CC - Item 5A - Purchasing Ordinance and PolicyE M F
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ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: OLIVER CHI, CITY MANAGER QQZ4
DATE: JANUARY 22, 2008
SUBJECT: PUCHASING ORDINANCE AND POLICY
SUMMARY
The Purchasing Policy is defined in the Municipal Code under section 3.24. This
section of the code has not been updated in years and does not currently reflect many
purchasing practices and procedures that would enable staff to more efficiently and
effectively perform their duties.
Staff Recommendation
Staff recommends that the City Council
Resolution 2008-08 (Attachment B), and
amending the current Purchasing System.
adopt Ordinance
864
(Attachment
A),
the Purchasing
Policy
(Attachment
C)
ANALYSIS
The current Purchasing System language in the Municipal Code has been in place for
more than 10 years and does not address many common purchasing practices. One
such practice is the utilization of competitive bids from other agencies. Enabling staff to
take advantage of existing contracts and bids from other agencies not only saves staff
time, but also may allow us to take advantage of much larger volume discounts.
The current purchasing code and policy also does not address acquisitions using
federal funds. Most federal agencies have additional purchasing requirements above
and beyond our normal procedures and language must be included in our policy to
ensure compliance. Such language has been included in sections 2 and 7 of the
Purchasing Policy.
Aside from the addition of new language and provisions, the current Municipal Code has
requirements which are no longer feasible or practical to comply. Under the existing
Code, Section 3.24.070, staff is supposed to utilize the bidding process for any
acquisition in excess of $100. Utilizing a bid process for all items over $100 is no longer
practical or feasible. A second example is under existing Code Section 3.24.020, which
requires a Centralized Purchasing Department. The City has not utilized a Centralized
APPROVED FOR CITY COUNCIL AGENDA: b- ITEM NUMBER:
City Council Meeting
January 22, 2008
Page 2 of 2
Purchasing Department for at least ten years, and staff would not recommend creating
one just to comply. ,
The proposed Code and Policy changes have been developed through the review of
numerous purchasing policies from around the State of California, experience, and
recommendations from staff. The changes also include recommendations from. the
City's auditors and granting agencies to ensure that we have sufficient internal controls
in place while maintaining compliance with all applicable State and Federal regulations.
LEGAL REVIEW
The City Attorney has reviewed the proposed Ordinance and Resolution.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Submitted by:
I-V-~ r44-~~
Matthew E. Hawkesworth
Assistant City Manager - Internal Business Units
Attachment A: Ordinance 864
Attachment B: Resolution 2008-08
Attachment C: Purchasing Policy
• •
H. "Facility" shall have that meaning provided in Section 22002(e) of the Act, as that Section
may be amended from time to time. In this light, facility shall include any plant, building,
structure, ground facility, utility system, subject to the limitation found in Section 3.24.010(0)(4)
of this Ordinance, real property, streets and highways, or other public work improvements.
1. "Formal competitive purchasing procedure" means a procedure which meets the requirements
of state and local law, including the Act, this chapter and any policies and procedures approved
by the city manager consistent with this chapter. The project shall be publicly noticed as
required by law so all interested vendors can participate, and bid packets may be prepared for
purchase by vendors.
J. "General Services" mean all services' performed by persons not in a professional occupation,
including, but not limited to, contract services for park, electrical and computer repair; building,
facility and vehicle maintenance; recreation programs; and other similar services which are not
professional services.
K. 'Informal competitive purchasing procedure' means that at least three (3) bids shall be
obtained from a predetermined vendor list and the city manager shall approve final selection.
L. "Maintenance work" shall have that meaning provided in Section 22002(d) of the Act, as that
Section may be amended from time to time. In this light, maintenance work shall include, but
shall not be limited to, 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 repainting.
3. Street and highway maintenance, including utility patching, skin patching, crack
filling, filling of pot holes, slurry sealing, edge grading, street striping, resurfacing of streets and
highways at less than one-inch, sign replacement, sidewalk repair and replacement, curb and
gutter repair and replacement, and street and traffic light repair and replacement. Maintenance
work shall not include striping of a new street or highway.
4. Sewer maintenance, including foaming, video taping, cleaning and manhole
restoration.
5. Traffic signal maintenance. Maintenance work shall not include installation of a new
traffic signal.
6. Storm drain related maintenance.
7. Landscape maintenance, including mowing, watering, trimming, tree pruning,
planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair,
and landscape rehabilitation.
8. Maintenance of facilities, including roof repairs, heating and air conditioning repairs,
and electric repairs.
9. Vehicle and equipment maintenance and repairs.
10. 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 230,000 volts and higher.
M. "Negotiated contract" shall mean a letter of agreement, vendor agreement, contract,
professional services agreement, maintenance services/public works projects agreement or
written documentation which details terms and conditions of the purchase.
N. "Professional services" means all services performed by persons in a professional
occupation, including, but not limited to, consulting and performance services for accounting,
auditing, computer hardware and software support, engineering, architectural, planning,
redevelopment, financial, economic, personnel, social services, animal control, legal,
management, environmental, cable television, communication and other similar professional
functions which may be necessary for the operation of the City.
0. "Public project" shall have that meaning provided in Section 22002(c) of the Act, as that
Section may be amended from time to time. In this light, public project shall not include
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• •
maintenance work. In addition, public project shall include, but shall not be limited to, all of the
following:
1. Construction, reconstruction, erection, alteration, renovation, improvement,
demolition, and repair work involving any publicly owned, leased,,or operated facility.
2. Roof replacements for publicly owned, leased or operated facilities.
3. Painting or repainting of any publicly owned, leased, or operated facility.
4. 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 230,000 volts and higher.
P. "Purchasing officer" means the city manager or his or her designee(s) as provided in Section
3.24.020. Pursuant to Section 3.24.020, the city manager may change his or her designation at
any time.
3.24.020 Purchasing Officer- Position created -Appointment.
There is established in the office of the city manager the role of a purchasing officer. The
purchasing officer shall be the city manager or his or her designee(s). If the city manager
designates one or more persons to act in this
pleasure of the city manager. The duties of the
of any other officer(s) or position(s).
ole, the purchasing officer(s) shall serve at the
purchasing officer may be combined with those
3.24.030 Purchasing Officer - Powers and duties.
The purchasing officer, in accordance with the policies set forth in this chapter and in any
written procedures approved by the city manager consistent with this chapter, shall have the
power to:
A. Purchase or contract for supplies, services and equipment required by the City.
B. Negotiate and recommend to the City Council execution of contracts 'for the purchase of
supplies, services and equipment.
C. Prepare and implement policies and procedures governing the bidding, contracting,
purchasing, storing, distribution and disposal of supplies, services and equipment for the City.
D. Prescribe and maintain such forms as may be reasonably necessary to the implementation of
this chapter and any other policies and procedures approved by the city manager consistent
with this chapter.
E. Review the working details, drawings, plans and specifications for any projects or purchases
requiring such review in this chapter.
F. Inspect or supervise the inspection of purchased supplies, services and equipment to ensure
conformity with any specifications established or required by the City.
G. Transfer among departments any supplies, services and equipment not needed by one such
department, but which are necessary for the operation of one or more other departments.
H. Sell any supplies and equipment not needed for public use or that may become unsuitable
for their intended use.
1. Develop and maintain any bidder's list, contractor's list or vendor's catalog file necessary to
the operation of this chapter and any other policies and procedures approved by the city
manager consistent with this chapter.
3.24.040 Purchasing policies and procedures.
A. The City shall secure supplies, services and equipment at the lowest total cost
commensurate with the quality and scope needed, and subject to any limitations imposed by
state law. Notwithstanding the foregoing, the City shall secure professional services based upon
demonstrated competence, professional qualifications and suitability for the project in general.
The City may consider cost of professional services if the authorized contracting party
determines it to be a relevant factor under the circumstances.
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In order to promote the economic health and development of the City, to recognize the
amount of sales tax that is returned to the City as a result of the award of a purchase contract
for supplies and equipment to a Rosemead vendor, to encourage local participation in the
procurement process, and to exercise the prudent use of public funds, the City Council may, by
minute action, award a bid to a Rosemead vendor provided the local bid does not exceed the
lowest bid by more than five percent (5%) or Ten Thousand Dollars ($10,000), whichever is
less.
For purposes of this Section, "Rosemead vendor" shall mean a local business enterprise
whose business address at the point of sale is located within the geographical boundaries of the
City and who maintains a valid license or permit to do business in the City.
B. The purchasing officer shall develop, for approval by the city manager, such policies and
procedures as are necessary to implement the provisions of this chapter. The policies and
procedures shall be written and implemented in such a way to encourage open and competitive
bidding, provide equal opportunity based on merit, make each selection process free of
invidious discrimination, provide for efficient and timely acquisition of needed supplies, services
and equipment, and provide effective fiscal controls.
C. In purchasing, supplies, services and equipment, the City shall make use of competitive
bidding, either direct, formal or informal, whenever required by law, this chapter, or any policies
and procedures approved by the city manager consistent with this chapter.
D. Direct, formal or informal competitive bidding is not required, for instance, when an
"emergency" is declared pursuant to Sections 3.15.090(A) of this chapter. With respect to
emergencies involving public projects of $ 25,000 or more, however, this waiver of competitive
bidding shall last only so long as the emergency exists in the determination of the City Council.
3.24.050 Bidding, purchasing and contracting.
A. $5,000 or less: Any purchase of $5,000 or less may be awarded by the director of the
department responsible for the project by any direct competitive purchasing procedure as
defined herein.
