§ 3.08.020. Purchasing process.

A.

First Level Expenditures. For first level expenditures, in an amount established by resolution of the city council, the user department is not obligated to obtain bids nor to issue a written purchase order.

B.

Second Level Expenditures. For second level expenditures, in an amount established by resolution of the city council, the user department shall first solicit at least three informal bids, diligently attempting in good faith to obtain the best value for the city. The user department director or his or her authorized assistant shall record all informal bids. The user department shall prepare a written purchase order for all second level expenditures. The original purchase order shall be forwarded to the designated vendor, and the second copy shall be filed with the user department until delivery or acceptance of the purchase.

C.

Third Level Expenditures. For third level expenditures in an amount established by resolution of the city council, unless otherwise ordered by the city manager, the user department shall first solicit at least three written competitive bids, diligently attempting in good faith to obtain the best value for the city. All written bids shall be retained by the user department director or his or her authorized assistant. For purchases greater than first level, the user department shall prepare a written purchase order. The original purchase order shall be forwarded to the designated vendor, and the second copy shall be filed with the user department until delivery or acceptance of the purchase.

D.

Fourth Level Expenditures. For fourth level purchases, in an amount established by resolution of the city council, only the formal bid process shall be permitted. The completed purchase order, with bids or bid summaries attached, shall be forwarded to the user department director for his or her approval and signature on all copies. The original purchase order shall be forwarded to the designated vendor, and the second copy shall be filed with the user department until delivery or acceptance of the purchase.

E.

Expenditures Involving Public Projects. Notwithstanding the provisions of Article 4 (commencing with Section 20160) of Chapter 1, part 3 of the California Public Contract Code, the requirements for the award of contracts for public projects of the city may be governed by the alternative procedures contained in Article 3 (commencing with Section 22030) of the Uniform Public Construction Cost Accounting Act (hereinafter "Act").

1.

Public Projects of Forty-Five Thousand Dollars ($45,000.00) or Less. Public projects, as defined by the Act, of forty-five thousand dollars ($45,000.00) or less, or other such limits as may be promulgated from time to time by the California Uniform Construction Cost Accounting Commission, appropriations for which have been approved by the city council, may be performed by the employees of the city by force account, or by negotiated contract or purchase order approved by the city manager.

2.

Public Projects of One Hundred Seventy-Five Thousand Dollars ($175,000.00) or Less (Informal Bidding Procedures). Public projects, as defined by the Act, of one hundred seventy-five thousand dollars ($175,000.00) or less, or other such limits as may be promulgated from time to time by the California Uniform Construction Cost Accounting Commission, may be let to contract by informal procedures as set forth in Sections 22030 et seq., of the Public Contract Code.

a.

A list of qualified contractors, identified according to categories of work shall be developed and maintained by the director of public works in accordance with the provisions of Section 22034 of the Act.

b.

A notice inviting informal bids shall be mailed to all contractors on the list for the category of work to be bid or all construction trade journals specified in Section 22036, or both all contractors on the list for the category of work being bid and all construction trade journals specified in Section 22036. Additional contractors and/or construction trade journals may be notified at the discretion of the city; provided however: (i) if there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission, or (ii) if the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. All mailing of notices to contractors and construction trade journals shall be completed not less than ten (10) calendar days before bids are due.

c.

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

d.

The city manager is authorized to award informal contracts pursuant to this section.

e.

If all bids received are in excess of one hundred seventy-five thousand dollars ($175,000.00), or other such limits as may be promulgated from time to time by the California Uniform Construction Cost Accounting Commission, the city council may by passage of a resolution by a four-fifths vote, award the contract, at one hundred eighty-seven thousand five hundred dollars ($187,500.00), or less, or other such limits as may be promulgated from time to time by the California Uniform Construction Cost Accounting Commission, to the lowest responsible bidder, if it determines the cost estimate of the city was reasonable.

3.

Public Projects of More Than One Hundred Seventy-Five Thousand Dollars ($175,000.00) (Formal Bidding Procedures). For all public projects of more than one hundred seventy-five thousand dollars ($175,000.00), or other such limits as may be promulgated from time to time by the California Uniform Construction Cost Accounting Commission, a contract shall be awarded pursuant to a formal bidding procedure as set forth in the Act, and subject to the exemptions provided for therein.

4.

Emergency Contracts. In cases of emergency when repair or replacements are necessary, the city council may proceed at once to replace or repair any public facility in accordance with Public Contract Code Section 22035.

F.

Open Purchase Orders.

1.

Defined. "Open purchase orders" means a purchase where the acquisition is not made all at one time; it shall be a continuing order providing continuing authority to purchase from vendors who furnish monthly supplies or services in such volume as to justify the issuance of an open order. All open purchase orders shall state a maximum amount of expenditures.

2.

Use. Upon the user department's written request therefor, an open purchase order may be prepared and issued. The original copy, after approval and signature, shall be forwarded to the vendor. The second copy shall be retained by the user department. When an open purchase order is utilized, expenditures shall be reported by the use of requisitions. Such requisitions shall be signed by the department director or his or her duly authorized assistant. Such requisitions against an open purchase order shall be filed immediately by the user, department before each and every purchase.

G.

Guidelines for Evaluating Bids. Except as otherwise required by law, guidelines for evaluating bids shall include, but not be limited to, the following:

1.

The character, integrity, reputation, judgment, experience and efficiency of the bidder (this may include an analysis of previous work performed for the city);

2.

The ability of the bidder to perform the contract, or provide the materials, supplies or services required, within the time specified, without delay or interference;

3.

The ability of the bidder to provide future maintenance, repair parts, and replacement of purchased materials or supplies;

4.

Compliance by the bidder with federal acts, executive orders, and state statutes governing nondiscrimination in employment;

5.

The results of any evaluation relating performance and price, such as testing. life cycle costing, and analysis of service, maintenance and technical data;

6.

Fitness and quality being equal, a preference may be granted to local vendors for the purchase of materials, supplies and services. The city may provide a preference to each qualified local vendor if the bid of a local qualified vendor does not exceed the lowest bid or price quoted by other vendors by more than five percent. Application of the five percent preference in the award of the contract shall mean the amount by which the local vendor bid or estimate shall be deemed reduced in the city's bid award or selection process and shall not actually reduce the amount ultimately paid by the city to the successful bidder. To qualify as a local vendor, a business must have all current applicable city licenses and permits, must maintain its primary office, distribution point, or place of business within the city and must report and pay sales tax to the state of California that identifies the point of sale for taxable transactions as a location within the city limits. Ord. 547 § 2(O), (P), 2003; prior code § 2-4.02)

(Ord. No. 665, § 2, 8-26-2014)