Ordinance No. 1221ORDINANCE NO. 1221
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
VERNON AMENDING ARTICLE IV OF CHAPTER 2 OF THE
VERNON MUNICIPAL CODE AND REPEALING ALL ORDINANCES
OR PARTS OF ORDINANCES IN CONFLICT THEREWITH
WHEREAS, the City of Vernon (the "City") is a municipal
corporation and a chartered city of the State of California organized
and existing under its Charter and the Constitution of the State
California; and
WHEREAS, an open and transparent, competitive bidding and
purchasing process serves the interests of all of Vernon's
stakeholders and constituencies, including its citizen, corporate and
business residents, as well labor organizations and workers within
Vernon, all of whom deserve the highest quality of municipal services;
and
WHEREAS, the City is committed to ensuring that all
supplies, equipment, and services are secured through a process that
eliminates any form or favoritism or otherwise excludes qualified
providers from competing for contracts; and
WHEREAS, on December 18, 2012, the City Council adopted
Ordinance No. 1200 amending Article IV of Chapter 2 of the Vernon
Municipal Code, to enact the "Competitive Bidding and Purchasing
Ordinance"; and
WHEREAS, the City has identified revisions to the ordinance
that would improve efficiencies and accountability; and
WHEREAS, the City Council of the City of Vernon finds and
declares that the purpose and intent of this Ordinance is to (a)
establish processes which guard against favoritism and corruption in
the expenditure of public funds; (b) ensure that the City receives
optimum value for all taxpayer funds when securing supplies,
equipment, and services; (c) ensure that the City obtains supplies,
equipment, and services from a variety of qualified sources;
(d) ensure that all City utility and municipal services function at
the highest level possible and without interruption, and (e) promote
and protect the efficiency, quality and integrity of the purchasing
system.
THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS:
SECTION 1: The City Council of the City of Vernon hereby
finds and determines that the above recitals are true and correct.
SECTION 2: The City Council of the City of Vernon hereby
finds and determines that (a) approval of the ordinance is not a
"project" under the California Environmental Quality Act (CEQA),
because CEQA Guidelines Section 15378(b) excludes "continuing
administrative or maintenance activities, such as purchases for
supplies . . . and general policy and procedure making" from the
definition of CEQA; and (b) even if it were a project, it would be
exempt in accordance with CEQA Guidelines Section 15061(b), the
general rule that CEQA only applies to projects that may have an
effect on the environment.
SECTION 3: Article IV of Chapter 2 of the Vernon Municipal
Code is hereby amended in its entirety to read as follows:
"Article IV Competitive Bidding and Purchasing Ordinance
Table of Contents
2.17.00 DEFINITIONS
2.17.02 CONTRACTS REQUIRING CITY COUNCIL APPROVAL
2.17.03 CONTRACTS WHICH MAY BE APPROVED BY THE CITY
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ADMINISTRATOR
2.17.04 THE PURCHASING SYSTEM
2.17.05 PURCHASE CONTRACTS
2.17.06 COMPETITIVE BIDDING
2.17.08 ARCHITECTURAL AND RELATED PROFESSIONAL SERVICES
2.17.10 INFORMAL SELECTION
2.17.12 EXEMPTIONS
2.17.14 NOTICE INVITING BIDS
2.17.15 NOTICE TO POTENTIAL VENDORS
2.17.16 APPROVAL OF SPECIFICATIONS
2.17.18 SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION
2.17.20 BIDDING - SECURITY REQUIREMENT
2.17.22 BID OPENING
2.17.23 PAYMENT BONDS
2.17.24 CONTRACT AWARD
2.17.26 LOWEST RESPONSIVE AND RESPONSIBLE BIDDER
2.17.28 BIDDER RESPONSIBILITY AND DEBARMENT
2.17.30 SPECIAL GOOD GOVERNANCE REFORM CONTRACT TERMS AND
PROCEDURES
2.17.32 NON COLLUSION
2.17.34 FORM OF DOCUMENTS
2.17.36 EMERGENCY PURCHASES
2.17.38 BUDGETARY CONTROLS - APPROPRIATIONS AND
ENCUMBRANCES
2.17.40 FEDERAL DISADVANTAGED BUSINESS ENTERPRISE PROGRAM
2.17.42 EQUAL EMPLOYMENT AND LOCAL CONTRACTING POLICY
2.17.43 PUBLIC CONTRACT CODE
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TITLE
This Chapter shall be known and may be cited as the, "Competitive
Bidding and Purchasing Ordinance," and is referred to in this Chapter
as the "Ordinance."
2.17.00 DEFINITIONS.
For the purposes of this Chapter, the following definitions
apply:
(A) "City" means the City of Vernon.
(B) "City Administrator" means the City Administrator or any
individual designated in a written policy adopted by the City
Administrator to carry out any duty set forth in this Ordinance.
(C) "City Council" means the City Council of the City of Vernon.
(D) "Competitive bidding" means the procurement process
described in this Ordinance awarding a contract based on the lowest
price bid by a responsive and responsible bidder.
(E) "Competitive selection" means the procurement process
described in this Ordinance, generally through a request for proposal
process, awarding a contract based upon weighted selection factors
which include qualifications and price.
(F) "Contract" means an enforceable contract. An enforceable
purchase contract is a type of contract.
(G) "Informal selection" means the procurement process described
in this Ordinance awarding a contract on factors which include price
and does not require award to the lowest price bidder if there are
other identified factors which outweigh the price differential.
(H) "Labor" means services that are directly related to, or a
part of, a public works project.
(I) "Professional Services" means services that are not directly
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related to, or a part of, a public works project.
(J) "Public works" means all fixed works constructed for public
use or protection, including but not limited to, bridges, waterworks,
sewers, natural gasworks, fiber optics works, electric works, public
buildings and street improvements.
