Agenda packet — Pico Rivera City Council, April 14, 2026 (part 2 of 2)

Proposed Changes to Chapter 3.20 – Purchasing
For Non-Public Projects
After surveying municipal procurement codes and policies in various cities across California, our staff found that many follow federal and state practices of regularly adjusting procurement thresholds to account for inflation and improve efficiency. The proposed changes to the Purchasing Section of the PRMC (Chapter 3.20) and the newly proposed Procurement Policies and Procedures are as follows:

Table 2 displays the procurement limits for 25 cities, most of which are located in the Greater Los Angeles and Orange County areas. Staff performed a survey of each city’s procurement policy, the year of adoption, and the related procurement authorization limits.
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CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 14, 2026
ORDINANCES AMENDING CHAPTER 3.20 PURCHASING AND AMENDING CHAPTER 3.48 ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC PROJECTS OF

THE PICO RIVERA MUNICIPAL CODE, AND A RESOLUTION ADOPTING THE

REVISED PROCUREMENT POLICIES AND PROCEDURES

Page 4 of 7 ends

Table 2: California City Survey – Procurement Limits
City of Adoption Year Department Head City Manager City Council Lakewood 2018 Up to $5,000 Up to $20,000 > $20,000
Mission Viejo 2022 Up to $10,000 Up to $30,000 > $30,000 South Pasadena ** 2022 Up to $10,000 Up to $30,000 > $30,000 Norwalk * 2021 Up to $7,500 Up to $33,700 > $33,700
Baldwin Park 2022 Up to $10,000 Up to $50,000 > $50,000 Santa Fe Springs 2023 Up to $25,000 Up to $50,000 > $50,000 Commerce 2021 Up to $20,000 Up to $50,000 > $50,000
El Monte 2025 Up to $15,000 Up to $50,000 > $50,000
El Segundo 2017 Up to $25,000 Up to $50,000 > $50,000
Montebello 2019 None Up to $50,000 > $50,000
Rosemead 2025 Up to $15,000 Up to $50,000 > $50,000
Santa Ana 2023 Up to $25,000 Up to $50,000 > $50,000
South El Monte 2025 Up to $15,000 Up to $50,000 > $50,000 Bellflower 2022 Up to $15,000 Up to $60,000 > $60,000
Monterey Park 2020 Up to $25,000 Up to $60,000 > $60,000 Barstow 2021 Up to $5,000 Up to $75,000 > $75,000
Downey 2023 Up to $15,000 Up to $75,000 > $75,000
Thousand Oaks 2018 Up to $25,000 Up to $75,000 > $75,000 Long Beach 2023 None Up to $100,000 > $100,000
Milpitas 2021 Up to $10,000 Up to $100,000 > $100,000
Modesto 2022 None Up to $100,000 > $100,000
Glendale 2021 Up to $15,000 Up to $150,000 > $150,000
West Covina 2023 Up to $30,000 Up to $150,000 > $150,000 Anaheim 2023 Up to $100,000 Up to $200,000 > $200,000
Pasadena 2015 Up to $25,000 Up to $250,000 > $250,000
*These cities set the approval limits with annual Consumer Price Index escalations. **These cities' thresholds increase to $50,000 for Capital Improvement Projects As demonstrated, the median authorization limits are as follows:

1. Department Head – Median of $20,300

2. City Manager – Median of $78,300

3. City Council – Anything greater than the median of $78,300 CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 14, 2026
ORDINANCES AMENDING CHAPTER 3.20 PURCHASING AND AMENDING CHAPTER 3.48 ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC PROJECTS OF

THE PICO RIVERA MUNICIPAL CODE, AND A RESOLUTION ADOPTING THE

REVISED PROCUREMENT POLICIES AND PROCEDURES

Page 5 of 7 ends

Accordingly, staff recommends adjusting the thresholds for the City’s procurement requirements and authorization limits for non-public project contracts within MC 3.20.100,

3.20.105, 3.20.110, and 3.20.210 as follows:
• 100 Open Market
• 105 Personal and Professional Seminars
• 110 Formal Contract
• 210 Procurement / Appraisal Thresholds
For Non-Public Projects
• Increase the procurement thresholds for the formal competitive bidding/selection from $40,000 to $50,000.
• Increase the exempted personal and professional services threshold from $60,000 to $75,000.
• Increase the Finance Director’s approval authority from $40,000 to $50,000. • Increase the City Manager's approval authority from $60,000 to $75,000. • Approval from the City Council is required for procurements or services that cost $75,000 or more.

Table 3 shows the recommended procurement limit changes for non-public projects:

Table 3: Recommended Procurement Limits for Non-Public Projects Proposed Changes to Chapter 3.48 Alternative Bidding Procedures or Public Projects:

For Public Projects
As of January 1, 2025, the California CUPCCAA Commission raised the bid limit thresholds for public projects prescribed in Public Contract Code 22032.

Based on these adjustments to the CUPCCAA thresholds, staff recommends updating the Public Project bidding dollar amounts in Sections 3.48.040 (Alternative bidding Non-Public Projects
Current Range Proposed Range Procurement Requirements
Department
Head
Finance
Director
City
Manager City Council
$1 - $9,999 $1 - $9,999 1 Quote (Informal) x
$10,000 - $39,999 $10,000 - $49,999 3 Quotes (Informal Bid) x $40,000 - $59,999 $50,000 - $74,999 Formal Competitive Bidding/Selection x > $60,000 > $75,000 Formal Competitive Bidding/Selection x Authorized Approvers
CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 14, 2026
ORDINANCES AMENDING CHAPTER 3.20 PURCHASING AND AMENDING CHAPTER 3.48 ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC PROJECTS OF

THE PICO RIVERA MUNICIPAL CODE, AND A RESOLUTION ADOPTING THE

REVISED PROCUREMENT POLICIES AND PROCEDURES

Page 6 of 7 ends

procedures), 3.48.080 (Opening of bids and awards of contract) and 3.48.100 (Formal bidding) of the municipal code.

The proposed amendments to PRMC Chapters 3.48 and the new proposed Policies and Procedures will accomplish the following:
• Increase the requirement of competitive bidding/selection from $200,000 to $220,000.
• Increase the City Manager's approval authority from $60,000 to $220,000 for public project procurement with an informal bid process. • Approval from the City Council is required for public project procurement of goods or services that cost $220,000 or more.

Table 4 shows the recommended procurement limit changes for public project procurement:

Table 4: Recommended Procurement Limits for Public Projects *Please note that the City Manager can approve non-public projects procurement of up to $75,000 per Table 3. Table 4 further increases the City Manager’s approval threshold for public projects to $220,000, aligning with CUPCCAA thresholds to provide economic benefits and greater flexibility to expedite public projects.

If procurement is partially or fully funded by a grant, the City must follow the more restrictive requirements, either from the granting agency or the City’s procurement requirements.

Additional Proposed Changes to Procurement Policy and Procedures In addition to the proposed changes to Pico Rivera Municipal Code 3.20 and 3.48, staff also incorporates a Local Business Preference into the updated Procurement Policy and Procedures.

To support the local economy and encourage participation from businesses located within the City of Pico Rivera, the City may apply a Local Business Preference when evaluating Public Projects Before 1/1/2025 Effective as of 1/1/2025

CUPCCAA
Procurement
Requirements City Manager City Council

CUPCCAA
Procurement
Requirements
Public Works
Director and City
Manager City Council
Negotiated Contract or Informal
bid and Purchase Order $1 - $59,999 x $1 - $74,999 x
Informal Bid $60,000 - $200,000 x $75,000 - $220,000 * x Formal Bid > $200,000 x > $220,000 x
Current Authorized Approvers Proposed Authorized Approvers CITY COUNCIL AGENDA REPORT – MEETING OF APRIL 14, 2026
ORDINANCES AMENDING CHAPTER 3.20 PURCHASING AND AMENDING CHAPTER 3.48 ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC PROJECTS OF

THE PICO RIVERA MUNICIPAL CODE, AND A RESOLUTION ADOPTING THE

REVISED PROCUREMENT POLICIES AND PROCEDURES

Page 7 of 7 ends

formal competitive solicitations (e.g., Invitation for Bids or Requests for Proposals (RFPs)). This preference applies only to procurements requiring formal competitive bidding and does not apply to purchases below $50,000 (for non-public projects) that require informal bidding or do not require a bidding process.

Businesses with a valid City of Pico Rivera business license and a physical address within the City may receive an evaluation preference of up to 5% of the total evaluation score or price comparison, as applicable. This preference is used solely for evaluation purposes and does not alter the contract price.

The Local Business Preference shall not exceed 5% of the total evaluation score or equivalent price comparison. This preference shall not apply to procurements funded in whole or in part by federal, state, or local grants where geographic preferences are prohibited unless expressly authorized by the funding agency.

All of these adjustments enable City staff to conduct procurements in a responsible, transparent, efficient, effective, and accountable manner.

Conclusion:

Staff recommends that the City Council 1) introduce and waive the first reading of an ordinance amending Chapter 3.20 Purchasing (Enclosure 1); 2) introduce and waive the first reading of an ordinance amending Chapter 3.48 of the Pico Rivera Municipal Code (Enclosure 2); and 3) consider approving a resolution adopting revised citywide Procurement Policies and Procedures (Enclosure 3). Staff will adhere to these policies appropriately and ethically to process procurement needs, ensuring the efficient use of public funds.

