St. Helena Municipal Code Art. 2 Supplies, General Services and Equipment

The duties of the purchasing officer may be combined with those duties of any other officer or position in the city. The purchasing officer shall have the authority to:

A. Purchase needed city supplies, general services, equipment and special equipment/supplies which are not included within the construction contract or proposed specifications for a construction contract of a public work being administered by any other city department;

B. Investigate, keep knowledgeable about, negotiate, and recommend on the execution of contracts or the purchasing of supplies, general services, and equipment pursuant to the procedures of this chapter and such administrative rules and regulations as prescribed by the city;

• C. Keep informed of current developments concerning purchasing, prices, market conditions, and new products;

• D. Prescribe and maintain such forms as necessary for the proper operation of this purchasing system;

E. Supervise the inspection of all supplies, general services, and equipment purchased under this chapter in order to assure conformance with city specifications;

• F. Supervise the transfer of surplus and unused supplies and equipment or sale or disposal of such;

• G. Maintain up-to-date bidder’s list, vendors’ catalogs, files and such other records as needed to perform these duties;

• H. Ensure that purchasing specifications are open and nonrestrictive to encourage full competition; and

I. Perform such other tasks as may be necessary for the proper conduct of purchasing of supplies, general services, and equipment. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.010)

No employee, officer, or agent may participate in the selection, award, or administration of a contract if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of their immediate family, their partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. All city employees and persons in city service are required to adhere to applicable local, state, and federal conflict of interest requirements and prohibitions, including but not limited to the provisions of Article 4 of Title 1, Division 4, Chapter 1 of the Government Code, and Title 2 CFR Section 200.318(c)(1), General procurement standards.

A. Reporting of Improper Activities. The city has a responsibility to conduct its affairs ethically and in compliance with the law. City employees and persons in city service are expected and encouraged to promptly raise questions and concerns regarding possible violations of city policy or local, state, or federal law.

B. Enforcement. In addition to any other penalty as provided by law, any employee found to be in violation of the code of ethics shall be subjected to appropriate disciplinary action up to and including employment termination. (Ord. 22-7 § 1 (Exh. A))

Except as authorized under Section 3.04.100(A), any department requesting supplies, general services, equipment, or special equipment/supplies shall submit to the immediate supervisor a requisition on the purchasing officer’s approved form prior to initiating any procurement. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.020)

Except for departmental purchases as authorized in Section 3.04.100(A), purchases of supplies, general services, most special equipment/supplies and general equipment not covered within a construction contract or public works specification may be made only by purchase orders issued by the purchasing officer and any other contractual document they determine is necessary. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.030)

The purchasing officer does not have the authority to sign contracts, nor to bind the city contractually. Contracts may only be entered into by the city manager. Subject to Section 3.04.340 contracts may only be entered into by the city manager; contracts in excess of city manager authority require city council approval, without which such contract is not valid. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.040)

Except in case of an emergency or where specific authority is first obtained from the city council or the city manager, the purchasing officer shall not issue any purchase order for purchasing of supplies, general services or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.050)

Except as authorized in Sections 3.04.140 and 3.04.150, or in the case of emergencies as described in Sections 3.04.170 and 3.04.175, the purchase of supplies, general services, equipment and special equipment/supplies not included in a construction contract or bid specification for a public work, shall be made as follows:

A. A purchase of five thousand dollars ($5,000.00) or less may be made by departmental purchase in accordance with Section 3.04.110.

B. A purchase greater than five thousand dollars ($5,000.00) to twenty-five thousand dollars ($25,000.00) may be made by an informal bid procedure in accordance with Section 3.04.120.

