Chapter 34 — FINANCE; PURCHASING

The fiscal year of the city shall begin on July 1 of each calendar year and shall end on the June 30 of the following year.

('83 Code, § 3.04.010)

Prior to the beginning of each fiscal year, the City Manager shall prepare a proposed annual budget, covering expected income and all proposed expenditures of the city for the forthcoming fiscal year. ('83 Code, § 3.04.020)

Not less than 30 days prior to the commencement of each fiscal year, the City Manager shall transmit copies of the proposed budget, and his budget message, to the City Council. In addition, three copies of the proposed budget, and the City Manager's budget message, shall be on file in the office of the City Clerk, available for examination by members of the general public.

('83 Code, § 3.04.030) (Ord. 845, passed - -82)

(A) Upon submission of the budget, the City Council shall conduct a public hearing upon the adoption of the budget, which hearing shall be held at the first regular meeting of the City Council in the month of June of each year. (B) Notice shall be given of the public hearing in the manner as the City Council deems appropriate to give reasonable notice thereof, to the residents of the city.

(C) At the time of the public hearing, the City Council shall consider evidence presented by any interested person concerning any or all of the items as contained in the proposed budget.

(D) Upon conclusion of the public hearing, the City Council shall make the alterations, deletions or additions to the budget as proposed, as it finds to be in the public interest, and thereafter, it shall approve the budget as devised. ('83 Code, § 3.04.040)

The approval shall take place prior to the commencement of the fiscal year to which the budget relates. Upon its adoption by a majority vote of a quorum of the City Council, the budget shall be in effect for the ensuing fiscal year. The budget as approved shall be filed with the City Clerk, shall be reproduced and copies made available for the use of the public and of departments, officers and agencies of the city. ('83 Code, § 3.04.050) (Ord. 845, passed - -82)

(A) At any meeting after adoption of the budget, total appropriations may be amended by the City Council by a majority vote of a quorum of the City Council.

(B) (1) For transfers of appropriations within the same cost center program, such transfers in an amount less than $10,000 may be approved by the department head, and such transfers up to $15,000 may be approved by the Chief Executive Officer. For amounts greater than $15,000, City Council approval is required.

(2) For transfer of appropriations related to contracts approved under the Chief Executive Officer authority, such transfers may be approved by the Chief Executive Officer authority in conformity with §§ 34.26 and 34.37.

(C) Transfers up to $15,000 between cost center programs may be approved by the City Manager. For amounts greater than $15,000, City Council approval is required.

(D) All transfers of appropriations in accordance with subsections (B) and (C) above shall be within the same fund.

(E) Any transfer of appropriations from one fund to another fund is considered a new appropriation requiring a budget amendment, and such appropriations must be approved by the City Council by a majority vote of a quorum of the City Council.

(F) All transfers made pursuant to the above provisions shall be submitted to the City Council for informational purposes.

(‘83 Code, § 3.04.060) (Ord. 845, passed - -82; Am. Ord. 1130, passed 4-15-98; Am. Ord. 1509, passed 5-15-24)

From and after the effective date of the adoption of a budget, the several amounts stated therein as proposed expenditures, shall be deemed appropriated to the several departments, offices and agencies for the respective objects and purposes therein stated. All appropriations with the exception of capital improvement programs, shall lapse at the end of the fiscal year to the extent that they shall not have been expended or lawfully encumbered. ('83 Code, § 3.04.070) (Ord. 945, passed - -86)

Claims, demands and warrants shall be processed in the time, form and manner as approved by the City Council, consistent with applicable laws.

