Item 13AGENDA ITEM NO. 13
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: June 7, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AN ORDINANCE ADOPTING NEW PURCHASING PROCEDURES
RECOMMENDATION:
It is recommended that the City Council introduce for first reading, by title only, further reading
waived, the following ordinance:
ORDINANCE NO. 2498 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, REPEALING AND REPLACING DIVISION 1 (GENERALLY) AND
DIVISION 2 (PURCHASING SYSTEM) AND AMENDING DIVISION 3 (CONTRACTING FOR
PUBLIC PROJECTS) OF ARTICLE VII (PURCHASES AND SALES) OF CHAPTER 2
(ADMINISTRATION) OF THE WEST COVINA MUNICIPAL CODE
BACKGROUND:
The City of West Covina originally adopted a Purchasing Ordinance (Ordinance No. 576) in 1958, which
was subsequently amended by Ordinance No. 2070 in 2001, Ordinance No. 2172 in 2008, Ordinance
No. 2276 in 2015 and Ordinance No. 2337 in 2018. In 2018, the Purchasing Policy was amended and
updated. The update to the Purchasing Policy was a compilation of efforts by City staff and a financial
consultant, Lance, Soll and Lunghard, LLP, to review the City's Municipal Code and Purchasing Policy to
facilitate bringing them into compliance with Federal and State guidelines.
In 2020, the California State Auditor reviewed the City's Procurement Policy. The State Auditor
recommended (Objective number 9) that the City improve internal purchasing processes/enforcement to
reduce susceptibility to waste and fraud. In the City's Financial Recovery Plan, action steps included
adopting revised purchasing policies and adopting an ordinance enacting California Uniform Public
Construction Cost Accounting Act. In May 2021, the City Council adopted Ordinance No. 2477, enacting
the provisions of the California Uniform Public Construction Cost Accounting Act. The Ordinance,
codified in Division 3 (Contracting for Public Projects) of Article VII (Purchases and Sales) of Chapter 2
(Administration) of the West Covina Municipal Code (WCMC), established the following dollar thresholds,
which are updated periodically by the California Uniform Public Construction Cost Accounting
Commission for public projects:
(a) Public projects of $60,000 or less may be performed by the employees of the City by force account,
by negotiated contract, or by purchase order.
(b) Public projects of $200,000 or less may be let to contract by informal procedures.
(c) Public projects of more than $200,000 must be let to contract by formal bidding procedures.
DISCUSSION:
Staff has reviewed the City's Purchasing Ordinance, codified in Division 2 (Purchasing System) of Article
VII (Purchases and Sales) of Chapter 2 (Administration) of the WCMC and is proposing to update the
Purchasing Ordinance to mirror the procedures for contracting for public projects, clarify discrepancies,
streamline processes, and reduce administrative burden.
For simplicity, staff recommends that the City Council adopt the proposed ordinance, which would repeal
and replace Division 1 (Generally) and Division 2 (Purchasing System) of Article VII (Purchases and
Sales) of Chapter 2 (Administration) of the West Covina Municipal Code. Additionally, the ordinance
creates separation of the policy from procedures by authorizing the Purchasing Officer (Finance Director)
to establish a Purchasing Manual, subject to the approval of the City Manager, to implement the policies
as adopted by Council. The ordinance also makes certain clarifying changes to Division 3 (Contracting
for Public Projects) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina
Municipal Code.
The threshold for three written quotes is proposed to raise from $2,000 to $5,000. Other thresholds are
proposed to be consistent with Division 3 of the Municipal Code. These thresholds will be established by
City Council resolution.
One quote or Invoice
3 Written Quotes
Informal Procurement
Procedures
(Bidding or RFP)
Formal Procurement Procedures
(Bidding or RFP)
Less than $2,500 Less than $5k Department Head
$2,500-$20k $5k-$60k Finance Director
$60k-$200k* City Manager
$30k or more Over 200k* City Council
Although Department Heads will be authorized to approve purchases of up to $5,000, the ordinance
expressly states that Department Heads do not have authority to execute contracts or agreements on
behalf of the City. The ordinance also expressly states that all contracts and agreements must be signed
by either the Mayor or the City Manager and that, except for the Purchasing Officer's authority to issue
and approve purchase orders of up to $60,000, no other City officer or employee has authority to bind the
City by contract or agreement.
Reporting requirements and policies for amendments are also proposed to remain similar to the
provisions of Division 3.
The ordinance also sets forth the maximum length of contracts for goods and/or services as five (5)
years, and the maximum length for lease agreements as thirty (30) years, unless otherwise approved by
the City Council. These limits were previously established by the City's Contract Term Policy, an
Administrative Policy adopted by the City Manager and Finance Director in April 2017. By codifying these
limitations, staff intends to repeal the Contract Term Policy.