C. A purchase of more than twenty-five thousand dollars ($25,000.00) shall be made by formal bid procedure in accordance with Section 3.04.130. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.060)

A department may, independently of the purchase officer, purchase specified and limited supplies, equipment, special equipment/supplies and general services not included in a construction contract or bid specification for a public work, as follows:

A. Purchases of five thousand dollars ($5,000.00) or less: requestor receives a verbal/written approval from supervisor, department keeps a record of such purchases and exercises reasonable prudence in seeking price quotes and purchasing such items. All purchases shall be made with funds in an unencumbered appropriation. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.070)

The purchase of supplies, equipment, special equipment/supplies and general services not included in a construction contract or bid specification for a public work with the estimated value greater than five thousand dollars ($5,000.00), but not exceeding twenty-five thousand dollars ($25,000.00), shall be made by a purchase order as required by this chapter. Said purchases, subject to the department head’s discretion, based upon a small amount, or urgent need and timeliness, may be let without the formal bidding procedures described in Section 3.04.130. In such case, the following procedures shall be followed:

A. Solicitation of Bids. If it is determined that the request is of a sufficient size and time allows, the purchasing officer or designee, before issuing the purchase order to a specific contractor/vendor, shall: for purchases greater than five thousand dollars ($5,000.00) to twenty-five thousand dollars ($25,000.00), obtain at least three written bids or price quotes. The purchasing officer or designee may negotiate to obtain the lowest possible contract amount from any vendor contacted who can provide supplies, general service, or equipment within the time constraints of the department’s request. The purchasing officer or designee may solicit or determine bids of prospective vendors by written request, telephone, or may base award recommendations upon current catalogs or advertisements.

B. Local Preference. Quality and service being equal, a local preference of one percent shall be given to local bidders located within the city, the difference being the sales tax the city would receive on the sale in the case of vendors.

C. Maintenance of Records. After placing the order, a written record of the contract, bids, quotes or advertisements used or received shall be open public records and maintained by the purchasing officer or the department for a period of two years.

D. Award. The purchasing officer or designee shall award the contract to the lowest responsive and responsible bidder, vendor or offeror whose quote, bid, or proposal fulfills the purpose intended, provided the amount is within the unencumbered appropriation for that item, or reject such bids or proposals, or negotiate further for terms more favorable to the city. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.080)

For supplies, equipment, special equipment/supplies and general services not included in a construction contract or bid specification for a public work with an estimated value in excess of twenty-five thousand dollars ($25,000.00), purchases shall be made in accordance with the following formal written bid procedures:

A. Published Notices. A notice inviting bids shall be published at least ten (10) calendar days before the date of the opening of bids. The notice shall be published at least once in a newspaper of general circulation printed and published in the city, and also in appropriate trade publications, if any, circulated within the general area. Such other notice as the purchasing officer or designee deems appropriate shall be made.

B. Notices Inviting Bids. Notices inviting bids shall include a general description of the goods, articles, services or equipment to be purchased, any required bidder’s security or performance bonds, state where bid blanks and specifications may be secured and the time and place for the opening of bids.

C. Bidder’s List. The purchasing officer or designee shall maintain a list of responsible bidders for various categories of supplies, equipment, and general services. A solicitation for a bid shall be sent to all responsible prospective contractors or suppliers whose names are on the bidder’s list for the category of equipment, supplies or general services subject to the bid request.

D. Bidder’s Security/Failure to Sign Contract. If the city requires a bidder’s bond or other form of security, the bidder’s security shall be prescribed in the notice inviting bids in an amount equal to ten percent (10%) of the bid amount. Bidder’s security shall be either a cash deposit with the city, a cashier’s or certified check payable to the city, or a bidder’s bond. Unsuccessful bidders shall be entitled to the return of bid security within sixty (60) days of the date of the award. However, the lowest responsive and responsible bidder shall forfeit all or part of its bid security, as may be determined by the city council, upon the bidder’s refusal or failure to execute the contract within ten (10) days after the date of the award of the contract. On the refusal or failure of the lowest responsive and responsible bidder to execute the contract, the council may award the contract to the next lowest responsive, responsible bidder.

E. Bid Opening Procedure. Sealed bids shall be submitted to the city clerk’s office and shall be identified as to bidder, project, and “Bid” on the envelope. Bids shall be opened by city staff in public at the time and place stated and as described in the notice inviting bids. A written record and tabulation shall be made at that time of all bids received, and shall be open for public inspection during regular business hours for a period of two years after the bid opening.