('83 Code, § 3.04.080)

Upon recommendation of the City Manager, the City Council shall obtain the services of a qualified person or firm to conduct periodic audits of all of the city's financial books and records, if it finds the public interest so requires. ('83 Code, § 3.04.090)

The City Manager shall recommend to the City Council all fees to be charged for investigations, use of public buildings and city property, services provided by city employees, filings, processings, recordations, citations and other appropriate charges levied by the city. ('83 Code, § 3.04.100)

PURCHASING

In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. The Director of Administrative Services is designated as the purchasing officer. ('83 Code, § 3.08.010) (Am. Ord. 1101, passed 5-17-95)

The provisions of this section apply to the purchase of supplies and equipment and do not apply to the purchase of real property or the procurement of personal services. The provisions of this chapter do not apply to the purchase of supplies and equipment where the City Council has, by contract or resolution, contracted for or transferred the authority to make the purchase of supplies and equipment to another governmental agency or officer thereof pursuant to lawful authority, and where the other governmental agencies or officer, in the purchase of supplies and equipment, follows to the satisfaction of the purchasing officer policies and procedures in substantial compliance with the provisions of Cal. Gov't Code §§ 54201 - 54294.

('83 Code, § 3.08.020) (Am. Ord. 1101, passed 5-17-95)

Using departments shall submit requests for supplies and equipment to the purchasing officer by standard requisition forms.

('83 Code, § 3.08.030) (Am. Ord. 1101, passed 5-17-95)

Purchases of supplies and equipment for city use shall be made and accomplished in conformity with §§ 34.26 through ', except:

(A) Emergency purchases. The city is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the CEO the authority to waive any procedures in the purchasing guidelines that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. “Emergency purchases” shall be made only for the reasons of preserve or protect life, health or property or upon natural disaster or forestall a shutdown of essential public services. The CEO may sign contracts to be later ratified by the City Council up to any amount as deemed necessary.

(B) Sole source purchases. Commodities and services that can be obtained from only one vendor are exempt from competitive bidding. Sole source purchases may include, but are not limited to, proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area or a certain product proven to be the only acceptable option. All sole source purchases shall be supported by written documentation signed by the appropriate department head and forwarded to the Finance Director or designee. Final determination of whether or not an item is a valid sole source purchase will be made by the Purchasing Officer or designee. A sole source decision is not permitted merely upon the grounds that such approach is the most convenient or that the subject is preferred by the staff.

• (C) Cooperative purchases.

(1) Cooperative purchasing is used by municipalities or states in the purchase of goods and services. This arrangement offers the participants significant economies of scale. Although one municipality may issue specifications and receive bids, each entity independently executes its own contract, administers the procurement function, and finances the purchase.

(2) This is an acceptable practice that allows municipal agencies to “piggy-back” on contracts and bids for services and supplies issued by a wide range of other governmental agencies. Cooperative purchasing agreements may be entered into with state, local governments, and non-profit entities.

(D) Purchase order exemptions. Certain purchases are not readily adaptable to the open market and formal bidding process. These purchases are generally for items where the competitive bid process or obtaining quotes is not applicable or where a check is required to accompany the order. Following is a list of allowable exemptions:

• (1) Advertisements and notices;

• (2) Membership dues;

• (3) Insurance claims and premiums;

• (4) Utility payments;

• (5) Subscriptions; and

• (6) Travel expense/advances.

(E) When the City Council by a four-fifths vote determines to dispense with such bidding and other procedures required by the above-mentioned sections in any individual instance upon a finding by the Council that it would be impractical, useless, or uneconomical in such instance to follow the procedures, and that the welfare of the public would be promoted by dispensing with the same.

(‘83 Code, § 3.08.040) (Ord. 819, passed - -81; Am Ord. 845, passed - -82; Am. Ord. 1101, passed 5-17-95; Am. Ord. 1457, passed 12- 2-20)

Purchases of supplies and equipment shall be made only by purchase order. ('83 Code, § 3.08.050) (Am. Ord. 1101, passed 5-17-95)

Except in cases of emergency as determined by the Director of Administrative Services, the purchasing officer shall not issue any purchase order for supplies or equipment unless there exists an unencumbered appropriation in the fund account against which the purchase is to be charged.

