Chapter 28A — PURCHASES AND SALES

The following terms, whenever used in these rules, shall be construed as follows:

(a)

Department. Any department, agency, commission, bureau or other unit of the city government which derives its support wholly or in part from the city.

(b)

Lowest responsible bidder. In addition to the price as submitted in a responsive bid, the "lowest responsible bidder" will be determined after the following factors have been considered:

(1)

The ability, capacity and skill of the bidder to perform the contract or provide the service required;

(2)

Whether the bidder has the facilities to perform the contract or provide the service promptly or within the time specified without delay or interference;

(3)

The character, integrity, reputation, judgment, experience and efficiency of the bidder;

(4)

The bidder's record of performance of previous contracts or services;

(5)

The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

(6)

The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

(7)

The quality, availability and adaptability of the supplies, equipment or services to the particular use required;

(8)

The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

(9)

The number and scope of conditions attached to the bid.

(c)

Responsive bid. An offer submitted by a responsible bidder to furnish supplies, equipment or services in conformity with the specifications, delivery terms and conditions and other requirements included in the invitation for bids.

(d)

Responsible bidder. A bidder who submits a responsive bid and who is not only financially responsible but is possessed of the resources, judgment, skill, ability, capacity and integrity requisite and necessary to perform the contract according to its terms.

(e)

Purchases. Purchases of supplies, equipment and personal property shall include leases or rentals as well as transactions by which the city acquires ownership.

(f)

Supplies and equipment. Any and all articles, things or personal property furnished to or used by any department.

(g)

Bidder's list. A list of qualified contractors, identified according to categories of work. The minimum criteria for the development and maintenance of the list shall be determined by the California Uniform Construction Cost Accounting Commission.

(h)

Change order. A written authorization from the city directing an addition, deletion or revision to an awarded purchase order or contract.

(i)

Public project. As defined in section 22002 of the Public Contract Code, "public project" means any of the following, but does not include "maintenance work":

(1)

Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.

(2)

Painting or repainting of any publicly owned, leased, or operated facility.

(j)

Maintenance work includes all of the following:

(1)

Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purpose.

(2)

Minor repainting.

(3)

Resurfacing of streets and highways at less than one (1) inch.

(4)

Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

(5)

Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 13-OR0009-1, § 1, 1-2-2013)

Editor's note— Ord. No. 13-OR0009-1, § 1, adopted Jan. 2, 2013, set out provisions adding subsections 28A.1(f)—(i). To maintain the existing subsection 28A.1(f), and at the editor's discretion, these provisions have been added as subsections 28A.1(g)—(j).

The centralized purchasing system set out in this chapter is adopted in order to establish efficient procedures for the purchase of equipment, supplies and services and to secure these for the city 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. 79-25, § 1, 7-11-79)

The city manager, by virtue of section 2.10(j) of this Code, is responsible for the purchase of all of the supplies for the departments or divisions of the city. By adoption of this chapter it is the intent of the city council to continue to make the city manager responsible for the purchases of all supplies for the city, but does provide for the delegation of the duties by the city manager to the finance director and the establishment of a central purchasing department. The city manager shall promulgate administrative rules to implement this chapter.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1a, 10-5-05)

There is a created a centralized purchasing department in which is vested authority for the purchase of equipment, supplies and services, except for public projects. Public projects shall be administered by the city engineer or as otherwise directed by the city manager. In lieu of establishing a centralized purchasing department, the city manager may retain purchasing authority, and may delegate such authority to department directors. Acting under the delegated authority, division directors shall comply with this chapter and any rules promulgated to implement this chapter.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1b, 10-5-05; Ord. No. 13-OR0009-1, § 1, 1-2- 2013)

The purchasing officer shall have supervision of the purchasing division. The purchasing officer shall be responsible to the director of finance. The purchasing officer shall perform the duties and responsibilities as outlined in the job description for purchasing officer approved and adopted by the city council.

(Ord. No. 79-25, § 1, 7-11-79)

The purchasing officer may authorize in writing any department to purchase or contract for specified equipment, supplies and services independently of the purchasing division, but he shall require that such purchases or contracts be made in conformity with the procedures established by this chapter and shall further require periodic reports from the agency on the purchases and contracts made under such written authorization.

(Ord. No. 79-25, § 1, 7-11-79)

No obligation for the payment of equipment, supplies and services shall be incurred by the city except as prescribed by this chapter. Any agreement for the purchase of equipment, supplies and services made contrary to the provisions of this chapter shall be void and any claim or demand against the city based thereon shall be invalid.

