San Mateo Municipal Code Ch. 3.60 Purchasing

The purpose of this ordinance is to establish purchasing procedures for the City of San Mateo. The City Council finds that a flexible purchasing system that allows for consideration of price, quality, reliability, workmanship, compatibility of products (such as computers and cellular equipment or design and furniture), and other relevant factors is in the public's best interests and that no single factor should be determinative in every case.The City Council further finds that the complexity of City of San Mateo purchases and construction contracts, in conjunction with the complexities of the private marketplace, require that city staff and this Council have flexibility to select among the purchasing alternatives set forth in this ordinance in order to obtain the best products, services, and construction in the public's interest.

The City Council shall be the awarding authority for any purchase or contract of $100,000.00 or more. The City Manager shall be the awarding authority for any purchase or contract of less than $100,000.00 and may in his or her discretion delegate authority to the department and/or division heads at designated dollar levels. The City Attorney shall be the awarding authority for legal matters.

Bids shall be obtained for purchases and contracts within the awarding authority of the City Council, except as exempted by Section 3.60.050. For other purchases and contracts, wherever possible at least two quotations shall be obtained, provided that the failure to obtain quotations shall not be deemed mandatory so as to invalidate a purchase or contract.

(a) City Council Award Procedure. The following procedures shall apply:

(1) Notice Inviting Bids. The notice inviting bids shall describe the project to be done or the purchase to be made and shall set a date for the opening of bids. The notice shall be published once in the official newspaper not less than five days prior to the date and time set for opening of bids.

(2) Opening of Bids. All bids shall be sealed, identified as such and submitted to the City Clerk or the department supervising the project on or before the date and time set for opening. Bids received after the specified time shall be returned to the bidder unopened; provided, however, the bids received prior to the opening of the first bids shall be considered to be timely. Bids shall be opened in public at the time specified in the notice.

(3) Award. The City Council may, in its discretion, waive any minor irregularities or informalities in the bids received. The award may be to the lowest responsible bidder or other bidder. In determining to whom the award is to be made, the City Council may consider, in addition to the bid price received, the experience of the bidder for the particular service sought, the quality of work the bidder has done, the quality of the product or materials provided by the bidder, the ability of the bidder to complete the project in a timely manner, the safety compliance record of the bidder, the insurance carried by the bidder, the information provided by the pre-qualification process, and the after sales service and support that is provided, as well as other factors that the City Council determines to be relevant in the particular situation.

(4) Rejection. The City Council may, it in its discretion, reject all bids received, negotiate a contract for the work or supplies if the project is not within budget, do the work through City employees, or terminate the project or purchase. If no bids are received, the City Council may have the project done or purchase made without further compliance with this chapter.

(b) Non-City Council Awards. An open market procedure may be used without the requirement for notice, publication, specifications, or any other requirement set forth for City Council awards.

(c) Professional Services. Notwithstanding the above procedures, agreements with architects, engineers, attorneys, planning consultants, technicians, and other specialized consultants may be awarded through a negotiated process and without meeting the requirements above. This procedure may be used for the purchasing alternatives designated in Section 3.60. Professional services shall, whenever appropriate, be based on negotiations with at least two professionals. Agreements for the preparation of environmental impact reports and other documents, studies, and reports that are wholly funded by private persons shall be awarded by the City Manager without the need for further City Council approval, regardless of cost.

Notwithstanding any other provision of this chapter, the requirements of this chapter shall not apply:

(a) where any emergency exists affecting or threatening to affect the public health, safety, or welfare;

(b) where calling for bids is impracticable, unavailing, or impossible and the awarding authority based on the amount of the purchase/ contract sets forth findings designating the reasons;

(c) to the placement of insurance coverage;

(d) to franchises awarded by the City Council;

(e) to the employment of attorneys and experts by the City Attorney;

(f) to funding provided to community service groups;

(g) to contracts with other governmental agencies;

(h) to purchases where a bid of the State of California is used or a bid from another city, provided that the terms of Section 3.60.070 (a), (b) are met.

If a subcontractor is substituted for a subcontractor listed in the original bid for reasons set forth in Section 4107 (a) of the Public Contracts Code or for a reason that the City Manger or designee determines to be proper, the City Manager or designee shall follow the procedures set forth in the Section 4107 (a) of the Public Contract Code.

