Susanville Municipal Code Ch. 3.08 Purchasing System

In order to establish efficient procedures for purchasing of supplies, equipment, professional services and nonprofessional services, to secure for the city supplies and equipment at the lowest possible cost commensurate with the 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.

For the purposes of this chapter:

"Department head"

shall mean, the city clerk, public safety chief, public works director, finance director, economic development director, or any other city official designated as a department head by the city council.

"Professional services"

shall mean services provided to the city that are any of the following:

Professional architectural.

Landscape architectural.

Professional engineering.

Environmental.

Land surveying.

Construction project management.

Legal.

Accounting.

Professional planning services.

Administrative services.

(Prior code § 20.1; Ord. 24-1046, 11/20/2024)

There is created a centralized purchasing authority in which is vested authority for the purchase of equipment, supplies, nonprofessional services and services not involving particular ability.

(Prior code § 20.2; Ord. 98-847 § 1)

A. The city finance director is designated as purchasing authority for the city of Susanville. The finance director may recommend that the city manager delegate the routine administrative responsibilities as specified in this chapter, or in any other applicable purchasing regulation as shall be prescribed by the city council to any department head as appropriate. The finance director shall:

1. Ensure that the purchase of equipment, supplies, professional services, nonprofessional services or nonprofessional services not involving particular ability required by any office or department of the city is in accordance with purchasing procedures prescribed by this chapter is negotiated and ensure that such other rules or regulations are adhered to as shall be prescribed by the city council.

2. Act to procure for the city the needed quality in equipment, supplies, nonprofessional services or services not involving particular ability required by any office or department of the city, at least expense to the city.

3. Encourage uniform bidding, and endeavor to obtain as full and open competition as possible on all purchases hereunder.

4. Prepare and recommend to the city manager and city council rules governing the purchase of equipment, supplies, nonprofessional services or services not involving particular ability for the city.

5. Keep informed of current developments in the field of purchasing prices, market conditions and new products.

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

7. 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 department, or which have become unsuitable for city use. Prepare a list from each department by July 1st of each year.

8. Maintain a bidders' list, vendors' catalogue file, and records for the efficient operation of this chapter.

9. Prepare and maintain the standard requisition form as referenced in this chapter.

B. The city clerk shall:

1. Maintain records of all executed service and contractual agreements.

2. Ensure that no contract or agreement in excess of $25,000 shall be entered into without city council approval.

3. Attest by signatory action on all agreements that agreements are signed by the appropriate city officials pursuant to this chapter.

C. The city manager shall:

1. Be authorized to execute agreements in the amount not to exceed $25,000 without city council approval.

2. Be authorized to execute agreements in excess of $25,000 with the approval of city council.

3. Consider the recommendations of the finance director and, as appropriate, delegate the routine administrative responsibilities as specified in this chapter, or in any other applicable purchasing regulation as shall be prescribed by the city council.

4. Provide periodic reports to city council regarding agreements approved by city manager and department heads.

D. Department head(s) shall:

1. Be authorized to execute agreements in the amount not to exceed $15,000 without city council or city manager approval.

2. Identify no existing agreements or contracts are in place and which additional services could be added for equal share of cost increase prior to executing any agreement or contract.

(Prior code § 20.3; Ord. 98-847 § 1; Ord. 10-975 § 1, 2010; Ord. 24-1046, 11/20/2024)

All city departments using the services of the finance director pursuant to this chapter shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the finance director shall prescribe.

(Prior code § 20.4; Ord. 98-847 § 1)

The finance director, upon written approval of the city manager, may authorize in writing any city department to purchase or contract for specified supplies, services and equipment independently of the purchasing authority, but finance director shall require that such purchases or contracts be made pursuant to the procedures established by this chapter, and shall further require periodic reports from the department on the purchases and contracts made under such written authorization.

(Prior code § 20.5; Ord. 98-847 § 1; Ord. 24-1046, 11/20/2024)

Except as otherwise provided herein, purchases of equipment, supplies, nonprofessional services and nonprofessional services not involving a particular ability, of $60,000 or less, may be made, after adhering to the following:

A. Public Projects $60,000 or Less.

1. Public projects as defined in PPC 20161 of $60,000 or less, road maintenance projects of $60,000 or less, and utility maintenance projects of $60,000 or less may, at the discretion of the city manager, be completed with the city's own forces (force account), by negotiated contract, or by purchase order. Multiple quotes are not required for public projects less than $60,000.

