Article I — CITYWIDE PURCHASING SYSTEM POLICY

SEC. 4-1. PURPOSE.

(A) The purpose of this chapter is to ensure that the city establishes an efficient centralized purchasing system, and that goods, materials, public projects and services are procured at fair and competitive prices.

(B) This chapter provides procedures for the performance of public projects, the purchase of supplies and equipment, and contracting for services.

(C) This chapter shall be interpreted and construed to be consistent with State law.

(Ord. No. 3053)

SEC. 4-2. DEFINITIONS.

For the purposes of Chapter 4, the following definitions and rules shall be observed, unless such would be inconsistent with the manifest intent of the city council:

(A) AGGREGATE VALUE - The total value of the contract or purchase order for the life of that contract or purchase order.

(B) BEST VALUE - The expected outcome of a solicitation that in the city's estimation will provide the greatest overall benefit in response to the requirement, where price, quality, durability, servicing, delivery time, standardization, and/or other factors outlined in the purchasing manual are considered in the evaluation and selection process to minimize negative impacts and enhance the long-term performance and value of a solicitation submission.

(C) CHANGE ORDER- A legally binding document used to make changes to a construction contract for public projects that are necessary to complete the project and do not exceed the scope of the existing contract.

(D) COOPERATIVE PURCHASING - Whereby multiple government agencies, cooperative entities, or jurisdictions enter into a contract to procure from each other or to collectively procure a vendor, contractor or consultant.

(E) CONTRACT - Written instrument, also referred to as an agreement, between the city and a contractor, vendor, or service provider that memorializes the legal obligations of the parties to the contract or agreement.

(F) DESIGN BUILD - A project delivery process in which both the design and construction of a project are procured from a single entity.

(G) EMERGENCY - A sudden, unexpected occurrence demanding immediate action to prevent or mitigate loss or damage to life, health, property, or essential public services.

(1) Regarding public projects, as defined in this chapter, the meaning provided in Cal. Pub. Con. Code, Section 22050 shall control.

(2) Regarding all purchases unrelated to public projects, when a condition or possible safety situation renders solicitation requirements impractical or not in the best

interests of the city and requires approval of the city manager.

(H) FORCE ACCOUNT - Work performed on public projects using internal city resources, including, but not limited to, labor, equipment, materials, supplies and subcontracts of the city.

(I) FORMAL SOLICITATION - A competitive selection process where a response to a solicitation for any purchase other than a public project, must be submitted in a sealed envelope by mail, hand delivery, email or other electronic means, and in conformance with a prescribed format to be opened in public at a specified date and time or evaluated as delineated in the solicitation released, as established in the purchasing manual.

(J) SERVICE CONTRACT - A service that is not affiliated with a public project subject to Article II or professional services subject to Article III, and may include but is not limited to janitorial, security guard, pest control, landscape, maintenance work, and other general services.

(K) INFORMAL SOLICITATION - A competitive selection process where a response to a solicitation for any purchase other than a public project that is conveyed by mail, email or other electronic means, or other written manner that does not require a sealed proposal, public opening or other formalities, as established in the purchasing manual.

(L) INFORMATION TECHNOLOGY SERVICES - A service involving management, maintenance, installation or utilization of computer hardware or software.

(M) LOWEST RESPONSIVE, RESPONSIBLE BIDDER - A contractor, vendor or service provider that is responsible and submits the least expensive bid that meets the requirements of an informal or formal solicitation.

(N) NEGOTIATED CONTRACT - A contract that is awarded on the basis of a direct contract with a contractor, vendor or consultant without going through the formal or informal solicitation procedures.

(O) ON-CALL AGREEMENT - A general scope agreement with a contractor, vendor or service provider for a certain category, trade or scope of work, wherein specific projects shall be identified through the issuance of a task order that sets forth a scope of work, which is completed under a general scope agreement for the city.

(P) MAINTENANCE or MAINTENANCE WORK - The meaning provided in Cal. Pub. Con. Code, Section 22002(d) and Cal. Code of Regulations, Title 8, Section 16000, which states in relevant part: (1) Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired. (2) Carpentry, electrical, plumbing, glazing, touchup painting, and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures.

(Q) PIGGYBACK PURCHASING - Wherein the city utilizes another agency or jurisdiction's solicitation results, but enters into a separate contract or issues a separate purchase order with the vendor.

(R) PRINCIPAL BUSINESS OFFICE - The place where the principal officers or owners generally transact business, where reports are prepared, from which orders and payments are made, and where the business represents to government authorities as its principal office or principal place of business.

