Redding Municipal Code Ch. 4.20 Purchasing System

In order to establish efficient procedures for the purchase of supplies, services and equipment; secure for the city supplies, services and equipment at the lowest possible cost commensurate with the quality needed; exercise positive financial control over purchases; to clearly define authority for the purchasing function; and to assure the quality of purchasing, a purchasing system is adopted.

(Ord. 2289 § 1 (part), 2001)

There is created a centralized purchasing division in which is vested authority for the purchase of supplies, services and equipment and the sales of personal property.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2583, § 1, 3-6-2018)

There is created the position of purchasing officer, who shall be appointed by the city manager or his/her designee.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2583, § 2, 3-6-2018)

The purchasing officer shall have general supervision of the purchasing division. The duties of the purchasing officer may be combined with those of any other office or position. The purchasing officer shall have authority to do the following:

A. Purchase or contract for supplies, services and equipment required by any city department in accordance with the purchasing procedures prescribed by this chapter; such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing division; and such other rules and regulations as shall be prescribed by the city council or the city manager. All rules and regulations not contained in this chapter shall be as set forth in the purchasing manual adopted by resolution of the city council on May 21, 1957, as amended from time-to-time or as augmented by the purchasing officer consistent with this chapter.

B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment. This may include public work projects estimated to cost less than the force account dollar limit established in Public Contracts Code section 22032.

C. Procure for the city the needed quality in supplies, services and equipment that prove to be the best value to the city. Determination of best value may take into consideration additional elements beyond cost such as warranty, life cycle related costs, lead time, desired aesthetics, work experience as verified through references or work examples, vendor location, prior work with the city or other factors deemed relevant by the purchasing officer in the procurement of the needed supplies, equipment or work to be performed.

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

E. Prepare and recommend to the city manager rules governing the purchase of supplies, services and equipment and the sales of personal property for the city, such rules to be contained in the purchasing manual or other relevant purchasing documentation.

F. Prepare and recommend to the city manager revisions and amendments to the purchasing rules contained in the purchasing manual.

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

H. Prescribe and maintain such forms as are reasonably necessary to carry out the purchasing procedures contained in this chapter.

I. Recommend the transfer of surplus or unused supplies and equipment between departments as needed, and the sale or donation of all supplies and equipment that cannot be used by any department or which have become unsuitable for city use.

J. Maintain a vendor database, vendors' catalog file and records needed for the efficient operation of the purchasing division.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 1, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 3, 3-6-2018; Ord. No. 2625, § 1, 7-21-2020)

The purchasing officer, with approval of the city manager, may authorize in writing any city department or division to purchase or contract for specified supplies, services and equipment independently of the purchasing division, but shall require that the purchases or contracts be made in conformity with the procedures established by this chapter. The purchasing officer may further require periodic reports from the department on the purchases and contracts made under the written authorization.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 2, 9-16-2008)

All departments shall file detailed estimates of their requirements in supplies, services and equipment in the manner, at the time, and for the future periods the purchasing officer shall prescribe.

(Ord. 2289 § 1 (part), 2001)

When awards are to be made by the purchasing officer, all departments shall submit requests for supplies, services and equipment to the purchasing officer utilizing pre-approved electronic or paper formats.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 2, 9-16-2008)

A. Purchase of supplies, services or equipment shall be by bid procedures pursuant to Sections 4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following instances:

1. When an emergency requires that an order be placed with the nearest, or most readily available source of supply;

2. When the commodity can be obtained from only one vendor;

3. When personal services are required of such a nature as not to be customarily subject to bid procedures;

4. When a sole-source procurement is based on standards previously adopted by the city council;

5. When prices have been established by other governmental entities or associations of governmental entities in such a manner as to ensure the best value available to the city; or

6. When, at the determination of the city manager, or his/her designee, for awards up to two hundred thousand dollars, or upon approval by the city council for awards over two hundred thousand dollars, the supplies services or equipment to be purchased do not constitute public works projects and are to be procured under conditions representing best value to the city taking into consideration values other than solely price.

B. An emergency shall be defined as any time an emergency is declared pursuant to Redding Municipal Code Section 4.22.120 or when there is a breakdown in equipment or utility service requiring immediate repair or replacement, wherein the item or items broken down do not fall within the definition of a "public project" as defined in Public Contract Code section 20161, as may be amended from time to time.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 3, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 4, 3-6-2018; Ord. No. 2625, § 2, 7-21-2020)

A. Opening of bids shall be done publicly in the city clerk's office or a city hall conference room at a stated time. The following provisions shall apply:

1. There shall be present at the opening of bids the purchasing officer and either the city clerk or his/her designee.

2. In the event the purchasing officer cannot be present, a designated alternate shall attend the bid opening in his or her stead.

