him/her, unless the city is responsible for the delay. If the award must be made to the next lowest responsible bidder by reason of the default of the lowest responsible bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the lowest bid and the next lowest bid. The surplus, if any, shall be returned to the lowest bidder.

7. Performance Bonds. The purchasing agent may require a performance bond before entering a contract in such amount as he/she shall find reasonably necessary to protect the city. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids. Failure to submit a performance bond within the time prescribed in the notice of award shall constitute just cause for default, annulment of the award and forfeiture of the bidder's security.

8. Insurance and Indemnity. Bids solicited for contractual services or specialized equipment shall include insurance and indemnity clauses.

9. Bid Opening. Sealed bids shall be submitted to the purchasing agent and shall be identified on the envelope as "bids." Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection in the city's purchasing office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

10. Award of Purchase or Contract. Purchases or contracts shall be awarded to the lowest responsive and responsible bidder. In determining the lowest responsible and responsible bidder, the following shall be taken into consideration:

a. The quality, suitability and efficiency of the item;

b. The total or life cycle cost of the equipment;

c. The delivery, discount terms and all other conditions submitted in the bid; and

d. The reputation of the equipment, the service reputation of the bidder, the experience(s) of the city with the bidder or equipment, and all other information and data relevant to the responsibility of the supplier.

11. Rejection of Bids. The city reserves the right to reject any or all bids in whole or in part, and may waive any irregularities or informalities in any bids when such action is considered to be in the best interest of the city. All bids received after the designated closing date and time shall be considered nonresponsive and shall be rejected.

12. Tie Bids. If two or more bids received are in the same total amount, and the unit price, quality and service are equal, and, if there is no evidence of collusion between the bidders and if the circumstances will not permit the readvertising of bids, the city may accept the bid of its choice.

13. Notification of Award. All suppliers participating in the formal bid process shall be notified in writing of the terms and conditions of the successful award.

C. In lieu of publishing and receiving its own bids, the purchasing agent may elect to utilize bids under a state, county or other city bid package.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.011)

A. Conditions for Use. When the purchasing agent determines, in writing, that the use of competitive sealed bids for purchases in excess of ten thousand dollars ($10,000.00) is either not practical or not advantageous to the city, a contract or purchase may be entered into after competitive negotiation as herein authorized. This procedure may not be used for public works projects in excess of five thousand dollars ($5,000.00).

B. Request for Proposal (RFP). Proposals shall be solicited through a request for proposal (RFP).

C. Notice Requesting Proposal. Public notice of the request for proposal shall be given in the manner provided in Section 2.48.110(B)(2) and (3), to those vendors or service providers who the purchasing agent deems capable of satisfying the city's requirements.

D. Receipt of Proposals. Sealed proposals shall be submitted to the purchasing agent by the date and time specified on the prescribed forms and shall be identified by a request-for-proposal number. Proposals shall be handled so as to permit no disclosure of the identity of any offeror or the contents of any proposal to competing offerors during the process of negotiation. A record shall be prepared containing the name of each offeror, the number of modifications received, if any, and a description sufficient to identify the item offered. This record shall be open for public inspection after the contract is awarded.

E. Proposal Evaluation. The RFP shall include the criteria for evaluation and the relative importance of price and other factors.

F. Negotiation. The most qualified and responsive proposals (minimum of three) will be selected for contract negotiation. Negotiations will be conducted individually with each qualified supplier. All elements of the negotiation process shall be documented by the purchasing agent. Responsible offerors shall be accorded fair and equal treatment with respect to opportunities for discussion and revision of their proposals. Revisions in writing may be permitted prior to award of the contract for the purpose of obtaining the best final offer.

G. Award. The award shall be made to the responsible offeror whose proposal is determined to be the most advantageous to the city, taking into consideration price and the criteria established for evaluation, as set forth in the RFP. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.

H. Rejection of Proposals. The city reserves the right to reject any or all proposals in whole or in part and may waive any irregularities or informalities in proposals when such action is considered to be in the best interest of the city.

I. Notification of Award. All suppliers participating in the, competitive negotiation process shall be notified in writing of the terms and conditions of the successful award.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.012)

Any contract or purchase not exceeding ten thousand dollars ($10,000.00) may be made in accordance with the small purchase procedures; provided, however, that requirements shall not be artificially divided so as to constitute a small purchase under this section. This section shall not apply to public works projects in excess of five thousand dollars ($5,000.00).

A. For purchases up to five hundred dollars ($500.00), each department head is authorized to exercise his/her discretion to make purchases so as to promote the efficiency of city service.

B. For purchases in excess of five hundred dollars ($500.00), but not more than two thousand dollars ($2,000.00), no less than three suppliers shall be solicited to submit telephone quotations. All offers shall be recorded in writing by the purchasing agent and maintained as a public record open for inspection for a period of one year from date of award. The award shall be made to the lowest responsive and responsible offeror.

C. For purchases in excess of two thousand dollars ($2,000.00), but not more than ten thousand dollars ($10,000.00) the procedures set forth in subsection B of this section shall apply, except that the offers shall be in writing.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.013)

The city shall inspect supplies, materials and equipment delivered and contractual services performed to determine their conformity to the specifications set forth in the order or contract. The purchasing agent shall have 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.

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.014)

In computing bids, offers and quotations on all materials, supplies, equipment and services purchased by the city, preference may be granted to responsible local vendors by an amount equal to five percent of the net bid. The granting of this local vendor's preference shall be based on a determination by the purchasing agent that quantity and quality of the local product is equal to that of the next lowest bidder. This local vendor preference shall not be applicable to public works projects in excess of five thousand dollars ($5,000.00).

(Ord. 91-07 § 1 (part), 1991: prior code § 2.03.015)

(Ord. No. 14-06, § 1, 11-12-2014)