(K) "Purchase contract" means a pre-printed form contract issued
by the Finance Department, through its purchasing administration, for
the recipient to provide supplies, equipment, or services. The City
Council shall approve the general terms and conditions of the purchase
contract by Resolution upon recommendation of the City Administrator,
and the City Attorney shall approve the general form and any special
terms and condition.
(L) "Qualifications based selection" means the procurement
process described in this Ordinance for architectural, construction
management and related services, required by state law, generally
through a request for proposal process, awarding a contract based upon
weighted selection factors which include qualifications and not price.
(M) "Signatory Authority" means the authority to sign contracts
and any other document which binds the City of Vernon, as explicitly
granted or delegated either by a Resolution of the City Council or by
the Ordinance.
(N) "Services" includes labor and professional services.
(0) "Written administrative procedures" means the rules and
regulations specified by the Ordinance, adopted by the City
Administrator, approved as to legality by the City Attorney, and set
forth on the City's website.
2.17.02 CONTRACTS REQUIRING CITY COUNCIL APPROVAL.
(A) All contracts shall be approved only by the City Council
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except contracts with a total value over the lifetime of the contract
of up to $100,000.
(B) If, in the 12 months preceding the effective date of a
proposed new, renewed, or otherwise amended contract, the City has
paid or awarded the proposed vendor more than $100,000 pursuant to
contracts with the vendor, then the proposed new, renewed, or
otherwise amended contract shall be approved only by the City Council.
(C) The City Council approval of any contract may be made by
duly made motion, entered upon the minutes of any properly noticed
meeting. After the City Council has approved a contract, the contract
and bonds, if any, shall be prepared and submitted to the contractor
for execution. When the contract and bonds have been executed by the
contractor and approved as to form by the City Attorney, the City
Administrator is authorized to execute such contract on behalf of the
City.
2.17.03 CONTRACTS WHICH MAY BE APPROVED BY THE CITY ADMINISTRATOR.
(A) The City Administrator may approve and sign contracts with a
total value over the lifetime of the contract of up to $100,000, which
conform to the requirements of this Ordinance, to the standard
contract terms and conditions set forth by Resolution of the City
Council, which are approved as to form by the City Attorney, and which
are reflected in the then current City budget approved by the City
Council.
(B) Other than as set forth in this Ordinance, signatory
authority to bind the City in contract shall be granted or delegated
to City employees or officials, only by other or further Ordinance or
by Resolution of the City Council, stating the title of the position
and the amount of the authority. The City Clerk shall maintain
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signature exemplars of all such approved signatories. Any contract
signed by an officer or employee of the City without a proper grant or
delegation of signatory authority is void.
2.17.04 THE PURCHASING SYSTEM.
The City Administrator shall adopt written administrative
procedures for the operation of a purchasing system and otherwise
consistent with this Ordinance which shall include procedures for
informal selection for issuing contracts and which may include a
process for bid protests. The written administrative procedures will
maximize the use of the City's website to publicize contracting
opportunities, where appropriate, and inform the public about contract
awards and proposed awards.
2.17.05 PURCHASE CONTRACTS.
The Finance Department, through its purchasing administration,
may award and issue purchase contracts with a total value over the
lifetime of the contract of up to $50,000, where the process of award
conforms with written administrative procedures adopted by the City
Administrator.
2.17.06 COMPETITIVE BIDDING.
(A) A competitive bidding process, requiring a notice inviting bids,
specifications, security, bid opening and contract award, all as
specified in this Ordinance, shall be required for all contracts with
a total value over the lifetime of the contract of $50,000 or more for
supplies, equipment, or services or other valuable consideration, to
be furnished to the City, except for contracts otherwise excluded or
exempt from competitive bidding requirements by the City Council, or
by a provision of state law, by the City Charter or by this Ordinance.
Bid specifications shall be approved by the City Administrator and
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approved as to form by the City Attorney. Where not otherwise
provided by this Ordinance, the City Administrator shall adopt written
administrative procedures for bid opening and for the preparation and
execution of bids, purchase orders, and contracts.
(B) The bidding procedure for a public works or construction project
may be completed in a two part bidding process, including a published
request for qualifications process, which determines responsive and
responsible bidders, and a sealed price bid submittal among responsive
and responsible bidders to determine the lowest bidder and according
to additional procedures that may be adopted by Resolution of the City
Council.
2.17.07 COMPETITIVE SELECTION.
For contracts with a total value over the lifetime of the
contract of more than $50,000 that are not required to be
competitively bid and not otherwise exempt from competitive selection,
a competitive selection process shall be provided which will be open
to all persons qualified to perform such service. Requests for
Proposals shall be approved by the City Administrator and approved as
to form by the City Attorney. Requests for Proposals shall be issued,
received and evaluated according to the written administrative
procedures adopted by the City Administrator. Except as otherwise
provided in this Ordinance, competitive selection of professional
service providers shall be based upon weighted selection factors
including demonstrated competence, the professional qualifications
necessary for the satisfactory performance of the services required,
and on the cost of providing the services.
2.17.08 ARCHITECTURAL AND RELATED PROFESSIONAL SERVICES.
Procurement of architecture, landscape architecture, engineering,
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environmental, land surveying and construction management services
shall be made on the basis of demonstrated competence and on the
professional qualifications necessary for the satisfactory performance
of the services required and according to the qualifications based
selection process set forth in Government Code Sections, 4525, et seq.
and this Section. When required, a Request for Proposals, approved by
the City Administrator and approved as to form by the City Attorney,
shall be issued to determine the most qualified service provider. The
City shall endeavor to notify qualified small business firms, as
defined in Government Code 14837, of each opportunity to provide such
services to the City. Price may not be a factor in the determination
of the most qualified bidder, although each proposer may be asked to
submit a sealed price bid with their proposal for consideration after
the selection. The City shall negotiate a contract with the most
qualified firm for the services at compensation which is fair and
reasonable to the City. Should the City be unable to negotiate a
satisfactory contract with the firm considered most qualified at a fair
and reasonable price, then negotiations with that firm shall be
formally terminated, and the City shall negotiate a contract with the
second most qualified firm for services at compensation which is fair
and reasonable, and so on.
