Chapter 1.54 PURCHASING SYSTEM AND BIDDING RULES [1]

Prior ordinance history: Ords. 1568, 1618, 1667, 1708, 1891, 2019, 2063 and 2170.

§ 1.54.010 Purpose and organization of this chapter.

This chapter of the South Gate Municipal Code describes the manner in which the city purchases supplies, equipment and certain services. Included as part of that description are the bidding procedures the city must engage in prior to purchasing most of those supplies, equipment and services, as well as a separate bidding system that the city may use with respect to any "public project" and "maintenance work" (as those terms are defined in this chapter). The city's recycling ordinance, and the city's procedures for disposition of city property, are also included in this chapter.

The basic outline in which this chapter presents those matters is as follows:

Sections 1.54.010 through 1.54.050	General provisions
Sections 1.54.110 through 1.54.140	Centralized purchasing
Sections 1.54.210 through 1.54.230	Exceptions from centralized purchasing
Sections 1.54.310 through 1.54.350	Bidding requirements for purchasing supplies, equipment and services
	Formal bidding (amounts exceeding $50,000)
	Informal bidding (amounts from $2,000 to $50,000)
	No bidding required for open market purchases below $2,000
	No bidding required for professional services contracts
Sections 1.54.410 through 1.54.490	Alternate bidding procedures for public project and maintenance work
	Formal bidding (amounts exceeding $100,000)
	Informal bidding (amounts between $25,000 and $100,000)
	No bidding required for amounts less than $25,000
Section 1.54.510	Exceptions to bidding requirements
Section 1.54.610	Contract modifications and change orders
Sections 1.54.710 through 1.54.750	Recycled product procurement policy
Section 1.54.810	Disposition of surplus property

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.020 Definitions.

As used in this chapter, unless the context otherwise clearly indicates:

"Administrative instructions for contracting professional and other services"

mean those certain guidelines prepared by the city manager (including any modifications to those guidelines that may hereafter be made from time to time by the city manager) which establish procedures by which the city selects and contracts for professional and other services.

"Bidders' list"

means a list of suppliers and vendors, supplied by the purchasing division of the city's department of finance, and a list of qualified contractors identified according to categories of work, maintained by the city's public works director pursuant to California Public Contract Code Section 22034 and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission.

"California Uniform Construction Cost Accounting Commission"

means the commission created by California Public Contract Code Sections 22010 through 22020 appointed by the state controller to recommend, or update, for adoption by the controller, uniform construction cost accounting procedures for implementation by public agencies in the performance of, or in contracting for, construction of public projects and maintenance work.

"City council"

means the city of South Gate city council, except as otherwise specified in Section 1.54.040 of this chapter.

"Contract"

means a written agreement between the city and a vendor or a contractor, including a purchase order issued to a vendor or a contractor.

"Cooperative purchasing"

means purchasing that consists of combining the needs of multiple customers and/or other governmental agencies into a single solicitation of bids.

"Customer"

means any office, department, bureau, commission, board or other agency of the city using supplies or equipment.

"Director of finance"

means the director of the city's department of finance.

"Facility"

means any plant, building, structure, ground facility, sewer, storm drain or other publicly owned infrastructure (including without limitation items identified in Public Contract Code Section 22002(c)(3)); real property; streets and highways; or other public works improvement.

"Force account"

means the accounting procedure for accurate recording of work performed on public projects and maintenance work using internal resources, including but not limited to labor, equipment, materials, supplies, and subcontracts of the city.

"Local business"

means a business entity with fixed offices or distribution points located within the boundaries of the city, listed in the business license tax files with a city of South Gate business address, and designating, for sales tax purposes, the city of South Gate as the point of sale for retail transactions.

"Maintenance work"

means (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or 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; and (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher.

"Negotiated contract"

means a letter of agreement, vendor agreement, contract, professional services agreement, maintenance services agreement, public project agreement or other written documentation which details terms and conditions of the purchase and services.

"Other services"

means all services except those services that are in conjunction with the purchase of an item. (e.g.: installation of the item, repair of the item, labor to activate the item).

"Piggyback contract"

means a contract entered into by means of placing a purchase order against an existing contract of another public agency.

"Professional services"

mean any service which is generally characterized as a "profession" rather than a "business," "industry," "occupation" or "trade" under California State law. Without limiting the foregoing, the following types of services shall be included within the definition of "professional services" under this chapter: accounting; architecture; auditing; business appraisal or valuation; construction project management; construction management and inspection; engineering; environmental; financial planning; insurance; land surveying; landscape architecture; landscape engineering; legal; medical; municipal planning; public housing; real estate appraisal; and real estate brokerage or sales. Moreover, the provision of consulting services with respect to, rather than the actual performance of, any of the foregoing services shall also be deemed "professional services" for purposes of this chapter.

"Public project"

means (a) construction, reconstruction, erection, alteration, renovation, improvement, demolition or repair work involving any publicly owned, leased, or operated facility; or (b) painting or repainting of any publicly owned, leased or operated facility.

"Public works director"

means the director of the city's department of public works.

"Publicly owned infrastructure"

means (including without limitation): items defined in California Public Contract Code Section 22002(c)(3); real property; streets and highways; sewer; water; street lights; or other public work improvement.

"Purchase order"

means any or all of the following:

"Blanket purchase order":

a purchase consisting of written authorization with a vendor for release of materials or service on an "as needed" basis of an aggregate value of less than one thousand dollars per purchase, no capital, with a fiscal year cap of fifty thousand dollars. Any amount exceeding fifty thousand dollars must be awarded by formal or informal bid procedures pursuant to Section 1.54.310 or 1.54.450, unless exemptions established under Sections 1.54.350, 1.54.470 or 1.54.510 apply. Exceptions may be made upon approval by the city manager or his designee. The blanket purchase order is issued to satisfy an unforeseen and immediate need.

"Field purchase order":

a purchase of materials or services consisting of less than a one thousand dollar limit, completed within thirty days.

"Purchase order":

purchase of materials or services through a written order, required for orders over one thousand dollars, or at the request of a vendor, or at the judgment of the purchasing supervisor (or his or her designee).

"Purchasing supervisor"

means the person appointed by the director of finance to hold the position of purchasing supervisor.

"Uniform Public Construction Cost Accounting Act"

means the Act set forth at California Public Contract Code Sections 22000 through 22045, which provides an alternative method for the bidding of public projects, maintenance work, and any other construction work, including that which does not fall within the definition of a public project.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 1, 5-14-2013)

§ 1.54.030 Changes to dollar limits.

In the event that any dollar amounts or monetary limits specified in the Uniform Public Construction Cost Accounting Act or elsewhere in the Government Code or Public Contract Code are amended by the state legislature or adjusted by the state controller, and if such amendment or adjustment affects the subject matter of this chapter, then this chapter shall be deemed automatically amended to include any such revised dollar amounts or monetary limits.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.040 Matters pertaining to housing authority, redevelopment agency, utility authority or other bodies.