F. Local Preference. Quality and service being equal, a local preference of one percent shall be given to local bidders located within the city, the difference being the sales tax the city would receive on the sale in the case of vendors.

G. Bid Evaluation Procedures. All bids and bidders shall be analyzed by purchasing officer or designee and the responsible department for bidder’s qualifications and compliance with bid specifications. The purchasing officer or designee shall prepare a recommendation to the department for award or rejection; the department shall then prepare a recommendation for award or rejection to the city council.

H. Rejection of Bids. In its discretion, the city council may reject all bids and readvertise. If no bids are received, the city council may proceed with the procurement without further complying with this chapter using whatever method it deems appropriate, such as rebid, abandon acquisition, or negotiate a contract.

I. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsive and responsible bidder whose bid fulfills the purpose intended according to criteria designated in the solicitation, provided the award amount is within the unencumbered appropriation for that item. The city council may waive any minor bid irregularities.

J. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the council may accept either bid or accept the lowest bid made by negotiation with the tied bidders.

K. Performance Bonds. The city may require a performance bond in such amount as it shall find reasonably necessary to protect the public interest. If the city requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.090)

A. Special Equipment/Supplies. In purchasing any special equipment or supplies needed to be compatible with existing equipment, or to perform complex or unique functions, the purchasing officer or department head may:

1. Limit bidding to a specific product type, or a brand name product; or

2. Utilize a request for proposal approach where warranties, servicing obligations, and product performance will be evaluated in addition to the price of the product, and the award of the contract is made by the council to the proposer it deems is in the best public interest.

B. Sole Source Purchases. Commodities or services that can be obtained from only one vendor, or one distributor authorized to sell in this area, are exempt from the competitive bidding requirements in Section 3.04.100 and are deemed sole source purchases. Sole source purchases may include proprietary items sold direct from the manufacturer. All sole source purchases shall be supported by written documentation indicating the facts and nature supporting the determination of a sole source, signed by the appropriate department head and forwarded to the purchasing officer. Approval of any sole source acquisition shall be obtained from the city council for an award of a contract or purchase order greater than twenty-five thousand dollars ($25,000.00).

• C. Bid Exceptions. The competitive bid process is not applicable to certain purchases. The following are exempt from bid processes of this chapter:

  1. Departmental purchases, as defined in Section 3.04.110;

  2. Subscriptions;

  3. Trade circulars or books;

  4. Newspaper advertisements and notices;

  5. Utility payments;

  6. Land. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.100)

The bidding requirements of Section 3.04.100 shall not apply to the purchasing of any equipment or supplies which the purchasing officer decides to obtain through a cooperative competitive bidding procedure prepared by and processed through another public, local, state, or federal governmental agency. If it is determined to be in the best interest of the city, the purchasing officer is authorized to “piggy-back” onto or join into an existing written purchase contract, which contract was obtained within the last twelve (12) months through a competitive bidding process prepared by and awarded by another public, local, state or federal government agency. However, the city council’s approval shall be required prior to and for the joining of a “piggy-back” purchase or cooperative purchase for a purchase greater than twenty-five thousand dollars ($25,000.00). (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.110)

If in procuring supplies a recycled product can achieve the necessary city performance standard, and if such recycled product is readily available, specifications should, if economically feasible, require products made with recycled materials be bid. If the department head determines that: (A) a recycled product lacks performance capabilities or needed quality levels; or (B) a sufficient amount of such recycled or reusable product is not currently available in the market, then a reduced percentage can be required, or the supply specification can be limited to nonrecycled or virgin materials. When recycled products are required, reasonable efforts shall be made to label the products as containing recycled materials. As used in this section, “recycled products” does not mean used products, but is limited to new products made with materials which have been recycled. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.120)

Bidding procedures may be dispensed with in the case of an emergency. The city council delegates to the city manager the authority to declare a public emergency and enter into contracts for any purchase in accordance with Section 3.04.175. The city manager’s authority is subject to confirmation by the city council at its next meeting for any purchase in excess of twenty-five thousand dollars ($25,000.00). (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.130)

A. Purpose. This section modifies the city’s normal purchasing practices only during a proclaimed emergency. With this revised policy, the city is able to acquire goods and services required to address an immediate threat to life, public health or safety, or an immediate threat of significant damage to improved public and private property while maintaining an effective purchasing policy.