2.17.10 INFORMAL SELECTION.
(A) For contracts with a total value over the lifetime of the
contract up to $50,000, an informal selection process shall be
provided. Where appropriate, the informal selection process may
consider factors other than cost.
(B) The informal selection process shall operate according.to
written administrative procedures adopted by the City Administrator for
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the operation of a purchasing system and otherwise consistent with this
Ordinance and which are designed to publicize the contracting
opportunity and to allow qualified persons to participate.
(C) The informal selection process for purchases with a total value
over the lifetime of the contract exceeding $5,000 but not exceeding
$15,000 shall include, to the maximum extent feasible, the receipt of
no fewer than 3 vendor quotes unless otherwise exempted by this
Ordinance or by adopted procedures.
(D) The informal selection process for purchases with a total value
over the lifetime of the contract of more than $15,000 not exceeding
$50,000 shall include, to the maximum extent feasible, the receipt of
no fewer than 5 vendor quotes unless otherwise exempted by this
Ordinance or by adopted procedures.
(E) Public works contracts let pursuant to the informal selection
process must comply with the requirements of Section 2.17.23 ("Payment
Bond").
2.17.12 EXEMPTIONS.
(A) Competitive bidding shall not be required for the following:
(1) Supplies, equipment or services rendered by any City officer
or employee or furnished by one City department to another City
department.
(2) Contracts for supplies, equipment, or services available from
only one vendor or for unique services.
(3) Contracts for the acquisition of real property or relating to
the acquisition of real property.
(4) Contracts for supplies, equipment, or services for actual
emergency work. (See Section 2.17.36)
(5) Contracts (a) with other governmental entities for supplies,
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equipment or services; and (b) for supplies, equipment or services
that can be purchased in cooperation with other public agencies,
associations or when supplies, equipment or services can be purchased
from a vendor offering the same prices, terms and conditions as in a
previous award from the City or another public agency either by
competitive bid or through a negotiated process and, in the opinion of
the Finance Director, it is to the advantage of the City to do so:
(6) Contracts for the acquisition, sale or transmission of
electrical power, natural gas, water, or telecommunications, where it
is commercially unreasonable to comply with standard procurement
procedures. All such procurements shall be made pursuant to a
Resolution of the City Council which establishes a process for
procurement which is commercially reasonable and furthers the
objectives of this Ordinance, including but without limitation, to
prevent fraud and collusion and to ensure that the City receives
optimum value in its procurements.
(7) Any contract authorized by Sections 5920, et seq., of the
California Government Code and any successor provisions thereof, and
for which a competitive financing process has been established by
Resolution of the City Council establishing, at a minimum, a published
request for quotations and firm quotations in a manner designed to
foster competition, to prevent fraud and collusion and to secure the
most favorable price for the City.
(8) Contracts for insurance, bonds, advertising, membership
dues, travel, travel related expenses and for training, except that
brokers and agents for the same shall be procured through a
competitive selection process unless not commercially reasonable to do
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(9) Contracts for supplies, equipment, or services with a total
value over the lifetime of the contract up to $50,000.
(10) Contracts for professional services.
(B) Competitive selection shall not be required for the following:
(1) Any of the types of contracts exempted from competitive
bidding under paragraphs 1 through 9, inclusive, of subsection (A) of
this section.
(2) Specific contracts as may be exempted from the competitive
selection process, where it is found that the best interests of the
City are served by a direct award of the contract without a
competitive selection process.
(3) The City Administrator shall have the authority to make the
findings referenced in sections 2.17.12(B)(2), above, and 2.17.30(B),
below, [three year maximum for professional services contracts], for
all contracts with a total value over the lifetime of the contract up
to $100,000, and the City Council shall have the authority for all
contracts exceeding $100,000. If the City Administrator makes such
finding(s), the City Administrator shall submit a written report to
the City Council, at a regular City Council meeting within 30 days of
the finding(s), detailing the reasons for the finding(s).
2.17.14 NOTICE INVITING BIDS.
A notice inviting bids shall be published for at least one day in
a newspaper of general circulation in the City and posted on the
City's website and shall fix a period during which such bids will be
received, which shall be for at least 10 calendar days after the first
publication of the notice. The notice shall include a general
description of the material, services or public works to be purchased
or contracted for, and shall state where bid forms and specifications
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may be obtained and shall specify the time and place for receiving and
opening of bids.
2.17.15 NOTICE TO POTENTIAL VENDORS
To the maximum extent feasible, in addition to all other
applicable notice requirements, for all contracts subject to
competitive selection or competitive bidding requirements, at least 10
days before proposals or bids are due, the City shall cause notice of
the applicable Notice Inviting Bid, or Request for Proposals to be
sent to at least 5 vendors that are likely to qualify to submit a bid
or proposal.
2.17.16 APPROVAL OF SPECIFICATIONS.
All specifications shall be approved by the City Administrator
and approved as to form by the City Attorney prior to publication.
The City Council shall approve, by Resolution, the general form of
bid, including the form of notice inviting bids, the general terms and
conditions of the specifications and the general form of contract
which shall be attached to the specifications.
2.17.18 SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION.
Except as may otherwise be provided herein, the plans,
specifications, and contracts for public works construction undertaken
by the City shall be prepared by the department responsible for the
project.
2.17.20 BIDDING - SECURITY REQUIREMENT.
(A) Bid security generally required for bids. Unless waived by
the City Administrator, bidder's security shall be required by the
notice inviting bids for every competitive bidding process with a total
value over the lifetime of the contract exceeding $50,000. All bids
submitted pursuant thereto shall be accompanied by cash, cashier's
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check payable to the City of Vernon, certified check payable to the
City of Vernon, or bond, in an amount equal to ten percent (10%) of the
bid.
