§ 3.08.030. Vendor quotation/call for bids—Supplies, materials, maintenance and equipment.

Purchases of supplies, materials, maintenance and equipment shall strictly adhere to the following quotation/call for bids requirements dictated by the dollar amount of the purchase. The quotation/call for bids requirements and dollar limits are as follows:

A.

Immediate Procurement Procedure/Up to One Thousand Dollars. Each department head may exercise his/her own discretion with regard to vendor choices with preference given to local merchants, with quality and price being equal.

The department shall identify the necessary supplies, services or equipment and complete a requisition form with the appropriate account number(s) approved by the department head and forwarded to the finance department so that the expenditure is immediately encumbered. This requisition can immediately be used and submitted to the vendor to obtain the supplies or services. No purchase order is necessary unless the vendor requests for it.

B.

Verbal Quotation Procedure/One Thousand One Dollars to Two Thousand Dollars. Each department head or his/her designee shall acquire a verbal quote from at least three vendors. Telephone quotes shall be documented on a telephone sheet. The department head shall select the vendor and shall identify the necessary supplies, services or equipment and complete a requisition form approved by him with appropriate account numbers. The requisition form shall be forwarded to the finance department that prepares the purchase order after verifying that all procedures have been followed. The finance department shall encumber the amount. A formal purchase order is needed before procuring supplies and/or services at this level.

C.

Written Quotation Procedure/Two Thousand One Dollars to Thirty-Five Thousand Dollars. Each department head or his/her designee shall solicit written quotations from at least three vendors. Vendors shall submit by fax or e-mail or letter, their written quotations directly to the departments seeking quotations. The department head shall select the vendor and shall then complete a requisition form with the appropriate account numbers. The requisition form shall be approved by the department head or his/her designee and shall be forwarded to the finance department for purchase order preparation after verifying that all purchase procedures have been complied with. All purchases costing thirty-five thousand dollars and over shall be approved by the city council as a consent agenda item except for the waiver provided in Resolution 2000-108.

Exceptions. The written quotation procedure shall be waived for the following types of purchases:

1.

Purchase of vehicles or equipment which are acquired at a public auction. These purchases shall have prior approval by the city manager or his/her designee;

2.

Purchases of vehicles or equipment through cooperative agreements with the State of California or other public agencies;

3.

Where the vendors are selected by other agencies under contract with the city through their normal purchasing procedures.

D.

Formal Purchasing Procedure/Call for Bids Over Thirty-Five Dollars. A formal bid shall be required if the estimated dollar amount of the purchase, including tax, shipping and related costs, exceeds thirty-five thousand dollars. Capital improvement purchasing procedures are further elaborated in Section 3.08.070.

1.

The department head or his/her designee shall prepare a bid package to solicit bids from qualified firms. The bid package shall consist of the following items:

a.

Notice inviting bids;

b.

Information to bidders;

c.

Bid specifications;

d.

Proposal form;

e.

Insurance and/or bond requirements.

Notice inviting bids shall include a general description of the articles to be purchased and shall state where the bid forms and specifications may be secured, as well as the time and place for the opening of bids. The notice shall specify which factors will be given special consideration in determining the lowest responsible bidder.

When considered necessary, bidders' security may be prescribed in the notice inviting bids. Bidders shall be entitled to return of bid securities, provided, however, that the successful bidder shall forfeit the bid security upon the refusal of the bidder to execute the contract within the time designated in the bid specifications. The council, on the refusal or failure of the successful bidder to execute the contract, may award the contract to the next lowest responsible bidder. If the 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 contract price differential between the lowest bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. Lowest responsible bidder shall mean the bidder which best responds to the price, quality, service, fitness or capacity to the particular requirements of the city. Price alone shall not be the determining factor but shall be considered along with other factors relating to the particular needs of the city.

Example: Clause to add to bid requirements:

The bidders must not appear on any list of debarred, suspended or ineligible concerns or individuals that would compromise the funding agency's ability to comply with Executive Orders 12549 and 126898 related to "Debarment and Suspension."

2.

The city clerk shall administer the bidding process and shall follow bid procedures regarding posting notices, sending notice inviting bids, receiving bids, and opening and tabulation of bids. Confidentiality of bids shall be maintained and shall not be disclosed directly or indirectly to any other bidder until the bidding is closed or other further bidding is excluded. 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 re-advertising of bids, the city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of opening. Before bid opening, ensure none of the bidders are debarred, suspended, or otherwise excluded. If any are, reject those bids before opening them.

3.

The city council shall have the authority to require a performance bond before entering into a contract in such amount as it finds reasonably necessary to protect the best interest 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.

4.

When the council finds that it is in the public interest and necessity or that it is impractical to purchase supplies or equipment without compliance with formal contract procedures set forth in this section, the council may waive such procedures by so declaring with a separate motion or resolution.

5.

The council reserves the right to reject any or all bids or to waive any irregularities or informalities in any bid or all bidding and to determine which bid in the judgment of the council is the lowest responsible bidder and which bid should be accepted in the best interest of the city.

6.

The department head shall recommend award of contract to the lowest responsible bidder to the city manager. The department shall prepare an agenda report and present it to the city manager, who shall then present the item to the city council as a regular agenda item. In all cases, price shall not be the sole determining factor, but shall be considered along with other factors, including, but not limited to, ability of the vendor to deliver, ability to service, prior experience, quality, compatibility with existing city equipment, and other particular needs of the city.

7.

Upon award of contract by the city council, the department head or his/her designee shall submit a purchase requisition with award recommendation and documentation, appropriate account numbers, including contract, if applicable, to the finance department which shall prepare the purchase order.

8.

After award of the contract by the city council, the vendor awarded the contract shall be notified by the city clerk.

9.

The city clerk shall send notices to vendor(s) not selected.

(Ord. 1146 §1(part), 2006).

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