El Segundo Municipal Code Ch. 7 Purchasing

A. This chapter is adopted to authorize City officers to procure supplies, services and professional services with City funds and to establish the manner by which such actions may occur. Supplies, services and professional services for City departments must be purchased in accordance with this chapter, those administrative regulations promulgated pursuant to this chapter, and any additional regulations that the City Council may adopt.

B. Nothing in this chapter is intended to, nor does it, apply to:

1. Public works projects as defined by State law, which are subject to chapter 7C of this title.

• 2. The procurement of services, supplies and equipment with non- City funds.
• 3. The employment of any person by the City at a regular salary.
• 4. The acquisition, disposal or lease of real property. (Ord. 1564, 12-19-2017)

Unless the contrary is stated or clearly appears from the context, the following definitions will govern the construction of the words and phrases used in this chapter:

CONTRACT: Means a purchase order, contract, or professional services contract, or any amendment thereto, as the context may dictate.

FORMAL BIDDING: Means the process and requirements outlined in section 1-7-8 of this chapter.

INFORMAL BIDDING: Means the process and requirements outlined in section 1-7-7 of this chapter.

PROFESSIONAL SERVICES: Means services typically performed by professionals, such as financial, economic, accounting, architectural, engineering, legal, personnel training or administrative services, including but not limited to those described in Government Code sections 4526 and 53060.

PURCHASING OFFICER: Means the City Manager or designee.

SERVICES: Means general services to be provided to the City, such as the rental, repair and maintenance of equipment, machinery and other personal property, but not including professional services or any services related to a public works project.

SUPPLIES: Means supplies and equipment. (Ord. 1564, 12-19-2017)

In addition to those powers granted by applicable law, the Purchasing Officer has the authority and duty to:

A. Purchase or contract for supplies, services and professional services;

B. Promulgate administrative rules and regulations to implement the purposes of this chapter and as approved by the City Manager;

C. Prescribe and maintain such forms as necessary for the proper operation of this purchasing system;

D. Supervise the inspection of all supplies purchased under this chapter in order to ensure conformance with City specifications;

E. Perform such other tasks as may be necessary for the proper conduct of purchasing or procurement of supplies, services and professional services. (Ord. 1564, 12-19-2017)

Except in cases of emergency or as otherwise provided in this chapter, the Purchasing Officer or Department Directors may not purchase supplies or procure any services or professional services unless there is an unencumbered appropriation in the fund account against which such purchase or procurement would be charged. (Ord. 1564, 12-19-2017)

All City departments must submit to the Purchasing Officer requisitions for supplies, services or professional services in excess of five thousand dollars ($5,000.00) per fiscal year for a single item or bulk purchase of an item. (Ord. 1564, 12-19-2017)

The purchase of supplies or services are subject to the following requirements, unless such purchase is otherwise exempt pursuant to section 1-7-9 of this code:

(Ord. 1564, 12-19-2017; amd. Ord. 1667, 2-4-2025)

As used in this chapter, the term "informal bidding" refers to the following process and requirements:

A. Purchases must, whenever possible, be based upon at least three (3) informal bids or quotes and be awarded to the lowest responsible bidder.

B. Bids must be written.

C. The Purchasing Officer or Department Directors may solicit such bids.

D. Bids may be evaluated based upon bid amount, compliance with bid specifications, responsibility of the bidder, and any other reasonable matter identified in the notice soliciting bids, this Code, or any other rule or regulation promulgated to implement this chapter.

E. If the City does not receive any bids or quotes, the Purchasing Officer may act as follows, provided the requesting department concurs:

• 1. Abandon the purchase;
• 2. Rebid the purchase on an informal basis; or
• 3. Purchase the supplies or procure the services on a direct negotiated contract.

F. If the Purchasing Officer determines bids are unacceptably high, or specifications were misleading, the Purchasing Officer may reject any bids presented and the item may be rebid.

G. The Purchasing Officer may reject all bids or award the purchase contract to the best qualified bidder whose bid or proposal fulfills the purpose intended according to criteria designated in the solicitation, provided that the contract award amount is within the unencumbered appropriation for that item. The Purchasing Officer may waive any minor bid irregularities.

H. If a successful bidder refuses to comply with, or fails to execute, a contract issued by the City within ten (10) calendar days after being awarded the contract, the Purchasing Officer may cancel the award and retain any bid security. Compliance with contract requirements includes, without limitation, submission of adequate and complete insurance documentation. Should this occur, the Purchasing Officer may award the contract to the next lowest responsible bidder. (Ord. 1564, 12-19-2017)

As used in this chapter, the term "formal bidding" refers to the following process and requirements:

A. A notice inviting formal bids must be posted at City Hall and electronically mailed or faxed at least ten (10) calendar days before the deadline for submitting bids to all vendors on the City's list for the category of supplies or services being sought and to such other vendors as the Purchasing Officer deems appropriate.

