HomeMy WebLinkAboutOrdinances_2790_CCv0001.pdf ORDINANCE NO. 2790
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER
2.16 OF THE REDLANDS MUNICIPAL CODE RELATING TO CITY
PURCHASING REGULATIONS AND THE SALE OF SURPLUS
PERSONAL PROPERTY
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS
FOLLOWS:
Section 1. Chapter 2.16 of the Redlands Municipal Code, entitled"City Purchasing and
Sale of Surplus Personal Property Policies," is hereby amended to read as follows:
"Chapter 2.16
CITY PURCHASING AND SALE OF SURPLUS PERSONAL PROPERTY POLICIES
2.16.010: DEFINITIONS:
2.16.020: PURCHASING SYSTEM:
2.16.030: PURCHASING AGENT:
2.16.040: POWERS AND DUTIES:
2.16.050: PURCHASING STANDARDS AND ETHICS:
2.16.060: CONFLICT OF INTEREST:
2.16.070: GRATUITIES:
2.16.080: PURCHASE REQUISITION:
2.16.090: PURCHASE ORDER:
2.16.100: ENCUMBRANCE OF FUNDS:
2.16.110: COMPETITIVE PROCUREMENT:
2.16.120: FORMAL PROCUREMENT:
2.16.130: EMERGENCY PROCUREMENT:
2.16.140: PUBLIC PROJECTS:
2.16.150: NONPUBLIC PROJECTS; BIDDING REQUIREMENTS FOR SUPPLIES,
MATERIALS, EQUIPMENT AND CONSTRUCTION:
2.16.160: LOWEST RESPONSIBLE BIDDER:
2.16.170: PROFESSIONAL SERVICES:
2.16.180: NONPROFESSIONAL SERVICES:
2.16.190: CHANGE ORDERS:
2.16.200: COOPERATIVE PURCHASING:
2.16.210: BUSINESS PREFERENCES:
2.16.220: AUTHORIZATION TO EXECUTE CONTRACTS:
2.16.230: STANDARDIZATION OF EQUIPMENT/SUPPLIES:
2.16.240: INSURANCE REQUIREMENTS:
2.16.250: FEDERAL REQUIREMENTS:
2.16.260: RESALE ITEMS:
2.16.270: COMMERCIAL ENTERTAINMENT/EXCURSIONS AND COMPETITION:
2.16.280: DESIGNATION OF SURPLUS PERSONAL PROPERTY:
2.16.290: SALE IN OPEN MARKET OF SURPLUS PERSONAL PROPERTY:
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2.16.300: SALE BY SEALED BID OR AUCTION OF SURPLUS PERSONAL PROPERTY:
2.16.310: TRADE IN SURPLUS PERSONAL PROPERTY:
2.16.320: SALE OF UNSERVICEABLE JUNK OR SCRAP PERSONAL PROPERTY:
2.16.330: SALE OF SUR-PLUS PERSONAL PROPERTY TO PUBLIC AGENCIES AND
NON-PROFIT ORGANIZATIONS:
2.16.340: DISPOSAL OF UNCLAIMED PROPERTY:
2.16.350: DISPOSAL OF BICYCLES:
2.16.010: DEFINITIONS:
As used in this chapter,the following words and phrases shall have the meanings indicated:
ANNUAL PURCHASE ORDER: A city issued document to a vendor allowing for the purchase
of goods or services by authorized personnel for a specified time not to exceed twelve(12)
months. An annual purchase order shall be issued, using competitive procurement whenever
practicable, for a specific amount of consideration that is drawn on throughout the specified time
frame for payment of invoices related to such purchase order.
BID SECURITY: A guarantee, in the form of a bond or cash deposit, that the successful bidder
will execute a contract as bid, or will forfeit the amount of the bond or deposit.
BIDDER'S LIST: A list maintained by the purchasing office setting out names and addresses of
suppliers of various goods and services from which bids, proposals and quotations may be
solicited.
CHANGE ORDER: A city issued document used to modify a purchase order to add, delete or
revise the quantity,price or scope of goods, services or construction being provided.
CITY MANAGER: The city manager for the city, or his or her designee.
COMPETITIVE PROCUREMENT: A process whereby formal bids,by formal procurement, or
informal bids,by open market procurement, are solicited from bidders in accordance with
applicable law under the direction of the purchasing agent.
CONFLICT OF INTEREST: A situation where the personal interests of a contractor,public
official or employee are, or appear to be, in conflict with the best interests of the city, as
determined in accordance with the laws of the state.
CONSTRUCTION: The process of building, altering, repairing, improving or demolishing any
public structure or building, or other public improvement of any kind to any public real property.
It does not include routine operation, maintenance or repair of existing structures,buildings or
real property by the city's own forces. "Construction" shall also include "public project" as
defined in section 20161 of the California Public Contract Code.
CONTRACT: Any type of legally recognized agreement to provide goods, services or
construction including purchase orders.
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COOPERATIVE PURCHASING: A purchasing method whereby the procurement requirements
of two (2) or more governmental entities are combined to obtain the benefit of volume
procurement or reduction of administrative expenses.
DISBURSEMENT VOUCHER: A payment request form used in lieu of a purchase order for
certain limited types of payments such as:
0 Refunds
• Employee/Retiree reimbursements and stipends
• Insurance premiums
• Advertising(e.g. public notices,bid notices,job announcements)
• Petty cash/bank account reimbursement
• Subscriptions, memberships, dues
• Registration for training and meetings; some related travel
• Federal and state mandated fees
• PERS payments
• Legal fees
• Other fees including permit, recording, fingerprinting and fiscal agent/bank
• Debt service payments
• Credit card payments
• Postage/mailing/meter/refills
• Utility charges
• Water stock payments
• Other limited payments as approved by the Finance Director or City Manager
EMERGENCY PURCHASE: A purchase made without following the normal purchasing
procedures or using competitive procurement, in order to obtain goods, services or construction
to meet an urgent and previously unexpected requirement where public health and safety or the
conservation of public resources is at risk.
EQUIPMENT: Personal property of a durable nature which retains its identity throughout its
useful life.
