O 723
ORDINANCE NO. 723
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF ARROYO GRANDE, CALIFORNIA,
AMENDING CHAPTER 3.08 OF THE CITY OF ARROYO
GRANDE MUNICIPAL CODE RELATING TO
PURCHASING
WHEREAS, the City of Arroyo Grande (“City”) is a municipal corporation organized
under the laws of the State of California; and
WHEREAS, the City is dedicated to operating efficiently, effectively and
streamlining operations where possible; and
WHEREAS, the City’s current purchasing system is outlined in Chapter 3.08 of the
City of Arroyo Grande Municipal Code; and
WHEREAS, the last comprehensive purchasing policy update was in March 2000;
and
WHEREAS, the City’s Administrative Services Division has conducted a review of
the City’s purchasing system and has identified areas of improvement; and
WHEREAS, as part of this purchasing system overhaul includes an increase in
spending authority for the City Manager, allowing the City Manager to enter into
agreements up to a value of $100,000; and
WHEREAS, this increased flexibility will allow the City to more quickly respond to
needs and increase the level of services provided.
THE MAYOR AND CITY COUNCIL OF THE CITY OF ARROYO GRANDE DO
ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The above recitals are true and correct
and are incorporated herein by this reference.
SECTION 2. Amendment of Chapter 3.08. Chapter 3.08 of Title 3 of the Arroyo
Grande Municipal Code is hereby amended in its entirety to read as follows:
Chapter 3.08
ORDINANCE NO. 723
PAGE 2
PURCHASING SYSTEM
Sections:
3.08.010 Adoption of Purchasing System and Applicability
3.08.020 Purchasing Policy and Implementing Procedures
3.08.030 Definitions
3.08.040 Purchasing Compliance Oversight
3.08.050 Purchasing Responsibilities of Department Heads
3.08.060 Contract Award Authority and Delegation of Contract Award
Authority
3.08.070 Solicitation Procedures for Goods and Services
3.08.080 Solicitation Procedures for Public Projects
3.08.090 Purchasing of Paper Products; Procurement of Recovered
Organic Waste Products
3.08.100 Encumbrance of Funds
3.08.110 Federal or State Funding
3.08.120 Disposition of Surplus Personal Property
3.08.130 Ethics
3.08.140 Protests
3.08.010 Adoption of purchasing system and applicability.
A. This chapter adopts a purchasing system to facilitate the purchase of goods and
services at the lowest cost commensurate with the quality needed; to exercise
positive financial control over purchases; to define the authority for the
purchasing function; to assure that consultant selection is based on
demonstrated competence, when required; and to safeguard the quality and
integrity of the purchasing system.
B. This chapter is applicable to all city purchases as defined herein.
3.08.020 Purchasing policy and implementing procedures.
The purchasing systems established by this chapter incorporates a purchasing policy
that governs the purchase of goods and services, including public projects. Such
purchases shall be made in compliance with the provisions of this chapter. For
operational efficiency and effectiveness, the city manager may adopt and subsequently
revise administrative procedures to implement the provisions of this chapter unless
approval by the City Council is required as a condition of the law or regulation. In the
event of a conflict between the administrative procedures and the provisions of this
chapter, the provisions of this chapter shall govern.
3.08.030 Definitions
For purposes of this chapter, the following definitions shall apply:
“Best value procurement” refers to a competitive solicitation process that evaluates
responsive proposals submitted by responsible offerors based on qualitative factors in
addition to pricing.
ORDINANCE NO. 723
PAGE 3
“Bids” refers to submittals received in response to a competitive solicitation that seeks
to award a contract based on the lowest responsive bid submitted by a responsible
offeror.
“Competitive solicitation” is a written statement that sets forth the requirements and
specifications of a required purchase that can include an invitation to bid, request for
proposals, request for statement of qualifications, request for quotations, or other
acceptable methods in compliance with this chapter and the implementing
administrative procedures. Depending on the estimated dollar value, competitive
solicitations may be informal or formal as further defined in sections 3.08.070 and
3.08.080 of this chapter.
“Contract” means an agreement, regardless of what it may be labeled, between the city
and one or more other parties for the purchase or disposition of goods and/or services.
“Goods” refers to needed commodity goods, equipment, materials, or supplies,
including items to be purchased by the city and furnished to contractors for use in public
projects.
“Lowest bid” refers to the lowest responsive bid submitted by a responsible bidder that
conforms to the requirements and specifications of a competitive bid solicitation.
