HomeMy WebLinkAbout12 INTRODUCTION OF ORDINANCE NO. 1552 REGARDING THE CITY PURCHASING SYSTEMDocusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
MEETING DATE
TO:
FROM:
SUBJECT:
SUMMARY:
Agenda Item
AGENDA REPORT Reviewed:
City Manager
Finance Director
OCTOBER 1, 2024
ALDO E. SCHINDLER, CITY MANAGER
JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER
INTRODUCTION OF ORDINANCE NO. 1552 REGARDING THE
CITY PURCHASING SYSTEM
At the September 17, 2024 meeting, the Council received a presentation of the options for
potential amendments to the City's Purchasing Policy and Procedures, as outlined in the
Tustin City Code sections 1621-1630. The Council discussed the options and provided
direction to staff. This report, incorporating the Council's directions, presents the proposed
updates to the City's Purchasing System as codified in the Tustin City Code.
RECOMMENDATION:
That the City Council introduce Ordinance No. 1552 in the form attached as Attachment 1
for first reading by title only and set the next available Council meeting for second reading
and adoption.
FISCAL IMPACT:
There is no direct fiscal impact associated with this item.
CORRELATION TO THE STRATEGIC PLAN:
An update of the City's Purchasing System correlates to the strategic plan by implementing
Goal E, organizational excellence and customer service. Specifically, periodic review and
update to policy and procedures allow the City to adjust to changes in requirements and
current best practices, and continue to deliver excellent public services in an efficient
manner.
BACKGROUND AND DISCUSSION:
Professional associations recommend that a public agency should periodically review and
update its procurement policy and procedures to stay current with applicable regulations
and requirements. The City's Purchasing Ordinance was last updated in 2014.
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City Council Agenda Report
Proposed Purchasing Ordinance Update
October 1, 2024
Page 2
In September 2023, a request to review the purchasing policy was initiated by Council
Member Gallagher and Mayor Lumbard, and unanimously approved by the Council. Staff
conducted an extensive review of the existing policy as well as research regarding current
procurement practices used by surrounding Orange County public agencies. Staff also
sought guidance from professional associations such as the California Association of Public
Procurement Officers.
On September 17, 2024, staff presented several options and recommendations for the
Council's discussion and consideration. These options and recommendations are primarily
related to the areas of bidding thresholds, Council approval of contracts, and contract
reporting. The Council's directions from the last meeting are reflected in the proposed
updates outlined below.
Proposed Updates
Bidding Thresholds:
Increased costs for goods and services have significantly reduced the effectiveness of the
current bidding thresholds. A summary of the new bidding thresholds being proposed are
as follows:
NON-PUBLIC PROJECT CONTRACTS
Supplies, Materials,
Equipment
General Services
Professional Services
Quote/Bid Required
Yes
Yes
Yes
No Bidding
up to $30,000
up to $30,000
not applicable
Informal Quotes
over $30,000, up to $65,000
over $30,000, up to $100,000
up to $65,000 one quote;
over $65,000 three quotes
Formal Bidding
over $65,000
over $100,000
not required
City Code Section
1624 (e)
1624 (e)
1626 (c )
NO CHANGE TO BIDDING OF PUBLIC PROJECT CONTRACTS *
* Public project" means any of the following, which are governed by State law (e.g., the Uniform Public
Construction Cost Accounting Act (California Public Contract Code section 22000 et seq.)):
a. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and
repair work involving any publicly owned, leased or operated facility; or
b. Painting or repainting of any publicly owned, leased or operated facility.
Contract Reporting to and Approval by City Council:
The proposed update also provides new direction for contracts to be reported to and/or
approved by the Council. It aims to improve transparency of the contract selection
process while maintaining operational efficiency and effectiveness. A summary of the
contract reporting and approval provisions are as follows:
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City Council Agenda Report
Proposed Purchasing Ordinance Update
October 1, 2024
Page 3
NON-PUBLIC PROJECT CONTRACTS
Reported to and Approved by Council
City Manager Approval
Vehicle/Equipment
over $200,000
up to $200,000
General Services
over $200,000
up to $200,000
Professional Services
over $200,000
up to $200,000
City Code Section
1623 (b)(5)
1623 (b)(4)
NO CHANGE TO APPROVAL OF PUBLIC PROJECT CONTRACTS
Other Changes:
In addition to the proposed updates to bidding, approval, and reporting requirements, staff
has identified certain revisions that will align the purchasing policy with current best
practices, improve efficiency, and enhance budget monitoring. These proposed changes
are presented in attachment 4 to the agenda report.
Ordinance No. 1552 and two versions of the Tustin City Code sections 1621-1631
("redlined" and "clean") incorporating the above changes are presented with this agenda
report.
A recap of the next steps are as follows:
• October 1: Council introduction of Ordinance 1552.
• October 15: (Tentative) - Second reading and adoption of the ordinance.
• Effective date of the updated ordinance — 30 days after adoption.
ISigned by:
Finance Director/City Treasurer
Attachments:
1. Ordinance No. 1552
2. Proposed Tustin City Code Sections 1621-1630 (redlined)
3. Proposed Tustin City Code Sections 1621-1630 (clean)
4. Summary of Proposed Changes Other than Bidding, Contract Approval, and
Reporting
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ORDINANCE NO. 1552
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUSTIN REPLACING AND SUPERSEDING ARTICLE 1,
CHAPTER 6, PART 2 OF THE TUSTIN CITY CODE
REGARDING THE CITY PURCHASING SYSTEM.
The City Council of the City of Tustin, California finds as follows,
WHEREAS, it is in the best interests of the City, its employees, and its constituents
to have efficient and transparent procedures in place for the purchases of supplies,
services and equipment, to procure those purchases at low cost commensurate with the
quality of supplies, services and equipment needed, and to exercise positive financial
control over purchases, with clearly defined delegations of authority for the City's
purchasing functions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUSTIN DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION I: Sections 1621 through 1631 of Part 2 of Chapter 6 of Article 1 of the Tustin
City Code are replaced and superseded in their entirety to read as follows:
1621 ADOPTION OF PURCHASING SYSTEM
In order to establish efficient procedures for the purchase of supplies, services and
equipment, to secure for the City supplies, services and equipment at the lowest possible
cost commensurate with the quality needed, to exercise positive financial control over
purchases, to clearly define authority for the purchasing function and to ensure the quality
of purchases, a purchasing policy is hereby adopted.
This Part shall be known as and may be cited as the "Purchasing System."
1622 DEFINITIONS
For the purpose of carrying out the intent of this chapter, the following words, phrases
and terms shall have the meaning ascribed to them in this section:
"Facility" means any plant, building, structure, ground facility, utility system, real
property, streets and highways, or other public work improvement (subject to the limitation
found in the definition for public project in this section).
"Fixed charge purchases" means supplies, materials, equipment, and services that
can be acquired from only one source for which a fixed price has been determined (i.e.
postage, professional development, training, membership, utility services, service
contracts with other governmental agencies, debt service payments, etc.).
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"General services" means any service that is not a professional service as defined in
this section. General services include but are not limited to janitorial services, security
services, and maintenance work.
"In writing" or "written" means in reduced to writing in a physical or electronic medium
that creates a City record to which future reference may be made, including but not limited
email.
"Maintenance work" includes any of the following:
a. Routine, recurring and usual work for the preservation or protection of any publicly
owned or publicly operated facility for its intended purposes;
b. Minor repainting;
c. Resurfacing of streets and highways at less than one (1) inch;
d. Landscape maintenance, including mowing, watering, trimming, pruning, planting,
replacement of plants, and servicing of irrigation and sprinkler systems.
"Professional services" means, but is not limited to, any type of professional services
that may be lawfully rendered including the services of architects, attorneys, consultants,
engineers, physicians, accountants, information technology professionals, or other
individuals or organizations possessing a high degree of professional or technical
expertise, but does not include public projects.
"Public works contract" shall have the meaning set forth in California Public Contract
Code 1101, as amended from time to time.
"Public project" means any of the following to which the Uniform Public Construction
Cost Accounting Act (California Public Contract Code section 22000 et seq.) applies:
a. Construction, reconstruction, erection, alteration, renovation, improvement,
demolition and repair work involving any publicly owned, leased or operated
facility; or
b. Painting or repainting of any publicly owned, leased or operated facility.
"Purchase order" means a written authorization by the issuing party for the recipient
to provide labor, materials or services for which the issuing party agrees to pay.
"Responsible bid" means an offer, submitted by a responsible bidder in written form
(physical or digital), to furnish supplies, materials, equipment or contractual services in
conformity with specifications, delivery terms and conditions and other requirements
included in the invitation for bids.
"Responsible bidder" means a bidder who submits a responsible bid; who has
furnished, when requested, information and data to prove that its financial resources,
production or service facilities, service reputation and experience are adequate to make
satisfactory delivery of the supplies, materials, equipment or contractual services for
which the bids are submitted, and who has not violated, or attempted to violate, any
provision of this Part.
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"Sole source" means supplies, materials, equipment or services of a unique nature
based on quality, durability, availability, fitness for a particular use, or qualifications, or
that are available from only one source.
"Supplies, materials and equipment" mean any and all articles or things which shall
be furnished to or used by the City, and includes but is not limited to goods, vehicles,
supplies, equipment, machinery and related maintenance.
1623 PURCHASING MANAGER
a. Creation of the Position of Purchasing Manager
There is hereby created the position of Purchasing Manager, who shall be the City
Manager. The City Manager may delegate, subject to his or her control and direction, any
of the powers and duties conferred upon the as Purchasing Manager to any other officer
or employee of the City.
b. Power and Duties
1. As Purchasing Manager, the City Manager directs and supervises the acquisition
of all supplies, materials, equipment, and services under the authority of TCC
Section 1415 and in accordance with this Part.
2. Purchasing Agents. In accordance with TCC Section 1623a the City Manager may
delegate responsibility for administering purchasing policies and procedures to
one or more department heads. A department head who has been delegated
authority by the Purchasing Manager hereunder is referred to herein as a
Purchasing Agent. Unless the Purchasing Manager directs otherwise in writing,
the authorized Purchasing Agents shall include:
i. Assistant City Manager
ii. Deputy City Manager
iii. Director of Finance
iv. Director of Parks and Recreation Services
v. Director of Community Development
vi. Chief of Police
vii. Director of Public Works
viii. Director of Human Resources
3. Purchasing Delegates. Additionally, the Purchasing Manager may delegate
authority to the Purchasing Agents to delegate authority to additional individuals
within their supervision who shall be authorized to make purchases. Individuals
delegated purchasing authority by the Purchasing Agents are referred to as
"Purchasing Delegates". Purchasing Delegates shall be designated in accordance
with the following requirements:
i. A written list of Purchasing Delegates must be submitted to the Finance
Director and include the name and maximum dollar purchasing authority
authorized for each individual.
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ii. A written list of Purchasing Delegates must be approved on an annual basis or
upon changes in employment status, whichever is more frequent, by the
Purchasing Manager, Finance Director, and the applicable Purchasing Agent.
iii. The Finance Director must maintain a written record of all approved
Purchasing Delegates.
4. Purchasing Manager Approval Authority. The Purchasing Manager is authorized
to approve contracts with an estimated total value including applicable sales tax,
shipping charge, surcharge, amendments, and/or change orders up to the
following amounts:
i. Supplies, materials, and equipment that are less than or equal to $200,000;
General and professional services that are less than or equal to $200,000;
and
iii. The Purchasing Manager may delegate approval of the above contracts to
the Purchasing Agents and Purchasing Delegates.
5. City Council Approval Required. The City Council shall approve contracts with an
estimated total value including applicable sales tax, shipping charge, surcharge,
amendments, and/or change orders is for:
i. Supplies, materials, and equipment that are greater than $200,000; and
General and professional services that are greater than $200,000.
C. Conflict of interest Policy and Prohibitions
Employees and agents of the City involved in procurement activity shall not:
1. Receive a rebate, kickback or other unlawful consideration in the selection of
those contracting with the City; or
2. Participate in or attempt to influence the selection process for a contract if he
or she has a relationship with a person or business entity seeking a contract
which would subject those employees to the prohibition of California
Government Code section 87100.
1624 PURCHASING PROCEDURE
a. Availability of Funds. Except in emergencies as defined in Section 1625a, no notice
of award of contract shall be issued, no contract shall be signed and no open market
purchase order shall be issued unless the unexpended balance in the appropriation
or appropriations concerned is sufficient to defray the amount of such contract or
purchase order.
b. Signatures Authority for Contracts. Except as provided in section 1628d, contracts
procured and approved in accordance with this Part may be signed by the Purchasing
Manager or delegated to a Purchasing Agent.
c. Purchaser Responsibilities. It shall be the responsibility of the Purchasing Manager,
Purchasing Agent, or Purchasing Delegate handling a purchase:
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1. Combined Purchases: To reduce, to the maximum extent possible, the number of
purchase transactions by combining into bulk orders and contracts the
requirements of departments or City for common -use items or items frequently
purchased.
2. Vendor Validation: To obtain a completed IRS Form W-9 from any vendor not
previously used for City purchases and submit it to the Finance Department. The
Finance Department shall perform procedures to ensure the validity of all new
vendors before any purchase can be made with the new vendor.
3. Receipt Documentation: To ensure that the person that documents the receipt of
the supplies, materials, and equipment purchased is not the same individual that
authorized the purchase and to follow the procedures of TCC Section 1629 for
inspection of materials and equipment.
4. Bid Selection: Except as otherwise authorized in this Part or by State or Federal
law, to select the lowest responsible bidder when bids are solicited, whether formal
or informal. If the lowest priced bid is not selected, then the decision process must
be documented on a prescribed form explaining why the lowest bid was not
chosen. This form shall be approved by the Purchasing Manager or Purchasing
Agent, and filed with the applicable contract and purchase order.
5. Sole Source Provider: If the item(s) to be purchased is only available through a
sole source provider, the department must document the determination to
purchase on a prescribed form, obtain approval from the Purchasing Manager or
Finance Director, provide verification that the vendor is the sole source provider,
and file this form with the applicable contract and purchase order. Examples of
allowable sole source item(s) or services include but are not limited to:
i. The brand or trade name article, products or proprietary service is the only
one which will properly meet the needs of the City; or
ii. The item or service is unique and/or available only from a single source
based on region or decision of a manufacturer or distributor; or
iii. The item or service is designed to match others already in use or is
necessary to be compatible with others already in use.
6. Contract Terms: Maximum terms for all service contracts do not exceed five years,
including extensions unless otherwise approved or directed by the City Council.
7. Split Purchase Prohibited: Splitting a purchase to avoid applicable procurement
thresholds is strictly prohibited.