(B) Use and Return of Bid Security. If the bidder to whom the
contract is awarded shall for 15 days after the award, fail or neglect
to enter into the contract and to file the required bond, the City may
deposit the bid security into its treasury. When so deposited, under
no circumstances shall it be returned to the defaulting bidder.
(C) Surety bond. In lieu of the foregoing, any bid may be
accompanied by a surety bond in said amount furnished by a surety
authorized to do a surety business in the state guaranteeing that the
bidder will enter into the contract and file the required bond or bonds
within said period. Any person may file with the City an annual bid
bond, which shall be a surety bond in the amount of ten percent (10t)
of the highest amount bid during that period of the bond. The City
shall promptly return the bid security to the unsuccessful bidders.
The City shall retain the bid security of the successful bidder until
after signing and delivery of the contract and approval of the bonds or
other security furnished by the bidder for the faithful performance of
the contract, and then shall return such bid security to the successful
bidder.
2.17.22 BID OPENING.
All bids shall be placed in a sealed envelope and delivered to the
City as specified in the notice inviting bids. Bids shall be opened at
the time stated in said notice. Any bid that does not conform
materially to the requirements of this Ordinance, the specifications,
or notice inviting bids shall be rejected. The City Administrator may
waive minor, non -material defects, in his sole discretion, for
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contracts with a total value over the lifetime of the contract up to
$100,000, and the City Council for contracts exceeding $100,000.
2.17.23. PAYMENT BONDS.
Public works contracts with a total value over the lifetime of the
contract exceeding $25,000 shall require that, before commencement of
work, a payment bond be given to and approved by the City. For the
purpose of this section, a design professional is not required to give
a payment bond. (See Civil Code § 9550)
2.17.24 CONTRACT AWARD.
The contract shall be awarded by the City to the lowest responsive
and responsible bidder. The City Council may reject any and all bids.
If a successful bidder fails to enter into a contract awarded to them,
or if a contract is not commenced by the contractor or their surety,
the City Council may abandon the matter or may re -advertise the
original bid or a modification thereof, or may award the contract to
the next lowest responsive and responsible bidder, with the consent of
such bidder.
2.17.26 LOWEST RESPONSIVE AND RESPONSIBLE BIDDER.
In determining responsiveness and responsibility of a bidder, the
following shall be considered:
(A) The quality of the material offered.
(B) The ability, capacity and skill of the bidder to perform the
contract or to provide the supplies, equipment, or services.
(C) Whether the bidder can perform the contract or provide the
service promptly, or within the time specified, without delay or
interference.
(D) The sufficiency of the bidder's financial resources and the
effect thereon on the ability to perform the contract or provide the
supplies, equipment, or services.
(E) The character, integrity, reputation, judgment, experience
and efficiency of the bidder.
(F) The quality and timeliness of the bidder's performance on
previous work for the City.
(G) Litigation by the bidder on previous work with the City.
(H) The ability of the bidder to provide future maintenance and
service where such maintenance and service is essential.
2.17.28 BIDDER RESPONSIBILITY AND DEBARMENT.
(A) Prior to any contract award, the City Council may find any
bidder or proposer to be non -responsible to perform the specific
contract to be awarded. The City Council may do so on its own
motion or on recommendation of the City Administrator.
(B) In conjunction with any contract award or with any action on a
contract, the City Council may debar a contractor from bidding
on future contracts by finding, upon substantial evidence, non -
responsibility which arises from any one of the following: (1)
commission of fraud or a criminal offense in connection with
soliciting, obtaining or preparing a public contract;
(2) violation of federal or state antitrust statutes in relation
to a bid on a public contract; (3) commission of embezzlement,
theft, forgery, bribery, falsification or destruction of
records, making false statements or receiving stolen property;
(4) commission of any other offense that indicates lack of
business integrity or business honesty; (5) present debarment by
another public entity; (6) breach of a statutory or contract
provision which specifies or requires debarment as a remedy; or
(7) any other cause so serious it substantially affects the
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contractor's present responsibility.
(C) Before a finding of non -responsibility is made, and before a
contract requiring competitive bidding is awarded to other than
the lowest bidder, a bidder must have been notified of any
evidence of its non -responsibility, must have been afforded an
opportunity to rebut such evidence and must have been permitted
the opportunity to present evidence of responsibility to perform
the contract. A quasi-judicial proceeding shall not be required
for the City Council to take action under this section. Any
finding of non -responsibility shall focus on present non -
responsibility, shall be for the purpose of protecting the
interests of the public and not intended to punish a bidder.
The duration of debarment shall be for the period specified by
any contract or statutory provision or, if none, for the period
which the City Council finds shall best protect the interests of
the public but shall not exceed two years.
2.17.30 SPECIAL GOOD GOVERNANCE REFORM CONTRACT TERMS AND PROCEDURES.
The provisions of this section shall apply to all procurements,
contracts and purchases by the City, and, without limitation, shall be
incorporated into all written administrative procedures.
(A) All contracts, including professional service contracts, shall
include ending dates and/or expenditure caps unless commercially
unreasonable to do so.
(B) All professional services contracts shall be rebid every three
years unless found commercially unreasonable to do so in a manner
consistent with 2.17.12(B)(3).
(C) Compensation rates to be paid by the City shall not be increased
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during the term of a contract except where external factors are
going to significantly affect costs and rates during the term of
the contract, and any such increase is directly tied to the most
appropriate index or cost -of -living rate or a pass through of
increased costs charged to the contractor.
(D) All contracts shall be at rates of compensation similar to, or
more favorable than the rates charged to other governmental
entities.
(E) All contracting opportunities valued above $50,000 not otherwise
subject to a published notice requirement (e.g. requests for
proposals) shall be publicized on the City's website at least 7
days prior to contract award except where the specific contract
is otherwise exempt from competitive processes.
(F) 2.17.32 NON COLLUSION.