To the extent that this chapter requires the approval of the city council to the execution or modification of any contract, the term "city council" shall have the following specialized meanings in the following specialized circumstances:

With respect to contracts pertaining to public housing or publicly-assisted housing matters, the term "city council" shall mean the city council sitting as the governing board of the housing authority of the city of South Gate.

With respect to contracts pertaining to redevelopment agency matters, the term "city council" shall mean the city council sitting as the governing board of the city of South Gate community redevelopment agency.

With respect to contracts pertaining to sewer and water facilities, the term "city council" shall mean the city council sitting as the governing board of the utility authority of the city of South Gate.

With respect to contracts pertaining to any other matter as to which jurisdiction has been granted by the city council to a city agency, authority or commission, the term "city council" shall mean the city council sitting as the governing body of that agency, authority or commission.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.050 Conflicts with state law.

To the extent that anything in this chapter conflicts with any provision of state or federal law, then such state or federal law shall prevail and control with respect to the subject matter of the conflict. To the extent any such conflicting provision of this chapter can be interpreted so as to avoid the conflict, then that interpretation shall be applied. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this chapter or any part thereof. The city council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional or invalid or ineffective. To this end the provisions of this chapter are declared to be severable.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.110 Appointment, authority and duties of purchasing supervisor.

The purchasing supervisor shall be appointed by the director of finance.

The purchasing supervisor shall have authority, and is required to, perform the following duties:

Purchase and contract for all supplies, equipment and services required by any customer. Such purchasing and contracting shall be done by the purchasing supervisor in accordance with: (i) purchasing procedures prescribed by this chapter, (ii) the administrative instructions for contracting professional and other services, (iii) such administrative regulations as the director of finance shall prescribe, and (iv) such other rules and regulations as shall be prescribed by the director of finance or the city manager. Such duties and authorities shall include:

Negotiation of all purchase orders and other contracts (except for contracts exempted from centralized purchasing pursuant to Sections 1.54.210 through 1.54.230 of this chapter);

Execution of all contracts (except for those exempted from centralized purchasing pursuant to Sections 1.54.210 through 1.54.230 of this chapter, which shall instead be executed by the person or persons identified in those sections), and execution of all purchase orders (including those pertaining to contracts which were exempted from centralized purchasing pursuant to said sections); provided, however, that the following approvals are required before the purchasing supervisor may execute any purchase order or other contract equal to or greater than five thousand dollars:

Where formal bidding was required under Section 1.54.310 of this chapter (purchases of supplies, equipment and services in amounts exceeding fifty thousand dollars) and not exempt under Section 1.54.510 or any other provision of this chapter, approval of the finance director and the city council is required prior to the purchasing supervisor's execution of the contract or purchase order,

Where informal bidding was authorized under Section 1.54.320 of this chapter (which, as it relates to this section, applies to purchases of supplies, equipment and services in amounts between five thousand dollars and fifty thousand dollars), approval of the finance director is required prior to the purchasing supervisor's execution of the contract or purchase order,

Where the formal bidding procedure under Section 1.54.440 of this chapter was authorized (public projects, maintenance work and similar construction contracts in amounts exceeding one hundred seventy-five thousand dollars), approval of the city manager (or his or her designee) and the city council is required prior to the purchasing supervisor's execution of the purchase order; and

Where the informal bidding procedure under Section 1.54.450 of this chapter was authorized (public projects, maintenance work and similar construction contracts in amounts between forty-five thousand dollars and one hundred seventy-five thousand dollars), approval of the city manager (or his or her designee) is required prior to the purchasing supervisor's execution of the purchase order.

When exercising the duties set forth in subsection A of this section, the purchasing supervisor shall endeavor to procure such supplies and equipment at the lowest expense possible, without sacrificing necessary quality;

Discourage collusive bidding in all cases, and encourage competitive bids where appropriate;

Prepare, revise and recommend to the director of finance rules governing purchasing, maintaining an inventory, and warehousing of supplies and equipment of the city;

Keep informed of current developments in the fields of purchasing, prices, market conditions, and new products;

Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and other related rules and regulations;

Require and be responsible for the proper performance of inspections (including chemical and physical tests where such test are reasonably necessary) of samples submitted with bids and samples of deliveries to determine their quality and conformance with specifications;

Recommend the transfer of surplus or unused supplies and equipment between customers as needed and the sale or other disposition of all supplies and equipment which cannot be used by any customer or which have become obsolete or otherwise unsuitable for city use;

Maintain the bidders' list (except for those portions of the bidders' list consisting of the lists that the public works director is required to maintain pursuant to Section 1.54.430 of this chapter), vendors catalog file and records needed for the efficient operation of the purchasing division of the department of finance;

Appoint one or more assistant purchasing supervisors or acting purchasing supervisors to carry out the purchasing supervisor's duties in his or her absence;

Perform such other duties and functions as may be assigned by the director of finance.

In the purchasing supervisor's absence, any and all duties of the purchasing supervisor can be exercised by the director of finance, the city manager, or by any assistant purchasing supervisor or acting purchasing supervisor who has been appointed by the purchasing supervisor or the finance director.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 2, 5-14-2013)

§ 1.54.120 Requests (requisitions) to purchasing supervisor by city departments and personnel that the city purchase supplies, equipment and services.

Customers shall submit requests (requisitions) for supplies, equipment and services to the purchasing supervisor using standard purchase requisition procedures utilized by the purchasing department. Requisitions are used to inform the purchasing supervisor of the needs of a requesting customer, to identify and define the material and/or service being requested, to provide a record of requested items, to encumber funds, and to obtain necessary approvals. Requisitions may be submitted in the following manner:

Standard requisition—provides vital information required before an order may be placed, and ultimately represents the authorization for a purchase order to be issued;

Stock requisition—provides information to process an order for items in the warehouse;

Supplier requisition—online order directly with the vendor, set up by contract pricing, security approvals through the purchasing supervisor.

The purchasing department is authorized to revise requisitions and estimates as to quantity, quality, or estimated cost, within the limitations set forth in this chapter. If the purchasing department revises any requisition, however, the purchasing department shall obtain the requesting customer's approval of the revisions before placing any orders to fill the requisition.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.130 Centralized purchasing: all city purchases of supplies, equipment and services must be made by purchasing supervisor.

Unless specifically exempted under Sections 1.54.210, 1.54.220, 1.54.230 or 1.54.240 of this chapter, all purchases of supplies, equipment and services to be made by the city shall be done exclusively by means of written contracts entered into by the purchasing supervisor on behalf of the city. The form of those written contracts may include, without limitation, any purchase order, field purchase order, or blanket purchase order.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.140 Funding of purchases.

The purchasing supervisor shall not authorize or issue a written contract for supplies, equipment or services unless there exists a sufficient unencumbered appropriation in the budget fund account against which the purchase is to be charged.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.210 Exceptions from centralized purchasing for certain recurring expenses, maintenance expenses, real estate expenses, and minor one-time expenses.