FORMAL BID:A written bid which shall be: a) advertised in a newspaper of general circulation
in the city; b)submitted in a scaled envelope in conformance with a city prescribed format and
procedure; c)publicly opened, read and recorded at the office of the City Clerk at a city specified
date and time; and d) accepted by award made by the city council.
FORMAL PROCUREMENT: Procurement by written notice inviting bids and formal bid.
GOODS: Supplies,materials, equipment and other commodities included within the definition of
"goods" in section 2105 of the California Uniform Commercial Code.
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GRATUITY: A gift or favor, entertainment, loan or anything of monetary value from anyone
who has or is seeking to obtain city business or conducts activities that may be affected by the
performance or nonperformance of the employee's official duties.
INFORMAL BID OR QUOTATION: An unsealed competitive offer conveyed by letter,
facsimile or other written means and under conditions different from those required for formal
bidding; informal bids should only be solicited by city personnel authorized to do so, and for
each instance of informal bid the authorized personnel shall obtain informal bids from at least
three(3)different prospective bidders, if practicable. Informal bids for public projects shall be
publicly opened,read and recorded at the office of the City Clerk.
NEGOTIATION: Contracting through the use of either competitive or other than competitive
proposals and discussions. Any contract/purchase order awarded without using sealed bidding
procedures is a negotiated contract/purchase order. Further, negotiation is a procedure that
includes the receipt of proposals from offerors, which permits bargaining and usually affords an
opportunity to revise their offers before award of a contract/purchase order. Bargaining in the
sense of discussion,persuasion, alteration of initial assumptions of positions, and give and take
may apply to price,schedule, technical requirements, type of contract/purchase order or other
terms of a proposed contract/purchase order.
OPEN MARKET: The private sector business marketplace in which private persons, exercising
prudent business practices and judgment,procure goods, services or construction utilizing an
informal bid submitted by bidders from the open market.
PROCURE OR PROCUREMENT: Buying, purchasing, renting, leasing or otherwise acquiring
or obtaining goods, services or construction.
PROFESSIONAL SERVICES: Services such as those of attorneys, auditors,physicians,
architects, engineers and other individuals or organizations exercising professional discretion and
independent judgment based on specialized knowledge, expertise or training.
PURCHASE ORDER:A.city issued document which authorizes the delivery of goods,the
rendering of services,or the performance of construction at a stated price and which encumbers
city funds for the payment thereof.
PURCHASE REQUISITION: A written request in the form as the city may from time to time
determine, submitted by a city department to the purchasing office for procurement of goods,
services or construction.
PURCHASING OFFICE: The city department designated by the city manager for the
administration of this chapter.
RECYCLED GOODS: Finished manufactured products containing recycled materials in the
production thereof
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SERVICE(CONTRACTUAL): A contract that directly engages the time and effort of a
contractor whose primary purpose is to perform an identifiable task rather than to furnish an end
item of supply. A service contract may be either nonpersonal or a personal contract. It can also
cover services performed by either professional or nonprofessional personnel,whether on an
individual or organizational basis. Examples of contractual service or services contracts are: a)
maintenance,overhaul,repair, rehabilitation, salvage, modernization or modification of supplies,
systems, equipment;b) facilities maintenance; c)janitorial services; d) advisory and assistance
services; e)communication services; and t)transportation and related services.
SINGLE SOURCE PURCHASE: A purchase where it can be substantiated that a commodity or
service can be obtained from one vendor or contractor which often is the "single" representative
of the manufacturer or principal company. "Single source" purchases frequently involve a vendor
or contractor whose product or service is discernibly distinguishable from all others in the market
and singularly meets all significant elements of the city's requirement. In this context, "single"
means "the one among others".
SMALL PURCHASE: A one-time,non-competitive purchase of goods or non-professional
services, which totals five thousand dollars ($5,000)or less. Each City department may issue
small purchases via"a short form"purchase order, which cumulatively do not exceed thirty
thousand dollars($30,000)per vendor,per fiscal year.
SOLE SOURCE PURCHASE: A purchase where it can be substantiated that a requirement
involves commodity or service provided by only one vendor or contractor which has exclusive
rights (e.g.,rights to data,patent or copyright, proprietary interests or secret processes)to the
manufacturing of the product or service. "Sole source" requirements must withstand the
questions of: a)is the commodity or service the only of its kind which can fully satisfy the
requirement, and b)the commodity is available from one, and only one, source. In this context,
"sole"means "the only one".
STANDARDIZATION: The process of examining characteristics and needs per items of similar
end usage and developing a single specification that will satisfy the need for most or all
purchases for that purpose.
SURPLUS PROPERTY: Inventory not needed by the city at the present time or in the
foreseeable future. This includes obsolete supplies, equipment and scrap materials that have little
or no useful life.
2.16.020- PURCHASING SYSTEM:
The purpose of this chapter is to establish procedures for the purchase of goods, services and
construction at the lowest possible cost commensurate with the quality needed; to exercise
financial control over purchases; to define authority for the purchasing function; and to assure
the quality of such purchases. Therefore, a centralized purchasing system is hereby adopted and
vested with the authority for the purchase of all goods, services and construction. In addition, this
chapter and the purchasing system it establishes is designed to provide appropriate procedures to
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implement the city's participation in the uniform public construction cost accounting act pursuant
to Public Contract Code section 22000 et seq.
2.16.030: PURCHASING AGENT:
The position of purchasing agent of the city is hereby established and shall be incorporated with
the duties of the city department director responsible for oversight of the purchasing office.
When the term "purchasing agent" is used in this chapter, such term shall include his or her
designees.
2.16.040: POWERS AND DUTIES:
The purchasing agent shall have charge of purchasing goods, services and construction required
by any city department, and shall have the power and the duty to:
A. Establish a purchasing program providing for competitive bidding or open market
purchasing so as to obtain for the city the greatest possible advantage.
B. Establish and enforce specifications with request to goods, services and construction
required by the city.
C. Transfer surplus property between offices, departments or agencies,or make
arrangements to sell surplus property or obsolete/unused goods.
D. Prepare operating policies and procedures, consistent with and to implement this
Chapter, to be followed by all departments regarding the purchase, inspection, storage,
distribution and disposal of goods, services and construction.