The City shall reject any bid, proposal, or other solicitation
involving any unlawful or unethical activity including, but not limited
to, rebates, kickbacks, or other unlawful consideration. No City
employee shall participate in the selection process if participation
might constitute a violation of the Political Reform Act, Government
Code Sections 1090, et seq., or other State or local law or regulation
pertaining to conflicts of interest.
2.17.34 FORM OF DOCUMENTS.
The City Council shall approve, by Resolution, the general forms
of contract, purchase contracts, notices inviting bids, and the
general provisions of bid specifications and requests for proposals
for use by the City.
2.17.36 EMERGENCY PURCHASES.
In case of an actual emergency which requires immediate purchase
of supplies, equipment, or services to address an immediate and
unforeseen risk to health, life, property or the environment, the City
Administrator may secure, without competitive bidding, at the lowest
obtainable price, any supplies, equipment, or services regardless of
the amount of the expenditure. A full report of the circumstances of
any such emergency purchase shall be filed with the City Council within
30 days of the expenditure.
2.17.38 BUDGETARY CONTROLS - APPROPRIATONS AND ENCUMBRANCES.
(A) Except for emergency purchases, and except where the amount of
the purchase is $5,000 or less over the lifetime of the contract no
contract shall be awarded unless there is to the credit of the
department concerned a sufficient unencumbered appropriated balance, in
excess of all unpaid obligations, to defray the amount of the proposed
expenditure.
(B) Except for emergency purchases, and except where the amount of
the purchase is $5,000 or less over the lifetime of the contract, the
Finance Director shall not authorize payments on a contract unless
there is to the credit of the department concerned a sufficient
unencumbered appropriated balance, in excess of all unpaid obligations,
to defray the amount of the proposed expenditure.
2.17.40 FEDERAL DISADVANTAGED BUSINESS
PROGRAM.
The City Administrator shall adopt written administrative
procedures to administer a disadvantaged business enterprise program
which shall be used when contracts lawfully require the contractor or
City to establish participation goals for disadvantaged business
enterprises. The written administrative procedures shall include
implementation guidelines, including definitions and criteria for what
constitutes a disadvantaged business enterprise and to encourage the
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use of minority/women/disadvantaged business enterprises, consistent
with both state and federal disadvantaged business program criteria and
other applicable law.
2.17.42 EQUAL EMPLOYMENT AND LOCAL CONTRACTING POLICY.
It is the policy of the City to:
(A) Promote the principles of equal employment in its contracting
activities by assuring that those seeking to do business with the City
are treated equally and are not discriminated against because of their
race, religion, color, national origin, ancestry, disability, sex, age,
marital status, medical condition, sexual orientation or any other
protected class status. To that end, all City contacts shall contain a
non-discrimination provision.
(B) Promote the local economy by encouraging local business
enterprise to make bids and proposals for City contracts and by
providing preference to local contractors in procurements other than in
sealed competitive bids, where all other factors are equal or similar,
as set forth in the written administrative procedures adopted by the
City Administrator.
2.17.43 PUBLIC CONTRACT CODE.
Except as provided in this code, or pursuant to agreement approved
by the City Council, or in a matter properly determined to be of
statewide importance, the City of Vernon, as a Charter City, is exempt
from the provisions of the California Public Contract Code.
SECTION 4:
Procedures.
Uncodified Section. Transition of Purchasing
A. Article IV of Chapter 2 of the Vernon Municipal Code, as
it was in effect on June 30, 2014, shall remain in effect to and
through December 31, 2014, and any specific procurement may proceed
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under those provisions until then, on recommendation of the City
Administrator and City Attorney, or shall otherwise comply with the
Ordinance. All procurements of the City shall comply with the
Ordinance as of January 1, 2015.
B. For contracts with an effective date on or after July 1,
2014, the City may award those contracts pursuant to the procedures
established via this Ordinance, even if the steps necessary to comply
with this Ordinance occurred prior to July 1, 2014.
SECTION 5: Repeal. Any ordinance or parts of ordinances in
conflict with this Ordinance are hereby repealed.
SECTION 6: Severability. If any chapter, article, section,
subsection, subdivision, paragraph, sentence, clause, phrase, or word
in this Ordinance or any part thereof 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 Ordinance or any part
thereof. The City Council hereby declares that it would have adopted
this Ordinance and each chapter, article, section, subsection,
subdivision, paragraph, sentence, clause or phrase thereof,
irrespective of the fact that any one or more chapters, articles,
sections, subsections, subdivisions, paragraphs, sentences, clauses,
phrases or words be declared unconstitutional, or invalid, or
ineffective.
SECTION 7: Book of Ordinances. The City Clerk, or Deputy
City Clerk, shall attest and certify to the adoption of this Ordinance
and shall cause this Ordinance and the City Clerk's, or Deputy City
Clerk's, certification to be entered in the Book of Ordinances of the
Council of this City. The City Clerk, or Deputy City Clerk, shall
- 21 -
cause this ordinance to be published or posted as required by law.
SECTION 8: Effective Date. This Ordinance shall go into
effect and be in full force and effect at 12:01 a.m. on July 1, 2014.
APPROVED AND ADOPTED this 20th day of May, 2014.
ATTEST:
Ana Bar 'a ep ty C erk
Name: W. Michael McCormick
Title: Mayor /_ Mayer Pve TrenQ
APPROVED
� AS �TO� LFORM :
RO
Scott E. Porter, Deputy City Attorney
- 22 -
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, ANA BARCIA, Deputy City Clerk of the City of Vernon,
do hereby certify that the foregoing Ordinance, being Ordinance
No. 1221, was duly and regularly introduced at a regular meeting
of the City Council of the City of Vernon, held in the City of
Vernon on Tuesday, May 6, 2014, and thereafter adopted at a
meeting of said City Council held on Tuesday, May 20, 2014, by the
following vote:
AYES: Councilmembers: Mayor McCormick, Mayor
Pro-Tem Davis, Maisano,
Martinez, Ybarra
NOES: Councilmembers: None
ABSENT: Councilmembers: None
And thereafter was duly signed by the Mayor or Mayor
Pro-Tem of the City of Vernon.
