In order to establish efficient procedures for the purchase of supplies and/or equipment as defined in this chapter at the lowest possible cost commensurate with quality needed; to exercise positive financial control over purchases; to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted.
(Prior code § 34.10; Ord. 692 9-17-19)
City staff shall submit requests for purchases of supplies and/or equipment to the Department Head by standard requisition forms, or by other means as may be established by the City Manager or his/her designee.
(Prior code § 34.15; Ord. 692 9-17-19)
Purchases of supplies and/or equipment shall be made only by purchase orders, or in another form as may be established by the City Manager or his/her designee. Except as otherwise provided in this chapter, no purchase order shall be issued unless the prior approval of the Department Head or his/her designated representative has been obtained.
(Prior code § 34.16; Ord. 692 9-17-19)
Except in cases of emergency or in cases where specific authority has been first obtained from the City Manager, the Department Head shall not issue any purchase order for supplies and/or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.
(Prior code § 34.17; Ord. 692 9-17-19)
Purchases of supplies and/or equipment of an estimated value in excess of $50,000 shall be by written contract between the vendor and the City Council with the lowest responsible bidder pursuant to the procedures hereinafter described. Cumulative change orders of less than 30 percent of the original contract amount, even if the original contract amount was for $50,000, may be approved by the City Manager, unless such amount is otherwise dictated by contract or by law. Change orders of more than 30 percent must be approved by City Council.
A. 
Request for Proposals. A Request for Proposal (“RFP”) shall be utilized by the Department Head or his/her designee.
B. 
RFP shall be sent to a minimum of three potential vendors/contractors. RFP shall also be placed on City’s website. A list of proposals received shall be maintained by the City in accordance with its records retention schedule.
C. 
Bid Opening Procedure. Sealed bids shall be submitted to the Department Head or to the City Clerk, as appropriate, and shall be identified as bids on the envelope. Bids shall be open in public at the time and place stated in the public notices.
D. 
City staff shall prepare a summary staff report, along with presentation of the item to the City Council, which will be placed on the agenda for City Council consideration.
E. 
City Manager may reject all proposals and re-advertise.
F. 
In the event two or more proposals received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay or re-advertising for RFP, the City Manager may elect to recommend one proposal over the other to City Council, based on the best interest of the City.
G. 
The City Clerk shall receive and maintain all proposal documents necessary to support the proposal process and vendor/contractor selection in accordance with the records retention schedule and funding source of the purchase.
H. 
Performance Bonds. The City Council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the City. If the City Council requires a performance bond, the form and amount of the bond shall be described in the RFP.
I. 
No Proposals or Bids Received. In the event City receives no proposals or bids pursuant to an RFP, the City may elect to either re-issue the RFP or informally solicit proposals or bids from various vendors or contractors.
(Prior code § 34.19; Ord. 692 9-17-19)
A. 
The following financial disbursements are exempt from formal bidding procedures:
1. 
Tuition as paid by the City;
2. 
City payment of membership dues;
3. 
Bank charges and fees;
4. 
Insurance payments;
5. 
City payment for subscriptions;
6. 
Refunds;
7. 
Debt service payments;
8. 
Reimbursement of expenses;
9. 
City payment for attendance at professional meetings/conferences;
10. 
Public utility purchases of water, power and related services;
11. 
Specialized seminar, training, educational classes, meetings and travel;
12. 
City membership with multi-agency organizations;
13. 
Catering and food services; and
14. 
As otherwise provided in this chapter.
B. 
Sole Source. City Manager may waive formal bidding of supplies and/or equipment in situations wherein the Department Head determines that the subject purchase can only be obtained from a single source.
C. 
Piggybacking/Cooperative Purchasing for Supplies and/or Equipment.
1. 
The City may dispense with formal contract procedures for purchases of supplies and/or equipment and avail itself of another public agency’s contract prices obtained through that agency’s own RFP process, so long as such prices are lower than the prices that can be obtained by the City through the City’s RFP process, and provided the following findings are made by the Department Head with the consent of the City Manager:
a. 
