Item 4 - CONSIDERATION OF AN ORDINANCE AMENDING PURCHASING PROCEDURESAGENDA ITEM NO.4
AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: September 20, 2022
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING 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. 2501 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, AMENDING ARTICLE VII (PURCHASES AND SALES) OF CHAPTER 2
(ADMINISTRATION) OF THE WEST COVINA MUNICIPAL CODE
BACKGROUND:
In June 2022, the City Council adopted Ordinance No. 2498, repealing and replacing Divisions 1
(Generally) and 2 (Administration) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of
the West Covina Municipal Code (WCMC) in their entirety and amending Division 3 (Contracting for
Public Projects) of Article VII of Chapter 2 of the WCMC. During this process, prior modifications to
Article VII, which incorporated SB 1383 procurement requirements (adopted through Urgency Ordinance
No. 2494), were inadvertently omitted. Additionally, there is a need to clarify the requirements for change
orders for public projects for consistency with the California Uniform Public Construction Cost
Accounting Act.
DISCUSSION:
The proposed ordinance includes the following modifications in Article VII (Purchases and Sales) of
Chapter 2 (Administration) of the West Covina Municipal Code:
. To re -incorporate SB 1383 procurement requirements, the following section is proposed to be
added as Section 2-321:
Pursuant to SB 1383 Regulations, city departments, and suppliers and service providers to the city,
as applicable, shall comply with the city's environmentally preferable purchasing policy, recovered
organic waste product procurement policy and recycled -content paper procurement policy. As used
herein, "SB 1383 Regulations" shall have the meaning set forth in article IV (Mandatory Organic
Waste Disposal Reduction) of chapter 12 of this code.
. To clarify procedures for public projects:
Sec. 2-354 - Informal bidding procedures.
Pursuant to subsection (f) of Section 2-354 of the WCMC as currently written, the City Manager has
the discretion to reject any and all bids received for informally bid public projects (projects under
$200,000). However, based upon further review of Public Contract Code requirements, staff
believes rejection of bids must comply with the requirements set forth in Public Contract Code
section 22038. Therefore, staff is proposing to revise subsection (f) of Section 2-354 to read as
follows, consistent with the procedure for rejecting bids for formally bid projects (projects over
$200,000) (WCMC Section 2-355(d)):
(f) Rejection of bids; bid irregularities. The city manager may, in his/her sole discretion, waive any
minor irregularity or informality in any bid. The city council, in its discretion, may reject any and all
bids presented in accordance with the requirements of Public Contract Code section 22038. 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 (4/5) 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.
Sec. 2-358. - Change orders on contracts for public projects:
Pursuant to subsections (b) and (c) of Section 2-358 of the WCMC as currently written, any change
order or contract amendment for any contract awarded pursuant to Division 3 which results in a
total contract price in excess of $60,000 or $200,000, depending on how the contract was awarded,
must be approved by the City Council. However, pursuant to requirements of the California Uniform
Public Construction Cost Accounting Act (the "Act'), if the cost of a project that was awarded
pursuant to Public Contract Code section 22032(a) will exceed the amount set forth in Public
Contract Code section 22032(a) ($60,000), the work will be subject to competitive bidding
requirements. Similarly, if the cost of a project that was awarded pursuant to Public Contract Code
section 22032(b) will exceed the amount set forth in Public Contract Code section 22032(b)
($200,000), the work will be subject to competitive bidding requirements.
Therefore, staff is proposing to amend subsection (c) of Section 2-358 to read as follows:
(c)
1. Any change order or contract amendment for any contract or purchase order awarded
pursuant to section 2-353 of this division which would result in a total contract price in excess
of the amount specified in set forth in Public Contract Code section 22032(a) shall be subject
to competitive bidding requirements.
2. Any change order or contract amendment for any contract awarded pursuant to section 2-354
of this division which would result in a total contract price in excess of the amount specified in
set forth in Public Contract Code section 22032(b) shall be subject to competitive bidding
requirements.
3. Any change order or contract amendment for any contract awarded pursuant to section 2-355
of this division which results in a total contract price in excess of the amount specified in
subsection (b)(3) of this section must be approved by the city council.
Additionally, Section 22033 of the Public Contract Code provides that it is unlawful to split or
separate into smaller work orders or projects any project for the purpose of evading the provisions
of the Act requiring work to be done by contract after competitive bidding. This includes rejection of
all bids, claiming work can be done less expensively by in-house.
Therefore, although the City is subject to the prohibition set forth in Section 22033, staff proposes
to add an express prohibition within the WCMC by adding a new Section 2-359 to read as follows:
In accordance with Public Contract Code section 22033, work or projects shall not be split or
separated into smaller work orders or projects for the purpose of evading competitive bidding
requirements.
LEGAL REVIEW:
The City Attorney's Office has reviewed the ordinance and approved it as to form.