E. Negotiate and recommend the execution of contracts for the purchase of goods,
services and construction.
F. Endeavor to obtain full and open competition whenever possible on all purchases.
G. Prepare and recommend rules and regulations governing the purchase of goods,
services and construction for the city.
H. Keep informed of current developments in the field of purchasing,prices,market
conditions and new products. Recommend purchase of alternative products of a higher quality or
lower cost.
1. Prescribe and maintain such forms as reasonably necessary to carry out the operation of
this chapter.
J. Maintain appropriate records needed for the efficient operation of the purchasing
function.
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K. Encourage the standardization of similar goods, services and construction used by city
departments.
L. Develop and maintain any bidder's list, contractor's list or vendor's catalog file
necessary to the operation of this chapter.
M. With written approval of the city manager, or by action of the city council, dependent
on established dollar limits set for each, authorize in writing any city department to purchase or
contract for specified goods, services and construction, independently of the purchasing agent.
However, the purchasing agent shall require that such purchases be made in conformity with the
procedures established by this chapter and that all documents supporting the formal or informal
bidding procedures be attached to the city's copy of the purchase requisition.
N. Each year,on a quarterly basis, the purchasing agent, through the city manager, shall
prepare and provide to the city council a summary report of contracts awarded for fifty thousand
dollars ($50,000)or less during such quarter and not previously approved by the city council.
U. Perform such other duties as may be imposed by the city council or city manager.
2.16.050: PURCHASING STANDARDS AND ETHICS:
The purchasing office and all other employees involved in the procurement of goods, services
and construction will be conducted with absolute integrity. The very highest ethical standards
will be maintained in all material activities. The purchasing office and all other employees will
be constantly aware of their responsibilities in spending public funds and subscribe to the
principles and standards as advocated by the National Association of Purchasing Management
and the California Association of Public Purchasing Officers. Some of these principles and
standards are as follows:
A. Regard public service as a sacred trust, giving primary consideration to the interests of
the city.
B. Purchase the best value obtainable, securing the maximum benefit for each tax dollar
expended.
C. Allow for full and open competition and not participate in uniform bidding.
D. Know and respect their obligations to the public,private sector and using agencies.
E. Accord vendor representatives courteous treatment remembering that they are
important sources of information and assistance in buying decisions.
F. Strive constantly for greater knowledge of purchasing methods and of the goods and
services to be procured.
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G. Conduct themselves with fairness and dignity, and demand honesty in buying and
selling.
H. Cooperate with all organizations and individuals engaged in enhancing the
development and standing of the purchasing profession.
1. Remember that their conduct reflects on the city and the entire purchasing profession.
2.16.060: CONFLICT OF INTEREST:
No officer or employee of the city having any supervisory authority to purchase any specific
goods, services or construction for the city shall have any financial interest in connection with
the purchase of such goods, services or construction. No officer or employee shall participate in
the procurement or selection process when such officer or employee has a relationship with a
person or business entity seeking a contract under this chapter which would subject such officer
or employee to the prohibition of California Government Code sections 87100 et seq., or
Government Code section 1090.
2.16.070: GRATUITIES:
The purchasing agent and all other officers and employees of the city are prohibited from
accepting directly or indirectly from any person to whom any purchase order or contract is, or
might be, awarded, any rebate,kickback, gift,money or other unlawful consideration. The offer
of such gratuity to an official or employee by any supplier or contractor shall be cause for
declaring such individual to be an irresponsible bidder and for preventing such supplier or
contractor from bidding as provided in sections 2.16.140 and 2.16.150 of this chapter.
2.16.080: PURCHASE REQUISITION:
City departments shall submit requests for goods, services and construction to the purchasing
office on standard requisition forms prepared, maintained and updated by the purchasing agent.
A requisition shall set forth the characteristics of the goods, services or construction being
requested. At a minimum, the requisition shall state the brand name or be accompanied by a
catalog cut. In the case of services, the requisition shall be in sufficient detail to permit
competition if reasonably possible. No purchase requisition shall be broken into smaller units to
evade any requirement of this chapter, except that unrelated items requisitioned by departments
may be separated to provide different lists to vendors dealing in different types of goods.
2.16.090: PURCHASE ORDER:
The purchase of goods, services and construction shall be made only by the purchasing agent
through the execution of a purchase order or by an approved contract, except in cases of small
purchases or an emergency as defined herein. No officer or employee of the city shall request a
supplier to deliver goods, services or construction to the city unless a city purchase order
number has been issued by the purchasing agent. Purchases and contracts shall not be split,
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staged or separated into smaller units of work for the purpose of evading the competitive bidding
procedures or any other requirement of this chapter.
2.16.100: ENCUMBRANCE OF FUNDS:
The purchasing agent shall not issue any purchase order for goods, services or construction
unless there exists an unencumbered appropriation in the account against which the purchase is
to be charged.
2.16.110: COWETITIVE PROCUREMENT:
Procurement of goods, services and construction by the city shall whenever practicable be based
on competitive procurement,whether by formal procurement, if required, or procurement in the
open market,if permitted, except that competitive procurement shall not be required in the
following circumstances:
A. When emergency procurement is required as defined in section 2.16.130 of this
chapter;
B. When the procurement involved is five thousand dollars($5,000.00)or less;
C. When the city department director certifies, in writing,to the purchasing agent that
procurement can only be obtained from a sole source, or timely from a single source, and the
purchasing agent is satisfied that the best price, terms and conditions have been negotiated;
single or sole source procurement for goods, services or construction greater than five thousand
dollars ($5,000.00)and less than or equal to thirty thousand dollars($30,000.00)requires the
approval of the city manager, and approval of the city council for single or sole source
procurement in excess of thirty thousand dollars ($30,000.00);
D. When competitively awarded, cooperative purchasing is available and undertaken, as
pursuant to section 2.16.200 of this chapter.
E. When the goods, services or construction can be obtained from a contractor who offers
the same or better price, terms and conditions as the same contractor previously offered as the
lowest responsible bidder under competitive procurement or negotiations conducted by the city
or another public agency, provided that in the opinion of the purchasing agent,it is in the best
interests of the city to do so;
F. When the goods, services or construction can be obtained through federal, state and/or
other public entity pricing contracts or price agreements which were competitively awarded.