Payments for the following goods, services and property rights are exempt from the general rule established by Section 1.54.130 of this chapter:

Payment of monthly utility bills (including without limitation telephone, electricity and water bills), where the initial agreement for service between the city (or customer) and the utility provider pursuant to which the bills are issued was approved by the director of finance or the city council;

Payment of monthly, annual or other periodic rental, lease or installment payments under equipment leases, personal property rental agreements, or other written contracts for the use of goods; provided, however, that those leases, agreements and contracts: (i) do not pertain to public projects or maintenance work, and (ii) were approved by the director of finance or the city council; and provided further that if any such lease, agreement or contract calls for an initial payment upon the city's execution thereof, then that initial payment must be made by the purchasing supervisor pursuant to a purchase order under Section 1.54.130 of this chapter;

Payment of monthly, annual or other periodic subscription installments for magazines, newspapers, journals, legal and governmental publications, printed or electronic information services, and other periodicals and similar subscriptions, provided that the initial purchase of the corresponding periodical, publication or service was previously approved by the appropriate city body, officer or department;

Payment of monthly, annual or other periodic insurance premiums, where the city's (or customer's) purchase of the insurance policy for which such premiums are due was approved by the director of finance or the city council;

Payment of monthly, annual or other periodic installments under maintenance agreements and service contracts (including without limitation those for pest control, landscaping, security, heating and air conditioning repair, and computer/information technology support), where the contracts pursuant to which such payments are made (i) were entered into in accordance with and contain language required by the administrative instruction for contracting professional and other services prepared by the city manager, and (ii) were approved by the purchasing supervisor, the director of finance, the city manager or the city council;

Any installment or lump-sum payment for the purchase or lease of real property, or for the acquisition of easement rights or similar property rights, where the purchase agreement, lease, rental contract, easement deed or other written contract pursuant to which that payment is made was approved by the city council;

Payment of monthly, annual or other periodic dues for professional associations, civic organizations and other groups, where membership therein by the city or any of its officers or employees was previously approved by the appropriate city body, officer or department;

Payment of fees for participation by any city officer or employee in any seminar, workshop or similar training course or session pertinent to that officer's or employee's duties, where such seminar, workshop, course or session was previously approved by the appropriate city body, officer or department;

Payment or reimbursement of travel expenses for city council members, city officers, city employees or city consultants, where the related travel was previously approved by the appropriate city body, officer or department;

Payments to the county of Los Angeles or to other local, state or federal government entities for services rendered to the city under contracts authorized in accordance with the procedures set forth in this chapter; and

Payments for commodities obtained with a procurement card or credit card and approved by the director of finance in compliance with the terms and conditions set forth in the purchasing divisions purchasing policy.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.220 Exemptions from centralized purchasing for purchases of professional services.

All professional services to be performed for any customer shall be procured through a decentralized procedure. Contracts for such professional services shall not be entered into by the purchasing supervisor, but shall instead be entered into directly by the customer for whom such professional services are to be provided. The customers' right to enter into such direct contracts is, however, subject to the administrative instructions for contracting professional and other services (available from the purchasing department), and to any other rules or regulations now or hereafter established by the city manager.

Following the initial execution of any such contract, any purchase order subsequently needed in connection with the contract shall (unless otherwise exempted from centralized purchasing by Section 1.54.210 of this chapter) be executed by the purchasing supervisor.

Subject to the foregoing, each customer is authorized to exercise the city's rights pursuant to Government Code Sections 37103 and 53060 to contract with any person, firm or corporation for special services and advice in financial, economic, accounting, engineering, legal, or administrative matters, if such person, firm or corporation is specially trained and experienced and competent to perform the special services required.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.230 Exemptions from centralized purchasing for contracts for public projects, maintenance work, or other construction.

Contracts for the construction of public works, contracts for the performance of maintenance work, or contracts pertaining to construction, repair or maintenance of facilities, or any other contracts which may be bid using the procedures set forth at Sections 1.54.410 through 1.54.490 of this chapter shall be exempt from centralized purchasing. Following the initial execution of any such contract, any purchase orders subsequently needed in connection with the contract shall (unless otherwise exempted from centralized purchasing under Sections 1.54.210 of this chapter) be executed by the purchasing supervisor.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.240 Other exemptions from centralized purchasing.

The purchasing supervisor, with approval of the director of finance, may authorize, in writing, any customer to purchase and contract for specified supplies, equipment and services independently of the purchasing division; but the purchasing supervisor shall require that such purchases and contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the customer on the purchases and contracts made under such written authorization.

Following the initial purchase or contract, any purchase order subsequently needed, shall, (unless otherwise exempted from centralized purchasing by Section 1.54.210 of this chapter), be executed by the purchasing supervisor.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.310 Formal bidding procedures for city purchases of supplies, equipment and services exceeding fifty thousand dollars.

All purchases of supplies, equipment and services made by the city as to which the purchase price or estimated value exceeds fifty thousand dollars (other than purchases relative to public projects, maintenance work, and other contracts and purchases made pursuant to Sections 1.54.410 through 1.54.490 of this chapter or otherwise exempted from bidding requirements under this chapter) shall be made by means of the following formal bidding procedures:

Preparation of Notice Inviting Bids. The purchasing supervisor (or the customer, where decentralized purchasing is authorized under Sections 1.54.210, 1.54.220, 1.54.230 or 1.54.240 of this chapter) shall prepare for publication a notice inviting sealed bids. The notice shall include a general description of the articles to be purchased, shall state where bid forms and specifications may be obtained, and shall specify the time and place for opening bids. The notice must also include the allowance for local vendor preference pursuant to Section 1.54.350 of this chapter, if that is to be considered.

Publication of Notice. The notice inviting bids shall be published by the purchasing supervisor (or by the customer who prepared the notice, in the case of decentralized purchasing) at least ten days before the date of the opening of the bids. The notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is no such newspaper, the notice shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices.

Solicitation of Bids from those Named on Bidders' List. The purchasing supervisor (or customer, in the case of decentralized purchasing) shall also solicit sealed bids from responsible prospective vendors or suppliers whose names are on the bidders' list or who have requested their names to be added thereto.

Submission of Sealed Bids. Bids shall be submitted to the office of the city clerk (or such other location specified in the notice inviting bids) in sealed envelopes. The outside of the envelope shall identify the contents as a bid by referencing the bid number or other identifying information required by the notice inviting bids and corresponding information for bidders prepared by the city. Bids submitted to a location other than that specified in the notice inviting bids, or bids submitted after the time specified in the notice inviting bids, shall be returned unopened.

Bid Opening Procedures. Bids shall be opened by the city clerk, in public, and at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be open for public inspection in the office of the city clerk during regular business hours for a period of not less than thirty calendar days after the bid opening.

Rejection of Bids. In its discretion, the city council may reject any and all bids prior to or following the opening of bids.

Award of Contracts. The city council shall award a contract to the lowest responsive and responsible bidder, pursuant to findings and recommendations presented by the purchasing supervisor (or his or her designee) at the time of award of contracts that are subject to this section.

