CHAPTER 4:  PUBLIC PROJECTS; PURCHASING AND CONTRACTING
ARTICLE I.  GENERAL PROVISIONS
   4-1.   Definitions
   4-2.   Purpose
   4-3.   Purchasing agent
   4-4.   Conflict
   4-5.   Exemptions
   4-6.   No obligation to contract
ARTICLE II.  PUBLIC PROJECTS
   4-10.   Uniform Public Construction Cost Accounting Act
   4-11.   Bids required
   4-12.   Tier 1 public projects
   4-13.   Tier 2 public projects
   4-14.   Tier 3 public projects
   4-15.   Rejecting all bids
   4-16.   Bonds
   4-17.   Contracts
   4-18.   Task orders
   4-19.   Change orders
   4-20.   Emergencies
ARTICLE III.  SUPPLIES AND EQUIPMENT
   4-30.   Applicability
   4-31.   Bids required
   4-32.   Brand and trade names
   4-33.   Informal solicitation
   4-34.   Formal solicitation
   4-35.   Publication
   4-36.   No responsive bids
   4-37.   Receipt or rejection of bids
   4-38.   Purchase orders and contracts
   4-39.   Purchase orders pursuant to contract
   4-40.   Change orders
   4-41.   Urgency
ARTICLE IV.  TRADE AND PROFESSIONAL SERVICES
   4-50.   Applicability
   4-51.   [Reserved for living wage policy]
   4-52.   Bids or proposals required
   4-53.   Brand and trade names
   4-54.   Informal solicitation
   4-55.   Formal solicitation
   4-56.   Publication
   4-57.   Receipt or rejection of bids or proposals
   4-58.   Contracts
   4-59.   Task orders
   4-60.   Change orders
   4-61.   Urgency
ARTICLE V.  ADDITIONAL PROCEDURES
   4-70.   Regular reporting
   4-71.   Small local business purchasing preference program
   4-72.   Annual authorization
   4-73.   Approval as to form
   4-74.   Contract term
   4-75.   Immediate need
   4-76.   Real property
   4-77.   Credit cards
ARTICLE VI.  SALE OF SUPPLIES, EQUIPMENT AND SERVICES
   4-80.   Sale of supplies, equipment and services
ARTICLE I.  GENERAL PROVISIONS
SEC. 4-1.  DEFINITIONS.
   For the purposes of Chapter 4, the following definitions and rules shall be observed, unless such would be inconsistent with the manifest intent of the city council:
   (A)   ANNUAL AUTHORIZATION - The maximum annual value that the city council delegates to an individual to award and execute a purchase order or contract per vendor or consultant.
   (B)   ANNUAL VALUE - The value of the contract per year, or if the contract does not list an annual amount, the total value of the contract divided by the number of years in the term of that contract.
   (C)   BEST VALUE - The expected outcome of a solicitation that in the city's estimation will provide the greatest overall benefit in response to the requirement, where price, quality, durability, servicing, delivery time, standardization, and/or other factors outlined in the purchasing manual are considered in the evaluation and selection process to minimize negative impacts and enhance the long-term performance and value of a solicitation submission.
   (D)   EMERGENCY - Either of the following:
      (1)   Regarding public projects, as defined in this chapter, the meaning provided in Cal. Pub. Con. Code, Section 22050.
      (2)   Regarding all procurement unrelated to public projects, a condition or possible safety situation which makes bidding procedures, either formal or informal, impractical or not in the best interests of the city.
   (E)   FORCE ACCOUNT - Work performed on public projects using internal city resources, including, but not limited to, labor, equipment, materials, supplies and subcontracts of the city.
   (F)   FORMAL SOLICITATION - A bid or proposal that must be submitted in a sealed envelope by mail, hand delivery or email or other electronic means, and in conformance with a prescribed format to be opened in public at a specified date and time or evaluated as delineated in the solicitation released, as established in the purchasing manual.
   (G)   INFORMAL SOLICITATION - A competitive bid, price quotation, or proposal for any procurement other than a public project that is conveyed by mail, fax, email or other electronic means, or other written manner that does not require a sealed bid or proposal, public opening or other formalities.
