Piedmont Municipal Code Art. XV Purchasing

(a) This Article shall be known as the City of Piedmont City Purchasing Ordinance. Pursuant to the provisions of the City’s Charter, the provisions of this Article shall prevail over any conflicting state law. In the event of a conflict between a provision of the City’s Charter and this Article, the City’s Charter provision shall prevail.

(b)
Purpose. The purpose of this Article is to establish procedures and policies for purchasing goods, materials, equipment, supplies, and services (including Professional Services and Public Works of Improvement). It is the policy of the City of Piedmont to utilize Competitive

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Bidding Processes to obtain the best quality and prices for Public Works Projects and needed goods, materials, equipment, supplies and services, except as specifically provided in this Article. The City’s purchasing functions shall be governed by this Article and by the City’s Administrative Purchasing Policy, which shall be adopted by resolution of the City Council, as may be amended from time to time.

(c)
City Council Approval Requirement. City Council approval is required for all contracts unless otherwise specified in this Article, or in another provision of federal or state law.

(d)
Definitions

“Bid” means a response to a solicitation for the performance of a Public Works Project, or for a purchase of goods, materials, equipment, or supplies including, without limitation, a bid, a proposal, and/or a statement of qualifications and experience.

“Bidder” means a person or company that submits a bid, proposal, or any response to a solicitation for a bid.

“Change Order” means a change or addendum to an executed contract.

“Competitive Bidding Process” means a selection process where contractors, service providers and/or vendors compete for contracts to supply the City goods, materials, equipment, supplies, and services, and are selected through a formal or informal process that allows full, fair and open competition for all qualified contractors and/or vendors with selection based on specified criteria established to best meet the needs of the City. Invitations for bids, requests for proposals, and requests for statement of qualifications and experience are examples of competitive bidding processes. A competitive bidding process that awards a contract to the lowest responsive, responsible bidder after public advertisement is referred to as a competitive bidding process by formal solicitation.

“Contract” means a written agreement between the City and a contractor, the City and a service provider, and/or the City and a vendor. “Contract” includes, but is not limited to, a purchase order, a contract for services, a contract for maintenance, leasing of property or equipment, an addendum or change order, a letter agreement, a memorandum of understanding or memorandum of agreement.

“Cooperative Contracts” means a contract already solicited and/or awarded by other public agencies, often under the sponsorship of non-profit cooperative contract associations, allowing the City to purchase goods, services and equipment that have already been competitively bid or assessed pricing, without the need for the City to undertake a separate solicitation request action.

“Emergency” means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. (Reference: Public Contract Code Section 1102).

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“Formal Competitive Bidding Process” means a competitive bidding process that may award a contract to the lowest responsive, responsible bidder after public advertisement by formal solicitation.

“Informal Competitive Bidding Process” means a competitive bidding process that may award a contract to the lowest competitive bidder after solicitation of bids without public advertisement by informal solicitation.

“Master Services Agreement” means a contract for consulting and general services to be provided on an “as-needed” rather than a continuous basis, with a total compensation stated as a maximum limit, which establishes a general scope of work and payment parameters and includes the terms and conditions common to most City contracts.

“Professional Services” means services that require a professional license or high level of technical skill including, without limitation, economic and financial services, attorneys, actuaries, psychologists, medical doctors, claims consultants, insurance brokers, internet and related technology services, consultants and experts for litigation in which the City or any of the boards, commissions, officers or employees are involved, architect, landscape architect, engineer, environmental project development and permit processing, land surveying, land use planning, and construction project management.

“Proprietary Material” means material or information which has been delineated in writing by the contractor, Professional Service provider, service provider, or vendor as being proprietary, and which meets the criteria under state or federal law for qualifying as proprietary material or information.

“Public Work of Improvement” or “Public Works Project” means a project that is paid for, in whole or in part, from public funds, and done under contract with the City or performed by City forces as authorized pursuant to the City Charter or this Article, and that involves at least one of the following:

(i) A project for the construction, erection, improvement, painting, demolition, or repair of public buildings and works;

(ii) Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow; or

(iii) Street or sewer work except maintenance or repair.