To streamline processes and increased efficiencies, the following exemptions from competitive bidding
are proposed for purchases:
1. A procurement for professional services;
2. A procurement for the performance of temporary work or services;
3. A procurement of items that are available from only one source, or only one source is able to supply
a commodity or service within the timeframe or under terms and conditions which meet the needs
of the city;
4. Personal property sold: (a) at an auction by a state licensed auctioneer; (b) at a going out of
business sale; (c) by a political subdivision of this state, a state agency of this state, or an entity of
the federal government; or (d) under an interlocal contract for cooperative purchasing;
5. Purchases of goods that will be offered for retail sale by the city;
6. Purchases made through a cooperative purchasing agreement or program, including, but not
limited to, the California Multiple Award Schedules Program (CMAS), the U.S. General Services
Administration (GSA) Multiple Award Schedules Program, Sourcewell, and the U.S. Communities
Government Purchasing Alliance, provided that certain requirements are met;
7. Purchases made using another governmental or public agency's contract or substantially the same
terms, provided certain requirements are met;
8. Purchases of goods and/or services obtained from or through an agreement with any
governmental, public or quasi -public entity;
9. Procurements funded by grants, donations or gifts when the special conditions attached to the
grants, donations or gifts require the procurement of particular goods and/or services;
10. When the city council determines, by minute action or resolution, that compliance with the bidding
requirements and procedures is inefficient, impractical or not in the best interest of the city, based
on specifically identified conditions set forth on the record;
11. In the event of an emergency, which is deemed to exist if:
. There is a public calamity such as fire, flood, earthquake, storm or similar disaster that poses a
serious threat to the public safety or city property; or
. There is an immediate need to prepare for or provide national or local defense; or
. There is a breakdown in machinery, equipment, property or an essential service which requires the
immediate purchase of supplies or services to protect the public health, welfare or safety; or
. An essential operation or city service affecting the public health, welfare or safety would be greatly
hampered if adherence to the prescribed purchasing procedures would cause undue delay in
procurement of the needed item or service.
Staff recommends that the City Council introduce the ordinance for first reading. If the City Council
introduces the ordinance for first reading, staff anticipates presenting the ordinance for second reading
and adoption at the June 21, 2022 meeting. Staff will also present the resolution outlining the
procurement thresholds set forth above when it presents the ordinance for second reading and adoption.
The ordinance will be effective on the 31 st day after adoption.
LEGAL REVIEW:
The City Attorney's Office has reviewed the ordinance and approved it as to form.
Prepared by: Stephanie Sikkema, Finance Director
Attachments
Attachment No. 1 - Ordinance No. 2498
CITY COUNCIL GOALS & OBJECTIVES: Enhance City Image and Effectiveness
Achieve Fiscal Sustainability and Financial Stability
ORDINANCE NO. 2498
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, REPEALING AND
REPLACING DIVISION 1 (GENERALLY) AND DIVISION 2
(PURCHASING SYSTEM) AND AMENDING DIVISION 3
(CONTRACTING FOR PUBLIC PROJECTS) OF ARTICLE
VII (PURCHASES AND SALES) OF CHAPTER 2
(ADMINISTRATION) OF THE WEST COVINA
MUNICIPAL CODE
WHEREAS, pursuant to California Government Code sections 54201 through 54203,
local agencies are required to adopt, by ordinance, policies and procedures, including bidding
regulations, governing the purchases of supplies and equipment by the local agency; and
WHEREAS, the City of West Covina ("City") has adopted such policies and procedures
by ordinance. Said policies and procedures are codified in Division 2 (Purchasing System) of
Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal
Code; and
WHEREAS, on May 4, 2021, the City Council adopted Ordinance No. 2477, which added
Division 3 (Contracting for Public Projects) to Article VII (Purchases and Sales) of Chapter 2
(Administration) of the West Covina Municipal Code to establish procedures and requirements for
contracting for public projects in accordance with the California Uniform Construction Cost
Accounting Act and State law; and
WHEREAS, Division 3 sets forth purchasing thresholds and purchasing authorities for
contracting for public projects in accordance with the California Uniform Public Construction Cost
Accounting Act and State law, including authorizing the City Manager to award and execute
certain contracts awarded pursuant to such provisions, provided the expenditures are within the
approved budget; and
WHEREAS, the City desires to provide consistency between Division 2 (Purchasing
System) and Division 3 (Contracting for Public Projects) of Article VII (Purchases and Sales) of
Chapter 2 (Administration) of the West Covina Municipal Code by providing similar purchasing
thresholds and purchasing authorities; and
WHEREAS, Division 1 (Generally) of Article VII (Purchases and Sales) of Chapter 2
(Administration) of the West Covina Municipal Code sets forth requirements relating to the
disposal of surplus supplies and equipment; and
WHEREAS, City Council desires to repeal and replace Divisions 1 and 2 of Article VII
of Chapter 2 of the West Covina Municipal Code in order to increase the bidding limits and make
other changes as set forth herein; and
WHEREAS, the City Council also desires to amend Division 3 (Contracting for Public
Projects) to make clarifying changes as set forth herein; and
WHEREAS, in amending Divisions 1, 2, and 3 of Article VII of Chapter 2 of the West
Covina Municipal Code, the City Council desires to make clear that only the Mayor and the City
Manager have the authority to execute contracts and agreements on behalf of the City, in
accordance with Section 40602 of the California Government Code.