(Ord. No. 79-25, § 1, 7-11-79)

All purchases of equipment, supplies, services, and public projects and the sale of surplus personal property shall be carried out in accordance with the procedures provided for in this chapter.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 13-OR0009-1, § 1, 1-2-2013)

The purchase of equipment, supplies, and services, in excess of ten thousand dollars ($10,000.00) in a single purchase, shall be made only by purchase order. No purchase order shall be issued without the prior approval of the purchasing officer or his designated representative.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1c, 10-5-05)

Departments shall submit requests for equipment, supplies, and services to the purchasing officer by standard requisition forms or by such other means as may be established by the purchasing rules and regulations.

(Ord. No. 79-25, § 1, 7-11-79)

Except in cases of emergency or in cases where specific authority has been first obtained from the city manager, the purchasing officer shall issue no purchase orders whatsoever for supplies, services and equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.

Ord. No. 79-25, § 1, 7-11-79)

Except as otherwise provided in this chapter, purchases of supplies, services and equipment of estimated value greater than one-hundred thousand dollars ($100,000.00) shall be by competitive written bid, and shall be awarded pursuant to the procedures described in this chapter and the rules promulgated hereunder. The purchasing officer shall solicit bids in writing from prospective vendors by such means as are calculated to ensure maximum participation by qualified vendors in the bid competition.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1d, 10-5-05; Ord. No. 24-OR0205-1, § 4a, 5-8- 2024)

In procurements where competitive bidding is utilized, the purchasing officer may prescribe in his notice that each such bid be accompanied by a cash deposit not to exceed twenty-five (25) percent of the amount of the bid. Unsuccessful bidders shall be entitled to the return of bid security upon award of said bid to another bidder. A successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless the city is responsible for such delay. The purchasing officer may, upon default of the successful bidder by refusal or failure to execute the contract, award the contract to the next lowest responsible bidder. In such case, the amount of the original lowest bidder's security may be applied to the difference between the low bid and the second lowest bid, and the remainder, if any, shall be returned to the defaulting original lowest bidder.

(Ord. No. 79-25, § 1, 7-11-79)

Bids for purchases in excess of one hundred thousand dollars ($100,000.00) shall either be submitted to the purchasing officer in a sealed envelope and shall be identified as such on the outside cover or be submitted electronically through an online bid board. Bids submitted in envelopes shall be opened in public at the time and place stated in the request for quotation. A tabulation of all bids tendered shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the award.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1e, 10-5-05; Ord. No. 24-OR0205-1, § 4b, 5-8- 2024)

For good cause appearing, the purchasing officer may reject any or all bids tendered and readvertised. He may waive the informality of any bid presented to him.

(Ord. No. 79-25, § 1, 7-11-79)

The award of any bid shall be made by the purchasing officer to the lowest responsible bidder except as otherwise provided herein. Award may be by item, if the purchasing officer deems such manner of award to be in the best interest of the city.

(Ord. No. 79-25, § 1, 7-11-79)

The purchasing officer shall have authority to require a performance bond before making any award or entering into any contract in such amount as he shall find reasonably necessary to protect the best

interests of the city. If the purchasing officer requires a performance bond, the form of the acceptable bond and amount thereof shall be described in the notices inviting bids.

(Ord. No. 79-25, § 1, 7-11-79)

The city council may authorize the purchase of highly technical supplies, services and equipment by competitive negotiations when:

(a)

The service involves a specialized knowledge or personal skill such as that possessed by attorneys, architects, accountants, engineers and specialized consultants; or

(b)

The supplies or equipment are such that suitable technical or performance specifications are not readily available, the city is not able to develop description specifications and proposals for the purchase would be more advantageous to the city. When the purchases are made by competitive negotiations the best offer, as judged against proposal evaluation criteria, shall be accepted. The use of competitive negotiations is not intended to be used for the purpose of avoiding the bidding procedures as set forth in this chapter.

(Ord. No. 79-25, § 1, 7-11-79)

Except for public projects, purchasing of supplies, equipment and contractual services of an estimated value in the amount of one hundred thousand dollars ($100,000.00) or less may be made without observing the formal competitive bid requirement prescribed in section 28A.12, but shall be subject to the minimum bid requirement of this chapter wherever practicable.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, § 1f, 10-5-05; Ord. No. 13-OR0009-1, § 1, 1-2-2013; Ord. No. 24-OR0205-1, § 4c, 5-8-2024)

All purchases and procurements, excepting open market purchases, as defined in section 28A.19, shall, wherever possible, be based on at least three (3) bids or quotations.

