This chapter shall be known and may be cited and referred to
as the "Purchasing Ordinance of the city of Lemon Grove."
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purposes of this chapter are to define the centralized system
of the city for the purchase of supplies, services and equipment,
to provide for the fair and equitable treatment of all persons involved
in the purchasing process, to obtain the highest possible value in
exchange for public funds and to safeguard the quality and integrity
of the purchasing system.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
For the purposes of this chapter, the following definitions
apply:
means the best value to the city based on all factors, including,
but not limited to, the following:
Cost;
The ability, capacity and skill of a contractor to perform a
contract or provide the supplies, services or equipment required;
The ability of a contractor to provide the supplies, services
or equipment promptly or within the time specified without delay or
interferences;
The character, integrity, reputation, judgment, experience and
efficiency of a contractor;
The quality of a contractor's performance on previous purchases
by the city; and
The ability of a contractor to provide future maintenance, repairs,
parts and services for the use of the supplies purchased.
mean the documents, including their attachments and addenda,
which set forth instructions to bidders or proposers and which are
disseminated for the purpose of soliciting bids or proposals.
means equipment (fixed assets) with a monetary value established
by the finance director.
means the California Multiple Award Schedule which has a
wide variety of commodity and information technology products and
services at prices which have been assessed to be fair, reasonable
and competitive by the state of California.
means goods, services or equipment that can be obtained from only a single source. Items that have specific requirements by law or are required to match or be compatible with other furnishings, materials or equipment presently on hand, or when a particular type or make of commodity, furnishings, type of material or equipment has been standardized for the city by the city manager or the city council (see Section 3.24.100, Exemptions).
means construction, reconstruction, alteration, renovation,
demolition, erection, improvement, painting or repainting and repair
work involving any publicly owned, leased or operated facility.
means agreements, regardless of what they may be labeled,
between the city and one or more other parties for the purchase or
disposition of goods and/or services or construction.
means any party (business) who has entered into a contract
with the city for the provision or disposition of goods and/or services.
means the Lemon Grove School District located in Lemon Grove,
California.
means the city of Lemon Grove or any city department/division
requesting goods and/or services.
means the use of electronic technology for the acquisition
or disposition of supplies, services, equipment or construction.
means articles that are moveable at the time of sale, including,
but not limited to, equipment, supplies and/or materials.
means a gift, payment, loan, advance, deposit of money, or
service, presented or promised in return for or in anticipation of
favorable consideration in the procurement process.
means services intended to preserve and/or restore a public
facility to a clean, safe, efficient and/or continually usable condition.
Maintenance may include, but is not limited to: carpentry, electrical,
minor repainting, plumbing, glazing and other craftwork to preserve
a facility in the condition for which it was intended; cleaning and
other operations on machinery and other equipment attached to a facility
as fixtures; the mowing, pruning and trimming of lawns, grass, trees,
shrubs, bushes and hedges; servicing of irrigation and sprinkler systems;
and the regular removal or relocation of by-products or waste products
accumulated at city facilities.
means the acquisition of supplies, services, equipment or
construction by the city, including, but not limited to, purchasing,
renting or leasing, and all functions and procedures pertaining to
such acquisitions.
means services that involve the exercise of professional
discretion, independent judgment, and recommendations based on advanced
or specialized knowledge, expertise or training gained by formal study
or experience. Such services include, but are not limited to, those
provided by appraisers, architects, attorneys, engineers, instructors,
insurance advisors, physicians and/or other specialized consultants.
means the person responsible for the procurement of goods
and/or services in accordance with the provisions of this chapter.