“Maintenance and repair services (general services)” means routine, recurring, and
usual services intended to preserve and/or restore a public work to a clean, safe,
efficient and/or continually usable condition. Maintenance and repair services may
include, but are not limited to: carpentry, electrical, painting, plumbing, glazing and other
craftwork to preserve a facility in the condition for which it was intended; repairs,
cleaning and other operations on machinery and other equipment permanently attached
to a facility as fixtures; the mowing, pruning, and trimming of lawns, grass, trees,
shrubs, bushes and hedges; and the regular removal or relocation of by-products or
waste products accumulated at city facilities as the result of ongoing environmental
processes.
“Professional services” means the services of attorneys, physicians, architects,
engineers, consultants, financial experts, auditors, specialized printers, or other
individuals or organizations possessing a high degree of professional, unique,
specialized, or technical skill or expertise.
“Offeror” refers to an individual or entity that responds to a bid or proposal or other
solicitation with an offer to provide the requested goods and/or services (may also be
referred to as “bidders” or “proposers”).
“Proposals” refers to responsive submittals received in response to a best value
procurement where a contract can be awarded based on factors in addition to price.
“Public projects” means a public works construction project as defined in Public
Contract Code Section 22002.
ORDINANCE NO. 723
PAGE 4
“Responsible bidder” is a bidder determined to have the ability, capacity, experience,
performance track record, and skill to provide the goods and/or services in accordance
with bid or proposal specifications.
“Responsive bidder” means a bidder that has submitted a bid or proposal which
conforms in all material respects to the requirements of the bid or proposal documents.
“Surplus personal property” means goods owned by the city that are no longer needed
or are obsolete or unserviceable, property that is a by-product (scrap metal, used tires,
etc.), or any unclaimed, seized or abandoned personal property in the possession or
custody of the police department that may be legally disposed of by the city.
3.08.040 Purchasing compliance oversight.
The city manager, or their designee, shall be responsible for overseeing and facilitating
compliance with this chapter and the purchasing policy. This responsibility includes:
A. Staying informed of current developments in the field of purchasing;
B. Prescribing and maintaining such forms as are reasonably necessary to the
operation of this chapter and the purchasing policy;
C. Recommending updates to this chapter and making revisions to the purchasing
administrative procedures, as needed;
D. Maintaining purchasing records and tracking citywide expenditures;
E. Coordinating the purchase of goods that will be used by multiple city departments
where feasible and practical; and
F. Disposing of surplus personal property as prescribed herein.
3.08.050 Purchasing responsibilities of department heads.
Each department head shall be responsible for ensuring that all purchases by or for
their department are made in compliance with this chapter and the purchasing policy,
including but not limited to compliance with the following requirements:
A. Preparing solicitation materials, as needed, for each purchase;
B. Preparing good faith estimates of the cost of each purchase to determine the
appropriate solicitation procedure;
C. Ensuring that the proper solicitation procedure is followed based on the
estimated cost of the purchase (informal, formal, etc.);
D. Ensuring that bids or proposals are submitted by responsible offerors
(contractors, consultants, and/or vendors) whose submittals are responsive to
the requirements set forth in a competitive solicitation.
E. Evaluating submitted bids or proposals in accordance with established selection
criteria and processes;
ORDINANCE NO. 723
PAGE 5
F. Ensuring that the purchase contract is approved and executed by a person or
body with sufficient approval authority based on the dollar amount of the
purchase;
G. Ensuring that sufficient funds are appropriated to pay for the purchase;
H. Ensuring that the selected offeror has provided insurance certificates and bonds
meeting the requirements of the purchase contract, as applicable, before work
under the contact begins, and ensuring that such insurance and bonds are
renewed, as applicable, during the term of the agreement;
I. Ensuring that the selected offeror has obtained a business license, as required
by the municipal code, prior to beginning work and ensuring that such license is
renewed, as applicable, during the term of the agreement;
J. Inspecting supplies and equipment delivered to determine their conformance with
the specifications set forth in the order;
K. Monitoring the performance of selected offerors under approved contracts to
ensure compliance with contract requirements;
L. Recommending and preparing contract amendments and change orders as
needed, and ensuring that such amendments and change orders are approved
and executed by a person or body with sufficient approval authority based on the
dollar amount of the amendment or change order, and that sufficient funds are
appropriated to pay for the amendment or change order;
M. Ensuring that due diligence is performed before determining that a purchase
should only be made from a single offeror, and ensuring that decisions to forego
a competitive purchase process are properly documented and submitted for
approval by the city manager or designee, or the city council, in accordance with
this chapter;
N. Taking reasonable and necessary steps to avoid conflicts of interest in the
purchasing process;
O. Keeping sufficient records of all departmental contracts and expenditures, and
ensuring that such records are properly stored and filed in accordance with city
recordkeeping procedures;
P. Submitting reports to the city manager or designee showing all departmental
supplies and equipment that are no longer used or have become obsolete or
worn out so that the city manager or designee can determine the appropriate
steps to sell, exchange, or trade in such surplus supplies and equipment, if
desired; and
Q. Transferring surplus or unused goods between departments as needed, or
selling, exchanging, trading in, or donating surplus goods to interested private or
ORDINANCE NO. 723
PAGE 6
public agencies or vendors as prescribed in this chapter, with appropriate
findings pursuant to any applicable authority or limitation on the City.
