Rosemead Municipal Code Ch. 3.24 Purchasing System for Non-Public Works Contracts

Footnotes:

--- (1) ---

Editor's note— Ord. No. 1025, § 3(Exh. A), adopted Jan. 14, 2025, amended Chapter 3.24 in its entirety to read as herein set out. Former Chapter 3.24, §§ 3.24.010—3.24.120, pertained to similar subject matter, and derived from prior code; Ord. 864 adopted in 2008; Ord. No. 920, adopted October 11, 2011; and Ord. No. 964, adopted September 13, 2016; Ord. No. 988, § 3(Exh. A), adopted June 25, 2019; and Ord. No. 990, § 3 (Exh. A), adopted Dec. 10, 2019.

Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:

"Authorized Contracting Party" means the City official or body provided with authority under this chapter to approve a contract or to make a purchase.

"City Manager" means the City Manager or person designated by the City Manager to act on behalf of the City Manager.

"Formal Competitive Purchasing Procedure" means a procedure which meets the requirements of state and local law, including this chapter and any policies and procedures approved by the City Manager consistent with this chapter.

"Local Area Veteran Vendor" means a veteran vendor, as defined herein, who is a contractor, or consultant that has a valid physical business address located within the boundaries of the City of Rosemead or within any of the cities that directly border the City which include, Alhambra, Montebello, Monterey Park, San Gabriel, Temple City, El Monte and South El Monte, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license issued by the City of Rosemead or one of cities listed above, and designates, for sales tax purposes, the City of Rosemead or one of the cities listed above, as the point of sale for retail transactions within the City. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address.

"Negotiated Contract" means a letter of agreement, vendor agreement, contract, professional services agreement, maintenance services/public works projects agreement or written documentation which details terms and conditions of the purchase.

"Professional Services" means all services performed by persons in a professional occupation, including, but not limited to, consulting and performance services for accounting, auditing, computer hardware and software support, engineering, architectural, planning, redevelopment, financial, economic, personnel, social services, animal control, legal, management, environmental, cable television, communication and other similar professional functions which may be necessary for the operation of the City.

"Rosemead Vendor" means a local business enterprise whose business address at the point of sale is located within the geographical boundaries of the City and who maintains a valid license or permit to do business in the City.

"Solicitation" means the City's process to obtain bids, quotes, or proposals as provided in Chapter 3.24 for the purchase of goods or services.

"Veteran Vendor" means a person who served in the active military, naval, or air service and who was discharged or released under conditions other than dishonorable as verified by a Form DD214 or other acceptable proof of service, who owns a business where at least fifty (50) percent of the company is owned by a veteran.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

There is established in the office of the City Manager the role of a Purchasing Officer. The Purchasing Officer shall be the City Manager or his or her designee(s). If the City Manager designates one or more persons to act in this role, the Purchasing Officer(s) shall serve at the pleasure of the City Manager. The duties of the Purchasing Officer may be combined with those of any other officer(s) or position(s).

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

The Purchasing Officer, in accordance with the policies set forth in this chapter and in any written procedures approved by the City Manager that are consistent with this chapter, shall have the power to:

A. Purchase or contract for supplies, services and equipment required by the City;

B. Negotiate and recommend to the City Council execution of contracts for the purchase of supplies, services and equipment;

C. Prepare and implement policies and procedures governing the bidding, contracting, purchasing, storing, distribution and disposal of supplies, services and equipment for the City;

D. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapter;

E. Review the working details, drawings, plans and specifications for any projects or purchases requiring such review in this chapter;

F. Inspect or supervise the inspection of purchased supplies, services and equipment to ensure conformity with any specifications established or required by the City;

G. Transfer among departments any supplies, services and equipment not needed by one such department, but which are necessary for the operation of one or more other departments;

H. Sell any supplies and equipment not needed for public use or that may become unsuitable for their intended use;

I. Develop and maintain any bidder's list, service provider's list or vendor's catalog file necessary to the operation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapter.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. The City shall secure supplies, services and equipment at the lowest total cost commensurate with the quality and scope needed, and subject to any limitations imposed by state law. Notwithstanding the foregoing, professional services including but not limited to, legal services, architectural, design, engineering services, financial services, IT services, consulting services, or other services of a nature characterized by the necessity for specialized knowledge, expertise, or qualifications, shall be acquired based on proven competency, professional credentials or certificates, and project and scope of work appropriateness. While cost may be a relevant consideration for professional services, it shall not be the primary determinant unless specified by the authorized contracting party.

