Soledad Municipal Code Ch. 3.24 Purchasing System

In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies 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, a purchasing system is adopted.

(Prior code § 2-9)

The purchasing officer has authority to:

A. Purchase or contract for supplies and equipment required by any using agency in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer adopts and such other rules and regulations as are prescribed by the city council;

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

C. Act to procure for the city needed quality in supplies 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 and equipment for the city;

F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;

G. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other rules and regulations;

H. Supervise the inspection of all supplies and equipment purchases to ensure conformance with specifications;

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;

J. Maintain a bidders' list, vendors' catalog file and records needed for the efficient operation of the purchasing department.

(Prior code § 2-10)

Using agencies shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms.

(Prior code § 2-11)

A. Purchases of supplies and equipment shall be bid by procedures as prescribed by this chapter; provided, that bidding shall be dispensed with (1) when an emergency requires that an order be placed with the nearest available source of supply, or (2) when the amount involved is less than fifty thousand dollars; or (3) when the commodity, product or equipment can be obtained from only one vendor; or (4) when the city council determines, by a resolution passed by four-fifths of its members, that because of differences in the kinds or types of the particular commodity, product or equipment available on the market, it would be to the city's advantage to make a selection on the basis of suitability to the city's needs, rather than on the basis of price; or (5) when the city council determines, by a resolution passed by a majority of its members, that cost and time savings can be realized by using the purchasing procedures and bid results of another public entity in lieu of the bidding policies prescribed by this statute, in accordance with the procedures set forth in subsection C below.

B. An "emergency" exists if:

1. There is a great public calamity;

2. There is immediate need to prepare for national or local defense;

3. There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare or safety;

4. An essential operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in the procurement of the needed item or service.

C. The following rules must be met in every instance in which the city desires to use the in lieu exception set forth in subsection (A)(5) above:

1. The city manager must approve of the use of the exception for a given purchase;

2. The purchasing officer must determine that the bid to be relied upon was made within the preceding twelve months in accordance with applicable law;

3. The purchasing officer must determine that there has been no significant change to the price of the item to be purchased since the time that the relied-upon bid was awarded;

4. If the bid to be relied upon was made by an entity located outside of Monterey County, the purchasing officer must confirm that there is no reason to believe that there would be a significant price difference in the item to be purchased based on the location of available vendors;

5. The city may only purchase the desired supplies or equipment from the vendor identified as the lowest responsible bidder in the relied-upon bid. The purchase officer should also look to the factors set forth in Section 3.24.060(D) for determining the lowest responsible bidder prior to recommending a given purchase;

6. This exception may not be used for any purchase for which bidder's security is required by law;

7. Staff must prepare a report to the city council setting forth compliance with the aforementioned rules, and the city council must approve the proposed purchase at a regular meeting of the city council.

(Ord. 592 § 1, 2002: Ord. 462 § 1 (Exbt. A), 1987: prior code § 2-12)

(Ord. No. 713, § 2, 10-4-2017; Ord. No. 770, § 2, 8-7-2024)

Except in those cases in which the bidding procedures set forth in this chapter are to be followed, all purchases of supplies and equipment shall be made by purchase order. Except in cases of emergency, and except in cases where a purchase has been specifically authorized by the city council, the purchasing officer shall not issue any purchase order for supplies or equipment unless there exists an unexpended balance in the fund account against which the purchase is to be charged.

(Prior code § 2-13)

Except as otherwise provided by this chapter, purchases of supplies and equipment of an estimated value of fifty thousand dollars or more shall be made from the lowest responsible bidder pursuant to the procedure prescribed in the section as follows:

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

Notice inviting bids shall be published at least ten days before the date of opening of the bids. The notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city.

B. Bidder's Security. When deemed necessary by the purchasing officer, or when required by law, bidder's security shall be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the purchase contract within ten 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 differences 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 notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

D. Lowest Responsible Bidder. In addition to price, the "lowest responsible bidder" will be determined by the city council, in its discretion, after the following factors have been considered:

1. The ability, capacity and skill of the bidder to perform the contract or provide the service required;

2. Whether the bidder has the facilities to perform the contract or provide the service promptly, or within the time specified, without delay or interference;

3. The character, integrity, reputation, judgment, experience and efficiency of the bidder;

4. The bidders' record of performance of previous contracts or services;

5. The previous and existing compliance by the bidder with laws and ordinances relating to the contract or service;

6. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the service;

7. The quality, availability and adaptability of the supplies, equipment or services to the particular uses required;

8. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract;

9. The number and scope of conditions attached to the bid.

E. Rejection of Bids. In its discretion, the city council may reject any or all bids presented, waive any informalities or make award on any alternative that may be in the best interest of the city.

F. Performance Bonds. The city council may require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interest of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

G. Identical Bids—None Received. If two or more bids are the same and the lowest, the city council may accept the one it chooses. If no bid is received, the city council, in its discretion, may either:

1. Readvertise; or

2. Direct that the required item or items be purchased without further complying with the provisions of this chapter.

(Ord. 597 § 2, 2002; Amended during 1986 codification; prior code § 2-14)

(Ord. No. 770, § 3, 8-7-2024)

A. Purpose: The purpose of this section is to adjust the monetary limits for construction projects which can be carried out with administrative decision, informally bid, and formally bid projects. It is the intent of the city council that this section shall govern the selection of contractors by the city through the bidding procedures specified in article 1, chapter 2, part 3, division 2 of Public Contract Code section 22000 et seq., the Uniform Public Construction Cost Accounting Act.