The contract with the party awarded the contract (“Contractor”) is the result of competitive bidding or negotiation and is made in compliance with the competitive bid or proposal requirements of the agency whose prices the City desires to “piggy back” off (“Participating Public Agency”) devoid of fraud perpetrated by any public official or staff, or collusion or fraud among the Contractor and/or any subcontractor, all of which determination is solely based on a thorough and complete investigation and review of all relevant documents, including, but not limited to, all bid documents and specifications, staff reports and approved minutes, it being understood that certain evidence extrinsic to such documents may not be readily available nor accessible to the Department Head and City Manager; and
b. 
The contract awarded by the Participating Public Agency was awarded to the lowest responsive bidder, in compliance with the Participating Public Agency’s RFP; and
c. 
The purchase conforms to the City’s contract specifications; and
d. 
The estimated price of the purchase is lower than that estimated for the purchase if made directly by the City pursuant to other sections of this Policy.
2. 
City may additionally forgo competitive bidding when contracting with suppliers for supplies and/or equipment who have been awarded contracts by the State of California for purchase of supplies and/or equipment under the competitive process pursuant to California Public Contract Code Sections 10298-10299 and 12100-12113.
(Ord. 692 9-17-19)
Purchases of all supplies and/or equipment of an estimated value in the amount of $50,000 or less, may be made by the Department Head in the open market pursuant to the procedure hereinafter described and without observing the formal bidding procedure. Cumulative change orders of less than 30 percent of the original contract amount may be approved by the City Manager, unless such amount is otherwise dictated by contract or by law. Cumulative change orders of more than 30 percent must be approved by City Council, unless such amount is below $50,000 accumulatively.
(Prior code § 34.20; Ord. 692 9-17-19)
The Department Head shall inspect supplies and/or equipment delivered to determine their conformance with the specifications set forth in the order. The Department Head shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.
(Prior code § 34.21; Ord. 692 9-17-19)
City staff shall submit to the Department Head, at such times and in such forms as he or she shall prescribe, reports showing all supplies and/or equipment which are no longer used or which have become obsolete or worn out. The Department Head shall have authority to exchange for or trade in on new supplies and/or equipment all supplies and/or equipment which cannot be used by the City.
(Prior code § 34.22; Ord. 692 9-17-19)
In emergency situations, it may be necessary to make emergency purchases of supplies and/or equipment, where such supplies and/or equipment are not already available to City. For purchasing purposes, an emergency situation is one in which there is an immediate threat to life or property or a substantial disruption of a vital public service or where the public health, welfare or safety may be at risk. The emergency must be of such a nature that a Department Head and possibly the City Manager would be contacted to advise them of the situation, regardless of when they occur. Such emergency purchases must be approved by the City Manager. Emergencies concerning procurement of public projects shall be governed by the Public Contract Code in addition to this Code.
(Prior code § 34.23; Ord. 692 9-17-19)
As used in Section 3.44.160, the following terms shall have the meanings described below:
"Local business"
means a vendor, contractor, or consultant who has a valid physical business address and an established place of business located within the City, at least six months prior to bid or proposal opening date, from which the vendor, contractor, or consultant operates or performs business on a day-to-day basis, and holds a valid business license continuously for at least six months issued by the City. Post office boxes are not verifiable and shall not be used for the purpose of establishing such physical address. Local business includes only companies with a significant presence of business activity in the City.
"Professional services"
means those services which involve the exercise of discretion and independent judgment together with an advanced or specialized knowledge, expertise or training gained by formal studies or experience, and where the qualifications of persons rendering the service are of primary importance, which includes architectural, landscape architectural, environmental, engineering, and surveying, and construction project management services (except those that may qualify as public projects under the California Public Contract Code).
"Public projects"
shall have the same meaning as set forth in the Uniform Public Construction Cost Accounting Act as set forth in California Public Contract Code Sections 22000 et seq., as may be amended by the Legislature.
"Solicitation"
means the City’s process to obtain bids or proposals as provided in this chapter.
“Supplies and/or equipment”
means services, supplies, goods, materials and/or equipment that are subject to this chapter. “Supplies and/or equipment” does not mean professional or design services, and further does not apply to public works contracts.