• B. Definitions. For the purposes of this section, the following definitions are applicable:

A “proclaimed disaster” or “emergency” exists if (1) the Governor has declared a state of emergency for an area which includes the geographic territory of the city, or (2) the city manager or their designee has declared an emergency in the city.

“Exigent circumstances” are situations in which (1) a disaster or emergency has been proclaimed, and (2) the public exigency for goods and services required to address an immediate threat to life, public health or safety, or improved public and private property will not permit competitive solicitation.

C. Delegation of Purchasing Authority in Exigent Circumstances. If the city manager or their designee determines that goods and services must be procured before the city council is to assemble and approve purchases, the city manager or their designee has the authority, subject to the limitations set forth below, to approve the immediate rental and/or purchase of any equipment, supplies, services, or other items necessary to respond to an immediate threat to life, public health or safety, or improved public and private property.

1. Limits of Single Purchase Authority. The city manager or their designee shall have the authority to make individual purchases up to one hundred thousand dollars ($100,000.00) on their signature alone. The city manager or their designee shall have the authority to make purchases in excess of one hundred thousand dollars ($100,000.00) up to a maximum of five hundred thousand dollars ($500,000.00) when countersigned by the mayor or, in the mayor’s absence, countersigned by another council member.

2. Limits of Aggregate Purchase Authority. The city manager or their designee shall have the authority to make aggregate purchases up to one million five hundred thousand dollars ($1,500,000.00) on their signature alone per disaster declaration. The city manager or their designee shall have the authority to make aggregate purchases in excess of one million five hundred thousand dollars ($1,500,000.00) and up to a maximum of two million five hundred thousand dollars ($2,500,000.00) per disaster declaration when countersigned by the mayor or, in the mayor’s absence, countersigned by another council member.

• a. Sub-delegation to the Emergency Operations Center (EOC) Director. The EOC director shall be a designee of the city manager at any time that the city manager is not available to approve purchases as allowed in this section.

b. Sub-delegation of Purchasing Authority to Department Heads. If neither the city manager or their designee nor the EOC director is available, then any city department head has the authority to rent or purchase from the nearest source, any equipment, supplies, services, or other items necessary for any department to respond to an immediate threat to health, safety, or improved property, up to a maximum of fifty thousand dollars ($50,000.00).

c. Sub-delegation of Purchasing Authority to Mid-Managers. If neither the city manager or their designee, EOC director, or any department head is not available, then any employee classified as a mid-manager has the authority to rent or purchase from the nearest source any equipment, supplies, services, or other items necessary for any department to respond to an immediate threat to health, safety, or improved property, up to a maximum of twenty-five thousand dollars ($25,000.00).

D. Administrative Procedures and Reporting Requirements.

1. As soon as possible after purchases are made under subsection C of this section, the city manager or their designee, EOC director, department head or midmanager shall submit to the finance director or designee a purchase order requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated.

2. The finance director will inform the city manager or their designee and the city council of any individual purchase under this section with a contract amount greater than twenty-five thousand dollars ($25,000.00), and also whenever the aggregate of purchases under this section is greater than two hundred fifty thousand dollars ($250,000.00).

3. The finance director will obtain the city manager’s or their designee’s (or EOC director as the city manager’s designee) approval prior to any purchase by a department head if the amount is twenty-five thousand dollars ($25,000.00) or more.

4. If the city manager or their designee and the EOC director are unavailable, and the delay in getting their signature would imperil life, public health or safety, or improved public or private property, then any department head (except the requestor) may approve the emergency purchase of fifty thousand dollars ($50,000.00) or more.

5. The finance director or designee shall have the authority to approve all disaster-related purchases under fifty thousand dollars ($50,000.00).

6. The finance director or designee will expedite the verification of funds available and complete the preparation of the purchase order.