Executed this 2day of May, 2014, at Vernon,
California.
Ana BkrjZa
Deputy City Clerk
(SEAL)
-23-
TRANSMITTAL COMMUNICATION
CITY CLERK'S OFFICE
INTEROFFICE MEMORANDUM
DATE: June 2, 2014
TO: Daniel Calleros, Police Chief
Kristen Enomoto, Deputy City Administrator
Carlos Fandino, Director of Gas & Electric
William Fox, Finance Director/City Treasurer
Leonard Grossberg, Director of Health & Environmental Control
Masami Higa, Assistant Finance Director
Alex Kung, Economic Development Manager
Joaquin Leon, Deputy City Treasurer
Teresa McAllister, Director of Human Resources
Lisette Michel, Sr. Human Resources Analyst
Zaynah Moussa, Deputy City Attorney
Scott Porter, Deputy City Attorney
Mark Whitworth, City Administrator
Michael Wilson, Fire Chief
S. Kevin Wilson, Director of Public Works, Water & Development Services
FROM: Deborah Juarez, Records Management Assistant 14.
RE: Ordinance No. 1221 — An Ordinance of the City Council of the City of Vernon Amending
Article IV of Chapter 2 of the Vernon Municipal Code and Repealing All Ordinances or
Parts of Ordinances in Conflict Therewith
Transmitted herewith is a copy of Ordinance No. 1221 referenced above, which was approved by City
Council on May 20, 2014.
Thank you.
Attachment
c: Ana Barcia
Purchasing Department
Ordinance No. 1221
STAFF REPORT
RECEIVE® 4CI%�i1��s�,z�/�y.
MAY ®12014
CITY CLERK'S OFFICE
JOINT STAFF REPORT
FINANCE DEPARTMENT AND
CITY ATTORNEY DEPARTMENT
DATE: May 6, 2014
TO: Honorable Mayor and City Council
FROM: William Fox, Director of Finance 1,0
Scott E. Porter, Deputy City Attorney
RE: Ordinance to amend Article IV of Chapter 2 of the Vernon Municipal Code,
entitled, "Competitive Bidding and Purchasing Ordinance"
Recommendations
It is recommended that the City Council:
Find that (a) approval of the ordinance is not a "project" under the California
Environmental Quality Act (CEQA), because CEQA Guidelines Section 15378(b)
excludes "continuing administrative or maintenance activities, such as purchases for
supplies ... and general policy and procedure making" from the definition of CEQA;
and (b) even if it were a project, it would be exempt in accordance with CEQA
Guidelines Section 15061(b), the general rule that CEQA only applies to projects that
may have an effect on the environment; and
2. Approve first reading of, and adopt at a subsequent meeting, a proposed Ordinance to
amend Article IV of Chapter 2 of the Vernon Municipal Code, entitled, "Competitive
Bidding and Purchasing Ordinance", to thereby increase efficiencies and public
accountability. It is further recommended that the City Council be reminded that
Vernon's Independent Reform Monitor, Mr. Van De Kamp, recommended that "the
City review compliance with the Competitive Bidding and Purchasing Ordinance no
later than June 30, 2014 to determine its effectiveness and whether any changes need
to be made."
Backeround
On December 18, 2012, as part of the City's good governance reform efforts, the City
Council adopted Ordinance 1200 to amend Article IV of Chapter 2 of the Vernon Municipal
Code, entitled, "Competitive Bidding and Purchasing Ordinance." The Ordinance established a
framework for procurement based largely the City of Pasadena's ordinance. Nearly a year and a
half has elapsed since Vernon's Ordinance became effective, and staff has learned how to work
within the ordinance, and how the ordinance could be improved.
In his January 31, 2014 report, Mr. Van De Kamp, the Independent Reform Monitor,
recommended that "the City review compliance with the Competitive Bidding and Purchasing
Ordinance no later than June 30, 2014 to determine its effectiveness and whether any changes
need to be made."
Consistent with that recommendation, the Department of Finance and the Department of
the City Attorney, in close collaboration with City Administration and all other Departments,
have undertaken a comprehensive review of the City's purchasing ordinance and procedures.
The goals have been to improve and clarify the ordinance by increasing efficiencies and
accountability, while staying within the norm of good governance practices. Staff recommends
keeping the core of the ordinance which helps to ensure that the City's funds are used prudently
and in a manner to best further the public interest.
In addition to relying on the practical experience of each Department, staff has looked
outside of Vernon to determine what constitute the best municipal procurement practices. For
example, staff obtained and reviewed a 2012-2013 survey prepared by the California Association
of Public Procurement Officials analyzing standard procurement practices in roughly 500 local
governmental entities in California. Staff has also reviewed the municipal codes of similarly
situated municipalities. Staff has only recommended improvements to the code that are
consistent with best practices.
If the ordinance is approved, staff will update the Purchasing Manual and all related
procedures accordingly.
Recommended Revisions
Staff has recommended various revisions to the purchasing ordinance that would
maintain the great majority of the ordinance, but make some adjustments and clarifications. The
revisions can be summarized as follows:
Amendments to Contracting Authority
Increases accountability by adding a new requirement that the City Council approve
any contract where in the 12 months preceding the effective date of the proposed
contract, the city has paid or awarded the proposed vendor more than $100,000.
(2.17.02(B)). This should help limit the likelihood that contracts would be split in an
effort to evade the requirement to obtain City Council approval.
Increases efficiency by increasing purchasing authority of City Administrator from
$74,999 to $100,000. (§ 2.17.02(A))
Increases efficiency by increasing purchasing authority of Finance Director via
purchase contract from $25,000.00 to $50,000.00. (2.17.05).
