The basic purchasing policy of the city is to obtain quality supplies, services, vehicles and equipment needed for the proper operation of its various city departments and divisions at the lowest possible cost. This will be accomplished through the use of quotes and competitive bidding whenever possible. Purchasing functions are to be conducted by the Finance Department, except as provided for herein. The purchasing function shall be supervised by the Finance Director who shall be responsible for its operation and staffing. Whereas the city also administers the purchasing function for other entities: Municipal Water Department, Municipal Golf Course, the process may vary as provided within accounting procedures related to posting to Enterprise and Internal Service Funds.
(A) Ethics and standards of behavior. All purchasing functions will be conducted with absolute integrity. The very highest ethical standards will be maintained in all material activities and the city departments will remain constantly aware of its responsibilities in spending public funds. Guidelines for transacting city business are derived from the California State Government Code and the municipal code of the city. The Finance Department also subscribes to the principles and standards of purchasing practice advocated by the National Association of Purchasing Management and the California Association of Public Purchasing Officers.
(B) Local vendor purchasing preference. Local preference is the practice of procurement from certain suppliers/contractors because they are also local taxpayers. Local preference is desirable because it stimulates the local economy and encourages businesses to locate and operate locally. All orders/contracts are awarded on the basis of quality, previous performance, ability to meet the contract requirements, availability of service and parts, delivery schedule, and payment terms/discounts. When all these factors are equal except price, a preference will be given to local vendors equal to 10% of the quoted price. To be eligible for the 10% preference the vendor must certify under penalty of perjury that its primary place of business or its point of sale for more than 50% of its sales is located within the city limits. A further condition of eligibility for a preference is the local businesses having a current and active business license. Nothing in this local vendor purchasing preference shall in any way limit the application of the California Public Contract Code or California Labor Code to any city agreement.
(C) Purchasing authority. There are three levels of authority for normal purchases: Department award, City Manager award, and City Council award. Generally, authority is established by the dollar amount of the purchase. Except as permitted by below regarding "exceptions," a formal purchase order, approved by the requesting Department Director and the City Manager or designee is required for all purchases where any single item exceeds $5,000. The following procedures will apply to professional services or consultant contracts.
(1) Department award: Up to $5,000. The Department Director may authorize the purchase of supplies, equipment, or services as needed for his or her area of responsibility for purchases up to $1,000. No purchase requisition or purchase order is required. Note: Purchase orders may be issued regardless of amount when required by the vendor, or when the complexity of the contract demands a formal document for clarity.
(2) City Manager award: $5,000 to $75,000. When seeking goods or services exceeding $5,000 but not exceeding $75,000, and specific to the department's operation, the department completes a purchase requisition form and submits it, including specifications, quotes and other supporting data, to the City Manager or designee for review. After review of approved budget funds a purchase order may be issued.
(3) City Council award: over $75,000. The Council award procedures may be utilized for all purchases, contracts, or agreements of more than $75,000 as follows:
(a) Specifications and other relative data may be sent to the City Manager, or his or her authorized representative, for approval prior to the issuance of a notice inviting sealed proposals, if a bid process is required to be used.
(b) All formal bid opening dates will be at a time, date, and location specified. The City Clerk, or a designee, will publicly open and log the cost and content of bids received at the time and place specified in the notice. Bid results will be made available to all interested parties as soon as possible following the bid reading. The department responsible for the notice will prepare the agenda report for approval and submission with cost benefit justification and forward to the City Manager for review.
(c) After review by the City Manager the results of any bidding will be presented to the City Council along with recommendations regarding results and recommendation to award. The Council will declare the outcome of bids at a public session. The exemptions set out below are exemptions only as to the bid process, and do not excuse City Council approval when required.
(d) The City Manager or his designee will determine whether or not to utilize an RFQ or RFP process for professional services or consultant contracts, subject to any Council policy which may be adopted from time to time.
(4) Exceptions to standard purchasing procedures.
(a) Emergency conditions. An emergency is defined as a breakdown in machinery or equipment resulting in the interruption of an essential service, or a distinct threat to public health, safety, or welfare. In the case of an emergency requiring the immediate purchase of supplies, materials, equipment or contractual services, the City Manager may authorize the Finance Director or his or her designee to secure in the open market, at the lowest obtainable price, any supplies, materials, equipment, or contractual services required, regardless of the amount of the expenditure.
During an emergency condition, the using departments may purchase any supplies, materials, equipment, or contractual services. This may be done only after the department head has concluded that the purchase is essential to prevent delays, which may affect the life, health, or safety of citizens. The department head shall, as soon as possible, provide a completed purchase requisition to the Finance Director or his or her designee, as well as a full written explanation of the circumstances.
In the case of a disaster or for civil defense, nothing contained in this document shall limit the authority of the Director of Emergency Services (City Manager) or his or her designee to make purchases and take such other emergency steps as are, or may be, later ratified by the City Council.
(b) Limited availability/ sole source. Occasionally, required supplies, material, equipment, or services are of a proprietary nature, or are otherwise of such specific design or construction, or are specifically desired for purposes of maintaining cost effective system consistency, as to be available from only one source. After reasonable efforts to find alternative suppliers, a department head or his or her designee may dispense with the requirement of a minimum of two bids and recommend making the purchase from the sole source. All other standard approval procedures and documentation will be adhered to.
(c) Cooperative purchasing. The Finance Director or his or her designee shall have the authority to join with other public jurisdictions in cooperative purchasing agreements. The Finance Director or his or her designee may also buy directly from a vendor at a price established by competitive bidding by another public jurisdiction in substantial compliance with this policy, even if the city has not joined with that public agency in a formal agreement. The Finance Director or his or her designee may also purchase from the United States of America or any state, municipality or other public corporation or agency without following formal purchasing procedures as defined in this policy.
(d) Two-bid minimum. A two-bid minimum is established to guide purchases. If only one bid is obtained, the initiating city department shall consult with the City Manager and may exercise the option to extend the bid period up to 30 days, without opening the submitted bid, to allow for additional bids. If the determination is made to open the sole original bid, or if no additional bids are received during the bid extension, the department head may:
1. Re-advertise;
2. Order the work done by city employees;
3. Award the contract to the sole bidder based on a cost analysis evidencing the relationship of the one bid to expected market price; or
4. Negotiate a contract to the best advantage of the city.
(e) Record keeping. The Finance Department is responsible for maintenance of purchasing records. During the course of a contract the initialing department will maintain records. At the conclusion of the contract, the original bids, specifications, and other pertinent data will be forwarded, along with the request for final payment, to the Finance Department. These records will be maintained in the accounts payable (A/P) files indefinitely, or as prescribed by law.
(f) Purchases of Artwork. A purchase of public art pursuant to the Art in Public Places Program is not subject to bidding and shall be made by the appropriate purchasing authority as set forth in § 33.116(C).
(Ord. 1294, passed 3-7-01; Am. Ord. 1421, passed 5-4-05; Am. Ord. 1600, passed 9-7-11; Am. Ord. 1619, passed 9-19-12)