Taft Municipal Code Ch. 9 Purchasing System

In order to clearly define authority for the purchase of required goods and services, to establish procedures to purchase such goods and services at the lowest possible cost to the city; and to exercise positive financial control over the purchasing function, the city council hereby establishes a city purchasing system pursuant to section 54203, California Government Code. (Ord. 634-95, 6-20-1995)

There is hereby created the position of purchasing officer. The city manager shall serve as purchasing officer and as head of the purchasing department. The city manager may delegate these duties to a purchasing officer appointed by the city manager or, in the alternative, the duties of the purchasing officer may be combined with those of any other office or position under direction of the city manager. The purchasing officer shall:

(A) Purchase or contract for goods and services required by any department of the city in accordance with purchasing procedures prescribed by this chapter and in accordance with such other rules and regulations as may be prescribed by the city council or by the city manager or through administrative policies and procedures adopted by the purchasing officer for the internal management and operation of his department.

(B) Negotiate and recommend execution of contracts for the purchase of goods and services.

(C) Act to procure for the city the necessary quality and quantity of goods and services at least expense to the city.

(D) Discourage uniform bidding and attempt to obtain as full and open a competition as is economically possible on all orders.

(E) Keep informed of current developments in the areas of purchasing, pricing, market conditions and new products.

(F) Prescribe and maintain administrative policies and procedures as may be reasonably necessary to the operation of this chapter and to rules and regulations promulgated in accordance herewith.

(G) Supervise the inspection of goods and services purchased to ensure conformance with plans and/or specifications.

(H) Initiate transfer of surplus and/or unused goods between departments as needed.

(I) Initiate sale and/or disposal of surplus, unused, unneeded and/or obsolete goods which cannot be used by any department and which have become unsuitable for city use. (Ord. 634-95, 6-20-1995)

(J) In all cases in which a contract for goods or services is required, the process shall be as follows:

1. Direction by city council to city manager regarding the purchase or contract for goods or services required by the city;

2. Negotiation by city manager of purchase or contract for goods or services required by the city consistent with city council direction;

3. Review of proposed purchase agreement or contract by city attorney;

4. Approval of proposed purchase or contract by ordinance or resolution of the council;

5. Execution of purchase agreement or contract by mayor, unless execution by another city official is authorized by council. (Ord. 780-10, 3-2-2010)

(A) There is hereby created a centralized purchasing function in which is vested the authority to purchase all goods and services required by the city.

(B) The purchasing officer may authorize any department to purchase or contract for specialized goods and/or services independent of the centralized purchasing function. All such authorizations shall require that purchases or contracts be made in accordance with provisions of this Chapter. (Ord. 634-95, 6-20-1995)

Except as otherwise provided, the Purchasing Officer or his designee shall not issue any order or any purchase order for goods or services unless there exists an unencumbered appropriation duly authorized for expenditure in the fund account against which the purchase is to be charged. (Ord. 634-95, 6-20-1995)

Except as otherwise provided in this Chapter, purchase orders or a formal written contract for the purchase of goods or services may only be issued by the Purchasing Officer. (Ord. 634-95, 6-20-1995)

Except as otherwise provided in this Chapter, the purchase of goods and services shall be consistent with the procedures contained in this Chapter in the rules and regulations promulgated pursuant hereto. (Ord. 634-95, 6-20-1995)

Except as provided herein, purchases and contracts for goods and services, and for the sale of personal property with an estimated value greater than the threshold level for formal bid requirements shall be by written contract pursuant to the procedure prescribed in this Section:

(A) Notice Inviting Bids: Notice inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid documents, including plans and specifications, if any, may be secured and the time, date and place for opening bids.

(B) Published Notice: Notice inviting bids shall be published at least ten (10) days before the scheduled opening of bids. Notice shall be published at least once in a newspaper of general circulation in the greater Taft area. In the event there is no potential bidder for required supplies, service or equipment within the area of circulation and no bidders were solicited, the City Clerk shall cause the notice inviting bids to be published at least ten (10) days before the scheduled opening of bids in a trade publication or other publication likely to receive the attention of prospective bidders. It shall be the responsibility of prospective bidders to be self-informed of such publications and no other form of communication shall be deemed necessary to inform prospective bidders of the notice.