8. Federal Funding Compliance: When purchasing with Federal funds, the
department must follow the stricter of either the Uniform Guidance (2 CFR Par 200
Subpart A §200.318 General Procurement Standards through §200.326 Contract
Provisions), or City Policy.
d. The Purchasing Manager is authorized to prescribe the use of various types of
contracts and orders, including, but not limited to, the following:
1. Petty Cash: Use of petty cash is authorized for single purchases of seventy-five
dollars ($75.00) or less. Petty cash reimbursements must be supported by an
itemized receipt and approved by the employee's supervisor. The Finance
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Department will review the receipts and approvals attached to the request for petty
cash replenishment from each department to verify purchases made are approved
and legitimate.
2. Purchase Orders: Shall be used for all purchases of supplies, materials,
equipment, and services in accordance with the following:
i. Any single item or aggregate purchase with an estimated value of ten thousand
dollars ($10,000.00) or greater.
ii. When the Purchasing Manager, Purchasing Agent, or Purchasing Delegate
expects to make multiple purchases with a single vendor and these purchases
are expected to exceed twenty thousand dollars ($20,000.00) annually for
similar items, an open purchase order should be utilized. Open purchase orders
must be approved by the Purchasing Manager or Purchasing Agent and
renewed at least annually.
iii. Fixed charge purchases do not require a purchase order, regardless of the
dollar amount.
e. With the exception of emergencies (as defined in TCC Section 1625a) and the other
exceptions noted in TCC Sections 1625b and 1625c, the Purchasing Manager,
Purchasing Agent and Purchasing Delegate shall follow the following procedures
with regards to purchases of supplies, materials, equipment, and services:
1. Micro -Purchases: A purchase, whether it is a single item or aggregate with an
estimated value of less than thirty thousand dollars ($30,000) including
surcharge, sales tax, and shipping, may be made without the use of formal or
informal bids. The Purchasing Agent or Purchasing Delegate shall document the
approval of this micro -purchase method using simplified and cost-effective
operational procedures and/or forms established by the Purchasing Manager.
2. Informal Bids or Quotes: The Purchasing Manager, Purchasing Agent or
Purchasing Delegate shall solicit three (3) informal bids or quotes for:
i. Purchase of supplies, materials, or equipment with an estimated value
between thirty thousand dollars ($30,000.00) up to and including sixty-five
thousand dollars ($65,000.00) including surcharge, sales tax, and shipping.
ii. General service contracts with an estimated value between thirty thousand
dollars ($30,000) and up to and including one hundred thousand dollars
($100,000) including amendments or change orders.
iii. Bids or quotes shall be obtained in written format.
iv. Written documentation of the bids and quotes or justifications for utilizing
the bidding exception, must be submitted on a prescribed form. This form
and related bids or quotes must be filed with the applicable contract and
purchase order.
3. Formal Bids: The Purchasing Manager, Purchasing Agent or Purchasing Delegate
shall solicit three (3) formal bids for:
i. Purchase of supplies, materials, and equipment with an estimated value of
more than sixty-five thousand dollars ($65,000.00) including surcharge, sales
tax, and shipping charges,
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ii. General service contracts with an estimated value of more than one hundred
thousand dollars ($100,000) including amendments or change orders.
iii. Bids must be obtained in written format.
iv. Written documentation of the bids must be submitted on a prescribed form. This
form and related bids must be filed with the applicable contract and purchase
order.
f. Any travel related costs must comply with the City's Travel Policy.
g. Purchases by credit card of supplies, materials, and equipment must follow the
following procedures:
1. Credit cards may be provided to employees as determined appropriate by the
Finance Director, in consultation with the employee's immediate supervisor.
2. The Finance Director and in his/her absence the Purchasing Manager is
responsible for the issuance of credit cards, accounting, monitoring, and generally
overseeing compliance with these procedures.
3. Credit card limits will be determined by the Finance Director and in his/her absence
the Purchasing Manager. There shall be no cash access feature (cash advance)
on the credit cards. The Finance Director shall establish policies for the
safekeeping of credit cards and procedures in the event a credit card is lost, stolen
or destroyed.
4. Credit cards must only be used by City employees for proper City business
purposes. Use of credit cards for personal purchases is prohibited.
5. Employees using credit cards must retain itemized credit card receipts, attach
them to the credit card statements and present this documentation to their
immediate supervisor for approval. In the case of meals and business travel
expenses, each receipt must include the names of all persons involved in the
purchase, and a brief description of the business purpose. Receipts shall be
reconciled to the monthly credit card statement by the Finance Department. An
employee who fails to provide credit card receipts to the Finance Department
within five (5) business days of when the charges were made may be required, at
the Finance Director's discretion, to reimburse the City for the charges, and at the
Finance Director's discretion, may have his or her credit card privileges revoked.
6. Each credit card issued in the name of the City of Tustin must be kept in a safe
place and released for use only under the authority of the Finance Director. Credit
cards are the property of the City and shall be returned to the employee's
supervisor upon demand or upon termination of employment with the City,
whichever occurs first.
7. Before being issued a credit card, employees must complete and sign the
acknowledgement form stating that they understand and will comply with the City's
credit card policy.
8. Examples of allowable uses of credit cards include, but are not limited to:
i. Conferences/training/seminars (registration, airline/car rental, hotel
accommodations, meals and fuel).
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Business lunch with representatives from other government agencies or
consultants under contract to the City, furnishing lunch for interview panels
and/or evaluation review boards.
iii. Publications/manuals.
iv. Providing meals, equipment and materials to work crews in cases of
emergency.
v. Should the credit card be used to purchase supplies, materials or services,
the purchase must be made in a manner consistent with Section 1624c, 1624d, and
1624e.
1625 EXCEPTIONS TO PURCHASING PROCEDURE
a. Emergency Purchases. The emergency procedure applies to purchases made
necessary from an emergency situation that poses an immediate threat to public
health, welfare or safety as determined by the Purchasing Manager.
1. An emergency situation is defined as follows:
i. A public disaster;
ii. An immediate need to prepare for national or local defense; or
iii. A breakdown of machinery or an essential service immediately affecting
public health, safety, or welfare of the public or of City staff.
2. The Purchasing Manager, a Purchasing Agent, or any Purchasing Delegate may
purchase supplies, equipment, or services directly subject to parameters set forth
in City Council resolution(s) or administrative guidelines. The Purchasing Agent or
Purchasing Delegate will submit a report of the circumstances of the emergency
and a summary of the emergency purchases to the Purchasing Manager. The
report shall be filed with the City Council.
b. Bidding: Exceptions.
1. Purchases of supplies and equipment and contracts for Public Projects, except
Public Works Contracts, shall be by bidding procedures pursuant to the provisions
of Section 1624 and as described in sections 1626 and 1627 of this Part;
2. Purchase amount is less than thirty thousand ($30,000), including surcharge, sales
tax, and shipping;
3. Professional service contracts shall follow the provisions of Section 1626;
4. Bidding shall be dispensed with upon authorization of the Purchasing Manager or
the Finance Director on a prescribed form and retained with the applicable contract
and purchase order:
i. Where bidding would be impossible or impractical;
ii. Where the commodity or service can be obtained from a sole source
vendor. When procuring through a sole source vendor, the vendor's
qualification and justification for sole source must be documented and
supported in order to dispense with bidding requirements;
iii. Where the price of the commodity or service is controlled by law such that
bidding would be unlikely to result in any cost savings; or
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iv. For Public Works Contracts that are subject to the provisions of the
California Public Contract Code, in which case the Contract(s) shall be
procured in conformity with the Public Contract Code.
5. For the purposes of this section:
i. "Impossible" shall mean impossibility or extreme and unreasonable difficulty
or expense; and
ii. "Impractical" shall mean incapable of being performed by the bid procedure.
C. Other Exceptions. When in the opinion of the Purchasing Manager or Purchasing
Agent supplies, materials or equipment can be more efficiently or more cheaply
obtained if acquired on behalf of the City by the State Department of General
Services or through the County of Orange Cooperative Purchasing Program, or
other government purchasing program, the Purchasing Manager or Purchasing
Agent may proceed with the purchase after following contract approval
requirements provided in Section 1623b. Acquisition of any such supplies,
materials or equipment by the State Department of General Services or through
the County of Orange Cooperative Purchasing Program or other government
purchasing program may be authorized by resolution of the City Council.
1626 PROFESSIONAL SERVICES
a. Professional service providers should be evaluated through a qualification -based
selection process. Therefore, professional service contracts do not readily fall within
the cost -based competitive bidding process. Selection of professional service
contracts must follow the guidelines in Sections 1626b and 1626c.
b. Guidelines for Selection. The Purchasing Manager, Purchasing Agent or Purchasing
Delegate primarily responsible for the project for which professional services are
required shall develop a detailed scope of work and select firms or individuals based
on demonstrated competence and professional qualifications necessary for the
satisfactory performance of the services required, and may include such factors as:
1. Overall professional experience, reliability, and continuity of the firm as related to
the tasks described in the scope of work;
2. Professional experience of the firm in successfully executing services of a similar
nature;
3. Adequacy of personnel numbers within specific disciplines required to complete
the work required by the scope of work;
4. Experience and training of key personnel as related to the tasks described in the
scope of work;
5. Adequacy of number of principal(s) which are intended to be assigned to
performance of the contract;
6. Knowledge of applicable regulations and technology associated with the services;
7. Quality and timeliness of recently completed or nearly completed projects which
were similar to the work described in the scope of work;
8. Specialized qualifications for the services to be performed.
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Such factors shall be weighed by the Purchasing Manager, Purchasing Agent or
Purchasing Delegate and by the City department primarily responsible for the project
according to the nature of the services, the needs of the City and the complexity and
special requirements of the specific services that will be provided.
c. Quotes and Proposals:
1. Contracts with an estimated value of up to and including sixty-five thousand
dollars ($65,000) may be entered after obtaining one quote.
2. For contracts with an estimated value of more than sixty-five thousand dollars
($65,000), the responsible department should request a written proposal from no
less than three available and qualified consultants. Where three consultants
cannot be found, the responsible department may select from less than three
available and qualified consultants. Selections based on fewer than three
consultants must be documented on a prescribed form, approved by the
Purchasing Manager or Purchasing Agent, and retained with the applicable
contract and purchase order.
3. A formal RFP is not required for professional service contracts. However, if a
formal RFP is used, the Purchasing Manager, Purchasing Agent or Purchasing
Delegate shall abide by the following procedures:
A Request for Proposal solicitation document shall be issued to potential
individuals or firms. The solicitation document shall discuss the following:
i. Scope of work or specification desired.
ii. List any required qualifications.
iii. List the evaluation criteria.
iv. The deadline for submission of the response by the vendor.
V. Only criteria disclosed in the solicitations may be used to evaluate the
responsive proposals.
The solicitation document shall be made available to a minimum of three (3)
qualified firms or individuals and shall be made available for no less than fourteen
(14) calendar days.
d. Evaluation of quotes and proposals received will be conducted by either a
knowledgeable individual or a review team. The evaluation factors and the final
decision must be documented on a prescribed form, approved by the Purchasing
Manager or Purchasing Agent, and retained with the applicable contract and
purchase order.
1627 INFORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Informal Bidding Procedures. The following shall govern purchases of supplies,
services, equipment and the selection of contractors when a Public Project is
anticipated to fall within the monetary limits on informal bids described in applicable
laws and regulations, including, but not limited to, the limitations established pursuant
to California Public Contract Code Section 22032, as the same may be adjusted from
time to time:
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1. The City shall prepare a notice of the opportunity to bid which describes the project
in general terms, states the time and place for the submission of bids and describes
how to obtain more detailed information about the project.
2. The City shall mail the notice to all contractors for the category of the work to be
bid, as shown on the list of contractors developed and maintained by the
Department of Public Works in accordance with criteria promulgated from time to
time by the California Uniform Construction Cost Accounting Commission
("Commission").
3. The City may also mail the notice to all construction trade journals specified by the
Commission for the County of Orange. Additional contractors and/or construction
trade journals may also be notified at the discretion of the purchasing agent;
provided, however, (1) if the City has not prepared a list of qualified contractors for
the particular category of work to be performed, the notice inviting bids shall be
sent only to the construction trade journals specified by the Commission; and (2)
if the product or service is proprietary in nature such that it can be legally obtained
only from a certain contractor(s), the notice inviting informal bids may be sent
exclusively to such contractor(s).
4. All mailings of notices to contractors and construction trade journals pursuant to
this section shall be completed not less than ten (10) calendar days before bids
are due.
b. Bid Selection.
1. Except as otherwise provided herein, purchases of supplies, services, equipment,
and Public Projects shall be awarded to the lowest responsible bidder. The
determination of the "lowest responsible bidder" shall be determined by the
Purchasing Manager, Purchasing Agent or Purchasing Delegate authorized to
conduct the procurement.
2. Exceptions: Purchases of supplies, services, equipment and Public Projects (other
than Public Works Contracts and contracts for Public Projects) may be awarded to
a bidder other than the lowest responsible bidder only upon a written finding,
approved by the Purchasing Manager or Purchasing Agent, or for contracts over
$200,000 by the City Council, and supported with written documentation setting
forth the reasons that greater overall value to the City will be achieved by awarding
to the other bidder. Alternatively, the Purchasing Manager, Purchasing Agent or
Purchasing Delegate may reject all bids and either halt the procurement or conduct
the procurement again. Awards of Public Works Contracts and contracts for Public
Projects shall be made in accordance with State law.
1628 FORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Bid Solicitation Procedures.
1. The City Council shall approve plans and specifications for all Public Projects and
Public Works Contracts which are required per applicable laws and regulations.
2. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall prepare
and provide for advertisement a notice inviting formal bids, stating the time and
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place for the receiving and opening of sealed bids and distinctly describing the
public project, commodity, or class of commodities. The Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall publish each and every notice
inviting bids in accordance with the following requirements:
i. The notice shall be published in accordance with the requirements of California
Public Contracts Code Section 20164, as that section may be modified.
ii. Contracts for services for the painting, maintenance or repair of public buildings
and works specifically governed by Government Code Sections 37901 and
37902 shall be subject to the solicited bid process in accordance with
applicable laws.
iii. The purchasing agent shall, in addition, solicit bids from prospective bidders for
the class of commodities being purchased or sold as listed on the bidders list,
by sending them copies of the notice or such other notice as will acquaint them
with the proposed purchase or sale. All pending purchases or sales shall also,
in all cases, be advertised by posting a copy of the contract bid form on the
City's website.
iv. In addition to notice required by this section, the Purchasing Manager,
Purchasing Agent or Purchasing Delegate may give such other notice as he or
she deems proper.
3. All bids shall be presented under sealed cover. One (1) of the following forms of
bidder's security is also required:
i. Cashier's check made payable to the City;
ii. A certified check made payable to the City; or
iii. A bidder's bond executed by an admitted surety insurer, made payable to the
City.
