Wasco Municipal Code Ch. 2.60 Purchasing Policy and Procedures

Sections: 2.60.010 Adoption of purchasing procedure. 2.60.020 Creation of purchasing agent position. 2.60.030 Functions of purchasing agent. 2.60.040 Procurement procedures. 2.60.050 Specifications. 2.60.060 Requisitions. 2.60.070 Formal bid procedure. 2.60.080 Informal bid procedure. 2.60.090 Purchasing orders. 2.60.100 Receipt of goods. 2.60.110 Emergency procurement. 2.60.120 Procurement through the State Department of General Services. 2.60.130 Procurement pursuant to joint powers agreements. 2.60.140 Central stores. 2.60.150 Purchasing revolving fund. 2.60.160 Approval of expenditures. 2.60.170 Availability of funds. 2.60.180 Disposition of obsolete and surplus property. 2.60.190 Exemptions from centralized purchasing. 2.60.200 Authority to contract. 2.60.300 Unauthorized purchases.

The provisions of this chapter are adopted in accordance with the provisions of Sections 54201 through 54205 of the Government Code of the state. Except as otherwise provided in this chapter, the provisions of this chapter shall not cover the expenditure of funds for public projects which are covered by the provisions of the Public Contract Code of the state, or the procurement of reimbursement of travel expenses, "per diem" expenses or related expenses as may be treated by other ordinances or resolution. (Ord. 429 §1 (Exh. 1), 1999).

A. The finance director shall oversee staff purchases, and shall be deemed the city’s purchasing agent.

B. The purchasing agent shall administer and be responsible for the successful performance of all functions related to purchasing by the city. (Ord. 429 §1 (Exh. 1), 1999).

The functions of the purchasing agent shall be as follows:

A. Process the purchase of and contract for all supplies and equipment, other than professional services, needed by the city, except for:

1. Contracts for public projects processed pursuant to the provisions of the Public Contract Code of the
state, and

2. Purchases of supplies, equipment or services of an estimated value of less than five hundred dollars;

B. Make procurements in accordance with the purchasing procedures prescribed by this chapter, relevant administrative regulations approved by the city manager and such policies and procedures established by the purchasing agent in compliance with this chapter;

C. Negotiate and recommend the execution of contracts for the purchases of supplies, equipment and services;

D. Act to procure for the city the needed supplies, equipment and services with necessary quality, capacity, safety performance ability and overall costs, considering labor and maintenance costs and other applicable factors required to meet the service objects of the using department or agency at the least expense to the city;

E. Discourage collusion in bidding and induce full competition on all purchases;

F. Prepare and recommend administrative regulations, including revisions and amendments thereto, governing the purchasing of supplies and equipment for the city, which regulations shall be effective upon approval by the city manager;

G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;

H. Prescribe, design and issue forms needed for the operation of this chapter and other applicable rules and regulations;

I. Administer the transfer of surplus property between departments as needed or sell, or otherwise dispose of, such surplus property;

J. Maintain a bidders’ list, vendors catalog file and other records used in modern procurement operations; and

K. Assure that every bidder complies with all applicable municipal, state and federal regulations. (Ord. 429 §1 (Exh. 1), 1999).

Generally, the procurement procedure shall consist of the following:

A. The determination of quantity, quality and related requirements;

B. Negotiations for procurements;

C. The referral of bids to the purchasing agent for analysis and recommendations;

D. The award of purchase orders or contracts;

E. The supervision of receipt and acceptance procedures; and

F. The approval of invoices for payments. (Ord. 429 §1 (Exh. 1), 1999).

A. As needed, the purchasing agent in conjunction with the using department or agency shall develop standards specifications for repetitively procured items and service.

B. Every specification shall be prepared to assure the broadest possible bidder participation consistent with the needs of the using department or agency.

