West Covina Municipal Code § 2-329 Contract amendments

Footnotes:

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Editor's note— Ord. No. 2498, § 1, adopted June 21, 2022, repealed the former Div. 2, §§ 2-324—2-336, and enacted a new Div. 2 as set out herein. The former Div. 2 pertained to similar subject matter and derived from Code 1960, §§ 2700—2709, 2711; Ord. No. 1292, § 1, 3-8-76; Ord. No. 1509, § 1, 4-27-81; Ord. No. 1512, § 1, 5-11-81; Ord. No. 1551, §§ 1,2, 6-28-82; Ord. No. 1761, § 1, 11-23-87; Ord. No. 1765, § 1, 2-8-88; Ord. No. 2070, §§ 1—3, 6-19-01; Ord. No. 2172, § 1, 3-4-08; Ord. No. 2174, § 2, 3-4-08; Ord. No. 2276, § 1, 6-16-15; Ord. No. 2337, § 5, 4-3-18; Ord. No. 2494, § 5, 3-15-22.

State Law reference— Authority to adopt policies and procedures, Gov. Code, § 54202.

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.

(Ord. No. 2498, § 1, 6-21-22)

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:

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.

Performing artist services means services provided by a person or group with specialized training, education, creativity, or skill in the arts. Performing artist services includes, but is not limited to, art, dance, music, theatre, magic, illusion, mime, puppetry, stand-up comedy, face painting, and balloon artistry.

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.

Purchases means the purchases of supplies, equipment, personal property, and services and includes leases or rentals and transactions by which the city acquires ownership.

(Ord. No. 2498, § 1, 6-21-22; Ord. No. 2524, § 3, 12-3-24)

(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.

(Ord. No. 2498, § 1, 6-21-22)

(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 (25) percent 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 (25) percent 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.

(Ord. No. 2498, § 1, 6-21-22)

(a) Unless otherwise approved by the city council, the maximum duration for any agreement for goods and/or services shall not exceed five (5) years. Prior to approving any agreement with a duration that exceeds five (5) years, the city shall document the rationale for entering into the agreement and why such agreement is in the best interest of the city.

(b) Notwithstanding subsection (a) of this section, the city may:

(1) Extend the term of an agreement beyond a five-year duration, provided that (a) no extension period shall exceed five (5) years, (b) the city documents the rationale for the extension and why such extension is in the best interest of the city, and (c) the city complies with any applicable procurement requirements set forth in this division. The city manager may approve such extension, provided it is within the city manager's signing authority.

(2) Enter into an agreement for goods and/or services that includes automatic extension or renewal periods that do not exceed one (1) year periods, provided the agreement allows the city to terminate the agreement at the end of any automatic one (1) year extension or renewal period.

(c) Unless otherwise approved by the city council, the maximum duration for any lease agreement shall not exceed thirty (30) years.

(Ord. No. 2498, § 1, 6-21-22; Ord. No. 2524, § 2, 12-3-24)

Purchases of supplies, materials, services, and equipment with a value of up to five thousand dollars ($5,000.00) 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.

(Ord. No. 2498, § 1, 6-21-22)

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 (3) written quotes.

(Ord. No. 2498, § 1, 6-21-22)

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:

(1) 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.

(2) 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.

(3) 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.

(4) 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.

(Ord. No. 2498, § 1, 6-21-22)

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:

(1) 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.

(2) 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.

(3) 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.

(4) Award of contract. Contracts shall be awarded to the lowest responsible bidder.

(Ord. No. 2498, § 1, 6-21-22)

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.

(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 (1) source, or only one (1) 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 the following requirements are met:

a. The purchasing officer determines the purchase is in the best interest of the city;

b. The purchasing officer determines the purchase is to the city's economic advantage; and

c. The agreement was competitively awarded using a process that complies with policies, rules, and regulations as approved by the purchasing officer.

(7) Purchases made using another governmental or public agency's contract or substantially the same terms, provided:

a. The other agency used a solicitation method substantially similar to the method required by this division; and

b. 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.

(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, 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:

a. 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

b. There is an immediate need to prepare for or provide national or local defense; or

c. 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

d. 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.

(12) A procurement for performing artist services for city-sponsored events.

(Ord. No. 2498, § 1, 6-21-22; Ord. No. 2524, § 4, 12-3-24)

(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.

(Ord. No. 2498, § 1, 6-21-22)

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 (6) 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).

(Ord. No. 2498, § 1, 6-21-22)

(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.

(Ord. No. 2498, § 1, 6-21-22)