2.16 — PURCHASING SYSTEM AND PROCEDURES

The city manager is the city's purchasing agent. He or she shall establish the procedure and forms to carry out such duty in accordance with the charter and this chapter. (Ord. 1405 N.S. § 2, 1984)

All purchases of and contracts for supplies, services, materials, equipment and public works by the city, or by an officer or employee thereof, shall be made only in accordance with and pursuant to the provisions of this chapter.

(Ord. 1405 N.S. § 2, 1984)

A purchase order for supplies, services, materials or equipment shall not be issued unless there exists an unencumbered appropriation in the fund against which the purchase is to be charged. (Ord. 1405 N.S. § 2, 1984)

A centralized purchasing system for all departments is adopted in order:

• (a) To secure supplies, services, materials and equipment at the lowest possible cost commensurate with quality needed;

• (b) To exercise positive financial control over purchases;

• (c) To define authority for the purchasing function;

• (d) To assure the quality of purchases.

• (Ord. 1405 N.S. § 2, 1984)

Departments shall file detailed estimates of their requirements for supplies, services, materials and equipment in such manner, at such times, and for such future periods as the purchasing agent shall prescribe.

(Ord. 1405 N.S. § 2, 1984)

All departments shall submit to the purchasing agent requests for supplies, services, materials and equipment in such manner, at such times, and on such requisition forms as the purchasing agent shall prescribe.

(Ord. 1405 N.S. § 2, 1984)

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City of Pacific Grove, CA § 2.16.070

PACIFIC GROVE CODE

§ 2.16.100

All departments shall purchase supplies, services, materials and equipment only in such manner, at such times, and by such purchase order forms as the purchasing agent shall prescribe. Purchase orders shall be required for all expenditures.

(Ord. 1405 N.S. § 2, 1984)

Purchase of supplies, services, materials and equipment shall be by quotation or bid procedures as set forth in this chapter. Such procedures may be dispensed with by the purchasing agent, in his or her sole discretion and judgment as to the best interest of the city, as follows:

• (a) When an emergency requires that an order be placed immediately with the nearest available source of supply;

• (b) When the amount involved is less than $2,000;

• (c) When the supply, service, material or equipment can be obtained from only one vendor or supplier;

• (d) When a service, such as that available from an attorney, accountant, architect or specialized consultant, involves a specialized knowledge or personal skill;

• (e) When supplies or equipment, such as communication systems, traffic signals, and parking meters, have been uniformly adopted in the city or otherwise standardized;

• (f) When the supplies, equipment or materials are such that suitable technical or performance specifications are not available and the city is unable to develop descriptive specifications;

• (g) When the article can be purchased more economically through the central purchasing authority of another governmental agency;

• (h) When specific used supplies, materials or equipment will best serve the city's needs; or

• (i) When reasonably necessary for the preservation or protection of public peace, health, safety or welfare of persons or property.

Provided, that even when procedures are dispensed with hereunder, council approval, by resolution, shall be required for purchases in excess of the maximum amount for which the purchasing agent is authorized, as specified in Article II of this chapter. (Ord. 1405 N.S. § 2, 1984; Ord. 14-005 § 2, 2014)

As an alternative to the procedures set out in Articles II and III of this chapter, in the case of obtaining consulting and other specialized personal services, those services may be obtained by competitive negotiations. When this process is utilized, the best offer judged against proposal evaluation shall be accepted. Any offer exceeding the maximum amount for which the purchasing agent is authorized, as specified in Article II of this chapter, shall require council approval by resolution prior to acceptance.

(Ord. 1405 N.S. § 2, 1984; Ord. 14-005 § 2, 2014)

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City of Pacific Grove, CA

ADMINISTRATION AND CITY GOVERNMENT

§ 2.16.100

§ 2.16.100

For the purpose of this chapter, in addition to price, the "lowest responsible bidder" will be determined after the following factors have been considered:

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

• (b) Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;

• (c) The character, integrity, reputation, judgment, experience and efficiency of the bidder;

• (d) The bidder's record or performance of previous contracts or services;

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

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

• (g) The quality, availability and adaptability of the supplies, equipment, materials or services to the particular use required;

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

• (i) The number and scope of conditions attached to the bid.

  • In the event the lowest bidder is rejected, the purchasing agent or council, as the case may be, shall provide the lowest bidder with written explanation and/or findings regarding the rejection.

• (j) In the case of a bid received from a bidder, a portion of whose sales tax is paid to the city, the purchasing agent shall calculate the actual cost to the city of accepting such bid. Said actual cost shall be the bid amount less sales tax revenue which would be received by the city were the city to accept such bid. Said actual cost shall be the price utilized by the city, in addition to the other factors set out in this section, in determining the lowest responsible bidder.

• (k) Local Business Preference.

  • (1) Local bidders must bid with the same specification as required of nonlocal bidders.

  • (2) Where competitive bidding is utilized for the purchase of supplies, equipment, materials or general services as specifically set forth in this section, the city shall grant preference to a local bidder who submits a quote or bid within five percent of the lowest responsible bidder and who is otherwise responsive and responsible to the invitation for bids.

  • (3) Where the lowest responsible bidder is not a local business, the purchasing officer shall provide the lowest responsible local business bidder, should one exist and its bid is within five percent of the lowest responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.