Purchasing without providing for fall and open competition shall not be justified on the
basis of a lack of advanced planning on the part of the requesting city department or based upon
concerns related to the amount of funds available(e.g., funds will expire as a result of grant or
fiscal year).
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2.16.120: FORMAL PROCUREMENT:
Formal procurement shall be required for all estimated procurement expenditures that meet the
formal procurement limits set forth in sections 2.16.140 and 2.16.150 of this chapter. Except as
otherwise provided herein, purchases and contracts for goods, services and construction shall be
made pursuant to the procedures described herein:
A. Bid Notice: Notices inviting bids shall include a general description of the articles to
be purchased and shall state where and when bid packages may be secured, and the time and
place of the bid opening.
B. Publication And Mailing: Notice inviting bids shall be published at least ten(10)
calendar days before the opening of bids in a newspaper of general circulation in the city. The
purchasing agent may establish and maintain a list of prospective bidders. It shall not be the
responsibility of the purchasing agent to ensure that the list contains current information in
respect to the address, service or product of the prospective bidder. The purchasing agent is
authorized to mail invitations for bids directly to the appropriate prospective bidders appearing
on the list and to other prospective bidders.
C. Bidder's Security: Each bid or proposal may be required by the purchasing agent to be
accompanied by a bidder's bond, certified or cashier's check, or cash, in an amount not more than
ten percent(10%)of the total bid. When deemed necessary by the purchasing agent,bidder's
security may be prescribed in the public notice inviting bids. When bid security is required,
bidders shall be entitled to return of bid security; however, if a successful bidder refused to or
failed to execute the contract within ten(10)business days after the notice of award has been
mailed,unless, and to the extent the city is not responsible for the delay, its bid security shall be
deemed forfeited- The city council may,upon refusal or failure of the successful bidder to
execute the contract, award the contract to the next lowest and responsible bidder.
D. Bid Opening Procedures: Sealed bids shall be submitted to the City Clerk and shall be
identified as a bid on the envelope. Bids shall be opened in public at the time and place stated in
the public notice. A record of the bids received shall be available for public inspection after the
bids have been opened, indicating the amount bid by the various bidders and the basis for
awarding the contract or purchase order if other than the lowest bidder is awarded the
contract/purchase order. Such list shall be available for thirty(30) days after the award has been
made.
E. Rejection Of Bids: The purchasing agent, city manager or the city council,in
accordance with the limits established by this chapter, shall each have the power to reject bids
presented, for any reason, and readvertise for bids.
F. Tie Bids: If two (2) or more bids received are for the same total amount, unit price or
quality, and service being equal, and if the public interest will not permit the delay of
readvertising for bids,the purchasing agent, city manager or the city council in accordance with
the limits established by this chapter,may accept the bid it chooses or accept the lowest bid made
by negotiation with the tic bidders at time of the bid opening.
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G. Performance And Payment Bonds: The purchasing agent may require performance
and payment bonds before a contract is awarded for moods or services in such amounts as the
purchasing agent shall find reasonably necessary to protect the best interest of the city and to
comply with law. If the purchasing agent requires a performance or payment bond, the form
and amount of the bonds shall be described in the notice inviting bids. Notwithstanding the
foregoing, a payment bond shall be required of a contractor that is awarded a public works
contract involving an expenditure in excess of Twenty Five Thousand Dollars($25,000).
2.16.130: EMERGENCY PROCUREMENT:
While the need for emergency procurement is recognized, the practice shall be curtailed as much
as possible by anticipating needs so that normal competitive procurement may be used.
A. Any one or more of the following circumstances shall constitute an emergency:
1. A great public calamity;
2. An immediate need to prepare for national or local defense;
3. A breakdown in machinery or essential service which requires the
immediate procurement of goods, services or construction, to protect the public health,
welfare, safety or property;
4. A city department's operation, directly affecting the public health, welfare
or safety or the protection of public property, is so severely impacted by any cause that
personal injury or property destruction appears to be imminent and probable unless
goods, services or construction designed or intended to mitigate the risks thereof are
procured immediately;
5. A department is involved in a city project which is of such a nature that
the need for particular goods, services or construction can only be ascertained as the
project progresses and, when ascertained,must be satisfied immediately for the
preservation of public health, welfare, safety or property.
B. Emergency procurement may be initiated by a city department director or his or her
duly authorized representative as follows:
1. During non-nal city business hours, the department director,or his or her
representative, shall provide reasons and justification for the emergency procurement. If
the nature of the emergency is such that goods, services or construction must be procured
immediately and the purchasing agent is satisfied with the explanation of reasons and
justification given therefor, the purchasing agent shall authorize the procurement and
cause an emergency purchase order to be issued as soon as possible,and in no event later
than the following business day. A purchase requisition confirming the procurement must
be prepared by the department director or his or her authorized representative and
submitted to the purchasing agent no later than the following business day.
2. After normal city business hours, the city department representative shall
exercise his or her best judgment in ascertaining whether the actual circumstances
necessitate emergency procurement, and if deemed necessary shall order it. As soon as
possible and in no event later than the following business day, the city department
representative,with approval of the department director, shall prepare a purchase
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requisition confirming the emergency procurement and deliver it to the purchasing agent,
who shall then cause an emergency purchase order to be prepared.
C. Following the emergency procurement, a written report shall be made,within ten(10)
days of the purchase,by the purchasing agent to the city manager for procurement between thirty
thousand dollars($30,000.00) and fifty thousand dollars ($50,000.00), and through the city
manager to the city council for procurement exceeding fifty thousand dollars($50,000.00).
2.16.140: PUBLIC PROJECTS:
Procurement for public projects shall be made in accordance with the uniform public
construction cost accounting act.
A. A "public project" is defined in Public Contract Code section 22002 as any of the
following:
1. Construction, reconstruction, erection, alteration,renovation,
improvement,demolition and repair work involving any publicly owned,leased, or
operated facility;
2. Painting or repainting of any publicly owned, leased or operated facility;
3. In the case of a publicly owned utility system, "public project" shall
include only the construction, erection, improvement or repair of dams,reservoirs,power
plants, and electrical transmission lines of two hundred thirty thousand(230,000) volts
and higher.
