San Bernardino Municipal Code Ch. 3.04 Purchasing System

Section

Statutory reference:

For provisions requiring local agencies to adopt policies and procedures governing purchases of supplies and equipment, see Cal. Gov’t Code, § 54202

(A) Establishment. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services; to secure for all departments or agencies of the city supplies, materials, equipment and services at the lowest possible cost commensurate with the quality needed; to exercise positive financial control over purchases; to clearly define authority for the purchasing functions; and to assure that quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no agency or department shall be authorized to purchase or contract for the purchase of supplies, services or equipment independently of the Purchasing Division. The City Municipal Water Department and the San Bernardino Public Library shall not be subject to this centralized purchasing system; however, the Board of Water Commissioners and the Board of the San Bernardino Public Library shall employ procedures substantially in compliance with the provisions of this chapter as such may be applicable.

(B) Purchasing policy. All purchases of goods, supplies, equipment and services shall be made in accordance with the formal purchasing policy in effect at the time of the purchase. The purchasing policy shall be developed by staff and adopted by the Mayor and City Council. The purchasing policy may be changed, from time to time, by City Council resolution in order to remain in compliance with necessary law and to address the evolving procurement needs of the city.

(C) Vendor lists. The city may utilize the processes of this chapter and purchasing policy to procure vendors who will be eligible or preferred to provide goods or services to the city on an as-needed basis.

(D) Exemptions. This chapter shall not apply to the following:

(1) Purchases from, or sales to, a government or governmental agency, or through any advantageous governmental contract approved by the Council, or to the purchase of election supplies, or to purchases and/or services or service contracts relating to litigation or prosecution or investigations thereof, or to purchases and/or services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures;

(2) Purchases from a vendor or manufacturer which, through the city’s bidding procedure, or other government or governmental agency’s bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the city. During such a bid procedure, more than one responsive bid must have been received;

(3) Purchases approved by the Mayor and City Council;

(4) Purchases of less than $10,000;

(5) Procurement procedures for public works projects are defined in Chapters 12.20, 12.21 and 12.24;

(6) Sole source procurements, as more defined in the purchasing policy;

(7) Emergency procurements, as more defined in § 3.04.070 and the purchasing policy;

(8) Federal/grant-funded procurement to the extent that this chapter and purchasing policy is inconsistent any federal, grant or other funding source requirement for a particular purchase. In that event, the federal, grant or other funding source procurement requirements shall control; and

(9) Inadequate competition, as more defined in the purchasing policy.

(Ord. 2588, passed 6-23-1964; Ord. MC-431, passed 1-25-1985; Ord. MC-513, passed 4-22-1986; Ord. MC-608, passed 9-22-1987; Ord. MC-858, passed 1-12-1993; Ord. MC-983, passed 9-24-1996; Ord. MC-1605, passed 2-1-2023)

Unless otherwise exempted under this chapter, the purchase and sale of all supplies, materials, equipment and services shall be the responsibility of the Purchasing Division. The Purchasing Division is part of the Department of Finance and Management Services, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement. The Purchasing Division Manager is responsible for the purchasing policy, and will develop, advise, review, audit and ensure compliance throughout the purchasing process as the city’s subject matter expert.

(Ord. 2588, passed 6-23-1964; Ord. MC-858, passed 1-12-1993; Ord. MC-1605, passed 2-1-2023; Ord. MC-1625, passed 2-21-2024)

The procurement process used to purchase supplies, material, equipment and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.

(A) Purchases up to $10,000. Purchases up to $10,000 may be purchased using a purchasing card or through a check request with no requirement for formal bids or quotes.

(B) Purchases between $10,001 and $40,000. Purchases between $10,001 and $40,000 are processed informally through vendor quotations and may be processed directly by the department making the purchase. The informal bidding process is more particularly described in the purchasing policy.

(C) Purchases above $40,000.

(1) Purchases in this category are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the purchasing policy.

(2) All contracts in this category signed by the City Manager, agency directors, directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each regular City Council meeting during the City Manager update.

(Ord. 2588, passed 6-23-1964; Ord. MC-1605, passed 2-1-2023)

(A) The authority to purchase supplies, material, equipment and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.

(B) Purchasing authority are based on the following amounts.

(1) Purchases up to $50,000. Purchases in this category may be authorized by the agency/department directors and/or the City Manager.