“Responsible Bidder” means a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience, specified in notice inviting bids, including the project specifications, prepared for the project bid by the City, to satisfactorily perform the professional services contract including the Public Works project. (Reference: Public Contract Code Section 1103).

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“Sole Source” means procurement which is only available from a single manufacturer or source.

“Standing Supply/Services Purchase Order Agreement” means a contract for supplies or services common to one or several departments on an “as-needed” basis, with a total compensation stated as a maximum limit, which establishes a general order and payment parameters and includes the terms and conditions common to most City contracts.

“Urgent Purchases” mean immediate purchases of goods, materials, equipment, supplies or services made when an urgent circumstance exists, and procurement should not be delayed by use of normal competitive and financial procedures. Lack of planning shall not constitute justification for an urgent purchase.

(e)
Contract Price

(1) Whenever a Contract estimated cost or Contract price is referred to in this Article, for the purpose of determining the appropriate purchasing procedure, that cost or price excludes sales tax and freight.

(2) No Contract shall be subdivided or separated into two or more Contracts to avoid the requirements of this Article.

(f)
Written Contracts

(1) All Contracts entered into by the City pursuant to this Article shall be in writing and shall be executed by the City Administrator or other duly authorized officer or employee of the City.

(2) All Contracts shall require the contracting party, to the maximum extent allowed by law, to defend, indemnify, and hold harmless the City, its officers, officials, employees, and consultants upon the terms specified by the City as being sufficient to cover all damages and loss related to the work, service or purchase provided by the contracting party or its subcontractors or employees.

(3) All Contracts shall require the contracting party to obtain and maintain such insurance coverage as is specified by the City as being sufficient to protect the City, its officers, officials, employees, and consultants from damages and loss related to the work, service or purchase provided by the contracting party or its subcontractors or employees.

(4) All Contracts shall require the contracting party to obtain and shall maintain all licenses, including City business licenses and permits as may be required to provide the contracted goods, materials, equipment, supplies, and services.

(g) City Not Liable / No Waiver.

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The City shall not be liable for payment or other obligation for a Contract, service, or purchase that was subject to, but failed to comply, with, this Article. No provision of this Article shall impose a mandatory duty of enforcement on the City or on any of its officers, officials, employees, boards or councils. If any section purports to impose a mandatory duty of enforcement, said section shall be deemed to invest the City, and appropriate officer, official, employee, board or council with discretion to enforce the section or not enforce it. These procedures are for the City’s sole and exclusive benefit. The City’s failure to follow, enforce, or expressly include the provisions of this Article in any Contract shall not constitute a waiver of this Article’s requirements or the City’s right of enforcement. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

The City Administrator is appointed the purchasing officer of the City. The duties of the purchasing officer may be combined with those of any other City officer or position. The purchasing officer or the purchasing officer’s designated representative shall have the duties prescribed by the City’s Administrative Purchasing Policy. The City Administrator or City Administrator’s designated representatives may sign contracts on behalf of the City when authorized by ordinance, resolution, or other City Council action and may establish rules and regulations as the City Administrator finds necessary to administer this Article and the Administrative Purchasing Policy.

The City Administrator or his/her designated representative shall have authority to:

(a)
Purchase or contract for supplies, services and equipment required by any department or agency within the City in accordance with purchasing procedures prescribed by this Article XV, such administrative regulations as the purchasing officer shall adopt for the internal management and operation, and such other rules and regulations as are prescribed by the City Council by resolution;

(b)
Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;

(c) Negotiate and recommend to the Council execution of contracts for Professional Services;

(d) Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City;

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

(f) Prepare and recommend to the Council rules governing the purchase of supplies, services and equipment for the City;

(g) Prepare and recommend to the Council revisions and amendments to the purchasing rules.

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

(i) Prescribe and maintain such forms as reasonably necessary to the operation of this Article XV and other rules and regulations;

(j) Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications; and

(k) Where practical, maintain a prospective Bidders list or require departments to maintain their own prospective Bidders lists and maintain vendors catalog files and records needed for the efficient operation of the purchasing division.

(l) Utilize other procurement methods as provided in this Article XV when to do so is more beneficial, economical, and in the City’s best interests.