B. "Public projects" do not include maintenance work. For purposes of this section,
"maintenance work" includes all of the following:
1. Routine,recurring and usual work for the preservation or protection of any
publicly owned or publicly operated facility for its intended purposes;
2. Minor repairing;
3. Resurfacing of streets and highways at less than one inch(I");
4. Landscape maintenance, including mowing, watering, trimming,pruning,
planting,placement of plants and servicing of irrigation and sprinkler systems;
5. Work performed to keep, operate, and maintain publicly owned water,
power or waste disposal systems, including,but not limited to, dams,reservoirs,power
plants,and electrical transmission lines of two hundred thirty thousand(230,000) volts
and higher.
C. The contracting procedures and the dollar limits set forth in Public Contract Code
section 22032 are as follows:
I. Public projects of forty five thousand dollars ($45,000.00)or less may be
performed by the employees of the city by force account,by negotiated contract or by
purchase order.
2. Public projects having a contract value greater than forty five thousand
dollars($45,000.00) and up to one hundred seventy five thousand dollars($175,000.00)
may be let to contract by informal bidding procedures as set forth in the uniform public
construction cost accounting act and as follows:
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a. Contractors List: A list of qualified contractors shall be developed
and maintained by those city departments undertaking public projects in
accordance with the provisions of section 22034 of the Public Contract Code and
any applicable criteria promulgated, from time to time,by the California uniform
construction cost accounting commission.
b. Notice Inviting Informal Bids: When a public project is to be
undertaken which is subject to the provisions of this chapter, a notice inviting
informal bids shall be mailed to all contractors for the category of work to be bid,
as shown on the city's list of qualified contractors and to all construction trade
journals as specified by the California uniform construction cost accounting
commission in accordance with section 22036 of the Public Contract Code.
Additional contractors and/or construction trade journals may be notified at the
discretion of the city department responsible for undertaking the public project
and soliciting bids,provided, however:
(1) If there is not a list of qualified contractors maintained by the
city for the particular category of work to be performed, the notice inviting
bids for the public project shall be sent only to the construction trade
journals specified by the commission.
(2) If the product or service comprising the public project is
proprietary in nature such that it may be obtained only from a certain
contractor or contractors, the notice inviting informal bids for the public
project may be sent exclusively to such contractor or contractors.
C. Informal bids shall be publicly opened and/or received by the
office of the City Clerk at the time and date specified by the purchasing agent or
other city employee when soliciting requests for informal bids.
3. If all bids received through the informal bidding process are in excess of
one hundred seventy five thousand dollars ($175,000.00), the city council may,by
adoption of a resolution by a four-fifths (4/5) vote, award the contract, at one hundred
eighty seven thousand five hundred dollars ($187,500.00) or less, to the lowest
responsible bidder, if the city council determines the cost estimate for the public project
originally made by the city was reasonable.
4. Public projects having a contract value of more than one hundred seventy
five thousand dollars ($175,000.00) shall, except as otherwise provided in the uniform
public construction cost accounting act,be let to contract by formal bidding procedures.
5. Award of purchase orders or contracts for public projects shall be as
follows:
a. Forty-five thousand dollars ($45,000.00) or less: Award shall be made
by the purchasing agent in the best interests of the city;
b. Greater than forty-five thousand dollars($45,000.00)up to fifty
thousand dollars($50,000.00): Award shall be made by the city manager to the
lowest responsible bidder, pursuant to public projects informal bidding
procedures;
c. Greater than fifty thousand dollars ($50,000.00) up to one hundred
seventy five thousand dollars ($175,000.00): Award shall be made by the city
L1ec1erk\Ordinanc&No3 2700-2799 in Word 21790 Amending 2 16(2).doc 13
council to the lowest responsible bidder, pursuant to public projects informal
bidding procedures;
d. Greater than one hundred seventy five thousand dollars($175,000.00):
Award shall be made by the city council to the lowest responsible bidder pursuant
to public projects formal bidding procedures.
2.16.150: NONPUBLIC PROJECTS; BIDDING REQUIREMENTS FOR SUPPLIES,
MATERIALS, EQUIPMENT AND CONSTRUCTION:
A. Five Thousand Dollars Or Less: Procurement of goods, non-professional services, or
construction of five thousand dollars ($5,000.00) or less may be made by the purchasing agent
in the open market without the use of competitive bidding. The city manager may direct the
purchasing agent to employ competitive bidding for certain types of goods, non-professional
services or construction for amounts of five thousand dollars ($5,000.00) or less.
B. Five Thousand One Dollars To Thirty Thousand Dollars: Procurement of goods, non-
professional services or construction of more than five thousand dollars ($5,000.00)but less than
or equal to thirty thousand dollars ($30,000.00)may be made by the purchasing agent in the open
market using an informal bidding procedure whereby informal bids or quotations are obtained.
Although less formal,procedurally, than formal procurement,procurement in the open market
shall be conducted by the purchasing agent in a manner and under circumstances intended to
elicit competitive informal bids. The purchasing agent shall obtain informal bids from at least
three(3)different bidders and shall maintain and keep records of all open market procurements,
including informal bids received, in accordance with the city's records retention schedule. Award
shall be made by the purchasing agent to the lowest responsible bidder.
C. Thirty Thousand One Dollars To Fifty Thousand Dollars: Procurement of goods, non-
professional services or construction of more than thirty thousand dollars($30,000.00)but less
than or equal to fifty thousand dollars ($50,000.00)may be made by the purchasing agent in the
open market using an informal bidding procedure whereby informal bids or quotations are
obtained. Although less formal, procedurally, than formal procurement, procurement in the open
market shall be conducted by the purchasing agent in a manner and under circumstances
intended to elicit competitive informal bids. The purchasing agent shall obtain informal bids
from at least three(3)different bidders and shall maintain and keep records of all open market
procurements, including informal bids received, in accordance with the city's records retention
schedule. Award shall be made by the city manager to the lowest responsible bidder.
