ORD 431 ORDINANCE NO. 431
AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING
CHAPTER 2.44 GOVERNING THE PURCHASE OF SERVICES, SUPPLIES
AND EQUIPMENT AND AMENDING THE RANCHO PALOS VERDES
MUNICIPAL CODE.
THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by adding new Section 2.44.015 to Chapter 2.44 to read as follows:
"Section 2.44.015 Applicability.
The procedures set forth in this chapter shall not apply to contracts for `public
projects,' as defined in Section 22002 of the California Public Contract Code or any
successor statute, which are governed by the procedures set forth in the California
Public Contract Code."
Section 2. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by adding new Section 2.44.025 to Chapter 2.44 to read as follows:
"Section 2.44.025 Written contract requirements for services.
A. Written contract required. The provision of services of an estimated value
greater than twenty-five thousand dollars shall be by written contract awarded in
accordance with the procedures set forth in this chapter.
B. Special procedures. The following special procedures shall apply to the
provision of services:
(1) Performance of services on private property. Notwithstanding the
provisions of subsection A of this Section, where the provision of services requires the
service provider to perform work on private property, regardless of the dollar amount of
the proposed work, such services shall be by written contract — which shall include, but
not be limited to, insurance and indemnity requirements satisfactory to the city attorney—
awarded in accordance with the procedures set forth in this chapter.
(2) Protection of City. Notwithstanding the provisions of subsection A
of this Section, a written contract shall be required for the provision of services,
regardless of the dollar amount of the proposed services, if, in the opinion of the city
manager or department director, a written contract is necessary to protect the City from
increased liability that could arise from the performance of said services. Any written
contract required pursuant to this subsection shall include, but not be limited to,
insurance and indemnity requirements satisfactory to the city attorney."
Section 3. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.030 of Chapter 2.44 to read as follows:
"Section 2.44.030 Formal contract procedure.
A. Purchases of supplies and equipment and provision of services of an
estimated value greater than twenty-five thousand dollars shall be by written contract
with the bidder who, after notice, offers the city, as determined by the city council in its
sole discretion, the best combination of price and quality. For the purposes of this
chapter`notice' shall mean a notice inviting formal written competitive bids in accordance
with the provisions of this Section 2.44.030.
B. Any notice required by this section shall be published in a newspaper of
general circulation printed and published in the city, or if there is none then in a
newspaper serving the area. The city manager shall also mail a copy of such notice to
anyone who has requested to be so notified.
C. All notices required by this section shall be published, not less than ten
(10) days prior to the date specified for the opening of the bids.
D. When deemed necessary by the city manager, bidder's security may be
prescribed in the public notices inviting bids. Bidders shall be entitled to the return of bid
security provided that a successful bidder shall forfeit its bid security upon refusal or
failure to execute the contract within ten (10) days after the notice of award of contract
has been mailed. The time to sign the agreement before forfeiting the bidder' s security
shall be extended for delay caused by the city.
E. The city council shall award all bids under this section. On refusal or
failure of the successful bidder to execute the contract, the council may award the bid to
another bidder based upon the appropriate criteria provided in subsection A of this
section. If for that reason the council awards the contract to another bidder, the amount
of the first awardee' s security shall be applied by the city to the difference in the amount
of the bid between the first awardee and the second awardee, and the surplus, if any,
shall be returned to the first awardee.
F. Bids shall be submitted to the city manager and shall be so identified on
the envelope. Bids shall be submitted in writing and must be received prior to the bid
closing date to be considered. Bids shall be opened at the time and place specified in
the notice inviting sealed bids. The city clerk shall retain copies of all bids received by
the city manager and shall make said bids available for public inspection during regular
business hours for not less than two (2) years following the bid opening.
Notwithstanding the foregoing, bidder proprietary information shall not be available for
public inspection.
G. The council may reject any and all bids, waive any irregularity in any bid,
or re-advertise for bids.
H. If two or more bids received for supplies and equipment are for the same
total amount or unit price, the council may accept the bid it considers best meets the
needs of the city."
Section 4. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.040 of Chapter 2.44 to read as follows:
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Page 2of6
"Section 2.44.040 Open market procedure.
