Petaluma Municipal Code Ch. 4.04 PURCHASING1

1 Editor’s Note: For statutory provisions relating to the purchasing of supplies by cities, see Gov. Code §54201,

et seq.

In order to establish eNcient procedures for the purchase of supplies and equipment, to secure for the city

supplies and equipment at the lowest possible cost commensurate with quality needed to exercise positive

Lnancial control over purchases, to clearly deLne authority for the purchasing function and to assure the quality of

purchases, a purchasing system is adopted. (Ord. 586 NCS §1; prior code §2.67.)

There is created the position of purchasing oNcer. He shall be appointed by the city manager. The duties of

purchasing oNcer may be combined with those of any other oNcer or position. The purchasing oNcer shall have

authority to:

A. Purchase or contract for supplies and equipment required by any using agency in accordance with

purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing oNcer shall

adopt and such other rules and regulations as shall be prescribed by the city council by resolution duly adopted;

B. Negotiate and recommend execution of contracts for the purchase of supplies and equipment;

C. Act to procure for the city the needed quality in supplies and equipment at least expense to the city;

D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all

purchases;

E. Prepare and recommend to the city council rules governing the purchase of supplies and equipment for the

city;

F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;

G. Keep informed of current developments in the Leld of purchasing, prices, market conditions and new

products;

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

rules and regulations;

I. Supervise the inspection of all supplies and equipment purchased to insure conformance with speciLcations;

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

the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for

city use;

K. Maintain a bidders’ list, vendors’ catalog Lle and records needed for the eNcient operation of the purchasing

department.

(Ord. 586 NCS §1; prior code §2.68.)

The purchasing oNcer, with approval of the city council, may authorize, in writing, any agency to purchase or

contract for speciLed supplies and equipment independently of the purchasing department, but he shall require

that such purchases or contracts shall be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the agency on the purchases and contracts made under such written

authorization. (Ord. 586 NCS §1; prior code §2.69.)

Using agencies shall submit requests for supplies and equipment to the purchasing oNcer by standard requisition

forms. (Ord. 586 NCS §1; prior code §2.70.)

Purchases of supplies and equipment shall be pursuant to Sections 4.04.080 and 4.04.090 and 4.04.100. The

procedures set forth in Sections 4.04.080 and 4.04.090 may be dispensed with only when an emergency requires

that an order be placed with the nearest available source of supply, when the commodity can be obtained from

only one vendor, or when purchase is pursuant to Section 4.04.100. (Ord. 1975 NCS §1, 1995; Ord. 1938 NCS §3,

1993; Ord. 586 NCS §1; prior code §2.71.)

Purchases of supplies and equipment shall be made only by purchase order. (Ord. 586 NCS § 1; prior code §2.72.)

Except in cases of emergency, the purchasing oNcer shall not issue any purchase order for supplies or equipment

unless there exists an unencumbered appropriation in the fund account against which such purchase is to be

charged. (Ord. 586 NCS § 1; prior code §2.73.)

Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated

value greater than the amount deLned by city charter shall be by formal bid pursuant to the procedure prescribed

in this section.

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased,

shall state where bid blanks and speciLcations may be secured, and the time and place for opening bids;

1. Published Notice. Notice inviting bids shall be published once in the oNcial newspaper at least Lve days

before the date of opening of the bids,

2. BiddersÕ List. The purchasing oNcer shall also solicit sealed bids from all responsible prospective

suppliers whose names are on the bidders’ list or who have requested their names to be added thereto,

B. BidderÕs Security. When deemed necessary by the purchasing oNcer, bidder’s security may be prescribed in

the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful

bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice

of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal

or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city

council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied

by the city to the diPerence between the low bid and the second lowest bid, and the surplus, if any, shall be

returned to the lowest bidder;

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing oNcer and shall be identiLed as bids

on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of

all bids received shall be open for public inspection during regular business hours for a period of not less than

thirty calendar days after the bid opening;

D. Rejection of Bids. The city council shall reserve the right to reject any or all bids in whole or in part and may

waive any irregularities or informalities in any bids.

E. Award of Purchase or Contracts. Purchases or contracts shall be awarded to the lowest responsible bidder. In

determining the lowest responsive and responsible bidder, the following shall be taken into consideration:

1. The quality, suitability, and eNciency of the item;

2. The total or life cycle cost of the equipment;

3. The delivery, discount terms, and all other conditions submitted in the bid;

4. The reputation of the equipment, the service reputation of the bidder, and all other information and data

required to prove the responsibility of the supplier.

F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being

equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the

one it chooses or accept the lowest bid made by negotiation with the tie bidders;

G. Performance Bonds. The city council shall have authority to require a performance bond before entering a

contract in such amount as it shall Lnd reasonably necessary to protect the best interests of the city. If the city

council requires a performance bond, the form and amount of the bond shall be described in the notice inviting

bids.

(Ord. 1975 NCS §2, 1995; Ord. 875 NCS § 1; Ord. 586 NCS § 1; prior code §2.74.)

Purchases of supplies and equipment of an estimated value less than required by charter for seeking formal bids

may be made by the purchasing oNcer in the open market without observing the procedure prescribed by Section

4.04.080.

A. Minimum Number of Quotations. Open market purchases shall, whenever possible, be based on at least three

quotations, and shall be awarded to the lowest responsible party;

B. Inviting Quotations. The purchasing oNcer shall solicit quotations from responsible prospective suppliers;

C. Quotations. Quotations shall be submitted to the purchasing oNcer who shall keep a record of all open

market orders and quotations for a period of one year after the submission of quotations or the placing of orders.

This record, while so kept, shall be open to public inspection.

(Ord. 1975 NCS §3, 1995; Ord. 875 NCS §2; Ord. 586 NCS §1; prior code §2.75.)

Purchases of supplies and equipment made under a cooperative purchasing program with the state, county or

other public agencies are exempt from the requirements of this chapter. Cooperative purchases joined will have

been competitively awarded, and documentation as to the advantage of the cooperative purchase will be retained.

(Ord. 1938 NCS §2, 1993.)

The purchasing oNcer shall inspect supplies and equipment delivered to determine their conformance with the

speciLcations set forth in the order or contract. The purchasing oNcer shall have authority to require chemical

and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine

their quality and conformance with speciLcations. (Ord. 1938 NCS §1, 1993; Ord. 586 NCS § 1; prior code §2.76.)