Chapter 3.32 — PURCHASING SYSTEM

Editor's note— Ord. No. 1341, § 2, adopted March 14, 2017, repealed the former Ch. 3.32, §§ 3.32.010— 3.32.355, and enacted a new Ch. 3.32 as set out herein. The former Ch. 3.32 pertained to purchasing system and informal bid procedures and derived from Code 1972, §§ 3.32.010—3.32.120, 3.32.200— 3.32.355; Ord. No. 796, § 1(part), 1989; Ord. No. 923, §§ 1—4, 1992; Ord. No. 967, §§ 1—3, 1993; Ord. No. 1173, § 1, 2005; Ord. No. 1227, §§ 2—6, 2007; Ord. No. 1307, § 2, adopted Sept. 30, 2014.

A purchasing system is adopted by the city council in order to:

(1)

Establish efficient procedures for the purchase of supplies, services and equipment,

(2)

Secure for the city supplies, services and equipment at the lowest possible cost commensurate with quality needed,

(3)

Exercise positive financial control over purchases,

(4)

Clearly define authority for the purchasing function, and

(5)

Assure the quality of purchases.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The purpose of this chapter is to guide city staff members in purchasing goods and services on behalf of the city by establishing responsibilities and authorization levels, outlining statutory requirements, and setting forth the policies and procedures that govern purchasing activities.

These guidelines are not intended to address every issue, exception or contingency that may arise in the course of purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of city resources.

The objectives of the purchasing system are the following:

(1)

Achieve the purposes for which it was adopted as set forth in section 3.32.000 of this chapter.

(2)

Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the city.

(3)

Ensure competition and impartiality in all purchasing transactions to the maximum extent possible.

(4)

Standardize procedures where appropriate to ensure that city-wide policies and goals are achieved.

(5)

Maintain department responsibility, initiative and flexibility in evaluating, selecting and purchasing goods and services.

(6)

Implement simple yet effective internal control procedures that appropriately support planning, maximize productive use of public funds and protect city assets from unauthorized use.

(7)

Communicate city-wide purchasing goals, policies and procedures to departmental staff involved in purchasing activities.

(8)

Decentralize decision-making to the maximum extent possible consistent with prudent review and internal control procedures.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Unless the city council directs otherwise, the city manager and any other representative designated by the city manager shall be the purchasing officer. The purchasing officer shall have the authority and responsibility to:

(1)

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

(2)

Purchase and contract for all supplies, equipment and services as required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt, and such other rules and regulations as shall be prescribed by the city council.

(3)

Negotiate and recommend execution of purchasing contracts.

(4)

Act to procure the needed quality in supplies, equipment and services at least expense to the city.

(5)

Discourage collusive bidding and endeavor to obtain as full and open competition as possible on all purchases.

(6)

Consolidate department purchase orders for similar items, where appropriate, to ensure quantity discount pricing whenever possible.

(7)

Keep informed of current developments in the fields of purchasing, prices, market conditions and new products.

(8)

Be responsible for the inspection of all supplies and equipment delivered, and services performed, to ensure conformance with specifications set forth in purchase orders and contracts; and, in this connection, have the authority to require chemical, physical or other tests of samples submitted with quotations or bids, or of delivery samplings, which may be necessary to determine quality and conformance with specifications.

(9)

Establish procedures for, and assign duties to, staff engaged in receiving, storing and issuing purchased supplies, ensure that supply levels are consistent with usage requirements.

(10)

Facilitate the transfer of surplus or unused supplies and equipment between departments as needed.

(11)

Recommend the sale or exchange of surplus or unused supplies and equipment which cannot be used by any department or which have become unsuitable for city use.

(12)

Perform such other duties and functions as may be necessary to carry out the policies set forth in this chapter.

(b)

The city manager, or a representative designated by the city manager, serves as purchasing officer unless the city council otherwise directs. The purchasing officer has the authority and responsibility to:

(1)

Purchase and contract for goods and non-specialized services in accordance with the policy and procedures delineated in this chapter.

(2)

Review and approve purchases requested by their staff and ensure purchases are in compliance within the guidelines in this chapter.

(3)

Obtain for the city the needed quality and quantity of goods and non-specialized services, at the least expense to the city.

(4)

Keep informed of current developments in purchasing, prices, market conditions and new products.

(5)

Prescribe and maintain forms necessary to the efficient purchase of goods and non-specialized services.

(6)

Supervise the inspection of all goods, which are surplus to the needs of the city, and direct the disposal of the same, in a manner acceptable to the city council.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Unless the city manager, with approval of the city council, directs otherwise, a department head or other department staff members designated by the department head may act as purchasing officer. A department head or the designee thereof acting as purchasing officer shall do so in conformity with the procedures established by this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Subject to the provisions of subsection (b) of this section, all purchases must be performed according to the following steps:

(1)

Assessing and determining resource needs.

(2)

Developing specifications.

(3)

Soliciting and evaluating quotations, bids or proposals.

(4)

Selecting the quotation, proposal or bid that best meets the specifications.

(5)

Awarding the contract or purchase order and authorizing work to proceed.

(6)

Receiving and inspecting goods or services and approving those goods and servicing that conform with agreed-upon specifications.

(7)

Paying the vendor according to the contract terms.

(b)

Subject to sections 3.32.200 to 3.32.280 of this chapter, the type of purchase and projected cost determine the particular manner each step in subsection (a) of this section shall be performed. All purchases fall within one of the following three categories:

(1)

General purchases of goods or services. Contracts for services (except professional and maintenance services) and purchases of supplies, equipment, products, or materials fall under this category of purchases.

(2)

Professional services. Includes professional work provided to the city by specially trained and experienced individuals or entities in the areas of economic, financial, engineering, planning, architectural, environmental, legal or administrative matters.

(3)

Public projects. This category covers contracts for any public project that falls within the definition set forth in section 3.32.240 of this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The purpose of policy sections 3.32.025 to 3.32.040 is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the city.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

All purchasing officer and a designees thereof shall adhere to the following standards of conduct when performing purchasing activities on behalf of the city:

(1)

Consider, first, the interests of the city in all transactions.

(2)

Carry-out the city's purchasing policy as adopted in this chapter.

(3)

Do not engage in prejudicial or discriminatory behavior when making purchasing decisions.

(4)

Subscribe to and work in honesty and truth in buying and selling, and denounce all forms and manifestations of commercial bribery.

(5)

Respect obligations to others, and require the same respect from others for their obligations.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Purchasing officers and their designees are specifically prohibited from:

(1)

Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the city.

(2)

Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of material value, or any promise, obligation or contract for future reward or compensation. Inexpensive advertising items bearing the name of the firm—such as pens, pencils, paper weights or calendars—are not considered articles of value or gifts in relation to this policy.

(3)

Using information available to officials and employees, solely because of their city position, for personal profit, gain or advantage.

(4)

Furnishing services or information not available to all prospective bidders or to the public, or causing such services or information to be furnished, to any person or entity bidding on reasonably expected to bid on a contract with the city.

(5)

Providing confidential information to persons to whom issuance of such information has not been authorized.

(6)

Using a position or status in the city to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to the city.

(7)

Serving the interests of any organization (either as an officer, employee, member of the board of directors, or in any capacity for consideration) which transacts or attempts to transact business with the city for profit when such employee holds a city position of review or control—even though remote—over such business transactions.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Employees. Each employee engaged in purchasing activities on behalf of the city is responsible for following standards prescribed herein. Violation of these standards may result in disciplinary action, termination of employment or criminal prosecution against the employee.

(b)

Department heads. Department heads must ensure all employees within their respective department who conduct purchasing activities are aware of and thoroughly understand the ethical standards of conduct in purchasing and the prohibited practices prescribed in this chapter.

(c)

City manager. The city manager must ensure all department heads who conduct purchasing activities are aware of and thoroughly understand the ethical standards of conduct in purchasing and the prohibited practices prescribed in this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city manager or his/her designee, with the written authorization and direction of the city manager, may bid at a public or private auction for supplies and equipment to the extent such purchases are in the best interest of the city. The authorization herein shall be limited to a maximum of $100,000.00. The city manager shall establish such policies and procedures as may be necessary to accomplish efficient, cost effective and quality purchases for the city at auction.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city manager or his/her designee, shall have the authority to sell all supplies and equipment which cannot be used or have become unsuitable for use by the city or to exchange the same or to trade in the same on new supplies and equipment. The city manager or his her designee shall sell, dispose of, exchange, or trade-in the property described under this section for the common benefit. The city manager shall establish such policies and procedures as may be necessary to accomplish the sale, disposal, exchange or trade-in of such property for the common benefit.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Secs. 3.32.060—3.32.090. - Reserved.

The following sections describe the general purchasing policy and requirements applicable to all procurements made by the city. If any section of this policy is determined to conflict with state and/or Federal procurement requirements, the procurement may be exempt from this policy to ensure compliance with aforementioned requirements.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Unless the city council directs otherwise, city department heads are authorized under this chapter to act as purchasing officers for their respective departments and as project managers for their respective public projects defined in section 3.32.020.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The provisions of this chapter shall supersede all ordinances, resolutions and policies related to the city's procurement system adopted prior to the adoption of this chapter. In the event of an inconsistency between the provisions in this chapter and those outlined in any prior ordinances, resolutions or policies, the provisions of this chapter shall control.

(b)

Any delegation of contracting authority contained in this chapter shall be exercised in accordance with state law, and all applicable city ordinances and adopted city policies, and shall be valid if adequate funds have been included in the approved city budget for the applicable fiscal year or otherwise appropriated by city council.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city attorney shall approve all contracts as to form, including any amendments to the contracts, prior to the execution of the contract by the authorized city official. The city attorney's approval shall be evidenced

by his or her signature on the contract. All change orders to public works projects are subject to the city attorney's approval.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city's purchasing system is a decentralized purchasing system, under which the authority and responsibility for the implementation of the provisions of this chapter is delegated to any purchasing officer and respective designees. Each purchasing officer or designee thereof has the authority to purchase or contract for goods and non-specialized services, provided that said contracts and purchases are consistent with the provisions in this chapter, including the requisite that sufficient funds have been appropriated prior to entering into such purchase contracts.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city manager may authorize, in writing, a single designee to purchase goods or services city-wide in order to reduce administrative costs as well as to achieve "best pricing" through volume purchases. This exemption from the city's generally decentralized purchasing system applies in the following circumstances:

Item Sole Department Authorized to Purchase Item

Photocopying machines and fax machines Information Technology

Desktop and laptop computers and related Information Technology hardware equipment, data storage and processing servers, and computer software

Telephones Information Technology

Cell phones and portable electronic devices Information Technology

In selected circumstances, a department head may, with city manager's written approval, delegate the authority and responsibility to another department head to act as the sole purchasing officer for specialized purchases.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The city clerk shall maintain a bidders' list, vendors catalog file and records needed for the efficient operation of purchasing activities. Each purchasing officer shall be responsible for soliciting vendors for purchase of goods and non-specialized services in accordance with the guidelines set forth in this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Notwithstanding any provision in this chapter to the contrary, except for public works projects and those contracts funded through program or partners, including but not limited to, federal or state agencies, which prohibit the use of a local preference, the purchasing officer shall extend a preference to local businesses for contracts for supplies, equipment and services as provided in this section.