D. Fifty Thousand One Dollars And Above: Procurement of goods, non-professional
services, or construction of more than fifty thousand dollars ($50,000.00) shall be made by using
formal procurement as required by section 2.16.120 of this chapter. Award shall be made by the
city council to the lowest responsible bidder.
2.16.160: LOWEST RESPONSIBLE BIDDER:
In addition to price in determining the "lowest responsible bidder", consideration will be given to
quality and performance of the commodity to be purchased or service provided by the bidder.
L\cc1erk,,0rdinanc&,Nos 2700-2799 in Word\2790 Amending 2 16(2).doe 14
Criteria for determining the lowest responsible bidder shall include,but not be limited to, the
following:
A. Ability, capacity and skill of the bidder to provide the goods, services or construction
as required and within the time specified.
B. Character, integrity, reputation,judgment, experience, and efficiency of the bidder.
C. Quality or performance of previous purchases from said bidder.
D. Ability of the bidder to provide future maintenance, repair parts and services for the
use of the commodity purchased.
E. Performance by bidder under contracts with other public or private entities.
F. Listing of contractor as "debarred" or determination of other public agency that bidder
has submitted a fraudulent bid within the prior five(5) years.
G. Possession of required license(s),permit(s)or other governmental approvals, if any, to
supply or provide the subject goods, services or construction.
2.16.170: PROFESSIONAL SERVICES:
A. Landscaping,Engineering, Architectural, Surveying, And Construction Management:
The retention of professional services for architectural, landscape architectural, engineering, land
surveying or construction project management shall be on the basis of demonstrated competence
and on the professional qualifications necessary for the satisfactory performance of the services
required, and at fair and reasonable prices to the city, in accordance with section 4526 of the
Government Code. A request for proposal and/or statement of qualifications shall be prepared by
the initiating city department, and proposal requests solicited, where practical, from at least three
(3)professional services providers.
B. Other Professional Services: Except as may otherwise be provided in this code or as
may be required by state or federal law, the retention of other professional services of individuals
or organizations exercising professional discretion and judgment based upon advanced or
specialized knowledge, expertise or training, gained by formal study or experience, shall be
based upon both the demonstrated competence and on the professional qualifications necessary
for the satisfactory performance of the services required, and the cost for such services. A
request for sealed proposals and/or statement of qualifications, including a request for a separate,
sealed proposal for the cost for the performance of the services, shall be prepared by the
initiating city department. Proposals shall be solicited, when practical, from at least three(3)
professional service providers. The negotiations associated with the award of a contract for
services identified in this subsection shall occur as follows: Upon receipt of the proposals, the
initiating city department shall first determine and identify those persons or organizations that
are qualified to perform the services and shall rank such persons and organizations based on their
demonstrated competence and professional qualifications deemed necessary for the satisfactory
1:\cc1er1e,,.0rdinanc&,Nos 2700-2799 in Word\2790 Amending 2 16(2).doe 15
performance of the services required. Second, the cost proposals submitted by all the qualified
persons and organizations shall be opened and reviewed. Third, negotiations shall be undertaken
with the person or organization ranked most qualified in an attempt to secure the services at a
cost equivalent to the lowest cost offered to the city by the qualified persons and organizations. If
the person or organization ranked most qualified is unwilling to provide the services at a cost
equivalent to such lowest cost: 1) such person or organization may nevertheless be awarded a
contract, provided the purchasing agent, city manager or city council, as appropriate,determines
the initiating city department director has substantiated that the cost for the services is reasonable
and appropriate;or 2)negotiations with the most qualified person or organization may be
terminated and the initiating city department may undertake similar negotiations with the other
qualified persons and organizations in order of rank.
C. Single Source Or Sole Source Purchases: Notwithstanding any other provisions of this
section, a professional services contract may be awarded as a "single source purchase" or a "sole
source purchase", as such purchases are defined in this chapter.
D. Dollar Limits Determine Awardee: Professional services contracts shall be awarded by
the purchasing agent, city manager or city council, as appropriate,based upon the dollar limits
specified in subsection 2.16.14005 of this chapter.
2.16.180: NONPROFESSIONAL SERVICES:
Nonprofessional services shall be retained on the basis of competitive procurement in accordance
with section 2.16.150 of this chapter
2.16.190: CHANGE ORDERS:
Changes to previously awarded purchase orders or contracts in excess of ten percent(10%) of
the original value of that purchase order or contract shall require approval by the purchasing
agent, city manager or city council depending on the new value of the purchase order or contract
after the increase and in relation to the approval limits established in sections 2.16.140 and
2.16.150 of this chapter. Changes equal to or less than ten percent(10%) are allowed at the
department direction unless the change causes the new value of the purchase order or contract to
exceed fifty thousand dollars($50,000.00), which if not previously approved by the city council,
must then be so approved . Any change order that increases a purchase order or contract by fifty
percent(50%)or more of the original value requires city manager approval for purchase orders
or contracts totaling less than or equal to fifty thousand dollars($50,000.00)and city council
approval for those totaling fifty thousand dollars($50,000.00)or more. The city manager may
request city council approval for the former, if he or she believes it is in the best interests of the
city to do so.
2.16.200: COOPERATIVE PURCHASING:
Where advantageous for the city, the purchasing agent is authorized to allow for the purchase of
goods, services and construction through legal contracts of other governmental jurisdictions or
V,cclerk\OrdinanceNos 2700-2799 in Wor&2790 Amending 2 16(2).doc 16
public agencies without further contracting, solicitation or formal bidding, provided such
practice otherwise complies with state law and was competitively awarded.
2.16.210: BUSINESS PREFERENCES:
In administration of competitive procurement pursuant to this chapter, the purchasing agent shall
be authorized to give such preferences for goods, services or construction as general law cities
are permitted or required to give by applicable state or federal law, or as provided for in this
chapter.
A. Local Participation: To promote business retention within the city and the economic
health of the city and to encourage local participation in the procurement process,the purchasing
agent, in determining the lowest responsible bidder for contracts for goods, services or
construction having a value of less than thirty thousand dollars ($30,000.00),may take into
consideration the one percent(I%) sales tax which would be returned to the city as a result of the
bid award. For procurement where sales tax would not be generated as a result of the bid award
and where the quality and price are equal to another bidder or bidders, the local vendor may be
given the bid award.
