Murrieta Municipal Code Ch. 3.08 Purchasing System

In order to establish efficient procedures for the purchase of services, supplies 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, a purchasing system is adopted.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.010)

A. The city manager, or his or her designee(s), shall be known as the "purchasing officer" or “purchasing agent” for purposes of this chapter. The purchasing agent, or his or her designee(s), shall be the head and have general supervision of purchasing functions. The duties of purchasing agent may be combined with those of any other office or position and may be shared among more than one office or position.

B. The purchasing agent or other authorized personnel shall have the authority to:

1. Purchase or contract for services, supplies and equipment, or contracts for public projects, required by any city department in accordance with purchasing procedures prescribed in this chapter, such administrative regulations as the purchasing agent shall adopt for the internal management and operation of purchasing, and such other rules and regulations as shall be prescribed by the city council or the city manager;

2. Negotiate and recommend execution of contracts for the purchase of services, supplies and equipment and public projects;

3. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

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

5. Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the city;

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. Prescribe and maintain such forms as are reasonably necessary for the operation of this chapter and other rules and regulations;

9. Supervise the inspection of supplies and equipment purchased to ensure conformance with specifications;

10. Recommend the transfer of surplus or unused supplies and equipment between departments as needed;

11. Maintain an approved vendors list, vendors' catalogue file and records needed for the efficient operation of purchasing functions.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.030)

The purchasing agent or designee(s) shall be responsible for determining that the regulations and procedures in this chapter are carried out.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.040)

Using departments shall submit requests for supplies, equipment, or services to the purchasing agent or designee(s) by standard requisition forms, or by other means as may be established by the purchasing rules and regulations.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.070)

Purchases of supplies and equipment shall generally be made only by purchase orders, subject to limited exceptions authorized by the purchasing agent. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the purchasing agent or designated representative has been obtained.

(Ord. 567 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.080)

Except in cases of emergency, the purchasing agent shall not issue any purchase order for supplies or equipment or authorize the procurement of services unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.090)

Appropriate personnel within each ordering department shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order. At his/her discretion, 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. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.100)

Except as otherwise provided in this chapter, public projects, as defined in Section 20161 of the California Public Contract Code, which exceed five thousand dollars ($5,000.00), shall be awarded to the lowest responsible bidder in compliance with the procedures and requirements of the Public Contract Code including, without limitation, requirements related to bid security, publication and content of bid notices, contract awards, etc. Except as otherwise provided in this chapter, public works contracts over seventy-five thousand dollars ($75,000.00) shall be awarded by the city council.

(Ord. 567-21 Exhibit A, 2021)

In addition to the labor and materials bond required by Civil Code Section 9550, et seq., a faithful performance bond shall be required for all public projects in excess of twenty-five thousand dollars ($25,000.00), unless waived by the city council, in an amount reasonably necessary to protect the best interests of the city. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

(Ord. 567-21 Exhibit A, 2021)

Notwithstanding Section 3.08.080 of this code, the city council has adopted a resolution electing to make the city subject to the informal procedures set forth in the Uniform Public Construction Cost Accounting Act, Section 22000, et seq. of the California Public Contract Code (the “Act”), and has notified the State Controller of such election. As such, public project, as defined by the Act and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq. of the Public Contract Code. When utilizing the alternative procedures authorized by this section for public projects as to which formal bidding procedures are not required, the provisions of Section 3.08.100 of this code shall be complied with.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.330)

The following provisions shall be complied with in selecting contractors to perform public projects pursuant to Section 22032 of the Public Contract Code and Section 3.08.090 of this code:

A. The city shall maintain a list of qualified contractors, identified according to categories of work, in accordance with Section 22034 of the Public Contract Code. The list shall be developed and maintained in accordance with criteria established for such lists by the California Uniform Construction Cost Accounting Commission ("Commission").

B. For projects eligible for informal bidding pursuant to subsection (b) of Section 22032 of the Public Contract Code, notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection A above, and/or mailed, faxed, or emailed to all construction trade journals specified by the Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the purchasing agent, provided, however, if the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

C. All mailings of notices to contractors and construction trade journals pursuant to subsection B shall be completed not less than ten calendar days before bids would be due pursuant to such notice.

D. Each notice inviting informal bids shall describe the project in general terms, state how to obtain more detailed information about the project, and specify the time and place for submission of bids.