(1)

Where factors such as quality, previous performance, and availability are equal among vendors being considered, a vendor whose business is located within the city limits shall be awarded a contract if their quote, proposal or bid is within five percent of the lowest quote, proposal or bid, subject to the provisions in this section, as long as the total difference in quote, proposal or bid amount between the local business and the lowest quote, proposal or bid does not exceed $5,000.00.

(2)

The local vendor must have a valid city business license and employ at least one full-time employee located at a city business address.

(3)

The five percent local preference shall apply to purchases of goods or services in an amount less than $5,000.00.

(4)

When determining the lowest responsible bidder, consideration may be given to each bidder for the sales tax which would be returned to the city as a result of the purchase transaction.

(5)

Local preference may, but does not necessarily have to be applied to contracts involving professional services.

(6)

Local bidders must bid with the same specifications as non-local bidders.

(7)

The following language shall be included in each invitation for bids or RFP where the local preference applies:

"Local vendor preference: By City Council action, a five percent preference shall be granted to local bidders. A local bidder is defined as a business entity with a fixed place of business located within the City limits of the City of Perris, and employ at least one full-time employee located at the City business address. To qualify for the preference, local bidders must submit proof of the address of this fixed place of business, proof of one full-time employee, and a copy of their current City business license. This information must be

submitted with each bid for which a local preference is claimed. The total amount of preference granted in a single bid shall not exceed $5,000.00.

Local Preference Claimed: _____YES _____NO"

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Subject to city council's approval, a contract for goods, services or professional services may be entered into for any period of time deemed in the best interest of the city, up to an initial term of five years, with additional renewable periods beyond this initial term, provided that the initial term of the contract and any renewal provisions are included in the original solicitation process. The purchasing officer shall review the performance of the service provider and substantiate that the city is still receiving the best value for such contract prior to renewing any contract for goods or services under this chapter and shall ensure that funds have been adequately appropriated in the city's budget for the applicable fiscal year.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Except in cases of emergency, or by order of the city council, purchase orders shall not be issued unless there exists an unencumbered appropriation in the department budget against which the purchase order is to be charged.

(b)

Unused purchase orders shall not roll over from one fiscal year to the next, except for contract and professional services procured by an approved contract with terms that cross fiscal years. All other purchase orders shall be used in the fiscal year they were issued. In the event a planned purchase is delayed and will not occur until the next fiscal year, a new purchase order must be requested by the purchasing officer in the new fiscal year. Expenditures for goods or services shall be realized based upon the date the order/service is received.

(c)

Invoices shall not be coded based upon budget lines that have unused or available funds. Invoices shall be coded to the correct budget line item according to the nature of the goods or services provided. The purchasing officer shall be responsible for requesting budget adjustments as needed to allow for the correct coding of invoices.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Each purchasing officer is responsible for monitoring his/her budgetary limits on a regular basis and may request adjustments to a budget by electronically creating a budget transfer journal in the city's financial

management system. The request shall be routed electronically to the authorized approvers. No invoice shall be processed by _______ without sufficient budget appropriations available for the applicable budget line item. In the event a budget adjustment is necessary to allow for an invoice to be re-coded to the proper specific line item, all applicable approvals for the budget adjustment must be reflected in the city's financial management system prior to a payment being issued by the city.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

If any officer or employee purchases or contracts for any goods or services contrary to the provisions of these procedures, such purchase order or contract may be void and of no effect. The staging or splitting of the purchase of goods or procurement of services, without proper justification or to avoid the authorization limit requirements, is strictly prohibited. The commission of any such acts by an officer or employee may subject the officer or employee to personal liability in the amount of such purchase or contract. Disciplinary action may be taken against an employee who willfully does not follow the procedures set forth in this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

In situations where formal council action is not required, each purchasing officer shall be responsible for maintaining accurate records of purchasing and contracting activities for their respective departments. THE PURCHASING OFFICER SHALL PROVIDE THE CITY CLERK WITH ALL ORIGINAL, EXECUTED CONTRACTS TO BE FILED AS A PERMANENT PUBLIC RECORD AS REQUIRED BY GOVERNMENT CODE SECTIONS 6250 et seq. (THE CALIFORNIA PUBLIC RECORDS ACT) REGARDLESS OF THE APPROVAL LEVEL REQUIRED FOR THE CONTRACT. All bid documents, specifications, and other pertinent documents related to the contract shall be retained by the purchasing department in accordance with the city's adopted document retention guidelines, following the completion of performance under the contract and acceptance by the purchasing officer.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Secs. 3.32.170—3.32.190. - Reserved.

(a)

All non-real property purchases, including contracts for non-real property rentals and leases, shall be made in accordance with the guidelines set forth in this section 3.32.200 through section 3.32.280, inclusive. Applicable competitive bidding categories, authorization limits and contract award procedures shall be based on unit cost, lump sum cost for consolidated bid items or fiscal year aggregates in the case of blanket purchase orders and ongoing purchase agreements. Staging or splitting of purchases for the purpose of avoiding these guidelines or to avoid required approvals is strictly prohibited by section 3.32.160.

(b)

The applicable required approval authority and bid requirements for the three purchase categories defined in section 3.32.020(b) shall be as follows:

(Ord. No. 1341, § 2(Exh. A), 3-14-2017; Ord. No. 1377, § 2, 11-27-2018; Ord. No. 1443, § 2, 6-11-2024)

Contracting procedures and authorization limits set forth in sections 3.32.200 through 3.32.280, inclusive, shall apply to: (1) the purchase of equipment, supplies, products, or materials ("goods"), (2) the procurement of services, including professional services (except for the services of physicians), and (3) the construction of public projects as defined by the Uniform Public Construction Cost Accounting Act. Authorized limits shall include freight and delivery, and taxes.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The following guidelines apply to the procurement of goods, as defined in section 3.32.210, and to the furnishing of labor, time or effort to perform or complete a designated task ("services"), including but not limited to janitorial, landscaping, pest control, information technology and refuse disposal services, and excluding services specifically defined in section 3.32.230.

(1)

For purchases in the amount of $5,000.00 or less:

a.

Purchase of goods or procurement of services (except professional services as defined in section 3.32.230) is subject to the approval authority requirements of section 3.32.220(5) and to the adequate appropriation of funds by the city council.

b.

No competitive process is required, but the purchasing officer shall exercise his/her best efforts to purchase goods or procure services at the lowest cost commensurate with the quality needed.

(2)

For purchases in an amount higher than $5,000.00 and up to $30,000.00:

a.

Purchases of goods or procurement of services (except professional services as defined in section 3.32.230) is subject to the approval authority requirements of section 3.32.220(5) and issuance of a purchase order and to the adequate appropriation of funds by the city council.

b.

The purchasing officer or his/her designee must first seek and obtain three quotes for purchases of goods or services within this section, unless fewer than three known vendors exist, and document the receipt of the quotes. The vendor offering the best value, after accounting for local preference if any, shall be selected. For the purchase of goods and services, if the lowest quote is not selected, the purchasing officer or his/her designee shall document in writing the basis for such election.

c.

Purchase of goods within this section shall be made by purchase order or contract, except for special or unique goods which purchase shall require a contract. Acquisition of services must be made by contract. All contracts are subject to city attorney's approval as to form. When in doubt regarding whether a contract or purchase order is required or advisable, the purchasing officer or his/her designee shall consult with the city attorney.

d.

A provider of services shall be required to provide insurance certificates and endorsements. The type and amount of insurance coverage and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements. In the event of a waiver or reduction of insurance requirements, the basis for such waiver or reduction shall be documented.

(3)

For purchases in an amount exceeding $30,000.00:

a.

All purchases of goods or procurement of services (except professional services as defined in section 3.32.230) is subject to the approval authority requirements of section 3.32.220(5). City council appropriation of funds is required prior to or concurrently with the approval of such purchase or procurement.

b.

The purchasing officer or the designee thereof must first seek and obtain three oral or written quotes, unless fewer than three known vendors exist, and document the receipt of the quotes. The vendor offering the best value, after accounting for local preference if any, shall be selected. For the purchase of goods, if the lowest price quote is not selected, the purchasing officer shall document the basis for the selection of the vendor.

c.

Purchase of goods under this section shall be made by purchase order or contract, except for special or unique goods which purchase shall require a contract. Acquisition of services must be made by contract. All contracts are subject to city attorney's approval as to form. When in doubt regarding whether a contract or purchase order is required or advisable, the purchasing officer shall consult with the city attorney.

d.

A provider of services shall be required to provide insurance certificates and endorsements. The type and amount of insurance coverage, and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements. In the event of a waiver or reduction of insurance requirements, the basis for such waiver or reduction shall be documented.

e.

The finance director or his/her designee, shall create, at the direction of city council, a purchase order to encumber budget appropriations equal to the total contract amount upon the city council's approval of the contract and the receipt of an executed copy thereof.

(4)

Change orders: Except for contracts for public projects, all change orders (inclusive of task change orders) for services are subject to the written approval of the appropriate department head prior to commencement of the work described in the change order. The city manager or a department head may approve individual change orders that fall within their authorized procurement amount limits as defined in this chapter. Any change order which causes the aggregate amount of the contract change orders to exceed the contingency amount authorized by the city council shall be subject to city council approval. All change orders approved by the city council shall be recorded by the finance director or his/her designee, as a change order to the original purchase order.

(5)

Approval authority for goods and services: All purchases of goods or procurement of services under this section are subject to the following approval authority requirements:

a.

The department head of the department initiating the purchase of goods or procurement of services under this section is authorized to approve such purchase or procurement in an amount up to $5,000.00.

b.

The city manager is authorized to approve the purchase of goods or procurement of services under this section in an amount up to $40,000.00.

c.

All purchases of goods or procurement of services under this section exceeding $40,000.00 shall require the approval of the city council.

d.

Amendments to a purchase order and/or contract for any purchase of goods or procurement of services under this section which result in the aggregate purchase contract amount exceeding $40,000.00 shall require city council approval.

e.

If it is reasonably anticipated by the purchasing officer that the annual total cost of a particular good or service would exceed $40,000.00 (excluding public projects), then incremental purchases of that good or service shall be pursuant to a contract and subject to city council approval. The contract can be for a per service hour or per item rate, but must be renewed according to the procedures set forth in this chapter. The contract shall be valid for a minimum of one year and it is the responsibility of the purchasing officer to ensure each invoice received from the consultant is calculated at the approved rate. The purpose of this provision is to achieve uniformity and savings in the costs associated with goods or services provided by the same contractor/vendor.

f.