The person designated by the city manager as the purchasing officer
of the city can designate department representative(s) to procure
goods and/or services for the city.
means an approved list of supplies, services, or construction
items described by model or catalog numbers that, prior to competitive
solicitation, the city has determined will meet the specification
requirements.
means a bidder determined by the awarding authority:
To have the ability, capacity, experience and skill to provide
the goods and/or services in accordance with bid specifications, and
if applicable;
To have the ability to provide the goods and/or services promptly,
or within the time specified, and if applicable;
To have equipment, facilities and resources of such capacity
and location to enable the bidder to provide the required goods and/or
services, and if applicable;
To be able to provide future maintenance, repair, parts and
service for the use of the goods purchased, and if applicable;
To have a record of satisfactory performance under prior contracts
with the city or other purchasers where such bidder has previously
been awarded such contract.
means a bidder determined by the city to have submitted a
bid or proposal that conforms in all material respects to the requirements
of the bid, contract, or proposal documents.
means a bid which has been submitted in a sealed envelope
or sealed electronically to prevent its contents from being revealed
or known prior to the deadline for the submission of all bids; required
on formal bids.
means work performed, or labor, time and effort expended,
by an independent contractor.
means a description of the physical and/or functional characteristics
or of the nature of the required goods and/or services.
means a contractor undertaking part of the work of a contract
under the control of the principal contractor.
means goods owned by the city which are no longer needed
or which are obsolete or unserviceable, or property that is a by-product
(scrap metal, used tires and oil etc.).
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
End
User. The end user shall:
1.
Identify
its procurement needs and the availability of funding;
2.
Submit
to the purchasing officer specifications for the required goods and/or
services;
3.
Participate
in the evaluation of bids and proposals; and
4.
Inspect
goods delivered and services performed to determine conformity with
the requirements set forth in the bid or proposal documents and with
contractual obligations, and authorize payments for conforming goods
and/or services.
B.
Purchasing
Officer. The purchasing officer shall be appointed by the city manager.
The purchasing officer shall be responsible for the procurement of
goods and/or services for the city in accordance with the provisions
of this chapter. No procurement of goods and/or services shall be
made contrary to the provisions of this chapter. Any agreement or
contract for the purchase of supplies, services and equipment made
contrary to the provisions of this chapter shall be void and any claim
or demand against the city based thereon shall be invalid. The purchasing
officer shall:
1.
Prepare
and recommend to the city manager operational procedures and forms
for the procurement of goods and/or services in cooperation with the
end users and for the disposal of surplus personal property;
2.
Procure
or supervise the procurement of all goods and/or services needed in
coordination with end users;
3.
Process
the contracts awarded administratively and/or by city council;
4.
Whenever
possible, establish standardized specifications and consolidation
of requirements for goods and/or services required by two or more
end users; and
5.
Sell
or otherwise dispose of surplus personal property, and lost and unclaimed
property held by the sheriffs department.
C.
City
Manager. The city manager shall be the awarding authority for:
1.
All
procurement of goods and/or services for which the cost to the city
is fifteen thousand dollars or less;
2.
All
capital outlay items approved by the city council during the budgeting
process in an amount of fifty thousand dollars or less;
3.
All
contracts for professional services of thirty thousand dollars or
less;
5.
All
public works change orders equal to the contingency amount set when
the underlying contract was awarded to a nonpublic works contract;
6.
All
change orders or amendments to non-public works contracts awarded
by the city council in an amount up to twenty-five percent of the
original contract amount, including the total of all amendments, up
to a limit of fifteen thousand dollars;
7.
The
city manager shall approve alternate procurement methods, if appropriate,
for use on an experimental basis, and recommend to the city council
additions, deletions or modifications to the city's procurement methods;
and
8.
The
city manager shall have the authority to delegate the awarding of
contracts, amendments and change orders for goods and services as
set forth in this chapter by memorandum or by administrative order.
D.
City
Council. The city council shall be the awarding authority for:
1.
All
procurement of goods and/or services costing more than fifteen thousand
dollars;
2.
All
public works contracts that are five thousand dollars or more; and
3.
All
contracts for professional services that exceed the city manager's
authority as set forth in this chapter and contracts greater than
thirty thousand dollars.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
Small
Procurements. Procurements of supplies, services and equipment, the
cost of which are five thousand dollars or less in any one transaction,
shall be made using simplified and cost effective operational procedures
without the use of formal bids. Procurement requirements shall not
be unnecessarily divided so as to constitute several small procurements
under this subsection.