(S) PROFESSIONAL SERVICES - All services performed by persons or firms in a professional occupation, including, but not limited to, consulting and performance services for accounting, financial, economic, auditing, redevelopment, engineering, architectural, landscape architectural, planning, environmental, land surveying, construction project management, personnel, social services, animal control, lobbying, grant-writing, legal, management, communication and other similar professional functions.

(T) PURCHASE CHANGE ORDER - A legally binding document used to make changes to a purchase order.

(U) PURCHASE ORDER - A purchase transaction document that contains terms and conditions set forth by the city and issued by the city to a vendor or contractor for types, and quantities of goods and equipment at agreed upon prices.

(V) PURCHASING AGENT - An employee whose responsibility it is to procure all supplies, equipment, public projects and services for the city, or that employee's designee(s) in accordance with this chapter.

(W) PURCHASING MANUAL - The purchasing policies and procedures manual for the purpose of implementation of this chapter, as drafted and amended by the purchasing agent.

(X) SMALL LOCAL BUSINESS - A business entity located within the city's geographic boundaries, has average annual gross receipts of $20,000,000 or less, and employs fewer than 100 employees.

(Y) SOLE SOURCE AGREEMENT - A circumstance where it has been determined that only one vendor or service provider is capable of providing an item or service, and based on that determination it is not possible to obtain competitive bids or proposals.

(Z) SOLICITATION - The process and procedure under which the purchasing agent determines the competitive method to procure all goods, supplies, equipment, public projects and services of any kind.

(AA) TASK ORDER - A work order request issued pursuant to an on-call agreement for the performance of certain tasks that sets forth the scope of work and compensation that may be negotiated between the parties.

(Ord. No. 3053)

SEC. 4-3. CONTRACTING AUTHORITY.

(A) The city manager or their designee may award and the purchasing agent may execute any contract or purchase order up to an aggregate value of $220,000. This authority includes contracts involving real property, lease and license agreements that do not exceed three years in term, and exempted transactions in Section 4-7(B) (1) through (B)(20). The city manager may delegate his/her contracting authority to a designated representative(s) by written authorization with a copy of such authorization to the purchasing agent.

(B) Any contract or purchase order over $220,000, or real property lease and license agreements over $220,000 or three years in term, or public projects over $220,000 shall be awarded by the city council and executed by the mayor, or in his/her absence the mayor pro tem.

(C) The city council may delegate its signatory authority to the city manager for contracts, agreements or purchase orders with an aggregate value greater than $220,000 by motion or other action taken by city council.

(D) A purchase order or contract for legal services or services relating to legal matters is not subject to the solicitation requirements of this chapter and may be awarded and executed by the city attorney, up to an aggregate value of $220,000, or may be awarded and executed jointly by the city attorney and the most senior available member of the city council if over that amount.

(E) A purchase order or contract relating to a confidential, ongoing police investigation or other confidential police business is not subject to the solicitation requirements of this chapter and may be awarded and executed jointly by the police chief and city manager up to an aggregate value of $220,000, or may be awarded and executed jointly by the city manager and the most senior available member of the city council if over that amount.

(F) Only city staff authorized by the city manager may use city-issued credit cards to pay for supplies and equipment purchased for the city and for city-related training and travel. The purchasing agent shall develop and maintain a procurement card manual for the issuance, oversight, and use of such credit cards.

(Ord. No. 3053)

SEC. 4-4. ALLOW ABLE PURCHASING METHODS.

(A) Request for bids (RFB) is a request to vendors to submit an offer or quote for specific defined goods or services.

(B) Request for proposals (RFP) is a request to vendors to submit a proposal for goods or services for which the exact specifications or methodology of providing the goods or services is not defined. The RFP allows for consideration of a series of factors in determining the vendor's qualifications and ability to perform. RFP shall be evaluated using the best value method.

(C) Request for qualifications (RFQ) is a request for a statement of qualifications for a certain class of vendors or consultants. RFQs can be used to develop multiple awards or on-call agreements.

(D) Additional purchasing methods.

(1) Cooperative agreements as defined in Section 4-2(D) of this article.

(2) Piggyback agreements as defined in Section 4-2(Q) of this article.

(3) Sole source agreements as defined in Section4-2(Y) of this article.

(4) Purchase orders as defined in Section 4-2(U) of this article.

(5) Emergency contracting/purchases or procurement as defined in Section4-2(G) of this article and pursuant to the procedures set forth in Article II, Section4-30; Article III, Section 4-41(B); and Article IV, Section 4-51(B).

(6) Urgency or immediate need as defined in Section 4-41(A)(1) and (A)(2), and 4-51(A)(1) and (A)(2), and pursuant to the procedures set forth in Article III, Section

4-41(B) and Article IV, Section 4-51(B).

