Pismo Beach Municipal Code Ch. 3.08 Purchasing

A purchasing system is adopted in order to establish efficient procedures for the purchase of supplies and equipment, to secure supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and to define authority for the purchasing function. (Prior code § 3.04.010)

There is created a centralized purchasing division which has authority for the purchase of supplies and equipment. (Prior code § 3.04.020)

There is created the position of purchasing officer. The purchasing officer shall be the city manager and/or designee. The purchasing officer has general supervision of the purchasing division. The duties of purchasing officer may be combined with those of any other office or position. The purchasing officer shall:

A. Purchase and contract for supplies and equipment required by the city in accordance with purchasing procedures;

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

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

D. Discourage uniform bidding and obtain as full and open competition as possible on all purchases;

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

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

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

H. Supervise the inspection of all supplies and equipment purchased to insure conformance with specifications;

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

J. Maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of purchasing division. (Ord. O-2025-002 § 10, 2025; Ord. O-2012-005 § 1, 2012; Prior code § 3.04.030)

The purchasing officer, with the approval of the council, may authorize in writing each department to purchase specified supplies and equipment independently of the purchasing division. However, the purchasing officer shall require that such purchases be made in conformity with the established procedures and shall require periodic reports from the department on the purchase made under this written authorization. (Prior code § 3.04.040)

Each department shall file detailed estimates of its requirements in supplies and equipment in such manner, at such time, and for such future periods as the purchasing officer prescribes. (Prior code § 3.04.050)

Each department shall submit requests for supplies and equipment to the purchasing officer either by standard requisition forms or by other means established by the purchasing rules and regulations. (Prior code § 3.04.060)

Each purchase of supplies and equipment shall be by bid procedures as set forth in Sections 3.08.100 and 3.08.110. The purchasing officer may dispense with bidding only when:

A. An emergency declared by an appropriate authority as described in Chapter 2.32, Emergency Services of this title, requires that an order be placed with the most expeditious source of supply of equipment, goods or services, taking into account timeliness of delivery and price;

B. When the amount involved is less than a specific cost threshold defined in the city's purchasing policies as amended from time to time; or

C. The commodity can be obtained from only one vendor.

D. When a piggyback contract is available under which:

1. Competitive bid procedures have already been utilized, such as in purchasing from the federal, California State or county governments, including state of California and agencies of counties, cities and special districts in the state of California, and

2. The supplies, equipment or services are supplied to the city under the piggyback contract at the same or better price, as was obtained by the vendor, through the federal, state of California agencies and the agencies of counties, cities and special districts in the state of California using the competitive bid procedures.

3. As used in this subsection, "piggyback contract" means a contract entered into by means of placing a purchase order against an existing contract of another public agency.

E. When cooperative purchasing is available. As used in this subsection, "cooperative purchasing" means purchasing that consists of combining the needs of multiple customers and/or other governmental agencies into a single solicitation of bids. (Ord. O-2025-002 § 11, 2025; Ord. O-2019-001 § 1, 2019; Ord. O-2012-005 § 2, 2012; Ord. 06-10 § 1, 2006; prior code § 3.04.070)

A purchase of supplies and equipment may be made only by purchase order, except for purchases of less than a specific cost threshold defined in the city's purchasing policies as amended from time to time. A purchase order may not be issued until the purchasing officer first approves it. (Ord. O-2025-002, § 12, 2025; Prior code § 3.04.080)

Except in case of an emergency or where specific authority is first obtained from the city manager, the purchasing officer may not issue a purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. (Prior code § 3.04.090)

Except as provided in Section 3.08.070 or 3.08.115 of this chapter, the purchase of supplies and equipment of an estimated value greater than a specific cost threshold defined in the city's purchasing policies as amended from time to time shall be by written contract with the lowest responsible bidder after following this procedure:

A. Notice Inviting Bids. The purchasing officer shall prepare a notice inviting bids. The notice shall include a general description of the article to be purchased, shall state where bid blanks and specifications may be secured, the time and place for opening bids and the security required, if any.

1. Published Notice. The notice inviting bids shall be published and/or posted at times and locations to be determined by the purchasing officer, in a manner meeting or exceeding minimum requirements under law.

2. Bidders' List. The purchasing officer shall also solicit sealed bids from responsible prospective suppliers, whose names are on the bidders' list or who have made written requests that their names be added to it.

