South El Monte Municipal Code Ch. 3.16 Purchase of Supplies, Equipment, and Services

It shall be the policy of the city to secure services, supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases and to assure the quality of purchases.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The procedures set forth in this chapter shall not apply to contracts for "public projects" or "maintenance work" as defined in California Public Contract Code Section 22002 or any successor statute, which are governed by the procedures set forth in Chapter 3.18 (Public Projects) of this title.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The authority and responsibility for the purchase of services, supplies, and equipment for the city shall be vested in the city manager or his or her designee. The city manager or his or her designee shall purchase services, supplies and equipment in accordance with the procedures prescribed in this chapter.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The "city manager approval threshold" is the maximum unit price of an individual item that the city manager may purchase without submitting to formal competitive bidding procedures as defined in this chapter. The city manager approval threshold shall be fifty thousand dollars.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

A. Written Contract Required. The provision of services of an estimated value greater than fifty thousand dollars shall be by written contract awarded in accordance with the procedures set forth in this chapter.

B. Special Procedures. The following special procedures shall apply to the provision of services:

1. Performance of Services on Private Property. Notwithstanding the provisions of subsection A of this section, where the provision of services requires the service provider to perform work on private property, regardless of the dollar amount of the proposed work, such services shall be by written contract, which shall include, but not be limited to, insurance and indemnity requirements satisfactory to the city attorney, awarded in accordance with the procedures set forth in this chapter.

2. Protection of City. Notwithstanding the provisions of subsection A of this section, a written contract shall be required for the provision of services, regardless of the dollar amount of the proposed services, if, in the opinion of the city manager or department director, a written contract is necessary to protect the city from increased liability that could arise from the performance of those services. Any written contract required pursuant to this subsection shall include, but not be limited to, insurance and indemnity requirements satisfactory to the city attorney.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

A. Purchases of supplies and equipment and provision of services of an estimated value greater than fifty thousand dollars shall be by written contract with the bidder who, after notice, offers the city, as determined by the city council in its sole discretion, the best combination of price and quality. For the purposes of this chapter, "notice" shall mean a notice inviting formal written competitive bids in accordance with the provisions of this section.

B. Any notice required by this section shall be published in a newspaper of general circulation printed and published in the city, or if there is none then in a newspaper serving the area. The city manager shall also mail a copy of such notice to anyone who has requested to be so notified.

C. All notices required by this section shall be published not less than ten days prior to the date specified for the opening of the bids.

D. When deemed necessary by the city manager, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to the return of bid security, provided that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed. The time to sign the agreement before forfeiting the bidder's security shall be extended for delay caused by the city.

E. The city council shall award all bids under this section. On refusal or failure of the successful bidder to execute the contract, the council may award the bid to another bidder based upon the appropriate criteria provided in subsection A of this section. If for that reason the council awards the contract to another bidder, the amount of the first awardee's security shall be applied by the city to the difference in the amount of the bid between the first awardee and the second awardee, and the surplus, if any, shall be returned to the first awardee.

F. Bids shall be submitted to the city clerk and shall be so identified on the envelope. Bids shall be submitted in writing and must be received prior to the bid closing date to be considered. Bids shall be opened at the time and place specified in the notice inviting sealed bids. The city clerk shall retain copies of all bids received by the city manager and shall make the bids available for public inspection during regular business hours for not less than two years following the bid opening. Notwithstanding the foregoing, bidder proprietary information shall not be available for public inspection.

G. The council may reject any and all bids, waive any irregularity in any bid, or re-advertise for bids.

H. If two or more bids received for supplies and equipment are for the same total amount or unit price, the council may accept the bid it considers best meets the needs of the city.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

Provision of services or purchase of supplies and equipment of an estimated value of $50,000 or less may be made by the city manager in the open market without observing the formal bid procedure prescribed by Section 3.16.040 of this chapter, in accordance with the following procedures:

A. The city manager may purchase services, supplies, and equipment of an estimated value of fifty thousand dollars or less in the open market. Purchases in excess of five thousand dollars but less than or equal to fifty thousand dollars shall be based on at least three informal bids solicited annually and shall be awarded as follows:

1. Bids for the purchase of supplies and equipment shall be awarded to the lowest responsible and responsive bidder as reflected in the informal bids. The city manager may reject any and all bids, waive any irregularity in any bid, or re-solicit bids.

2. Bids for services shall be awarded to the bidder who, after the informal bid process, offers the city, as determined by the city manager in his or her sole discretion, the best combination of price and quality.

