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RESOLUTION NO. 25-24
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK ADOPTING THE PURCHASING POLICY FOR FISCAL YEAR 2025/26
WHEREAS, Government Code sections 54201 et seq. govern purchasing by local government bodies requiring that every local agency adopt policies and procedures to govern their purchases of supplies, equipment, and services; and WHEREAS, the current Purchasing Policy was adopted by City Council June 18, 2024; and
WHEREAS, Chapter 3.16 of the Norwalk Municipal Code (NMC) permits periodic revision of Purchasing Policy; and
WHEREAS, Exhibit A is the Purchasing Policy for Fiscal Year 2025/26, effective July 1, 2025; and
WHEREAS, the Purchasing Policy for Fiscal Year 2025/26 establishes, among other things, the Purchasing Authority Limit, which rises annually based on the Consumer Price Index; and
WHEREAS, City Council desires to institute the attached Purchasing Policy, including setting the adjusted Purchase Authority Limit for Fiscal Year 2025/26.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF NORWALK
HEREBY DETERMINES, FINDS, AND RESOLVES AS FOLLOWS:
Section 1.The City Council hereby approves Exhibit A, Purchasing Policy, which is incorporated by this reference as though set forth in full, as the policy which shall supersede prior policies and shall govern the City of Norwalk’s purchasing functions pursuant to Chapter 3.16, “Purchasing System,” of Title 3, “Revenue and Finance,” of the Norwalk Municipal Code.
Section 2. The Mayor, or presiding officer, is hereby authorized to affix his signature on this Resolution signifying its adoption by the City Council of the City of Norwalk and the City Clerk, or his duly appointed assistant, is directed to attest hereto.
APPROVED AND ADOPTED on this 17th day of June 2025.
_____
TONY AYALA
MAYOR
ATTEST:
____________________________
THERESA DEVOY, CMC
CITY CLERK
Attachment No. 1
Resolution No. 25-24 Page 2 of 52
CITY OF NORWALK
Purchasing Policy Summary
FY 2025-2026
$40,600 Purchasing Authority Authorization LimitNMC 3.16.06 Purchase Type:
Supplies, materials and equipment, and
nonprofessional services NMC 3.16
Amount Bidding PO On Site Services*
$9,000 and
Under
No Specific requirements;
Competitive bidding to be used whenever practical
Purchase Order (PO) issued upon request
NO
•Fully executed Terms and
Conditions or Agreement
•Insurance documentation on
file
$9,001 to
$40,600
Informal Bid
Department solicits at least 3 bids;
Bid award by Finance via purchases order YES
•Fully executed Terms and
Conditions or Agreement
•Insurance documentation on
file
$40,601 and
Over
Formal Bid or RFP documents Advertising for
sealed bids or proposals City Council approves
contract
YES
•Agreement – Approved by
City Council
•Insurance documentation on
file
*On-site Service – any vendor that comes on City property to provide service Exhibit A
Resolution No. 25-24 Page 3 of 52
Purchase Type: Professional Service NMC 3.21
Amount Bidding PO Agreement required
$9,000 and
Under
No Specific requirements;
Competitive bidding to be used whenever practical.
Purchase Order issue upon request NO
•Professional Services
Agreement
•Insurance documentation on
file
$9,001 to
$40,600
Informal Bid
Department solicits at least 3 bids; YES
•Professional Services
Agreement
•Insurance documentation on
file
$40,601 and
Over
Formal Bid or RFP documents
Advertising for sealed bids or proposals YES
•Professional Services
Agreement – Approved by
City Council
•Insurance documentation on
file
Purchase Type: Public Project NMC 3.17
Amount Bidding PO Agreement required
$75,000 and
Under
No Specific requirements - Level 1 project Section
22032 of the Public Contract Code Competitive bidding
to be used whenever practical. YES
•Agreement – Approved by
City Council
•Insurance documentation on
file
$75,001 to
$220,000
Informal Bid - Level 2 project
Section 22032 of the Public Contract Code
Department solicits at least 3 bids;
May be verbal with a written quote – no bid may be
verbal only
YES
•Agreement – Approved by
City Council
•Insurance documentation on
file
$220,001 and
Over
Formal Bid - Level 3 project
Section 22032 of the Public Contract Code
Newspaper advertising for sealed bids or proposals
City Council approves contract
YES
•Agreement – Approved by
City Council
•Insurance documentation on
file
Resolution No. 25-24 Page 4 of 52
CITY OF NORWALK POLICY STATEMENT
Number: 25-01
Subject: Purchasing Policy
Adopted Date: June 17, 2025
Effective Date: July 1, 2025
BACKGROUND
The main theme of the Manual reflects the philosophy of the Finance Department to obtain supplies, equipment, and services as required by all Departments in a timely manner, at the best possible price, and within the boundaries as set forth by City policy.
PURPOSE
To establish City policies and procedures regarding the purchasing ordinance of the City of Norwalk (NMC Chapter 3.16) this includes competitive bidding, purchasing practices, and related administrative authority. The purpose of this policy is to provide for the effective administration of the purchasing ordinance. This system has been developed in order to achieve the following objectives:
1. Secure goods and services at the lowest cost possible commensurate with quality requirements.
2. Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City.
3. Ensure competition and impartiality in all purchasing transactions to the maximum extent possible.
4. Standardize procedures where appropriate to ensure that organization-wide policies and goals are achieved.
5. Maintain Department responsibility, initiative and flexibility in evaluating, selecting and purchasing goods and services.
6. Implement simple yet effective internal control procedures that appropriately support planning, maximize productive use of public funds and protect City assets from unauthorized use.
7. Communicate organization-wide purchasing goals, policies and procedures to Departmental staff involved in purchasing activities.
Application of Purchasing Policy
The purchasing policy and procedures applies to the purchase of all goods (supplies, materials and equipment, and nonprofessional (NMC Chapter 3.16), professional services (NMC Chapter 3.21) and public projects (NMC Chapter 3.17).
Resolution No. 25-24 Page 5 of 52
Definitions
The following words and terms shall be defined as follows unless the context indicates that a different meaning is intended:
“Annual Recovered Organic Waste Product Procurement Target” means the amount of Organic Waste in the form of a Recovered Organic Waste Product that the City is required to procure annually under 14 CCR Section 18993.1. “Bidders list” means a current file of sources of supply of articles for each category of commodities repetitively purchased for City use.
“City” means the City of Norwalk.
“City Council” means the City Council of the City of Norwalk. “Compost” means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4).
Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements.
“Direct Service Provider” means a person, company, agency, district, or other entity that provides a service or services to Jurisdiction pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17). “Department” means any of the departments, offices, or other organizational units of the City.
“Electricity Procured from Biomass Conversion” means electricity generated from biomass facilities that convert recovered Organic Waste, such as wood and pruning from the municipal stream, into electricity. Electricity procured from a biomass conversion facility may only count toward the Jurisdiction’s Annual Recovered Organic Waste Product Procurement Target if the facility receives feedstock directly from certain permitted or authorized compostable material handling operations or facilities, transfer/processing operations or facilities, or landfills, as described in 14 CCR Section 18993.1(i).
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“Local bidder” means a firm or individual who regularly maintains a place of business and transacts business in, maintains an inventory of merchandise for sale in, is licensed by, or pays business taxes to the City.
“Local Vendor Preference is 5% - In the tabulation of bids by the City to ascertain the lowest responsible bidder, the Purchasing Authority, as to each local vendor, tabulate that local vendors' bid as if it were 5% below the figure actually set forth in the bid. (NMC
3.20.030)
“Maintenance work” means the same as this term is defined in Public Contract Code Section 22002(d), and 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. Minor repainting;
3. Resurfacing of streets and highways at less than one inch;
4. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems;
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 two hundred thirty thousand (230,000) volts and higher.”
“Non-responsible bidder” means a bidder or prospective bidder who fails to furnish, upon written request, proof of its responsibility; who has, as a vendor or contractor with the City, made slow or unsatisfactory deliveries or otherwise performed unsatisfactorily; or who has violated or attempted to violate, any provisions of this chapter. “Nonprofessional Service” means any and all services, but not constituting professional services or Public Projects, but including maintenance work. “Online Bidding Platform” means the City’s contracted online bid management software. “Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food, yard trimmings, organic textiles and carpets, lumber, wood, Paper Products, Printing And Writing Paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 CCR Section 18982(a)(16.5), respectively.
Resolution No. 25-24 Page 7 of 52
“Professional Services” means services, other than services constituting Public Projects, performed by specially trained persons or firms in a professional occupation, including, but not limited to, services in connection with financial, economic, accounting, auditing, architectural, engineering, planning, legal, administrative or other matters involving advanced or specialized knowledge, expertise or training gained by formal studies. “Public Project” means the same as this term is defined in Public Contract Code Section 22002, and as may be amended from time to time.
“Purchasing Authority” means the Purchasing Authority or any individual designated in a written policy adopted by the City Council to carry any duty set forth in this Ordinance and filed with the City Clerk and Department of Finance. “Purchasing Authority Authorization Limit” the amount determined in accordance with Section 3.16.060 – set at $40,600 in fiscal year 2024-25. “Recovered Organic Waste Products” means products made from California, landfill- diverted recovered Organic Waste processed at a permitted or otherwise authorized operation or facility, or as otherwise defined in 14 CCR Section 18982(a)(60). Products that can be used to meet the Annual Recovered Organic Waste Product Procurement Target shall include Compost, SB 1383 Eligible Mulch, Renewable Gas from an in-vessel digestion facility, and Electricity Procured from Biomass Conversion as described herein and provided that such products meet requirements of 14 CCR, Division 7, Chapter 12, Article 12.
“Responsive bid” means an offer, submitted in ink or typewritten form, to furnish supplies, materials and equipment, or services, and complying with the specifications, delivery terms and conditions, and other requirements included in the invitation for bids. “Responsive and Responsible Bidder” means a bidder who submits a responsive bid; who has furnished, upon written request, information and data to prove that its financial resources, production facilities, service reputation and experience are adequate to make satisfactory delivery of the supplies, materials or equipment on which it bids; and who has not violated, or attempted to violate, any provisions of this chapter. “SB 1383 Eligible Mulch” means mulch eligible to meet the Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions for the duration of the applicable procurement compliance year, as specified by 14 CCR Section 18993.1(f)(4):
1. Produced at one of the following facilities:
a. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10); Guidance: Note that SB 1383 Eligible Mulch excludes mulch from chipping and grinding operations. b. A transfer/processing facility or transfer/processing operation as defined in Resolution No. 25-24 Page 8 of 52
14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or,
c. A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.