Steve Carmona
SC:AG:JG:ep
Enclosure(s): 1) Ordinance – Amending PRMC Chapter 3.20 2) Ordinance – Amending PRMC Chapter 3.48
3) Resolution / Exhibit A (Procurement Policies and Procedures) ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, AMENDING CHAPTER 3.20, PURCHASING, OF

THE PICO RIVERA MUNICIPAL CODE
WHEREAS, the City’s existing Purchasing Municipal Code was last revised and adopted by the City Council on April 8, 2025, with Ordinance No. 1193; and WHEREAS, an amendment to Chapter 3.20 Purchasing, of the Pico Rivera Municipal Code, is necessary to increase the procurement thresholds authorized under the same to align with federal and state practices, which periodically adjust the procurement thresholds for inflation and efficiency; and WHEREAS, an amendment to Chapter 3.20 Purchasing is also necessary to standardize citywide procurement policies and procedures; and WHEREAS, pursuant to Sections 54201 through 54204 of the California Government Code, policies and procedures that govern the purchase of supplies and equipment must be adopted by an ordinance; and
WHEREAS, the City Council considered, concurrently herewith, a resolution adopting Procurement Policies and Procedures to assist with standard implementation citywide.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Pico Rivera as follows:

SECTION 1. Findings. The City Council finds and determines that the adoption of the ordinance is based upon the following findings.

A. The recitals set forth above are incorporated herein as part of the findings.

B. An amendment to Chapter 3.20 Purchasing is consistent with the General Plan, as it provides and maintains efficient services that strive to be responsive to public needs.

C. Based on the above, the City Council determines that the Ordinance contained herein is necessary and in the public’s best interest.

SECTION 2. Amendment. Sections 3.20.045 (Compliance with federal and state requirements), 3.20.100 (Open market procedure), 3.20.105 (Personal and professional services excluded), 3.20.110 (Formal contract procedure), 3.20.210 (City procurement and approval thresholds), and 3.20.215 (Procurement policies and procedures) of Chapter 3.20 (Purchasing), Title 3 (Revenue and Finance), are hereby amended to read as follows (deletions on Strikethrough and additions in Underline):

Enclosure 1
7a
Back to Agenda Outline
ORDINANCE NO. ____

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3.20.045. Compliance with federal, and state, and local grant requirements.

A. Federal, and/or State, and Local Grants. In addition to the provisions of this chapter, the procurement of all contracts for supplies, services, and equipment that are funded in whole or in part with federal, and/or state, and/or local grant funds shall be subject to applicable grant requirements, such as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of Management and Budget, 2 U.S. (Code of Federal Regulations Part 200) (2 (CFR) Part 200. The City has to shall ensure that all granting agency requirements, including the solicitation threshold amounts, are met.

3.20.100. Open market procedure.

A. Authorized when purchases of supplies and equipment of an estimated value of forty fifty thousand dollars or less may be made by the purchasing officer in the open market without observing the procedure prescribed by Sections 3.20.110 through 3.20.190. Purchases of supplies and equipment of an estimated value between the amounts of ten thousand dollars and forty fifty thousand dollars shall also require the approval of the Director of Finance.

3.20.105. Personal and professional services excluded.

A. Except for the provisions of Section 3.20.210, the city may award purchase orders and contracts sixty not exceeding seventy-five thousand dollars for personal or professional services without complying with the provisions of this chapter; provided that the award shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the service required and shall be subject to the provisions of Government Code Section 4526, when applicable.

3.20.110. Formal contract procedure.

A. Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than forty fifty thousand dollars shall be made by written contract with the lowest responsible bidder, pursuant to the procedure prescribed in Sections 3.20.120 through 3.20.190 of this chapter.

3.20.210. City procurement and approval thresholds.

If no exemptions or special federal, and/or state, and/or local requirements are applicable, the city has the following procurement thresholds, which may be adjusted periodically for inflation by ordinance of the City Council:

A. The small purchase threshold is set at ten thousand dollars. For purchases less than this amount, no purchase order is required. The department heads or their designees may approve the purchases.

B. An informal competitive procurement is for a purchase between ten thousand and forty fifty thousand dollars. Either three informal quotes or a sole source form is required. The finance director and city manager may approve the sole source form, ORDINANCE NO. ____

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purchase orders, and/or contracts in this category.

C. A formal competitive procurement is for a purchase above forty fifty thousand dollars. A formal competitive process or a sole source form is required.

1. The city manager is authorized to approve and execute, on behalf of the city, any contract in an amount not exceeding sixty seventy-five thousand dollars, including the contracts for the services described in Section 3.20.105(B) and (C).

2. The city council shall approve any contracts above sixty seventy-five thousand dollars, including the procurement for personal and professional services described in Section 3.20.105(B) and (C). Contracts described in Section

3.20.105(C) shall be subject to the provisions of Section 3.20.105(A).

3.20.215. Procurement Policies and Procedures.

The City Council may adopt Procurement Policies and Procedures by resolution to implement the provisions of this chapter. Such policies and procedures may establish administrative guidelines, evaluation procedures, documentation requirements, and other operational processes necessary to carry out the City's purchasing functions.

The Procurement Policies and Procedures adopted by resolution shall be consistent with this chapter and applicable federal, state, and local laws, but may provide additional administrative guidance to ensure transparency, competition, and efficiency in the City’s procurement activities.

SECTION 3. Pursuant to Section 15060(c)(2) of the California Environmental Quality Act (CEQA) Guidelines, the City Council finds that the adoption of this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Pursuant to Section 15060(c)(3), the activity is not a “project” as defined in Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases are declared unconstitutional, invalid or ineffective. To this end, the provisions of this Ordinance are deemed severable.

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the Government Code, directs the City Clerk to cause said Ordinance, within fifteen (15) days after its passage, to be posted in at least five (5) public places within the City. This Ordinance shall take effect thirty (30) days after its adoption.

ADOPTED AND PASSED this ____ day of ______, 2026.

___________________________
Gustavo V. Camacho, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
)§

COUNTY OF LOS ANGELES )
I, Cynthia Ayala, City Clerk of the City of Pico Rivera, do hereby certify that the foregoing Ordinance No. ____ was adopted at a regular meeting of the City Council of the City of Pico Rivera, held on ____ , with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Cynthia Ayala, City Clerk
CHAPTER 3.20

PURCHASING
§ 3.20.010. System adopted—Purpose—Statutory authority.

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services 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, in accordance with Section 54202 of the Government Code.
(Prior code § 2700)
§ 3.20.020. Administration—Purchasing authority.

In accordance with the provisions of Sections 54201 through54204 of the Government Code, the policies and procedures contained in this chapter, as well as the policies and procedures adopted by subsequent rules and resolutions, have been adopted. The authority for the purchase of supplies and equipment is vested in a purchasing officer, and the procedures and policies contained in this chapter, as well as in supplemental rules and resolutions, shall hereafter be followed in respect to the purchase of supplies and equipment, unless the provisions of Section 3.20.030 of this chapter should apply. (Prior code § 2701)
§ 3.20.025. Vehicle purchasing authority.

The acquisition of vehicles, which has been deemed necessary by the public works director and city manager through methods such as cooperative agreements, piggyback contracts, or sole source procurement, shall not require the city council's approval prior to the purchase. However, if the purchase amount exceeds the city manager's approval threshold, it must be reported at the next city council meeting for ratification. (Ord. 1183, 3/26/2024)
§ 3.20.030. Exemptions from chapter application.

The provisions of this chapter shall not apply in respect to the purchase of supplies, services, and equipment in the following circumstances:

A. Emergency. As defined in CPCC Section 22035, in case of emergency when repair or replacements are necessary, the city may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the city, by contractor, or by a combination of the two.

The day labor includes the use of maintenance personnel employed on a permanent or temporary basis. The procurement must be reported to council at the next council meeting for ratification if the amount has been subject to approval of the city council.

B. Sole Source Purchasing. The city may dispense with the bidding requirements if it City of Pico Rivera, CA
§ 3.20.010 § 3.20.030
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 7b Procurement of personal and professional services under sixty thousand dollars. (Prior code § 2702; Ord. 938 § 1, 1999; Ord. 1151 § 2, 2021; Ord. 1179, 12/12/2023; Ord. 1183, 3/26/2024)
§ 3.20.040. Purchasing officer powers and duties.

The city manager, or designated deputy, shall serve as the purchasing officer. He or she shall have authority to:
finds that the supplies, services, or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one source, or, if available from more than one source, can be purchased from the manufacturer or service provider for a lower price. The sole source form has to be reviewed and signed off by the appropriate authority outlined in Section 3.20.210.

C. Contracts with other government agencies for supplies, services, and equipment.

D. Cooperative or Piggyback Purchasing.

1. Where the city council, by contract or resolution, or both, transfers the authority to make the purchase of supplies, services, and equipment, whether blanket authority or single purchases, to another governmental agency, or officer thereof, pursuant to lawful authority, and where such other governmental agency or officer, in the purchase of supplies and equipment, follows to the satisfaction of the purchasing officer policies and procedures in compliance with the provisions of Sections 54201 through 54204 of the Government Code. In the event of the transfer of blanket authority in respect to such purchase of supplies or equipment pursuant to this section, the purchasing officer, as defined in this chapter, shall remain the purchasing officer of the city, and the other office or agency performing the services shall be designated the purchasing agent. In such an event, the purchasing officer of the city may authorize purchases through said purchasing agent in accordance with the authority vested in him or her by the city council;

2. The purchase of equipment, services and supplies through the Department of General Services pursuant to Section 10324 of the Public Contracts Code;

3. The purchase is made by, through, or in concert with another public agency provided the other public agency makes such purchase in accordance with the state laws or local rules and regulations governing such purchase for the other public agency.

