Chapter 3.32 — PURCHASING

This chapter shall be known and may be cited as the "Competitive Bidding and Purchasing Ordinance," and is referred to as "this chapter." (Prior code § 2.17.01)

For the purposes of this chapter, the following definitions apply:

"City" means the City of Vernon.

"City Administrator" means the City Administrator or any individual designated in a written policy adopted by the City Administrator to carry out any duty set forth in this chapter.

"City Council" means the City Council of the City of Vernon.

"Competitive bidding" means the procurement process described in this chapter awarding a contract based on the lowest price bid by a responsive and responsible bidder.

"Competitive selection" means the procurement process described in this chapter, generally through a request for proposal process, awarding a contract based upon weighted selection factors which include qualifications and price.

"Contract" means an enforceable contract. An enforceable purchase contract is a type of contract.

"Informal selection" means the procurement process described in this chapter awarding a contract on factors which include price and does not require award to the lowest price bidder if there are other identified factors which outweigh the price differential.

"Labor" means services that are directly related to, or a part of, a public works project.

"Professional services" means services that are not directly related to, or a part of, a public works project.

"Public works" means all fixed works constructed for public use or protection, including, but not limited to, bridges, waterworks, sewers, natural gas works, fiber optics works, electric works, public buildings and street improvements.

"Purchase contract" means a pre-printed form contract issued by the Finance Department, through its purchasing administration, for the recipient to provide supplies, equipment, or services. The City Council shall approve the general terms and conditions of the purchase contract by resolution upon recommendation of the City Administrator, and the City Attorney shall approve the general form and any special terms and condition.

"Qualifications based selection" means the procurement process described in this chapter for architectural, construction management and related services, required by State law, generally through a request for proposal process, awarding a contract based upon weighted selection factors which include qualifications and not price.

"Services" includes labor and professional services.

"Signatory authority" means the authority to sign contracts and any other document which binds the City of Vernon, as explicitly granted or delegated either by a resolution of the City Council or by this chapter.

"Written administrative procedures" means the rules and regulations specified by this chapter, adopted by the City Administrator, approved as to legality by the City Attorney, and set forth on the City's website.

(Prior code § 2.17.01)

• A. All contracts shall be approved only by the City Council except contracts with a total value over the lifetime of the contract of up to $100,000.00.

• B. If, in the 12 months preceding the effective date of a proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000.00 pursuant to contracts with the vendor, then the proposed new, renewed, or otherwise amended contract shall be approved only by the City Council.

• C. The City Council approval of any contract may be made by duly made motion, entered upon the minutes of any properly noticed meeting. After the City Council has approved a contract, the contract and bonds, if any, shall be prepared and submitted to the contractor for execution. When the contract and bonds have been executed by the contractor and approved as to form by the City Attorney, the City Administrator is authorized to execute such contract on behalf of the City.

• (Prior code § 2.17.02)

• A. The City Administrator may approve and sign contracts with a total value over the lifetime of the contract of up to $100,000.00, which conform to the requirements of this chapter, to the standard contract terms and conditions set forth by resolution of the City Council, which are approved as to form by the City Attorney, and which are reflected in the then current City budget approved by the City Council.

• B. Other than as set forth in this chapter, signatory authority to bind the City in contract shall be granted or delegated to City employees or officials, only by other or further ordinance or by resolution of the City Council, stating the title of the position and the amount of the authority. The City Clerk shall maintain signature exemplars of all such approved signatories. Any contract signed by an officer or employee of the City without a proper grant or delegation of signatory authority is void.

• (Prior code § 2.17.03)

The City Administrator shall adopt written administrative procedures for the operation of a purchasing system and otherwise consistent with this chapter which shall include procedures for informal selection for issuing contracts and which may include a process for bid protests. The written administrative procedures will maximize the use of the City's website to publicize contracting opportunities, where appropriate, and inform the public about contract awards and proposed awards.

(Prior code § 2.17.04)

The Finance Department, through its purchasing administration, may award and issue purchase contracts with a total value over the lifetime of the contract of up to $50,000.00, where the process of award conforms with written administrative procedures adopted by the City Administrator.