C. Alternate specifications provisions for any particular bid invitation may be established by the purchasing agent.

D. No oral interpretation of any written specification shall be made to any bidder as to the meaning of the specification. If a prospective bidder discovers discrepancies or omissions in any specification or if the bidder is in doubt as to the naming of any specification, the bidder shall request clarification or modification from the city, in writing, and delivered to the purchasing agent or such person as is otherwise authorized in the specification at least five days before the time specified for opening of the bids, unless a different time is otherwise specified in the specifications. Interpretations or modifications shall be issued by the purchasing agent, or such other person as is authorized in the specifications, in the form of an addendum to the specifications and, when issued, shall be transmitted as promptly as practical to all parties known by the purchasing agent to have received copies of the specifications. The provisions of the subsection shall be deemed to be included in all bid specifications issued by the city, including any public project, whether or not the provisions are specifically included in such specifications. (Ord. 429 §1 (Exh. 1), 1999).

The purchasing agent will issue each purchase order only in consequence of having received a written requisition. The purchasing agent shall supply requisition forms and administer their usage in accordance with applicable regulations. (Ord. 429 §1 (Exh. 1), 1999).

Except as otherwise specifically provided in this section or in any other sections of this chapter, purchases of supplies and equipment of an estimated value of ten thousand dollars or more shall be by formal sealed written competitive bids. Award for such expenditures shall be made by the city council to the lowest responsible bidder in accordance with the following provisions:

A. Lowest Responsible Bidder. "Lowest responsible bidder" as used in this chapter, shall mean that bidder which best responds in price, quality, service, fitness or capacity to the particular requirements of the city. Price alone shall not be the determining factor but shall be considered along with the other factors, including, but not limited to, the availability of the bidder to deliver, availability of parts or service, prior experience with bidder, and other factors relating to the particular needs of the city for the supplies, equipment or services to be purchased.

B. Notices Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid forms and specifications may be secured and the time and place for opening of the bids. The notice shall specify the factors referred to in subsection A of this section, which factors will be given special consideration in determining the lowest responsible bid for the supplies or equipment to be purchased.

C. Bidders’ List. The purchasing agent shall also solicit sealed bids from all responsible prospective suppliers, including those whose names are on the "bidders’ list" or who have made written request that their names be added thereto.

D. Bidders’ Security. When considered necessary by the purchasing agent, bidders’ security may be prescribed in the notices inviting bids. Bidders shall be entitled to the return of bid securities; provided, however, a successful bidder shall forfeit the bid security upon the refusal or failure of the bidder to execute the contract within the time designated in the bid specifications. The city council on the refusal or failure of the successful bidder to execute the contract, may award the contract to the lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidders’ security shall be applied by the city to the contract price differential.

E. Confidentiality of Bids. Any bid received pursuant to the provisions of this chapter shall not be disclosed directly or indirectly to any other bidder until the bidding is closed and other further bidding is excluded.

F. 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 notice. The opened bids shall be available at all times for public inspection from the time they are opened until the award has been made by the city council.

G. Tabulation of Bids. The purchasing agent shall tabulate all bids received and shall recommend to the city council which in his opinion is the best, the lowest bid.

H. Tie Bids. If two or more bids received are for the same total amount or unit price, quality or service being equal and if the public interest will not permit the delay of advertising 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.

I. Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it finds 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.

J. Waivers. When the city council finds that it is in the public interest and necessity or that it is impractical to purchase supplies or equipment without compliance with the formal contract procedures set forth in this section, the city council may waive such procedures by so declaring with a separate motion or resolution.

K. Rejection of Bids. The city council reserves the right to reject any or all bids or to waive any irregularities or informalities in any bid or bidding and to determine which bid in the judgment of the city council is the lowest responsible bidder and which bid should be accepted in the best interests of the city. (Ord. 429 §1 (Exh. 1), 1999).

Subject to other applicable procedures of this chapter:

A. Purchase of supplies and equipment of an estimated value of less than ten thousand dollars may be made by the purchasing agent in accordance with the procedure set forth in this section without compliance with the formal bid procedure set forth in this chapter. The purchasing agent shall solicit competitive bids for all such purchases; provided, however, competitive bidding shall not be required for any purchase that has an estimated value of not less than ten thousand dollars, or where it is in the public interest and necessity to make the purchase without competitive bidding, or where there is only a single source of supply, or where it is otherwise impractical to do so.

