San Joaquin Municipal Code Ch. 35 Purchasing

(A) The purpose of the Purchasing Ordinance codified in this chapter is to establish efficient procedures for the purchase of supplies, equipment and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to define purchasing authority, and to assure the quality of purchases.

(B) The adoption of the Purchasing Ordinance codified in this chapter is intended to meet the requirements of state law including but not limited to the following: (i) Cal. Gov’t Code §§ 54201 to 54205 regarding the purchase of supplies and equipment; (ii) Cal. Public Contract Code §§ 20160 to 20175.2 regarding public works construction projects; (iii) Cal. Gov’t Code § 4526 regarding professional services; (iv) Cal. Labor Code requirements for prevailing wages; and (v) other applicable state laws.

(C) The procurement requirements under the Purchasing Ordinance codified in this chapter shall be followed. However, in the event stricter procurements are required by a state or federal funding sources, those requirements shall be met to ensure funding compliance.

(Ord. 15-100, passed 2-11-2015)

Purchase and contract expenditures must be authorized in the city's annual budget or pursuant to amendment to the annual budget approved by the City Council.

(Ord. 15-100, passed 2-11-2015)

The City Manager shall be designated as the Purchasing Officer. The City Manager may delegate his or her authority as Purchasing Officer to another city employee. Such designation must be made in writing and specifically delegate to that person the responsibility of Purchasing Officer under this chapter. The Purchasing Officer shall have authority to:

(A) Purchase or contract for supplies, equipment and services required by city in accordance with purchasing procedures prescribed by this chapter, any administrative regulations as the Purchasing Officer may adopt, and any requirement as shall be prescribed by state or federal funding agencies;

(B) Negotiate and recommend execution of contracts for the purchase of supplies, equipment and services at least expense to the city;

(C) Act to procure for the city the needed quality in supplies, equipment and services at least expense to the city;

(D) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on purchases;

(E) Prepare and recommend to the City Council revisions and amendments to the Purchasing Ordinance;

(F) Prescribe and maintain the forms as are reasonably necessary to the operation of this chapter and other rules and regulations and state laws:

(G) Supervise the inspection of all supplies, equipment and services purchased to ensure conformance with specifications; and

(H) Maintain a bidders' list, vendors catalog file, and records needed for the efficient operation of the Purchasing System.

(Ord. 15-100, passed 2-11-2015)

(A) City Manager. Purchases and contracts of less than $5,000 may be awarded and signed by the City Manager unless the City Council expressly reserves approval on a particular purchase or contract or the City Manager requests Council approval.

(B) City Council. If the amount of any purchase or contract is $5,000 or more, the contract shall be awarded by the City Council and signed by the Mayor.

(Ord. 15-100, passed 2-11-2015)

The term “public projects” is defined in § 35.06. The following shall apply to purchase and contracts that are not public projects.

(A) Procedures for specific amounts. The following procedures shall be followed when purchasing or leasing materials, supplies, equipment or services:

(1) $0 to $500. The City Manager shall ensure that the city pays fair prices and receives commensurate value for amounts expended.

(2) $501 to $2,500. Price quotes must be solicited, either verbally or in writing, from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

(3) $2,501 or higher. Written specifications describing the delivery schedule, materials, supplies, equipment or services must be prepared. Price quotes must be solicited in writing from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

(B) Purchase order or contract required. Purchases of supplies, equipment, and services shall be made only by written purchase order or contract.

(Ord. 15-100, passed 2-11-2015)

(A) Uniform Public Construction Cost Accounting Act adopted. The City Council hereby adopts the California Uniform Public Construction Cost Accounting Act (Cal. Public Contract Code § 22000 et seq.) for the purpose of prescribing regulations governing contracts awarded by the city for public projects. However, nothing contained herein shall preclude the city from utilizing more restrictive procedures if, and when required by federal or state law, or when federal or state funds are involved in the contract to be awarded and the funding agency requires more restrictive procedures.

(B) Definitions of terms. As used in this section, the words, terms and phrases shall have the following meanings, as defined in Cal. Public Contract Code § 22002, unless otherwise apparent from the context:

FACILITY means any plant, building, structure, ground facility, real property, street, highway or other public work improvement.

MAINTENANCE WORK includes all of the following:

(a) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes.

(b) Minor repainting.

(c) Resurfacing of streets and highways at less than one inch.

(d) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

PUBLIC PROJECT means any of the following:

(a) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.

(b) Painting or repainting any publicly owned, leased, or operated facility.

(c) PUBLIC PROJECT does not include maintenance work, as defined above.

(C) Dollar amount of public project determines process to be used. The dollar amount thresholds provided in this section shall automatically adjust upon the effectiveness of any adjustment notification by the State Controller in accordance with Cal. Public Contract Code § 22020, without the necessity of amending this section or any subdivision herein to reflect any such adjustment.

(1) Public projects of $45,000 or less may be performed by city employees by force account, by negotiated contract, or by purchase order. The contract or purchase order for contracts over $5,000 shall be awarded by the City Council and signed by the Mayor.

(2) Public projects of $175,000 or less may be let to contract by informal bidding procedures as set forth in this section.

