CITY COUNCIL AGENDA ITEM
Meeting Date: February 24, 2004
Subject/Title: Approve a Resolution amending the Purchasing Policy No.10-7
to update the credit card section to include use of the California State
CAL-Card Procurement credit card.
Submitted by: Pam Ehler, Director of Finance and Information Systems
Becky Bridgen, Purchasing Agent
Approved by: John Stevenson, City Manager
Adopt a Resolution amending the Purchasing Policy No. 10-7 to update the
credit card section to include use of the California State CAL-Card
Procurement credit card.
On March 12, 1996, the City Council approved by resolution an amendment to
the Purchasing Policy to add “Local Preference” language and clarifications
to language for sealed bids, bid rejection and the right to audit every 4
On June 8, 1999, the City Council approved by resolution an amendment to the
Purchasing Policy on the recommendation of the auditor’s report to increase
the monetary limitations from $10,000 to $25,000 before Council approval is
On March 27, 2001, the City Council approved amending the Purchasing Policy
to allow new spending limitations. This approval increased the City
Manager’s monetary limitations for budgeted goods, equipment and services
from $25,000 to $50,000, also increased the monetary limits for purchase
orders from $1,000 to $5,000, and increased the credit card limit from
$2,000 to $5,000 for city business expenditures.
On February 26, 2002, the City Council approved amending the Purchasing
Policy to increase the City’s purchases of recycled materials and recycled
products and to further comply with the state-mandated AB939 waste reduction
goals of 50% diversion.
On July 22, 2003, the City Council approved Resolution No. 2932 amending
Purchasing Policy No. 10-7 to update Fixed Asset description and dollar
The majority of the changes in the new policy are verbiage clarifications to
better define guidelines.
This policy also allows Directors to unilaterally decide which of their
employees will receive a CAL-Card, up to a limit of $5,000. Currently, only
Mid-Managers are allowed to receive credit cards.
There are several benefits of using the CAL-Card Program including no
membership fees; no administrative fees, no minimum card count, no minimum
spending amount; reduces petty cash and check requests; consolidates
invoices of low value purchases into one invoice per month; invoices due 45
days from invoice date; standard and ad hoc management reports; dispute,
fraud protection and VISA Waiver Liability; prompt payment rebate.
Per the State of California Department of General Services Procurement
Division the pilot program indicates an average savings of $24.49 per
RESOLUTION NO. _______
APPROVE A RESOLUTION AMENDING THE PURCHASING POLICY TO UPDATE THE CREDIT
CARD SECTION TO INCLUDE USE OF THE CALIFORNIA STATE CAL-CARD PROCUREMENT
WHEREAS, On March 12, 1996, the City Council approved by resolution an
amendment to the Purchasing Policy to add “Local Preference” language and
clarifications to language for sealed bids, bid rejection and the right to
audit every 4 years.
WHEREAS, On June 8, 1999, the City Council approved by resolution an
amendment to the Purchasing Policy on the recommendation of the auditor’s
report to increase the monetary limitations from $10,000 to $25,000 before
Council approval is required.
WHEREAS, On March 27, 2001, the City Council approved amending the
Purchasing Policy to allow new spending limitations. This approval increased
the City Manager’s monetary limitations for budgeted goods, equipment and
services from $25,000 to $50,000, also increased the monetary limits for
purchase orders from $1,000 to $5,000, and increased the credit card limit
from $2,000 to $5,000 for city business expenditures.
WHEREAS, On February 26, 2002, the City Council approved amending the
Purchasing Policy to increase the City’s purchases of recycled materials and
recycled products and to further comply with the state-mandated AB939 waste
reduction goals of 50% diversion.
WHEREAS, on July 22, 2003, the City Council approved Resolution No. 2932
amending Purchasing Policy No. 10-7 to update Fixed Asset description and
WHEREAS, the majority of the changes in the new policy are verbiage
clarifications to better define guidelines.
WHEREAS, this policy also allows Directors to unilaterally decide which of
their employees will receive a CAL-Card, up to a limit of $5,000. Currently,
only Mid-Managers are allowed to receive credit cards.
WHEREAS, There are several benefits of using the CAL-Card Program including
no membership fees; no administrative fees, no minimum card count, no
minimum spending amount; reduces petty cash and travel requests;
consolidates invoices of low value purchases into one invoice per month;
invoices due 45 days from invoice date; standard and ad hoc management
reports; dispute, fraud protection and VISA Waiver Liability; prompt payment
NOW, THEREFORE, BE IT RESOLVED by the City of Brentwood as follows:
Section 1. this policy also allows Directors to unilaterally decide which of
their employees will receive a CAL-Card, up to a limit of $5,000. Currently,
only Mid-Managers are allowed to receive credit cards.
