[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]
See § 3-4.206.
[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.
For the purposes of this article, the following words and phrases
shall have the following meanings:
The Uniform Public Construction Cost Accounting Act (California
Public Contracts Code Section 22000 et seq.).
The California Uniform Construction Cost Accounting Commission.
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.
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:
Construction, reconstruction, erection, alteration, renovation,
improvement, demolition and repair work involving any City-owned,
-leased or -operated facility;
Painting or repainting of any City-owned, -leased, or -operated
facility;
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;
"Public project" does not include maintenance work. "Maintenance
work" includes all of the following:
Routine, recurring and usual work for the preservation or protection
of any City-owned or City-operated facility for its intended purposes;
Minor repainting;
Resurfacing of streets and highways at less than one inch;
Landscape maintenance, including mowing, watering, trimming,
pruning, planting, replacement of plants, and servicing of irrigation
and sprinkler systems;
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 elects to become subject to the Act and to the Commission's
policies and procedures. If the Act increases its thresholds for public
projects, those new thresholds shall prevail.
[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 of $60,000 or less may be performed by the employees
of the City by force account, by negotiated contract or by purchase
order. The City Manager is authorized to award contracts for public
projects of $60,000 or less.
[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.