“Services” means any and all services, including utility services, which shall be furnished to or used by any Department and the rental or lease of equipment and machinery furnished to or used by any Department.
“Supplies, materials and equipment” means any and all articles or items which shall be furnished to or used by any Department. Supplies, materials and equipment shall not include services.
“CUPCCAA” means the California Uniform Public Construction Cost Accounting Act, as set forth in Public Contract Code section 22000 et seq.
Purchasing Authority designated - Powers and duties (NMC 3.16.050) The City's purchasing ordinance delegates purchasing authority to the City Manager.
The Purchasing Authority may delegate all or a portion of the contracting or purchasing duties to any City staff member. The Purchasing Authority’s functions shall include the following powers and duties:
A. Negotiate, purchase, and contract for supplies, materials and equipment, and Services required by City Departments, within the authorization limits of 3.16.060, pursuant to the procedures provided in chapter 3.16;
B. Endeavor to obtain as full and open competition as possible on all purchases; C. Supervise the inspection of all supplies, services, and equipment purchased to ensure conformance with specifications;
D. Develop, prescribe and maintain, such administrative policies, forms and files as may be reasonably necessary for the efficient purchases on behalf of the City; E. Prepare procedural regulations governing the purchase of supplies, materials and equipment, and services, in accordance with the requirements prescribed in this chapter;
F. Facilitate the transfer of surplus or unused supplies and equipment among Departments as needed;
Resolution No. 25-24 Page 9 of 52
G. Recommend the sale or disposal of all supplies and equipment which cannot be used by the City, or which have become unsuitable for City use; H. Maintain a bidders’ list, vendors catalog file and records needed for the efficient operation of the purchasing Department
Delegation of Responsibility
The Purchasing Authority for Supplies, materials, equipment, non-professional and professional services is hereby designated as the City Controller.
The Purchasing Authority for Public Works projects is hereby designated as the City Engineer.
1. The City Controller further delegates to each of the ordering Department heads the authority to purchase goods or contract for services, up to $9,000, excluding technology, computer related items including software, provided that said contracts and purchases conform to the City's Municipal Code and administrative policy. (NMC
3.16.140)
General Responsibility
The City utilizes a purchasing system under which each Department is responsible for coordinating the purchase of its own goods and Services with the Finance Department. (NMC 3.16.140)
1. The Finance Department has the responsibility to:
a. Ensure that all Departments comply with the Purchasing Ordinance and this Purchasing Policy;
b. Prepare and/or review, request for quotation and Informal bids upon request of City Departments (purchases under Purchasing Authority Authorization Limit);
c. Distribute all formal bids (including supplies, materials, equipment, non- professional and professional services and public works projects); d. Prepare formal bids upon request of City Department for supplies, materials, equipment, non-professional and professional services; e. Maintain a viable Bidders’ list for use in the bidding process and to perform all other duties and responsibilities related to the purchasing ordinance and administrative policy.
Resolution No. 25-24 Page 10 of 52
2. Engineering will prepare all bids for public works projects. All contracts will be signed by the City Manager; contract amounts over the Purchasing Authority Authorization Limit of $40,600 must be approved by the City Council.
Departmental responsibility - It is the responsibility of each Department to:
1. Procure the needed goods and services at the least expense, while meeting minimum quality standards, in accordance with the purchasing ordinance and administrative policy;
2. Submit to the Purchasing Authority, City Controller, requisitions for the supplies, materials and equipment, and nonprofessional services as required for their operations that are within the limits of funds appropriated in the approved budget; a. The Purchasing Authority, City Controller, after reviewing any such requisition, may question its propriety and may require from the head of the requesting Department a justification of the quantity or quality requisitioned;
3. Obtain approval for all technology, computer related item, including software from the IT Manager, prior to submission of request form to Finance for purchase of item. Departments may not purchase technology, or computer related items, including software without prior approval;
4. Supervise the inspection of all goods and services purchases to conform to specifications. (NMC 3.16.080);
5. Maintain viable Bidders’ lists; solicit vendors in order to purchase or contract for goods and services;
6. Inform the Finance Department of all formal bids, including public works projects; upon informing the Finance Department of a formal bid, the Finance Department shall issue a bid number for the requested bid;
7. When ordering online with Amazon the City of Norwalk Business Amazon account must be used.
It is the responsibility of the Department accepting a grant to ensure compliance with grant procurement provisions, as federal or other grant programs may impose more stringent requirements than those established by the NMC.
Authorization limits – (NMC 3.16.060)
1.Purchasing Authority Authorization Limit established by NMC is $40,600.
Effective July 1, 2025 it will be adjusted annually by the same amount as the March Consumer Price Index for the Los Angeles-Long Beach-Anaheim area.
Limit amount does not include sales and use taxes or shipping charges.
Resolution No. 25-24 Page 11 of 52
2. Expenditure of City funds for $9,000 or less (sales and use taxes or shipping charges not included) in any one transaction or term agreement, for which there are appropriated funds in the City Council-approved budget do not require a purchase order.
3. The Purchasing Authority, City Controller, may approve and authorize all contracts and purchases involving an expenditure of City funds up to the Purchasing Authority Authorization Limit, $40,600, in any one transaction or term agreement.
4. All contracts and purchases over the Purchasing Authority Authorization Limit of $40,600 shall be approved by the City Council.
Availability of funds – NMC 3.16.170
1. No notice of award of contract shall be issued, no contract shall be signed, and no purchase order shall be issued, until the Finance Director or designee shall verify that the unexpended balance of appropriations concerned is sufficient to defray the amount of such contract or purchase order.
Unlawful purchases – NMC 3.16.180
1. If any purchase of supplies, materials or equipment, or nonprofessional services, is contrary to the provisions of the NMC Chapter 3.16, such purchase shall be void and of no effect, unless thereafter ratified by the person or body required by this chapter to approve such purchase.
2. No Department shall split its requirements for supplies, materials or equipment, or nonprofessional services into smaller estimated amounts in order to evade any of the provisions of the NMC Section 3.16.
3. Purchases of supplies, materials or equipment, or nonprofessional services for the private use of any official or employee of the City are prohibited.
General Policy
General Purchases
Purchase of all supplies, materials and equipment, and nonprofessional services (NMC Chapter 3.16), and professional services (NMC Chapter 3.21) will be made pursuant to the following guidelines.
1. Over-the-Counter
Purchases for less than $9,000 (exclusive of sales and use taxes) may be authorized by the Department Head. Although no specific purchasing requirements are established for this level of purchase, competitive bidding should be used whenever practical.
Resolution No. 25-24 Page 12 of 52
2. Informal Bidding/Open Market
Purchases, with an estimated value over $9,000 and up to the Purchasing Authority Authorization Limit of $40,600 (exclusive of sales and use taxes) may be made in the open market through the City’s online bidding platform. a. Wherever possible, open market purchases must be based on at least three (3) informal bids, and must be awarded to the lowest responsible bidder. If the lowest quote is not selected, the Purchasing Authority or designee shall document in writing the basis for such election NMC Section 3.20.010. b. Informal bids must be conducted through the City’s online bidding platform. c. The Finance Department must view bids from prospective vendors prior to purchase.
3. Formal Bid
Purchases with an estimated value greater than Purchasing Authority Authorization Limit of $40,600 (excluding sales and use taxes) must be obtained by the Formal Bid Procedure pursuant to NMC Section 3.20.020.
a. The City Council approval is required when value is higher than the Purchasing Authority Authorization Limit.
b. Formal bids must be conducted through the City’s online bidding platform.
Bidding – Exemptions – NMC 3.16.070
The following are exemptions to the bidding requirements:
1. The estimated cost of the supplies, materials and equipment, or nonprofessional services is $9,000 or less, exclusive of sales and use taxes due thereon.
2. The Purchasing Authority, City Controller, determines, that the supplies, materials and equipment, and nonprofessional services are obtainable only from a single or sole source, and therefore the purchase of such supplies, materials or equipment is not adaptable to competitive bidding examples include:
a. Unique Goods or Single Source Supplier: Purchases for a unique item, with a sole (single) supplier. In order for an item to be recognized as “unique goods”, there must be no equivalent product available. The unique status must be based on material differences in the function and usefulness of the product.
When the product or service required, based on its unique character, is only available through a single or sole source manufacturer, a negotiated purchase may be made from that sole source without formal competitive bidding. b. Trade Name Item Matching Existing Items: Purchases of brand name items available through a sole source where the brand name item is necessary due Resolution No. 25-24 Page 13 of 52
to the project goods being designed to match other goods already in use or already purchased or in the course of completion of a City project. c. Purchase of Unique Component or Replacement Part: Purchases of a component or replacement part for a product that is already in use, and for which there is no adequate substitute.
3. Purchase qualifies as an exemption under Joint Powers, Cooperative Purchasing programs utilizing purchasing agreements maintained by the county, state, or other public agencies,
4. Supplies, materials and equipment or nonprofessional services that are necessary to repair, maintain or improve the City’s utilization of supplies, material and equipment, which is a component part of the existing system.
5. An emergency exists, as determined by the City Manager, and ratified by the City Council in accordance with NMC Section 2.20.060(A), which requires the immediate purchase of the supplies, materials and equipment, or nonprofessional services.
6. An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchasing procedure would cause an undue delay in procurement of the needed item.
7. The Purchasing Authority determines that the best interests of the City would be served by purchasing or selling the supplies, materials or equipment without observing the procedure required by NMC section 3.16.010 or 3.16.020. a. Whenever the City Council approves the purchase of supplies, materials or equipment as provided in this section, the City Council may require that the Purchasing Authority solicit informal bids under such conditions and limitations as the City Council may impose.
b. Such bids shall be maintained, as a matter of public record, for a period of thirty (30) calendar days after the bids submittal or after the purchase is made, whichever is later.
Civil defense and disaster - the provisions of this chapter shall apply to the purchase, storage and disposal of commodities required for civil defense and disaster purposes only to the extent consistent Civil Defense and Disaster Plan of the City in the event of any emergency encompassed by such chapter.
8. Grants - any contract which is paid with grant monies shall strictly adhere to those purchasing provisions set forth in the applicable grant agreement and pursuant to any applicable state or federal law or regulation.