4. The security shall be in an amount equal to at least ten (10) percent of the amount
bid. A bid shall not be considered unless one (1) of the forms of responsible
bidder's security is received by the City. If the bidder to whom the contract is
awarded shall for ten (10) days after the award fail or neglect to enter into the
contract and file the required securities, the City shall deposit in its treasury the bid
security if the security is in the form of cash or its equivalent.
5. Provisions shall be included in any invitation for bid and in any contract documents
for the furnishing of securities and/or the withholding of retentions earned to ensure
performance under a contract in an amount and type as determined by the Director
of Public Works, consistent with State law. Provisions shall be included in any
invitation for bid and in any contract documents for insurance coverage in an
amount, type and term as may be specified by the City.
6. When required by State law, the contractor shall not pay less than the general
prevailing rates of wages, as
determined by the Director of the Department of Industrial Relations, to all
workers employed on a Public
Project or Public Works Contract.
b. Formal Bid Opening Procedure. Bids shall be submitted to the City through the City's
online bidding system. Submittals are only accepted electronically through this
platform and automatically time stamped. Late submittals will not be accepted
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through the system or in person. The Purchasing Manager, or his or her designee,
shall make the bid results available for public inspection as soon as possible within
the online bidding system. Bid results shall remain publicly accessible for a period
of one (1) year after bid opening
c. Rejection of Formal Bids. In its discretion, the City Council may reject any and all
bids presented if the Purchasing Manager, prior to rejecting all bids, furnishes a
written notice to an apparent low bidder, informing the bidder of the City's intention
to reject the bid at least two (2) business days prior to the meeting at which the City
Council intends to reject the bid. If after the first invitation of bids all bids are rejected,
after reevaluating its cost estimates of the project, the City Council may: (a) abandon
the project; (b) re -advertise for bids in the manner prescribed by this chapter; or (c)
perform the work with City employees, after passing a resolution by a four -fifths vote
of the City Council declaring that the project can be performed more economically by
City employees.
d. Award of Formal Bid Contracts. All Public Works Contracts with a value exceeding
the limitations established pursuant to California Public Contract Code Section
22032, as the same may be adjusted from time to time, shall require the approval of
the City Council and shall be executed by the Mayor and approved as to form by the
City Attorney. Unless the agreement provides otherwise, the City Manager may
approve dollar increases to contracts that have been approved by the City Council.
The extent of the City Manager's authority to approve such increases shall be in the
amount of ten thousand dollars ($10,000.00) or ten (10) percent, whichever is
greater, or an amount specifically designated by the City Council for the particular
project. If a contract is awarded, it shall be awarded by the City Council to the lowest
responsible bidder that submits a responsive bid. The determination of the "lowest
responsible bidder" shall be at the discretion of the City Council pursuant to the
findings and recommendations presented by the Purchasing Manager, Purchasing
Agent or Purchasing Delegate at the time of award of the contract. In determining the
lowest responsible bidder, the following shall be considered by the City Council, in
addition to the price:
1. The ability, capacity and skill of the bidder to perform the contract or provide the
services required;
2. Whether the bidder can perform the contract or provide the services promptly, or
within the time specified, without delay or interference;
3. The sufficiency of the bidder's financial resources to perform the contract or
provide the service;
4. The ability of the bidder to provide future maintenance and services where such
maintenance and service is essential;
5. The quality and timeliness of the bidder's performance on previous contracts for
the City;
6. Litigation by the bidder on previous contracts with the City;
7. The character, integrity, reputation, judgment, experience and efficiency of the
bidder;
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8. The bidder is licensed under the Contractors' State License Law (commencing
with Section 7000 of the
Business and Professions Code of the State of California, as the same may be
amended from time to time)
to perform the work for which it submitted a bid proposal.
e. Tie Formal Bids. If two (2) or more formal bids received are for the same total
amount or unit price, quality
and service being equal, the City Council may, at its discretion, accept the one (1) it
chooses or accept the lowest bid made by and after negotiation with the tie bidders.
f. No Formal Bids. If no bids are received through the formal or informal procedure, the
project may be performed by the employees of the City by force account or through
a negotiated contract without further complying with this section.
Nothing contained in this section is intended to be in conflict with applicable state law
including Sections 37901 and 37902, and Sections 37931 through 37935, of the
Government Code of the State of California.
1629 INSPECTION OF MATERIALS, EQUIPMENT, ETC.
a. The receiving departments shall inspect deliveries of supplies, materials and
equipment or the furnishing of contractual services to ensure their conformance with
the specifications set forth in the purchase order or contract.
b. Any department which has the necessary facilities and staff for adequate inspection
may be authorized and directed by the City Council, on the recommendation of the
Purchasing Manager, Purchasing Agent or Purchasing Delegate, to inspect
deliveries made to other departments.
c. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall have
authority to require chemical and physical tests of samples submitted with bids and
samples of deliveries to the extent necessary to determine their quality and
conformance with the specifications. For such tests, the Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall have the authority to make use of
the laboratory facilities of any department or to engage the services of any outside
laboratory.
d. In accordance with section 1624c3, the person who documents the receipt of the
supplies, materials and
equipment purchased must not be the same individual who authorized the
purchase.
1630 DISPOSITION OF PROPERTY
a. Surplus or Obsolete Commodities.
1. All departments shall submit to the Purchasing Manager at such times and in such
form as he or she shall prescribe, reports showing stocks of all supplies, materials
and equipment which are no longer used or which have become obsolete, worn
out or scrapped. The Purchasing Manager shall have authority to transfer any such
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commodities which are usable to another or other departments in the same or
similar articles.
2. The Purchasing Manager shall make a written estimate of the value of any surplus
items not usable by any City department or not required for public use. The
Purchasing Manager shall have the authority to sell all such supplies, materials
and equipment which cannot be used by any department or which have been found
by the City Council not to be required for public use or to exchange or trade in such
articles in part or full payment for new supplies, materials or equipment of a similar
nature. Any such sale, exchange or trade-in shall be made in accordance with
Section 1626 or Section 1627, whichever is applicable. The Purchasing Manager
shall report in detail, including the amount of revenue received upon any such sale,
to the City Council within forty-five (45) days thereafter.
b. Unclaimed Property in Possession of Police Department.
1. Unclaimed Property Defined. "Unclaimed property" is all personal property, the title
of which is not vested in the City of Tustin, which property has come into the
possession of the City of Tustin as lost property, property which has been
confiscated or impounded by the City as being in violation of law or any other
personal property coming into possession of the City of Tustin which is not
specifically provided for by any other provision of law.
2. Procedure.
i. If the estimated value of the unclaimed property exceeds ten dollars ($10.00)
the Police Department or the administrative official who obtained possession
of the property shall, within ten (10) days of receipt of the property, notify the
owner, if his identity is reasonably ascertainable, that it possesses the property,
and where it may be obtained. The Police Department or the administrative
official may require payment by the owner of a reasonable charge to defray
costs of storage and care of the property.
ii. If the owner appears within ninety (90) days of the notification given in
subparagraph a. above, proves his ownership of the property, and pays all
reasonable charges, the Police Department or the administrative official shall
restore the property to him.
iii. After retention of the property for four (4) months, the property may be:
a) Sold at public auction to the highest bidder;
b) Retained by the City of Tustin if it is determined that the property is needed
for a public use, and after public notice has been made of the City's intention
to retain the property; or
c) Where the property is a bicycle or toy in the possession of the Police
Department, the property may, at the discretion of the Chief of Police, be
given to the Welfare Department of the County, or to any charitable or
nonprofit organization authorized under its Articles of Incorporation to
participate in a program or activity designed to prevent juvenile delinquency
and which is exempt from income taxation under federal or state law, for
use in any program or activity designed to prevent juvenile delinquency.
3. Public Sale or Retention of Property.
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i. When it is determined that unclaimed property, valued at fifty dollars ($50.00)
or more, shall be retained or shall be sold at public auction, the Police
Department or the administrative official, shall cause notice of such sale or
retention to be published at least five (5) days before the time fixed therefore
once in a newspaper of general circulation published in the county in which
such property was found or confiscated, or otherwise in Orange County.
ii. Such notice shall contain the time and the place of the sale.
iii. Any property remaining unsold after being offered at such public auction may
be destroyed or otherwise disposed of by the City.
iv. Any revenue received from the disposition of public property shall be deposited
and recorded in the appropriate City fund and general ledger account by the
Finance Director in accordance with the approved budget.
1631 COUNCIL AUTHORITY TO WAIVE OR MODIFY REQUIREMENTS
The City Council may waive or modify any requirement in this Part, or approve any
contract procured without compliance with this Part, when the City Council determines
that it is in the City's best interest to do so.
Except as otherwise approved by the City Council, all purchases, regardless of
dollar value, must follow this ordinance with regards to use of purchase orders and bids
or quotes.
SECTION II: If any section, subsection, subdivision, sentence, clause, phrase, word, or
portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision shall not affect the validity
of the remaining portions of this Ordinance. The City Council hereby declares that it
would have adopted this Ordinance and each section, subsection, subdivision, sentence,
clause, phrase, word, or portion thereof, irrespective of the fact that any one or more
sections, subsections, subdivisions, sentences, clauses, phrases, words or portions
thereof be declared invalid or unconstitutional.
SECTION III: The Mayor shall sign and the City Clerk shall certify to the passage and
adoption of this Ordinance and shall cause the same, or the summary thereof, to be
published and posted pursuant to the provisions of law and this Ordinance shall take
effect thirty (30) days after adoption.
PASSED AND ADOPTED, at a regular meeting of the City Council for the City of Tustin
on this 1 st day of October, 2024.
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AUSTIN LUMBARD
MAYOR
ATTEST:
ERICA N. YASUDA, CITY CLERK
APPROVED AS TO FORM:
DocuSigned by:
—31,,: y -
DAVI .31( EF-3P4D6&; CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF TUSTIN )
CERTIFICATION FOR ORDINANCE NO. 1552
Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin,
California, does hereby certify that the whole number of the members of the City Council
of the City of Tustin is five; that the above and foregoing Ordinance No. 1552 was duly
and regularly introduced and read by title only at the regular meeting of the City Council
held on the 1st day of October, 2024, and was given its second reading, passed and
adopted at a regular meeting of the City Council held on the 1st day of October, 2024, by
the following vote:
COUNCILPERSONS AYES:
COUNCILPERSONS NOES:
COUNCILPERSONS ABSTAINED:
COUNCILPERSONS ABSENT:
Erica N. Yasuda, City Clerk
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ARTICLE 1-ADMINISTRATION
CHAPTER 6 - FINANCE
PART PURCHASING
PART 2 PURCHASING'
1621 ADOPTION OF PURCHASING SYSTEM
In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for
the City supplies, services and equipment at the lowest possible cost commensurate with the quality needed, to
exercise positive financial control over purchases, to clearly define authority for the purchasing function and to
ensure the quality of purchases, a purchasing policy is hereby adopted.
This Part shall be known as and may be cited as the "Purchasing System."
Deleted: (Ord. No. 1438, Sec. I, 1-21-14)¶
1622 DEFINITIONS
For the purpose of carrying out the intent of this chapter, the following words, phrases and terms shall have
the meaning ascribed to them in this section:
"Facility" means any plant, building, structure, ground facility, utility system, real property, streets and
highways, or other public work improvement (subject to the limitation found in the definition for public project in
this section).
"Fixed Oaree purchases" means supplies, materials, equipment, and services that can be acouired from o_n_Iv_______-- Deleted: C
----------------------------------------------------------------------------- - - - --- _
one source for which a fixed price has been determined (i.e. postage, professional development, training. Deleted: P
membership, utility services, service contracts with other governmental agencies, debt service payments, etc.).
"General services" means any service that is not a professional service as defined in this section. General
services include but are not limited to ianitorial services, security services, and maintenance work.
"In writing" or "written" means in reduced to writing in a physical or electronic medium that creates a City
record to which future reference may be made, including but not limited email.
"Maintenance work"4ncludesoft hefol lowing: -----------------------------------------------------------
a. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly
operated facility for its intended purposes;
b. Minor repainting;
C. Resurfacing of streets and highways at less than one (1) inch;
d. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of
plants, and servicing of irrigation and sprinkler systems.
"Professional services" means, but is not limited to, any type of professional services that may be lawfully
rendered including the services of architects, attorneys, consultants, engineers, physicians, accountants,
'Editor's notes) —Sec. I of Ord. No. 1438, adopted Jan. 21, 2014, amended Part 2 of Chapter 6 of Article 1 in its
entirety to read as herein set out. Former Part 2 consisted of sections 1621-1626, pertained to the same
subject matter and derived from TCC-1; Ord. 277; Ord. 284; Ord. 871, adopted May 17, 1982; and Ord. No.
1287, adopted Aug. 16, 2004.
Tustin, California, Code of Ordinances Created: 2023-09-17 09:57:" (EST]
(Rev. 25-2023, Update 1)
Page 1 of 13
-- Deleted: means work that
Deleted: all
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information technology professionals, or other individuals or organizations possessing a high degree of ___ ____-_ ---. Deleted: professing
professional or technical expertise, but does not include public projects.
"Public works contract" shall have the meaning set forth in California Public Contract Code 1101, as amended
from time to time.
"Public project" means any of the following to which the Uniform Public Construction Cost Accounting Act
(California Public Contract Code section 22000 et seq.) applies:
a. Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair
work involving any publicly owned, leased or operated facility; or
b. Painting or repainting of any publicly owned, leased or operated facility.
"Purchase order" means a written authorization by the issuing party for the recipient to provide labor,
materials or services for which the issuing party agrees to pay.
"Responsible bid" means an offer, submitted by a responsible bidder in writte2form (physical or digital), to ---------- Deleted: ink or typewritten
furnish supplies, materials, equipment or contractual services in conformity with specifications, delivery terms and
conditions and other requirements included in the invitation for bids.
"Responsible bidder" means a bidder who submits a responsible bid; who has furnished, when requested,
information and data to prove that't&s financial resources, production or service facilities, service_ reputation and ---------- Deleted: his
experience are adequate to make satisfactory delivery of the supplies, materials, equipment or contractual
services which the bids are submitted, and who has- not- - violated, -or attempted to violate, any provision of this ----- Deleted: on
Pa rt.
----- - -- ------ --- -- -
Deleted: made
"Sole �purce" means supplies, materials, e- -- -- -- or services of a unioue nature based on quality______________ Deleted:5
durability, availability, fitness for a particular use, or qualifications, ar orthat e available from only one source.
"Supplies, materials and equipment" mean any and all articles or things which shall be furnished to or used
by the Ci and includes ---
but is not limited - - to goods, - - - vehicles, --supp-lies. ----eguiomen--_ t, machinerv_and _related _________________ Deleted: any agency
maintenance.