B. Non-Public Projects $60,000 or Less.

1. Minimum Number of Bids or Quotations. Open market purchases shall, whenever possible, be based on at least three quotations and shall be awarded to the lowest responsible bidder. The finance director is authorized to approve the purchases when at least three quotations cannot be obtained, including sole source procurements, only after the finance director is satisfied that a reasonable effort has been made to obtain three quotations.

2. Notice Inviting Bids or Quotations. The finance director shall oversee solicitation of bids by city staff. Bids or Quotations shall be by written request to prospective vendors or by telephone.

3. Written Quotations. Written quotations shall be submitted to the finance director who shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection.

4. Written Contract. Where contracts are entered into for purchases made under this section, the contracts shall be approved in accordance with Section 3.08.030.

C. Requisition Forms. The issuing department shall submit a request for the equipment, supplies, nonprofessional services, or services not involving a particular ability, to the finance director by standard requisition form.

D. All bidding may be dispensed with, in an emergency, pursuant to Section 3.08.200.

(Prior code § 20.6; Ord. 98-847 § 1; Ord. 13-993 § 1, 2013; Ord. 24-1046, 11/20/2024)

A. Except as otherwise provided herein, purchases of equipment, supplies, nonprofessional services and nonprofessional services not involving a particular ability, of $200,000 or less, may be made after adhering to the following:

1. Public Projects $200,000 or Less — Informal Bidding Requirements.

a. The finance director shall maintain a list of qualified contractors identified according to category of work.

b. At the time informal bids are solicited, a notice inviting informal bids shall be mailed to all qualified contractors on the list. If no such list exists, or at the finance director's discretion, a notice inviting informal bids shall also be sent all applicable construction trade journals specified in PCC Section 22036. Additional contractors and trade journals may also be notified, at the discretion of the finance director.

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

d. All mailing of notices to contractors and construction trade journals pursuant to this section shall be completed not less than 10 calendar days before bids are due.

e. If all bids received are in excess of $200,000, the city council, by a 4/5 vote may award the contract at $212,500 or less to the lowest responsible bidder if it determines that the city's cost estimate for the project was reasonable.

2. Non-Public Projects $200,000 or Less.

a. Minimum Number of Bids or Quotations. Open market purchases shall, whenever possible, be based on at least three quotations and shall be awarded to the lowest responsible bidder. The finance director is authorized to approve the purchases when at least three quotations cannot be obtained, including sole source procurements, only after the finance director is satisfied that a reasonable effort has been made to obtain three quotations.

b. Notice Inviting Bids or Quotations. The finance director shall oversee solicitation of bids by city staff. Bids or Quotations shall be by written request to prospective vendors or by telephone.

c. Written Quotations. Written quotations shall be submitted to the finance director who shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection.

d. Written Contract. Where contracts are entered into for purchases made under this section, the contracts shall be approved in accordance with Section 3.08.030.

B. Requisition Forms. The issuing department shall submit a request for the equipment, supplies, nonprofessional services, or services not involving a particular ability, to the finance director by standard requisition form.

C. All bidding may be dispensed with, in an emergency, pursuant to Section 3.08.200.

(Prior code § 20.7; Ord. 98-847 § 1; Ord. 03-904 § 1, 2003; Ord. 10-975 § 1, 2010; Ord. 13-993 § 1, 2013; Ord. 24-1046, 11/20/2024)

Except in cases of emergency as described in Section 3.08.200, the finance director shall not issue any purchase order for equipment, supplies, nonprofessional services or nonprofessional services not involving particular ability for which there is an insufficient appropriation in the budgetary account against which said purchase is to be charged.

(Prior code § 20.8; Ord. 98-847 § 1; Ord. 24-1046, 11/20/2024)

Except as otherwise provided herein, purchases of equipment, supplies, nonprofessional services, and nonprofessional services not involving particular ability, over $200,000 may be made after adhering to the following:

A. Public Projects — Formal Bidding Requirements. Agreements for public projects shall be let to the lowest responsible bidder, pursuant to the procedures set forth herein.

