San Clemente Municipal Code Ch. 3.40 Purchasing

In order to establish efficient procedures for the purchase of supplies, equipment and services; to secure for the City supplies, equipment and services at competitive cost commensurate with quality needed and with due consideration to disposability; to exercise positive financial control over purchases; to clearly define authority for the purchasing functions; to assure the quality of purchases; and to recognize the indirect financial benefit that purchases from local businesses provide to the city; to buy without favor or prejudice, a purchasing system is adopted as set forth in this chapter and in City policy approved by the City Council by resolution, as amended from time to time, which shall control the procedure for all purchases except as otherwise provided by law.

(Ord. 1207 § 1 (part), 1998; Ord. No. 1776, § 3, 7-17-2024)

The following terms, whenever used in this chapter, shall be construed as follows:

"Function or using agency" means any department, agency or other unit of City government which derives its support, at least in part, from the City.

"Local bidder" means a business having a place of business within the jurisdictional boundaries of the City of San Clemente and a valid San Clemente business license.

"Purchases" means purchases of supplies, equipment, materials and services and shall also include leases or rentals as well as transactions by which the City acquires ownership.

"Purchasing manager" means the City Manager or other City official or employee designated by the City Manager for administration of this chapter.

"Services" means any and all services, including, but not limited to, equipment service contracts. The term does not include services rendered by City officers or employees, nor professional or other contractual services for which the procedure for procurement is specifically provided by law or adopted City policy.

"Supplies," "equipment" and "materials" means any and all articles, things or personal property furnished to or used by or for any City function.

(Ord. 1207 § 1 (part), 1998)

A. Definitions. .....The following definitions shall apply to this Ordinance:

"Bid" means any response to a City solicitation for bids or proposals.

"City" means the City of San Clemente.

"Contract" means a written agreement for the purchase of goods, equipment or services, including construction, for the benefit of the City or its residents.

"Contractor" means a person, business or entity awarded a Contract by the City.

"Local Vendor", "Local Business", "Local Contractor", or "Local Bidder" means a Small Business with a physical location in San Clemente as indicated on an approved Business License as more particularly defined below:

1. Businesses must have a physical location in San Clemente as indicated on an approved business license from which they regularly do business.

2. Physical locations can include a main office, headquarters, branch office, or similar functional location within the geographic boundaries of the City where business work is regularly performed.

3. An approved business license issued with a valid City business site address must be established prior to the City inviting bids or requesting proposals for the procurement.

4. Post Office Box address, shared office space without a sublease or regular performance of business work from the space or similar arrangement within the City shall not qualify as a valid business location.

5. The City reserves the right to verify claimed business location and may require documentation demonstrating qualification and business being conducted therefrom.

"Proposal" means any response to a City solicitation for bids or proposals.

"Small Business" means a business or entity that meets the requirements of a small business enterprise certified pursuant to Article 1 (commencing with Section 14835) of Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government Code as that section may be amended from time to time and that performs a commercially useful function within the meaning of Public Contract Code section 2002(d) as that section may be amended from time to time.

B. Local Business License Required. .....Any business or entity seeking to apply the provisions of this chapter must have a valid business license issued by the City of San Clemente which must be in good standing and must qualify as a small business. The business must be physically located in the municipal boundaries of the City of San Clemente. If for any reason the contractor fails to qualify as a local business for more than 60 days during the entire term of the contract, the City shall be entitled to withhold or recover funds from the contractor in an amount that represents the value of the bid or proposal preference.

C. Application of Ordinance. .....When applying the provisions of this chapter to a bid, the City shall apply the preference to the bid price solely for bid evaluation purposes such that the total price bid by a local business shall be reduced by seven percent of the bid amount, and the reduced bid amount shall be deemed the amount of the bid by the bidder.

This chapter does not create a right to receive a bid or proposal preference. The City Council may, at any time before the award of a contract, determine that it is not in the City's best interest to grant a bid or proposal preference and direct staff to award the contract to the bidder or proposer eligible for the award without consideration of the provisions of this chapter.

Local subcontractors are not eligible for the local preference.

D. Local Preference for an Open Bid. .....If the total combined bid amount submitted by a responsible local vendor is not greater than 107 percent of the apparent low bid and all other rating criteria is considered to be equal, preference shall be given to the responsible local vendor, unless waived prior to the contract award by the San Clemente City Council finding the waiver would serve the best interests of the City and the public. However, in no case shall the amount of the preference exceed $150,000.00. This provision shall not apply to contracts required by state or federal statutes and/or regulations to be awarded to the 'lowest responsible bidder', or otherwise exempted from local preference.