Section 2. The Purchasing Policy will be amended and updated to include use
of the California State CAL-Card Procurement credit card.
PASSED, APPROVED AND ADOPTED on February 24, 2004 by the following vote:
Karen Diaz, CMC
Table of Contents
I. Centralized Purchasing 3
II. Objectives of the Purchasing Division 3
III. Ethics 4
IV. Summary of Purchasing Options 5
V. Purchasing Cycle 5
VI. Purchasing Procedures 6
A. Requisition 6
B. Verification of Need 7
C. Quotations 7
1. Items costing $5,000 to $50,000 7
2. Items costing more than $50,000 7
D. Purchase Orders 9
E. Open Purchase Orders 9
F. Blanket Purchase Orders 11
G. Other Purchasing Methods 11
1. Credit Cards 11
2. Petty Cash 12
3. Exceptions 12
4. Sole Source/Non-Competitive Negotiations 13
5. Emergency Purchases 13
6. Cooperative Purchasing Agreements 15
H. Professional Services 16
I. Service Agreements 17
J. Miscellaneous Procedures 17
Table of Contents
K. Public Projects 17
L. Monitoring Receipt of Goods or Services 17
M. Invoice Payment Procedures 18
VII. Local Preference 18
VIII. Recycled Products and Recycled Materials 19
IX. Unauthorized Purchases 20
X. Surplus Property 20
XI. Fixed Assets 21
I. CENTRALIZED PURCHASING
In accordance with the general supervision of the Finance Director, the
Purchasing Agent shall have the authority to:
Purchase or contract for goods, equipment and services required by any
department in accordance with the purchasing procedures prescribed in this
Purchase all budgeted goods, equipment and services required by the
departments in amounts or estimated amounts fifty thousand dollars ($50,000)
Purchase all budgeted goods, equipment and services required by the
departments in amounts of more than fifty thousand dollars ($50,000) with
City Council approval.
II. OBJECTIVES OF THE PURCHASING DIVISION
The overall objective of Purchasing is to maintain, at all times and under
all conditions, a continuous supply of goods and services necessary to
support the City’s operations while meeting our obligations to the public.
The Purchasing Division will meet this goal by the following means:
Seek and stimulate competition.
Develop and maintain materials standards consistent with the required
levels of quality.
Assure that all qualified and responsible suppliers have an equal
opportunity to do business with the City.
Utilize accepted public purchasing practices for conducting all purchasing
Comply, in all respects, with all applicable laws without qualification or
Conform to ethical practices in all transactions.
Resolve complaints on all purchased goods and services.
Provide leadership in the standardization of goods, equipment, service and
Make all possible attempts to reuse or recycle (i.e., yard sales or
donations to other organizations) material and equipment declared surplus or
obsolete before discarding.
Conduct all responsibilities in a manner that will inspire good business
relationships and insure the confidence of the public.
Act to procure for the City the needed quality in goods, services and
equipment at the least expense to the City. Whenever possible and practical,
recycled products and recycled materials will be purchased to demonstrate
compliance with the Waste Management Reduction Act and foster market
development for recycled products.
Encourage full and open bidding and endeavor to obtain as full and open
competition as possible on all purchases.
Prepare and recommend to the City Council rules governing the purchase of
goods, services and equipment for the City.
Keep informed of current developments in the field of purchasing, prices,
market conditions and new products.
Develop, with the approval of the City Attorney as to legal sufficiency,
standard forms, terms and conditions of invitations to bid, purchase orders
and contracts; develop and prescribe the use by agencies of other forms
required in carrying out the provisions of this chapter, and amend or
eliminate any such forms.
Supervise the inspection, with the receiving department, of goods,
services and equipment purchased, as required, to insure conformance with
specifications, when necessary.
Establish and maintain an inventory of goods and equipment purchased by
the City to avoid duplicating purchases and ensure availability of
inventoried supplies. Recommend the transfer of surplus or unused goods and
equipment between departments as needed and the sale of all goods and
equipment which cannot be used by any department or which have become
unsuitable for City use.
Maintain a bidders list, vendors catalog files and records needed for the
efficient operation of the purchasing department.
City personnel must discharge their duties impartially to assure fair
competition for City business by responsible vendors. In addition, they
shall conduct themselves in a manner that will create confidence in the
integrity of the City’s purchasing operations.
It shall be a breach of ethical standards for City personnel to accept
gifts, rebates, kickbacks, personal services, or in any way incur personal
gain from any vendor, actual or potential, doing business with the City,
except as allowed under state law.
