HomeMy WebLinkAboutOrdinance 2625 - Amending Title 4 Rev & Fin. ORDINANCE NO. 2625
AN ORDINANCE OF THE CITY OF REDDING AMENDING TITLE 4
(REVENUE AND FINANCE), CHAPTER 4.20 (PURCHASING SYSTEM),
BY AMENDING SECTIONS 4.20.040 (PURCHASING OFFICER —
DUTIES), 4.20.080 (BIDDING — WHEN DISPENSED WITH), 4.20.100
(PURCHASE ORDERS), 4.20.120 (FORMAL CONTRACT
PROCEDURES), 4.20.130 (OPEN MARKET PURCHASING
PROCEDURE), 4.20.150 (SURPLUS SUPPLIES AND EQUIPMENT),
4.20.160 (UNLAWFUL PURCHASES DESIGNATED), AND 4.20.180
(LOCAL BUSINESS PREFERENCES), AND ADDING SECTIONS 4.20.190
(PROCUREMENT FOR OTHER RELATED AGENCIES) AND 4.20.200
(CONTRACTS FOR PROCUREMENT IN RESPONSE TO FORMALLY
DECLARED EMERGENCY OR DISASTER), AND AMENDING
CHAPTER 4.22 (PUBLIC WORKS) BY AMENDING SECTION 4.22.070
(INFORMAL BIDDING PROCEDURES), ALL RELATING TO THE
ADMINISTRATION OF CONTRACTS AND PURCHASE ORDERS
THE CITY COUNCIL OF THE CITY OF REDDING DOES ORDAIN AS FOLLOWS:
Section 1. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.040 of the Redding Municipal Code is hereby amended to read as follows:
4.20.040 - Purchasing officer--Duties.
The Purchasing Officer shall have general supervision of the purchasing division. The duties of
the Purchasing Officer may be combined with those of any other office or position. The
Purchasing Officer shall have authority to do the following:
A. Purchase or contract for supplies, services and equipment required by any City department
in accordance with the purchasing procedures prescribed by this Chapter; such
administrative regulations as the Purchasing Officer shall adopt for the internal
management and operation of the purchasing division; and such other rules and regulations
as shall be prescribed by the City Council or the City Manager. All rules and regulations
not contained in this Chapter shall be as set forth in the purchasing manual adopted by
resolution of the City Council on May 21, 1957, as amended from time-to-time or as
augmented by the Purchasing Officer consistent with this Chapter.
B. Negotiate and recommend execution of contracts for the purchase of supplies, services and
equipment. This may include public work projects estimated to cost less than the force
account dollar limit established in Public Contracts Code section 22032.
C. Procure for the City the needed quality in supplies, services and equipment that prove to be
the best value to the City. Determination of best value may take into consideration
additional elements beyond cost such as warranty, life cycle related costs, lead time,
desired aesthetics, work experience as verified through references or work examples,
vendor location, prior work with the City or other factors deemed relevant by the
Purchasing Officer in the procurement of the needed supplies, equipment or work to be
performed.
D. Encourage uniform bidding and endeavor to obtain as full and open competition as
possible on all purchases.
E. Prepare and recommend to the City Manager rules governing the purchase of supplies,
services and equipment and the sales of personal property for the City, such rules to be
contained in the purchasing manual or other relevant purchasing documentation.
F. Prepare and recommend to the City Manager revisions and amendments to the purchasing
rules contained in the purchasing manual.
G. Keep informed of current developments in the field of purchasing, prices, market
conditions, and new products.
H. Prescribe and maintain such forms as are reasonably necessary to carry out the purchasing
procedures contained in this chapter.
I. Recommend the transfer of surplus or unused supplies and equipment between
departments as needed, and the sale or donation of all supplies and equipment that cannot
be used by any department or which have become unsuitable for City use.
J. Maintain a vendor data-base, vendors' catalog file and records needed for the efficient
operation of the purchasing division.
Section 2. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.080 of the Redding Municipal Code is hereby amended to read as follows:
4.20.080—Bidding--When dispensed with.
A. Purchase of supplies, services or equipment shall be by bid procedures pursuant to Sections
4.20.120 and 4.20.130, except that bidding may be dispensed with only in the following
instances:
1. When an emergency requires that an order be placed with the nearest, or most
readily available source of supply;
2. When the commodity can be obtained from only one vendor;
3. When personal services are required of such a nature as not to be customarily
subject to bid procedures;
4. When a sole-source procurement is based on standards previously adopted by the
City Council;
5. When prices have been established by other governmental entities or associations
of governmental entities in such a manner as to ensure the best value available to
the City; or
6. When, at the determination of the City Manager, or his/her designee, for awards up
to two hundred thousand dollars ($200,000.00), or upon approval by the City
Council for awards over two hundred thousand dollars ($200,000.00), the supplies
services or equipment to be purchased do not constitute public works projects and
are to be procured under conditions representing best value to the City taking into
consideration values other than solely price.
