Attachment 3 - Proposed red-line changes to Town Code Sections 2.50.105 through 2.50.145DIVISION 2. - PURCHASING
Footnotes:
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State Law reference— Purchasing of supplies and equipment by municipalities, Gov. Code § 54201 et
seq.
Sec. 2.50.105. - Purchasing system adopted.
In order to establish efficient procedures for the purchase of equipment, materials and services, to
secure for the Town equipment, materials and services goods and services for the Town at the lowest
possible cost commensurate with quality needed, to exercise positive financial control over purchases,
to clearly define authority for the purchasing function and to assure the quality of purchases, a
purchasing system is hereby adopted. Nothing in this chapL..! mall prevent the Town from complying
with the terms and conditions of any grant, gift, or bequest that is otherwise consistent with law.
(Code 1968, § 23-1)
Sec. 2.50.110. - Deccentralized Purchasing Process.
There is hereby established a ueccentralized Purchasing ProcessDivision in which is -vested
authority for the purchase of equipment, materials and services. requesting Departments can directly
solicit bids or proposals and place orders with vendors, subject to the limitations established in this
section, the Town Purchasing Policy, and the approval of the appropriate awarding authority_. The Town
Finance Department and Town Manager shall oversee the procurement process.
(Code 1968, § 23-2)
Sec. 2.50.115. — i, partment Purchasing KepresentativesAgcnt.
shall: Department Directors shall designate one or more of their Department's employee(s) as a
Department Purchasing Representative who will coordinate the procurement process in conjunction
with the Finance Department and concurrence of the Town Manager. Department Purchasing
Representatives shall have the authority to:
(1) Purchase or provide for the purchase or lease of all goods and services for the use of their
Town Departments in accordance with the provisions of this section, and such administrative
rules and regulations put forth in the Purchasing Policy and/or prescribed by the Town
Council.Give preference to merchants whose plaee of biness is located within the Town
(2) E&t sla—a„d—eefer-ee cification it" cet to equipment, materials and services
required bye the Tow^.Recommend execution of contracts for the purchase or lease of goods
and services.
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(3)
cl tc.-mine +heir guar+., tity and senformit„ with specifications-theref„r.-Act to procure
the needed quality of goods and services at the least expense to the Town.
(4) Have charge of such general storerooms and warehouses as the Town Council may
pr-evieteKeep informed of current developments in the field of purchasing, prices, market
conditions, services, and new products.
Transfer to, or between, offices, departments or agencies, equipment, materials or services
and, on approval of the Town Council with such notice as may be required, sell to the highest
bidder surplus, obsolete or unused equipment or materials.Prescribe and maintain such
policies and administrative forms as are reasonably necessary to the operation of this chapter
and other rules and regulations.
(6) Supervise the inspection of all goods and services purchased or leased to ensure performance
with regulations.
(5)
(7) When necessary, oversee the maintenance of a bidder's list and records needed for the
efficient operation of purchasing.
(Code 1968, § 23 3)
Sec. 2.50.120. Estimates of requirements of using agencies.
All using agencies shall file detailed estimates of their requirements for equipment, materials and
prescribe.
(Code 1968, § 23-4)
Sec. 2.50.125. - Use of requisitions.
Using agencies of this Town Departments shall submit requests for equipmentymatefietsgoods and
services to the Purchasing Agent by standard requisitieig forms, or by other means as may be established
by to purcha ing manual.over a certain amount defined in the Purchasing Policy by standard electronic
purchase requisition forms. A purchase requisition is required to be submitted in order for a purchase
order to be issued when necessary.
(Code 1968, § 23-5)
Sec. 2.50.130. - Use of bidding procedures required; cxceptions.Except as otherwise authorized or
required by this chapt�r c+nlP nr cederal law. p..ri.hases of goods and services shall be by
biddingproced.'res.
(a) When the expenditure required for the purchase of equipment, materials, supplicsgoods and
services exceeds twenty fi„e +h useml dollars ($2r,000.00), the amount defined in the Purchasing
Policy, such purchases shall be contracted for and let to the lowest responsible bidder after notice
pursuant to section 2.50.140. Purchases which do not exceed the amount above specifi^d specified
amount shall be made by the Purchasing Agcnta Department Purchasing Representative only after
an informal investigation of the sources of supply for the purpose of ascertaining the lowest price
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Thc Town Council or the Purchasing Agent finds that an emergency requires that an order be
placed with the „ st a ailablc of supply, An emergency situation exists as defined in
the Purchasing Policy and separate Emergency Procurement Policy.
