CC Ordinance 2228ORDINANCE NO. 2228
AN ORDINANCE OF THE CAMPBELL CITY COUNCIL TO AMEND CAMPBELL
MUNICIPAL CODE CHAPTER 3.20 PURCHASING PROCEDURE
WHEREAS, Chapter 3.20 establishes the City's procedures for the purchase, leasing
and disposal of supplies, services and equipment at the lowest possible cost,
commensurate with the quality needed; and
WHEREAS, the Chapter sets forth guidelines for bidding, purchase orders, formal
contract procedures, open market procedures, purchases from other agencies, sale and
disposal of obsolete personal property, alternative bidding procedures, and Requests
for Proposals; and
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WHEREAS, as part of the' City Attorney's workplan, staff has been reviewing CMC
Chapter 3.20 to identify and clarify some sections to bring them in alignment with
applicable State law, and to identify and recommend modest changes to purchasing
and surplus disposal dollar limits, as these have not been adjusted in many years and
no longer reflect current market conditions; and
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES
ORDAIN AS FOLLOWS:
SECTION 1: CHAPTER 3.20 IS HEREBY AMENDED TO READ AS FOLLOWS:
Chapter 3.20 -PURCHASING PROCEDURES
Sections:
3.20.010 -Adoption of purchasing system.
In order to establish efficient procedures for the purchase, leasing and disposition of
supplies, services and equipment, to secure for the city supplies, service and equipment
at the lowest possible cost commensurate with quality needed, to exercise positive
financial control over purchases, leases and dispositions, to clearly define authority for
the purchasing function and to assure the quality of purchases, a purchasing system is
adopted. Except as provided in section 3.20.090, the provisions of this chapter shall not
apply to materials, supplies or equipment for public works projects governed by the
California Public Contracts Code,
3.20.020 -Purchasing officer. ,
The purchasing officer shall be the city manager or his or her designee. The duties
of purchasing officer may be combined with those of any other office or position(s). The
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purchasing officer shall have authority to:
(1) Purchase or provide for the purchase or lease of all materials, services,
~ supplies and equipment for the use of all departments, commissions and board
comprising the city government, in accordance with the provisions of this
chapter, and such administrative rules and regulations as shall be prescribed by
the city council or city manager;
(2) Recommend execution of contracts for the purchase or lease of supplies,
~ services and equipment;
(3) Act to procure the needed quality in supplies, services and equipment at least
expense to city;
(4) Keep informed of current developments in the field of purchasing, prices,
market conditions, services and new products;
(5) Prescribe and maintain such forms as are reasonably necessary to the
operation of this chapter and other rules and regulations;
(6) Supervise the inspection of all supplies, services and equipment purchased or
leased to' ensure conformance and regulations;
(7) Recommend the transfer of surplus or unused supplies and equipment between
departments as needed and the sale, donation or disposal of all supplies and
equipment which cannot be used by any agency or which have become
unsuitable for city use;
($) Maintain a bidder's list, vendor's catalogue file and records needed for the
efficient operation of the purchasing office.
3.20.030 -Bidding.
Except as otherwise authorized or required by this chapter, or under state or federal
law, purchases of supplies, services and equipment shall be by the bidding procedures
specified in Section 3.20.050 of this chapter. The bidding procedures of Section
3.20.050 may be dispensed with when any of the following circumstances exist, unless
otherwise required by state and federal law:
(1) The estimated value of supplies, .services or equipment is less than, or equal to,
fifty thousand dollars, and the procedures set forth in section 3.20.060
(2) No acceptable bids are received from'any responsible bidder, after following the
procedures set forth in Section 3.20.050 of this chapter;
(3) An emergency situation creates a threat to the public health, safety or welfare
that necessitates the suspension of the bidding procedures of Section 3.20.050;
(4) The city seeks the special services, consultation or advice in financial,
" economic, accounting, engineering, legal, administrative or other matters from
persons specially trained, experienced and competent to perform the special
services required;
(5) The city has elected to purchase supplies, materials or equipment directly from
the state of California, the county of Santa Clara or any other California county
or municipality pursuant to Section 3.20.070. of this chapter;
(6) The city elects to purchase supplies, materials or equipment directly from a
vendor determined to be the lowest responsible bidder as a result of a
competitive bid process conducted by the state of California, the county of
Santa Clara or any other California county or municipality. Such purchases are
allowed provided that:
(A) The bidding procedures conducted by the agencies identified are
reasonably consistent with Section 3.20.050 of this code, and
(B) The vendor agrees to provide the same low bid price to the city as provided
to the awarding agency;
(7) The supplies, services or equipment can only be obtained from one vendor, in
which case the City may negotiate directly with that vendor; or
(8) The City Council, by a majority vote, determines that it is in the best interest of
the public to dispense with the requirements of Section 3.20.050, in which case
the City Council shall prescribe the appropriate method of purchase.
