Santa Fe Springs Municipal Code Ch. 34 Finance and Revenue

Footnotes:

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Cross reference— Days public offices closed for business, see § 38.01

To comply with the provisions of Cal. Sts. and High. Code Article 5, Chapter 1, Division 1, there is created in the city treasury a special fund to be known as the "Special Gas Tax Street Improvement Fund."

(Ord. 36, passed 8-22-57; '64 Code, § 2-61)

All money received by the city from the state under the provisions of the California Streets and Highways Code for the acquisition of real property or interests therein or for the construction, maintenance or improvement of streets or highways other than state highways shall be paid into the Special Gas Tax Street Improvement Fund.

(Ord. 36, passed 8-22-57; '64 Code, § 2-62)

All money paid into the Special Gas Tax Street Improvement Fund shall be expended exclusively for the purposes authorized by and subject to all of the provisions of Cal. Sts. and High. Code Article 5, Chapter 1, Division 1.

(Ord. 36, passed 8-22-57; '64 Code, § 2-63)

There is hereby established a purchasing system to set efficient procedures for the purchase of supplies, equipment, and services; to secure for the city supplies, equipment, and services at the lowest competitive cost commensurate with the quality needed; to exercise positive financial control over purchases; and to clearly define authority for the purchasing functions.

(Ord. 1133, passed 11-7-23)

(A) There is hereby created the position of Purchasing Officer, who shall be appointed by the City Manager. The duties of the Purchasing Officer may be combined with those of any other office or position.

(B) The Purchasing Officer of the city, or designee(s), shall have the authority and duty to do the following:

(1) Purchase or contract for supplies, equipment, and services required by any department in accordance with purchasing procedures prescribed by this subchapter, such administrative regulations as the Purchasing Officer shall adopt, and such other rules and regulations as may be prescribed by the City Council or City Manager.

(2) Request quotations, negotiate, and recommend execution of contracts for the purchase of supplies and equipment.

(3) Act to procure for the city the needed quality and quantity of supplies and equipment at least cost to the city.

(4) Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.

(5) Prepare and recommend to the City Manager rules governing the purchase of supplies and equipment for the city.

(6) Prepare and recommend to the City Manager revisions and amendments to the purchasing rules.

(7) Keep informed of current developments in the field of purchasing, prices, market conditions, and new products.

(8) Prescribe and maintain such forms as are reasonably necessary to the operation of the purchasing system.

(9) Supervise the inspection of all supplies and equipment purchased, to ensure conformance with specifications.

(10) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department, or which have become unsuitable for city use.

(11) Maintain a bidders' list, vendors' catalog file, and records needed for efficient operation of the city's purchasing system.

(12) Establish and maintain inventory, storage, and distribution systems.

(13) Support the various departments to enable them to provide their services to the community in a timely manner.

(Ord. 1133, passed 11-7-23)

The City Manager or designee is authorized to adopt written administrative regulations and instructions that are consistent with and that further the terms and requirements set forth within this subchapter. The City Manager or designee from time to time may amend any or all such rules and regulations necessary for the operation of this subchapter.

(Ord. 1133, passed 11-7-23)

Purchases of supplies, equipment, and services shall be made pursuant to the procedures set forth in this subchapter, except for the following:

(A) (1)

Professional and special services, including, but not limited to, financial, economic, accounting, engineering, legal, administrative, technology, education and instruction, medical, and entertainment.

(2) Professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms are required to be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required and need not be competitively bid for the lowest price, but shall be procured through a fair competitive selection process.

(B) Cooperative or piggyback purchasing, which may consist of the following:

(1) Cooperative purchasing with other public agencies, and with nonprofit groups or organizations established by public entities, provided that a competitive bidding process is used.

(2) Contracts with suppliers who have been awarded contracts by the state or other local agencies for the purchase of supplies, equipment, and services under a competitive bidding process.

(3) Purchasing supplies, equipment, or services through bid award lists of others, provided that competitive purchasing procedures similar to those required in the city were employed to create such bid award lists.

(C) Sole source, where the supplies, equipment, or services are unique and available only from one source, or where it would be undesirable or impossible for the city to solicit bids. Sole source procurements may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in the area, or a specified product determined to be the only acceptable product for the city's needs.

