Twentynine Palms Municipal Code Ch. 3.01 Purchases

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure the City's supplies, services and equipment meet the quality needed, to exercise fiscal and budgetary control over purchases, to clearly define authority of the purchasing function and to assure the quality of purchases and to promote economic development, a purchasing system is hereby adopted.

(Ord. 149 § 2(part), 1998; Ord. 170 § 1 (part), 2003)

The City Manager shall have authority to:

(a) Purchase or contract for supplies, services and equipment required in accordance with purchasing procedures prescribed by this Chapter, such administrative policies as he or she shall adopt, and such other rules and regulations as shall be authorized;

(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 the 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 implement policies relating to purchases and contracts for supplies, services, and equipment;

(f) Keep informed on current developments in the field of purchasing, prices, market conditions and new products;

(g) Inspect or supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications;

(h) 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;

(i) Maintain a bidders' list, vendors catalog file, and records needed for the efficient implementation of this Chapter; and

(j) Dispose of surplus, worn out or obsolete supplies and equipment by advertising and public bid; provided, however, no bid will be made or accepted from any employee or officer of the City. In the event there are no acceptable bids from the public, bidding may then be opened to employees.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

The City Manager may authorize any designated employee to purchase or contract for specified supplies, services and equipment so long as such purchases or contracts are made in conformity with the procedures established by this Chapter, and any established administrative policies.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Notwithstanding any other section herein, and unless State law sets a lowest bidder requirement, fitness and quality being equal, the City Manager or the City Council shall have the authority to grant local preference when awarding any contract for the purchase of supplies, materials, equipment or services pursuant to the following criteria:

(a) A preference may be given to any service contractor with a fixed office in the City of Twentynine Palms if the bid of the contractor does not exceed the lowest bid or prices quoted by other contractors by more than five percent (5%).

(b) A preference may be given to any service contractor within the Morongo Basin if the contractor's bid does not exceed the lowest bid or price quoted by other contractors by more than two percent (2%).

Application of the preference in the award of the contract shall mean the amount by which the local contractor bid or provided an estimate shall be deemed reduced by the City's bid award or selection process and shall not actually reduce the amount ultimately paid by the City to the successful bidder.

(Ord. 170 § 1(part), 2003)

(Ord. No. 270, § 1, 2-9-2016)

All using departments shall file detailed estimates of their requirements in supplies and equipment in such manner, at such time and for such periods as the City Manager shall prescribe.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Using departments shall submit requests for supplies, services and equipment to the City Manager.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Purchases of supplies, services and equipment costing more than one thousand dollars ($1,000.00) and less than twenty-five thousand dollars ($25,000.00) may be made by purchase order, approved by the City Manager or his or her designee.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Except in cases of emergency, the City Manager shall not issue any purchase order for supplies, services or equipment unless there are funds budgeted and for which no funds are committed by previous purchases. In any such instances, the restrictions on the use, transfer or accountability of funds shall apply.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Professional services, including, but not limited to, legal, medical, certified public accountants, insurance brokers or involving experts for the study and report on any municipal issue, may be procured without complying with the bidding procedures required by this Chapter. In procurement cases of this type, the selection of the professional service must, of necessity, depend on qualifications and cost, and therefore be a matter of value judgment. In securing professional services with fees exceeding twenty-five thousand dollars ($25,000.00), the City Manager shall make the award recommendations, and the City Council shall make the selection. A request for proposal for information/qualification screening process may be utilized in selecting such professional services.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

All purchases of supplies, services and equipment and the sale of personal property shall be by bid procedures pursuant to Sections 3.01.100 and 3.01.110. Bidding shall be dispensed with only when the commodity can be obtained from only one vendor, when the amount involved is less than Two Thousand Five Hundred Dollars ($2,500.00), or when an emergency requires that an order be placed with the nearest available source of supply.

An emergency shall be deemed to exist if:

(a) There is a great public calamity, such as an extraordinary fire, flood, storm, earthquake, epidemic or other disaster;

(b) There is an immediate need to prepare for national or local defense; or

(c) There is a breakdown in machinery or an essential service which requires the immediate purchase of supplies or services to protect the public health, welfare or safety and the City Council by majority vote determines that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property. The City Council, by majority vote, may dispense with bidding and other procedures required by this Chapter in any individual instance upon a finding that it would be impractical, useless or uneconomical in such instance to follow these procedures and that the public interest would be promoted by dispensing with these procedures.

(Ord. 149 § 2(part), 1998)

Purchases of supplies, equipment, contractual services and sales of personal property of an estimated value of less than twenty-five thousand dollars ($25,000.00) may be made in the open market, pursuant to the procedure herein:

(a) Open market purchases shall, whenever possible, be based on at least three (3) quotes;

(b) The City Manager or his or her designee shall solicit quotes by either written request, by telephone or by public notice posted on a public bulletin board in or adjacent to City Hall;

(c) An informal record shall be made of all quotes requested and those received.