(C) Bid Bond: When deemed necessary by the Purchasing Officer, a bid bond may 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 contract within ten (10) 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 difference between the low bid and the next lowest bid and the surplus, if any, shall be returned to the lowest bidder. Any subsequent refusals or failures to execute the contract under the terms shall continue in like fashion as the first lowest bidder and the second lowest bidder.

(D) Business License Required: All bidders shall be required to have a business license prior to award of bid.

(E) Performance, Labor, Material And Other Bonds: The City Council shall have authority to require performance, labor, material and other bonds before entering a contract in such amount as they shall find reasonably necessary to protect the best interests of the City. If the City Council requires such a bond, the form and amount of the bond shall be described in the notice inviting bids. Such a bond in said amount shall be furnished by a surety authorized to do a surety business in the State or in other such manner as may be allowed by law.

(F) Insurance Requirements: The City Council shall have authority to require sufficient evidence of insurance before entering a contract in such amount as they shall find reasonably necessary to protect the interests of the City. If the City Council requires such insurance, the form and amount of the insurance shall be described in the notice inviting bids.

(G) Certification Requirements: The City Council shall have authority to require sufficient evidence of certification before entering a contract in such amount as they shall find reasonably necessary to protect the best interests of the City. If the City Council requires such certification, the same shall be described in the notice inviting bids.

(H) Submission Of Bids: Bids shall be submitted in sealed packages and: 1) addressed to the office specified in the solicitation, 2) showing the date and time specified for receipt, and 3) the solicitation number, name and address of the bidder. Bids must be submitted in sufficient time so that they will be delivered to the bid opening room prior to the scheduled time of bid opening. The only acceptable evidence establishing the time of receipt at the specified office shall be the time/date stamp or other documentary evidence of receipt maintained by such an office.

(I) Submission Of Bid Modifications Or Withdrawals: Bid modifications or withdrawals must be submitted in like manner as the submission of bid. The bid may be withdrawn or modified in writing or in person by a bidder or its authorized representative if, before the scheduled bid opening, the identity of the requester is established and if upon request for withdrawal the same signs a receipt for the bid. A telephone request for any submittal or its modification or withdrawal is strictly prohibited. A facsimile request for any withdrawal must be in like form as described herein and in the solicitation, the bidder bears the sole responsibility for its delivery to the bid opening room before the scheduled time of bid opening and for the clarity thereof. Final determination shall be the City's.

(J) Bid Opening Procedures: Unless otherwise provided in the notice inviting bids, bids shall be opened in the Council Chambers of the City located at 209 E. Kern Street, Taft, CA 93268. Bid openings shall be open to the public. The department head or a representative most closely affected by the bid shall be present at the bid opening. The bid opening officer or a representative shall decide when the time set for opening bids has arrived and shall inform those present of that decision. The officer shall then: 1) personally and publicly open all bids which were received prior to the scheduled time of bid opening, 2) if practical, read the bids aloud to the persons present, and 3) have the bids recorded. Following the bid opening, the department head or representative shall prepare a tabulation of bids and submit the same to the City Council along with an appropriate recommendation as to disposition of bids. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(K) Rejection Of Bids: With discretion, the Purchasing Officer may recommend to the City Manager rejection of any and all bids by the City Council and readvertise for bid.

(L) Award Of Contracts: With discretion, the Purchasing Officer may recommend to the City Manager contracts to be awarded by the City Council to the lowest responsive and responsible bidder except as otherwise provided in this Chapter.

(M) Tie Bids: If two (2) 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 City Council may accept the one they choose or accept the lowest bid made by negotiation prior to the time of award.

(N) No Bids: If either no bids are received or none meet the specifications, the Purchasing Officer may proceed to have the services performed or the supplies purchased without further competitive bidding.

(O) Waiver Of Requirements: The Purchasing Officer may waive any informalities or minor irregularities in the bids which are deemed to have no effect upon the essential requirements of the solicitation.

Where it is deemed to be in the best interests of the City, the City Council, upon motion duly carried, may waive the procedures required in this Section, and may authorize the Purchasing Officer to purchase supplies, equipment and contract services pursuant to the procedure prescribed in Section 1-9-9 of this Chapter. (Ord. 634-95, 6-20-1995)

The following purchases, contracts or obligations shall, at the Purchasing Officer's discretion, be exempt from the bidding requirements of this Chapter:

(A) Emergency Purchases:

1. Purchases of goods and/or services made by any employee authorized by the Purchasing Officer or by the department head in any emergency are exempt.