Staging or splitting of the purchase of goods or procurement of services, without proper justification or for the purpose of avoiding the authorization limits, is strictly prohibited under section 3.32.160.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017; Ord. No. 1443, § 3, 6-11-2024)

The following provisions apply to procurement of professional services defined as work performed by private accounting, architectural, financial, landscape architectural, engineering, and environmental, land surveying, legal, construction project management, lobbying firms, and by other specially trained persons.

(1)

Five thousand dollars or less:

a.

A department head, or his/her designee, is authorized to approve the procurement of professional services pursuant to the approval authority requirements of section 3.32.230(5), and only if adequate funds have been appropriated by the city council in the budget.

b.

No competitive process is required, but the department head shall endeavor to procure services at the lowest cost commensurate with the quality needed.

(2)

More than $5,000.00 and up to $30,000.00:

a.

The city manager, or his/her designee, is authorized to approve contracts and issue purchase orders for the procurement of professional services pursuant to the approval authority requirements of section 3.32.230(5), and only if adequate funds have been appropriated by the city council in the budget.

b.

The purchasing officer or the designee thereof must first seek and obtain three written quotes, unless fewer than three known vendors exist, and document the receipt of the quotes. The procurement process may include direct negotiation with a provider of professional services. The selection of a contractor to provide professional services shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Selection based upon price alone is prohibited; however price may be considered as a factor. Contractor proposals shall be evaluated based on a combination of factors that result in the best value to the city, including but not limited to:

Understanding of the work required by the city.

Quality and responsiveness of the proposal.

Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the city.

Recent experience in successfully performing similar services.

Proposed methodology for completing the work.

References.

Background and related experience of the specific individuals to be assigned to the project.

Proposed compensation.

c.

If the purchasing officer or the designee thereof determines that it is in the best interest of the city that a professional service under this section be provided by a specific consultant, with contract terms, work scope and compensation to be determined based on direct negotiations, such recommendation shall be made by the purchasing officer or the designee thereof to the city council and a contract award shall be subject to the city council approval by a majority vote.

d.

Procurement of professional services under this section shall be made by contract and a purchase order must be issued and approved by the city manager. The contract shall be subject to city attorney approval as to form.

e.

A provider of professional services is required to provide insurance certificates and endorsements. The type and amount of insurance coverage, and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements and shall document the basis for such a waiver or reduction.

(3)

More than $30,000.00—Competitive sealed proposal process for professional services.

a.

The procurement of professional services pursuant to the approval authority requirements of section 3.32.230(5). City council appropriation of funds is required prior to or concurrently with the approval of such procurement.

b.

The procurement process may include direct negotiation with a contractor or consultant currently providing the professional services.

c.

In the event a new contractor is selected, the competitive sealed proposal process for professional services under section 3.32.270 shall apply.

d.

The purchasing officer or the designee thereof must prepare a request for proposals (RFP) for the procurement of professional services in an amount more than $30,000.00, in the manner set forth under section 3.32.270. The selection of a professional services contractor shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Selection based upon price alone is prohibited; however price may be considered as a factor. Contractor proposals will be evaluated based on a combination of factors that result in the best value to the city, including but not limited to:

Understanding of the work required by the city.

Quality and responsiveness of the proposal.

Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the city.

Recent experience in successfully performing similar services.

Proposed methodology for completing the work.

References.

Background and related experience of the specific individuals to be assigned to the project.

Proposed compensation.

e.

If the purchasing officer or the designee thereof determines that it is in the best interest of the city that a professional service under this section be provided by a specific consultant, with contract terms, work scope and compensation to be determined based on direct negotiations, such recommendation shall be made by the purchasing officer or the designee thereof to the city council and a contract award shall be subject to the city council approval by a majority vote.

f.

Procurement of professional services under this section shall be made by contract. The contract shall be subject to city attorney approval as to form.

g.

The finance director, or his/her designee, will create a purchase order to encumber budget appropriations upon the approval of a lump-sum contract by the city council and receipt of an executed copy of the contract.

h.

A provider of professional services is required to provide insurance certificates and endorsements. The types of insurance, amount of coverage, and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements, and must document the basis for such a waiver or reduction.

(4)

Change orders: Except for contracts for public projects, all change orders (inclusive of task change orders) for professional services are subject to the written approval of the appropriate department head prior to commencement of the work described in the change order. The city manager or a department head may approve individual change orders that fall within their authorized procurement amount limits as defined in this chapter. Any change order which causes the aggregate amount of the contract change orders to exceed the contingency amount authorized by the city council shall be subject to city council approval. All change orders approved by the city council shall be recorded by the finance director or his/her designee, as a change order to the original purchase order.

(5)

Approval authority for procurement of professional services: All procurement of professional services under this section are subject to the following approval authority requirements:

a.

The department head of the department initiating the procurement of professional services under this section is authorized to approve such procurement in an amount up to $5,000.00.

b.

The city manager is authorized to approve the procurement of professional services under this section in an amount up to $40,000.00.

c.

All procurement of professional services under this section exceeding $40,000.00 shall require the approval of the city council.

d.

Staging or splitting of the procurement of professional services, without proper justification or to avoid the authorization limits, is prohibited. Additionally, if the department head reasonably anticipates the annual total cost of a particular service to require a competitive sealed proposal process pursuant to section 3.32.270, then incremental procurement of that service shall be pursuant to a competitive sealed proposal process.

e.

Amendments to a purchase order and/or contract which result in an aggregate contract amount that exceeds the authority of the city manager shall be subject to city council approval.

f.

Notwithstanding the above limits, the city manager, or his/her designee, is authorized to execute a contract for professional services without city council approval if an applicant has deposited funds sufficient to cover the full amount of the contract with the city (as verified by the finance director), and such funds are

held in a trust account that restricts the use of the funds to pay for city-managed professional services contracts, such as the preparation of an environmental impact report. Any contract entered into pursuant to this paragraph shall be entered into in accordance with all applicable state and federal law, city ordinances and adopted city policies, including the same competitive process required for a city-funded contract for professional services. The selection of a professional services contractor shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. Selection based upon price alone is prohibited; however price may be considered as a factor.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017; Ord. No. 1443, § 4, 6-11-2024)

The city has elected by Resolution No. 1568 to become subject to the uniform construction cost accounting procedures set forth in Article 2 (commencing with section 22010) of the Uniform Public Construction Cost Accounting Act. For purposes of this chapter, "public project" is defined as (1) construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or (2) painting or repainting of any publicly owned, leased, or operated facility; or (3) in the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. For purposes of this chapter, "public projects" also includes "maintenance work" and any capital improvement projects undertaken by the Perris Community Economic Development Corporation (CEDC). Maintenance work is defined as: (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; or (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. Facility means any plant, building, structure, ground facility, utility system, or real property, streets and highways, or other public work improvement.

(1)

Public project in the amount of $60,000.00 or less or as set forth in section 22032 subsection (a) of the Uniform Public Construction Cost Accounting Act and any amendments thereto by the California Legislature:

a.

As provided by section 22032, subsection (a), of the Uniform Public Construction Cost Accounting Act, and subject to the approval requirements in section 3.32.240(8), projects under this section may be performed by the employees of the city or by a negotiated written contracts or by the issuance of a purchase order. City council appropriation of funds is required prior to the execution of the contract. The contract is subject to the city attorney's approval as to form.

b.

A contractor is required to provide insurance certificates and endorsements. The type and amount of insurance coverage, and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements, and shall document the basis for such a waiver or reduction.

c.

Change orders or amendments to a purchase order and/or contract which result in an aggregate contract amount exceeding the authority of the city manager shall be subject to city council approval.

(2)

Projects more than $60,000.00 and up to $200,000.00 or as provided under section 22032 subsection (b) of the Uniform Public Construction Cost Accounting Act and any amendments thereto by the California Legislature:

a.

As provided in section 22032, subsection (b) of the Uniform Public Construction Cost Accounting Act, public projects within the limits set forth herein may be let to contract by informal procedures as set forth in the Public Contract Code and adopted herein.

b.

For purpose of this section, contracts are subject to the approval requirements in section 3.32.240(8). City council appropriation of funds is required prior to the execution of the contract.

c.

The purchasing officer shall seek and obtain informal bids using the informal bid process set forth under section 3.32.250 of this chapter. In the event of a conflict between the provisions of this process, and the Public Contract Code or the state controller procedures, the Public Contract Code and state controller procedures shall govern.

d.

A written contract is required for public projects under this section. The contract shall be subject to the city attorney approval as to form.

e.

The finance director, or his/her designee, will create a purchase order to encumber budget appropriations upon the approval of a lump-sum contract by the city council and receipt of an executed copy of the contract.

f.

A contractor is required to provide insurance certificates and endorsements. The type and amount of insurance coverage, and policy endorsements shall be consistent with the contract insurance requirements

checklist prepared by the city's human resources and risk management departments. The human resources and risk management departments may waive or reduce the insurance requirements, and shall document the basis for such a waiver or reduction.

g.

Change orders or amendments to a purchase order and/or a contract which result in an aggregate project amount exceeding the approval authority of the city manager shall be subject to city council approval. All contract change orders approved by the city council will be recorded by the finance director, or his/her designee, as a change order to the original purchase order.

(3)

Projects more than $200,000.00 or as provided under section 22032 subsection (c) of the Uniform Public Construction Cost Accounting Act and any amendments thereto by the California Legislature:

a.

Public projects under this section shall be let to contract by formal bidding procedures as set forth in the Public Contract Code and adopted herein. Contracts shall be subject to the approval requirements in section 3.32.240(8). City council appropriation of funds is required prior to or concurrently with the approval of the contract.

b.

The city council shall adopt all plans, specifications, and working details for all public projects of more than $175,000.00.

c.

A written contract is required for all public projects within this section. The contract shall be subject to the city attorney's approval as to form.

d.

The finance director, or his/her designee, will create a purchase order to encumber budget appropriations upon the approval of a lump-sum contract by the city council and receipt of an executed copy of the contract.

e.

The purchasing officer must seek and obtain formal competitive sealed bids in the manner set forth under

f.

A contractor is required to provide insurance certificates and endorsements. The type and amount of insurance coverage, and policy endorsements shall be consistent with the contract insurance requirements checklist prepared by the city's human resources and risk management departments. The human resources

and risk management departments may waive or reduce the insurance requirements, and shall document the basis for such a waiver or reduction.

g.

Change orders or amendments to a purchase order and/or contract shall be subject to city council approval. All change orders approved by the city council will be recorded by the finance director, or his/her designee, as a change order to the original purchase order.

(4)

Contingency amount for public projects:

a.

Any contingency amount needed to adequately appropriate funds for any public project must be included in the total project cost at the time a request for approval is submitted to the city manager or city council as provided by this chapter.

b.