(Ord. No. 3053)

SEC. 4-5. PURCHASING AGENT.

(A) Except as otherwise ordered by city council, the purchasing agent shall provide the services stated in this chapter on behalf of all city departments. In the performance of his/her duties, the purchasing agent shall comply with applicable law and city council orders, including limitations on purchasing procedures. The purchasing agent may:

(1) Prepare and issue all solicitations.

(2) Issue all city purchase orders and execute all city contracts subject to this chapter, in accordance with procedures prescribed by this chapter.

(3) Execute approved amendments for all city contracts and purchase orders for goods, supplies, equipment, general or professional services, information

technology services or other transactions that are not public projects in any way, including, but not limited to, amendments to contract terms, aggregate value, changing a vendor, contractor or consultant's legal name, or authorizing higher costs and rates.

(4) Negotiate and recommend award of contracts for the purchase of goods, supplies, equipment, general or professional services, information technology services

or other transactions that are not public projects.

(5) Act to procure for the city the needed quality in goods, supplies, equipment, general or professional services, information technology services or other

transactions that are not public projects at the best value to the city.

(6) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

(7) Prepare and maintain for the city manager all city purchasing policies and procedures including, but not limited to; the purchasing manual, procurement card

manual, and recommend revisions to both of these documents for final approval by the city's chief financial officer.

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

(9) Maintain such forms as reasonably necessary for the operation of this chapter and other rules and regulations.

(10) Recommend to the city manager the transfer of surplus or unused supplies and equipment between departments as needed, and the sale of all supplies and

equipment that cannot be used by any department or that have become unsuitable for city use.

(11) Use cooperative and piggyback purchasing methods where it is determined to be in the best interest of the city.

(12) Recommend award of and execute a negotiated contract, subject to a department director or city manager's approval, when the purchasing agent determines

that obtaining bids, quotations and proposals is not in the city's best interest.

(13) Designate a representative from the public works department to develop and maintain a list of contractors, vendors and professionals identified according to categories of work.

(14) The purchasing agent may terminate any purchase order or contract with approval as to form by the city attorney pursuant to Section4-11.

(15) The purchasing agent may sell, trade or otherwise dispose of supplies and equipment that are no longer used or have become obsolete or worn out, including

awarding and executing contracts to sell, trade in or otherwise dispose of such supplies and equipment pursuant to Section 4-54.

(Ord. No. 3053)

SEC. 4-6. CONFLICT.

(A) The provisions of this chapter shall not apply to the extent that they conflict, and shall be interpreted and construed to be consistent, with any applicable State or federal laws or regulations, or the terms and conditions of any grant, contract, gift or bequest otherwise consistent with law.

(B) Any evaluation or selection practice under this chapter that would result in unlawful activity, including, but not limited to, any rebate, kickback or unlawful consideration is expressly prohibited. Any award of a contract where a public official has used their official position to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest in any person or entity who seeks such a contract, or in the outcome of the selection process in any way, is expressly prohibited.

(C) Prior to participating in any solicitation or purchase, a staff member will have to state the nature and length of their relationship, if any, to all bidders or proposers as well as any other personal interest in the outcome of the solicitation to the purchasing agent. The staff member must immediately notify the purchasing agent and not review any materials or attend any meetings regarding the solicitation or purchase until further instruction from the purchasing agent.

(Ord. No. 3053)

SEC. 4-7. EXEMPTIONS TO SOLICITATION REQUIREMENTS.

(A) Certain types of non-discretionary purchases and payments that are not readily adaptable to the open market and competitive selection process are exempt from the city's formal and informal solicitation requirements, except where otherwise required by federal law or by reason of the source of funding for the project.

(B) The following transactions are exempted from the solicitation requirements of this chapter:

(1) Bank service fees.

(2) Government printed publications.

(3) Travel payments directly to a hotel, motel, airline or other transportation.

(4) Insurance.

(5) Memberships in professional organizations.

(6) Credit card payments to a bank.

(7) Contracts with other governmental entities.

(8) Permit fees, including, but not limited to, those to another governmental agency for operation of a city utility.

(9) Postage and United States Postal Service post office box fees (not private mail companies).

(10) Real property purchases, escrow fees and lease payments.

(11) Subscriptions to publications.

(12) Any utilities the city uses, including, but not limited to, payments for electricity, water or gas.

(13) Voting materials.

(14) Any other purchase exempted from bids or proposals in State or federal law.

(15) Legal brief printing and transcription.

(16) Legal services and services relating to legal matters.

(17) Services relating to a confidential, ongoing police investigation and to other confidential pol ice business.