   (H)   MAINTENANCE or MAINTENANCE WORK - The meaning provided in Cal. Pub. Con. Code, Section 22002(d) and 8 CCR 16000.
   (I)   NEGOTIATED CONTRACT - A contract in an amount up to $100,000 that is awarded on the basis of a direct contract with a contractor, vendor or consultant without going through the competitive bidding process.
   (J)   PRINCIPAL BUSINESS OFFICE - The place where the principal officers or owners generally transact business, where reports are prepared, from which orders and payments are made, and that the business represents to government authorities as its principal office or principal place of business.
   (K)   PROFESSIONAL SERVICES - All services performed by persons or firms in a professional occupation, including, but not limited to, consulting and performance services for accounting, financial, economic, auditing, redevelopment, computer hardware and software support, engineering, architectural, landscape architectural, planning, environmental, land surveying, construction project management, personnel, social services, animal control, lobbying, grant-writing, legal, management, communication and other similar professional functions.
   (L)   PURCHASING AGENT - An employee whose responsibility it is to procure all supplies, equipment, public projects and services for the city, or that employee’s designee(s).
   (M)   PURCHASING MANUAL - The purchasing policies and procedures manual for the purpose of implementation of this chapter, as drafted, amended and adopted by the purchasing agent.
   (N)   PUBLIC PROJECT - The meaning provided in Cal. Pub. Con. Code. Section 22002(c).
   (O)   SMALL LOCAL BUSINESS - A business entity that has for at least 36 months immediately preceding submittal of its bid held a current business license issued by the city, and maintained its principal business office within the city’s geographic boundaries, has average annual gross receipts of $20,000,000 or less over the 36 months immediately preceding submittal of its bid, and employs fewer than 100 employees, at least 50% of whom are Oxnard residents and have been Oxnard residents for at least 90 days prior to submission of the bid.
   (P)   TRADE SERVICE - A service that is not affiliated with a public project and either:
      (1)   Does not require specialized skill or certification, including, but not limited to, janitorial or maintenance work; or
      (2)   Requires manual skills and special training, but not particular education or degrees, including, but not limited to, mechanical or plumbing services.
(Ord. No. 2943)
SEC. 4-2. PURPOSE.
   (A)   The purpose of this chapter is to ensure that the city establishes an efficient centralized procurement system, and that goods, materials, public projects and services are procured at fair and competitive prices.
   (B)   This chapter provides procedures for the performance of public projects, the purchase of supplies and equipment, and contracting for services.
   (C)   This chapter shall be interpreted and construed to be consistent with State law.
(Ord. No. 2943)
SEC. 4-3.  PURCHASING AGENT.
   Except as otherwise ordered by city council, the purchasing agent shall provide the services stated in this chapter on behalf of all city departments.  In the performance of his/her duties, the purchasing agent shall comply with applicable law and city council orders, including limitations on purchasing procedures.  The purchasing agent may:
   (A)   Prepare and issue all solicitations.
   (B)   Issue a purchase order or award and execute a contract for procurement required by any city department, in accordance with procedures prescribed by this chapter up to the purchasing agent’s annual authorization.
   (C)   Amend any contract for supplies, equipment and services in any way that does not change the annual value, including, but not limited to, amendments extending the contract term, changing a vendor, contractor or consultant’s legal name, or authorizing higher costs and rates.
   (D)   Negotiate and recommend award of contracts for the purchase of supplies, equipment and services.
   (E)   Act to procure for the city the needed quality in supplies, equipment, and services at the best value to the city.
   (F)   Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases.
   (G)   Prepare and maintain for the city manager the purchasing manual, procurement card manual, and recommend revisions to both of these documents.
   (H)   Keep informed of current developments in the field of purchasing, prices, market conditions and new products.
   (I)   Maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations.
   (J)   Recommend to the city manager the transfer of surplus or unused supplies and equipment between departments as needed, and the sale of all supplies and equipment that cannot be used by any department or that have become unsuitable for city use.
   (K)   Use cooperative purchasing, whereby multiple government agencies, cooperative entities, or jurisdictions enter into a contract to procure from each other or to collectively procure a vendor, contractor or consultant.
   (L)   “Piggyback,” whereby the city utilizes another agency or jurisdiction’s solicitation results, but enters into a separate contract or issues a separate purchase order with the vendor.