A. Purchase or contract for supplies, services and equipment required by any department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt, and such other rules and regulations as shall be prescribed by the city council; B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;
C. Act to procure for the city the needed quality in supplies, services and equipment at City of Pico Rivera, CA
§ 3.20.030 § 3.20.040
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Prior code § 2703; Ord. 1151 § 2, 2021)
§ 3.20.045. Compliance with federal and state requirements. (Ord. 1151 § 2, 2021)
least expense to the city;
D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;
E. Prepare and recommend to the city council rules governing the purchasing of supplies, services and equipment for the city;
F. Prepare and recommend to the city council revisions and amendments to the purchasing rules;
G. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
H. Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter, and other rules and regulations;
I. Supervise the inspection of all supplies, services and equipment purchased, to insure conformance with specifications;
J. Recommend the transfer of surplus or unused supplies and equipment between departments, as needed, and the sale of all supplies and equipment which cannot be used by any agency, or which have become unsuitable for city use; K. Maintain a bidders' list, vendors catalogue file, and records needed for the efficient operation of the purchasing department.

A. Federal and/or State Grants. In addition to the provisions of this chapter, the procurement of all contracts for supplies, services, and equipment that are funded in whole or in part with federal and/or grant funds shall be subject to applicable grant requirements, such as the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards promulgated by the United States Office of Management and Budget, 2 U.S. Code of Federal Regulations Part 200.The city has to ensure that all granting agency requirements, including the solicitation threshold amounts, are met.

B. Public Projects. As defined in CPCC Section 22002, a public project includes, but may not be limited to, construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operating facility. A public project does not include maintenance work. The city shall procure for a public project by following the requirements and bidding thresholds set forth by the California Uniform Public Construction Cost Accounting Act (UPCCAA), which adjusts the requirements and limits periodically for efficiency and inflation. The city's Municipal Code Chapter 3.48 provides more specific guidelines for public project procurement.

City of Pico Rivera, CA
§ 3.20.040 § 3.20.050
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 § 3.20.050. Estimates of requirements.

All departments shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe.
(Prior code § 2704; Ord. 1151 § 2, 2021)
§ 3.20.060. Requisition forms.

Departments shall submit requests for supplies, services and equipment to the purchasing officer by standard requisition forms.
(Prior code § 2704.1; Ord. 1151 § 2, 2021)
§ 3.20.070. Purchase orders.

Purchase of supplies, services and equipment shall be made only by purchase order, except as provided by resolution of the city council or as exempted by Section 3.20.210. (Prior code § 2706; Ord. 937 § 1, 1999; Ord. 1151 § 2, 2021) § 3.20.075. Change orders.

Change orders shall be considered under two scenarios:
(Ord. 1183, 3/26/2024; Ord. 1193, 4/8/2025)
§ 3.20.080. Bid procedures required when.
(Prior code § 2705; Ord. 784 § 1, 1990; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024) § 3.20.090. Encumbrance of funds.

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services and equipment unless there exists an unencumbered appropriation A. For purchase orders up to sixty thousand dollars, the city manager is authorized to approve cumulative change orders, including the original contract amount, contingency, and any subsequent change orders up to sixty thousand dollars.

B. For purchase orders exceeding sixty thousand dollars, the city manager has the authority to approve cumulative change orders, up to ten percent of the original contract value, including any approved contingency. However, requests greater than ten percent of the original contract value and any approved contingency shall require city council approval.

A. Purchases of supplies, equipment and the sale of personal property shall be by bid procedures pursuant to Sections 3.20.120 through 3.20.180 of this chapter.

B. Bidding shall be dispensed only when an emergency requires that an order be placed with the nearest available source of supply when the amount involved is less than ten thousand dollars, or when the commodity can be obtained from only one vendor. Purchases shall not be divided or split in order to circumvent formal bidding requirements.

City of Pico Rivera, CA
§ 3.20.050 § 3.20.090
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 in the fund account against which such purchase is to be charged. (Prior code § 2707)
§ 3.20.100. Open market procedure.
(Prior code § 2708; Ord. 784 § 2, 1990; Ord. 1035 § 2, 2007; Ord. 1076 § 7, 2013; Ord. 1151 § 2, 2021; Ord. 1159 § 2, 2022; Ord. 1183, 3/26/2024) § 3.20.105. Personal and professional services excluded.

A. Authorized when purchases of supplies and equipment of an estimated value of forty thousand dollars or less may be made by the purchasing officer in the open market without observing the procedure prescribed by Sections 3.20.110 through

3.20.190. Purchases of supplies and equipment of an estimated value between the amounts of ten thousand dollars and forty thousand dollars shall also require the approval of the Director of Finance.

B. Minimum Number of Bids. Open-market purchase shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder.

C. Notice Inviting Bids. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, by public notice posted on a public bulletin board in the City Hall or on an electronic procurement platform (such as Planet Bids), approved by the city, or by other suitable means.

D. Written Bids. Sealed written bids shall be submitted to the purchasing officer, who shall keep a record of all open-market orders and bids for a period of one year after the submission of bids or the placing of orders. This record, while so kept, shall be open to public inspection or made available on the city's approved electronic procurement platform.

A. Except for the provisions of Section 3.20.210, the city may award purchase orders and contracts sixty thousand dollars for personal or professional services without complying with the provisions of this chapter; provided that the award shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the service required and shall be subject to the provisions of Government Code Section 4526, when applicable.

B. For the purposes of this section, personal services shall include:

1. Any communication, gas, water, electric light, and power service or similar utility service;

2. Insurance, postage, freight, and courier service;

3. Travel/hotel accommodations, education, and training expenses;

4. Memberships.

5. Rental of real property or equipment and other personal property; and

6. Such other services as the city council may, by resolution, specifically direct.

City of Pico Rivera, CA
§ 3.20.090 § 3.20.105
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Ord. 784 § 5, 1990; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024; Ord. 1193, 4/8/2025) § 3.20.110. Formal contract procedure.

Except as otherwise provided in this chapter, purchases and contracts for supplies and equipment of estimated value greater than forty thousand dollars shall be by written contract with the lowest responsible bidder, pursuant to the procedure prescribed in C. For purposes of this section, professional services shall include:

1. Services of engineers, architects, accountants, attorneys, doctors, appraisers, and similar professionals when the city is contracting for the skill, integrity, judgment, and/or special technical ability of the professional.

2. Such other services as the city council may, by resolution, specifically direct.

D. For purposes of this section, subscriptions shall mean a model in which the customer agrees to pay a set amount on a recurring basis (i.e., weekly, monthly, annually) for a service and be automatically billed. This includes subscriptions to online and print versions of business journals, technical/training/professional periodicals, and bulletins, newspapers, and other web-based subscriptions. All purchased subscriptions must allow customers to cancel or deactivate at the end of the subscription term (i.e., weekly, monthly, annually). Departments shall consult with the purchasing division to determine the most appropriate procurement option.

1. The information technology division must approve requests for subscriptions to digital entertainment/streaming services, digital media creation websites, software as a service (SaaS) agreements, applications (apps), and downloadable software.

2. Subscriptions at or below the City Capitalization Policy threshold amount may be awarded without formal or informal competitive bids. Departments may submit the invoice directly to the accounts payable division without a purchase order.

3. Subscriptions exceeding the capitalization threshold require a formal agreement and a purchase order. Please follow the most current procurement policies and procedures for the most appropriate procurement option. The city shall consider the suitability of any such software for its intended purpose and the cost of any ancillary implementation or maintenance services and award any such software subscriptions or SaaS agreements to the proposer providing the best value to the city.

E. For purposes of this section, other services are defined as general services, which are services of a general nature (as opposed to personal and professional services).

A general service includes, but is not limited to, the following:

1. Maintenance service for equipment, machinery, or other city-owned personal property;

2. Maintenance service for city-owned or occupied real property and buildings.

City of Pico Rivera, CA
§ 3.20.105 § 3.20.110
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 Sections 3.20.120 through 3.20.190 of this chapter.
(Prior code § 2709; Ord. 784 § 3, 1990; Ord. 1035 § 3, 2007; Ord. 1076 § 8, 2013; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024
§ 3.20.120. Notices inviting bids.
(Prior code § 2709(a); Ord. 1159 § 2, 2022)
§ 3.20.130. Bidder's security.

When deemed necessary by the purchasing officer, bidder's security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his or her bid security upon 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.
(Prior code § 2709(b))
§ 3.20.140. Bid opening procedure.

Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope, or submitted on the city's approved electronic procurement platform if required by the notice inviting bids. 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 during regular business hours or on the city's approved electronic procurement platform for a period of not less than thirty calendar days after the bid opening.

A. Contents of Notices. Notices inviting bids shall include a general description of the articles to be purchased or sold, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

B. Published Notices. Notices inviting bids shall be given at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices or the city's approved electronic procurement platform.

C. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list, or who have requested their names be added thereto.

D. Bulletin Board. The purchasing officer shall also advertise pending purchases or sales by a notice posted on a public bulletin board in the City Hall or the city's approved electronic procurement platform.