------------------------------------------
_----- Deleted: (Ord. No. 1438, Sec. I, 1-21-14)¶
1623 PURCHASING MANAGER
a. Creation of the Position of Purchasing Manager
There is hereby created the position of Purchasing Manager, who shall be the City Manager. The City
Manager may delegate, subject to his or her control and direction, any of the powers and duties conferred upon
asPurchasingManagertoany other officer oremployeeoftheCity --------------------------------- ------------------- Deleted. him
b. Power and Duties
1. As Purchasing Manager, the City Manager directs and supervises the acquisition of all supplies,
materials, equipment and services underthe authority of TCC Section 1415 and in accordance with ----------- Deleted: goods
------------=-------------------- ----------------------------- ---------------
this Part. Deleted: 1623a.
2. Purchasing Agents. In accordance with TCC Section 1623a the City Manager may delegate responsibility
for administering purchasing policies and procedures to one or more department heads. A department
head who has been delegated authority by the Purchasing Manager hereunder is referred to herein as
a Purchasing Agent. Unless the Purchasing Manager directs otherwise in writing, the authorized
Purchasing Agents shall include:
i. Assistan City Manager
ii. Deputy City Manager
(Rev. 25-2023, Update 1)
Page 2 of 13
----------------------------------- Deleted: Deputy
Created: 2023-08-17 09:57:40 [EST]
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iii.
Director of Finance
iv;___
Director of Parks and Recreation Services
- --------------------------------
y. ___
Director of Community_Development______________
vi.
Chief of Police
vii.
Director of Public Works
viii.
Director of Human Resources
Deleted: []
Deleted: ]
3. Purchasing Delegates. Additionally, the Purchasing Manager may delegate authority to the Purchasing
Agents to delegate authority to additional individuals within their supervision who shall be authorized
to make purchases. Individuals delegated purchasing authority& the Purchasing Agents are referred Deleted: hereunder
-------------------------------
to as "Purchasing Delegates". Purchasing Delegates shall be designated in accordance with the
following requirements:
1. A written list of Purchasing Delegates must be submitted to the Finance Director and include the
name and maximum dollar purchasing authority authorized for each individual.
- a. - Awritten list of Purchasing -Delegates -rust be approved on an annual basis-orupan changes In
employment status, whichever is more frequent, by the Purchasing Manager, Finance Director,
and the applicable Purchasing Agent.
iii. The Finance Director must maintain a written record of all approved Purchasing Delegates.
4. Purchasing Manager Approval Authority. The PurchasingMana e i uthorized to approve contracts
g Gam- - ----- pp ----------.;
with an estimated total value including applicable sales tax, shipping charge, surcharge, amendments,
and/or change orders up to the following amounts
-----------------------------------------------------------------------------
Supplies, materials, and equioment that are less than or equal to S200.000
ii. General and professional services that are less than or equal to $200,000; and
iii. The Purchasing Manager may delegate approval of the above contracts to the Purchasing
Agents and Purchasing Delegates.
5. City Council Approval Required. The City Council shall approve contracts with an estimated total value
including applicable sales tax, shipping charge, surcharge, amendments, and/or change orders is for:
i. Supplies, materials, and equipment that are greater than $200,000; and
ii. General and professional services that are greater than $200,000.
Except as otherwise approved by the City Council, all purchases, regardless of dollar value, must follow
this ordinance with regards to use of purchase orders and bids or quotes.
C. Conflict of interest Policy and Prohibitions
Employees and agents ofthe City involved in procurement activity shall not:
1. Receive a rebate, kickback or other unlawful consideration in the selection of those contracting with
the City; or
2. Participate in or attempt to influence the selection process for a contract if he or she has a
relationship with a person or business entity seeking a contract which would subject those employees
to the prohibition of California Government Code section 87100.
(Rev. 25-2023, Update 1)
Deleted: or the Finance Director
Deleted: are
Deleted: each
Deleted: all purchases regardless of dollar value if the
following conditions are met:
Deleted: i. The purchase is for a purpose, and within
an amount, appropriated by City Council; and ¶
]i. The purchase follows this ordinance with regards to
use of purchase orders, contracts and bids or quotes.
-------------------------------------------------------------------------------------------- Deleted: (Ord. No. 1438,Sec. 1, 1-21-14)1
Page 3 of 13
Created: 2823-08-17 09:57:40 [EST]
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1624 PURCHASING PROCEDURE
a. Availability of Funds. Except in emergencies as defined in Section 1625a, no notice of award of contract shall
be issued, no contract shall be signed and no open market purchase order shall be issued unless the
unexpended balance in the appropriation or appropriations concerned is sufficient to defray the amount of
such contract or purchase order.
b. Signatures Authority for Contracts. Except as provided in section 1628d, contracts procured and approved in
accordance with this Part may be signed by the Purchasing Manager or delegated to a Purchasing Agent.
�. Purchaser Responsibilities.Itre shall_bethesponsibilityofthePurchasingManager,PurchasingAgent,_or_____________
Deleted:b
Purchasing Delegate handling a purchase:
1. Combined Purchases: To reduce, to the maximum extent possible, the number of purchase
transactions by combining into bulk orders and contracts the requirements of departments or City for
common -use items or items freguentl)tpurchased-------------------__________________________________________
Deleted: repetitively
2. Vendor Validation: To obtain a completed IRS Form W-9 from any vendor not previously used for City
purchasgs_and su_b-mit it to the4inance,Pepartment_Th_eEir]ano�e Q rtment shall p-erform pr-ceduie--
__Deleted: f
to ensure the validity of all new vendors before any purchase can be made with the new vendor.
Deleted: d
3. Receipt Documentation: To ensure that the person that documents the receipt of the supplies,
Deleted: f
materials, and eguipmentpurchased is not the same individual that authorized the purchase and to
-------------------------------------- -----
follow the procedures of TCC Section 1629 for inspection of materials and equipment.
Deleted: d
4. Bid Selection: Except as otherwise authorized in this Part or by State or Federal law, to select the
Deleted: goods
lowest responsible bidder when bids are solicited, whether formal or informal. If the lowest priced bid
is not selected, then the decision process must be documented on a prescribed form explaining why
the lowest bid was not chosen. This form shall be approved by the Purchasing Manager or Purchasing
Agent, and filed with the applicable contract and purchase order.
5. Sole Source Provider: If the item(s) to be purchased is only available througha_sole source provider, ------------
Deleted: one vendor and or
the department must document the determination to purchase on a prescribed form, obtain approval
from the Purchasing Manager or Finance Director, provide verification that the vendor is the sole______________
Deleted: back up verifying
source provider an file this form with the applicable contract and purchase order_Examples of_______________
Deleted: must be provided
allowable sole source item(s) or services include but are not limited to:
Deleted: .
i. The brand or trade name article, products or proprietary service is the only one which will
properly meet the needs of the City; or
ii. The item or service is unique and/or available only from a single source based on region or
decision of a manufacturer or distributor; or
iii. The item or service is designed to match others already in use or is necessary to be compatible
with others already in use.
6. Contract Terms: Maximum terms for all service contracts do not exceed five years, including extensions
unless otherwise approved or directed by the City Council.
7. Split Purchase Prohibited: Splitting a purchase to avoid applicable procurement thresholds is strictly
prohibited.
8. Federal Funding Compliance: When purchasing with Federal funds, the department must follow the
stricter of either the Uniform Guidance (2 CFR Par 200 Subpart A §200.318 General Procurement
Standards through §200.326 Contract Provisions), or City Policy.
(Rev. 25-2023, Update 1)
Page 4 of 13
Created: 2023-09-17 09:57:40 [EST]
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
.......................................... The Purchasing Manager is authorized to prescribe the use of various types of contracts and orders,
Deleted: c
including, but not limited to, the following:
1. Petty Cash: Use of petty cash is authorized for single purchases of seventy-five dollars ($75.00) or less.
Petty cash reimbursements must be supported by an itemized receipt and approved by the employee's
supervisor. The Finance Department will review the receipts and approvals attached to the request for
petty cash replenishment from each department to verify purchases made are approved and
legitimate.
2. Purchase Qnders__�hall be used for all purchases of su lie materials,�quipment, and services in
-__--
Deleted: o
______
accordance with the following:
;'
Deleted: s
i. Any single item or aggregate purchase with an estimated value of tear thousand dollars ------------
Deleted: goods
($000.00) or greater-
'
----------------------------------------------------------------------------
Deleted: and
ii. When the Purchasing Manager, Purchasing Agent, or Purchasing Delegate expects to make
multiple purchases with a single vendor and these purchases are expected to exceed twen --_-
Deleted: one
thousand dollars ($Z000.00) annually for simila�items,an open purchase order should be_
Deleted: 1
---------
utilized. Open purchase orders must be approved by the Purchasing Manager or Purchasing
Deleted: five
-Agent-and renewed at-east-annuaIly.
Deleted: 5
iii. Fixed charge purchases do not require a Purchase order, regardless of the dollar amount.
Deleted: a single project
�. With the exception of emergencies (as _ define d in TCC Section 1625a) and the _other exceptions_noted in TCC__
Deleted: he or she should utilize
Sections 1625b and 1625c, the Purchasing Manager, Purchasing Agent and Purchasing Delegate shall follow
the following procedures with regards to purchases of supplies materials,,equipment, and services:
Deleted: d
1. Micro -Purchases: A purchase, whether it is a single item or aggregate with an estimated value of less than
Deleted: goods
thirty thousand dollars ($30,000) including surcharge, sales tax, and shipping, may be made without the use
Deleted: and
of formal or informal bids. The Purchasing Agent or Purchasing Delegate shall document the approval of this
micro -purchase method using simplified and cost-effective operational procedures and/or forms established
Deleted: 1
by the Purchasing Manager.
Deleted: For any single item or aggregate purchase with
2� informal Bids or Quotes: The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall solicit
%-'
> '•'
an estimated value of one thousand dollars ($1,000.00)
up to ten thousand dollars ($l0,000.00) t
three (3) informal bids or quotes or
---------------------------------------------
Deleted: unless meeting the bidding exceptions as
i. Purchase of supplies, materials, or equipment with an estimated value between thirty thousand
described in section 1625b,
dollars ($30,000.00) up to and including sixty-five thousand dollars ($65,000.00) including
surcharge, sales tax, and shipping.
Deleted —
Deleted: may
ii. General service contracts with an estimated value between thirty thousand dollars ($30,000) and
up to and including one hundred thousand dollars ($100,000) including amendments or change
Deleted: from the vendors
orders.
Deleted: verbal or
iiiBids or quotes s hal be obtainedlnXritten format.
,
Deleted: i
ivy _,Written documentation of the bids and quotes or justifications for utilizing the bidding exception,
_ —
,,,'-
Deleted: The Purchasing Manager, Purchasing Agent
— —
must be submitted on a prescribed form. This form and related bids or quotes must be filed with
or Purchasing Delegate must submit w
the applicable contract and purchase orders
------
Deleted:
-4 formal Bid s_ThePurchasing Manager,PurchasingAgentorPurchasingDelegateshall_solicitthree(3)_____,----
Deleted:2
formal bids or__ ---------
-- --------- --------------------------- ---------------------------
_• `--
Deleted: For any single item or aggregate purchase with
i. Purchase of supplies, materials, and equipment with an estimated value of more than sixty-five
an estimated value in excess of ten thousand dollars
thousand dollars ($65,000.00) including surcharge, sales tax, and shipping charges,
($10,000.00) t...
Deleted: unless meeting the bidding exceptions as
ii. General service contracts with an estimated value of more than one hundred thousand dollars
described in section 1625b
($100,000) including amendments or change orders.
Deleted:.
Created: 2023-08-17 09:57:40 [EST]
(Rev. 25-2023, Update 1)
Page 5 of 13
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
iii. Bids must be obtained in written format
�v. Written documentation of the bids must be submitted on a prescribed form. This form and
related bids must be filed with the applicable contract and purchase order.
[ ----- T----------------------------------------------------------------------------------------------------------
�. any travel related costs must comply --
the City's Travel Policy. l
Purchases b credit card of su lie materials and_equipment must follow the following procedures: ;
,9----- --- - -- --
1. Credit cards may be provided to employees as determined appropriate by the Finance Director, in
consultation with the employee's immediate supervisor.
2. The Finance Director and in his/her absence the City Manager is responsible forthe issuance of credit
cards, accounting, monitoring, and generally overseeing compliance with these procedures.
3. Credit card limits will be determined by the Finance Director and in his/her absence the urchasin
--------------
Manager. There shall be no cash access feature (cash advance) on the credit cards. The Finance
Director shall establish policies for the safekeeping of credit cards and procedures in the event a credit
card is lost, stolen or destroyed.
4. Credit cards must only be used by City employees for proper City business purposes. Use of credit cards
for personal purchases is prohibited.
1w
Deleted: ing from the vendors
Deleted: i
Deleted: The Purchasing Manager, Purchasing Agent
or Purchasing Delegate must submit w
Deleted: or justifications for meeting the bidding
exception,
Deleted: 3.
Deleted: Any single item or aggregate purchase of
vehicles and heavy-duty equipment and machinery or
maintenance with an estimated value of twenty-five
thousand dollars ($25,000.00) or greater must be
approved by City Council.
Deleted: e
Deleted: Professional development and training costs do
not require purchase orders.
Deleted: should also be in accordance
Deleted:f
5. Employees using credit cards must retain itemize credit card receipts, attach them to the credit card
Deleted: goods
statements and present this documentation to their immediate supervisor for approval. In the case of
Deleted: City
meals and business travel expenses, each receipt must include the names of all persons involved in the
purchase, and a brief description of the business purpose. Receipts shall be reconciled to the monthly
Deleted: detailed
credit card statement by the Finance Department. An employee who fails to provide credit card
receipts to the Finance Department within fi�(5�1 business days of when the charges were_made may _ -_---
Deleted: three
be required, at the Finance Director's discretion, to reimburse the City for the charges, and at the
Deleted: 3
Finance Director's discretion, may have his or her credit card privileges revoked.
6. Each credit card issued in the name of the City of Tustinn]ust be kept in a safe place_and released for_ -------
Deleted: will
use only under the authority of the Finance Director. Credit cards are the property of the City and shall
be returned to the employee's supervisor upon demand or upon termination of employment with the
City, whichever occurs first.
7. Before being issued a credit card, employees must complete and sign the acknowledgement form
stating that they understand and will comply with the City's credit card policy.
8. Examples of allowable uses of credit cards include, but are not limited to:
i. Conferences/training/seminars (registration, airline/car rental, hotel accommodations, meals and
fuel).
ii. Business lunch with representatives from other government agencies or consultants under
contract to the City, furnishing lunch for interview panels and/or evaluation review boards.
iii. Publications/manuals.
iv. Providing meals, equipment and materials to work crews in cases of emergency.