B. The notice inviting bids must describe the supplies or services needed in general and generic terms, identify security required for the bid, how bid specifications can be obtained, and designate the deadline and place for submitting formal bids.

C. The Purchasing Officer may require bidders to secure bids and performance in a manner approved by the Purchasing Officer and in a form approved by the City Attorney. Unsuccessful bidders are entitled to the return of bid security within sixty (60) calendar days after the date of the award.

D. Bids must be submitted to the City Clerk's Office in a sealed envelope and be clearly marked as a bid along with the bidder's name and project or bid number written on the outside of the envelope. The City Clerk's Office will open properly submitted bids at the time and place stated in the notice inviting bids. A written record must be made at the time all bids are received and then opened.

E. Bids may be evaluated based upon bid amount, compliance with bid specifications, responsibility of the bidder, and any other reasonable matter identified in the notice soliciting bids, this Code, or any other rule or regulation promulgated to implement this chapter.

F. The department seeking the supplies or services will make a recommendation to the City Council regarding the award of a contract based upon the department's and Purchasing Officer's evaluation.

G. If the City does not receive any bids, the City Council may:

1. Abandon the purchase;

2. Authorize rebidding the purchase on either a formal or an informal basis; or

3. Authorize purchasing the supplies or procurement of services on a direct negotiated contract.

H. The successful bidder is selected by the City Council acting within its sole discretion. The City Council is under no obligation to contract with any bidder. If the City Council determines bids are unacceptably high, or specifications were misleading, it may direct the Purchasing Officer to reject all bids presented and the item may be rebid.

I. The City Council may waive any minor bid irregularities.

J. If a successful bidder refuses to comply with, or fails to execute, a contract issued by the City within ten (10) calendar days after being awarded the contract, the Purchasing Officer may cancel the award and retain any bid security. Compliance with contract requirements includes, without limitation, submission of adequate and complete insurance documentation. Should this occur, the City Council may award the contract to the next lowest responsible bidder and the amount of the lowest bidder's security shall be applied by the City to the difference between the lowest and second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. (Ord. 1564, 12-19-2017)

When purchasing supplies and services, the procedures outlined in sections 1-7-7 and 1-7-8 of this chapter need not be followed in the following situations:

A. When the City Council waives the purchasing procedures otherwise required by this chapter when the City's best interests are served by a direct award of a contract without a competitive selection process.

B. When the supplies or services are available from only one vendor as supported by appropriate documentation.

C. When the Purchasing Officer identifies a cooperative competitive bidding procedure, being prepared by and processed through another local, State, or Federal governmental agency. Under such circumstances, the Purchasing Officer may join into an existing written purchase contract obtained within the last five (5) years through a competitive bidding process prepared by and awarded by another local, State or Federal governmental agency. City Council consent is required for such purchases where the estimated value of the supplies is fifty thousand dollars ($50,000.00) or more for a single item or bulk purchase of a single item.

D. When the City Manager or acting City Manager finds that there is an immediate or imminent emergency or other exigent circumstance that threatens the City or the City's interests, and such purchases are required for the immediate protection of public health, safety, or welfare, or the City's interests. A declaration of emergency as set forth in this Code is conclusive evidence of such an event. In such an event, the City Manager or acting City Manager may bind the City, with or without a written contract, for the acquisition of equipment, materials, supplies, labor, services or other items. The City Manager or acting City Manager must provide a report to the City Council as soon as practicable regarding such emergency purchases which sets forth the circumstances requiring such action. (Ord. 1564, 12-19-2017)

It is unlawful to knowingly take action to separate purchases into smaller units or segments solely for the purpose of evading the competitive formal or informal bidding requirements set forth in this chapter. (Ord. 1564, 12-19-2017)

The Purchasing Officer or department requesting the item shall inspect all deliveries of supplies and equipment to assure conformance with the contract or order specifications. (Ord. 1564, 12-19-2017)

All vendors who provide on-site services or professional services to the City must hold a valid City of El Segundo business license and must be otherwise in compliance with all requirements of this Code. (Ord. 1564, 12-19-2017)

Whenever practicable, the City will purchase and use recycled products and recyclable goods. The City will place special emphasis on the purchase of products manufactured with at least twenty percent (20%) post-consumer recycled materials. When faced with a choice of two (2) or more recycled content products, and the price between the products is within ten percent (10%) and the products are of comparable quality and availability, the City will purchase the product with the greatest recycled content. (Ord. 1564, 12-19-2017)

Professional services should, whenever possible, be procured through competitive proposal procedures, whereby competitors' qualifications are evaluated and the most qualified competitor is selected. If this method is used, the following requirements apply:

A. Requests for proposals (RFP) must be publicized;

B. All evaluation factors, along with their relative importance, must be identified and included in the RFP;

C. The evaluation process may include the review of written proposals, panel interviews, and reference checking;

D. Awards must be made to the responsible firm whose proposal is most advantageous to the City, with price and all factors identified in the RFP considered. (Ord. 1564, 12-19-2017)