(m) Authorize in writing any City department or agency to purchase or contract for specified supplies, services and equipment, but shall require that such purchases or contracts be made in conformity with the procedures established by this Article XV, and shall further require periodic reports from the City department on the purchases and contracts made under written authorization. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

(a) The City Administrator shall have authority to award contracts for the purchase of materials, supplies, equipment, or services without the City Council approval if the purchase is in the amount of $75,000 or less, and sufficient funds for such purchase have been appropriated in the City’s budget. These purchases shall be subject to procurement procedures set forth in this Article.

(b) The City Administrator shall have authority to award contracts for professional services or Public Works projects greater than $5,000 but less than $75,000, without City Council approval, if sufficient funds for such services have been appropriated in the City’s budget. These purchases shall be subject to procurement procedures set forth in this Article.

(c) The City Administrator shall have authority to approve change orders for City Council approved Public Works projects not to exceed the Estimated Project Construction Budget.

(d) In the event of an emergency or urgent circumstances, the City Administrator may authorize the expenditure of any unencumbered moneys from the operating reserve, notwithstanding the fact that such moneys may not have been appropriated for such purpose.

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Bid procedures set forth in Sections 2.156 through 2.167 shall not apply to these purchases. The City Administrator shall report to the City Council any emergency or urgent purchase made at the next City Council meeting following such action.

(e) The City Administrator may delegate in writing the authority to purchase or contract for specified supplies, services, and equipment as long as such purchases or contracts are made in conformity with the procedures established by this Article.

(f) The City Council shall receive a report listing all contracts approved by the City Administrator at a minimum on an annual basis. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Except as otherwise provided in this Article XV or the Purchasing Policy and Procedures, purchases of supplies, professional services, and equipment shall be made by the bid procedures set forth in Sections 2.156 through 2.167. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Bid procedures set forth in Sections 2.156 through 2.167 do not apply to purchases of supplies, services, and equipment in the following circumstances:

(a) The amount involved does not exceed $5,000.

(b) Emergency or Urgent Purchases.

(c) Supplies, services, or equipment that can only be obtained from a sole source.

(d) The procurement of professional services. However, the City Council may require the bid procedure by resolution in a particular instance;

(e) A gift of funds is made to the City with conditions specifying particular goods, services, or equipment, or a particular provider of same. Where such a conditional gift is used to fund only a portion of a purchase or project, the balance of the purchase or contract shall conform to the bidding requirements of this Article XV.

(f) The City has already awarded a bid for supplies, services, and equipment, following normal bidding procedures pursuant to Sections 2.156 through 2.167 hereof and purchases the same or substantially the same supplies, services, and equipment for the same amount previously bid or within 1% of the amount previously bid with the same supplier, provider or manufacturer awarded the original bid.

(g) In any cooperative arrangement with the United States Government or any agency or division thereof, the State of California, County of Alameda or any other governmental

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jurisdiction in which the City is able to obtain favorable prices based on bids or proposals made for supplies, services and equipment to the other governmental agency, the City is authorized to enter into appropriate written agreements with the other governmental entity to achieve this purpose.

(h) Where another governmental entity has obtained or awarded a bid for supplies, services and equipment based on its own bidding procedures, the City may purchase the same or substantially the same supplies, services, and equipment for the same amount of the bid to the other governmental entity or within 1% of such amount with the same supplier, provider or manufacturer the bid was awarded to by the other governmental entity.

(i) Alternative methods for procuring supplies, services and equipment, and exceptions to Competitive Bidding Processes as set forth herein:

(1) Design-Build Authorization. Subject to authorization of the City Council, the City may utilize an alternate procedure for bidding on building construction projects in excess of $75,000 pursuant to the procedures in California Public Contract Code Section 22160, et seq., and specifically incorporated herein, as it may be amended from time to time.

(2) City’s Best Interest. Except where otherwise required by federal law or by reason of the source of funding for the project, goods, materials, equipment, supplies, and services may be obtained by negotiated Contract and without a Competitive Bidding Process, when the City Council determines that, due to the nature of the goods, materials, supplies, equipment, or services, (1) a Competitive Bidding Process is not likely to serve the best interests of the City or to result in the lowest price, or (2) there is a less expensive alterative (e.g., State contract, used equipment, etc.) that will serve the City equally as well . Such motion shall be approved unanimously by the Council.