B. Informal Bid Defined. For the purposes of this chapter, "informal bid" means bids solicited by the city manager or his or her designee. Copies of all written proposals received and the city manager's or his or her designee's written documentation or notes confirming bids and the confirming documentation provided by the bidder(s) shall be retained for public inspection during regular business hours for not less than two years after receipt. Notwithstanding the foregoing, vendor proprietary data shall not be open for public inspection.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The city manager may purchase services, supplies and equipment for which the city would normally follow its own bid procedures from a vendor awarded a bid by another public agency if the agency utilized procedures substantially the same as those normally utilized by the city. The amount of the purchase shall be based on the price bid in the other jurisdiction.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The services of attorneys, physicians, architects, engineers, consultants, auditors, or other individuals or organizations possessing a high degree of professional, specialized technical skill or expertise, may be made without following bid procedures.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The city attorney shall approve as to form, the general forms of contracts, notice inviting bids, general provisions of bid specifications, request for proposals, and other purchasing forms, as needed, to be used by the city. Use of a purchase order to streamline the ordering process is encouraged but not required. The following exceptions are allowed:

A. Purchases of less than twenty-five hundred dollars;

B. Utility bills, rents and lease payments;

C. Purchases made by credit cards authorized by the city manager, provided such purchases conform to the written policy established by the city manager or his or her designee. The customer's copy of the invoice shall be delivered to the finance director for approval for payment;

D. Purchases of supplies and equipment over fifty thousand dollars shall be by written contract;

E. Purchases of services shall conform to the applicable procedures set forth in Section 3.16.030 of this chapter.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

Emergency purchases required due to natural disasters or other unforeseen circumstances may be made according to the city's emergency operations plan. Prior approval must be given by the city manager, if available, or by the assistant city manager if the city manager is absent.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

A. All invoices requiring a purchase order shall be submitted directly to the department head by the supplier of the equipment, supplies or services. Each invoice shall be dated and signed by the department head or his or her designee and submitted to the finance director for payment.

B. Payment disputes will be resolved by the finance director.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The city manager shall sell worn-out, scrap, or obsolete personal property, or exchange the same for, or trade in the same on new supplies and equipment, including property of all departments, by soliciting bids. No bids will be accepted from city employees or contractors. If the value of the property to be sold is of a value of two thousand dollars or less, the sale shall be approved by the city manager. In the event the value of the property to be sold is more than two thousand dollars, the sale shall be subject to the approval of the city council.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

Sections 3.16.040 and 3.16.050 of this chapter shall not apply to the purchase of services, supplies and equipment under any of the following circumstances:

A. The city manager finds that such services, supplies or equipment are unique because of the quality, durability, availability, or fitness for a particular use and are available from only one source; or

B. The city manager finds that exigent circumstances require the immediate purchase of such services, supplies or equipment;

C. The city council finds that due to the nature of the services, supplies or equipment, bidding is not likely to result in the lowest price; or

D. The city manager or the city council, as specified herein, determines that, due to unique circumstances or unusual factors, the award for the purchase of services, supplies or equipment from a source other than the lowest responsible bidder is in the best interest of the city.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

The city manager shall require that all services, supplies and equipment are inspected and in conformity with the specifications set forth in the order or contract. The city manager shall have authority to require chemical and physical tests of samples submitted with the bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)

A. Notwithstanding Sections 3.16.040 and 3.16.050, in the evaluation of all bids and/or costs estimates for city purchase contracts for materials, supplies, equipment or services pursuant to this chapter, or in selecting a contractor for a city contract in which the city selects a business for the contract on the basis of comparison of the price of bids or estimates, the city shall provide local businesses with a preference as shall be determined by resolution of the city council.

B. For purposes of this section, "local business" shall mean any business which has or maintains a fixed office, distribution point, or place of business within the city and whose business address is not a post office box, and which is shown by records maintained by the city's finance department as having secured and paid all necessary business licenses and applicable fees and taxes imposed by the city.

C. This section shall not be applicable in the following circumstances:

1. Where application of this chapter would violate or be prohibited by any applicable state or federal law;

2. Where the awarding authority finds the preference to be an unacceptable loss of government revenue or funding;

3. Where payment is made in whole or in part from sources other than city funds.

D. No person shall make any intentional misstatement or misrepresentation in order to obtain a preference under this section.

(Ord. 1199 §1, 2015; Ord. 1282, 5/6/2025)