HomeMy WebLinkAbout1605 - ORDINANCES - 1/16/2002 ORDINANCE NO. 1605
AN ORDINANCE OF THE CITY OF PALM SPRINGS
CALIFORNIA, REPEALING IN ITS ENTIRETY, C14APTER
3.12 - PURCHASES, OF TITLE 3, REVENUE AND
FINANCE, AND ADOPTING A NEW TITLE 7, ENTITLED
"PROCUREMENT AND CONTRACTING", TO THE PALM
SPRINGS MUNICIPAL CODE.
WHEREAS, the proposed new procurement and contracting ordinance will provide
increased economy in City procurement activities and maximize to the fullest extent practicable the
purchasing value of public monies of the City; and
WHEREAS, the City Charter in Sections 913, 403, 312 and 318 provides the authority for
the city to adopt its own procedures for the procurement of supplies, services, and construction of
public projects; including requirements and procedures for competitive bidding and providing
increased signatory authority for contracts to be approved within the monetary limits established by
the City Council; and
WHEREAS, the proposed new ordinance will simplify, clarify, centralize, and modernize the
management process for the City's procurement and contracting services and public projects.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY
ORDAIN AS FOLLOWS;
SECTION 1: CHAPTER 3.12 -Purchases, of Title 3, Revenue and Finance, is hereby repealed in
its entirety from the Palm Springs Murdcipal Code, and the following Title 7,
Procurement and Contracting, is added to the Palm Springs Municipal Code:
TIME 7
PROCUREMENT AND CONTRACTING
CHAPTERS
7.01 General Provisions
7.02 Procurement Organization and Administration
7.03 General Method of Awarding Contract or Purchase Order
7.04 Special Circumstance Methods of Award of Contract or Purchase Order
7.05 Specifications for Purchase Order and Contract Procurement
7.06 Contract Provisions
7.07 Disposition of Surplus Property
7.08 Procedures for Bid Corrections, Objections and Appeals
6.09 Special Programs
6.10 Ethics in Public Contracting
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CHAPTER 7.11
GENERAL PROVISIONS
Sections ,
7.01.010 Purpose
7.01.020 Application of this Title
7.01.030 Exemptions to Provisions of this Title
7.01.040 Definition of Terms used in this Title
7.01.050 Public Access and Record Retention for Procurement Information
7.01.010 Purpose.
The purpose of this Title is to:
(1) Establish procedures for the procurement of supplies, services, and construction of
public projects, including requirements and procedures for competitive bidding and identification of
exceptions to competitive bidding requirements, such as sole source contracts and contracts
undertaken in response to emergency situations, as recorded in Section 913 of the City Charter;
(2) Set forth rules and regulations governing the contracting for, purchasing, storing,
distribution, or disposal of all supplies, materials and equipment required by any office or
department of the City government as provided in Section 403, of the City Charter;
(3) Clearly define the authority for the procurement function including signatory
authority for purchase orders and written contracts which bind the City for the acquisition of
equipment, supplies, labor or services within the budget approved by the City Council and within the ,
monetary limits established by the City Council; as provided in Section 318 of the City Charter;
(4) Establish standards or pre-qualifications for the screening of contractors or providers
of goods and services by a pre-qualification process as provided in Section 913 of the City Charter,
(5) Provide a method for the sale or exchange of personal property not needed in City
service or not fit for the purpose for which intended and for the conveyance of Title thereto, as
authorized in Section 318, of the City Charter;
(6) Simplify, clarify, centralize, and modernize the Ordinance governing procurement
and contracting by the City;
(7) Streamline the procurement process o by establishing electronic transfer of
procurement information authorizing and identifying electronic methods of procurement as preferred
when lawful and practicable;
(8) Permit the continued development of procurement policies and practices;
(9) Ensure the fair and equitable treatment of all persons who deal with the procurement
system of the City; w
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(10) Provide increased economy in City procurement activities and maximize to the fullest
extent practicable the purchasing value of public monies of the City;
(11) Foster effective broad-based competition within the free enterprise system;
' (12) Provide safeguards for the maintenance of a procurement system of quality and
integrity.
(13) Obtain in a cost-effective and responsive manner the materials, services and
construction required by City departments in order for those departments to better serve the City's
businesses and residents.
7.01.020 Application of this Title.
(1) General Application
This Title applies only to purchase orders and contracts solicited or entered into after the
effective date of this Ordinance.
(2) Compliance with Federal Requirements.
Where a procurement involves the expenditure of federal assistance or contract funds, the
Director of Procurement and Contracting shall comply with such federal law and authorized
regulations which are mandatorily applicable and which are not presently reflected in this Title.
(3) Compliance with California Uniform Public Construction Cost Accounting.
' It is the City's intent to meet the standards set forth in the Uniform Public Construction Cost
Accounting procedures (California Public Contract Code Section 22000 et seq.) with respect to
awarding contracts or utilizing its own forces to perform public projects projects.
(4) Application to City Procurement and Contracting.
This Title shall apply to every expenditure of public funds irrespective of their source,
including federal assistance monies, (except as otherwise specified in Paragraph (2) above), by this
City, under any contract, except that this Title shall not apply to those exemptions specified in
Section 7.01.030 below. It shall also apply to disposal of City property. Nothing in this Title or in
regulations promulgated hereunder shall prevent compliance with the terms and conditions of any
grant, gift, bequest or cooperative agreement.
7.01.030 Exemptions to Provisions of this Title.
The provisions of this Title are not applicable to:
(1) Contracts for professional witnesses if the purpose of such contracts is to provide for
professional services or testimony relating to an existing or probable judicial proceeding in which
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the City is or may become a party to contracts for special investigative services for law enforcement
purposes.
(2) Agreements negotiated by the City Attorney or Risk Manager in settlement of a
dispute, claim or litigation or threatened litigation-
(3) Worker's compensation payments for medical and related expenses; '
(4) Contracts for the purchase of works of fine art and performing art entertainment;
(5) The award of financial participation agreements; owner participation agreements;
disposition and development agreements; development agreements; real estate purchase or lease
agreements; covenants; easements; encroachment agreements; memoranda of understanding; or
other similar agreements. Such contracts shall be awarded in accordance with applicable legal
requirements and/or administrative directives of the City;
(6) The purchase of miscellaneous books, magazines, newspapers, subscriptions, on-line
library reference services, film, videos and assorted materials for library customer check-out
purposes for which contracts by competitive bid solicitation are not practicable, or which are
exempted from bidding requirements by State Code;
(7) Intergovernmental payments, purchases and agreements;
(8) Cooperative purchasing programs in accordance with Chapter 7.10;
(9) Public utility purchases of water, power and related services when no competition is
available;
(10) Specialized seminar, training and educational classes; '
(11) Magazine and media advertisement;
(12) Contracts for election services;
(13) Contracts for Legal Services which shall be developed consistent with the Palm
Springs City Charter, Section 407; or
(14) Contracts for employment and public employee labor agreements.
7.01.040 Definitions of Terms used in this Title.
As used in this Title the following terms have the meanings indicated which are applicable to
both the singular and plural thereof:
"Architectural and Engineering Services" means:
(a) professional services of an architectural or engineering nature, as defined by State
law which are required to be performed or approved by a person licensed, registered, or certified to
provide such services as described in this Subsection; IG14
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(b) professional services of an architectural or engineering nature performed by
contract that are associated with research, planning, development, design, construction, alteration, or
repair of real property-, and
(c) such other professional services of an architectural or engineering nature, or
incidental services, which members of the architectural and engineering professions (and individuals
in their employ) may logically or justifiably perform, including: studies, investigations, surveying,
mapping, tests, evaluations, consultations, comprehensive planning, program management,
conceptual designs, plans and specifications, value engineering, construction phase services, soils
engineering, drawing reviews, preparation of operating and maintenance manuals, and other related
services-
(2) "Awarding Authority" means the City Council, the City Manager or his delegee who has
been given the authority to award under this Title.
(3) "Business" means a corporation, partnership, individual, sole proprietorship, joint stock
company,joint venture, or any other private legal entity.
(4) "Change Directive" means a written order signed by the Contract Administrator which
directs the contractor to make changes that the "changes" clause of the contract authorizes the
Contract Administrator to order without the consent of the contractor.
(5) "Change Order" means any written modification to an existing contract authorizing
changes within the scope of work, additions or deletions to the work or an adjustment to any other
provision-of the contract.
(6) "Construction" means the process of building, altering, repairing, improving, or
' demolishing any public structure or building, or other public improvements of any kind to any
public real property. It does not include the routine operation, routine repair, or routine maintenance
of existing structures, buildings, or real property.
(7) "Construction Project Management" means those services provided by a licensed
architect, registered engineer, or licensed general contractor which meet the requirements for
management and supervision of work performed on City construction projects.
(8) "Contract" means all types of City agreements, regardless of what they may be called,
for the procurement of services or construction. Contract shall not mean an agreement for
procurement of supplies or goods which shall be identified in this Title as a"purchase order".
(9) "Contract Administrator" means any person duly authorized to manage, supervise and
monitor the execution of the terms and conditions of a contract.
(10) "Contractor" means any person having a contract or purchase order with the City or
a using department thereof
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(11) "Cost-reimbursement Contract" means a contract under which a contractor is
reimbursed for costs which are allowable and allocable in accordance with the contract terms and
provisions of this Title, and a fee, if any.
(12) "Data"means recorded information regardless of form or characteristic. ,
(13) "Design-Bid-Build" means a project delivery method in which the City sequentially
awards separate contracts, the first for architectural and engineering services to design the project
and the second for construction of the project according to the design.
(14) `Design Build" means a project delivery method in which the City enters into a
single contract for design and construction of an infrastructure facility. Design Build includes
projects where in addition to design and construction, other functions may be added including, but
not limited to, financing, operating and/or maintenance.
(15) `Design requirement" means the written description of the infrastructure facility or
service to be procured under this Subsection, including:
(a) required features, functions, characteristics, qualities, and properties that are
required by the City;
(b) the anticipated schedule, including start, duration and completion, and
(c) estimated budgets, (as applicable to the specific procurement) for design,
construction, operation and maintenance.
The design requirements may, but need not, include drawings and other documents
illustrating the scale and relationship of the features, functions, and characteristics of the project. '
(16) "Designee" means a dilly authorized representative of a person holding a superior
position.
(17) ".Director" means the designated head of the City's Procurement and Contracting
Department, unless otherwise specified.
(18) "Electronic" means electrical, digital, magnetic, optical, electromagnetic, or any
other similar technology.