City of Pico Rivera, CA
§ 3.20.110 § 3.20.140
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Prior code § 2709(c); Ord. 755 § 2, 2022)
§ 3.20.150. Rejection of bids.

In its discretion, the city council may reject any and all bids presented and readvertise for bids.
(Prior code § 2709(d))
§ 3.20.160. Award of contracts.

Contracts shall be awarded by the city council to the lowest responsible bidder, except as otherwise provided in this chapter.
(Prior code § 2709(e))
§ 3.20.170. Tie bids.

If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the city council may accept the one it chooses, or accept the lowest bid made by negotiation with the tie bidders at the time of bid opening. (Prior code § 2709(f))
§ 3.20.180. Performance bonds.

The city council shall have authority to require a performance bond before entering a contract, in such amount as it shall find 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.
(Prior code § 2709(g))
§ 3.20.190. Inspection and testing of materials.

The purchasing officer shall inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order of the 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. (Prior code § 2710)
§ 3.20.200. Sale of surplus supplies and equipment.

When it is necessary to provide for the disposal of surplus and obsolete materials, equipment, and assets, the surplus property list shall be used. The disposing department shall complete the said form, which declares asset information ranging from origin to reason for disposal. The following guidelines shall also be applied:

A. Vehicles and Equipment. All surplus equipment and vehicles shall be sold at a public auction. For equipment and vehicles valued at sixty thousand dollars or less, the city manager has the authority to dispose of such city property using City of Pico Rivera, CA
§ 3.20.140 § 3.20.200
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Prior code § 2711; Ord. 784 § 4, 1990; Ord. 1076 § 9, 2013; Ord. 1183, 3/26/2024; Ord. 1193, 4/8/2025)
§ 3.20.210. City procurement and approval thresholds.

If no exemptions or special federal and/or state requirements are applicable, the city has the following procurement thresholds, which may be adjusted periodically for inflation:
professional auctioneers or similar methods that best serve the city's interests.

For items with an estimated value of sixty thousand dollars or more, city council approval is required prior to their transfer to the auction site. It is recommended to use an established method, such as Kelley Blue Book, to determine asset values.

B. Furniture and Office Machines. All excess furniture and office machines shall be transferred under the supervision of the maintenance services division of the public works department, either to another department or to surplus property. Furniture that is no longer serviceable should either be dismantled and scrapped or discarded in accordance with subsection C below.

C. Dismantling and Scrapping or Discarding. When surplus and obsolete items or materials are to be disposed of either by scrapping or auction, please indicate the appropriate location on the surplus property list form and forward it to the public works superintendent for approval. The public works superintendent shall review the items and or materials listed for the appropriateness of the designation and then sign off for authorization. If deemed necessary by the public works superintendent, the listed items will be inspected to verify that the most appropriate means of disposal is being utilized. No action shall be taken by the submitting party until the surplus property list has been returned from the purchasing office with an authorizing signature.

D. Donation of Surplus. Surplus or obsolete materials with an estimated value of ten thousand dollars or more shall be donated with city council approval. To determine asset values, it is recommended that an established method of determination be used (e.g. Kelley Blue Book). Donations less than ten thousand dollars will require the city manager's approval.

A. The small purchase threshold is set at ten thousand dollars. For purchases less than this amount, no purchase order is required. The department heads or their designees may approve the purchases.

B. An informal competitive procurement is for a purchase between ten thousand and forty thousand dollars. Either three informal quotes or a sole source form is required. The finance director and city manager may approve the sole source form, purchase orders, and/or contracts in this category.

C. A formal competitive procurement is for a purchase above forty thousand dollars.

A formal competitive process or a sole source form is required.

1. The city manager is authorized to approve and execute, on behalf of the city, any contract in an amount not exceeding sixty thousand dollars, including the City of Pico Rivera, CA
§ 3.20.200 § 3.20.210
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Ord. 784 § 6, 1990; Ord. 1025 § 1, 2006; Ord. 1035 § 1, 2007; Ord. 1151 § 2, 2021; Ord. 1183, 3/26/2024; Ord. 1183, 3/26/2024)
contracts for the services described in Section 3.20.105(B) and (C).

2. The city council shall approve any contracts above sixty thousand dollars, including the procurement for personal and professional services described in Section 3.20.105(B) and (C). Contracts described in Section 3.20.105(C) shall be subject to the provisions of Section 3.20.105(A).

City of Pico Rivera, CA
§ 3.20.210 § 3.20.210
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, AMENDING CHAPTER 3.48 ALTERNATIVE

BIDDING PROCEDURES FOR PUBLIC PROJECTS (INFORMAL

BIDDING) OF THE PICO RIVERA MUNICIPAL CODE
WHEREAS, the City of Pico Rivera (the “City”) is subject to the California Uniform Public Construction Cost Accounting Act (CUPCCAA); and
WHEREAS, as required by the CUPCCAA (Public Contract Code Section 22000 et seq.), the City adopted an ordinance outlining informal bidding procedures for certain public works projects which fall within specific dollar amounts; and WHEREAS, the intent of the CUPCCAA is to allow public agencies flexibility to streamline their procurement process by allowing the use of simplified bidding procedures, reducing the number of formal bids required for a project, expediting contracting for certain projects, and increasing force accounting limits for public agencies; and
WHEREAS, pursuant to the Pico Rivera Municipal Code (PRMC) Chapter

3.20.040(E) (“Purchasing officer powers and duties”), the City Council has delegated authority to the City Manager, in his or her capacity as the purchasing officer, to prepare and recommend to the City Council rules governing the purchasing of supplies, services and equipment for the City; and
WHEREAS, pursuant to Section 3.48.040 (“Informal bidding”), subparagraph (D), of the PRMC, before a notice inviting bids is let out, the City Council must “approve plans and specifications and authorize requests for bids,” for all projects falling within the CUPCCAA; and
WHEREAS, on November 6, 2000, the City Council adopted Ordinance No. 958 and approved that public projects over twenty-five thousand dollars and less than onehundred thousand dollars shall be contracted by informal bidding procedures as set forth in Section 3.48.080; and
WHEREAS, in 2025, the California Uniform Public Construction Cost Accounting Commission (the “Commission”) raised the threshold dollar amounts for public work projects falling within the scope of the CUPCCAA, and the City now also wishes to update those dollar amounts in Sections 3.48.080 (“Opening of bids and awards of contract”) and

3.48.100 (“Formal bidding”) of the PRMC accordingly.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Pico Rivera as follows:

SECTION 1. Findings. The City Council finds and determines that the adoption of the Ordinance is based upon the following findings.

Enclosure 2
7b
Back to Agenda Outline
ORDINANCE NO.

Page 2 of 4 ends

A. The recitals set forth above are incorporated herein as part of the findings.

B. An amendment to Chapter 3.48 (“Informal bidding”) is warranted to align it with the intent of the CUPCCAA and to reflect the dollar amount thresholds last adopted by the Commission. (Public Contract Code Section 22032).

C. Based on the above, the City Council determines that the Ordinance contained herein is necessary and, in the public’s best interest.

SECTION 2. Amendment. Sections 3.48.040 (“Alternative bidding procedures”),

3.48.080 (“Opening of bids and award of contract”), 3.48.100 (“Formal bidding”) of Chapter 3.48 (“Informal bidding for public projects”), Title 3 (“Revenue and Finance”), are hereby amended to read as follows (deletions on Strikethrough and additions in Underline):

3.48.040 Alternative bidding procedures.

Public works projects may be made undertaken by the city council with shall be subject to the following limitations:

A. Public projects of sixty seventy-five thousand dollars or less (or as thereafter amended by the California Uniform Construction Cost Accounting Commission, hereinafter, the “Commission”) may be performed by city employees by force account, by negotiated contract or by informal bid and purchase order, as recommended by the director of public works, depending on the nature, urgency, complexity and cost of the project. The city manager will advise the city council of projects in this cost range prior to commencement of work, negotiations or informal bidding procedures.

B. Public projects over sixty seventy-five thousand dollars and less (or as thereafter amended by the Commission) than two hundred and twenty thousand dollars (or as thereafter amended by the Commission) shall be contracted by informal bidding procedures as set forth in Section 3.48.080. The city manager will seek prior council approval to proceed with projects not contained in the current budget.

C. Public projects over two hundred twenty thousand dollars (or as thereafter amended by the Commission) shall be contracted by formal bidding procedures as set forth in Section 3.48.100. The city manager will seek prior council approval to proceed with projects not contained in the current budget.

C.D. The award of a bid shall, whenever possible, be awarded to the lowest responsible bidder.

D.E. Notices Inviting Bids. The purchasing officer shall solicit bids by written request to contractors licensed and experienced for the type of public work to be performed.

3.48.080 Opening of bids and award of contract.

ORDINANCE NO.

Page 3 of 4 ends

A. At the time provided in the notice inviting informal bids, the city clerk shall open all bids timely received and the purchasing officer shall award the contract to the lowest responsible bidder based upon the recommendation of the director of public works. If two or more bids are the same and lowest, the purchasing officer shall award the contract by drawing lots. If no bids are received, the director of public works may solicit informal bids again, perform the work by city forces, by force account or by contract, as he/she determines to be in the best interests of the city.

B. If all bids received are in excess of the two hundred twenty thousand dollars informal bid limit, the city council, may by passage of a resolution by a four-fifths vote, award the contract, at two hundred twelve thousand five hundred dollars or less, to the lowest responsible bidder for an amount not exceeding one hundred ten percent (110%) of the informal bidding limit, provided the council, if it determines that the city’s cost estimate for the project of the city was reasonable, pursuant to California Public Contract Code Section 22034(f).

