§ 3.08.010. General provisions.

The procedures of this chapter are adopted in accordance with provisions of Sections 54201 through 54205 of the Government Code of the State of California. This does not cover the procurement or reimbursement of travel expenses, as they may be treated by other government ordinance or resolution.

A.

Purchasing Authority. The finance department shall oversee the purchasing function that is administered by each department. Each department shall be responsible for purchasing its own needs subject to the approval by the department head. The approval of purchases of less than five thousand dollars may be delegated to supervisory staff as deemed necessary for maximum efficiency and control. No expenditures shall be made without the appropriate reviews and approval as provided in this chapter.

B.

Purchasing Goals. The purchasing procedures described in this chapter aim to achieve the following goals:

1.

To establish efficient procedures for the purchase of supplies, equipment and services;

2.

To procure for the city, supplies, equipment, and services at the lowest possible cost commensurate with quality and quantity needed;

3.

To exercise positive financial control and accountability over purchasing;

4.

To give preference to local merchants, with quality and price being equal (when accounting for additional costs such as shipping vs. travel time to pick up or deliver an item, or sales tax to be received by the city);

5.

To minimize the need for warehousing thereby saving space, insurance and handling costs;

6.

To clearly define authority and responsibilities for the purchasing function.

C.

Centralized Purchasing. Centralized purchasing shall be encouraged as a means of acquiring goods and services common to many departments. Such efforts may result in cost savings like volume discounts and will eliminate duplication of effort. All computer hardware and software purchases shall be reviewed by the information systems coordinator for consistency and compatibility. Centralization is recommended for departments close and adjacent to each other and shall be zoned as follows: city hall, police, corporation yard, CCF, and community services. Centralized purchasing is recommended for such items as fuel oil, motor vehicle parts, office supplies and stationery.

D.

Budget Transfers. Budget overruns shall not be tolerated but may be remedied through budget transfers. From time to time, budget transfers may be needed to pay for some higher than anticipated costs in purchasing supplies and services, or for existing capital improvement projects. Budget transfers shall be allowed only for line items within a division, subject to approval by the city manager with the following caps:

1.

New capital outlay over five thousand dollars and all budget transfers for items other than capital outlay in excess of thirty-five thousand dollars shall be approved by the city council.

2.

Budget transfers shall not be allowed for new capital improvement projects.

3.

Budget transfers shall be certified by the finance director for no new money appropriations and approved by the city manager through an appropriations transfer request.

4.

Budget transfers subject to the approval of the city council shall be included in the consent agenda accompanied by a duly approved appropriations transfer request staff report and city council resolution.

E.

Purchasing Principles. Generally, the procurement procedure involves the determination of quantity, quality and related requirements, negotiation and canvassing of prices, referral of bids for analysis and recommendations, award of purchase order and contracts, the supervision of receipt and acceptance procedures and the approval of invoices for payments. Except as provided herewith, the following purchasing functions shall be observed on a departmental level. Each department:

1.

Shall process the purchase of and contract for all supplies, equipment and contractual personal services, according to its needs;

2.

Shall make procurements in accordance with the purchasing procedures prescribed by this chapter, relevant administrative regulations approved by the city manager, and such rules and regulations as the city shall adopt for the internal management and operation of the purchasing function;

3.

Shall negotiate and recommend the execution of contracts for the purchases of supplies, equipment and services. Where a lease purchase arrangement is contemplated, the matter shall be referred to the finance department for proper bidding of financial products or services;

4.

Shall act to procure the needed supplies, equipment and services with the necessary quality, capacity, safety performance ability and overall cost, considering labor and maintenance costs and other applicable factors required to meet the service objects at the least expense to the city;

5.

Shall discourage collusion in bidding and induce full competition on all purchases;

6.

Shall prepare and recommend administrative regulations including revisions and amendments thereto, governing the purchase of supplies and equipment for the city, which regulations shall be effective upon approval by the city manager;

7.

Shall keep track of current developments in the field of purchasing, prices, market conditions and new products;

8.

The finance department shall prescribe, design and issue forms needed for the purchasing function and shall process payments of purchases with the assurance that such purchases were authorized, that the items purchased were actually received in a satisfactory manner, that the quantity and prices indicated in the purchase order are the same as those indicated in the invoice. Any variance noted between the purchase order and the invoice shall have to be authorized and confirmed by the department head before payment of the invoice;

9.

The finance department shall also maintain a bidders' list, vendor's catalog file and other records used in modern procurement operations;

10.

The city clerk shall receive and process all formal bids to assure that every bidder complies with all applicable municipal, state and federal safety regulations.

F.

Specifications.

1.

As needed, each department shall develop standards specifications for repetitively procured items and services.

2.

Every specification shall be prepared to assure the broadest possible bidder participation, consistent with the needs of the using department or agency.

3.

Alternate specification provisions for any particular bid invitation may be established.

4.

No oral interpretation of any written specification shall be made to any bidder as to the meaning of the specification. If a prospective bidder discovers discrepancies or omissions in any specification or if the bidder is in doubt as to the naming of the specification, the bidder shall request clarification or modification from the city in writing and delivered to the person authorized in the specification at least five days before the time specified for the opening of bids, unless a different time is specified in the specifications. Interpretations and modifications shall be issued by the person authorized in the specifications, in the form of an addendum to the specifications, and when issued, shall be transmitted as promptly as practical to all parties known by the person so authorized to have received copies of the specifications. The provisions of the subsection shall be deemed included in all bid specifications issued by the city, including any public project, whether or not the provisions are specifically included in the specifications.

5.

City purchases and contracts shall comply with the no procurement debarment and suspension common rule implementing E.O.s 12549 and 12689, "Debarment and Suspension." This common rule restricts sub awards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. In order to determine the status of a vendor regarding debarment and/or suspension, formal solicitations for bids and proposals shall require certification related to this status prior to order placement.

(Ord. 1156 § 1 (Exh. A), 2007; Ord. 1146 § 1(part), 2006).

(Ord. No. 2013-1258, § 1(exh. A), 4-15-2013)