When determining the authorization limit for a public project contract, the contingency amount shall be included.

(5)

Change orders: All change orders for public projects shall comply with the city's standard construction specifications and shall be subject to the city attorney's approval and subject to the city manager or appropriate department head's written approval prior to commencement of the work. The city manager or a department head may approve individual change orders that fall within their authorized procurement amount limits as defined in this chapter. Any change order which causes the aggregate amount of the contract change orders to exceed the contingency amount authorized by the city council shall be subject to city council approval.

a.

A change order is defined as a formal document that alters some condition of a contract term after the contract has been executed. A change order may alter the contract price, unit quantity, schedule of payments, completion date, or the plans and specifications. The description of the work to be performed under a change order and any justification thereof, must relate to the original project and must describe work necessary to achieve the original objective of project that is the subject of the original contract. A change order may or may not result in a change in the original contract price. All change orders must be processed according to the city's established procedures, including deductive and zero cost change orders.

b.

All change orders shall be issued in written form and, once executed, sent to the city clerk for inclusion in the city's records pertaining to the related contract. A change order shall be used to modify the original

contract's price, schedule of payments, completion date, plans and specifications, scope of work due to change in conditions, and unit price overruns and under runs. Change orders shall be in writing and shall be subject to approval by the appropriate authority prior to the commencement of the changed work and shall be negotiated for a fixed or unit cost (i.e. not subject to change due to inflation and/or other factors). Any requests for unit quantity adjustments must be submitted as change orders. Change orders for unit quantity adjustments shall not require city council approval unless the adjustments cause a change in scope, or are not within the initially approved contingency amount, or increase the aggregate contract amount to more than $80,000.00.

c.

Subject to the appropriation of sufficient budget amount by city council, the project manager is authorized to approve change orders to public contracts without renewed city council approval only if the resulting increase does not exceed five percent of the contract sum or $25,000.00 whichever is less.

d.

The provisions of this section shall not apply to city council approved contracts that specifically set forth a "scope of services" and/or schedule of fees for those services, and if a supplemental rate of pay is specified for additional work to be performed outside of the original scope of work.

e.

Subject to the limitations set forth herein, the city manager or a designee thereof, is authorized to approve change orders he or she deems merited, up to the contract contingency amount approved by the city council as follows:

Change orders to contracts in an original amount of under $80,000.00:

i.

The city manager, or his/her designee, may approve any change order as long as the aggregate amount of change orders including the original contract amount does not exceed $80,000.00.

ii.

Any change order that results in an aggregate project cost that exceeds $80,000.00 shall be subject to city council approval.

iii.

In case of an emergency, the city manager may make a written finding that the original project cost estimate was reasonable and that it is in the best interest of the city to waive the bidding requirement and approve a change order that causes the aggregate project cost to exceed $80,000.00. Any additional change orders or budget appropriations related to the project to which the emergency change order was approved are subject to the city council approval.

Change orders to contracts in an original amount greater than $80,000.00:

i.

Subject to the other provisions in this section, the city manager, or his/her designee, may approve change orders of an aggregate amount within the contingency limit approved by city council for the individual contract to which the change orders apply.

ii.

Subject to the appropriation of sufficient budget amount by city council, the project manager is authorized to approve change orders to public contracts without renewed city council approval only if the resulting increase does not exceed five percent of the contract sum or $25,000.00, whichever is less.

iii.

If there exists an immediate, substantial and verifiable threat to public health, welfare, or safety, or when a local emergency has been declared or proclaimed in accordance with the provision of chapter 2.44 of the Perris Municipal Code, the city manager may approve a change order subject to ratification at the next regular city council meeting.

f.

Field work directives:

In case of a public health or local emergency, the project manager may approve field work directives in an amount not to exceed $10,000.00 per directive, subject to ratification by the appropriate authority as set forth in this chapter and within the following time limit: for directives within the approval authority of the city manager, ratification must occur within two business days of the emergency field work directive; for directives that are subject to the city council approval, request for ratification must be presented for approval at the regularly scheduled city council meeting immediately following the emergency field work directive.

g.

Budget requirements:

Subject to the appropriation of sufficient budget amount by city council, the project manager is authorized to approve change orders to public contracts without renewed city council approval only if the resulting increase does not exceed five percent of the contract sum or $25,000.00, whichever is less.

City council may award a contingency for each contract as appropriate. In the absence of a contingency, each change order is subject to the city council for approval.

The likelihood and estimated amount of field work directives and change orders must be addressed, and a corresponding contingency established, in the initial staff report presented to the city council related to the public project. At no time shall the amount of work directives and/or change orders exceed the budgeted contingency amount without additional city council approval.

h.

Oversight/project review:

Final acceptance reports:

Final acceptance reports for all capital improvement projects must be submitted to the city manager for approval. Acceptance by the city manager shall be acknowledged in writing and attested by the city clerk. The executed final acceptance report shall then be filed with the office of the Assessor-County Clerk- Recorder of the County of Riverside.

i.

The term "completed" shall mean after all work has been performed by the contractor according to the terms of the contract and all payments have been made by the city to the contractor (excluding retention).

ii.

The city engineer shall present the city council with periodic reports cataloging accepted public projects and capital improvements.

iii.

All department heads are required to file a budget-to-actual report with the city council for each completed public project.

(6)

Bonds:

a.

Bid security bond. The bid security bond may be referred to from time to time as the "bid Bond," "security Bond," and "10 percent bond." No term is more correct than another, and any of these terms may be used interchangeably. The city may, in the call for bid documents, require all bidders to deposit with the city a bid security bond in an amount equal to ten percent of the bid contract amount or any other amount the city specifies, and in a form payment of the city's choosing. Should the successful bidder refuse to execute the contract as awarded and within the required deadline, the bidder shall be deemed to have forfeited the bid

security bond amount to the city. The city may retain as damages an amount out of the bid security bond equal to the difference between the lowest/successful bid and the second lowest bid and return the excess bid security bond amount, if any, to the lowest/successful bidder.

b.

Payment bond. The city may, in the call for bid documents, require bidders to submit with the city a payment bond for the purpose of providing sub-contractors and suppliers, if any, with a surety backing in the event the general contractor does not pay amounts due to sub-contractors and suppliers under the public project contract.

c.

Performance bond. The city may, in the call for bid documents, require bidders to deposit with the city a performance bond for the purpose of compensating the city for any damages resulting from the successful bidder's failure to complete the public project in accordance with the bid specifications, including the cost of contracting with a different contractor to complete the project. Performance bonds are required for all contracts over $45,000.00.

(7)

Utility relocation: The city council hereby authorizes and delegates authority to the city manager and the city engineer to negotiate and execute contracts for the relocation of utilities necessitated by a public project with utility companies. Such authority shall only be exercised (a) in accordance with state law, city ordinances and adopted city policies, as applicable (b) only if adequate funds for the contract have been included in the approved city budget for the applicable year, or otherwise appropriated by the city council, and (c) subject to city attorney approval as to form and legality.

(8)

Approval requirements.

a.

Contracts for public projects in an amount of $80,000.00 or less are subject to the approval of the city manager.

b.

Contracts for public projects in an amount greater than $80,000.00 are subject to the approval of the city council.

c.

Staging or splitting of contracts for public projects, without proper justification or to avoid the authorization limits, is strictly prohibited under section 3.32.160 of this chapter.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017; Ord. No. 1377, § 3—5, 11-27-2018; Ord. No. 1443, § 5, 6-11-2024)

The informal bid process is as follows:

(1)

The city clerk shall maintain a list of contractors in accordance with the provisions of section 22034 of the Uniform Public Construction Cost Accounting Act.

(2)

A notice inviting informal bids shall be emailed to contractors and construction trade journals with circulation within the County of Riverside. Additional contractors and/or construction trade journals may be notified subject to the following:

a.

If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals.

b.

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 notices to contractors and construction trade journals shall be emailed not less than ten calendar days before bids are due.

d.

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

(3)

Bid award. The city shall award the purchase to the lowest and most "Responsible bidder." "Responsible bidder" is defined in section 3.32.260, subsection (f). Only successful bidders shall be notified of the award.

a.

Bids not received via the city's electronic bidding system shall be submitted to the city clerk and shall be identified as bids on the envelope. A written record and tabulation shall be made at the time all bids are received. The tabulation of all bids received shall be open to public inspection after the bid opening during regular business hours for a period of not less than 30 days after the bid opening, but shall not preclude the city council from awarding the contract after the five day protest period. Other information relating to the bids shall be available to the public in accordance with the Public Records Act.

b.

Bids received on the city's electronic bid system shall be opened by the purchasing officer after the stated deadline for bids to be received. A written record and tabulation shall be made and retained by each department head. The tabulation of all bids received shall be open to public inspection after the bid opening during regular business hours for a period of not less than 30 days after the bid opening, but shall not preclude the city council from awarding the contract after the five day protest period. Other information relating to the bids shall be available to the public in accordance with the Public Records Act.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Preparation of formal bid specifications.

(1)

The project manager or his/her designee shall prepare or cause to be prepared bid specifications, and obtain all appropriate approvals to the bid specifications prior to soliciting any bids. Bid specifications shall:

a.

Identify numerical requirements in a simple, specific manner.

b.

Be capable of being met by several bidders to allow for competitive bidding.

c.

Be capable of being accurately evaluated by the project manager.

(2)

In limited circumstances, and unless the city council directs otherwise, specific brand names may be used in bid specifications. Any such use of brand names shall not be construed as an endorsement by the city of a particular product and shall only be used to illustrate the quality level and performance desired. Bids with items of demonstrated equal or better quality level as the brand name mentioned in the bid specification are deemed acceptable.

(3)

If the use of brand names is required, other comparable brand names may be listed in the bid specifications to facilitate the vendor's understanding of the specifications and to promote objectivity. Bidders may submit substitute items in their bid document as having an equal or better quality specification. Acceptance of such substitute items is at the city's sole discretion.

(b)

Invitation and notice.

(1)

General notice. A notice inviting sealed bids shall be issued and shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be obtained, and the time and place for opening bids. Public notice of the invitation for bids shall be given at least 14 calendar days prior to the date set for the opening of bids. The notice shall be published at least once in a newspaper of general circulation in the city and on the city's purchasing/bidding website. If there is no newspaper of general circulation the notice shall be published in at least three public places in the city that have been designated by ordinance as the places for posting public notices. The project manager, or his/her designee, may also choose to publish the notice in another newspaper, trade newspaper, trade journal, and/or on an electronic procurement solicitation system in order to provide notice to the largest number of prospective bidders.

(2)

Public projects notice. Notices inviting bids for public projects shall be consistent with Public Contract Code Section 20164 which states: "The Notice Inviting Bids shall set a date for the opening of bids. The first publication or posting of the notice shall be at least ten days before the date of opening the bids. Notice shall be published at least twice, not less than five days apart, in a newspaper of general circulation printed and published in the city or, if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices." The city clerk shall administer the posting of legally required notices in the three public places designated by ordinance. All other postings shall be administered by each project manager.