9. An emergency exists which requires the immediate purchase of supplies, materials, or equipment.
Resolution No. 25-24 Page 14 of 52
Local Vendor Preference
In the tabulation of bids by the City to ascertain the lowest responsible bidder, the Purchasing, as to each local vendor, tabulate that local vendors' bid as if it were 5% below the figure actually set forth in the bid. The Local Vendor Preference must be utilized solely for the purpose of determining the lowest responsible bidder, and must not have the effect of altering the bid of any such local vendor. (NMC 3.20.030) Purchase Orders
Purchases of supplies, materials and equipment or nonprofessional services must be made only by purchase order except for the following:
1. The estimated cost of the supplies, materials and equipment, and nonprofessional services is $9,000 or less, exclusive of sales and use taxes due;
2. In case of emergency, impractically or under procedures established by the Purchasing Authority. (NMC 3.16.160);
3. Onetime/Annual expense - onetime payment in full for supplies, materials and equipment or nonprofessional services that have been processed through the Informal or Formal Bid process may be paid using a Request Form (Exhibit A-1).
This Request Form must be approved by the Purchasing Authority or designee.
4. Purchases that by their nature do not require the use of the Purchase Order system. These would include:
•Utilities - water, electric power, natural gas, and telephone/data Advertisements and Notices.
•Courier/Delivery/Messenger Emergency Fuel Purchases Insurance Claims and Premiums Medical Payments (Physicians, lab)
Membership Dues.
•Court Fee.
•Payments to Other Governmental Units Petty Cash Replenishment. •Property Rentals.
•Real Property/Easement Acquisition Subscriptions.
•Trade Circulars or Books Travel Expense/Advances.
Insurance Requirements
All services provided on City property will be required to have:
Fully executed agreement or Standard Terms and Conditions for Purchases of Goods and Services (Exhibit A-2) on file with City Clerk. •Insurance documentation, as required in “Insurance Requirements for Informal Resolution No. 25-24 Page 15 of 52
Bid Process and Purchase Order Vendors Providing Nonprofessional Services”, will be on file and verified by the City Clerk.
Exceptions to the above insurance requirements are:
•Services as approved in writing by the Risk Manager,
•Mail and package delivery services.
All professional services will be required to have:
Fully executed professional Services Agreement on file with City Clerk •Insurance documentation, as required in the professional services agreement, will be on file and verified by the City Clerk.
Informal Bid (NMC 3.20.010)
For all purchases in excess of $9,000 and up to Purchasing Authority’s Authorization Limit of $40,600, at least three price quotations are needed, and the purchase awarded to the lowest responsive and responsible bidder. Informal bids must be solicited via the City’s online bidding platform.
Informal bids will be assigned a number by the department conducting the solicitation in the following format: FY- Department - Number. For example, if the Finance department is soliciting its first informal bid for the fiscal year, the solicitation number would be: 25- 1501-001.
Price quotations received outside of the City’s online bidding platform will not be accepted until such time as the solicitation is conducted using the City’s online bidding platform.
In determining vendors to be contacted for the submission of bids, the last vendor used by the City for the same or similar goods or services should be contacted to place a bid, and when feasible at least one local vendor contacted if the goods and services are available locally.
Bids must be solicited from prospective bidders through the City’s online bidding platform.
Prices quoted by all vendors will be posted publicly on the City’s online bidding platform following the bid deadline.
When the bid is awarded, the informal bid becomes public record and open for inspection.
Awards will be made to the lowest responsible bidder, or best bid. Departments are required to notify the Finance Department when the selection is made in order to update the solicitation status on the City’s online bidding platform.
In the event there are less than three responsive bidders that can quote on a requirement, the above guidelines will be followed.
In the absence of an agreement for nonprofessional services, a fully executed Standard Terms and Conditions for Purchases of Goods and Services (Exhibit A-2) will be on file with the City Clerk.
Resolution No. 25-24 Page 16 of 52
Informal bids may be used for purchases made within 12 months of bid date.
Preparation of the Informal Bid Quotation Work Sheet
A request for quote form must be used and uploaded to the City’s online bidding platform in soliciting bids from prospective vendors for orders greater than $9,000 and up to the Purchasing Authority’s Authorization Limit of $40,600.
Bid Award
After the bids have been solicited and documented, the purchase shall be awarded to the lowest responsive and responsible bidder. Bidders shall be advised that they will be notified only in case of successful bid.
Successful bidders will be required to provide an IRS W-9 form and insurance documentation, as required by the Risk Manager.
Formal Bid (NMC 2.20.020)
For all purchases in excess of the Purchasing Authority’s Authorization Limit of $40,600:
Formal Bids will be assigned a number through the Finance Department; completed Bid Packages must be uploaded to the City’s online bidding platform and posted by the Finance Department.
Preparation of the Bid Package - The initiating Department shall prepare the bid package (“`Bid Package”).
There are seven essential components to the Bid Package: Notice Inviting Bids, Bid Terms and Conditions, Bid Security, Performance Bond, Bidder's List, Bid Specifications, and Bid Submission form. The following is a description of each of these components:
1. Preparing Notice Inviting Bids - The notice shall be prepared by the initiating Department for the City Clerk's approval. The newspaper notice required in this section shall include:
a. A general description of the goods to be purchased or scope of services to be provided
b. State where bid forms and specifications may be secured c. Time and place for submitting bids
d. Time and place for opening bids
e. A fee set for plans and specifications
General Notice Inviting Bids - Notice Inviting Bids must be published at least 10 days before the date of bid opening on the City’s website. The Purchasing Authority, or designee, may also choose to publish the notice in a local newspaper, trade Resolution No. 25-24 Page 17 of 52
newspaper, or trade journal in order to provide notice to the largest number of prospective bidders.
Advertising - The initiating Department is required to advertise in accordance with the above-stated requirement.
Bulletin Board and City Website – Formal Bids will be advertised by a notice posted on a public bulletin board in City Hall. The City’s website can also be used to advertise the City’s solicitations.
2. Bid Terms and Conditions - This portion of the Bid Package contains a set of instructions and the general information needed to be considered by all bidders prior to bid submission. This information may include:
a. The term of the agreement
b. Tax exempt information
c. The rights of accepting or rejecting bids
d. Non-discrimination provisions
e. Standard shipping and delivery instructions
f. Payment terms
g. How to complete and submit the bid forms
h. Criteria to be used in evaluating the bid
i. Any other factors pertinent to that particular bid
3. Bid Security - The purpose of Bid Security is to ensure that: the bidders do not withdraw their bids within the period specified for acceptance; the bidders will honor the award of the bid as executed by the City; and that the bidders will provide bonds or insurance certifications required by the City. If required, Bid Security shall be indicated in the Bid Terms and Conditions, as well as in the Notice Inviting Bids. a. Bid Security may be presented in a number of acceptable forms: Cashier's check, certified check, money order, or bid bond signed by an admitted surety insurer (a surety company authorized to do business in California). b. The amount of the Bid Security should be at least 10 percent of the total bid, and may be increased, if deemed necessary by the City Attorney or Purchasing Authority (City Controller) or respective Department Director. c. The Bid Security should be returned to each unsuccessful bidder within 20 days after the successful bidder has signed the contract.
d. The Bid Security must also be returned to the successful bidder. If the successful bidder refuses or fails to execute the contract within 5 days after the notice of the award of the contract has been mailed, the successful bidder shall forfeit the Bid Security, and the City Council may award the contract to the next lowest responsible bidder.
Resolution No. 25-24 Page 18 of 52
e. Bidders who regularly do business with the City shall be permitted to file with the City Clerk an annual bid bond in an amount established by the Purchasing Authority. Such annual bonds shall be acceptable as surety in lieu of the furnishing of surety with each individual transaction. If required by law, a copy of such bond shall accompany the bid, and the annual bond shall afford sufficient security for the specific bid.
4. Performance Bond - The Purchasing Authority has authority to require a Performance Bond before entering into a contract. Such bond must be in an amount deemed reasonably necessary to protect the best interest of the City. If it is determined that a Performance Bond is to be posted prior to entering into a contract, the form and amount of the bond must be described in the public Notice Inviting Bids, as well as in the Bid Terms and Conditions. A Performance Bond must be issued by an admitted surety insurer.
a. Bidders who regularly do business with the City shall be permitted to file with the City Clerk an annual Performance Bond in an amount established by the Purchasing Authority. Such annual bonds shall be acceptable as surety in lieu of the furnishing of surety with each individual transaction; provided that, where required by law, a copy of such bond shall accompany the bid, and provided the annual bond affords sufficient security for the contract.
5. Bidder's List - This is a listing of potential vendors that are believed to possess the capability to provide the needed supplies or equipment. All vendors on the City’s Bidder’s List must register and become a certified vendor through the City’s online bidding platform.
1. Bidder's Lists developed for projects funded with Federal or State funds requiring maximum participation by minority (MBE) and women- owned (WBE) businesses shall include potential MBE and WBE qualified vendors.
The City’s Bidder’s List will be available publicly online through the City’s online bidding platform.
6. Bid Specifications - This portion of the package states the concise set of requirements to be met by a product, material, or process that will be furnished by the successful bidder. Prior to soliciting bids, appropriate Bid Specifications shall be prepared.
a. Specifications set forth the essential characteristics of the items being purchased in order to provide a common basis for bidding and to ensure that all bidders will know exactly what is required and can accurately compute bids. b. The degree to which specifications are open or unrestrictive directly affects the type and extent of the competition obtained. In addition, specifications provide a Resolution No. 25-24 Page 19 of 52
control to ensure that the quality level purchased is best suited to the item's intended use.
c. Specifications are used during the evaluation of bids to determine whether or not bids solicited are responsive to the City's proposal.
Bid Submission Form - This form is included in the Bid Package and provides a standardized format for each bidder to submit bid prices, deviations to specifications, firm name, address, and signature of the authorized representative. Depending on the number of bid items, the Bid Submission form may be formatted, together with the Bid.
General information for Formal Bids
1. Pre-Bid Conference - If the nature of the bid is particularly complex, it may be desirable to conduct a Pre-Bid Conference with the prospective bidders as a group to provide additional bid information and to answer any questions concerning the Bid Package. If a Pre-Bid Conference is to be scheduled, it shall be indicated in the Notice Inviting Bids, with the time and place of the conference provided. If a pre-bid conference is being held virtually, the link must be provided to all prospective bidders, at minimum, 24 hours before the virtual meeting.
2. Bid Opening -
a. Sealed bids shall be submitted via the City’s online bidding platform. Mailed, emailed, faxed, or hand delivered bids will not be accepted. b. Sealed bid results will be displayed publicly upon bid opening via the City’s online bidding platform.
c. The Purchasing Authority, or designee, and a representative of the initiating Department shall tabulate the bids.
d. No bids shall be accepted after the stated time specified in the Notice Inviting Bids.