3.08.060 Contract award authority and delegation of contract award authority.
A. The authority to award contracts that legally bind the city to a purchase shall be
vested in the city council, unless such authority is delegated to the city manager
as prescribed herein and in the associated administrative procedures.
B. Contract award authority delegated by the city council to the city manager may
be further delegated by the city manager to department heads as necessary for
operational efficiency and effectiveness. Delegation shall be in writing and kept
on file with the city clerk. This provision shall not apply to delegation from the city
council to the city manager as specified in C.3 in this section.
C. Dollar thresholds for awarding contracts shall be established by resolution of the
city council, in accordance with the following level designations:
1. First Level Contracts. First level contracts may be awarded by the city
manager, or department heads who have been delegated contract award
authority in accordance with this section.
2. Second Level Contracts. Second level contracts may be awarded by the
city manager. Nothing in this section shall preclude the city manager from
requesting city council approval for second level contracts if deemed to be
in the best interest of the city.
3. Third Level Contracts. Third level contracts shall be awarded by the city
council, unless such authority is delegated to the city manager for a
specific purpose.
D. All purchase contracts and amendments thereto required by this chapter shall be
approved by the appropriate award authority.
E. Amendments to contracts. For the purposes of subsections B and C of this
section, “amendments” means any amendment, modification, annual renewal not
previously authorized, or change order that results in an increase to the total
amount of money that may be spent under a single contract. Approval authority
limits shall be based on the total contract amount, inclusive of amendments.
Modifications to the terms, conditions, or payment provisions, or material
changes to specifications or scopes of services, of an existing contract, shall
require a contract amendment. All contract amendments required by this chapter
must be in writing and no verbal contract modifications shall be held binding on
the city.
F. Purchases of similar goods and/or services from a single vendor, contractor, or
consultant, which could reasonably be included in a single contract, shall not be
ORDINANCE NO. 723
PAGE 7
split into multiple contracts in order to avoid approval by the city council or the
city manager, as applicable.
3.08.070 Solicitation procedures for goods and services.
The following solicitation procedures shall govern the purchase of all purchases of
goods and services needed for city operations, excluding public projects (see 3.08.080).
A. Solicitation Procedures. Prior to making any purchase, the person or
department initiating the purchase shall make a reasonable and good faith
estimate of the anticipated cost of the purchase and then proceed with the
appropriate solicitation procedure below. If the proposals or bids received
exceed the cost threshold for the solicitation procedure used, a new solicitation
may be required if directed by the city manager.
Purchases shall not be split or separated into smaller orders for the purpose of
circumventing the solicitation or contract award requirements specified in this
chapter.
1. No solicitation required. Purchases of goods and services up to $5,000 do
not require a competitive solicitation and may be made following the
receipt of one price quote or proposal. However, as a matter of fiscal
prudence, nothing shall preclude the person initiating the purchase from
conducting price comparisons to ensure that the best overall value is
obtained.
2. Informal solicitation required. Purchases of goods and services with an
estimated cost between $5,001 and $50,000 shall be made following the
solicitation of at least three written price quotes or proposals, which may
be solicited using any means reasonably calculated to obtain a
combination of the lowest price and highest quality of goods or services
available, in the reasonable discretion of the reviewing authority.
a. The person or department initiating the purchase shall keep a
record of all such solicitations and the price quotes or proposals
submitted in response thereto.
b. If the person or department initiating the purchase is unable to
obtain three price quotes or proposals from responsive and
responsible bidders or proposers after making diligent efforts to do
so, the purchase may be made without obtaining three price quotes
or proposals, provided that the efforts made to obtain three quotes
or proposals shall be documented in the contract file for the
purchase and shall be presented to the city manager or designee
as part of the request for contract award and execution.