B. $5,001 to $25,000: Any purchase of more than five thousand dollars ($5,000) and not greater
than twenty-five thousand dollars ($25,000) may be awarded by the city manager by any direct
competitive purchasing procedure as defined herein.
C. $25,001 to $50,000: Any purchase of more than twenty-five thousand dollars ($25,000) and
not greater than $50,000 shall, except as otherwise provided in this chapter or the Act, be
awarded by the City Manager pursuant to the formal competitive purchasing procedure set forth
in Section 3.24.080.
D. $50,001 or more: Any purchase of more than fifty thousand dollars ($50,000) shall, except
as otherwise provided in this chapter or the Act, be awarded by the City Council pursuant to the
formal competitive purchasing procedure set forth in Section 3.24.080.
E. City Engineer Approval: The city engineer shall review and approve the working details,
drawings, plans, and specifications prepared for public projects and maintenance work where
applicable in the areas of streets, sewer, storm drains, and traffic signals, but not necessarily for
parks, buildings, and landscaping, which may affect the engineering design or operation of
public improvements and which may bring into question the City's liability for dangerous
conditions of public property.
F. Purchasing Officer Approval: The purchasing officer, or his or her designee, shall review and
approve all contracts for public projects of five thousand dollars ($5,000) or more.
G. Five-Year Term Limitation: No agreement or contract shall extend for a period of more than
five (5) years, including any authorized extensions.
3.24.060 Rosemead direct competitive purchasing procedure.
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A. Uses of Rosemead Direct Competitive Purchasing Procedure: This direct purchasing
procedure shall be used for purchases between $1, 000 and $25,000.
B. At least three (3) vendors shall be contacted to provide informal quotes.
C. The department shall maintain a list of predetermined vendors.
3.24.070 Rosemead informal competitive purchasing procedure.
A. Uses of Rosemead Informal Competitive Purchasing Procedure: This informal purchasing
procedure shall be used for purchases between $5,001 and $25,000.
B. Contractor/Vendor List: The department shall maintain a list of qualified contractors.
C. Distribution of Notice Inviting Informal Bids: At least three (3) vendors or contractors shall be
asked to submit informal bids, and the City shall endeavor to receive informal bids from at least
three (3) vendors or contractors. Notices inviting informal bids shall be mailed to the list of
qualified contractors and/or trade journals not less than ten (10) days before bids are due.
D. Contents of Notice Inviting Informal Bids: When soliciting informal bids, staff shall: (1)
describe to the vendor in general terms the project, service or item; (2) advise vendors how to
obtain additional information about the project, (3) state the date, time and place for the
submission of bids; and (4) include any other information required by state or local law, as
determined by the City Attorney.
E. Proprietary Projects or Products: If the director of the using department certifies that, to the
best of his or her knowledge, the product or service is proprietary in nature and can be obtained
only from a limited number of contractors, and that no equivalent products or services are
available, the notice inviting informal bids may be sent exclusively to such vendor(s) or
contractor(s).
F. Contents of Remaining Bid and Contract Documents: The contents and form of the remaining
bid and contract documents shall be approved by the director of the using department, as well
as the City Attorney.
G. City's Authority: The City may reject any or all bids received, and may waive any minor
irregularities in each bid received.
H. Proposal Submittal: Contractors shall submit their proposals in writing.
1. No Bids Received: If no bids are received, the authorized contracting party may award the
contract by any alternative purchasing procedure.
3.24.080 Formal competitive purchasing procedure.
A. Uses of Formal Competitive Purchasing Procedure: This formal purchasing procedure shall
be used for purchases greater than $25,000 or whenever formal competitive purchasing is
otherwise required by this chapter.
B. Required Process: The formal competitive purchasing procedure shall comply with all
aspects of state and local law governing formal competitive bidding, including, but not limited to,
the Public Contract Code, Government Code, Labor Code, resolutions of the City Council as
may be adopted from time to time, and policies and procedures as the city manager may
approve from time to time.
C. Distribution of Notice Inviting Formal Bids: The notice inviting formal bids shall comply with
Section 22037 of the Act, as such section may be amended from time to time. For public
projects only, the notice inviting formal bids shall also be sent to all construction trade journals
specified in Section 22036 of the Act at least thirty (30) calendar days before the date of bid
opening. Any other notice as may be deemed proper may also be given for any particular
project.
D. Contents of Notice Inviting Formal Bids: At a minimum, the notice inviting formal bids shall:
(1) describe the project in general terms; (2) state how to obtain more detailed information about
the project; (3) state the date, time and place for the submission of sealed bids; and (4) include
any other information required by state or local law, as determined by the City Attorney.
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E. Contents of Remaining Bid and Contract Documents: The contents and form of the remaining
bid and contract documents shall be approved by the director of the using department, as well
as the City Attorney.
F. City's Authority: The City may reject any or all bids received, and may waive any minor
irregularities in each bid received.
G. Proposal Submittal: Contractors shall submit their proposals in writing.
H. No Bids Received: If no bids are received, the authorized contracting party may award the
contract by any alternative purchasing procedure.
3.24.090 Using alternative purchasing procedures.
For non-Public Projects and other situations provided in this section, an alternative purchasing
procedure which results in a negotiated contract, force account, purchase order or any other
procedure determined by the authorized contracting party to be in the best interests of the City
and in compliance with the City's policies and procedures may be used.
A. Emergencies: In situations determined by the city manager to constitute an emergency for a
public project pursuant to Section 22035 of the Act and Public Contract Code Section 22050.
The City Council hereby delegates to the city manager the power to declare a public emergency
and take any directly related and immediate action required by the emergency, up to a total of
one hundred thousand dollars ($100,000), pursuant to Section 22035 of the Act and Public
Contract Code Section 22050. Emergency expenditures of more than one hundred thousand
dollars ($100,000) shall first be approved by the City Council. Work shall be performed without
the benefit of competitive purchasing, either formal or informal, only so long as necessary under
those sections.
For projects of more than twenty-five thousand dollars ($25,000), a report on the emergency
and work performed shall be provided at the next regular meeting of the City Council, and then
at every meeting thereafter required by Section 22050. At such meetings, the City Council shall
determine, by a four-fifths (4/5) vote, that there is a need to continue the action without the
benefit of informal or formal competitive purchasing in accordance with Section 22035 of the Act
and Public Contract Code Section 22050. The City Council shall terminate the emergency
action at the earliest possible date that conditions warrant, so that the remainder of the
emergency action may be completed pursuant to a formal competitive purchasing procedure.
For projects of twenty-five thousand dollars ($25,000) or less, the city manager shall
determine, on his or her own as the action continues, whether there is a need to continue the
action without the benefit of public project informal competitive purchasing. The city manager
shall terminate the emergency action at the earliest possible date that conditions warrant, so
that the remainder of the emergency action may be completed pursuant to an informal
competitive purchasing procedure.
B. Professional Services: When purchasing professional services.
C. Computers: When purchasing computer software, hardware maintenance services or
software maintenance services.
D. Competitive Bidding Already Completed: When the authorized contracting party determines
that a competitive bid procedure has been conducted by another public agency (e.g. through
CMAS or GSA) and the price to the City is equal to or better than the price to that public agency.
E. State Purchase: When the purchase is made on behalf of the City by the State Department of
General Services.
F. No Bids Received: When no bids are received pursuant to either the public project informal
competitive purchasing procedure or the formal competitive purchasing procedure.
G. No Competitive Market: When the authorized contracting party determines that a competitive
market does not exist, such as, but not limited to, with memberships in certain professional
organizations, meetings, conventions, some forms of travel, legal advertising and when the
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needed supplies, services and equipment are proprietary and can only be provided by one
source.
H. Best Interests of the City: When the City Council, on recommendation of the city manager,
determines that an alternative procedure will be in the best interests of the City and the policies
set forth in this chapter.
3.24.100 Repealed
3.24.110 Repealed
3.24.120 Inspection and testing. (Not modified)
The Purchasing Officer shall inspect supplies and equipment delivered, and contractual
services performed, to determine their conformance with the specifications set forth in the order
or contract. The Purchasing Officer shall have authority to require chemical and physical tests of
samples submitted with bids and samples of deliveries which are necessary to determine their
quality and conformance with specifications. (Prior code § 2611)
3.24.130 Surplus supplies and equipment. (Not modified)
All using agencies 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 agency or which have become unsuitable
for city use, or to exchange the same for, or trade in the same on, new supplies and equipment.
Such sales shall be made pursuant to Sections 3.24.100 and 3.24.110, whichever is applicable.
(Prior code § 2612)
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0 0
RESOLUTION: 2008- 08
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROSEMEAD,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, IN THE MATTER OF
UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING PROCEDURES.
WHEREAS, prior to the passage of Assembly Billl 1666, Chapter 1054, Stats.
1983, which added Chapter 2 commencing with Section 22000 at Part 3 of Division 2 of
the Public Contract Code, existing law did not provide a uniform cost accounting
standard for construction work performed or contracted by local public agencies; and
WHEREAS, the commission established under the Act has developed uniform
public construction cost accounting procedures for implementation by local public
agencies in the performance or of in the contracting for construction of public projects;
and
WHEREAS, the alternative bidding procedures provided for under the Act allow
local public agencies to perform work by force account costing up to $15, 000.00 and to
let the contract by informal procedures public projects of $50,000.00 or less.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ROSEMEAD
HEREBY RESOLVES AS FOLLOWS:
Section 1. The City of Rosemead hereby elects under Public Contract Code
Section 22030 to become subject to the uniform public construction cost
accounting procedures set forth in the Act and to the Commission's policies and
procedures manual and cost accounting review procedures, as they may each
from time to time be amended, and directs that the City Clerk notify the State
Controller forthwith of this election.