V. Should the credit card be used to purchase suoplie�_materials or services, the purchase must be --------- Deleted: goods
made in a manner consistent with Section 1624c, 1624d, and 1624e,
(Rev. 25-2023, Update 1)
Page 6 of 13
---------- Deleted: (Ord. No.1438, Sec. I, 1-21-14)¶
Creaked; 2023-08-17 09:57:" [EST]
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
1625 EXCEPTIONS TO PURCHASING PROCEDURE
a. Emergency Purchases. The emergency procedure applies to purchases made necessary from an emergency
situation that poses an immediate threatto public health, welfare or safety as determined by the Purchasing
Manager, ---------------------------------------------------------
---- Deleted: for which no time exists to seek Council action
or approval, if such action or approval were otherwise
1. An emergency situation is defined as follows: required
i. A public disaster;
ii. An immediate need to prepare for national or local defense;,r------------------------------------------- Deleted: and
iii. A breakdown of machinery or an essential service immediately affecting public health, safety, or
welfare of the public or of City staff.
2. The Purchasing Manager, a Purchasing Agent, or any Purchasing Delegate may purchase supplies,
equipment, or services directly subject to parameters set forth in City Council resolution(s) or
administrative guidelines. The Purchasing Agent or Purchasing Delegate will submit a report of the
circumstances of the emergency and a summary of the emergency purchases to the Purchasing
Mnage(jb repo 14WTefiledw_i_t_htheCiY-C_ounc__ -_------------ _ __-______ ____-____ ______-__ -Deleted: as soon as possible
b. Bidding: Exceptions. Deleted: will
1. Purchases of supplies and equipment and contracts for Public Projects, except Public Works Contracts, Deleted: and will be entered in the minutes of the
shall be by bidding procedures pursuant to the provisions of Section 1624 and as described in sections Council at its next regular meeting
1626 and 1627 of this Part;
2. Purchase amount is less than thirty thousand ($30,000). including surcharge, sales tax, and shipping;
3. Professional service contracts shall follow the provisions of Section 1626;
,. __- Bidding shall be dispensed with upon authorization_ of the Purchasing Manager or the Finance_ Director -------- Deleted: 2
on a prescribed form and retained with the applicable contract and Purchase order- ____ --- Deleted:
i. Where bidding would be impossible or impractical;
ii. Where the commodity or service can be obtained from a sole sourcevendor.,When procuring _____ --- Deleted: only one (1)
through a sole source vendor, the vendor's qualification and justification for sole sourcemust _b_ be Deleted: When there is only one (1) vendor that
documented and supported in order to dispense with bidding requirements;
provides the product or service
iii. Where the price of the commodity or service is controlled by law such that bidding would be Deleted: details
unlikely to result in any cost savings; or
iv. For Public Works Contracts that are subjectto the provisions of the California Public Contract
Code, in which case the Contract(s) shall be procured in conformity with the Public Contract
Code.
!�_ _ Forthepurposesofthissectjon_---------------------------------------------------------------------------------- Deleted:3
j. "Impossible" shall mean impossibility or extreme and unreasonable difficulty or expense; and
ii. 'Impractical' shall mean incapable of being performed by the bid procedure.
------------------------------------------------------------------------------------------------------------------ Deleted: 4. Whenever exceptions to bidding
C. Other Exceptions. When in the opinion of the Purchasing Manager or Purchasing Agent supplies, materials or procedures are authorized, the Purchasing Manager shall
equipment can be more efficiently or more cheaply obtained if acquired on behalf of the City by the State prepare a report in detail to the City Council at the next
Department of General Services or through the County of Orange Cooperative Purchasing Program, or other regularly scheduled Council meeting.
government purchasing program, the Purchasing Manager or Purchasing Agent may Proceed with the
purchase after following contract approval requirements provided in Section 1623btAcquisition of any such__----- Deleted: shall so advise the City Council.
(Rev. 25-2023, Update 1)
Page 7 of 13
Created; 2023-00-17 09:57:40 [EST]
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
supplies, materials or equipment by the State Department of General Services or through the County of
Orange Cooperative Purchasing Program or other government purchasing program may be authorized by
resolution ofthe City Council.
---------- Deleted: (Ord. No. 1438, Sec. I, 1-21-14)¶
1626 PROFESSIONAL SERVICES
a. Professional service providers should be evaluated through a qualification -based selection process.
Therefore. professional service contracts do not readily fall within the cost -based competitive bidding
process. Selection of professional service contracts must follow the guidelines in 5gctions 1626b and 1626c.
b. Guidelines for Selection. The Purchasing Manager, Purchasing Agent or Purchasing Delegate primarily
responsible for the project for which professional ApMces are required shall develop a detailed scope of
work and select firms or individuals based on demonstrated competence and professional qualifications
necessary for the satisfactory performance of the services required, and may ]ncludG such factors as_
1. Overall professional experience, reliability, and continuity of the firm as related to the tasks described
in the scope of work
2. Professional experience of the firm in successfully executing e� rvices of -a similar nature;
3. Adequacy of personnel numbers within specific disciplines required to complete the work required by
the scope of work
4. Experience and training of key personnel as related to the tasks described in the scope of work
5. Adequacy of number of principal(s) which are intended to be assigned to performance of the contract;
6. Knowledge of applicable regulations and technology associated with theAervices;
7. Quality and timeliness of recently completed or nearly completed projects which were similarto the
Deleted: Use of Requests for Proposals. The Purchasing
Manager, Purchasing Agent or Purchasing Delegate shall
make use of the Request for Proposal (RFP) process and/or
obtain quotes for Professional Services whenever
practical.
Deleted: s
Deleted: P
Deleted: 5
Deleted: their ability to perform the specific functions
including; but not limited to,
Deleted: solicitation for proposals or bids
Deleted: contracts
Deleted: solicitation for proposals or bids
Deleted: work
Deleted: solicitation for proposals or bids
Deleted: contract
work described in the scope of work ___________________ Deleted: solicitation for proposals or bids
8. Specialized qualifications for the services to be performed.
Such factors shall be weighed by the Purchasing Manager, Purchasing Agent or Purchasing Delegate and by Deleted: contract
the City department primarily responsible for the project according to the nature of the ens rvices, the needs -of the
---- -- ---", - Deleted: contract for which the
City and the complexity and special requirements of the specific services that will be provided.
------- ----------------------=
Deleted: c.
'------------------------------------------------------------------------------------------------------------------'
cam___ Quotes and Proposals_
1. Contracts with an estimated value of uo to and including sixtv-five thousand dollars (565.000) may be
entered after obtaining one quote.
2. For contracts with an estimated value of more than sixty-five thousand dollars ($65,000), the
responsible department should request a written proposal from no less than three available and
qualified consultants. Where three consultants cannot be found, the responsible department may select
from less than three available and qualified consultants. Selections based on fewer than three
consultants must be documented on a prescribed form, approved by the Purchasing Manager or
Purchasing Agent, and retained with the applicable contract and purchase order.
3. A formal RFP is not required for professional service contracts. However, if a formal RFP is used, the
Purchasing Manager, Purchasing Agent or Purchasing Delegate shall abide by the following procedures:
A Request for Proposal solicitation document shall be issued to potential individuals or firms. The
solicitation document shall discuss the following:
Created: 2023-08-17 09:57:46 [EST]
(Rev. 25-2023, Update 1)
Page 8 of 13
--- Deleted: RFP Procedures. If a formal RFP is used, the
Purchasing Manager, Purchasing Agent or Purchasing
Delegate shall abide by the following procedures: ¶
1. A Request for Proposal solicitation document shall be
issued to potential individuals or firms. The solicitation
document shall discuss the following: ¶
]. Scope of work or specification desired. ¶
ii. List any required qualifications. ¶
Ill. List the evaluation criteria. ¶
iv. The date of submission for the response by the
vendor. ¶
v. Only criteria disclosed in the solicitations maybe used
to evaluate the supplies or services proposed. ¶
2. The solicitation document shall be made available to a
minimum of three (3) qualified firms or individuals and
shall be made available for no less than fourteen (14)
calendar days....
Deleted: 3
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
i. Scope of work or specification desired.
ii. List any required qualifications.
iii. List the evaluation criteria.
iv. The deadline for submission of the response by the vendor.
V. Only criteria disclosed in the solicitations may be used to evaluate the responsive proposals.
The solicitation document shall be made available to a minimum of three (3) qualified firms or
individuals and shall be made available for no less than fourteen (14) calendar days.
d. Evaluation of quotes and proposals received will be conducted by either knowledgeable individual or a ---
review jgAgl, The evaluation factors and the final decision must be documented on a prescribed form,
------------------------------------------------------------------------------------------------
approved by the Purchasing Manager or Purchasing Agent, and retained with the applicable contract and
purchase orders --
- - -----------------------------------------------
-- --- ----- - ---- - --- --- - - - -------------------------
1627 INFORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Informal Bidding Procedures. The following shall govern purchases of supplie�,_services, equipment and the
selection of contractors when a Public Project is anticipated to fall within the monetary limits on informal
bids described in applicable laws and regulations, including, but not limited to, the limitations established
pursuant to California Public Contract Code �ection_22032, as the same may be adjusted from time to time:
1. The City shall prepare a notice of the opportunity to bid which describes the projectin general terms,
states the time and place for the submission of bids and describes how to obtain more detailed
information about the project.
2. The City shall mail the notice to all contractors for the category of the work to be bid, as shown on the
list of contractors developed and maintained by the Department of Public Works in accordance with
criteria promulgated from time to time by the California Uniform Construction Cost Accounting
Commission ("Commission").
3. The City may also mail the notice to all construction trade journals specified by the Commission forthe
County of Orange. Additional contractors and/or construction trade journals may also be notified at
the discretion of the purchasing agent; provided, however, (1) if the City has not prepared a list of
qualified contractors forthe particular category of work to be performed, the notice inviting bids shall
be sent only to the construction tradejournals specified by the Commission; and (2) if the product or
service is proprietary in nature such that it can be legally obtained only from a certain contractor(s),
the notice inviting informal bids may be sent exclusively to such contractor(s).
4. All mailings of notices to contractors and construction trade journals pursuant to this section shall be
completed not less than ten (10) calendar days before bids are due.
b. Bid Selection.
Deleted: n
Deleted: committee
Deleted: Discussions maybe conducted, at the discretion
of the Purchasing Manager, Purchasing Agent or
Purchasing Delegate, with one (1) or more responsible
offerors who has submitted a proposal and is determined
--to be -reasonably -susceptible -for being -accepted for award.
These discussions may be held for the purpose of
clarification to assure full understanding of responsiveness
to the solicitation requirements.
Deleted: 4. The Purchasing Manager, Purchasing
Agent or Purchasing Delegate shall notify the selected
contractor and obtain a written contract.
Deleted: (Ord. No. 1438, Sec. I, 1-21-14)1
Deleted- goods
Deleted: s
Except as otherwise provided herein, purchases of su lie services,,equipment, aMZ blic,projects __
----- Deleted: goods
shall be awarded to the lowest responsible bidder. The determination of the "lowest responsible
-
Deleted: and
bidder" shall be determined by the Purchasing Manager, Purchasing Agent or Purchasing Delegate
authorized to conduct the procurement.
Deleted: p
Exceptions: Purchases ofsupplje5,services, equipment and Public Projects_(other than Public Works
Deleted: p
Contracts and contracts for Public Projects) may be awarded to a bidder other than the lowest
Deleted: goods
responsible bidder only upon a written finding, approved by the Purchasing Manager or Purchasing
(Rev. 25-2023, Update 1)
Page 9 of 13
Created: 2023-00-17 09:57:40 (EST]
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
Agent, or for contracts over $200,000 by the City Council, and supported with written documentation
setting forth the reasons that greater overall value to the City will be achieved by awarding to the other
bidder. Alternatively, the Purchasing Manager, Purchasing Agent or Purchasing Delegate may reject all
bids and either halt the procurement or conduct the procurement again. Awards of Public Works
Contracts and contracts for Public Projects shall be made in accordance with State law.
-- Deleted: (Ord. No. 1438, Sec. I, 1-21-14)1
1628 FORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Bid Solicitation Procedures.
1. The City Council shall approve plans and specifications for all Public Projects and Public Works
Contracts which are required per applicable laws and regulations.
2. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall prepare and provide for
advertisement a notice inviting formal bids, stating the time and place forthe receiving and opening of
sealed bids and distinctly describing the public project, commodity, or class of commodities. The
Purchasing Manager, Purchasing Agent or Purchasing Delegate shall publish each and every notice
inviting bids -in a-ccorclance with the following requirements: - -
I. The notice shall be published in accordance with the requirements of California Public Contracts
Code fiction 20164, as that -section -may -be modified. Deleted: s
ii. Contracts for services forthe painting, maintenance or repair of public buildings and works
specifically governed by Government Code Sections 37901 and 37902 shall be subject to the
solicited bid process in accordance with applicable laws.
iii. The purchasing agent shall, in addition, solicit bids from prospective bidders for the class of
commodities being purchased or sold as listed on the bidders list, by sending them copies of the
,notice or such other notice as will acquaint them with the proposed purchase or sale. All pending__--_
purchases or sales shall also, in all cases, be advertised by posting a copy of the contract bid form
on the City's websitec ---
iv. In addition to notice required by this section, the Purchasing Manager, Purchasing Agent or
Purchasing Delegate may give such other notice as he or she deems proper.
3. All bids shall be presented under sealed cover.pne (1) of the following forms of bidder's security is also
required:
-------------- --
i. Cashier's check made payable to the City;
ii. A certified check made payable to the City; or
iii. A bidder's bond executed by an admitted surety insurer, made payable to the City.
Deleted: newspaper
Deleted: a public bulletin board in or adjacent to the
Purchasing Manager, Purchasing Agent or Purchasing
Delegate's office or on a bulletin board in a prominent
place in the City Hall
Deleted: and accompanied by o
4. The security shall be in an amount equal to at least ten (10) percent of the amount bid. A bid shall not
be considered unless one (1) of the forms of responsible bidder's security is,[eceived by the City.If-the -__-__--- Deleted: enclosed with it
bidder to whom the contract is awarded shall for ten (10) days after the award fail or neglect to enter
into the contract and file the required securities, the City shall deposit in its treasury the bid security if
the security is in the form of cash or its equivalent.
5. Provisions shall be included in any invitation for bid and in any contract documents for the furnishing of
securities and/or the withholding of retentions earned to ensure performance under a contract in an
amount and type as determined by the Director of Public Works, consistent with State law. Provisions
shall be included in any invitation for bid and in any contract documents for insurance coverage in an
amount, type and term as may be specified by the City.
