Simi Valley Municipal Code Art. 2 Purchasing and Contracting for Supplies, Equipment, Maintenance Services,…

Purchases and contracts for supplies, equipment, maintenance services, and public projects shall be made pursuant to the following competitive bidding procedures which follow in this article. The estimated value of purchases and contracts shall include sales tax and freight.

(a) Bidding waived based on estimated value. Purchases and contracts of an estimated value in the amount of $7,500.00 or less may be made without competitive process.

(b) Open market bidding procedures. Purchases and contracts of an estimated value in the amount of $45,000.00.00 or less may be made by open market bidding procedures pursuant to the provisions of Section 2-9.204 of this article, except as otherwise provided in this section.

(c) Informal bidding procedures. Purchases and contracts of an estimated value in the amount of $175,000.00 or less may be made by informal bidding procedures pursuant to the provisions of Sections 2-9.205 and 2-9.206 of this article, except as otherwise provided in this section.

(d) Formal bidding procedures. Purchases and contracts of an estimated value in an amount greater than $175,000.00 shall be made by formal bidding procedures pursuant to the provisions of Sections 2-9.205 and 2-9.207 of this article, except as otherwise provided in this section.

(e) Exceptions. The bidding procedures and force account restrictions set forth in this article shall be dispensed with when bidding would be impossible, impractical, or incongruent; in an emergency; when the price is controlled by law; when the commodity, maintenance service, or project can only be provided or performed by one vendor (including in cases in which standardization of City equipment would result in savings to the City); or when the estimated value of the purchase or contract is $7,500.00 or less. For the purposes of this section:

(1) "Impossible" shall mean actual impossibility or extreme and unreasonable difficulty or expense.

(2) "Impractical" shall mean incapable of being performed by the bid procedure.

(3) "Incongruous" shall mean not suitable to the bid procedure.

(4) "Emergency" shall mean circumstances or conditions that pose an immediate threat to the public health, welfare, or safety as determined by the City Manager, including, but not limited to, states of emergency as defined in Section 8558 of the Government Code of the State.

(f) Cooperative agreements. No provision of this article shall be interpreted or construed to prohibit or prevent the City from purchasing or contracting for supplies, equipment, maintenance services, or Public Projects by contracts, arrangements, and agreements for cooperative purchasing programs not otherwise prohibited by law with any Federal government agency, the State, the County, the Simi Valley Unified School District, the Rancho Simi Recreation and Park District, any other public agencies, or with any cooperative purchasing alliance acting on behalf of governmental entities. Any such contract, agreement, or arrangement otherwise subject to open market or informal bidding procedures shall be first approved by the Purchasing Agent and if subject to formal bidding procedures shall be first approved by the City Council, or by the City Manager in accordance with the stated purchasing authorities set forth in this chapter. Cooperative multi-year agreements are allowed when initial year funding for ongoing requirements is provided in the budget and the City's agreement with the vendor allows the City to terminate the agreement without additional cost to the City if funding is subsequently not appropriated by the City Council. At the discretion of the appropriate approving authority, the bidding procedures of any agency may be used in such joint contracting arrangements. For purposes of this chapter, cooperative agreements include "piggyback" agreements under which a vendor with a currently operative contract with another public agency obtained through a competitive process agrees to provide the same supplies, equipment, maintenance services or Public Project work to the City at an equal or better price as that provided to the originating public agency.

(g) Purchasing cards. The Purchasing Agent may establish or continue a program for the use of purchasing cards to facilitate the purchase of goods and services by authorized individuals on behalf of the City. A purchasing card program shall adhere to the provisions of this chapter and to policies and procedures approved 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)

In cases of great emergency, as determined by the governing body of the City, including, but not limited to, states of emergency defined in Section 8558 of the Government Code, when repair or replacement is necessary to permit the continued conduct of the operation or services of a public agency or to avoid danger to life or property, the City Council by a four-fifths (⅘) vote, may direct the City Manager to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the City Council, by contract, or by a combination of the two (2). The City Council, by a four-fifths (⅘) vote, may delegate to the City Manager the power to declare a public emergency subject to confirmation by the City Council, by a four-fifths (⅘) vote, at its next meeting. The City Council shall review the emergency action every fourteen (14) days thereafter until the action is terminated, to determine, by a four-fifths (⅘) vote, that there is a need to continue the action. When the City Council reviews the emergency action, it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.

(§ 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) Mayor. The Mayor shall be authorized to sign on behalf of the City all approved contracts provided for in this article. In the absence of the Mayor, the Mayor Pro Tempore shall be so authorized.