Section 2. This Resolution shall take effect immediately.
PASSED, APPROVED AND ADOPTED this 22nd day of January 2008.
John Tran
MAYOR
Gloria Molleda
Acting City Clerk
• • ATTACHMENT C
CITY OF ROSEMEAD
PURCHASING POLICIES AND PROCEDURE MANUAL
SECTION 1: PURPOSE
The purpose of this policy is to provide the City of Rosemead a means of assuring
continuity and uniformity in its purchasing operation, and to define the
responsibilities for purchasing supplies, services, and equipment. These guidelines
are not intended to address every issue, exception, or contingency that may arise
in the course of purchasing activities. The basic standard that should always
prevail is to exercise good judgment in the use and stewardship of City Resources,
including keeping within the budget authorized by the City Council and
encouraging open competition.
SECTION 2: POLICY STATEMENT
Authority
The policy contained herein was developed under the authority of Chapter 3.24 of
the City of Rosemead Municipal Code (RMC)..The City Manager is designated as
the Purchasing Officer for the City and may delegate the administration of the
program. The Purchasing Officer/Designee is charged with the responsibility and
authority for coordinating and managing the procurement of the City's supplies,
equipment or routine services, according to the RMC and this policy and
procedures manual. The policy outlined herein is to be adhered to by the
Purchasing Officer and all City Departments when procuring supplies, equipment
and routine services. This policy strives to define decision making with prudent
review and internal control procedures and to maintain departmental responsibility
and flexibility in evaluating, selecting, and purchasing supplies, equipment, and
routine services.
Exclusions
Excluded from this policy is the purchase of supplies, equipment and routine
services, or general capital improvements which are included within the
specification of a 'Public Works Contract' and are subject to the regulations
contained in the State of California Labor Code Section 1720 - 1743. Also
excluded are items defined as a 'Public Project' under the State of California
Public Contract Code Section 20160 - 20175.
Generally any construction, alteration, repair, demolition, renovation, or
maintenance of a public project or a public works project paid for in whole or in part
out of public funds, which has an estimated value greater than five thousand
dollars ($5,000), shall be contracted for and let to the lowest responsible bidder by
procedures established in the State of California Public Contract Code which are
generally consistent with the Formal Bid Procedure or Formal Contract Procedure
under RMC Section 3.24.070.
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Purchasing Policies aTfd Procedure Manual •
Page 2 of 30
As an alternative, the City may initiate a "design - build" process through the
selection of a qualified consultant, pursuant to the State of California Government
Code Section 5956 through 5959.10. Under the "design - build" process, a public
works project or public project may be exempt from bidding requirements and other
requirements provided that the selected consultant was chosen on the basis of
competence and professional qualifications and that the work to be completed is to
be paid through fee producing infrastructure. To this end, should the City of
Rosemead initiate a "design - build" project, the process for-obtaining Professional
Services is outlined in Section 10, and shall be adhered to.
It should also be noted that the City recognizes the requirements of the state Labor
Code and Public Contract Code that require the payment of Prevailing Wages for
public works projects in excess of one thousand dollars ($1,000).
The City's Decentralized Purchasing System may only be dispensed with or
modified when other State, Federal, or Intergovernmental statutes, regulations, or
procedures prescribe that a specific separate purchasing process be followed or
when approved by the City Council. For example, Public Works projects or a public
project are governed by State Law and in some cases Federal Law. Another
example may be provisions for expending grant funds which may be covered by
separate Federal, State, and or Intergovernmental requirements which specify that
as a condition of contract award or funding that a specific purchasing process other
than the City's is to be followed. This includes but is not limited to transportation
projects or services funded by the Federal Transit Administration (FTA). The FTA
requirements are outlined in the "Required Third-Party Contract Clauses"
procurement document (hftp://www.fta.dot.gov/laws/circulars/leg reg 4063.html),
and specific contract- language and detailed information regarding each
requirement is included in the "Best Practices Procurement Manual"
(hftp://www.fta.dot.gov/funding/thirdPartyprocurement/grants financing 6037.html).
Modifications or deviations must be pre-approved by the City Manager and shall be
determined on a case by case basis.
Waiver of all purchasing system processes may only be granted by approval of the
City Council. A basis for requesting the waiver should be a unique cost savings
opportunity to the City.
Determination of Value
For purposes of determining the value of a proposed purchase so that it may be
categorized for processing through the City's Centralized Purchasing System, the
value of all proposed purchases or acquisitions shall be predicated upon a
separate "cost - price" basis. In determining which of the procurement procedures
listed in RMC Section 3.24 apply to any given purchase of supplies, equipment or
routine services, the total cost of the supplies or equipment shall not be used.
Instead the price of the supplies or equipment alone shall be the determining
factor. The price of an item may often be different from the final or total cost to the
City. The cost to be borne by the City through the financial transaction is in reality
Purchasing Policies 9d Procedure Manual •
Page 3 of 30
the entire City expenditure needed to acquire supplies, equipment, or routine
services. This may include sales tax or other costs.
Price shall be the direct cost of the good or service alone and the direct related
expenses. The price of an item should be considered. as the dollar amount
necessary to place the item in service or to perform under a contract. There may
be instances where there are additional incidental expenses directly related to the
acquisition of a good or service, examples may include installation or set up costs,
disposal fees, warranties or other such items. These incidental costs shall be
factored into the purchase and as such shall be a determining factor in the
acquisition price. Excluded from the price of an item shall be the expenses related
to shipping fees, postage, or sales taxes. These may be considered as universal to
all bids or quotes and therefore do not reflect competitive differences such as
variations in the quote or bid prices for installation or warranties.
From time to time, the'City may consider leasing or renting equipment as a basis
for savings. In that instance, the total value of the good, not the estimated lease
payment, shall determine which procurement procedure applies.
With regard to Professional/Special Services under RMC Section 3.24.070 and
3.24.080, the value of the services for purposes of determining which procurement
procedure applies shall be determined by adding the price of the services to be
provided with the cost of any equipment or supplies that will be provided to the City
by the Professional/Special service provider, postage, communications, or other
associated costs such as insurance shall not be included. For complete details on
the Purchasing Procedures and requirements for specific dollar amounts please
consult Section 7 of this Manual.
Conflict of Interest
Any employee or elected official of the City or any department thereof who shall aid
or assist a bidder or vendor in securing a contract to furnish supplies, materials,
equipment, or contractual services at a higher price than that proposed by any
other bidder/vendor, or who shall favor one bidder/vendor over another by giving or
withholding information, or who shall willfully mislead any bidder/vendor in regard
to the character of the materials or supplies called for, or who shall knowingly
accept commodities of a quality inferior to those called for by the contract, or who
shall knowingly certify to a greater amount of labor performed than has actually
been performed, or to the receipt of a greater amount or different kind of materials
or supplies than have actually been received, shall be deemed guilty of
malfeasance and the Purchasing Officer shall have the authority pursuant to the
City of Rosemead's Personnel System Rules and Regulations to take appropriate
disciplinary action. Such actions may also result in criminal prosecution.
Purchasing Policies •Procedure Manual •
Page 4 of 30
If at any time it shall be found that the person to whom a contract has been
awarded has in presenting any bid(s) or quote(s), colluded with any other party or
parties for the purpose of preventing any other bid or quote being made, then the
contract so awarded shall be null and void.
It is the intent that this purchasing policy, all procedures and processes discussed
herein, and each transaction entered into pursuant to Section 3.24 of the RMC
shall be made in accordance with the City's Conflict of Interest Code and all other
Federal, State, and local laws.
SECTION 3 - UNAUTHORIZED PURCHASES
Except for urgencies or other authorized exemptions stated in these guidelines, no
purchase of supplies, services, or equipment shall be made without authorization
as described within the manual or in Section 3.24.050 of the RMC. Under no
circumstances shall a purchase be considered approved or final until approved by
the City Council or Purchasing Officer as required by the appropriate purchasing
classification. No representative of the City shall enter into a verbal agreement or
make any arrangements, for any purchase of more than one thousand dollars
($1,000), until the final approval is granted.
In the event that an unauthorized purchase is made the following may apply:
A. Such purchases are void and not considered an obligation of the City.
B. Invoices without an authorization may be returned to the vendor unpaid.
C. The person ordering the unauthorized purchase may be held personally
liable for the costs of the purchase or contract.
Important: Purchase orders shall be issued prior to ordering supplies,
equipment and routine services and not "after the fact" for work already
done or materials or equipment already ordered.
SECTION 4 - RESPONSIBILITIES OF THE PURCHASING OFFICER
As described in the RMC Section 3.24.030, the Purchasing Officer is the City
Manager and he is authorized to delegate the duties of the Purchasing Officer to
any officer or employee of the City as long as the delegee provides a quarterly
report of purchasing activity to the City Manager. Although the duties can be
delegated, the City Manager remains responsible for the activities of the
Purchasing Officer.