Prepared by: Stephanie Sikkema, Finance Director
Fiscal Impact
FISCAL IMPACT:
This is strictly an administrative item, therefore; there is no fiscal impact associated with this action.
Attachments
Attachment No. 1 - Ordinance No. 2501
CITY COUNCIL GOALS & OBJECTIVES: Protect Public Safety
Enhance City Image and Effectiveness
Maintain Good Intergovernmental Relations
Achieve Fiscal Sustainability and Financial Stability
ATTACHMENT NO. 1
ORDINANCE NO. 2501
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA, CALIFORNIA, AMENDING 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 of Chapter 2 of the West Covina Municipal
Code to establish procedures and requirements for contracting for public projects in accordance
with the California Uniform Public Construction Cost Accounting Act and State law; and
WHEREAS, on March 15, 2022, the City Council adopted Urgency Ordinance No. 2494
to implement the requirements of Senate Bill 1383, the Short -Lived Climate Pollutant Reduction
Act of 2016; and
WHEREAS, on June 21, 2022, the City Council adopted Ordinance No. 2498, which
amended Divisions 1, 2 and 3 of Article VII of Chapter 2 of the West Covina Municipal Code; and
WHEREAS, the City Council desires to amend Division 1 of Article VII of Chapter 2 of the
West Covina Municipal Code to re -incorporate SB 1383 procurement requirements previously
adopted through Urgency Ordinance No. 2494; and
WHEREAS, the City Council desires to make certain clarifying changes to Division 3 of
Article VII of Chapter 2 of the West Covina Municipal Code for compliance with State law; and
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 Division 1 of Article VII of Chapter 2. Division 1 (Generally)
of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal
Code is hereby amended to add a new Section 2-321 to read as follows:
Sec. 2-321. — SB 1383 procurement requirements.
Pursuant to SB 1383 Regulations, city departments, and suppliers and service providers to the
city, as applicable, shall comply with the city's environmentally preferable purchasing policy,
recovered organic waste product procurement policy and recycled -content paper procurement
policy. As used herein, "SB 1383 Regulations" shall have the meaning set forth in article IV
(Mandatory Organic Waste Disposal Reduction) of chapter 12 of this code.
SECTION 2. Amendment to Division 3 of Article VII of Chapter 2. Subsection (f) of Section
2-354 (Informal Bidding Procedures) of Division 3 (Contracting for Public Projects) of Article VII
(Purchases and Sales) of Chapter 2 (Administration) of the West Covina Municipal Code is hereby
amended to read as follows:
(f) Rejection of bids; bid irregularities. The city manager may, in his/her sole discretion,
waive any minor irregularity or informality in any bid. The city council, in its discretion,
may reject any and all bids presented in accordance with the requirements of Public
Contract Code section 22038. 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 (4/5) 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.
SECTION 3. Amendment to Division 3 of Article VII of Chapter 2. Subsection (c) of Section
2-358 (Change Orders on Contracts for 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 is hereby amended to read as follows:
(c)
(1) Any change order or contract amendment for any contract or purchase order
awarded pursuant to section 2-353 of this division which would result in a total
contract price in excess of the amount specified in setforth in Public Contract Code
section 22032(a) shall be subject to competitive bidding requirements.
(2) Any change order or contract amendment for any contract awarded pursuant to
section 2-354 of this division which would result in a total contract price in excess
of the amount specified in set forth in Public Contract Code section 22032(b) shall
be subject to competitive bidding requirements.
(3) Any change order or contract amendment for any contract awarded pursuant to
section 2-355 of this division which results in a total contract price in excess of
the amount specified in subsection (b)(3) of this section must be approved by the
city council.
SECTION 4. Amendment to Division 3 of Article VII of Chapter 2. Division 3 (Contracting
for Public Projects) of Article VII (Purchases and Sales) of Chapter 2 (Administration) of the West
Covina Municipal Code is hereby amended to add a new Section 2-359 to read as follows:
Sec. 2-359. — Prohibition against splitting or separating projects.
In accordance with Public Contract Code section 22033, work or projects shall not be split or
separated into smaller work orders or projects for the purpose of evading competitive bidding
requirements.
SECTION 5. Environmental Compliance. Pursuant to the provisions of the California
Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000 et seq.)
and State CEQA Guidelines (Sections 15000 et seq.), the City Council finds that this Ordinance is
not a "project" and further, that it can be seen with certainty that there is no possibility that the
Ordinance may have a significant effect on the environment, either directly or indirectly, and that
therefore no environmental review under the CEQA is required, pursuant to CEQA Guidelines
Section 15061(b)(3).
SECTION 6. 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 7. Effective Date. This Ordinance shall take effect thirty (30) days after its
final passage.
SECTION 8. 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. 2501 was introduced at a regular meeting of the City
Council held on the 20th day of September, 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