B. An emergency shall be defined as any time an emergency is declared pursuant to Redding
Municipal Code section 4.22.120 or when there is a breakdown in equipment or utility
service requiring immediate repair or replacement, wherein the item or items broken down
do not fall within the definition of a "public project" as defined in Public Contract Code
section 20161, as may be amended from time to time.
Section 3. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.100 of the Redding Municipal Code is hereby amended to read as follows:
4.20.100 - Purchase orders.
A. Except as stated in this Chapter, or if procurement is made pursuant to previously adopted
alternative procedures such as Cal Card purchases, request for demand (RFD) or
confirming purchase order,no purchases of supplies,services and equipment shall be made
without a purchase order or Purchasing Officer's approval.
B. Requests for an emergency purchase order shall be accompanied by an emergency
requisition. The department director requesting the emergency purchase order shall sign
the emergency requisition,or communicate by internal memo or email,and shall explain in
detail the reasons for the emergency. In the absence of the Purchasing Officer, the
emergency requisition must bear the signature of the City Manager or his/her designee. In
the case of emergencies arising after working hours when neither the Purchasing Officer,
the City Manager nor his/her designee can be contacted, the emergency purchase may be
made; provided, however, that the emergency requisition substantiating the purchase shall
be filed by the department director within four hours after the start of the next regular work
day.
Section 4. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.120 of the Redding Municipal Code is hereby amended to read as follows:
4.20.120 - Formal contract procedures.
A. No contract shall be validly formed unless the following prerequisites are in evidence:
1. All contracts of the City, and amendments thereto, shall be in writing.
2. Except for goods or services procured by the Purchasing Officer by purchase order,
all contracts shall be approved as to form by the City Attorney.
3. Except as otherwise delegated in this Chapter,all contracts shall be approved by the
City Council and executed by the Mayor. Pursuant to Government Code section
40602, the City Council may, on a case by case basis, delegate execution of a
contract to any officer of the City. Further, if a contract requires the signature of
the Mayor and the Mayor is physically absent, unwilling or unable to execute a
contract authorized by the City Council, the contract shall be executed by the Vice
Mayor and, in the absence of the Vice Mayor, by the Mayor Pro Tempore.
B. Except as otherwise provided in this chapter,purchases and contracts for supplies, services
and equipment with an estimated value greater than sixty thousand dollars ($60,000.00)
shall be by written contract with the lowest responsible and responsive bidder pursuant to
the procedures prescribed in this section. In the case of service procurements wherein
qualitative factors should be considered in the selection of a provider, award may be made
utilizing an RFP process in accordance with policies set by the City Council or the
Purchasing Officer.
Pursuant to Government Code section 4526, selection of architectural, landscape
architectural, engineering, environmental, land surveying or construction project
management contractors must be on the basis of demonstrated competence on the
professional qualifications necessary for the satisfactory performance of the services
required.
C. Except as otherwise provided in this chapter or as determined by the City Manager,the sale
of personal property with an estimated value greater than sixty thousand dollars
($60,000.00) shall be made to the highest responsible bidder, pursuant to the procedures
prescribed in this section or procedures used with an online or live auction service.
D. Notices inviting bids or requesting proposals shall include a general description of the
articles to be purchased or sold or what services are required; state where bid forms and
specifications may be secured; and the time and place for opening bids/proposals.
1. For procurement of supplies, services not constituting public work, and equipment
with an estimated value greater than two hundred thousand dollars ($200,000.00),
notices inviting bids shall be published or posted at least ten (10) calendar days
before the date of opening of the bids. Notices inviting proposals shall be
published or posted on a date agreed upon by both the requestor and purchasing
officer in advance of the opening of proposals. Notice shall be published at least
once in a newspaper of general circulation printed and published in the City; or, in
the alternative, by posted notice on the City's website.
2. The Purchasing Officer shall also solicit sealed bids or proposals from responsible
prospective suppliers.
3. The Purchasing Officer or the City Clerk shall also advertise pending purchases or
sales by a notice posted on a public bulletin board in the City Hall, or, in the
alternative, by posting notice on the City's website.