E. The City Manager, or designee, is authorized to award contracts pursuant to subsection (a) of Section 22032 of the Public Contract Code.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.340)

Purchases of supplies and equipment shall be by bid procedures pursuant to Sections 3.08.120 through 3.08.270. Bidding may be dispensed with only under conditions stated in Sections 3.08.280 and 3.08.295.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.110)

Except as otherwise provided in this chapter, purchases of supplies and equipment of an estimated value greater than seventy-five thousand dollars ($75,000.00) shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure as hereinafter prescribed.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.120)

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

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.130)

Notices inviting formal bids shall be published at least ten days prior to the date of opening of the bids. Notices shall be published at least once in a newspaper of general circulation in the city.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.140)

The purchasing agent shall advertise the pending formal purchases by posting a notice on the public bulletin board at the city offices and/or on the city website.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.160)

When deemed necessary by the purchasing agent, 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 bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his or her bid security upon his or her refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and readvertise.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.170)

The purchasing agent shall have authority to require a faithful performance bond or other bonds in an amount reasonably necessary to protect the best interests of the city before entering into a contract other than a public project contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.175)

Sealed bids shall be submitted to the purchasing agent and shall be identified as "bids" on the envelope. The purchasing officer, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. In the event that the city utilizes an electronic bidding format, bids shall be submitted and opened in accordance with the instructions set forth in the notice inviting bids and related bid materials.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.180)

In its discretion, the city council may reject any and all bids presented and may cause readvertising for bids pursuant to the procedure herein above prescribed. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize rebidding based upon the original specifications or as they may be modified, in accordance with procedures prescribed in this chapter.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.190)

A. Except as otherwise provided in this chapter, formal bid contracts for materials and supplies over one hundred thousand dollars ($100,000.00) shall be awarded by the city council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the city council pursuant to findings and recommendations presented by the purchasing agent at the time of award of contract.

B. Notwithstanding subsection A above, the City Manager, or his/her designee may execute purchase orders or agreements, in a form approved by the City Attorney, for the purchase of fleet vehicles when any individual vehicle purchase is for not more than one hundred thousand dollars ($100,000.00) and the aggregate purchase of multiple vehicles does not exceed the amount allocated for such purchases in that fiscal year’s adopted budget, as amended.

(Ord. 617-25 § 1, 2025; Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.200)

If two or more formal bids received are for the same total amount or unit price, quality and service being equal, and if public interest will not permit the delay of readvertising for bids, the city council, city manager, or purchasing agent, at their prescribed authorization levels in this chapter may, in their discretion, accept one such bid or accept the lowest bid made by and after negotiation with the tie bidders at the time of bid opening or award of contract.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.210)

When no formal bids or no responsive bids are received, the purchasing officer is authorized to negotiate for written proposals, and his/her recommendation shall be presented to the city manager and award, if any, shall be made in accordance with applicable provisions prescribed in this chapter.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.215)

A. The city council, in awarding bids pursuant to Section 3.08.200, shall grant qualified local vendors a bidding preference of three percent for purchase of materials and supplies.

B. For purposes of this section, a "local vendor" shall be defined as any individual, partnership or corporation which regularly maintains a place of business within the corporate limits of the city; and which is shown by the records maintained by the city's finance department as having secured all necessary business licenses and as having paid all applicable fees and taxes imposed by the city.

C. For purposes of this section, "preference" shall mean the reduction factor applied to the bid of a local vendor.

D. For purposes of this section, "reduction factor" shall mean the amount by which any bid or estimate submitted by a local vendor shall be deemed by the city to be reduced as a preference for a local vendor.

(Ord. 567- 21 Exhibit A, 2021; Ord. 184 § 1, 1998)

Purchases of supplies and equipment of an estimated value in the amount of seventy-five thousand dollars ($75,000.00) or less may be made by the purchasing agent in the open market pursuant to the procedure prescribed in Sections 3.08.250 through 3.08.270 of this chapter and without observing the procedure prescribed in Sections 3.08.120 through 3.08.220 of this chapter; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than five thousand dollars ($5,000.00).

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.230)

Open market purchases shall, wherever possible, be based on at least three informal bids, and shall be awarded to the bidder offering the most advantageous bid to the city after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.240)

The purchasing agent or designee shall solicit informal bids by written requests to prospective vendors, or by telephone, or by public notice posted on a public bulletin board at the city offices.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.250)

The purchasing agent shall keep a written record for all open market purchases and informal bids for a period of one year. This record, while so kept, shall be open to public inspection.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.260)

Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following circumstances:

A. When the estimated amount involved is less than five thousand dollars ($5,000.00);

B. When the commodity or service can be obtained from only one vendor;

C. The city manager may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. All emergency purchases, which would otherwise require formal bidding procedures, made pursuant to this section shall be submitted to the city council for ratification at the next regular council meeting after the purchase is authorized;

D. The city council may authorize the execution of contracts for personal services, for professional and consultant services, and for other, nonpublic projects and for contractual services without observing the bidding procedures provided herein where the amount of the contract exceeds the value set forth therein;