The Purchasing Officer/Designee is responsible for 1) the procurement of general
supplies, equipment and routine services; 2) the administration of the purchasing
policy; and 3) the management of surplus City property. To perform these functions
efficiently and assist departments, the Purchasing Officer/Designee shall include,
but not necessarily be limited to, the following:
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A. Purchase or contract for supplies, services and equipment required by any
using agency in accordance with purchasing procedures prescribed by this
chapter, such administrative regulations as the Purchasing Officer shall
adopt for the internal management and operation of the Purchasing
Department and such other rules and regulations as shall be described by
the City council;
B. Negotiate and recommend execution of contracts for the purchase of
supplies, services and equipment;
C. Act to procure for the City the needed quality in supplies, services, and
equipment at least expense to the City;
D. Discourage uniform bidding and endeavor to obtain as full and open
competition as possible on all purchases;
E. Prepare and recommend to the City Council rules governing the purchase of
supplies, services and equipment for the City;
F. Prepare and recommend to the City Council revisions and amendments to
the purchasing rules;
.G Keep informed of current developments in the field of purchasing, prices,
market conditions and new products;
G. Prescribe and maintain such forms as reasonably necessary to the
operation of this chapter and other rules and regulations;
H. Supervise the inspection of all supplies, services and equipment purchased
to insure conformance with specifications;
Recommend the transfer of surplus or unused supplies and equipment
between departments as needed and the sale of all supplies and equipment
which cannot be used by any agency or which have become unsuitable for
City use;
J. Maintain a bidder's list, vendor's catalog file and records needed for the
efficient operation of the purchasing department;
SECTION 5 - RESPONSIBILITIES OF CITY DEPARTMENTS
City Departments are charged with the following responsibilities in the purchasing
process:
A. To provide the Purchasing Officer/Designee at the beginning of each fiscal
year, an updated authorized signature list designating those individuals who
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are delegated the authority to make purchases per the policies and
procedures as described herein.
B. To anticipate requirements sufficiently in advance to allow adequate time to
obtain goods in accordance with the best purchasing practices.
C. To communicate and coordinate purchases with the Purchasing
Officer/Designee, as necessary.
D. To provide detailed, accurate specifications to ensure goods obtained are
consistent with requirements and expectations.
E. To prepare requisitions in accordance with instructions so as to minimize
the processing effort.
F. To inform the Purchasing Officer of any vendor relations problems, shipping
problems (i.e., damaged goods, late delivery, wrong items delivered,
incorrect quantity delivered, etc.) and any situations which could affect the
purchasing function.
G. To minimize urgent and sole source purchases and to provide written
documentation when such purchases may be necessary.
H. To review all bids received for compliance with specifications, and provide
the Purchasing Officer with written documentation regarding their findings.
To notify bidders or vendors of purchase award when authorized by
Purchasing Officer or City Council depending on the appropriate Purchasing
System Classification for approval.
J. To refrain from "splitting" orders for the purpose of circumventing
procurement requirements.
K. To ensure that the proper account numbers are noted on the purchase
order form.
L. To ensure that there is sufficient unencumbered funds in the account
numbers to be charged.
M. To include a completed budget amendment form when necessary.
SECTION 6 - VENDOR RELATIONS
It is to the City's advantage to promote and maintain good relations with vendors.
The Purchasing Officer and City staff shall conduct their dealings with vendors in a
professional manner and shall promote equal opportunity and demonstrate
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fairness, integrity, and courtesy in all vendor relations. When feasible to do so,
vendors within the City of Rosemead should be utilized for supplies, services, and
equipment. However, good vendor relations must also be balanced with fair and
equitable selection, the lack of which may lead to possible conflicts of interest or
the appearance as such.
SECTION 7 - PURCHASING PROCEDURES
As previously mentioned, purchasing and the process by which a good or service
is acquired is based upon its price. Purchasing dollar limits are "per order".
Purchasing Ordinance prohibits "splitting" an order to circumvent the specified
dollar limits. Departments shall contact the Purchasing Officer to coordinate
volume bids of repetitive requirements (i.e., the frequent purchase of items such as
chemical, paper goods, etc., which annually exceed the specified limits).
All personnel utilizing Homeland Security Grant funds must review the Federal
Excluded Parties List System to ensure compliance with the Federal procurement
program policies and requirements. Prior to authorizing a requisition for equipment
purchases for Homeland Security Grants, the Federal debarment listing must be
reviewed to ensure vendor(s) are not listed. The debarment listing is available
online at htto://www.er)ls.oov/er)ls/search.do.
Purchases of No More than $5,000 - Department Director
Purchases of no more than five thousand dollars ($5,000) shall be exempt from the
City's Purchasing Program to the extent that authority to execute the purchase is
with the Using or Requesting City Department, this shall be referred to as the
"Department Director Purchase" process. Although purchases up to five thousand
dollars are exempt from many procedures required for higher cost items, every
effort to utilize a local vendor shall be exercised or to utilize the most cost efficient
vendor shall be exercised. For purchases up to five thousand dollars ($5,000), the
authority to award a purchase order is the Department Head's. Comparative
pricing is not required but shall be used when practical. Prudent judgment shall be
used at all times. City departments may purchase supplies, equipment, and
services, up to five thousand dollars ($5,000) without competitive bidding
provided that an unencumbered appropriation for the item exists in the
current approved budget.
Purchases between $5,000.01 and $25,000 - Direct Competitive Procedure
Except as otherwise exempted in the RMC, supplies, equipment and routine
services, with an estimated value of five thousand dollars and one cent ($5,000.01)
to twenty-five thousand ($25,000) shall be purchased following a Direct
Competitive Procedure. For purchases in the amount of $5,000.01 - $25,000 the
authority to award is the Purchasing Officer's. Department staff shall not award
purchase orders for $5,000.01 or more without the approval of the Purchasing
Officer or Designee.
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The Requesting Department shall obtain three oral or written competitive
quotations whenever possible for purchases. Getting more quotations is
encouraged. In the event that three quotes cannot be obtained, documentation of
the process should indicate why less than three were obtained, and should be
attached with the purchase order request.
The Requesting Department shall submit a requisition, which includes the
recommended vendor, with all supporting documentation to the Purchasing Officer
or Designee. Supporting documentation shall include competitive price quotes
obtained, names of vendors contacted, description of the items required, and
certificates of insurance as applicable. The Purchasing Officer or Designee shall
review the recommendation and supporting documentation. The Purchasing
Officer or Designee may award the purchase to the lowest responsive and
responsible vendor whose quote fulfills the intended purpose, quality, and delivery
needs of the solicitation provided that an unencumbered appropriation for that item
exists. The Purchasing Officer or Designee may also reject quotes or request that
the Department negotiate further to obtain terms more acceptable to the City. The
Purchasing Officer or Designee may also determine that the interest of the City is
best served to require the Formal Contract Procedures for purchases within this
range.
Purchases of $25,000.01 or More - Formal Contract Procedures (Formal Bid)
The following excerpt, RMC Section 3.24.080, provides details for Formal Bid
Purchases:
"A. Uses of Formal Competitive Purchasing Procedure: This formal purchasing
procedure shall be used for purchases greater than $25,000 or whenever formal
competitive purchasing is otherwise required by this chapter.
B. Required Process: The formal competitive purchasing procedure shall comply with
all aspects of state and local law governing formal competitive bidding, including, but
not limited to, the Public Contract Code, Government Code, Labor Code, resolutions
of the City Council as may be adopted from time to time, and policies and
procedures as the city manager may approve from time to time.
C. Distribution of Notice Inviting Formal Bids: The notice inviting formal bids shall
comply with Section 22037 of the Act, as such section may be amended from time to
time. For public projects only, the notice inviting formal bids shall also be sent to all
construction trade journals specified in Section 22036 of the Act at least thirty (30)
calendar days before the date of bid opening. Any other notice as may be deemed
proper may also be given for any particular project.
D. Contents of Notice Inviting Formal Bids: At a minimum, the notice inviting formal bids
shall: (1) describe the project in general terms; (2) state how to obtain more detailed
information about the project; (3) state the date, time and place for the submission of
sealed bids; and (4) include any other information required by state or local law, as
determined by the City Attorney.
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E. Contents of Remaining Bid and Contract Documents: The contents and form of the
remaining bid and contract documents shall be approved by the director of the using
department, as well as the City Attorney.
F. City's Authority: The City may reject any or all bids received, and may waive any
minor irregularities in each bid received..
G. Proposal Submittal: Contractors shall submit their proposals in writing.
H. No Bids Received: If no bids are received, the authorized contracting party may
award the contract by any alternative purchasing procedure. "
Additional Bid Procedures
A. Bid numbers will be given to each project and should be obtained from the
City Clerk's Office (i.e., NIB 2008-01). The bid number should be included as
part of the request for proposal/quotation.
B. All bids should be scheduled to be due on Wednesdays at 10:30a.m. and will
be publicly opened at 11:00a.m. that same day.
C. Bids will be received at the City Clerk's counter anytime up until the deadline.
They may be received by mail, Federal Express, walk-in, etc. and will be date
and time stamped immediately upon their arrival. Sealed bids shall be marked
with the "BID", bid number, and a description of the project or item. Bids will
remain sealed until time of bid opening. If a bid is received before the
deadline and a bidder wants it returned, it is permissible. If the bid is
resubmitted, it will be time stamped with the new time. All bids received after
the specified bid opening time shall be returned unopened.
D. At the designated time, bids will be opened in public by the City Clerk and/or
the Assistant to the City Clerk. The number of bids received will be
announced, as well as the name of the bidders. If a bid bond or cashier's
check is required, the declaration will be made that the bid bond is in order
and the total bid amount will be announced. If a bid bond or cashier's check
is required but was not submitted with the bid, the bid will be rejected.
Additional staff presence at the bid opening is not necessary, although staff is
welcome to attend.
E. After bid openings, bids will be available for review at the City Clerk's office
and copies may be requested at a cost of $0.15 per page.
F. The initiating department or division (i.e., Engineering), will be given copies of
the bids for evaluation, and is responsible for making any recommendations
to the City Council concerning the award of the bid.
G. Bids are not awarded until they are placed on a City Council or RCDC
meeting agenda and approved by the City Council. Upon award of the
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contract, the unsuccessful bidders will be notified by letter of non-acceptance
and their bidder's security returned.