Bidders' Security. When deemed necessary or appropriate by the purchasing supervisor (or by the customer who prepared the notice inviting bids, in the case of decentralized bidding), bidder's security may be prescribed in the public notice inviting bids. Bidders shall be entitled to the return of their bid security; provided, that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within twenty days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award the contract to the next lowest responsible and responsive bidder. If the city 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 low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of re-advertising for bids, the city council may: (i) accept either bid, or (ii) accept the lowest bid made by and after negotiation and rebid with the tied vendors.

Payment (Material) and Performance Bonds. The purchasing supervisor (or the customer, in the case of decentralized purchasing) shall have authority to require payment (material) and performance bonds before entering a contract in such amount as the purchasing supervisor (or customer) deems reasonably necessary to protect the best interests of the city. If a payment or performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.320 Informal bidding procedures for city purchases of supplies, equipment and services between two thousand dollars and fifty thousand dollars.

Purchases of supplies, equipment and services at a price or having an estimated value equal to or greater than two thousand dollars but not greater than fifty thousand dollars may be made using the informal bidding procedures prescribed by this section rather than the formal bidding procedures set forth in Section 1.54.310 of this chapter.

Necessary Requests and Approvals. For purchases of five thousand dollars or less, the informal procedures established by this section may be used by the purchasing supervisor or requesting customer upon receipt of a purchase requisition executed by a department manager. For purchases greater than five thousand dollars but less than or equal to fifty thousand dollars, the written approval of the director of finance is also required before the informal procedures established by this section may be used.

Solicitation of Written Quotations. When the purchasing supervisor is authorized to make purchases pursuant to the informal bidding procedures established by this section, the purchasing supervisor shall obtain at least three written quotations from commercial, public, or other open-market vendors.

Award of Contract. Following receipt of at least three such informal bids, the purchasing supervisor shall award the contract to the vendor offering the most advantageous quote to the city after consideration of price, quality, durability, service, delivery time, standardization, and any other factors deemed necessary by the purchasing supervisor to secure the best value for the city.

Copies of Written Quotations. All written quotations required under this section shall be submitted to the purchasing supervisor (his or her designee), who shall keep copies (and other records deemed necessary or desirable by the purchasing supervisor) of those quotations and contracts for a period of two years after submission of quotations or the execution of contracts. These copies and records, while kept, shall be opened to public inspection, upon written request to the purchasing supervisor, except that vendor proprietary data shall not be opened to public inspection.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.330 Open market purchases without formal or informal bidding for amounts less than two thousand dollars.

Purchases of supplies, equipment and services for a purchase price of, or having an estimated value less than, two thousand dollars are exempt from both formal and informal bidding requirements. Such purchases may be made by the purchasing supervisor on the open market with three verbal quotations, or by private negotiated sale without restriction, subject to the requirements of Sections 1.54.110(B) and (E) of this chapter.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.340 Local business credit.

In determining the lowest responsible bidder pursuant to Section 1.54.310 of this chapter (formal bidding procedures), or the lowest responsible vendor pursuant to Section 1.54.320 of this chapter (informal bidding procedures), the purchasing supervisor shall be authorized to give credit of up to five percent of the bid price or quotation to a local business for purchases and projects that do not exceed three hundred thousand dollars. If such credit is to be given, the dollar or percentage amount thereof shall be set forth in the notice inviting bids or in the request for quotations. The purchasing supervisor shall provide a form by which a local business shall document and certify that it qualifies for such credit, where applicable.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.350 Procedures for professional and other services.

The procedures as set forth in this chapter shall not apply to purchase orders or contracts for professional or other services. The city manager shall prepare an administrative instruction setting forth the procedures to be followed by all city departments in contracting for professional and other services, which procedures shall be approved by the city council.

Pursuant to the authority granted by Government Code Sections 4525 through 4529.5, selection of professional services of private architectural, landscape architectural, engineering, environmental, land surveying, or construction project management firms may be made on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. The provider of such services shall be selected only if the provider's services are obtained at fair and reasonable prices to the city or customer.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.410 Adoption of Uniform Construction Cost Accounting Act's Accounting Procedures.

The purpose of Sections 1.54.410 through 1.54.490 of this chapter is to provide for an alternative method for the bidding of public projects, maintenance work, and related work, as authorized by California Public Contract Code Sections 22000 et seq.

Purchases made by the city related to public projects, maintenance work, and other work that is the subject of Sections 1.54.410 through 1.54.490 of this chapter shall be made by the purchasing supervisor pursuant to the provisions of Section 1.54.130 of this chapter, unless an exemption from centralized purchasing applies under Sections 1.54.210 through 1.54.230 of this chapter.

However, bidding for such public projects, maintenance work, and any other construction work, including that which does not fall within the definition of a "public project" set forth in Public Contract Code Section 22002(c), may at the city's discretion be bid using the alternative bidding methods set forth in Sections 1.54.410 through 1.54.490 of this chapter.

The city is able to utilize the alternative bidding method, also known as informal bidding, pursuant to the authority granted to city governments by Public Contract Code Section 22003. In order to become eligible to exercise the rights granted by Public Contract Code Section 22003, the city of South Gate, on May 9, 2000, passed, approved and adopted Resolution 6564. In that resolution, the city elected to become subject to the Uniform Construction Cost Accounting Procedures set forth in the Uniform Public Construction Cost Accounting Act, and to become subject to the Policies and Procedures Manual and cost accounting review procedures established by the California Uniform Public Construction Cost Accounting Commission, as they may each from time to time be amended, which shall apply to public projects, maintenance work, and any other construction work, including that which does not fall within the definition of public project set forth in Public Contract Code Section 22002(c).

All city departments and other customers are subject to Sections 1.54.410 through 1.54.490 of this chapter.

(Public Contract Code 22030; Ord. 2063; Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.420 Duties and responsibilities of public works director.

The public works director has the authority to do all of the following with respect to public projects, maintenance work, and similar construction projects:

Prepare (or arrange for the preparation of) and approve plans, specifications and working details for all public projects, maintenance work, and similar construction work that qualifies for the bidding procedures established by Sections 1.54.410 through 1.54.490 of this chapter;

Invite bids, prepare bid packages, and manage the bidding process for such public projects, maintenance work, and similar construction work pursuant to the provisions of Sections 1.54.410 through 1.54.490 of this chapter;

With respect to contracts which are the subject of formal bidding procedures pursuant to Section 1.54.440 of this chapter, the city manager and the public works director have the authority to recommend that the city council award the contracts to the lowest responsive and responsible bidder. With respect to contracts which are the subject of the informal bidding procedures pursuant to Section 1.54.450 of this chapter, the city manager or to any other person designated in writing by the city manager, has the authority to award those contracts to the lowest responsive and responsible bidder;

Obtain from any contractor to whom a contract is awarded pursuant to Sections 1.54.410 through 1.54.490 of this chapter, and to deliver to the purchasing supervisor, any of the following to the extent deemed necessary or desirable by the public works director or the purchasing supervisor: (i) contractors' insurance certificates and policies required by the terms of the contract; (ii) licensing information confirming that the contractor holds any and all licenses required by the terms of the contract; (iii) verification that any signatures appearing on the contract are the signatures of individuals authorized to bind the contractor to the contract; (iv) performance and material bonds, insurance certificates, and evidence of workers' compensation coverage; and (v) any other documents or information confirming that the contractor is eligible to receive the award of the contract;

Prepare and implement written policies as the public works director deems necessary or desirable to facilitate the actions authorized by Sections 1.54.410 through 1.54.490 of this chapter; and

Designate one or more assistants, and to delegate to such assistant(s) the right to perform any of the duties set forth in this section.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.430 Lists of qualified contractors and construction trade journals.