All vendors will be treated equally and fairly at all times by all
personnel, with equal information given to each vendor who participates in
the procurement process.
IV. SUMMARY OF PURCHASING OPTIONS
Purchases up to $100 Use petty cash, credit card, open purchase order or
purchase direct and submit the receipt for reimbursement.
Purchases $101 to $5,000 (Excluding tax, shipping and handling) Use credit
card, open purchase orders or requisitions or purchase direct. Obtaining two
(2) quotes is optional Department head or designee approves invoice copy and
confirms that goods or services were received.
Purchases $5,000 to $50,000 Purchase order and/or contract required;
Requisitions submitted with bidding documentation and specifications. Three
(3) written quotes, faxes are acceptable. Professional services require City
Manager or designee approval.
Purchases more than $50,000 Purchase order and/or Contract required and must
be approved by City Council. Sealed bids submitted to City Clerk (on CIP
projects only). City Council approval required.
V. PURCHASING CYCLE
All of the City's procurements involve the following steps. The procedures
to be followed at each step are described more fully below in the Purchasing
A. Action: Determine need
Action by: The requesting department.
Determining need includes verifying that the proposed purchase complies with
the adopted City budget.
B. Action: Prepare purchase requisition
Action by: The requesting department.
The purchase requisition must include the appropriate accounting code so
that the cost can be accounted for correctly. Completed purchase
requisitions are logged in the department's requisition log, and sent to the
Purchasing Agent with quotations or other supporting documents.
C. Action: Prepare Purchase Order or Contract
Action by: The Purchasing Agent.
After the requisition is approved, the Purchasing Agent will issue a
purchase order or contract incorporating the terms of the procurement. If a
Contract, the vendor or service provider must execute the agreement, and
return a signed copy to the Purchasing Agent. Depending on the amount of the
purchase, the Purchasing Agent, Department Head or City Manager or designee
executes the Purchase Order and/or contract on behalf of the City.
D. Action: Monitor Delivery or Performance
Action by: The requesting department.
Monitoring includes confirming that the City receives the bargained-for
quantity and quality of goods or services. (For detailed information see
E. Action: Approving payment
Action by: The requesting department.
Written approval must appear on the invoice, if applicable, and must be
returned to Accounts Payable with any other documentation, such as a packing
slip, a copy of the purchase order and manifest if applicable.
VI. PURCHASING PROCEDURES
A requisition is an in-house document used to request a purchase order. The
requisition contains all information necessary to obtain goods and services.
1. Requisitions are required for all Purchase Orders.
2. The requesting department prepares the requisition using the City’s
standard requisition form and codes with the correct accounting code.
3. All requisitions must be approved in writing by the department head or
designee. The approval represents that the department has sufficient funds
budgeted to pay for the purchase.
4. Each department shall maintain a requisition log of all requisitions
issued as well as a copy of each completed requisition form.
5. When the requisition is complete, the department sends it to the
Purchasing Agent along with bidding documentation and product
specifications, where required.
6. The requisition can be used for purchases under $5,000 if no on-site
labor is required. Photocopy the completed requisition covering the words
“Purchase Requisition” and the number in the right upper corner. Write the
requisition number in the Purchase Order No. area and fax to the vendor.
When the invoice is received, Accounts Payable will know by that number
which department to send it to.
B. VERIFICATION OF NEED
Upon receipt of a properly completed requisition, the Purchasing Agent
checks the document for accuracy, completeness, and reviews the City's
inventory to determine whether the requested items are available from
surplus or in stock and meets the requesting departments requirements. If
the Purchasing Agent identifies suitable items already in the City's
possession, the requesting department will be notified and will have two
working days to inform the Purchasing Agent if it will accept the goods in
stock. If the department does not inform the Purchasing Agent within that
time that the goods in stock are unacceptable, the Purchasing Agent will
arrange for delivery of the goods in stock to the requesting department and
cancel the requisition.
1. Items costing $5,000 to $50,000 (Excluding tax, shipping and handling):
The requesting department shall obtain three (3) written quotes and attach
product specifications to the requisition with a vendor selection. Faxed
quotes are acceptable. See Sole Source, page 13.