B.
Informal
Bidding for Supplies, Services and Equipment. The purchasing officer
may purchase supplies, services and equipment using the informal bidding
procedures established in this section. Informal bidding procedure
may be utilized:
1.
When the anticipated cost of the supplies, services and equipment to be purchased is less than the dollar amount established for formal bidding in subsection (C)(1) of this section;
2.
When
no bids are received pursuant to the formal bid procedures established
for supplies, services and equipment;
3.
When
all bids received substantially exceed the city's estimated costs;
4.
Further, the city council may designate types or classes of supplies, services and equipment costing more than the dollar amount established for formal bidding in subsection (C)(1); which may be purchased through the use of informal bidding procedures whenever the city council finds that use of the informal bidding procedure is advantageous to the city consistent with applicable law; and
5.
The
informal bidding procedure shall be as follows:
a.
The purchasing officer shall solicit bids by written or oral request.
Responses shall be in writing, and may be transmittable to the purchasing
officer by facsimile, by mail, orally, electronically over the Internet,
or by any other means of delivery. When possible, a minimum of three
bidders should be solicited and the award shall be based on best value
and shall be awarded by the city manager.
C.
Formal
Bidding for Supplies, Services and Equipment.
1.
The
purchasing officer shall purchase supplies, services and equipment
using the formal bidding procedures established in this section. Formal
bidding procedures shall be utilized when the anticipated cost of
the supplies, services and equipment is greater than fifteen thousand
dollars. The bid limit shall be reviewed annually by the purchasing
officer and automatically adjusted in response to the San Diego –
All Urban Consumer Price Index. The purchasing officer shall calculate
the effect of the cumulative change in the index to twenty-five thousand
dollars beginning in 2003. Adjustment to the bid limit will be made
in five thousand dollar increments whenever the calculated value exceeds
a previously set bid limit by more than two thousand five hundred
dollars. The bid limit adjustment will be made effective at the beginning
of a fiscal year by memorandum from the purchasing officer; and
2.
Procurement
requirements shall not be divided so as to avoid the formal bidding
requirements.
D.
The
formal bidding procedures shall be as follows:
1.
The
purchasing officer shall issue a notice inviting bids using one or
more methods designed to provide reasonable public notice in a manner
that will permit current information to be disseminated widely. The
notice shall include:
a.
Instruction to bidders,
b.
Specifications describing the required supplies, goods or equipment,
c.
Bid forms and schedules,
d.
Any required bond and/or security forms,
e.
General provisions,
f.
The time on or before which bids will be received,
g.
Where and with whom bids shall be filed, and
h.
The date, time, and place where and when the bids will be publicly
opened;
2.
At
the bidders' request and/or when the city deems feasible, bid documents
may be transmitted and/or reviewed over the Internet. The purchasing
officer shall receive the sealed formal bids at a time, date and place
designated in the bid documents. The purchasing officer will publicly
open formal bids, timely received, and the aggregate bid pricing shall
be read aloud;
3.
Any
person with whom the city has contracted to prepare or assist in the
preparation of bid or proposal documents is ineligible to submit a
bid or proposal for the provision of the goods or the performance
of the services so specified in the notice inviting bids or proposals;
4.
Formal
bids received after the deadline for receipt of bids shall not be
accepted by the city and shall be returned to the bidder unopened,
unless opening is necessary for identification purposes. The purchasing
officer shall submit written notification to the bidder whose bid
was received after the deadline stating what the deadline was, when
the bid was actually received and that the bid is being returned because
it was received after the deadline;
5.
If
no bids are received or if no bids meet the requirements as specified
in the solicitation documents, the purchasing officer may reissue
the solicitation using the informal bidding procedures or the city
may cease the procurement;
6.
If
two or more bids are received with the same total amount or unit price,
quality and service being equal, and if the public interest will not
permit the delay of advertising again for bids, the purchasing officer
shall enter negotiations to determine if a low bid can be negotiated;
7.