(Rev. 25-2023, Update 1)
Page 10 of 13
Created: 2a23-00-17 09:57;" [EST]
Docusign Envelope ID: 7AB05F87-574B-4CBB-8Bll-B9D77ED61BD7
6. When required by State law, the contractor shall not pay less than the general prevailing rates of
wages, as determined by the Director of the Department of Industrial Relations, to all workers
employed on a Public Project or Public Works Contract.
b. Formal Bid Opening Procedure. Bids shall be submitted to the City through the City's online bidding system.
Submittals are only accepted electronically through this platform and automatically time stamped. Late
submittals will not be accepted through the system or in person. The Purchasing Manager, or his or her
designee, shall make the bid results available for public inspection as soon as possible within the online
bidding system. Bid results shall remain publicly accessible for a period of one (1) year after bid opening -
c. Rejection of Formal Bids. In its discretion, the City Council may reject any all bids presented if the
Purchasing Manager, prior to rejecting all bids, furnishes a written notice to an apparent low bidder,
informing the bidder of the City's intention to reject the bid at least two (2) business days prior to the
jneeting at which_the City Council intends to reject the bid. _If after the first invitation of bids all bids _are
rejected, after reevaluating its cost estimates of the project, the City Council may: (a) abandon the project;
(b) re -advertise for bids in the manner prescribed by this chapter; or (c) perform the work with City
employees, after passing a resolution by a four -fifths vote of the City Council declaring that the project can
be performed more economically by City employees.
d. Award of Formal Bid Contracts. All Public Works Contracts with a value exceeding the limitations established
pursuant to California Public Contract Code section 22032, as the same may be adjusted from time to time,
-------------------
shall require the approval of the City Council and shall be executed by the Mayor and approved as to form by
the City Attorney. Unless the agreement provides otherwise, the City Manager may approve dollar increases
to contracts that have been approved by the City Council. The extent of the City Manager's authority to
approve such increases shall be in the amount of ten thousand dollars ($10,000.00) or ten (10) percent,
whichever is greater, or an amount specifically designated by the City Council for the particular project. If a
contract is awarded, it shall be awarded by the City Council to the lowest responsible bidder that submits a
responsive bid. The determination of the "lowest responsible bidder" shall be at the discretion of the City
Council pursuant to the findings and recommendations presented by the Purchasing Manager, Purchasing
Agent or Purchasing Delegate at the time of award of the contract. In determining the lowest responsible
bidder, the following shall be considered by the City Council, in addition to the price:
1. The ability, capacity and skill of the bidder to perform the contract or provide the services required;
2. Whether the bidder can perform the contract or provide the services promptly, or within the time
specified, without delay or interference;
3. The sufficiency of the bidder's financial resources to perform the contract or provide the service;
4. The ability of the bidder to provide future maintenance and services where such maintenance and
service is essential;
5. The quality and timeliness of the bidder's performance on previous contracts for the City;
6. Litigation by the bidder on previous contracts with the City;
7. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
8. The bidder is licensed under the Contractors' State License Law (commencing with Section 7000 of the
Business and Professions Code of the State of California, as the same may be amended from time to
time) to perform the work for which it submitted a bid proposal.
e. Tie Formal Bids. If two (2) or more formal bids received are for the same total amount or unit price, quality
and service being equal, the City Council may, at its discretion, accept the one (1) it chooses or accept the
lowest bid made by and after negotiation with the tie bidders.
(Rev. 25-2023, Update 1)
Page 11 of 13
Created: 2023-00-17 09:57:40 (EST]
Deleted: Formal Bid Opening Procedure. Sealed bids shall
be submitted to the City Clerk with the bid number written
on the envelope where they will be date and time
stamped. All bids must be received and date and time
stamped by the City Clerk's clock on or before the date
and time due; late bids (as determined by reference to the
City Clerk's clock) will be returned unopened. The
Purchasing Manager, or his or her designee, shall publicly
open all bids at the time and place stated in the public
notice. A tabulation of all bids shall be available for public
Inspection in the City Clerk's office during regular business
hours for a period of one (1) year after bid opening.
Deleted: hearing
Deleted: s
Docusign Envelope ID: 7AB05F87-574B-4CBB-8B11-B9D77ED61BD7
f. No Formal Bids. If no bids are received through the formal or informal procedure, the project may be
performed by the employees of the City by force account or through a negotiated contract without further
complying with this ems ction.-_-_----------
-------------------------------------------------------------------
Pothing contained in this section is intended to_be in conflict with_applicable state -law- including Sections 37901
and 37902, and Sections 37931 through 37935, of the Government Code of the State of California.
- --------------------------------------
1629 INSPECTION OF MATERIALS, EQUIPMENT, ETC.
Deleted: chapter
__ - Deleted: g. Bid Selection. If a contract is awarded, it
shall be to the lowest responsible bidder that submits a
responsive bid. The determination of the "lowest
responsible bidder" shall be made in accordance with
subsection d, above.
Deleted: h.
Deleted: (Ord. No. 1438, Sec. I, 1-21-14)¶
a. The receiving departments shall inspect deliveries of supplies, materials and equipment or the furnishing of
contractual services toansure their conformance with the specifications setforth in -the -purchase order o_ r_---------- Deleted: i
contract.
------------------------
b. Any department which has the necessary facilities and staff for adequate inspection may be authorized and
directed by the City Council, on the recommendation of the Purchasing Manager, Purchasing Agent or
- Purchasing Delegate, to inspect deliveries made to other departments,
C. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall have authority to require chemical
and physical tests of samples submitted with bids and samples of deliveries to the extent necessary to
determine their quality and conformance with the specifications. For such tests, the Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall have the authority to make use of the laboratory facilities of
any department or to engage the services of any outside laboratory.
d. In accordance with section 1624c3, the person who documents the receipt of the supplies, materials and
equipment purchased must not be the same individual who authorized the purchase.
- - -------------------------------------------------------------------------
1630 DISPOSITION OF PROPERTY
a. Surplus or Obsolete Commodities.
-------------" I Deleted: (Ord. No. 1438, Sec. I, 1-21-14)1
1. All departments shall submit to the Purchasing Manager at such times and in such form as he or she
shall prescribe, reports showing stocks of all supplies, materials and equipment which are no longer
used or which have become obsolete, worn out or scrapped. The Purchasing Manager shall have
authority to transfer any such commodities which are usable to another or other departments in th_ a ---------- Deleted: of
same or similar articles.
2. The Purchasing Manager shall make a written estimate of the value of any surplus items not usable by
any City department or not required for public use. The Purchasing Manager shall have the authority to
sell all such supplies, materials and equipment which cannot be used by any department or which have
been found by the City Council not to be required for public use or to exchange or trade in such articles
in part or full payment for new supplies, materials or equipment of a similar nature. Any such sale,
exchange or trade-in shall be made in accordance with Section 1626 or Section 1627, whichever is
applicable. The Purchasing Manager shall report in detail, including the amount of revenue received
upon any such sale, to the City Council within forty-five (45) days thereafter.
b. Unclaimed Property in Possession of Police Department.
1. Unclaimed Property Defined. "Unclaimed property" is all personal property, the title of which is not
vested in the City of Tustin, which property has come into the possession of the City of Tustin as lost
property, property which has been confiscated or impounded by the City as being in violation of law or
(Rev. 25-2023, Update 1)
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any other personal property coming into possession of the City of Tustin which is not specifically
provided for by any other provision of law.
2. Procedure.
I. If the estimated value of the unclaimed property exceeds ten dollars ($10.00) the Police
Department or the administrative official who obtained possession of the property shall, within
ten (10) days of receipt of the property, notify the owner, if his identity is reasonably
ascertainable, that it possesses the property, and where it may be obtained. The Police
Department or the administrative official may require payment by the owner of a reasonable
charge to defray costs of storage and care of the property.
ii. If the owner appears within ninety (90) days of the notification given in subparagraph a. above,
proves his ownership of the property, and pays all reasonable charges, the Police Department or
the administrative official shall restore the property to him.
After retention of the property for four (4) months, the property may be
a) Sold at public auction to the highest bidder;
b) Retatned bythe City of Tustin if It Is determined that the property is needed for a public
use, and after public notice has been made of the City's intention to retain the property; or
c) Where the property is a bicycle or toy in the possession of the Police Department, the
property may, at the discretion of the Chief of Police, be given to the Welfare Department
of the County, or to any charitable or nonprofit organization authorized under its Articles of
Incorporation to participate in a program or activity designed to prevent juvenile
delinquency and which is exempt from income taxation under federal or state law, for use
in any program or activity designed to prevent juvenile delinquency.
Public Sale or Retention of Property.
I. When it is determined that unclaimed property, valued at fifty dollars ($50.00) or more, shall be
retained or shall be sold at public auction, the Police Department or the administrative official,
shall cause notice of such sale or retention to be published at least five (5) days before the time
fixed therefore once in a newspaper of general circulation published in the county in which such
property was found or confiscated, or otherwise in Orange County.
ii. Such notice shall contain the time and the place ofthe sale.
iii. Any property remaining unsold after being offered at such public auction may be destroyed or
otherwise disposed of by the City.
iv. Any revenue received from the disposition of public property shall be deposited and recorded in
the appropriate City fund and general ledger account by the Finance Director in accordance with
the approved budget.
a631 COUNCIL AUTHORITY TO WAIVE OR MODIFY REQUIREMENTS Deleted: (Ord. No.1438, Sec.1, 1-21-14)11
The City Council may waive or modify any requirement in this Part, or approve any contract procured without
compliance with this Part, when the City Council determines that it is in the City's best interest to do so.
(Rev. 25-2023, Update 1)
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ARTICLE 1-ADMINISTRATION
CHAPTER 6 - FINANCE
PART 2 PURCHASING
PART 2 PURCHASING'
1621 ADOPTION OF PURCHASING SYSTEM
In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for
the City supplies, services and equipment at the lowest possible cost commensurate with the quality needed, to
exercise positive financial control over purchases, to clearly define authority for the purchasing function and to
ensure the quality of purchases, a purchasing policy is hereby adopted.
This Part shall be known as and may be cited as the "Purchasing System."
1622 DEFINITIONS
For the purpose of carrying out the intent of this chapter, the following words, phrases and terms shall have
the meaning ascribed to them in this section:
"Facility" means any plant, building, structure, ground facility, utility system, real property, streets and
highways, or other public work improvement (subject to the limitation found in the definition for public project in
this section).
"Fixed charge purchases" means supplies, materials, equipment, and services that can be acquired from only
one source for which a fixed price has been determined (i.e. postage, professional development, training,
membership, utility services, service contracts with other governmental agencies, debt service payments, etc.).
"General services" means any service that is not a professional service as defined in this section. General
services include but are not limited to janitorial services, security services, and maintenance work.
"In writing" or "written" means in reduced to writing in a physical or electronic medium that creates a City
record to which future reference may be made, including but not limited email.
"Maintenance work" includes any of the following:
a. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly
operated facility for its intended purposes;
b. Minor repainting;
C. Resurfacing of streets and highways at less than one (1) inch;
d. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of
plants, and servicing of irrigation and sprinkler systems.
"Professional services" means, but is not limited to, any type of professional services that may be lawfully
rendered including the services of architects, attorneys, consultants, engineers, physicians, accountants,
'Editor's note(s)—Sec. I of Ord. No. 1438, adopted Jan. 21, 2014, amended Part 2 of Chapter 6 of Article 1 in its
entirety to read as herein set out. Former Part 2 consisted of sections 1621-1626, pertained to the same
subject matter and derived from TCC-1; Ord. 277; Ord. 284; Ord. 871, adopted May 17, 1982; and Ord. No.
1287, adopted Aug. 16, 2004.
Tustin, California, Code of Ordinances
(Rev. 25-2023, Update 1)
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information technology professionals, or other individuals or organizations possessing a high degree of
professional or technical expertise, but does not include public projects.
"Public works contract" shall have the meaning set forth in California Public Contract Code 1101, as amended
from time to time.
"Public project" means any of the following to which the Uniform Public Construction Cost Accounting Act
(California Public Contract Code section 22000 et seq.) applies:
Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair
work involving any publicly owned, leased or operated facility; or
Painting or repainting of any publicly owned, leased or operated facility.
"Purchase order" means a written authorization by the issuing party for the recipient to provide labor,
materials or services for which the issuing party agrees to pay.
"Responsible bid" means an offer, submitted by a responsible bidder in written form (physical or digital), to
furnish supplies, materials, equipment or contractual services in conformity with specifications, delivery terms and
conditions and other requirements included in the invitation for bids.
"Responsible bidder" means a bidder who submits a responsible bid; who has furnished, when requested,
information and data to prove that its financial resources, production or service facilities, service reputation and
experience are adequate to make satisfactory delivery of the supplies, materials, equipment or contractual
services for which the bids are submitted, and who has not violated, or attempted to violate, any provision of this
Part.
"Sole source" means supplies, materials, equipment or services of a unique nature based on quality,
durability, availability, fitness for a particular use, or qualifications, or that are available from only one source.
"Supplies, materials and equipment" mean any and all articles or things which shall be furnished to or used
by the City, and includes but is not limited to goods, vehicles, supplies, equipment, machinery and related
maintenance.
1623 PURCHASING MANAGER
Creation of the Position of Purchasing Manager
There is hereby created the position of Purchasing Manager, who shall be the City Manager. The City
Manager may delegate, subject to his or her control and direction, any of the powers and duties conferred upon
the as Purchasing Manager to any other officer or employee of the City.
Power and Duties
As Purchasing Manager, the City Manager directs and supervises the acquisition of all supplies,
materials, equipment, and services under the authority of TCC Section 1415 and in accordance with
this Part.
Purchasing Agents. In accordance with TCC Section 1623a the City Manager may delegate responsibility
for administering purchasing policies and procedures to one or more department heads. A department
head who has been delegated authority by the Purchasing Manager hereunder is referred to herein as
a Purchasing Agent. Unless the Purchasing Manager directs otherwise in writing, the authorized
Purchasing Agents shall include:
Assistant City Manager
Deputy City Manager
(Rev. 25-2023, Update 1)
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iii. Director of Finance
iv. Director of Parks and Recreation Services
V. Director of Community Development
vi. Chief of Police
vii. Director of Public Works
viii. Director of Human Resources
3. Purchasing Delegates. Additionally, the Purchasing Manager may delegate authority to the Purchasing
Agents to delegate authority to additional individuals within their supervision who shall be authorized
to make purchases. Individuals delegated purchasing authority by the Purchasing Agents are referred
to as "Purchasing Delegates". Purchasing Delegates shall be designated in accordance with the
following requirements:
i. A written list of Purchasing Delegates must be submitted to the Finance Director and include the
name and maximum dollar purchasing authority authorized for each individual.
ii. A written list of Purchasing Delegates must be approved on an annual basis or upon changes in
employment status, whichever is more frequent, by the Purchasing Manager, Finance Director,
and the applicable Purchasing Agent.
iii. The Finance Director must maintain a written record of all approved Purchasing Delegates.