2. Items costing more than $50,000:
a. City Council must approve all purchases before the Purchasing Agent will
issue a contract or purchase order.
b. Authorization to procure service items or goods costing more than $50,000
will be submitted to the City Council along with three (3) solicited written
quotes and a recommended vendor selection from staff. Although the price of
an item will be a significant factor in selecting a vendor, the lowest bid
does not necessarily need to be awarded the contract. However, when goods or
services are standardized or of uniform quality, the award will be given to
the lowest bid.
c. Requisitions for purchases of more than $50,000 must have supporting
documentation from the City Council meeting (staff report and resolution or
meeting minutes) at which the goods or services were approved, bidding
documentation and product specification with the requisition when submitted
to the Purchasing Agent.
d. The requesting department will solicit, receive and evaluate bids for
goods (For Capital Improvement projects, the requesting department will work
in conjunction with the Project Services Division).
(1) The requesting department will prepare a Request for Quotation or
Proposal which shall include a general description of the articles or
services to be purchased, and shall state where Requests for Quotation or
Proposal and specifications may be secured and the time and place for
opening bids, if applicable. The City will publish the Notice Inviting Bids
in a newspaper of general circulation one or more times at least ten days
before the bid opening date, or post the Notice Inviting Bids on the public
bulletin board in the City Hall at least ten days before the bid opening
date. (CIP projects only)
(2) Bids are delivered to the City Clerk, and are secured in a bid box until
the announced bid opening time. The bids are not to be received by the
individual who initiated the requisition. Bids are considered RECEIVED upon
the bid opening at the advertised time. A bid committee consisting of at
least 3 people, including representatives of the requesting department, will
evaluate the bids. Late bids shall be returned unopened. (CIP projects only)
(3) The bid committee will make a recommendation regarding the award to the
City Manager, or the City Council, whichever is required. Upon award, a
Purchase Order or contract approved by the City Manager or designee will be
issued to the successful bidder.
(4) A notice of bid rejection shall be sent to those bidders whose bids are
not selected for award.
3. The requesting department will attach a copy of all product or service
specifications to the purchase requisition when submitted to the Purchasing
Agent. The Purchasing Agent will be responsible for holding all official bid
specifications and keep such records for at least 3 years. Public works
project bids will be held by the Engineering Department.
D. PURCHASE ORDERS
1. A Purchase Order is the principal document used to obtain goods and
services for the City.
2. Purchase Orders are required for all equipment, goods or services costing
more than $5,000.
3. The Purchasing Agent will issue Purchase Orders, which are not valid
until the Purchasing Agent has signed the Purchase Order.
4. Change orders that put any Purchase Order over $50,000 will require
subsequent ratification from the City Council.
E. OPEN PURCHASE ORDER
1. Open Purchase Orders will be used to obtain less expensive routine goods
and services for repetitive, high volume, low dollar goods or services. The
Finance Director and Purchasing Agent can issue Open Purchase Orders to
vendors regularly used by the City that will allow pre-authorized personnel
to pick up or order routine goods and services.
2. The Purchasing Agent will provide the vendor with a written list of
individuals authorized to obtain goods and services through the open
3. The Purchasing Agent will keep copies of all documentation associated
with each open purchase order.
4. Issuance of the Open Purchase Order
a. At the beginning of each fiscal year each department head will submit a
requisition for each open purchase order to be issued to a regularly used
b. All requisitions requesting Open Purchase Orders should be sent to the
Purchasing Agent, who will review them for propriety, efficiency and
c. Cancellation or modification to an open purchase order will be done by a
"change order". Change orders are necessary to change authorized personnel
on an open purchase order. The Purchasing Agent will notify affected vendors
of any change orders.
5. The following information shall be listed in requisitions forms:
a. The period of time for which the open purchase order will be valid.
Normally that period of time will be for the fiscal year. Shorter periods of
time may be listed for seasonal programs.
b. The goods or services that may be obtained by authorized personnel, and
goods and services that cannot be obtained through Open Purchase Orders.
c A list of personnel who are authorized to use the Open Purchase Order.
d. The department and account numbers that will be automatically charged.
Personnel using the open purchase order need to specify which account will
be charged on the specific invoice.
6. Using Open Purchase Orders
a. Authorized personnel will identify themselves to the vendor by means of
their employee identification card or drivers license before receiving the
goods or services.
b. Authorized personnel will give the vendor the purchase order number and
department account to be charged for the order.
c. Authorized personnel will sign a bill of sale or service order itemizing
the goods or services and obtain a copy from the vendor. The bill of sale or
service order must show the Open Purchase Order number. These documents will
be forwarded to their department head or authorized designee.
d. The department head or designee will sign the copy of the service order
or bill of sale authorizing payment and forward it to Accounts Payable for
e. All vendors will be required to send the original invoice to Accounts
Payable to be matched up with the department copies for payment.
f. Any invoice having an unauthorized signature must be approved by the
department head and the Finance Department prior to payment. Vendors who
allow unauthorized use of an Open Purchase Order may not receive payment,
and the open purchase order may be canceled.