County Lobbying Certification Form
All contractors shall submit a County Lobbying Certification Form to the City when
a contract is awarded using Community Development Block Grant (CDBG) funds
(Attachment A).
SECTION 8 - DETERMINATION OF CONTRACT OR PURCHASE AWARD
Generally an award shall be made to the lowest responsive and qualified bidder or
vendor. This shall be the case for the Direct Competitive Procedure as well as the
Formal Contract or bidding Procedure.
In determining the lowest "responsive" bid or quote, the following elements shall be
considered in addition to price;
(1) A responsive bid or quote is one which is in substantial conformance with
the requirements of the invitation to bid or quote, including specifications
and the City's contractual terms and conditions;
(2) Vendors/bidders who substitute terms and conditions or who qualify their
bids or quotes in such a manner as to nullify or limit their liability shall be
considered non-responsive vendors/bidders;
(3) Conformance with the requirements of the invitation to bid or supply a quote
may also include providing proof of insurance, completing all forms,
including references, and all other information as requested in the bid or
solicitation document; and,
(4) The successful vendor/bidder must demonstrate the ability to successfully
fulfill a contract, including rendering of subsequent and continuing service.
Staff may request proof of a prospective vendor/bidder's reliability.
Prospective vendors/bidders may be requested to furnish proof of financial
resources, a list of current or previous customers, and other pertinent data.
Such action may also be taken after receipt of bids or price quotes.
A vendor/bidder may be determined to be non responsive if a prospective bidder
fails to furnish proof of qualifications when required.
In determining the lowest "qualified" vendor/bidder, the following elements shall be
considered:
(1) That the products offered provide the quality, fitness, and capacity for the
required usage;
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(2) That the vendor/bidder has the ability, capacity and skill to perform the
contract satisfactorily and within the time required; and,
(3) That the vendor/bidder's experience(s) regarding past purchases by the City
or other public agencies demonstrates the reliability of the vendor/bidder to
perform the contract.
When a purchase award bid is recommended to be awarded to other than the
lowest vendor/bidder, written justification is required. The written statement, signed
by the appropriate department head, shall be attached to the purchase requisition.
Resection of Bids or Quotes
The Purchasing Officer or the Requesting Department may recommend rejection
of any or all bids or quotes to the City Council if it is determined to be in the best
interests of the City. The City Council may also recommend rejecting any or all
bids or quotes at their discretion. Reasons for rejection may include, but are not
limited to, the following: a bid or quote is determined to be non-responsive, the
number of bids or quotes received is inadequate, bids or quotes received are not
reasonably uniform in price, or the lowest bid or quote received is deemed to be
too high. The Purchasing Officer and/or City Council may, in any given case, reject
all bids or quotes with or without cause and submit the supplies, equipment or
service involved to a new bidding or price quotes solicitation process. If all bids or
quotes are rejected, the Purchasing Officer may be authorized to re-solicit bids,
negotiate a contract for the purchase, or abandon the purchase.
Tie Bids or Quotes
If two or more bids or quotes are received which are in all respects equal in price
and meeting all specifications, the Requesting Department may accept the one
deemed to be in the best interests of the City by the City Council.
Change Orders
A. After the effective date of any contract executed on behalf of the City for the
purchase of equipment or supplies or retention of professional or other
services, or construction work on a public works project, the City Manager
shall have authority to approve in writing any modification involving an
addition to, deletion from, or revision in any item in such contract, including,
without limitation, plans, specifications and extra work, and change orders
relating to the nature or quantity of services, equipment, supplies or work, in
accordance with the Standard Specifications for Public Works Construction
("Greenbook") 2006 edition or latest edition: The dollar amount of all such
modifications or change orders relating to any one contract shall not exceed
twenty five percent (25%) of the original contract price. Any modifications or
change orders above this amount shall require City Council approval.
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B. The authority herein conferred upon the City Manager may, in the sound
discretion of the City Manager, be delegated in whole or in part to a
Department Manager or other designated employee or agent of the City.
C. An appropriate contract change order form shall be used for approval of
change orders. The form shall detail the reasons,for the proposed change,
description of the change, change in contract cost, extension in contract
time (if warranted), and new contract total cost including all prior change
orders. The contract change orders shall be signed by the project manager,
contractor, Department Director and City Manager.
D. In connection with any specific contract where the circumstances so
warrant, the City Council may, by resolution, authorize the City Manager to
exceed the specific dollar amounts or percentage limitations set forth in
subsection 8.A of this section.
E. If a proposed contract modification, change order or request for extra work
exceeds the limitations imposed upon the City Manager by this section or by
resolution, and any extended delay in obtaining.City Council approval is
reasonably determined to subject the City to liability for damages incurred
by a contractor, or jeopardize the public health, welfare or safety, or to
otherwise result in potential detriment to the City, then the City Manager
shall have authority to exceed the dollar amounts or percentage limitations
specified herein.
Taxes, shipping and handling may cause the purchase order to exceed the
authorized purchase order amount. These items do not require a Change Order.
SECTION 9 - PROCUREMENT METHODS
Except as described below, the purchases of supplies, routine services and of
equipment should be purchased using a contract or a purchase order. Please
refer to Attachment B, Purchasing Checklist for purchases made using a purchase
order.
Blanket Purchase Orders
A Blanket Purchase Order is an agreement whereby the City contracts with a
vendor to provide equipment or supplies on an as-needed or ongoing Department
Director basis. These items would typically be less than $1,000 per order and
therefore would be exempt from Centralized Purchasing. Blanket Purchase Orders
provide a mechanism whereby items that are uneconomical to stock may be
purchased in a manner that allows timely access to necessary materials.
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The Purchasing Officer shall review Blanket Purchase Orders annually, before the
beginning of the fiscal year. Requests for Blanket Purchase Orders may also be
submitted to the Purchasing Officer by a Requesting Department on an as-needed
basis. The Purchasing Officer shall review Blanket Purchase Order requests based
upon the following criteria:
1. Average dollar value and type of items to be purchased.
2. Frequency of need.
All Blanket Purchase Orders shall include the following information
a. A general description of the equipment or supplies that may be charged.
b. The period of time the order will remain open, but not beyond the end of
each fiscal year.
C. The maximum total amount that may be charged on the purchase order.
d. The maximum amount which may be charged each time the employee
implementing a purchase enters the vendor's place of business.
e. Items excluded from the purchase, if applicable.
f. The phone number of the Purchasing Officer or Designee for questions or
approval of charges that exceed the limit.
g. Identification of the department(s) and employee(s) who may charge against
the order.
h. Requirement that the employee shows City identification.
i. Requirement that employees print and sign their names when picking up
goods.
j. Account number(s) to be charged.
Once a Blanket Purchase Order is issued to a vendor, any authorized City
employee may contact the vendor directly to place orders per the terms and
conditions specified in the Blanket Purchase Order. City Departments are
encouraged to develop a list of eligible employees that may purchase through the
Blanket Purchase Order and keep it on file with the vendor or business.
Contract Purchase Orders
Contract Purchase Orders are the preferred method of acquiring goods or services
which may be common to several City Departments. Entering into a contract
purchase order is generally done to acquire goods or services which may be used
repetitively and would ordinarily fall into the Centralized Purchasing - Open Market
Procedure category. In some instances, based on the value of the items, the
contract purchase order may be applicable to items solicited under the Formal
Contract Procedure.
Establishing. Contract Purchase Orders provides a means of obtaining volume
pricing based upon the combined needs of all City Departments. They reduce the
administrative costs associated with seeking redundant competitive quotes or bids
and processing a Purchase Order each time an order is placed, and they allow City
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Departments to order as needed, reducing the requirement to maintain large
inventories of stock. When soliciting quotes or bids and with the intent of entering
into a Contract Purchase Order the specifications in the Open Market quote or
Formal Contract Bid shall specify that the City is seeking to enter into a contract
purchase order. The Requesting Department should seek to involve local bidders
or vendors as much as possible and the local business preference may apply. The
Requesting Department should also seek to avoid "splitting" an order for the
purposes of following a less stringent Centralized Purchasing Process - most likely
attempting to avoid going to bid under the Formal Contract Procedure. For
example, if a Requesting Department has specified in an approved budget that
they need ten items costing one thousand two hundred dollars each there may be
options in when and how they are solicited. If all ten are needed at one time the
dollar amount would require that a Formal Contract Procedure be followed to
obtain bids. If however there is an expectation that not all will be purchased or
they will only be purchased as needed then the Open Market Procedure would
apply and the Requesting Department may enter into a Contract Purchase Order
to obtain the items when needed.
If a Contract Purchase order exists, departments shall order all of their
requirements from the successful vendor. No other source shall be used without
prior approval of the Purchasing Officer. Departments shall submit, in writing to the
Purchasing Officer, any performance problem encountered immediately following
the occurrence so that corrective action may be taken.
Contract Purchase Orders are annual and may include option for renewal for
specific products, product types, or services at agreed upon prices or pricing
structure and for a specified period of time. No contract shall exceed five (5) years
in duration.
Departments must prepare purchase orders for the full amount of the contracts.
Contracts for $25,000 or less may be signed by the City Manager and approved as
to form by the City Attorney. Contracts greater than $25,000 must always be
approved by City Council.
Cooperative Purchases
The City may participate in purchases and contracts established by other political
jurisdictions, provided the cooperative agreement is established following a
competitive bid process similar to the City's Formal Contract Procedure. The
Purchasing Officer or Designee may authorize the award of cooperative purchase
agreements up to $25,000. City Council approval is required for the award of any
cooperative purchase of $25,000.01 or more.