(b) City Manager. The City Manager shall be authorized to sign on behalf of the City all contracts provided for in Section 2-9.206 of this article and such other approved contracts as the Council may specifically direct from time to time.

(c) Purchasing Agent. The Purchasing Agent shall be authorized to sign on behalf of the City all contracts provided for in Section 2-9.204 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 as otherwise provided in subsections (a), (e), and (f) of Section 2-9.201 of this article, the solicitation of bids and award of contracts for supplies, equipment, maintenance services, or Public Projects with an estimated value in the amount of $45,000.00 or less may be made by the Purchasing Agent in the open market in accordance with the following procedures:

(a) Minimum number of bids. Open market purchases, whenever possible, shall be based on at least three (3) bids and shall be awarded to the lowest responsive and responsible bidder.

(b) Notices inviting bids. The Purchasing Agent shall solicit bids from prospective vendors by written requests, by telephone, by facsimile or electronic mail, or by other advertising.

(c) Written records of bids. Written records of bids received shall be maintained by the Purchasing Agent in accordance with the City's records retention schedule. Such records, while so kept, shall be open to public inspection and shall include the business name, address, and telephone number of the vendor; vendor representative; description of the bid items, including unit quantities if applicable, unit prices or lump sum amount quoted by the vendor; and the date the bid was received.

(§ 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 following provisions shall apply in purchasing or contracting for supplies, equipment, maintenance services, or public projects under both informal and formal bidding procedures:

(a) Notices inviting bids. Notices inviting bids shall be prepared describing the bid items in general terms; referencing how to obtain more detailed information about the bid items; and stating the time, date, and place for the submission of sealed bids.

(b) Material changes to the bid. If a material change to the bid specification is issued by the City later than seventy-two (72) hours prior to the opening of bids, the date and time shall be extended by no less than seventy-two (72) hours. The term "material change" means a change with a substantial cost impact on the total bid as determined by the City.

(c) Base contract. Bid specifications which include one or more alternative bid schedules, shall identify and define the base bid for the purpose of awarding to the lowest responsive and responsible bidder.

(d) Bid opening procedure. Sealed bids shall be submitted to the Purchasing Agent and shall be identified as bids on the envelope. Such bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening. An electronic bidding system that complies with Public Contract Code Sections 1600 and 1601 or any successor or replacement provisions thereto may be used to receive sealed bids over the Internet.

(e) Records of bid documents. Bid documents received by the City shall be maintained by the City department issuing the bid in accordance with the City's records retention schedule.

(f) Award of contracts. Contracts shall be awarded by the City to the lowest responsive and responsible bidder. In awarding a bid, the City may consider other factors in conjunction with the price quotation. Such factors may include, but shall not be limited to, special bid specifications, the availability of labor and/or materials, or administrative/processing considerations.

(g) No bids received. In the event no bids are received, the City shall have the option of any of the following:

(1) Abandoning the purchase or project;

(2) Rebidding the purchase or project;

(3) Bid items defined as public projects may be performed by employees of the City by force account;

(4) Awarding the contract using any other method deemed appropriate by the City, including a negotiated contract.

(h) Rejection of bids. At the discretion of the City, any bid presented may be rejected. In the event all bids are rejected, the City shall have the option of any of the following:

(1) Abandoning the purchase or project;

(2) Rebidding the purchase or project using the appropriate bidding procedures;

(3) For informal bid items defined as public projects, performing the project by employees of the City by force account. For formal bid items defined as public projects, the City Council can, after reevaluating the cost estimates of the project, pass a resolution by a four-fifths (⅘) vote declaring that the project can be performed more economically by the employees of the City performing the project by force account; or

(4) For bid items defined as supplies, equipment, or maintenance services, awarding the contract using any other method deemed appropriate by the City, including a negotiated contract.

(i) Tie bids. If two (2) or more bids are received from responsive and responsible bidders for the same total amount or unit price, and are the lowest, the City may accept the bid it chooses.

(j) Written contracts. Written contracts in the form approved by the City Attorney shall be used in the award of bids.

(k) Bidders' security. When deemed necessary by the Council, the City Manager, or Department Head of the requesting agency, security may be prescribed in the bid specifications in an amount equal to ten (10%) percent of the bid quotation. Bidders shall be entitled to the return of bid security if they are the unsuccessful bidder, or upon the execution of the contract and furnishing all documents required by the bid. A successful bidder may be required to forfeit its bid security upon refusal or failure to execute the contract, or upon failure to furnish required documents within the time period specified in the bid specifications. In the event the successful bidder fails to execute the contract, or furnish required documents, the City may award the contract to the next lowest responsive and responsible bidder.