1. Notice Inviting Bids. Notice inviting bids shall include a general description of the equipment, supplies, nonprofessional services or nonprofessional services not involving particular ability, to be purchased and shall state where bid blanks, forms and specifications may be secured, and the date, time and place of opening bids.

a. Published Notice. Notice inviting bids shall be published at least 10 days before the day of opening bids. 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 List. The finance director, or appropriate city department with approval of the finance director, shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidder's list; provided, however, should said supplier desire to participate, said supplier shall comply with the requirements herein.

2. Bidder's Security. When deemed necessary by the finance director, bidder's security of 10% of the amount bid shall be required in the public notice(s) inviting bids. Bidders shall be entitled to return of bid security upon execution of the contract by the successful bidder, upon rejection of bids, or upon the readvertisement for bids; provided that a successful bidder shall forfeit his or her bid security upon refusal or failure to execute the contract within 10 days after 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 (the "first awarded bidder") to execute the contract, award the contract to the next lowest responsible bidder (the "second awarded bidder"). In the event the city council does so, the first awarded bidder shall forfeit only that portion of security equal to the difference between said first awarded bidder's bid and the bid of the second awarded bidder. If the second awarded bidder fails or refuses to execute the contract, he or she shall forfeit his or her bid security.

3. Bid Opening Procedure. Sealed bids, identified as bids on the outer envelope, shall be submitted to the city clerk. Bids shall be opened in public at the date, time and place stated in the public notice(s). Tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.

4. Rejection of Bids. In its discretion, the city council may by majority vote reject any and all bids presented, and:

a. Authorize negotiation of a contract; or

b. Re-advertise for bids; or

c. Take no further action.

5. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder, except in the case of the bidder not meeting the bid requirements.

6. Tie Bids. If two or more bids received are for the same total amount or unit price, quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the city council may accept the one it chooses. The city council's determination in that regard shall be final.

7. Performance Bonds. The finance director shall have authority to require a performance bond, in such amount as it shall be found reasonably necessary to protect the best interests of the city. If the finance director requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

B. Non-Public Projects — Greater than $200,000.

1. Minimum Number of Bids or Quotations. Open market purchases shall, whenever possible, be based on at least three quotations and shall be awarded to the lowest responsible bidder. The finance director is authorized to approve the purchases when at least three quotations cannot be obtained, including sole source procurements, only after the finance director is satisfied that a reasonable effort has been made to obtain three quotations.

2. Notice Inviting Bids or Quotations. The finance director shall oversee solicitation of bids by city staff. Bids or Quotations shall be by written request to prospective vendors or by telephone.

3. Written Quotations. Written quotations shall be submitted to the finance director who shall keep a record of all open market orders and quotes for a period of one year after the submission of quotes or the placing of orders. This record, while so kept, shall be open to public inspection.

4. Written Contract. Where contracts are entered into for purchases made under this section, the contracts shall be approved in accordance with Section 3.08.030.

C. Requisition Forms. The issuing department shall submit a request for the equipment, supplies, nonprofessional services, or services not involving a particular ability, to the finance director by standard requisition form.

D. All bidding may be dispensed with, in an emergency, pursuant to Section 3.08.200.

(Prior code § 20.9; Ord. 98-847 § 1; Ord. 03-904 § 1, 2003; Ord. 10-975 § 1, 2010; Ord. 13-993 § 1, 2013; Ord. 24-1046, 11/20/2024)

The department head shall inspect supplies and equipment delivered and determine their conformance with the specifications set forth in the order or contract. The department head shall have authority to require chemical and physical tests of samples submitted with bids, and samples of deliveries which are necessary to determine their quality and conformance with specifications. Department heads may also delegate this duty to an appropriate department of the city.

(Prior code § 20.10; Ord. 98-847 § 1; Ord. 10-975 § 1, 2010; Ord. 24-1046, 11/20/2024)

Department heads shall annually notify the finance director if they have items to surplus and list the items in a format approved by city manager showing all supplies and equipment which are no longer used which have become obsolete or worn out. Vehicles to be surplused will need to have verification of city ownership prior to being placed on the list.