3. Bid Analysis - In order to assist in performing an objective analysis of the bids received, it is desirable that specification design and performance standards be expressed numerically in terms of appropriate units. Bid Specifications shall:
a. Identify numerical requirements in a simple, specific manner. Examples: tons, yards, cubic feet, gallons, linear feet, cases, cartons. b. Be outlined allowing for competitive bidding.
Contract
Resolution No. 25-24 Page 20 of 52
This is the agreement formalizing the award of the bid, which shall be executed for all purchases made through the formal bid process as determined by the City Attorney. All contracts over the City Manager’s approval limit of $40,600 must be approved by the City Council. Successful Bidders will be required to provide an IRS W-9 form and insurance documentation.
1. City Council Award of Contract –
a. The initiating Department shall prepare the staff report to the City Council requesting approval to award the contract to the lowest responsive responsible bidder.
b. Prior to the submittal of the item to the City Clerk's office for placement on the City Council Agenda, the initiating Department shall obtain the appropriate purchasing, fiscal, and legal review of the report.
c. The City Council may award a contract or reject all bids. Rejection may be in whole or in part of a bid, if permitted by the Bid Specifications. d. If two or more bids are received for the same total amount (quality and service being equal), and if the Council finds that the public interest will be furthered, the Council may accept the bid it chooses or proceed by negotiation, if not prohibited under State law (Public Contract Code Section 20166).
2. Agreement Execution - Upon City Council award of the bid, the City Clerk shall complete the execution of the Agreement.
a. The initiating Department shall prepare a request form to initiate the purchasing process, notify the unsuccessful bidders, and if applicable return or have available for pickup all Bid Securities.
Debarment of Non-responsible bidders
The Purchasing Authority may determine and declare a bidder to be nonresponsive and/or non-responsible and may remove its name from the Bidders List; and may debar the bidder from bidding for a reasonable period, not less than one year. Such debarred bidder shall be notified in writing of such action and shall be furnished with a statement of the reasons therefore.
Protest Procedures
Right to protest during pre-bid period - Any actual or prospective bidder, offeror or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the Purchasing Authority, in writing, within ten (10) days before the bid opening or within five days after the bid opening. (NMC 3.20.160) Filing of protest – Protests shall be made in writing to Purchasing Authority, within ten Resolution No. 25-24 Page 21 of 52
(10) calendar days before the schedule bid opening or within five (5) business days after the bid opening. A protest filed after the tenth (10th) day shall not be considered. A protest lodged after award by the City Council will not be considered. Protests shall also be made, in writing, if required, to any other state or federal agency, from which the City receives grant funds. (NMC 3.20.170)
Filing of protest during post bid evaluation and post award period - Protests shall be made in writing to the Purchasing Authority, within five (5) working days of notification a proposal has been recommended for award by the City; or after a proposal has been awarded. (NMC 3.20.160)
Subject of protest - Protesters may file a protest on any phase of the solicitation or award including, but not limited to, specifications, preparation, bid solicitation, award or disclosure of information marked confidential in the bid or offer. (NMC 3.20.180) Form - The protest shall include:
•name and address of the protestor;
•appropriate identification of the procurement, and if the contract has been awarded the bid number;
•statement of reasons for the protest;
•supporting exhibits, evidence or documents to substantiate any claims unless not available within the filing time, in which case the expected availability date shall be indicated. (NMC 3.20.190)
Notification of City Attorney
The Purchasing Authority shall submit a copy of the protest to the City’s Attorney within three (3) working days of receipt of written protest. (NMC 3.20.200) Requested information – time of filing - Any additional information requested by any of the parties should be submitted within the time periods established by the requesting source in order to expedite consideration of the protest. Failure of any party to comply expeditiously with a request for information by the Purchasing Authority may result in resolution of the protest without consideration of any information, which is untimely filed pursuant to such request. (NMC 3.20.210)
Stay of procurements during protest – (NMC 3.20.220)
A. When a protest has been filed within the designated period and before an award has been made, the Purchasing Authority shall make no award of the contract until the protest has been settled and the City’s Attorney has advised to proceed with the award.
B. When a protest has been filed within the designated period after award has been made, the Purchasing Authority shall not proceed with finalizing the contract until the Resolution No. 25-24 Page 22 of 52
protest has been settled and the City’s Attorney has advised to proceed with the award.
C. The decision of the Purchasing Authority is appealable to the City Manager. If no appeal is filed within ten (10) calendar days in writing to the City Manager, the decision of the Purchasing Authority shall be final.
D. Should an appeal be received by the City Manager within the designated period, a response will be provided within five (5) working days and shall be considered final.
E. The City does reserve the right to proceed with the award of a proposal pending the resolution of a protest when it is determined by the City Manager that:
i. The items to be procured are urgently required;
ii. Delivery or performance will be unduly delayed by failure to make the award promptly; or
iii. Failure to make a prompt award will otherwise cause undue harm to the City or FTA funding requirements.
Making information on protests available
The Purchasing Authority shall provide information to any interested party only when advised by the City’s Attorney to do so. (NMC 3.20.230) Time for decisions
A decision on a protest shall be made by the Purchasing Authority as expeditiously as possible after receiving all relevant, requested information, and only when advised by the City’s Attorney to do so. (NMC 3.20.240)
Bid preparation costs
The City Attorney shall determine the extent of the costs to be incurred in connection with the solicitation, including bid preparation costs other than attorney’s fees, when a protest is sustained and the protesting bidder or offer or should have been but was not awarded the contract under the solicitation. (NMC 3.20.250)
Contracts for Professional Services (NMC Chapter 3.21)
Contracts for professional services shall be covered by the same bidding requirements as general purchases (NMC Chapter 3.16) pursuant to the following guidelines.
Definitions
Resolution No. 25-24 Page 23 of 52
Professional services means services which require special performance criteria; special or specific equipment; specific experience, knowledge, training, personal judgment, quality of work or factors other than simply obtaining the service at the lowest cost to the City.
Such services include, but are not limited to, those provided by attorneys, architects, engineers, land surveyors, construction managers, appraisers, experts, accounting firms, security firms, computer consultants/programmers and/or other specialized consultants.
Professional services do not include services rendered by City officers or employees. a. Contracts for professional services estimated to cost $9,000 or less may be awarded by the Department Head.
Experience and qualifications of professional service providers
1. In contracting for professional services, such contracts shall only be awarded to firms or persons who have demonstrated adequate levels of experience, competence, resources/equipment, staffing and other professional qualifications necessary for more than a satisfactory performance of the services required in the time period needed
2. The Department requesting the professional service must determine that a firm has an adequate level of competence,
a. Cost will not be the sole criterion in selecting the successful bidder. b. Professional services proposals will be evaluated based on a combination of factors that result in the best value to the City, including but not limited to:
▪Understanding of the work required by the City
▪Quality and responsiveness of the proposal Demonstrated competence and professional qualifications necessary for satisfactory performance of the work required by the City ▪Recent experience in successfully performing similar services ▪Proposed methodology for completing the work
▪References
▪Background and related experience of the specific individuals to be assigned to the project
Resolution No. 25-24 Page 24 of 52
▪Proposed compensation
▪If it is determined that it is in the best interest of the City for services to be provided by a specific consultant
3. No services shall commence prior to having a fully executed agreement, as well as adequate insurance and bond coverage, prior to the performance of professional services.
Conformance with bidding procedures (NMC 3.21.030)
The acquiring of professional services shall be made and accomplished in conformity with Section 3.21.050 or Section 3.21.060 except:
A. When an emergency, as determined by the Purchasing Authority with the approval of the City Manager, is deemed to require that an order be placed with the nearest available source.
B. When the professional services needed can be obtained from one source only.
C. When the City Council by a four-fifths vote determines to dispense with such bidding and other procedures required by the above-mentioned sections in every individual instance upon a finding by the City Council that it would be impractical, useless, or uneconomical in such instance to follow the procedures, and that the welfare of the public would be promoted by dispensing with the same.
D. When the amount of the professional services involved is $9,000 or less.
E. Compliance with the requirements set forth in the provisions of this chapter shall apply to all contracts awarded after the effective date of this subsection, as may be amended.
Decentralized bid solicitation – (NMC 3.21.050)
Soliciting bids for professional services is decentralized and shall be the responsibility of the Department director requesting the service, utilizing the template authorized by the City Attorney; however, the Purchasing Authority may be contacted to assist with bids requiring the formal sealed RFP process set forth in Section 3.21.060.
Contracts for up to the Purchasing Authority Authorization Limit – (NMC 3.21.060) The following procedure shall be used when seeking professional services estimated to have an annual cost of up to the Purchasing Authority Authorization Limit of Section
3.16.060.
A. In nonemergency situations, the requesting Department shall obtain a minimum Resolution No. 25-24 Page 25 of 52
of three consultants or firms.
B. Unless the Purchasing Authority’s designee authorized the entering into or the award of a specific contract for professional services, the City Manager shall approve in writing the award of all such contracts, taking into consideration the recommendation of the Department director requesting the professional services at issue.
C. The City Manager or her/his duly authorized designee is authorized to approve professional service contracts with an annual estimated cost of up to the Purchasing Authority Authorization Limit of Section 3.16.060.
Contracts of more than the Purchasing Authority Authorization Limit – NMC
3.21.070
The following procedure shall be used when seeking professional services estimated to have an annual cost of more than the Purchasing Authority Authorization Limit of Section
3.16.060.
A. In nonemergency situations, Departments shall utilize the following formal sealed request for proposal process:
1. A formal sealed RFP template provided by the Purchasing Authority shall be developed for solicitation of professional services contracts of more than the Purchasing Authority Authorization Limit of Section 3.16.060.
2. The Department shall advertise in appropriate publications and/or use the professional services listings, as available, during the solicitation process.
3. Notice inviting RFPs shall be posted upon a bulletin board at City Hall and on the City's website at least ten (10) calendar days before the due date of submission of the RFP, when reasonably possible.
4. The notice shall at least describe the general type of service needed, how the RFP minimum scope of work can be obtained, the requirement of a written sealed proposal, state the closing date, method of submission, and time for submission of the RFP.
5. Sealed request for proposals shall be submitted via the City’s online bidding platform directly.
6. Departments shall analyze proposals for compliance with RFP requirements, value of the total scope of services and make a recommendation to City Council for selection or for follow up interviews with those consultants/firms submitting proposals.
B. Contracts for professional services of more than the Purchasing Resolution No. 25-24 Page 26 of 52
Authority Authorization Limit of Section 3.16.060 require the approval of the City Council.
C. Contracts for professional services shall be on the City's standard form and shall be reviewed and approved as to form by the City Attorney.
