San Juan Capistrano Municipal Code Art. 3 Purchasing Procedures

Purchases which have a total amount of $10,000 or less may be made utilizing petty cash, check request, or other procedures, as may be prescribed in writing by the Purchasing Officer.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

Purchase of goods, supplies, equipment, materials or services in excess of $10,000 shall be made by purchase order or written contract. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the Purchasing Officer, or the Purchasing Officer’s designated representative, has been obtained.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

Except in cases of emergency, the Purchasing Officer shall not issue any purchase order(s) for supplies and equipment unless there exists an unencumbered appropriation in the City’s budget against which such purchase is to be charged.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

The total estimated cost of the goods, supplies, equipment, materials, services, or project determines the bidding procedures and procurement methods that must be followed, as described below:

(a) Goods, supplies, equipment and materials:

(1) No bidding required: 10,000.00 or less.

(2) Informal quote: $10,000.01—$25,000.00.

(3) Formal bid process: Over $25,000.00.

(b) Professional, personal or maintenance service contracts:

(1) No bidding required: $10,000.00 or less.

(2) Informal quote: $10,000.01—$25,000.00.

(3) Formal RFP/RFQ bid process: Over $25,000.00.

(c) Public works projects:

(1) No bidding required: $60,000.00 or less. (See Section 3.4-501(a).)

(2) Informal bid process: $60,000.01 to $200,000.00.

(3) Formal bid process: Over $200,000.00.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

Purchases of goods, supplies, equipment, materials, and professional, personal and maintenance services of an estimated cost in the amount of $25,000 or less may be made by the appropriate level of authority identified in Section 3-4.203, utilizing the open market process or informal quote process, as prescribed by the Purchasing Officer, without adhering to the procedures prescribed for Informal bid process or formal bid process. The open market process and informal quote process shall follow, at a minimum, the following guidelines:

(a) Minimum number of quotes. Open market purchases and informal quotes shall, whenever possible, be based on at least three quotes.

(b) Soliciting quotes. The originating department shall solicit quotes from prospective vendors by written request or telephone request.

(c) Award of purchase. Open market purchases and informal quotes purchases shall be awarded to the vendor presenting a quote that is in the City’s best interests as determined by the department head. Contracts for the purchase of professional services shall be awarded on the basis of demonstrated competence and professional qualifications.

(d) Additional procurement requirements. In circumstances where more restrictive requirements apply (e.g., procurement involving grant funds), the City will follow those requirements.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

The request for proposal (RFP) or request for qualifications (RFQ) process shall be utilized to engage services on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City. The following minimum guidelines and procedures shall be implemented by the Purchasing Officer:

(a) The originating department shall prepare the RFP/RFQ for the type of services to be performed, which shall contain, among other details, scope of the problem or objective, services to be performed, work product to be provided, anticipated time schedule, evaluation factors, expectations, limitations, contractual requirements, types of experience and qualifications considered in the evaluation, and other requirements specific to the scope of work.

(b) In issuing the RFP/RFQ, the originating department shall prepare a list of at least three potential firms to receive the RFP/RFQ, and where appropriate, advertise the RFP/RFQ in a local newspaper of general circulation. The City shall allow a reasonable length of time, based on the complexity and size of the project, between solicitation and closing dates to provide potential applicants time to respond.

(c) All proposals received by the City in response to an RFP/RFQ shall be time stamped and submitted to the originating department. All proposals received by 5:00 p.m. on the closing date of the RFP/RFQ shall be opened in the presence of the department head, or the department head’s designee, on the following workday.

(d) Proposals shall be evaluated by a selection committee, appointed by the department head of the originating department, subject to the approval of the City Manager or Purchasing Officer, on the general quality and responsiveness of the proposal, the qualifications of the organization or personnel submitting the proposal, and when applicable, the proposed cost for the services requested.

(e) The formal RFP/RFQ process may be bypassed only in the following circumstances:

(1) In emergency situations where the department head determines that an emergency exists and the public health, safety or welfare of the community would be affected;

(2) When only one known service provider is available; or

(3) When extenuating circumstances would make the formal RFP/RFQ process not the most cost-effective approach.

(f) In circumstances where more restrictive requirements apply (e.g., procurement involving grant funds), the City will follow those requirements.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

(a) The Purchasing Officer shall develop criteria and procedures to establish a qualified bidders list, which shall encompass qualified vendors registered with the City and the following categories of contractors:

(1) Maintenance contractors that provide services with recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;

(2) Professional service contractors that are educated or licensed specialists who provide services of an advisory nature and provide recommendations for a course of action, an end product, or the transmittal of information.

(b) In order to compile this list, the Purchasing Officer shall select, where possible, at least three vendors, consultants, or contractors for each category of services required, who shall be placed on the qualified bidders list following an informal solicitation of qualifications, and an evaluation and selection process, which shall be established by the Purchasing Officer.

(c) The qualified bidders list shall be approved by the City Council at least every three years. The City Manager shall have the authority to add qualified bidders to the list as needed, however any additions must be submitted to the City Council for ratification at the next regular City Council meeting.

(d) All vendors, consultants, and contractors on the qualified bidders list shall be reviewed and approved by the City Manager on an annual basis.