(2) Thc Purchasing Agent finds that the commodity can be obtained from only one (1) vendor, or
when thc purchase is to be made through a county or other public agency.The commodity can
be obtained only from a sole or single source vendor due to its uniqueness or special
characteristics, as defined in the Purchasing Policy.
Thc Town Council finds that because of thc uniqueness or special characteristics of the
When
it would be impractical, impossible, or would not be likely to result in a lower price to the
Town from a responsible bidder, or would cause unnecessary expense or delay under the
circumstances as determined by the awarding authority.
(4) The purchase qualifies for the informal bid process as detailed irtis a public works project and
falls under the Cost Accounting Policies and Procedures Manual of the California Uniform
Public Construction Cost Commission and adopted by resolution.
The Town Council or the Pur-charin.. Agent Finds that the services being p+rchascd arc clearly
professional in nature, such as accounting, legal, planning, or architectural, and the selection
of thc contractor should be based on the quality and history of the contractor in addition to
thc price offercd.For professional services which require the exercise of professional discretion
and independent judgment, based on an advanced or specialized knowledge, expertise or
training gained by formal studies or experience. Examples of professional service providers
include appraisers, architects, attorneys, engineers, instructors, land surveyors, physicians,
information technology services, graphic designers, construction inspectors, etc.
(6) Where
the Town makes use of a cooperative purchasing agreement pursuant to the guidelines set
forth in the Purchasing Policy.
(7) When a Request for Proposal (or Request for Information, Request for Qualifications, etc.)
process is utilized pursuant to the guidelines set forth in the Purchasing; Policy.
(8) When State or Federal law forbids selection on the basis of the lowest responsible bidder
alone.
for which the commodities desired can be acquired and appropriate cost accounting principles are
employed.
(b) The letting of purchases to the lowest responsible bidder pursuant to section 2.50.140 may be
dispensed with when any of the following circumstances exist, unless otherwise required by State
or Federal law:
(1)
(3)
(5)
(9) When no acceptable bids are received from any responsible bidder after following the
procedures set forth in Section 2.50.140.
(10) When the Town has elected to purchase goods or services directly from the State of California,
County of Santa Clara, or any other California municipality.
(Code 1968, § 23-6; Ord. No. 1958, § I, 10-4-93; Ord. No. 2020, § X, 9-16-96)
Sec. 2.50.131. -_ Info. ,nal bid pr—cedur,,r,Public Works Projects.
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procedures as set forth in Section 22032 et seq., of thc Public Contract Codc. The Town has adopted the
California Uniform Public Construction Cost Accounting Act for public works proiects as defined in
Section 22002 of the Public Contract Code.
(Ord. No. 1958, § II, 10-4-93; Ord. No. 2151, § A, 10-2-06)
Sec. 2.50.132. -- inrormai oia proccuui c works projectsContractors list.
22031 of the Public Contract Code and criteria promulgated from time to time by the California Uniform
Construction Cost Accounting Commission. Public projects, as defined by the California Uniform Public
Construction Cost Accounting Act and in accordance with the limits listed in Section 22032 of the Public
Contract Code, may be let to contract by informal procedures as set forth in Section 22032, et seq., of
the Public Contract Code.
(Ord. No. 1958, § III, 10-4-93)
Sec. 2.50.133. - Notice inviting informal bids.Contractors List for public works projects.
When a public project is to be performed that is subject to section 2.50.131 a notice inviting informal
work to be performed, the notice inviting bids shall be sent only to thc construction tradc
journals-8 pesifiecl-bOhe-Gernmission,
(2) If thc product or service is proprietary in nature such that it can be obtained only from a
certain contractor or contractors, the notice inviting informal bids may be sent exclusively to
that contractor or contractors. The Town shall comply with the requirements of Public
Contract Code Section 22034.
(Ord. No. 1958, § IV, 10-4-93)
Sec. 2.50.134. w ,,.....ormal bid contractsNotice Inviting Informal Bids for public works projects.
