Sutter Creek Municipal Code Ch. 4.29 Purchases

In order to establish efficient procedures for the purchase of supplies and equipment at the lowest possible cost commensurate with quality needs, 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.

(Ord. 324 §1, 2008)

The procedures established by this chapter shall apply only to the purchase of supplies, equipment and services, and shall not apply to public projects as defined in Section 20161 of the California Public Contracts Code.

(Ord. 324 §1, 2008)

There is created a purchasing division within the office of the city manager in which is vested authority for the purchase of supplies and equipment.

(Ord. 324 §1, 2008)

There is created the position of purchasing agent, who may also be known as the purchasing officer, and shall be appointed by the city manager. The purchasing agent shall be the head and have general supervision of the purchasing division. The duties of the purchasing agent may be combined with those of any other office or position. The purchasing agent shall have the 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 agent shall adopt for the internal management and operation of the purchasing division and such other rules and regulations as shall be prescribed by the city council or the city manager;

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

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

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

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

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

I. Supervise the inspection of all supplies and equipment purchases to insure conformance with specifications;

J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed;

K. Maintain an approved vendors' list, vendors' catalog file and records needed for the efficient operation of the purchasing division.

(Ord. 324 §1, 2008)

The purchasing agent shall be responsible for determining that the regulations and procedures in sections 4.29.060 through 4.29.120 are carried out.

(Ord. 324 §1, 2008)

The city manager may authorize, in writing, any department to purchase specified supplies and equipment independent of the purchasing agent; but such purchases shall be made in conformity with the procedures established by this chapter and shall further require periodic reports from the department on the purchases made under such written authorization.

(Ord. 324 §1, 2008)

Purchases or supplies and equipment shall be generally made by purchase orders. Except as otherwise provided herein, no purchase order shall be issued without the prior approval of the purchasing agent or city manager.

(Ord. 324 §1, 2008)

Except in cases of emergency, the purchasing agent shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged.

(Ord. 324 §1, 2008)

The purchasing agent shall, with discretion, inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order. The purchasing agent 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 specification.

(Ord. 324 §1, 2008)

Purchases of supplies and equipment shall be by bid procedures pursuant to sections 4.29.110 through 4.29.250. Bidding may be dispensed with only under conditions stated in section 4.29.260.

(Ord. 324 §1, 2008)

Except as otherwise provided herein, purchases of supplies and equipment of an estimated value greater than twenty thousand dollars shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure hereinafter prescribed.

(Ord. 324 §1, 2008)

Notices inviting formal bids shall include a general description of the article or service desired, shall state where bid documents and specifications may be secured, and the time and place for opening bids.

(Ord. 324 §1, 2008)

A. Purchases of supplies and equipment of an estimated value in the amount of twenty thousand dollars or less may be made by the purchasing agent in the open market pursuant to the procedure prescribed in section 4.29.260 through 4.29.280 and without observing the procedure prescribed in section 4.12.110 through 4.29.270; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than two thousand five hundred dollars.

B. Notwithstanding the dollar amount contained in this Code, purchases of motor vehicle fuel for use in city vehicles may be completed using open market or informal bid procedures as required in the best interests of the city.

(Ord. 324 §1, 2008)

The purchasing agent shall also solicit formal sealed bids from responsible suppliers whose names are on the approved vendors' list, or who have made written request that their names be added thereto.

(Ord. 324 §1, 2008)

Where deemed necessary by the purchasing agent, formal bids shall be accompanied by security, either cash, cashier's check, certified check or surety bond, in a sum equal to ten percent of the total aggregate of the bid, and shall be designated in the notice inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit the bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is solely responsible for the delay in executing the contract. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder who is willing to execute the contract, or may reject all bids and re-advertise.

(Ord. 324 §1, 2008)

A faithful performance bond and labor and material bond shall be required for all public projects, unless waived by the city council, in an amount reasonably necessary to protect the best interests of the city. In addition, the city council shall have authority to require a faithful performance bond or other bonds before entering into a contract other than a public project contract. If bonds are required, the form and amount thereof shall be designated in the notice inviting bids.

(Ord. 324 §1, 2008)

Sealed bids shall be submitted to the purchasing agent and shall be identified as "bids" on the envelope. The purchasing officer, or designee, shall publicly open all bids at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection in the purchasing office during regular business hours for a period of not less than thirty calendar days after the bid opening.

(Ord. 324 §1, 2008)

In its discretion, the city council may reject any and all bids presented and may cause re-advertising for bids pursuant to the procedure hereinabove prescribed. However, when all bids exceed the authorized budgeted amount, the city manager may authorize rejection of all bids and authorize re-bidding based upon the original specification or as they may be modified, in accordance with procedures prescribed herein.

(Ord. 324 §1, 2008)

Except as otherwise provided herein, formal bid contracts shall be awarded by the city council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the city council pursuant to findings and recommendations presented by the purchasing agent at the time of award of contract.

(Ord. 324 §1, 2008)

If two or more formal 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 re-advertising for bids, the city council may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract.

(Ord. 324 §1, 2008)

When no formal bids or no responsive bids are received the purchasing officer is authorized to negotiate for written proposals, and make recommendation to the city manager and the award, if any, shall be made in accordance with applicable provisions prescribed herein. A responsive bid is defined as a bid which conforms in all material respects to the terms and conditions, the specifications and other requirements of the invitation for bid/request for proposal.