Finance director shall have the authority to make transfers between departments of any usable surplus supplies or equipment as needed. The department receiving the surplused item that have been fully depreciated will pay scrap value amount to department that surplused the item.

Final proposed surplus list will be provided to city manager's office. The city manager will prepare staff report for council approval and coordinate disposal/sale of surplus property. Items that are not purchased at auction may be disposed of. No minimum bid.

(Prior code § 20.11; Ord. 98-847 § 1; Ord. 24-1046, 11/20/2024)

It is unlawful to split or separate into smaller orders the purchase of supplies, materials, or services of the purpose of evading the competitive bidding provisions of this chapter. Violation of this section constitutes an infraction.

(Prior code § 20.12; Ord. 98-847 § 1)

A. As used in this section:

"Leasing of non-purchasable equipment"

means equipment which is available through "lease only" plans.

"Leasing purchasable equipment"

means equipment which can be acquired through "lease with option to purchase" type plans.

B. Leasing of purchasable or non-purchasable equipment shall be in accordance with Sections 3.08.030 and 3.08.050 through 3.08.070 of this chapter. Bidding can be dispensed with only as permitted in Sections 3.08.060 and 3.08.200.

C. For leasing of non-purchasable equipment in excess of $15,000 for department heads and in excess of $25,000 for city manager, it shall be the policy of the city of Susanville that when property is acquired by lease rather than outright purchase that all lease agreements must be reviewed by both the finance director and city attorney prior to consideration by city council and must be signed by the mayor or city manager after said and approval by the city council.

D. For leasing of non-purchasable equipment in excess of $15,000 for department heads and in excess of $25,000 for city manager, it shall also be the policy for all lease agreements that the head of the department acquiring said asset shall be required to provide a cost analysis of payment options which shall include lease versus purchase and review of any lease agreement proposed. The cost analysis shall include, but not be limited to, the type of lease, be it operating lease or capital lease, purchase options (cash versus financing), lease rate, purchase price, payment schedule, interest rate, expected useful life, residual value at lease end, maintenance, service and supply costs.

(Prior code § 20.13; Ord. 98-847 § 1; Ord. 10-975 § 1, 2010; Ord. 24-1046, 11/20/2024)

A. As used in this section, "maintenance agreements" means a written contract wherein the contractor (or vendor) agrees to maintain city equipment in good operating condition subject to terms and conditions agreeable to both the contractor (or vendor) and the city.

B. All executed agreements must be filed with the city clerk. Departments must identify no existing agreements are in place in which additional services could be added for an equal share of cost increase prior to executing agreement.

(Prior code § 20.14; Ord. 98-847 § 1; Ord. 10-975 § 1, 2010; Ord. 24-1046, 11/20/2024)

Nothing contained in this chapter shall prohibit the voluntary participation by the city in any voluntary cooperative purchasing agreement(s) or programs entered into between the city and the state, county and/or other municipal corporations situated within the boundaries of the county. Any such voluntary cooperating purchasing agreement shall be approved in writing by the city council, and the finance director is empowered and authorized to act under the provisions of this chapter to procure for the city equipment and supplies in conjunction with such voluntary cooperative purchasing agreement(s) or programs as may be entered into by the city. All formal contract and bidding procedures to be followed in such cases shall be those specifically enumerated in the voluntary cooperative purchasing agreement or program.

(Prior code § 20.15; Ord. 98-847 § 1)

Except for federal contracts and public projects, or when utilizing funding that does not allow local preference, a local vendor may qualify for local purchase preference. Local purchase preference is a 2.5% [higher quote] difference of quote price over the next vendor. A local vendor must submit a copy of a current city business license, issued by the city of Susanville, and complete and sign a declaration under penalty of perjury, stating that as of the date the request for quotes was issued, the business listed on the quote was physically maintained and operates at a fixed office or other business premises located within the geographical limits of Lassen County, and providing such other information as may be requested.