(e) In addition to the foregoing, the Purchasing Officer may develop and maintain a list of qualified construction contractors who are called upon through the Informal bidding process described in Section 3-4.308 to perform certain public works projects. The list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

The City has elected to follow the uniform construction cost accounting procedures for all public works projects. Contracts for public works projects with an estimated cost of over $60,000 and up to $200,000 may be let in accordance with the following informal bid process:

(a) The originating department shall prepare a notice inviting informal bids, which provides, at a minimum, a description of the project and scope of work, a method to obtain more detailed information on the project and scope of work, a proposed contract, applicable bond and insurance requirements, and the time and place for the submission of bids.

(b) The originating department shall mail a notice inviting informal bids to all construction contractors on the qualified bidders list and/or advertise the notice inviting informal bids in all designated construction trade journals no less than 10 calendar days before the bids are due.

(c) The City Clerk shall open all bids at the time and place stated in the notice inviting informal bids.

(d) The City, by way of the City Manager or City Council, where applicable, shall award the public works project to the lowest responsive and responsible bidder.

(e) In the event an informal bid result for the lowest responsive and responsible bidder results in all bids over $200,000, but less than $212,500, the City Council may award the public works project using the Informal bid process only after the City Council approves such an award by four-fifths vote consistent with Public Contract Code Section 22034.

(f) The originating department or Purchasing Officer shall follow and comply with all procedures and requirements set forth in Public Contract Code Section 22030 et seq., concerning informal bidding, this chapter, and any supplemental policies prescribed by the Purchasing Officer.

(g) In circumstances where more restrictive requirements apply (e.g., procurement involving grant funds), the City will follow those requirements.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

Except as otherwise provided in this chapter, purchases and contracts for goods, supplies, equipment, and materials, and services having a value greater than $25,000 and public works projects valued with an estimated cost greater than $200,000 shall be subject to the following formal bid process:

(a) Notice inviting bids. Notice inviting bids shall include: (i) a general description of the goods or services to be purchased; (ii) where bid forms and specifications may be obtained; and (iii) the date, time, and place for opening of the bids. The publication or posting of the notices inviting bids shall be given at least 14 days before the date of opening bids. The notice shall be published in a newspaper of general circulation, printed and published in the City, or, if there is none, the notice shall be posted in at least three public places in the City which have been designated by resolution as the places for posting public notices. The notice shall also be mailed to all construction trade journals specified in Public Contract Code Section 22036 at least 30 calendar days before the date of opening the bids, or emailed to the construction trade journals at least 15 calendar days before the date of opening the bids.

(b) Bidder’s security. When deemed necessary by the Purchasing Officer or originating department, bidder’s security may be prescribed in the public notice inviting bids. Bidders shall be entitled to the return of bid security; provided, however, a successful bidder shall forfeit his or her bid security upon his refusal or failure to execute the contract within 30 calendar days from the date of the award of the contract, unless in the latter event the City is solely responsible for the delay in executing the contract. The Purchasing Officer or originating department, on the refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsive and responsible bidder.

(c) Bid opening procedure. Sealed bids shall be submitted to the City Clerk and shall be clearly identified with the bid number on the envelope. Upon receipt, the City Clerk shall date and time stamp the envelope. Bids shall be opened in public at the time and place stated in the public notices. All bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

(d) Rejection of bids. In its discretion, the City Council may reject any and all bids, accept or reject any one or more items of a bid, or waive any irregularities or informalities in the bids or the bidding process if to do so is deemed to best serve the interests of the City. If, after the first invitation of bids, all bids are rejected, the City may elect to readvertise for bids pursuant to the procedure prescribed in this section or have the project done by force account.

(e) Award of contracts. Contracts shall be awarded by the City Council to the lowest responsive and responsible bidder.

(f) Tie bids. If two or more bids received are for the same total amount, with price, quality and services being equal, the City Council may accept the bid it chooses or accept the lowest bid made after negotiation with the tie bidders at the time of the bid opening.

(g) Additional bidding requirements. In circumstances where more restrictive requirements apply (e.g., procurement involving grant funds), the City will follow those requirements.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

There shall be no informal bid process or formal bid process required for the following purchases under any of the following circumstances:

(a) Where the acquisition of goods, supplies, equipment, materials, or services is necessitated by reason of emergency circumstances where the procurement is required to prevent the immediate interruption or cessation of necessary City services or to safeguard life, property, or the public health and welfare, such purchases shall be made in accordance with Section 3-4.204.

(b) When only one known source of the goods, supplies, equipment, materials, or services is available.

(c) When the City has a contract with another governmental agency to purchase a particular item or service on a cooperative basis.

(d) When the City Manager determines that compliance with the above formal procurement procedures for the purchase of goods, supplies, equipment, materials or services cannot be achieved due to timing requirements, which could have not otherwise been avoided, the City may proceed with an informal solicitation of quotes from at least three vendors. A description of the circumstances, the quotes received, and the basis for vendor selection shall be approved by the City Manager.

(e) The City Council may waive the requirement for competitive bidding for the purchase of goods, supplies, equipment, materials or services when compliance with such requirement is not in the best interest of the City, as determined by the City Council.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)

The Purchasing Officer or originating department shall inspect goods, supplies, equipment, materials and related services to determine their conformance with the specifications set forth in the purchase order or contract. The Purchasing Officer or originating department shall have the right to waive any defect, irregularity, or informality. The Purchasing Officer or originating department shall have the authority to require chemical and physical demonstrative testing of samples submitted with bids and samples of deliverables which are necessary to determine their quality, fitness for a particular use and conformance with specifications.

(Ord. No. 999, § 1, 2012; Ord. No. 1070, § 2, 2019)