In the event that subsections (2), (3), or (4) apply, the purchasing officer may
proceed with the purchase in the manner that he or she determines to be in the
best interest of the City.
3.20.040 -Purchase orders.
Purchase of supplies, services and equipment shall be made only by purchase
order, except those purchased under approved petty cash procedures.
3.20.050 -Formal contract procedure.
Except as otherwise provided in this chapter, purchases and contract for supplies,
services and equipment of estimated fair market value greater than .fifty thousand
dollars shall be written contract with the lowest responsible bidder pursuant to the
procedure prescribed herein as follows:
(1) Approval of Specifications. Specifications shall be approved by the city council,
_ the original of which shall be filed in the office of the city clerk.
(2) Notice Inviting Bids. The notice inviting bids shall be advertised upon the
authority of the city council and shall include a general description of the articles
to be purchased or services to be performed, shall state where bid blanks and
specifications may be secured, form and amount of performance bond, if
required, and the time and place for opening bids:
(A) Published Notice. Notice inviting bids shall be published one time in a
newspaper of general circulation in the city. .
~(B) Bidder's List. The requesting department shall also solicit sealed bids from
all responsible prospective suppliers whose names are on the bidder's list
or who have requested their names to be added thereto.
(3)' Bidder's Security. The notice for invitation for bids shall prescribe an amount of
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money to accompany the bid proposal, which is required as the bidder's
security. Bidders shall be entitled to return of bid security; .provided, that a
successful bidder shall forfeit the bid security upon refusal or failure to execute
a contract within ten days after the award of contract has been mailed, unless
the city is responsible for the delay. The city council may, on refusal or failure of
the successful bidder to execute the contract, award it to the next lowest
responsible bidder. If the city council awards the contract to the next lowest
bidder, the amount of the lowest bidder's security shall be applied by the city to
the difference between the low bid and the second lowest bid, and the surplus,
if any, shall be returned to the lowest bidder.
(4) Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk 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 during business hours for public inspection from the time they are
opened until the award has been made by the City Council.
(5) Tabulation of Bids. The requesting department shall tabulate all bids received
. and the City Manager shall recommend to the city council, which, in his opinion,
is the best and lowest bid:
(6) Award of Contracts. Contracts shall be awarded by the City Council to the
lowest responsible bidder except as otherwise provided in this chapter.
(7) Rejection of Bids. In its description, the City Council may reject any and all bids
presented. The City Council may then re-advertise the bids or authorize the City
Manager to proceed with the purchase of the materials, services or equipment
by negotiation in the open market subject to final approval of purchase by City
Council.
' (8) 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 re-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 meeting
at which the award of the bid is to be made.
(9) Performance Bonds. The City Council shall have authority to require a
performance bond before entering a contract in such amount as it shall find
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.
3.20.060 -Open market procedure.
Purchases of supplies, services and equipment that are excepted from the bidding
requirements of this chapter may be made without any further observance of the
procedures prescribed by Section 3.20.050. Provisions of this section are meant to
include only routine contractual services, and not the hiring of consulting engineers for
the development of local improvement districts, or other non-routine assistance normally
classified as consulting, which shall be performed in accordance with the provisions of
Section 10.7 of the city of Campbell Policy/Administrative Procedures Manual, entitled
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"Retaining of Consultants."