2. In emergency situations, the Purchasing Officer has authorization to expend City funds without limitation by way of amount and without the requirement for either formal bids or quotations. The Purchasing officer has authorization to conclude that an emergency exists without further declaration by the city council. Expenditures made during an emergency must be reported to the city council at the next regular meeting if such expenditure would have otherwise required authorization by the city council.

3. An "emergency" as used in this section exists during the following types of conditions: if needed goods and/or services would cause undue delay for the preservation of life or property or to prevent the breakdown of a city service at substantial expense to the city. All such emergency purchases secured under this section shall be approved or confirmed by the purchasing officer or, upon his refusal to do so, by the city council by a majority vote of the entire council, and unless so approved, the cost thereof shall not constitute a legal charge against the city, but shall constitute a charge against the person making the purchase. No purchase or contractual service shall be approved or confirmed by the purchasing officer or by the city council under this section, except by an express finding by same that an emergency did actually exist at the time of the emergency purchase.

(B) Professional Services Or Specialized Services: Service of a professional nature or specialized services including, but not limited to, services rendered by architects, attorneys, accountants, auditors, engineers and other professional consultants are exempt provided, however, that the city council may provide for the procurement of such services by resolution.

(C) Cooperative Agreements: Purchases made at contract prices awarded by federal or state governments or by any political subdivision thereof or pursuant to a cooperative purchasing agreement are exempt.

(D) Petty Cash Funds: Purchases made from petty cash funds as authorized by the city manager or a designated representative thereof are exempt.

(E) Exclusive Item: In those instances in which the city's requirements can be met solely by a single patented article or process including, but not limited to, upgrades, alterations, additions, deletions to an existing proprietary article or process, or in which a warranty, guarantee or other assurances could be voided.

(F) City Employees: Any work performed by the city with its own employees. Such work may be subject to provisions of section 20161, California Public Contracts Code.

(G) Prison Contracts: Contracts for the purchase of goods from the prison industry authority or any other entity offering for sale items made by and through prison inmate labor are exempt.

(H) Public Project Supplies And Materials: In accordance with provisions of section 20161, California Public Contracts Code, purchase of supplies and materials for public projects in excess of prescribed dollar limits shall be by written contract with the lowest responsible bidder. A "public project" is defined as:

1. A project for the erection, improvement, painting or repair of public buildings and works;

2. Work in or about streams, bays, waterfronts, embankments, or other work for protection against overflow;

3. Street or sewer work, except maintenance or repair; or

4. Furnishing supplies or materials for any such project including maintenance or repairs of streets and sewers.

(I) Open Market Purchases: "Open market purchases" are purchases which are under the threshold level of formal bidding requirements. In such instances, the purchasing officer may solicit as many quotations as he deems to be in the best interest of the city. (Ord. 634-95, 6-20-1995)

Purchase of goods and services and sale of personal property of an estimated value less than the threshold level of the formal bid may be made by the purchasing officer without observing the procedures prescribed by section 1-9-7 of this chapter. (Ord. 634-95, 6-20-1995)

(A) Minimum Number Of Quotations: Open market purchases shall, whenever possible and practical, be based on at least three (3) quotations, at least one of which shall be a local vendor if available, and at least one of which shall be a vendor located outside the greater Taft area. Open market purchases shall be awarded to the lowest responsive and responsible supplier. (Ord. 703-03, 5-20-2003)

(B) Solicitation Of Quotations: The purchasing officer shall solicit quotations by written, fax, or other such standards of business communications to selected prospective vendors as he may deem appropriate. Quotations shall be submitted to the purchasing officer who shall keep a record of all quotations submitted in competition thereon. Such records shall be open to public inspection during business hours. Records of such open market orders or purchases may be disposed of by the purchasing officer in the manner provided by law. (Ord. 634-95, 6-20-1995)

Except as otherwise provided in this chapter, all thresholds for open market and formal bid procedures for the purchase of goods and services and for the sale of personal property shall be in accordance with California law governing general law cities and with administrative policies and procedures of the city. (Ord. 634-95, 6-20-1995)