In order to promote the economic health and development of the City, to recognize the amount of sales tax that is returned to the City as a result of the award of a purchase contract for supplies and equipment to a Rosemead vendor, to encourage local participation in the procurement process, and to exercise the prudent use of public funds, the City Council may, by minute action, award a bid to a Rosemead vendor provided the local bid does not exceed the lowest bid by more than five percent or ten thousand dollars ($10,000.00), whichever is less.

B. The Purchasing Officer shall develop, for approval by the City Manager, such policies and procedures as are necessary to implement the provisions of this chapter. The policies and procedures shall be written and implemented in such a way to encourage open and competitive bidding, provide equal opportunity based on merit, make each selection process free of invidious discrimination, provide for efficient and timely acquisition of needed supplies, services and equipment, and provide effective fiscal controls.

C. In purchasing, supplies, services, and equipment, the City shall make use of competitive bidding, either direct, formal or informal, whenever required by law, this chapter, or any policies and procedures approved by the City Manager consistent with this chapter, while ensuring the quality of supplies, services, and equipment meets the required standards.

D. Direct, formal or informal competitive bidding is not required if there is an alternative procedure set forth in this chapter.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. Five Thousand Dollars ($5,000.00) or Less. Any purchase of five thousand dollars ($5,000.00) or less may be awarded by the director of the department responsible for the project with no quotations required.

B. Five Thousand Dollars and One Cent ($5,000.01) to Fifteen Thousand Dollars ($15,000.00). Any purchase of more than five thousand dollars ($5,000.00) and not greater than fifteen thousand dollars ($15,000.00) may be awarded by the Department Director by any informal purchasing procedure as defined herein.

C. Fifteen Thousand Dollars and One Cent ($15,000.01) to Fifty Thousand Dollars ($50,000.00). Any purchase of more than fifteen thousand dollars ($15,000.00) and not greater than fifty thousand dollars ($50,000.00) may be awarded by the City Manager by any informal purchasing procedure as defined herein.

D. Fifty Thousand Dollars and One Cent ($50,000.01) or More. Any purchase of more than fifty thousand dollars ($50,000.00) shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the formal competitive purchasing procedure set forth below.

E. Purchasing Officer Approval. The Purchasing Officer, or his or her designee, shall review and approve all contracts of fifteen thousand dollars and one cent ($15,000.01) or more before the contract is effective.

F. Five-Year Term Limitation. No agreement or contract shall extend for a period of more than five years, including any authorized extensions.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. This informal purchasing procedure shall be used for purchases between five thousand dollars and one cent ($5,000.01) and fifty thousand dollars ($50,000.00).

B. Service Provider/Vendor List. The department shall maintain a list of qualified service providers or vendors.

C. Distribution of Notice Inviting Informal Bids. At least three vendors or service providers shall be asked to submit informal bids, and the City shall endeavor to receive informal bids from at least three vendors or service providers. Notices inviting informal bids shall be sent to the list of qualified service providers, vendors, and/or trade journals not less than ten days before bids are due.

D. Contents of Notice Inviting Informal Bids. When soliciting informal bids, staff shall:

1. Describe to the vendor in general terms the project, service or item;

2. Advise vendors how to obtain additional information about the project;

3. State the date, time and manner for the submission of bids; and

4. Include any other information required by state or local law, as determined by the City Attorney.

E. Proprietary Projects or Products. If the director of the using department certifies that, to the best of his or her knowledge, the product or service is proprietary in nature and can be obtained only from a limited number of service providers or vendors, and that no equivalent products or services are available, the notice inviting informal bids may be sent exclusively to such vendor(s) or service provider(s).

F. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney.

G. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.

H. Bid Submittal. Service providers or vendors shall submit their bids in writing.

I. No Bids Received. If no bids are received, the authorized contracting party may award the contract by any alternative purchasing procedure.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. Use of Formal Competitive Purchasing Procedure. This formal purchasing procedure shall be used for purchases greater than fifty thousand dollars ($50,000.00) or whenever formal competitive purchasing is otherwise required by this chapter.