Increased Thresholds for Procedures
• Increases efficiency by increasing the exemption from selection processes from
$3,000 to $5,000. (2.17.10).
• Increases efficiency by increasing the informal selection maximum threshold of
$24,999 to $50,000. (2.17.06).
Amendments to Exceptions to Competitive Bidding (2.17.12)
As you are aware, the existing ordinance requires that all procurements be competitively
bid absent an applicable exception. That rule would remain the same. Staff proposes three
direct, and one indirect, revisions to the exceptions.
• Exemption #5 is revised to clarify what qualifies as a "piggyback" contract, and to
ensure that it applies to non -government organizations that are created to allow for
purchases by a large number of buyers. For example, the National Association of
State Procurement Officials (NASPO) created a subsidiary entity, the NASPO
Cooperative Purchasing Organization (WSCA-NASP) to aggregate the demand of all
50 states and to negotiate affordable purchase prices. This ordinance would clarify
that the City may contract pursuant to such negotiated pricing schedules. The revised
language is nearly verbatim from the City of Burbank. (2.17.12(A)(5)).
• Narrows and clarifies previously unclear language within Exemption #6 to state that
the exemption is for purchases of "electrical power, natural gas, water, or
telecommunications" where it would be commercially unreasonable to comply with
the standard procurement procedures, provided specific additional procurement
processes are followed. The provision would no longer exempt services because
Exemption #10 already provides an exception for professional services (see below).
(2.17.12(A)(6)).
• Added definitions of "professional services", "labor", and "services." As a result, it
is clear that Exemption #10 does not apply to services that are for public works
projects (e.g. construction of streets, sewer mains, installation of utility poles), but
Exemption #10 may be used for non-public works services (e.g. janitorial services,
financial services, legal services, etc.). As a result, the definitions clarify that services
that are not for public works projects need not be competitively bid, but must still
comply with any applicable competitive selection process. (2.17.12(A)(10)).
• Increases oversight by still allowing the City Administrator to exempt professional
services contracts from the competitive selection process, but requires the
Administrator who uses the exemption to "submit a written report to.the City Council,
at a regular City Council meeting within 30 days of the use of the exemption,
detailing the reasons for the use of the exemption." (2.17.12(13)(2)).
Informal Selection Process
• Increases efficiency by increasing the maximum cap for use of the informal selection
process from $24,999 to $50,000. (2.17.10(A)).
Increases fiscal responsibility by increasing the number of required vendor quotes
from 3 to 5 for contracts valued between $15,000 and $50,000. Contracts valued at
between $5,001 and $15,000 would still require only 3 bids. (2.17.10).
o Adds an exception to the 3 or 5 quote rule if it is not "feasible" to have 3 or 5
vendor quotes. For example, if there are only 2 vendors of a particular
commodity, it would not be "feasible" to obtain 5 quotes.
Clarifies that "public works" projects valued above $25,000 must still provide
payment bonds (See "bid security", below). (2.17.10(E), 2.17.23).
Specifications
• Allows Departments to use specifications other than just the "Standard Specifications
for Public Works Construction" (known as the "Greenbook"). Depending on the type
of contract, staff may wish to incorporate different specifications. (2.17.18).
Bid Security, Surety Bonds (2.17.20 and new 2.17.23)
• The types of permissible bid security have been expanded to be consistent with Public
Contracts Code 20170. Now, in addition to bids and cash, the city will accept
cashier's checks and certified checks. (2.17.20(A))
• Increases protections to the city by increasing the required bid security from 5% to
10%, which is expressly authorized by state statute.
• Increases required surety bond from 5% to 10%, which is also expressly allowed by
state statute.
• Expressly requires payment bonds for public works contracts valued at above
$25,000. (See Civil Code § 9550).
Notice to Potential Vendors (New Section 2.17.15)
Increases accountability by adding a requirement that, in addition to all other noticing
requirements, that at least 10 days before the due date, the City send the Request for
Proposals (RFP) or Notice Inviting Bid (NIB) to at least 5 likely qualified vendors.
Good Governance Reform Contract Terms and Procedures (2.17.30)
• Clarifies that for professional services contracts of $100,000 or less, the City
Administrator may find the contract should be extended beyond the maximum 3
years. Increases accountability by adding a new requirement that the Administrator
notify the City Council in writing at a regular meeting within 30 days of making that
finding.
• Clarifies that service contracts valued at more than $100,000 cannot be extended
beyond 3 years without City Council approval.
• Clarifies that requests for proposals (RFPs) must be published on the City's website
for at least 7 days before contract award and that such posting is not required for the
informal selection process. (2.17.30(E))
Technical Clarifications
• Clarifies throughout the Ordinance that the value of the contract is the total value of
the contract over the lifetime of the contract, not in any given year. Thus, a contract
with an expenditure cap of $40,000 per year for 3 years is valued at $120,000. The
contract requires City Council approval because it is valued at more than $100,000.
• Clarifies City's intent to comply with Government Code § 14837, which requires, for
architectural and related professional services, notification to qualified small business
firms. (2.17.08)
• Universally revises language in the ordinance to refer to "supplies, equipment or
services."
• Broadens the applicability of the non -collusion prohibitions. (2.17.32).
• Tightens budgetary controls by clarifying that the Finance Director shall not make
any payments pursuant to any contract if such payment would exceed the responsible
department's budget.
Uncodified Transition Procedures
The ordinance will become effective July 1, 2014, the first day of the new fiscal year.
Allows a 6 month transition period. The old procedures may be used until December
31, 2014.
Contracts may be awarded effective July 1, 2014 pursuant to the new requirements of
the new code, even if all of the procedures for the contract occurred prior to July 1,
2014.
Fiscal Impact
The revisions to the ordinance are not expected to have any direct fiscal impact on the city, but
are expected to indirectly save the city money due to increased efficiencies.
