Doing Business With The City - FAQ

The public procurement process, and the people involved, are subject to complete public accountability, regarding the proper expenditure of taxpayers’ money. Public purchasing must guarantee fair and open competition with equal opportunities for every supplier. A unique characteristic of public purchasing is the underlying principle that prices are not as critical as fairness and impartiality in obtaining them.

No, we have a decentralized purchasing function. Some commodities are bought by purchasing staff, some by the other divisions. We can direct you to the appropriate person for your commodity.

Purchases over $10,000 and less than $99,999 are awarded based on an informal competitive bid process. Generally, we request bids from at least three suppliers. The bid is awarded to the lowest responsive, responsible supplier: the bidder who meets the specifications, terms and conditions stated, and offers the lowest price. The only time we do not award to the lowest price is when a bid does not meet our specifications or the bidder is not responsible. Informal bids may be verbal or written. Anyone can see the bid results after the bid has been awarded.

Purchases over $100,000 follow a formal procedure. These Invitation for Bids (IFB) and Requests for Proposals (RFP) will be solicited on the city's new eProcurement system called OpenGov for publishing solicitations and receiving vendor responses. The City's new eProcurement Portal will allow vendors to:

• Register to bid and receive notifications of future opportunities by subscribing.
• Follow updates to open solicitations, by finding the solicitation and clicking the Follow button.
• Submit questions and receive answers for open solicitations.
• Be guided through the electronic submittal process.

Yes, if the IFB specifies a brand name or equal, you may offer an alternative or equal brand. It is a good idea to discuss your alternative proposal with us before submitting it. Equal products will be evaluated after bids are received.

Our mandate is to obtain the best value for every purchase. We attempt to develop specifications which clearly define the quality required.

Awarding to the lowest responsive, responsible bidder limits our ability to develop business relationships with suppliers. Because of this, we maintain an arms length association with suppliers. This is one of the many ways we try to minimize corruption in public procurement. Our goal is to treat all suppliers the same.

You may expend considerable time and money in presenting your product to an individual department in the hopes of making a sale. If you do this, remember the purchase may eventually be made by competitive bid and be awarded to the lowest responsive, responsible bidder.

When your personnel enter City property to repair, install, service, construct, or perform similar work, General Liability, Auto Liability, and Workers’ Compensation insurance(PDF, 113KB)  are generally required. If your firm provides professional services, such as architectural or engineering, professional errors and omissions insurance(PDF, 142KB)  is generally required. We must have proof of insurance meeting our criteria before you start work. Contact us for further information regarding this condition.

Bid and performance bonds are required when it is necessary to protect the interests of the City. All contracts for Capital Improvement projects require bid and performance bonds. Most RFB’s and RFP’s issued by the Purchasing Division do not required bonding.

Deliveries are required to be made to us F.O.B. Santa Cruz, freight prepaid. Failure to meet specified delivery dates may cause cancellation of the order, liquidated damages, and removal from bid list.

Never ship materials on orders exceeding $5,000 without a purchase order number! View our Purchase Order Terms and Conditions(PDF, 366KB) .

A purchase order is our contract with you. Any change to that contract must be in writing

Yes, we prefer to use products with recycled content and/or products that are recyclable, if fitness, quality, purpose, and price are equal.

Yes, please go to the DIR website for more information regarding prevailing wage and to register as a contractor.

Contractors are required to pay prevailing wages for:

1. Water, Wastewater, and Library public works projects over $1,000;
2. Jobs that reference the City’s Standard Specifications (typically formal Public Works, Water, and Parks & Recreation projects); and
3. As required by Senate Bill 7 (adds section 1782 to the California Labor Code, effective 1/1/14):
   1. Alteration, demolition, repair, or maintenance work on a facility or property over $15,000
   2. Construction projects over $25,000.

The Living Wage Ordinance of the City of Santa Cruz directs that suppliers who contract with the City for $10,000 or more for specific services, must pay their employees the current City living wage rate. For more information, view the Living Wage Ordinance, Living Wage Compliance, call 831-420-5080, or email.

City Council adopted a local preference ordinance in 2012 to support the local business community by having the City buy more goods and services from Santa Cruz companies. Through this ordinance, the City is willing to pay up to 6% more than low bid to do business with local vendors.

Our local preference is tiered:

• Tier 1: 2% preference for having a business location within city limits
• Tier 2: Additional 4% preference when business owners live in Santa Cruz County

The preference is calculated when bids are evaluated.

We issue payment to suppliers approximately thirty days after acceptance of the merchandise and/or service, and the correct original invoice, whichever arrives last. To expedite payment, put purchase order numbers on all invoices, shipping tags, and other correspondence relevant to the order.

We issue checks to suppliers every week. Due to the volume of work, it is not possible to issue checks outside of our regular schedule. It is our policy to mail checks to suppliers; picking up checks personally is not permitted. Feel free to call accounts payable at 831-420-5170 if you would like to learn about how you can work with our system and have your checks issued in a timely manner.

You are encouraged to offer the City an early payment discount. We strive to take all discounts where the payment period is fifteen days, or longer.

Yes, performance and delivery requirements are outlined in written specifications. Once a contract is in place, failure to fulfill any of the conditions may result in termination of your contract.

No, we maintain a policy prohibiting our employees from accepting gifts and/or gratuities from any supplier. You are encouraged to develop professional and ethical relationships with all City employees.

There are times during emergencies when an order must be placed by City personnel after hours or on weekends when the Purchasing Division is normally closed. Emergency purchases may be made for items which are immediately necessary for the continued operation of the division involved or which are immediately necessary for the preservation of life or property.

Yes, a blanket purchase order allows you to sell goods to us on an as-needed basis, sometimes at specific prices or under a specific pricing formula, for a stipulated period of time.

Yes, if you are located in, or perform services within, city limits. Call the Revenue Division at 831-420-5070 if you want more information.

The following is a list of Purchasing Division personnel who may assist you:

• Purchasing Manager: 831-420-5082
• Purchasing Staff: 831-420-5080
• Accounts Payable: 831-420-5170