Rancho Palos Verdes Municipal Code Ch. 2.14 Approval and Execution of Contracts

A. This chapter shall apply to all contracts under chapters 2.42 (Public Projects) and 2.44 (Purchasing System).

B. Any order, purchase, or contract made contrary to the provisions of this chapter and of chapters 2.42 (Public Projects) and 2.44 (Purchasing System) shall be void ab initio, and the city shall not be obligated thereunder.

(Code 1981, § 2.14.010; Ord. No. 618, § 1, 3-5-2019)

Unless the context otherwise requires, the following definitions shall govern the construction of this chapter, as well as chapters 2.42 (Public Projects) and 2.44 (Purchasing System):

Contract means a binding, legally enforceable agreement for goods or services. Written contracts shall include, but are not limited to, purchase orders, purchase agreements for supplies and equipment, and services agreements, or any amendment or change order thereto.

Informal bids means bids or proposals solicited by the purchasing agent or director of public works either in writing or orally by telephone.

Purchasing agent shall have the same meaning as section 2.08.070(I) and shall include their designee.

Services means general services to be provided to the city, such as repair and maintenance, professional services, or any services related to a public works project, such as inspection services and construction management services.

(Code 1981, § 2.14.020; Ord. No. 618, § 1, 3-5-2019)

A. It shall be unlawful to split into smaller work order or projects any contract for supplies, equipment, or services for the purpose of circumventing or evading the requirements of this chapter or chapter 2.44 (Purchasing System).

B. It shall be unlawful to split or separate into smaller work orders or projects any public project for the purpose of circumventing or evading the requirements of this chapter, chapter 2.42 (Public Projects), or the Uniform Public Construction Cost Accounting Act (Public Contract Code § 22000 et seq.).

(Code 1981, § 2.14.030; Ord. No. 618, § 1, 3-5-2019)

A. Written contracts. All transactions for $3,000.00 or more per vendor/consultant/contractor per fiscal year, shall require the execution of a written contract prior to the provision of any work, services, or supplies or equipment, provided that:

1. Performance of work on private property. Where work (including services) shall be performed on private property, regardless of the dollar amount of the proposed work, such work shall be by written contract only, which shall include, but not be limited to, insurance and indemnity requirements satisfactory to the city attorney.

2. Protection of city. A written contract shall be required for the provision of any work (including services), regardless of the dollar amount of the proposed work, if, in the opinion of the purchasing agent or the city attorney, a written contract is necessary to protect the city from increased liability that could arise from the performance of the work. Any written contract required pursuant to this subsection shall include, but not be limited to, insurance and indemnity requirements satisfactory to the city attorney.

B. Purchase orders. The city shall issue a purchase order to accompany every agreement for public projects, services, or supplies and equipment. No contracting party is authorized to perform any service, perform any work on a public project, or provide any supplies or equipment, prior to issuance of a fully executed purchase order. Purchase orders shall not be required for the following:

1. All purchases of less than $3,000.00 that are processed by the presentation of an invoice acceptable to and approved by the finance department.

2. Utility bills, rents, lease purchases, legal bills, employee reimbursements, settlements, payments to governmental agencies, membership and dues, trust deposit payments.

3. Purchases made by credit cards authorized by the city council and issued to those employees approved by the purchasing agent, provided such purchases conform to the written policy established by the purchasing agent.

(Code 1981, § 2.14.040; Ord. No. 618, § 1, 3-5-2019)

A. The purchasing agent may approve and execute contracts for public projects, services, supplies or equipment, with a value of $25,000.00 or less without prior city council approval, provided that funding for the contract has been allocated in the city's budget by the city council.

B. The purchasing agent may execute any specific contract of any value if so authorized by resolution or minute order of the city council.

C. The purchasing agent may approve and execute a grant contract without prior city council approval if the contract complies with all requirements of the grant program and if the city's budget contains sufficient unencumbered funds for a city matching amount, if required, not to exceed a city contribution of $25,000.00.

(Code 1981, § 2.14.050; Ord. No. 618, § 1, 3-5-2019)

All contracts other than contracts pursuant to section 2.14.050 (Approval and execution of contracts by purchasing agent) require city council approval and execution by the mayor, provided that the city council may, by minute order or resolution, authorize the purchasing agent to execute any specific contract.

(Code 1981, § 2.14.060; Ord. No. 618, § 1, 3-5-2019)

The city manager may approve settlement agreements in an amount up to $25,000.00 per case.

(Code 1981, § 2.14.070; Ord. No. 618, § 1, 3-5-2019)