(Ord. 324 §1, 2008)

After the award of any bid, anyone who submitted a bid who wishes to challenge the bid procedure, the bids, or the award of the bid shall file a written protest within ten days of the award of the bid with the city attorney, stating the reasons for the challenge. The city attorney shall review the protest and provide the protestor with a written reply regarding the protest. Following the city attorney's decision, the protestor shall have ten days to file an appeal with the city council. The council shall review the protest and provide the protestor with a written reply regarding the protest. Failure to file a timely initial written protest or appeal waives any such challenge to the bid procedure, the bids or the award of the bid.

(Ord. 324 §1, 2008)

Purchases of supplies and equipment of an estimated value in the amount of twenty thousand dollars or less may be made by the purchasing agent in the open market pursuant to the procedure prescribed in section 4.29.240 through 4.29.250 and without observing the procedure prescribed in section 4.29.110 through 4.29.210; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than two thousand five hundred dollars.

(Ord. 324 §1, 2008)

Open market purchases shall, wherever possible, be based on at least three informal bids, and shall be awarded to the bidder offering the most advantageous bid to the city after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors.

(Ord. 324 §1, 2008)

The purchasing agent shall keep a written record of all open market purchases and informal bids for a period of two years. This record, while so kept, shall be open to public inspection.

(Ord. 324 §1, 2008)

Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following instances:

A. When the commodity and/or service can be obtained from only one responsible source;

B. The city manager may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. All emergency purchases which would otherwise require formal bidding procedures made pursuant to this section shall be submitted to the city council for ratification at the next regular council meeting after the purchase is authorized;

C. Contracts for personal services, for professional and consultant services, and for other, non-public projects and contractual services may be executed without observing the bidding procedures provided herein;

D. Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity.

(Ord. 324 §1, 2008)

A. Definitions:

"Local business" shall mean any business which regularly maintains a primary office or place of business within the corporate limits of the city.

"Preference" shall mean the reduction factor applied to the bid and/or estimate of a local business pursuant to this section.

"Reduction factor" shall mean the amount by which any bid or estimate submitted by a local business shall be deemed by the city to be reduced as a preference for a local business in the city's award of a city bid, contract and/or section of a city contract.

B. Requirements of Preference in the Award of Town Bids/Contracts. In evaluating any bid and/or estimate or in otherwise selecting a contractor for any city contract for which the city selects a business on the basis of a comparison of the price of bids or estimates, the city shall provide any local business with the preference specified in this section. The city's share of the sales tax which is attributable to purchases related to the contract or bid made by the local business within the city or to other activities of the local business related to the contract or bid which generate taxable sales within the city. The amount of sales tax generated by the purchases or other activities of the local bidder shall be the reduction factor for comparison of the submitted bids. Application of the reduction factor in the award of the contract or bid shall not actually reduce the amount ultimately paid by the city to the successful bidder and/or selected contractor.

C. Exemptions:

1. Bids/contracts to the extent which application of the provisions of this section would be prohibited by state or federal law or regulation.

2. Purchases resulting from emergency conditions where any delay in completion or performance of the contract would jeopardize public health, safety or welfare of the citizens of the city, or where, in the judgment of the city manager or his/her designee, the operational effectiveness or a significant city function would be seriously threatened if the purchase was not made expeditiously.

3. Where, for reasons other than price or the amount of a bid or estimator, the city determines that a bid is unresponsive and/or, that the person, entity or business seeking the city award is unqualified and/or is not responsible.

4. Contracts with any single or sole source supplier for supplies, materials, equipment or other personal property.

5. Purchases made pursuant to a cooperative purchasing agreement with another governmental agency.

6. Contracts for personal, professional and consultant service upon which sales tax is not paid.

(Ord. 324 §1, 2008)

The purchasing agent shall have authority to exchange for or trade in on new supplies and equipment all supplies and equipment which cannot be used by any department or which have become unsuitable.

(Ord. 324 §1, 2008)

The purchasing agent shall have authority, subject to approval of the city manager, to dispose of surplus supplies or equipment by auction or by sale or otherwise after receiving bids or proposals which provide the maximum return to the city. City employees or officers may participate in the purchase of surplus supplies and/or equipment on the same basis as other members of the general public; provided, however, there is no direct bid involvement or conflict of any kind.

(Ord. 324 §1, 2008)

Notwithstanding the other provisions of this article, the city council may convey to charitable, nonprofit organizations surplus property as it is determined by the city council that the use to which the personal property will be put will be for the benefit of the general welfare of the community in matters such as recreation, education, aid to the destitute, beautification, or any other activity in which the city government may legitimately participate. The city council authorizes the city manager to convey to charitable, nonprofit organizations surplus property with a value of five hundred dollars or less which meets the aforementioned criteria relative to community benefit.

The organization accepting such personal property shall sign a statement that accepts such property on the condition that it will be used for the purpose designated by the city; that it shall not be used for any other purpose without the permission of the city and that if such property is ever diverted to other than a charitable use, the city may reclaim such property.

(Ord. 324 §1, 2008)