The City Manager or designee may require a pre-qualification process for bidders, suppliers, or professionals (hereinafter collectively referred to as "bidder(s)"). The pre-qualification process shall require at a minimum that prospective bidders answer questions that are contained in a pre-qualification questionnaire. Notice of the pre-qualification requirement shall be given in the same manner as is required to receive bids or proposals and once pre-qualification notice is given additional notice shall not be required to receive the bids or proposals. Responses to the pre-qualification requirements shall be provided within the time frames designated and any written responses shall be provided in a sealed envelope under penalty of perjury.The pre-qualification questionnaire shall include, but not be limited, to questions pertaining to the following criteria:

(a) The familiarity and experience of the prospective bidder with the particular type of purchase or contract designated;

(b) The sufficiency and availability of personnel, equipment, materials, and other facilities or resources of the prospective bidder to accomplish the designated work or provide the construction or contract supplies, materials, or reports and opinions.

(c) The ability of the prospective bidder to provide required bonds and insurance, including indemnity.

(d) The financial ability/condition of the prospective bidder to accomplish the work designated.

(e) The experience of the prospective bidder to perform the designated work as well as the experience in performing similar work.

(f) The safety record of the prospective bidder.

(g) The record of the prospective bidder within the preceding 5 years regarding claims, arbitration, mediation, or litigation filed by or against the prospective bidder regarding public or private construction contracts or other contracts where the prospective bidder provided services, supplies, materials, opinions or reports.

(h) Such other information as is deemed appropriate for the particular purchase or contract.

The City Manager or designee shall apply a uniform rating system to the prospective bidders for each purchase or contract. Bidders that are deemed qualified shall be provided the opportunity to submit bids or proposals in the manner set forth in this chapter; no other bids are required to be sought, although the City may solicit additional bids if in the exercise of its discretion, it determines it to be in the City's best interests.

If a person disputes a prequalification denial under Section 3.60.060, an appeal may be filed with the City Manager or designee not later than 10 calendar days after the decision. Notice of the prequalification denial shall be provided by certified mail to the address provided by the bidder on its application for prequalification, along with designation of the time period for dispute. A bidder may request the basis for the denial and any evidence relied upon by the City. The decision shall be final if no timely appeal is filed. An appeal shall be in writing specifying the particular grounds for appeal. All matters not set forth in the written request for reconsideration shall be deemed waived.The City Manager or designee shall designate a time to receive evidence and further shall establish the procedures for the appeal. The City Manager or designee shall allow a disqualified bidder to rebut any evidence previously received by the City and to submit additional evidence of qualification.The decision of the City Manager or designee shall be made prior to the receipt of bids to which the prequalification applies and shall be final.

The following purchasing and bid alternatives are expressly approved and may be used in the discretion of the supervising City department. Where bid procedures are designated, either open market or noticed bids are to be used depending on the amount of the contract. Where professional services are designated, they may be used.

(a) Use of bids of the State of California or of the City of San Mateo that (1) are not older than 12 months and (2) met the general requirements of notice set forth in this ordinance. No further bids need to be obtained.

(b) Use of bids from other cities that (1) are not older than 6 months and (2) met the general requirements of notice set forth in this ordinance. No further bids need to be obtained.

(c) Use of the City forces as the general contractor and the use of bid procedures to select private subcontractors.

(d) Use of the professional services procedures to select consultants for design work and then use of bid procedures to select a contractor for construction.

(e) Use of the professional services procedures for the design-build concept in which the construction and all or part of the design are performed through a team approach. The City contracts with a single entity, the design-builder, to provide both design and construction services. Use of the turnkey process shall be considered a design build process.

(f) Acquisition through the bid procedures of brand name or compatible products and furnishings to assure compatibility with other City products, equipment, or offices or because the brand name or compatible product has superior performance results as determined through either City or other testing.

(g) Use of professional services procedures to obtain a contractor as a consultant and then the use of bid procedures to select subcontractors for construction.

(h) The following procedures may be used only upon a finding by the City Council prior to or concurrent with the award of contract that the procedures are in the best interests of the City for the particular contract:

(1) Use of professional services procedures to obtain a contractor as a consultant and then the use of professional services procedures to select subcontractors for construction.

(2) Use of professional services procedures to select consultants for design work and then use of the professional services procedures to select a contractor for construction.

(3) Use of any other procedures approved by the City Council not set forth in this section.

The failure to comply with the provisions of this chapter shall not invalidate or set-aside any expenditure or contract. No section of this chapter shall impose a mandatory duty on the City, or on any officer, official, agent, employee, board, or council thereof. Instead, if any section purports to impose a mandatory duty of enforcement, said section shall be deemed to invest the City, and the appropriate officer, official, agent, employee, board, or council with discretion to enforce the section or not to enforce it.

The Finance Director shall make a quarterly report to the City Council of purchases/contracts by the City between $25,000-$100,000, including department and type of contract, date of award, names of vendors/consultants, amount of contract, quotations received, exceptions, procedures used, and pre-qualification questions.