Parlier Municipal Code Ch. 3.04 Purchasing Procedures

A. The purpose of this purchasing ordinance is to establish efficient procedures for the purchase of supplies, equipment and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to define purchasing authority, and to assure the quality of purchases.

B. The adoption of this purchasing ordinance is intended to meet the requirements of state law including, but not limited to, the following: (i) Government Code Sections 54201 to 54205 regarding the purchase of supplies and equipment; (ii) Public Contract Code Sections 20160 to 20175.2 regarding public works construction projects; (iii) Public Contracts Code Sections 22000 to 22045 regarding the Uniform Construction Cost Accounting Procedures; (iv) Government Code Section 4526 regarding professional services; (v) Labor Code requirements for prevailing wages; and (vi) other applicable state laws.

C. The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

1. "Department and using department" means the departments, offices and other organizational units of city government.

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

3. "Services" means work performed by independent contractors, with or without the furnishing of materials, excluding contracts for public works projects or professional services.

4. "Supplies, materials and equipment" means 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.

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

(Ord. 97-5 §1(part), 1997).

(Ord. No. 2015-06, § 1, 3-2-2016)

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. 97-5 §1(part), 1997).

There is created a centralized purchasing office within the 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 shall not be the responsibility of the centralized purchasing office.

(Ord. 97-5 §1(part), 1997).

The finance director 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 ensure conformance with specification;

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' catalogue 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. 97-5 §1(part), 1997).

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. 97-5 §1(part), 1997).

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 therefore.

(Ord. 97-5 §1(part), 1997).

A. Using departments shall submit to the purchasing agent, at such times and in such forms as the purchasing agent shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The purchasing agent shall, after authorization from the city council, sell as surplus such supplies, materials and equipment that cannot be used by any department or that have become unsuitable for city use, exchange or trade in the same on new supplies, materials or equipment, or otherwise dispose of supplies, materials and equipment which have no further economic value to the city.

B. In lieu of selling, exchanging or trading surplus property, the city council may authorize the transfer and conveyance of surplus property to another public agency or agencies, or to civic, charitable or educational institutions upon the council's finding that such transfer and conveyance will serve a public purpose.

(Ord. 97-5 §1(part), 1997).

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. 97-5 §1(part), 1997).

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 is immediately necessary for the continued operation of a department, for the preservation of life and property, when the purchase is required for health, safety or welfare of the public, or for the protection of property; provided, however, that there is a present, immediate and existing emergency. The determination that an emergency exists shall be made by the city manager in writing, 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 by the purchasing agency.

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

(Ord. 97-5 §1(part), 1997).

A. Procedures for Specific Amounts. The following procedures shall be followed when purchasing or leasing materials, supplies, equipment or services:

1. $0 to $500.00—The finance director shall ensure that the city pays fair prices and receives commensurate value for amounts expended.

2. $501.00 to $2,500.00—Price quotes must be solicited, either verbally or in writing, from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

3. $52,501.00 or higher—Written specifications describing the delivery schedule, materials, supplies, equipment or services must be prepared. Price quotes must be solicited in writing from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

B. Purchase Order or Contract Required. Purchases of supplies, equipment, and services shall be made only by written purchase order or contract.

(Ord. 97-5 §1(part), 1997).

(Ord. No. 2015-06, § 2, 3-2-2016)

A. Uniform Public Construction Cost Accounting Act Adopted. The City Council of the City of Parlier, California hereby adopts the California Uniform Public Construction Cost Accounting Act (California Public Contract Code § 22000 et seq.) for the purpose of prescribing regulations governing contracts awarded by the city for public projects. However, nothing contained herein shall preclude the city from utilizing more restrictive procedures if, and when required by federal or state law, or when federal or state funds are involved in the contract to be awarded and the funding agency requires more restrictive procedures.