(~) Minimum Number of Bids. Open market purchases shall, whenever possible, be
based on at least three bids, and shall be awarded to the lowest responsible
bidder.
(2) Notice Inviting Bids. The requesting department may solicit bids by written
request to prospective vendors or by telephone. The requesting department
shall keep a record of all open market orders and bids submitted thereon for a
period of one year after the submission of bids or the placing of orders. This
record, while so kept, ,shall be open to public inspection.
3.20.070 -Purchases from other agencies.
The City is authorized to make purchases of supplies, materials and equipment
through, or on behalf of:
(~) The State of California as allowed by applicable law; or
(2) The County of Santa Clara or any other California county or
municipality; provided, that said agencies have used bidding
-procedures that are reasonably consistent with Section 3.20.050 of this
chapter.
3.20.080 -Sale of obsolete personal property.
Personal property which is outmoded, obsolete, no longer usable for the
public purpose intended, in a state of disrepair requiring serviceable costs in
excess of its salvage value, in need of replacement to maintain a reasonable
i standard of public service, or of no benefit or surplus to the needs of the City,
i may be sold at public auction.
When sales of city personal property involve a book value or consideration
of ten thousand dollars or less per 'item, the city ...manager or his or her
designee may approve them. All sales involving a book value or consideration
of more than twenty thousand dollars per item must be approved by the City
Council.
A list of City property which is sold or traded, including the payment
received or the trade-in value allowed, shall be provided to the Finance
department for equipment inventory/audit purposes.
3.20.081 -Disposal of obsolete personal property or transfer for public
purposes.
Personal property which is outmoded, obsolete, no longer usable for the
public purpose intended, in a state of disrepair requiring serviceable costs in
excess of its salvage value, in need of replacement to maintain a reasonable
standard of public service, or of no benefit or surplus to the needs of the City,
may b.e disposed of, or may be transferred to another public or government
entity needing such personal property at a sale price less than its estimated
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salvage value, or for.no sale price by authority of the city manager or his or
her designee if each individual item is not in excess of a book value of five
thousand dollars. All disposals involving a book value or consideration of
more than two thousand five hundred dollars per item must be approved by
the City Council.
3.20.090 -Alternative bidding procedures for public projects-Incorporation of
uniform construction cost accounting procedures.
Pursuant to the uniform construction accounting procedures set forth in Article 2
(commencing with Section. 22010) of the California Public Contract Code (the "Act")
public projects,; as defined in .the Act (Section 22002), or as those sections may be
amended from time to time by the state legislature, shall be advertised, bid and
awarded in accordance with Article 3 (commencing with Section 22030) of the Act.
Notwithstanding any contrary provisions of this chapter, and except as otherwise ,
authorized or required by state or federal law, public projects with a value equal to, or
less than, the informal bid limits stipulated in PCC Sections 22032(b) and (c) and
22034(f), as amended from time to time, shall be advertised, bid and awarded in
accordance with Article 3 (commencing with Section 22030) of the Act, and pursuant to
~- the following procedures:. '
(a) The City shall maintain a list of qualified contractors, identified according to
categories of work. Minimum criteria for development and maintenance of the
contractors list shall be determined by the California Uniform Construction Cost
Accounting Commission.
(b)_ All contractors on the list for the category of work being bid and/or all
construction trade journals specified by the California Uniform Construction
Cost. Accounting Commission shall be mailed a notice inviting informal bids
unless the product or service is proprietary.
(c) All mailing of notices to contractors and construction trade journals shall be
completed not less than ten calendar days before bids are due.
(d) 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 submission of .bids.
(e) The City Council delegates the authority to award informal contracts to the
Public Works Director, City Manager, Building Official, or other appropriate
' ~ person.
(f) Before awarding a public project contract, at least three bids must be received
unless any of the following occurs:
(i) The product or service is proprietary;
(ii) All of the qualified contractors on the list have been solicited, but less than
_~ three bids have been received.
(g) Notice inviting informal bids shall be published at least once and publication
shall be completed at least twenty-four hours before. the time scheduled for
opening of the bids.
