Rancho Palos Verdes Municipal Code Ch. 2.44 Purchasing Ordinance

It shall be the policy of the city to secure services, supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and to assure the quality of purchases.

(Code 1981, § 2.44.010; Ord. No. 618, § 3, 3-5-2019)

A. The procedures set forth in this chapter shall not apply to contracts for "public projects," as that term is defined in California Public Contract Code § 22002 or any successor statute, which are governed by the procedures set forth in chapter 2.42 (Public Projects).

B. Approval and execution of contracts for supplies, equipment, and services are subject to the provisions of chapter 2.14 (Approval and Execution of Contracts).

(Code 1981, § 2.44.020; Ord. No. 618, § 3, 3-5-2019)

Unless the context otherwise requires, the definitions in chapter 2.14 (Approval and Execution of Contracts) shall govern the construction of this chapter.

(Code 1981, § 2.44.030; Ord. No. 618, § 3, 3-5-2019)

The authority and responsibility for the purchase of services, supplies, and equipment for the city shall be vested in the purchasing agent, subject to the contract approval provisions of chapter 2.14 (Approval and Execution of Contracts). The purchasing agent shall purchase services, supplies and equipment in accordance with the procedures prescribed in this chapter.

(Code 1981, § 2.44.040; Ord. No. 618, § 3, 3-5-2019)

A. Purchases of services, supplies, or equipment with an aggregate value of $3,000.00 or less per fiscal year per vendor or service provider shall not require a written contract and shall be procured on the basis of the combination of price and quality that best serves the city's needs.

B. Purchases of services, supplies, or equipment in excess of $3,000.00 but less than or equal to $25,000.00 shall be made as follows:

1. The purchasing agent shall obtain between one and three informal quotes or proposals, at their discretion. Informal quotes or proposals may be obtained in writing or orally by telephone.

2. Contracts for the purchase of supplies and equipment shall be awarded to the lowest responsible and responsive vendor, provided the quality of the supplies or equipment meets the city's requirements. The purchasing agent may reject any and all quotes, waive any irregularity in any quote, or re-solicit quotes.

3. Contracts for services shall be awarded to the service provider who offers the city, as determined by the purchasing agent in their sole discretion, the best combination of price and quality.

4. If a vendor or service provider provides a quote orally, the purchasing agent shall maintain written notes or documentation confirming the receipt and content of such oral quote and shall require the vendor or service provider to provide an electronic transmission, or other written documentation, confirming the substance of the oral quote. Copies of all written quotes received together with the purchase agent's written documentation, or the purchasing agent's notes confirming oral quotes and the confirming documentation provided by the vendor or service provider, shall be public records to be retained for not less than two years after receipt. Notwithstanding the foregoing, vendor proprietary data shall not be open for public inspection.

C. Supplies, equipment, and services, of an estimated value greater than $25,000.00.

1. Purchases of supplies and equipment, and provision of services, of an estimated value greater than $25,000.00 shall be procured pursuant to quotes or proposals. The city council shall award the contract to the vendor or service provider who offers the best combination of price and quality, as determined by the city council in its sole discretion.

2. On refusal or failure of the successful vendor or service provider to execute the contract, the city council may award the contract to another vendor or service provider in conformance with subsection (C)(1) of this section.

3. The city council may reject any and all quotes or proposals, waive any irregularity in any quote or proposal, or re-advertise for quotes or proposals.

4. If two or more quotes received for supplies and equipment are for the same total amount or unit price, the council may accept the quote it considers best meets the needs of the city.

(Code 1981, § 2.44.050; Ord. No. 618, § 3, 3-5-2019)

The purchasing agent may purchase services, supplies and equipment for which the city would normally follow its own bid procedures from a vendor awarded a bid by another public agency if said agency utilized procedures substantially the same as those normally utilized by the city. The amount of said purchase shall be based on the price bid in the other jurisdiction.

(Code 1981, § 2.44.060; Ord. No. 618, § 3, 3-5-2019)

The procurement procedures of section 2.44.050 (Procurement procedures for services, supplies, and equipment) shall not apply to the purchase of services, supplies, and equipment under any of the following circumstances:

A. The procurement of specific professional services such as contracts with attorneys, architects, engineers, auditors, financial advisors, technology professionals, geotechnical engineers, surveyors, geologists, or any other similar licensed professional, or when the services contracted for deal with election services, public relations and related activities; negotiations for or acquisition of land; insurance; bonds; or other services of a similar nature.

B. The purchasing agent finds that such services, supplies, or equipment are unique because of the quality, durability, availability, or fitness for a particular use and are available from only one source.

C. The purchasing agent finds that exigent circumstances, such as natural disasters or other unforeseen circumstances, require the immediate purchase of such services, supplies, or equipment. The purchasing agent shall record the exigent circumstances on the purchase order and shall report the purchase to the city council at the first available general meeting of the city council.

D. The city council finds that due to the nature of the services, supplies, or equipment, bidding is not likely to result in the lowest price or greatest benefit to the city.

(Code 1981, § 2.44.070; Ord. No. 618, § 3, 3-5-2019)

Emergency purchases required due to natural disasters or other unforeseen circumstances may be made by the purchasing agent if so noted on the purchase order form. Any such purchase shall be reported to the city council at the earliest opportunity, including supporting documentation to demonstrate the emergency and to provide a detailed accounting.

(Code 1981, § 2.44.080; Ord. No. 618, § 3, 3-5-2019)

A. All invoices shall be submitted directly to the finance department by the supplier of the equipment, supplies or services. Each invoice shall be approved by the department head or their designee and director of finance for payment.

B. Payment disputes will be resolved by the director of finance.

(Code 1981, § 2.44.090; Ord. No. 618, § 3, 3-5-2019)

Purchases made by city-issued credit cards shall not include services provided to the city and shall conform to the written policy established by the purchasing agent. The customer's copy of the invoice shall be delivered to the director of finance for approval for payment.

(Code 1981, § 2.44.100; Ord. No. 618, § 3, 3-5-2019)

Expenses incurred during attendance at conferences, or other activities in the interests of the city that require an overnight stay may be paid by:

A. A credit card with all invoices returned to the director of finance.

B. Obtaining a warrant from the director of finance in the amount of the advanced estimation of expense approved by the director of finance. Reconciliation shall be made within 30 days of returning to the city.

C. Submission for reimbursement of appropriate expense invoices within 30 days after returning to the city.

(Code 1981, § 2.44.110; Ord. No. 618, § 3, 3-5-2019)

There is established a petty cash fund in the maximum amount of $5,000.00 that is administered under the supervision of the director of finance, which shall be used to make change by city cashiers, and from which cash disbursements may be made to city employees in an amount not to exceed $100.00. Disbursements must be accompanied by an invoice in the amount of the request, signed by the originator and approved by the department head or designee. An invoice is not required for auto mileage reimbursement, metered parking and any other requirement for which an invoice cannot be expected.

(Code 1981, § 2.44.120; Ord. No. 618, § 3, 3-5-2019)

The purchasing agent shall sell worn-out, scrap, or obsolete personal property, or exchange the same for, or trade in the same on new supplies and equipment, including property of all departments, by soliciting bids. No bids will be accepted from city employees or contractors. If the value of the property to be sold is of a value of $3,000.00 or less, the sale shall be approved by the city manager. In the event the value of the property to be sold is more than $3,000.00, the sale shall be subject to the approval of the city council.

(Code 1981, § 2.44.130; Ord. No. 618, § 3, 3-5-2019)