3. The exact time and place of opening of such bids shall be specifically set forth in the advertisement calling for bids, and the general public and bidders shall not be excluded or prevented from hearing the bids announced as each bid is opened.

B. A formal report of the full contents of supplies, equipment, and service bids; and requests for proposals (RFP) exceeding one hundred twenty-five thousand dollars for one-time procurements (or exceeding one hundred twenty-five thousand dollars annually in the case of multiple-year procurement agreements) shall be made and presented to the city council with the recommendation of award. The bid opening procedure set forth in this section is designed to expedite the conduct of official business at regular city council meetings and is an alternative procedure only. Nothing contained in this section shall be deemed to deprive the city council of its right to require that bids for certain projects or contracts be opened only in the presence of the city council.

(Ord. 2350 § 1 (part), 2005; Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 4, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 5, 3-6-2018)

A. Except as stated in this chapter, or if procurement is made pursuant to previously adopted alternative procedures such as Cal Card purchases, request for demand (RFD) or confirming purchase order, no purchases of supplies, services and equipment shall be made without a purchase order or purchasing officer's approval.

B. Requests for an emergency purchase order shall be accompanied by an emergency requisition. The department director requesting the emergency purchase order shall sign the emergency requisition, or communicate by internal memo or email, and shall explain in detail the reasons for the emergency. In the absence of the purchasing officer, the emergency requisition must bear the signature of the city manager or his/her designee. In the case of emergencies arising after working hours when neither the purchasing officer, the city manager nor his/her designee can be contacted, the emergency purchase may be made; provided, however, that the emergency requisition substantiating the purchase shall be filed by the department director within four hours after the start of the next regular work day.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 5, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 6, 3-6-2018; Ord. No. 2625, § 3, 7-21-2020)

Except in cases of emergency, 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. When emergency purchases are requested of items for which no funds have been encumbered, the emergency requisition shall so state and the interested department director shall initiate a request for a fund transfer within four hours after the start of the next regular work day.

(Ord. 2289 § 1 (part), 2001)

A. No contract shall be validly formed unless the following prerequisites are in evidence:

1. All contracts of the city, and amendments thereto, shall be in writing.

2. Except for goods or services procured by the purchasing officer by purchase order, all contracts shall be approved as to form by the city attorney.

3. Except as otherwise delegated in this chapter, all contracts shall be approved by the city council and executed by the mayor. Pursuant to Government Code section 40602, the city council may, on a case by case basis, delegate execution of a contract to any officer of the city. Further, if a contract requires the signature of the mayor and the mayor is physically absent, unwilling or unable to execute a contract authorized by the city council, the contract shall be executed by the vice mayor and, in the absence of the vice mayor, by the mayor pro tempore.

B. Except as otherwise provided in this chapter, purchases and contracts for supplies, services and equipment with an estimated value greater than sixty thousand dollars shall be by written contract with the lowest responsible and responsive bidder pursuant to the procedures prescribed in this section. In the case of service procurements wherein qualitative factors should be considered in the selection of a provider, award may be made utilizing an RFP process in accordance with policies set by the city council or the purchasing officer.

Pursuant to Government Code section 4526, selection of architectural, landscape architectural, engineering, environmental, land surveying or construction project management contractors must be on the basis of demonstrated competence on the professional qualifications necessary for the satisfactory performance of the services required.

C. Except as otherwise provided in this chapter or as determined by the city manager, the sale of personal property with an estimated value greater than sixty thousand dollars shall be made to the highest responsible bidder, pursuant to the procedures prescribed in this section or procedures used with an online or live auction service.

D. Notices inviting bids or requesting proposals shall include a general description of the articles to be purchased or sold or what services are required; state where bid forms and specifications may be secured; and the time and place for opening bids/proposals.

1. For procurement of supplies, services not constituting public work, and equipment with an estimated value greater than two hundred thousand dollars, notices inviting bids shall be published or posted at least ten calendar days before the date of opening of the bids. Notices inviting proposals shall be published or posted on a date agreed upon by both the requestor and purchasing officer in advance of the opening of proposals. Notice shall be published at least once in a newspaper of general circulation printed and published in the city; or, in the alternative, by posted notice on the city's website.

2. The purchasing officer shall also solicit sealed bids or proposals from responsible prospective suppliers.

3. The purchasing officer or the city clerk shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the city hall, or, in the alternative, by posting notice on the city's website.

E. When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within ten calendar days after the notice of award of contract has been mailed or emailed, unless the city is responsible for the delay. The city may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible and responsive bidder. If the city awards the contract to the next lowest 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.

F. Sealed bids and proposals shall be submitted to the city official designated in the notice inviting bids or requesting proposals, and shall be identified as bids or proposals on the envelope. Bids and proposals 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.

G. In its discretion, the city may reject any and all bids or proposals presented and re-advertise for bids or proposals.

H. Contract Award.

1. Purchase orders for the purchase of supplies and equipment greater than sixty thousand dollars and less than or equal to two hundred thousand dollars shall be awarded to the lowest responsible and responsive bidder by the purchasing officer, with additional authorization from the city manager or his/her designee, except as otherwise provided in this chapter.

2. Purchase orders and contracts for services shall be awarded to the service provider providing the best value to the City. The appropriate signatory for the city shall be determined by dollar value as follows:

A. Contracts, excluding purchase orders, having a value of up to sixty thousand dollars per contract year may be made by the director of the department for whom the service is requested.

B. Contracts, excluding purchase orders, having a value greater than sixty thousand dollars and less than or equal to two hundred thousand dollars per contract year may be made by the city manager or his/her designee.

C. Purchase orders having a value greater than seven thousand five hundred dollars and up to and including thirty thousand dollars require signature approval from the requesting division manager or department director and purchasing officer prior to award.

D. Purchase orders having a value greater than thirty thousand dollars and equal to or less than sixty thousand dollars require signature approval from the requesting department director and purchasing officer prior to award.

E. Purchase orders having a value greater than sixty thousand dollars and less than or equal to two hundred thousand dollars require signature approval from the requesting department director, the city manager or his/her designee, and the purchasing officer prior to award.

3. One-time or one-year contracts for the purchase of supplies, equipment or services exceeding two hundred thousand dollars, or multiple-year contracts exceeding two hundred thousand dollars per contract year, shall be awarded by the city council, except as provided in this chapter.

I. If two or more bids received are for the same total amount or unit price, quality and service being equal, the city may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders.

J. The city shall have authority to require a faithful performance, payment, maintenance, or other bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city requires a faithful performance bond, the form and amount of the bond shall be described in the notice inviting bids.

K. The purchasing officer, with additional authorization from the city manager or his/her designee, may reject supplies, equipment and service bids if the bids received are in excess of the budgeted funds available for the purchase, and rebid or commence open-market negotiations to award a purchase order or contract to the vendor that can provide the supplies, equipment or service to the city's satisfaction within budgeted amounts.

L. The city council, or the appropriate city officials as authorized by subsection h of this section, may authorize the execution of a contract for supplies, services or equipment without any previous publication or posting of notice inviting bids or proposals when the city council or the appropriate official finds that any one or more of the following situations exist:

1. When an offer(s) has been received for the subject supplies, services or equipment obtained in accordance with all the provisions of this chapter, including publication or posting of notice, and the city has rejected any and all offers, and has authorized negotiation with one or more bidders or other parties who possess the capability of supplying the required supplies, services or equipment, and the city finds that the proposed contract so negotiated is more favorable to the city than any which could be made in accordance with the bids or proposals heretofore requested.

2. Prior solicitation yielded no bids or proposals.

3. When there is only one available source which can supply the subject matter of the contract.

4. When the contract is for personal services, including peculiar or specialized skill or ability.

5. When an emergency exists which makes it essential to the health, safety or welfare of the people that emergency action be taken.

6. When a sole-source procurement is based on standards previously adopted by the city council.

7. When prices have been established by other governmental entities, or associations of governmental entities, in such a manner as to ensure the best value available to the city.

8. When, at the determination of the city manager for awards up to two hundred thousand dollars, or upon approval by the City Council for awards over two hundred thousand dollars, goods or services are proposed to be procured which do not constitute public works projects.

(Ord. 2350 § 1 (part), 2005; Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 6, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 7, 3-6-2018; Ord. No. 2625, § 4, 7-21-2020)

A. Purchases of supplies, equipment, construction, and contractual services and the sales of personal property in the amount sixty thousand dollars or less in one fiscal year, or sixty thousand dollars or less per contract year in the case of multiple-year awards, shall be considered "informal" and may be made by the Purchasing Officer in the open market without observing the procedures prescribed by section 4.20.120 of this chapter.

1. Informal purchases for supplies, equipment, construction and contractual services shall, wherever possible, be based on at least three quotations and be awarded to the lowest responsible bidder. The purchasing officer, or his/her designee, shall solicit written quotes by requests to prospective vendors by telephone, U.S. mail, electronically or by public notice posted on a public bulletin board in the city hall, or by notice posted on the city's web site. Written quotations shall be submitted to the purchasing division by way of fax, electronically, U.S. mail or in person, and the purchasing officer shall keep a record of all open market orders and quotations for a period of two years after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection.

2. Informal purchases for supplies and equipment shall not require competitive bids if the value is equal to or less than seven thousand five hundred dollars. These purchases may be obtained by use of a city-issued credit card or open blanket purchase order.

3. Informal purchases greater than seven thousand five hundred dollars and up to sixty thousand dollars, wherever possible, shall be based on three or more written, faxed, or electronic quotes and may be obtained directly be the requestor or by the purchasing staff.

(Ord. 2350 § 1 (part), 2005: Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 7, 9-16-2008; Ord. No. 2487, § 2, 10-16-2012; Ord. No. 2583, § 8, 3-6-2018; Ord. No. 2625, § 5, 7-21-2020)

The department director or responsible designee for whom supplies and equipment are purchased or contractual services performed shall inspect the supplies, equipment and work performed to determine their conformance with the specifications set forth in the order or contract. The department director 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.

(Ord. 2289 § 1 (part), 2001; Ord. No. 2487, § 2, 10-16-2012)

A. All city departments shall submit to the purchasing officer, at such times and in such form as he or she shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange them for, or trade them in on, new supplies and equipment.

B. The purchasing officer shall have the authority to dispose of surplus supplies and equipment having an estimated value of three thousand dollars, or less, by whatever method and procedure is deemed to be in the city's best interest including as a donation. Donations shall be limited to Shasta County United Way participating agencies, Shasta County volunteer fire departments, Shasta County public schools, and other Shasta County government agencies and special districts, or other non-profit organization approved by the city manager.

C. Except as otherwise provided by law, any sale of surplus goods shall be made by an auction service or pursuant to Section 4.20.120 or 4.20.130, whichever is applicable, except that surplus supplies and equipment may be sold for fair value without competitive bidding to public agencies and other nonprofit agencies listed in this section 4.20.150. The city has a right to set a minimum dollar amount acceptable for any particular sale of auction item.

(Ord. 2289 § 1 (part), 2001)

(Ord. No. 2419, § 8, 9-1-2008; Ord. No. 2583, § 9, 3-6-2018; Ord. No. 2625, § 6, 7-21-2020)

A. If any department purchases or contracts for any supplies, materials, equipment or contractual services contrary to the provisions of this chapter, the purchase or contract shall be void and of no effect. The director of the department making the purchase transaction shall be personally liable for the amount of the purchase or contract, and, if already paid for out of city funds, the amount thereof may be recovered in the name of the city in appropriate action therefor.

B. It is unlawful for any employee to split the requirements for supplies, materials, equipment and contractual services in order to evade the provisions of Sections 4.20.120 and 4.20.130 of this chapter.

(Ord. 2350 § 1 (part), 2005; Ord. 2289 § 1 (part), 2001)

(Ord. No. 2625, § 7, 7-21-2020)

Editor's note— Ord. No. 2487, § 1, adopted Oct. 16, 2012, repealed § 4.20.170, which pertained to special procurement process and derived from Ord. No. 2422, § 1, adopted Oct. 21, 2008.

A. Local Business Defined. For purposes of this section, a "local business" means a business enterprise including but not limited to, a sole proprietor, partnership, or corporation which has the following:

1. A valid business license issued from the City of Redding; and

2. Has a place of business with a physical address located within the jurisdictional limits of the City of Redding and retains at least one full time equivalent employee at that location.

B. Where competitive bidding is utilized for the purchase of taxable goods pursuant to Sections 4.20.120A. and 4.20.130A., and the lowest responsible bidder is not a local business, the Purchasing Officer shall provide the lowest responsible local business bidder, should one exist and its bid is within five percent of the lowest responsible bidder, with notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.

C. Upon notice being provided pursuant to Section 4.20.180 B., the local business shall have two full business days to provide written notice to the purchasing officer of its desire to match the lowest bid. In the event the local business elects to match, the contract will be awarded to the local business. In the event, the local business provided the opportunity to match does not opt to match the lowest responsible bid, the award of the contract shall be given to the lowest responsible bidder.

D. In instances where a local business and a non-local business submit equivalent lowest, responsible bids, the Purchasing Officer shall give preference to the local business.

E. All notices required under this section may be made orally, in writing or electronically.

F. Local preference shall not apply to any procurement of public work or where prohibited by grant funding or other specific directive.

(Ord. No. 2452, § 1, 3-2-2010; Ord. No. 2487, § 3, 10-16-2012; Ord. No. 2625, § 8, 7-21-2020)

The purchasing officer shall adhere to the procurement policies and procedures that apply to the Redding Area Bus Authority as adopted by the Board of Directors and approved by the parent agency, i.e., the Federal Transit Administration.

(Ord. No. 2625, § 9, 7-21-2020)

Procurement under emergency declaration shall be pursuant to Redding Municipal Section 4.22.120.

(Ord. No. 2625, § 10, 7-21-2020)