Splitting purchases or contracts—financial interest prohibited – (NMC 3.21.080) A. No officer or employee of the City or its agencies shall split or separate a purchase/procurement of professional services for evading the dollar amount bid threshold provisions of this chapter. The acquisition of professional services should be made with a single contract covering all services to be provided.
B.No City employee who participates in the selection or approval of a professional service provider, nor any person who has supervisory responsibility for any such employee, shall have a financial interest in any professional service provided by the business entity under consideration.
PUBLIC WORKS - PROCEDURES RELATING TO COMPETITIVE BIDS NMC CHAPTER 3.17
Adoption of Uniform Public Construction Cost Accounting Act The City has elected to be subject to the Uniform Public Construction Cost Accounting Act (hereinafter referred to as the "CUPCCAA"). City contracts for Public Projects and maintenance work shall be governed by applicable state laws including the CUPCCAA, Public Contract Code Section 22000 et seq, and the California Uniform Construction Cost Accounting Commission's (hereinafter, "UCAA Commission") policies and procedures manual and cost accounting review procedures, as amended from time to time.” Definitions
Unless the context otherwise requires, the following definitions, as well as the definitions in Chapter 3.16 (Purchasing System), shall govern the construction of this chapter:
“Facility” means any plant, building, structure, ground facility, utility system, subject to the limitation found in paragraph 3 of the “Public Project” definition below, real property, streets and highways, or other public work improvement. “Level 1 projects” means Public Projects below $75,000 the monetary threshold of subdivision (a) of Section 22032 of the Public Contract Code. This project can be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order.
“Level 2 projects" means Public Projects below the $220,000 monetary threshold of subdivision (b) of Section 22032 of the Public Contract Code, may be let to contract by informal procedures as set forth in this article
Resolution No. 25-24 Page 27 of 52
"Level 3 projects" means Public Projects of $220,000 or more, the monetary threshold of subdivision (c) of Section 22032 of the Public Contract Code, except as otherwise provided in this article, be let to contract by formal bidding procedure. “Public Project” means any of the following:
a. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation 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, “public property” includes only the construction, erection, improvement or repair of dams, reservoirs, power plants and electrical transmission lines of two hundred thirty thousand (230,000) volts and higher.
“Public Project” does not include maintenance work. For purposes of this article, “maintenance work” includes all of the following:
a. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; b. Minor repainting;
c. Resurfacing of streets and highways at less than one inch; d. Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems;
e. 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 two hundred thirty thousand (230,000) volts and higher.”
“Facility” means any plant, building, structure, ground facility, utility system, subject to the limitations found in
Public Works Competitive Bid Requirements (NMC 3.17.030) This section shall govern the procedures for bidding all contracts to perform Public Projects, including any associated purchase of supplies, materials, and equipment for such projects. Projects funded by federal, state, or local grants shall be awarded pursuant to the more restrictive bidding requirements, listed above for professional Resolution No. 25-24 Page 28 of 52
services.
No Bid – (Level 1) – $75,000 or less
a. Level 1 projects may be awarded by negotiated contract or by purchase order without competitive bidding. Although no specific purchasing requirements are established for this level of purchase, competitive bidding should be used whenever practical.
Informal Bids – (Level 2) - between $75,001 and $220,000 a. For purchases between $75,001 and $220,000 for which formal competitive bids are not solicited, the informal bid procedures as outlined previously in this policy must be followed.
b. The Purchasing Authority may waive the requirement to solicit bids if performance of the Public Project is available from only one source and may solicit only two bids if performance of the Public Project is available from only two sources.
c. Oral Bids - Bids shall be orally solicited from a minimum of three sources and may be received orally. The person who solicits the bids shall prepare a memorandum to the file documenting the identity of the bidders and the amount of the bids that were obtained.
d. Written Bids.- Bid specifications shall be prepared and a notice inviting informal bids shall be solicited via the City’s online bidding platform. e. The contract shall be awarded to the lowest Responsive and Responsible Bidder only if the Purchasing Authority determines that such action is in the best interest of the City. The City may reject all bids or waive any irregularities or informalities in any bid or bidding.
Formal Bids – (Level 3) - over $220,000
a. Public Projects exceeding $220,000 will be required to have formal bids, as outlined previously. Competitive sealed bids must be solicited and the purchase awarded to the lowest Responsive and Responsible Bidder.
1. Public Works Projects Notice
a. The Notice Inviting Bids shall set a date for the opening of bids. b. The first publication or posting of the notice shall be at least 10 calendar days before the date of opening the bids.
c. Notice shall be published at least twice, not less than five days apart, in a newspaper of general circulation printed and published in the City or, if there is none, it shall be posted in at least three public places in the City that have been designated by ordinance as the places for posting public notices.
2. Public Works - Plans, specifications and working details - The City Engineer has the Resolution No. 25-24 Page 29 of 52
authority to prepare and adopt plans, specifications and working details for all informal contracts, and to develop plans, specifications and working details necessary to enable a qualified contractor to perform the work required for each informal contract awarded.
3. Davis – Bacon Act - In the event Sections 1770-1780 of the California Labor Code are repealed and not substituted with new provisions requiring the payment of the general prevailing rate of per diem wages and general prevailing rate of per diem wages for holiday and overtime work on City of Norwalk public works contracts, contractors on City of Norwalk public works projects in excess of one thousand dollars ($1,000.00) shall pay not less than the prevailing wages determined by the United States Secretary of Labor pursuant to the provisions of the Davis-Bacon Act. NMC
3.20.26 a. Notice of prevailing wage requirement must be included in Notice Inviting Bids b. Any contractor failing to pay the prevailing wage required California Labor Code shall pay the City a penalty of fifty dollars ($50.00) per day for each worker paid less than the prevailing wage and shall not be awarded a contract for a public works project by the City for a period of one year from the completion or termination of the contract
4. Opening of bids and award of contract - At the time provided in the notice inviting informal bids, the requesting department shall open all bids received via the City’s online bidding platform and shall award a contract to the lowest Responsive and Responsible Bidder based upon the recommendation of the City Engineer. If two or more bids are the same and lowest, the Purchasing Authority shall award the contract by drawing lots. If no bids are received, the City Engineer may solicit informal bids again, or perform the work by City forces, as he or she determines to be in the best interests of the City.
5. The City Council may waive the procedures required by this subsection if the City Council determines that performance of the Public Project is available only from a single source and may send a notice inviting bids to only two prospective bidders if the council determines that performance of the Public Project is available from only two sources.
6. Insurance. All contracts shall be accompanied by proof of the appropriate level of insurance at the time of execution. The insurance level required shall be in accordance with the City’s standard insurance requirements, or as otherwise approved by the Risk Manager.
EMERGENCY PURCHASES
Resolution No. 25-24 Page 30 of 52
Local Emergency
In the event of the proclamation of a State or local emergency by the Governor or the Director of Emergency Services, or the existence of a state of war emergency, the Director of Emergency Services is empowered to obtain from other sources vital supplies, equipment, and such other properties found lacking and needed for the protection of life and property and to bind the City for the fair value thereof as provided in Sections 3.16.070(C) and 3.16.150 and, if required immediately, to commandeer the same for public use.
Emergency purchases (non Public Works)
Purchases made in order to protect the health, welfare or safety of the community. a. Emergency purchases must be cleared by the Purchasing Authority and will receive a purchase order number. This number must be given to the vendor for use on the packing slip or invoice.
b. If the Finance Department is closed and an emergency purchase has to be made, the Department must inform the Finance Department as soon as possible after it happens. A purchase order number will be assigned and the vendor notified of the number.
c.The City Manager or designee shall provide a full report on the emergency and work performed at the next meeting of the City Council, at which time the City Council must confirm such action by a four-fifths vote, and further determine appropriate action such as, but not limited to, whether work should continue without the benefit of informal or formal bidding.
Emergency purchases Public Works
In emergency situations, the competitive bidding procedure does not have to be observed if requirements of Sections 20168 and 22050 of the Public Contract Code are met. To ensure that all legal requirements are satisfied, the project manager must review pertinent provisions of the Public Contract Code and consult the City Attorney. Key provisions are as follows:
a. In the case of an emergency, the City Council may pass a resolution by a four- fifths vote declaring that the public interest and necessity demand the immediate expenditure of public funds to safeguard life, health, or property. b. Upon adoption of the resolution, the Council may expend any sum required in the emergency to repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies, without giving notice for bids to let contracts. c. Before taking any action, the Council must make a finding, based on substantial Resolution No. 25-24 Page 31 of 52
evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.
d. The Council, by a four-fifths vote, may delegate, by resolution or ordinance, to the City Manager, City Engineer, or other non-elected officer, the authority to order any action.
e. If a person with authority orders any action, that person must report to the Council, at its next meeting, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.
f. If the Council orders any action, it must review the emergency action at its next regularly scheduled meeting and at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action.
g. If a person with authority orders any action, the Council must initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless a person with authority has terminated that action prior to the Council reviewing the emergency action and making a determination. h. When the Council reviews the emergency action, it must terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.
APPROVAL AND EXECUTION OF CONTRACTS – (NMC Chapter 3.42.) Signatory authority to bind the City in a contract
a. The City Manager is the only signatory authorized to bind the City on a contract. b. Any contract signed by an officer or employee of the City without a proper grant or delegation of signatory authority is void.
Execution without prior City Council approval
a. Maintenance and professional service contracts may be approved and executed by the City Manager without prior City Council approval if the contract has already been funded in the budget approved by the City Council, or the contract is necessary due to an emergency in accordance with Section
3.16.070.
Resolution No. 25-24 Page 32 of 52
b. The City Manager may execute any contract when the City Council adopts a resolution or approves a minute order authorizing the City Manager to execute the specific contract.
The City Manager shall provide written notification on a semiannual basis to the City Council of all contracts approved pursuant to this section.
SUBMISSION RESTRICTIONS
Sealed Bids
The main purpose of the sealed bid is to maintain secrecy until it is too late for any of the other bids to be modified. The City Clerk will not accept sealed bids by fax, hand- delivery, mail or Email.
Signature
The only signature acceptable on a sealed bid is an original signature. When required by the solicitation documents, wet signatures, along with notary documents, must be submitted to the City Clerk’s office by the solicitation deadline. No faxed or emailed signatures will be accepted in lieu of an original signature.
Confidentiality
Documents transmitted by fax or Email are subject to interception and to intentional or unintentional disclosure to unauthorized individuals. Confidential information could be compromised as a result.
SURPLUS EQUIPMENT & VEHICLES (NMC 3.16.100)
The Finance Department oversees the disposition of all City property. All requests for disposal or transfer of surplus equipment or vehicles will be directed to the Finance Department.