4. Purchasing Manager Approval Authority. The Purchasing Manager is authorized to approve contracts
with an estimated total value including applicable sales tax, shipping charge, surcharge, amendments,
and/or change orders up to the following amounts:
i. Supplies, materials, and equipment that are less than or equal to $200,000;
ii. General and professional services that are less than or equal to $200,000; and
iii. The Purchasing Manager may delegate approval of the above contracts to the Purchasing
Agents and Purchasing Delegates.
5. City Council Approval Required. The City Council shall approve contracts with an estimated total value
including applicable sales tax, shipping charge, surcharge, amendments, and/or change orders is for:
Supplies, materials, and equipment that are greater than $200,000; and
ii. General and professional services that are greater than $200,000.
Except as otherwise approved by the City Council, all purchases, regardless of dollar value, must follow
this ordinance with regards to use of purchase orders and bids or quotes.
C. Conflict of interest Policy and Prohibitions
Employees and agents of the City involved in procurement activity shall not:
1. Receive a rebate, kickback or other unlawful consideration in the selection of those contracting with
the City; or
2. Participate in or attempt to influence the selection process for a contract if he or she has a
relationship with a person or business entity seeking a contract which would subject those employees
to the prohibition of California Government Code section 87100.
(Rev. 25-2023, Update 1)
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1624 PURCHASING PROCEDURE
Availability of Funds. Except in emergencies as defined in Section 1625a, no notice of award of contract shall
be issued, no contract shall be signed and no open market purchase order shall be issued unless the
unexpended balance in the appropriation or appropriations concerned is sufficient to defray the amount of
such contract or purchase order.
Signatures Authority for Contracts. Except as provided in section 1628d, contracts procured and approved in
accordance with this Part may be signed by the Purchasing Manager or delegated to a Purchasing Agent.
C. Purchaser Responsibilities. It shall be the responsibility of the Purchasing Manager, Purchasing Agent, or
Purchasing Delegate handling a purchase:
1. Combined Purchases: To reduce, to the maximum extent possible, the number of purchase
transactions by combining into bulk orders and contracts the requirements of departments or City for
common -use items or items frequently purchased.
2. Vendor Validation: To obtain a completed IRS Form W-9 from any vendor not previously used for City
purchases and submit it to the Finance Department. The Finance Department shall perform procedures
to ensure the validity of all new vendors before any purchase can be made with the new vendor.
3. Receipt Documentation: To ensure that the person that documents the receipt of the supplies,
materials, and equipment purchased is not the same individual that authorized the purchase and to
follow the procedures of TCC Section 1629 for inspection of materials and equipment.
4. Bid Selection: Except as otherwise authorized in this Part or by State or Federal law, to select the
lowest responsible bidder when bids are solicited, whether formal or informal. If the lowest priced bid
is not selected, then the decision process must be documented on a prescribed form explaining why
the lowest bid was not chosen. This form shall be approved by the Purchasing Manager or Purchasing
Agent, and filed with the applicable contract and purchase order.
5. Sole Source Provider: If the item(s) to be purchased is only available through a sole source provider,
the department must document the determination to purchase on a prescribed form, obtain approval
from the Purchasing Manager or Finance Director, provide verification that the vendor is the sole
source provider, and file this form with the applicable contract and purchase order. Examples of
allowable sole source item(s) or services include but are not limited to:
The brand or trade name article, products or proprietary service is the only one which will
properly meet the needs of the City; or
The item or service is unique and/or available only from a single source based on region or
decision of a manufacturer or distributor; or
iii. The item or service is designed to match others already in use or is necessary to be compatible
with others already in use.
Contract Terms: Maximum terms for all service contracts do not exceed five years, including extensions
unless otherwise approved or directed by the City Council.
Split Purchase Prohibited: Splitting a purchase to avoid applicable procurement thresholds is strictly
prohibited.
Federal Funding Compliance: When purchasing with Federal funds, the department must follow the
stricter of either the Uniform Guidance (2 CFR Par 200 Subpart A §200.318 General Procurement
Standards through §200.326 Contract Provisions), or City Policy.
(Rev. 25-2023, Update 1)
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The Purchasing Manager is authorized to prescribe the use of various types of contracts and orders,
including, but not limited to, the following:
Petty Cash: Use of petty cash is authorized for single purchases of seventy-five dollars ($75.00) or less.
Petty cash reimbursements must be supported by an itemized receipt and approved by the employee's
supervisor. The Finance Department will review the receipts and approvals attached to the request for
petty cash replenishment from each department to verify purchases made are approved and
legitimate.
Purchase Orders: Shall be used for all purchases of supplies, materials, equipment, and services in
accordance with the following:
Any single item or aggregate purchase with an estimated value of ten thousand dollars
($10,000.00) or greater.
When the Purchasing Manager, Purchasing Agent, or Purchasing Delegate expects to make
multiple purchases with a single vendor and these purchases are expected to exceed twenty
thousand dollars ($20,000.00) annually for similar items, an open purchase order should be
utilized. Open purchase orders must be approved by the Purchasing Manager or Purchasing
Agent and renewed at least annually.
iii. Fixed charge purchases do not require a purchase order, regardless of the dollar amount.
With the exception of emergencies (as defined in TCC Section 1625a) and the other exceptions noted in TCC
Sections 1625b and 1625c, the Purchasing Manager, Purchasing Agent and Purchasing Delegate shall follow
the following procedures with regards to purchases of supplies, materials, equipment, and services:
1. Micro -Purchases: A purchase, whether it is a single item or aggregate with an estimated value of less than
thirty thousand dollars ($30,000) including surcharge, sales tax, and shipping, may be made without the use
of formal or informal bids. The Purchasing Agent or Purchasing Delegate shall document the approval of this
micro -purchase method using simplified and cost-effective operational procedures and/or forms established
by the Purchasing Manager.
Informal Bids or Quotes: The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall solicit
three (3) informal bids or quotes for:
i. Purchase of supplies, materials, or equipment with an estimated value between thirty thousand
dollars ($30,000.00) up to and including sixty-five thousand dollars ($65,000.00) including
surcharge, sales tax, and shipping.
ii. General service contracts with an estimated value between thirty thousand dollars ($30,000) and
up to and including one hundred thousand dollars ($100,000) including amendments or change
orders.
iii. Bids or quotes shall be obtained in written format.
iv. Written documentation of the bids and quotes or justifications for utilizing the bidding exception,
must be submitted on a prescribed form. This form and related bids or quotes must be filed with
the applicable contract and purchase order.
Formal Bids: The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall solicit three (3)
formal bids for:
Purchase of supplies, materials, and equipment with an estimated value of more than sixty-five
thousand dollars ($65,000.00) including surcharge, sales tax, and shipping charges,
General service contracts with an estimated value of more than one hundred thousand dollars
($100,000) including amendments or change orders.
(Rev. 25-2023, Update 1)
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iii. Bids must be obtained in written format.
iv. Written documentation of the bids must be submitted on a prescribed form. This form and
related bids must be filed with the applicable contract and purchase order.
f. Any travel related costs must comply with the City's Travel Policy.
g. Purchases by credit card of supplies, materials, and equipment must follow the following procedures:
1. Credit cards may be provided to employees as determined appropriate by the Finance Director, in
consultation with the employee's immediate supervisor.
2. The Finance Director and in his/her absence the Purchasing Manager is responsible for the issuance of
credit cards, accounting, monitoring, and generally overseeing compliance with these procedures.
3. Credit card limits will be determined by the Finance Director and in his/her absence the Purchasing
Manager. There shall be no cash access feature (cash advance) on the credit cards. The Finance
Director shall establish policies for the safekeeping of credit cards and procedures in the event a credit
card is lost, stolen or destroyed.
4. Credit cards must only be used by City employees for proper City business purposes. Use of credit cards
for personal purchases is prohibited.
5. Employees using credit cards must retain itemized credit card receipts, attach them to the credit card
statements and present this documentation to their immediate supervisor for approval. In the case of
meals and business travel expenses, each receipt must include the names of all persons involved in the
purchase, and a brief description of the business purpose. Receipts shall be reconciled to the monthly
credit card statement by the Finance Department. An employee who fails to provide credit card
receipts to the Finance Department within five (5) business days of when the charges were made may
be required, at the Finance Director's discretion, to reimburse the City for the charges, and at the
Finance Director's discretion, may have his or her credit card privileges revoked.
Each credit card issued in the name of the City of Tustin must be kept in a safe place and released for
use only under the authority of the Finance Director. Credit cards are the property of the City and shall
be returned to the employee's supervisor upon demand or upon termination of employment with the
City, whichever occurs first.
Before being issued a credit card, employees must complete and sign the acknowledgement form
stating that they understand and will comply with the City's credit card policy.
Examples of allowable uses of credit cards include, but are not limited to:
i. Conferences/training/seminars (registration, airline/car rental, hotel accommodations, meals and
fuel).
ii. Business lunch with representatives from other government agencies or consultants under
contract to the City, furnishing lunch for interview panels and/or evaluation review boards.
iii. Publications/manuals.
iv. Providing meals, equipment and materials to work crews in cases of emergency.
V. Should the credit card be used to purchase supplies, materials or services, the purchase must be
made in a manner consistent with Section 1624c, 1624d, and 1624e.
(Rev. 25-2023, Update 1)
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1625 EXCEPTIONS TO PURCHASING PROCEDURE
a. Emergency Purchases. The emergency procedure applies to purchases made necessary from an emergency
situation that poses an immediate threat to public health, welfare or safety as determined by the Purchasing
Manager.
1. An emergency situation is defined as follows:
i. A public disaster;
ii. An immediate need to prepare for national or local defense; or
iii. A breakdown of machinery or an essential service immediately affecting public health, safety, or
welfare of the public or of City staff.
2. The Purchasing Manager, a Purchasing Agent, or any Purchasing Delegate may purchase supplies,
equipment, or services directly subject to parameters set forth in City Council resolution(s) or
administrative guidelines. The Purchasing Agent or Purchasing Delegate will submit a report of the
circumstances of the emergency and a summary of the emergency purchases to the Purchasing
Manager. The report shall be filed with the City Council.
Bidding: Exceptions.
1. Purchases of supplies and equipment and contracts for Public Projects, except Public Works Contracts,
shall be by bidding procedures pursuant to the provisions of Section 1624 and as described in sections
1626 and 1627 of this Part;
2. Purchase amount is less than thirty thousand ($30,000), including surcharge, sales tax, and shipping;
3. Professional service contracts shall follow the provisions of Section 1626;
4. Bidding shall be dispensed with upon authorization of the Purchasing Manager or the Finance Director
on a prescribed form and retained with the applicable contract and purchase order:
i. Where bidding would be impossible or impractical;
ii. Where the commodity or service can be obtained from a sole source vendor. When procuring
through a sole source vendor, the vendor's qualification and justification for sole source must be
documented and supported in order to dispense with bidding requirements;
iii. Where the price of the commodity or service is controlled by law such that bidding would be
unlikely to result in any cost savings; or
iv. For Public Works Contracts that are subject to the provisions of the California Public Contract
Code, in which case the Contract(s) shall be procured in conformity with the Public Contract
Code.
5. For the purposes of this section:
i. "Impossible" shall mean impossibility or extreme and unreasonable difficulty or expense; and
ii. "Impractical" shall mean incapable of being performed by the bid procedure.
C. Other Exceptions. When in the opinion of the Purchasing Manager or Purchasing Agent supplies, materials or
equipment can be more efficiently or more cheaply obtained if acquired on behalf of the City by the State
Department of General Services or through the County of Orange Cooperative Purchasing Program, or other
government purchasing program, the Purchasing Manager or Purchasing Agent may proceed with the
purchase after following contract approval requirements provided in Section 1623b. Acquisition of any such
supplies, materials or equipment by the State Department of General Services or through the County of
(Rev. 25-2023, Update 1)
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Orange Cooperative Purchasing Program or other government purchasing program may be authorized by
resolution of the City Council.
1626 PROFESSIONAL SERVICES
a. Professional service providers should be evaluated through a qualification -based selection process.
Therefore, professional service contracts do not readily fall within the cost -based competitive bidding
process. Selection of professional service contracts must follow the guidelines in Sections 1626b and 1626c.
b. Guidelines for Selection. The Purchasing Manager, Purchasing Agent or Purchasing Delegate primarily
responsible for the project for which professional services are required shall develop a detailed scope of
work and select firms or individuals based on demonstrated competence and professional qualifications
necessary for the satisfactory performance of the services required, and may include such factors as:
1. Overall professional experience, reliability, and continuity of the firm as related to the tasks described
in the scope of work;
2. Professional experience of the firm in successfully executing services of a similar nature;
3. Adequacy of personnel numbers within specific disciplines required to complete the work required by
the scope of work;
4. Experience and training of key personnel as related to the tasks described in the scope of work;
5. Adequacy of number of principal(s) which are intended to be assigned to performance of the contract;
6. Knowledge of applicable regulations and technology associated with the services;
7. Quality and timeliness of recently completed or nearly completed projects which were similar to the
work described in the scope of work;
8. Specialized qualifications for the services to be performed.
Such factors shall be weighed by the Purchasing Manager, Purchasing Agent or Purchasing Delegate and by
the City department primarily responsible for the project according to the nature of the services, the needs of the
City and the complexity and special requirements of the specific services that will be provided.
C. Quotes and Proposals:
1. Contracts with an estimated value of up to and including sixty-five thousand dollars ($65,000) may be
entered after obtaining one quote.
2. For contracts with an estimated value of more than sixty-five thousand dollars ($65,000), the
responsible department should request a written proposal from no less than three available and
qualified consultants. Where three consultants cannot be found, the responsible department may select
from less than three available and qualified consultants. Selections based on fewer than three
consultants must be documented on a prescribed form, approved by the Purchasing Manager or
Purchasing Agent, and retained with the applicable contract and purchase order.
3. A formal RFP is not required for professional service contracts. However, if a formal RFP is used, the
Purchasing Manager, Purchasing Agent or Purchasing Delegate shall abide by the following procedures:
A Request for Proposal solicitation document shall be issued to potential individuals or firms. The
solicitation document shall discuss the following:
i. Scope of work or specification desired.
List any required qualifications.
(Rev. 25-2023, Update 1)
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iii. List the evaluation criteria.
iv. The deadline for submission of the response by the vendor.
V. Only criteria disclosed in the solicitations may be used to evaluate the responsive proposals.
The solicitation document shall be made available to a minimum of three (3) qualified firms or
individuals and shall be made available for no less than fourteen (14) calendar days.
Evaluation of quotes and proposals received will be conducted by either a knowledgeable individual or a
review team. The evaluation factors and the final decision must be documented on a prescribed form,
approved by the Purchasing Manager or Purchasing Agent, and retained with the applicable contract and
purchase order.