3.48.100 Formal bidding.

Formal bidding of public projects with an estimated value in an amount over two hundred twenty thousand dollars shall be let to contract by formal bidding procedure. (Public Contract Code §22037).

SECTION 3. CEQA. Pursuant to Section 15061(c)(2) of the California Environmental Quality Act (CEQA) Guidelines, the City Council finds that this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Additionally, pursuant to Section 15060(c)(3), the activity is not a “project” as defined in Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional, invalid or ineffective. To this end, the provisions of this Ordinance are declared to be severable.

SECTION 5. The City Clerk shall certify the adoption of this Ordinance. The City Council hereby finds and determines that there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code, directs the City Clerk to cause said Ordinance, within fifteen (15) days after its passage, to be posted in at least five (5) public places within the City. This Ordinance shall take effect thirty (30) days after its adoption.

ORDINANCE NO.

Page 4 of 4 ends

ADOPTED AND PASSED this _____ day of ______, 2026.

________________________________
Gustavo V. Camacho, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
)§

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Cynthia Ayala, City Clerk
CHAPTER 3.48

ALTERNATIVE BIDDING PROCEDURES FOR PUBLIC PROJECTS
§ 3.48.010. Findings and purpose.
(Prior code § 2712.1; Ord. 757 § 1, 1989; Ord. 958 § 1, 2000; Ord. 1160 § 2, 2022) § 3.48.020. Definitions.

As used in this chapter:
"Facility" means any plant, building, structure, ground facility, utility system, subject to the limitation found in subsection 3 of the definition for "public project," real property, streets and highways or other public work improvement.
"Public project" means any of the following:
"Public project" does not include maintenance work. For purposes of this chapter, "maintenance work" includes all of the following:

A. It is in the public interest for the city to elect to become subject to the uniform public construction cost accounting procedures adopted by the California Uniform Construction Cost Accounting Commission pursuant to Public Contract Code Sections 22000 et seq., Part 3, Chapter 2.

B. Such election will enable the city to perform public works projects with its own forces, by contracts awarded through negotiation, purchase order without competitive bidding and/or informal bidding procedures when it is in the best interest of the city to do so unless specifically prohibited by the project's funding source(s) guidelines.

C. It is the intent of the city that this section governs the selection of public contractors by the city through alternative bidding procedures, in accordance with Public Contract Code Section 22032.

D. It is the intent of the city that any future amendments, duly adopted by the State Legislature, to Public Contracts Code Sections 22000 et seq., shall automatically become the law of the city, even if in conflict with this chapter.

Construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work involving any publicly owned, leased or operated facility;

1. 2. Painting or repainting of any publicly owned, leased or operated facility; In the case of publicly owned utility system, "public property" includes only the construction, erection, improvement or repair of dams, reservoirs, powerplants and electrical transmission lines of two hundred thirty thousand volts and higher.

3. Routine, recurring and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes;

1. 2. Minor repainting;
City of Pico Rivera, CA
§ 3.48.010 § 3.48.020
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Prior code § 2712.2; Ord. 757 § 1, 1989)
§ 3.48.030. Responsibilities of purchasing officer.

The city council delegates the authority to the purchasing officer to award informal contracts, pursuant to the provisions of Sections 3.48.040, 3.48.070 and 3.48.080, after receiving the recommendation of the director of public works. (Prior code § 2712.3; Ord. 757 § 1, 1989)
§ 3.48.040. Alternative bidding procedures.

Public works projects may be made by the city council with the following limitations:
(Ord. 772 § 1, 1990; Ord. 958 § 2, 2000; Ord. 1152 § 2, 2021; Ord. 1160 § 2, 2022) § 3.48.050. Development, maintenance and use of list of qualified contractors.

3. Resurfacing of less than one inch in thickness of streets and highways; Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants and servicing of irrigation and sprinkler systems;

4. Work performed to keep, operate and maintain publicly owned water, power or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of two hundred thirty thousand volts and higher.

5. A. Public projects of sixty thousand dollars or less (or as thereafter amended by the California Uniform Construction Cost Accounting Commission, hereinafter, the "Commission") may be performed by city employees by force account, or may be awarded by negotiated contract or by purchase order without competitive bidding, as recommended by the director of public works, depending on the nature, urgency, complexity and cost of the project. The city manager will advise the city council of projects in this cost range prior to commencement of work, negotiations, or informal bidding procedures.

B. Public projects over sixty thousand dollars and less (or as thereafter amended by the Commission) than two hundred thousand dollars (or as thereafter amended by the Commission) shall be contracted by informal bidding procedures as set forth in Section 3.48.080. The city manager will seek prior council approval to proceed with projects not contained in current budget.

C. The award of bid shall, whenever possible, be awarded to the lowest responsible bidder.

D. Notices Inviting Bids. The purchasing officer shall solicit bids by written request to contractors licensed and experienced for the type of public work to be performed.

A. The director of public works shall develop a list of qualified contractors eligible to submit bids on informal contracts awarded by the city. In developing the list, the director of public works shall obtain from the Contractor's State License Board, and from construction trade associations within the County of Los Angeles, names and addresses of qualified contractors located in Los Angeles County.

City of Pico Rivera, CA
§ 3.48.020 § 3.48.050
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Prior code § 2712.5; Ord. 757 § 1, 1989)
§ 3.48.060. Plans, specifications and working details.

The city council delegates to the director of public works authority to prepare and approve plans, specifications and working details for all informal contracts and directs the director of public works to develop plans, specifications and working details necessary to enable a qualified contractor to perform the work required for each informal contract awarded.
(Prior code § 2712.6; Ord. 757 § 1, 1989; Ord. 1152 § 2, 2021) § 3.48.070. Informal contract projects—Identifying and inviting bids.

B. The list shall be organized in accordance with the license classifications of the Contractor's State License Board.

C. The director of public works shall publish annually, in all construction trade journals required by the California Uniform Construction Cost Accounting Commission in accordance with Public Contract Code Section22036, notice that the city has elected to become subject to the uniform public construction cost accounting procedures, that it maintains a list of contractors qualified to submit bids on informal contracts and of the city office to contact for all information necessary for a qualified contractor to be included on the list.

D. Any licensed California contractor qualified according to classification may upon request be added to the list as set forth in subsection B of this section, at any time.

E. The director of public works shall develop and provide to contractors who apply for inclusion on the list a simplified form requesting the applicant's name, address and California contractors license number and classification.

A. With the concurrence of the manager, the director of public works will establish the need, urgency and funding source of new city public projects ranging in cost from zero to one hundred thousand dollars. Public projects shall be contracted in accordance with requirements of Section 3.48.040.

B. Projects shall not be split to avoid any of the bidding requirements contained in the Uniform Public Construction Cost Accounting Act, Public Contract Code 22000 et seq.

C. The director of public works shall mail notice inviting informal bids to all contractors on the list of qualified contractors for the category of work being bid, and/or to all construction trade journals as specified in subsection C of Section

3.48.050.

D. The director of public works shall complete the mailing of notices inviting informal bids, as required by this section, not less than ten calendar days before bids are due.

E. The notice inviting informal bids shall describe the projects in general terms, how to obtain more detailed information about the project, whether or not the project is required to be submitted on the city's approved electronic procurement platform and City of Pico Rivera, CA
§ 3.48.050 § 3.48.070
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Ord. 772 § 1, 1990; Ord. 958 § 3, 2000; Ord. 1160 § 2, 2022) § 3.48.080. Opening of bids and award of contract.
(Prior code § 2712.8; Ord. 757 § 1, 1989; Ord. 958 § 4, 2000; Ord. 1152 § 2, 2021) § 3.48.090. Rejection of informal bids.

The city reserves the right to reject any and all bids presented. If, after the first invitation for informal bids are rejected, the purchasing officer shall have the option, after reevaluating the project cost estimates to do one of the following:
(Prior code § 2712.9; Ord. 757 § 1, 1989)
§ 3.48.100. Formal bidding.

Formal bidding of public projects with an estimated value in an amount over two hundred thousand dollars shall be let to contract by formal bidding procedure. (Public Contract Code Section 22037).
(Ord. 772 § 1, 1990; Ord. 958 § 5, 2000; Ord. 1152 § 2, 2021) § 3.48.110. Procedure for emergencies.

The city council delegates to the director of public works the power to declare a public emergency, as defined in Public Contract Code Section 22035, and to accomplish repairs and/or replacements as are necessary to permit the continued operation or services of the city or to avoid danger to life or property. The work shall be performed at once without the benefit of informal or formal bidding. The work may be done by city forces, by contract or by both. The director of public works shall provide a full report on the emergency and work performed at the next meeting of the city council, at which time state the time and place for the submission of bids.

B. If all bids received are in excess of the two hundred thousand dollars informal bid limit, the city council may by passage of a resolution by a four-fifths vote, award the contract, at two hundred twelve thousand five hundred dollars or less, to the lowest responsible bidder, if it determines the cost estimate of the city was reasonable, pursuant to California Public Contract Code Section 22034(f).

A. Abandon the project or readvertise for bids in the manner described in this chapter.

B. By adoption of resolution by four-fifths majority of the city council, declare that the project can be performed more economically by city employees and the city may then have the project constructed by force account.