   (M)   Award a negotiated contract when the purchasing agent determines that obtaining bids, quotations and proposals is not in the city’s best interest.
   (N)   Develop and maintain a list of contractors, vendors and professionals identified according to categories of work.
   (O)   Prequalify or prescreen contractors, vendors and consultants.
   (P)   Maintain a list of the construction trade journals, as determined for the county by the California Uniform Construction Cost Accounting Commission, to which the city must deliver notice of all informal and formal construction contracts being bid for work within the county.
(Ord. No. 2943)
SEC. 4-4.  CONFLICT.
   (A)   The provisions of this chapter shall not apply to the extent that they conflict, and shall be interpreted and construed to be consistent, with any applicable State or federal laws or regulations, or the terms and conditions of any grant, contract, gift or bequest otherwise consistent with law.
   (B)   Any evaluation or selection practice under this chapter that would result in unlawful activity, including, but not limited to, any rebate, kickback or unlawful consideration is expressly prohibited.  Any award of a contract where a public official has used his/her official position to influence a governmental decision in which he/she knows or has reason to know that he/she has a financial interest in any person or entity who seeks such a contract, or in the outcome of the selection process in any way, is expressly prohibited.
   (C)   Prior to participating in any procurement, a staff member will have to state the nature and length of his/her relationship, if any, to all bidders or proposers as well as any other personal interest in the outcome of the solicitation.  A staff member must immediately notify the purchasing agent and not review any materials or attend any meetings regarding the procurement until further instruction from the purchasing agent if that staff member has, or reasonably should know that he/she has, a prior relationship or personal interest in the outcome of the solicitation.
(Ord. No. 2943)
SEC. 4-5.  EXEMPTIONS.
   (A)   The city manager may authorize, in writing, any department to procure specified supplies, equipment, public projects and services independently of the purchasing agent.
   (B)   The following are exempted from obtaining competitive bids and proposals:
      (1)   Contracts unrelated to the procurement of goods, materials, public projects or services.
      (2)   Advertising (e.g., air time and newspaper and magazine advertising space, but not including advertising agencies or design services).
      (3)   Bank service fees.
      (4)   Government printed publications.
      (5)   Common carrier transportation.
      (6)   Travel payments directly to a hotel, motel, airline or other transportation (but not a conference or meeting room rental).
      (7)   Insurance.
      (8)   Memberships in professional organizations.
      (9)   Credit card payments to a bank.
      (10)   Contracts with other governmental entities.
      (11)   Permit fees, including, but not limited to, those to another governmental agency for operation of a city utility.
      (12)   Postage and United States Postal Service post office box fees (not private mail companies).
      (13)   Real property purchases, escrow fees and lease payments.
      (14)   Subscriptions to publications.
      (15)   Any utilities the city uses, including, but not limited to, payments for electricity or gas.
      (16)   Voting materials.
      (17)   Any other procurement exempted from bids or proposals in State or federal law.
      (18)   Legal brief printing and transcription.
      (19)   Legal services and services relating to legal matters.
      (20)   Anything relating to a confidential, ongoing police investigation and to other confidential police business.
   (C)   A purchase order, contract, or task order for legal services or services relating to legal matters may be awarded and executed by the city attorney, up to an annual authorization in the amount listed in Cal. Pub. Con. Code, Section 22032(b), as may be changed from time to time, or may be awarded and executed jointly by the city attorney and the most senior available member of the city council if over that amount.
   (D)   A purchase order, contract, or task order relating to a confidential, ongoing police investigation or other confidential police business may be awarded and executed jointly by the police chief and city manager up to an annual authorization in the amount listed in Cal. Pub. Con. Code, Section 22032(b), as may be changed from time to time, or may be awarded and executed jointly by the city manager and the most senior available member of the city council if over that amount.
(Ord. No. 2943)
SEC. 4-6.  NO OBLIGATION TO CONTRACT.
   Nothing in this chapter shall require the city to authorize any purchase order or enter into any contract with any person or firm.
(Ord. No. 2943)
ARTICLE II.  PUBLIC PROJECTS
SEC. 4-10.  UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT.