ORDINANCE NO. 723
PAGE 8
c. Nothing in this subsection 2 shall preclude the city manager or a
department head from requiring a more formal means of
solicitation, such as that required by subsection 3 below.
3. Formal solicitation required. Purchases of goods and services with an
estimated cost greater than $50,000 shall be made following the posting of
an invitation to submit in writing a sealed bid or proposal.
a. Such written solicitations and offers or responses thereto shall be
established in the purchasing administrative procedures, or as set
forth within the published solicitation. Each solicitation shall
describe the purchase and establish product specifications and/or
required services and all other requirements, including the quantity
and quality thereof, any desired warranty, insurance, or bonds, the
time, place and manner of delivery of the purchases, the desired
terms of payment, and the form, method, and timing of the
response to the solicitation.
b. Such written solicitations shall be posted in at least one publicly
accessible location likely to reach the intended service provider,
supplier, or vendor. The first publication or posting of the
solicitation shall be at least ten days before the due date for
responses to the solicitation. The posting location may include the
city's website, an electronic bulletin board, a newspaper of general
circulation in the city, or a trade journal, magazine, or other
publication, whether in print or electronic.
c. Bids or proposals may also be directly solicited from individuals
and businesses if such individuals or businesses are known to be
capable of providing the item or service that is being solicited.
However, such direct solicitations shall be in addition to
solicitations made under subsection (A)(3)(b).
B. Bid or proposal evaluation.
1. The city may reject any or all bids or proposals in response to a city
solicitation in its sole discretion.
2. If no bids or proposals are received, the city may make the purchase by
any lawful reasonable and available means, notwithstanding the other
requirements of this chapter.
3. If two or more bids or proposals received are for the same total amount or
unit price, quality and service being equal, the contract may be awarded to
either bidder or proposer.
4. Contracts for goods shall be awarded to the lowest responsive and
responsible vendor, where the goods offered are identical or nearly
ORDINANCE NO. 723
PAGE 9
identical. However, where the goods offered are not identical, the city may
consider the fitness and quality of the goods offered, in addition to price,
and may award the contract to the vendor that offers the best combination
of price and fitness and quality of goods.
5. Contracts for general services may be awarded to the lowest responsive
and responsible bidder if determined by the City Manager or designee to
be in the best interest of the City; otherwise, such contracts shall be
awarded in the manner specified in section 3.08.070.B.6 below.
6. Contracts for professional services shall be awarded on the basis of
demonstrated competence and the professional qualifications necessary
for the satisfactory performance of the services, offered at a fair and
reasonable price, as determined by a consideration of the following
criteria:
a. Whether the price is fair, reasonable, and competitive;
b. The quality of the services offered;
c. The demonstrated competence, ability, capacity, and skill of the
person or business to provide the services promptly, within the time
specified, within budget, and without delay or interference;
d. The credentials and licenses of the person or business, if required;
e. The character, integrity, reputation, judgment, training, experience,
and efficiency of the bidder or proposer;
f. The person's or business's knowledge of local conditions;
g. The person's or business's previous history of working on related
projects or issues for the city, where such previous experience will
allow the services to be performed more efficiently and will require
less time spent on preparation and background research;
h. The sufficiency of the bidder's or proposer's financial capacity and
other resources; and
i.
j. The ability of the bidder or proposer to provide such future service
as may be needed.
7. Local preference. Where two or more bidders or proposers are
reasonably comparable based on a consideration of the criteria in
subsection (B)(5), a preference may be given to a bidder or proposer that
has a primary place of business located within the city. The city council
finds that this preference serves the public purposes of supporting local
ORDINANCE NO. 723
PAGE 10
economic stability and of encouraging businesses to locate and remain in
the city of Arroyo Grande.
C. Exceptions. The solicitation procedures in this section shall not apply to
purchases that satisfy one or more of the following criteria:
1. No price advantage would be gained from a competitive solicitation
process, including but not limited to circumstances when goods or
services are unique and are only available from one source, also known
as a "sole source" contract. However, if the person or department initiating
the purchase proposes to forego a competitive solicitation process based
on this subsection (C)(1), a justification for the recommendation shall be
presented in writing to the city manager or designee, whose approval is
required to move forward with a recommendation for contract award to the
appropriate award authority.