(D) Except where competitive bidding is required by federal or state law or funding regulations, equipment, supplies, and services may be procured by negotiated contract and without competition, when bidding is not likely to serve the best interests of the city or to result in the lowest price.

(E) Any procurement for goods that are procured from a bidder who offers the same or better price, terms, and conditions as the bidder previously offered as the lowest responsive bidder under a competitive procurement conducted by the city or another public agency under competitive purchasing procedures similar to those required in the city.

(F) Where the City Council by a 4/5 vote determines to dispense with bidding or other requirements with respect to a particular purchase of supplies, equipment, or services, upon a finding by the City Council that it would be impractical, useless, or uneconomical in such instance to follow bidding or other requirements, and that the welfare of the public would be promoted by dispensing with such bidding or other requirements.

(G) Where competitive bidding is not required by state law in specified circumstances, including, but not limited to, emergency purchases and design-build projects.

(Ord. 1133, passed 11-7-23)

Supplies, equipment, and services less than or equal to $50,000 may be procured by purchase order or negotiated contract and need not be publicly bid but shall be procured at a reasonable price in a manner that best meets the needs of the city. Where possible, efforts shall be made to seek at least three quotations or proposals for the supplies, equipment, or services.

(Ord. 1133, passed 11-7-23)

Except as otherwise provided in this subchapter, procurement of supplies, equipment, and services greater than $50,000 shall be by formal competitive bidding process as set forth herein and awarded to the responsive, responsible bidder who best meets the city's needs based on the criteria specified in the formal solicitation.

(A) Solicitation notice. Notices inviting bids, requesting proposals, or requesting qualifications and experience shall include a general description of the supplies, equipment, or services to be procured, describe how to obtain more detailed information, state where bid forms and specifications may be obtained and state the time and place for submission of bids, proposals, or statements of qualifications and experience.

(B) Review. All responses shall be reviewed and evaluated as set forth in the criteria in the notice inviting bids, requesting proposals, or requesting qualifications and experience. The proposer with the highest evaluated score shall be recommended for award to the City Council.

(C) Rejection of bids/responses. Any and all bids or responses may be rejected at the discretion of the city. After rejecting all bids or responses, the city may:

(1) Abandon the project;

(2) Re-advertise the project; or

(3) Perform the work with city forces.

(D) Tie bids. If two or more bids received are for the same total amount or unit price, quality, and service being equal, and if the public interest will not permit the delay of a new solicitation for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders.

(Ord. 1133, passed 11-7-23)

The approval authority for all purchase orders, contracts, contract amendments and change orders, except for emergencies and public works and construction projects, shall be as follows:

(A) All purchase orders or contracts in excess of $50,000 or change orders or amendments that cause the total contract or purchase order to exceed $50,000 shall be submitted to the City Council for approval. However, vehicle purchases that have been approved by the City Council as part of the budget process do not need to be submitted to the City Council for approval.

(B) The City Manager or designee shall have the authority to execute, on behalf of the city, all purchase orders or contracts for supplies, equipment, and services in an amount not exceeding $50,000 per purchase order or contract, so long as the proper procurement procedures set forth in this subchapter have been followed. The City Manager shall have the authority to approve in writing any change order or amendment to such purchase order or contract so long as the total purchase order or contract amount does not exceed $50,000.

(C) Department heads and the Purchasing Officer or their respective designees shall have the authority to execute, on behalf of the city, all purchase orders or contracts for supplies, equipment, and services in an amount not exceeding $25,000 per purchase order or contract, so long as the proper procurement procedures set forth in this subchapter have been followed. Department heads and the Purchasing Officer shall have the authority to approve in writing any change order or amendment to such purchase order or contract so long as the total purchase order or contract amount does not exceed $25,000.

(D) After the effective date of any contract approved by the City Council for the procurement of supplies, equipment, or services, the City Manager shall have authority to approve in writing any amendment or change order directing an addition, deletion or revision in such contract, including, without limitation, plans, specifications, and the nature or quantity of services, equipment, supplies or work, so long as the cumulative dollar value of all such amendments or change orders relating to any one contract shall not exceed ten percent of the contract price, unless City Council has authorized a different amount for a specific contract.