B. Definition of Terms. As used in this section, the words, terms and phrases shall have the following meanings, as defined in Section 22002 of the Public Contract Code, unless otherwise apparent from the context:

1. Facility means any plant, building, structure, ground facility, real property, street, highway or other public work improvement.

2. Maintenance work includes all of the following:

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

b. Minor repainting.

c. Resurfacing of streets and highways at less than one inch.

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

3. Public project means any of the following:

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

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

c. Public project does not include maintenance work.

C. Dollar Amount of Public Project Determines Process to Be Used. The dollar amount thresholds provided in this section shall automatically adjust upon the effectiveness of any adjustment notification by the state controller in accordance with Public Contract Code Section 22020, without the necessity of amending this section or any subdivision herein to reflect any such adjustment.

1. Public projects of forty-five thousand dollars or less may be performed by city employees by force account, by negotiated contract, or by purchase order. The contract or purchase order for contracts over five thousand dollars shall be awarded by the city council and signed by the mayor.

2. Public projects of one hundred seventy-five thousand dollars or less may be let to contract by informal bidding procedures as set forth in this section.

3. Public project of more than one hundred seventy-five thousand dollars shall, except as otherwise provided in this section, be let to contract by formal bidding procedure as set forth in this section.

D. Procedures to Be Used for Contracts Regarding Public Projects.

1. Written Specifications. Public works projects which come within the dollar amount set forth in subsection (C)(1) above are subject to written specifications describing the delivery schedule, materials, supplies, equipment and services. Price quotes must be solicited in writing from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

2. Informal Bidding Procedures. Public works project which are subject to the informal bidding procedures as set forth in subsection (C)(2) above shall be awarded to the lowest responsible bidder in accordance with the Uniform Construction Cost Accounting Act, Section 22032 et seq. of the Public Contract Code, as follows:

a. Contractors List. A list of qualified contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

b. Notice Inviting Informal Bids. A notice inviting informal bids shall be prepared, which shall describe the project in general terms, describe how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than ten days before bids are due, to either all the contractors on the Contractors List for the category of work to be bid, or to all construction trade journals specified in the California Public Contract Code Section 22036, or both, unless the product or service delivery is proprietary.

c. The informal bids for public projects shall be awarded by the city council and signed by the mayor.

d. If all bids received are in excess of one hundred seventy-five thousand dollars, the city council may, by adoption of a resolution of four-fifths vote, award the contract, at one hundred eighty-seven thousand five hundred dollars or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.

3. Formal Bidding Procedures. Public work projects which are subject to formal bidding procedures as set forth in subsection (C)(3) above, shall be awarded to the lowest responsible bidder in accordance with, but not limited to, the following procedures:

a. Preparation of a notice inviting bids including bid specifications and setting of the time and place for receiving and opening of sealed bids;

b. Publication of such notice at least fourteen days prior to bid opening, and sent electronically, if available, and mailed to all construction trade journals specified in Section 22036, at least fifteen days prior to bid opening;

c. The submission of sealed bids;

d. A public bid opening;

e. Award to the lowest, responsive and responsible bidder;

f. City reservation in notice inviting bids of the right to reject any or all bids;

g. Award and execution of a written contract; and

h. Reference to applicable state or federally funded project requirements.

E. Authority to Prepare and Issue Notice Inviting Bids. The city manager is authorized to prepare and issue notices inviting bids and to establish such additional bidding procedures as are not inconsistent with those stated herein.

F. Prohibition Against Splitting or Separating Projects. It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to he done by contract after competitive bidding.

G. City Council Authority to Reject, Re-advertise, or Otherwise Award.

1. In its discretion, the city council may reject any and all bids presented under the informal and formal bidding procedures described above, if the city, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the city, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the city's intent to reject the bid and shall be mailed at least two business days prior to the council meeting at which the city intends to reject the bid. If after the first invitation for bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have of the option of either of the following:

a. Abandoning the project or readvertising for bids in the manner described in this Section 3.04.110.

b. By passage of a resolution by a four-fifths vote of the city council declaring that the project can be performed more economically by the employees of the city, the city may have the project done by force account without further complying with this Section 3.04.110.