Sole Source Purchases
Commodities and services that can be obtained from only one vendor are exempt
from competitive bidding. Sole source purchases may include proprietary items
sold directly from the manufacturer, items that have only one distributor authorized
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to sell in this area or a certain product is proven to be acceptable. All sole source
purchases shall be supported by written documentation signed by the appropriate
department head and forwarded to the Purchasing Officer. Final determination of
whether or not an item is a valid sole source purchase will be made by the
Purchasing Officer or Designee.
Urgency Purchases
Urgency purchases may be made without competitive bidding when time is of the
essence, and shall be made only for the following reasons:
1. To preserve or protect life, health or property; or
2. Upon natural disaster; or
3. To forestall a shutdown of essential public services.
Since urgency purchases do not normally provide the City an opportunity to obtain
competitive quotes or properly encumber funds committed. Sound judgment shall
be used in keeping such orders to an absolute minimum. In addition, the following
requirements shall apply:
1. The Finance Department shall be contacted as soon as possible for an
advance purchase order number, which may be given verbally, to cover the
urgent transaction. If unable to contact the Finance Department, place the
order and contact the Finance Department the next workday.
2. A completed purchase requisition shall be submitted to the Purchasing
Officer within two working days, or as soon as the information is available.
All purchase requisitions for urgent purchases shall be signed by the
appropriate department head.
3. Documentation explaining the circumstances and nature of the urgency
purchase shall be submitted by the appropriate department head as follows:
a) Purchases equal to or less than $5,000: Use standard purchasing
procedures.
b) Purchases in the amount of $5,000.01 - $25,000: Report to the
Purchasing Officer by processing a requisition within one week.
C) Purchases of $25,000.01 or more: 1) Requires City Manager
approval prior to purchase, and (2) Report to City Council within two
working days.
4. If the urgency purchase causes any budget line item to exceed the
approved budget, it shall be the responsibility of the department requesting
the purchase to obtain advance City Council approval for an additional
appropriation or to make a transfer to cover the purchase.
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Purchase Order Exemptions
Certain purchases are not readily adaptable to the open market and formal bidding
process. These purchases are generally for items where the competitive bid
process or obtaining quotes is not applicable or where a check is required to
accompany the order. Following is a list of allowable exemptions:
Advertising and Notices
Medical Payments (Physicians, Lab
Courier/Delivery/Messenger
Membership Dues
Department Purchases
(under $500
Payments to other Governmental
Units
Emergency Fuel Purchases
Petty Cash Replacement
Insurance Claim Payments
Property
Utility Payments
Trade Circulars or Books
Real-property/easement
Acquisition
Travel expense/Advances
Subscriptions
Exemptions are limited to those items listed above. Departments may submit
written requests for additional exemptions to the Purchasing Officer. If warranted,
additional exemptions will be added to this list.
If a vendor requires a Purchase Order to process an order, the department shall
submit a purchase order requisition to the Purchasing Officer to initiate a purchase
order.
In an instance where a vendor does not accept Purchase Orders and payment is
required before a good or service is rendered a request may be made for a check
to be issued. The preferred method of issuing a check shall be through the
warrants process. However in some instances a "pre-issue check" may be
prepared and issued by the Finance Department. A check or pre-issued check
shall only be prepared if Department Head approval accompanies the request and
there are sufficient funds available in the designated account to make the purchase
(Refer to Exhibit "C" for pre-payment request checklist (to be created)).
Petty Cash Procedures
Each department shall assign a petty cash fund Custodian. Cash is to be kept in a
locked metal box or drawer which is to remain locked at all times, except when
cash is being disbursed. The only person with access to the key is the Custodian
or his/her designated backup person. Cash advances can only be disbursed to City
employees or officials. The two types of uses of petty cash are discussed below:
Cash Advance Requirements:
1. Written approval of the purchase by the Department Supervisor.
2. The advance may only be used for the pre-approved purpose.
3. Pre-approval will be outstanding for no more than two (2) working days.
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4. Purchaser,must sign "Advance for Purchase" voucher.
5. Purchaser must update voucher information and return unspent cash.
6. Purchaser must attach original receipt to voucher.
7. Account number must be written on updated voucher.
8. The maximum amount for each advance is fifty dollars ($50).
Reimbursement after Purchase:
It shall be acceptable, with Department Supervisor approval, for a City employee or
official to make a purchase using his or her own funds by way of cash, check,
credit or debit card to acquire goods or services on behalf of the City for which the
individual will be reimbursed. The following is a list of requirements for petty cash
reimbursements:
1. Original receipt is attached to a petty cash voucher with account number.
2. Obtain Department Supervisor's written authorization for the purchase.
3. Must be an appropriate petty cash purchase.
4. Purchaser and Department Supervisor must sign petty cash receipt.
5. The maximum per transaction amount that can be reimbursed is fifty dollars
($50).
Departments shall determine when it is appropriate for a City Employee to
purchase an item on behalf of the City. This process should not be used as a
common practice and in general, Department Supervisor approval should be
granted prior to the Employee or Official initiating the purchase on behalf of the
City. Personal checks shall not be cashed using petty cash.
Petty cash funds should be replenished by submitting a "Demand for Payment"
form, signed by the Department Head, with original receipts attached in time to be
included with the regular check processing cycle. Requesting "pre-issue" checks is
discouraged but will be honored under urgency circumstances, with Finance
Director approval.
The balance of cash, receipts and outstanding advance forms must always total
the amount allotted to each specific petty cash box. From time to time, for internal
control purposes, Finance Department staff will audit the contents of the petty cash
boxes and document their findings for City auditor review.
Vendor Assistance in Writing Specifications
There may be occasions when vendor assistance is required to develop a
specification. Such specifications shall be written in general terms and the vendor
shall be informed that, the information they provide may be used to develop
specifications for a competitive bid process. The vendor shall be allowed to submit
a bid, but will not be given any preference over the other bids.
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Credit Card Usage
Under certain circumstances, the use of a City issued credit card may be the most
appropriate method for certain purchases. The use of a City bank credit card
should not be used as a shortcut of the Accounts Payable cycle. In other words,
their use should be the last resort.
SECTION 10 - PROFESSIONAL SERVICES - CONSULTANT SELECTION
Selection of Consultants or Vendors for Professional Services (General)
The following criteria shall be used to determine approval authority for Professional
Consultant Service Contracts:
a. Qualifications: In contracting for professional/special services, such
contracts should only be awarded to firms or persons who have
demonstrated adequate levels of experience, competence,
resources/equipment, staffing and other professional qualifications
necessary for more than a satisfactory performance of the services required
in the time period needed.
b. Cost: Once the department or agency requesting the professional/special
service has determined that a firm has an adequate level of competence,
the cost of the service may be considered, however, price may not. be the
sole factor in determining to whom a contract shall be awarded. The City's
best interests may be served by awarding the contract to a higher priced
contractor based on the scope of services available, unique skills, staffing
levels, timing, prior experience, past working relationship, and other factors
required by the department or proposed by the contractor.
C. Request for Proposal/Qualifications: The acquiring of professional/special
services shall be procured through a negotiated contract and should include
requests for proposals/qualifications (RFP/Q). Soliciting bids for
professional/special services is decentralized and shall be the responsibility
of the department director requesting the service. The purchasing officer
may be contacted to assist in the formal request for proposal/qualification
(RFP/Q) process.
d. Contracts for Twenty-live Thousand Dollars ($25, 000) or Less:
1. In non-emergency situations, the requesting department should
.contact a minimum of three (3) consultants/firms.
2. Unless the city council authorized the entering into or the award of a
specific contract for professional/special services, the purchasing
officer shall approve in writing the award of all such contracts, taking
into consideration the recommendation of the department director
requesting the professional/special services at issue.
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3. The purchasing officer or his/her duly authorized designee is
authorized to approve professional/special service contracts with an
estimated cost of twenty-five thousand dollars ($25,000.00) or less.
e. Contracts Over Twenty-five Thousand Dollars ($25,000): In non-emergency
situations, departments should utilize the following sealed request for
. proposal process:
1. RFP/Q Solicitation Process: A formal sealed request for proposal
qualification (herein "RFP/Q") document should be developed for
solicitation of professional services contracts over twenty-five
thousand dollars ($25,000.00).
2. Advertisement: The department should advertise in appropriate
publications and/or use the professional services listings, as
available, during the solicitation process.
3. Fourteen (14) To Twenty One (21) Day Notice: Notice inviting
RFP/Q's should be posted at City Hall and on the City's website at
least fourteen (14) calendar days before the due date of submission
of the RFP/Q.
4. Notice Contents: The notice shall at least describe the general type
of service needed, how the RFP/Q minimum scope of work can be
obtained, the requirement of a written sealed proposal, state the
closing date, place, and time for submission of the RFP/Q.
5. Solicitation Procedure: Sealed request for proposals/qualifications
should be submitted directly to the requesting department. RFP/Q's
need not be opened publicly. Departments shall analyze proposals
for compliance with RFP/Q requirements, value of the total scope of
services and make a recommendation to city council for selection, or
for follow up interviews of those submitting proposals.
6. Award: Contracts for professional/special services in excess of
twenty-five thousand dollars ($25,000.00) require the approval of the
city council and the signature of the mayor, or in his/her absence, the
mayor pro tempore, pursuant to the provisions of Government Code
sections 40601 and 40602.
f. Standard Form: Contracts for professional/special services should be on the
City's standard form and shall be reviewed and approved as to form by the
City Attorney.
