City Of Palo Alto Charter Information

Section 2.30.120 Open Purchase Contracts

The $25,000.00 limit set forth above shall be increased by $5,000.00 on July 1, 1995 am by the same amount on. July lst of each fifth year thereafter.

A. An open purchase contract is a written agreement with a vendor that establishes a quoted or maximum price on any quantity or an annual requirements basis for parts, commodities, or services or combinations thereof. Commodities means electric service, natural gas service, electric and natural gas service, and all related supplemental or ancillary services.

B. Separateopen purchase contracts shall be used for the grouping of parts or commodities of a like kind, or annual maintenance, based on predetermined cumulative quantities to be used or consumed by the city within a set period of time.

C. Open purchase contracts for commodities, services, supplies or a combination thereof may be entered into for a period of up to thirty-six months, provided the term of the agreement and conditions of renewal or extension, if any, are included in the solicitation document and funds are available for the first fiscal year at the time the open purchase contract is issued. Payment and performance for succeeding fiscal periods (not to exceed twenty-four months) shall be subject to the availability and appropriation of funds by the city council.

D. Open purchase contracts with a value exceeding $25,000.00 for services, supplies or any combination thereof shall conform to the bidding requirements of Section

E. Open purchase contracts valued at less than $25,000.00 for services, supplies or any combination thereof shall conform to the open market purchase requirements of Section 2.30.110, Ord4770 1,2002, Ord4462 1(part), 1997, Ord 3927 2(part), 1989

2.30.130 Bid Procedure

A. When Advertising Required. Where the cost of services or supplies exceeds the amounts set forth in Sections 2.30.060, 2.30.070 and 2.30.120 for open market purchases, the manager of purchasing shall call for bids by posting at civic center or by advertising at least once in a daily newspaper of general circulation in the city not less than five days prior to the date set for receiving bids.

B. Bid Bond or Deposit. Unless waived by the city manager, in cases where it is determined that such waiver will not be detrimental to the interests of city, all bids, exclusive of those for standard commercial products, shall be accompanied either by cash, a certificate of deposit or certified check or draft, or a cashier’s check or draft of or on some responsible bank in the United States, in favor of and payable at sight to the city, in an amount not less than five percent of the aggregate amount of the bid. If the bidder to whom the contract is awarded, for fifteen days after the posting of such contract, or within any other time frame specified in the notice inviting bids, fails or neglects to enter into the contract and to file the required bonds, the director of administrative services shall draw the money due on such certificate of deposit or check or draft and pay the same or any cash deposited into the treasury, and under no circumstances shall it be returned to the defaulting bidder. In lieu of the foregoing, any bid may be accompanied by a surety bond in said amount furnished by a surety authorized to do surety business in the state of California, guaranteeing that said bidder will enter into the contract and file the required bonds within said period or said amount shall be forfeited. With the approval of the city manager, prospective bidders may file annual or continuous surety bonds covering all bids to be made during the period that the surety bond is in effect. Upon failure of the bidder to whom the contract is awarded to execute the contract and file the required bonds, the city council or the city manager as the case may be, may, in its discretion, award the contract to the next lowest responsible bidder, or upon failure of such bidder to execute the contract and return the appropriate bonds within the designated time, to the third lowest responsible bidder, if any there be.

C. Opening of Bids and Awards. All bids shall be sealed, identified as bids on the envelope and shall be submitted to the manager of purchasing at the place and time specified in the public notice inviting bids. Bids shall be opened by the manager of purchasing or his designee, in public, at the time and place designated in the notice inviting bids. Bids received after the specified time shall not be accepted and shall be returned to the bidder unopened. The contract shall be let to the lowest responsible bidder, as defined in this chapter, either by the city council, if the payment is for services in excess of $65,000.00, or a combination of services and supplies or capital equipment in excess of $65,000.00, exclusive of sales or use tax, or in any other cases by the city manager. The contract shall be let by the city council or the city manager on the basis described in the notice inviting sealed bids to the lowest responsible bidder, as defined in this chapter or in the city charter for those contracts governed by the city charter. At the time of award, the city council may authorize the city manager, or in contracts awarded by the city manager, the city manager may authorize a designee to negotiate and execute one or more amendments or change orders to the contract, the scope of which amendment or change order shall be within or incidental to the scope of the contract awarded, and the value of which shall be within the amount appropriated for the contract. The city council or the city manager, as the case may be, may reject any and all bids and waive any informalities or minor irregularities in the bids.

D. Disposition of Bid Bond or Deposit. All deposits and bonds shall be returned after execution of the contract by the successful bidder and deposit of the necessary bonds.

E. Approval of Faithful Performance and Labor and Materials Bonds Waiver. Faithful performance or labor and material bonds required by city specifications or contract shall be approved as to form by the city attorney. The city manager may waive the furnishing of a faithful performance bond when the manager determines that such waiver will not be detrimental to the city.

F. No Bids. If no bids are received or if no bids meeting the specifications are received, the city manager may proceed to have the services performed or the supplies purchased without further competitive bidding.

G. No Bids. If no bids are received or if no bids meeting the specifications are received, the city manager may proceed to have the services performed or the supplies purchased without further competitive bidding. Ord. 4462 1(part) 1997, Ord 3927 2(part) 1989