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City of Pacific Grove, CA § 2.16.100

PACIFIC GROVE CODE

§ 2.16.120

• (4) Upon notice being provided pursuant to this section, the local business shall have two full business days to provide written notice to the purchasing officer of its desire to match the lowest bid.

• (A) In the event the local business elects to match, the contract will be awarded to the local business.

  • (B) In the event the local business provided the opportunity to match does not opt to match the lowest responsible bid, the award of the contract shall be given to the lowest responsible bidder.

  • (5) In instances where a local business and a nonlocal business submit equivalent lowest responsible bids, the purchasing officer shall give preference to the local business.

  • (6) All notices required under this section may be made orally, in writing or electronically.

  • (7) The application of a local preference as set forth in this section shall only apply if factors such as quality, previous performance, and availability are equal among bidders.

  • (8) Local preference shall not apply to any procurement of public work, purchases procured under federal or state requirements, cooperative purchases with other agencies, or where prohibited by other specific directive.

  • (9) No Exemption From Local Sales Tax. The application of a local preference as set forth in this section shall not exempt any eligible local business to which a contract is executed or awarded from having to pay all applicable federal, state or local sales tax.

  • (10) Local Business Defined. For purposes of this section, a "local business" means a business enterprise including, but not limited to, a sole proprietor, partnership, or corporation which has the following:

    • (A) A valid business license issued from the city; and

    • (B) Has a place of business with a physical address located within the jurisdictional limits of the city at least six months prior to publication of the call for bids and has at least one full-time employee located at the city business address.

• (Ord. 1405 N.S. § 2, 1984; Ord. 1828 N.S. § 1, 1992; Ord. 21-030 § 2, 2021)

All using departments shall submit to the purchasing agent, at such time and in such form as he or she shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall have authority to sell 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. The purchasing agent shall utilize all appropriate means to realize maximum return possible on such sales, exchanges and trades.

(Ord. 1405 N.S. § 2, 1984)

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City of Pacific Grove, CA

ADMINISTRATION AND CITY GOVERNMENT

§ 2.16.120

§ 2.16.155

The purchasing agent shall 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 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. 1405 N.S. § 2, 1984)

• (a) No officer or employee of the city shall be or become directly interested in any contract work, or business, or in the sale of any article, the expense, price or consideration of which is payable from the city treasury, nor shall such officer or employee receive any gratuity or advantage from any contract or person furnishing labor or material for same.

• (b) Any contract with the city in which any officer or employee is or becomes interested may be declared void by the council.

• (c) The following shall be exempt from the provisions of this section:

  • (1) Members of city volunteer and reserve organizations who are not also full- or parttime employees of the city;

  • (2) Members of city boards, commissions and committees.

• (d) The provisions of this section shall not be construed so as to excuse compliance with state laws regulating conflicts of interest.

• (Ord. 1405 N.S. § 2, 1984; Ord. 1910 N.S. § 1, 1993)

No officer or employee of the city shall aid or assist a bidder in securing a contract to furnish labor, materials, supplies, equipment or services, at a higher price or rate than that proposed by any other bidder, or favor one bidder over another, or give or withhold information from any bidder not given or withheld from all other bidders, or willfully mislead any bidder in regard to the character of the materials or supplies called for, or knowingly accept materials, supplies or equipment of a quality inferior to that called for by the contract, or knowingly certify to a greater amount of labor performed or materials, supplies or equipment furnished, than has respectively been performed or received.

(Ord. 1405 N.S. § 2, 1984)

The term "officer" as used in PGMC § 2.16.130 and § 2.16.140 shall include the mayor, councilmembers, city clerk, city manager, city treasurer, city attorney, members of boards, commissions and committees, and assistants, if any, to the clerk, manager, treasurer and attorney. (Ord. 1405 N.S. § 2, 1984)

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City of Pacific Grove, CA § 2.16.155

PACIFIC GROVE CODE

§ 2.16.157

Except as provided in this code or pursuant to agreement approved by the city council, the city of Pacific Grove, as a charter city, is exempt from the provisions of the California Public Contract Code.

(Ord. 02-26 § 1, 2002)

When authorized by resolution, the city manager may delegate, or thereafter revoke, purchasing authority under this chapter to an agent selected by the advisory board for any district formed by the city and operating in accord with California Streets and Highways Code 36500. Expenditure of assessment revenues on behalf of the city shall be in accordance with the BID program and budget approved by the city council, but such expenditures may be made without compliance with the city purchasing regulations required by this chapter. The city manager may authorize assessment revenues remitted to the city for that district to be deposited directly with the agent holding delegated purchasing authority pursuant to this section; provided, that the city council has approved the budget and an agreement with the agent regarding program deliverables. The delegated agent shall report to the city manager each receipt or expenditure made under this section.

(Ord. 07-020 § 2, 2007)

2. Editor's Note: As adopted by Ord. 02-26, this section was designated as PGMC § 2.16.160. It was editorially amended to PGMC § 2.16.155 due to the earlier codification of PGMC § 2.16.160.

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City of Pacific Grove, CA

ADMINISTRATION AND CITY GOVERNMENT

§ 2.16.160

§ 2.16.200