(Prior code § 2.17.05)

• A. A competitive bidding process, requiring a notice inviting bids, specifications, security, bid opening and contract award, all as specified in this chapter, shall be required for all contracts with a total value over the lifetime of the contract of $50,000.00 or more for supplies, equipment, or services or other valuable consideration, to be furnished to the City, except for contracts otherwise excluded or exempt from competitive bidding requirements by the City Council, or by a provision of State law, by the City Charter or by this chapter. Bid specifications shall be approved by the City Administrator and approved as to form by the City Attorney. Where not otherwise provided by this chapter, the City Administrator shall adopt written administrative procedures for bid opening and for the preparation and execution of bids, purchase orders, and contracts.

• B. The bidding procedure for a public works or construction project may be completed in a two-part bidding process, including a published request for qualifications process, which determines responsive and responsible bidders, and a sealed price bid submittal among responsive and responsible bidders to determine the lowest bidder and according to additional procedures that may be adopted by resolution of the City Council.

• (Prior code § 2.17.06)

For contracts with a total value over the lifetime of the contract of more than $50,000.00 that are not required to be competitively bid and not otherwise exempt from competitive selection, a competitive selection process shall be provided which will be open to all persons qualified to perform such service. Requests for proposals shall be approved by the City Administrator and approved as to form by the City Attorney. Requests for proposals shall be issued, received and evaluated according to the written administrative procedures adopted by the City Administrator. Except as otherwise provided in this chapter, competitive selection of professional service providers shall be based upon weighted selection factors including demonstrated competence, the professional qualifications necessary for the satisfactory performance of the services required, and on the cost of providing the services. (Prior code § 2.17.07)

Procurement of architecture, landscape architecture, engineering, environmental, land surveying and construction management services shall be made on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required and according to the qualifications based selection process set forth in Government Code Section 4525 et seq., and this section. When required, a request for proposals, approved by the City Administrator and approved as to form by the City Attorney, shall be issued to determine the most qualified service provider. The City shall endeavor to notify qualified small business firms, as defined in Government Code Section14837, of each opportunity to provide such services to the City. Price may not be a factor in the determination of the most qualified bidder, although each proposer may be asked to submit a sealed price bid with their proposal for consideration after the selection. The City shall negotiate a contract with the most qualified firm for the services at compensation which is fair and reasonable to the City. Should the City be unable to negotiate a satisfactory contract with the firm considered most qualified at a fair and reasonable price, then negotiations with that firm shall be formally terminated, and the City shall negotiate a contract with the second most qualified firm for services at compensation which is fair and reasonable, and so on.

(Prior code § 2.17.08)

• A. For contracts with a total value over the lifetime of the contract up to $50,000.00, an informal selection process shall be provided. Where appropriate, the informal selection process may consider factors other than cost.

• B. The informal selection process shall operate according to written administrative procedures adopted by the City Administrator for the operation of a purchasing system and otherwise consistent with this chapter and which are designed to publicize the contracting opportunity and to allow qualified persons to participate.

• C. The informal selection process for purchases with a total value over the lifetime of the contract exceeding $5,000.00 but not exceeding $15,000.00 shall include, to the maximum extent feasible, the receipt of no fewer than three vendor quotes unless otherwise exempted by this chapter or by adopted procedures.

• D. The informal selection process for purchases with a total value over the lifetime of the contract of more than $15,000.00 not exceeding $50,000.00 shall include, to the maximum extent feasible, the receipt of no fewer than five vendor quotes unless otherwise exempted by this chapter or by adopted procedures.

• E. Public works contracts let pursuant to the informal selection process must comply with the requirements of Section 3.32.180 (Payment bonds).

• (Prior code § 2.17.10)

• A. Competitive bidding shall not be required for the following:

  1. Supplies, equipment or services rendered by any City officer or employee or furnished by one City department to another City department.

