Simi Valley Municipal Code Art. 1 General

The purpose of this chapter is to establish procedures for purchasing supplies and equipment; contracting for maintenance and consultant services; contracting for public projects in conformance with the requirements of Article 3 of Chapter 2 of the Public Contract Code of the State; and disposing of City-owned personal property.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

(a) "City" shall mean and include the City of Simi Valley, the Ventura County Waterworks District No. 8, and such other districts, authorities, or agencies as may be governed by the members of the Council.

(b) "Council" shall mean and include the City Council of the City of Simi Valley, the Board of Directors of the Ventura County Waterworks District No. 8, and the governing boards of such other districts, authorities, or agencies as may be governed by the members of the Council.

(c) "City Manager" shall mean and include the City Manager of the City of Simi Valley, the District Manager of the Ventura County Waterworks District No. 8, and the general manager or chief executive officer of such other districts, authorities, or agencies as may be governed by the members of the Council, and his or her designee.

(d) "City Attorney" shall mean and include the City Attorney of the City of Simi Valley, the District Counsel of the Ventura County Waterworks District No. 8, and the chief legal officer of such other districts, authorities, or agencies as may be governed by the members of the Council.

(e) "Public Contract Code" shall mean the Public Contract Code of the State.

(f) "Commission" shall mean the California Uniform Construction Cost Accounting Commission as established by Section 22010 of Chapter 2 of the Public Contract Code.

(g) "Supplies" shall mean materials, tools, and other goods or commodities used in the conduct of City business.

(h) "Equipment" shall mean furnishings, vehicles, rolling stock, and other personal property items used in the conduct of City business.

(i) "Public Project" shall mean the following as defined in Chapter 2, Section 22002 of the Public Contract Code:

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

(2) Painting or repainting of any publicly owned, leased, or operated facility;

(3) In the case of a publicly owned utility system, "Public Project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher;

(4) "Public Project" does not include maintenance work. For purposes of this section, "maintenance work" includes all of the following:

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

(ii) Minor repainting;

(iii) Resurfacing of streets and highways at less than one inch;

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

(v) Work performed to keep, operate and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

(5) "Facility" shall mean any plant, building, structure, ground facility, utility system, subject to the limitation found in subsection (i)(3) of this section, real property, streets and highways, or other public work improvement.

(j) "Bidders list" shall mean a list of responsible prospective vendors capable of providing the items being bid.

(k) "Contractors list" shall mean a list of contractors qualified to perform or construct Public Projects identified according to categories of work which shall be developed and maintained by the Department of Public Works using the minimum criteria established by the Commission for the development and maintenance of such lists.

(l) "Consultant" shall mean any specially trained and experienced person, firm, or corporation providing special services or advice on financial, economic, accounting, architectural, engineering, legal, insurance, data processing, personnel, administrative, or similar matters. Consultant shall also include all contracts for outside assistance and contract help on an individual basis or through an outside agency.

(m) "Purchase" shall include rental, lease, or trade.

(n) "Responsible" bidder shall mean a bidder who has demonstrated the attribute of trustworthiness, as well as the quality, fitness, capacity, and experience to satisfactorily perform the proposed work as specified.

(o) "Responsive" bidder shall mean that the bidder promises to do what the bidding instructions demand.

(p) "Purchasing Agent" shall mean the purchasing officer for the City of Simi Valley, the Ventura County Waterworks District #8, and such other districts, authorities, agencies, or boards as may be governed by the members of the City Council.

(q) "Department Head" shall mean the director of any department, office, or agency of the City, as may be designated by the City Manager.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

The position of Purchasing Agent is hereby created. The Purchasing Agent shall be appointed by the City Manager.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

The duties of the Purchasing Agent may be combined with those of any other office or position. The Purchasing Agent shall have authority to:

(a) Promulgate and enforce such administrative rules and regulations as required and necessary to carry out the intent and purposes of this chapter;

(b) Purchase or contract for the supplies, equipment, maintenance services, or Public Projects required by any requesting agency in accordance with the purchasing procedures set forth in this chapter and other administrative rules and regulations as may be established;

(c) Act to procure for the City the needed quality in supplies, equipment, maintenance services, and Public Projects at the least expense to the City;

(d) Endeavor to obtain as full and open competition as possible on all purchases and contracts;

(e) Keep informed of the current developments in the field of purchasing and contract administration as well as prices, market conditions, and new products;

(f) Prescribe and maintain such forms as are reasonably necessary for the operation of the provisions of this chapter and other administrative rules and regulations as may be established;

(g) Supervise the inspection of all supplies and equipment to determine their conformance with the specifications set forth in the order to contract;

(h) Obtain chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. The City may pay the costs of such tests or may require that the costs of such tests be paid by the bidder;

(i) 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 agency or which have become unsuitable for City use; and

(j) Maintain bidders lists, vendor catalog files, and other records needed for the efficient operation of the purchasing function.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

The Purchasing Agent may authorize any Department Head to purchase or contract for specified supplies, equipment, maintenance services, and Public Projects independently of the Purchasing Agent, but the Purchasing Agent shall require that such purchases or contracts be made in conformance with the procedures established by this chapter, and other administrative rules and regulations as may be established, and may further require periodic reports from such agency regarding the purchases and contracts made under such authorization. The Purchasing Agent may authorize Department Heads signature authority for purchases or contracts as described in this paragraph up to a limit of $7,500.00. Such authority, if authorized generally for Department Heads as provided herein, will also apply to the City Attorney.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

Using departments and agencies shall submit purchase and contract requests for supplies, equipment, maintenance services, and Public Projects to the Purchasing Agent by standard requisition procedures prior to initiating any procurement, except for those exemptions authorized in Section 2-9.105 of this article.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for supplies, equipment, maintenance services, and Public Projects unless there exists an unencumbered appropriation against which such purchase is to be charged.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

