ORDINANCE 1564 ORDINANCE NO. 1564
AN ORDINANCE OF THE CITY OF EL SEGUNDO AMENDING
CHAPTERS 7 AND 7A OF TITLE 1 OF THE EL SEGUNDO MUNICIPAL
CODE RELATING TO PURCHASING AND EXECUTION OF CONTRACTS
The Council of the City of EI Segundo does ordain as follows:
SECTION 1: Chapter 7 to Title 1 of the EI Segundo Municipal Code ("ESMC") is amended
in its entirety to read as follows;
"Chapter 7
PURCHASING
1-7-1 PURPOSE AND APPLICABILITY:
A. This chapter is adopted to authorize city officers to procure supplies, services
and professional services with city funds and to establish the manner by which such
actions may occur. Supplies, services and professional services for city departments
must be purchased in accordance with this chapter, those administrative regulations
promulgated pursuant to this chapter, and any additional regulations that the city
council may adopt.
B. Nothing in this chapter is intended to, nor does it, apply to:
1. Public works projects as defined by state law, which are subject to Chapter 1-
7C of this Code.
2. The procurement of services, supplies and equipment with non-city funds.
3. The employment of any person by the city at a regular salary.
4. The acquisition, disposal or lease of real property.
1-7-2 DEFINITIONS:
Unless the contrary is stated or clearly appears from the context, the following
definitions will govern the construction of the words and phrases used in this chapter:
CONTRACT: means a purchase order, contract, or professional services contract,
or any amendment thereto, as the context may dictate.
FORMAL BIDDING: means the process and requirements outlined in Section 1-7-8
of this Chapter.
INFORMAL BIDDING: means the process and requirements outlined in Section 1-
7-7 of this Chapter.
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PROFESSIONAL SERVICES: means services typically performed by professionals,
such as financial, economic, accounting, architectural, engineering, legal, personnel
training or administrative services, including but not limited to those described in
Government Code §§ 4526 and 53060.
PURCHASING OFFICER: means the City Manager or designee.
SERVICES: means general services to be provided to the City, such as the rental,
repair and maintenance of equipment, machinery and other personal property, but
not including professional services or any services related to a public works project.
SUPPLIES: means supplies and equipment.
1-7-3 PURCHASING OFFICER'S POWERS AND DUTIES:
In addition to those powers granted by applicable law, the purchasing officer has the
authority and duty to:
A. Purchase or contract for supplies, services and professional services;
B. Promulgate administrative rules and regulations to implement the purposes of
this chapter and as approved by the city manager;
C. Prescribe and maintain such forms as necessary for the proper operation of this
purchasing system;
D. Supervise the inspection of all supplies purchased under this chapter in order to
ensure conformance with city specifications;
E. Perform such other tasks as may be necessary for the proper conduct of
purchasing or procurement of supplies, services and professional services.
1-7-4 ENCUMBERING FUNDS:
Except in cases of emergency or as otherwise provided in this chapter, the
purchasing officer or department directors may not purchase supplies or procure any
services or professional services unless there is an unencumbered appropriation in
the fund account against which such purchase or procurement would be charged.
1-7-5 REQUISITIONS:
All city departments must submit to the purchasing officer requisitions for supplies,
services or professional services in excess of$5,000 per fiscal year for a single item
or bulk purchase of an item.
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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 1-7-10 of this Code:
Amount of Bidding Purchase Contract Approval
purchasel process order required? Authority
required? required?
$5,000 None Yes, if City
Or required. No. procurem Manager,
Less May be ent of Department
purchased services; director or
on open otherwise, Department
market/ no. manager.
$5,001 None City
to required. Yes. Yes. Manager or
$10,000 May be Department
purchased director.
on open
market/
$10,001 Informal City
to bidding Yes, Yes. manager or
$25,000 department
director
$25,001 Informal
to bidding Yes. Yes. City
$50,000 Manager
$50,001 Formal
and above bidding Yes. Yes. City Council
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.
1-7-7 INFORMAL BIDDING REQUIREMENTS:
As used in this Title, the term "informal bidding" refers to the following process and
requirements:
A. Purchases must, whenever possible, be based upon at least three (3) informal
bids or quotes and be awarded to the lowest responsible bidder.
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B. Bids must be written.
C. The purchasing officer or department directors may solicit such bids.
D. Bids may be evaluated based upon bid amount, compliance with bid
specifications, responsibility of the bidder, and any other reasonable matter identified
in the notice soliciting bids, this code, or any other rule or regulation promulgated to
implement this chapter.
E. If the city does not receive any bids or quotes, the purchasing officer may act as
follows, provided the requesting department concurs:
1. Abandon the purchase;
2. Rebid the purchase on an informal basis; or
3. Purchase the supplies or procure the services on a direct negotiated contract.
F. If the purchasing officer determines bids are unacceptably high, or specifications
were misleading, the purchasing officer may reject any bids presented and the item
may be rebid.
G. The purchasing officer may reject all bids or award the purchase contract to the
best qualified bidder whose bid or proposal fulfills the purpose intended according to
criteria designated in the solicitation, provided that the contract award amount is
within the unencumbered appropriation for that item. The purchasing officer may
waive any minor bid irregularities.