(19) `Employee" means an individual drawing a salary or wages from the City, whether
elected or not; any non-compensated individual performing personal services for the City or any
department, commission, council, board, or any other entity established by the City; and any non-
compensated individual serving as an elected official of the City.
(20) `Environmental Services" means those services performed in connection with project
development and permit processing in order to comply with federal and state environmental laws.
"Environmental Services" also includes the processing and awarding of claims pursuant to Chapter
6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code).
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(21) `Established Catalogue Price" means the price included in a catalogue, price list,
schedule or other form that:
(a) is regularly maintained by a manufacturer or contractor;
(b) is either published or otherwise available for inspection by customers; and
(c) states prices at which sales are currently or were last made to a significant number
of any category of buyers or buyers constituting the general public for the supplies or services
involved.
(22) `Facility" means any plant, building, structure, ground facility, utility system, real
property, streets and highways, or other public project improvement.
(23) `Finn" means any individual, firm, partnership, corporation, association, or other
legal entity permitted by law to practice the profession of architecture, landscape architecture,
engineering, environmental services, land surveying or construction project management.
(24) `Force Account Construction" means construction performed by the City's own
personnel.
(25) `Independent Peer Reviewer Services" are additional architectural and engineering
services provided to the City in design-build-operate-maintain or design-build-finance-operate-
maintain procurements. The function of the independent peer reviewer is to confirm that the key
elements of the professional engineering and architectural design provided by the contractor are in
conformance with the applicable standard of care.
' (26) `Invitation for Bids" (IFB) means all documents, whether attached or incorporated
by reference, utilized for soliciting bids.
(27) `Maintenance Work" includes all of the following, however a public project does not
include"maintenance work":
(a) Routine, recurring, and usual work for the preservation or protection of any
publicly owned, or publicly operated facility for its intended purposes;
(b) �vtinor repainting;
(c) Resurfacing of streets and highways at less than one inch;
(d) Landscape maintenance, including mowing, watering, trimming, pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
(e) Work performed to keep, operate, and maintain publicly owned water, power, or
waste disposal systems, including, but not limited to, dams, reservoirs, powerplants and electrical
transmission lines of 230,000 volts or higher.
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(28) "Multi-Step Sealed Bidding" is a two phase process consisting of a technical first
phase composed of one or more steps in which bidders submit unpriced technical offers to be
evaluated by the City and a second phase in which those bidders whose technical offers are
determined to be acceptable during the first phase have their price bids considered. It is designed to
obtain the benefits of competitive sealed bidding by award of a contract to the lowest responsive, '
responsible bidder, and at the same time obtain the benefits of the competitive sealed proposals
procedure through the solicitation of technical offers and the conduct of discussions to evaluate and
determine the acceptability of technical offers.
(29) "Operations and Maintenance" means a project delivery method whereby the City
would enter into a single contract for the routine operation, routine repair and routine maintenance
of an infrastructure facility.
(30) 'Pricing Data" means factual information concerning prices for items substantially
similar to those being procured. Prices in this definition refer to offered or proposed selling prices,
historical selling prices and current selling prices. The definition refers to data relevant to both prime
and subcontract prices.
(31) 'Prime Contractor" means a person who has a contract with the City to build, alter,
improve, or demolish any public structure or building.
(32) "Procurement" means the buying, purchasing, renting, leasing, or otherwise
acquiring of any supplies, services, construction, construction services, or professional services. It
also includes all functions that pertain to the obtaining of any supply, service, or construction,
including description of requirements, selection, and solicitation of sources, preparation and award
of contract, and all phases of contract administration.
(33) :Professional Services" means those advisory, consulting, architectural, engineering, ,
research, testing or developmental 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.
(34) `Property"means real or personal property assets.
(35) 'Proposal" means an offer submitted in response to a "Request for Proposals"
(RFP), where selection for award is based on criteria specified in the RFP documents. All elements
of an offeror's proposal are subject to negotiations.
(36) "Proposal development documents" means drawings and other design related
documents that are sufficient to fix and describe the size and character of an infrastructure facility as
to architectural, structural, mechanical and electrical systems, materials, and such other elements as
may be appropriate to the applicable project delivery method.
(37) 'Public Entity" means a governmental entity such as a country, state, city, district,
county or any other organization created by the state as a separate legal public entity.
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(38) `Public Notice" means the distribution or dissemination of information using
methods that are reasonably available to interested parties. Such methods will often include
publication in newspapers of general circulation, electronic or paper mailing lists, and web site(s)
designated by the Director of Procurement and Contracting and maintained for that purpose.
(39) `Public Project" has the same meaning as contained in California Public Contract
1 Code, Section 22002, as amended, which defines a"Public Project" as:
(a) Construction, reconstruction, erection, alteration, renovation, improvement,
demolition, and repair work involving any publicly owned, leased, or operated facility.
(b) Painting or repainting of any publicly owned, leased or operated facility.
(c) In the case of a publicly owned utility system, the construction erection,
improvement or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000
volts and higher.
(d) "Public Project" does not include maintenance work. For purposes of this
section, "maintenance work" includes all of the following:
1. Routine, recurring, and usual work for the preservation or protection of
any publicly owned or publicly operated facility for its intended purposes.
2. Nfinor repainting.
3. Resurfacing of streets and highways at less and one inch.
4_ Landscape maintenance, including mowing, watering, trimming, pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler systems.
1 5. Work performed to keep, operate, and maintain publicly owned water,
power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and
electrical transmission lines of 230,000 volts and higher.
(40) "Purchase Description" means the words used in a solicitation to describe the
supplies, services or construction to be purchased, and includes specifications attached to, or made a
part of, the solicitation.
(41) `Purchase Order" means an agreement to procure goods or supplies.
(42) "Qualified Products List" (QPL) is an approved list of supplies, services, or
construction items described by model or catalogue numbers, which, prior to competitive
solicitation, the City has determined will meet the applicable specification requirements.
(43) "Regulation" as used herein means an authoritative rule dealing with details or
procedures.
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(44) `Request for Proposal" (RFP) means all documents, whether attached or
incorporated by reference, utilized for soliciting proposals.
(45) "Request for Qualifications" means a request by the City for detailed information
concerning the qualifications of firms to provide specific services.
(46) "Responsible Bidder or Offeror" means a person who has the capability in all
respects to perform fully the contract requirements, and the integrity and reliability which will
assure good faith performance.
(47) 'Responsive Bidder" means a person who has submitted a bid which conforms in all
material respects to the Invitation for Bids.
(48) "Services" means the £umishing of labor, time, or effort by a contractor. Services
includes both general services (janitorial, maintenance, etc.) and professional and construction
unless otherwise designated.
(49) "Signature" means (enter the appropriate reference to State's applicable Digital
Signature Act if enacted) (a manual or electronic identifier , or the electronic result of a
authentication technique attached to or logically associated with a record that is intended by the
person using it to have the same force and effect as a manual signature.)
(50) "Solicitation" means the process of notifying prospective bidders that the buyer
wishes to receive bids to provide goods or services.
(51) "Specification" means any description of the physical or functional characteristics or
of the nature of a supply, service or construction item. It may include a description of any
requirement for inspection, testing or preparing a supply, service or construction item for delivery.
(52) "Supplies" means all property, including but not limited to, commodities equipment,
materials, and other supplies.
(53) "Surplus Property" means personal property no longer needed by City Departments
for their operations, obsolete property, property in poor or non-working condition, or property that is
a by- product (e.g., scrap metal, used tires, and oil, etc.)
(54) "Surplus Real Property" means real property that City Council has made a
determination is no longer needed for city use and has made a declaration of finding that it is
surplus.
(55) "Unsolicited Offer" means an offer other than one submitted in response to an
Invitation For Bid, Request for Proposal, or other solicitation.
(56) "Using Department" means any department, commission, board, or public agency
requiring supplies, services, or construction procured pursuant to this Title.
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(57) "Written or In Writing" means the product of any method of forming characters on
paper, other materials, or viewable screen, which can be read, retrieved, and reproduced, including
information that is electronically transmitted and stored.
7.01,050 Public Access and Record Retention for Procurement Information.
(1) Procurement information shall be a public record to the extent provided in the Public
Records Act (Government Code, Section 6250 et seq.) and shall be available to the public as
provided in the Public Records Act. The City may charge a reasonable cost for copying records.
(2) Retention of Procurement Records. All procurement records shall be retained and
disposed of by the City in accordance with records retention guidelines and schedules approved by
the City Council and as required by the Public Records Act. Procurements may be conducted
through electronic communication; however, records of the transaction shall be maintained in a
retrievable manner. The City Clerk's office shall retain the original copy of all contracts
(3) Request for Confidentiality. Requests for confidentiality of proprietary information
provided in response to request for proposals or bids may be honored after the City determines that
the material so requested conforms to the exceptions recognized in the Public Records Act and the
case law interpreting its provisions.
CHAPTER 7.02
PROCUREMENT ORGANIZATION & ADMINISTRATION
Sections
7.02.010 Procurement and Contracting Department Created
' 7.02.020 Director of Procurement and Contracting-Position Created
7.02.030 Authority and Duties of Director
7.02.040 Delegation of Authority by Director of Procurement and Contracting
7.02.050 Contract Administration
7.02.010 Procurement and Contracting Department Created.
There is created a centralized Procurement and Contracting Department which shall have
authority over the procurement of supplies, services and construction for the public purposes of the
City.
7.02.020 Director of Procurement and Contracting- Position Created.
There is created the position of Director of Procurement and Contracting who shall be
appointed by and serve at the pleasure of the City Manager. The City Manager may combine the
duties and responsibilities of the Director with any other office or position.
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7.02.030 Authority and Duties of Director.
(1) Except as otherwise provided herein, the Director shall serve as the public procurement
official for the City, and shall be responsible for the procurement of all supplies, services, and
construction in accordance with this Title, as well as the management and disposal of supplies. '
(2) In accordance with this chapter, and subject to the supervision of the City Manager, the
Director of Procurement and Contracting shall:
(a) procure or supervise the procurement process for all supplies, services, and
construction needed by the City;
(b) sell, trade, or otherwise dispose of surplus supplies belonging to the City;
(c) establish and maintain programs for inspection, testing and acceptance of
supplies, services and construction, in cooperation with using department;
(d) exercise general supervision and control over all inventories of supplies
belonging to the City;
(e) adopt regulations, consistent with this Title, governing the procurement,
management, control and disposal of any and all supplies, services and construction procured by the
City;
(f) ensure compliance with this Title and implementing regulations by reviewing and
monitoring procurement conducted by any designee, department, agency or official delegate
authority under Section 7.02,060 (Delegation of Authority by the Director of Procurement and
Contracting); ,
(g) retain records of written determinations pertaining to the solicitation, award,
performance under a contract or purchase order,
(h) cooperate with the Director of Finance and Treasurer in the preparation of
statistical data concerning the procurement, usage, and disposition of all supplies, services, and
construction. All using departments shall furnish such reports as the Director of Procurement and
Contracting may require concerning usage, needs and stocks on hand;
(i) prescribe forms to be used by using departments in the requisitioning, ordering
and reporting of supplies, services and construction;
0) ensure that City Clerk obtains the original copy of all contracts-
(k) submit a monthly report of all purchase orders and contracts entered into during
the reporting period exceeding $5,000 and less than $25,000 to the City Manager and the City
Council.