WHEREAS, all legal prerequisites prior to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Amendment to Divisions 1 and 2 of Article VII of Chanter 2. Division 1
(Generally) and Division 2 (Purchasing System) of Article VII (Purchases and Sales) of Chapter
2 (Administration) of the West Covina Municipal Code are hereby repealed and replaced by as
follows:
DIVISION 1. - GENERALLY
Sec. 2-316. - Establishment of purchasing system.
A purchasing system is hereby established for the purpose of setting forth efficient policies for
the purchase of supplies, services and equipment, at the lowest possible cost commensurate with
quality needed, to exercise positive financial control over purchases and to clearly define
authority for the purchasing function. Except as provided by this Code, no city officer or
employee shall order the purchase of any supplies, equipment, materials, or services, or make any
contract within the purview of this Code, other than in accordance with the provisions of this
Code, the purchasing manual prepared by the purchasing officer and with the approval of the city
manager.
Sec. 2-317. - Centralized purchasing division created.
A centralized purchasing division within the finance department is hereby created and authorized
to purchase supplies, services and equipment for the city.
Sec. 2-318. - Purchasing officer; duties.
(a) The position of purchasing officer is hereby established. The director of finance shall
serve as the purchasing officer and may delegate purchasing duties as necessary to carry
out the duties set forth in this article. The purchasing officer shall be the head of and have
general supervision of the purchasing division.
(b) Subject to the supervision of the city manager, the purchasing officer shall have the
following powers and duties:
(1) Prepare a written purchasing manual, subject to approval of the city manager, that
implements the requirements of this article. The purchasing manual shall describe in
detail the operational procedures and processes for the procurement of materials,
supplies, services, equipment, and public works contracts.
(2) Purchase or contract for supplies, services and equipment required by any city
department, within the limits of the current budget approved by the city council, and
in accordance with the requirements of this article, the purchasing manual prepared
pursuant to this division, such administrative regulations as the purchasing officer
shall adopt for the internal management and operation of the purchasing division and
such other rules and regulations as may be prescribed by the city council or city
manager.
(3) Negotiate and recommend execution of contracts for the purchase of supplies, services
and equipment.
(4) Act to procure for the city the needed quality in supplies, services and equipment at
least expense to the city.
(5) Discourage uniform bidding and endeavor to obtain as full and open competition as
possible on all purchases.
(6) Prepare and recommend to the city manager rules governing the purchase of supplies,
services and equipment for the city and revisions and amendments to such purchasing
rules.
(7) Keep informed of current developments in the field of purchasing, prices, market
conditions and new products.
(8) Prescribe and maintain such forms as reasonably necessary to the purchasing
operation.
(9) Supervise the inspection of all supplies, services and equipment purchased to ensure
conformance with specifications.
(10) Supervise the transfer of surplus or unused supplies and equipment between
departments as needed.
(11) Sell, exchange or dispose of surplus supplies and equipment that cannot be used
by the city.
(12) Maintain a bidders' list, vendors' catalog file and such other records needed for
the efficient operation of the purchasing division.
(13) Such other powers as delegated by the city manager or established by resolutions
of the city council.
Sec. 2-319. - Exemptions from centralized purchasing.
The following items are exempt from centralized purchasing and shall not require city council
approval provided that an appropriation has been made therefor:
(a) General expenses, including, but not limited to, payroll deductions, licenses, advertising,
insurance premiums, damage claims, petty cash replenishment, tax remittances, refunds,
postage, freight charges, debt service related payments, fuel and charges to or from other
government agencies.
(b) Utilities, including, but not limited to, the payment of water, electricity, natural gas,
telecommunication, sewer and trash expenses.
(c) Training and education, including, but not limited to, conferences, conventions, courses,
seminars, memberships, staff workshops, certifications and subscriptions/publications.
(d) Refundable employee expenses, including, but not limited to, advances, meal allowances,
miscellaneous reimbursements and travel expenses.
Sec. 2-320. - Business licenses.
Any contractor, consultant or vendor from which the city purchases supplies, materials, services or
equipment or to which the city awards a contract or purchase order pursuant to this article shall not be
subject to the requirements of chapter 14, article H, division 1, section 14-18 of this Code.
Secs. 2-320-2-325. Reserved.
