ORDINANCE 1667ORDINANCE NO. 1667
AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE
CHAPTERS 1-7 AND 1-7C TO AMEND THE CITY'S PURCHASING
CODE TO INCORPORATE FEDERAL REQUIREMENTS FOR METHODS
OF PROCUREMENT AND UPDATE PUBLIC PROJECT BIDDING
REQUIREMENTS AND COST THRESHOLDS UNDER THE UNIFORM
PUBLIC CONSTRUCTION COST ACCOUNTING ACT
The City Council of the City of El Segundo does ordain as follows:
SECTION 1. The City Council finds and determines as follows:
A. City procurement requirements for public works projects are set forth in El
Segundo Municipal Code ("ESMC") Title 1 (Administration and Personnel)
Chapter 7C (Public Works Contracts).
B. Specifically, ESMC Chapter 1-713 implements the Uniform Public
Construction Cost Accounting Act.
C. The California Legislature enacted the Uniform Public Construction Cost
Accounting Act (UPCCA) in 1983 to help promote "uniformity of the cost
accounting standards and bidding procedures on construction work
performed or contracted by public entities in the state" (Pub. Contract
Code §22001.)
D. The UPCCA is a voluntary program available to all public entities in the
state, but it applies only to those public agencies that have "opted in" to
the provisions set forth by the Act using the processes outlined in the
legislation. El Segundo first opted into the UPCCA in 2006.
E. The California Legislature periodically increases monetary thresholds for
the UPCCA's varied procurement procedures (i.e., no bidding, informal
bidding, and formal bidding) to facilitate construction and development,
and the City seeks to adopt the recent increased thresholds to account for
increases in inflation.
F. On January 1, 2025, Assembly Bill 2192 (Carrillo) became law; the bill
increased the alternative bidding requirement thresholds for public
projects subject to the UPCCA, for example, the threshold for public
projects that may be performed by employees of the public agency by
force account, by negotiated contract, or by purchase order has been
increased from $60,000 to $75,000.
G. The City Council desires to amend the City's Code to update and establish
the thresholds for bidding requirements and procedures relating to public
projects under the Uniform Public Construction Cost Accounting Act as
they have been revised by the passage of Assembly Bill 2192.
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H. The City Council also seeks to amend ESMC Title 1 (Administration and
Personnel) Chapters 7(Purchasing) to incorporate federal procurement
thresholds for micro -purchases and small purchases, as recommended as
part of a major federal award program audit (2 CFR § 200.320).
SECTION 2. Section 1-7-6 of Chapter 7 (Purchasing) of Title 1 (Administration and
Personnel) of the ESMC is amended in its entirety to read as follows:
1-7-6: PURCHASING SUMMARY:
The purchase of supplies or services are subject to the following
requirements, unless such purchase is otherwise exempt pursuant to
section 1-7-9 of this code:
Amount of
Bidding
Purchase
Contract
Approval
purchase
process
order
required?
Authority
required?
required?
$5,000
None
Yes, if
City
or
required.
No
procurement
Manager,
Less
May be
of services;
Department
purchased
otherwise, no
Director or
on open
Department
market
Manager
/direct
negotiated
contract
Above
None
r
City Manager
C ge
$5,000
required.
Yes
Yes
or
to
May be
Department
$10,000
purchased
Director
on open
market /
direct
negotiated
contract
Above
Informal
City Manager
$10,000
bidding
Yes
Yes
or
to
Department
$25,000
Director
Above
Informal
$25,000
bidding
Yes
Yes
City Manager
to
$50,000
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Amount of Bidding Purchase Contract Approval
purchase process order required? Authority
12 required? required?
Formal
Above bidding Yes Yes City Council
$50, 000
1 For purchases of supplies, the dollar amounts listed above apply to the purchase of a
single item or bulk purchase of an item. For the procurement of services, the dollar amounts
listed above apply to the amount paid per contract, per fiscal year.
2 If procuring property or services under a federal award, only micro -purchases as defined
by 2 CFR § 200.1 may be awarded without soliciting competitive quotations if the City
considers the price to be reasonable. To the extent practicable, the City must distribute
micro -purchases equitably among qualified suppliers (2 CFR § 200.320.)
SECTION 3. Section 1-7C-1 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-1: PURPOSE:
This chapter is adopted pursuant to the City's police powers and California Public
Contract Code section 22034, and any succeeding or related statutes, for the
purpose of implementing the alternative bid procedures set forth in the Uniform
Public Construction Cost Accounting Act.
SECTION 4. Section 1-7C-3 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-3: DEFINITIONS:
Unless the contrary is stated or clearly appears from the context, the definitions
in Public Contract Code section 22002 and set forth below will govern the
construction of the words and phrases used in this chapter:
CITY MANAGER: The City Manager or designee.
FACILITY: Any plant, building, structure, ground facility, utility system (subject to
the limitations found in subsection (2) of the definition of "public project" below),
real property, streets and highways, or other public work improvement.
MAINTENANCE WORK: Includes all of the following:
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(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 streets and highways at less than one inch.
(4) Landscape maintenance, including mowing, watering, trimming, pruning,
planting, replacement of plants, and servicing of irrigation and sprinkler
systems.
(5) Work performed to keep, operate, and maintain publicly owned water, power,
or waste disposal systems, including, but not limited to, dams, reservoirs,
powerplants, and electrical transmission lines of 230,000 volts and higher.
PUBLIC PROJECT: Means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement,
demolition, installation, and repair work involving any publicly owned, leased,
or operated facility.