(3)

Bidders list. The city manager, or his/her designee shall maintain a list of prospective vendors and trade journals, and bids shall be solicited from all prospective vendors and trade journals whose names are on the bidder's list or who have requested that their names be added to the list.

a.

A notice inviting formal sealed bids shall be emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section.

b.

If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission at least 15 calendar days prior to the date of the bid opening.

(4)

Advertising. The bid initiating project manager shall advertise in accordance with the above-stated requirement, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified.

(5)

Security. The city may require bidders to deposit with the city security equal to ten percent of the bid amount (or less as determined by the project manager), and/or a performance bond, and/or a payment bond in such amount as it shall find reasonably necessary to protect the public interest. If the city requires either or both such security and bond, the form and amount of the security and bond shall be described in the notice inviting bids.

(6)

Pre-bid conference. If the nature of the bid is particularly complex, the city may conduct a pre-bid conference with a group of prospective bidders to provide additional bid information and to answer any questions concerning the bid package. If a pre-bid conference is to be scheduled, it shall be indicated in the notice inviting bids, with time and place of the conference provided. In order to minimize potential inequities in the distribution of information related to the bid, city could mandate prospective bidders attend this conference as a prerequisite to eligibility to bid.

(c)

Bid opening. Sealed bids properly received by the city shall be opened publicly by the city clerk or a designee in the presence of one or more witnesses at the place, date, and time designated in the invitation for bids. A written record and tabulation shall be made at the time all bids are received. The tabulation of all bids received shall be open to public inspection after the bid opening during regular business hours for a period of not less than 30 days after the bid opening, but shall not preclude the city council from awarding the contract after the five day protest period. Other information relating to the bids shall be available to the public in accordance with the Public Records Act.

(d)

Bid evaluation and acceptance. Sealed bids received at or prior to the time set for bid opening shall be unconditionally accepted without alteration or correction, except as specified herein. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose. The invitation for bids shall set forth the evaluation criteria to be used. No criteria may be used in bid evaluations that are not set forth in the invitation for bids.

(e)

Correction or withdrawal of bids. Subject to any federal or state law mandating authorities to the contrary, correction or withdrawal of inadvertently erroneous bids before or after bid opening, or cancellation of awards or contracts based on such bid mistakes, shall be made in accordance with this section. Mistakes discovered before bid opening may be modified or withdrawn by written notice received in the office designated in the invitation for bids prior to the time set for bid opening. After bid opening, no corrections to bid or provisions shall be permitted but, in lieu of bid correction, a low bidder alleging a material mistake of fact may be permitted to withdraw its bid if: (a) the mistake is clearly evident on the face of the bid document, or (b) the bidder submits evidence that clearly and convincingly demonstrates that a mistake

was made. All decisions to permit the correction or withdrawal of bids, with or without penalty, shall be supported by a written determination made by the purchasing officer.

(f)

Determinations.

(1)

Determination of non-responsibility. In addition to price, the lowest bidder must be a responsible bidder, meaning that the bidder must have the ability, capacity, skill, character, integrity, reputation, judgment, experience, facilities and financial resources necessary to perform the contract. The bidder must also have a record of satisfactory performance of prior contracts and a record of compliance with laws and ordinances applicable to the contract. If a bidder who otherwise would have been awarded a contract is found non-responsible, a written determination of non-responsibility, setting forth the basis of the finding, shall be prepared by the city manager or his/her designee. The unreasonable failure of a bidder to supply promptly information in connection with an inquiry with respect to responsibility may be ground for a determination of non-responsibility with respect to such bidder. A copy of the determination shall be sent promptly to the non-responsible bidder. The final determination shall be made part of the contract file and be made a public record under the Public Records Act.

(2)

Determination of non-responsiveness. In addition to price and to being a responsible bidder, the lowest bidder must be a responsive bidder. A responsive bidder is one that conforms to the material terms of the bid package. A bid is responsive if it promises to do what the bidding instructions demanded. Conformance with the requirements of the invitation to bid may also include providing insurance requirements and bonds, completion of all forms, inclusion of references, and/or additional information as requested in the bid document. If a bid is found non-responsive, a written determination of non- responsiveness, setting forth the basis of the finding, shall be prepared by the city manager or his/her designee. A copy of the determination shall be sent promptly to the non-responsive bidder. The final determination shall be made part of the contract file and be made a public record in accordance with the Public Records Act.

(3)

In determining the lowest "responsible" bidder, the following factors shall be considered in addition to price:

a.

The ability of the product offered to provide the quality, fitness, and capacity for the required usage.

b.

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

c.

The character, integrity, reputation, judgment, experience and efficiency of the bidder, particularly with reference to past purchases by the city.

d.

Whether the bidder can perform the contract or deliver the material within the time required.

e.

The quality of performance and/or quality of products provided in previous contracts or services.

(g)

Bid award. The contract shall be awarded by appropriate written "Notice of Intended Award" to the lowest cost, responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids. The initiating purchasing officer shall prepare the staff report to the city council requesting approval to award the contract to the lowest, most responsible bidder. Prior to the submittal of the item to the city manager's office for placement on the city council agenda, the initiating department shall obtain the appropriate purchasing, fiscal, and legal review of the report. The city council may award a contract or reject all bids. Rejection may be in whole or in part of a bid, if permitted by the bid specifications. If two or more bids are received for the same total amount or unit price (quality and service being equal), and if the city council finds that the public interest will be furthered, the city council may accept the bid it chooses or proceed by negotiation, unless prohibited under state law. Upon city council award of the bid, the purchasing officer shall complete the execution of the agreement and provide the original, executed document to the city clerk for record keeping.

(h)

Appeals. Any interested party may file a protest regarding the procurement decisions authorized under this chapter.

(1)

Time to file protest. All protests must be filed in writing and must be received by the city clerk within five business days of the date of the opening of the bids.

(2)

Form of protest. All protests shall be in writing, state the grounds for the protest, state the facts relevant to the protest, and all evidentiary support to rebut adverse evidence that it or another bidder was either non- responsive or not responsible. All protests must be filed in accordance with the instructions contained in the solicitation which is the subject of the protest.

(3)

City manager review. The city manager or his/her designee shall review the protest and shall issue a written decision on the protest. The city manager or his/her designee may base the decision on the written protest alone or may informally gather evidence from the person(s) filing the protest or any other person having

relevant information. For procurements having a value of $175,000.00 or less, the city manager's or his/her designee's decision shall be final.

(4)

Appeal of city manager's decision to city council. For procurements having a value exceeding $175,000.00, an appeal of the city manager's decision may be filed with the city clerk for consideration by the city council. All such appeals must be in writing, and shall be filed within five business days from the date of the city manager's decision.

(i)

Failure to timely appeal. An interested party who fails to file a protest within the times set forth in this section waives any right to protest the issue at a later date.

(j)

Cancellation of invitations. An invitation for bids may be cancelled, or any or all bids or proposals may be rejected in whole or in part as may be specified in the solicitation or in the city council's discretion.

(k)

Rejection of bids. The city council may reject all bids or award the purchase contract to the lowest responsive and responsible bidder whose bid fulfills the intended purpose according to criteria designated in the solicitation, provided that an unencumbered appropriation exists for the purchase. The city council may waive any minor bid irregularities. If bids are rejected, the city council may authorize purchasing staff to negotiate a contract for the purchase, initiate a rebid, or abandon the purchase.

(l)

Local preference. Quality and service being equal, a local preference of five percent shall be given to local vendors within the city as set forth in section 3.32.140.

(m)

Bonds. The city may require a bid bond with any bid, or a performance bond, labor and material bond or warranty bond before entering into a contract, in such amount as is reasonably necessary to protect the interests of the city. The form of payment and amount of any bond shall be described in the notice inviting bids.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

A purchasing officer may solicit competitive sealed proposal process by way of a Request for Proposal (RFP) the procurement of services in an amount of more than $30,000.00. RFPs procedures are as follows:

(1)

Request for proposals and notice.

a.

The RFP should include a detailed scope of work, clearly state the city's needs and articulate the criteria for evaluating proposals submitted.

b.

General notice. A notice requesting proposals ("RFP") shall be issued and shall include a general description of the services to be procured, shall state where proposal forms and specifications may be obtained, and the time and place for the delivery of proposals. Public notice of the invitation for bids shall be given at least 14 calendar days prior to the date set for the opening of bids. The notice shall be published at least once in a newspaper of general circulation in the city and on the city's purchasing/bidding website. If there is no newspaper of general circulation the notice shall be published in at least three public places in the city that have been designated by ordinance as the places for posting public notices. The purchasing officer, or his/her designee, may also choose to publish the notice in another newspaper, trade newspaper, trade journal, and/or on an electronic procurement solicitation system in order to provide notice to the largest number of prospective bidders. The city clerk shall administer the posting of all legally required notices in the three public places designated by ordinance. All other postings shall be handled by the respective purchasing officer.

c.

Bidding list. The city manager, or his/her designee shall maintain a list of prospective vendors and trade journals. Bids shall be solicited from all prospective vendors and trade journals whose names are on the bidder's list or who have requested that their names be added to the list.

A notice inviting formal bids shall be emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with this section.

If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission at least 14 calendar days before the date of the bid opening.

d.

Advertising. The initiating purchasing officer is required to advertise in accordance with the above-stated requirement.

e.

Bulletin board. The initiating department may also advertise pending purchases by a notice posted on a public bulletin board in city hall or the city's website.

f.

Pre-bid conference. If the nature of the bid is particularly complex, it may be desirable to conduct a pre-bid conference with prospective bidders as a group to provide additional bid information and to answer any questions concerning the bid package. If a pre-bid conference is to be scheduled, it shall be indicated in the notice inviting bids, with time and place of the conference provided. In order to minimize potential inequities in the distribution of information related to the bid, departments could mandate attendance to this conference in order to be considered an eligible bidder. This mandate would have to be defined in the bid terms and conditions.

(2)

Evaluation factors. The RFP shall identify all evaluation factors that will be used by the purchasing officer, and the relative importance of the evaluation factors, including price. Evaluation factors should include the following.

a.

Mandatory elements.

The person or entity is properly licensed to practice in California, has no conflict of interest, adheres to the proposal instructions and includes a letter of transmittal.

Expertise and experience.

Response to the scope of work.

Allocation of resources.

b.

Oral presentations/interviews with responsible offerors and revisions to proposals. The city may conduct interviews and negotiations with responsible vendors whose proposals are responsive to the RFP, for the purpose of gaining full understanding of the proposal contents. Vendors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals. Such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be no disclosure of the identity of competing vendors or any information derived from proposals submitted by competing vendors.

c.