1. The Purchasing Authority will be provided an itemized list and a written estimate of the value of any surplus items not usable by any City Department, except those items with an estimated value of five hundred dollars ($500.00) or less need not be valued individually.
2. Subsequent to a finding by the Purchasing Authority that such items are no longer usable by the City, the items will be disposed of.
3. The disposal of such items shall be accomplished by sale in accordance with Section 3.20.010 or 3.20.020, by auction, or by other means as may be determined appropriate.
4. In addition, with the prior approval of the Purchasing Authority, the City may donate such items to any nonprofit organization or governmental entity providing services to the City or its residents.
Resolution No. 25-24 Page 33 of 52
5. The declaration as surplus, and approval for sale or other disposition of surplus materials, equipment and vehicles will be controlled by specific levels of authority and will follow specific guidelines.
6. Transfer of surplus equipment and vehicles between Departments will be made only with the approval of the two Departments involved in transfer.
Resolution No. 25-24 Page 34 of 52
SUSTAINABLE PURCHASING POLICY & PROCEDURES
The purpose of the Sustainable Purchasing Policy is to implement the City’s goals of reducing greenhouse gas emissions and impacts on climate change, and generally encouraging the City’s use of environmentally friendly and sustainably produced products and services. Unless otherwise stated, the policies set forth in this section are aspirational and should be adhered to whenever commercially reasonable. All definitions included in this Section, unless otherwise provided for herein, shall have the definitions as provided for under Section 8.50.030 of the Norwalk Municipal Code.
Life Cycle and Recyclability
A. Use life cycle cost analysis to assist in selecting a product or service. The City should also consider the sustainability, circularity or recyclability of a product, and the percentage of recyclable content of the product in its analysis.
Carbon Emissions and Shipping
A. Orders should be combined into as few shipments as possible to reduce emissions and waste from packaging and consider local City distribution points.
B. Personnel should try to avoid shipping by air freight whenever possible.
C. If available, orders should be placed with companies or delivery and distribution services that utilize electric, hybrid, or other low-emission delivery vehicles when practicable.
D. Unless expressly prohibited for use in certain vehicles, including but not limited to any specifications required by the manufacturer, the purchase of lubricating oil and industrial oil from the seller whose oil product contains the greater percentage of recycled oil, if the availability, fitness, quality, and price of the recycled oil product is otherwise equal to, or better than, virgin oil products, in accordance with California Public Contract Code 10409.
Water Conservation
A. When procuring products or services related to landscaping or other areas where water conservation measures could be implemented, personnel should consider the Landscape Standards and the Water Efficient Landscape Ordinance under NMC Section 17.03, Art. I.
Toxicity
A. When purchasing products such as cleaning solutions, pesticides, and herbicides, purchases should attempt to purchase fewer and less toxic products whenever possible.
B. Avoid the purchase of products containing persistent, bioaccumulative, or toxic chemicals that do not degrade or may accumulate within the human body, whenever practicable.
Energy Efficiency, Green Energy, Green Building
A. Purchases of appliances should include energy-conserving and/or ENERGY STAR certified products whenever possible.
B. Purchases related to lighting, generators or other products used in City facilities should consider energy saving lightbulbs, clean emissions generators or other Resolution No. 25-24 Page 35 of 52
equipment, and any other measure to promote energy efficiency and conservation.
C. When building or retrofitting City facility, practical consideration should be given to LEED Green building standards and best practices where such practices can be reasonably utilized.
Waste Reduction
A. When purchasing products, personnel should consider efficient ways in which the City can reduce the overall amount of waste produced, and engage in efforts to promote waste reduction in general
Recovered Organic Waste Product Procurement
1. Procurement Target
A. City will annually procure for use or giveaway a quantity of Recovered Organic Waste Products that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target
B. To be eligible to meet the Annual Recovered Organic Waste Product Procurement Target, products that may be procured include the following (provided that each product meets the criteria included in their respective definition in SB 1383):
1. SB 1383 eligible Compost.
2. SB 1383 Eligible Mulch.
2. Requirements for City Departments
A. Compost and SB 1383 Eligible Mulch procurement. Divisions and departments responsible for landscaping maintenance, renovation, or construction shall:
1. Use Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste, as defined in SB 1383, for landscaping maintenance, renovation, or construction, as practicable, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
2. When City uses Compost and SB 1383 Eligible Mulch and the applications are subject to the City’s Water Efficient Landscaping Ordinance (WELO) under Norwalk Municipal Code Section 17.03.020, the application shall comply with the more stringent of the following provisions, (i) the City’s WELO, or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s Model Water Efficient Landscape Ordinance, Title 23, Division 2, Chapter 2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following:
a. For all mulch that is land applied, procure SB 1383 Eligible Mulch Resolution No. 25-24 Page 36 of 52
that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
3. Keep records, including invoices or proof of Recovered Organic Waste Product procurement (either through purchase or acquisition), and submit records to the City’s Recycling Coordinator on a schedule to be determined by the City’s Recycling Coordinator.
Records shall include:
a. General procurement records, including:
(i) General description of how and where the product was used and applied, if applicable;
(ii) The name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured;
(iii) Type of product;
(iv) Quantity of each product; and,
(v) Invoice or other record demonstrating purchase or
procurement.
b.For Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of the Compost and SB 1383 Eligible Mulch provided to residents. Records shall be maintained and submitted to the City’s Recycling Coordinator in accordance with the requirements specified in Subsection 2.A.3 of this Section.
c. For procurement of SB 1383 Eligible Mulch, maintain an updated copy of the ordinance or enforceable mechanism(s) requiring that the mulch procured by the City or Direct Service Provider meets the land application standards specified in 14 CCR Section 18993.1, as it may be amended from time to time.
4. When Procurement of Recovered Organic Waste Products occurs through a Direct Service Provider, enter into a written contract or agreement or execute a purchase order with enforceable provisions that includes: (i) definitions and specifications for SB 1383 Eligible Mulch, Compost, Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g., termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements.
3. Requirements for Direct Service Providers
A. Direct Service Providers of landscaping maintenance, renovation, and construction shall:
Resolution No. 25-24 Page 37 of 52
1. Use Compost and SB 1383 Eligible Mulch, as practicable, produced from recovered Organic Waste, as defined in SB 1383, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application shall comply with 14 CCR, Division 7, Chapter 12, Article 12 and must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
2. If Direct Service Provider is subject to City’s WELO pursuant to Norwalk Municipal Code Section 17.03.020, comply with one of the following, whichever is more stringent: (i) the locally-adopted WELO that is more stringent than the State’s MWELO, or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s MWELO, Title 23, Division 2, Chapter 2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following:
a. For all mulch that is land applied, procure SB 1383 Eligible Mulch that meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3).
3. Keep and provide records of Procurement of Recovered Organic Waste Products (either through purchase or acquisition) to City’s Recycling Coordinator, on a schedule to be determined by City’s Recycling Coordinator.
Information to be provided shall include:
a. General description of how and where the product was used and if applicable, applied;
b. The name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured;
c. Type of product;
d. Quantity of each product; and,
e. Invoice or other record demonstrating purchase or procurement.
B. Direct Service Provider of Organic Waste collection services shall:
1. Provide a specified quantity of Compost or SB 1383 Eligible Mulch to City and its customers via periodic “giveaways” if required in a franchise agreement or other agreement.
2. Keep and provide records to City including the following:
a. Dates provided
b. The name, physical location and contact information for each entity, Resolution No. 25-24 Page 38 of 52
operation or facility from whom the Recovered Organic Waste Products were procured;
c. Type of product;
d. Quantity provided; and,
e. Invoice or other record or documentation demonstrating purchase, procurement, or transfer of material to giveaway location.
Purchase of Paper Products
CalRecycle regulations, as part of the State’s efforts to reduce greenhouse gas emissions under SB 1383, have been included in the Norwalk Municipal Code under Section
8.50.100. The regulations require that:
A. City departments, and direct service providers to the City, as applicable, must comply with the City’s recovered organic waste product procurement policy and recycled-content paper procurement policy.
B. All vendors providing paper products and printing, and writing paper shall:
1. If fitness and quality are equal, provide recycled-content paper products and recycled-content printing and writing paper that consists of at least thirty (30) percent, by fiber weight, postconsumer fiber instead of non- recycled products whenever recycled paper products and printing and writing paper are available at the same or lesser total cost than non- recycled items.
2. Provide paper products and printing and writing paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.
3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
4. Certify in writing, on invoices or receipts provided, that the paper products and printing and writing paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12 (2013).
5. Provide records to the City’s Recycling Coordinator, in accordance with the City’s recycled-content paper procurement policy(ies) of all paper products and printing and writing paper purchases within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by any division or department or employee of the City. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in subsections (B)(3) and (B)(4) of this section for recycled-content Resolution No. 25-24 Page 39 of 52
purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non- recycled content paper products or printing and writing papers are provided, include a description of why recycled-content paper products or printing and writing papers were not provided.
Requirements for Vendors
A. All vendors that provide paper products (including janitorial paper products) and printing and writing paper to City shall:
1. Provide recycled-content paper products and recycled-content printing and writing paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non- recycled item, and available at equal or lesser price.
2. Only provide paper products and printing and writing paper that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the paper products and printing and writing paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the paper products, printing and writing paper or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
4. Certify in writing, under penalty of perjury, that the paper products and printing and writing paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).
5. Provide records to the City’s Recycling Coordinator of all paper products and printing and writing paper purchased from the vendor on a schedule to be determined by the City’s Recycling Coordinator (both recycled- content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Subsections A(3) & (4) of this Section for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled-content paper products and/or non-recycled-content printing and writing paper are provided, include a description of why recycled-content paper products and/or recycled-content printing and writing paper were not provided.
B. All vendors providing printing services to the City via a printing contract or written agreement, shall use printing and writing paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209.
Resolution No. 25-24 Page 40 of 52
Recordkeeping Responsibilities
A. The Public Services Department will be the responsible department and will select an employee to act as the City’s Recycling Coordinator that will be responsible for obtaining records pertaining to procurement of Recovered Organic Waste Products and recycled-content paper products and recycled-content printing and writing paper.
B. The City’s Recycling Coordinator will do the following to track procurement of Recovered Organic Waste Products, recycled-content paper products, and recycled-content printing and writing paper:
1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of printing and writing paper and paper products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring paper products and printing and writing paper (whether or not they contain recycled content) and/or from the vendors providing printing and writing paper and paper products. These records must be kept as part of City’s documentation of its compliance with 14 CCR Section 18993.3.
2. Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments and divisions procuring Recovered Organic Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the City to develop evidence of City meeting its Annual Recovered Organic Waste Product Procurement Target. These records must be kept as part of the Jurisdiction’s documentation of its compliance with 14 CCR Section 18993.1.
3. Collect, collate, and maintain documentation submitted by the City, Direct Service Providers, and/or vendors, including the information reported to the City’s Recycling Coordinator in accordance with the provisions of this policy.
4. Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recovered Organic Waste Products, recycled-content paper products, and recycled-content printing and writing paper, consistent with the recordkeeping requirements contained in 14 CCR Section 18993.2 for the Annual Recovered Organic Waste Product Procurement Target and 14 CCR Section 18993.4 for recycled-content paper products and recycled- content printing and writing paper procurement. This report shall be made available to the City’s responsible entity for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements) pursuant to 14 CCR Division 7, Chapter 12, Article 13. The procurement report shall also be shared with Council, Board of Directors, or Board of Supervisors or other regulating body annually as evidence of implementing this Policy.
Resolution No. 25-24 Page 41 of 52
Resolution No. 25-24 Page 42 of 52
CITY OF NORWALK PURCHASING CARD PROGRAM POLICY, PROCEDURES,
AND CARDHOLDER INSTRUCTIONS
BACKGROUND
The City uses a variety of methods to procure goods and services, but relies to a large extent on the standard purchase order process - an essential financial control which works very well for large purchases, but not as well for day-to-day needs.
To facilitate these small dollar day-to-day purchases, the City of Norwalk has entered into a purchasing card agreement with US Bank. The City’s program is based upon the State of California’s “Cal-Card” Purchasing Card Program. The purchasing card program is designed to provide a fast, safe, and cost-effective purchasing method. It reduces the need for purchase orders and increases the documentation and tracking of purchases while encouraging more vendors to trade with the City.
Purchasing cards are assigned to selected employees who need to purchase supplies and services in the course of their duties. A number of unique controls have been developed for this program, controls that do not exist for traditional credit cards. These controls ensure that the purchasing card can be used only for specific purposes and within specific dollar limits. Cardholders are required to certify each purchase and a City official verifies the appropriateness of each purchase.
PURPOSE
The purpose of this document is to establish guidelines for the issuance and use of purchasing cards and to accomplish the following:
1. To improve efficiency by reducing the need for small dollar purchase orders.
2. To establish appropriate internal controls.
3. To ensure that all purchases made with the cards conform to the City's purchasing ordinances and policies.
4. To ensure that the City bears no legal liability from inappropriate use of purchasing cards.
GENERAL INFORMATION and DEFINITIONS
The City’s purchasing card program conforms to and operates jointly with the bank’s purchasing card program. The responsibilities of the two entities and the responsibilities of the cardholders are outlined below.
1. Bank - The Bank issues the purchasing cards, monitors the system to verify that purchases fall within parameters established by the City, and provides monthly billing reports and other billing information as needed.
2. The Purchasing Card - The purchasing card contains the individual employee's name, the City's name, the card account number, and an expiration date.
3. Purchasing Agent - The Purchasing Agent has overall responsibility for the program. He or she is the overall program administrator and bank liaison, Resolution No. 25-24 Page 43 of 52
responsible for accumulating, reporting, and coordinating all information to the participants, and to the City Council.
4. Finance Department Staff - The Finance Staff verifies that each cardholder submits appropriate documentation including authorization of Approving Official in a timely manner. Account codes are reviewed for accuracy and monthly statements are paid.
5. Approving Official - The Approving Official is responsible for reviewing the charges made by employees within his/her department or unit to ensure that all purchases made by cardholders in his/her area are appropriate, comply with applicable policies, and are properly documented. Ultimately, the City Manager, Department Directors and Division Managers are deemed Responsible Officials for the purposes of this program.
6. Cardholder - The cardholder is the employee whose name is imprinted on the card.
He or she is responsible for ensuring the card is used appropriately.
CONTROLS
A number of unique controls have been developed for this program that do not exist for traditional credit cards.
1. The purchasing card will have both the employee’s name and the City of Norwalk’s name imprinted on it.
2. Cardholder Only - No one but the cardholder may use the card.
3. Special Design – The card has been designed to avoid confusing it with the cardholder’s personal credit card. In all other respects, it is considered a regular credit card.
4. Specific Purposes and Amounts – Guidelines have been established to ensure that the purchasing card can be used only for specific purposes and within specific dollar limits.
5. Certification - Cardholders are required to review the monthly statements and certify each purchase as proper and appropriate.
6. Supervisory Verification – The Approving Official for the cardholder verifies the appropriateness of each purchase.
7. Management Oversight - The Purchasing Agent is responsible for the overall administration of the City’s purchasing card program. However, the Approving Official, as well as Department Directors performs key oversight and supervisory functions.
DISCIPLINE
1. Any employee who uses the card in an improper or illegal manner is subject to discipline up to and including termination.
2. Any employee who uses the card in violation of a law may be criminally prosecuted.
Resolution No. 25-24 Page 44 of 52
CARDHOLDER SPENDING LIMITS
Spending limits may vary, depending upon the duties and types of purchases required of the employee.
1. Individual Card Limits – Single purchase limits and monthly purchase limits have been established. Each time a cardholder uses his or her card to make a purchase, these limits are automatically checked. Authorization is denied if the purchase amount exceeds the limits.
2. General Limits - the City's limits for purchasing cards are as follows:
a. Single Purchase Limit: $1,000
b. 30-Day Total Limit: $9,000
3. Limits - A cardholder’s purchasing limits will be increased or lowered at the direction of the Approving Official, Department Director or City Manager.
4. Cancellation - A card will be cancelled at the direction of the Approving Official, Department Director or City Manager.
CARD RESTRICTIONS
1. Mixed Items - A single purchase may be comprised of many items, but the total cannot exceed the authorized single invoice limit allowed.
2. Back Orders - All items purchased over-the-counter with a purchasing card must be immediately available. No back ordering is allowed.
3. Cash Advances – Cash advances are NOT permitted, whether through bank tellers, teller machines, or any other method.
4. Personal Items – The purchase of personal items is NOT allowed.
5. Services or Labor of any type – All services or labor requires the prior approval of the Purchasing Agent to ensure that City insurance requirements are followed.
6. Uniform – Any and all uniform-related purchases are not allowed on a City Cal- Card. These purchases should be paid as part of regular warrant payments through accounts payable.
7. Software/Computer Equipment – No purchases of software, reoccurring charges for online services, or computer equipment/accessories are allowed on a City Cal- Card. Such charges should be paid as part of regular warrant payments through accounts payable, or made by the Finance Department on behalf of the requesting department.
8. Fixed or Inventory Controlled Assets – Purchase of a fixed or inventory controlled assets requires the prior approval of the Purchasing Agent if over $500.
Resolution No. 25-24 Page 45 of 52
9. Travel – The purchase of airfare, registration costs, and lodging only are permitted.
Parking/shuttle/transportation network company expenses are allowable if cash payment is not accepted. These travel expenses must be reported on page 2 of the Travel expense claim form. All other travel-related expenses are not allowed.
10.Orders placed online through Amazon must use the City’s Amazon Business account – see - Procedures for Ordering Goods through Amazon for details.
11. Alcoholic Beverages – No purchase of alcoholic beverages is allowed.
12. Food – The purchase of food on a City Cal-Card is not permitted unless it is made to support a City program/event. When such purchases are made with a Cal-Card, a Cal-Card Confirmation Form must be completed and provided to the Finance Department.
The purchase of food on a City Cal-Card while traveling is strictly prohibited and may result in the revoking of a Cal-Card.
13.Fuel/Electric Charging – Purchases of gasoline and/or electric charging for both City and personal vehicles is not allowed.
14.Gift Cards/Employee Recognition Items – The purchase of gift cards for employee recognition and/or other incentive items on a City Cal-Card is strictly prohibited.
The aforementioned purchases must be submitted to, and approved by, the Human Resources Department. Once approved, only the Finance department is allowed to make such purchases on behalf of a requesting department.
Gift cards may be paid with City Cal-Card if they are purchased to support a City program/event for the community. When such purchases are made with a Cal- Card, a Cal-Card Confirmation Form must be completed and provided to the Finance Department.
15.Inappropriate Use Of City Funds – The purchase of any product or service normally considered to be an inappropriate use of City funds is NOT allowed.
16.Additional limitations – Any Department participating in this program may add regulations and restrictions to this list for its employees. When such regulations and restrictions are implemented, the Finance Department must be notified to support said regulations and restrictions.
EXCEPTIONS
In order to maintain controls and provide flexibility to departments as needed, the following exceptions apply:
1. Finance Authority – The Finance Department may from time to time be exempt from the aforementioned card restrictions when the need for the purchase is deemed necessary and the restriction could result in a disruption to City operations. Departments needing to make purchases that fall within the card restrictions should consult with, and make a request to, the Finance Department to determine the need and make the transaction on the department’s behalf.
No other department is exempt from such restrictions, unless it is approved by the Resolution No. 25-24 Page 46 of 52
City Manager.
2. Emergencies – Purchases made on a Cal-Card for emergencies are permissible so long as the purchase is within the transaction limits of the user. All purchases made for emergencies require a report to the City Council at the next available City Council Agenda.
ACQUIRING THE PURCHASING CARD
1. Acquiring The Purchasing Card - To start the process, send a "Request for Purchasing Card" form to the Finance Department through the department’s Approving Official. Upon receipt, the Purchasing Agent will review the request, add the employee’s name to the program, and forward a request for a card to the bank.
2. Training - It is mandatory that employees attend training on the proper use of the card and the monthly reporting of all program transactions.
3. Personal Signature/Acknowledgement - After employees have successfully completed the training program, the Finance Department will provide the card, and the employee will be required to sign an acknowledgement that they understand and agree to comply with the laws, rules and regulations governing its use.
4. Forms - Forms have been developed for use in the program. These forms are located on the shared citywide drive (W:\), in the Forms folder (Purchasing Card Program sub-folder). The following forms are included:
a. Request for City Purchase Card
b. Cardholder Statement of Questioned (Disputed) Item
c. Purchasing Card Issuance and Acknowledgement
d. Cal-Card Confirmation Form (when food, gift cards, etc. are purchased)
ACTIVATING THE CARD
Activate the card by removing the CCRV (Credit Card Receipt Verification) strip. Call the phone number and follow the prompts. Instructions are included with your card.
Cardholder must register of online access on the US bank website.
USING THE PURCHASING CARD
The purchasing card is used like any other credit card, but it does not affect the user’s personal credit rating or personal accounts. This is strictly a business card and the merchants accepting the card are engaging in City business.