Purchasing Policies. Procedure Manual •
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Selection of Consultants or Vendors for Professional Services for Capital
Improvement Projects
In general Capital Improvement Projects are most likely to fall within the category
of a Public Project or Public Works as defined specification of and are subject to
the regulations contained in the State of California Labor Code Section 1720 -
1743, or California Public Contract Code Section 20160 - 20175. These are
excluded from the Purchasing System of the City. The exception is any project that
is to be implemented following the "design - build," process through the selection
of a qualified consultant, pursuant to the State of California Government Code
Section 5956 through 5959.10.
Under the "design - build" process, a public works project or public project may be
exempt from bidding requirements and other requirements provided that the
selected consultant was chosen on the basis of competence and professional
qualifications and that the work to be completed is to be paid through fee
producing infrastructure. To this end the following procedures shall be followed
when selecting a consultant to perform "design - build" Capital Improvement
Projects:
1. After the City Council adopts the next year's Capital Improvement Program
(CIP), the Public Works Director/City Engineer shall develop a list of
projects recommended for staff to determine the selection of consultants or
vendors.
2. Consultant or vendor selection shall be from a list of qualified professionals
prepared by the appropriate City Department Head responsible for the
project.
3. If the project is to be reviewed by a formal presentation and interview
process will be arranged by the appropriate City Department Head who
reports the particular Committee or Commission. The Purchasing Officer
may also assign staff as appropriate in this process. If the project is to be
reviewed by City staff the Purchasing Officer will determine the RFP review
process and who should be involved.
Selection of Professional/Special Services for Continuing Service Providers
The following shall apply to the selection of Professional/Special services which
are needed on a continuous or project-by-project basis.
Professional firms and persons providing attorney, architect, engineer, land
surveyor, construction manager, appraiser, expert, accounting firm, consultant or
those services such as computer services, security services and other services
which require in addition to the use of special or specific equipment, special
performance criteria, specific experience, training, personal judgment, quality of
work or factors other than simply obtaining service at the lowest cost to the City or
other professional/special services may be retained on a continuing basis to
Purchasing Policies a•Procedure Manual •
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provide professional services. The City Department Head, with the approval of the
Purchasing Officer, may contract on a project-by-project or on a retainer basis for
additional work/services without going through the RFP and selection process. At
least every three years these arrangements shall be reviewed and every effort
shall be made to receive proposals from at least three consultants to perform the
same services. This is to ensure the City is receiving the best value and there is no
stoppage in the provision of these.services.
At the beginning of each fiscal year, the Finance Department shall make a written
request to each City Department Head to submit to the Finance Department a list
of consultants currently providing professional/special services under contract to
their department. The list shall set forth the name of the person(s) or firm(s)
providing services and shall state the type of services provided and shall state the
contract cost, contract length, contract commencement date and the number of
years the consultant has been retained by the City.
Exclusions:
1. The process of selecting environmental impact report consultants for non
City projects shall be conducted by the Planning Services Manager/or
Assistant City Manager due to time restraints and application processing
requirements. The final consultant selection and fee shall be reviewed and
approved by the Purchasing Officer.
2. City Council shall also review and approve each bond issue in concept with
approval for the selection of certain professional consultants, as needed, to
be selected by the Chief Financial Officer as approved by the Purchasing
Officer.
SECTION 11 - SURPLUS PERSONAL PROPERTY
The Purchasing Officer is responsible for the transfer and disposition of surplus
City property. "Surplus property" is used generically to describe any City personal
property that is no longer needed or useable by a Using or Holding Department of
the City. The Purchasing Officer or Designee shall request City Council approval to
declare item(s) surplus. (RMC 3.24.130)
Methods of Disposition
The Purchasing Officer or Designee shall determine or approve one of the
following methods of disposition that is most appropriate and in the best interests
of the City.
1. Transfer to another Department: Surplus property may be transferred
between City Departments. Departments wishing to transfer surplus
property to or from another department. shall complete the Surplus Property
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Form and submit it to the Finance Department for review. All transfers of
items with an estimated value of $1,000 or more require approval of the
Department Heads from each department affected by the transfer.
2. Trade-In: Property declared as surplus may be offered as a trade-in for
credit toward the acquisition of new property. All trade-in offers will be
submitted for the review and approval of the Purchasing Officer. If surplus
property is to be applied to a purchase order, the trade-in value shall be
itemized on the Purchase Order. The amount charged against the
expenditure account will be the value of the purchase before application of
the trade-in credit.
3. Disposal: Surplus property may be offered for sale by the Purchasing
Officer. All surplus property is for sale "as is" and "where is", with no
warranty, guarantee, or representation of any kind, expressed or implied, as
to the condition, utility or usability or the property offered for sale.
Appropriate methods of sale are as follows:
(a) Public Auction - Surplus property may be sold at public auction.
Public Auctions may be conducted by City staff, or the City may
contract with a professional auctioneer including professional auction
services.
(b) Sealed Bids - Sealed bids may be solicited for the sale of surplus
property. Surplus property disposed of in this manner shall be sold to
the highest responsible bidder.
(c) Selling for Scrap - Surplus property may be sold as scrap if the
Purchasing Officer deems that the value of the raw material exceeds
the value of the property as a whole.
(d) Negotiated Sale - Surplus property may be sold outright if the
Purchasing Officer determines that only one known buyer is available
or interested in acquiring the property.
(e) No Value Item - Where the Purchasing Officer determines that
specific supplies or equipment are surplus and of minimal value to
the City due to spoilage, obsolescence or other cause or where the
Purchasing Officer determines that the cost of disposal of such
supplies or equipment would exceed the recovery value, the
Purchasing Officer shall dispose of the same in such a manner as he
or she deems appropriate and in the best interest of the City.
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Proceeds
Proceeds from the sale or trade-in of surplus property shall be returned to the
appropriate fund unless otherwise approved by the City Council.
SECTION 12 - GLOSSARY OF PURCHASING TERMS
AGREEMENT An understanding or arrangement between two or more
parties. Also see "Contract" and "Purchase Order".
APPROPRIATION City Council authorization to expend public funds for a specific
purpose.
AS IS A term indicating that goods offered for sale in existing
condition are without Warranty or Guarantee.
AWARD The acceptance of a Bid, Quote, or Proposal.
BID The executed document submitted by a Bidder in response to
Notice Inviting Bids (NIB), a Proposal, or a Requests for
Quotations.
BIDDER A person or legal entity who submits a bid in response to a
solicitation. See Bid or Proposal.
BLANKET PURCHASE
ORDER An Agreement of no more than one year between the City and
a Vendor allowing authorized City employees to charge
repetitive Purchases of supplies, equipment or services at pre-
arranged prices, dollar limits and/or other terms and
conditions.
BRAND NAME A trade name which serves to identify a product or particular
manufacturer.
CHANGE ORDER Written modification or addition to a Purchase Order or
ContractlAgreement authorized by the appropriate authority.
CITY City shall mean the City of Rosemead, and other such
districts, authorities, or agencies as may be governed by the
members of the City of Rosemead City Council.
CITY ATTORNEY Shall mean and include the City Attorney of the City of
Rosemead and/or the Rosemead Community Development
Commission.
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CITY COUNCIL Shall mean and include the City Council of the City of
Rosemead, the Commissioners of the Rosemead Community
Development Commission and the Commissioners of the
Rosemead Housing Development Commission. It shall also
mean the governing boards of such other districts, authorities,
or agencies as may be governed by the City Council of the
City of Rosemead.
COLLUSION WITH BIDDER OR VENDOR
Any secret agreement to purposefully be fraudulent or
deceitful for purposes of influencing the outcome of a bid
process. Collusion may occur between an agency, employee,
or representative of the City with a prospective bidder or
vendor in some cases one or more bidders or vendors may
collide to manipulate a purchase award.
COMPETITIVE
BIDDING The submission of prices by individuals or firms competing for
a Contract, privilege, or right to supply merchandise or
services.
CONFLICT
OF INTEREST The City's Conflict of Interest Code applies to each and every
transaction entered into pursuant to the provisions of the
Purchasing System and this manual. The Conflict of Interest
Code adopted by the City of Rosemead has adopted the State
of California Administrative Code Section 18730 which
contains a standard model and is adopted by reference by the
city.
CONTRACT A verbal or written, legally binding mutual promise between
two parties, e.g., an accepted Purchase Order.
CONTRACT PURCHASE ORDER
A Purchase Order (usually issued for one year) outlines unit
prices to be charged by the Vendor for the term of the
Purchase Order. This type of Purchase Order is generally
used for such things as electrical, plumbing and other goods
and services which are anticipated to be needed periodically
throughout the year. The Bids are usually expressed at hourly
rates plus parts expressed at a specific Discount below list
price.
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PURCHASE
ORDER A Purchase Order (usually issued for one year) outlines unit
prices to be charged by the Vendor for the term of the
Purchase Order. This type of Purchase Order is generally
used for such things as electrical, plumbing and other goods
and services which are anticipated to be needed periodically
throughout the year. The Bids are usually expressed at hourly
rates plus parts expressed at a specific Discount below list
price.
DESIGNEE A duly authorized and appointed representative of an
employee that holds a superior position to the person
appointed to represent him or her.
DISCOUNT An allowance or deduction from a normal or list price extended
by a seller to a buyer to make the unit price more competitive.
DISPOSE OF EMERGENCY PURCHASE
To transfer or part with, to sell; to get rid of; to throw out. See
Urgency Purchase.
ENCUMBRANCE Committing budgeted funds prior to receiving supplies,
equipment or services; funds are shown as an encumbrance
until supplies, equipment or services are received, at which
time funds are actually expended.
EQUIPMENT Personal property necessary to conduct the City's business,
including, but not limited to furnishings, machinery, vehicles,
rolling stock, and other property used to conduct the City's
business.
FORMAL BID A Bid which must be submitted in a sealed envelope and in
conformance with a prescribed format, to be opened and
announced at a specified time at a public opening.