B. Required Process. The formal competitive purchasing procedure shall comply with all aspects of state and local law governing formal competitive bidding, including, but not limited to, the Public Contract Code, Government Code, Labor Code, resolutions of the City Council as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to time.

C. Distribution of Notice Inviting Formal Bids. The notice inviting formal bids shall substantially comply with procedures set forth in Section 3.24.070.

D. Contents of Notice Inviting Formal Bids. At a minimum, the notice inviting formal bids shall:

1. Describe the project in general terms;

2. State how to obtain more detailed information about the project;

3. State the date, time and place for the submission of sealed bids; and

4. Include any other information required by state or local law, as determined by the City Attorney.

E. Contents of Remaining Bid and Contract Documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney.

F. City's Authority. The City may reject any or all bids received, and may waive any minor irregularities in each bid received.

G. Bid Submittal. Service providers or vendors shall submit their bids in writing.

H. No Bids Received. If no bids are received, the authorized contracting party may award the contract by any alternative purchasing procedure.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

For situations provided in this section, an alternative purchasing procedure which results in a negotiated contract, force account, purchase order or any other procedure determined by the authorized contracting party to be in the best interests of the City and in compliance with the City's policies and procedures may be used.

A. Emergencies. For situations determined by the City Manager to constitute an emergency, the City may use the emergency procedures set forth in Section 3.28.040.

B. Professional Services. When purchasing professional services.

C. Computers. When purchasing computer software, hardware maintenance services or software maintenance services.

D. Competitive Bidding Already Completed. When the authorized contracting party determines that a competitive bid procedure has been conducted by another public agency (e.g. through CMAS or GSA) and the price to the City is equal to or better than the price to that public agency.

E. State Purchase. When the purchase is made on behalf of the City by the State Department of General Services.

F. No Bids Received. When no bids are received pursuant to either the informal competitive purchasing procedure or the formal competitive purchasing procedure.

G. No Competitive Market. When the authorized contracting party determines that a competitive market does not exist, such as, but not limited to, with memberships in certain professional organizations, meetings, conventions, some forms of travel, legal advertising and when the needed supplies, services and equipment are proprietary and can only be provided by one source.

H. Best Interests of the City. When the City Council, on recommendation of the City Manager, determines that an alternative procedure will be in the best interests of the City and the policies set forth in this chapter.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

The Purchasing Officer shall inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. 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.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

All using agencies 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 agency or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. Local Area Veteran Vendor Preference in Purchasing Supplies and Equipment.

1. In the solicitation of supplies and equipment, as provided in Chapter 3.24, the City Council or the City Manager or his/her designee may give a preference pursuant to this chapter to local area veteran vendor in making such purchase or awarding such contract.

2. If the vendor that submits the lowest responsive bid or quote is not a local area veteran vendor as defined herein, the lowest responsive bid or quote submitted by a local area veteran vendor (if there is one) that is within five percent or ten thousand dollars ($10,000.00), whichever is less, of the lowest bid or quote may be deemed to be the lowest bidder. However, said local area veteran vendor must elect to reduce its bid or quote to match the bid or quote of the lowest bidder, in writing, within one business day (excluding weekends and holidays) of being notified of their status by the City.

3. If the lowest local area veteran vendor within five percent or ten thousand dollars ($10,000.00) of the lowest bid or quote does not elect to reduce its bid or quote to match the bid or quote of the lowest bidder, then the next lowest local area veteran vendor shall be given the opportunity to match the bid or quote of the lowest bidder as set forth above, providing that this local area vendor or veteran vendor is also within five percent or ten thousand dollars ($10,000.00) whichever is less, of the lowest bid or quote that has been deemed responsive.

4. In order for a local area veteran vendor to be eligible to claim the preference, the local area veteran vendor must request the preference in the response to the solicitation and provide a copy of its current business license issued by a qualifying City and veteran vendor verification.

B. Local Area Veteran Vendor Preference in Services.

1. In the solicitation of contracts based on evaluation criteria which best serves the needs of the City and provides the City with the highest quality and cost effectiveness, as provided in this title, the City Council or the City Manager or his or her designee may give a preference pursuant to this chapter to a local area veteran vendor in making such purchase or awarding such contract.