DIVISION 2. - PURCHASING PROCEDURES
Sec. 2-326. - Applicability.
Except as otherwise set forth herein, the provisions set forth in this division do not apply to public
projects subject to the provisions of Division 3 (Contracting for Public Projects) of Article VII
(Purchases and Sales) of Chapter 2 (Administration) of this Code.
Sec. 2-327. - Definitions.
The following words, terms and phrases when used in this division shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
(a) "Lowest responsible bidder." In determining the "lowest responsible bidder", the following
shall be considered:
(1) Price;
(2) The ability, capacity and skill of the bidder to perform the contract or provide the
material or services;
(3) Whether the bidder can perform the contract or provide the service promptly, or within
the time specified, without delay or interference;
(4) The sufficiency of the bidder's financial resources and the effect thereof on his/her/its
ability to perform the contract or provide the material or services;
(5) The character, integrity, reputation, judgment, experience and efficiency of the bidder;
(6) The bidder's record of performance on previous orders or contracts for the city or other
public entities;
(7) The quality, availability and adaptability of the bidder's supplies, equipment or services
to the particular use required;
(8) The ability of the bidder to provide future maintenance and service where such
maintenance and service is necessary;
(9) The number and scope of conditions attached to the bid.
The city shall have absolute discretion in determining the applicability and weight of the
criteria listed above. The city is not required to select the bid with the lowest price.
(b) "Professional services" means services that involve the exercise of professional discretion
and independent judgment based on an advanced or specialized knowledge, expertise or
training gained by formal studies or experience. Such services include, but are not limited
to, those provided by accountants, appraisers, architects, attorneys, auditors, economic and
financial advisors, election consultants, engineers, environmental consultants, information
services consultants, instructors, insurance advisors, land use consultants, plan checkers,
physicians, public relations consultants, surveyors and other specialized consultants.
(c) "Purchases" refers to the purchases of supplies, equipment, personal property and services
and includes leases or rentals and transactions by which the city acquires ownership.
Sec. 2-328. - Purchasing authority; purchase order and contract approval requirements.
(a) The city council shall, by resolution, establish the thresholds for small, informal and formal
procurements.
(b) The purchasing officer shall have the authority to issue and approve purchase orders for
the purchases of any supplies, materials, services or equipment procured in accordance
with section 2-331 or section 2-332 of this division, provided that the expenditure is within
the approved budget.
(c) The city manager shall have the authority to bind the city by written contract or purchase
order for the purchase of any supplies, materials, services or equipment not subject to
formal procurement procedures, provided that the expenditure is within the approved
budget and the contract is in a form approved by the city attorney.
(d) City council authorization shall be required for the purchase of any supplies, materials,
services or equipment subject to formal procurement procedures.
(e) All written contracts and agreements shall be approved as to form by the city attorney or
his or her authorized representative prior to execution.
(f) In accordance with Section 40602 of the California Government Code, all written contracts
and agreements shall be signed by either the mayor or the city manager. Except as to the
purchasing officer's authority to issue and approve purchase orders pursuant to subsection
(b) of this section, no other city officer or employee shall have authority to bind the city by
contract or agreement.
Sec. 2-329. - Contract amendments.
(a) Amendments to purchase orders and/or contracts may be approved as follows:
(1) If the contract or purchase order was initially approved by the city manager, the city
manager shall have the authority to approve amendments to such contracts and
purchase orders that result in a total contract price that does not exceed the city
manager's contract authority as set forth in section 2-328(c) of this division.
(2) If the contract or purchase order was initially approved by the city council, the city
manager shall have the authority to approve any amendment that results in a total
contract price that does not exceed twenty-five percent (25%) of the original contract
price, or such greater amount as may be authorized by the city council at the time it
approves the contract or purchase order.
(3) If an amendment or the aggregate sum of all amendments will exceed twenty-five
percent (25%) of the original contract price or such amount as was authorized by the
city council at the time the city council approved the contract or purchase order, city
council approval shall be required.
(b) All change orders and contract amendments approved by the city manager pursuant to
subsection (a)(1) and (2) of this section shall be reported to the city council in the semi-
annual report required pursuant to section 2-337 of this division.
Sec. 2-330. - Maximum contract term.
Unless otherwise approved by the city council, the maximum length of any contract for goods
and/or services shall be no more than five (5) years, and the maximum length for any lease
agreement shall be no more than thirty (30) years.
Sec. 2-331. - Micro procurement procedures.
Purchases of supplies, materials, services and equipment with a value of up to five thousand dollars
($5,000) may be made without obtaining bids or quotes, subject, however, to fair, just and equitable
terms and conditions of purchase. Department heads are authorized to approve purchases made
pursuant to this section, provided that the expenditure is within the approved budget.
Notwithstanding the foregoing, department heads shall have no authority to execute contracts or
agreements on behalf of the city.