F. BLANKET PURCHASE ORDERS
1. Blanket purchase orders can be utilized for items that are used by the
City for on-going operations. Vendors agree to honor a price for a given
product for a given period of time. The City may not know specifically how
much of the product will be consumed or when it will be consumed.
2. Releases on Blanket purchase orders will be performed by the Purchasing
Agent or authorized designee.
G. OTHER PURCHASING METHODS
1. CREDIT CARDS
The City Manager will be issued a credit card with a $10,000 limit to be
used for City business expenditures only. Department Heads (with City
Manager approval), and employees (with Department Head approval) will be
issued a credit card with a limit designated by the Department Head, not to
exceed $5,000, to be used for City business expenditures only. It is the
responsibility of every individual issued a credit card to reconcile and
attach backup documentation, with the appropriate coding, to be forwarded to
the department Approving Official and who will then forward the documents to
Accounts Payable. The credit card can be used for items such as: Travel
expenses; hotel reservations; business meeting meals; training; and ordering
goods from vendors approved by the Department Head.
a. For more information on the CAL-Card Program please refer to the CAL-Card
Handbook, which will be issued along with your card after appropriate
2. PETTY CASH
a. A petty cash account will be issued to each department and the Department
head will authorize in writing a specific individual to be the custodian of
their petty cash account.
b. Petty cash will only be used when other sources of procurement are not
c. Each reimbursement must be documented with a receipt or verifiable proof
of the expenditure and have written department head or designee approval.
d. Petty cash reimbursements to an employee will not exceed $100 for any
e. Reimbursements to employees greater than $100 will be by check processed
through the normal accounts payable process on an expense report.
f. Each petty cash custodian must reconcile his or her petty cash account as
needed. Finance will audit within a six-week period.
g. A maximum travel or training reimbursement of $20 may be paid from petty
cash if the only cost associated with the training or travel is parking or
Generally, the following items do not require the use of purchase orders and
are not subject to the Purchasing Policy: refunds, memberships, dues,
subscriptions, employee reimbursements, travel reimbursements, and
pre-payments such as PG&E contract work.
Bond and Trust Account Payments
Annual Maintenance Agreements
4. SOLE SOURCE/NON-COMPETITIVE NEGOTIATIONS
It is the City's policy to encourage competition in procurements.
Non-competitive negotiations may be used for purchases of unique goods or
services that are available from only one source. The requisitioning
department is responsible for supplying the Purchasing Agent with a concise
written justification for the sole source purchase.
Purchases up to $50,000 require approval by the City Manager or designee.
Purchases more than $50,000 require City Council approval.
5. EMERGENCY PURCHASES
a. In an emergency, essential purchases may be made and services obtained
without following the City's usual procurement procedures. An emergency is a
sudden, unexpected occurrence that poses a clear and imminent danger and
requires immediate action to prevent or mitigate the loss or impairment of
life, health, property, or essential public services, as declared by the
b. If the emergency arises DURING normal business hours:
The Purchasing Agent shall confirm the declaration of the emergency with the
The Purchasing Agent shall either issue a Purchase Order and purchase the
required goods or authorize the department to do so, or commandeer goods and
services in consultation with the City Attorney.
c. If the emergency occurs AFTER normal business hours:
City employees shall obtain authorization from the highest City official
available before making purchases.
Any City employee who makes an emergency purchase after normal business
hours shall submit receipts to their department head the following workday.
d. This is the language from the public contracts code.
In order for the City to contract for construction services in an emergency
situation without following the City’s usual procedures, the City Council
must pass a resolution by a four-fifths vote declaring that the public
interest and necessity demand the immediate expenditure of public money to
safeguard life, health or property.
If no notice for bids will be given, the City Council must make a finding,
based on substantial evidence set forth in the meeting minutes, 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. The
City Council shall review the emergency action at the next scheduled meeting
and at every meeting thereafter until the emergency action is terminated,
determine, by a four fifths vote, that there is a need to continue the
emergency action. The emergency action shall be terminated at the earliest
possible date that conditions warrant so that the remainder of the emergency
action can be completed by giving notice for bids to let contracts.
e. For every emergency purchase made, the department head shall, no later
than five days (5) thereafter, submit to the Purchasing Agent a memo listing
all expenditures and supported by delivery receipts and a written
explanation of the circumstances of the emergency that justify the use of
f. The Purchasing Agent shall submit monthly to the City Council a list of
all emergency purchases of more than fifty thousand dollars ($50,000), made
during the preceding month, with an explanation of the circumstances of
each. The department head will be responsible for responding to the
Council's questions about the emergency purchase.