In
considering formal bids for supplies, services and equipment, the
awarding authority may waive minor defects or irregularities, provided
that the irregularities do not affect the bid amount or give a particular
bidder an advantage over others;
8.
All
bids shall be deemed rejected if no city council action is taken on
the bids or proposals within ninety days after the bids have been
received and opened, unless bidders agree to extend a bid's effective
date upon request by the city;
9.
The
city shall have the authority to require a performance bond in such
amount as it finds reasonably necessary to protect the best interests
of the city consistent with applicable law. If the city requires a
performance bond, the amount of the bond shall be described in the
notice inviting bids;
10.
All contracts for supplies, services and equipment shall be awarded
based on the best value for the city; and
11.
The city manager shall send to the city council a report of all contracts
that have been awarded administratively.
E.
Petty
Cash. The high cost of payment processing makes it imperative that
small-dollar purchases be made by cash. Each department, with city
manager approval, may have a petty cash fund of five hundred dollars
and should use it for minor purchases up to fifty dollars per item
when buying from uncommon sources or vendors unwilling to establish
a credit account with the city. Each department should submit their
petty cash expenditures for reimbursement as needed. The finance department
shall periodically audit each department's petty cash fund.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purchasing officer may authorize the solicitation of professional services other than those listed in Section 3.24.070, and the purchase of technical supplies or equipment by competitive negotiations when:
A.
The
cost of the supplies, services, or equipment is greater than five
thousand dollars;
B.
The
supplies or equipment are such that suitable technical or performance
specifications are not readily available;
C.
The
city is not able to develop descriptive specifications;
D.
Requesting
proposals for the particular service or purchase would be more advantageous
to the city; and
E.
Whenever
possible, at least three proposals shall be received and the award
will be based on the proposal that is determined to be most advantageous
to the city, taking into consideration price and the evaluation criteria
set forth in the request for proposal. Competitive negotiations are
not intended to be used for the purpose of avoiding the bidding procedure
set forth in this chapter. The city manager shall award contracts
for goods, services or equipment less than fifteen thousand dollars.
The city manager shall send to the city council a report of all competitively
negotiated contracts that have been awarded administratively.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
For the purpose of this section, a local vendor is a business
that is located in and licensed to provide goods and/or services within
the city limits of Lemon Grove, and reports sales taxes to the state
of California.
The purchase of taxable goods by the city of Lemon Grove in
any solicitation of bids or quotes for goods or services and any solicitation
for work involving the supply of materials or goods as a part of the
bid or quote is subject to the application of a local vendor preference.
When calculating bids or quotes based on the lowest responsible bid,
and which involves the purchase of taxable goods in whole or in part,
the preference to be granted to the price bid or quoted by a local
vendor shall be two percent.
If the bid or quote is a mixture of taxable and nontaxable items,
the two percent preference will only apply to the taxable portion
of the bid or quote. If the bid or quoted price after the preference
is granted makes the local vendor the lowest responsible bidder, the
city shall make the purchase from the local vendor at the bid or quoted
price.
(Ord. 413 § 1, 2012)
A.
Request
for proposal shall be used when the services of professionals are
needed. The selection of specialized professional services, including,
but not limited to, architectural, landscape architectural, engineering,
appraisals, environmental, land surveying or construction project
management firms is based on the professional qualifications necessary
for the satisfactory performance of the service required, on demonstrated
competence, and on a fair and reasonable price consistent with Government
Code Section 4526. Whenever possible at least three proposals shall
be received for the professional service needed. The purchasing officer
may waive the requirements for solicitation of multiple proposals
if only one individual or firm can provide the professional services.
The city manager shall send to the city council a report of all professional
service contracts that have been awarded administratively.
B.
The
city's professional services procurement practice prohibits unlawful
activity including, but not limited to, rebates, kickbacks, or other
unlawful consideration. No city employee shall participate in the
selection process if that employee has a relationship with a person
or business entity seeking a contract with the city that would subject
that employee to the prohibition of Government Code Section 87100
(Conflicts of Interest).
