ORDINANCE NO. 1452
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MARYSVILLE,
CALIFORNIA, AMENDING SECTIONS OF THE MARYSVILLE MUNICIPAL CODE REGARDING CHAPTER 2.76 ENTITLED “PURCHASES”
WHEREAS, Chapter 2.76 of the Marysville Municipal Code establishes the procedure for the purchase of goods and services for the City and for the award of contracts for Public Works contracts; and
WHEREAS, the City Council desires to amend certain sections contained within Chapter
2.76; and
NOW, THEREFORE, the City Council of the City of Marysville does ordain as follows:
SECTION ONE.
Subsection (4) of Section 2.76.020 of the Marysville Municipal Code is amended to read as follows:
2.76.020 Definitions.
(4) "Purchasing Agent" shall mean the Finance Director.
SECTION TWO.
First paragraph and subsection (7) of Section 2.76.080 of the Marysville Municipal Code is amended to read as follows:
2.76.080 Exemptions from Centralized Purchasing.
The Finance Director shall be authorized to process for payment those claims against the City for essential services of a recurring nature. Included, but not limited within this authorization, shall be such items as utility services for telephone, electricity and gas, approved claims for liability under the City’s insurance program, renewal premiums for authorized insurance policies, and all expenditures for the City’s payroll and employee withholdings. In addition, the following shall be excluded from the duties of the Purchasing Agent:
(7) Ordinary travel and training expenses;
SECTION THREE.
Section 2.76.112 of the Marysville Municipal Code is added to read as follows:
2.76.112 Open Market Purchasing.
Purchases of goods and services except public projects as defined in Section 2.76.020(7) with sufficient funds appropriated for the purpose, up to two thousand dollars ($2,000) in estimated value, may be made in the open market by an employee authorized by their Department Director in writing. Purchases up to two thousand dollars ($2,000) shall require no quotations.
Purchases of goods and services except public projects as defined in Section 2.76.020(7) with sufficient funds appropriated for the purpose, greater than two thousand dollars ($2,000) and up to five thousand dollars ($5,000) as prescribed by the Purchasing Agent, may be made in the open market by an employee authorized by their Department Director in writing. Purchases up to five thousand dollars ($5,000) may be via written quotation, negotiated contract, or purchase order.
Purchases of goods and services except public projects as defined in Section 2.76.020(7) with sufficient funds appropriated for the purpose, greater than five thousand dollars ($5,000) and up to fifty thousand dollars ($50,000), may be made in the open market. No less than three vendors shall be solicited to submit written quotations. Award shall be made to the responsible vendor offering the lowest acceptable quotation. The names of the vendors submitting quotations, the date, and the amount of the quotation shall be recorded and maintained as a public record. (1) Purchases up to twenty-five thousand dollars ($25,000), may be approved by the Department Director for which funds were appropriated prior to purchase. The Director may reject any and all bids, offers, or quotations when, at the Director’s discretion, it shall be in the best interest of the City to do so. (2) Purchases greater than twenty-five thousand dollars ($25,000) must be approved by the Purchasing Agent prior to purchase. The Purchasing Agent may reject any and all bids, offers, or quotations when, at the Purchasing Agent’s discretion, it shall be in the best interest of the City to do so.
SECTION FOUR.
Section 2.76.113 of the Marysville Municipal Code is added to read as follows:
2.76.113 Informal Bid Purchases.
Purchases of goods and services except public projects as defined in Section 2.76.020(7) with sufficient funds appropriated for the purpose, greater than fifty thousand dollars ($50,000) and up to one hundred thousand dollars ($100,000), may be made by the Director with Purchasing Agent approval and awarded through City Council in the open market through the informal bid process.
(1) A notice inviting informal bids shall be published on the City’s website and advertised in at least one local newspaper outlet. Publishing and advertising shall be completed not less than ten (10) calendar days before bids are due. The notice inviting informal bids shall describe the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids.
(2) Written bids shall be submitted at the time and place stated in the notice inviting bids. (3) Receipt and Award of Bids. A tabulation of all bids received shall be submitted to the Purchasing Agent for award of the contract. The contract shall be awarded to the lowest responsible bidder in accordance with Section 2.76.160 (2). (4) Forms of Contract. All contracts made through formal bidding shall be in writing, approved by the City attorney and executed in the name of the City by the Mayor and City Clerk.
(5) Rejection of Bid. The City Council may reject any and all bids for any reason whatsoever. When all bids are rejected, the City Council may authorize any of the following:
(i) Reinvite bids; or
(ii) Upon majority vote, direct the City Clerk, or their designee, to negotiate with bidders.
(6) Award of Contract. Informal contracts shall be awarded by vote of the Council to the lowest possible bidder except as otherwise provided herein. The Council may waive any informality or immaterial irregularity in any bid.