(Prior code § 34.24; Ord. 568 10-20-15; Ord. 692 9-17-19)
A. 
Findings.
1. 
The City of Desert Hot Springs annually spends significant amounts on supplies and/or equipment, and contractual and professional services. The dollars used in making these purchases are derived in large measure from taxes and fees derived from local businesses and the City Council has determined that funds generated in the community should, to the extent possible, be placed back in the local economy. Therefore, the City Council has determined that it is in the best interest of the City to give a preference to local businesses in making such purchases whenever the application of such a preference is reasonable in light of the dollar-value received in relation to such expenditure.
2. 
The City Council further finds that local businesses are at a competitive disadvantage in light of the current economic conditions and hardships in Desert Hot Springs forcing many local businesses to close their doors. Many of these local business establishments have been doing business in Desert Hot Springs for many years. The City Council finds that the City should promote and stimulate local businesses by requiring that purchases of supplies and/or equipment and certain contractual services be acquired from local businesses.
3. 
The City Council further finds that this action is necessary to grow the local economy and preserve the local businesses that have diligently served Desert Hot Springs for many years.
4. 
Strategies that encourage people to buy locally are an important component of economic sustainability. Retaining local dollars within a community reduces economic export and increases the financial productivity of taxpayer dollars and increases the consumption of local supplies and/or equipment and services while fostering a sustainable community. In working towards a sustainable economy, the City Council recognizes that sustainable procurement policies are an important early step on the Desert Hot Springs path to a sustainable community. By leveraging the purchasing power of the City to buy local supplies and/or equipment and services instead of products and services from outside Desert Hot Springs it strengthens the local economic activity and employment as well as sets an example that helps foster and maintain a vital economic community for future generations.
B. 
Statement of Policy. Unless otherwise prohibited by law, it is the policy of the City to promote employment and business opportunities for local residents and firms on all contracts and give preference to local residents, workers, businesses, contractors, and consultants to the extent consistent with the law and interests of the public.
C. 
Local Preference in Purchasing. In the bidding of, or letting for procurement of, supplies and/or equipment, as provided in this chapter, the City Council or the Purchasing Agent may give a preference to local businesses in making such purchase or awarding such contract in an amount not to exceed five percent of the local business’ total bid price. Total bid price shall include the base bid price and also any adjustments to that base bid price resulting from alternates requested in the solicitation. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from Desert Hot Springs and show proof of a physical business address where regular open hours of business is conducted a minimum of five days per week within the City limits of Desert Hot Springs.
D. 
Local Preference in Services. In awarding contracts for services, including consultant services, preference to local business shall be given whenever practicable pursuant to this chapter consistent with the statement of policy in subsection B of this section. The contractor or consultant will also, to the extent legally possible, solicit applications for employment and proposals for subcontractors for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible. In order for a local business to be eligible to claim the preference, the business must request the preference in the solicitation response and provide a copy of its current business license from Desert Hot Springs.
Further, the City Purchasing Agent is required to include notice of the local business preference in all public posting soliciting bids so as to assist local businesses to be aware of the bid advantage available to them.
E. 
Local Preference in Public Works Contracts (Subcontracting). The prime contractor shall use good faith efforts to subcontract the supply of materials and equipment to local business enterprises and to subcontract services to businesses whose work force resides within Desert Hot Springs. The prime contractor shall submit evidence of such good faith efforts at the time of submission of bids. Good faith efforts may be evaluated by placing advertisements inviting proposals in local newspapers, sending request for proposals to local subcontractors, or by demonstrating that no local subcontractors are qualified to perform the work or supply the materials or equipment. Any bids which may require the use of subcontractors shall include notification of this subsection. The City Council or Purchasing Agent may reject as nonresponsive the bid of any contractor proposing to use subcontractors that fail to comply with the requirements of this subsection.
F. 
Exceptions to Local Business Preference Policy. The preference set forth in this section shall not apply to the following purchases or contracts:
1. 
Supplies and/or equipment provided under a cooperative purchasing agreement;
2. 
Purchases or contracts which are funded in whole or in part by a grant and/or governmental entity and the laws, regulations, or policies governing such funding prohibit application of that preference;
3. 