The Town Council will award informal contracts under section 2.50.131 or designate a specific
Town ff,ccr to Fna c th„ , and „ ect b y preieet basis, Where a public project is to be performed
which is subject to the provisions of this Ordinance, a notice inviting informal bids shall be circulated
using one or both of the following alternatives:
(1) Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the
category of work to be bid, as shown on the list developed in accordance with Section 2.50.133.
(2) Notices inviting informal bids may be mailed to all construction trade journals as specified by the
California Uniform Construction Cost Accounting Commission in accordance with Section 22036
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Notice inviting bids. Notices inviting bids shall include a general description of the articles to
be purchased, shall state where la. clanks and specifications may be securedto obtain more
information, where to submit bids and the time and place for openin lacc for opening bids.
(2) Published notice. Notice inviting bids shall be published by the Town Clerk at least ten (140)
days before the date of opening of the bids. Notice shall be published at (east twice in a
newspaper of general circulation; printed and published in the Town, or if there is none, it shall
be posted in at least three (3) public places in the Town.
Bulletin board. PThc Purchasing Agent shall also advertise pending purchases shall also be
advertises by a notice posted on the public bulletin boards atin the Town Hall.
(4) Website. Notice inviting bids shall be posted to the designated area of the Town website.
(54) Bidders' list. The urchasing Department shall also solicit sealed bids from all
responsible prospective suppliers whose names are on the bidders' list or who have requested
their names to be added thereto.
of the Public Contract Code. Additional contractors and/or construction trade journals may be
notified at the discretion of the Department soliciting bids, provided however:
a. If the good or service is proprietary in nature such that it can be obtained only from a
certain contractor or contractors, the notice inviting informal bids may be sent
exclusively to such contractor or contractors.
(Ord. No. 1958, § V, 10-4-93)
Sec. 2.50.135. . Purchases to be against unencumbered funds.Award of contracts for public works
Except in cases of emergency or in cases where specific authority has been first obtained from the
Purchasing Agent, purchase orders will not be issued for equipment, materials or services unless there
charged. The Town Manager is authorized to award informal contracts pursuant to this Section.
Sec. 2.50.136. — Formal bid procedure for public works projects.
Public projects of more than the amount specified in the Uniform Public Construction Cost
Accounting Act shall, except as otherwise provided in this Section, be let to contract by formal bidding
procedure in accordance with the applicable provisions of the Act and the Public Contract Code.
(Code 1968, § 23-8)
Sec. 2.50.140. - Formal bid4i-ng procedure for goods.
Except as otherwise provided in section 2.50.130for public " is rchase& of equip. cnt
materials and services of an estimated vakie greater than twenty five the
Uniform Public Construction Cost Accounting Act for public projects and Section 2.50.130, purchases for
goods above an estimated value defined in the Purchasing Policy that are of standardized or uniform
quality} shall be by formal bidding procedure as follows:
(1)
(3)
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(66) Bidder s security. When deemed necessary by the purchasing DepartmentPurchasing Agent,
bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled
to return of bid security; provided, that a successful bidder shall forfeit the bid security upon
refusal or failure to execute the contract within ten (10) days after the notice of award of
contract has been mailed, unless the Town is responsible for the delay. The awarding.
authorityTown Council may, on refusal or failure of the successful bidder to execute the
contract, award it to the next lowest bidder, the amount of the lowest bidder's security being
applied by the Town to the difference between the low bid and the second lowest bid, and the
surplus, if any, shall be returned to the lowest bidder.
(76) Bid -opening procedure. Sealed bids shall be submitted to the Town Clerk and shall be
identified as bids on the envelope. Bids shall be opened in public at the time and place stated
in the public notices. A tabulation of all bids received shall be open for public inspection during
regular business hours for a period of not less than thirty (30) calendar days after the bid
opening.
(87) Rejection of bids. In its discretion, the avvaiuiiig auLiivimay reject any bids
presented and readvertise for bids.
(" ) Award of contracts. Contracts shall be awarded by the Town Council to the lowest
responsible bidder, except as otherwise provided herein.
( ) Tie bids. If two (2) or more bids received are for the same total amount or unit price, quality
and service being equal, and if the public interest will not permit the delay of readvertising for
bids, the awarding authority-ewn-Ge+mc-i-ll may accept the one it chooses or accept the lowest
bid made by negotiation with the tie bidders at the time of the bid opening.