E. When deemed necessary by the Purchasing Officer, bidder's security may be prescribed in
the public notices inviting bids. Bidders shall be entitled to return of bid security;
provided,however,that a successful bidder shall forfeit his or her bid security upon refusal
or failure to execute the contract within ten (10) calendar days.after the notice of award of
contract has been mailed or emailed,unless the City is responsible for the delay. The City
may, on refusal or failure of the successful bidder to execute the contract, award it to the
next lowest responsible and responsive bidder. If the City 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.
F. Sealed bids and proposals shall be submitted to the City official designated in the notice
inviting bids or requesting proposals, and shall be identified as bids or proposals on the
envelope. Bids and proposals shall be opened in public at the time and place stated in the
public notices. A tabulation of all bids received shall be open for public inspection during
regular business hours for a period of not less than thirty (30) calendar days after the bid
opening.
G. In its discretion, the City may reject any and all bids or proposals presented and
re-advertise for bids or proposals.
H. Contract Award.
1. Purchase orders for the purchase of supplies and equipment greater than sixty
thousand dollars ($60,000.00) and less than or equal to two hundred thousand
dollars ($200,000.00) shall be awarded to the lowest responsible and responsive
bidder by the Purchasing Officer, with additional authorization from the City
Manager or his/her designee, except as otherwise provided in this chapter.
2. Purchase orders and contracts for services shall be awarded to the service provider
providing the best value to the City. The appropriate signatory for the City shall
be determined by dollar value as follows:
A. Contracts, excluding purchase orders, having a value of up to sixty
thousand dollars ($60,000.00) per contract year may be made by the
director of the department for whom the service is requested.
B. Contracts, excluding purchase orders, having a value greater than sixty
thousand dollars ($60,000.00) and less than or equal to two hundred
thousand dollars ($200,000.00) per contract year may be made by the City
Manager or his/her designee.
C. Purchase orders having a value greater than seven thousand Five Hundred
Dollars ($7.500.00) and up to and including thirty thousand dollars
($30,000.00) require signature approval from the requesting Division
Manager or Department Director and Purchasing Officer prior to award.
D. Purchase orders having a value greater than thirty thousand dollars
($30,000.00) and equal to or less than sixty thousand dollars ($60,000.00)
require signature approval from the requesting Department Director and
Purchasing Officer prior to award.
E. Purchase orders having a value greater than sixty thousand dollars
($60,000.00) and less than or equal to two hundred thousand dollars
($200,000.00) require signature approval from the requesting department
director, the City Manager or his/her designee, and the Purchasing Officer
prior to award.
3. One-time or one-year contracts for the purchase of supplies, equipment or services
exceeding two hundred thousand dollars ($200,000.00), or multiple-year contracts
exceeding two hundred thousand dollars ($200,000.00) per contract year, shall be
awarded by the City Council, except as provided in this chapter.
I. If two or more bids received are for the same total amount or unit price,quality and service
being equal, the City may accept the one it chooses or accept the lowest bid made by
negotiation with the tie bidders.
J. The City shall have authority to require a faithful performance, payment, maintenance, or
other bond before entering into a contract in such amount as it shall find reasonably
necessary to protect the best interests of the City. If the City requires a faithful
performance bond, the form and amount of the bond shall be described in the notice
inviting bids.
K. The Purchasing Officer, with additional authorization from the City Manager or his/her
designee,may reject supplies, equipment and service bids if the bids received are in excess
of the budgeted funds available for the purchase, and rebid or commence open-market
negotiations to award a purchase order or contract to the vendor that can provide the
supplies, equipment or service to the City's satisfaction within budgeted amounts.
L. The City Council, or the appropriate City officials as authorized by subsection H of this
section, may authorize the execution of a contract for supplies, services or equipment
without any previous publication or posting of notice inviting bids or proposals when the
City Council or the appropriate official finds that any one or more of the following
situations exist:
1. When an offer(s) has been received for the subject supplies, services or equipment
obtained in accordance with all the provisions of this chapter, including publication
or posting of notice, and the City has rejected any and all offers, and has authorized
negotiation with one or more bidders or other parties who possess the capability of
supplying the required supplies, services or equipment, and the City finds that the
proposed contract so negotiated is more favorable to the City than any which could
be made in accordance with the bids or proposals heretofore requested.
2. Prior solicitation yielded no bids or proposals.
3. When there is only one available source which can supply the subject matter of the
contract.
4. When the contract is for personal services,including peculiar or specialized skill or
ability.
5. When an emergency exists which makes it essential to the health, safety or welfare
of the people that emergency action be taken.