Sec. 2-332. - Small procurement procedures.
Purchases of supplies, materials, services and equipment with an estimated value less than the
limit set by city council resolution pursuant to section 2-328(a) of this division for small
procurements may be performed by employees of the city by force account, by negotiated contract
or by purchase order after obtaining three written quotes.
Sec. 2-333. - Informal procurement procedures.
Purchases of supplies, materials, services and equipment with an estimated value less than the
limit set by city council resolution pursuant to section 2-328(a) of this division for informal
procurements may be made in accordance with the following informal bidding procedures:
(a) Notice inviting bids — posting. All notices to vendors and consultants pursuant to this
section shall be posted at least ten (10) calendar days before bids or proposals are due on
the city's website or official web -based vendor registration and bid management system
as designated by the finance director.
(b) Notice inviting bids or proposals — contents. The notice inviting bids or proposals shall
describe the materials or services in general terms and how to obtain more detailed
information about the materials or services and state the time and place for the
submission of bids or proposals.
(c) Rejection of bids; bid irregularities. The city manager may, in his/her sole discretion, reject
any or all bids or proposals presented and waive any minor irregularity or informality in
such bids or proposals.
(d) Award of contract. Contracts shall be awarded to the lowest responsible bidder. The city
manager is authorized to award and execute contracts informally bid in accordance with
this section, provided that the expenditure is within the approved budget and the contract is
in a form approved by the city attorney.
Sec. 2-334. - Formal procurement procedures.
Purchases of supplies, materials, services and equipment with an estimated value that exceeds the
threshold set by city council resolution pursuant to section 2-328(a) of this division for formal
procurements shall be made in accordance with the following formal bidding procedures:
(a) Advertising; contents. The notice inviting formal bids shall state the time and place for the
receiving and opening of sealed bids and distinctly describe the supplies, materials,
service or equipment required. The notice shall be posted at least fourteen (14) calendar
days before the date of opening the bids on the city's website or official web -based vendor
registration and bid management system designated by the finance director. The city may
also give such other notice as it deems proper.
(b) Sealed bids and proposals. All bids or proposals shall be presented under sealed cover to the
department identified in the invitation for bids or proposals.
(c) Rejection of bids or proposals; bid or proposal irregularities. The city council, in its
discretion, may reject any and all bids or proposals presented and waive any minor
irregularity or informality in such bids or proposals.
(d) Award of contract. Contracts shall be awarded to the lowest responsible bidder.
Sec. 2-335. - Exemptions from competitive bidding.
The following are exempt from the informal and formal competitive procurement requirements
of this division. The purchases permitted under this section shall be subject to fair, just and
equitable contract conditions.
(a) A procurement for professional services.
(b) A procurement for the performance of temporary work or services.
(c) A procurement of items that are available from only one source, or only one source is able
to supply a commodity or service within the timeframe or under terms and conditions
which meet the needs of the city.
(d) Personal property sold:
(1) at an auction by a state licensed auctioneer;
(2) at a going out of business sale;
(3) by a political subdivision of this state, a state agency of this state, or an entity of the
federal government; or
(4) under an interlocal contract for cooperative purchasing.
(e) Purchases of goods that will be offered for retail sale by the city.
(f) Purchases made through a cooperative purchasing agreement or program, including, but
not limited to, the California Multiple Award Schedules Program (CMAS), the U.S.
General Services Administration (GSA) Multiple Award Schedules Program, Sourcewell,
and the U.S. Communities Government Purchasing Alliance, provided that the following
requirements are met:
(1) The purchasing officer determines the purchase is in the best interest of the city;
(2) The purchasing officer determines the purchase is to the city's economic advantage;
and
(3) The agreement was competitively awarded using a process that complies with policies,
rules, and regulations as approved by the purchasing officer.
(g) Purchases made using another governmental or public agency's contract or substantially
the same terms, provided:
(1) The other agency used a solicitation method substantially similar to the method
required by this division; and
(2) The purchasing officer determines that the city will realize overall value by utilizing
the other agency's contract or contract terms compared to the city performing its own
procurement;
(h) Purchases of goods and/or services obtained from or through an agreement with any
governmental, public or quasi -public entity.
(i) Procurements funded by grants, donations or gifts when the special conditions attached to
the grants, donations or gifts require the procurement of particular goods and/or services.
(j) When the city council determines, by minute action or resolution, that compliance with the
bidding requirements and procedures is inefficient, impractical or not in the best interest of
the city, based on specifically identified conditions set forth on the record.
