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ORDINANCE 1506 ORDINANCE NO. 1506 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTER 1-7C REGARDING INFORMAL BIDDING OF PUBLIC WORKS PROJECTS. The City Council of the city of El Segundo does ordain as follows: SECTION 1: The City Council finds and determines as follows: A. On January 17, 2006, the City Council adopted Resolution No. 4449 wherein the City elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code §§ 22000, et seq.) for purposes of contracting "maintenance work" as defined in Public Contract Code § 22002(d). B. By Resolution No. 4911 adopted April 7, 2015, the City Council elected to become subject to the Uniform Public Construction Cost Accounting Act for purposes of all "public projects" as defined therein. C. The City would like to take advantage of the informal bidding procedures set forth in the Act as they apply to "public projects" as defined in Public Contract Code § 22002(c). D. It is in the public interest to make the informal bidding procedures applicable to public projects to ensure faster processing time, greater efficiency, and maximum cost savings in the letting of public works contracts. E. In the interests of efficiency and ensuring quicker procurement time for smaller public works projects and related contracts, it is necessary to increase the City Manager's discretionary authority to solicit bids and award contracts without prior City Council approval. F. In the interest of ensuring efficiency and maximum cost savings for smaller public works projects, it is necessary to raise the cost threshold for requiring bid security in conjunction with such projects while still preserving the city manager's discretion to require bid security whenever the director believes such security is needed to protect the City's interests. SECTION 2: El Segundo Municipal Code ("ESMC") § 1-7C-3 is amended to read as follows: ORDINANCE No. 1506 Page 2 of 4 "1-7C-3: DEFINTIONS: Unless the contrary is stated or clearly appears from the context, the definitions in Public Contract Code § 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." SECTION 3: ESMC § 1-7C-4-is amended to read as follows: "1-7C-4: SOLICITING BIDS AND AWARDING CONTRACTS: The city manager may solicit bids, award contracts, and execute contracts for public projects up to forty-five thousand dollars ($45,000). Contracts for public projects costing more than forty-five thousand dollars ($45,000) must be awarded by the city council." SECTION 4: ESMC § 1-7C-7 is amended 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 forty-five thousand dollars ($45,000). 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 forty-five thousand dollars ($45,000) or less when the city manager believes such security is needed to protect the city's interests. B. Bid security must equal at least ten percent (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 5: Section 1-7C-11 is hereby added to Chapter 1-7C of the ESMC to read as follows: ORDINANCE No. 1506 Page 3 of 4 "1-7C-11: DESIGN APPROVAL: The Public Works Director is authorized to approve designs for purposes of design immunity pursuant to Government Code section 830.6. Nothing in this Section is intended to, nor will it, preclude the City Council from separately or additionally approving designs for purposes of design immunity pursuant to Government Code section 830.6." SECTION 6: Environmental Review. This ordinance is exempt from additional environmental review under the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA regulations (14 California Code of Regulations §§ 15000, et seq.) because it establishes rules and procedures to permit operation of existing facilities; consists only of minor revisions and clarifications to existing regulations and specification of procedures related thereto; and consists of actions taken to assure the maintenance, protection and enhancement of the environment. This ordinance, therefore, does not have the potential to cause significant effects on the environment. Consequently, it is categorically exempt from further CEQA review under 14 Cal. Code Regs. §§ 15301, 15305, and 15308. SECTION 7: Construction. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 8: Enforceability. Repeal of any provision of the ESMC 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 0: Validity of Previous Code Sections. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal or amendment of the ESMC or other city ordinance by this Ordinance will be rendered void and cause such previous ESMC provision or other the city ordinance to remain in full force and effect for all purposes. SECTION 10: 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 provisions or applications and, to this end, the provisions of this Ordinance are severable. SECTION 11: The City Clerk is directed to certify the passage and adoption of this Ordinance, cause it to be entered into the city of El Segundo's book or original ordinances, make a note of the passage and adoption in the records of this meeting, and, within fifteen days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. ORDINANCE No. 1506 Page 4 of 4 SECTION 12: This Ordinance will take effect on the 31St day following its final passage and adoption. PASSED, APPROVED, AND ADOPTED ORDINANCE No. 1506 on this 21St day of April, 2015 wine Fuentes, Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Sherrill Weaver, 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. 1506 was duly introduced by said City Council at a regular meeting held on the 7th day of April 2015, 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 21St day of April 2015, and the same was so passed and adopted by the following vote: AYES: Mayor Fuentes, Mayor Pro Tern Jacobson, Council Member Atkinson, Council Member Fellhauer, and Council Member Dugan NOES: None ABSENT: None ABSTAIN: None i'& TracySheri Weaver, City Clerk APPROVED AS TO FORM: Mark . Hensley,e Attorney