   The city council has elected to subject the city to the Uniform Public Construction Cost Accounting Act (Cal. Pub. Con. Code, Sections 22000 et seq.) in the performance of public projects.  The procedures contained in this chapter are intended to implement and be consistent with such Act.
(Ord. No. 2943)
SEC. 4-11.  BIDS REQUIRED.
   (A)   Other than for public projects in the amount listed in Cal. Pub. Con. Code, Section 22032(a), as may be changed from time to time, that are performed by force account, price quotations or bids shall be obtained for all public projects that cost over $5,000.
   (B)   The purchasing agent, public works director and city manager each may procure, without public bidding, public projects that cost up to $5,000.
(Ord. No. 2943)
SEC. 4-12.  TIER 1 PUBLIC PROJECTS.
   (A)   A public project in the amount listed in Cal. Pub. Con. Code, Section 22032(a), as may be changed from time to time, and costing over $5,000 that is not performed by force account requires at least three written bids. The purchasing agent shall use his/her discretion if three written bids cannot be obtained.
   (B)   The purchasing agent, public works director and city manager each may each award and execute such a contract.
(Ord. No. 2943)
SEC. 4-13.  TIER 2 PUBLIC PROJECTS.
   (A)   A public project in the amount listed in Cal. Pub. Con. Code, Section 22032(b), as may be changed from time to time, shall be bid out using the informal bidding procedures contained in Cal. Pub. Con. Code, Section 22034.  Notice shall be provided in accordance with Cal. Pub. Con. Code, Section 22034(a)(2).  The purchasing agent and public works director may award and execute Tier 2 public project contracts up to $100,000; the city manager may award and execute any Tier 2 public project contracts.
   (B)   If all bids received are in excess of the amount listed in Cal. Pub. Con. Code, Section 22032(b), as may be changed from time to time, the city council may, by adoption of a resolution by a four-fifths vote, award the contract up to the higher amount listed in Cal. Pub. Con. Code, Section 22034(d) to the lowest responsible bidder if the council determines the city’s cost estimate was reasonable.
(Ord. No. 2943)
SEC. 4-14.  TIER 3 PUBLIC PROJECTS.
   (A)   A public project in the amount listed in Cal. Pub. Con. Code, Section 22032(c), as may be changed from time to time, shall be bid out using the formal bidding procedures contained in Cal. Pub. Con. Code, Section 22037.
   (B)   The city engineer shall adopt plans, specifications and working details for all Tier 3 public projects.
(Ord. No. 2943)
SEC. 4-15.  REJECTING ALL BIDS.
   The purchasing agent may at any time reject all bids.
(Ord. No. 2943)
SEC. 4-16.  BONDS.
   In awarding a contract involving an expenditure in excess of the amount listed in Cal. Civil Code, Section 9550, the city shall require both faithful performance and payment bonds, each in the amount required by Cal. Civil Code, Section 9554.  Such bonds shall be issued by an admitted surety insurer.
(Ord. No. 2943)
SEC. 4-17.  CONTRACTS.
   Any public project over the amount listed in Cal. Labor Code, Section 1771, as may be amended from time to time, per contractor, shall be made by contract.
(Ord. No. 2943)
SEC. 4-18.  TASK ORDERS.
   The purchasing agent, public works director and city manager each may approve and execute any task order thereto that, collectively with all other task orders on the project, does not exceed the total contract value previously approved for the project.
(Ord. No. 2943)
SEC. 4-19.  CHANGE ORDERS.
   The purchasing agent, public works director and city manager each may award and execute any change order to a contract that, collectively with all other change orders on the project, does not exceed the contract plus contingency amount, if any, previously approved for the project.
(Ord. No. 2943)
SEC. 4-20.  EMERGENCIES.
   (A)   In cases of emergency, including, but not limited to, states of emergency defined in Cal. Gov’t Code, Section 8558, when repair or replacements are necessary, the city council may proceed at once to replace or repair any public facility without adopting plans, specifications or working details, or giving notice for bids to let contracts.  The work may be done by day labor under the direction of the city council, by contractor, or by a combination of the two.  Cal. Pub. Con. Code, Section 22050 shall apply when a notice for bids to let contracts is not given.