7.02.040 Delegation of Authority by the Director of Procurement and Contracting.
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The Director of Procurement and Contracting, with approval of the City Manager, may
authorize in writing any department of the City to purchase specified supplies, services, and
construction independently of the Procurement and Contracting Department, provided that such
purchases shall comply with the procedures established by this Title, and provided that the
department shall be required to make periodic reports to the Director of Procurement and
Contracting on all purchases made.
7.02.060 Contract Administration.
(1) All public projects of a civil engineering nature shall be administered by the Director of
Public Works or his designee unless other project administration is designated by the City Manager.
(2) All facility repair and maintenance contracts shall be administered by Director of
Facilities or his designee unless other administration is designated by the City Manager.
(3) All contracts for special projects developed by, or caused to be developed by the
Assistant City Manager - shall be administered by the Assistant City Manager, or his designee
unless other administration is designated by the City Manager.
(4) All contracts for supplies and services, including professional services and construction
services developed by or caused to be developed by the Director of Aviation shall be administered
by the Director of Aviation or his/her designee unless other administration is designated by the City
Manager.
(5) All master contracts for supplies and services which apply to multiple departments will
be administered by the Director of Procurement and Contracting unless other contract administration
is designated by the City Manager.
(6) All other contracts shall be administered by the using department director or his designee
unless other administration is designated by the City Manager,
CHAPTER 7.03
GENERAL METHOD OF AWARDING CONTRACT OR PURCHASE ORDER
Sections
7.03.010 General Methods of Award of Contract or Purchase Order
7.03.020 Contract and Purchase Order Procedures for Procurements up to
$25,000
7.03.030 Contract and Purchase Order Procedures for Procurements Greater
than S25,000 up to S100,000
7.03.040 Contract and Purchase Order Procedures for Procurements Greater
than $100,00
7.03.050 Cancellation of Invitations for Bids or Requests for Proposals
7.03.060 Responsibility of Bidders and Offerors
7.03.070 Pre-qualification of Potential Bidders and Offerors
7.03.080 Pre-Qualification of Contractors Seeking to Bid on Public Projects
Exceeding$100,000
7.03.90 Substantiation of Offered Prices I �� I
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7.03.010 General Methods of Award of Contract or Purchase Order.
(1) Method Determined by Cost Estimate. The procedure to be followed in awarding
contracts or purchase orders is determined initially by the estimated cost to the City of the goods,
service or public projects. The three basic categories are procurements ranging from: up to $25,000; '
$25,000 to $100,000; and greater than $100,000.
(2) No Division of Order, Work or Service. Neither public project nor service contracts
shall be knowingly staged or separated into smaller units or segments solely for the purpose of
evading the competitive bidding requirements of this chapter. Similarly, no purchase of goods shall
be artificially divided for purposes of evading the competitive bidding requirements of this Chapter.
7.03.020 Contract and Purchase Order Procedures for Procurements up to $25,000.
(1) General Authority. A public project, a service contract and/or a procurement order of
Twenty-five Thousand Dollars ($25,000.00) or less may be performed by City employees by force
account, by negotiated contract or by purchase order.
(2) Negotiated Contract Procedures for public projects. For those projects estimated to
cost less than $25,000, the Director of Procurement and Contracting shall obtain a cost estimate
from the Director of Public Works prior to negotiating a contract with a responsible contractor. For
any City force account work, the Director of Public Works shall first comply with the guidelines
established by the California Uniform Construction Cost Accounting Commission in determining
the cost of the public project.
(3) Negotiated Contract Procedures for non-professional service contracts. For non-
professional service contracts with a cost estimate of$25,000 or less, the Director of Procurement '
and Contracting shall develop procedures for negotiating a contract with a responsible contractor.
The procedures for professional service contracts are specified in Chapter 7.04.
(4) Delegation of Authority to award purchase orders under $2,500. The Director of
Procurement and Contracting shall adopt operational procedures for making procurement of$2,500
or less and may.,delegate the head of any using department the authority to make procurement of
S2,500 or less. Any such delegation shall be in writing and may be revoked, if the delegated
authority is not exercised in accordance with the operational procedures, the delegation, and this
Title-
(5) Purchase Order Procurements under $5,000. Any purchase order procurement not
exceeding $5,000 may be made in accordance with procedures promulgated by the Director of
Procurement and Contracting-
(6) Purchase Order Procurement between $5,000 and $25,000. Insofar as is practical, for
purchase order procurement in excess of$5,000 and less than $25,000 no less than three businesses
shall be solicited to submit quotations. The names of the businesses submitting quotations and the
date and amount of each quotation, shall be recorded and maintained as a public record. Such record
may be electronic.
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(7) Award. Award may be made by City Manager for all contracts and purchase orders
up to $25,000. The City Manager may delegate award authority to the Director or other appropriate
staff in writing for specified amounts. Any such delegation, including who the delegation is to and
the amounts delegated, shall be reported in writing to City Council.
' 7.03.030 Contract and Purchase Order Procedures for Procurements Greater than
$25,000 to $100,000
(1) General Authority. A public project, a service contract and/or a purchase order
ranging in cost from Twenty-Five Thousand Dollars ($25,000) to One Hundred Thousand Dollars
($100,000.00) may be let to contract by informal bid procedures as set forth in this chapter.
(2) Informal Bidding Procedures for Public Projects. For those projects which qualify
under this Section for informal bidding, the following procedures shall be used:
(a) Bidder List. The City shall maintain a list of qualified contractors, identified
according to categories of work. Minimum criteria for development and maintenance of the
contractor's list shall be consistent with the State Uniform Construction Cost Accounting rules.
(b) Notice. Unless the product or service is proprietary, all contractors on the
City's list for the category of work being bid shall be mailed a notice inviting informal bids, or an
announcement advertisement shall be placed in all construction trade journals specified in this
section, or both such mailing and advertising. The trade journals shall be those identified by the
California Uniform Construction Cost Accounting Commission as appropriate for this area.
(c) Bidder's Security/Failure to Sign Contract. Bidder's security shall be
prescribed in the notice inviting bids in an amount equal to ten (10%) per cent of the amount bid.
Bidder's security shall be either a cash deposit with the City, a cashier's certified check, payable to
the City, or a bidder's bond. Unsuccessful bidders shall be entitled to the return of bid security
within sixty (60) days of the date of the award. However, the lowest responsive and responsible
bidder shall forfeit all or part of his bid security, as may be determined by the City Council, upon the
bidder's refusal or failure to execute the contract within the ten (10) days after the date of the award
of the contract. . On the refusal or failure of the lowest responsive and responsible bidder to execute
the contract the City Council may award the contract to the next lowest responsible bidder.
(d) Minimum Time Period. All mailing of notices to contractors and
announcement and/or advertisements published in the construction trade journals pursuant to
Subsection (b) shall be completed not less than ten (10) calendar days before bids are due.
(e) Notice Contents. The notice inviting informal bids shall describe the project
in general terms, and how to obtain more detailed information about the project, and state the time
and place for the submission of bids.
(f) Performance/labor/materials Bonds. The City may require a performance
and/or labor and materials bonds in an amount and form as it deems appropriate.
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(g) Bid Opening Procedure. Sealed bids shall be submitted to the Director of
Procurement and Contracting Office and shall be identified as to bidder, project, and Bid
Title/Number on the envelope. Bids shall be opened by the staff of the Director of Procurement and
Contracting in public at the time and place stated in the notice inviting bids. A written record and
tabulation shall be made at that time of all bids received and shall be open for public inspection '
during regular business hours for a period of one (1) year after the bid opening. The project
manager shall make an analysis of the bids for compliance with bid specifications and thereafter,
make a recommendation for award or rejection to the City Council. Bids shall be evaluated based
on the requirements set forth in the Invitation For Bids, which may include criteria to determine
acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a
particular purpose. Those criteria that will affect the bid price and be considered in evaluation for
award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle
costs. The total or life cycle costs may include an analysis of maintenance costs over the useful life
of the product or project. The Invitation for Bids shall set forth the evaluation criteria to be used.
No criteria may be used in bid evaluation that are not set forth in the Invitation for Bids.
(h) Award. The City Council shall award the contract or reject the bids, or it may
by resolution with 4/5ths vote delegate this authority to the City Manager or other appropriate
person. The City Council shall hear any bid protests and may waive minor bid irregularities where
evidence exists that the irregularity is a clerical error.
(i) Bids in Excess of Statutory Amount. If all bids received are in excess of One
Hundred Thousand Dollars ($100,000.00), the City Council may, by passage of a resolution by a
four-fifth (4/5ths) vote, award the contract at up to One Hundred and Five Thousand Dollars
($105,000.00) to the lowest responsible bidder, if it determines the cost estimate of the City was
reasonable.
(3) Informal Bid Procedures for non-professional service contract and purchase of ,
supplies or goods pursuant to purchase order.
(a) The Director of Procurement and Contracting shall adopt operational
procedures for noticing and conducting informal bids under this Section.
(b) Unless it is determined that it is a sole source provider under special
circumstances and, so far as is practical, no less than six businesses shall be solicited to submit
quotations.
(c) A report of the process with a recommendation of the lowest qualified bid
shall be presented to the City Council for approval-
(d) In the event that bids or proposals for any supplies or services are solicited
and no bids or proposals are received at the time and place established by the applicable bid
invitation, the City Manager shall have the authority to authorize the Director of Procurement and
Contracting to negotiate directly with potential vendors and enter into a contract for the provision of
such supplies or services.
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(e) In procurement of supplies or services pursuant to this section, of whatever
nature or character, the Director of Procurement and Contracting shall submit a report of the bids
within thirty (30) days, to the City Council, with a recommendation concerning acceptance or
rejection thereof, and the City Council shall thereupon approve or disapprove the recommendation.
' 7.03.040 Contract and Purchase Order Procedures for Greater than $100,000.
(1) A public project, a service contract and/or a procurement order of more than One
Hundred Thousand Dollars ($100,000.00) shall, except as otherwise provided in this chapter, be let
to contract by formal bidding procedures.