('83 Code, § 3.08.060) (Am. Ord. 1101, passed 5-17-95)

(A) Except as otherwise provided in this subchapter, purchases and contracts for supplies and equipment, which do not constitute a public project as defined by Cal. Pub. Cont. § 20161 shall require the following approvals:

(B) All contracts shall be by written contract with the lowest responsible bidder pursuant to the public contract procedure prescribed in §§ 34.27 through 34.33.

(C) Where possible, preference shall be given to local bidders or vendors, if all other factors in the bidding process are equal.

(‘83 Code, § 3.08.070) (Ord. 845, passed - -82; Am. Ord. 1101, passed 5-17-95; Am. Ord. 1250, passed 11-17-04; Am. Ord. 1509, passed 5-15- 24)

Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids. The purchasing officer shall publicize each notice inviting bids in such manner as is calculated to advise all prospective bidders thereof. ('83 Code, § 3.08.080) (Am. Ord. 1101, passed 5-17-95)

When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notices inviting bids. The security shall be returned upon rejection of a bid; provided, that the successful bidder shall forfeit his bid security upon his refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. 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 next 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. ('83 Code, § 3.08.090) (Am. Ord. 1101, passed 5-17-95)

Sealed bids shall be submitted to the City Clerk's office and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection.

('83 Code, § 3.08.100) (Am. Ord. 1101, passed 5-17-95)

Contracts shall be awarded to the lowest responsible bidder, except as otherwise provided in this subchapter. ('83 Code, § 3.08.110) (Am. Ord. 1101, passed 5-17-95)

In its discretion, the City Council may reject all bids presented and readvertise for bids. ('83 Code, § 3.08.120) (Am. Ord. 1101, passed 5-17-95)

If two or more bids received are for the same total amount or unit price, quality and service being equal, the city council shall give preference to local bidders or vendors; if there are none, it may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders.

('83 Code, § 3.08.130) (Am. Ord. 1101, passed 5-17-95)

The City Council shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the city. If the City Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

('83 Code, § 3.08.140) (Am. Ord. 1101, passed 5-17-95)

(A) Purchases of supplies and equipment of an estimated value in the amount of $7,500 or less may be made by the purchasing officer in the open market without observing the procedure described by §§ 34.26 through 34.33.

(B) The open market procedure to be utilized pursuant to this section shall be set forth in administrative regulations approved by City Council.

(1) Number of bids. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder in accordance with appropriate administrative rules.

(2) Notice inviting bids. The purchasing officer shall solicit bids from prospective vendors.

('83 Code, § 3.08.150) (Ord. 845, passed - -82; Am. Ord. 1101, passed 5-17-95)

The purchasing officer shall inspect supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications.

('83 Code, § 3.08.160) (Am. Ord. 1101, passed 5-17-95)

Whenever bids are required by law or by this code for the letting of contracts, the doing of work or the furnishing of supplies, equipment or materials, all of the steps, acts and proceedings required by law or by this code shall be fully complied with, and in particular and supplementary to the procedure set out in this section regulating the notices inviting bids, the publication and posting of the notices, and the opening of the bids, shall be followed.

(A) Notice; contents. The notice inviting bids shall set a date for the opening of bids. All notices, whether mailed, published, or posted, shall state the date, the hour, and the place at which the bids called for are to be opened and shall also state the date, the hour, and the place of the Council meeting at which the City Council intends to take action on the bids.

(B) Bids; opening. All bids shall be returnable to the City Clerk and at the hour and date stated in the notice. All bids shall be publicly opened and declared. From and after the time of their opening, the City Clerk shall, upon request of any interested party, permit examination of the bids.

(C) Bids; awarding. After opening of the bids, the City Council shall proceed in accordance with applicable provisions of law or this code either to award the bid and to let the contract therein referred to, or to take such other action as may be authorized by law.