B. Bidder's Security. When the purchasing officer considers it necessary, the purchasing officer shall prescribe bidder's security and a statement of the security shall be included in the notice of inviting bids. Each bidder is entitled to a return of the bid security. However, a successful bidder forfeits its bid security if the bidder refuses or fails to execute the contract within ten (10) days after the notice of award of contract is mailed. If the successful bidder fails or refuses to execute the contract, the council may award it to the next lowest responsible bidder or readvertise. If the council awards the contract to the next lowest bidder, the city shall apply the amount of the lowest bidder's security to the contract price difference between the lowest bid and the second lowest bid. The surplus, if any, shall be returned to the lowest bidder. If the council rejects all bids and readvertises, the amount of the lowest bidder's security may be used to offset the cost of receiving new bids and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedures. The purchasing officer shall determine the manner of bid submittal and the manner of bid opening, with said information provided in the public bid notice. The purchasing officer shall tabulate the bids received and shall keep the tabulation open for public inspection during regular business hours for as long as the records are retained in accordance with the city's records retention policies.

D. Rejection of Bids. In its discretion, the council may reject all bids presented and readvertise for bids.

E. Award of Contracts. The council shall award the contract to the lowest responsible bidder.

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 council may accept the one it chooses or accept the lowest bid made after negotiation with the tie bidders at the time of the bid opening.

G. Performance Bonds. The council may require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the city. (Ord. O-2025-002 § 13, 2025; Ord. O-2019-001 § 2, 2019; Ord. O-2012-005 § 3, 2012; Ord. 06-10 § 2, 2006; prior code § 3.04.100)

If the estimated value of the purchase of supplies or equipment is less than a specific cost threshold defined in the city's purchasing policies as amended from time to time, the purchasing officer may dispense with bidding procedure. If the estimated value of the purchase is above said threshold but below the threshold requiring city council approval, the purchasing officer shall make the purchase in the open market under the following procedure:

A. Minimum Number of Bids. The purchasing officer shall obtain at least three (3) bids and shall make the purchase from the lowest responsible bidder.

B. Notice Inviting Bids. The purchasing officer shall solicit bids by public notice published and/or posted at times and locations to be determined by the purchasing officer, in a manner meeting or exceeding minimum requirements under law, as well as any other means of solicitation deemed appropriate.

C. Written Bids. The purchasing officer shall determine the manner of bid submittal and the manner of bid opening, with said information provided in the public bid notice. The purchasing officer shall tabulate the bids received and shall keep the tabulation open for public inspection during regular business hours for as long as the records are retained in accordance with the city's records retention policies. (Ord. O-2025-002 § 14, 2025; Ord. O- 2019-001 § 3, 2019; Ord. O-2012-005 § 4, 2012; Prior code § 3.04.110)

Notwithstanding anything to the contrary in this chapter, in the event of an emergency declared by an appropriate authority as described in Chapter 2.32, Emergency Services of this Code, the city manager/director of emergency services is authorized to approve without solicitation of bids purchases, leases, or other contracts for goods or services up to a value defined in the city's purchasing policies as amended from time to time. (Ord. O-2025-002 § 15, 2025; Ord. 06-10 § 3, 2006)

The purchasing officer shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Prior code § 3.04.120)

All departments shall submit to the purchasing officer, at such times and in such forms as he prescribes, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer may exchange or trade in on new supplies and equipment all supplies and equipment which cannot be used by an agency or which have become unsuitable for city use. (Prior code § 3.04.130)

A. Informal Bid Procedures. A public works construction project, as defined in Section 20161 of the Public Contract Code may be performed by contract acquired by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code.

B. Contractors List. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission. Such list will be maintained by the public works director or designee.

C. Notice Inviting Bids. When a public works construction project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be published and/or posted at times and locations to be determined by the purchasing officer, in a manner meeting or exceeding minimum requirements under law, and in a manner that guarantees transmittal to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection B. of this section, and to all construction trade journals as specified by the California Uniform Public Construction Cost Accounting Commission in accordance with Section 22036 of the California Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the public works director; provided however:

1. If there is no list of qualified contractors maintained by the purchasing officer 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 commission.

2. If the producer 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.

D. Award of Contract. Award of contract to the successful responsive, responsible low bidder will be executed in accordance with the purchasing policy, as described in Section 3.08.010. (Ord. O-2025-002 § 16, 2025; Ord. O- 2012-003 § 1, 2012)

This section, regarding violations and penalties for this chapter, was repealed by Ord. O-2025-002, § 17, 2025. (Prior code § 3.04.140)