City of Pico Rivera, CA
§ 3.48.070 § 3.48.110
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 the city council must confirm such action by a four-fifths vote, and further determine appropriate action such as, but not limited to, whether work should continue without the benefit of informal or formal bidding.
(Prior code § 2712.11; Ord. 757 § 1, 1989)
§ 3.48.120. Economic Opportunities Program.

There is created within the city an Economic Opportunities Program to encourage the employment of unemployed Pico Rivera citizens on public works projects performed by or on behalf of the city.

A. Application. The provisions of this Economic Opportunities Program shall only apply to those public works projects which have been recommended for inclusion in the program by the city engineer and city manager to the city council and approved by the city council for inclusion in the program. Inclusion or deletion of public works projects from the Economic Opportunities Program shall be within the sole discretion of the city council.

B. Definitions.
"EOP" means the Economic Opportunities Program.
"EOP project" means a public works project which has been approved by the city council for participation in the Economic Opportunities Program. "EOP participant" means a bona fide citizen of the city who is on file with the California Employment Development Department as being unemployed and who is skilled and qualified to perform the type of work in a job classification designated for an EOP project by the city engineer.
"EOP goal" means the goal set by the city council for the percentage of the EOP participants to be employed for each EOP project. The city council shall set the EOP goal at the same time it designates the EOP project. "EOP contractor" means a person or entity contracting directly with the city for the performance of an EOP project.
"EOP subcontractor" means any subcontractor employed by an EOP contractor to perform work on an EOP project.

C. EOP Requirements. Every contractor contracting directly with the city on an EOP project shall comply with the requirements of the EOP program contained in this section.

1. Every EOP contractor shall include in his or her bid or contract proposal a program to meet the EOP goal. The program of the EOP contractor shall include, but not be limited to, the following means of employing EOP participants:
a. Obtaining EOP participants by placing a job order with the Whittier office of the State Employment Development Department;
City of Pico Rivera, CA
§ 3.48.110 § 3.48.120
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 b. Advertising employment positions by posting notices which identify the positions to be filled, the qualifications required, and when to obtain additional information about the application process in conspicuous public places such as the City Hall, post offices, libraries, senior citizens centers and parks;
c. Scheduling and advertising a job informational meeting to be conducted by the city or contractor representatives at a city facility; d. Arranging for contractor representatives to be available to provide assistance to city residents in completing job application forms; e. Arranging for the holding of a workshop on applying and interviewing for jobs;
f. Arranging for a location where job applications may be delivered to and collected;
g. Conducting job interviews at locations easily accessible to Pico Rivera residents;
h. Advertising the jobs to be filled through the local media, such as community television network, newspapers of general circulation, trade papers and minority focus newspapers;
i. Telephone solicitation of known potential EOP participants; j. Any other means of obtaining EOP participants which are reasonably calculated to comply with the EOP goal.

2. Upon the determination of the lowest responsible bidder for an EOP project, and prior to the award of the bid, the lowest responsible bidder must demonstrate to the reasonable satisfaction of the city engineer that the bidder will meet the EOP goal, or that the bidder has used his or her best good faith efforts to comply with the EOP goal. The determination of the city engineer may be appealed in writing to the city manager within three days of the determination by the city engineer. The determination of the city manager shall be final. If it is determined that the lowest bidder does not meet the EOP goal, or has not made his or her best good faith efforts to comply with the EOP goal, then that bid will be considered nonresponsive. The same process will then be used to determine if the second lowest bidder complies with the requirements of the EOP program. This process will be completed until the lowest remaining bidder is determined to comply with the EOP program.

3. Every contract or agreement between the city and an EOP contractor shall contain provisions requiring the contractor to carry out the provisions of the EOP program.

4. Every EOP contractor or EOP subcontractor shall incorporate or cause to be incorporated in all contracts or subcontracts for work to be performed in City of Pico Rivera, CA
§ 3.48.120 § 3.48.120
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 (Ord. 848 § 1, 1993)
connection with the EOP project the requirements of the EOP program.

5. In order to ensure that the city engineer is kept informed on the progress being made by the EOP contractor and subcontractor in meeting their obligations under the EOP program, each EOP contractor and subcontractor is required to:
a. Maintain such records and accounts and furnish such information and reports as are required by the city engineer and permit the city engineer access to books, records and premises for purposes of investigation in connection with ascertainment of compliance with the EOP program. The EOP contractor shall maintain records of all individuals hired under the EOP project. Such records shall show the name and address of each EOP participant and the gross dollar amount actually paid in wages to each EOP participant.

6. The city engineer is authorized to provide such forms and procedures as may be necessary to administer the provisions of the EOP program. The city engineer is further authorized to establish the job classifications appropriate for each EOP project.

7. An EOP participant shall not be dismissed from employment without good cause and without the written consent of the city. If an EOP participant is unable to perform successfully, and is to be replaced, the contractor will be required to make good faith efforts to replace the original EOP participant with another EOP participant. If any EOP participant is dismissed from employment without the written consent of the city, the original EOP participant must be rehired, or replaced with another EOP participant at the discretion of the city.

D. Invitations for bids and requests for proposals for EOP projects shall contain specific notification that this is an EOP project under which the contractor will be required to employ unemployed Pico Rivera citizens as required by the EOP program adopted by the city.

E. Failure of any EOP contractor or EOP subcontractor to comply with the provisions of the EOP program shall be cause for termination of the contract for the EOP project. The EOP contractor shall be liable to the city for all damages resulting from such termination as otherwise provided by law.

City of Pico Rivera, CA
§ 3.48.120 § 3.48.120
Downloaded from https://ecode360.com/PI4985 on 2026-03-13 RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PICO RIVERA,

CALIFORNIA, AMENDING THE CITYWIDE PROCUREMENT POLICIES

AND PROCEDURES
WHEREAS, the City is required, under California Government Code Sections 54201 through 54204, to adopt, by ordinance, policies and procedures that govern the purchase by the local agency; and
WHEREAS, on June 4, 1985, the City Council adopted Ordinance No. 32 establishing policies and procedures governing purchases by the City of Pico Rivera (“City”); and
WHEREAS, the City’s procurement policies and procedures were last revised on April 8, 2025, and since then, several developments have occurred requiring amendments to Chapter 3.20 (Purchasing) and Chapter 3.48 (Alternative Bidding Procedures for Public Projects) of the Pico Rivera Municipal Code; and
WHEREAS, as part of the City’s continuing effort to enhance the City’s fiscal and operational practices, a revised Citywide Procurement Policies and Procedures (“Policy”), attached hereto as Exhibit “A,” has been developed and submitted to the City Council for review; and
WHEREAS, concurrently herewith, the City Council considered and introduced an Ordinance as required by Section 54201 et seq. of the California Government Code, which is scheduled to be adopted at the next Council Meeting.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pico Rivera as follows:

SECTION 1. The above recitals are true and correct and incorporated herein by reference.

SECTION 2. The City Council finds that the proposed Policy, attached hereto in substantial form, is consistent with the General Plan as it provides and maintains efficient services that strive to be responsive to public needs.

SECTION 3. The City Council hereby approves and adopts the Policy.

SECTION 4. The City Clerk shall attest to the passage of this resolution, and it shall thereupon be in full force and effect.

Enclosure 3
Back to Agenda Outline
RESOLUTION NO. ____

Page 2 of 2 ends

APPROVED AND PASSED this 14th day of April, 2026.
____________________________
Gustavo V. Camacho, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ _______________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney AYES:

NOES:

EXHIBIT A
Procurement Policies and Procedures
References
City of Pico Rivera Municipal Code: Title 3 Revenue & Finance: 3.20 Purchasing City of Pico Rivera Municipal Code: Title 3 Revenue & Finance: 3.48 Informal Bidding for Public Projects
California Public Contract Code (CPCC) – Public Projects Only California Uniform Public Construction Cost Accounting Act (CUPCCAA) – Public Projects Only
California Constitution Article XVI Public Finance
Office of Management and Budget (OMB) Uniform Guidance 2 Code of Federal Regulations (CFR) Subtitle A, Chapter 2, Part 200, Subpart D, Section 200.318-327 Purpose
The purpose of this manual is to establish guidelines for the solicitation and selection of all procurement contracts entered by the City of Pico Rivera (City). The procurement process is designed to ensure that City citizens receive the maximum value for their tax dollars. City employees exercise care to avoid any situation or practice that may appear improper and always endeavor to obtain the maximum value for each dollar expended.

The City staff strives to conduct all purchasing transactions fairly and to give all qualified vendors equal opportunity, while always demanding truth and honesty in the procurement process.

Finance Department- Procurement Policies and Procedures Page 2

TABLE OF CONTENTS
Policies............................................................................................................................ 3 Procedures...................................................................................................................... 5 Dos and Don’ts................................................................................................................ 5 Summary......................................................................................................................... 6 Non-Public Project Purchases ..................................................................................... 6 Public Project Purchases ............................................................................................ 8 Competitive Bidding – Supplies, General Services, and Equipment ............................ 8 Formal Competitive Bid Guidelines ............................................................................. 9 Evaluation Guidelines for Competitive Bid ................................................................ 10 Competitive Selection – Services Request for Proposal ............................................ 10 Formal Competitive Selection Guidelines .................................................................. 10 Evaluation Guidelines for Competitive Selection ....................................................... 12 Local Business Preference ........................................................................................ 13 Evaluation Guidelines for Applying an Ethical Standard ............................................... 13 Exemptions from Competitive Bidding or Competitive Selection................................... 14 Federal and State Requirements ................................................................................. 15 Change Order .............................................................................................................. 17 Insurance Guidelines .................................................................................................... 17 Contract Type ............................................................................................................... 18 Contract Approval Process ........................................................................................... 18 Glossary ........................................................................................................................ 18 Finance Department- Procurement Policies and Procedures Page 3 Policies
Code of Conduct
The City must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employees, officers, or agents may participate in the selection, award, or administration if they have a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization that employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or subcontractors. However, the City may set standards for situations in which the financial interest is not substantial, or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions for violations of such standards by officers, employees, or agents of the City.