B. Definitions: The definitions employed in article 1 of chapter 2, part 3, division 2 of Public Contract Code section 22000 et seq., and their statutory successors shall govern the construction of this section.

Accordingly, a "public project" means any of the following:

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

(ii) Painting or repainting of any publicly owned, leased, or operated facility.

(iii) In the case of a publicly owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher.

A "public project" does not include maintenance work, such as:

(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, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher.

C. Contract Letting Procedures: Except as otherwise provided herein, the provisions of the Uniform Public Construction Cost Accounting Act, Public Contract Code section 22000 et seq., shall be controlling.

1. List of Qualified Contractors: The city shall develop and maintain a list of qualified contractors, identified according to categories of work in accordance with Public Contract Code section 22034 and as determined by the California Uniform Construction Cost Accounting Commission, on an annual basis. City staff shall make an effort to include contact with local contractors in assembling the list of qualified contractors.

2. No Bidding Required: Public projects less than or equal to seventy-five thousand dollars may be performed by city staff, by force account with a contractor, by negotiated contract, or by use of a purchase order, pursuant to section 22032 of the Public Contract Code. Although not required, the city may still seek bids or proposals for such projects on an informal basis where there is reason to believe such inquiry would be advantageous. No-bid contracts shall be awarded by the city manager. All no-bid contracts will be reported to the city council on a monthly basis.

3. Informal Bids: The city shall follow the following informal bidding procedure for public projects of two hundred and twenty thousand dollars or less, or those public projects as specified in either section 22032(b) or section 22020 of the Public Contract Code.

(a) Notice: A notice inviting informal bids shall be sent to: (1) all contractors on the city's list of qualified contractors for the category of work being bid, and (2) all construction trade journals as specified in section 22036 of the Public Contract Code and as named by the California Uniform Construction Cost Accounting Commission.

(i) The mailing of notices to contractors and construction trade journals shall be completed not less than ten calendar days before bids are due.

(ii) The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.

(iii) Bid documents may be transmitted or received over the internet, by facsimile and/or electronic mail.

(b) Authority To Award Bid: The city council shall award informal contracts. The city council may reject any or all bids presented and waive any irregularity or informality in such bids. The contact shall be awarded to the lowest responsive, responsible bidder. If two or more bids are the same and the lowest, the city council may accept the bid of its choice. In the event all informal bids received are in excess of two hundred and twenty thousand dollars, the city council may, by passage of a resolution by a four-fifths vote, award the contract at the amount set forth in section 22034(d) of the Public Contract Code or less to the lowest responsible bidder, if it determines the cost estimate of the responsible department head was reasonable. If no bids are received, the project may be performed by city employees, by force account or negotiated contract without further complying with this section.

4. Formal Bids: The city shall follow the following formal bidding procedure for public projects greater than two hundred and twenty thousand dollars, or as specified in either section 22032(b) or section 22020 of the Public Contract Code.

(a) Plans and Specifications: The city council shall adopt plans, specifications, and working details for all public projects that are formally bid.

(b) Notice: A notice inviting formal bids shall be published and mailed as specified below.

(i) A notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.

(ii) The notice inviting formal bids shall be mailed to all construction trade journals specified in section 22036 of the Public Contract Code and as named by the California Uniform Construction Cost Accounting Commission, at least thirty calendar days before the date of opening the bids.

(iii) The notice inviting formal bids shall be published in a newspaper of general circulation printed and published within the jurisdiction of the city, or if none exists, in a newspaper of general circulation which is circulated within the jurisdiction of the city, at least fourteen calendar days before the date of opening the bids.

(iv) In addition to notice required by this section, the public agency may give such other notice as it deems proper.

5. Procedure for the Award of Formal Bids:

(a) Contracts shall be awarded by the city council. If a contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City Council may accept the bid of its choice in the formal bidding process.

(b) The city council has the discretion to reject any bids presented.

(c) The city council has the discretion to reject all bids, if:

(i) The city council declares that the project may be more economically performed by employees of the city; and

(ii) The city furnishes written notice to the apparent low bidder that informs the bidder of the agency's intention to reject the bid. Such notice shall be mailed at least two business days prior to the public hearing at which the city council intends to reject the bid.

(d) If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the option of either of the following:

(i) Abandoning the project or readvertising for bids in the manner described by this section; or

(ii) By passage of a resolution by a four-fifths vote of the city council, declaring that the project can be performed more economically by the employees of the public agency, may have the project done by force account without further complying with the Uniform Public Construction Cost Accounting Act or this section.

(e) No Bids Received: If no bids are received through the formal procedure, the project may be performed by the employees of the city by force account, or negotiated contract without further complying with the Uniform Public Construction Cost Accounting Act or this section.

6. Emergencies: In the case of emergency when repairs or replacements are necessary, the governing body may proceed at once 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, by contractor, or by a combination of the two. If the city chooses not to give notice for bids to let contracts, the City must comply with the provisions of the Uniform Public Construction Cost Accounting Act, Public Contract Code section 22050 et seq.

(Ord. No. 735, § 2, 10-7-2020; Ord. No. 772, §§ 2, 3, 6-4-2025)