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
No change in an agreement or contract shall be made without
the issuance of a written change order or amendment, and no payment
for any such change shall be made unless a written change order or
amendment has first been approved and executed in accordance with
this section designating in advance the work to be done and the amount
of additional compensation to be paid.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The purchasing officer shall have the authority to join with
other public or quasi-public agencies such as the district and CMAS
in cooperative purchasing plans or programs for the purchase of supplies,
services and/or equipment by contract, arrangement or agreement as
allowed by law and as determined by the purchasing officer to be in
the city's best interest. The purchasing officer may buy directly
from a vendor at a price established by another public agency when
the other agency has made their purchase in a competitive manner.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
The following procurements, contracts or transactions are exempted from the provisions of Chapter 3.24:
A.
Emergency
procurements for construction, equipment or repairs;
B.
Sole
source goods or services;
C.
Items
required to match or be compatible with other furnishings, materials
or equipment previously purchased by the city;
D.
Commodities,
furnishings, types of materials or equipment that have been standardized
for the city by the city manager or by the city council;
E.
Utility
services and related charges;
F.
Goods
or services obtained from or through agreement with any governmental,
public or quasi-public agency;
G.
Real
property leases or purchases and related title and escrow fees;
H.
Insurance
and bonds;
I.
Advertising
in magazines, newspapers or other media;
J.
Works
of art, specialty signage, entertainment or performers;
K.
Library
collection materials or services or other books or periodicals;
L.
Membership
dues, conventions, training, travel arrangements including hotels,
car rentals and airfare; and
M.
Surplus
personal property owned by another government, public or quasi-public
entity.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
A.
The
purchasing officer shall have the authority to sell or dispose of
surplus property. All surplus property is for sale "as is" and "where
is," with no warranty, guarantee, or representation of any kind, expressed
or implied, as to the condition, utility or usability of the property
offered for sale. Appropriate methods of sale are as follows:
1.
Public
Auction. Surplus property may be sold at public auction. Public auction
may be conducted by the city staff, county of San Diego, or the city
may contract with a professional auctioneer including professional
auction services.
2.
Sealed
Bids. Sealed bids may be solicited for the sale of surplus property.
Surplus property disposed of in this manner shall be sold to the highest
responsible bidder.
3.
Selling
for Scrap. Surplus property may be sold as scrap if the purchasing
officer deems that the raw materials exceed the value of the property
as a whole.
4.
Negotiated
Sale. Surplus property may be sold outright if the purchasing officer
determines that only one buyer is available or interested in acquiring
the property.
5.
No
Value Sale. When the purchasing officer determines the specific supplies
or equipment are surplus and of minimum value to the city due to obsolescence,
other cause, or where the purchasing officer determines that the cost
of disposal of such supplies or equipment would exceed the recovery
value, the purchasing officer shall dispose of the same in such a
manner as deemed appropriate and in the best interest of the city.
B.
All
proceeds from the sale of surplus property shall be deposited in the
city's general fund.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
Contracts for public projects in the city shall be governed
by applicable state laws including the California Public Contract
Code, Division 2, Part I, and Division 2, Part 3, the Local Agency
Public Construction Act. Contracts for public projects shall also
be governed by the adopted edition of the Standard Specifications
for Public Works Construction and the adopted supplement thereto,
adopted by the Greenbook Committee of the Public Works Standards,
Inc. and other documents as deemed appropriate by the city manager,
except as otherwise provided by the city council or the city manager
if the contract is within their authority (Division 2, Part 3, Chapter
I, Article 4, Sections 20160-20174). Further, the city of Lemon Grove
has, by resolution, chosen to be governed by the Uniform Construction
Accounting Procedures Act (Public Contracts Code Sections 22010 et
seq.), as amended, under the procedures set forth herein and by implementing
resolutions established by the city council. All procedures set forth
herein shall be interpreted in a manner consistent with state law.