2. The equivalent of a ten percent preference will be added to final evaluated score of each local area veteran vendor. If the ten percent preference causes the local area veteran vendor to have the best overall score, the local area veteran vendor may be deemed the vendor that best serves the needs of the City and provides the City with the highest quality and cost effectiveness. However, said local area veteran vendor must elect to reduce the price portion of its bid, quote, or proposal to match the price portion of current best overall score vendor if lower, in writing, within one business day (excluding weekends and holidays) of being notified of their status by the City.

3. If the local area veteran vendor does not elect to reduce the price portion of its bid, quote, or proposal to match the price portion of the lowest bidder, then the next lowest local area veteran vendor shall be given the opportunity to match the price portion of the lowest bidder as set forth above, provided the ten percent preference causes said local area veteran vendor to have the best overall score, and provided the local area veteran vendor is deemed the vendor that best serves the needs of the City and provides the City with the highest quality and cost effectiveness.

4. In order for a local area veteran vendor to be eligible to claim the preference, the local area veteran vendor must request the preference in the response to the solicitation and provide a copy of its current business license issued by a qualifying City and veteran vendor verification.

C. Exceptions to Local Area Veteran Vendor Preference. The local preference set forth in this chapter shall not apply to the following purchases or contracts:

1. Supplies, equipment, and services provided under a cooperative purchasing agreement;

2. Purchases or contracts which are funded in whole or in part by a governmental entity, such as the State or Federal government and the laws, regulations, or policies governing such funding prohibit application of a local preference;

3. Purchases made or contracts let under emergency or noncompetitive situations;

4. Purchases with an estimated cost of five thousand dollars ($5,000.00) or less; or

5. Application of the local area veteran vendor preference to a particular purchase, contract, or category or contracts for which the City Council is the awarding authority may be waived at the City Council's discretion.

D. Quality and Fitness. The local preference set forth in this chapter shall in no way be construed to inhibit, limit or restrict the right and obligation of the City Council and the City Manager to compare quality and fitness for use of supplies, equipment, and services proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences set forth in this chapter shall in no way be construed to prohibit the right of the City Council or the City Manager from giving any other preference permitted by law or this title.

E. Application. The local area veteran vendor preference provided in this chapter shall apply to new contracts for supplies, equipment, and services first solicited on or after the effective date of the ordinance from which this section is derived. This chapter shall be implemented in a manner consistent with otherwise applicable provisions.

F. Verification of Local Area Veteran Vendor Preference Eligibility. Any vendor, contractor, or consultant claiming to be a local area veteran vendor shall so certify in the bid, in writing to the City Manager or his or her designee. The City Manager or his or her designee shall not be required to verify the accuracy or any such certifications, and shall have sole discretion to determine if a vendor, contractor, or consultant meets the definition of "local area veteran vendor." The decision of the City Manager declaring that any person or business is not a local area veteran vendor shall be final.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

A. Change orders shall be for similar kinds of work to that awarded in the original contract and shall only arise in good faith from unforeseen items and/or events since the time of the award.

B. Change order authorization limits are established as follows:

Contracts less than or equal to fifty thousand dollars ($50,000.00): ten percent of contract or up to five thousand dollars ($5,000.00) whichever is greater.

Contracts greater than or equal to fifty thousand dollars and one cent ($50,000.01): ten percent of contract or up to fifty thousand dollars ($50,000.00) whichever is less.

C. The limits noted are for change order amounts in the "aggregate." Change orders for amounts more than these limits must be approved by the City Council as a regular agenda item.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)

The value of authorization thresholds as presented within section 3.24.015 shall be adjusted for inflation on July 1 of every year by the percent change in the Consumer Price Index. "Consumer Price Index" means the average of the percent change in Consumer Price Index for Urban Clerical and Wage Earners, as reported by the Bureau of Labor Statistics or successor agency, from the December of the preceding calendar year over the preceding December, for the Los Angeles-Long Beach-Anaheim, CA area. Increases or decreases shall be rounded off to the nearest dollar.

(Ord. No. 1025, § 3(Exh. A), 1-14-25)