B. Local Business Preference: To further promote business retention within the city and
the economic health of the city and to encourage local business participation in the procurement
process, the purchasing agent, in determining the lowest responsible bidder for contracts for
goods, services or construction having a value of thirty thousand dollars($30,000.00)or more,
and for public project contracts having a value of forty five thousand dollars($45,000.00) or less,
shall grant an eight percent(8%) local business preference to local businesses. For purposes of
this chapter, a"local business" is defined as a business possessing a valid Redlands business
license and having its principal business operation located in the city of Redlands.
C. Business Preferences: To promote the economic health of the county of San
Bernardino and to encourage county business participation in the procurement process, the
purchasing agent, in determining the lowest responsible bidder for contracts for goods, services
or construction,and for public project contracts having a value of forty five thousand dollars
($45,000.00)or less, shall grant a two percent(2%) county business preference to county
businesses. For the purposes of this chapter, a "county business" is defined as a business
possessing a valid Redlands business license and having its principal business operation located
within the county of San Bernardino and outside of the city of Redlands.
D. Application To Bids: When applying the local business preference or county business
preference to a bid,the purchasing agent shall apply the preference to the bid price solely for bid
evaluation purposes such that the total price bid by a local business shall be reduced by eight
percent (8%)of the amount bid by the local business, and the reduced bid shall be deemed the
amount bid by that bidder. The contract price shall in all events be the amount bid by the
successful bidder awarded the contract.
E. Application To Nonprofessional Services Proposals: When applying the local business
preference or county business preference to a proposal, the purchasing agent shall apply the
1_\,cc1er1&Drdmances\Nos 2700-2799 in Word12790 Amending 2 16(2).doc 17
preference in the form of additional points to the proposal's final score such that the score
awarded to a proposal submitted by a local business or county business is increased by eight
percent (8%)of the total possible evaluation points.
F. Change In Preferences: The local business and county business preferences established
by this section shall terminate on December 31, 2015. Commencing on January 1, 2016,to
further promote business retention within the city and the economic health of the city and to
encourage local participation in the procurement process, the purchasing agent, in determining
the lowest responsible bidder for contracts for goods, services or construction having a value of
less than thirty thousand dollars {$30,000.00),may take into consideration the one percent(I%)
sales tax which would be returned to the city as a result of the bid award. For procurement where
sales tax would not be generated as a result of the bid award and where the quality and price are
equal to another bidder or bidders, the local vendor may be given the bid award.
G. Recycled Goods: Whenever practicable, all city departments shall use recycled
content products and recycled materials to meet their needs and the city shall require its
contractors and consultants to use recycled content products in fulfilling contractual obligations
whenever practicable. All other considerations being equal,preference shall be given to the
purchase of products with the highest postconsumer content. The following requirements are to
be followed by the purchasing office and city staff in the procurement of recycled goods:
1. City staff shall identify the recycled content products available and the vendors
from whom such products are available for purchase and provide the information
to the purchasing agent.
2. From the information provided by city staff, the purchasing agent shall establish a
list of recycled products for purchase by all departments when practicable and
shall review purchase requests to encourage substitution of recycled products
when practicable. The list shall be reviewed and updated periodically as
additional products become available.
3. The purchasing agent shall develop standard specifications based on existing
databases available through recognized and accepted sources (e.g., EPA,
CIWMB, etc.)to assist departments in identifying and purchasing recycled
products, including the development of minimum recycled content standards.
Minimum content standards shall be reviewed and updated periodically.
4. The purchasing agent shall maintain a database to track the procurement of
recycled content products and shall compile, in coordination with the city
department responsible for such activities, an annual report quantifying the city's
use of recycled content products for the purpose of determining compliance with
state law requirements.
2.16.220: AUTHORIZATION TO EXECUTE CONTRACTS:
Pursuant to section 40602 of the Government Code,the mayor must execute all contracts on
behalf of the city,unless another city officer or employee is authorized to do so. The city
manager and purchasing agent, in addition to the mayor, in accordance with the procurement
dollar limits established in this chapter, are hereby authorized to execute contracts on behalf of
the city. Execution of all contracts shall be attested to by the city clerk.
L\cclerkNOrdinancesNos 2700-2799 in Wmd\2790 Amending 2 16(2).doe 18
2.16.230: STANDARDIZATION OF EQUIPMENT/SUPPLIES:
The purchasing agent shall encourage standardization of equipment and supplies to promote
efficiency and reduce costs to the city. Equipment and supplies standardization shall not,
however, negate the requirement to solicit competitive bids for standardized equipment and
supplies, when reasonably possible.
2.16.240: INSURANCE REQUIREMENTS:
Any individual, firm,partnership, corporation or combination thereof who is awarded a purchase
order or contract with the city must comply with all insurance requirements as established by
state law or within the limits established from time to time by the city and its insurance advisors.
2.16.250: FEDERAL REQUIREMENTS:
If any section, subsection, subdivision, sentence, clause or phrase of this chapter conflicts with
any federal requirements mandated for any grant funded procurement, the applicable federal
requirements shall apply to that procurement.
2.16.260: RESALE ITEMS:
Items purchased for resale, even though their form may be changed before sold to a customer,
may be purchased noncompetitively; however, a reasonableness of price statement must be
included in the file. Items consigned or purchased for resale may also be given away as prizes. A
summary of resale items acquired and sold shall be submitted to the purchasing agent annually
for review.
2.16.270: COMMERCIAL ENTERTAINMENT/EXCURSIONS AND COMPETITION:
Commercial entertainment/excursions provided by the city's recreation division to the general
public may be purchased noncompetitively by group, act name or tour agency. The negotiated
prices must be at the lowest obtainable prices based on the particulars of performance/services
desired. Transportation services shall be acquired by way of the competitive bidding process,
unless it is an intrinsic part of the excursion as determined by the purchasing agent.
2.16.280: DESIGNATION OF SURPLUS PERSONAL PROPERTY:
The city council, and any city department director,may declare any personal property held by
such department as surplus. Such declaration shall be in writing, and such property,together with
such written declaration, shall be delivered to the purchasing agent. The purchasing agent shall
store such property and maintain a written inventory for review by each city department director.