(2) Formal Bidding Procedures for public project projects. For those projects which
qualify under this section for formal bidding, the following procedures shall be used:
(a) Adoption of Plans and Specifications. Prior to soliciting bids, the City
Council shall approve and adopt the plans, specifications and working details, and authorize the bid
request for all public projects in excess of One Hundred Thousand Dollars ($100,000.00).
(b) Invitation for Bids. An Invitation for bids shall be issued and shall, include a
purchase description and all contractual terms and conditions applicable to the procurement.
(c) Publication. A notice shall be published at least once fourteen (14) calendar
days before the date of opening the bids in a newspaper of general circulation, printed and published
in the jurisdiction of the City. The notice inviting formal bids shall also be mailed to all construction
trade journals specified by the California Uniform Construction Cost Accounting Commission as
appropriate for the area. The notice shall be mailed at least thirty (30) calendar days before the date
of opening the bids. The notice inviting formal bids shall state the time and place for the receiving
' and opening of-sealed bids and distinctly describe the project. In addition to notice required by this
section the City may give such other notice as it deems proper.
(d) Public Notice. Except as provided under Section 7.05.010(4)(b), Public
Notice, or as required by state or federal regulations, or terms of state, federal or third party grant
funding, public notice of Invitation for Bids shall be determined by the Director of Procurement and
Contracting. Such notice may include, but is not limited to, publication in a newspaper of general
circulation, notifying suppliers on a list of established suppliers and/or posting notice on-line on the
internet. Notices inviting bids shall include a general description of the articles to be purchased or
sold, and shall state where bid documents and specifications may be secured, and shall provide the
time and place for opening bids. Adequate public notice of the Invitation for Bids (IFB) shall be
given, a reasonable time prior to the date set forth therein for the opening of bids. The Director of
Procurement shall determine the adequacy and reasonableness of the notice and preparation time
depending on the complexity of the project to be bid.
(e) Bidder's Security for Public Projects Contracts. Bidder's security/failure to
sign contract. Bidder's security shall be prescribed in the notice inviting bids in an amount equal to
ten (10%) percent of the amount bid. Bidder's security shall be either a cash deposit with the City, a
cashier's or certified check, payable to the City, or a bidder's bond. Unsuccessful bidders shall be
entitled to the return of bid security within sixty (60) days of the date of the award. However, the
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lowest responsive and responsible bidder shall forfeit all or part of his security, as may be
determined by the City Council, upon the bidder's refusal or failure to execute the contract within
ten (10) days after the date of the award of the contract. On the refusal or failure of the lowest
responsive and responsible bidder to execute the contract, the Council may award the contract to the
next lowest responsible bidder.
(f) Bid Opening Procedure. Sealed bids shall be submitted to the office of the '
Director of Procurement and Contracting and shall be identified as to bidder, project, and Bid
Title/Number on the envelope. Bids shall be opened by the Director's staff in public at the time and
place stated in the notice inviting bids. A written record and tabulation shall be made at that time of
all bids received, and shall be open for public inspection during regular business hours for a period
of one (1) year after the bid opening. The Director, consulting with the Director of Public Works,
shall make an analysis of the bids for compliance with bid specifications and, thereafter, make a
recommendation for award or rejection.
(g) Award. The contract shall be awarded with reasonable promptness by
appropriate written notice to the lowest responsible and responsive bidder whose bid meets the
requirements and criteria set forth in the Invitation For Bids. In the event the low responsive and
responsible bid for a construction project exceeds available funds as determined by the Director of
Finance and Treasurer or the Engineer's estimate, the City Manager or his designee is authorized,
when time or economic considerations preclude re-solicitation of work of a reduced scope, to
negotiate an adjustment of the bid price with the low responsive and responsible bidder, in order to
bring the bid within the amount of available funds. The City Manager or his designee, shall submit
a report of the bids to the next regular session of the City Council with a recommendation
concerning acceptance or rejection thereof, and the City Council shall thereupon approve or
disapprove the recommendation. The Council may waive minor bid irregularities where evidence
exists that it is merely a clerical error.
(h) Bid Acceptance and Bid Evaluation. Bids shall be unconditionally accepted '
without alteration or correction, except•as authorized in this chapter. Bids shall be evaluated based
on the requirements set forth in the Invitation For Bids, which may include criteria to determine
acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a
particular purpose. Those criteria that will affect the bid price and be considered in evaluation for
award shall be objectively measurable, such as discounts, transportation costs, and total or life cycle
costs. The total or life cycle costs may include an analysis of maintenance costs over the useful life
of the product or project. The Invitation for Bids shall set forth the evaluation criteria to be used.
No criteria may be used in bid evaluation that are not set forth in the Invitation for Bids.
(i) Tie Bids. If two or more bids received are for the same total amount or unit
price, quality and service being equal, and if the public interest will not permit the delay or re-
advertising for bids, the Council may accept either bid. Should tie bids be received the following
priority list will apply to the award:
1. Business located within City boundaries with valid business license;
2. Coachella Valley based business;
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3, Riverside County based business; or
4. State of California based business.
(j) No Bids. I£no bids are received, the project may be performed by City
' employees by force account, or by informal bidding procedures without further complying with this
article-
(k) Rejection of Bids. In its discretion, the City Council may reject any bids
presented. If after the first invitation for bids all bids are rejected, the City shall state the reasons for
the rejection, and after re-evaluating its cost estimates of the project, the City shall have the option
of either of the following:
1. abandoning the project or re-advertising the bids in the manner described
this article.
2, by passage of a resolution by a four-fifths (4/5ths) vote of the City
Council declaring that the project can be performed more economically by City employees, may
have the project done by force account without further complying with this chapter.
(3) Formal Bid Procedures for Purchase Orders and Non-professional Service
Contracts.
(a) The Director of Procurement and Contracting shall adopt standards for
publication and notice for purchase orders and non-professional service contracts of a value greater
than$100,000.
' (b) Procedures for bid opening and award shall be as specified in (b)6.-11.
above.
7.03.050 Cancellation of Invitations for Bids or Requests for Proposals.
An Invitation for Bids, a Request for Proposals, or other solicitation may be canceled up until
the opening of bids by the Director, or any or all bids or proposals may be rejected in whole or in
part as may be specified in the solicitation, when cancellation or rejection is for good cause and in
the best interests of the City. The reasons therefor shall be made part of the contract file.
7.03.060 Responsibility of Bidders and Offerors.
(1) Application. Prior to the award of any contract, the Director of
Procurement and Contracting shall insure that the prospective contractor is responsible under the
terms of this section. A determination of responsibility or non-responsibility shall be governed by
this section.
(2) Standards of Responsibility. In determining whether a bidder or offeror is
responsible, the following shall be considered:
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(a) The ability; capacity and skill of the bidder or offeror to perform the
contract or to provide the services required;
(b) Whether the bidder of offeror can perform the contract or provide the
service promptly and within the time specified without delay or interference; '
(c) The character, integrity, reputation, judgment, experience and efficiency
of the bidder or offeror;
(d) The quality of the bidder's or offeror's performance of previous contracts
or services with the City or other entity;
(e) The previous and existing compliance by the bidder or offeror with the
laws and ordinances relating to the contract or service of the City or other entity;
(f) The sufficiency of the financial resources and ability of the bidder or
offeror to perform the contract or provide the service;
(g) The quality, availability, and adaptability of the materials and services to
the particular use required;
(h) The ability of the bidder or offeror to provide future maintenance and
service for the use of the subject of the contract;
(i) Any other circumstance(s) which will affect the bidder's or offeror's
performance of the contract.
(3) Information Pertaining to Responsibility. The prospective contractor shall '
supply information requested by the Director of Procurement and Contracting concerning the
responsibility of such contractor. If such contractor fails to supply the requested information, the
Director of Procurement and Contracting shall base the determination of responsibility upon any
available information or may find the prospective contractor non-responsive if such failure is
unreasonable-
(4) No award may be made to any bidder or offeror who is in default on the
performance of any other contract with the City or in the payment of any taxes, licenses or other
monies due to the City. Similarly, no award may be made to any bidder or offeror who has been in
default of any contract with the City within the prior three years or who has defaulted on two prior
City agreements.
7.03.080 Pre-Qualification of potential bidders and offerors.
(1) The Director of Procurement and Contracting may by issuance of a
Request for Qualifications pre-qualify prospective suppliers for particular types of supplies, services
and construction. Solicitation mailing lists of potential contractors shall be limited to, such pre-
qualified suppliers.
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7.03.090 Pre-Qualification of Contractors seeking to bid on public projects exceeding
$100,000.
(1) When it is considered in the best interest of the City for development of contracts for
public projects, City Manager, or his designee may approve the use of a pre-qualification process. .
(2) In accordance with Pubic Contract Code 20101(d), enacted as part of A$ 574, the
City has elected to adopt the pre-qualification procedures for public projects linked to a single
project and which includes the following requirements: (Section 20101(d)
(a) Utilization of a standardized questionnaire and financial statement in a form
specified by the City(Section 20201 [a]);
(b) Application of a uniform system of rating bidders on objective criteria, and on
the basis of the completed questionnaire and financial statement (Section 20101[b]);
(c) Creation of an appeal procedure by which a contractor that is denied pre-
qualification may seek a reversal of that determination(Section 20101[d])
(3) The Director shall make a recommendation to City Council based on the findings of
the evaluation process. Only those successfully completing the pre-qualification process and
approved by the City Council, shall be allowed to submit bids.
7.03.100 Substantiation of offered prices.
(1) Required Submissions Relating to the Award of Contracts_ A prospective contractor
shall be required to submit cost or pricing data when the contract is expected to exceed $25,000 and
is to be awarded by Competitive Sealed Proposals (Section 7.04.080); or by Sole Source
Procurement authority(Section 7.04.020).
(2) Exceptions. The submission of cost or pricing data relating to the award of a contract
is not required when.-
(a) the contract price is based on adequate price competition;
(b) the contract price is based on established catalogue prices or market prices;
(c) the contract price is set by law or regulation; or
(d) A written record of such cost analysis or price data shall be made a part of the
contract file.
(3) Certification Required. A contractor, actual or prospective, required to submit cost or
pricing data in accordance with this section, shall certify that, to the best of its knowledge and belief,
the cost or pricing data submitted was accurate, complete, and current as of a specified date prior to
the award of the contract or the pricing of the change order or contract modification.