6. COOPERATIVE PURCHASING AGREEMENTS
a. The Purchasing Agent may purchase equipment, goods or services through
cooperative purchasing agreements of other governmental or public agencies.
Purchases through cooperative agreements may be accomplished without
soliciting competitive bids. These agreements will be used only when in the
City’s best interest.
Purchases up to $50,000 require approval by the City Manager.
Purchases more than $50,000 require City Council approval.
b. When the Purchasing Agent receives a requisition for equipment, goods or
services that are covered by a cooperative purchasing agreement, the
Purchasing Agent will inform the requesting department of the option of
using the agreement to get the best available prices. Unless the requesting
department informs the Purchasing Agent within two working days that the
equipment, goods or services covered under the cooperative purchasing
agreement are unacceptable, the Purchasing Agent will place the order under
the cooperative purchasing agreement that the Purchasing Agent determines
offers the best value.
c. The Purchasing Agent will distribute to all departments a list of the
cooperative purchasing agreements to which the City is a party, identifying
the available equipment, goods and services.
H. PROFESSIONAL SERVICES
1. Professional services do not require competitive bids. Requisitions for
professional services should have service contracts or proposal letters
attached. Professional services totaling more than $5,000 need City Manager
or designee approval.
2. Pursuant to Government Code Sections 4526 and 4529.5, selection of
professional services to be rendered by architects, landscape architects,
engineers, environmental engineers, land surveyors or construction managers
shall be made based on demonstrated competence and the qualifications
necessary for the satisfactory performance of the services required, and
fair and reasonable prices for the services.
For example, the selection of construction project management services shall
be primarily based on experience in construction project design review,
construction mobilization and supervision, bid evaluation, project
scheduling, cost-benefit analysis, claims review and negotiation and general
3. All departments will use a standard agreement acceptable to the City
Attorney for the use of any professional service.
I. SERVICE AGREEMENTS
The Purchasing Agent will keep all product warranties and service
agreements. Working copies of such warranties and agreements will be
forwarded to each respective department.
J. MISCELLANEOUS PROCEDURES
1. Staff will prepare a City Council action item before the beginning of
each fiscal year that will authorize the use of vendors for recurring
services for the upcoming fiscal year. The action item will list the vendor
and the estimated cost of goods or services for the fiscal year.
2. A contract or purchase order that has been previously approved by the
City Council for specific services does not need to be resubmitted to the
City Council unless a vendor is requesting a rate increase. Long-term
contracts approved by the City Council for a specific time frame do not need
to be resubmitted, but will be re-bid at least once every three years.
K. PUBLIC PROJECTS
Public Projects of $25,000 or more - Public projects are regulated by State
Law and Ordinance 661 adopted by the City Council on April 10, 2001.
L. MONITORING RECEIPT OF GOODS OR SERVICES
Upon receipt of the goods or services, the requesting department shall
inspect the items to determine:
if the order is in acceptable condition
if the order is complete
if the specifications were met
1. If the items are in an acceptable condition or the service rendered is
complete, the requesting department shall sign the packing slip or invoice
and forward it to Accounts Payable, with the receiving copy of the Purchase
2. If the items are not acceptable or incomplete, or if the packing slip
does not match the Purchase Order, or the services were not provided as
required, the requesting department shall notify the Purchasing Agent to
contact the vendor, or complete a requisition for a change order to the
Purchase Order to reflect the differences.
3. If items are back-ordered and are to be delivered at a later date, a copy
of the receiving report should indicate that the order is partially received
and a Purchase Order manifest filled out and attached. The department should
keep the original green receiving report until the order is complete. If the
balance of the order is not received within thirty days, the requesting
department can initiate a request to cancel the balance of the order.
M. INVOICE PAYMENT PROCEDURES
1. The City desires to pay its bills in a prompt manner to take advantage of
discounts and to avoid late charges and penalties. All invoices should be
addressed to 150 City Park Way, Brentwood, CA 94513-1364. Invoice payment is
contingent upon receiving a proper invoice, including applicable sales tax,
and delivery of the goods or services. All departments must cooperate by
returning receiving forms, Purchase Order manifests, invoices, packing
slips, and check requests to the Finance Department promptly. These
documents must reach the Finance Department within three working days after
the department receives and verifies the receipt of the goods or services.
2. The Finance Department issues checks on Friday of each week. In order for
a check request, invoice or any other payment document to be issued on these
processing dates, the Finance Department must receive proper documentation,
including all authorization signatures, no later than Friday at Noon of the
3. The Finance Department will prepare a disbursement report weekly, to be
reviewed and approved by the Finance Director and City Manager before checks
can be released.
Manual checks will be issued only in emergency situations, with prior
approval from the Finance Director. Departments must plan ahead for funds,
especially travel, conference registration and per diem requests.
VII. LOCAL PREFERENCE
When two or more proposals or Requests for Quotation are the same, in unit,
quality, service and total cost, the Purchasing Agent shall give preference
to the vendor who operates within the planning area as defined in the City’s
Preference shall be given to a local vendor if the quote for services or
taxable goods is:
less than $10,000 and is within 5% of the lowest quote
more than $10,000 up to $500,000 and is within 3% of the lowest quote
more than $500,000 up to $1,000,000 and within 2% of the lowest quote
more than $1,000,000 and within 1% of the lowest quote
VIII. RECYCLED PRODUCTS AND RECYCLED MATERIALS
• All departments shall use recycled products whenever practical. Special
emphasis shall be placed on the purchase of products manufactured with
post-consumer recycled materials. Departments will also evaluate products on
the recycled product list established by the Purchasing Agent.
• All departments may, at their option and with concurrence of the
Purchasing Agency, require procurement of designated recycled products or
recycled products above the levels required by this policy.
• The City shall require its contractors and consultants to use and specify
recycled products in fulfilling contractual obligations whenever practical,
as long as it meets the projects quality and durability requirements.
• The City shall promote the use of recycled products publicizing its
procurement policy whenever practical.
• The Purchasing Agent shall coordinate the implementation of this policy.
The Purchasing Agent will establish a list of recycled products that shall
be purchased by all departments whenever practicable and will develop the
mechanism for maintenance, additions and deletions to the list of recycled
products available for procurement. Maintenance of the list will include
addition of new products containing recycled material as they become
available and make available to department specifications on the new product
along with a list of suggested uses. The Purchasing Agent will also work
with all departments to establish minimum recycled content standards for
designated recycled products to maximize recycled-product availability,
recycled content and competition. To the extent such information is known;
City staff shall identify to the Purchasing Agent, products available with
recycled content and vendors from whom such products are available. The
Purchasing Agent will also be responsible for information and dissemination
of that information to all departments and for annual policy review.
IX. UNAUTHORIZED PURCHASES
A. If any department purchases or contracts for any goods, materials,
equipment or services without complying with the provision of this policy,
such purchase or contract shall be void and of no effect, unless thereafter
approved by the person or entity required by this policy to approve such
purchase or contracts. However, the City Council shall be under no
obligation to approve unauthorized purchases not made in accordance with
B. An employee who makes an unauthorized purchase shall be subject to
discipline as provided in the Brentwood Municipal Code, Chapter 2.24
Personnel System, including any one or more of the following disciplinary
Verbal or written warnings
Suspension (with or) without pay
Reduction is salary within range
C. The head of the department approving an unauthorized purchase shall be
held accountable for identifying and correcting non-conforming purchases
made by department employees. Repeated instances of non-conforming purchases
within a department may lead to disciplinary action against the department
D. No department shall divide orders for goods, services or equipment in
order to evade the dollar limits of this policy.
E. No goods or services for personal use may be purchased on City accounts
or with City funds, unless authorized by a Council policy.
X. SURPLUS PROPERTY
A. All departments shall submit an annual report to the Purchasing Agent,
showing all goods and equipment that are no longer used or that have become
obsolete or worn out. The Purchasing Agent will make useable goods and
equipment available to other departments through the requisition process.
B. The Purchasing Agent, with approval from the Finance Director, shall have
authority to sell all goods and equipment which cannot be used by any
department or which have become unsuitable for city use, or to exchange the
same for, or trade in the same on new goods or equipment.
C. Under no circumstances will any department head or any City employee
sell, give away, exchange, rent, loan or borrow City owned property without
prior written authorization from the Finance Director through the Purchasing
Agent. This prohibition applies to any fixed asset that may have a value
when sold for scrap (e.g. water meters). This property shall be stored for
future use by other departments or disposed of by the Purchasing Agent.
XI. FIXED ASSETS
For the purposes of inventory, fixed assets will be described as follows:
Assets that will be tracked:
Buildings / Structures
Machinery and Equipment
Right of ways / Easements
Excluded items will be:
Assets of an intangible nature
Records & Drawings, consumable supplies and spare parts, inventory items
Leased property & personal property of employees
Maintenance and repair of capital assets
• Equipment includes moveable property which is relatively permanent and of
significant value such as generators, pumps, machines, tools, vehicles and
portable or removable devices. Items with a value of $2,500 or under will
not be included.