(Ord. No. 79-25, § 1, 7-11-79)

The purchasing officer shall keep a record of all purchases and procurements for a period of at least two (2) years after the submission of the bid, including a record of all sources contacted and their responses, if any.

(Ord. No. 79-25, § 1, 7-11-79)

The purchasing officer may inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifications set forth in the order or contract. The purchasing officer 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. No. 79-25, § 1, 7-11-79)

All using agencies shall submit to the purchasing officer, at such time and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to dispose of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment.

(Ord. No. 79-25, § 1, 7-11-79)

The following purchases and procurements are exempted from the bidding requirements of this chapter:

(a)

Emergency purchases and procurements. "Emergency," as used in this chapter, 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.

(1)

In case of emergency which requires the immediate procurement of equipment, supplies or service, the city manager may authorize the purchasing officer to secure by open market purchase, at the lowest obtainable price, any equipment, supplies or service regardless of the amount of the expenditure. A full report of the circumstances justifying all emergency purchases shall be submitted to the city manager by the department head requesting said purchase. For any such emergency purchase of a value greater than twenty-five thousand dollars ($25,000.00), such report shall be forwarded to the city council for its information.

(2)

In case of emergency when repair or replacements are necessary, the city may proceed at once to replace or repair any public facility without adopting plans or specifications, or giving notice for bids to let contracts. The work may be done by force account, by one (1) or more contractors, or a combination of the two (2).

(3)

In case of emergency, if notice for bids to let contracts for a public project will not be given, the city shall comply with Public Contract Code Section 22050.

(b)

Interagency purchase agreements. Procurements utilizing purchasing agreements maintained by other public agencies for the provision of equipment, supplies or services to such agencies.

(c)

Sole source procurements. In those cases where the procurements of any equipment, supplies or service is obtainable only from a single or sole source.

(d)

Open market purchases. Open market purchases and procurements of equipment, supplies or services when the estimated value of the items or services to be procured is two thousand five hundred dollars ($2,500.00) or less.

(Ord. No. 79-25, § 1, 7-11-79; Ord. No. 05-OR0612-1, §§ 1g, 1h, 10-5-05; Ord. No. 13-OR0009-1, § 1, 1-2- 2013)

All procurement and contractual transactions, regardless of whether negotiated or advertised and without regard to dollar value, shall be conducted in a manner so as to provide maximum open and free competition.

(Ord. No. 79-25, § 1, 7-11-79)

The purchase of books, periodicals and library equipment and supplies for the Oceanside Library will be done by the librarian and are hereby exempt from the provisions of this chapter. The purchase of election supplies, the printing of bonds and special assessment supplies are hereby exempt from the provisions of this chapter.

(Ord. No. 79-25, § 1, 7-11-79)

The city manager is hereby authorized to provide the purchasing services for the Oceanside Small Craft Harbor District; provided, the city is reimbursed for the reasonable cost thereof, and provided, further, that the board of directors of such harbor district requests such service.

(Ord. No. 79-25, § 1, 7-11-79)

(a)

Informal bid procedures.

(1)

Public projects, 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.

(b)

Notice inviting informal bids.

(1)

Notice to contractors inviting informal bids shall be provided in accordance with either paragraphs (i) or (ii) or both.

i.

The City of Oceanside shall maintain a list of qualified contractors, identified according to categories of work. Minimum criteria for development and maintenance of the contractors list shall be determined by the California Uniform Construction Cost Accounting Commission. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless a product or service is proprietary. All mailing of notices to contractors pursuant to this subdivision shall be completed not less than ten (10) calendar days before bids are due.

ii.

The City of Oceanside may elect to mail, fax, or email a notice inviting bids to all construction trade journals specified in California Public Contract Code Section 22036.

(c)

Award of contracts.

(1)

The city engineer is authorized to award informal contracts up to the maximum dollar amount allowable for informal projects as determined by the California Public Contract Code Section 22032.

(Ord. No. 13-OR0009-1, § 1, 1-2-2013; Ord. No. 19-OR0704-1, § 1, 11-6-2019)