CITY OF VERNON CITY COUNCIL MEETING
MAY 6, 2014
ORDINANCE NO. 1221 SUMMARY
(Amending Article IV of Chapter 2 of the Vernon Municipal Code and repealing all
ordinances or parts of ordinances in conflict therewith)
A CERTIFIED COPY OF THE FULL TEXT OF PROPOSED ORDINANCE NO. 1221
IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305
SANTA FE AVENUE, VERNON, CALIFORNIA.
Ordinance No. 1221 was duly introduced at a regular meeting of the City Council of the
City of Vernon held on May 6, 2014. Ordinance No. 1221 is scheduled to be considered
for adoption by said Council at a regular meeting to be held on May 20, 2014.
The proposed Ordinance No. 1221 would amend Article IV of Chapter 2 of the Vernon
Municipal Code (entitled "Purchasing System") and repeal all ordinances or parts of
ordinances in conflict therewith.
Ana Barcia, Deputy City Clerk of the City of Vernon, does hereby certify that Ordinance
No. 1221 was duly introduced to the City Council of the City of Vernon at a regular
meeting held on May 6, 2014, and said Ordinance is scheduled to be considered for
adoption at a regular meeting of the City Council to be held on May 20, 2014.
Dated: f �, l 4
Ana arcia, hepty'Citv6lerk
This space is for the County Clerk's Filing Stamp
The Only All Hispanic Owned Chain of Bilingual Newspapers
111 S. Avenue 59, Los Angeles, CA 90042-4211
Ph 323.341-7970 • Fax 323.341-7976 • www.egpnews.com
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES
I am a citizen of the United States and a resident
of the County aforementioned; I am over the age
of eighteen years, and not a party to or interested
in the above -entitled matter. I am the principal
clerk of the printer of
EASTERN GROUP PUBLICATIONS'
EASTSIDE SUN, MEXICAN AMERICAN SUN,
NORTHEAST SUN, BELL GARDENS SUN,
VERNON SUN, COMMERCE COMET,
CITYTERRACE COMET, MONTEBELLO COMET,
MONTEREY PARK COMET,
E.L.A. BROOKLYN BELVEDERE COMET
AND WYVERNWOOD CHRONICLE,
newspapers of general circulation, printed
and published THURSDAYS in the County of
Los Angeles, and which newspaper has been
adjudicated a newspaper of general circulation by
the Superior Court of the County of Los Angeles,
State of California, under the
date of JUNE 21, 1966,
CASE NUMBER 884861;
that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has
been published in each regular and entire issue
of said newspaper and not in any supplement
thereof on the following dates, to -wit:
MAY 08,
all in the year 2014.
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at LOS ANGELES, California,
this 08thday of MAY, 2014.
CITY OF VERNON
Proof of Publication of
City of Vernon City Council Meeting
May 6. 2014
Ordinance No. 1221 Summary
Signature
CITY OF VERNON CITY COUNCIL MEETING
MAY 20, 2014
ORDINANCE NO. 1221 SUMMARY
(Amending Article IV of Chapter 2 of the Vernon Municipal Code and repealing all
ordinances or parts of ordinances in conflict therewith)
A CERTIFIED COPY OF THE FULL TEXT OF ADOPTED ORDINANCE NO. 1221
IS AVAILABLE IN THE OFFICE OF THE CITY CLERK LOCATED AT 4305
SANTA FE AVENUE, VERNON, CALIFORNIA.
On May 20, 2014, the City Council of the City of Vernon approved and adopted
Ordinance No. 1221 amending Article IV of Chapter 2 of the Vernon Municipal Code,
entitled, "Competitive Bidding and Purchasing", and repealing all ordinances or parts of
ordinances in conflict therewith.
I, Ana Barcia, Deputy City Clerk of the City of Vernon, do hereby certify that Ordinance
No. 1221 was duly approved and adopted by the City Council of the City of Vernon at a
regular meeting held on May 20, 2014, and passed by said Council by the following vote:
AYES: � COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Dated: 5 /2--T / 14
McCormick, Davis, Maisano,
Martinez, Ybarra
none
roto] rza
Dep Ana Barcia, C' erk
This space is for the County Clerk's Filing Stamp
The Only All Hispanic Owned Chain of Bilingual Newspapers
111 S. Avenue 59, Los Angeles, CA 90042-4211
Ph 323.341-7970 • Fax 323.341-7976 • www.egpnews.com
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA,
COUNTY OF LOS ANGELES
I am a citizen of the United States and a resident
of the County aforementioned; I am over the age
of eighteen years, and not a party to or interested
in the above -entitled matter. I am the principal
clerk of the printer of
EASTERN GROUP PUBLICATIONS'
EASTSIDE SUN, MEXICAN AMERICAN SUN,
NORTHEAST SUN, BELL GARDENS SUN,
VERNON SUN, COMMERCE COMET,
CITY TERRACE COMET, MONTEBELLO COMET,
MONTEREY PARK COMET,
E.L.A. BROOKLYN BELVEDERE COMET
AND WYVERNWOOD CHRONICLE,
newspapers of general circulation, printed
and published THURSDAYS in the County of
Los Angeles, and which newspaper has been
adjudicated a newspaper of general circulation by
the Superior Court of the County of Los Angeles,
State of California, under the
date of JUNE 21, 1966,
CASE NUMBER 884861;
that the notice, of which the annexed is a printed
copy (set in type not smaller than nonpareil), has
been published in each regular and entire issue
of said newspaper and not in any supplement
thereof on the following dates, to -wit:
MAY 29,
all in the year 2014.
I certify (or declare) under penalty of perjury that
the foregoing is true and correct.
Dated at LOS ANGELES, California,
this 29�hday of MAY, 2014.
CITY OF VERNON
Proof of Publication of
City of Vernon City Counci Meeting
May 20, 2014
Ordinance No. 1221 Summary
CITY OF 1/ER1dQN CTlNCL MEETI
MAY 24 ` !014
Signature