To ensure that the public works director is able to mail notices, pursuant to Public Contract Code Sections 22034 and 22036, of formal or informal construction contracts being bid pursuant to Sections 1.54.440 and 1.54.450 of this chapter, the public works director shall maintain and keep current both of the following lists:

List of Qualified Contractors. The public works director shall maintain a list of qualified contractors eligible to submit bids on informal contracts awarded by the city. That list shall identify the qualified contractors according to categories of work. A licensed contractor wishing to be on the list must first submit a request letter to the public works director. In developing and maintaining that list, the public works director shall comply with any criteria established by the California Uniform Construction Cost Accounting Commission pursuant to Public Contract Code Section 22034.

List of Construction Trade Journals. The public works director shall also maintain a current list of the names and addresses of all construction trade journals identified by the California Uniform Construction Cost Accounting Commission pursuant to Public Contract Code Section 22036.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.440 Formal bidding procedures for contracts in excess of one hundred seventy-five thousand dollars (or such other amount as may hereafter be established by state law) pertaining to public projects and certain other construction-related activities.

The public works director may utilize the formal bidding procedures set forth in this section for any "public project" (as defined below) having a contract price or estimated cost of more than the threshold amount for which informal bidding is authorized by the California Uniform Construction Cost Accounting Commission ("CUCCAC"). As of March 5, 2013, that threshold amount was one hundred seventy-five thousand dollars, but in accordance with Section 1.54.030, the threshold amount for purposes of this section will automatically be increased or decreased to correspond with changes established by the CUCCAC. In determining the applicability of this section, the city shall rely on the threshold amount published by the CUCCAC on its website (www.sco.ca.gov/ard_cuccac) or otherwise disclosed to the city by the CUCCAC. As used herein, the term "public project" has the meaning set forth in Section 1.54.020. In accordance with provisions of the Uniform Public Construction Cost Accounting Act set forth at Public Contract Code Section 22002(d), "public project" does not include "maintenance work," defined therein to include all of the following: (1) routine, recurring and usual work for the preservation or protection of any publicly owned or publicly 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; and (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher. Pursuant to other provisions of the Uniform Public Construction Cost Accounting Act set forth at Public Contract Code Section 22003, the city may, but is not required to, utilize the formal bidding procedures established by this section when contracting for maintenance work or any other work which does not fall within the definition of "public project" as defined in the Uniform Public Construction Cost Accounting Act.

Notice Inviting Bids. The public works director shall prepare a notice inviting public bids. That notice shall state the time and place for the receiving and opening of sealed bids and shall distinctly describe the project. The notice may also include bond requirements of Section 1.54.490, if stipulated by the public works director. The public works director shall cause the notice to be issued in all of the following ways:

At least fourteen calendar days before the date of opening the bids, (i) by publishing the notice in a newspaper of general circulation, printed and published in the jurisdiction of the city; (ii) if there is no newspaper printed or published within the city, then the notice shall be published in a newspaper of general circulation which is circulated within the city; or (iii) if there is no newspaper which is circulated within the jurisdiction of the city, publication shall be done by posting the notice in at least three places within the jurisdiction of the city as have been designated by ordinance or regulation of the city as places for the posting of its notices;

Not less than fifteen calendar days before the date of opening the bids, the notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals on the list maintained by the public works director pursuant to Section 1.54.430(B); and

In addition, the public works director may give any other notice he or she deems proper, including without limitation delivering notice to additional contractors and/or construction trade journals.

If subsequent changes in state law create new or modified definitions (including but not limited to definitions of the terms "maintenance work" or "public project"), notice periods or procedures which are different from those set forth in this section, then the public works director or other authorized city representative shall proceed according to those state law notice provisions rather than those set forth herein.

Opening of Bids and Award of Contract. All bids shall be sealed and sent to the city clerk's office. At the time provided in the notice, all bids timely received shall be opened publicly by the city clerk's office (or by any other designee of the city clerk). Unless all bids are rejected pursuant to Section 1.54.475, the public works director shall recommend to the city council that the contract be awarded to the lowest responsive and responsible bidder. The contract shall be awarded by the city council.

Execution of Contract. Any contract awarded pursuant to this section shall be executed by authority delegated by city council.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 3, 5-14-2013)

§ 1.54.450 Informal bidding procedures for contracts between forty-five thousand dollars and one hundred seventy-five thousand dollars (or such other amounts as may hereafter be established by state law) pertaining to public projects and certain other construction-related activities.

The public works director may utilize the informal bidding procedures set forth in this section for any "public project" (as defined below) having a contract price or estimated cost within the range for which informal bidding is authorized by the California Uniform Construction Cost Accounting Commission ("CUCCAC"). As of March 5, 2013, that range was more than forty-five thousand dollars but less than or equal to one hundred seventy-five thousand dollars, but in accordance with Section 1.54.030, the range for purposes of this section will automatically be increased or decreased to correspond with changes established by the CUCCAC. In determining the applicability of this section, the city shall rely on the dollar range published by the CUCCAC on its website (www.sco.ca.gov/ard_cuccac) or otherwise disclosed to the city by the CUCCAC. As used herein, the term "public project" has the meaning set forth in Section 1.54.020. In accordance with provisions of the Uniform Public Construction Cost Accounting Act set forth at Public Contract Code Section 22002(d), "public project" does not include "maintenance work," defined therein to include all of the following: (1) routine, recurring and usual work for the preservation or protection of any publicly owned or publicly 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; and (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher. Pursuant to other provisions of the Uniform Public Construction Cost Accounting Act set forth at Public Contract Code Section 22003, the city may, but is not required to, utilize the informal bidding procedures established by this section when contracting for maintenance work or any other work which does not fall within the definition of "public project" as defined in the Uniform Public Construction Cost Accounting Act.

Notice Inviting Bids. The public works director shall prepare a notice inviting public bids. That notice shall describe the project in general terms, shall describe how to obtain more detailed information about the project, and shall state the time and place for submission of bids. The notice may also include bond requirements of Section 1.54.490, if stipulated by the public works director. The public works director shall cause the notice to be issued in either of the following ways:

By mailing, at least ten calendar days before the date on which bids are due, a copy of the notice to all of the construction trade journals on the list maintained by the public works director pursuant to Section 1.54.430(B); or

By mailing, at least ten calendar days before the date on which bids are due, a copy of the notice to all contractors for the category of work being bid as shown on the list maintained by the public works director pursuant to Section 1.54.430(A); provided, however, that if the product or service that is the subject of the notice is proprietary in nature such that it can only be obtained from a certain contractor or contractors, then the notice inviting bids shall be sent exclusively to such contractor or contractors; and further provided, that if the list maintained by the public works director contains no contractors for the particular category of work to be performed, then only the notices required by subsections (A)(1) and (2) of this section need be sent; and

If subsequent changes in state law create new or modified definitions (including but not limited to definitions of the terms "maintenance work" or "public project"), notice periods or procedures which are different from those set forth in this subsection (A), then the public works director or other authorized city representative shall proceed according to those state law notice provisions rather than those set forth herein.