(k) In the event of an emergency, as defined herein, the city manager may authorize the
suspension of normal bidding or purchasing and procurement requirements for projects and
services related to abatement of the impacts or effects of such emergency. With respect to
contracts subject to formal bidding requirements, the city council shall, if possible, ratify
such emergency suspension of procedures at the next properly noticed city council meeting
following the emergency procurement and consider whether further suspension of
procedures is required to abate the impacts of the emergency. An emergency shall be
deemed to exist if
(1) There is a public calamity such as fire, flood, earthquake, storm or similar disaster that
poses a serious threat to the public safety or city property; or
(2) There is an immediate need to prepare for or provide national or local defense; or
(3) There is a breakdown in machinery, equipment, property or an essential service which
requires the immediate purchase of supplies or services to protect the public health,
welfare or safety; or
(4) An essential operation or city service affecting the public health, welfare or safety
would be greatly hampered if adherence to the prescribed purchasing procedures would
cause undue delay in procurement of the needed item or service.
Sec. 2-336. - Surplus equipment and supplies.
(a) Each department shall submit to the purchasing officer, at such times and in such form
prescribed by the purchasing officer, reports listing all supplies and equipment which are
no longer used or which have become obsolete or worn out.
(b) The purchasing officer may cause the sale, exchange, disposal or donation of all equipment,
goods, materials and supplies that are not or cannot be used by any department. Any such
sale, exchange, disposal or donation shall be in accordance with approval requirements
established by city council by resolution.
(c) City employees shall only be eligible to bid on and/or purchase items in accordance with
the purchasing manual.
(d) Any surplus supplies or equipment originally purchased with federal funds shall be
disposed of in accordance with the federal requirements for the disposal of that particular
supply or equipment. Additionally, the proceeds from the sale or trade-in of surplus
supplies or equipment originally purchased with federal funds shall be used to offset the
cost of replacing said supplies or equipment.
Sec. 2-337. - Reporting requirements.
On a semi-annual basis, the purchasing officer shall present to the city council during an open
meeting a report listing all contracts and purchase orders that have been awarded by the city
manager pursuant to the city manager's authority pursuant to this division during the preceding six
months. Such reports shall include, at minimum, a description of the materials or services
performed, the name of the party or parties with whom the city contracted, and the total amount of
the expenditure associated with the contract (including any amendments).
Sec. 2-338. - Ethics.
(a) Statement of policy. City employees shall discharge their duties impartially so as to ensure fair
competitive access to city procurement opportunities by responsible contractors. Moreover,
they shall conduct themselves in such a manner as to foster public confidence in the integrity
of city procurement activities.
(b) Gratuities. No person shall offer, give or agree to give any city employee any gratuity or offer
of employment in connection with a procurement by the city. The purchasing officer and every
officer and employee of the city are expressly prohibited from soliciting, demanding,
accepting, directly or indirectly, or agreeing to accept, from any person, company, firm or
corporation to which any purchase order or contract is, or might be awarded, any gratuity, offer
of employment or anything of value whatsoever as set forth in the city's conflict of interest
policy in connection with a procurement by the city.
SECTION 2. Amendment to Division 3 of Article V1I of Chanter 2. Sections 2-351
(Definitions), 2-352 (Adoption of Plans, Specifications, and Working Details), 2-353 (Small Project
Procurement Procedure), 2-354 (Informal Bidding Procedures), 2-355 (Formal Bidding Procedures),
2-356 (Reporting Requirements) and 2-358 (Change Orders for Contracts of Public Projects) of
Division 3 (Contracting for Public Projects) of Article VII (Purchases and Sales) of Chapter 2
(Administration) of the West Covina Municipal Code are hereby amended to read as follows:
Sec. 2-351. - Definitions.
The following words, terms and phrases when used in this division shall have the meanings
ascribed to them in this section, except where the context clearly indicates a different meaning:
Act means the California Uniform Public Construction Cost Accounting Act, Public Contract
Code section 22000 et seq.
Emergency has the meaning set forth in Public Contract Code section 1102.
Facility has the meaning set forth in Public Contract Code section 22002.
Public Contract Code means the Public Contract Code of the State of California.
Public project has the meaning set forth in Public Contract Code section 22002.
Sec. 2-352. - Adoption of plans, specifications, and working details.
The city council delegates to the public services director and the city engineer the authority to approve
and/or adopt the plans, specifications, and working details for all public projects, including public
projects exceeding the amount specified in Public Contract Code section 22032(c).
Sec. 2-353. - Small project procurement procedures.
Public projects in the amount set forth in Public Contract Code section 22032(a), as amended from
time to time, or less may be performed by employees of the city by force account, by negotiated
contract or by purchase order without competitive bidding. The city manager is authorized to approve
and execute contracts or purchase orders issued pursuant to this section, provided that the expenditure
is within the approved budget.
Sec. 2-354. - hiformal bidding procedures.
Public projects in the amount set forth in section 22032(b) of the Public Contract Code, as amended
from time to time, or less may be let to contract by informal procedures as set forth in the Act,
including the following procedures:
(a) Contractors list. The city shall comply with the requirements of Public Contract Code section
22034 regarding maintaining a list of qualified contractors identified according to categories
of work.