A.
Public
projects equal to or less than the amount specified in Section 22032(a)
of the California Public Contract Code may be performed by city employees
by force account, by negotiated contract or by purchase order.
B.
Public
projects equal to or less than the amount specified in Section 22032(b)
of the California Public Contract Code may be let to contract by informal
procedures. The informal bidding procedures for construction projects
shall include the following:
1.
The
purchasing officer or designee shall maintain a list of qualified
contractors established by this chapter;
2.
The
purchasing officer or designee shall send a notice inviting informal
bids to all contractors on the list of qualified contractors or to
the designated construction trade journals and/or both not less than
ten calendar days before bids are due;
3.
The
notice inviting informal bids shall describe the project in general
terms, how to obtain more detailed information about the project,
the time, date and place for the submission of bids;
4.
Bid
documents may be transmitted and/or received over the Internet, by
facsimile and/or electronic mail;
5.
The
city council may, in its sole discretion, reject any or all bids presented
and waive any minor irregularity or informality in such bids. The
contract shall be awarded to the lowest responsive, responsible bidder.
If two or more bids are the same and the lowest, the city council
may accept the one it chooses. If no bids are received through the
informal procedure, the project may be performed by city employees,
by force account or negotiated contract without further complying
with this section;
6.
If
all bids received are in excess of the amount specified in this subsection,
the city council may, by adoption of a resolution by a four-fifths
vote, award the contract, at the amount specified in Section 3.24.130(F);
and
7.
The
city council shall award all informal contracts in a form approved
by the city attorney.
C.
Public
projects of more than the amount specified in Section 22032(c) of
the California Public Contract Code shall, except as otherwise provided
in this chapter, be let to contract by the city council through the
formal bidding procedure. The formal bidding procedures for construction
projects shall include the following:
1.
The
purchasing officer or designee shall maintain a list of qualified
contractors established by this chapter;
2.
The
notice inviting formal bids for public projects shall be published
at least fourteen calendar days before the bid opening date in a newspaper
of general circulation in the city. The notice shall distinctly state
the project to be done, how to obtain more detailed information about
the project, and state the time and place for submission of bids.
The purchasing officer or designee shall send a notice inviting informal
bids to all contractors on the list of qualified contractors and to
the designated construction trade journals at least ten calendar days
before bids are due. In addition to the newspaper and use of publication
methods required under the California Uniform Construction Cost Accounting
Commission, the notice inviting bids may be advertised in any manner
which will permit the information to be widely disseminated, including
additional contractors and/or construction trade journals;
3.
Bid
documents may be transmitted and/or received over the Internet, by
facsimile and/or electronic mail;
4.
The
city council may, in its sole discretion, reject any or all bids presented
and waive any minor irregularity or informality in such bids. The
contract shall be awarded to the lowest responsive, responsible bidder.
If two or more bids are the same and the lowest, the city council
may accept the one it chooses. If no bids are received, the city council
may have the project done without further complying with this chapter;
5.
If
no bids are received through the formal procedure, the project may
be performed by city employees, by force account or negotiated contract
without complying with this section.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012; Ord. 415 § 2, 2013)
The city council may by resolution authorize the city manager
to approve change orders on a project to an amount it determines appropriate
for a large, complex project.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
In cases of emergency, as determined by the city council, including,
but not limited to, states of emergency defined in Government Code
Section 8558, as may be amended from time to time, when repair or
replacements are necessary to permit the continued conduct of the
operation or services of a public agency or to avoid danger to life
or property, the city manager may then proceed at once to replace
or repair any public facility and/or procure the necessary equipment,
services and supplies, without giving notice of bids to let contracts.
Emergency work may be completed by day labor under the direction of
the city manager, or by contractor, or a combination of the two. The
city manager is delegated the power to declare a public emergency
subject to ratification by the city council within seven days thereafter.
(Ord. 407 § 3, 2011; Ord. 413 § 1, 2012)