This record shall be included with the invoice when payment is authorized; and

(d) Even though informal bids are solicited, purchases over twenty-five thousand dollars ($25,000.00) must be approved by the City Council.

(Ord. 149 § 2(part), 1998; Ord. 170 § 1 (part), 2003)

(Ord. No. 270, § 1, 2-9-2016)

The City of Twentynine Palms has adopted the uniform construction cost accounting procedures set forth in Article 2 commencing with Section 22010 of the California Public Contract Code. Formal bidding procedures will be carried out as described in that Code.

(Ord. 149 § 2(part), 1998)

No purchases of supplies, services or equipment shall be split or separated into smaller orders or projects for the purpose of evading any provisions of this Chapter.

(Ord. 149 § 2(part), 1998)

After a contract has been awarded by the City Council, incremental change orders may be processed under a purchase order duly issued, when both of the following conditions are met:

(a) The amount of the incremental change order does not exceed Ten Thousand Dollars ($10,000.00);

(b) The change order does not exceed ten percent (10%) of the amount of the original contract.

All such change orders shall be approved in writing by the City Manager. There must be sufficient unencumbered funds within the department budget to commit for such a change order,

Change orders exceeding the conditions in subsections (a) and (b) of this section shall be approved by the City Council.

(Ord. 149 § 2(part), 1998)

All purchases of supplies, services and equipment shall be based upon a firm bid price whenever possible. In those cases where a firm bid price cannot be obtained due to extended delivery date, or the items or services are subject to rapid market fluctuations, a purchase order or contract may be awarded based upon an escalation clause related to a national or other established index or formula, or upon a periodic fixed percentage increase.

(Ord. 149 § 2(part), 1998)

From and after such time as the City Council has adopted a resolution electing to make the City subject to the Uniform Construction Cost Accounting Procedures set forth in Article 2 (commencing with Section 22010) of Chapter 2 of Part 3 of Division 2 of the California Public Contract Code, and has notified the State Controller of such election, the City Council may use the alternative procedures for the award of public projects as provided for in Section 3.01.160 in which formal bidding procedures are not required.

(Ord. 149 § 2(part), 1998)

Pursuant to Section 22034 of the California Public Contract Code, when using the alternative procedures authorized in Section 3.01.150, the following provisions shall apply to public projects for which formal bidding procedures are not required:

(a) Public works projects of forty-five thousand dollars ($45,000.00) or less may be performed by employees of the City by force account, by negotiated contract, or by purchase order.

(b) Public works projects of one hundred seventy-five thousand dollars ($175,000.00) or less may be let to contract by informal bidding procedures set forth in subsection (c) of this section.

(c) The following provisions shall be complied with in selecting contractors to perform public works projects pursuant to this section.

(1) The City Manager shall maintain a list of qualified contractors, identified according to categories of work. The list shall be developed and maintained in accordance with criteria established for such lists by the California Uniform Construction Cost Accounting Commission.

(2) Each contractor on the list for the category of work being bid, and/or all construction trade journals specified by the Commission to receive mailed notice of all informal and formal construction contracts being bid for work in San Bernardino County, as determined by the City Manager, shall be mailed a notice inviting informal bids.

(3) All mailings of notices to contractors and construction trade journals pursuant to subsection (c) of this section shall be completed not less than ten (10) calendar days before bids would be due pursuant to such notice.

(4) Each notice inviting informal bids shall describe the project in general terms, state how to obtain more detailed information about the project, and specify the time and place for submission of bids.

(5) The City Manager is authorized to award informal bids in amounts up to twenty-five thousand dollars ($25,000.00) and to delegate that authority to a department head or other designated employee at his or her discretion.

(6) If all bids received are in excess of one hundred seventy-five thousand dollars ($175,000.00), but less than one hundred eighty-seven thousand dollars ($187,000.00) the City Council may, by passage of a resolution by four-fifths (4/5) vote, award the contract to the lowest responsible bidder, if the City Council determines the estimate for the work was reasonable. If the City Council does not award the contract, the specifications must be reviewed and formal bids solicited.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)

Subject to approval of the City Manager or the City Council pursuant to the dollar approval limits as provided in Section 3.01.090 or Section 3.01.100 the City may attach to the formal bidding process or engage in cooperative purchasing agreements with any of the following agencies: any county government within California, or any city within such counties, the State of California or the Federal Government.

(Ord. 149 § 2(part), 1998)

All using departments shall submit to the City Manager, at such times and in such forms as prescribed, reports showing all supplies and equipment which are no longer used, obsolete or worn out. The City Manager 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 for City use. The City Manager shall also have the authority to dispose of surplus supplies and equipment by auction or by sale or otherwise receiving bids or proposals which, based upon judgment, provide the maximum return to the City.

(Ord. 149 § 2(part), 1998)

(Ord. No. 270, § 1, 2-9-2016)