('83 Code, § 3.08.170) (Am. Ord. 1101, passed 5-17-95)

(A) Professional services are unique by their nature; therefore, they are not subject to competitive bidding. When procuring specialized services, the city is principally dependent upon the skill, integrity, judgment, and ability of the service provider rather than the dollar cost of the direct labor and material. Pursuant to § 37103 of the Cal. Government Code, “the legislative body may contract with any specially trained and experienced person, firm, or corporation for special services and advice in financial, economic, accounting, engineering, legal or administrative matters. It may pay such compensation to these experts as it deems proper.” When contracting for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services, requirements of §§ 4525 through 4529.5 of the Cal. Government Code must be met unless the Chief Executive Officer determines that the services needed are more of a technical nature and involve little professional judgment and that requiring bids would be in the public interest.”

(B) For outsource services such as City Attorney, waste collection services, information technology, and other ongoing professional services, the City Council may extend such contracts upon evaluation and recommendation. Upon a successful evaluation, the contract may be extended.

(C) The agreement will normally give both the city and the contractor/consultant the ability to end the contract with 30 days (or longer) notice and may give the city (or the City Council) the ability to terminate the agreement at any time.

(D) Contracts for legal defense, legal advice, or legal services are specifically exempt from competitive bidding in the California Public Contract Code (“PCC”). The City of Baldwin Park will follow state law and the PCC regarding all legal services. PCC § 10335.5 (c)(4) states as follows: “the following consulting services contracts are exempt from the advertising and bidding requirements of this article… (4) contracts for legal defense, legal advice or legal services.” See Public Contract Code § 10335.5(c)(4).

(E) Professional services, except contracts for legal defense, legal advice, or legal services, shall be obtained by soliciting at least three requests for proposals (RFPs) or request for qualifications (RFQs). For amounts up to $50,000, three written or verbal proposals can be obtained, and the CEO may approve and enter into the agreement. For amounts between $50,001 and $100,000, three informal written proposals can be obtained. For amounts over $100,000, three formal written proposals are required. All agreements over $50,000.01 shall be approved by the City Council and signed by the Mayor. The City Council may also direct staff to waive the RFP or RFQ process for professional services in the situation of emergency, in conformity with § 34.23 and under circumstances of when it is not in the best financial interest of the public.

ts over $100,000, three formal written proposals are required. All agreements over $50,000.01 shall be approved by the City Council and signed by the Mayor. The City Council may also direct staff to waive the RFP or RFQ process for professional services in the situation of emergency, in conformity with § 34.23 and under circumstances of when it is not in the best financial interest of the public.

(F) For all professional service contracts, over $24,999.99, except contracts for legal defense, legal advice, or legal services, the standard Consultant Agreement shall be used and a separate “Scope of Work” attached. Once completed, these documents shall be submitted to the City Attorney for review and approval. (Ord. 1457, passed 12-2-20; Am. Ord. 1509, passed 5-15-24)

(A) Public project – as defined by the California Public Contract Code, is a project for the construction, reconstruction, erection, alteration, renovation, improvement, demolition, painting, repainting, or repair of any

publicly owned, leased or operated facility.

(B) When contracting for public projects, the city will comply with The Uniform Public Construction Cost Accounting Procedures in Accordance with §§ 22000 to 22045 of the Public Contract Code. The contract is awarded to the lowest responsible bidder.

(C) Levels of bidding required.

• (1) Force account, negotiations, or PO – public projects up to $60,000.

• (2) Informal bidding procedures – public projects up to $200,000:

• (a) Notice inviting bids must be mailed to construction trade journals.

• (b) Notice can also be provided to list created by city for category or work to be bid.

• (c) Notice can be sent to any other contractors or construction trade journal.

• (d) If product/service is proprietary in nature, the city can limit notice to those contract(s) that can provide such product or service.

• (e) Notices must be sent at least ten days before the bids are due.

• (f) Award to lowest responsible bidder.

• (3) Formal bidding procedures – public projects over $200,000:

• (a) Requires sealed bid procedure.

