Tracy Municipal Code Art. 4 Purchasing Commodities, Equipment, and General Services

This Article 4 applies to the purchase of commodities, equipment and general services purchased on behalf of the City except for those supplies or materials governed by the California Public Contract Code (see Article 5). The purpose of this Article 4 is to establish efficient procedures for the purchase of commodities, equipment, and general services 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.

(Ord. No. 1380, 2-3-2026)

For purchases of less than Fifty Thousand Dollars and no/100ths ($50,000.00), purchases shall be made by purchase order, invoice, or other written purchase documentation approved by the City Manager or designee, and as to form by the City Attorney.

(Ord. No. 1380, 2-3-2026)

(a) Informal open-market procedure. The purchase of commodities, equipment, and general services from Fifty Thousand Dollars and no/100ths ($50,000.00) to One Hundred Thousand Dollars and no/100ths ($100,000.00) may be made in the open market, following the procedure prescribed below:

(1) Minimum number of quotations. Open-market purchases shall, whenever possible or unless otherwise brought before the City Council for approval, be based on at least three (3) quotations and shall be awarded to the lowest responsible quotation.

(2) Notice inviting quotations. The department making the purchase shall solicit quotations by written (including e-mail) or verbal request to prospective vendors.

(3) Quotations. Quotations shall be submitted in writing (including facsimile and e-mail) to the department, which shall keep a record of all open-market orders and quotes for a period of six (6) months after the submission of quotes or the placing of orders. This record is open for public inspection.

(4) Award of contracts. The City Manager is authorized to award a contract of up to One Hundred Thousand Dollars and no/100ths ($100,000.00) when the City Council has budgeted funds for the item(s) and the amount of the award is not more than the budgeted amount.

(b) Exceptions. The open-market procedure may be dispensed in the following situations:

(1) In an emergency as defined herein and as approved in writing by the City Manager or her/his designee;

(2) When the goods or general services can be obtained from only one source; or

(3) When the City Manager in his/her best judgment makes a written finding that compliance with these procedures is not in the best interest of the City.

(Ord. No. 1380, 2-3-2026)

(a) Formal contract procedures. The City shall purchase commodities, equipment and general services of a value greater than One Hundred Thousand Dollars and no/100ths ($100,000.00) following the formal bid procedure prescribed below:

(1) Notice inviting bids. The notice inviting sealed bids shall include a general description of the articles or general services to be purchased and shall state where bid forms and specifications may be secured, and the time and place for opening bids.

(i) Published notice. The notice inviting bids shall be posted at least ten (10) days before the date of the opening of the bids on the City's website.

(ii) Bidders' list. The City shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list.

(2) Bid opening procedure. Bidders shall submit sealed bids to the City Clerk or designee and shall identify them 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 open for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

(3) Rejection of bids. At his or her discretion, the City Manager, consistent with the Municipal Code and/or State or local law, may reject any and all bids presented, and may re-advertise for bids, or may present bids to the City Council for action.

(4) Award of contracts. The City Council shall award a contract for the purchase of commodities or equipment or general services with a value of One Hundred Thousand Dollars and no/100ths ($100,000.00) or more. A contract shall be awarded to the lowest responsible bidder, except as otherwise provided here. A contract may be awarded to the next lowest responsible bidder if the successful bidder refuses or fails to execute the contract.

(5) Tie bids. If two (2) or more bids received are for the same total amount or unit price and quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Manager or City Council may accept the one it chooses, or accept the lowest good faith offer by negotiation with the tie bidders.

(b) Exceptions. Bidding under this section may be dispensed with:

(1) In an emergency;

(2) When the purchase can be obtained from only one source which has been reviewed and approved in writing by the City Manager;

(3) When, in the determination of the City Council, compliance with the procedure is not in the best interest of the City for those commodities, equipment or general services.

(Ord. No. 1380, 2-3-2026)

It is unlawful to deliberately split into smaller orders the purchase of commodities, equipment, or general services for a single project for the purpose of evading the competitive bidding provisions of this article. Single project, for purposes of this section, means a single, integrated project or task completed by the City and intended to achieve a single outcome or objective. Multiple purchases of the same commodity or services for different projects, at different locations or for different uses, are not a single project.

(Ord. No. 1380, 2-3-2026)

(a) Leasing of purchasable or non-purchasable equipment shall be in accordance with the authority limits set forth in Article 2, depending upon the annual cost of the lease.

(b) Each contract for the leasing or rental of equipment for the City shall contain a provision permitting the City to terminate the contract at the end of any fiscal year during the term of the contract upon not less than thirty (30) days' written notice to the other party.

(Ord. No. 1380, 2-3-2026)

The City may inspect supplies, equipment, and general services delivered, and determine their conformance with the specifications set forth in the order or contract. A department head has the 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.

(Ord. No. 1380, 2-3-2026)

Nothing in this article prohibits the voluntary participation by the City in any cooperative purchasing agreement(s) or programs entered into between the City and another public agency. The City Manager is authorized to act under the provisions of this article to procure for the City general services, supplies or equipment 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. A separate agreement memorializing the terms negotiated on behalf of the City by the other public agency shall be executed between the City and the vendor.

(Ord. No. 1380, 2-3-2026)

To the extent that such is not prohibited under State or Federal law, regulations, or funding restrictions, a bid or proposal from a local vendor, as defined in Section 2.20.030(g), will be tabulated as if it were ten (10%) percent below the figure actually set forth in the bid or proposal to account for the financial advantages accruing to the City by the award of a bid to a local vendor. The City, when seeking bids or proposals for commodities or equipment, will notify bidders or proposers that bids or proposals will be evaluated on the basis of a local preference of ten (10%) percent of the bid or proposal price. The total amount of preference granted in a single bid shall not exceed Three Thousand Dollars and no/100ths ($3,000.00).

(Ord. No. 1380, 2-3-2026)

At the option of the department making the purchase, the bid specifications may include a five (5%) percent price preference to be given to recycled products. If included, the price preference shall be determined based upon the lowest price quoted by suppliers offering recycled products and the maximum amount of the price preference shall not exceed Ten Thousand Dollars and no/100ths ($10,000.00) per purchase. Persons submitting proposals or bidding to provide products or services to the City shall be notified of the City's preference for the use of recycled products, including the price preference. Bidders shall be asked to identify in writing to the City the types of recycled materials that will be used and to certify in writing the percentage and contents of recycled material and post-consumer recycled material in the product.

(Ord. No. 1380, 2-3-2026)