(h) If all bids received are in excess of the informal bid limits stipulated in PCC
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Section 22034(f), as amended from time to time, the governing body of the
public agency may, by passage of a resolution by a four-fifths vote, award the
contract to the lowest responsible bidder if it determines the cost estimate of the
public agency was reasonable.
(i) Any and all other procedures required by the Cost Accounting Policies and
Procedures Manual of the California' Uniform Public Construction Cost
Accounting Commission; which is incorporated herein by reference.
3.20.091 -Request for proposals (RFP).
Notwithstanding any contrary provision of this chapter, the bidding procedures
specified in Section 3.20.050 may be dispensed with for the purchases of supplies and
services that are technical in nature; provided, that the following conditions are met:
(1) With City Council approval if the estimated amount or value involved is more
than fifty thousand dollars; or
(2) Without City Council approval if the estimated amount or value is less than fifty
thousand dollars.
(3) Upon a determination by the City Council under subsection (1) or the City
Manager or his or her designee under subsection (2), that the use of competitive
bidding is not practical or advantageous because one or more of the following
conditions exist:
' (A) Price is not a primary consideration,
' (e) Quality, availability or capability is overriding in relation to price in
procurement of research, development, technical supplies or services, or
(c) Delivery and installation, ~ post-sale service or maintenance, reliability,
warranties or availability or replacements are overriding in relation to prices.
(4) RFP. An RFP shall be specific and will include, but not be limited to, type of
' services or supplies to be provided, methodology to be used and/or
specifications requested, time frame for completion of the project, form and
' ~ amount of performance bond, if required, and the final form which the project
will take. The RFP shall also specifically identify the time and place where the
proposal shall be delivered.
(5) Receipt of Proposals. If the estimated amount or value involved is more than fifty
thousand dollars, proposals shall be submitted to the City Clerk's office for
" acceptance by the City and then forwarded to the responsible department.
(6) Discussion with Responsible Offerors and Revisions to .Proposals. Discussions
may be conducted with responsible offerors, who submit proposals that
reasonably meet the selection criteria, for the purpose of clarification to assure
full understanding of, and conformance to, the RFP. Offerors shall be accorded
equal treatment with respect to any opportunity for discussions. and revisions
of proposals and such revisions may be permitted after submissions and prior
to award for the purpose of obtaining best and final offers.
(7)~Award of Contract. Contracts over fifty thousand dollars shall be awarded by
the city council and made to the responsible offeror whose proposal is
determined. to be the most advantageous to the city, taking into consideration
the evaluation factors set forth in the RFP.
(8) Rejection of Proposal. Without limitation to the applicability of any other
provisions of this chapter, the city council may reject any and all proposals if
such rejection is deemed in the best interests of the city.,
3.20.100 -Authority to Enter and Execute Contracts.
(1) - Except as otherwise authorized by this chapter or other applicable provision of
law, contracts involving the expenditure or receipt of $50,000 or more shall be
approved by the City Council, and shall be signed on behalf of the City by the
Purchasing Officer or Mayor;
(2) Except as otherwise authorized by this chapter or other applicable provision of
law, contracts involving the expenditure or receipt of $5,000.00 to $49,999.99
shall be approved and signed on behalf of the City by the Purchasing Officer;
and
(3) Except as otherwise authorized by this chapter or other applicable provision of
law, contracts involving the expenditure or receipt of less than $5,000.00 may
be approved and signed by the department head charged with overseeing the
contract or the Purchasing Officer.
SECTION 2: This Ordinance shall become effective thirty (30) days following its
passage and adoption, and shall be published, one time within fifteen (15) days upon
passage and adoption in the Campbell Express, a newspaper of general circulation in
the City of Campbell, County of Santa Clara.
PASSED AND ADOPTED this 16th day of January, 2017 by the following roll call vote:
AYES: Councilmembers: Gibbons, Landry, Cristina, Waterman, Resnikoff
NOES: Councilmembers: None
ABSENT: Councilmembers: None
APPROVED:
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Paul Resnikoff, Mayor
ATT ST:
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Wendy d, City Clerk
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