H. If a successful bidder refuses to comply with, or fails to execute, a contract issued
by the city within ten (10) calendar days after being awarded the contract, the
purchasing officer may cancel the award and retain any bid security. Compliance
with contract requirements includes, without limitation, submission of adequate and
complete insurance documentation. Should this occur, the purchasing officer may
award the contract to the next lowest responsible bidder.
1-7-8 FORMAL BIDDING (SEALED BIDS) REQUIREMENTS:
As used in this Title, the term "formal bidding" refers to the following process and
requirements:
A. A notice inviting formal bids must be posted at city hall and electronically mailed
or faxed at least ten (10) calendar days before the deadline for submitting bids to all
vendors on the city's list for the category of supplies or services being sought and to
such other vendors as the purchasing officer deems appropriate.
B. The notice inviting bids must describe the supplies or services needed in general
and generic terms, identify security required for the bid, how bid specifications can
be obtained, and designate the deadline and place for submitting formal bids.
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C. The purchasing officer may require bidders to secure bids and performance in a
manner approved by the purchasing officer and in a form approved by the city
attorney. Unsuccessful bidders are entitled to the return of bid security within sixty
(60) calendar days after the date of the award.
D. Bids must be submitted to the city clerk's office in a sealed envelope and be
clearly marked as a bid along with the bidder's name and project or bid number
written on the outside of the envelope. The city clerk's office will open properly
submitted bids at the time and place stated in the notice inviting bids. A written record
must be made at the time all bids are received and then opened.
E. Bids may be evaluated based upon bid amount, compliance with bid
specifications, responsibility of the bidder, and any other reasonable matter identified
in the notice soliciting bids, this code, or any other rule or regulation promulgated to
implement this chapter.
F. The department seeking the supplies or services will make a recommendation to
the city council regarding the award of a contract based upon the department's and
purchasing officer's evaluation.
G. If the city does not receive any bids, the city council may:
1. Abandon the purchase;
2. Authorize rebidding the purchase on either a formal or an informal basis; or
3. Authorize purchasing the supplies or procurement of services on a direct
negotiated contract.
H. The successful bidder is selected by the city council acting within its sole
discretion. The city council is under no obligation to contract with any bidder. If the
city council determines bids are unacceptably high, or specifications were
misleading, it may direct the purchasing officer to reject all bids presented and the
item may be rebid.
I. The city council may waive any minor bid irregularities.
J. If a successful bidder refuses to comply with, or fails to execute, a contract issued
by the city within ten (10) calendar days after being awarded the contract, the
purchasing officer may cancel the award and retain any bid security. Compliance
with contract requirements includes, without limitation, submission of adequate and
complete insurance documentation. Should this occur, the city council may award
the contract to the next lowest responsible bidder and the amount of the lowest
bidder's security shall be applied by the City to the difference between the lowest
and second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
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1-7-9 EXCEPTIONS TO THE BIDDING REQUIREMENTS:
When purchasing supplies and services, the procedures outlined in Sections 1-7-7
and 1-7-8 of this Code need not be followed in the following situations:
A. When the city council waives the purchasing procedures otherwise required by
this chapter when the city's best interests are served by a direct award of a contract
without a competitive selection process.
B. When the supplies or services are available from only one vendor as supported
by appropriate documentation.
C. When the purchasing officer identifies a cooperative competitive bidding
procedure, being prepared by and processed through another local, state, or federal
governmental agency. Under such circumstances, the purchasing officer may join
into an existing written purchase contract obtained within the last five (5) years
through a competitive bidding process prepared by and awarded by another local,
state or federal governmental agency. City council consent is required for such
purchases where the estimated value of the supplies is $50,000.00 or more for a
single item or bulk purchase of a single item.
D. When the city manager or acting city manager finds that there is an immediate
or imminent emergency or other exigent circumstance that threatens the city or the
city's interests, and such purchases are required for the immediate protection of
public health, safety, or welfare, or the city's interests. A declaration of emergency
as set forth in this code is conclusive evidence of such an event. In such an event,
the city manager or acting city manager may bind the city, with or without a written
contract,for the acquisition of equipment, materials, supplies, labor, services or other
items. The city manager or acting city manager must provide a report to the city
council as soon as practicable regarding such emergency purchases which sets forth
the circumstances requiring such action.
1-7-10 SEGMENTATION PROHIBITED:
It is unlawful to knowingly take action to separate purchases into smaller units or
segments solely for the purpose of evading the competitive formal or informal bidding
requirements set forth in this chapter.
1-7-11 INSPECTION:
The purchasing officer or department requesting the item shall inspect all deliveries
of supplies and equipment to assure conformance with the contract or order
specifications.
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1-7-12 BUSINESS LICENSE REQUIRED:
All vendors who provide on-site services or professional services to the City must
hold a valid City of EI Segundo business license and must be otherwise in
compliance with all requirements of this Code.