1. Any Merchant – Employees may use their card at any business that accepts credit cards unless specified otherwise in this policy.
2. Credit Card Payment Slip – The payment slip should include the following information:
a. The merchant’s name, address and identification number. b. The last 4 digits of the account number, the expiration date, and the employee’s name.
c. The date and the amount of the purchase,
d. Itemized description of item(s) purchased - not all vendors will provide this information.
e. Online/telephone transaction may provide email confirmation with the information listed above.
Resolution No. 25-24 Page 47 of 52
3. Signature - The merchant will request the cardholder to sign the merchant copy of the credit card payment slip. Verify that the dollar amount is correct and that sales tax has been included.
4. Proof Of Purchase – The cardholder will be provided with the customer copy of the credit card payment slip, which should be kept in the Monthly Receipt Envelope. If the credit card payment slip does not have itemized information, obtain this information from the vendor. Cardholders will need itemized purchase receipts to verify the charges listed on the monthly statement of account.
5. Prepare for Month-End Report - After using the purchasing card, the cardholder must prepare for the required month-end reporting process. Receipt envelopes have been provided for this purpose.
6. Organization - All receipts and other documents associated with the use of the card must be placed in the envelope for reconciliation with the month-end bank statement.
7. Forward the Package - Upon verification of the charges for the month, forward the entire package to the department Approving Official for approval of payment, once approved, the package should be sent directly to the Finance Department.
8. Security – The cardholders responsibility for the proper use of a purchasing card includes, of course, the proper accounting of its use. Keep receipt envelopes in a safe, secure place.
DOCUMENTATION
1. Proof Of Purchase - Any time a purchase is made using the card, a receipt itemizing each item purchased along with the credit card payment information must be retained as proof of purchase.
2. Missing Receipts - In the event a cardholder has misplaced or is not in possession of a receipt, a memo can be submitted in lieu of receipts. The memo must state the purchase, itemizing the amount when needed, and signed by the department head. If an employee misplaces more than three receipts during a fiscal year, the Cal-card will be revoked.
3. Shipping Documents - Shipping documents will be attached to proof of purchase, if available.
BOOKKEEPING, RECONCILLIATION, AND PAYMENT PROCEDURES
INDIVDUAL CARD HOLDERS
Each month, each cardholder will have to download the bank statement from the US Bank website, verify the correctness of the charges it contains, attach the receipts, and forward the package to your Approving Official.
1. Statement of Account – Billing cycle closes each month on the 23 rd day.
Statements need to be download by each cardholder. The statement will itemize each transaction charged to your purchasing card. The following information must be provided:
Resolution No. 25-24 Page 48 of 52
a. Account Codes - Insert the account code for each transaction on the statement.
b. Documentation - Verify that there is an itemized sales receipts and packing slips (if available) for each charge listed on the statement of account. c. Any billing errors or adjustments should be noted on the statement of account.
2. Submit - The completed and verified statement and receipts must be submitted to the Approving Official, by the 26th of each month.
a. The Approving Official must sign and submit the approved statement with documentation to the Finance Department by the last day of each reporting month.
b. If the 23 rd or the last day of the month falls on either a weekend or a dark Friday, statements are due to Approving Official on the following Monday.
3. Credit Voucher - If an item is returned for credit, include the credit voucher with the statement on which the credit appears.
4. Missing Documents – If, for some reason, the cardholder does not have documentation of the transaction to send with the statement, he/she must attach a memorandum explaining why there is no supporting documentation and include a description of the item, the date of purchase, and the merchant’s name. This is not to be used as a regular process to replace missing receipts. If more than three transaction documents are missing in a fiscal year, the Cal-card will be revoked.
5. On-Leave - If an employee will not be available to sign a statement because of leave or travel, forward all sales receipts and credit vouchers to the department Approving Official. The Approving Official will sign and forward the envelope to the Finance Department. However, paperwork should be submitted prior to any leave for an extended period of time.
6. Questioned Purchase - If the department Approving Official questions a purchase made with a purchasing card, the cardholder must be able to explain the nature of the purchase.
a. Investigation - If the cardholder cannot substantiate the purchase was necessary and for official use, a department will investigate to determine improper use of the purchasing card.
b. Disciplinary Action - Any resulting disciplinary action is handled directly by a Department Director.
PAYMENT AND INVOICE PROCEDURES
1. Statement of Account - The bank will provide a summary statement of account to the Purchasing Agent and a copy to each cardholder at the end of the billing cycle.
The statement of account will have a listing of all items processed in the previous thirty days.
2. The summary statement of account will be reviewed by the Purchasing Agent and then submitted to Accounts Payable for payment, in order to maximize the amount of rebate received.
Resolution No. 25-24 Page 49 of 52
a. Questions regarding individual charges may be brought to the attention of card holders at this time.
3. Completed and verified individual cardholder statements will be returned to the Finance Department. These statements will be reviewed for completeness.
4. Cardholder Reconciliation - The cardholder reviews the statement of account for the following:
a. Errors in Billing – make notes on the bill.
b. Attach copies of all itemized receipts and credit card payment slips to his/her copy of the statement.
c. Assign budget account codes to each item.
d. Signs statement, certifying that the listed items were purchased for the City. e. Forwards the statement to the Approving Official not more than three working days from its receipt.
5. Review and Approval - The Approving Official is responsible the following:
a. Review completed statements from all cardholders assigned to them. i. If statement is not received it is his/her responsibility to contact the cardholders and have the statements completed at once.
b. Resolve any outstanding questions regarding purchases made by cardholders.
c. Approving expenses by signing account statements.
d. Forward completed statements of account with all documentation to the Finance Department within one working day after receipt from the cardholders.
6. Finance Staff will review each cardholders statement for the following:
a. Verify that each item purchased complies with the City of Norwalk purchasing ordinance or its policies and procedures.
b. Verify that sales tax was charged for items purchased- collect information for quarterly sales tax payment.
c. Check purchases for items that may require Inventory control tags.
7. Finance Staff member will post all transactions to Funding Accounting after review is complete.
Resolution No. 25-24 Page 50 of 52
APPROVAL ISSUES
No policy statement can totally define all transaction approvals. The position of Approving Official was created because the people assigned to the task have both the supervisory responsibilities and knowledge of the cardholder’s job responsibilities to understand what is and is not appropriate and to deal with issues that evolve. The Approving Official must review each cardholder's purchases and the actions of the merchant who made the sale, in order to determine if the items were for official use and are allowed to be purchased within this program. If, for any reason, the Approving Official questions a purchase, it is his/her responsibility to resolve the question with the cardholder.
1. Proof Of Return - If the Approving Official cannot be satisfied that a purchase was necessary and for official use, then the cardholder must provide a credit voucher proving that the items(s) were returned for credit.
2. Investigation – It is the responsibility of the Approving Official to resolve questions regarding possible improper use of the purchasing card. If the cardholder cannot provide such credit voucher, the Approving Official must investigate the matter.
3. Disciplinary Action – Whenever the Approving Official determines that an employee has used a purchasing card improperly, he or she will provide a written report to the Purchasing Agent explaining the situation and the conclusions he or she reached. The Purchasing Agent is responsible for notifying the Department Director and the City Manager and recommending disciplinary action for any misuse of the card.
4. Theft Or Other Crime – If it is determined that the misuse of the card involved theft or any other crime, the Purchasing Agent will report the matter to the Sheriff’s Department.
DISPUTED TRANSACTIONS
In the course of day-to-day business, purchased items are not always satisfactory and adjustments are occasionally needed. If any items purchased with the card are defective or the repair and/or service is faulty, the cardholder is responsible for resolving the problem with the merchant. If the merchant refuses to replace or correct the faulty item or to give the cardholder credit for its return, then the purchase is considered to be in dispute.
1. Statement Of Questioned Items - A disputed item should be identified on the cardholder's Statement of account. A Statement of Questioned Items form must be completed by the cardholder and the appropriate documentation must be attached. This form shall be forwarded with the statement of account through the Approving Official to the Purchasing Agent for disposition by the bank. Once the bank has disposed of the matter, the Purchasing Agent will notify the cardholder and Approving Official of the action taken.
2. Reconciliation - When a disputed charge appears on your statement, you must assign it a City budget account number, so it can be debited. Once the problem is resolved and a credit shows on your statement, assign it the same account number for credit. As long as a charge is shown on your statement with no offsetting credit, payment must be made.
Resolution No. 25-24 Page 51 of 52
3. Reversal Of Charges – Protect your right to dispute a charge. Reports of disputed items must be submitted within the 45-day period established by the bank.
4. Help – For any questions regarding the information on the form, or for any problems regarding the reversal of a transaction, please contact the Finance Department.
LOST OR STOLEN CARDS
If your card is lost or stolen, immediately notify your Approving Official, the Finance Department and the bank. In the case of a crime, such as robbery, burglary, or theft, notify the police or Sheriff’s Department in the area where the crime occurred.
1. Information To Report - Provide the following information to your Approving Official and the Purchasing Agent your complete name, card number, date reported to the police, if applicable, date and time the bank was notified, and any purchases made on the day the card was lost or stolen.
2. Approving Official Report - The Approving Official must submit a written report to the Purchasing Agent within three working days of receiving such notification. The report should state the date the loss was discovered, the location where the theft or loss occurred, if known, and any other relevant information.
3. New Card Issued - A new card is issued by the bank within five (5) business days from the time that you report the loss or theft. A new personal account number is assigned to your new card.
CHANGES
Employee status changes may require the cancellation of an existing card and the issuance of a new card.
1. New Name, Address, Department - Changes to your name, address, or Department/Division may result in the cancellation of your card. A new card may need to be issued. The cardholder is responsible for reporting the change and submitting the new application.
2. Leaving City Employment: - Your authority to use the card is automatically cancelled upon leaving City employment.
a. Final Paperwork - Submit your completed envelope and purchasing card to your.
b. Approving Official. The Approving Official is responsible for turning it in the packet and card to the Purchasing Agent.
a. Don’t Use It - If you fail to turn in your purchasing card upon leaving City employment, do not purchase with it. Any charges made after your termination date or following the last date you were authorized to make a purchase for the City will not be honored and you will be responsible for the charges.
b. Card not retrieved - If the Approving Official is not able to retrieve the card Resolution No. 25-24 Page 52 of 52
before a cardholder leaves the City, he or she must immediately notify the Purchasing Agent so they can immediately contact the bank and void the card.
INVENTORY
The Purchasing Agent may request a physical inventory of the cards at any time. The Approving Official will verify the cards and report the results to the Purchasing Agent.