1627 INFORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Informal Bidding Procedures. The following shall govern purchases of supplies, services, equipment and the
selection of contractors when a Public Project is anticipated to fall within the monetary limits on informal
bids described in applicable laws and regulations, including, but not limited to, the limitations established
pursuant to California Public Contract Code Section 22032, as the same may be adjusted from time to time:
1. The City shall prepare a notice of the opportunity to bid which describes the project in general terms,
states the time and place for the submission of bids and describes how to obtain more detailed
information about the project.
2. The City shall mail the notice to all contractors for the category of the work to be bid, as shown on the
list of contractors developed and maintained by the Department of Public Works in accordance with
criteria promulgated from time to time by the California Uniform Construction Cost Accounting
Commission ("Commission").
3. The City may also mail the notice to all construction trade journals specified by the Commission for the
County of Orange. Additional contractors and/or construction trade journals may also be notified at
the discretion of the purchasing agent; provided, however, (1) if the City has not prepared a list of
qualified contractors for the particular category of work to be performed, the notice inviting bids shall
be sent only to the construction trade journals specified by the Commission; and (2) if the product or
service is proprietary in nature such that it can be legally obtained only from a certain contractor(s),
the notice inviting informal bids may be sent exclusively to such contractor(s).
4. All mailings of notices to contractors and construction trade journals pursuant to this section shall be
completed not less than ten (10) calendar days before bids are due.
b. Bid Selection.
1. Except as otherwise provided herein, purchases of supplies, services, equipment, and Public Projects
shall be awarded to the lowest responsible bidder. The determination of the "lowest responsible
bidder" shall be determined by the Purchasing Manager, Purchasing Agent or Purchasing Delegate
authorized to conduct the procurement.
Exceptions: Purchases of supplies, services, equipment and Public Projects (other than Public Works
Contracts and contracts for Public Projects) may be awarded to a bidder other than the lowest
responsible bidder only upon a written finding, approved by the Purchasing Manager or Purchasing
Agent, or for contracts over $200,000 by the City Council, and supported with written documentation
setting forth the reasons that greater overall value to the City will be achieved by awarding to the other
bidder. Alternatively, the Purchasing Manager, Purchasing Agent or Purchasing Delegate may reject all
bids and either halt the procurement or conduct the procurement again. Awards of Public Works
Contracts and contracts for Public Projects shall be made in accordance with State law.
(Rev. 25-2023, Update 1)
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1628 FORMAL BIDDING PROCEDURE FOR PUBLIC PROJECT CONTRACTS
a. Bid Solicitation Procedures.
1. The City Council shall approve plans and specifications for all Public Projects and Public Works
Contracts which are required per applicable laws and regulations.
2. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall prepare and provide for
advertisement a notice inviting formal bids, stating the time and place for the receiving and opening of
sealed bids and distinctly describing the public project, commodity, or class of commodities. The
Purchasing Manager, Purchasing Agent or Purchasing Delegate shall publish each and every notice
inviting bids in accordance with the following requirements:
i. The notice shall be published in accordance with the requirements of California Public Contracts
Code Section 20164, as that section may be modified.
ii. Contracts for services for the painting, maintenance or repair of public buildings and works
specifically governed by Government Code Sections 37901 and 37902 shall be subject to the
solicited bid process in accordance with applicable laws.
iii. The purchasing agent shall, in addition, solicit bids from prospective bidders for the class of
commodities being purchased or sold as listed on the bidders list, by sending them copies of the
notice or such other notice as will acquaint them with the proposed purchase or sale. All pending
purchases or sales shall also, in all cases, be advertised by posting a copy of the contract bid form
on the City's website.
iv. In addition to notice required by this section, the Purchasing Manager, Purchasing Agent or
Purchasing Delegate may give such other notice as he or she deems proper.
3. All bids shall be presented under sealed cover. One (1) of the following forms of bidder's security is also
required:
i. Cashier's check made payable to the City;
ii. A certified check made payable to the City; or
iii. A bidder's bond executed by an admitted surety insurer, made payable to the City.
4. The security shall be in an amount equal to at least ten (10) percent of the amount bid. A bid shall not
be considered unless one (1) of the forms of responsible bidder's security is received by the City. If the
bidder to whom the contract is awarded shall for ten (10) days after the award fail or neglect to enter
into the contract and file the required securities, the City shall deposit in its treasury the bid security if
the security is in the form of cash or its equivalent.
5. Provisions shall be included in any invitation for bid and in any contract documents for the furnishing of
securities and/or the withholding of retentions earned to ensure performance under a contract in an
amount and type as determined by the Director of Public Works, consistent with State law. Provisions
shall be included in any invitation for bid and in any contract documents for insurance coverage in an
amount, type and term as may be specified by the City.
6. When required by State law, the contractor shall not pay less than the general prevailing rates of
wages, as determined by the Director of the Department of Industrial Relations, to all workers
employed on a Public Project or Public Works Contract.
b. Formal Bid Opening Procedure. Bids shall be submitted to the City through the City's online bidding system.
Submittals are only accepted electronically through this platform and automatically time stamped. Late
submittals will not be accepted through the system or in person. The Purchasing Manager, or his or her
(Rev. 25-2023, Update 1)
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designee, shall make the bid results available for public inspection as soon as possible within the online
bidding system. Bid results shall remain publicly accessible for a period of one (1) year after bid opening
C. Rejection of Formal Bids. In its discretion, the City Council may reject any and all bids presented if the
Purchasing Manager, prior to rejecting all bids, furnishes a written notice to an apparent low bidder,
informing the bidder of the City's intention to reject the bid at least two (2) business days prior to the
meeting at which the City Council intends to reject the bid. If after the first invitation of bids all bids are
rejected, after reevaluating its cost estimates of the project, the City Council may: (a) abandon the project;
(b) re -advertise for bids in the manner prescribed by this chapter; or (c) perform the work with City
employees, after passing a resolution by a four -fifths vote of the City Council declaring that the project can
be performed more economically by City employees.
Award of Formal Bid Contracts. All Public Works Contracts with a value exceeding the limitations established
pursuant to California Public Contract Code Section 22032, as the same may be adjusted from time to time,
shall require the approval of the City Council and shall be executed by the Mayor and approved as to form by
the City Attorney. Unless the agreement provides otherwise, the City Manager may approve dollar increases
to contracts that have been approved by the City Council. The extent of the City Manager's authority to
approve such increases shall be in the amount of ten thousand dollars ($10,000.00) or ten (10) percent,
whichever is greater, or an amount specifically designated by the City Council for the particular project. If a
contract is awarded, it shall be awarded by the City Council to the lowest responsible bidder that submits a
responsive bid. The determination of the "lowest responsible bidder" shall be at the discretion of the City
Council pursuant to the findings and recommendations presented by the Purchasing Manager, Purchasing
Agent or Purchasing Delegate at the time of award of the contract. In determining the lowest responsible
bidder, the following shall be considered by the City Council, in addition to the price:
1. The ability, capacity and skill of the bidder to perform the contract or provide the services required;
2. Whether the bidder can perform the contract or provide the services promptly, or within the time
specified, without delay or interference;
3. The sufficiency of the bidder's financial resources to perform the contract or provide the service;
4. The ability of the bidder to provide future maintenance and services where such maintenance and
service is essential;
5. The quality and timeliness of the bidder's performance on previous contracts for the City;
6. Litigation by the bidder on previous contracts with the City;
7. The character, integrity, reputation, judgment, experience and efficiency of the bidder;
8. The bidder is licensed under the Contractors' State License Law (commencing with Section 7000 of the
Business and Professions Code of the State of California, as the same may be amended from time to
time) to perform the work for which it submitted a bid proposal.
Tie Formal Bids. If two (2) or more formal bids received are for the same total amount or unit price, quality
and service being equal, the City Council may, at its discretion, accept the one (1) it chooses or accept the
lowest bid made by and after negotiation with the tie bidders.
No Formal Bids. If no bids are received through the formal or informal procedure, the project may be
performed by the employees of the City by force account or through a negotiated contract without further
complying with this section.
Nothing contained in this section is intended to be in conflict with applicable state law including Sections
37901 and 37902, and Sections 37931 through 37935, of the Government Code of the State of California.
(Rev. 25-2023, Update 1)
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1629 INSPECTION OF MATERIALS, EQUIPMENT, ETC.
a. The receiving departments shall inspect deliveries of supplies, materials and equipment or the furnishing of
contractual services to ensure their conformance with the specifications set forth in the purchase order or
contract.
b. Any department which has the necessary facilities and staff for adequate inspection may be authorized and
directed by the City Council, on the recommendation of the Purchasing Manager, Purchasing Agent or
Purchasing Delegate, to inspect deliveries made to other departments.
C. The Purchasing Manager, Purchasing Agent or Purchasing Delegate shall have authority to require chemical
and physical tests of samples submitted with bids and samples of deliveries to the extent necessary to
determine their quality and conformance with the specifications. For such tests, the Purchasing Manager,
Purchasing Agent or Purchasing Delegate shall have the authority to make use of the laboratory facilities of
any department or to engage the services of any outside laboratory.
d. In accordance with section 1624c3, the person who documents the receipt of the supplies, materials and
equipment purchased must not be the same individual who authorized the purchase.
1630 DISPOSITION OF PROPERTY
Surplus or Obsolete Commodities.
All departments shall submit to the Purchasing Manager at such times and in such form as he or she
shall prescribe, reports showing stocks of all supplies, materials and equipment which are no longer
used or which have become obsolete, worn out or scrapped. The Purchasing Manager shall have
authority to transfer any such commodities which are usable to another or other departments in the
same or similar articles.
The Purchasing Manager shall make a written estimate of the value of any surplus items not usable by
any City department or not required for public use. The Purchasing Manager shall have the authority to
sell all such supplies, materials and equipment which cannot be used by any department or which have
been found by the City Council not to be required for public use or to exchange or trade in such articles
in part or full payment for new supplies, materials or equipment of a similar nature. Any such sale,
exchange or trade-in shall be made in accordance with Section 1626 or Section 1627, whichever is
applicable. The Purchasing Manager shall report in detail, including the amount of revenue received
upon any such sale, to the City Council within forty-five (45) days thereafter.
Unclaimed Property in Possession of Police Department.
Unclaimed Property Defined. "Unclaimed property" is all personal property, the title of which is not
vested in the City of Tustin, which property has come into the possession of the City of Tustin as lost
property, property which has been confiscated or impounded by the City as being in violation of law or
any other personal property coming into possession of the City of Tustin which is not specifically
provided for by any other provision of law.
Procedure.
If the estimated value of the unclaimed property exceeds ten dollars ($10.00) the Police
Department or the administrative official who obtained possession of the property shall, within
ten (10) days of receipt of the property, notify the owner, if his identity is reasonably
ascertainable, that it possesses the property, and where it may be obtained. The Police
Department or the administrative official may require payment by the owner of a reasonable
charge to defray costs of storage and care of the property.
(Rev. 25-2023, Update 1)
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If the owner appears within ninety (90) days of the notification given in subparagraph a. above,
proves his ownership of the property, and pays all reasonable charges, the Police Department or
the administrative official shall restore the property to him.
iii. After retention of the property for four (4) months, the property may be:
a) Sold at public auction to the highest bidder;
b) Retained by the City of Tustin if it is determined that the property is needed for a public
use, and after public notice has been made of the City's intention to retain the property; or
c) Where the property is a bicycle or toy in the possession of the Police Department, the
property may, at the discretion of the Chief of Police, be given to the Welfare Department
of the County, or to any charitable or nonprofit organization authorized under its Articles of
Incorporation to participate in a program or activity designed to prevent juvenile
delinquency and which is exempt from income taxation under federal or state law, for use
in any program or activity designed to prevent juvenile delinquency.
Public Sale or Retention of Property.
i. When it is determined that unclaimed property, valued at fifty dollars ($50.00) or more, shall be
retained or shall be sold at public auction, the Police Department or the administrative official,
shall cause notice of such sale or retention to be published at least five (5) days before the time
fixed therefore once in a newspaper of general circulation published in the county in which such
property was found or confiscated, or otherwise in Orange County.
ii. Such notice shall contain the time and the place of the sale.
iii. Any property remaining unsold after being offered at such public auction may be destroyed or
otherwise disposed of by the City.
iv. Any revenue received from the disposition of public property shall be deposited and recorded in
the appropriate City fund and general ledger account by the Finance Director in accordance with
the approved budget.
1631 COUNCIL AUTHORITY TO WAIVE OR MODIFY REQUIREMENTS
The City Council may waive or modify any requirement in this Part, or approve any contract procured without
compliance with this Part, when the City Council determines that it is in the City's best interest to do so.
(Rev. 25-2023, Update 1)
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ATTACHMENT 4
SUMMARY OF PROPOSED CHANGES OTHER THAN BIDDING, CONTRACT APPROVAL, AND REPORTING
New or
Muni code section
Proposed
update
Reasons
applicable to one price contracts, no PO is needed (i.e. postage, training, utility, OCFA fire
1622 Definitions
fixed charges
new
service contract, debt service payments)
service other than those professional in nature. General service contracts meeting a threshold
general services
new
require competitive bidding.
expand from one vendor to vendors with unique products due to quality, durability, availability,
sole source
update
and fitness for a particular use, consistent with current practice.
1623 Purchasing
Conflict of interest and
new
specify prohibited activity as related to purchasing.
Manager
prohibitions
1624 Purchasing
contract signing authority
new
delegate authority to the Purchasing Manager (City Manager) or designee.
Procedures
bid
new
if lowest bidder is not selected during a competitive bidding, the selection process must be
selection
documented and approved.
Sole source examples
new
provide examples of sole source based on reasons other than a single vendor.
maximum contract term five years or longer if directed by Council. This allows for regular
contract terms
new
review of existing contracts to get the most benefit for the City.
federal funding compliance
new
refer staff in charge of contracts with federal funding to resources and city policy.
Increase PO threshold for goods and services to $10,000 and open PO to $20,000.
purchase order (PO)
update
Improve efficiency and allow for better budget monitoring and encumbrance control.
formal bid selection
update
document on a prescribed form (Finance template)
documentation
bidding exception
document on a prescribed form (Finance template), subject to Purchasing Manager or Finance
update
documentation
Director approval
1626 Professional
exempt from cost -based
update
use qualification -based selection process.
Services
competitive bidding
quote/bid selection
selection process be documented on a prescribed form (Finance template).
documentation
new
Exceptions to quotes/bids subject to Purchasing Manager (City Manager) approval.
1628 Formal
submission
update
update to reflect use of online bidding platform, consistent h current practice.
Bidding
1631
Council Authority
new
City Council has authority to waive or modify any requirements under sections 1621-1631.