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CRAFTER 7.04
SPECIAL CIRCUMSTANCE METHODS OF AWARD OF CONTRACT OR PURCHASE
ORDER
Sections
7.04.010 In General
7.04.020 Sole Source Procurements.
7.04.030 Special Expertise Procurement.
7.04.040 Emergencies: Procedures.
7.04.050 Contracting Procedures for Professional Services.
7.04.060 Contracting Procedures Where the Design of the Project is Combined
with the Construction. (Design-Build).
7.04.070 Multi-Step Sealed Bidding Procedures.
7.04.080 Competitive Sealed Proposals/Competitive Negotiations.
7.04.010 In General.
(1) Decision to Use Special Method. For procurements using either purchase orders or
contracts under this Chapter, with the exception of emergency procurements under 7.04.040, all
decisions to utilize a special circumstance method and the award shall be made by the City Manger
or his delegee for procurements up to $25,000 and by the City Council for procurements over
$25,000,
(2) Award of Special Method; Any use of methods in this Chapter shall require a report
explaining why the special circumstance method is appropriate and the results of the negotiations or
solicitations. For procurements under $25,000, where the City Manger has delegated authority, the
City Council shall be given a report of the amount of authority delegated and the individual to whom
authority has been granted. In the event,of procurements over $25,000 under this Chapter, Council
shall initially be given a full report as to the circumstances that support using a method in this
Chapter for their determination of whether to authorize the method by adopting a resolution. After
authorization, Council shall be given a report for consideration of award that specifies: the reason
the technique was used; the results of the solicitation; the results of the negotiations; and the
recommendation for the award. Any award shall be approved by resolution setting out findings
from the report
7.04.020 Sole Source Procurement by the City.
A contract may be awarded without competition when the action is made after conducting a
good faith review of available sources, that there is only one source for the required item or service.
The Director of Procurement and Contracting shall conduct negotiations, as appropriate, as to'price,
delivery, and terns. A written record of sole source procurement shall be maintained as a public
record and shall list each contractor's name, the amount and type of each contract, a listing of the
item(s) procured under each contract, the identification number of each contract file, and the
documentation of why sole source procurement was required.
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7.04.030 Special Expertise Procurement
A contract may be awarded without competition when it is determined that an unusual or
unique situation exists, in that due to experience and expertise demonstrated in prior contracts with
1 the City a particular contractor is uniquely qualified for a particular task, that makes the application
of all requirements of competitive sealed bidding or competitive sealed proposals contrary to the
public interest. Any special procurement under this Section shall be made with such competition as
is practicable under the circumstances.
7.04.040 Emergencies: Procedures.
(1) This section applies to services which are governed by California Public Contract
Code where a state of emergency is determined to exist_ A state of emergency exists when findings
are determined by the City Council which may include but are not limited to, the states of
emergency defined in Section 8558 of the Government Code and as defined in Section 1102 of the
Public Contract Code, and in conformance with the provisions of Public Contract Code section
22050 when repair or replacements are necessary to permit the continued conduct of the operation of
services of the City, or to avoid danger to life or property. Where Council makes such findings, it
may, by majority vote, proceed at once to replace or repair any public facility without adopting
plans, specifications, or working details, or give notice for bids to let contracts. The work may be
done by day labor under the direction of the Council, by contract, or by a combination of the two.
Alternatively, Council may delegate to the City Manager, the power to declare a public emergency
subject to confirmation by the Council by a four-fifths (4/5ths) vote, at its next meeting.
(2) Where an emergency has been determined under (1) above, the City Manager or
his/her representative may authorize the Director or others to make emergency procurement of
1 supplies, services, or construction items, regardless of the amount of the expenditure, when there
exists a threat to public health, welfare, or safety, provided that the emergency procurement shall be
made with such competition as is practicable under the circumstances. As soon as practicable, a
record of each emergency procurement shall be made and shall set forth the contractor's name, the
amount and type of the contract, a listing of the item(s) procured under the contract, and the
identification number of the contract file. The record of action taken is required to insure that the
City receives maximum reimbursement from state and federal agencies, when appropriate.
(3) Emergency Procurement for the Palm Springs International Airport. The City
Manager or his/her representative may authorize the Director or the Director of
Aviation, or his/her representative, to make emergency procurement of supplies,
services or construction items regardless of the amount of the expenditure when there
exists a threat to public health, welfare, security, or safety at the Palm Springs
International Airport, as determined by the Director of Aviation or his/her
representative and/or as defined by FAA regulations or other appropriate safety or
regulatory guidelines-
(4) Report to the City Council Required. A written report of the circumstances of all
emergency purchases in excess of$25,000 for supplies, services, construction and/or
construction services, shall be made by the City Manager to the City Council at the
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next regularly scheduled meeting after the emergency procurement is made. The City
Council may not impair any contract obligation duly authorized by this Section
7.04.040 but may disapprove any contract or approval where no performance or
detrimental reliance is shown.
7.04.050 Contracting Procedures for Professional Services. '
(1) Authority- For the purpose of procuring the services of architectural, landscape
architectural, engineering, environmental, land surveying, appraisal, construction project
management, financial or other professional services, including but not limited to those defined by
the laws of the State of California Government Code Section 4525/4526 as professional services, the
selection procedures specified in this Section shall be used.
(2) Policy. It is the policy of this City to negotiate contracts for professional services on
the basis of demonstrated competence and qualification for the type of services required, and at fair
and reasonable prices.
(3) Selection Procedure-
(a) Conditions for Use. Except as provided under Section 7.04.020 (Sole Source
Procurement); Section 7.04-030 (Emergency Procurement), or Section 7.04.30 (Special Expertise
Services) the professional services designated in Subsection (1) of this Section shall be procured in
accordance with this Subsection.
(b) Statement of Qualifications. Persons engaged in providing the types of
professional services designated in Sub-Section (1) of this Section may submit statements of
qualifications and expressions of interest in providing such professional services. The City may '
specify a uniform format for statements of qualifications- Statements of qualifications may be
project specific or may be for multiple projects which occur during a time period, typically 12
months.
(c) Form of Request for Proposals. The Request for Proposals shall describe the
services required, list the types of information and data required of each offeror, list the evaluation
factors and state the relative importance of identified qualifications.
(d) Discussions. The Director or his designee may conduct discussions with any
offeror who has submitted a proposal to determine such offeror's qualifications for further
consideration. Discussions shall not disclose any information derived from proposals submitted by
other offerors.
(e) Award. Award, if any, shall be made to the offeror determined to be best
qualified based on the evaluation factors set forth in the Request for Proposals, and negotiation of
compensation determined to be fair and reasonable. If compensation cannot be agreed upon with the
best qualified offeror, then negotiations will be formally terminated with the selected offeror. If
proposals were submitted by one or more offerors determined to be qualified, negotiations may be
conducted with such other offeror or offerors, in the order of their respective qualification ranking,
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and the contract may be awarded to the offeror then ranked best qualified if the amount of
compensation is determined to be fair and reasonable.
7.04.060 Contracting Procedures 'Where the Design of the Project is Combined with its
' Construction. (Design-Build).
(1) Design-build. Contracts for design-build shall be procured by competitive sealed
proposals, as set forth in Section 7.04.080 (Competitive Sealed Proposals/Competitive Negotiations
), except that the regulations may describe the circumstances under which particular design-build
procurement will not require the submission of proposal development documents. A design-build
procurement shall include a maximum not to exceed amount as part of the request for competitive
sealed proposal.
(2) Participation in a report or study that is subsequently used in the preparation of
design requirements for a project shall not disqualify a firm from participating as a member of a
proposing team in a design-build.
7.04.070 Multi-Step Sealed Bidding Procedures.
(1) When it is found to be impractical to initially prepare a purchase description to
support an award based on price due to the unique nature of the commodity or project, which makes
it difficult to estimate a price in advance, an invitation for bid may be issued requesting the
submission of unpriced technical offers to be followed by an invitation for bids limited to those
bidders whose offers have been qualified under the criteria set forth in the first solicitation.
Procedure for step one of multi-step sealed bidding:
' (a) Form. Multi-step sealed bidding shall be initiated by the issuance of an
invitation for bids. The multi-step invitation for bids shall state:
1. that unpriced technical offers are requested;
2. whether priced bids are to be submitted at the same time as unpriced
technical offers. If they are, such priced bids shall be submitted in a separate sealed envelope;
3. that it is a multi-step sealed bid procurement, and priced bids will be
considered only in the second phase and only from those bidders whose unpriced technical offers are
found acceptable in the first phase;
4. the criteria to be used in the evaluation of the unpriced technical offers;
5. that the City, to the extent the Director of Procurement and Contracting
finds necessary, may conduct oral or written discussions of the unpriced technical offers;
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6. that bidders may designate those portions of the unpriced technical offers
which contain trade secrets or other proprietary data which are to remain confidential; and
7. that the item being procured shall be famished generally in accordance
with the bidder's technical offer as found to be finally acceptable and shall meet the requirements of '
the Invitation For Bids.
(b) Amendments to the Invitation for Bids. After the closing date for submitting
unpriced technical offers, amendments to the Invitation For Bids shall be distributed only to bidders
who submitted unpriced technical offers, and they shall be permitted to submit new unpriced
technical offers or to amend those submitted. If, in the opinion of the Director of Procurement and
Contracting, a contemplated amendment will significantly change the nature of the procurement, the
Invitation For Bids shall be cancelled in accordance with Section 7.03.090 (Cancellation of
Invitation for Bids or Request for Proposals) of this chapter and a new Invitation For Bids issued.
(c) Receipt and Handling of Unpriced Technical Offers. Unpriced technical
offers shall not be opened publicly but shall be opened in front of two or more procurement officials.
Such offers shall not be disclosed to unauthorized persons. Trade secrets and/or other proprietary
data identified in writing shall be kept confidential.
(d) Evaluation of Unpriced Technical Offers. The unpriced technical offers
submitted by bidders shall be evaluated solely in accordance with the criteria set forth in the
Invitation For Bids. The unpriced technical offers shall be categorized as:
1. acceptable;
2. potentially acceptable, that is, reasonably susceptible of being made '
acceptable; or
3. unacceptable, in which case the Director of Procurement and
Contracting shall record in writing the basis for finding an offer unacceptable and make it part of the
procurement file.
The Director of Procurement and Contracting may initiate step two of
the procedure if, in the Director's opinion, there are sufficient acceptable unpriced technical offers to
assure effective price competition in the second phase without technical discussions. If the Director
finds that such is not the case, the Director shall issue an amendment to the Invitation For Bids or
engage in technical discussions as set forth in Subsection(8)(b)5 of this Section.