(3) Public project of more than $175,000 shall, except as otherwise provided in this section, be let to contract by formal bidding procedure as set forth in this section.

(D) Procedures to be used for contracts regarding public projects.

(1) Written specifications. Public works projects which come within the dollar amount set forth in division (C)(1) above are subject to written specifications describing the delivery schedule, materials, supplies, equipment and services. Price quotes must be solicited in writing from a minimum of three vendors, if available. The low price quote must be confirmed in writing.

(2) Informal bidding procedures. Public works project which are subject to the informal bidding procedures as set forth in division (C)(2) above shall be awarded to the lowest responsible bidder in accordance with the Uniform Construction Cost Accounting Act, § 22032 et seq. of the Cal. Public Contract Code, as follows:

(a) Contractors list. A list of qualified contractors shall be developed and maintained in accordance with the provisions of Cal. Public Contract Code § 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(b) Notice inviting informal bids. A notice inviting informal bids shall be prepared, which shall describe the project in general terms, describe how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than ten days before bids are due, to either all the contractors on the contractors list for the category of work to be bid, or to all construction trade journals specified in Cal. Public Contract Code § 22036, or both, unless the product or service delivery is proprietary.

(c) The informal bids for public projects shall be awarded by the City Council and signed by the Mayor.

(d) If all bids received are in excess of $175,000, the City Council may, by adoption of a resolution of four-fifths vote, award the contract, at $187,500 or less, to the lowest responsible bidder, if it determines the cost estimate of the public agency was reasonable.

(3) Formal bidding procedures. Public work projects which are subject to formal bidding procedures as set forth in division (C)(3), above, shall be awarded to the lowest responsible bidder in accordance with, but not limited to, the following procedures:

(a) Preparation of a notice inviting bids including bid specifications and setting of the time and place for receiving and opening of sealed bids;

(b) Publication of such notice at least 14 days prior to bid opening, and sent electronically, if available, and mailed to all construction trade journals specified in Cal. Public Contract Code § 22036, at least 15 days prior to bid opening;

(c) The submission of sealed bids;

(d) A public bid opening;

(e) Award to the lowest, responsive and responsible bidder;

(f) City reservation in notice inviting bids of the right to reject any or all bids;

(g) Award and execution of a written contract; and

(h) Reference to applicable state or federally funded project requirements.

(E) Authority to prepare and issue notice inviting bids. The City Manager is authorized to prepare and issue notices inviting bids and to establish such additional bidding procedures as are not inconsistent with those stated herein.

(F) Prohibition against splitting or separating projects. It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this chapter requiring work to be done by contract after competitive bidding.

(G) City Council authority to reject, re-advertise, or otherwise award.

(1) In its discretion, the City Council may reject any and all bids presented under the informal and formal bidding procedures described above, if the city, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the city, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the city's intent to reject the bid and shall be mailed at least two business days prior to the Council meeting at which the city intends to reject the bid. If after the first invitation for bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have of the option of either of the following:

(a) Abandoning the project or re-advertising for bids in the manner described in this § 35.06.

(b) By passage of a resolution by a four-fifths vote of the City Council declaring that the project can be performed more economically by the employees of the city, the city may have the project done by force account without further complying with this § 35.06.

(2) If the contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses.

(3) If no bids are received through the informal or formal bidding procedures described above, the project may be performed by employees of the city by force account or by informal bidding procedures set forth above.

(H) Emergency.

(1) In case of an emergency regarding a public project which requires competitive bidding, the City Council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property. The resolution shall specify findings as required in Cal. Public Contracts Code § 22050.

(2) EMERGENCY as used in this section means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.

(I) Written contracts required. All contracts for public projects shall be in writing; all amendments to contracts shall be in writing. The City Manager shall work with the City Attorney to ensure that the contract includes language protecting the city's interest and language required by law. This language shall include, but is not limited to: specified term, scope of services, termination language, insurance, warranties, indemnification, non- collusion, contractor license, security, bonds, liquidated damages, change orders, retention, prevailing wages, and compliance with applicable laws.

(J) Exception competitive bidding for purchases from state. In accordance with Cal. Public Contract Code § 10299, the city may, without formal or informal bidding, contract with suppliers who have been awarded contracts by the state for the purchase of goods, information technology, and services under the competitive process in Cal. Public Contract Code §§ 12100 to 12113. Such contracts typically take the form of master agreements, price schedules, or multiple award schedules. The city may make these purchases directly from the vendors or the state may provide assistance to the city in making these acquisitions. Such contracts are subject to Council approval.

(Ord. 15-100, passed 2-11-2015)

In the event that there is one, and only one, source for a product in excess of $5,000, a sole-source contract may be used. When the city wishes to purchase a product over $5,000 from a sole source without competitive bidding, a sole-source resolution is to be prepared and submitted with a city agenda item. In order to establish a legal basis for a sole-source exception, the following statements and findings must be made and set forth in every sole-source resolution:

(1) A statement describing every unique or specialized feature of the product in question;

(2) A statement of the City Manager's efforts to locate all possible suppliers of such product;

(3) A statement that, in spite of its efforts, the City Manager has been able to locate only one supplier of the product in question;

(4) A statement that indicates the ultimate cost of the product and the process used to determine the cost of the product; and

(5) A finding that it is, therefore, proper for the city to dispense with competitive bidding requirement and to authorize the City Manager to purchase the product in question under the sole-source exception.