Once firms are ranked based upon quality, the staff determines if the highest ranking firm's cost proposal is reasonable prior to making a recommendation for selection. If the cost proposal is found to be unreasonable, staff evaluates the next highest ranked firm's cost proposal. Determining a reasonable cost

is based on a comparison of proposals, project budget, prior experience, comparative project costs in neighboring cities and professional judgment. More than one vendor may be chosen if it is determined to be more cost effective.

(3)

Award.

a.

Bids not received via the city's electronic bidding system shall be submitted to the city clerk and shall be identified as bids on the envelope. A written record and tabulation shall be made at the time all bids are received. The tabulation of all bids received shall be open to public inspection after the bid opening during regular business hours for a period of not less than 30 days after the bid opening, but shall not preclude the city council from awarding the contract after the five day protest period. Other information relating to the bids shall be available to the public in accordance with the Public Records Act.

b.

Bids received on the city's electronic bid system shall be opened by the purchasing after the stated deadline for bids to be received. A written record and tabulation shall be made and retained by each department head. The tabulation of all bids received shall be open to public inspection after the bid opening during regular business hours for a period of not less than 30 days after the bid opening, but shall not preclude the city council from awarding the contract after the five day protest period. Other information relating to the bids shall be available to the public in accordance with the Public Records Act.

c.

Evaluation/selection committee. The initiating purchasing officer shall propose a selection committee. Any individual or entity that has an interest in one or more of the entities submitting a proposal shall recuse themselves from the selection process or from the selection committee. The committee will rank the candidates based on the evaluation criteria and come to a consensus of the top candidate. Details about one proposal cannot be revealed to the other proposers.

d.

Award shall be made to the responsible vendor whose proposal is determined in writing to be the most advantageous to the city, taking into consideration the evaluation factors, including price, set forth in the RFP. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.

e.

The initiating purchasing officer shall submit the staff report to the city council requesting approval to award the contract to the most qualified, responsible bidder. Prior to the submittal of the item to the city manager's office for placement on the city council agenda, the initiating purchasing officer shall obtain the appropriate purchasing, fiscal, and legal review of the contract.

f.

The city council may award a contract or reject all bids. Rejection may be in whole or in part of a bid, if permitted by the bid specifications. If two or more bids are received for the same total amount (quality and service being equal), and if the council finds that the public interest will be furthered, the council may accept the bid it chooses or proceed by negotiation, unless prohibited by law.

(4)

Appeals. Any interested party may file a protest regarding the procurement decisions authorized under this chapter. The appeal process shall be pursuant to that set forth in section 3.32.260 of this chapter. An interested party who fails to file a protest within the times waives any right to protest the issue further.

(5)

Determination of non-responsibility; non-responsiveness, cancellation of invitations; bonds. The provisions set forth in section 3.32.260 of this chapter relating to determination of non-responsibility, non- responsiveness, cancellation of invitations and bonds, shall apply to the RFP process.

(6)

Request for qualifications. The purchasing officer may distribute a request for qualifications ("RFQ") before initiation of the RFP process. An RFQ may include a general description of the qualifications desired and the services to be procured, shall state where forms and further information may be obtained, and the time and place for the delivery of responses. Public notice of the RFQ shall be posted at least ten calendar days prior to the date set for the delivery of responses. The notice shall be published at least once in a newspaper of general circulation in the city or in at least three public places in the city.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The competitive processes identified in sections 3.32.260 and 3.32.270 shall not apply in the following circumstances.

(1)

Emergency. A purchasing officer may make emergency purchases of goods, procurement of services, or undertake public construction, without following the competitive process in this chapter when there exists an immediate, substantial and verifiable threat to public health, welfare, or safety, or when a local emergency has been declared or proclaimed in accordance with the provision of chapter 2.44 of the Perris Municipal Code provided that such emergency purchases shall be made with such competition as is practicable under the circumstances. A written determination of the basis for the emergency purchase or procurement, and for the selection of the particular vendor or contractor shall be included in the contract file. For contracts other than for public projects in the amount of $40,000.00 or less, or for public project contracts in the amount of $80,000.00 or less, this determination shall be made by the city manager. For contracts for other than public projects in the amount of more than $40,000.00, or for public projects contracts in the amount of $80,000.00, the city manager shall provide a report to the city council after the emergency condition has passed or subsided of the basis for the emergency purchase or procurement, and

for the selection of the particular vendor or contractor. The city council may ratify the contract following a determination that the emergency purchase or procurement was warranted.

(2)

Sole or limited source. Unique commodities and services which can be obtained from only one vendor or one distributor authorized to do business in the State of California, with singular characteristics or performance capabilities or which have specific compatibility components with existing city products are exempt from the competitive bidding requirements set forth in this chapter and are deemed sole source purchases. Sole source purchases may include proprietary items sold direct from the manufacturer. All sole source purchases shall be supported by written documentation indicating the facts and nature supporting the determination of a sole source, signed by the appropriate department head and forwarded to the finance department. As with any other purchase, staff must establish facts indicating the anticipated cost is fair and reasonable. A contract may be awarded without competition when the purchasing officer determines in writing, after conducting a good faith review of available sources, that there is only one source for the required goods, service, or construction item. For contracts other than public projects in the amount of $40,000.00 or less, or for public projects in the amount of $80,000.00 or less, this determination shall be made by the city manager. For contracts other than public projects in the amount of more than $40,000.00, or for public projects in the amount of $80,000.00, this determination shall be made by the city council. The city manager or his/her designee shall conduct negotiations, as appropriate, as to price, delivery, and terms. A statement of the basis for the sole source determination shall be placed in the contract file.

(3)

Public interest. In limited and unique circumstances, competitive bidding is not required when it would be impossible, or when it would not be in the public interest. This exception may apply when the purchase is for: (1) a specialized technology product, (2) an addition to, or repair or maintenance of, existing equipment which can be more efficiently added to, repaired or maintained by a particular company or manufacturer, or (3) equipment which must be compatible with existing equipment, by reason of the training of the personnel or an inventory of existing replacement parts kept by the city. For non-public project contracts in the amount of $40,000.00 or less, or for public project contracts in the amount of $80,000.00 or less, this determination shall be made by the city manager. For non-public project contracts in the amount of more than $40,000.00, or for public project contracts in the amount of $80,000.00, this determination shall be made by the city council. A statement of the basis for the determination shall be placed in the contract file.

(4)

Other exceptions. Contracting for trash and garbage services, and any services connected with elections is not required to follow the competitive bidding procedures.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017; Ord. No. 1443, § 6, 6-11-2024)

(a)

Notwithstanding any contrary provision in this code, the use of electronic media is authorized for any formal and informal bidding process pursuant to this chapter 3.32, including without limitation submission, identification, opening and reporting of bids electronically ("electronic bidding"; "E-Bid"), provided that it be in accordance with state law and the Perris Municipal Code. Electronic bidding shall include measures as the city deems appropriate for security of the bidding, approval and award processes and accurate retrieval or conversion of electronic information into a medium which permits inspection and copying. All electronic bids shall be submitted in a manner set forth in the notice of inviting bids and/or the bid instructions.

(b)

The city may, in its sole discretion, require electronic bidding for any informal and formal bids authorized under this chapter 3.32. If the city elects to use electronic bidding, then all bids must be submitted electronically consistent with the notice of inviting bids and/or bid instructions. If electronic bidding is not selected, then no bids may be submitted electronically.

(c)

The term "mail" as used in, and other forms of written communication required under, this chapter 3.32 includes electronic mail and facsimile.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The following sections describe the purchasing policy and requirements applicable to all procurements made using credit cards issued the city. If any section of this policy is determined to conflict with state and/or federal procurement requirements, the procurement shall be deemed exempt from this policy.

Guidelines set forth herein apply whenever a city employee uses a city-issued credit card to make certain supply and service purchases on behalf of the city and pay for travel expenses when on city business.

The use of city credit cards in lieu of other payment options is intended to:

(1)

Reduce procurement and payment processing costs.

(2)

Improve vendor relations by making "doing business" with the city easier.

(3)

Enhance internal control by better identifying specific employees making minor supply and service purchases on behalf of the city, and improving the accuracy of account distributions between programs and projects.

(4)

Take advantage of cost-saving opportunities by purchasing on the Internet and through catalogs.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The purchasing authority is designed to be "up front." The city cardholder is delegated the authority to purchase certain supplies and equipment within specified dollar amounts for business related purposes for the city.

(a)

Although it is not required, city employees are encouraged to make purchases from vendors who provide government discounts when using city credit cards.

(b)

The city's credit cards that are available for check-out are issued in the city's name. The city manager may approve a city credit card to be issued in an employee's name.

(c)

Authorization to check-out a city credit card must be obtained from the department head and presented to the finance department.

(d)

Each employee issued a credit card or checks out a city credit card is responsible for the security of the card and all transactions associated with it.

(e)

The city's credit cards may be used for in-store purchases, mail, telephone, and internet or fax orders.

(f)

Transaction limits are established and authorized by each department head and approved by the finance director or accounting manager. At the time of check-out, finance staff will electronically adjust the credit card limit according to the department head's approved amount.

(g)

The city's competitive bidding standards apply to all types of payment methods, including credit card purchases. Unless otherwise authorized by the city manager or a designee, individual credit card purchases shall not exceed $5,000.00.

(h)

All check-out cards must be returned to the finance department by 6:00 p.m. of the day of check-out, unless otherwise authorized by the finance director.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

A cardholder is defined as a city staff member approved by his/her department head to execute transactions on behalf of the city and/or whose name appears on the credit card.

(b)

Supporting documentation is defined as a merchant-produced original record of the relevant details for each item purchased including but not limited to quantity, amount, and vendor name and address.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The finance director shall cause to be issued to the city manager a credit card with a $5,000.00 limit to be used for city business expenditures only.

(b)

Subject to the city manager's discretion, department heads and non-limited service employees may be issued a credit card with a limit designated by the city manager to be used for city business expenditures only.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Each cardholder must activate the city's credit card before use by following the instructions that come with the card.

(b)

Each cardholder shall be responsible for obtaining receipts for all purchases.

(c)

Credit card statements are mailed directly to the finance department and then distributed to each department.

(d)

Cardholders must compare each transaction to their receipts to ensure accuracy and report any discrepancies or erroneous charges to the finance director immediately.

(e)

Proper documentation for all transactions is MANDATORY. Failure to comply with city credit card procedures shall result in the cancellation of the credit card by the finance director of a designee, and may result in disciplinary action against the card holder.

(f)

All credit card statements and supporting documentation must be received by the finance department and signed by the cardholder before payment is issued.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Credit cards may be used in paying for travel expenses on city's business and to all such credit card payments, including the budgetary limitations and requirements for adjustments prior to the payment of an applicable expenditure.