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(3) Other. Competitive Bidding Processes may be dispensed with in accordance with any other section of the City Charter or this Article that provides such an exemption.

(4) Purchases Not Susceptible to Competitive Bidding Process. Except where otherwise required by federal law or by reason of the source of funding for the project, goods, materials, equipment, supplies and services may be obtained by negotiated Contract and without a Competitive Bidding Process, where such purchases are not readily adaptable to the open market and bidding processes. Such purchases include, but shall not be limited to: (1) utility services (telephone, gas, water, sewer and electricity) provided to City buildings and facilities, (2) franchises awarded by the City Council, (3) insurance or bond premiums, (4) subscriptions, memberships, software licenses, advertisements and travel expenses.

(5) Master Service Agreements. Master Service Agreements may be made with specific vendors to provide services over time. The Master Service Agreement will establish the basic contractual terms and purchase or task orders with specific scopes of work and payment terms shall be required for purchases made through Master Service Agreements.

(6) Standing Supply/Service Purchase Order Agreements. Standing Supply Purchase Order Agreements may be made with specific vendors for purchase of repetitive-use goods, materials, equipment, and/or supplies common to one or several departments. The Standing Supply Purchase Order Agreements will establish the basic contractual terms and purchase orders with specific goods, materials, equipment and/or supplies and payment terms shall be required for purchase made through Standing Supply Purchase Order Agreements.

(j) Use of City Forces. City employees may be used to perform services in accordance with the City’s Charter and shall not be subject to the terms of this Article. (Ord. No. 482 N.S., 2/87, Ord. No. N.S. 503, 10/88, Ord. No. 716 N.S., 02/15, Ord. 727 N.S., 4/17)

Purchases of services, supplies or equipment for $5,000 or less and for which an appropriation is included in the Adopted Budget, shall be approved by individual Department Head requiring the services, supplies, or equipment. Additional purchasing procedures shall be established by City’s Administrative Purchasing Policy. (Ord. No. 716 N.S., 02/15, Ord. 727 N.S., 4/17)

Except as otherwise provided in this Article XV, budgeted purchases of services, supplies and equipment of an estimated value of more than five thousand dollars ($5,000.00) and not exceeding seventy-five thousand dollars ($75,000.00) may be made to the lowest responsive,

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responsible bidder after informal solicitation in the open market without public advertisement pursuant to the procedure prescribed in Sections 2.156 through 2.159. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Open market purchases shall, whenever possible, be based on at least three bids of record and shall be awarded to the lowest responsive, responsible bidder. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

The purchasing officer or designee shall solicit bids from prospective providers by one or more of the following methods: written request, telephone, or public notice posted on a public bulletin board in City Hall. (Ord. No. 433, N.S. 2/83, Ord. 727 N.S., 4/17)

The purchasing officer shall keep a record of all open market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, and subject to Proprietary Material, shall be open to public inspection. (Ord. No. 716 N.S., 02/15, Ord. 727 N.S., 4/17)

Except as otherwise provided in this Article XV, purchases and contracts for supplies, services, and equipment of a value greater than seventy-five thousand ($75,000.00) dollars shall be entered into after a Competitive Bidding Process by formal solicitation, and awarded to the lowest responsive, qualified responsible bidder, pursuant to the procedure prescribed in Sections 2.160 through 2.166 hereof. (Ord. No. 482, N.S., 2/87, Ord. 727 N.S., 4/17)

(a) For any Public Works Project, the estimated cost of which is more than seventy-five thousand dollars ($75,000), the City Administrator or City Administrator’s designee may solicit from prospective Bidders Statements of Qualifications (SOQ) in a manner consistent with the procedures in the Purchasing Policy and in conformance with this Article. Prospective Bidders shall complete fully the SOQ, which when completed, shall be submitted as a declaration under penalty of perjury. Advertisement of the SOQ to prospective Bidders shall be made in the manner of advertising public notice inviting Bids. Said responses shall be submitted in sealed envelopes as provided in the SOQ and shall be identified as responses to the SOQ for the designated project. Whenever prequalification is required of any Bidder for a Contract, it shall be required for all prospective Bidders for that Contract.

