[Prior Ordinance History: Ord. 650, Ord. 808, Ord. 834, Ord. 1088-09, Ord. 1126-13]
[Ord. 1165, eff. April 5, 2018]
In order to establish efficient procedures for the purchases of services, supplies and equipment, to secure for the City services, supplies and equipment at the lowest possible cost commensurate with quality, to exercise positive financial control over purchases, to clearly define the authority for the purchasing function, and to assure the quality of purchases, a purchasing system is hereby adopted.
[Ord. 1165, eff. April 5, 2018; amended 2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
Purchases of services, including maintenance work, supplies and equipment shall be by competitive process pursuant to § 3-4.105 of this article. These procedures shall be dispensed with only when the purchasing amount involved is less than $25,000, unless an exception applies.
[Ord. 1165, eff. April 5, 2018]
Purchases of services, supplies and equipment greater than $1,000 shall be made only by purchase order issued by the City Manager or the City Manager's designee.
[Ord. 1165, eff. April 5, 2018]
Except in the case of emergency, neither the City Manager or the City Manager's designee shall issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged.
[Ord. 1165, eff. April 5, 2018; amended 2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
For any procurement of services, supplies and equipment of $25,000 or more, contracts shall be awarded using one of the following competitive procedures:
(a) 
Vendor Price Quotes. The City Manager or the City Manager's designee shall solicit via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, price quotes in writing from a minimum of three vendors. If unable to obtain three price quotes, City staff shall document that there were no other companies to solicit price quotes from or that they solicited to other companies and all declined to provide a quote.
(b) 
Request for Proposals/Qualifications. The City Manager or the City Manager's designee shall solicit via posted notice, telephone request, mail, email, fax or any other reasonable solicitation method, proposals in writing from a minimum of three firms or from the public at large. If unable to obtain three proposals, City staff shall document that there were no other companies to solicit proposals from or that they solicited publicly or to other companies and all declined to provide a proposal.
(c) 
Best Competitive Value. "Best competitive value" means a value determined by evaluation of criteria that may include, but is not limited to, price, features, functions, lifecycle costs, experience, and past performance. City shall publish the requirements for vendors that define the terms, conditions, and specifications for services, supplies or equipment required by the City and award the contract to the vendor providing the best competitive value as defined in the solicitation.
(d) 
Formal Bids. The City may elect to use similar procurement procedures as the formal bidding procedure contained in § 3-4.206 for any procurement other than a public project, in which case the contract shall be awarded to the lowest responsible bidder.
(e) 
Small Purchases. Purchases of $1,000 and less may be made without a formal purchase order by a department head of the City or the department head's designee.
[Ord. 1165, eff. April 5, 2018]
The City Manager or the City Manager's designee shall inspect any supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The City Manager or the City Manager's designee shall have the authority to require chemical and physical tests of samples submitted with bids or proposals and samples of deliveries which are necessary to determine their quality and conformance with specifications.
[Ord. 1165, eff. April 5, 2018]
All purchases of services, supplies and equipment, by contract or otherwise, in an amount in excess of $25,000 shall be specified as a "lump sum" or as a "not-to-exceed" amount. The City Council may by a 4/5 vote approve exceptions to this requirement only after expressly finding that a determination of a "not-to-exceed" price is not feasible.
[Ord. 1165, eff. April 5, 2018]
As set forth in further detail in § 3-4.110, the City Council has made findings and adopted a Local Vendor Preference Program ("Local Program") applicable to certain purchases of materials, supplies, and equipment, as well as contracts for public works construction, maintenance and general services contracts described in this section. Accordingly, construction, maintenance and general services contracts that follow the City's formal contract bid procedure or competitive process procedures shall be subject to the Local Program set forth in § 3-4.110. A properly certified Local Small Businesses (as defined in § 3-4.110) shall be entitled to the specified reduction of 5% in the tabulation of its bid for purposes of determining the lowest responsible vendor or proposed price for services or delivery of goods, unless otherwise prohibited by law. This 5% adjustment shall only apply to local small businesses when such local small businesses are at least equal in responsibility and quality to other businesses bidding on contracts. Such findings shall be made by the City Council when awarding the contract to a local small business. If the Program is applicable to a bid offering, it shall be noted in the applicable bid solicitation. The 5% preference shall only apply to the determination of the business that is awarded the City contract. The price set forth in the actual bid or quote will be the price set forth in the agreement between the City and the local small business.
[Ord. 1165, eff. April 5, 2018]
Based upon the findings provided for in the recitals of the Ordinance adding this section, the City Council has determined that is in the best interests of the City to give a minimum preference to local small businesses when the City is making certain purchases of materials, supplies, and equipment, as well as when it is entering into contracts for public works construction, maintenance, and general services, as set forth in this Local Vendor Preference Program ("Program").