2. When the purchase is based on a master agreement, cooperative
agreement, multiple award schedule, or other types of agreements
entered into by the state of California or the federal government.
Examples include, but are not limited to, California Multiple Award
Schedules (CMAS) and Federal General Services Administration (GSA)
contracts.
3. When the vendor or service-provider was awarded a contract by another
public agency; said agency used solicitation procedures substantially
similar to those that the city would have been required to use, , the vendor
or service-provider offers the same price(s) to the city that it offered to the
other agency; and the initial awarding public agency agrees to the
purchase.
a. This subsection 3 may include the use of for profit regional or
national purchasing cooperatives, provided that the city is a
registered member of the cooperative and a membership fee is not
required.
4. Where an emergency situation exists, as determined by the city manager
consistent with the process laid out by City’s Municipal Code, or where a
disaster has been declared by the city council, state or federal
government, such that the life, health or safety of employees or the
general public is at risk, or when significant harm may occur to city
property or operating systems and goods and/or services must be
procured immediately to prevent loss or substantial disruption of city
services or functions; provided that competitive bidding is not required by
a state or federal reimbursing agency and is otherwise consistent with
State law.
ORDINANCE NO. 723
PAGE 11
5. When the contract award authority determines that bidding would be
impractical, inefficient, or otherwise not in the best interest of the city,
provided that contract file contains sufficient documentation to justify bid
impracticality.
6. When the purchase is for, or made in conjunction with, the following:
a. Insurance and bonds;
b. Public library collection materials or services for the provision of
public library collection materials or other books or periodicals;
c. Procurements funded by grants, donations or gifts when the
special conditions attached to the grants, donations or gifts require
the procurement of particular goods and/or services;
d. Goods and/or services obtained from or through agreement with
any governmental, public or quasi-public entity;
e. Works of art, entertainment or performance;
f. Surplus personal property owned by another governmental, public
or quasi-public entity;
g. Membership dues, conventions, training, and travel arrangements;
h. Advertisements in magazines, newspapers, or other media;
i. Goods procured for resale to the public.
The person responsible for conducting a procurement pursuant to this section shall
conduct negotiations, as appropriate, as to price, delivery and terms and may require
the submission of cost or pricing data in connection with the award of a contract which
does not require a competitive solicitation.
Notwithstanding the exception provisions listed above, nothing in this section shall
preclude the solicitation of competitive bids or proposals, when in the best interest of the
city or when required by law.
3.08.080 Solicitation procedures for public projects.
The following solicitation procedures shall govern the bidding and awarding of contracts
associated with public projects.
A. Uniform Public Construction Cost Accounting Act. The city has adopted the
Uniform Public Construction Cost Accounting Act (Public Contract Code Section
22000 et seq., as may be amended) (the "Act") and all expenditures for public
projects by the city shall be made in accordance with the Act.
B. Solicitation Procedures. Prior to making any purchase, the person or department
initiating the purchase shall make a reasonable and good faith estimate of the
ORDINANCE NO. 723
PAGE 12
anticipated cost of the purchase and then proceed with the appropriate
solicitation procedure below. Purchases shall not be split or separated into
smaller orders for the purpose of circumventing the procedures hereunder.
1. No Competitive Bidding Required. Public projects with an estimated cost
of up to the maximum dollar amount stated in Public Contract Code
Section 22032(a), including any amendment thereto, may be performed by
city employees by force account or else may be awarded by negotiated
contract or by purchase order without competitive bidding.
2. Informal Bidding Required. Public projects with an estimated cost of up to
the maximum dollar amount stated in Public Contract Code Section
22032(b), including any amendment thereto, shall require either the
informal bidding procedures set forth in Section 3.08.080(C) or the formal
bidding procedures set forth in Section 3.08.080(D).
3. Formal Bidding Required. Public projects with an estimated cost of greater
than the maximum dollar amount stated in Public Contract Code Section
22032(c), including any amendment thereto, shall require the formal
bidding procedures set forth in Section 3.08.080(D).
C. Informal Bidding Procedures. The following procedures shall apply to informal
bids: A notice inviting bids shall be prepared, which describes the project in
general terms, explains how to obtain more detailed information about the
project, and states the time and place for the submission of bids. The notice shall
be mailed to all contractors for the category of work to be bid, as shown on the
list developed in accordance with Section 3.08.080(E), and to all construction
trade journals as specified by the California Uniform Public Construction Cost
Accounting Commission ("Commission"), in accordance with Public Contract
Code Section 22036, including any amendment thereto.