(b)

Membership dues. Use of city funds for organizational memberships and dues may be permitted for memberships in organizations that provide educational or professional service value to the city. City funds may not be used to pay personal membership dues that do not provide educational or professional service value to the city. When organizational membership and dues are in question, the city staff member must consult with their supervisor.

(c)

Fuel expenditures. Subject to the city manager approval, fuel should be obtained from the city's fueling facility or by the use of a city issued fuel credit card.

(d)

Special purchases. Purchases which appear, on their face, to be of a personal nature, must be approved, in writing and in advance by the department head in a manner which establishes the public purpose.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The city credit card shall not be used for the following:

(1)

Cash advances.

(2)

Personal services.

(3)

Contracted services such as independent contractors, performers, consultants, speakers, attorney fees, printing services.

(4)

Construction, renovation or installation services.

(5)

Fuel for personal vehicles (except that it may be used for rental car gas while on official business). Personal vehicle mileage should be reimbursed by accounts payable check to those employees who do not receive a car allowance.

(6)

Personal convenience items. This includes, but is not limited to commuting expenses, parking tickets, personal fines, gifts, entertainment, personal membership fees, personal clothing and footwear, decorative items, personal qualification expenses.

(7)

Medical services.

(8)

Services of sole proprietorships or individuals.

(9)

Any purchases or transactions requiring a separate written agreement is subject to the city manager's approval.

(10)

Gift cards for use other than city event prize/giveaways are subject to the city manager's approval.

(b)

Credit cards shall not be used to circumvent established competitive purchasing procedures. No purchases for goods or services shall be made in excess of $5,000.00.

(c)

Purchases for non- official city business. Personal charges must not be applied to the city's credit card. Personal charges mistakenly applied to the city credit card must be reimbursed to the city immediately. Violation of city credit card procedures may result in disciplinary proceedings up to and including termination, as well as applicable civil and/or criminal action.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Secs. 3.32.350—3.32.390. - Reserved.

The following sections describe the policy and requirements applicable to all procurements made using petty cash by the city. If any section of this policy is determined to conflict with state and/or federal law, state or federal law shall prevail.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

A petty cash fund may be established in the finance department for the procurement or reimbursement of low-value supplies and services, when other methods of procurement are not readily available. Departments shall make deliberate efforts to use the normal procurement process through accounts payable, or to use city issued credit cards where possible in order to minimize petty cash disbursements.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The finance director shall determine whether to authorize the petty cash fund and establish the maximum amount of the fund. Petty cash funds shall not exceed $1,500.00 in the aggregate.

(b)

Petty cash funds may be used only for incidental, non-recurring or emergency purchases. The finance director or his/her authorized designee may approve an exception for documented justifiable reasons submitted by the department head having delegated expenditure decision authority.

(c)

All purchases must be for authorized purposes only.

(d)

The department head or authorized designee must review and approve in writing all petty cash disbursements.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The finance director shall designate a minimum of two permanent city employees as primary and alternate petty cash custodians. The custodians should be available during working hours to issue disbursements for department head-approved petty cash purchases. The designation of specific responsibility for custody of petty cash funds shall be effectuated through delegations of authority and position descriptions.

[(b)]

The finance director shall ensure the designated employees are aware of city policies, and understand and receive training in internal controls and applicable rules and regulations governing the custody and control of petty cash funds.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The custodian is responsible for the custody and control of the petty cash fund; however, accountability and responsibility for the proper use and care of the fund remain with the finance director or authorized designee.

(b)

Petty cash shall be placed in a locking cash box and secured in a safe, vault, locking file cabinet or comparable secured storage area with access restricted to authorized employees.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

Change funds are established by the finance department for use by certain departments that have customers and must provide change. Change funds are not to be used for petty cash purchases.

(b)

Under no circumstances shall petty cash funds be used to circumvent the city's purchasing policy. Petty cash disbursements will be charged to the appropriate departmental account, and must have budgeted funds available. Petty cash funds shall not be used for any unauthorized disbursement or transaction, including but not limited to:

(1)

Payroll advances;

(2)

Mileage reimbursements;

(3)

Contract labor payments;

(4)

Professional services, tutors, mentors or provider payments;

(5)

Personal loans, IOUs or advancing cash to an employee, volunteer, personal services contractor, agent of the city, or other person;

(6)

Cashing checks for anyone;

(7)

Purchasing animals or paying for their care and upkeep;

(8)

Donations;

(9)

Personal services or personal items for an employee, volunteer, agent of the city or other person;

(10)

Purchasing any item strictly prohibited by rule or law;

(11)

Alcoholic beverages;

(12)

Tobacco products;

(13)

Controlled substances;

(14)

Fines, penalties or other similar items.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

A petty cash reimbursement request form must be completed to support all disbursements of cash from the petty cash fund. The petty cash reimbursement request form must be completed in its entirety, signature-approved and dated by a department head or authorized designee with delegated expenditure decision authority, and signed and dated by the custodian processing the transaction. Approved disbursements must be for authorized expenditures and be supported by appropriate original documentation, including but not limited to:

(1)

Completed petty cash reimbursement request form;

(2)

Purpose of the expenditure;

(3)

Description of the goods purchased or of the services provided (entered by the vendor if a handwritten receipt is obtained, or by the purchaser if a cash register tape is issued);

(4)

Amount of the expenditure;

(5)

Accounting code(s) to be charged;

(6)

Original itemized cash register receipt or sales ticket (date must be not older than seven business days). Receipts should show the name of the business where the purchase occurred;

(7)

Signed and dated by the petty cash custodian;

(8)

Signed and dated by the individual receiving payment;

(9)

Signed and dated by the department head or authorized designee with delegated expenditure decision authority.

(b)

Petty cash disbursements will not be made without proof of purchase (sales receipt slip). The receipt must be an original. Copies are not acceptable. Receipts that show evidence of alteration are not acceptable.

(c)

Individual expenditures from the petty cash fund shall not exceed $150.00. Expenditures exceeding $150.00 shall be handled through normal accounts payable or purchasing procedures.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The department head or authorized designee with delegated expenditure decision authority may approve petty cash advances for authorized expenditures. The custodian may not authorize petty cash advances nor be authorized as a designee with delegated expenditure decision authority.

(b)

A petty cash advance form must be completed and given to the custodian to place in the petty cash box. The petty cash advance request must include, but is not limited to:

(1)

The amount of the cash advance;

(2)

The item(s) authorized for purchase;

(3)

Dated signatures of the individual requesting the funds and the department head or authorized designee approving the advance;

(4)

Dated signature of the petty cash custodian to indicate that the funds were advanced.

(c)

Petty cash advances may not be held for more than two business days. Within one business day after the purchase is made, the original receipt and any unused funds must be returned to the petty cash custodian. The original advance form must be completed and include:

(1)

The actual amount of the authorized purchase;

(2)

The cash amount returned, or zero if all funds were used;

(3)

Dated signature of the employee who received the advance and date;

(4)

Dated signature of the petty cash custodian receiving the unused cash and/or original sales receipts and date;

(5)

Original itemized receipt attached to the petty cash advance form.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Petty cash funds are operated on an impress basis. This means receipts are obtained for all disbursements and kept with the petty cash monies. At all times, the total currency and receipts must equal the total authorized amount of the petty cash fund. A reconciliation of the petty cash fund shall be conducted on a bi-monthly basis at a minimum.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

(a)

The petty cash fund shall be replenished in a timely basis to ensure that a sufficient amount of cash is kept on hand at all times. When the fund is reduced to a balance that requires replenishment, the custodian shall perform a reconciliation and complete the petty cash ledger. All required supporting documentation must be attached to the ledger and provided to the appropriate accounts payable personnel in the finance department to replenish the fund. The custodian shall submit the required documentation with a reasonable amount of lead time to allow for the normal processing of the amount to replenish the petty cash fund.

(b)

Petty cash funds should be reimbursed on an as needed basis determined by the custodian.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The finance director or his/her authorized designee shall conduct an annual review of all petty cash funds to assess the reasonableness of the cash balances maintained in relation to operating needs. The assessment will include a recommendation to increase, decrease, and close or retain the original amount of the petty cash fund.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

The finance director shall ensure that cash overage and shortage amounts are handled in an appropriate manner in accordance with any applicable city policies.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Petty cash funds are subject to periodic audits by external auditors to ensure proper controls are maintained. The finance director, his/her authorized designee, and petty cash custodian shall ensure that the fund is balanced and available for audit at all times. Recurring audit findings may result in the petty cash fund being revoked.

(Ord. No. 1341, § 2(Exh. A), 3-14-2017)

Effective July 1, 2017, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, codified under Title 2, Subtitle A, Chapter 2 of the Code of Federal Regulations ("2 CFR 200") have been updated to include new procurement requirements for non-federal entities expending federal awards.

When appropriate, the City of Perris ("City") requests federal grant monies for projects that benefit its citizens. This chapter serves to outline the city's procurement policy for all federally-funded projects and purchases. These policies and procedures reflect applicable state and local laws and their conformity to the applicable federal laws and standards identified in 2 CFR 200.318-326.

The new uniform guidance is designed to better mitigate the risk of waste, fraud, and abuse of federal funds. Non-federal entities are required to have certain written policies and procedures surrounding the management of their award funds. Although the City of Perris already has a procurement chapter in place, as outlined in Chapter 3.32 of the Perris Municipal Code, this new section is meant to append that ordinance and maintain federal compliance. The policies outlined in these sections may be applied to any related entities to the city to the extent that entity does not have a separate policy.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

All requesting departments shall consult this chapter when dealing with any procurements in which federal funds are contemplated or used.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

All federally-funded procurements shall be overseen by the applicable department head or city manager appointed purchasing officer. Refer to section 3.32.100 through 3.32.165 of the city's Municipal Code for delegation of responsibility, contract authority, and other general purchasing procedures.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

(a)

No employee, officer, or agent of the city shall participate in the selection, award, or administration of a contract supported by federal funds if a conflict of interest, real or apparent, is or would be involved. Such a conflict could arise if the employee, officer, or agent; any member of his/her immediate family; his/her partner; or an organization which employs (or is about to employ) any of the above, has a financial or other interest or a tangible personal benefit from a firm considered for a contract. CFR Reference: 2CFR 200.318(c)(1)

(b)

No employee, officer, or agent of the city shall solicit or accept gratuities, favors, or anything of monetary value from contractors or firms, potential contractors or firms, or parties to subagreements, except where the financial interest is not substantial. This restriction not only applies to the city employee, officer, or agent, but also to that person's spouse or any entity in which that person or their spouse own at least 25 percent. CFR Reference: 2 CFR 200.318(c)(1)

(c)

The prohibition against conflicts of interest and gratuities and kickbacks shall be conspicuously set forth in every written contract and solicitation. It shall be a breach of ethical standards for any public employee or former employee, officer, or agent knowingly to use confidential information for his actual or anticipated personal gain or the actual or anticipated personal gain of any other person. CFR Reference: 2 CFR 200.318(c)(1)

(d)

When federal funds are utilized, the city purchasing officer (city manager designee or department head) shall check the potential vendor list against SAM.gov to verify that the potential awardee is not subject to federal debarment or suspension status. Additionally, vendors are required as a part of their response to a solicitation to attest to the fact that they have not violated any standards in their submission to the city. If the city determines that there is a federal debarment, the city will not award a contract to the entity. CFR Reference: 2 CFR 200.318(c)(1)

(e)

All employees, department heads, and consultants are required to report any alleged violations of this established code of conduct to the city manager immediately. Where violations appear to have occurred, the offending employee, officer, or agent may be subject to disciplinary action as outlined in the Personnel Rules and Regulation document. CFR Reference: 2 CFR 200.318(c)(1).