Provision of services or purchase of supplies and equipment of an estimated value of
twenty-five thousand dollars or less may be made by the city manager in the open
market without observing the formal bid procedure prescribed by Section 2.44.030, in
accordance with the following procedures:
A. The city manager may purchase services, supplies, and equipment of an
estimated value of twenty-five thousand dollars or less in the open market, provided
however:
(1) Purchases in excess of five thousand dollars but less than or
equal to twenty-five thousand dollars shall be based on at least three informal bids
solicited annually and shall be awarded as follows:
(I) Bids for the purchase of supplies and equipment shall be awarded to the
lowest responsible and responsive bidder as reflected in the informal
bids. The city manager may reject any and all bids, waive any irregularity
in any bid, or re-solicit bids.
(ii) Bids for services shall be awarded to the bidder who, after the informal
bid process, offers the city, as determined by the city manager in his or
her sole discretion, the best combination of price and quality.
(2) The provision of maintenance services of an estimated value of
twenty-five thousand dollars or less shall be by purchase order issued in accordance
with the procedures set forth in this chapter.
B. Informal Bid Defined. For the purposes of this chapter, `informal
bid' shall mean bids solicited by the city manager or his or her designee either by direct
mail request or orally by telephone. If a bidder provides a bid orally, the city manager or
his or her designee shall maintain written notes or documentation confirming the receipt
and content of such oral bids and shall require the bidder to provide a facsimile
transmission or other written documentation confirming the substance of the oral bid.
Copies of all written proposals received and the city manager's or his or her designee's
written documentation or notes confirming oral bids and the confirming documentation
provided by the bidder(s) shall be retained for public inspection during regular business
hours for not less than two (2) years after receipt. Notwithstanding the foregoing, vendor
proprietary data shall not be open for public inspection."
Section 5. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.060 of Chapter 2.44 to read as follows:
"Section 2.44.060 Exceptions to bid procedures.
The procurement of specific professional services such as contracts with attorneys,
architects, engineers, auditors, financial advisors, technology professionals,
geotechnical engineers, surveyors, geologists, or any other similar licensed professional,
or when the services contracted for deal with election service, public relations and
related activities; negotiations for or acquisition of land; insurance; bonds, negotiations
for or acquisition of land; insurance; bonds; or other services of a similar nature to those
listed may be made by the city council without following bid procedures."
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Page 3of6
Section 6. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.070 of Chapter 2.44 to read as follows:
"Section 2.44.070 Purchase orders.
A. All purchases of materials, supplies and services shall be by serially
numbered purchase orders authorized by the signature of the ordering department head
and the city manager or his or her designee. The following exceptions are allowed:
1. All purchases of less than five hundred dollars that are processed by
the presentation of an invoice acceptable to and approved by the
finance department.
2. Utility bills, rents and lease purchases.
3. Purchases made by credit cards authorized by the city council and
issued to those employees approved by the city manager, provided
such purchases conform to the written policy established by the city
manager or his or her designee. The customer' s copy of the invoice
shall be delivered to the director of finance for approval for payment.
4. Purchases of supplies and equipment over twenty-five thousand
dollars shall be by written contract in accordance with the provisions
of Section 2.44.025.
5. Purchases of services also shall conform to the applicable procedures
set forth in Section 2.44.025 of this chapter.
B. Multiple individual purchases not to exceed three thousand dollars each
may be on a single open purchase order. The city manager may authorize open
purchase orders for those vendors who are a convenient source of supply by reason of
economy, proximity, delivery, or quality of services. Multiple purchases may be made by
requisition on these purchase orders by any city department subject to the dollar
restriction placed on single purchases and the maximum multiple limitation of fifteen
thousand dollars per city fiscal year. Notwithstanding the foregoing, the city council may
authorize purchase orders with a maximum multiple limitation in excess of fifteen
thousand dollars. Purchases on an open monthly purchase order, or from central stores
when and if established by the city, shall be made by the individual authorized to make
such purchases utilizing a requisition form prescribed by the director of finance. The
requisition form shall be dated and signed or electronically approved through the City's
electronic purchasing software by the department head or an authorized representative.
The single purchase limitations set forth in this subparagraph (B) shall not apply to
purchase orders issued for ongoing services where the city manager or the city council,
as specified herein, have found that the use of a particular vendor to perform such
services is in the best interests of the city as provided in subparagraph (D) of Section
2.44.140 of this chapter."
Section 7. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.080 of Chapter 2.44 to read as follows:
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Page 4 of 6
"Section 2.44.080 Confirming purchase orders.
Emergency purchases required due to natural disasters or other unforeseen
circumstances may be made by a confirming purchase order if so noted on the purchase
order form. Prior approval must be given by the city manager, if available, or by the
assistant city manager if the city manager is absent."