In addition, the public works director may give any other notice he or she deems proper, including without limitation delivering notice to additional contractors and/or construction trade journals.

Opening of Bids and Award of Contract. At the time provided in the notice, all bids timely received shall be opened. Following the opening of the bids, the public works director may do any of the following:

Award the contract to the lowest responsive and responsible bidder; or

Reject all bids pursuant to Section 1.54.475; or

If all bids received are in excess of one hundred seventy-five thousand dollars but do not exceed one hundred eighty-seven thousand five hundred dollars, the public works director may recommend that the contract be awarded to the lowest responsive and responsible bidder. Upon such a recommendation, the city council may, by adoption of a resolution by a four-fifths vote, award the contract to the lowest responsive and responsible bidder (in an amount not exceeding one hundred eighty-seven thousand five hundred dollars) if the city council determines that the public works director's original estimation of the cost of the project was reasonable. The dollar amounts specified in this subsection (C)(3) are effective as of March 5, 2013, but shall automatically be adjusted to correspond to subsequent adjustments made by the CUCCAC or by the amendment of California Public Contract Code Section 22034(f).

If all bids received are greater than one hundred eighty-seven thousand five hundred dollars (or are between one hundred seventy-five thousand dollars and one hundred eighty-seven thousand five hundred dollars but the contract is not awarded pursuant to subsection (C)(3) of this section), and if the public works director elects to rebid the project, the project must be rebid using the formal bidding procedures set forth in Section 1.54.440. The dollar amounts specified in this subsection (C)(4) are effective as of March 5, 2013, but shall automatically be adjusted to correspond to subsequent adjustments made by the CUCCAC or by the amendment of California Public Contract Code Section 22034(f).

Execution of Contract. Any contract awarded pursuant to this section shall be executed by city manager or his/her designee.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 4, 5-14-2013)

§ 1.54.460 Performance of contracts for less than forty-five thousand dollars (or such other amount as may hereafter be established by state law) pertaining to public projects and certain other construction-related activities.

Any "public project," and, at the city's discretion, any "maintenance work" (as those terms are defined in Sections 1.54.020, 1.54.440 and 1.54.450) or any other work which does not fall within the definition of "public project" as defined in the Uniform Public Construction Cost Accounting Act, having a contract price or estimated cost at or below the threshold amount established by the California Uniform Construction Cost Accounting Commission ("CUCCAC"), may, at the direction of the public works director, be performed in any of the ways set forth below without any formal or informal bidding procedure. As of March 5, 2013, that threshold amount was forty-five thousand dollars, but in accordance with Section 1.54.030, the threshold amount for purposes of this section will automatically be increased or decreased to correspond with changes established by the CUCCAC. In determining the applicability of this section, the city shall rely on the threshold amount published by the CUCCAC on its website (www.sco.ca.gov/ard_cuccac) or otherwise disclosed to the city by the CUCCAC:

By force account using employees of the city;

By purchase order pursuant to Sections 1.54.110 through 1.54.230; or

By a negotiated contract which the public works director negotiates on the city's behalf and which is executed by the city manager or his or her designee.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 5, 5-14-2013)

§ 1.54.470 Exceptions to bidding requirements for public projects, maintenance work, and similar construction-related activities in case of emergencies.

In case of emergency when repair or replacements are necessary, the city may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the public works director, by contractor, or by a combination of the two. In any such emergency, if notice for bids will not be given, the city shall comply with the procedures in Public Contract Code Section 22050 (Emergency Contracting Procedures). These procedures require, before any emergency action is taken, that the city council authorize the action by a four-fifths vote and make a finding based on substantial evidence that: (a) the emergency will not permit a delay resulting from the competitive solicitation for bids; and (b) the action is necessary to respond to the emergency. The city council must also review the action at every regular meeting until the action is terminated to determine, by a four-fifths vote, that there is a need to continue the action.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.475 Rejection of bids.

The city has the absolute right, in its sole discretion, to reject all bids submitted pursuant to Sections 1.54.440 and 1.54.450 of this chapter.

If, after the first invitation for bids under Section 1.54.440 or 1.54.450 of this chapter, all bids are rejected, the city may, after reevaluating its cost estimates of the project, either:

Abandon the project;

Readvertise for bids pursuant to Section 1.54.440 or 1.54.450 of this chapter; or

Subject to subsection C of this section, by passage of a resolution by a four-fifths vote of the city council declaring that the project can be performed more economically by the employees of the public agency, cause the project to be performed by force account without further complying with Sections 1.54.410 through 1.54.490 of this chapter.

Prior to taking the actions set forth in subsection (B)(3) of this section, the city shall furnish a written notice to the apparent low bidder. The notice shall inform the bidder of the city's intent to reject the bid, and shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.480 Tie bids.

If two or more bids are the same and the lowest, the public works director (in the case of bids received pursuant to Section 1.54.450 of this chapter) or the city council (in the case of bids received pursuant to Section 1.54.440 of this chapter) may in his, her or its discretion, award the contract to either of the lowest bidders pursuant to Public Contract Code Section 22038(b).

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.485 Performance of public projects and maintenance work when no bids are received.

If a project is put out to bid pursuant to the formal or informal bid procedures of Section 1.54.440 or 1.54.450 of this chapter and no bids are received through those formal or informal procedures, then pursuant to Public Contract Code Section 22038(c) the project may be performed (without any further formal or informal bidding procedures) in either of the following ways:

By force account using employees of the city; or

Under a negotiated contract which the public works director negotiates on the city's behalf and which is executed by the purchasing supervisor pursuant to the procedures, conditions and restrictions set forth in Sections 1.54.110 through 1.54.140 of this chapter.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.486 Procedures for entering into maintenance contracts where no public bidding is required.

Where the city proposes to enter into a contract for "maintenance work" as that term is defined in Public Contract Code Section 22002(d) and in Sections 1.54.440 and 1.54.450, such work does not constitute a "public project" and need not be bid pursuant to the provisions of said Sections 1.54.440 and 1.54.450. In such cases, the public works director shall utilize one of the following procedures for recommending to the city council the person or entity to whom the maintenance contract shall be awarded:

Contracts of Five Thousand Dollars or Less. Contracts in amounts of five thousand dollars or less shall be entered into pursuant to the provisions of Sections 1.54.320(A) and 1.54.330 to the extent those apply.