The Program shall consist of the following general requirements, which shall be implemented by the City Manager:
(a) 
A local small business for the purposes of this Program shall mean the vendor: (i) has fixed facilities with employees located at a business address within City limits (a post office box or nonbusiness residence alone is insufficient); (ii) has an appropriate City business license/permit (iii) has at least 50% of its full-time employees residing within City limits; and (iv) has no more than 25 employees employed full-time. A full-time employee is one who works more than 35 hours a week. A vendor seeking to qualify for this Program shall provide supporting information and certify in writing that it meets the above requirements as part of its bid.
(b) 
In applying the Program to bids on a City purchase subject to the Program, qualifying local small business shall be entitled to a reduction of 5% in the tabulation of its bid for purposes of determining the lowest responsible bidder or price for comparison to other businesses, unless otherwise prohibited by law (i.e. special State or Federal grant programs). This 5% adjustment shall only apply to local small businesses when such local small businesses are at least equal in responsibility and quality to other businesses bidding on contracts. Such findings shall be made by the City Council when awarding the contract to a local small business.
(c) 
The Program shall only be applicable to purchases of materials, supplies and equipment, and contracts for public works construction, maintenance, and general services which are competitively bid. If the Program is applicable to a bid offering, it shall be noted in the applicable bid solicitation.
[Ord. 1165, eff. April 5, 2018; amended 2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
(a) 
Emergencies. During an emergency that requires the immediate procurement of contractual services, professional services or materials, supplies and equipment, the City Manager or the City Manager's designee is authorized to procure these items without immediate Council approval and without giving notice for proposals. The City Manager or the City Manager's designee will report to the Council within 48 hours any and all actions taken to deal with the emergency. A written public record shall be kept showing the nature of the emergency and the City Manager or the City Manager's designee's authorization to proceed under the provisions of this section. The emergency action shall be terminated at the earliest possible date that conditions warrant.
(1) 
"Emergency" means a sudden, unexpected occurrence that poses a clear, eminent danger requiring immediate action to protect the health and safety of the public, including to prevent or mitigate the loss or impairment of life, health, property or public services.
(b) 
Sole Source Vendors. When there is only one source that provides the necessary public project, services, goods and equipment to ensure compatibility with existing City public projects, services, goods or equipment, or the public project, services, goods or equipment are proprietary in nature, the City may procure the public project, goods or services from the sole source.
(c) 
Economic Efficiency. If a competitive market does not exist, or the City will not gain a competitive advantage by using the formal contract bid or other competitive procedure, or where the public project, goods or services may be obtained more economically or efficiently without the procedure, the City may dispense with formal bidding or other competitive procedures.
(d) 
Cooperative Purchases. If a competitive bid procedure has been conducted by another public agency, including, but not limited to, another local agency, the state through the California Multiple Award Schedule (CMAS), the federal government through the General Services Administration (GSA), or a joint powers agency, authority or alliance that procures competitive contracts; and the price to the City is equal to or better than the price to that public agency, then the City may procure the contract without further bidding or other competitive procedures.
(e) 
Otherwise Authorized. The City may utilize any alternative procurement method that is authorized by state or federal law.
[2-4-2020 by Ord. No. 1182-20,[1] effective 3-25-2020]
For the purposes of this article, the following words and phrases shall have the following meanings:
ACT
The Uniform Public Construction Cost Accounting Act (California Public Contracts Code Section 22000 et seq.).
COMMISSION
The California Uniform Construction Cost Accounting Commission.
FACILITY
Any plant, building, structure, ground facility, utility system, subject to the limitation of Subsection (d) of the definition for "public project" below, real property, streets and highways, or other public work improvement.
PUBLIC PROJECT
Has the meaning assigned to it under Public Contract Code Section 22002, as it may be amended from time to time. "Public project" means any of the following:
(a) 
Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any City-owned, -leased or -operated facility;
(b) 
Painting or repainting of any City-owned, -leased, or -operated facility;
(c) 
In the case of a City-owned utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher;
(d) 
"Public project" does not include maintenance work. "Maintenance work" includes all of the following:
(1) 
Routine, recurring and usual work for the preservation or protection of any City-owned or City-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 City-owned water, power or waste disposal systems, including, but not limited to, dams, reservoirs, power plants and electrical transmission lines of 230,000 volts and higher.
[1]
Editor's Note: This ordinance amended in its entirety Art. 2, Public Works Projects, adopted by § 2, Ord. 834, effective 11-3-1988.
[2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
The City Manager, or the City's Manager's designee, shall compile and maintain a list of qualified contractors identified according to categories of work eligible to submit bids on informal contracts awarded by the City. This list shall comply with the requirements of the Act and the criteria promulgated, from time to time, by the Commission.