Purchases made or contracts let under emergency or noncompetitive situations.
G. 
Quality and Fitness. The preferences established in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the City Council or the Purchasing Agent to compare quality and fitness for use of supplies and/or equipment proposed for purchase and compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this section shall in no way be construed to prohibit the right of the City Council or the Purchasing Agent from giving any other preference permitted by law or this chapter.
H. 
Application. The local business preference provided in this section shall apply to new contracts for supplies and/or equipment and services first solicited as of the effective date of the enabling ordinance. This section shall be implemented in a manner consistent with otherwise applicable provisions of this chapter and competitive bidding laws.
I. 
Verification of Local Business Preference Eligibility. Any vendor of supplies and/or equipment or consultant claiming to be a local business, shall so certify in the bid, in writing to the Purchasing Agent. The Purchasing Agent shall not be required to verify the accuracy of any such certifications, and shall have sole discretion to determine if a vendor or consultant meets the definition of local business.
J. 
Enforcement.
1. 
The information furnished by each bidder requesting a local business preference shall be under penalty of perjury.
2. 
No person or business shall knowingly and with intent to defraud, obtain, retain, attempt to obtain or retain, or aid another in obtaining or retaining or attempting to obtain or retain certification as a local business for the purpose of this section.
3. 
No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a City official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business.
4. 
A business which has obtained City certification as a local business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known, the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall:
a. 
Pay to the City any difference between the contract amount and what the City’s costs would have been if the contract had been properly awarded;
b. 
In addition to the amount described in subsection (J)(4)(a) of this section, be assessed a penalty in an amount of not more than 10 percent of the amount of the contract involved.
5. 
The penalties identified above shall also apply to any business that has previously obtained proper certification and, as a result of a change in its status would no longer be eligible for certification, fails to notify the Finance Department of this information prior to responding to a solicitation or accepting a contract award.
K. 
Promulgation of Administrative Rules. The Purchasing Agent is authorized to adopt administrative rules supplemental to the provisions of this chapter as necessary or appropriate to implement the provisions of this section. The provisions of this section and the rules adopted by the Purchasing Agent shall be provided to potential bidders, vendors, and contractors to the widest extent practicable.
(Prior code § 34.25; Ord. 568 10-20-15; Ord. 692 9-17-19)
The City Council may, by resolution, provide an officer other than the Mayor the specific authority to negotiate, award, and execute facility use agreements and/or non-exclusive license agreements for certain City-owned, operated, or controlled facilities or properties. City Council may set forth restrictions, limitations, or further prescriptions by City Council resolution, with this section being considered as enabling and directive in this regard.
(Ord. 594 12-6-16; Ord. 692 9-17-19)
A. 
The selection of professional services is to be based on demonstrated competence and professional qualifications necessary for satisfactory performance of services required, as so determined by the Department Head. An RFP is not required. The emphasis for selection is therefore based upon qualifications, rather than the lowest price.
B. 
Professional services agreements in the amount of $50,000 or less require a contract with insurance certificate(s) and any other pertinent documentation as required by City Manager. Such agreement, or any amendments thereto, shall be negotiated, approved, and executed by the City Manager or his/her designee. Cumulative change orders of less than 30 percent of the original contract amount, even if the original contract amount was for $50,000, may be approved by the City Manager, unless such amount is otherwise dictated by contract or by law. Change orders of more than 30 percent must be approved by City Council.
C. 
Professional services agreement in excess of $50,000 shall require a contract with insurance certificate(s) and any other pertinent documentation as may be required. Such agreements are subject to City Council approval. Cumulative change orders of less than 30 percent of the original contract amount may be approved by the City Manager, unless such amount is otherwise dictated by contract or by law. Cumulative change orders of more than 30 percent must be approved by City Council.
(Ord. 692 9-17-19)
Contracts which do not require City Council approval shall be negotiated, approved, and executed by the City Manager or his or her designee upon the agreement being duly approved in accordance with this chapter and/or applicable law. Contracts requiring City Council approval may be executed by the City Manager or his or her designee upon the City Council duly approving the contract, or by the Mayor.
(Ord. 692 9-17-19)