   (B)   The city manager and purchasing agent each may order any action pursuant to Cal. Pub. Con. Code, Section 22050.
(Ord. No. 2943)
ARTICLE III.  SUPPLIES AND EQUIPMENT
SEC. 4-30.  APPLICABILITY.
   This article shall not apply to supplies or equipment associated with a public project.
(Ord. No. 2943)
SEC. 4-31.  BIDS REQUIRED.
   (A)   Except when the supplies or equipment can be obtained from only one source, or when the purchasing agent determines that obtaining bids and price quotations is not in the city’s best interest, at least three written price quotations or bids shall be obtained for all purchases or leases of supplies or equipment that collectively cost over $5,000 per vendor or consultant, per fiscal year.  The purchasing agent shall use his/her discretion if quotes and bids should not or cannot be obtained.
   (B)   The purchasing agent and the director of each department may procure, without public bidding, purchases or leases of supplies or equipment that collectively cost up to $5,000 per vendor or consultant, per fiscal year.
(Ord. No. 2943)
SEC. 4-32.  BRAND AND TRADE NAMES.
   (A)   A request for quotations or bids shall not be drafted calling for designated supplies and equipment by specific brand or trade names, unless immediately followed by the words “or equal” so that bidders may furnish any equal supplies or equipment.  A request to substitute equivalent supplies or equipment must be in writing and submitted by the time listed in the request for quotations or bids, or if no such time is written therein, with the quotation or bid submission.  A request to substitute equivalent supplies or equipment must include all data necessary to demonstrate acceptability.  The burden of proof as to the comparative quality and suitability of the alternative supplies or equipment shall be upon the bidder, and the bidder shall furnish, at his/her/its own expense, all information necessary or related thereto as required by the purchasing agent.
   (B)   Subsection (A) is not applicable if:
      (1)   The purchasing agent makes a written finding in the request for quotations or bids that particular supplies or equipment are designated by specific brand or trade names for any of the following purposes:
         (a)   In order that a field test or experiment may be made to determine the supplies’ or equipment’s suitability for future use.
         (b)   In order to match other supplies or equipment in use on a particular project, either completed or in the course of completion, or on a service already provided or being provided.
         (c)   In order to obtain necessary supplies or equipment that are only available from one source.
         (d)   In order to respond to an emergency declared by the city, the State, a State agency, a political subdivision of the State or the federal government.
      (2)   The individual or entity with the authority to award a purchase order or contract determines that the purchase of supplies or equipment of a particular brand or trade name are for a valid purpose.
(Ord. No. 2943)
SEC. 4-33.  INFORMAL SOLICITATION.
   The purchasing agent shall perform informal solicitations for the purchases of supplies and equipment (unrelated to a public project) up to $100,000.
(Ord. No. 2943)
SEC. 4-34.  FORMAL SOLICITATION.
   The purchasing agent shall perform formal solicitations for the purchases of supplies and equipment (unrelated to a public project) over $100,000.
(Ord. No. 2943)
SEC. 4-35.  PUBLICATION.
   Notice inviting bids shall be published either in a newspaper of general circulation, an e-procurement website, and/or by any other method of advertising that is recognized and accepted for public agency purchasing and is consistent with applicable State law.  It shall be the responsibility of the purchasing agent to encourage as wide a response as possible from prospective vendors.
(Ord. No. 2943)
SEC. 4-36.  NO RESPONSIVE BIDS.
   When no responsive bids are received, the purchasing agent may elect to award and execute a negotiated contract.  The purchasing agent is authorized to negotiate for a written bid, and if the bid is for an amount over the city manager’s annual authorization, this contract shall be presented to the city council for award, and to the most senior available member of the city council for execution.
(Ord. No. 2943)
SEC. 4-37.  RECEIPT OR REJECTION OF BIDS.
   (A)   The city may accept a bid or proposal on the basis of the lowest bid or the best value.
   (B)   If two or more bids received are for the same total amount or unit price, the city may accept the one it chooses on the basis of the lowest bid made by negotiation or the best value.
   (C)   The purchasing agent may at any time reject all bids.
(Ord. No. 2943)
SEC. 4-38.  PURCHASE ORDERS AND CONTRACTS.