(Ord. 1133, passed 11-7-23)

Contracts for public works and construction projects in the city shall be governed by applicable state laws including the Cal. Public Contract Code, Division 2, Part 1 and Division 2, Part 3, the Local Agency Public Construction Act, including the Alternate Provisions of the Uniform Public Construction Cost Accounting Act.

(A) Bidding thresholds.

(1) Construction projects less than the amount specified in Cal. Public Contract Code § 22032(a) may be performed by city forces, by negotiated contract or by purchase order.

(2) Construction projects less than the amount specified in Cal. Public Contract Code § 22032(b) may be let to contract by informal bidding procedures, set forth in division (B) below, to the lowest responsible bidder.

(3) Construction projects of more than the amount specified in Cal. Public Contract Code § 22032(c) shall be let by formal bidding procedure, set forth in division (C) below, to the lowest responsible bidder.

(4) It shall be unlawful to split projects into smaller work orders or projects for the purpose of evading the provisions of this subchapter or applicable state laws.

(B) Notice inviting bids, informal bidding. The notice inviting bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids. Notice shall be provided in accordance with either division (B)(1) or (2) below, or both.

(1) The city shall maintain a list of qualified contractors, identified according to categories of work. All contractors on the list for the category of work being bid shall be mailed, faxed, or emailed a notice inviting informal bids unless the product or service is proprietary. All mailing of notices to contractors pursuant to this division shall be completed not less than ten calendar days before bids are due.

(2) The city may elect to mail, fax, or email a notice inviting informal bids to all construction trade journals specified in Cal. Public Contract Code § 22036.

(C) Notice inviting bids, formal bidding. Notices inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the city; or, if there is no newspaper printed and published within the city, in a newspaper of general circulation which is circulated within the city, or, if there is no newspaper which is circulated within the city, publication shall be by posting the notice in at least three places within the city as have been designated by ordinance or regulation of the city as places for the posting of its notices. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in Cal. Public Contract Code § 22036. The notice shall be sent at least 15 calendar days before the date of opening the bids. In addition, the city may also give such other notice as it deems proper, including mailing or e-mailing the notice to prospective vendors and contractors.

(D) Award of bid.

(1) The City Manager, or designee, has the authority to award informal bids up to the amount specified in Cal. Public Contract Code § 22032(b). All formal bids shall be awarded by the City Council. A bid 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.

(2) Pursuant to Cal. Public Contract Code § 22034(d), the City Council may, by adoption of a resolution by a 4/5 vote, award the contract to the lowest responsible bidder at an amount within the limit set forth in Cal. Public Contract Code § 22034(d), if all the bids received are in excess of the amount set forth in Cal. Public Contract Code § 22034(d), if it determines the cost estimate of the public agency was reasonable.

(E) Rejection of bids. Any and all bids may be rejected at the discretion of the city. If the city intends to reject all bids, notice of the city's intent to reject the bid must be given to the apparent low bidder at least two business days prior to the City Council meeting at which the bids will be considered. After rejecting all bids, the city may:

(1) Abandon the project;

(2) Re-advertise the project; or

(3) By a passage of a resolution by a 4/5 vote of the City Council, perform the work with city forces.

(F) No bids. If no bids are received through the formal or informal procedure, the project may be performed by the employees of the city by force account, or by negotiated contract.

(G) Change orders. Change orders are authorized as follows:

(1) The Director of Public Works or designee is authorized to approve one or more change orders not exceeding in aggregate ten percent of the contract award amount.

(2) The City Manager is authorized to approve one or more change orders not exceeding in aggregate 15 percent of the contract award amount.

(3) City Council approval is required for change orders that increase the cost of the project beyond 15 percent of the contract award amount.

(Ord. 1133, passed 11-7-23)

Pursuant to Cal. Public Contract Code § 22050, in the case of an emergency, the City Manager is authorized to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts, so long as the requirements of Cal. Public Contract Code § 22050 are met.

(Ord. 1133, passed 11-7-23)

All departments shall submit to the Purchasing Officer, at such times and in such forms as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The Purchasing Officer shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment.

(Ord. 1133, passed 11-7-23)