6. When a sole-source procurement is based on standards previously adopted by the
City Council.
7. When prices have been established by other governmental entities, or associations
of governmental entities, in such a manner as to ensure the best value available to
the City.
8. When, at the determination of the City Manager for awards up to two hundred
thousand dollars ($200,000.00), or upon approval by the City Council for awards
over two hundred thousand dollars ($200,000.00), goods or services are proposed
to be procured which do not constitute public works projects.
Section 5. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.130 of the Redding Municipal Code is hereby amended to read as follows:
4.20.130 - Informal purchasing procedure.
A. Purchases of supplies, equipment, construction, and_contractual services and the sales of
personal property in the amount sixty thousand dollars ($60,000.00) or less in one fiscal
year, or sixty thousand dollars ($60,000.00) or less per contract year in the case of
multiple-year awards, shall be considered "informal" and may be made by the Purchasing
Officer in the open market without observing the procedures prescribed by section
4.20.120 of this chapter.
1. Informal purchases for supplies, equipment, construction and contractual services
shall,wherever possible,be based on at least three(3)quotations and be awarded to
the lowest responsible bidder. The Purchasing Officer, or his/her designee, shall
solicit written quotes by requests to prospective vendors by telephone, U.S. mail,
electronically or by public notice posted on a public bulletin board in the City Hall,
or by notice posted on the City's web site. Written quotations shall be submitted to
the Purchasing Division by way of fax, electronically, U.S. mail or in person, and
the Purchasing Officer shall keep a record of all open market orders and quotations
for a period of two (2) years after the submission of quotes or the placing of orders.
This record, while so kept, shall be open to public inspection.
2. Informal purchases for supplies and equipment shall not require competitive bids if
the value is equal to or less than seven thousand five hundred dollars ($7,500.00).
These purchases may be obtained by use of a city-issued credit card or open blanket
purchase order.
3. Informal purchases greater than seven thousand five hundred dollars ($7,500.00)
and up to sixty thousand dollars ($60,000.00), wherever possible, shall be based on
three (3) or more written, faxed, or electronic quotes and may be obtained directly
be the requestor or by the purchasing staff.
Section 6. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.150 of the Redding Municipal Code is hereby amended to read as follows:
4.20.150 - Surplus supplies and equipment.
A. All City departments shall submit to the Purchasing Officer, at such times and in such form
as he or she shall prescribe, reports showing all supplies and equipment which are no
longer used or which have become obsolete or worn out. The Purchasing Officer shall
have authority to sell all supplies and equipment which cannot be used by any department
or which have become unsuitable for City use,or to exchange them for,or trade them in on,
new supplies and equipment.
B. The Purchasing Officer shall have the authority to dispose of surplus supplies and
equipment having an estimated value of three thousand dollars ($3,000.00), or less, by
whatever method and procedure is deemed to be in the City's best interest including as a
donation. Donations shall be limited to Shasta County United Way participating
agencies, Shasta County volunteer fire departments, Shasta County public schools, and
other Shasta County government agencies and special districts, or other non-profit
organization approved by the City Manager.
C. Except as otherwise provided by law,any sale of surplus goods shall be made by an auction
service or pursuant to Section 4.20.120 or 4.20.130, whichever is applicable, except that
surplus supplies and equipment may be sold for fair value without competitive bidding to
public agencies and other nonprofit agencies listed in this section 4.20.150. The City has a
right to set a minimum dollar amount acceptable for any particular sale of auction item.
Section 7. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.160 of the Redding Municipal Code is hereby amended to read as follows:
4.20.160—Unlawful purchases designated.
A. If any department purchases or contracts for any supplies, materials, equipment or
contractual services contrary to the provisions of this chapter,the purchase or contract shall
be void and of no effect. The director of the department making the purchase transaction
shall be personally liable for the amount of the purchase or contract,and, if already paid for
out of city funds, the amount thereof may be recovered in the name of the city in
appropriate action therefor.
B. It is unlawful for any employee to split the requirements for supplies,materials, equipment
and contractual services in order to evade the provisions of Sections 4.20.120 and 4.20.130
of this chapter.
Section 8. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.180 of the Redding Municipal Code is hereby amended to read as follows:
4.20.180—Local Business Preference.
A. Local Business Defined. For purposes of this section,a"local business"means a business
enterprise including but not limited to, a sole proprietor,partnership, or corporation which
has the following:
1. A valid business license issued from the City of Redding; and
2. Has a place of business with a physical address located within the jurisdictional
limits of the City of Redding and retains at least one full time equivalent employee
at that location.