SECTION FIVE.
First paragraph and subsections (2) and (3) of Section 2.76.120 of the Marysville Municipal Code is amended to read as follows:
2.76.120 Formal Contract Procedure.
Purchases of goods and services except public projects as defined in Section 2.76.020(7) with sufficient funds appropriated for the purpose, of an estimated value of one hundred thousand dollars ($100,000) or more shall be by written contract with the lowest responsible bidder whose bid has been solicited, received and approved pursuant to the following procedure:
(2) Award of Contract. Formal contracts shall be awarded by vote of the Council to the lowest possible bidder except as otherwise provided herein. The Council may waive any informality or immaterial irregularity in any bid. In addition to price in determining the lowest responsible bidder under the provisions of this chapter, consideration shall be given to:
(3) Forms of Contract. All contracts made through formal bidding shall be in writing, approved by the City Attorney and executed in the name of the City by the Mayor and City Clerk.
SECTION SIX.
Section 2.76.121 of the Marysville Municipal Code is added to read as follows:
2.76.121 Cooperative Bidding.
The City may participate in purchases and contracts conducted by other political jurisdictions, provided that the cooperative agreement is established following a competitive bid process. In a cooperative purchase, one agency represents several agencies by soliciting bids including the needs of the other agencies in the bid specifications. This higher product volume may result in lower costs for all agencies, and also reduces the time and cost of the City administering its own bid process.
Needed documentation includes:
(1) Copy of the other jurisdiction’s bid document(s).
(2) Any City Council action awarding the contract.
(3) The contract documents.
SECTION SEVEN.
Section 2.76.122 of the Marysville Municipal Code is added to read as follows:
2.76.122 Piggyback onto Existing Contract.
“Piggybacking” is the use of an existing contract for goods between another government agency and a vendor for purchase of those same goods. When piggybacking onto a contract, the City must use the terms of the contract and the price of the item must be as specified in the contract or awarding document. The contract for consideration must have been awarded through a competitive bidding process prepared and awarded by another local, state, or federal government agency.
Needed documentation includes:
(1) Copy of the other jurisdiction’s bid document(s).
(2) Any City Council action awarding the contract.
(3) The contract documents.
SECTION EIGHT.
Section 2.76.125 of the Marysville Municipal Code is added to read as follows:
2.76.125 Sole Source Procurements.
For Purchases of Less than Fifty Thousand Dollars. Prior to submitting a purchase request, the requesting department shall conduct a survey of available sources to determine whether there is only one source for the required supply, equipment, or service. After reviewing this request by the Purchasing Agent and approved by the City Manager, a contract may be awarded without competition. The Purchasing Agent, or their designee, shall conduct negotiations, as appropriate, as to price, delivery and terms. The requesting Department Director shall prepare a statement of the basis for the sole source determination and the waiver of bid and submit it to the Purchasing Agent for filing with the Finance Department.
For Purchases of Fifty Thousand Dollars, or Greater. Where the City Council determines, based upon staff conducting a good faith review of available sources or staff recommendation of the City's need for unique or custom goods or services, that there is only one source for the required supply, service or material, the City Council may approve by four-fifths vote a sole source purchase without a competitive bid process.
SECTION NINE.
Section 2.76.126 of the Marysville Municipal Code is added to read as follows:
2.76.126 Exceptions to Bidding Requirements.
Exceptions to Bidding Requirements. The requirements of the section requiring the award of contracts by competitive bidding shall not apply:
(i) When, after advertising for bids as required herein, no responsive bids are received; (ii) When, upon a majority vote of the City Council it is determined that it is in the best interests of the City to suspend competitive bidding for any purchase or contract; (iii) When the contract involves the obtaining of professional or specialized services such as, but not limited to, services rendered by architects, attorneys, engineers and other specialized consultants;
(iv) When an emergency purchase must be made in accordance with Section 2.76.090; (v) Where cooperative purchasing agreements or piggyback to an existing contract, approved by the City Council permit purchases of goods and services through legal contracts of other public agencies;
(vi) When, after awarding a contract, the City Council approves a change order pursuant to the provisions in Section 2.76.140(5);
(vii) When it is advantageous to the City, the City Manager, on approval by the City Council, may direct the purchase of surplus supplies from the United States government, or any agency thereof, or from the State of California, or any agency thereof, or any public body, without compliance with the competitive bidding requirements of this chapter; and
(viii) When, upon staff conducting a good faith review of available sources of the City's need for unique or custom goods or service, that there is only one source for the required supply, service or material.
SECTION TEN.