Section 8. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.100 of Chapter 2.44 to read as follows:
"Section 2.44.100 Payment of invoices.
A. All invoices requiring a purchase order shall be submitted directly to the
department head by the supplier of the equipment, supplies or services. Each invoice
shall be dated and signed by the department head or his or her designee and submitted
to the director of finance for payment.
B. Payment disputes will be resolved by the director of finance."
Section 9. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.110 of Chapter 2.44 to read as follows:
"Section 2.44.110 Petty cash.
There is established a petty cash fund in the amount of two thousand five
hundred dollars administered under the supervision of the city manager, from which
cash disbursements may be made in an amount not to exceed fifty dollars.
Disbursements must be accompanied by an invoice in the amount of the request, signed
by the originator and approved by the department head. An invoice is not required for
auto mileage reimbursement, metered parking and any other requirement for which an
invoice cannot be expected."
Section 10. Title 2 of the Rancho Palos Verdes Municipal Code is
hereby amended by amending Section 2.44.140 of Chapter 2.44 to read as follows:
"Section 2.44.140 Exceptions.
Sections 2.44.030 and 2.44.040 shall not apply to the purchase of services,
supplies and equipment under any of the following circumstances:
A. The city manager finds that such services, supplies or equipment are
unique because of the quality, durability, availability, or fitness for a particular use and
are available from only one source;
B. The city manager finds that exigent circumstances require the immediate
purchase of such services, supplies or equipment;
C. The city council finds that due to the nature of the services, supplies or
equipment, bidding is not likely to retult in the lowest price; or
D. The city manager or the city council, as specified herein, determines that,
due to unique circumstances or unusual factors, the award for the purchase of services,
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Page 5of6
supplies or equipment from a source other than the lowest responsible bidder is in the
best interest of the city."
Section 11. The City Council declares that, should any provision,
section, paragraph, sentence, or word of this ordinance be rendered or declared invalid
by any final action in a court of competent jurisdiction, or by reason of any preemptive
legislation, the remaining provisions, sections, paragraphs, sentences and words of this
ordinance shall remain in full force and effect.
Section 12. The City Clerk shall cause this Ordinance to be posted in
three (3) public places in the City within fifteen (15) days after its passage, in accordance
with the provisions of Section 36933 of the Government Code. The City Clerk shall
further certify to the adoption and posting of this Ordinance, and shall cause this
Ordinance and its certification, together with proof of posting, to be entered in the Book
of Ordinances of the Council of this City.
Section 13. This Ordinance shall go into effect and be in full force and
effect at 12:01 a.m. on the thirty-first (31st) day after its passage.
PASSED, APPROVED, AND ADOPTED this 20th day of December 2005.
Mayor
Attest:
City C. rk
State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )
I, Carolynn Petru, City Clerk of the City of Rancho Palos Verdes, do hereby
certify that the whole number of members of the City Council of said City is five; that the
foregoing Ordinance No. 431 passed first reading on December 6, 2005, was duly and
regularly adopted by the City Council of said City at a regular meeting thereof held on
December 20, 2005, and that the same was passed and adopted by the following roll
call vote:
AYES: Clark, Gardiner, and Mayor Wolowicz
NOES: None
ABSENT: Long and Stern
ABSTAIN: None
City I E rk
Ordinance No. 431
Page 6of6
All
RANCHO PALOS VERDES
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS AFFIDAVIT OF POSTING
CITY OF RANCHO PALOS VERDES )
The undersigned, being first duly sworn, deposes and says:
That at all times herein mentioned, she was and now is the appointed City Clerk
of the City of Rancho Palos Verdes;
That on December 22, 2005, she caused to be posted the following document
entitled: ORDINANCE NO. 431 —AN ORDINANCE OF THE CITY OF RANCHO PALOS
VERDES AMENDING CHAPTER 2.44 GOVERNING THE PURCHASE OF SERVICES,
SUPPLIES AND EQUIPMENT AND AMENDING THE RANCHO PALOS VERDES
MUNICIPAL CODE, a copy of which is attached hereto, in the following locations:
City Hall Ladera Linda Community Center
30940 Hawthorne Blvd. 32201 Forrestal Drive
Rancho Palos Verdes Rancho Palos Verdes
Hesse Park
29301 Hawthorne Blvd.
Rancho Palos Verdes
I certify under penalty of perjury that the foregoing is a true and correct affidavit of
posting.
ity Clerk
W:\City Council Ordinances\affidavits\Ordinance 431 -Purchasing Ordinance.doc