B. Except where competitive bidding is not required, bids shall be solicited of purchases of supplies or equipment and awarded to the lowest responsible bidder, defined as follows:

1. For purchases of less than ten thousand dollars and more than five thousand dollars, written bids shall
be required; and

2. For purchases of less than five thousand dollars and more than five hundred dollars, the bid may be
verbal or written.

C. Bidding shall not be required for purchases of supplies or equipment if the estimated value is less than five hundred dollars.

D. Notices inviting bids shall include a general description of the articles to be purchased and shall state where bid blanks and specifications may be secured and the time and place for opening the bids. (Ord. 429 §1 (Exh. 1), 1999).

Purchase of supplies and equipment shall be made in accordance with administrative regulations governing the preparation and issuance of purchase orders. Except as otherwise prescribed in this chapter, the administrative regulations shall establish responsibilities for processing purchase orders, and no exceptions may be made unless specifically provided for in the regulations. (Ord. 429 §1 (Exh. 1), 1999).

The purchasing agent of the using department shall inspect any supplies and equipment upon receipt to verify that they conform in quality and quantity as specified by the purchase order. Before payment is authorized, the satisfactory receipt of goods shall be established as prescribed in the administrative regulations governing the processing of purchase orders. (Ord. 429 §1 (Exh. 1), 1999).

A. When an emergency requires the immediate procurement of supplies, equipment or services, the city manager, or, in the event of his/her absence or unavailability, the purchasing agent shall immediately expedite the verification of funds available and complete the preparation of the purchase order.

B. If at the time of the emergency, neither the city manager is available nor the purchasing agent is available, the department head may order immediately the needed commodity from the nearest available source. As soon as possible thereafter, the department head shall submit to the purchasing agent a requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated. The purchasing agent shall prepare a purchase order in accordance with the procedural regulations governing purchase orders and shall identify thereon the orders so confirmed.

C. As soon as practical after the emergency, a written report shall be made regarding why such purchase was an emergency and such report shall be available to the city council.

D. For the purposes of this section, an emergency shall be deemed to exist only if:

1. There is a public disaster; or

2. There is an immediate need to prepare for national or local defense;

3. There is a breakdown in machinery or an essential service which requires the immediate procurement of
supplies or equipment to protect the public health, welfare or safety;

4. An essential departmental operation or function affecting the public health, welfare or safety would be
greatly hampered if the prescribed purchase would cause any undue delay in the procurement of the needed
item; or

5. The city manager determines that an emergency purchase is necessary to ensure operational efficiency
and/or fiscal responsibility for the city. (Ord. 429 §1 (Exh. 1), 1999).

Purchases of materials, equipment or supplies, other than printed materials, may be requested of the State Department of General Services pursuant to the provisions of Section 54205 of the Government Code of the state. No such purchase shall be less than five hundred dollars. (Ord. 429 §1 (Exh. 1), 1999).

Materials, equipment and supplies may be purchased from any other governmental agency with which the city has entered into a joint exercise of powers agreement for such purpose, pursuant to the provisions of Section 6502 of the Government Code of the state, provided:

A. The sales price of the item to be purchased has been obtained through the competitive bidding process by the other agency which is party to the agreement; and

B. The items of property to be procured can be purchased by the other governmental agency upon the same terms, conditions and specifications at the same or at a lower price than the city can obtain them through normal purchasing procedures. (Ord. 429 §1 (Exh. 1), 1999).

A. Selected commodities with recurring high usage rate may be stocked and issued from a central facility under the direction and control of the purchasing agent. The purchasing agent shall examine usage rates for various commodities and, in coordination with using departments, expand or reduce the quantities and types of items in central stores.

B. Central stores items shall be replenished as needed from the purchasing revolving fund through regular purchasing procedures. The inventory levels of commodities on hand shall be determined by the purchasing agent, based on economic and demand factors.