(b) Notice inviting informal bids —Circulation. Where a public project is to be performed which
is subject to the provisions of this section, a notice inviting informal bids shall be circulated
using one or both of the following alternatives:
(1) Notices inviting informal bids may be mailed, faxed, or emailed to all contractors for the
category of work to be bid, as shown on the list developed in accordance with subsection
(a) above.
(2) Notices inviting informal bids may be mailed, faxed, or emailed to all construction trade
journals as specified by the California Uniform Construction Cost Accounting
Commission in accordance with section 22036 of the Public Contract Code. Additional
contractors and/or construction trade journals may be notified at the discretion of the
public services director or designee.
(c) Notice inviting informal bids —Proprietary products and services. Notwithstanding the
foregoing requirements, if the product or service is proprietary in nature such that it can be
obtained only from a certain contractor or contractors, the notice inviting informal bids may
be sent exclusively to such contractor or contractors.
(d) Notice inviting informal bids —Mailing. All mailing of notices to contractors and construction
trade journals pursuant to this section shall be completed at least ten (10) calendar days before
bids are due.
(e) Notice inviting informal bids —Contents. The notice inviting informal bids shall describe the
project in general terms and how to obtain more detailed information about the project, and
state the time and place for the submission of bids.
(f) Rejection of bids; bid irregularities. The city manager may, in his/her sole discretion, reject
any or all bids presented and waive any minor irregularity or informality in such bids.
(g) Award of contract. The city manager is authorized to award and execute contracts informally
bid in accordance with this section, provided that the expenditure is within the approved
budget and the contract is in a form approved by the city attorney. Such contracts shall be
awarded to the lowest responsible bidder.
(h) Tie bids; no bids received. If two (2) or more bids are the same and the lowest, the city
manager may accept the one he/she chooses. If no bids are received through the informal
procedures set forth in this section, the project may be performed by city employees, by force
account or negotiated contract without further complying with this section.
(i) Bids over informal bidding limit. If all bids received are in excess of the amount set forth in
Public Contract Code section 22034(d), as amended from time to time, the city council may,
by adoption of a resolution by a four -fifths (4/5) vote, award the contract, at the amount
specified in Public Contract Code section 22034(d), as amended from time to time, or less, to
the lowest responsible bidder, if it determines the cost estimate of the city was reasonable.
(j) Acceptance of work. Upon the completion of work pursuant to a contract awarded pursuant
to this section, the city manager may accept the work and may authorize the filing of the notice
of completion, the release of funds retained upon such filing, and the release of any bonds
upon the conclusion of their respective warranty periods.
(k) Performance bonds. The city may require a performance bond before entering a contract
awarded pursuant to this section in such amount as the public services director or his/her
designee finds reasonably necessary to protect the best interests of the city. If the city requires
a performance bond, the form and amount of the bond shall be described in the notice inviting
bids.
Sec. 2-355. - Formal bidding procedures.
Public projects in the amount set forth in section 22032(c) of the Public Contract Code, as
amended from time to time, or greater shall be let to contract in accordance with the procedures set
forth in Public Contract Code section 22037 et seq., including the following procedures:
(a) Advertising; contents. The notice inviting formal bids shall state the time and place for the
receiving and opening of sealed bids and distinctly describe the project. The notice shall be
published at least fourteen (14) calendar days before the date of opening the bids in a
newspaper of general circulation, printed and published in the city; or, if there is no newspaper
printed and published within the city, in a newspaper of general circulation which is circulated
within the city, or, if there is no newspaper which is circulated within the city, publication
shall be by posting the notice in at least three (3) places within the city as have been designated
by ordinance or regulation of the city as places for the posting of its notices. The notice
inviting formal bids shall also be sent electronically, if available, by either facsimile or
electronic mail and mailed to all construction trade journals specified by the California
Uniform Construction Cost Accounting Commission in accordance with section of the Public
Contract Code. The notice shall be sent at least fifteen (15) calendar days before the date of
opening the bids. In addition to notice required by this section, the city may give such other
notice as it deems proper.
(b) Sealed bids. All bids shall be presented under sealed cover to the department identified in the
invitation for bids. Bids shall be opened in public at the time and place stated in the notice
inviting bids.
(c) Bidder's security. All bids presented shall be accompanied by bidder's security in the form
and amount prescribed by Public Contract Code section 20170 et seq., which security shall be
dealt with as described therein. The city council may, on refusal or failure of the successful
bidder to execute the contract, award it to the next lowest responsible bidder. If the city council
awards the contract to the second lowest bidder, the amount of the lowest bidder's security
shall be applied by the city to the difference between the low bid and the second lowest bid,
and the surplus, if any, shall be returned to the lowest bidder if cash or a check is used, or to
the surety on the bidder's bond if a bond is used. This procedure shall be followed with the
next lowest bidder in order upon any additional refusal or failure of the next lowest responsible
bidder to execute the contract.