[2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
Public projects between $60,001 and $200,000 may be let to contract by the informal bidding procedures set forth in this section.
(a) 
Notice. When a public project is to be performed which qualifies for informal bidding, notice of such project shall be given as follows except where the product or service is proprietary:
(1) 
Mailed notice shall be sent to all contractors on the contractors list for the category of work being bid; and
(2) 
Mailed notice shall be given to all construction trade journals specified by the Commission for the receipt of such notice for Los Angeles County;
(3) 
Additional notice to other contractors and/or trade journals may, in the discretion of the City, be given.
(4) 
All mailing of notices to contractors and construction trade journals shall be completed not less than 10 calendar days before bids are due.
(5) 
The notice shall describe the project in general terms, how to obtain more detailed information about the project and shall state the time and place for submission of bids.
(b) 
Opening of Informal Bids and Award of Contract.
(1) 
At the time provided in the notice inviting informal bids, the City shall open all bids timely received. If a contract is awarded, it shall be awarded by the Council to the lowest responsible and responsive bidder. If two or more responsive bids are the same and lowest, the Council may accept the one it chooses. If no bids are received, the project may be performed by the employees of the City by force account, or negotiated contract without further complying with this article.
(2) 
If all bids received are in excess of the informal bidding limit, the Council may, by adoption of a resolution by a 4/5 vote, award the contract, at or below the provisional limit set forth in Public Contract Code § 22034(f), to the lowest responsible bidder, if it determines that the City's cost estimate was reasonable.
[2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
Public projects in excess of $200,000 must, except as otherwise provided in this chapter, be let to contract by the formal procedures set forth in this section.
(a) 
Notice of such project shall be given as follows unless an exception to competitive bidding applies:
(1) 
The notice shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.
(2) 
The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published within the jurisdiction of the City, in a newspaper of general circulation which is circulated within the City.
(3) 
The notice inviting formal bids shall also be mailed to all construction trade journals specified by the Commission for the receipt of such notice for Los Angeles County. The notice shall be mailed at least 15 calendar days before the date of opening the bids.
(b) 
Bidder's Security. All bids shall be presented under sealed cover accompanied by a form of bidders' security as prescribed in the public notices inviting bids in an amount at least equal to 10% of the amount bid. Bidders shall be entitled to the return of bid security; provided, however, the successful bidder shall forfeit its bid security upon its refusal or failure to execute the contract within 10 days after the notice of the award of contract has been mailed, unless the City is responsible for the delay. The Council, on the refusal or failure of the successful bidder to execute the contract, may award it to the next lowest responsible bidder. If the Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the difference between the lowest responsible bid and the second lowest responsible bid, and the surplus, if any, shall be returned to the lowest responsible bidder.
(c) 
Bid Opening Procedure. Sealed bids shall be submitted to the City Manager or the City Manager's designee, and shall be identified as bids on the envelope. Bids shall be opened in public at the time, date and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening.
(d) 
Rejection of Bids. In its discretion, the Council may reject any and all bids presented and purchase without further bidding or may re-advertise for bids in the manner prescribed under this section.
(e) 
Award of Contracts. Contracts shall be awarded by the Council to the lowest responsible bidder, except as otherwise provided in this section. If no bids are received, the project may be performed by employees of the City by force account or by negotiated contract without further complying with this section. The Council shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. No defect or informality shall void any contract entered into.
(f) 
Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, the Council may accept the bid it chooses.
(g) 
Performance Bonds. The Council shall have the authority to require a performance bond before entering into a contract in such amount as the Council shall find reasonably necessary to protect the best interests of the City. If the Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
[2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
The City Engineer, or designee, is authorized to approve plans and designs, and all amendments and addenda thereto, for performance of a public project of the City. This shall include the working details, drawings, plans and specifications prepared for every public project, including emergency and change order work, which may affect the design or operation of public improvements and which may bring into question the City's liability for dangerous conditions of public property.
[2-4-2020 by Ord. No. 1182-20, effective 3-25-2020]
(a) 
The Council hereby delegates to the City Manager the power to take any directly related and immediate action required by an emergency, as defined in this chapter. In situations determined by the City Manager to constitute an emergency, the City Manager may take action pursuant to § 22035 of the Act and Public Contract Code § 22050. Work shall be performed without the benefit of competitive bidding, either formal or informal, only so long as necessary under those sections.
(b) 
A report on the emergency and work performed shall be provided at the next regular meeting of the Council, and then at every meeting thereafter as required by § 22050. At such meetings, the Council shall determine, by a 4/5 vote, that there is a need to continue the action without the benefit of informal or formal competitive bidding in accordance with § 22035 of the Act and Public Contract Code § 22050. The Council shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the emergency action may be completed pursuant to a formal bidding procedure.