E. Local Preference for a Sealed Bid. .....A seven percent preference shall be granted to local vendors on all sealed bids, unless waived prior to the contract award by the San Clemente City Council finding the waiver would serve the best interests of the City and the public. However, in no case shall the amount of the preference exceed $150,000.00. This provision shall not apply to contracts required by state or federal statutes and/or regulations to be awarded to the 'lowest responsible bidder', or otherwise exempted from local preference.

F. Local Preference Procurement Policy. .....This chapter is intended to act as a procurement policy within the meaning of and in compliance with the requirements of Public Contract Code section 2002(c).

G. Oversight. .....City staff shall investigate any allegation of potential fraudulent behavior on the part of a entity or individual for the purpose of qualifying for and being awarded a local vendor preference. If the City Council determines after a hearing that a contractor was not actually qualified as a local business at the time that the application for the local vendor preference was made or at the time that the contract was awarded, the City shall be entitled to withhold or recover funds from the contractor an amount that represents the value of the bid or proposal preference and/or the City may, in its discretion, declare the contract void and the contractor's bid non-responsive and award the contract without regarded to such bid.

(Ord. 1207 § 1 (part), 1998; Ord. No. 1750, § 3, 5-16-2023; Ord. No. 1800, § 3, 3-3-2026)

Exemptions to bidding requirements shall be established by City policy approved by the City Council by resolution, which shall be consistent with in this chapter and applicable state and federal law, and may be amended from time to time by resolution of the City Council. The persons and body authorized to determine exemptions shall be those with the authority to award and execute contracts as set forth in section 3.40.080.

(Ord. 1207 § 1 (part), 1998; Ord. No. 1776, § 4, 7-17-2024)

A. Alternative Bid Procedures for Public Projects under $220,000. .....Public projects, as defined by the California Uniform Public Construction Cost Acting Act (CUPCCA) and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract as set forth in Sections 22032, et seq., of the Public Contract Code. Public projects of seventy five thousand dollars ($75,000.00) or less may be performed by the employees of the City by force account, by negotiated contract, or by purchase order. Public projects of two hundred twenty thousand dollars ($220,000.00) or less may be let to contract by informal procedures as set forth in CUPCCA. Amendments or revisions to CUPCCA shall automatically be directly incorporated into this section when enacted by the California Legislature upon the effective date thereof without further action of the City Council.

B. Contractors List. .....A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and the criteria promulgated from time to time by the California Uniform Public Construction Cost Accounting Commission.

C. Notice Inviting Informal Bids. .....Where a public project is to be performed that is subject to the informal bidding procedure under CUPCCA, a notice inviting informal bids shall be mailed or emailed to all contractors for the category or work to be bid, as shown on the list developed in accordance with subsection B of this section, and to all construction trade journals as specified by the CUPCCA Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the City; provided, however:

1. If there is no list of qualified contractors maintained by the City for the particular category or work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the CUPCCA Commission; and

2. If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

D. Public Project Generally. .....Public projects not subject to the alternative bid procedures as set forth in subsection A of this section, or public projects where the Director of Public Works determines that it would be in the City's best interest to proceed with formal bidding, shall be let to contract through a competitive bid process designed to select the lowest responsive and responsible bidder. The procedures to be followed shall at all times comply with applicable laws.

E. Award of Contracts. .....The persons and body authorized to award and execute public project contracts shall be as set forth in section 3.40.080.

(Ord. No. 1776, § 5, 7-17-2024; Ord. No. 1793, § 2, 8-5-2025)

Editor's note— Ord. No. 1776, § 5, adopted July 17, 2024, repealed the former § 3.40.050, and enacted a new § 3.40.050 as set out herein. The former § 3.40.050 pertained to public construction projects and derived from Ord. 1207 § 1 (part), adopted 1998; Ord. 1297 § 1, adopted 2004; and Ord. No. 1724, § 1, adopted Dec. 21, 2021.

The Purchasing Manager or his/her designee may 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 Manager shall have authority to require chemical and physical tests of samples submitted with bids, and samples of deliveries which are necessary to determine compliance with specifications.

(Ord. 1207 § 1 (part), 1998)

Except as otherwise provided by law, the immediate requirement of an item or items necessary for health and safety or for the preservation of life or property shall be deemed an emergency. Such purchases may be approved by the City Manager or his/her designee, provided that a full report of the circumstances of all emergency purchases in excess of approved procedures shall be filed with the City Council at its next regular meeting.

(Ord. 1207 § 1 (part), 1998)

The following persons and body are authorized to award contracts that were solicited in compliance with this chapter, the City purchasing policy and state and federal law at the following corresponding amounts and to execute such contracts or delegate the authority to execute such contracts:

(Ord. No. 1776, § 6, 7-17-2024; Ord. No. 1793, § 3, 8-5-2025)