Informal Request for Proposals for Contracts between Five Thousand Dollars and Twenty-Five Thousand Dollars. For contracts in amounts greater than five thousand dollars but not more than twenty-five thousand dollars, the city manager, public works director, or person designated by either of those two city officers shall contact (in person, by telephone or in writing) a minimum of three maintenance providers, provide them with information regarding the maintenance project to the extent the said manager, director or designee deems necessary, and obtain information from those providers regarding their qualifications and the amount they would charge to perform the maintenance services. The city manager, public works director, or person designated by either of those two city officers shall also negotiate the terms of the proposed contract with one or more of those prospective maintenance providers. The city manager, public works director, or person designated by either of those two city officers shall take into account not only the price offered by the proposers but also their qualifications and any other relevant criteria. The city manager, public works director, or person designated by either of those two city officers may, but need not, recommend to the city council that the contract be awarded to the person or entity offering to perform the services for the lowest cost. The city council may, but need not, award the contract to the person or entity offering to perform the services for the lowest cost.

Formal Request for Proposals for Contracts Greater than Twenty-Five Thousand Dollars. For contracts in amounts greater than twenty-five thousand dollars, the city manager, public works director, or person designated by either of those two city officers shall issue a formal request for proposals. That request shall describe the maintenance work in general terms, shall describe how to obtain more detailed information about the project, shall state the time for submission of sealed proposals, and shall require all such proposals to be submitted to the city clerk's office (to the attention of the department director requesting such proposal). The request for proposal shall also invite the proposers to provide information as to their qualifications for the maintenance work that is the subject of the request, and to indicate the price for which the proposers would perform that maintenance work. The request shall also contain any other information or requests which the city manager, public works director, or person designated by either of those two city officers deems relevant. No specific procedures for distributing the request for proposals or notice inviting proposals need to be followed, but at a minimum (a) the cover page of, or other notice generally describing, the request for proposals or notice inviting proposals shall be published at least once in a newspaper of general circulation in the city not less than two weeks prior to the opening of the proposal, and (b) the city manager, public works director, or person designated by either of those two city officers shall advertise, publicize or otherwise distribute the request in a manner reasonably likely to cause an adequate number of responses to be returned to the city. A full copy of the request for proposals or notice inviting proposals, in hard copy or electronic form, shall be provided to any prospective proposer upon request. The city manager, public works director, or person designated by either of those two city officers may, but need not, recommend to the city council that the contract be awarded to the person or entity offering to perform the services for the lowest cost. The city council may, but need not, award the contract to the person or entity offering to perform the services for the lowest cost.

Formal or Informal Bidding. Notwithstanding anything to the contrary set forth in subsections (A), (B) and (C) of this section, the public works director may, but need not, elect not to use the procedures discussed in those paragraphs and instead bid the maintenance work using the formal or informal bidding procedures established by Sections 1.54.440 and 1.54.450.

(Ord. 2302 § 6, 5-14-2013)

§ 1.54.490 Bid bonds, performance bonds, and payment bonds.

Bidder's Security Bonds. When deemed necessary or appropriate by the public works director, bidders' security may be prescribed in the notice inviting bids issued pursuant to Section 1.54.440 or 1.54.450 of this chapter. Bidders shall be entitled to return of bid security; provided that a successful bidder shall forfeit its bid security upon refusal or failure to execute the contract within twenty days after the notice of award of contract has been mailed, unless the city is responsible for delay. The city manager or any other person designated in writing by the city manager (in the case of bids received pursuant to Section 1.54.450 of this chapter) or the city council (in the case of bids received pursuant to Section 1.54.440 of this chapter) may, on refusal or failure of the successful bidder to execute the contract, award the contract to next lowest responsive and responsible bidder. If the director or city council so awards the contract to the next lowest bidder, then the amount of the lowest bidder's security shall be applied to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

Performance and Payment (Material) Bonds. The public works director shall have the authority to require a performance and/or material bond as a condition to the award of any contract pursuant to Section 1.54.440 or 1.54.450 of this chapter. The amount of any such bond for contracts less than one hundred thousand dollars shall be in such amount that the public works director determines to be reasonably necessary to protect the best interest of the city. The amount of any such bond for contracts equal to or greater than one hundred thousand dollars shall be one hundred percent of the contract amount. If a performance bond and/or material bond are required, the form and amount of the bond may be described in the notice inviting bids and/or in any of the other bidding documents.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.510 Exemptions from formal and informal bidding procedures.

Notwithstanding any provision of this chapter to the contrary, the formal and informal bidding procedures and other requirements established by Sections 1.54.310 through 1.54.490 of this chapter may be dispensed within any of the following instances:

When the supplies, equipment or services to be purchased are both: (a) available from only one source, and (b) unique because of; (i) their quality, (ii) their durability, (iii) their safety features, components or attributes, (iv) their fitness for a particular use, or (v) their ability to satisfy the city's need for standardization of supplies, equipment or services;

When an emergency, as determined by the director of finance and confirmed by the city manager, requires that the purchase be completed within a period of time which will not permit formal bidding or informal quotation procedures;

When a piggyback contract is available under which:

Competitive bid procedures have already been utilized, such as in purchasing from the federal, California State or county governments, including state of California and agencies of counties, cities and special districts in the state of California, and

The supplies, equipment or services are supplied to the city under the piggyback contract at the same or better price, as was obtained by the vendor, through the federal, state of California agencies and the agencies of counties, cities and special districts in the state of California using the competitive bid procedures.

When cooperative purchasing is available;

When competition for formal bids does not exist (which might occur, for example, with respect to fees and costs related to membership in professional organizations, participation in meetings or conventions, travel, advertising, public utilities, and proprietary items of original equipment manufacturers and/or their authorized exclusive distributors);

When the director of finance determines, with the concurrence of the city manager, that due to the nature of the supplies, equipment or services, formal bidding is not likely to result in the lowest price;

When a purchase by the city is from a vendor who, within the past twelve months, has offered to provide the city with such supplies, equipment or services on the same terms, conditions and prices;

When the purchase is for a component for a system or equipment previously acquired by the city, and is necessary to repair, maintain, or improve the city's utilization of the system or equipment; or

When the purchase of goods or services is made pursuant to a contract with the county of Los Angeles or any other city, county, regional, state or federal governmental entity by the authority granted under Article 11, Section 8 of the State Constitution, under Government Code Sections 8630—8634, 51300—51308, 54983, 55000—55004, 55600—55609, 55631—55634, any other provision of the California Government Code, or any other applicable state or federal law.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.610 Approval of modifications and change orders.

Any contract executed on behalf of the city for the purchase of equipment or supplies, for the retention of professional or other services, for any public project, for maintenance work, or for any other items or services acquired pursuant to this chapter, may be modified at any time after its effective date pursuant to the terms of this section.

The modification may add to, delete from, or revise any item in such contract (including, without limitation, plans and specifications, extra work, and change orders) relating to the nature or quantity of services, equipment, supplies or work.

