Sebastopol Municipal Code Ch. 3.40 Purchasing and Disposal of Surplus Material

A purchasing system is hereby adopted in order to establish efficient procedures for the acquisition of supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases.

The City Manager is designated as the purchasing authority for the City. He/she may delegate the duties of purchasing to any other City employee. The purchasing officer shall have the authority to:

A. Unless otherwise provided by law, purchase or contract for supplies, services, equipment, and professional services by any using department in accordance with the purchasing procedures prescribed herein, such administrative policies as the City Manager shall adopt for the internal management and operation of the purchasing system and such other rules and regulations as shall be prescribed by the City Council;

B. Negotiate and recommend execution of contracts for the purchase of supplies, service and equipment;

C. Act to procure for the City the needed quality in supplies, services and equipment at least expense to the City;

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

E. Prepare and recommend to the City Council rules governing the purchase of supplies, services and equipment for the City;

F. Prepare and recommend to the City Council revisions and amendments to the purchasing rules;

G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

H. Prescribe and maintain such forms as reasonably necessary for the operation of the ordinance codified in this chapter and other rules and regulations;

I. Supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

J. Maintain a bidders’ list, vendors’ catalog file and records needed for the efficient operation of the purchasing system;

K. Join with other governmental agencies in joint purchasing endeavors where the purchasing procedures conform to the ordinance and State law.

The purchasing officer may authorize in writing any City department to purchase or contract for specified supplies, services and equipment. He/she shall ensure that such purchases or contracts by other governmental agencies are made in conformance with the procedures established by law and that such purchases or contracts by City departments are made in conformance with this chapter.

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation against which the purchase is to be charged.

Purchase of supplies, services and equipment in the amount specified in this chapter shall be made only by purchase order.

Public projects, as defined by the Uniform Public Construction Cost Accounting Act and in accordance with the limits listed in Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq., of the Public Contract Code.

A list of contractors 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.

Where a public project is to be performed which is subject to the provisions of this chapter, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid as shown on the list developed in accordance with SMC 3.40.061 unless the product or service is proprietary. Additional contractors may be notified at the discretion of the department/agency soliciting bids, provided however:

A. If there is no list of qualified contractors maintained by the City for a particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission.

B. 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.

The City Manager and the Administrative Services Director are each authorized to award informal contracts pursuant to this section.

Purchases and contracts for supplies, services, and equipment in an amount exceeding the limits set forth in SMC 3.40.060 and those associated with a public project in accordance with the California Public Contract Code shall be by written contract with the lowest responsible bidder, pursuant to the procedure described in this section:

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

1. Published Notice. Notice inviting bids shall be published at least 10 days before the date of opening the bids. Notice shall be published at least once. However, in cases of public projects covered by the Public Contract Code, notice shall be published according to that code.

2. Bidders’ List. The purchasing officer may also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders’ list or who have requested their names to be added thereto.

B. Bidders’ Security. All bids presented in connection with a public project as defined in the Public Contract Code shall be accompanied by bidders’ security in the form and amount prescribed by that code, which security shall be dealt with as prescribed therein. In the case of all other major acquisitions, when determined necessary by the purchasing officer, bidders’ security may be prescribed in the public notices inviting bids. In all cases, bidders shall be entitled to a return of bid security; provided, that a successful bidder shall forfeit his/her bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than five calendar days after the bid opening.

D. Rejection of Bids. In its discretion, the City Council may reject any and all bids presented and re-advertise for bids.

E. Award of Contracts. Contracts shall be awarded by the City Council to the lowest responsible bidder except as otherwise provided herein.

F. Tie Bids. If two or more bids received are for the same amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders or may utilize a public drawing.

G. Performance Bonds. The purchasing officer shall have authority to require a performance bond before entering a contract in such amount as he finds reasonably necessary to protect the best interest of the City. If the purchasing officer requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

Purchases of supplies, equipment, and contractual services may be made by the purchasing officer in the open market without observing the procedure prescribed by SMC 3.40.070 where the estimated value, exclusive of sales tax and freight, does not exceed $10,000. Purchases estimated to exceed the above values shall be made in accordance with the procedure prescribed by SMC 3.40.070. However, contracts and purchases covered by the Public Contract Code shall be let to bid in accordance with the provisions of that code.

A. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.

B. Notice Inviting Bids. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, and by public notice posted on a public bulletin board in City Hall.

C. Written Bids. Sealed written bids shall be submitted to the purchasing officer who shall keep a record of all open market orders and bids as public records after the submission of bids or the placing of orders.

The City Council finds that businesses located within the City of Sebastopol suffer from a competitive disadvantage as compared to others in the region by reason of the distance to major interstate highways and regional commercial centers. Therefore, upon the completion of the procedures required within SMC 3.40.080, the determination shall be made relative to “local business” status. This determination shall be made by the City Manager or his/her designee. Should a bid from a qualifying local business be within the established cost limitation and bidding allowance, the requesting purchaser may request the approval of the City Manager, or his/her designee, to authorize the purchase from the local business.

This policy shall not be extended as a guarantee of purchase from local businesses. It shall be at the discretion of the City Manager to determine that the requested purchase meets the standards and quality of similar and like bids.

“Local business status” shall be defined as a business maintaining a site address within the corporate City limits and which possesses a valid City business license. “Bidding allowance” shall be defined as an allowance up to but not exceeding five percent of the bid or cost. “Cost limitation” shall be defined as purchase/bid price for services, supplies and contracts not to exceed $10,000.

The responsibility for the inspection, testing and acceptance of all supplies, equipment and contractual services performed shall rest with the department head concerned.

In order to establish a fair and businesslike procedure for the sale or disposal of surplus City property, the following procedures are hereby established:

A. Prior to release of surplus equipment or materials:

1. Department heads may recommend that property, no longer usable or needed in their opinion, be disposed of. No City property shall be disposed of without prior approval of the Finance Officer and all sales, trades or disposal shall be conducted by the Finance Officer.

2. The estimated value of goods to be disposed of shall be set by the Finance Officer in consultation with the appropriate department head and shall be submitted to the City Manager for approval.

3. Prior to such disposal, Finance Officer shall assure that no other City departments need or can use said equipment or materials, and that no reasonable trade or sale with other public agencies can be made.

B. Procedure for release of surplus equipment or materials:

1. The Finance Director may accept advantageous trade-in allowances for City personal property which has a scrap value of less than $10,000 and which has been determined by the Finance Director to be not further required for public use.

2. The Finance Director may direct sale or otherwise sell or dispose of any personal property belonging to the City not required for public use, subject to such regulations as may be provided by the City Council. He shall pay the proceeds into the City treasury for use of the City. Where the property is exchanged or traded in, he shall secure its value in behalf of the City.

3. Notices of sale shall be posted for not less than five business days preceding the day of sale in the City Hall.

4. In the disposition of any personal property pursuant to this policy, the Finance Director may purchase advertising space and may advertise the proposed sale or other disposition of the personal property in such newspapers, magazines, and other periodicals as in his/her judgment will best publicize the proposed sale or other disposition to those persons most likely to bid for or purchase the personal property.

5. Sale or disposition of real property may be on a competitive sealed bid basis, after the Finance Director has submitted a recommendation to the City Council as to the release and possible competitive sale of said real property.

C. City Employees. City employees are eligible to submit competitive bids for any property offered for sale under this policy. Whenever a City employee is the highest bidder, the City Manager shall determine whether the sale has been properly conducted and shall make a recommendation thereon to the City Council for final award of the sale.