GENERAL
SERVICES Services such as janitorial, uniform cleaning, maintenance,
and other services for which the performance of such activities
do not require any unique skill, special background or training.
GUARANTEE A pledge or assurance that something is as represented and
will be replaced or repaired if it fails to meet the stated
Specifications.
INFORMAL BID Written or verbal Quotations for supplies, equipment and
services which pursuant to this policy are not required to meet
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the formal bidding requirements. Informal Bids include
unsealed written quotes, verbal quotes and quotes received
via fax.
LOWEST
(RESPONSIVE)
BIDDER The Bidder submitting the lowest price and capable of
performing the proposed Contract. See also "Responsive
Bidder'.
LOCAL BIDDER/
VENDOR Any individual, partnership, or corporation which regularly
maintains a place of business within the incorporated City
Limits of the City of Rosemead and has obtained a business
license issued by the City of Rosemead.
RMC Rosemead Municipal Code
MALFEASANCE An act which is, in itself, unlawful or unauthorized; acting in a
manner wholly beyond one's jurisdiction.
MISFEASANCE Performance of a lawful action (an action in one's jurisdiction)
in an illegal or improper manner.
NON FEASANCE Failure to act when one has the affirmative duty or authority to
do so.
NON LOCAL
BIDDERIVENDOR Any individual, partnership, or corporation which does not
have a place of business within the incorporated City Limits of
the City of Rosemead.
NON-RESPONSIVE
BIDDER A Bid that does not conform to the essential requirements of
the Notice Inviting Bids. Non-Conforming Bid. Unresponsive
Bid.
NOTICE INVITING
BIDS (NIB) A formal notice published in the newspaper or elsewhere or
sent directly to potential Bidders, notifying them that the City is
accepting bids for a specific purpose.
PROFESSIONAL
SERVICE Any work performed by an auditor, attorney, doctor, architect,
engineer, land surveyor, construction project manager,
appraiser, expert, or consultant, for example.
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PROPOSAL The executed document submitted by an offer or in response
to a Request for Proposals (and the basis for subsequent
negotiation).
PUBLIC
CONTRACT
CODE Shall mean Public Contract Code of the State of California.
PUBLIC PROJECT (DEFINITION IS FROM STATE OF CALIFORNIA PUBLIC
CONTRACT CODE)
a) A project for the erection, improvement, painting, or
repair of public buildings and works.
b) Work in or about streams, bays, waterfronts,
embankments or other work for protection against
overflow.
C) Street or sewer work except maintenance or repair.
d) Furnishing supplies or materials for any such project,
including maintenance or repair of streets, sewers, or
water systems.
PUBLICLY OWNED, LEASED or OPERATED FACILITY
Any plant, building, structure, ground facility, utility system,
real property, streets and highways or other capital
improvement for which the project will be undertaken by the
City.
PURCHASE Renting, leasing, licensing, trading or in any other way
acquiring Equipment, Supplies, or Services is determined to
be a purchase on behalf of the City of Rosemead.
PURCHASING
OFFICER The City Manager officer or his/her designated representative.
PURCHASE
ORDER A document- that authorizes the delivery of specified
merchandise or the rendering of certain services and the
making of a charge for them.
QUALIFIED BIDDER OR VENDOR CHARACTERISTICS
A "qualified" bidder, is a bidder that demonstrates the
following:
(1) can provide product quality, fitness, and capacity for the
required usage.
(2) has the ability, capacity, and skill to perform the
contract or provide the service required.
Purchasing Policies. Procedure Manual •
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(3) has demonstrated character, integrity, reputation,
judgment, experience, and efficiency, particularly with
reference to past purchases by the city or other public
agencies.
(4) has the ability to perform within the time required.
(5) has shown quality of performance and/or of products
provided in previous contracts or services with the city
or other public agencies.
(6) Note: Previous documented incidents of unsatisfactory
performance and/or unsatisfactory delivery, materials,
or services may also result in a determination of
unqualified.
QUOTATION A statement of price, terms of sale, and description of goods
or services offered by a prospective seller to a prospective
Purchaser, usually for Purchases below the amount requiring
Formal Bidding.
REQUEST FOR QUOTATION (RFQ)
The document generally used for seeking competition on small
Purchases or on any Purchase that does . not require
competitive Sealed Bidding. Can be used for obtaining price
and delivery information for Sole Source and emergencies.
Also, see Quotation.
RESPONSIBLE BIDDER/VENDOR
A person who has the capability in all respects to perform in
full the Contract requirements, and the integrity and reliability
which will assure good faith performance.
RESPONSIVE BIDDER
(1) A person who has submitted a Bid which confirms in all
material respects to the Notice Inviting Bids (NIB) or (2) One
who's Bid conforms in all material respects to the terms and
conditions, Specifications and other requirements of the NIB.
SEALED BID A Bid which has been submitted in a sealed envelope to
prevent its contents from being revealed or known before the
deadline for the submission of all Bids; required on Formal
Bids.
SOLE SOURCE An Award for a commodity or service to the only reasonably
known capable supplier due to the unique nature of the
requirement, the supplier, or market conditions.
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SPECIFICATIONS A description of what the Purchaser seeks to buy or
accomplish, and consequently, what a Bidder must be
responsive to in order to be considered for Award of a
Contract. A Specification may be a description of the physical
or functional characteristics, or the nature of a supply or
service. It may include a description of any requirements for
inspecting, testing, or preparing a supply or service item for
delivery.
SPLIT To divide a Purchase into two or more parts in order to avoid
the requirements of the Purchasing Policy. This action is
prohibited by the Policy.
Example of Split: If a department knows it will use $30,000
of a particular supply in one fiscal year and they place two
orders six months apart to keep each order below the $25,000
limit, the action is considered Splitting and is not allowed
under the policy.
Not a Split:
If a department hires ABC Engineering to prepare a fee study
for $10,000 and also hires the same company to oversee a
capital improvement project for $15,000, the action is not
considered splitting.
SURPLUS PROPERTY SUPPLIES
Any City personal property that is no longer needed or usable
by the holding department. Office Supplies, janitorial Supplies,
materials, goods, or other, tools, or other commodities used in
the general conduct of the City's business, excepting Supplies
or materials for a Public Work which is regulated under the
Public Contract Code section 20160, et seq.
URGENCY
PURCHASE A purchase which may done without competitive bidding or
obtaining quotes when time is of the essence and is made
only for the following reasons: (1) To preserve or protect life,
health or property; or (2) Upon natural disaster; or (3) To
forestall a shutdown of essential public services.
USING or REQUESTING DEPARTMENT
An established department or division of the City of which shall
utilize the goods, equipment, or other purchases which are to
be obtained using the Purchasing System as established by
the City of RMC, Section 3.24.
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VENDOR A supplier of goods or services.
WARRANTY The representation that something is true. Not to be confused
with "Guarantee". A representation of utility, condition, and
durability made by a Bidder or Vendor of a product offered.
REQUESTFOR
PROPOSAL (RFP) All documents, whether attached or incorporated by reference,
utilized for soliciting competitive Proposals. The RFP
procedure permits negotiation of Proposals and prices as
distinguished from Competitive Bidding and a Notice Inviting
Bids. _ The procedure allows changes to be made after
Proposals are opened and contemplates that the nature of the
Proposals and/or prices offered will be negotiated prior to
Award.
Attachments
A - Lobbying Certification for Contracts, Grants, Loans & Cooperative Agreements
B - Purchasing Checklist
Purchasing Policy - Attachment A
LOBBYING CERTIFICATION FOR CONTRACTS, GRANTS,
LOANS & COOPERATIVE AGREEMENTS
The undersigned certifies, to the best of his or her knowledge and belief, that:
1. No federally appropriated funds have been paid or will be paid, by or on behalf of the
undersigned, to any person for influencing or attempting to influence an officer or employee
of an agency; a Member of Congress, an officer or employee of Congress, or an employee of
a Member of Congress in connection with the awarding of any federal contract, the making of
any federal grant, the making of any federal loan, the entering into of any cooperative
agreement, and the extension, continuation, renewal, amendment, or modification of any
federal contract, grant, loan, or cooperative agreement.
2. If any funds other than federally appropriated funds have been paid or will be paid to any
person for influencing or attempting to influence an officer or employee of any agency, a
Member of Congress, an officer or employee of Congress, or an employee of a Member of
Congress in connection with this federal contract, grant, loan, or cooperative agreement, the
undersigned shall complete Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
3. The undersigned shall require that the language of this CERTIFICATION be included in the
award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and
contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall
certify and disclose accordingly.
This CERTIFICATION is a material representation of fact upon which reliance was placed when
this transaction was made or entered into. Submission of this CERTIFICATION is a prerequisite
for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any
person who fails to file the required CERTIFICATION shall be subject to a civil penalty of not less
than $10,000 and not more than $100,000 for each such failure.
Title
Name of Company
Purchasing Policy - Attachment B
Purchasing Checklist
DOCUMENTATION
<
$5,000,
$5,000.01-
. $25,000.
$25,000.01
:w $50,000.
$50 000
>
Price Quote
x
X
Vendor or Letter Agreement
x
X
Professional Services Agreement
X
Insurance Certificate - If City will be risking
liability
x
X
X
Verify Filing of Business License
x
X
X
X
Purchase Order
x
X
Department Request/Authorization
x
X
X
X
PAYMENT-,",; <
w
Demand
x
X
Purchase Order - Blanket
x
X
X
Purchase Order- Regular
x
X
APPROVAL, LEVEL
Department
:Head '
city
-Manager
city
'-Mafia er
city
Council