Notices sent to contractors on the contractors list shall be sent not less than ten
calendar days before bids are due and may be sent by mail, fax, or email.
Additional contractors and/or construction trade journals may be notified at the
discretion of the department soliciting bids, provided, however:
1. If there is no list of qualified contractors maintained by the city for the
particular category of work to be performed, the notice inviting bids shall
be sent only to the construction trade journals specified by the
Commission.
2. If the product or service is proprietary in nature such that it can be
obtained only from a certain contractor or contractors, the notice inviting
informal bids may be sent exclusively to such contractor or contractors.
D. Formal Bidding Procedures. The following procedures shall apply to formal bids:
A notice inviting bids shall be prepared, which describes the project in general
ORDINANCE NO. 723
PAGE 13
terms, explains how to obtain more detailed information about the project, and
states the time and place for the submission of bids. The notice shall be
published at least fourteen calendar days before the date of opening the bids in a
newspaper of general circulation, printed and published in the city; or, if there is
no newspaper printed and published in the city, in a newspaper of general
circulation which is circulated within the city; or, if there is no newspaper which is
circulated within the city, publication shall be by posting the notice in at least
three places within the city as have been designated by ordinance or regulation
of the city as places for the posting of its notices.
The notice inviting formal bids shall also be sent electronically, if available, by
either fax or email and mailed to all construction trade journals specified by the
Commission pursuant to Public Contract Code Section 22036. The notice shall
be sent at least fifteen calendar days before the date of opening the bids. In
addition to notice required by this section, the city may give such other notice as
it deems proper.
E. Contractors List. The public works director or designee shall develop and
maintain a list of contractors in accordance with the provisions of Public Contract
Code Section 22034 and criteria promulgated from time to time by the
Commission.
F. Preparation and Adoption of Plans. In accordance with Public Contract Code
Section 22039, the city council, hereby delegates authority to the public works
director or his or her designee, to prepare and adopt plans, specifications, and
working details for all public projects with an estimated cost greater than the
maximum dollar amount stated in Public Contract Code Section 22032(c),
including any amendment thereto.
G. Award of Contract.
1. If a contract is awarded, it shall be awarded to the lowest responsive and
responsible bidder. If two or more bids are the same and the lowest, the
contract may be awarded to either bidder.
2. If the project was bid using informal bidding procedures, and all bids
received exceed the maximum dollar amount stated in Public Contract
Code Section 22032(c), including any amendment thereto, the city council
may, by a four-fifths vote, adopt a resolution awarding the contract to the
lowest responsive and responsible bidder if the amount of the contract
does not exceed the dollar threshold stated in Public Contract Code
Section 22034(d), including any amendment thereto, and it determines the
city's cost estimate for the project, upon which the decision to use informal
bidding procedures was based, was reasonable. Otherwise, the project
shall be re-bid following the formal bidding procedures.
ORDINANCE NO. 723
PAGE 14
3. In its discretion, the city may reject any or all bids, and may do any of the
following:
a. Abandon the project.
b. Re-advertise the bid in the manner described in this chapter.
c. By a four-fifths vote, the city council may declare by resolution that
the project can be performed more economically by city employees
and may have the project done by force account without further
complying with this chapter. Prior to rejecting all bids and declaring
that the project can be more economically performed by city
employees, the city shall furnish a written notice to an apparent low
bidder, informing the bidder of the city's intention to reject the bid.
Such written notice shall be mailed at least two business days prior
to the hearing at which the city intends to reject the bid.
4. If no bids are received through the formal or informal procedure, the
project may be performed by city employees by force account or by a
negotiated contract without further complying with this chapter.
H. Emergencies.
1. In cases of emergency when repair or replacements are necessary, the
city council may, by a four-fifths vote, proceed at once to replace or repair
any public facility, take any action required by that emergency, including
procure equipment, services, and supplies without giving notice for bids to
award contracts pursuant to Public Contract Code section 22050(a)(1).
2. Before taking any action the city council shall make a finding that the
emergency will not permit delay resulting from a competitive bid process,
and the action is necessary to respond to the emergency. Such findings
shall be based upon substantial evidence set forth in the minutes of its
meeting pursuant to Public Contract Code section 22050(2).