   (A)   Any supplies and equipment over $5,000 per vendor per fiscal year shall be made only by a purchase order or contract.
   (B)   Every purchase order or contract shall be awarded either to the most responsive, responsible bidder, or to the bidder offering the best value.
(Ord. No. 2943)
SEC. 4-39.  PURCHASE ORDERS PURSUANT TO CONTRACT.
   Where a contract has been awarded, the purchasing agent and city manager each may award and execute any purchase order thereto that, collectively with ail other purchase orders, does not exceed the total contract value.
(Ord. No. 2943)
SEC. 4-40.  CHANGE ORDERS.
   The purchasing agent and city manager each may approve and execute any change order to a purchase order or contract that, collectively with all other change orders on the project, does not exceed the contract plus contingency amount, if any, previously approved for the purchase or lease of supplies or equipment.
(Ord. No. 2943)
SEC. 4-41.  URGENCY.
   Sections 4-31 through 4-37 shall not apply to a situation that, at the city manager’s discretion:
   (A)   Does not permit obtaining price quotations or bids; and
   (B)   Public interest and necessity demand the immediate expenditure of public money to avoid harm to or to safeguard life, health or property, or to mitigate severe economic expenses.
(Ord. No. 2943)
ARTICLE IV.  TRADE AND PROFESSIONAL SERVICES
SEC. 4-50.  APPLICABILITY.
   This article shall not apply to trade or professional services associated with a public project.
(Ord. No. 2943)
SEC. 4-51.  [RESERVED FOR LIVING WAGE POLICY]
SEC. 4-52. BIDS OR PROPOSALS REQUIRED.
   (A)   Except when the service can be obtained from only one source, or when the purchasing agent determines that obtaining price quotations, bids and proposals is not in the city’s best interest, at least three written price quotations, bids or proposals shall be obtained for all trade or professional services that collectively cost over $5,000 per vendor or consultant, per fiscal year.  The purchasing agent shall use his/her discretion if price quotations, bids and proposals should not or cannot be obtained.
   (B)   The purchasing agent and the director of each department each may procure, without public bidding, trade or professional services that collectively cost up to $5,000 per vendor or consultant, per fiscal year.
(Ord. No. 2943)
SEC. 4-53.  BRAND AND TRADE NAMES.
   (A)   A request for quotations, bids or proposals regarding a service shall not be drafted calling for designated supplies and equipment by specific brand or trade names to be used in providing that service, unless immediately followed by the words “or equal” so that bidders or proposers may furnish any equal supplies or equipment in providing that service.  A request to substitute equivalent supplies or equipment must follow the process outlined in section 4-22, and the burden of proof is likewise on the bidder or proposer as explained in that section.
   (B)   Subsection (A) is not applicable if any exemption listed in section 4-22 applies.
(Ord. No. 2943)
SEC. 4-54.  INFORMAL SOLICITATION.
   The purchasing agent shall perform informal solicitations for the purchase of trade and professional services (unrelated to a public project) up to $100,000.
(Ord. No. 2943)
SEC. 4-55.  FORMAL SOLICITATION.
   The purchasing agent shall perform formal solicitations for the purchase of supplies and equipment (unrelated to a public project) over $100,000.
(Ord. No. 2943)
SEC. 4-56.  PUBLICATION.
   Notice inviting bids or proposals shall be published either in a newspaper of general circulation, an e-procurement website, and/or by any other method of advertising that is recognized and accepted for public agency purchasing and is consistent with applicable State law.  It shall be the responsibility of the purchasing agent to encourage as wide a response as possible from prospective vendors or consultants.
(Ord. No. 2943)
SEC. 4-57.  RECEIPT OR REJECTION OF BIDS OR PROPOSALS.
   (A)   The city may accept a bid or proposal on the basis of the lowest bid or the best value.
   (B)   In the case of bids for price only, if two or more bids received are for the same total amount or unit price, the city may accept the one it chooses on the basis of the lowest bid made by negotiation or the best value.
   (C)   The purchasing agent may reject all bids or proposals.
(Ord. No. 2943)
SEC. 4-58.  CONTRACTS.