C. Detailed instructions for ordering and accounting methods shall be set forth in the administrative regulations governing the central stores’ operation.

D. Issue procedures shall be conducted with due regard for the convenience of the using departments and agencies. (Ord. 429 §1 (Exh. 1), 1999).

The purchasing agent at his or her option, is authorized to establish a purchasing revolving account. The purchasing fund shall be in an amount fixed by the city council from time to time by resolution and shall initially be five hundred dollars. All purchases for the central stores shall be charged to and paid from the fund, and all requisitions from departments drawn on central stores shall be charged to the appropriate budgets of the department using the specified supplies. The purchasing revolving fund shall be replenished to that amount by transfers from the budgets of such departments. (Ord. 429 §1 (Exh. 1), 1999).

Any expenditure less than five thousand dollars may be approved by the purchasing agent based on approved budgetary provisions. Any expenditure of five thousand dollars but less than ten thousand dollars may be approved by the city manager based on approved budgetary provisions. Expenditures of ten thousand dollars or more shall have the approval of the city council prior to the issuance of a purchase order or the execution of a contract. Orders shall not be divided or staged for the purpose of circumventing the approval required by the provisions of this section. The authority to approve an expenditure as provided in this section shall include the issuance of a purchase order or the execution of a contract on behalf of the city for such expenditure. (Ord. 500 §1, 2005; Ord. 429 §1 (Exh. 1), 1999).

Except in cases of emergency or when city council authorization has been first obtained, the purchasing agent shall not issue any purchase order unless there exists an unencumbered balance for the appropriation for which such purchase is to be made. (Ord. 429 §1 (Exh. 1), 1999).

The purchasing agent shall submit at least annually to the reports describing all supplies, equipment, materials, fixtures and other personal property of the city which property is surplus to need or which has become obsolete or unserviceable.

A. Subject to the provisions of subsection C of this section, and prior city council approval, the purchasing agent is authorized from time to time to sell or exchange any and all equipment, materials, fixtures and other personal property of the city having a salvage value and which is obsolete or unserviceable, or is surplus to the city, or which replacement is to be purchased. The purchasing agent may sell the same for the best price obtainable in the open market or, when he deems it advisable, to the highest bidder at a public sale, or he may exchange the same for other property or for credit on other property.

B. In the event the purchasing agent determines that any such obsolete or surplus property has no salvage value, he may dispose of it as he deems advisable, after city manager approval.

C. All sales shall be for cash or for certified check or money order payable to the city.

D. The purchasing agent shall have the authority to sign bills of sale and any other papers or documents evidencing the transfer of the title of obsolete or surplus personal property for and on behalf of the city, after city council approval. (Ord. 429 §1 (Exh. 1), 1999).

The purchasing agent, with the approval of the city council, may authorize, in writing, the purchasing agent to purchase specific supplies and equipment independently of the purchasing division, but he shall require that such purchases shall conform with the procedures established by this chapter and shall further require copies of the purchase orders from the agency on the purchases made under such authorization. (Ord. 429 §1 (Exh. 1), 1999).

Except as provided in this code, no contract made or purportedly made by any person shall be an obligation of the city unless made in accordance with the provisions of this section.

A. Contract Defined. For the purposes of this section, the term "contract" shall refer to any agreement, contract, lease, promise or other obligation to which the city is or is alleged to be a party and shall include, but not be limited to, any contract for equipment, supplies, services and public projects.

B. In Writing. All contracts shall be in writing and shall be signed by a person authorized by this code by an ordinance, resolution or motion of the city council or by a contract approved by the city council to sign any such contract. No oral contract shall become an obligation of the city. (Ord. 429 §1 (Exh. 1), 1999).

Except as provided in this chapter, it is unlawful for any officer, employee or agent of the city to order the purchase of supplies or equipment or make any contract in violation of this chapter, and any purchase ordered or made, or contract made contrary to the provisions of this chapter shall not be approved by any officer or employee of the city and the city shall not be obligated by any such purchase or contract made in violation of the provisions of this chapter. (Ord. 429 §1 (Exh. 1), 1999).