1-7-13 RECYCLED PRODUCTS:
Whenever practicable, the City will purchase and use recycled products and
recyclable goods. The City will place special emphasis on the purchase of products
manufactured with at least 20% post-consumer recycled materials. When faced with
a choice of two or more recycled content products, and the price between the
products is within 10% and the products are of comparable quality and availability,
the City will purchase the product with the greatest recycled content.
1-7-14 COMPETITIVE PROPOSALS:
Professional services should, whenever possible, be procured through competitive
proposal procedures, whereby competitors' qualifications are evaluated and the
most qualified competitor is selected. If this method is used, the following
requirements apply:
A. Requests for proposals (RFP) must be publicized;
B. All evaluation factors, along with their relative importance, must be identified and
included in the RFP;
C. The evaluation process may include the review of written proposals, panel
interviews, and reference checking;
D. Awards must be made to the responsible firm whose proposal is most
advantageous to the City, with price and all factors identified in the RFP considered."
SECTION 2: Chapter 7A to Title 1 of the ESMC is amended in its entirety to read as
follows:
"Chapter 7A
EXECUTION OF CONTRACTS
1-7A-1: PURPOSE AND APPLICABILITY:
A. This chapter is adopted pursuant to the city's general and specific contracting
powers and, without limitation, Government Code section 40602 for the purpose of
setting forth the requirements to bind the city by contract.
B. The provisions of this chapter do not apply to the employment of any person by
the city at a regular salary.
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1-7A-2: DEFINITIONS:
Unless the contrary is stated or clearly appears from the context, the definitions set
forth in Chapter 1-7 govern the construction of the words and phrases used in this
chapter.
1-7A-3: GENERALLY:
A. The city is not bound by any contract unless the contract is in writing, approved
as to form by the city attorney, and signed on behalf of the city by an officer or officers
as set forth in this chapter. Any such officer must sign a contract on the city's behalf
when directed to do so by the city council.
B. Unless otherwise provided in this code, a written contract is required to purchase
supplies or procure services on the city's behalf, regardless of the source of the
funds. The use of non-city funds, private funds, donated funds, or grant monies does
not alleviate the requirement of a written contract for the purchase of supplies or
procurement of services on the city's behalf.
1-7A-4: CITY COUNCIL AUTHORITY:
Unless otherwise provided in this code, a resolution, or ordinance, the city council
must approve all contracts and direct the mayor, or other officer, to sign a contract
on the city's behalf.
1-7A-5: SIGNATURE AUTHORITY:
In accordance with Government Code section 40602, the following officers are
authorized to sign contracts on the city's behalf:
A. The mayor;
B. The city manager when directed to do so by the city council, resolution,
ordinance, or any provision of this code;
C. The city manager, for contracts where the city is receiving or expending an
amount not in excess of $50,000.00 per fiscal year;
D. Department directors, for contracts where the city is receiving or expending an
amount not in excess of $25,000.00 per fiscal year;
E. Department managers, for contracts or amendments to contracts where the city
is receiving or expending an amount not in excess of $5,000.00 per fiscal year.
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1-7A-6: SEGMENTATION PROHIBITED:
It is unlawful to knowingly separate purchases or procurements into smaller units or
segments solely for the purpose of evading the signature authority thresholds set
forth in this chapter."
SECTION 3, Environmental Review. This ordinance is exempt from environmental review
under the California Environmental Quality Act (California Public Resources Code §§
21000, et seq., "CEQK) and CEQA regulations (14 California Code of Regulations §§
15000, et seq.) because it consists only of minor revisions and clarifications to existing
regulations. It does not portend any new development and does not relax existing
regulatory restrictions on future development. This ordinance, therefore, does not have the
potential to cause significant effects on the environment. Consequently, it is exempt from
CEQA review under 14 Cal. Code Regs. § 15061(b)(3).
SECTION 4: 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 5: 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 6: Enforceability. Repeal of any provision of the EI Segundo Municipal Code
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 7: 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 of original ordinances;
make a note of the passage and adoption in the records of this meeting; and, within fifteen
(15) days after the passage and adoption of this Ordinance, cause it to be published or
posted in accordance with California law.
SECTION 3: This Ordinance will become effective on the thirty-first (31st) day following its
passage and adoption.
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PASSED, APPROVED, AND ADOPTED ORDINANCE NO. 1564 THIS 19TH DAY OF
DECEMBER 2017.
A
#u z-laa kMF Fuentes,e s, Mayor
ATTEST:
Tracy eaver ity Clerk
APPROVED AS TO FORM:
Mark D. e orney
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Page 11 of 11
CERTIFICATION
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES Ss
CITY OF EL SEGUNDO
1, Tracy 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. 1564 was duly introduced by said City Council at a regular meeting held
on the 5th day of December 2017, 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 19th day of December, 2017, and the same was so
passed and adopted by the following vote:
AYES: Mayor Fuentes, Mayor Pro Tern Boyles, Council Member Brann, Council
Member Dugan, and Council Member Pirsztuk
NOES: None
ABSENT: None
ABSTAIN: None
WITNESS MY HAND THE OFFICIAL SEAL OF SAID CITY this day of January,
2018.
bUN'-WUeaLvejr, �City Clerk
Tra�
of the City of El Segundo,
California