Temple City Municipal Code § 2-5-0 Adoption of Purchasing System

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services and equipment at the lowest possible cost commensurate with 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 hereby adopted. All purchases or services or supplies for "public projects" as defined in section 20161 of the Public Contract Code (or any successor to that section) shall be made in accordance with the Public Contract Code and with sections 2-5-15 and 2-5-17, as applicable, of this chapter. All other purchases of supplies, services and equipment shall be made in accordance with this chapter. (Ord. 10-937)

There is hereby created a centralized purchasing department in which is vested authority for the purchase of supplies, services and equipment. (Ord. 10-937)

There is hereby created the office of purchasing officer, who shall be appointed by the city manager. The purchasing officer shall be the head and have general supervision of the purchasing department. The purchasing officer shall have authority to:

A. Purchase or contract for supplies, service and equipment required by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing department and such other rules and regulations as shall be prescribed by the city council;

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

C. Act to procure for the city the needed quality in supplies, services 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 of supplies, services and equipment for the city;

F. Prepare and recommend to the city council 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 reasonably necessary to the operation of this chapter and other rules and regulations;

I. Supervise the inspection of all supplies, services and equipment purchased to ensure conformance with specifications;

J. 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 city use; and

K. Maintain a bidder's list, vendor's catalog file and records needed for the efficient operation of the purchasing department. (Ord. 10-937)

All departments using the purchasing department shall file detailed estimates of their requirements in supplies, service and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe. (Ord. 10-937)

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. (Ord. 10-937)

Using departments shall submit requests for supplies, services and equipment to the purchasing officer by standard requisition forms. (Ord. 10-937)

Purchases of supplies, services and equipment shall be made only by purchase order or, where appropriate, by formal written contract. (Ord. 10-937)

The purchasing officer, with approval of the city council, may authorize in writing any department to purchase or contract for specified supplies, services and equipment independently of the purchasing department; but shall require that such purchases or contracts be made in conformity with 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. (Ord. 10-937)

A. Without complying with the requirements of sections 2-5-10 and 2-5-11 of this chapter, the purchasing officer may participate in a cooperative purchasing agreement for the procurement of any supplies or equipment with any federal, state, county or local government agency when that agency has made their purchases in a competitive manner. The purchasing officer may participate in a cooperative purchasing agreement when the city can obtain supplies or equipment at a purchase price lower than that which the city can obtain through its normal purchasing procedures. In those instances where it is determined that purchasing through the federal, state, county or local government agencies will result in savings to the city, the purchasing officer is authorized to make such purchases.

B. The purchasing officer may also buy directly from a vendor at a price established by competitive bidding by another federal, state, county or local government agency in substantial compliance with sections 2-5-10 and 2-5-11 of this chapter even if the city has not joined with that public agency in a cooperative purchase agreement. (Ord. 10-937)

Purchases of supplies, equipment, or services and sales of personal property of an estimated value in an amount more than five thousand dollars ($5,000.00) but less than twenty five thousand dollars ($25,000.00) may be made by the purchasing officer in the open market without observing the procedure prescribed in section 2-5-11 of this chapter. Purchase orders shall, whenever possible, be based on at least three (3) informal quotes. (Ord. 10-937)

Purchases of supplies, services, or equipment and the sale of personal property of an estimated value in excess of twenty five thousand dollars ($25,000.00) shall be by bid procedures pursuant to this section and section 2-5-11 of this chapter. Bidding shall be dispensed with only when an emergency requires that an order be placed with the nearest available source of supply, when the city council by a four-fifths (4/5) majority determines after opening of bids that rejection of all bids and purchase on the open market will best serve the city, or when the commodity can be obtained from only one vendor. (Ord. 10-937)

Except as otherwise provided herein, purchases and contracts for supplies, services, equipment and the sale of personal property of estimated value greater than twenty five thousand dollars ($25,000.00) shall be by purchase order or written contract with the lowest (or for purposes of section 2-5-16 of this chapter, highest) responsible bidder, as the case may be, pursuant to the procedure prescribed; herein:

A. Notice Inviting Bids: Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured and the time and place for opening bids.