(e) Discussion of Unpriced Technical Offers. The Director may conduct
discussions with any bidder who submits an acceptable or potentially.acceptable unpriced technical
offer. During the course of such discussions the Director shall not disclose any confidential
information, identified in writing under paragraph 3 above, derived from one unpriced technical
offer to any other bidder. Once discussions have begun, any bidder who has not been notified that
its offer has been finally found unacceptable may submit supplemental information amending its
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unpriced technical offer at any time until the closing date established by the Director. Such
submission may be made at the request of the Director or upon the bidder's own initiative-
(f) Notice of Unacceptable Unpriced Technical Offer. If the Director determines
an offeror's unpriced technical offer is unacceptable and notifies the offeror in writing of this
determination, such offeror shall not be afforded an additional opportunity to supplement its
technical offer.
(3) Procedure for Step Two.
(a) Initiation. Upon the completion of Step One, the Director shall either:
1, open priced bids submitted in Step One(if priced bids were required to
be submitted) from bidders whose unpriced technical offers were found to be acceptable; or
2, if priced bids have not been submitted, technical discussions have
been held, or amendments to the Invitation for Bids have been issued, invite each acceptable bidder
to submit a priced bid.
(b) Conduct. Step Two shall be conducted as any other competitive sealed bid
procurement except no public notice need be given of this invitation to submit priced bids because
such notice was previously given.
(c) Tie Bids. Should tie bids be received the following priority list will apply to
the award:
1. Business located within City boundaries with valid business license;
2. Coachella Valley based business•,
3. Riverside County based business; or
4. State of California based business.
7.04.080 Competitive Sealed Proposals/Competitive Negotiations.
1. Conditions for Use.
(a) A contract may be entered into by use of the competitive sealed
proposals/competitive negotiations method when the complex nature or technical details of a
particular procurement make the use of competitive sealed bidding either not practical or not
advantageous to the City, for example:
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1. Specifications cannot be fairly nor objectively prepared so as to permit-
competition by issuance of an Invitation For Bids;
2. High technology and electronic equipment is available from a limited
number of sources;
3. Quality, availability, or an offerors technical and performance '
capability is overriding in relation to price;
4. For professional services;
5. When the initial installation needs to be evaluated together with
subsequent maintenance and service capabilities;
6. When the market place will respond better to a solicitation permitting
not only a range of alternate proposals, but evaluation and discussion of them before making an
award, such as an award for specialized computer software programs;
7. When oral or written discussion needs to be conducted with Offerors
concerning technical and price aspects of their proposals; or
8. When Offerors may need to be afforded an opportunity to revise their
proposals, including price.
(b) Contracts for the design-build project delivery method shall be entered into by
competitive sealed proposals, except as otherwise provided in 7.04.020 Sole Source Procurement or
7.04.040.
(2) Request for Proposals. Proposals shall be solicited through a Request for Proposals. '
(3) Public Notice. Adequate public notice of the Request for Proposals shall be given in the
same manner as provided in Section 7,03,040 (3)(al
(4) Receipt of Proposals. Proposals shall be opened so as to avoid disclosure of contents to
competing Offerors during the process of negotiation. A Register of Proposals shall be prepared in
accordance with regulations, and shall be open for public inspection after contract award-
(5) Evaluation Factors, The Request for Proposals shall state the relative importance of
evaluation factors, including price.
(6) Discussion with Responsible Offerors and Revisions to Proposals. As provided in the
Request for Proposals, discussions may be conducted with responsible Offerors who submit
proposals determined to be reasonably susceptible of being selected for award for the purpose of
clarification to assure full understanding of, and responsiveness to, the solicitation requirements.
Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion
and revision of proposals and revisions to the proposals may be permitted after submission and prior
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to award for the purpose of obtaining best and final offers. In conducting discussions, there shall be
no disclosure of information derived from proposals submitted by competing offerors.
(7) Award. Award shall be made to the responsible offeror whose proposal conforms to the
solicitation is determined to be the most advantageous to the City, taking into consideration price
and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be
used in the evaluation. The contract file shall contain a written report detailing the basis on which
the recommendation for award of contract is made.
CHAPTER 7.05
SPECIFICATIONS FOR PURCHASE ORDER AND CONTRACT PROCUREMENT
Sections
7.05.010 Purchase Order Procurement Specifications
7.05.020 Qualified Products List (Q.P.L.)
7.05.030 Brand Name or Equal Specification
7.05.040 Brand Name Specifications
7.05.010 Purchase Order Procurement Specifications
A purchase order form is used for all acquisitions of goods, commodities, and supplies and
any tangible personal property items. All specifications shall be drafted so as to promote overall
economy for the purposes intended and encourage competition in satisfying the City's needs, and
shall not be unduly restrictive. The policy enunciated in this section applies to all specifications,
including, but not limited to, those prepared for the City by architects, engineers, designers, and
draftsmen.
7.05.020 Qualified Products List(QPL).
The Director of Procurement and Contracting may, when it serves the best interest of the
City, establish a qualified products list (Q.P.L.) for evaluation and pre-qualification criteria for
bidding acceptable products which would require testing or samples subsequent to the receipt of
bids.
7.05.030 Brand Name or Equal Specification.
(1) Use. Brand name or equal specifications may be used when the Director of
Procurement and Contracting determines in writing that:
(a) no other design or performance specification or qualified products list is
available;
(b) time does not permit the preparation of another form of purchase description;
(c) the nature of the product or the nature of the City's requirements makes use of a
brand name or equal specification suitable for the procurement, or
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(d) use of a brand name or equal specification is in the City's best interests-
(2) Designation of Several Brand Names. Brand name or equal specifications shall seek
to designate three, or as many different brands as are practicable, as "or equal" references and shall
further state that substantially equivalent products to those designated will be considered for award. '
(3) Required Characteristics. Unless the City Manager's designee determines in writing
that the essential characteristics of the brand names included in the specifications are commonly
known in the industry or trade, brand name or equal specifications shall include a description of the
particular design, or of the functional or performance characteristics which are required.
(4) Nonrestrictive Use of Brand Name or Equal Specifications. Where a brand name or
equal specification is used in a solicitation, the solicitation shall contain explanatory language that
the use of a brand name is for the purpose of describing the standard of quality, performance, and
characteristics desired and is not intended to limit or restrict competition.
7.05.040 Brand Name Specifications.
(8) Use. Since use of a brand name specification is restrictive of product competition, it may
be used only when the Director of Procurement and Contracting makes a written determination that
only the identified brand name item or items will satisfy the City's needs, and where for function
and efficiency the product is designated to match others in use on a project either completed or in
the course of completion, or where the product is applied in a unique or novel way where only one
brand name is known, provided that any such determination shall be based on the requirements of
California-Public Contract Code Section 3400 and the exceptions set forth therein-
(2) Competition. The Director of Procurement and Contracting shall seek to identify
sources from which the designated brand name item or items can be obtained and shall solicit such '
sources to achieve whatever degree of price competition is practicable. If only one source can
supply the requirement, the procurement shall be made under Section 7.03,070 (Sole Source
Procurement).
(3) Standardization. Where the Director of Procurement and Contracting has determined
that it is required by the health, safety or welfare of the people or employees of the city or that
significant costs savings can be demonstrated, standardization of supplies, materials, equipment or
construction components is permitted and the specification may limit the purchase to a single brand
or trade name. Among the factors that may be considered in determining to standardize on a single
brand or trade name are that:
(a) Repair and maintenance costs would be minimized;
(b) User personnel training would be facilitated thereby;
(c) Supplies or spare parts would be minimized;
(d) Modifications to existing equipment would not be necessary;
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(e) Training of repair and maintenance personnel would be minimized;
(f) Matching existing supplies, materials, or equipment is required for proper
operation of a function or program.
' 7.05.050 Recycled and Energy Consumptive Materials; Life cy Dry' p Cycle Costing;
Environmental Procurement.
Guidelines shall be established governing the review and approval of specifications for the
procurement of selected materials based on consideration of recycling, energy conservation, life
cycle costing and other environmental considerations.
CHAPTER 7.06
CONTRACT PROVISIONS
Sections
7.06.010 Types of Contracts
7.06.020 Contract Clauses
7.06.030 Prevailing Wages and Benefits
7.06.040 Accounting and Verification of Performance
7.06.050 Multi-Year Contracts
7.06.070 Right to Inspect
7.06.080 Right to Audit Records
7.06.090 Authorization to Execute Documents
' 7.06.100 Authorization for the Use of Electronic Transmissions & Payments
7.06.120 Price Adjustments
7.06.130 Standard Clauses and their Modification
7.06.010 Types of Contracts.
(1) Types of Contract. Any type of contract which will promote the best interest of the
City may be used; provided that the use of a cost-plus-a- percentage-of-cost contract for the
purchase of goods or supplies is prohibited. The contract form will generally include those clauses
listed below in Section 7.06.020. Generally the preferred form specifies the tasks to be completed in
sufficient detail to permit evaluation of performance of such task, and with a stated component for
such task. Payment in advance of performance is discouraged and retention of a percentage of
payment until completion is encouraged. A cost- reimbursement contract may be used only when
such contract is likely to be less costly to the City than any other type or that it is impracticable to
obtain the supplies, services or construction required except under such a contract. Purchase order
form shall be used for purchase of all supplies and goods. A contract form meeting the requirements
of this Chapter shall be used for all services and public projects, with the exception that, at the
discretion of the Director, a purchase order form may be used for contracts less than $5,000 in value.
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(2) Standard Clauses and their Modification, The Director of Procurement and
Contracting, after consultation with the City Attorney, may establish standard contract clauses for
use in City contracts and a standard attachment for city requirements in a purchase order. Such
standard clauses may be varied, after approval by the city attorney provided that any variations are
supported by a written determination that states the circumstances justifying such variations, and ,
provided that notice of any such material variation be stated in the invitation for bids or request for
proposals.
7.06.020 Contract Clauses.
All City purchase orders and contracts shall include provisions necessary to define the
responsibilities and rights of the parties to the agreement. The Director of Procurement and
Contracting, after consultation with the City Attorney, may issue clauses appropriate for services
and construction contracts, addressing among others the following subjects:
(1) A labor and materials bond, plus a performance bond may be required, from an
acceptable surety, in such amounts and in such a form as the City finds reasonably necessary to
protect the public interest.
(2) The unilateral right of the City to order in writing changes in the work within the
scope of the contract;
(3) The standard of care provisions specifying that performance shall be of the highest
standard but in no event less than the generally prevailing industry standard.