B. Where competitive bidding is utilized for the purchase of taxable goods pursuant to
Sections 4.20.120 A. and 4.20.130 A., and the lowest responsible bidder is not a local
business,the Purchasing Officer shall provide the lowest responsible local business bidder,
should one exist and its bid is within five percent of the lowest responsible bidder, with
notice and an opportunity to reduce its bid to match that of the lowest responsible bidder.
C. Upon notice being provided pursuant to Section 4.20.180 B., the local business shall have
two full business days to provide written notice to the Purchasing Officer of its desire to
match the lowest bid. In the event the local business elects to match, the contract will be
awarded to the local business. In the event, the local business provided the opportunity to
match does not opt to match the lowest responsible bid, the award of the contract shall be
given to the lowest responsible bidder.
D. In instances where a local business and a non-local business submit equivalent lowest,
responsible bids, the Purchasing Officer shall give preference to the local business.
E. All notices required under this section may be made orally, in writing or electronically.
F. Local preference shall not apply to any procurement of public work or where prohibited by
grant funding or other specific directive.
Section 9. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.190 of the Redding Municipal Code is hereby amended to read as follows:
4.20.190—Procurement for other related agencies.
The purchasing Officer shall adhere to the procurement policies and procedures that apply to the
Redding Area Bus Authority as adopted by the Board of Directors and approved by the parent
agency, i.e., the Federal Transit Administration.
Section 10. Title 4 (Revenue and Finance), Chapter 4.20 (Purchasing System), Section
4.20.200 of the Redding Municipal Code is hereby amended to read as follows:
4.20.200 — Contracts and procurement in response to formally declared emergency or
disaster.
Procurement under emergency declaration shall be pursuant to Redding Municipal Section
4.22.120.
Section 11. Title 4 (Revenue and Finance), Chapter 4.22 (Public Projects), Section
4.22.070 of the Redding Municipal Code is hereby amended to read as follows:
4.22.070—Informal bidding procedures.
A. Contractor List. A list of contractors shall be developed and maintained in accordance
with the provisions of Section 22034 of the Act, and criteria promulgated from time to time
by the California Uniform Construction Code Cost Accounting Commission
(Commission).
B. Notice Inviting Informal Bids. Where a public project is to be performed 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 list developed in subsection
(A) of this section, and all construction trade journals as specified by the commission in
accordance with Section 22036 of the Act. Additional contractors and/or construction
trade journals may be noticed at the discretion of the city; provided, however:
1. If there is no list of qualified contractors maintained by the city for the particular
category of work to be performed, the notice inviting bids shall be sent only to the
construction trade journals specified by the commission.
2. If the product or service is proprietary in nature such that it can be obtained only
from certain contractors, the notice inviting informal bids may be sent exclusively
to such contractors.
C. Mailing of Notice Inviting Informal Bids. The mailing of all notices to contractors and
construction trade journals pursuant to subsection(B)of the section shall be completed not
less than ten calendar days before bids are due.
D. Content of Notice Inviting Informal Bids. 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 the submission of bids.
E. Award of Contracts. The city manager shall award informal contracts.
F. If all bids received are less than or equal to two-hundred thousand dollars($200,000.00), or
as that amount established by Public Contract Code section 22032 may from time to time
be amended, the city manager may award the contract to the lowest responsible bidder.
Section 12. Severability. If any section, subsection, sentence, clause or phrase of this
ordinance is for any reason held by a court of competent jurisdiction to be invalid or
unconstitutional, such decision shall not affect the validity of the remaining portions of the
ordinance. The City Council of the City of Redding hereby declares that it would have passed this
ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact
that one or more sections, subsections, sentences, clauses or phrases may be held invalid or
unconstitutional.
Section 13. The passage of this ordinance is not a "project" according to the definition
in the California Environmental Quality Act, and therefore is not subject to the provisions
requiring environmental review.
Section 14. This ordinance shall take effect thirty (30) days after the date of its
adoption, and the City Clerk shall certify to the adoption thereof and cause publication according
to law.
I HEREBY CERTIFY that the foregoing ordinance was introduced and read by the City Council
of the City of Redding at a regular meeting on the 16th day of June, 2020, and was duly read and
adopted at a regular meeting on the 21 st day of July, 2020, by the following vote:
AYES: COUNCIL MEMBERS: Dacquisto,Resner,Schreder,Winter,and McElvain
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
ADAM McELVAIN, Mayor
ATTEST: FORM APPROVED:
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PAMELA MIZE, City Cler BARRY E. e A T, City Attorney