   (A)   Any trade services over the amount listed in Cal. Labor Code, Section 1771, as may be amended from time to time, per vendor, per fiscal year, shall be made only by contract.  Every contract shall be awarded either to the most responsive, responsible bidder, or on the basis of demonstrated competence and on the qualifications necessary for the satisfactory performance of the services.
   (B)   Any professional services over $5,000 per consultant, per fiscal year, shall be made only by contract.  Every contract shall be awarded on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services.
(Ord. No. 2943)
SEC. 4-59.  TASK ORDERS.
   The purchasing agent and city manager each may approve and execute any task order that, collectively with all other task orders, does not exceed the total contract value previously approved for the trade or professional service.
(Ord. No. 2943)
SEC. 4-60.  CHANGE ORDERS.
   The purchasing agent and city manager each may approve and execute any change order to a contract that, collectively with all other change orders related to that contract, does not exceed the contract plus contingency amount, if any, previously approved for this procurement.  Once the contract plus contingency amount is met, any further change orders shall be submitted for approval by the city council.
(Ord. No. 2943)
SEC. 4-61.  URGENCY.
   Unless otherwise required by law, sections 4-52 through 4-57 shall not apply in a situation in which, at the city manager’s discretion:
   (A)   Does not permit obtaining price quotations, bids or proposals; and
   (B)   Public interest and necessity demand the immediate expenditure of public money to avoid harm to or to safeguard life, health or property, or to mitigate severe economic expenses.
(Ord. No. 2943)
ARTICLE V.  ADDITIONAL PROCEDURES
SEC. 4-70.  REGULAR REPORTING.
   Each department shall provide the purchasing agent with an annual report, listing all procurements awarded and/or executed by that department within that reporting period.
(Ord. No. 2943)
SEC. 4-71.  SMALL LOCAL BUSINESS PURCHASING PREFERENCE PROGRAM.
   (A)   In cases where the city code requires a written competitive bid for the purchase of goods or services, in determining the lowest responsible bidder, when responsibility and quality are equal, a credit in a percentage of the bid submitted by the lowest responsible bidder meeting specifications shall be given to a bidder that meets the definition of a “small local business” in this chapter as follows: 5% of the amount up to $500,000; 4% of the amount between $500,001 and $750,000; 3% of the amount between $750,001 and $1,000,000; 2% of the amount between $1,000,001 and $1,250,000 and 1% of the amount between $1,250,001 and $1,500,000. For example, if the lowest responsible bid is $1,000,000, the preference would be $42,500 ($500,000 x .05 + $250,000 x .04 + $250,000 x .03). The preference applies to all contracts, including contracts over $1,500,000, but the amount of the preference is limited, as provided herein, so that the maximum preference is $50,000.
   (B)   As an alternative to the employment requirements described in the definition of a “small local business,” and only with respect to trade services or construction contracts to perform for which the contractor intends to hire employees or to subcontract, a contractor submitting a bid shall satisfy the resident employment requirements for obtaining preference as follows.  With the submission of its bid, the contractor shall submit a certification, under penalty of perjury, that it has verified its own proposed employee base for performance of the contract and confirmed with all subcontractors providing bids used to formulate the contractor's bid, all of whom have subcontracted with or will subcontract with the contractor, that at least 50% of the labor hours devoted to performance of the contract will be provided by residents of the city.  During or within one year after performance of the contract, the city manager shall have the right to audit all the contractor’s records to confirm the accuracy of the contractor’s certification.  The contractor shall provide to the city all documents (including subcontractors’ records) appropriate to perform such an audit.  Should it be determined, after such audit by the city manager, that the requirements of this subsection have not been met, or should the contractor not upon request provide documents sufficient for the audit required by this subsection to be performed, the contractor shall be required to pay upon demand to the city the entire amount of any preference granted, which amount may be withheld from any payment otherwise due the contractor.  The foregoing is in addition to any other consequences that may be imposed upon the contractor for violation of the provisions of a city ordinance. The city manager’s determination under this subsection may be reviewed pursuant to sections 1-55 et seq. of the city code.
   (C)   Subject to review by the city manager, the requirements to obtain a small local business preference may be established by submission with the bid of certification, under penalty of perjury, that the business meets such requirement, including a list showing all employee addresses, and affirming that the employees have granted permission for the use of their addresses.