(18) State, federal, local, tribunal, regulatory taxes and fees.

(Ord. No. 3053)

SEC. 4-8. AWARD TO MULTIPLE VENDORS.

(A) At the discretion of the purchasing agent, a single informal or formal solicitation for goods, supplies, equipment, and service contracts, not including contracts for public projects subject to Article II of this chapter, may be issued in order to award purchase orders, contracts, or on-call agreements to multiple vendors or service providers when the purchasing agent determines it is in the best interest of the city to do so.

(B) The city council, or city manager or purchasing agent may award a purchase order, contract, or on-call agreement through a single informal or formal solicitation for goods, supplies, equipment or service contracts, except for public projects subject to Article II of this chapter, to multiple vendors or service providers, when the best value criteria are satisfied, or on the basis of lowest bidder when a maximum unit price is established and all vendors comply with the established unit price.

(1) When a solicitation is awarded to more than one vendor or service provider for the same or similar products or service, a multiple awarded solicitation schedule

may be set up to determine how each vendor or service provider will be selected and provide information of product type/brand and vendor who is providing the product or service.

(Ord. No. 3053)

SEC. 4-9. ON-CALL AGREEMENTS.

(A) An on-call agreement is a formally or informally solicited agreement between the city and a service provider, which specifies a certain category of work, rather than a specific project or service, and the city will prepare a task order in which specified services will be performed by a service provider for a negotiated price.

(B) On-call agreements may be awarded to multiple service providers pursuant to a single solicitation for a specific category of work or service.

(C) On-call agreements shall not be used to procure Tier II or III public works contracts, subject to Article II of this chapter.

(D) When an on-call agreement is awarded to multiple service providers for a specific category of work or service, the city will prepare a task order and notify each service provider of the task order and request a price or proposal from each service provider after which the city shall award the task order to the service provider that offers the lowest price or best value.

(E) An on-call agreement may be issued to a single service provider pursuant to a single solicitation.

(F) No task orders shall be issued in excess of $100,000.

(G) Task orders issued for professional services subject to Article III and related to a capital improvement project shall not exceed $220,000.

(Ord. No. 3053)

SEC. 4-10. NO OBLIGATION TO CONTRACT.

Nothing in this chapter shall require the city to authorize any purchase order or enter into any contract with any person or firm.

(Ord. No. 3053)

SEC. 4-11. APPROVAL AS TO FORM.

All purchase orders, contracts, amendments, change orders and other agreements as well as terminations shall be approved as to form by the city attorney.

(Ord. No. 3053)

SEC. 4-12. BUSINESS LICENSE.

All contractors, service providers, vendors, or other person or entity doing business with the city pursuant this chapter must comply with Article I, Division 1, Section 11-4 in Chapter 11 of the city code regarding city issued business tax certificates.

(Ord. No. 3053)

SEC. 4-13. INSURANCE REQUIRED.

All contracts, purchase orders or other transactions entered into pursuant to this chapter shall be in conformance with the city's insurance requirements as determined by the city's risk manager.

(Ord. No. 3053)

SEC. 4-14. PROHIBITION AGAINST SPLITTING PROJECTS, PURCHASES, AND NON-COMPLIANCE WITH PURCHASING GUIDELINES.

(A) The city, including all city staff, shall not split any project, work, service or purchase into small projects, works, services or purchases for the purpose of avoiding any competitive solicitation, bidding, contracting, or approval requirements stated in this chapter and as required by the public contract code governing public projects.

(B) Every person who knowingly violates this chapter and or the purchasing guidelines for the purpose of evading the competitive solicitation and bidding requirements outlined in this chapter is guilty of a misdemeanor.

(Ord. No. 3053)

SEC. 4-15. AUTHORITY TO EXERCISE DISCRETIONARY APPROVAL OF DESIGNS FOR PUBLIC WORKS AND PUBLIC IMPROVEMENT PROJECTS.

(A) The city council herein delegates the authority to exercise discretionary approval of designs, including design amendments and addenda for all public works and public improvement projects, including those prepared by consultants retained by the city, to the public works director, city engineer and community development

director or their designees, all of which shall hold a valid California professional engineer license.

(B) The approval of the public works director, city engineer and community development director or their designees, of a design prepared by a consultant retained by the city to prepare any design is limited to an acceptance and approval of the design as being in general conformance with applicable statutes, codes, standards, and guidelines for the purpose of Cal. Gov’t Code, Section 830.6, and otherwise, the responsibility and liability for completeness, accuracy, and conformance of any design prepared by a consultant will continue to resident with the engineer of record or engineering firm of record that prepared that design.

(Ord. No. 3053)