  2. Contracts for supplies, equipment, or services available from only one vendor or for unique services.

  3. Contracts for the acquisition of real property or relating to the acquisition of real property.

  4. Contracts for supplies, equipment, or services for actual emergency work (see Section 3.32.250).

  5. Contracts: (a) with other governmental entities for supplies, equipment or services;

and (b) for supplies, equipment or services that can be purchased in cooperation with other public agencies, associations or when supplies, equipment or services can be purchased from a vendor offering the same prices, terms and conditions as in a previous award from the City or another public agency either by competitive bid or through a negotiated process and, in the opinion of the Finance Director, it is to the advantage of the City to do so.

6. Contracts for the acquisition, sale or transmission of electrical power, natural gas, water, or telecommunications, where it is commercially unreasonable to comply with standard procurement procedures. All such procurements shall be made pursuant to a resolution of the City Council which establishes a process for procurement which is commercially reasonable and furthers the objectives of this chapter, including, but without limitation, to prevent fraud and collusion and to ensure that the City receives optimum value in its procurements.

7. Any contract authorized by Section 5920 et seq., of the California Government Code and any successor provisions thereof, and for which a competitive financing process has been established by resolution of the City Council establishing, at a minimum, a published request for quotations and firm quotations in a manner designed to foster competition, to prevent fraud and collusion and to secure the most favorable price for the City.

8. Contracts for insurance, bonds, advertising, membership dues, travel, travel related expenses and for training, except that brokers and agents for the same shall be procured through a competitive selection process unless not commercially reasonable to do so.

9. Contracts for supplies, equipment, or services with a total value over the lifetime of the contract up to $50,000.00.

10. Contracts for professional services.

• B. Competitive selection shall not be required for the following:

  1. Any of the types of contracts exempted from competitive bidding under subsections (A)(1) through (9).

  2. Specific contracts as may be exempted from the competitive selection process, where it is found that the best interests of the City are served by a direct award of the contract without a competitive selection process.

3. The City Administrator shall have the authority to make the findings referenced in subsections (B)(2), and Section 3.32.220(B) (three-year maximum for professional services contracts), for all contracts with a total value over the lifetime of the contract up to $100,000.00, and the City Council shall have the authority for all contracts exceeding $100,000.00. If the City Administrator makes such finding(s), the City Administrator shall submit a written report to the City Council, at a regular City Council meeting within 30 days of the finding(s), detailing the reasons for the finding(s).

(Prior code § 2.17.12)

A notice inviting bids shall be published for at least one day in a newspaper of general circulation in the City and posted on the City's website and shall fix a period during which such bids will be received, which shall be for at least 10 calendar days after the first publication of the notice. The notice shall include a general description of the material, services or public works to be purchased or contracted for, and shall state where bid forms and specifications may be obtained and shall specify the time and place for receiving and opening of bids. (Prior code § 2.17.14)

To the maximum extent feasible, in addition to all other applicable notice requirements, for all contracts subject to competitive selection or competitive bidding requirements, at least 10 days before proposals or bids are due, the City shall cause notice of the applicable notice inviting bid, or request for proposals to be sent to at least five vendors that are likely to qualify to submit a bid or proposal.

(Prior code § 2.17.15)

All specifications shall be approved by the City Administrator and approved as to form by the City Attorney prior to publication. The City Council shall approve, by resolution, the general form of bid, including the form of notice inviting bids, the general terms and conditions of the specifications and the general form of contract which shall be attached to the specifications. (Prior code § 2.17.16)

Except as may otherwise be provided herein, the plans, specifications, and contracts for public works construction undertaken by the City shall be prepared by the department responsible for the project.

(Prior code § 2.17.18)

• A. Bid Security Generally Required for Bids. Unless waived by the City Administrator, bidder's security shall be required by the notice inviting bids for every competitive bidding process with a total value over the lifetime of the contract exceeding $50,000.00. All bids submitted pursuant thereto shall be accompanied by cash, cashier's check payable to the City of Vernon, certified check payable to the City of Vernon, or bond, in an amount equal to 10% of the bid.

• B. Use and Return of Bid Security. If the bidder to whom the contract is awarded shall for 15 days after the award, fail or neglect to enter into the contract and to file the required bond, the City may deposit the bid security into its treasury. When so deposited, under no circumstances shall it be returned to the defaulting bidder.