   (D)   The city manager shall determine whether a business is a small local business under this section, including whether the principal office of the business is in the city, and whether employees are residents of the city.  The city manager's determination shall be final and not appealable under any provision of the city code, except for the determination described in subsection (B) of this section.
   (E)   The city manager may adopt, or instruct the purchasing agent to adopt, such regulations, applications and forms as the city manager determines are appropriate to implement the provisions of this section.
   (F)   The provisions of this section shall not apply when the small local business preference described herein is contrary to or precluded by requirements of State or federal law, or contrary to or precluded by requirements of a State or federal funding source or program providing assistance to the city for the particular project.
   (G)   In addition to any other consequence that may be imposed for violation of a city ordinance, the city manager may prohibit a business entity that he/she determines has falsely claimed to be a small local business from bidding on city contracts for a period of up to five years.  The city manager’s determination may be reviewed pursuant to sections 1-55 et seq. of the city code.
(Ord. No. 2943)
SEC. 4-72.  ANNUAL AUTHORIZATION.
   (A)   Other than for the rental, lease or license of real property or a contract related to an exemption listed in section 4-5, the purchasing agent may award and execute any procurement contract or purchase order up to an annual authorization in the amount of $100,000.
   (B)   Other than for the rental, lease or license of real property or a contract related to an exemption listed in section 4-5, the city manager may award and execute any procurement contract or purchase order up to an annual authorization in the amount listed in Cal. Pub. Con. Code, Section 22032(b), as may be changed from time to time.
   (C)   Any amendment that, collectively with the original purchase order or contract and all amendments thereto, does not exceed an individual’s annual authorization may be approved and executed by him or her.
   (D)   If an individual has authority to award a purchase order or contract, he/she has the authority to amend such purchase order or contract, provided the total amount of that purchase order or contract, and all amendments thereto, does not exceed his/her annual authorization.
   (E)   The purchasing agent may terminate any purchase order or contract for procurement.
   (F)   It shall be unlawful to split or separate into smaller purchase orders or contracts any procurement for the purpose of evading the provisions of this chapter.
(Ord. No. 2943)
SEC. 4-73.  APPROVAL AS TO FORM.
   All purchase orders, contracts, amendments, task orders, change orders and terminations shall be approved as to form by the city attorney.
(Ord. No. 2943)
SEC. 4-74.  CONTRACT TERM.
   The city may enter into a contract for a term consistent with the industry standard term for that particular supply, equipment or service.
(Ord. No. 2943)
SEC. 4-75.  IMMEDIATE NEED.
   Other than for public projects, if the city council is not in session, or if there exists in the view of the purchasing agent an immediate need to do so, a purchase order, contract (including, but not limited to, a lease or license), change order or task order that otherwise would be submitted to the city council may be approved jointly by the city manager and the most senior available member of the city council.  The city manager shall place the jointly executed document on the agenda for ratification at one of the next three regular city council meetings.  Any document that is jointly approved in this way shall contain a provision that the authority to perform work under that document will automatically terminate on the date that ratification is denied, if it is.
(Ord. No. 2943)
SEC. 4-76.  REAL PROPERTY.
   The purchasing agent may award and execute up to an annual authorization of $50,000, and the city manager may award and execute up to an annual authorization of $100,000, any contract for the rental, lease or license of real property for periods of time not to exceed three years.
(Ord. No. 2943)
SEC. 4-77.  CREDIT CARDS.
   City staff may use city-issued credit cards to pay for supplies and equipment purchased for the city and for city-related training and travel.  The purchasing agent shall develop and maintain a procurement card manual for the issuance, oversight, and use of such credit cards.
(Ord. No. 2943)
ARTICLE VI.  SALE OF SUPPLIES, EQUIPMENT AND SERVICES
SEC. 4-80.  SALE OF SUPPLIES, EQUIPMENT AND SERVICES.
   (A)   The purchasing agent may sell, trade or otherwise dispose of supplies and equipment that are no longer used or have become obsolete or worn out, including awarding and executing contracts to sell, trade in or otherwise dispose of such supplies and equipment.
   (B)   The city manager may award and execute contracts to provide city staff s trade or professional services to another entity.
(Ord. No. 2943)