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

The uniform guidance outlines five methods of procurement: micropurchases, small purchases, sealed bids, competitive proposals, and noncompetitive (sole source) proposals. The table below shall be used to identify bidding requirements for each of the five methods of procurement:

Purchase Type Characteristics and Requirements

Below simplified acquisition threshold of $150,000.00

Micropurchases • Under the micropurchase threshold (currently $3,500.00 and recently adjusted from $3,000.00)

• No bid or quote process required

• No cost or price analysis required

• Should be distributed among a range of qualified vendors

• Use interentity agreements where applicable

Small purchases • Under $150,000.00

• Price or rate quotes required from an adequate number of sources

• Should be distributed among a range of vendors

• Use interentity agreements where applicable

Above simplified acquisition threshold of $150,000.00

Sealed bids • Typically used for construction contracts

• Bids must be publicly solicited

• Two or more bidders are willing and able to compete and qualified

to do the work

• Complete, adequate, and realistic specification or purchase

description is available

• Firm fixed-price contract is feasible; a bidder can be selected based

on price

Competitive proposals • Requires request-for-proposal process and solicitation of an adequate number of bidders

• Written method of evaluation, considering price as well as other

factors advantageous to the program

Above or below simplified acquisition threshold

Noncompetitive proposals Falls into one or more of these four circumstances:

• Item available only from a single source

• Public exigency or emergency won't permit a delay resulting from

competitive solicitation

• Expressly authorized by the awarding agency or pass-through entity

• Competition is determined to be inadequate after solicitation

Bid Amount

The purchasing thresholds shown in the table differ from the city's procurement policy and shall be used when considering or using federal grant funds for the procurement of services and/or goods.

Bid Solicitation

The city's approved procedures for specific types of bidding are outlined in Perris Municipal Code Sections

Sealed Proposal Process for Professional Services. The city's current procedures for the applicable type of bid solicitation (per the table above) shall be followed.

The purchasing officer is responsible for identifying the requirements of both the city's procurement chapter and the federal guidelines above, as well as adhering to both when applicable.

Positive efforts shall be made by the city to utilize small businesses, minority-owned firms, and women's business enterprises, whenever possible. The city shall take all of the following steps to further this goal.

(1)

Ensure that small businesses, minority-owned firms, and women's business enterprises are used to the fullest extent practicable.

(2)

Make information on forthcoming opportunities available and arrange time frames for purchases and contracts to encourage and facilitate participation by small businesses, minority-owned firms, and women's business enterprises.

(3)

Consider in the contract process whether firms competing for larger contracts intend to subcontract with small businesses, minority-owned firms, and women's business enterprises.

(4)

Encourage, when practical, contracting with consortiums of small businesses, minority-owned firms and women's business enterprises when a contract is too large for one of these firms to handle individually.

(5)

Use the services and assistance, as appropriate and practical, of such organizations as the Small Business Administration and the Department of Commerce's Minority Business Development Agency in the solicitation and utilization of small businesses, minority-owned firms and women's business enterprises.

(6)

The type of procuring instruments used (e.g., fixed price contracts, cost reimbursable contracts, purchase orders, and incentive contracts) shall be determined by the city but shall be appropriate for the particular procurement and for promoting the best interest of the program or project involved. The "cost-plus-a- percentage-of-cost" or "percentage of construction cost" methods of contracting shall not be used.

(7)

The city is prohibited from using staturtorily or administratively imposed state or geographical preferences (unless mandated by federal statute, or in cases where a state license, such as architectural or engineering, may be required to perform a project in California).

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

Uniform guidance requires written procedures for determining whether a cost is allowable in accordance with Subpart E (CFR Reference: 2 CFR 200.032(b)(7)). Internal control procedures for making that determination is outlined in Perris Municipal Code Section 3.32.515. The following criteria summarizes the key points that must be considered when determining whether a cost is allowable CFD Reference: 2 CFR 200.403:

(1)

Be necessary and reasonable for the performance of the federal award (and be allocated to that use)

(2)

Conform to limitations or exclusions regarding type or cost

(3)

Be consistent with the policies and procedures the organization would apply to non-federally financed work

(4)

Be treated consistently with other comparable costs - for example, a cost may not be treated as a direct cost if a cost incurred for the same purpose in similar circumstances was allocated as an indirect cost

(5)

Be determined in accordance with US generally accepted accounting principles except as otherwise provided in 2 CFR 200

(6)

Not be used to meet cost-sharing or matching requirements of any other federally financed program (see also 2 CFD 200.306(b))

(7)

Be adequately documented (see also 2 CFD 200.300 through 200.309)

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

Per Perris Municipal Code Section 3.32.010, the city manager, or his/her designee, serves as purchasing officer for all city procurements. Responsibilities of the purchasing officer are outlined in section 3.32.010 and shall apply for federal procurements. Initially, it is the purchasing officer's responsibility to determine if costs are allowable for a federal grant. The city's finance department will regularly monitor all expenditures and report any concerns to the purchasing officer and city manager.

Some form of cost or price analysis shall be made by the purchasing officer or department head, and documented in the procurement files in connection with every procurement action above $500.00 in value. Price analysis may be accomplished in various ways, including the comparison of price quotations submitted, market prices and similar indicia, together with discounts. Cost analysis is the review and evaluation of each element of cost to determine reasonableness, allocability and allowability.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

On a bi-monthly basis, the city's finance department will review all grant expenditures for allowable costs and applicable funding.

If the grant is a reimbursement grant, the purchasing officer and the finance department will review the total expenditures not covered in prior reimbursement requests. If there are no non-allowable costs that must be researched or reported, a reimbursement request will be created on the appropriate grant website (or on forms provided by the grant agency if applicable) by the finance or grant manager. Only those expenditures deemed allowable will be part of the total reimbursement request, and if any questionable purchases have occurred an immediate investigation into the item(s) will be done by the finance manager. A grant that utilizes advanced payments will also be reviewed bi-monthly to determine only allowable costs are charged to the grant fund. Any items that are improperly charged to a grant will be reclassed to another budget line item with available budget only in the instances that general accepted accounting principles and city budget procedures permit the movement of the expenditure to a new budget line item. The new location of the expenditure will be determined by the purchase officer or applicable department head. If there is not another budget line with available budget to charge the non-allowable expenditure to, the purchasing officer will be required to report the expenditure to the city council and request additional budget in a non- grant fund be added to cover the cost.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

The city shall include, in addition to provisions to define a sound and complete agreement, the following provisions in all contracts. The following provisions shall also be applied to subcontracts.

(1)

Contracts in excess of the simplified acquisition threshold shall contain contractual provisions or conditions that allow for administrative, contractual, or legal remedies in instances in which a contractor violates or breaches the contract terms, and provide for such remedial actions as may be appropriate.

(2)

All contracts in excess of the simplified acquisition threshold shall contain suitable provisions for termination by the city, including the manner by which termination shall be effected and the basis for settlement. In addition, such contracts shall describe conditions under which the contract may be terminated for default as well as conditions where the contract may be terminated because of circumstances beyond the control of the contractor.

(3)

For contracts dealing with construction or facility improvements the city shall comply with all requirements imposed by its funding sources (and the government regulations applicable to those funding sources) with regard to construction bid guarantees, performance bonds, and payment bonds.

(4)

All negotiated contracts (except those for less than the simplified acquisition threshold) awarded by the city shall include a provision to the effect that the city shall have access to any books, documents, papers and records of the contractor which are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts and transcriptions.

(5)

All contracts, including small purchases, awarded by the city and their contractors where the source of the funds, directly or indirectly, is the federal government, shall contain the following procurement provisions as applicable.

a.

Equal employment opportunity—All contracts, when funded in whole or part by monies derived from the federal government (either directly or indirectly), shall contain a provision requiring compliance with E.O. 11246, "Equal Employment Opportunity," as amended by E.O. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," and as supplemented by regulations at 41 CFR part 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor."

b.

Copeland "Anti-Kickback" Act (18 U.S.C. 874 and 40 U.S.C. 276c)—All contracts in excess of $2,000.00 for construction or repair, when funded in whole or part by monies derived from the federal government (either directly or indirectly) shall include a provision for compliance with the Copeland "Anti-Kickback" Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR part 3, "Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any

part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to the federal awarding agency.

c.

Davis-Bacon Act, as amended (40 U.S.C. 276a to a-7)—When required by federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2,000.00 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. 276a to a-7) and as supplemented by Department of Labor regulations (29 CFR part 5, "Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction"). Under this Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to the federal awarding agency.

d.

Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333)—All contracts in excess of $2,000.00 for construction contracts and in excess of $2,500.00 for other contracts that involve the employment of mechanics or laborers, when funded in whole or part by monies derived from the federal government (either directly or indirectly), shall include a provision for compliance with Sections 102 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), as supplemented by Department of Labor regulations (29 CFR part 5).

Rights to Inventions Made Under a Contract or Agreement—Contracts or agreements for the performance of experimental, developmental, or research work, when funded in whole or part by monies derived from the federal government (either directly or indirectly), shall provide for the rights of the federal government and the recipient in any resulting invention in accordance with 37 CFR part 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency.

f.

Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.), as amended—Contracts and subgrants of amounts in excess of $100,000.00, when funded in whole or part by monies derived from the federal government (either directly or indirectly), shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251 et seq.). Violations shall be reported to the federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

g.

Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) — Contacts for an amount above $100,000.00, when funded in whole or part by monies derived from the federal government (either directly or indirectly), shall include a certification by the contracting parties that they have not and will not use federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant or any other award covered by 31 U.S.C. 1352. and to further require disclosure of any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier, up to the non-federal award.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)

Procurement records and files for purchases in excess of the small purchase threshold as fixed at 41 U.S.C. 403(11) (currently $25,000.00) shall include the following at a minimum: (a) basis for contractor selection, (b) justification for lack of competition when competitive bids or offers are not obtained, and (c) basis for award cost or price. Procurement records shall be held by the applicable purchasing officer or department head for at least three year following the close of the grant award period.

(Ord. No. 1348, § 2(Exh. A), 8-29-2017)