1. Published Notice: Notice inviting bids shall be published at least ten (10) days before the date of opening of the 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 (3) public places in the city that have been designated by ordinance as the places for posting notices.

2. Bidder's List: The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidder's list or who have requested their names to be added thereto.

3. Bulletin Board: The purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the city hall;

B. Bidder's Security: When deemed necessary by the purchasing officer, bidder's security 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 second lowest bid, and the surplus, if any, shall be returned to the lowest bidder;

C. Bid Opening Procedure: Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be opened for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening;

D. Rejection Of Bids: In its discretion, the city council may reject any and all bids presented and readvertise for bids;

E. Award Of Contracts: Contracts shall be awarded by the city council to the lowest responsible bidder who meets the quality requirements. The decision of the city council shall be final. For purchases of supplies and equipment, determination of the "lowest responsible bidder" may include the adjustment of the bid price of a qualifying local vendor (as defined in subsection 2-5-17B1 of this chapter) according to the local vendor preference procedures described in subsection 2-5-17B3 of this chapter. For purposes of this section, a "responsible bidder" means a bidder who has demonstrated the quality, fitness, capacity, and experience to satisfactorily perform the particular requirements of the city;

F. 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 it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening;

G. Performance Bonds: The city council shall have authority to require a performance bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 10-937)

The purchasing officer shall inspect supplies and equipment delivered and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have authority to require chemical and physical tests of sample submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. 10-937)

The city manager shall sign all professional service contracts on behalf of the city. Professional services contracts will be prepared in accordance with the city's standard consultants services agreement. The process for securing professional services will be through negotiation or through request for proposal subject to the contract value limitations of sections 2-5-9 and 2-5-10 of this chapter. (Ord. 10-937)

During times of emergency, as concurred in by the city council or the city manager, mayor and city attorney, purchases necessary to meet such emergency may be made without compliance with this chapter. (Ord. 10-937)

Whenever the city seeks to construct any public work, other than transportation facilities, with design and construction costs in excess of one million dollars ($1,000,000.00), the city council may proceed to contract therefor as a design/build project in compliance with California Public Contract Code section 20175.2, as amended, or any later enacted statute regulating design/build contracts. (Ord. 10-937)

All using departments shall submit to the purchasing officer at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to sell all supplies and equipment which cannot be used by any department or which have become unsuitable for city use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to sections 2-5-9, 2-5-10 and 2-5-11 of this chapter, as applicable. (Ord. 10-937)

A. The city has established a local vendor preference program to be applied in the procurement of supplies and equipment under section 2-5-11 of this chapter.

B. The adjustment to bids provided for under the local vendor preference program shall be implemented according to the following:

1. Qualification For Local Vendor Preference: In the procurement of supplies and equipment for the city's requirements, preference shall be given to those vendors who: a) qualify as a local vendor ("qualifying local vendor") under this subsection and b) submit a written statement in their bid package requesting to be considered a qualifying local vendor. In order to qualify as a local vendor, the bidder must certify the following information as part of the bid package:

a. It has fixed facilities with employees located within the city limits;

b. It has a business street address (post office box or residential address shall not suffice to establish a local presence);

c. All sales tax returns for the goods purchased must be reported to the state through a business within the geographic boundaries of the city; and

d. It has a city business license.

2. False Certifications: False certifications shall be immediate grounds for rejection of any bid or if the bid is awarded, grounds for voiding the bid, terminating any agreement, and seeking damages thereto. Failure to certify the above information shall result in the bid being considered by the city without any adjustment for a local vendor as described in subsection B3 of this section.

3. Application Of Local Vendor Preference: The bid of a qualifying local vendor shall be adjusted according to the following procedures:

a. In the tabulation of bids to determine the lowest responsible bidder, the bid of each qualifying local vendor shall be reduced by five percent (5%).

b. The reduced bid price of the qualifying local vendor will then be compared to the other bids received by the city to determine the lowest responsible bidder under section 2-5-11 of this chapter. Notwithstanding this reduction for purposes of determining the lowest responsible bidder, the contract amount with the lowest responsible bidder shall be at the bid price. (Ord. 10-937)