(2) In the case of a publicly owned electric utility system, a "public project" shall
include only the construction, erection, improvement, or repair of dams,
reservoirs, powerplants, and electrical transmission lines of 230,000 volts and
higher.
Note: "Public project" does not include maintenance work.
SECTION 5. Section 1-7C-4 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-4: SOLICITING BIDS AND AWARDING CONTRACTS:
A. Public projects of $75,000 or less may be performed by the employees of a
public agency by force account, by negotiated contract, or by purchase order.
B. Public projects of $220,000 or less may be let to contract by informal
procedures.
a. If all bids received are in excess of $220,000, the city council may, by
adoption of a resolution by a four -fifths vote, award the contract, at
$235,000 or less, to the lowest responsible bidder, if it determines the
cost estimate of the city was reasonable.
C. Public projects of more than $220,000 shall be let to contract by formal
bidding procedures.
The City Manager may solicit bids, award contracts, and execute contracts for
public projects up to $75,000. Contracts for public projects costing more than
$75,000 must be awarded by the City Council.
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SECTION 6. Section 1-7C-7 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-7: BID SECURITY:
A. Bid security is required for all bids on public projects when the City Manager
estimates that the price will exceed $25,000. Bid security may be a bond
issued by a licensed and duly qualified corporate surety, or the equivalent in
cash, money order, cashier's check, certified check, unconditional letter of
credit, or other form approved by the City Attorney. Nothing in this section
prevents the City from requiring bid security on public projects of $25,000 or
less when the City Manager believes such security is needed to protect the
City's interests.
B. Bid security must equal at least 10% of the bid amount.
C. If the notice inviting bids requires a bid security, noncompliance or defective,
inadequate, or incomplete security will render the bid nonresponsive.
D. Bid security will be forfeited or paid to the City should the bidder fail to
execute a contract within the time specified in the notice inviting bids.
SECTION 7. Section 1-7C-9 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-9: AWARD:
A. The contract may be awarded to the lowest responsible bidder if the City
Manager or City Council considers the bid to be reasonable, sufficient funds
are appropriated for the public project, and the bid is within the limits specified
by Public Contract Code section 22032(b) or, if applicable, Public Contract
Code section 22020.
B. Nothing in this section restricts the city from taking any action set forth in
Public Contract Code section 22038.
SECTION 8. Section 1-7C-12 of Chapter 7C (Public Works Contracts) of Title 1
(Administration and Personnel) of the ESMC is amended in its entirety to read as
follows:
1-7C-12: EMERGENCY:
In cases of emergency when repair or replacements are necessary, the city
council may proceed at once to replace or repair any public facility without
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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 city council, by contractor, or by a combination of the two.
If notice for bids to let contracts will not be given in case of an emergency, the
city shall comply with the emergency contracting procedures set forth in Public
Contract Code Section 22050.
SECTION 9. Environmental Assessment. The City Council finds that this Ordinance is
not subject to the California Environmental Quality Act ("CEQA"), pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly. In the alternative, the City Council finds that the
Ordinance falls within the "common sense" exemption set forth in State CEQA
Guidelines section 15061, subdivision (b)(3), which exempts activity from CEQA where
"it can be seen with certainty that there is no possibility that the activity in question may
have a significant effect on the environment." Here, it can be seen with certainty that
there is no possibility that the Ordinance may have a significant effect on the
environment because the Ordinance simply updates procurement procedures and
requirements.
SECTION 10. Validity of Previous Code Sections. If the entire Ordinance or its
application is deemed invalid by a court of competent jurisdiction, any repeal of the
ESMC or other regulation by this Ordinance will be rendered void and cause such
ESMC provision or other regulation to remain in full force and effect for all purposes.
SECTIONS 11. Enforceability. Repeal or amendment of any previous Code Sections
does not affect any penalty, forfeiture, or liability incurred before, or preclude
prosecution and imposition of penalties for any violation occurring before this
Ordinance's effective date. Any such repealed part will remain in full force and effect for
sustaining action or prosecuting violations occurring before the effective date of this
Ordinance.
SECTION 12. Severability. If any part of this Ordinance or its application is deemed
invalid by a court of competent jurisdiction, the City Council intends that such invalidity
will not affect the effectiveness of the remaining provision or application and, to this end,
the provisions of this Ordinance are severable.
SECTION 133. The City Clerk, or her duly appointed deputy, is directed to certify the
passage and adoption of this Ordinance; cause it to be entered into the City of El
Segundo's book of original ordinances; make a note of the passage and adoption in the
records of this meeting; and, within 15 days after the passage and adoption of this
Ordinance, cause it to be published or posted in accordance with California law.
SECTION 14. Effective Date. This Ordinance will become effective 30 days following its
passage and adoption.
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PASSED AND ADOPTED this 4th day of February, 2025.
APPROVED AS TO FORM:
4
Mark Hensley, City Attorney
Chris Pimentel, Mayor
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO
I, Susan Truax, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Ordinance No. 1667 was duly introduced by said City Council at a regular meeting held
on the 21st day of January, 2025, and was duly passed and adopted by said City
Council, approved and signed by the Mayor, and attested to by the City Clerk, all at a
regular meeting of said Council held on the 4th day of February, 2025, and the same
was so passed and adopted by the following vote:
AYES Mayor Pimentel, Mayor Pro Tern Baldino, Council Member Giroux and
Council Member Keldorf
NOES: None
ABSENT: Council Member Boyles
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this 4t" day of February, 2025.
" Susan Trox, City Clerk
of the City of El Segundo,
California
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