(1 ) Performance bonds. The awarding authorityTown-Cou if shall have authority to require a
performance bond before entering a contract in such amount as it shall find reasonably
necessary to protect the best interests of the Town. If the Town Council rcquircs a
performance bond , the form and amount of the bond shall be described in the
notice inviting bids.
(Code 1968, § 23-9; Ord. No. 1958, § VI, 10-4-93; Ord. No. 2151, § B, 10-2-06)
Sec.2.50.141. -Request for Proposal (RFP) process.
(1) The Town may utilize the Request for Proposal (RFP) method for purchase of services and
will apply to the purchase of goods above an estimated value defined in the Purchasing
Policy when any of the following conditions exist:
a. Quality, capability, performance, or qualification is overriding in relation to price; or
b. Delivery, installation, service, maintenance, reliability, or replacement is overriding
in relation to price; or
c. It is determined that the marketplace will respond better to a solicitation permitting
a range of alternative proposals or evaluation and discussion of proposals before
entering the contract.
121 The identity of persons responding to the Request for Proposals and the content of
proposals submitted to the Town may be kept confidential during the process of negotiation
and until a contract is awarded.
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Di. The format and procedures for Requests for Proposals shall be established in the Purchasing
Policy.
(4) The contract award shall be based upon the proposal determined by the Town to be the
most advantageous to the Town, taking into consideration price and the evaluation factors
set forth in the Request for Proposals.
(5) The Town may reject any and all proposals if such rejection is deemed to be in the best
interest of the Town.
(6) The Town may utilize various other accepted requests for procurement in place of a Request
for Proposal, including a Request for Information, Request for Qualifications, or others as
deemed appropriate.
Sec. 2.50.143. — Procurement of paper products.
(1) Definitions:
a. "Paper Purchase" means all purchases by a jurisdiction of items in the following
categories: (1) Paper products. (2) Printing and writing papers.
b. "Paper Products" include but are not limited to, paper janitorial supplies, cartons,
wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and
toweling.
c. "Printing and Writing Papers" include, but are not limited to, copy, xerographic,
watermark, cotton fiber, offset, forms, computer printout paper, white wove
envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and
other uncoated writing papers, posters, index cards, calendars, brochures, reports,
magazines, and publications.
�2) All vendors providing paper products shall:
a. If fitness and quality are equal, provide Recycled -Content Paper Products and
Recycled -Content Printing and Writing Paper that consists of at least 30 percent, by
fiber weight, postconsumer fiber instead of nonrecycled products whenever
recycled Paper Products and Printing and Writing Paper are available at the same or
lesser total cost than nonrecycled items or at a total cost of no more than ten
percent of the total cost for nonrecycled items.
b. Provide Paper Products and Printing and Writing Paper that meet Federal Trade
Commission recyclability standard as defined in 16 Code of Federal Regulations
(CFR) Section 260.12.
c. Certify in writing, under penalty of perjury, the minimum percentage of
postconsumer material in the Paper Products and Printing and Writing Paper
offered or sold to the Town. This certification requirement may be waived if the
percentage of postconsumer material in the Paper Products, Printing and Writing
Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer
or vendor internet website.
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d. Certify in writing, on invoices or receipts provided, that the Paper Products and
Printing and Writing Paper offered or sold to the Town is eligible to be labeled with
an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR)
Section 260.12 (2013).
e. Provide records to the Town's recordkeeping designee, in accordance with the
Town's Recycled -Content Paper procurement policies of all Paper Products and
Printing and Writing Paper purchases within thirty days of the purchase (both
recycled -content and non -recycled content, if any is purchased) made by any
Department or employee of the Town. Records shall include a copy (electronic or
paper) of the invoice or other documentation of purchase, written certifications for
recycled -content purchases, purchaser name, quantity purchased, date purchased,
and recycled content (including products that contain none), and if non -recycled
content Paper Products or Printing and Writing Papers are provided, include a
description of why Recycled -Content Paper Products or Printing and Writing Papers
were not provided.
Sec. 2.50.145. - Purchasing
In order to implement the provisions of this division, a urchasing Policyw shall be prepared
by the Purchasing Agent, which manual shall be and adopted by resolution of the Town Council. No
amendments to the policyrnanual shall be made without Town Council approval.
(Code 1968, § 23-11)
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