(Ord. 15-100, passed 2-11-2015)

(A) Under Cal. Labor Code § 1771, all work performed under contract for public works projects of more than $1,000 shall be subject to prevailing wages. The Labor Code defines the term “public works project” broader than the Public Contract Code and § 35.06 above. There may be instances in which bidding is not required but payment of prevailing wages is required.

(B) PUBLIC WORKS PROJECT for the purpose of prevailing wages means:

(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part from city funds. For purposes of this paragraph, CONSTRUCTION includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work. For purposes of this paragraph, INSTALLATION includes, but is not limited to, the assembly and disassembly of free-standing and affixed modular office systems.

(2) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.

(3) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.

(C) Prevailing wage requirements do not apply to work performed by the city with its own forces.

(D) The City Manager is authorized to establish guidelines for implementing prevailing wages requirements that are consistent with this section and with the Labor Code.

(Ord. 15-100, passed 2-11-2015)

The selection of consultant and professional services including but not limited to private architectural, landscape, architectural, engineering, environmental land surveying, or construction management firms, and law firms shall be on the basis of demonstrated competence, on the professional qualifications necessary for the satisfactory performance of the services required, and at a fair and reasonable price to the city. To obtain the best competitive value for services, the City Council may from time to time, at its discretion, employ an RFP or RFQ process. If a state or federal funding source requires an RFP or RFQ process, the city shall comply with said process to secure funding.

(Ord. 15-100, passed 2-11-2015)

No person shall recommend, participate in any contract evaluation, selection, purchase or lease which would constitute a conflict of interests defined in the City Conflict of Interest Code or applicable state law.

(Ord. 15-100, passed 2-11-2015)

(A) Credit card policy.

(1) This section shall be deemed the city's Credit Card Purchasing Policy.

(2) The City Manager shall be responsible for designating an employee in writing to be responsible for the city's credit card issuance, accounting, monitoring, retrieval, and for general oversight of compliance with this credit card use policy.

(3) Credit cards may be used for the purchase of goods and services that are for the official business of the city when standard accounts payable procedures cannot be utilized. Examples include fuel purchases, travel-related expenses, conference registration fees, and purchases wherein vendor requires immediate payment and the purchase is immediately necessary for city business.

(4) City credit cards may be used only by those authorized and only for the purchase of goods or services for the official business of the city.

(5) Purchases made via the credit card must comply with the city's Purchasing and Expenditure policies. The card in no way changes such policies

(6) The Finance Department will follow established accounts payable internal control procedures for approval, documentation and payment of credit card charges.

(7) Unauthorized use of a city credit card shall result in disciplinary measures to the fullest extent of the law.

(B) Procedures.

(1) Issuance of credit cards.

(a) A credit cards may be issued to the City Manager. The City Manager may designate two other city personnel to receive credit cards to make city purchases that cannot be paid through the accounts receivable process. Only one card will be issued in an individual's name. Cards are nontransferable. It is understood that each individual issued a credit card may designate support staff to process credit card purchases.

(b) The City Manager may authorize credit card purchases of up to $5,000 which are procured in accordance with the Purchasing Ordinance codified in this chapter. Contracts and purchases in excess of $5,000 which have been authorized by the City Council may be paid with credit cards. The authorized credit limit of each credit card issued by the city shall not exceed $10,000.

(2) Card holder responsibilities and liability.

(a) Each credit card holder must comply with the following requirements:

• 1. Ensure the card is used only for legitimate city business purposes.
• 2. Maintain the card in a secure location at all times.
• 3. Not allow other individuals to use the card.

4. Adhere to city purchase limits and restrictions as set forth in the city's Purchasing Ordinance.

5. Submit documentation to the Finance Director, including sales slips, register receipts, and/or credit card slips and other documentation detailing the goods or services purchased, the cost of the goods or services, the date of the purchase and the official business for which it was purchased. Such documentation shall be submitted within five days of purchase.

6. Attempt to resolve disputes related to billing errors with a vendor directly or in conjunction with the Finance Director.

7. Ensure that the appropriate credit is issued for disputed items or billing errors on a subsequent credit card statement.

8. Immediately report a lost or stolen card to the card issuer and notify the Finance Director of the lost or stolen card at the first opportunity during business hours.

9. Return the card to the city upon termination employment with the city.

(b) Card holder liability. The credit card is a corporate charge card that will not affect the card holder's personal credit; however, it is the card holder's responsibility to ensure that the card is used within stated guidelines, policies and procedures of the city. Failure to comply with program guidelines may result in the permanent revocation of the card, charge-back of an improper or unsupported transaction to the card holder for reimbursement to the city, notification of the situation to management, and further disciplinary measures, which may include termination.

(Ord. 15-100, passed 2-11-2015)