(Prior code § 20.16; Ord. 98-847 § 1; Ord. 24-1046, 11/20/2024)

A. When purchasing materials and supplies for the city, preference should be given to recyclable materials and supplies and/or materials and supplies containing recycled post-consumer materials, provided such materials and supplies are sufficient in performance, reasonably available and cost effective.

B. When purchasing materials and supplies for the city, efforts should be made to avoid unnecessary waste generation. Consideration should be given to extended product life, product reusability, bulk purchasing, and avoidance of excessive packaging materials.

C. To the extent feasible and practical, double-sided copying and electronic communications and electronic-assisted printing should be used to reduce the generation of waste paper.

(Ord. 01-881 § 1)

All services, in excess of $3,000, including multiyear agreements exceeding $3,000 in aggregate, require written agreements in a form approved by the city attorney. Service procurements shall not be split for the purpose of evading the requirement to obtain a written agreement. Agreements must be approved by the city attorney and assigned an agreement number provided by the city clerk prior to execution. Contractual services in excess of $25,000 per agreement must go to city council for approval. The city manager is authorized to execute agreements in the amount not to exceed $25,000 without city council approval; department heads are authorized to execute agreements in the amount not to exceed $15,000 without city council or city manager approval. All executed agreements under $25,000 that are approved by city manager or department head will be reported to city council at a frequency as directed by city council.

(Ord. 24-1046, 11/20/2024)

A. Procurement of the architectural, landscape architectural, engineering, environmental, and land surveying, construction management, and environmental services as defined in California Government Section 4525 shall be made as follows:

1. Selection shall be made of the basis of demonstrated competence and professional qualifications for the satisfactory performance of the services required at a reasonable cost.

2. Selection procedures for projects using city funds:

a. The city shall endeavor to obtain a statement of qualifications from no less than three firms. If statement of qualifications from three firms cannot be obtained, the requesting department shall provide a written justification statement of the process used to solicit statements, specifically stating the number of firms contacted and the reasons that qualifications from at least three firms could not be obtained. The finance director shall review the justification statement and approve the selection process to move forward or require the department to increase their efforts. In the event the finance department is implementing the selection process the city manager shall approve the justification statement if needed.

b. The requesting department's department head shall convene a review committee, the review committee shall:

i. Consist of at least three members knowledgeable in the field of services being solicited. Committee members shall not have any financial interest or personal relationship with any of the firms that have submitted statements of qualifications.

ii. Review the experience qualifications of the prospective firms and select three firms based on demonstrated competence and qualifications.

iii. Engage in discussions with the top three firms, or fewer as approved in section "a" above. Discussions shall include anticipated concepts, the relative utility of alternative methods of approach for furnishing required services, and cost.

iv. Make a recommendation to the department head based on the responses to selection criteria in section iii above.

3. Selection procedures for projects using grant or other non-city funding sources:

a. Absent any procurement requirements specific to the funding source being utilized, the city shall follow subsection A.2 "Selection procedures for projects using city funds."

b. When the funding source for a project requires a specific competitive selection process, the city shall adhere to the specific competitive selection process required by the granting agency for the applicable funding source.

B. Procurement of financial, economic, accounting, legal, professional planning services, or administrative services shall be made as follows:

1. Selection shall be made on the basis of demonstrated competence and professional qualifications for the satisfactory performance of services required at a reasonable cost.

2. Specific competitive selection requirements of funding entity must be adhered to when applicable.

(Ord. 24-1046, 11/20/2024)

A. All bidding requirements and purchases of equipment, supplies, nonprofessional services, and nonprofessional services not requiring a particular ability may be dispensed with in an emergency. An emergency is a situation where the public interest and necessity demand the immediate expenditure of public money to safeguard life, health and/or property.

B. The city manager is authorized pursuant to Government Code Section 22050 to order any action to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids or to let contracts. The city manager must report the action to the city council for review within seven days after the action or at the next regularly scheduled meeting if that meeting will occur not later than 14 days after the action. The city council shall review the emergency action at least every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless the city manager has terminated the action prior to the city council reviewing the emergency action, in which case the city manager will report to the city council the city manager's decision to terminate the action at the next regularly scheduled meeting.

C. 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.

(Ord. 24-1046, 11/20/2024)