3. If the city council has ordered any emergency action, it shall review the
emergency action at its next regularly scheduled meeting. Until the action
is terminated the city council shall determine the need to continue such
action by a four-fifths vote at each meeting pursuant to Public Contract
Code section 22050(c)(1).
4. In case of an emergency, if notice for bids to award contracts will not be
given, the city shall comply with all requirements of Public Contract Code
section 22050.
I. Exemptions. The bidding procedures for public projects required by this chapter
shall not apply when an exemption is provided by state or federal law.
ORDINANCE NO. 723
PAGE 15
3.08.090 Purchase of paper products; procurement of recovered organic waste
products.
Pursuant to relevant state law and Chapter 8.33 of the Arroyo Grande Municipal Code
(Mandatory Organic Waste Disposal Reduction), the city has adopted a Recovered
Organic Waste Product Procurement Policy. This policy requires all city departments
and divisions to incorporate environmental considerations including recycled-content
and recovered organic waste product use into purchasing practices and procedures. All
vendors providing paper products, printing and writing paper, and organic waste
products must comply with relevant state law and city requirements.
3.08.100 Encumbrance of funds.
Except in cases of emergency or in cases where specific authority has been first
obtained from the city manager, no purchase shall be made unless there exists a lawful
funding source and an unencumbered appropriation in the department, or in the fund
against which a purchase is to be charged.
3.08.110 Federal or state funding.
When a purchase of goods and/or services involves the expenditure of federal or state
funds, the procurement shall be conducted in accordance with mandatory applicable
federal or state regulations, and the chosen bidder or proposal shall be responsible for
compliance with all regulations and conditions. Such laws or regulations may be
incorporated in the purchasing administrative procedures, and periodically updated, as
required.
3.08.120 Disposition of surplus personal property.
A. Approval Authority and Disposition. The approval authority to dispose of surplus
personal property having salvage value shall be consistent with the first, second
and third level designations in Section 3.08.060 used to determine the
appropriate contract award authority. Such surplus property shall be disposed by
public auction, by competitive sealed bids, or by exchange or trade-in for new
goods. The sale or lease of surplus personal property to a governmental, public,
or quasi-public agency may be without advertisement for or receipt of bids.
B. Property with No Salvage Value. Surplus personal property with no salvage
value, as determined by the city manager or designee, shall be disposed of in a
manner that salvages recyclable components, if practical.
C. Unclaimed, Seized or Abandoned Property. The city manager or designee is
authorized to sell or dispose of all goods in the possession of the police
department which are unclaimed, seized and/or abandoned and may be legally
disposed of by the city.
D. Records. Each department shall keep records which indicate surplus personal
property disposed of, the method of disposal, and the amounts recovered from its
disposal. Such records shall be available for public inspection and kept for a
ORDINANCE NO. 723
PAGE 16
period of time in compliance with state law and the city’s records retention
schedule.
E. Donations. Upon advance written approval of the city manager and appropriate
indemnification from liability as determined by the city attorney, surplus personal
property may be donated in “as-is” condition to governmental, public or quasi-
public agencies, charitable or non-profit organizations. Any such donation must
be in further of a legitimate public purpose with appropriate findings pursuant to
any applicable authority or limitation on the City.
F. Proceeds of Sale. Proceeds from the sale of surplus personal property shall be
deposited into the appropriate city fund.
3.08.130 Ethics.
A. Statement of policy. City employees and officials shall discharge their duties
impartially so as to assure fair competitive access to city procurement
opportunities by responsible contractors. Moreover, they shall conduct them-
selves in such a manner as to foster public confidence in the integrity of city
procurement activities.
B. Conflict of interest. No city employee or city official shall participate directly or
indirectly in a city procurement when the employee knows that:
1. The employee or official or any member of their immediate family has a
financial interest pertaining to the procurement; or
2. The employee or official or any member of their immediate family is
negotiating or has an employment arrangement which is contingent upon
or will be affected by the procurement.
3. Withdrawal from Participation. Upon discovery of an actual or potential
conflict of interest, an employee/official shall promptly withdraw from
further participation in the procurement.
4. Gratuities. No person shall offer, give or agree to give any city employee
or city official any gratuity or offer of employment in connection with a
procurement by the city. No city employee or city official shall solicit,
demand, accept or agree to accept from any other person a gratuity or an
offer of employment in connection with a procurement by the city.
C. In any instance in which a city employee or city official believes they meet the
criteria under Section 3.08.130(B) above, they shall promptly inform the City
Manager and City Attorney.