Purchases and contracts shall not be staged or separated into smaller units of work for the purpose of evading the competitive bidding procedures or authority limits of this chapter.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

The competitive bidding procedures set forth in this chapter are not applicable to certain purchases. The following are exempt from the competitive bidding requirements of this chapter, but are subject to all other purchasing procedures, including but not limited to authority limits, unless otherwise noted below:

(a) Travel expenses;

(b) Subscriptions;

(c) Trade journals or books;

(d) Newspaper advertisements and notices;

(e) Reimbursement of expenses;

(f) Medical payments;

(g) Insurance;

(h) Insurance claims;

(i) Conference fees;

(j) Banking services;

(k) Temporary outside employment assistance on an individual basis or through an outside agency;

(l) Postage;

(m) Courier/delivery services;

(n) Utility connection/installation/service charges;

(o) Dues to approved organizations;

(p) Payments to other government entities/agencies;

(q) Land;

(r) Debt services/collections;

(s) Claim settlements;

(t) Grants.

Items (f) ("Medical payments"), (g) ("Insurance"), (j) ("Banking services"), (l) ("Postage"), (n) ("Utility connection/installation/service charges"), (p) ("Payments to other government entities/agencies") and (r) ("Debt services/collections") are further not subject to the authority limits in this chapter, to the extent such obligations or expenses customarily exceed those authority limits in the ordinary course of City business, as determined by the City Manager, and are within budgeted amounts; and further, aggregate terms of the contracts of such items after renewal in the course of business may exceed the contract term limits elsewhere set forth in this chapter. Although not subject to the competitive bidding processes of this chapter, all existing policies, procedures, laws, and/or regulations shall be followed for the above referenced purchases.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)

(a) Contract authority limits. For purposes of this chapter, contract or purchasing authority directly provided through this chapter to specified city officials accrues on a yearly basis. Any purchases, or renewals of contracts or purchases, or services with the same party or parties for the same or related project or item within any twelve (12) month period which in the aggregate would exceed the contract authority limits in this chapter, require approval by the City Council, or if such purchase is subject to the authority of the Purchasing Agent, by the City Manager, unless either: 1) a new competitive process has been used; or 2) an exemption from competitive process under Section 2-9.201(e) applies; or 3) in the case of a Department Head purchase exceeding aggregate limits, the purchase is approved by the Purchasing Agent. Contracts are valued by the amount of compensation provided or received by the City, and including any optional renewals; contracts based on a commission or percentage basis are valued on a reasonable estimate of the likely compensation to be received or provided. After consecutive renewals up to an aggregate term of three (3) years, for contracts or purchases in which at least one year's expenditure exceeds $7,500.00, if a new competitive process has not been used or an exemption therefrom does not apply to a contract; or more than six (6) months have not passed after the expiration of the contract or purchase, and further provided that, the total amount expended exceeds the one year authority limit for the signing authority, any further renewals must be approved by the City Council, if subject to the City Manager's authority, or the City Manager, if subject to the Purchasing Agent's authority.

(b) Contract term. Any contract with a term longer than five (5) years including any optional renewals, regardless of contract amount, shall be approved by the City Council, unless otherwise specified in this chapter.

(c) Change orders and amendments. The City Manager has authority to approve change orders and amendments to contracts approved by the City Council up to ten (10%) percent or $100,000.00 of the original contract amount, whichever is less, and may further amend the term of such contracts, when the work is reasonably related to the scope of work authorized under the original contract.

(d) Delegation. City personnel authorized in this chapter may delegate the authority granted in this chapter whenever such delegation is deemed necessary or desirable for the efficient administration of purchasing and contracting activities.

(e) Purchases involving grant funds. The Purchasing Agent can authorize contracting, bidding and purchasing procedures required by the terms of any federal or state grant terms which may differ from the requirements of this chapter.

(f) Gifts or grants to City. The City Manager may accept, and sign any necessary documents related thereto, gifts or grants to the City which do not exceed $10,000.00, and which do not involve policy decisions or significant additional expenditures as determined by the City Manager.

(g) Method of contracting. The City may utilize purchase orders, purchasing cards, written contracts, or verbal purchases (in the case of verbal purchases only, up to a limit of $1,000.00). The Purchasing Agent, with the approval of the City Manager, may specify further parameters and limits for each method of contracting. The City Attorney shall review and approve all standard purchase order forms to be utilized by the City, and shall approve as to form any written contract above an amount set by the Purchasing Agent.

(h) Regulatory penalties. The City Manager is authorized to accept, pay and sign all documents related to regulatory penalties or fines incurred in the regular course of business up to $10,000.00, unless policy decisions are implicated in the payment of such penalties as determined by the City Manager.

(i) Land or real estate interests. The sale, purchase, acceptance or rental of real estate or interests in land, excepting licenses, shall be approved by the City Council, except that the City Manager may approve transactions involving certain real property interests, including but not limited to fee interests, easements, offers of dedication and rights of entry ("Development Real Estate Interests"), provided that such Development Real Estate Interests are part of or directly related to a land use action, environmental mitigation, public works project, entitlement or agreement previously approved by the City, including but not limited to subdivision maps, building permits, or zone changes, or if the right of entry or easement is temporary for a City purpose such as maintenance or other work for the public benefit. When any transaction involving real property is approved by an official specifically authorized under this Code, the City Manager or the City Council, the City Manager or designee is authorized to sign any certificate of acceptance required under Government Code 27281 to be recorded.

(§ 1, Ord. No. 1271 and WWD-16, eff. June 15, 2017 as amended by § 1, Ord. No. 1281 and WWD-17, eff. December 14, 2017)