The city department receiving or using goods and/or services purchased pursuant to this chapter shall inspect all goods delivered and all services performed to ascertain their conformity with the plans and/or specifications set forth in the contract. All deficiencies in such goods or services shall be forthwith reported to the purchasing officer. The city retains the right to require chemical and physical tests of material samples submitted with bids and samples of goods delivered to ascertain their quality and conformance to specifications 1 . (Ord. 634-95, 6-20-1995)

(A) Grant Of Bid Preference: In awarding bids pursuant to section 1-9-7 of this chapter, the city council may, at its discretion, grant qualified local vendors a bidding preference of five percent (5%). Such preference, however, shall not exceed the aggregate sum of one thousand dollars ($1,000.00) for any contract awarded under this chapter.

(B) Open Market Bid Preference: In purchasing goods and services pursuant to section 1-9-9 of this chapter, the purchasing officer may grant qualified local vendors a preference of five percent (5%). Such preference, however, shall not exceed the aggregate sum of five hundred dollars ($500.00) for any responsive and responsible supplier.

(C) Definition: For purposes of this section, a "local vendor" shall be defined as any individual, partnership or corporation which regularly maintains a place of business and an inventory of merchandise for sale within the corporate limit of the city. (Ord. 703-03, 5-20-2003)

(A) Bidding Preference: In awarding bids pursuant to Section 1-9-7 of this chapter, the purchasing officer may, at his discretion, grant a bidding preference in accordance with administrative policy and procedure for any contract awarded under this chapter for items which are either recycled, recyclable, reusable or provide waste minimization. Such preference shall be in accordance with performance, price, delivery, and other requirements and are deemed equivalent or acceptable by the purchasing officer.

(B) Environmentally Preferable Practices: The city of Taft will act to make resource conservation an integral part of its waste reduction and recycling programs. The practice of discarding materials used in the city facilities is wasteful of natural resources, energy, and money.

1. The city will integrate the concept of resource conservation, including waste reduction and recycling, into its environmental programs.

2. The city will decrease the amount of waste of consumable materials by:

(a) Reducing the consumption of consumable material wherever possible.

(b) Fully utilizing all material prior to disposal.

(c) Minimizing the use of nonbiodegradable products wherever possible.

3. The City will cooperate with, and participate in, recycling efforts being made by the City and County. As systems for recovering waste and recycling develop within the City limits, the City will participate by appropriately separating and allowing recovery of recyclable waste products.

4. All vendors providing paper products and printing and writing paper shall:

(a) Provide recycled-content paper products and recycled-content printing and writing paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, if fitness and quality are equal, and available at equal or lesser price.

(b) Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

(c) Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.

(d) Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12.

(e) Provide records to the City’s recovered organic waste product procurement recordkeeping designee of all paper products and printing and writing paper purchases within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by any division or department or employee of the City. Records should include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in Sections 1-9-13(B)3. and 13(B)4. for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products are provided, include a description of why recycled-content paper products were not provided.

(C) Representatives of the City will actively advocate, where appropriate, for resource conservation practices to be adopted at the local, regional, and national levels. (Ord. 766-08, 5-6-2008; amd. Ord. 837-20, 8-18-2020)

(A) All departments shall submit reports identifying all supplies and equipment which are no longer used or which have become obsolete or worn out beyond reasonable repair at such time and in such manner as prescribed by the purchasing officer. The purchasing officer shall have the authority to sell such supplies and equipment at fair market value or at public auction or to exchange them for, or as a trade-in on, new supplies or equipment. Should surplus supplies and/or equipment have negligible market value, the purchasing officer may sell such items for salvage value or may donate, recycle or otherwise dispose of same.

(B) The amount received for any property sold pursuant to this chapter shall be deposited in the appropriate fund as determined by the finance department. (Ord. 634-95, 6-20-1995)

The purchasing officer or the head of the finance department, with approval of the city manager, may authorize refunds for business licenses, building permits, zoning permits, sewer service fees, refuse disposal fees and other amounts collected by the city in error. All such refunds shall be granted in accordance with applicable policies and procedures of the city, if any. (Ord. 634-95, 6-20-1995)