(4) The unilateral right of the City to order in writing temporary stopping of the work or
delaying performance that does not alter the scope of the contract; '
(5) Variations occurring between estimated quantities of work in contract and actual
quantities;
(6) Defective pricing;
(7) Liquidated damages where the time of performance is critical and damages would
otherwise be difficult to determine;
(8) Specified excuses for delay or non-performance;
(9) Termination of the contract for default;
(10) Termination of the contract in whole or in part for the convenience of the City which
provisions should be incorporated in every contract unless Director finds good cause for its
exclusion;
(11) Site conditions differing from those indicated in the contract, or ordinarily
encountered, except that a differing site conditions clause need not be included in a contract:
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(a) When the contract is negotiated;
(b) When the contractor provides the site or design; or
site conditions.(c) When the parties have otherwise agreed with respect to the risk of differing
'
(12) Incentive payments for early completion of work may provide for bonus payments for
a public project or service contract;
(13) A "not to exceed amount" limiting the total amount of payments under the contract
which can only be exceeded by subsequent amendment of the agreement;
(14) Limits on transfer or assignment of the agreement;
(15) Insurance provisions as specified by the Risk Manager with provisions providing for
adjustment of minimum limits over time;
(16) Ability to cancel due to unavailability of funds when funds are not appropriated or
otherwise made available to support continuation of performance in a subsequent fiscal period
provision that the contract shall be cancelled and the contractor shall be reimbursed for the
reasonable value of any non-recurring costs incurred but not amortized in the price of the supplies or
services delivered under the contract. Any such reimbursement shall be specifically identified in the
contract in advance so that costs incurred due to termination are clear at any given time.
7.06.030 Prevailing Wages and Benefits.
(1) Contracts for public projects, as defined in Section 1720 of the Labor Code, shall not
' be subject to prevailing wage law (Labor Code Section 1770 et.seq.), except as specified in
Subsection (2) of this Section. Any'notice inviting bids for such public projects shall include
notification of this Subsection.
(2) The provisions of Subsection (1) of this Section shall not apply when the public
project is funded in whole or in part by state or federal loans or grants and payment of prevailing
wages is required in order to receive state or federal funding.
7.06.040 Accounting and Verification of Performance
(1) Accounting. Regulations shall be issued requiring that contractors submit appropriate
documentation prior to the award of contracts in which the City agrees to reimburse costs,
confirming that:
(a) the proposed contractor's accounting system will permit timely development
of all necessary cost data in the form required by the specific contract type contemplated; and
(b) the proposed contractor's accounting system is adequate to allocate costs in
accordance with generally accepted accounting principles.
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(2) Invoices. All invoices will properly document the proportion of the costs or services
performed during the period covered by the invoice.
(3) Right to inspect plant. The City may, at reasonable times, inspect the part of the
plant, place of business, or work site of a contractor or subcontractor at any time which is pertinent
to the performance of any contract awarded or to be awarded by the City.
(4) Right to audit records.
(a) Audit of Cost or Pricing Data. The City may provide for the right in the
contract for audit of the books and records of any contractor who submits costs or pricing data to the
extent that such books, documents, papers, and records are pertinent to such cost or pricing data.
(b) Contract Audit. The City shall be entitled to audit the books and records of a
contractor or a subcontractor at any time under any negotiated contract or subcontract other than a
firm fixed-price contract to the extent that such books, documents, papers, and records are pertinent
to the performance of such contract or subcontract. Such books and records shall be maintained by
the contractor for a period of seven(7) years from the date of final payment under the subcontract
7.06.050 Multi-Year Contracts.
(1) Specified Period. Unless otherwise provided by law, a contract for supplies or
services may be entered into for any period of time deemed to be in the best interest of the City
provided the term of the contract and conditions of renewal or extension, if any, are included in the
solicitation and funds are available for the first fiscal, period at the time of contracting. Payment and
performance obligations for succeeding fiscal periods shall be subject to the availability and
appropriation of funds therefor. '
(2) Use. A multi-year contract is authorized where:
(a) estimated requirements cover the period of the contract and are reasonably
firm and continuing; and
(b) such a contract will serve the best interests of the City by encouraging
effective competition or otherwise promoting economies in City procurement.
(3) Any multi-year contract exceeding a potential tern of five (5) years, including any
options to renew or extend, shall be approved by City Council.
7.06,060 Authorization to Execute Documents.
All documents may be executed by the City Manager whenever such authorization is granted
in a resolution, motion, or minute order adopted by the City Council. All contracts over $25,000
shall be executed "approved as to form" by the City Attorney and attested by the City Clerk. In
general contracts approved by City Council shall be executed by the Mayor. Contracts which do not
require City Council approval shall be executed by City Manager, or if he has delegated awarding
authority, in writing reported to City Council, then by the delegee.
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7.06.070 Authorization for the Use of Electronic Transmissions and Payments.
Notwithstanding any other provision of law, the use of electronic media, including
acceptance of electronic signatures and participation in the State of California "Cal-Card"
Procurement Card Program, is authorized consistent with Federal and State of California applicable
statutory, regulatory or other guidance for such media, so long as such guidance provides (1)
appropriate security to prevent unauthorized access to the bidding, approval, and award processes;
(2) appropriate protection is provided to protect the City from unauthorized charges, and (3) accurate
retrieval or conversion of electronic forms of such information into a medium which permits
inspection and copying. Records may be kept in electronic form.
7.06.080 Price Adjustments.
(1) Adjustments in price resulting from the use of contract clauses required by Section
7,06,020 shall be computed in one or more of the following ways:
(a) By agreement on a fixed price adjustment before commencement of the
pertinent performance or as soon thereafter as practicable;
(b) By unit prices specified in the contract or subsequently agreed upon;
(c) By the costs attributable to the events or situations under such clauses with
adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
- (d) In such other manner as the contracting parties may mutually agree;
(2) Required Submissions Relating to Change Orders or Contract Modifications. A
' contractor may be required to submit cost or pricing data prior to the pricing of any change order or
contract modification, including adjustments to contracts awarded by competitive sealed bidding,
whether or not cost or pricing data was'required in connection with the initial pricing of the contract,
when the change or modification involves aggregate increases or aggregate decreases in costs, plus
applicable profits, that are expected to exceed $25,000. Change Orders in excess of$25,000 shall be
approved by City Council if the total contract amount with that addition would have required City
Council approval for the original agreement or unless additional authority to execute change orders
was approved by City Council specific to a project and/or contract.
(3) Price Adjustment Provision Required. Any contract award, change order, or contract
modification under which the submission and certification of cost or pricing data is required shall
contain a provision stating that the price to the City, including profit or fee, shall be adjusted to
exclude any significant sums if the City finds that such price was increased because the contractor-
furnished cost or pricing data was inaccurate, incomplete, or not current as of the date agreed upon
between the City and the contractor.
CHAPTER 7,07
DISPOSITION OF SURPLUS PROPERTY
Sections
7.07.010 Guideline Development
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7.07.020 Disposition of Surplus Property
7.07.010 Surplus Property Disposition Guidelines.
(1) The Director shall establish additional guidelines as may be required governing:
(2) The transfer of surplus property and operation of the surplus property program; '
(3) The sale or disposal of surplus, unclaimed and seized property by public auction,
competitive formal and informal bid, or other appropriate method designated by regulation including
electronic auction.
(4) The trade-in of surplus property for purchase of new equipment.
(5) The disposal of surplus real property is not regulated under this Title.
7.07.020 Disposition of Surplus Property.
(1) The Director of Procurement and Contracting will operate a surplus property program
for the purpose of receiving, storing, transferring, or selling surplus property no longer needed by
the City.
(2) Departments shall use the property transfer form to request authorization to transfer
property to another department, or to request the transfer of property into or from the surplus
property program.
(3) Surplus property no longer needed by any department shall be offered for sale
through competitive bids or public auction_ Sales by competitive bid will be conducted in '
accordance with Section 7.03.030 (Competitive Sealed Bidding) or Section 7.03.060 (Small
Purchases), except that sale shall be made to the highest responsible bidder.
(4) Unless otherwise provided, all proceeds from sale or auction of surplus property will
be deposited into the City's general fund. Proceeds from sale of enterprise, federal, grant or other
special designation property will be reimbursed, less prorated selling expenses to the appropriate
fund, after completion of each sale.
CHAPTER 7.08
PROCEDURES FOR BID CORRECTIONS, OBJECTIONS AND APPEALS
Sections
7.08.010 Appeal of Denial of Pre-Qualification Rating
7.08.020 Correction or Withdrawal of Bids for Goods and Services
7.08.030 Bid Protests
7.08.040 Remedies for Solicitations or Awards in Violation of Law
7.08.050 Reporting of Anti-Competitive practices.
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7.08.010 Appeal of Denial of Pre-Qualification Rating
Appeal Procedure for denial of pre-qualification rating: Contractor will be provided a
written notice of basis for prospective contractor's disqualification and any supporting evidence
received from others or adduced as a result of an investigation by the City. Appeal time-frame
' procedures: (i) notice to contractor of City's pre-qualification rating shall be no later than 10
business days prior to closing date of bids; (ii) if contractor wishes to appeal it shall be requested
within 2 days of notification; (iii) hearing shall be conducted and a determination made by the City
Council within 5 business days after City's receipt of a notice of appeal;
7.08.020 Correction or Withdrawal of Bids for Goods and Services.
(a) Before bid opening correction or withdrawal of inadvertently erroneous bids
for goods and services may be permitted only in accordance with this Section. Mistakes discovered
before bid opening may be modified or withdrawn by written, telegraphic, or electronic notice
received in the office designated in the Invitation For Bids prior to the date and time set for bid
opening.
(b) Any request filed for withdrawal shall be made within five (5) days after bid
opening. A bidder shall not be relieved of the bid unless by consent of the awarding authority nor
shall any change be made in the bid because of mistakes except a low bidder alleging a material
mistake of fact may be permitted to withdraw its bid if the bidder shall establish the following to the
satisfaction of awarding authority:
1. a mistake was made;
2. the bidder gave the public entity written notice within five days after the
opening of bids of the mistake, specifying in the notice in detail how the mistake occurred;
3. the mistake made the bid materially different then the bidder intended it to
be; or
4. the mistake was made in filling out the bid and not due to error in
judgment or to carelessness in inspecting the site of the work or in reading the plans or
specifications.
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(c) A bidder who claims a mistake or who forfeits his or her bid security by
refusing or £ailing to execute the contract shall be prohibited from participating in further bidding on
the project on which the mistake was made or security forfeited.
(d) If the City Council deems it is in its best interest, it may, on refusal or ,
failure of the successful bidder to execute the contract, award it to the second lowest bidder. If the
second lowest bidder refuses or fails to execute the contract, the awarding authority may likewise
award it to the third lowest bidder. On the failure or refusal of the second or third lowest bidder to
execute the contract, the security of the second, third or other bidder shall be likewise forfeited.