• C. Surety Bond. In lieu of the foregoing, any bid may be accompanied by a surety bond in said amount furnished by a surety authorized to do a surety business in the State guaranteeing that the bidder will enter into the contract and file the required bond or bonds within said period. Any person may file with the City an annual bid bond, which shall be a surety bond in the amount of 10% of the highest amount bid during that period of the bond. The City shall promptly return the bid security to the unsuccessful bidders. The City shall retain the bid security of the successful bidder until after signing and delivery of the contract and approval of the bonds or other security furnished by the bidder for the faithful performance of the contract, and then shall return such bid security to the successful bidder. (Prior code § 2.17.20)

All bids shall be placed in a sealed envelope and delivered to the City as specified in the notice inviting bids. Bids shall be opened at the time stated in said notice. Any bid that does not conform materially to the requirements of this chapter, the specifications, or notice inviting bids shall be rejected. The City Administrator may waive minor, non-material defects, in his or her sole discretion, for contracts with a total value over the lifetime of the contract up to $100,000.00, and the City Council for contracts exceeding $100,000.00. (Prior code § 2.17.22)

Public works contracts with a total value over the lifetime of the contract exceeding $25,000.00 shall require that, before commencement of work, a payment bond be given to and approved by the City. For the purpose of this section, a design professional is not required to give a payment bond (see Civil Code Section 9550).

(Prior code § 2.17.23)

The contract shall be awarded by the City to the lowest responsive and responsible bidder. The City Council may reject any and all bids. If a successful bidder fails to enter into a contract awarded to them, or if a contract is not commenced by the contractor or their surety, the City Council may abandon the matter or may readvertise the original bid or a modification thereof, or may award the contract to the next lowest responsive and responsible bidder, with the consent of such bidder.

(Prior code § 2.17.24)

In determining responsiveness and responsibility of a bidder, the following shall be considered:

• A. The quality of the material offered.

• B. The ability, capacity and skill of the bidder to perform the contract or to provide the supplies, equipment, or services.

• C. Whether the bidder can perform the contract or provide the service promptly, or within the time specified, without delay or interference.

• D. The sufficiency of the bidder's financial resources and the effect thereon on the ability to perform the contract or provide the supplies, equipment, or services.

• E. The character, integrity, reputation, judgment, experience and efficiency of the bidder.

• F. The quality and timeliness of the bidder's performance on previous work for the City.

• G. Litigation by the bidder on previous work with the City.

• H. The ability of the bidder to provide future maintenance and service where such maintenance and service is essential.

• (Prior code § 2.17.26)

• A. Prior to any contract award, the City Council may find any bidder or proposer to be nonresponsible to perform the specific contract to be awarded. The City Council may do so on its own motion or on recommendation of the City Administrator.

• B. In conjunction with any contract award or with any action on a contract, the City Council may debar a contractor from bidding on future contracts by finding, upon substantial evidence, nonresponsibility which arises from any one of the following: (1) commission of fraud or a criminal offense in connection with soliciting, obtaining or preparing a public contract; (2) violation of Federal or State antitrust statutes in relation to a bid on a public contract; (3) commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property; (4) commission of any other offense that indicates lack of business integrity or business honesty; (5) present debarment by another public entity; (6) breach of a statutory or contract provision which specifies or requires debarment as a remedy; or (7) any other cause so serious it substantially affects the contractor's present responsibility.

• C. Before a finding of nonresponsibility is made, and before a contract requiring competitive bidding is awarded to other than the lowest bidder, a bidder must have been notified of any evidence of its nonresponsibility, must have been afforded an opportunity to rebut such evidence and must have been permitted the opportunity to present evidence of responsibility to perform the contract. A quasi-judicial proceeding shall not be required for the City Council to take action under this section. Any finding of nonresponsibility shall focus on present nonresponsibility, shall be for the purpose of protecting the interests of the public and not intended to punish a bidder. The duration of debarment shall be for the period specified by any contract or statutory provision or, if none, for the period which the City Council finds shall best protect the interests of the public but shall not exceed two years.