• E. Procurement Procedures in Exigent Circumstances. Upon receipt of the requisitions under subsection D of this section, the finance director or designee shall prepare purchase orders for emergency equipment, supplies, services or other items in accordance with the requirements of this section.

1. Exempt Purchases. Purchases of two hundred fifty thousand dollars ($250,000.00) or less shall not be required to be formally bid. Purchases greater than two hundred fifty thousand dollars ($250,000.00) may be made following the procedures specified in this section. The signature(s) of the city manager or their designee, finance director, or department head are still required as provided in subsections C and D of this section.

2. Justification of “Sole Source” or “No Bid” Contracts. Where exigent circumstances require immediate procurement from the nearest available source, the finance director or designee shall justify the emergency sole source purchase or no bid purchase on the purchase order.

   • a. Procurement should be limited to that portion of the work that must be performed immediately, and subsequent procurement by competitive proposal for the remainder of the work under the city’s normal purchasing policy (this chapter).

b. “Sole source” or “no bid” acquisitions shall be necessary for one of the following reasons: placement of emergency protective measures; procurement of scarce commodities, goods, or services; or acquisition or rental of emergency equipment, emergency consulting services, emergency road clearance, or other emergency requirements.

3. Provision for Alternate Bid Solicitation Procedures. The city’s normal requirements for quotes, sealed bids, or local preference shall not apply to this section (Declared emergencies). However, the finance director or designee shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in lieu of written and/or sealed bids, in an effort to obtain multiple competitive proposals when and if time allows in light of the exigent circumstances.

4. Posting Locations for Requests for Proposals or Solicitations of Bids. The finance director or designee may waive normal requirements for public posting of requests for proposals or solicitation of bids for the procurement of emergency equipment, goods or services. Notices soliciting bids or requests for proposals shall be posted, at minimum, at the emergency operations center or the alternate emergency operations center, if the primary emergency operations center is not being used.

5. Length of Time for Posting Requests for Proposals or Solicitation of Bids. The finance director or designee shall determine the posting period. The finance director or designee will make reasonable efforts to ensure that multiple suppliers are able to place a bid during the shortened time period.

• F. Notification and Ratification.

1. Posting of Contract Awards. All contracts awarded that exceed twenty-five thousand dollars ($25,000.00) shall be presented to the city council for ratification and thereafter shall be publicly posted within sixty (60) days of the award.

2. Authority to Cancel Emergency Procurements. The city manager has the absolute authority to rescind a contract for nonperformance within twenty-four (24) hours when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or nonperformance presents an immediate threat to life, public health or safety, or improved public or private property.

3. Notification Requirement for Emergency Services. For any purchase in excess of twenty-five thousand dollars ($25,000.00), the city manager shall report all such purchases to the city council within thirty (30) days of the onset of the disaster.

4. Requirement for Separate Invoicing. All purchases or rentals made during the proclaimed emergency or disaster conditions shall require separate invoicing from routine (nondisaster) purchases. All invoices must state the goods, services, or equipment provided and must specify the location where the goods or services were delivered.

5. Limitations of Declared Emergencies Purchasing Policy. Any purchases that do not meet the standard of being necessary for responding to an immediate threat to life, public health or safety, or improved public or private property as outlined in this section shall follow the city’s regular purchasing provisions. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 16-5 § 1 (Exh. A))

All departments shall submit to the purchasing officer, at such times and in such forms as they may prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer may direct that the designated supplies or equipment be:

• A. Transferred to another city department or agency;

• B. Exchanged or traded in on new supplies and equipment; or

• C. Disposed of in some other suitable manner, which may include sale at auction or deposit at a landfill. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.140)

The purchasing officer or designee or department requesting the item shall inspect all deliveries of supplies and equipment to assure conformance with the contract or order specifications. The purchasing officer or designee, at their discretion, may require such reasonable chemical and physical tests of samples of supplies and equipment as they deem necessary to determine the quality in conformance with those specifications. (Ord. 22-7 § 1 (Exh. A); Ord. 19-7 § 1 (Exh. A); Ord. 15-8 § 1 (Exh. A); Ord. 01-14; prior code § 2.91.150)