• (b) Non-collusion affidavit-bidder of a principal contract (Exhibit B) needs to be included in the bid package.

• (c) Notice must state time and place for receiving and opening of sealed bids.

• (d) Notice must be published at least 14 calendar days before opening of bid in newspaper of general circulation.

• (e) Notice must be sent electronically to publications listed in the city’s list at least 15 days before opening of bids.

• (f) Additional notice may be provided.

• (g) Award to lowest responsible bidder.

• (D) Information for mailed notice. When submitting notices for bids for jobs, the following information should generally be included:

• (1) Project title and contract number if applicable.

• (2) Cost range.

• (3) Location of site.

• (4) Who is taking bids – i.e., City of Baldwin Park Public Works Department.

• (5) Date and time bids are due.

• (6) Contact address, phone, and e-mail.

• (7) Architect’s/engineer’s address and phone number if applicable.

• (8) Brief description of work to be done.

• (9) Location where plans may be obtained and if deposit is required/refundable.

(10) Percentage of bid bond/percentage of performance bond/percentage of payment bond.

(Ord. 1457, passed 12-2-20; Am. Ord. 1509, passed 5-15-24)

The Director of Administrative Services shall obtain, based upon written specifications, three informal bids from qualified persons to perform the work required for any public project defined as such in Cal. Pub. Cont. § 20161, as to which Cal. Pub. Cont. § 20162 does not require compliance with the formal bidding process contemplated by the Government Code sections.

('83 Code, § 3.08.200) (Ord. 819, passed - -81; Am. Ord. 1101, passed 5-17-95)

HOME MORTGAGE FINANCING PROGRAM

The city adopts the program for the purpose of increasing the housing supply in the city. ('83 Code, § 3.34.010) (Ord. 885, passed - -84)

The city shall operate the program with respect to all property located within the incorporated area of the city. ('83 Code, § 3.34.020) (Ord. 885, passed - -84)

MOBILE SOURCE AIR POLLUTION

REDUCTION PROGRAM FUNDING

This subchapter is intended to support the South Coast Air Quality Management District's imposition of the vehicle registration fee surcharge and to bring the city into compliance with the requirements set forth in Cal. Health & Safety Code § 44223 in order to receive fee revenues for the purpose of implementing programs to reduce air pollution from motor vehicles.

('83 Code, § 3.35.010) (Ord. 1047, passed - -91)

For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

CITY. The city of Baldwin Park.

FEE ADMINISTRATOR. The Director of Administrative Services of the city or their designee.

MOBILE SOURCE AIR POLLUTION REDUCTION PROGRAMS. Any program or project implemented by the city to reduce air pollution from motor vehicles which it determines will be consistent with the California Clean Air Act of 1988 or the plan proposed pursuant to Article 5, commencing with Cal. Health & Safety Code § 40460. ('83 Code, § 3.35.020) (Ord. 1047, passed - -91)

(A) Receipt of fee. The registration fees disbursed by the South Coast Air Quality Management District and remitted to the city, pursuant to this subchapter, shall be accepted by the Fee Administrator.

(B) Establishment of Air Quality Improvement Trust Fund. The Fee Administrator shall establish a separate

interest-bearing trust account in a financial institution authorized to receive deposits of city funds.

(C) Transfer of funds. Upon receipt of these registration fees, the Fee Administrator shall deposit the funds into the separate account established pursuant to division (B) of this section. All interest earned by the trust fund account shall be credited only to that account.

(D) Expenditure of Air Quality Trust Fund revenues. All fees received from the South Coast Air Quality

Management District and deposited in the trust fund account shall be exclusively expended on mobile source emission reduction programs as defined in § 34.61. Such fees, and interest earned on the revenues, shall be expended within one year of the completion of the programs.

(E) Audits. The city consents to an audit of all programs and projects funded by fees received from the South Coast Air Quality Management District pursuant to Cal. Health & Safety Code § 44223.

('83 Code, § 3.35.030) (Ord. 1047, passed - -91)