(b) Notices inviting bids shall include a general description of the services, supplies, or

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equipment to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

(1) Publication. Notice inviting bids shall be published at least ten working days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation in the City;

(2) Prospective Bidders List. The purchasing officer shall also solicit sealed bids from responsible prospective suppliers, prequalified Bidders, and/or those Bidders who have requested their names to be added to a bidders list; and

(3) Bulletin Board. The purchasing officer shall also advertise pending purchases by a notice posted on a public bulletin board in City Hall. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

When deemed necessary by the purchasing officer, bidder's security may be prescribed in the notices inviting bids. Bidders shall be entitled to return of bid security, provided that the successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of the 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; the amount of the lowest bidder's security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Sealed bids shall be submitted to the purchasing officer in accordance with procedures provided in the notice inviting bids, and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice inviting bids. Unless provided otherwise in the notice inviting bids, 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. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

In its discretion, the Council may reject any and all bids presented and proceed with a new notice of inviting bids. In the alternative, the City Council may authorize negotiations with one or more bidders for purchase of services, supplies and equipment at a price lower than the original bid without making substantial changes in specifications. This provision shall apply to all purchases for supplies, equipment, or services. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

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(a) Except as otherwise provided in this Article XV, Contracts shall be awarded by the City Council to the lowest responsive, responsible qualified bidder.

(b) Determination of Lowest Responsible Bidder. In determining the "lowest responsible bidder," the following factors may be considered in addition to price.

(1) The Bidder’s ability, capacity, and skill to perform the Contract or provide the service required.

(2) The Bidder’s character, integrity, reputation, judgment, experience and efficiency.

(3) The quality of performance of previous Contracts or services for the City or other contracting parties.

(4) The Bidder’s previous and existing compliance with the laws and ordinances relating to a Contract or service.

(5) The sufficiency of the Bidder’s financial resources.

(6) The Bidder’s ability to provide future maintenance and service for the use of the subject of the Contract.

(7) Any other criteria appropriate for the type of Contract to be awarded.

(c) Selection of a Professional Services provider shall be made on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. The City Administrator or City Administrator’s designee may solicit from prospective professional service providers Statements of Qualifications (SOQ) to assure that the professional services are engaged on the basis of demonstrated competence and professional qualifications necessary for the type of services to be performed and at a fair and reasonable price to the City. Prospective professional service providers shall complete fully the SOQ, which when completed, shall be submitted as a declaration under penalty of perjury. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

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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 new notice inviting bids, the Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of bid opening. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

The Council shall have authority to require a performance bond before entering a contract in such amounts as it finds 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. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

All City Departments and agencies shall file detailed estimates of their requirements of supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing officer prescribes. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Alterations, deviations, additions or deletions from the original scope of work for Public Works Projects, which are determined by the City to be necessary during the progress of the work, shall be documented by written change orders.

(a) The City Administrator or designated representative may authorize change orders not to exceed the Estimated Project Construction Budget.

(b) The cost of each change order shall be determined by a fair and reasonable valuation, agreed to in writing by the Public Works Director or his/her designee, and an authorized representative of the contractor, and shall be deducted from the contingency budget. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

In addition to other provisions included in this Article, purchase of supplies, services and equipment in an amount exceeding $5,000 but less than or equal to $25,000 shall be made only by purchase order (including confirming purchase orders when goods are purchased on an emergency basis). Check request forms may be substituted for purchase orders when the purchasing officer considers it necessary. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

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Except in cases of emergency and urgent procurement, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. Any emergency or urgent procurement shall first be approved by the City Administrator or designee. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

The purchasing officer shall require the receiving department to inspect supplies and equipment delivered and contractual services performed to determine their conformance with the specifica- tions set forth in the order or contract. The purchasing officer shall have the authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. No. 482 N.S., 2/87, Ord. 727 N.S., 4/17)

Bidders aggrieved by the purchasing officer's decision may appeal or protest in writing as provided in the notice inviting bids within the time limits in the notice inviting bids or no later than ten (10) working days from date of award, whichever period is shorter. The purchasing officer or his designee shall review the appeal or protest and issue a written determination within ten (10) working days. The written decision from the purchasing officer or his designee shall be final. (Ord. 727 N.S., 4/17)