• Relatively permanent is defined as a useful life of ten years or longer.
• Significant value is defined as $10,000 and over for items described by
• However, this may include borderline items that do not meet both criteria
of $10,000 or more and a useful service life of ten years or more.
Inventory tags are used primarily to identify items that fall within the
definition of fixed assets, to provide departments with a reference when
conducting their annual inventories and to provide a means of listing,
cataloging and controlling assets of the City. Although it may not be
feasible to tag each category of fixed assets, it should be assigned an
When adding, disposing, or trading-in fixed assets, an Asset Information
Form must be completed and submitted to Purchasing along with purchase
requisition. This will provide the fixed asset monitor with adequate
information. All disposals (trade-in, donation or disposal of irreparable
assets) must be approved by Purchasing and the Finance Director.
The following procedures must be completed when requesting pick-up or
delivery of surplus equipment:
1. Complete City Asset Information form.
2. Submit to the Purchasing Agent for approval.
Each department will be responsible for arranging the pick up or requested
Approving Official (AO) – Manager, Supervisor or designated person of a
CAL-Card Procurement cardholder. Receives reconciled statements from
Bidders Security - When deemed necessary by the City Manager, City Council
and/or Purchasing Agent, the public notices inviting bids may require
bidders to furnish cash, a bond or other security. The successful bidder
shall forfeit its bid security if it refuses or fails to execute the
contract within ten days after the notice of award of the contract has been
mailed. If the City Council awards the contract to the next bidder, the
first bidders security shall be applied by the City to defray the cost
difference between the first bid and the second bid. The defaulting bidders
shall also be held liable for any costs in excess of its bid bond which the
City incurs in purchasing the goods or services elsewhere. Bid security
submitted by unsuccessful bidders will be returned when the City has an
executed contract with one of the bidders, or if the City rejects all bids.
Bidders List - An updated list of suppliers by goods or service.
Blanket Purchase Order - A purchase order number that the City has assigned
to a designated vendor for specific goods and/or services at specified
Bulletin Board - A location established in the lobby of the City Hall to
post a notice of pending purchases and services.
CAL-Card Procurement Card – A procurement card using the Visa Network.
Contracted by the State of California with U.S. Bank. Available to all
public entities within the state.
Cooperative Purchasing - Two or more public entities combining their
purchase requirements to obtain lower prices through volume buying and to
reduce administrative costs.
Local Vendor - A firm or individual who regularly maintains a place of
business and transacts business in, or maintains an inventory of merchandise
for sale in, or is licensed by, or pays business taxes to, the City; or
businesses within the City of Brentwood’s planning area as defined in the
City’s General Plan.
Post-Consumer Recycled Materials - A finished material or product that has
served its intended use and would not normally be disposed of as solid
waste. Examples of post-consumer recovered materials include, but are not
limited to old newspaper, office paper, yard waste, steel, glass, aluminum
cans, plastic bottles, oil, asphalt, concrete and tires.
Practicable - Sufficient in performance and available at a reasonable price
within a reasonable time period.
Pre-Consumer - Materials or by-products generated after manufacturing of a
product is completed, but before the product reaches the end-use consumer.
Examples of pre-consumer recovered materials include, but are not limited
to; obsolete inventories of finished goods, rejected unused stock and paper
wastes generated during printing, cutting and other converting operations.
Professional Services - Services of architects, attorneys, consultants,
engineers or physicians, or other individuals or organizations possessing a
high degree of professional or technical skill.
Purchase Order - A form used by the Purchasing Department to obtain goods
and services from vendors. The purchase order spells out the specific items
to be delivered, price, quantity, and delivery requirements, as well as
terms and conditions.
Purchase Order Amendment - A form used by the Purchasing Department to
alter, adjust, revise, terminate, or cancel a purchase order.
Purchase Order Manifest – A form to be filled out by the requisitioner and
attached to a Purchase Order that will have more than one (1) invoice
submitted for payment. The manifest records information such as council
actions, purchase order dollar amount, change orders and invoices.
Recycled Material - Waste material and by-products that have been recovered
or diverted from the solid waste stream and that can be utilized in place of
raw or virgin material in the production of a product. Recycled materials
may consist of material derived from post-consumer waste, manufacturing
waste, industrial scrap, agricultural waste and other items, all of which
can be used in the manufacture of new products.
Requisition - A form requesting departments submit to the Purchasing
Department to initiate procurement of needed goods or services.