Fair Competition
The City staff must discharge their duties impartially to ensure fair competition among responsible vendors. All vendors will always be treated equally and fairly by City staff, with equal information provided to each vendor participating in the procurement process.

Prequalified lists of people or firms, or products used in acquiring goods or services, are to be kept current and include enough qualified sources to ensure maximum open and fair competition.

Purchasing Items with Recycled Content
In accordance with Section 22150-22154 of the California Public Contract Code and SB 1383 Article 12 Regulations, the City shall purchase recycled products instead of nonrecycled products whenever recycled products are available at the same or a lesser total cost than non-recycled items if fitness and quality are equal.

Purchasing Items with ADA-Compliant Content
Because each department will have expertise specific to the supplies, services, and equipment it requests, it shall be at the discretion of each department requester to determine whether any particular product or service meets both the ADA criteria and the essential needs of the City's residents. The department may consult with appropriate subject-matter experts when determining compliance.

Finance Department- Procurement Policies and Procedures Page 4 Other Considerations for Purchases
Per California Constitution Article XVI Public Finance Section 6, prior to making any expenditures that benefits a City employee, City officer, or private party, the City has to consider whether such expenditure constitutes a valid public purpose of the City, document the City Council’s deliberation and determination that the expenditure constitutes a valid public purpose for the City, and decline to authorize any expenditures that do not constitute a valid public purpose of the City. [This section intentionally left blank]
Finance Department- Procurement Policies and Procedures Page 5 Procedures
DOS AND DON’TS
DOS
 Follow Informal Bidding for Public Projects Municipal Code (3.48) for Public Project procurement.
 Utilize a contract to purchase general services and professional services of any amount (other than personal services defined in PRMC 3.20.105).  Departments must use the required legally approved templates for formal bids and Request for Proposals (RFP).
 Departments must use the required legally approved templates and compliance checklist from the City Clerk’s office to create an agreement or contract.
 Departments are to complete each agreement or contract in its entirety to include a completed scope of services before seeking final approval from the legal department.
 Once the City Clerk’s office receives an approved legal document, the City Clerk shall submit the completed and signed document back to the requested department for future processing.
 Department must obtain Risk Management’s approval of a vendor’s insurance or Risk Management’s notice that the insurance is not applicable.
 Department must obtain approvals from the appropriate authority for an agreement or contract.

DON’TS
 Do not circumvent established single purchase limits by splitting procurement transactions into small units that are artificially devised to avoid the bidding requirements and other procedures applicable to larger unit transactions.
 Do not circumvent established single purchase limits by changing orders to avoid the bidding requirements and other procedures applicable to higher approval limits.
 Do not participate in or work on a procurement if there is a real or apparent conflict of interest.
 Do not use sole source procurement when competitive solicitation procedures like sealed bids or competitive proposals are applicable or practicable.
 Do not pay vendor invoices with the City-issued Cal-Card.  Do not pay vendor invoices with the City's petty cash.

Finance Department- Procurement Policies and Procedures Page 6 Summary
General provisions: The City’s Municipal Code 3.48 (Informal Bidding for Public Projects) follows the California Uniform Public Construction Cost Accounting Act (CUPCCAA) and sets forth the procurement requirements and bidding limits for Public Projects, and the City’s Purchasing Municipal Code (PRMC 3.20) has established the following expenditure thresholds that determine which procedures are used for nonPublic Projects:

GOODS AND GENERAL SERVICES PROCUREMENT
Purchases less than $10,000
 No PO is required
 Invoice approved by the Department Head
Informal Competitive – $10,000 to $49,999
 Written scope of work or specifications
 Three quotes or a sole source form approved by the Department Head and the Finance Director
Formal Competitive – Purchases equal to or above $50,000  Formal solicitation document (invitation for bid or RFP)  Recommendation for award memo with one of the following:
• Actual bids and bid tabulation
• Proposals and the signed evaluation results
• Sole source form approved by the City Manager for purchases from $50,000 to $74,999
 The City Manager approves purchases up to $74,999
 The City Council approves all Purchases equal to or over $75,000 by a final staff report or a council resolution
Vehicle Purchases
 The acquisition of vehicles, which has been deemed necessary by the Public Works Director and City Manager through methods such as cooperative agreements, piggyback contracts, or sole source procurement, shall not require the City Council's approval prior to the purchase. However, if the purchase amount exceeds the City Manager’s approval threshold, it must be reported at the next Council meeting for ratification.

Subscriptions
 Subscriptions that are proprietary or available only from a single provider may be procured without competitive bidding when documented as a sole-source procurement.
 Subscriptions at or below the City Capitalization Policy threshold, currently $25,000, may be procured when the department determines that competitive solicitation is not practicable due to system compatibility, licensing restrictions, Finance Department- Procurement Policies and Procedures Page 7 or vendor exclusivity.
 Subscriptions exceeding the Capitalization threshold of $25,000 shall follow the formal competitive requirements above. However, in evaluating subscription procurements, the City may also consider system compatibility, service continuity, data migration risks, integration with existing systems, and the costs associated with transitioning to another provider when determining whether competitive solicitation is practicable.

Insurance may be required when vendors perform services, construction, or other work that exposes the City to potential liability. When required by Risk Management, insurance must be obtained prior to commencing services.

Exemptions: The competitive bidding or competitive selection procedures and requirements may be dispensed with for any of the following purchases:
 Emergency
 Sole source purchasing
 Contracts with other government agencies
 Cooperative or Piggyback purchasing
 Personal and professional services less than $75,000 if the procurement does not include any federal funding

PROFESSIONAL SERVICES AND GENERAL SERVICES
Compliance with federal, state, and local requirements: The competitive bidding procedures and requirements may be different for the following:
 Procurement with federal, state, or local grants
 Public projects
For purchases of less than $10,000 (per vendor per fiscal year) • Formal quotes are not required, and the soliciting department will employ a ShortForm Agreement to acquire the necessary services. It is the responsibility of the soliciting department to ensure that the vendor or contractor obtains a current business license and, when required by Risk Management, a valid certificate of insurance prior to commencing services.

For purchases from $10,000 to $49,999:
• The Soliciting Department prepares written specifications that explain the requirements for the purchase and how the vendor will be selected. • The Soliciting Department shall consult with Risk Management to discuss the specifications and determine if insurance is required.
• Informal quotes may be obtained in writing. The department should solicit at least three vendors via email or fax. The solicitation should include a due date. • The Soliciting Department collects at least three quotes and reviews them to make sure that department requirements are met.

Finance Department- Procurement Policies and Procedures Page 8 • The department prepares the bid sheet explaining the selection and any additional distinctions for the purchase, including non-responsive vendors. • The Sole Source form must be reviewed/approved by the Finance Director. • Insurance must be approved by Risk Management, or notice must be sent from Risk Management that insurance is not applicable. Soliciting departments should not assume that insurance is not applicable.

For purchases of $50,000 or more:

If no exemptions or special federal and/or state requirements are applicable, the City uses competitive bidding or competitive selection for purchases of $50,000 or more. The Finance Director may approve purchases up to $49,000, and the City Manager may approve purchases up to $74,999. The City Council approves all purchases equal to or over $75,000 using a final Staff Report or a Council Resolution.

Competitive Bidding is used to procure supplies, general services, and equipment valued at $50,000 or more. It is a price-only selection process where the contract is awarded to the lowest Responsive and Responsible bidder. Responsiveness refers to whether a bidder has met the requirements of the City’s specifications. Responsibility relates to the bidder’s general business standing, such as financial stability, performance on prior contracts of a similar nature, and so on.

Pre-bid meetings may be held to address bid-related questions. These meetings may be voluntary or mandatory. The meeting requirements cannot be changed, made mandatory, and/or used in an evaluation process after the bid has been posted.

PUBLIC PROJECT PROCUREMENT
Purchases less than $75,000
 Work may be performed by City employees (force account), negotiated contract, or purchase order without competitive bidding  Confirmation that the project qualifies as a public project under CUPCCAA and does not exceed the $75,000 threshold
 Department prepares a written cost estimate confirming the project is below the $75,000 threshold
 Approval by the Public Works Director and the City Manager prior to commencement of work in lieu of a Purchase Order
 Invoice approved by the Public Works Director and the City Manager Informal Competitive – $75,000 to $220,000
 Written scope of work or specifications
 Informal bids shall be solicited from contractors on the City’s qualified contractor list or, if no contractors are available on the list, through notice to appropriate construction trade journals.
 Purchase requisition approved by the Public Works Director and the City Manager prior to commencement of work
Finance Department- Procurement Policies and Procedures Page 9 Formal Competitive – Purchases above $220,000
 Formal solicitation document (invitation for bid or RFP)  Recommendation for award memo with one of the following:
• Actual bids and bid tabulation
• Proposals and the signed evaluation results
 The City Council approves all Purchases equal to or over $220,000 by a final staff report or a council resolution
Compliance with grant requirements: The competitive bidding procedures and requirements may be different if the public project is partially or fully funded by federal, state, and/or local grants.