7.08.030 Bid Protests.
(1) Right to Protest. Any actual or prospective bidder, offeror, or contractor
who is aggrieved in connection with the solicitation or award of a contract may submit a formal
protest to the City Manager or his designee requesting an appeal to the city council in accordance
with Chapter 2.05 of the Municipal Code. A protest with respect to an Invitation for Bids or Request
for Proposals shall be submitted in writing within five (5) business days following the day of
opening of bids or closing date of proposals.
(2) Stay of Procurement During Protests. In the event of a timely protest
under Subsection (1) of this Section, the Director of Procurement and Contracting shall not proceed
further with the award of the contract until the appeal is decided.
7.08.040 Remedies for Solicitations or Awards in Violation of Law.
Prior to Bid Opening or Closing Date for Receipt of Proposals. If prior to the bid opening or
the closing date for receipt of proposals the Director of Procurement and Contracting, after '
consultation with the City Attorney, determines that a solicitation is in violation of federal, state, or
municipal law, then the solicitation shall be canceled or revised to comply with applicable law.
Prior to Award. If after bid opening or the closing date for receipt of proposals the
Director of Procurement and Contracting, after consultation with the City Attorney, determines that
a solicitation or a contemplated award of a contract is in violation of federal, state, or municipal law,
then the solicitation or proposal award shall be canceled.
After Award. If, after an award, the Director of Procurement and Contracting, after
consultation with the City Attorney, determines that a solicitation or award of a contract was in
violation of applicable law, then:
If the person awarded the contract has not acted fraudulently or in bad faith:
(1) The contract is void but may be affirmed by the parties, provided it is
determined that doing so is in the best interests of the City and the applicable law can be complied
with; or
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(2) The contract is void and the person awarded the contract shall be
compensated for the actual costs reasonably incurred under the contract, plus a reasonable profit,
prior to the termination; or
' (b) If the person awarded the contract has acted fraudulently or in bad faith the
contract is void.
7.08.050 Reporting of Anti-Competitive Practices.
When for any reason collusion or other anti-competitive practices are suspected among any
bidders or offerors, a notice of the relevant facts shall be transmitted to the State Attorney General
and the County of Riverside District Attorney.
CHAPTER 7.09
SPECIAL PROGRAMS
Section:
7.09.010 Cooperative Purchasing Programs
7.09.020 Assistance to Disadvantaged Business Enterprises (DBE)
7.09.030 Special Provisions for Promoting Local Business Enterprise
7.09.010 Cooperative Purchasing Programs.
The City Council may authorize the acquisition of supplies, equipment or services through a
joint powers or other cooperative purchasing program with a public entity or association of public
' agencies or officials such as the California State Association of Counties, League of California
Cities, or National Conference of Mayors, provided that the bidder selected has been selected
through a competitive process and the,Director of Procurement and Contracting finds (a) that the
competitive process is similar to that contained in this Title or adequate to protect the public interest,
and (b) that due to economies of scale, the nature of the product, or market conditions, the price of
the supplies, equipment, or services is likely to be less through the cooperative purchase than
through the City's independent purchasing pursuant to this Title.
7.09.020 Assistance to Disadvantaged Business Enterprises (DBE).
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(1) Source Lists. The Director of Procurement and Contracting shall compile and
maintain source lists of disadvantaged business enterprises for the purpose of encouraging
procurement from disadvantaged business enterprises and to comply with federal law and authorized
regulations which are mandatorily applicable when a procurement involves the expenditure of '
federal assistance or contract funds. Such source lists are subject to the certification requirements
mandated by State or Federal laws.
(2) Solicitation Mailing Lists. To the extent deemed by the Director of Procurement and
Contracting or as may be required by state or federal code or regulation, the Director of Procurement
and Contracting shall include disadvantaged business enterprises on solicitation mailing or election
solicitation lists.
(3) Solicitation of Disadvantaged Business Enterprises. Director of Procurement and
Contracting shall assure that disadvantaged business enterprises are solicited for each procurement
for which such businesses may be suited.
(4) Training Programs. The Director of Procurement and Contracting shall develop
special training programs to be conducted by the City to assist disadvantaged business enterprises in
learning how to do business with the City.
7.09.030. Special Provisions for Promoting Local Business Enterprise.
For the purpose of this section, "local business enterprise" shall mean a business firm with
fixed offices or distribution points within the boundaries of the City of Palm Springs, with a valid
business-license obtained pursuant to Chapter 3.40 through 3.96 of the City's Municipal Code, and a
City of Palm Springs business street address. Post Office box numbers or residential addresses may
not be used solely to establish status as a "local business enterprise". Tn determining the lowest '
responsible bidder the following provisions shall be applied to a bid submitted by a local business
enterprise:
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(1) Contract for Supplies: For any contract for supplies, the net return of any sales tax to
the City of Palm Springs to be generated by the purchase of supplies shall be utilized as a bid
evaluation factor in determining the lowest net cost to the City;
' (2) Contract for Services: For any contract for services, except professional services, a
reciprocal preference shall be given as against a non-local business enterprise contractor from any
state, county or city that gives or requires a preference to contractors from that entity in award of its
service contracts. The amount of the reciprocal preference shall be equal to the amount of the
preference applied by the entity in which the non-local business enterprise contractor is based as
against the bid of a City of Palm Springs contractor;
(3) Contract Bids Proposing Sub-Contractors:
(a) The prime contractor shall use good faith efforts to sub-contract the supply of
materials and equipment to local business enterprises and to sub-contract services to businesses
whose work force resides within the Coachella Valley ("local sub-contract");
(b) 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 sub-contractors, or by
demonstrating that no local sub-contractors are qualified to perform the work or supply the materials
or equipment;
(c) Any notice inviting bids which may require the use of sub-contractors shall
include notification of this subdivision;
' (d) The City may reject as non-responsive the bid of any contractor proposing to
use sub-contractors that fail to comply with the requirements of this Section.
CHAPTER 7.10
ETHICS IN PUBLIC CONTRACTING
Sections:
7.10.010 Employee Conflict of Interest
7.10.020 Gratuities and Kickbacks
7.10.030 Prohibition Against Contingent Fees
7.10.040 Contemporaneous Employment Prohibited
7.10.050 Waivers from Contemporaneous Employment Prohibition and Other
Conflicts of Interest
7.10.060 Use of Confidential Information
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Ord. 1605
Page 42
7.10.010 Employee Conflict of Interest.
(1) It shall be unethical for any City employee or City official to participate directly or
indirectly in a procurement contract when the City employee or official knows that:
(a) the City employee or official, or any member of the City employee's or
official's immediate family has a financial interest pertaining to the procurement contract; or
(b) any other person, business, or organization with whom the City employee or
official, or any member of the City employee's or official's immediate fan-Lily is negotiating or has an
arrangement concerning prospective employment is involved in the procurement contract.-
(2) A. City employee or City official, or any member of the City employee's or official's
immediate family who holds a financial interest in a disclosed blind trust shall not be deemed to
have a conflict of interest with regard to matters pertaining to that financial interest.
(3) No City employee nor City official shall purchase any goods, supplies, equipment,
etc., from the City unless the goods, supplies, equipment and materials are offered to the general
public on the same terms and conditions as those applicable to the employee or official, or as the
result of a competitive bid process open to the public-
(4) City employees or City officials who approve the designation of City property as
surplus or recommend an item be surplused are ineligible to purchase said items under any process,
including competitive bid.
7.10.020 Gratuities and Kickbacks.
(1) Gratuities. It shall be unethical for any person to offer, give, or agree to give any '
City employee or former City employee, or for any City employee or former City employee to
solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment
in connection with any decision, approval, disapproval, recommendation, or preparation of any part
of a program requirement or a purchase request, influencing the content of any specification or
procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity
in any proceeding or application, request for ruling, determination, claim or controversy, or other
particular matter, pertaining to any program requirement or a contract or subcontract, or to any
solicitation or proposal
(1) Kickbacks. It shall be unethical for any payment, gratuity, or offer of employment to be
made by or on behalf of a subcontractor under a contract to the prime contractor or higher tier
subcontractor or any person associated therewith, as an inducement for the award of a subcontract or
order.
(3) Contract Clause. The prohibition against gratuities and kickbacks prescribed in this
Section shall be conspicuously set forth in every contract and solicitation.
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Oxd. 1605
Page 43
7.10.030 Prohibition Against Contingent Fees.
It shall be unethical for a person to be retained, or to retain a person, to solicit or secure a
City contract upon an agreement or understanding for a commission, percentage, brokerage, or
contingent fee, except for retention of bona fide employees or bona fide established commercial
selling agencies for the purpose of securing business.
7.10.040 Contemporaneous Employment Prohibited.
It shall be unethical for any City employee who is participating directly or indirectly in the
procurement process to become or to be, while such a City employee, the employee of any person
contracting with the City.
7.10.050 Waivers from Contemporaneous Employment Prohibition and Other Conflicts
of Interest.
(1) The City Council may grant a waiver from the employee conflict of interest provision
(Section 7.12.010; Employee Conflict of Interest) or the contemporaneous employment provision
(Section 7-12.040; Contemporaneous Employment Prohibited) upon making a written determination
that:
(a) the contemporaneous employment or financial interest of the City employee
has been publicly disclosed;
- (b) the City employee will be able to perform its procurement functions without
actual or apparent bias or favoritism; and
(c) the award will be in the best interests of the City.
7.10.060 Use of Confidential Information.
It shall be unethical for any employee or former employee knowingly to use confidential
information for actual or anticipated personal gain, or for the actual or anticipated personal gain of
any other person.
SECTION 2. EFFECTIVE DATE. This Ordinance shall be in full force and effect thirty (30) days
after passage.
SECTION 3. PUBLICATION. The City Clerk is hereby ordered and directed to certify to the
passage of this Ordinance, and to cause the same or a summary thereof or a display
advertisement, duly prepared according to law, to be published in accordance with
law-
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Ord. 1605
Page 44
ADOPTED this 16th day o£January, 2002.
AYES: Members Mills, Oden, Reller-Spuzgin and Mayor Kleindieust
NOES: None
A13SENT: None '
ABSTAIN: None
AT ST: CITY OF PALM SPRINGS, CALIFORNIA
City Clerk Mayor
REVIEWED AND APPROVED
I HERESY CERTIFY that the foregoing Ozdinance 1605 was duly adopted by the
City Council of the City of Palm Springs, California, in a meeting held on
the 16th day of .lanuaty, 2002; and that a summary of same was published in
the DESERT SUN, a newspaper of general circulation on December 24, 2001 and
January 22, 2002.
- C2
PATRICIA A. SANDERS '
City Clerk
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