(2) Purchases between $50,001 and $100,000. Purchases in this category may only be authorized by the City Manager or the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence.

(3) Purchases over $100,000. Purchases in this category may only be authorized by the Mayor and City Council.

(Ord. 2588, passed 6-23-1964; Ord. MC-1605, passed 2-1-2023)

Purchase of supplies, materials and equipment shall be made only by purchase order or procurement card, whichever is appropriate.

(Ord. 2588, passed 6-23-1964; Ord. MC-858, passed 1-12-1993; Ord. MC-1605, passed 2-1-2023)

The Purchasing Division shall not issue any purchase order for supplies, materials or equipment unless there exists an unencumbered appropriation in the account against which the purchase is to be charged, and until the same has been approved by the Budget Division of the Department of Finance and Management Services.

(Ord. 2588, passed 6-23-1964; Ord. MC-1605, passed 2-1-2023; Ord. MC-1625, passed 2-21-2024)

In case of an emergency, which is so urgent as to preclude advance action by the Mayor and City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Manager shall have the authority to authorize securing in the open market any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in § 3.05.020. An explanation of the emergency circumstances shall be filed with the Mayor and City Council within 48 hours of the emergency purchase.

(Ord. 2588, passed 6-23-1964; Ord. 3514, passed 8-6-1975; Ord. 3723, passed 5-4-1978; Ord. 3893, passed 1-9-1980; Ord. MC-183, passed 7-7-1982; Ord. MC-491, passed 1-22-1986; Ord. MC-602, passed 6-2-11987; Ord. MC-646, passed 12-7-1988; Ord. MC-858, passed 1-12-1993; Ord. MC-1413, passed 4-6-2015; Ord. MC-1569, passed 2-2-2022; Ord. MC-1605, passed 2-1-2023)

(A) All agencies and departments shall submit to the Purchasing Division reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The Purchasing Division Manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder, pursuant to the procedures in the purchasing policy, or shall be made at a public auction as hereinafter set forth in § 3.04.100.

(B) A notice describing the property in sufficient detail for its identification shall be prepared by the Purchasing Division and shall be given at least five days before the time fixed therefore by publication once in an established newspaper or other publication of general circulation published in the city.

(C) City officers shall not be purchasers at any such public auction authorized, conducted or administered by them in their official capacity, nor shall any city officer or employee, directly or indirectly, submit a bid at the auction if they have participated in the preparation or conduct of the auction in their official capacity.

(D) The property so offered for sale shall be sold to the highest bidder for cash; provided that the Purchasing Manager may, at his or her discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.

(E) Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.

(F) The proceeds of the auction sale or sales shall immediately be deposited with the Department of Finance and Management Services and deposited into the General Fund of the city.

(Ord. 2588, passed 6-23-1964; Ord. 3531, passed 10-7-1975; Ord. 3893, passed 1-9-1980; Ord. MC-183, passed 7-7-1982; Ord. MC-602, passed 6-2-11987; Ord. MC-646, passed 12-7-1988; Ord. MC-858, passed 1-12-1993; Ord. MC-1413, passed 4-6-2015; Ord. MC-1605, passed 2-1-2023; Ord. MC-1625, passed 2-21-2024)

It shall be unlawful to split, or separate into smaller purchases, a purchase in order to bring the purchase within the provisions of any exemption or less stringent procedure provided herein.

(Ord. 2588, passed 6-23-1964; Ord. MC-646, passed 12-7-1988; Ord. MC-1605, passed 2-1-2023)

(A) Any formal or informal bid submitted by a local bidder for goods or materials, pursuant to this chapter, shall receive a 5% credit for comparison purposes with other bidders when a local credit is allowable under the law.

(B) For the purpose of this section, “local bidders” shall be bidders with:

(1) Fixed facilities with employees within the city’s jurisdiction (a P.O. box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used); and

(2) An appropriate city business license.

(Ord. 2588, passed 6-23-1964; Ord. 3370, passed 8-22-1973; Ord. 3531, passed 10-7-1975; Ord. MC-1605, passed 2-1-2023)

[Reserved]

(Ord. MC-608, passed 9-22-1987; Ord. MC-1605, passed 2-1-2023)

[Reserved]

(Ord. MC-858, passed 1-12-1993; Ord. MC-1605, passed 2-1-2023)

[Reserved]

(Ord. MC-1605, passed 2-1-2023)

[Reserved]

(Ord. MC-1605, passed 2-1-2023)