If any department director has a use for such property, he or she may so request from the
purchasing agent, who shall have the authority to assign the property to any department
1:1ec1erk1,0rdinanc&Nos 2700-2799 in Word12790 Amending 2 16(2).doe 19
2.16.290: SALE IN OPEN MARKET OF SURPLUS PERSONAL PROPERTY:
Surplus city property in usable condition, if each individual item's estimated value is less than
five thousand dollars($5,000.00), may be disposed of in the following manner: The purchasing
agent shall make an investigation of the market conditions of personal property of the type
declared surplus and determine prices for all surplus property, which, in his/her opinion, will be
competitive with prices in the open market. The purchasing agent may then sell such personal
property at such prices by advertising in the most appropriate means, which, in his or her
opinion, will bring the greatest number of potential purchasers to include sales on a consignment
basis. He or she shall cause to be published at least once, at least three(3) days before such sale,
in a newspaper of general circulation, published and distributed in the city, a notice of the sale
setting forth the day it shall begin; the number of days it is to be continued, if it is to last more
than one day, the place where the articles may be examined; the place where the purchase price
is to be paid and the property delivered; and a general description of the type of property being
sold. The terms of all such sales shall be cash in the amount of the full purchase price.The
purchasing agent shall give a receipt to the purchaser of such property and keep a copy for the
official files, and shall forward a copy of such receipt to the finance department—revenue
division , together with the money so collected from the buyer. The revenue division shall
receive and deposit such money and shall forward the information to the finance director who
shall credit the money received from the sale of such property to the appropriate fund account.
2.16.300: SALE BY SEALED BID OR AUCTION OF SURPLUS PERSONAL PROPERTY:
As an alternate to the method of sale in the open market, the purchasing agent shall, in all cases,
where the estimated value of personal property is five thousand dollars ($5,000.00)or more, and
may, in the sale of all other personal property, where, in his or her discretion,he or she
determines it in the best interest of city, sell surplus personal property by means of sealed bid or
public auction. In conducting an auction, the purchasing agent may contract with a professional
auctioneer or online auction service, and his/her fee may either allow a flat fee,hourly fee, or a
percentage of the amount of the sale,based upon that which is the common and customary
method and rate for such auctioneering services. The procedure for conducting such sale shall be
determined by the purchasing agent; provided,however, that the following are included in such
procedure:
A. At least one notice, three(3) days before the sale, shall be published in a newspaper of
general circulation published and distributed in the city, containing general description of the
type of property to be sold and the time and place of such bid opening or auction.
B. That the terms of all sales shall be cash.
C. The sale by sealed bid or auction shall be to the highest responsible bidder.
D. That a receipt be given to the purchaser and a copy of such receipt,together with the
money received,be deposited with the finance department—revenue division and that the
finance director shall credit such funds to the appropriate fund account.
1:\cc1erk\0rdinances\Nos 2700-2799 in Word,2790 Amending 2 16(2).doc 20
2.16.310: TRADE-IN SURPLUS PERSONAL PROPERTY:
Notwithstanding any provisions of this chapter for the sale of surplus personal property in the
open market or any auction, the purchasing agent may trade in surplus personal property with an
amount he/she determines to be reasonable, to be allowed toward the purchase of a similar type
of personal property. Typical situations where this might apply might be in the disposal of used
motor vehicles and other machinery and equipment for which trade-ins are commonly permitted
by the manufacturer/dealer.
2.16.320: SALE OF UNSERVICEABLE JUNK OR SCRAP PERSONAL PROPERTY:
When any surplus city property is deemed to be unserviceable,junk or scrap,no longer suitable
for its original purpose, the purchasing agent shall dispose of such personal property by
destruction,trade or sale of said personal property at the best competitive price available in the
open market without regard to the other provisions of this chapter.
2.16.330: SALE OF SURPLUS PERSONAL PROPERTY TO PUBLIC AGENCIES AND
NON-PROFIT ORGANIZATIONS:
Notwithstanding any other provision of this chapter, the city council may sell without recourse to
scaled bid or auction surplus personal property to public agencies and non-profit organizations
as may be determined by the city council.
2.16.340: DISPOSAL OF UNCLAIMED PROPERTY:
Notwithstanding other provisions of this chapter,unclaimed property in the possession of the
police department held by the department for the period set forth by this code or state law for
such property,if the true owners thereof do not make claim for their return in accordance with
the provisions of division 3,title 6, chapter 4 (entitled "lost and unclaimed property"),
commencing at section 2080 of the Civil Code,may be either retained by the city upon the
finding that the property is needed for public use or may be disposed of in accordance with the
provisions set forth in this chapter for disposing of personal surplus property.
2.16.350: DISPOSAL OF BICYCLES:
Notwithstanding other provisions of this chapter,bicycles that have been lost or abandoned and
recovered by the police department and held by the department for the minimum time period set
forth by this code or state law,may be disposed of by the city by either auction or by placing
such bicycles with service clubs, charitable agencies, other government agencies concerned with
the welfare of the poor and needy, or with individuals who are poor, needy or disadvantaged."
L\cclerk\0rdinanceMos 2700-2799 in Word12790 Amending 2 16(2),doe 21
Section 2. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of
this ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily
Facts, a newspaper of general circulation within the City, and thereafter, this ordinance shall take
effect as provided by law.
VN
Pete Aguilar, Mayor
ATTEST:
Sam Irwin,V"'city"Clerk
U.,ccIerW\Ordmanc&xNos 2700-2799 in Word12790 Amending 2 16(2),doc 22
1, Sara Irwin, City Clerk, City of Redlands,hereby certify that the foregoing Ordinance was duly
adopted by the City Council at the regular meeting thereof, held on the Wh day of March 2013,
by the following vote:
AYES: Councilmebers Harrison, Foster, .Gardner, Gilbreath, Mayor Aguilar
NOES: None
ABSENT: None
ABSTAIN; None
Sam Irwin, City Clerk
1.1ce1erki0rdimces\Nos 2700-2791 in Wordl2790 Amending 2 16(2).doc 23