2. If the contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses.

3. If no bids are received through the informal or formal bidding procedures described above, the project may be performed by employees of the city by force account or by informal bidding procedures set forth above.

H. Emergency.

1. In case of an emergency regarding a public project which requires competitive bidding, the city council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property. The resolution shall specify findings as required in Public Contracts Code Section 22050.

2. "Emergency," as used in this section, 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, properly, or essential public services.

I. Written Contracts Required. All contracts for public projects shall be in writing; all amendments to contracts shall be in writing. The city manager shall work with the city attorney to ensure that the contract includes language protecting the city's interest and language required by law. This language shall include, but is not limited to: specified term, scope of services, termination language, insurance, warranties, indemnification, non-collusion, contractor license, security, bonds, liquidated damages, change orders, retention, prevailing wages, and compliance with applicable laws.

J. Exception Competitive Bidding for Purchases from State. In accordance with Public Contract Code Section 10299, the city may, without formal or informal bidding, contract with suppliers who have been awarded contracts by the state for the purchase of goods, information technology, and services under the competitive process in Public Contract Code Sections 12100 to 12113. Such contracts typically take the form of master agreements, price schedules, or multiple award schedules. The city may make these purchases directly from the vendors or the state may provide assistance to the city in making these acquisitions. Such contracts are subject to council approval.

K. Sole Source Purchases. In the event that there is one, and only one, source for a product in excess of five thousand dollars, a sole-source contract may be used. When the city wishes to purchase a product over five thousand dollars from a sole-source without competitive bidding, a sole-source resolution is to be prepared and submitted with a city agenda item. In order to establish a legal basis for a sole-source exception, the following statements and findings must be made and set forth in every sole-source resolution:

1. A statement describing every unique or specialized feature of the product in question;

2. A statement of the city manager's efforts to locate all possible suppliers of such product;

3. A statement that, in spite of its efforts, the city manager has been able to locate only one supplier of the product in question;

4. A statement that indicates the ultimate cost of the product and the process used to determine the cost of the product; and

5. A finding that it is, therefore, proper for the city to dispense with competitive bidding requirement and to authorize the city manager to purchase the product in question under the sole-source exception.

(Ord. 97-5 §1(part), 1997).

(Ord. No. 2015-06, § 3, 3-2-2016)

A. Under Labor Code Section 1771, all work performed under contract for "public works projects" of more than one thousand dollars shall be subject to prevailing wages. The Labor Code defines the term "public works project" broader than the Public Contract Code and Section 3.04.110 above. There may be instances in which bidding is not required but payment of prevailing wages is required.

B. "Public works project," for the purpose of prevailing wages, means:

1. Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part from city funds. For purposes of this paragraph, "construction" includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work. For purposes of this paragraph, "installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

2. The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.

3. The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.

C. Prevailing wage requirements do not apply to work performed by the city with its own forces.

D. The city manager is authorized to establish guidelines for implementing prevailing wages requirements that arc consistent with this section and with the Labor Code.

(Ord. 97-5 §1(part), 1997).

(Ord. No. 2015-06, § 4, 3-2-2016)

Editor's note— Ord. No. 2015-06, § 5, adopted Mar. 2, 2016, repealed § 3.04.130, which pertained to small purchase procedure and derived from Ord. No. 97-5, § 1.

The city shall inspect supplies, materials and equipment delivered and contractual services performed to determined 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. 97-5 §1(part), 1997).

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

(Ord. 97-5 §1(part), 1997).

In computing bids on public works projects funded wholly or in part by the United States Department of Transportation Federal Aid Fund, the city shall apply the policies of the Parlier Disadvantaged Business Enterprise Program.

(Ord. 97-5 §1(part), 1997).