E. The city manager is authorized to enter into contracts for personal services, for professional and consulting services and for other contractual services without observing the bidding procedure provided in this chapter where the amount of the contract does not exceed the amount of seventy-five thousand dollars ($75,000.00); provided there exists an unencumbered appropriation in the fund account against which said expense is to be charged;

F. Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity;

G. When the city council finds that adherence to the procedures in this chapter would be inefficient, impractical and unnecessary;

H. The city council may authorize the execution of a lease or leases for office space for the city government without observing the bidding procedures provided herein irrespective of the term of the lease or leases or the amount of rent and other charges to be paid by the city under the lease or leases;

I. The competitive bidding provisions of this chapter shall not apply to purchases and contracts involving the acquisition of information technology supplies, equipment or services including, but not limited to, the acquisition of software and related services. Selection shall be on the basis of requirements and specific evaluation criteria established by the city which result in the best value to the city. Purchases and contracts pursuant to this subsection shall require approval from the city manager or his or her designee.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011: Ord. 3 § 1 (part), 1991: prior code § 3.12.270)

Procedures, rules and regulations governing the solicitation, selection and award of proposals or bids for the furnishing of personal services or professional or consulting services or for other contractual services, the contracts for which may be awarded without observing the bidding procedures provided for in this chapter, shall be as set forth in the city’s purchasing procedures, as may be amended from time to time. Such procedures, rules and regulations shall have as one purpose the obtaining of contractual services of the highest quality together with cost effectiveness. Where the selection of private architectural, landscape architectural, professional engineering, environmental, land surveying, and construction project management services is involved, such procedures shall ensure services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the city, in compliance with the requirements of Government Code Section 4526. Contracts for services over seventy-five thousand dollars ($75,000) shall be awarded by the city council.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.280)

The city council, city manager, or purchasing agent, at their prescribed authorization levels within this chapter, shall have the authority to join with other public and quasi-public agencies in cooperative purchasing plans or programs for the purchase of supplies, services and/or equipment by contract, arrangement, or agreement as allowed by law, provided the city council, city manager, or purchasing agent, at their prescribed authorization levels within this chapter, determines that participation is in the city's best interests and the administering agency has made its purchases in a competitive manner. In addition, the city council, city manager, or purchasing agent, at their prescribed authorization levels, may buy directly from a vendor at a price established by another public agency when the other public agency has made its purchase in a competitive manner.

(Ord. 567-21 Exhibit A, 2021; Ord. 460 § 1 (part), 2011)

The purchasing agent, or his or her designee, must be contacted when city personal property (supplies and equipment) has been deemed excess, obsolete, worn out, no longer usable, or no longer needed by the city, except as provided otherwise in this section. Surplus property disposal forms are to be completed to facilitate transfer of the city property for proper disposal. The city manager or designee will determine the best avenue for disposal, for the benefit of the city. Such avenues include, but are not limited to, the following:

A. Sale. For city property deemed suitable for sale, city manager or designee may offer the city property for sale via the following approved methods:

1. Public Auction. Surplus property may be sold at public auction. Online auctions are an acceptable auction method. City may contract with a professional auctioneer, at its discretion.

2. Sealed Bids. Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest responsible bidder.

3. Selling for Scrap. Surplus property may be sold as scrap if it is deemed that the value of the raw materials exceeds the value of the property as a whole.

4. Negotiated Sale. Surplus property may be sold outright if it is determined that only one known buyer is available or interested in acquiring the property. Advertisement of the sale must be published in a newspaper for at least two weeks prior to the negotiated sale to ensure no other interested buyers are available.

A receipt or other proof of disposal from the outright sale, the contracted auctioneer, licensed scrap dealer, individual buyer, etc. is required and is to be forwarded to the Finance Department. City will return proceeds to the appropriate revenue fund.

All surplus property is for sale “as is” and “where is”, with no warranty, guarantee, or representation of any kind, express or implied, as to the condition, utility or usability of the property offered for sale.

B. Trade-in. Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property.

C. Donation. With the approval of the city manager or designee, the city may donate usable items with a minimal fair market value (such as outdated computer equipment and furniture) to a registered charitable organization or community organization. Surplus property may also be donated to any other public agency or charitable organization exempt under Section 501(c)(3) of the Internal Revenue Code. “Public agency” means the State of California or any agency or subdivision thereof, including any city, county, special district, or school district. A letter from the public agency or organization, acknowledging receipt of the asset(s), is required.

D. Return to Manufacturer. Surplus property may, when possible, be returned to the manufacturer for buy-back or credit toward the purchase of new property. Documentation related to such a transaction shall be forwarded to the Finance Department.

E. Disposal. When the cost of locating a buyer exceeds the estimated sales price of surplus property, the property may be recycled, destroyed, or disposed of as junk.

(Ord. 567-21 Exhibit A, 2021; Ord. 3 § 1 (part), 1991: prior code § 3.12.300)