(d) Rejection of bids; bid irregularities. The city council, in its discretion, may reject any and all
bids presented in accordance with the requirements of Public Contract Code section 22038
and waive any minor irregularity or informality in such bids. If after the first invitation of bids
all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the
option of either of the following:
(1) Abandoning the project or readvertising for bids in the manner described by this division.
(2) By passage of a resolution by a four -fifths (115) vote of the city council declaring that the
project can be performed more economically by the employees of the city, the city may
have the project done by force account without further complying with this division.
(e) Award of contract. Contracts for public projects subject to formal bidding requirements shall
be awarded by the city council. Such contracts shall be awarded to the lowest responsible
bidder.
(f) Tie bids; no bids received. If two (2) or more bids are the same and the lowest, the city council
may accept the one it chooses. If no bids are received through the formal procedures set forth
in this section, the project may be performed by employees of the city by force account, or
negotiated contract, without further complying with this division.
(g) Performance bonds. The city may require a performance bond before entering a contract
awarded pursuant to this section in such amount as the public services director or his/her
designee finds reasonably necessary to protect the best interests of the city. If the city requires
a performance bond, the form and amount of the bond shall be described in the notice inviting
bids.
Sec. 2-356. - Reporting requirements.
On a semi-annual basis, the city manager shall present to the city council during an open
meeting a report listing all contracts and purchase orders that have been awarded by the city manager
pursuant to the city manager's authority pursuant to this division during the preceding six (6) months.
Such reports shall include, at minimum, a description of the public project performed, the name of
the party or parties with whom the city contracted, and the total amount of the expenditure associated
with the contract (including any amendments or change orders).
Sec. 2-358. - Change orders on contracts for public projects.
(a) The city has, in section 19-1 of this Code, adopted the standard specifications for public works
construction ("the Green Boole'), except to the extent those specifications conflict with any
other provision of the city's municipal code or standard specifications. The city council
intends to limit the use of change orders for public works contracts notwithstanding any
contrary provision of the Green Book.
(b) Following the award of a contract or purchase order awarded pursuant to this division, such
contract or purchase order may be amended by the issuance of a change order or contract
amendment, provided the change which is the subject of the change order or contract
amendment is reasonably related to the scope of the original contract or purchase order.
Notwithstanding any provision of this division to the contrary, unless a lower limit has been
set by applicable law or the city council, the city manager is authorized to approve and execute
the following change orders or contract amendments for contracts and purchase orders
awarded pursuant to this division without city council approval, provided that the expenditure
is in the approved budget:
(1) For contracts or purchase orders issued pursuant to section 2-353 of this division, any
change order or contract amendment which results in the total contract price of the amount
set forth in Public Contract Code section 22032(a) or less; and
(2) For contracts awarded pursuant to section 2-354 of this division, any change order or
contract amendment which results in a total contract price of the amount set forth in Public
Contract Code section 22032(b) or less.
(3) For contracts awarded by the city council with an approved contingency, change orders
within such contingency.
(c) Any change order or contract amendment for any contract awarded pursuant to this division
which results in a total contract price in excess of the amounts specified in subsection (b) of
this section must be approved by the city council.
(d) All change orders and contract amendments approved by the city manager pursuant to
subsection (b) of this section shall be reported to the city council in the city manager's semi-
annual report required pursuant to section 2-356 of this division.
SECTION 3. Environmental Compliance. The City Council hereby finds that it can be seen
with certainty that there is no possibility the adoption and implementation of this Ordinance may have
a significant effect on the environment. The Ordinance is therefore exempt from the environmental
review requirements of the California Environmental Quality Act pursuant to Section 15061(b)(3)
of Title 14 of the California Code of Regulations.
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, or portion
of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any
court of competent jurisdiction, such decision shall not affect the validity of the remaining portions
of this Ordinance. The City Council of the City of West Covina hereby declares that it would have
adopted this Ordinance and each section, subsection, sentence, clause, phrase, or portion thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases,
orportions be declared invalid or unconstitutional.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after
its final passage.
SECTION 6. Certification. The City Clerk shall certify to the passage and adoption of
this Ordinance and shall cause the same to be published or posted in the manner required by law.
PASSED, APPROVED AND ADOPTED this day of , 2022.
APPROVED AS TO FORM
Thomas P. Duarte
City Attorney
Dario Castellanos
Mayor
ATTEST
Lisa Sherrick
Assistant City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Ordinance No. 2498 was introduced at a regular meeting of the
City Council held on the 7th day of June, 2022, and adopted at a regular meeting of the City
Council on the day of , 2022 by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk