Reedley Municipal Code Ch. 9 Municipal Finances

Every demand against the city, except for payroll, payroll benefits and debt service, must be itemized, specifying the goods furnished, the services performed or other basis of the claim, giving the date and the amount of each item, and by whom ordered, or a purchase order number. Every demand must be filed with the director of finance, who shall review and process the demand in accordance with this chapter and applicable provisions of Section 1-7-4 and city procedures. (Ord. 717, 3-21-1989; amd. Ord. 2020-001, 1-12-2021)

The city manager and director of finance shall prescribe the process in which demands against the city are reviewed, approved, and allowed, subject to procedures and restrictions set forth in this chapter or otherwise established by the city council. (Ord. 717, 3-21-1989; amd. Ord. 2020-001, 1-12-2021)

All demands when reviewed, approved, and allowed, and all salaries, shall be paid by a check or electronic funds transfer drawn on the city treasury or authorized custodian account. Personnel authorized to sign checks or authorize electronic funds transfers shall be established by resolution. Facsimile signatures on checks are allowed, provided that the register of warrants identifying each check is manually signed, in advance, by those authorized to sign checks. Custody and control of the signature stamp is the responsibility of the director of finance. In addition, checks for any purpose other than payroll shall require the manual signature of at least one authorized city official. (Ord. 2013-002, 5-14-2013; amd. Ord. 2020-001, 1-12-2021)

Claims against the city for money or damages which are excepted by Government Code section 905 from chapter 1 (commencing with section 900) and chapter 2 (commencing with section 910) of part 3 of division 3.6 of title 1, and which are not governed by any other statutes or regulations expressly relating thereto, shall be presented within the time limitations and in the manner prescribed by Government Code sections 910 through 915.2, and shall be subject to the provisions of Government Code sections 945 through 946, relating to the prohibition of suits in the absence of the presentation of a claim to and action thereon by the city council. (Ord. 94-002, 2-8-1994)

ARTICLE B. PURCHASING

SECTION:

This purchasing system is adopted for the purposes of: establishing efficient and uniform procedures for the purchase of supplies and equipment; securing supplies and equipment for the city at the lowest possible cost commensurate with quality and quantity needed and the availability of the item(s); exercising positive financial control over purchasing; and clearly defining the authority for the purchasing function to assure the quality of purchases. (Ord. 2015-009, 10-27-2015)

City departments shall submit requests for supplies, equipment, and vehicles to the purchasing officer by standard requisition forms. (Ord. 2015-009, 10-27-2015)

Except as provided in section 1-9B-6, "Bidding Exceptions", of this article, the following approval levels shall apply to purchases of supplies, equipment, and vehicles, provided that such expenditures are within the budget limitations:

A. Single purchases in excess of seventy five thousand dollars ($75,000.00) shall be authorized by the city council and shall be made pursuant to the formal bid procedure set forth in section 1-9B-5 of this article, unless expressly waived by the city council.

B. Single purchases in excess of fifty thousand dollars ($50,000.00) up to seventy five thousand dollars ($75,000.00) shall be authorized by the city manager and shall be made pursuant to the formal bid procedure set forth in section 1-9B-5 of this article, unless expressly waived by the city council.

C. Any purchase of more than ten thousand dollars ($10,000.00) up to fifty thousand dollars ($50,000.00) shall require at least three (3) written quotations and shall be approved by the city manager or designee. However, if there are fewer than three (3) available vendors, the city manager or designee may authorize a purchase with fewer than three (3) quotations.

D. The city manager or designee is authorized to make any purchase not exceeding ten thousand dollars ($10,000.00) in the open market with or without solicitation of multiple quotations.

E. Separate purchases of components of equipment, or phasing of projects, solely to avoid the provisions of this section shall not be permitted. (Ord. 2015-009, 10-27-2015)

Purchases of supplies, equipment, and vehicles are to be made by purchase order whenever possible; provided, however, that purchases made by credit card, merchant account, or petty cash are permissible if appropriate authorization is obtained. (Ord. 2015-009, 10-27-2015)

Except to the extent permitted by law, or as otherwise provided in section 1-9B-6, "Bidding Exceptions", of this article, purchases and contracts for supplies, equipment, and vehicles of estimated value greater than fifty thousand dollars ($50,000.00) shall be by written contract with the lowest responsible bidder, pursuant to the procedure prescribed herein.

A. Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be obtained, and the time and place for submitting bids and the opening of bids.

1. Notices: Notices inviting bids may be published in a newspaper of general circulation, or trade journal.

2. Bidder Solicitation: The purchasing officer may solicit sealed bids from responsible prospective suppliers.

3. City Website: The purchasing officer shall also advertise pending purchases by a notice posted on the city's public website.

B. Rejection Of Bids: In his or her discretion, the city manager or designee may reject any and all bids presented and readvertise for bids.

C. Award Of Contracts: Pursuant to section 1-9B-3 of this article, contracts shall be awarded by the city council or city manager to the lowest responsible bidder, except as otherwise provided in subsection D of this section.

D. Bidder's Failure To Execute Contract: If the successful bidder fails or refuses to execute the contract, the city manager or designee is authorized to award the contract to the next lowest responsible bidder.

E. Tie Bids: If two (2) 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 manager or designee may accept whichever one he or she chooses, and may accept the lowest bid made after negotiation with the tie bidders at the bid opening.

F. Performance Bonds: The city manager or designee shall have authority to require a performance bond or other appropriate security before entering a contract in such amount as determined to be reasonably necessary to protect the best interest of the city. If a performance bond or other security is required, the form and amount of the bond or security shall be described in the notice inviting bids. (Ord. 2015-009, 10-27-2015)

A. Emergency Purchases: Purchases of an emergency nature may be made as the need arises, and such purchases shall be exempt from the requirements of this article; provided, however, such emergency purchases shall be authorized by the city manager or designee.

B. Sole Source: Bidding shall be dispensed when the item(s) can be obtained from only one vendor; provided, however, such sole source purchases are authorized by the city manager or designee.

C. Cooperative Purchasing: The city manager or designee shall have the authority, to the extent permitted by law, to join with other units of government or other governmental agencies or authorities in cooperative purchasing when beneficial to the city. Bidding may be dispensed when the supplies, equipment or vehicles can be acquired under a valid purchasing contract that has been previously bid by the city or other governmental agency.

D. Other Considerations: The city manager shall have the authority to dispense with bidding if it can be shown that a project, usually complex in nature, in which the design, installation or support of equipment and systems from a vendor is of higher significance than the component costs of supplies or equipment purchased as part of the overall project. (Ord. 2015-009, 10-27-2015)

The purchasing officer or designee shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The purchasing officer or designee 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. 2015-009, 10-27-2015)

The use of vendors who have a fixed business location within the city limits provides certain benefits to the city and its citizens, including, without limitation, the following:

A. Receipt of sales tax revenue from sales made within the city limits;

B. Cost savings resulting from local maintenance, repair, pick up and delivery; and

C. Use of the local labor force.

Therefore, except in public works projects or other projects where the city is required to award a bid or contract to the lowest bidder, and notwithstanding anything to the contrary in this article, the city may allow the following preferences to vendors having a fixed business location within the city limits. In instances where a local vendor and a nonlocal vendor submit equivalent lowest responsible bids, the city shall give preference to the local vendor having a fixed business location and a valid business license within the city limits. If the city receives two (2) or more bids/quotations with all factors being equal except price, an allowance adjustment of up to five percent (5%) of the quoted price may be afforded to the local vendor having a fixed business location and a valid business license within the city limits and such local vendor may be determined the lowest bidder and the city may award the contract to such local vendor. (Ord. 2015-009, 10-27-2015)

If any section, subsection, phrase, provision, or clause of this article is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this article. The city council hereby declares that it would have adopted this article and each section, subsection, phrase, provision, or clause hereof irrespective of the fact that any one or more sections, subsections, phrases, provisions, or clauses be declared invalid. (Ord. 2015-009, 10-27-2015)