Section 2.76.130 of the Marysville Municipal Code is added to read as follows:
2.76.130 Purchasing Utilizing Federal Grant Funding.
When purchasing goods and services under a Federal grant award, the City is required to follow the provisions of the Uniform Guidance, Procurement Standards (2 CFR §200.318 through §200.326). Where thresholds differ between the City and Federal procurement policies, the City will follow the most restrictive rule.
SECTION ELEVEN.
Subsections (1), (2), (3) and (4) of Section 2.76.140 of the Marysville Municipal Code is amended to read as follows:
2.76.140 Public Projects.
Public projects shall be performed according to the following:
(1) Public projects of ten thousand dollars ($10,000) or less may be performed by City employees, by force account, by negotiated contract, or by purchase order. (2) Public projects greater than ten thousand dollars ($10,000) and up to sixty thousand dollars ($60,000) may be performed by City employees, by force account, or shall be made the open market with no less than three contractors asked to submit written quotations. The award shall be made to the responsible contractor offering the lowest acceptable quotation with approval from the Purchasing Agent. The names of the vendors submitting quotations, the date, and the amount of the quotation shall be recorded and maintained as a public record.
(3) Public projects of two hundred thousand dollars ($200,000) or less may be let to contract by informal bidding procedures as set forth in Section 2.76.150. (4) Public projects of more than two hundred thousand dollars ($200,000), except as otherwise provided in this chapter, be let to contract by formal bidding procedures as set forth in Section 2.76.160.
SECTION TWELVE.
Subsections (4) of Section 2.76.150 of the Marysville Municipal Code is amended to read as follows:
2.76.150 Public Projects - Informal Bidding Procedures. (4) Forms of Contract. All Public Project contracts made through informal bidding shall be in writing, approved by the City Attorney and executed in the name of the City by the Mayor and City Clerk.
SECTION THIRTEEN.
First paragraph and subsection (2) of Section 2.76.160 of the Marysville Municipal Code is amended to read as follows:
2.76.160 Public Projects – Formal Bidding Procedure.
Purchases of goods and services (including all construction projects except public projects and maintenance as defined in Section 2.76.020(7)) of an estimated value in excess of two hundred thousand dollars ($200,000) shall be by written contract with the lowest responsible bidder whose bid has been solicited, received and approved pursuant to the following procedure:
(2) Award of Contract. A tabulation of all bids received shall be submitted to the Council for award of the contract. All Public Project contracts made through formal bidding shall be awarded by vote of the Council to the lowest possible responsible bidder except as otherwise provided herein. The Council may waive any informality or immaterial irregularity in any bid. In addition to price in determining the lowest responsible bidder under the provisions of this chapter, consideration shall be given to:
SECTION FOURTEEN.
Section 2.76.170 of the Marysville Municipal Code is added to read as follows:
2.76.170 Purchasing Table Summary.
Contract Amount Bidding Process Authorization
Required
$2,000.00 or less None Department Director or
designee
$2,000.01 - $5,000.00
Written quotation,
negotiated contract,
purchase order, or
sole source
justification
Department Director or
designee (sole source
must be approved by
Director)
$5,000.01 - $25,000.00
Minimum of three
(3) vendors
solicited for quotes
or sole source
justification
Department Director
(sole source must be
approved by
Purchasing Agent)
$25,000.01 - $50,000.00
Minimum of three
(3) vendors
solicited for quotes
or sole source
justification
Department Director
with Purchasing Agent
approval (sole source
must be approved by
Purchasing Agent)
$50,000.01 - $100,000.00
Informal Bidding
Procedure or sole
source justification
City Council
$100,000.01 or greater
Formal Bidding
Procedure or sole
source justification
City Council
Any amount during a
declared state of emergency
or sole source justification
None City Manager/City
Council
Public Projects
$10,000 or less
Written quotation,
negotiated contract,
or purchase order
Department Director or
designee
Public Projects
$10,000.01 - $60,000.00
Minimum of three
(3) vendors
solicited for quotes
Department Director
with Purchasing Agent
approval
Public Projects
$60,000.01 - $200,000.00
Informal Bidding
Procedure City Council
Public Projects
$200,000.01 or greater
Formal Bidding
Procedure City Council
Professional or Specialized
Services
$25,000 or less N/A City Manager
$25,001 or above N/A City Council
SECTION FIFTEEN. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City of Marysville hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION SIXTEEN. Effective Date.
This Ordinance shall take effect thirty (30) days after its adoption by the Marysville City Council.
The foregoing Ordinance is passed by the City Council of the City of Marysville on June 4, 2024, by the following vote:
Ayes:
Noes:
Absent:
Abstain.
By: ________________________
Nicole Moe, City Clerk
Attestation Date: ____________
City of Marysville, California
By its City Council
By: ________________________________
Chris Branscum, Mayor