(Prior code § 2.17.28)

The provisions of this section shall apply to all procurements, contracts and purchases by the City, and, without limitation, shall be incorporated into all written administrative procedures.

• A. All contracts, including professional service contracts, shall include ending dates and/or expenditure caps unless commercially unreasonable to do so.

• B. All professional services contracts shall be rebid every three years unless found commercially unreasonable to do so in a manner consistent with Section 3.32.110(B)(3).

• C. Compensation rates to be paid by the City shall not be increased during the term of a contract except where external factors are going to significantly affect costs and rates during the term of the contract, and any such increase is directly tied to the most appropriate index or cost-of-living rate or a pass through of increased costs charged to the contractor.

• D. All contracts shall be at rates of compensation similar to, or more favorable than the rates charged to other governmental entities.

• E. All contracting opportunities valued above $50,000.00 not otherwise subject to a published notice requirement (e.g., requests for proposals) shall be publicized on the City's website at least seven days prior to contract award except where the specific contract is otherwise exempt from competitive processes.

(Prior code § 2.17.30)

The City shall reject any bid, proposal, or other solicitation involving any unlawful or unethical activity, including, but not limited to, rebates, kickbacks, or other unlawful consideration. No City employee shall participate in the selection process if participation might constitute a violation of the Political Reform Act, Government Code Section 1090 et seq., or other State or local law or regulation pertaining to conflicts of interest. (Prior code § 2.17.32)

The City Council shall approve, by resolution, the general forms of contract, purchase contracts, notices inviting bids, and the general provisions of bid specifications and requests for proposals for use by the City.

(Prior code § 2.17.34)

In case of an actual emergency which requires immediate purchase of supplies, equipment, or services to address an immediate and unforeseen risk to health, life, property or the environment, or for emergency work to restore or prevent an imminent and unforeseen failure of utility service, the City Administrator may secure, without competitive bidding, at the lowest obtainable price, any supplies, equipment, or services regardless of the amount of the expenditure. A full report of the circumstances of any such emergency purchase shall be filed with the City Council within 30 days of the expenditure.

(Prior code § 2.17.36; Ord. 1279 § 3, 2022)

• A. Except for emergency purchases, and except where the amount of the purchase is $5,000.00 or less over the lifetime of the contract no contract shall be awarded unless there is to the credit of the department concerned a sufficient unencumbered appropriated balance, in excess of all unpaid obligations, to defray the amount of the proposed expenditure.

• B. Except for emergency purchases, and except where the amount of the purchase is $5,000.00 or less over the lifetime of the contract, the Finance Director shall not authorize payments on a contract unless there is to the credit of the department concerned a sufficient unencumbered appropriated balance, in excess of all unpaid obligations, to defray the amount of the proposed expenditure.

(Prior code § 2.17.38)

The City Administrator shall adopt written administrative procedures to administer a disadvantaged business enterprise program which shall be used when contracts lawfully require the contractor or City to establish participation goals for disadvantaged business enterprises. The written administrative procedures shall include implementation guidelines, including definitions and criteria for what constitutes a disadvantaged business enterprise and to encourage the use of minority/women/disadvantaged business enterprises, consistent with both State and Federal disadvantaged business program criteria and other applicable law. (Prior code § 2.17.40)

It is the policy of the City to:

• A. Promote the principles of equal employment in its contracting activities by assuring that those seeking to do business with the City are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, marital status, medical condition, sexual orientation or any other protected class status. To that end, all City contracts shall contain a non-discrimination provision.

• B. Promote the local economy by encouraging local business enterprises to make bids and proposals for City contracts and by providing preference to local contractors in procurements other than in sealed competitive bids, where all other factors are equal or similar, as set forth in the written administrative procedures adopted by the City Administrator.

(Prior code § 2.17.42)

Except as provided in this Code, or pursuant to agreement approved by the City Council, or in a matter properly determined to be of Statewide importance, the City of Vernon, as a Charter City, is exempt from the provisions of the California Public Contract Code. (Prior code § 2.17.43)