(l) Performance bonds. The Council, City Manager, or Department Head of the requesting agency shall have the authority to require a performance bond for satisfactory completion before entering into a contract in such amount as reasonably necessary to protect the best interests of the City.

(m) Alternative procedure for purchases not public projects. If a purchase does not involve a public project as defined under this chapter, the Purchasing Agent may authorize alternative bidding procedures that vary from the informal and formal bidding procedures set forth in this chapter as allowed by law, but that otherwise comply with the other requirements 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)

Except as otherwise provided in subsections (a), (d), and (e) of Section 2-9.201 and in Section 2-9.202 of this article, the solicitation of bids may be authorized by the Purchasing Agent and the award of contracts for supplies, equipment, maintenance services, or public projects with an estimated value in the amount of $175,000.00 or less may be made by the City Manager in accordance with the requirements of the Public Contract Code and the following informal bidding procedures:

(a) Budgetary authorization. The bid items shall have been authorized as a part of an approved budget of the City, and the purchase or contract shall not exceed the amount so authorized.

(b) Issuance of notices. Notices inviting informal bids shall be issued at least ten (10) calendar days before the due date of the submission of bids as follows:

(1) Mailed, faxed, or e-mailed to all firms on the bidders list or contractors list for the category of work being bid;

(2) For bid items defined as public projects, mailed, faxed, or e-mailed to either or both of the following:

(i) All construction trade journals designated by the Commission,

(ii) Contractors on the contractors list for the category of work being bid;

(3) May be posted on the City's website; and

(4) Other mailings, advertisements, and notifications as deemed appropriate by the Department Head of the requesting agency.

(c) Bids received in excess of $175,000.00. If all bids received are in excess of $175,000.00, the City Council may, by adoption of a resolution by a four-fifths (⅘) vote, award the contract to the lowest responsive and responsible bidder if it determines the cost estimate of the issuing Department was reasonable and the low bid does not exceed $187,500.00.

(§ 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 as provided in subsections (d) and (e) of Section 2-9.201 of this article, the solicitation of bids and award of contracts for supplies, equipment, maintenance services, or public projects with an estimated value in excess of $175,000.00 shall be made in accordance with the requirements of the Public Contract Code and the following formal bidding procedures:

(a) Plans and specifications. The City Manager shall adopt any plans, specifications, and working details as appropriate for the bid items prior to a solicitation for formal bids, and may delegate such adoption to the Purchasing Agent.

(b) Sending, mailing, and publishing of notices. Notices inviting formal bids shall be published, sent, and mailed as follows:

(1) For bid items defined as public projects, sent electronically, by either facsimile or electronic mail and mailed to all construction trade journals designated by the Commission at least fifteen (15) calendar days before the date of the bid opening;

(2) Sent electronically, by facsimile or electronic mail, or mailed to all firms on the bidders list at least fifteen (15) calendar days before the date of the bid opening;

(3) Published at least once in a newspaper of general circulation, printed and published in the City, at least fourteen (14) calendar days before the date of the bid opening;

(4) May be posted on the City's website; and

(5) Other mailings, advertisements, and notifications deemed appropriate by the Department Head of the requesting department or agency.

(§ 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 City recognizes that local businesses make significant contributions to the economic health of the City. The City supports local business opportunities, which encourage businesses to move into and stay within the City, promote economic development and maintain a strong local economic base, which in turn foster economic growth in the City. Therefore, the City Council has determined it is in the City's best interest to establish and provide a preference to local businesses.

(a) Competitive bid process. The City manager is authorized to extend a preference to a responsible and responsive local business in a competitive bid for the procurement of supplies, equipment, and materials not to exceed five (5%) percent of the local businesses total bid price, or $2,500.00, whichever is lower, for the purpose of determining the lowest bid.

(b) Local preference. When a non-local business has submitted the lowest responsive and responsible bid, and when one or more local businesses have also bid, the local business's total bid amount will be reduced by five (5%) percent for bid comparison purposes. If the net amount is lower than the lowest bid, the bid will be awarded to the local business for the full amount of its bid.

(c) Local business. For purposes of this chapter, "local business" means a vendor or contractor that has an office with at least one employee physically located within the City of Simi Valley, who possesses and shows evidence of a current business tax certificate issued by the City.

(d) Exemptions. The local business preference does not apply to the following:

(1) Bids for public projects as defined by Public Contracts Code Sections 20161 and 22002,

(2) Bids funded by grants which prohibit the use of preferences, and

(3) Contracts for services.

(§ 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)