3.08.140 Protests.
A. Effect of Failure to Protest. The procedures set forth in this section are
mandatory and are the sole and exclusive remedy of a bidder, proposer or other
ORDINANCE NO. 723
PAGE 17
vendor to dispute the award of a contract that the city solicits through a
competitive process. A protest that does not comply with these procedures may
be summarily rejected and the person submitting the protest shall be deemed to
have waived all rights to relief.
B. Protests of Solicitation Method. By submitting a bid, proposal or other application
for a contract award, the bidder, proposer or other vendor shall be deemed to
have waived all rights to challenge the city’s method for procuring the contract or
any discrepancy in the solicitation process or documents. Bidders, proposers, or
vendors may submit bids, proposals or other applications under protest. Protests
under this section shall be submitted in writing to the official designated to
receive the bid, proposal or other application and shall contain a full summary of
the factual and legal basis for the protest.
C. Protests of Award. A bidder, proposer or other vendor applying for a city contract
through a competitive process may submit a written protest of the award of the
contract. The protest shall identify and explain the factual and legal grounds for
the protest. Any grounds not raised in the written protest are deemed waived by
the protesting bidder.
D. Waiver. Any person that: (1) did not directly submit a bid or proposal; (2) is not
responsible or qualified to receive the contract; (3) failed to submit a responsive
bid or proposal; (4) is not in line to receive the contract or is otherwise ineligible
to receive the contract; (5) is otherwise not beneficially interested in the award; or
(6) fails to submit a timely protest shall be deemed to have waived the right to
protest the award of the contract. Any protest deemed waived will be subject to
summary rejection without further consideration and the person will have no right
to any relief.
E. Timing of Protest of Award. Protests shall be submitted in writing to the official
designated to receive the bid, proposal or other application within the following
times:
1. If of another bidder, within five calendar days after the bid opening date.
2. If in response to a notice of intent to award a bid, proposal or other
application, then within five calendar days following the issuance of the
recommendation and prior to the date of the award.
3. If in response to a notice of intent to reject a bid, proposal or other
application, then within five calendar days following the issuance of the
notice of intent.
F. City Response. If the protest is timely and complies with the above requirements,
the city shall review the protest, any response from the challenged bidder,
proposer or other vendor, and all other relevant information. The City will provide
a written decision to the protestor in a reasonable amount of time. If the protest is
ORDINANCE NO. 723
PAGE 18
in response to a recommendation of award to the City Council, then the protest
will be considered concurrently with the award of the contract, and the approval
authority’s action is final.
G. Conflicts. The protest procedures contained in this section shall not apply if a
particular solicitation contains a different protest procedure. This section does not
limit or eliminate a claimant’s obligations under the Government Claims Act,
Government Code Section 900 et seq.
SECTION 3. CEQA. The City Council determines that the Ordinance is categorically
exempt from further review per State CEQA Guidelines (14 Cal. Code Regs., § 15000
et seq.). The whole of the Ordinance is exempt, because the code amendment is an
administrative activity which will not result in a direct or reasonably foreseeable indirect
physical change to the environment. (§ 15060(c)(2).) The whole of the Ordinance is also
exempt because the code amendment is not a “project” as defined by section 15378,
since it has no potential for resulting in a direct or indirect physical change to the
environment. (§ 15060(c)(3).) The City Council hereby directs City staff to file a Notice
of Exemption within five days of the adoption of this Ordinance.
SECTION 4. Within fifteen (15) days after passage of this Ordinance, it shall be
published once, together with the names of the Council Members voting thereon, in a
newspaper of general circulation within the City.
SECTION 4. This Ordinance shall take effect and be in full force and effect thirty (30)
days after its passage.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this Ordinance is
for any reason held to be invalid or unconstitutional by a decision of any court of
competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether any portion of the
Ordinance would be subsequently declared invalid or unconstitutional.
On motion of Mayor Pro Tem Barneich, seconded by Council Member George,
and on the following roll call vote, to wit:
AYES: Council Members Barneich, George, Guthrie, Secrest, and Mayor Ray
Russom
NOES: None
ABSENT: None
th
The foregoing Ordinance was passed and adopted this 10 day of October, 2023.
ORDINANCE NO. 723
PAGE 19
/s/CAREN RAY RUSSOM, MAYOR
ATTEST:
/s/JESSICA MATSON, CITY CLERK