Except where additional approvals are required under subsection (D) or (E) of this section, the modification may, without any further city council action, be authorized and/or executed by the following persons:

By the city manager or public works director, as to all city contracts pertaining to public works, parks, and/or park facilities;

By the city manager or finance director, with respect to all city contracts other than those identified in subsection (C)(1) of this section (and by the city's purchasing supervisor to the extent specified in subsection (D) of this section); and

By any other city officer or employee who was authorized by the city council, at the time the contract was originally approved or awarded, to sign the contract or any documents related thereto or any modifications thereof.

With respect to any contract executed on behalf of the city by the purchasing supervisor and/or the finance director pursuant to Section 1.54.320, city council approval shall not be required before entering into any modification which (individually or together with any previous modification) increases the total amount of the city's obligations under the contract to an amount less than fifty thousand dollars; provided, that the following conditions are met:

Where the modification (individually or together with any previous modification) will result in a total contract amount less than or equal to ten thousand dollars, the modification shall be executed by the purchasing supervisor.

Where the modification (individually or together with any previous modification) will result in a total contract amount greater than ten thousand dollars but less than fifty thousand dollars, the modification shall be executed by the purchasing supervisor and approved in writing by the finance director.

Except as noted in subsection (D) or (F) of this section, city council approval shall be required before entering into any modification of any contract having an original contract amount equal to or greater than fifty thousand dollars which modification (individually or together with any previous modification) increases the total amount of the city's obligations by more than the following amounts:

The higher of (a) fifty thousand dollars or twenty percent of the original contract price, whichever is less, in the case of a contract having an original contract price of one million dollars or less, or (b) any amount approved by the city council for the supplies, services or project which is the subject of the contract;

The higher of (a) one hundred thousand dollars, in the case of a contract having an original contract price in excess of one million dollars, or (b) any amount approved by the city council for the supplies, services or project which is the subject of the contract.

Notwithstanding subsections (D) and (E) of this section, city council approval shall not be a prerequisite to approval or execution of any modification if the person approving or executing the modification reasonably determines that seeking and obtaining such advance city council approval will cause a delay that will either: (a) subject the city to liability for damages incurred by a contractor, (b) jeopardize the public health, welfare or safety, or (c) otherwise result in potential detriment to the city. If any person authorizes and/or executes such a modification without city council approval pursuant to this section, then that person (or his or her designee) shall, at the next regularly scheduled city council meeting, report to the city council as to the nature and extent of the modification and as to the facts which justified approval or execution of the modification without city council approval.

(Ord. 2191 § 1 (part), 3-9-2005; Ord. 2302 § 7, 5-14-2013)

§ 1.54.710 Purpose of recycling ordinance.

The purpose of Sections 1.54.710 through 1.54.750 of this chapter is to promote city support for the purchase of recycled and environmentally-preferred products, to minimize the environmental impacts relating to city operations, and to develop markets for recycled material.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.720 Definitions used in recycling ordinance.

As used in Sections 1.54.710 through 1.54.750 of this chapter, the following definitions shall apply:

"Environmentally preferable products"

mean product that have a lesser impact on human health and the environment when compared with competing products. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operating and disposal of the product.

"Practicable"

means sufficient in performance and available at a reasonably competitive price relative to market and other conditions.

"Recycled products"

mean products manufactured with waste material that has been recovered from the waste stream. Recycled material may be derived from post-consumer waste (material that has served its intended end-use and been discarded by a final consumer), industrial scrap, manufacturing waste and/or other waste that otherwise would not have been utilized.

"Recycling"

means the process of collecting, sorting, treating, cleansing, and reconstituting materials that would otherwise become solid waste, and returning them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used in the marketplace.

"Waste prevention"

means the action taken by an individual or organization to eliminate or reduce the amount or toxicity of materials before they enter the municipal solid waste stream. This action is intended to conserve resources, promote efficiency, and reduce pollution.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.730 City department responsibility relative to recycling.

Policy Intent. All city departments shall adopt and promote the use of recycled/recyclable supplies and materials as a city priority. In doing so, the city shall:

Encourage waste prevention, recycling, market development and use of recycled/recyclable materials through lease agreements, contractual relationships, and purchasing practices with vendors, contractors, businesses and other governmental agencies;

Adopt waste prevention, recycling, and use of recycled supplies/materials as a city priority;

Generate less waste material by reviewing how supplies, materials and equipment are manufactured, purchased, packaged, delivered, used, and disposed;

All city staff will specify recycled and environmentally preferable products whenever practical and possible;

The purchasing division of the city's department of finance shall solicit the use of recycled and other environmentally preferred products in its procurement documents as appropriate. The purchasing supervisor shall have the authority to make all final decisions relative to the acquisition of materials under this policy.

City-Sponsored Projects. All city-sponsored construction, demolition, and renovation projects shall be considered "covered projects" for the purpose of Sections 1.54.710 through 1.54.750 of this chapter.

Compliance as a Condition of Approval. Compliance with the provisions of these Sections 1.54.710 through 1.54.750 of this chapter shall be listed as a condition of approval on any building or demolition permit issued for a covered project.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.740 Waste prevention practices.

City staff is encouraged to reduce their consumption of resources by incorporating the following practices into their daily activities:

Consider durability and repair of products prior to acquisition;

Conduct routine maintenance on products/equipment to extend the useful life;

Use duplex features on laser printers and copiers and specify duplex on print jobs;

Send and store information electronically when possible;

Review record retention policies that further the goals of this section.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.750 Exemption of recycling plan.

Nothing in these Sections 1.54.710 through 1.54.750 of this chapter shall be construed as requiring a purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, or are otherwise not available at reasonable prices and terms, in a reasonable period of time.

(Ord. 2191 § 1 (part), 3-9-2005)

§ 1.54.810 Disposition of obsolete and surplus property.

Each customer shall submit to the purchasing supervisor, at least annually, a report describing all supplies, equipment, materials, fixtures, and other personal property of the city in the customer's custody which is deemed by that customer to be surplus or to have become obsolete or unserviceable.

Subject to subsection F of this section, the purchasing supervisor, with the approval of the city manager, is authorized to sell or exchange any and all such surplus, obsolete or unserviceable items, as well as any city-owned items for which replacements are to be purchased, if the purchasing supervisor determines that such items have any salvage value. The purchasing supervisor may sell the same for the best price obtainable in the open market, or, when deemed advisable by the purchasing supervisor, to the highest bidder at a public sale. The purchasing supervisor may also, in his or her discretion, exchange the same for other property or for credit or trade-in on other property.

If the purchasing supervisor determines that any such obsolete, unserviceable, or surplus property has no salvage value, it may be disposed of, with the approval of the city manager, through sale, donation, or disposal as refuse.

All items sold pursuant to this section shall be paid for in cash or by certified check or money order payable to the city.

The purchasing supervisor shall be authorized, with the approval of the city manager, to sign bills of sale and any other documents evidencing the transfer of title to such property by and on behalf of the city.

Prior to disposing of any property pursuant to this section having an estimated market value in excess of one thousand dollars, the purchasing supervisor shall inform the city council of the nature of the property proposed for disposition and the proposed sales price. Such disposition shall be subject to the city council's prior approval.

(Ord. 2191 § 1 (part), 3-9-2005)