Formal Competitive Bid Guidelines
Defining your need and conducting market research: Ensure that there is an understanding and agreement on the result you are buying. If there is a “knowledge gap” about your procurement or the industry from which you’re buying, then conduct market research.

Developing and approving solicitation documents:
• Ensure that you provide a complete set of specifications or scope of work for your procurement.
• Utilize the latest boilerplates available.
• Ensure that your account includes all necessary work or line items in your procurement.
• If your procurement is grant-funded, ensure that the granting agency requirements, including the solicitation threshold amounts, are met. • The City Attorney must approve formal solicitations.
• The Notice Inviting Bids provides information regarding:
o The type of contract being issued;
o Where the specifications can be obtained;
o The date and time at which responses are due and will be opened. • Any bid received after the stated deadline will not be accepted. At the time of bid opening, which is usually held in the City Clerk's Office, each bid is opened, and the respective bid prices are read aloud.

Evaluation Guidelines for Competitive Bids
The guidelines listed below comprise best practices and specific instructions from the City's Purchasing Municipal Code (PRMC 3.20). Together, they are designed to help staff apply appropriate evaluations to a competitive bid. All bids shall be placed in a sealed envelope and delivered to the City as specified in the Notice Inviting Bids. Sealed bids are typically opened by the City Clerk.

Finance Department- Procurement Policies and Procedures Page 10 The Soliciting Department Review for all Necessary Requirements, Licenses, and/or Certifications, such as the following:
• State License Requirements (if outlined in the Bid Document) • Certification Requirements (if outlined in the Bid Document) • Debarment and Suspension (Required for Federal Projects) - not on Debarred/Excluded Parties List (Sam.gov): include printed verification • Department of Industrial Relations Registration (Required for Public Works):
include printed verification
• Attendance of Pre-bid Meeting (if Mandatory)
Award of bid and determination of responsiveness: Departments are advised to review bids for responsiveness. The contract shall be awarded to the lowest responsive and responsible bidder.

The required forms include, but are not limited to:
• Declaration of non-collusion
• Bidder's Bid
• Bid Security (if outlined in the Bid Document)
• Signed (acknowledged) Addenda
Competitive Selection is a process in which multiple criteria are employed to identify the proposer who provides the City with the best overall value. Competitive selection utilizes RFPs and employs various criteria for the selection process. A contract can be awarded for reasons other than the lowest price.

Formal Competitive Selection Guidelines
RFPs outline the details of a Scope of Work that defines what the selected firm will do for the City, such as conducting a study or delivering a customized software program, etc. • Proposals are assessed via evaluation criteria that explain how the proposals will be evaluated, and a firm will be selected.
• The Competitive Selection process for an RFP is not determined by price only.

In fact, the price needs not to be a criterion. Prior experience of the firm and key people to be assigned to the project are typical criteria. • RFPs list those items under the title Contents of Proposals, which a proposer is required to provide in order for their proposal to be responsive and considered. o There should be a relationship between the Contents of Proposals and the evaluation criteria. For example, if the evaluation criterion is prior experience, the Contents of Proposals section should require the submission of resumes, references, corporate history, and related materials.
• Unlike Competitive Bid contracts, contracts subject to Competitive Selection are not required to be noticed in the newspaper. However, the department will place Finance Department- Procurement Policies and Procedures Page 11 a notice on the City's bid notification system. If federal or state grants/funds are utilized, departments should review the advertising requirements. • The City Attorney’s Office must approve all RFPs prior to issuance.

Soliciting Department prepares the RFPs with the City's standard boilerplate, which includes the City's legal requirements and the following descriptive elements:

1. Introduction: This section states the general nature and purpose of the RFP. The project should be described in as much detail as needed to provide the reader with a basic understanding of the request and requirements necessary to perform the work.

2. Background: This section provides a brief history, justification, or rationale for the project. Such data should include, but not be limited to, a brief description of the City (e.g., population, square miles) and any other information regarding the demographics of the City that will give the prospective proposers an understanding of the community.

3. Objective: This section states the specific goal. It explains what is expected at the end of the contract and what is anticipated from the contractor’s services.

4. Scope of Services/Scope of Work (SOW): This section provides guidance and clarity to prospective bidders for their understanding of the work to be undertaken.

SOWs are divided into two categories: performance-based (professional services contracts) and design-based (architectural or IT-related). The SOW should define the level of effort that is expected. SOWs should include information regarding any environmental impact the project may have under the California Environmental Quality Act (CEQA).

5. Location: This section provides the project's location, that is, where the services are to occur, and includes the name and phone number of the City's contact person. Pictures, maps, and diagrams should be included when possible.

6. Service Dates: This section provides the anticipated commencement and ending dates for which services will be required and any other milestones that need to be met to complete the project on time successfully.

7. Evaluation Criteria: This section defines specific evaluation criteria. Criteria must be assigned specific point values or percentages for evaluating each proposal. A typical evaluation matrix would specify the weights used to evaluate the proposals, for example, technical 30%, cost 20%, customer service 15%, training 15%, and experience 10%. If the project has a limited budget, a budget range may be included in the RFP.

Pre-proposal meetings are scheduled and set up by the Soliciting Department. Addenda are typically developed by the Soliciting Department and sent to potential bidders.

Evaluation Guidelines for Competitive Selection
The guidelines below consist of best practices and specific instructions from the City's Purchasing Municipal Code (PRMC 3.20). Together, they are designed to help staff apply appropriate evaluations to a competitive selection.

Finance Department- Procurement Policies and Procedures Page 12 Departments must follow the evaluation section of the RFP. Departments are advised to use evaluators who are subject-matter experts, such as consultants, City employees, and employees of other agencies, to ensure that proposals meet the Department’s technical requirements. Finally, Departments should maintain (file) backup documentation of each proposal’s “evaluation criteria” results.

The Soliciting Department should send the RFP and addenda posted to the Evaluation Review Panel prior to receipt of the proposal.

The Department Lead should meet with the Review Panel to ensure everyone understands the RFP Statement of Work and the evaluation criteria and discuss any potential conflicts and the timeline for the RFP proposal review.

The Soliciting Department reviews all necessary requirements, licenses, and/or certifications outlined in the RFP, similar to the required documents listed for the Bid.

Evaluation Method for RFPs:

The following evaluation method is recommended:

1. All factors are considered and scored according to the established criteria.

2. It is recommended to establish a minimum acceptable score each proposal would have to achieve in order to move forward in the process. Proposals that do not meet the minimum level will not advance to the final evaluation step.

Example:

Category Proposal
A
Proposal
B
Proposal
C
Technical (40%) 35 36 40
Qualifications (35%) 35 30 35
Experience (20%) 19 18 17
Local Business (5%)* 5 5 0
Total Points 94 89 92
* Local Business scoring is applied only when a Local Business Preference is authorized for the solicitation; the evaluation criteria may include a Local Business category of up to five percent (5%).

If the minimum acceptable score is 90, only proposals A and C will advance to the final evaluation step. Staff can then negotiate prices with firms A and C and determine to which vendor the contract shall be awarded based on the score and cost.

Local Business Preference
To support the local economy and encourage participation from businesses located within Finance Department- Procurement Policies and Procedures Page 13 the City of Pico Rivera, the City may apply a Local Business Preference when evaluating formal competitive solicitations (e.g., Invitation for Bids or Requests for Proposals). This preference applies only to procurements requiring formal competitive bidding and does not apply to purchases below $50,000 that require informal bidding or do not require a bidding process.

Businesses with a valid City of Pico Rivera business license and a physical address within the City may receive an evaluation preference of up to five percent (5%) of the total evaluation score or price comparison, as applicable. This preference is used solely for evaluation purposes and does not alter the contract price.

The Local Business Preference shall not exceed five percent (5%) of the total evaluation score or equivalent price comparison. This preference shall not apply to procurements funded in whole or in part by federal, state or local grants where geographic preferences are prohibited unless expressly authorized by the funding agency.

Evaluation Guidelines for Applying an Ethical Standard:

This section of the Evaluation Guidelines is designed to guide staff in applying basic ethical standards to the evaluation process. Staff is strongly advised to comply with all ethical standards administered by the Human Resources Department. Staff is generally recommended to eliminate any known bias from their evaluation process. Additionally, staff is advised that the City's purchasing processes are all public processes. Therefore, they should make known any impact a contract award can have on them personally or professionally. Furthermore, staff is advised to consider recusing themselves from being an evaluator in the following general instances:
• Has or has had a personal or professional relationship with any of the vendors in contention.
• Will be evaluating alongside a subordinate or a supervisor. • Have already received a presentation related to the current proposal from any of the vendors in contention.
• Have the potential to receive a direct or indirect benefit based on the award or non-award of the contract.

Exemptions from Competitive Bidding or Competitive Selection Although all contracts $50,000 or more are subject to either Competitive Bidding or Competitive Selection, under certain circumstances, the process may be dispensed with, and an exemption may be granted. It is important to note that an exemption only exempts the competitive portion of the purchasing process. All other requirements (forms and procedures) still apply.
• Emergency: Emergency public project procurements shall follow Public Contract Code §22050 and may require ratification by the City Council as required by that statute. As defined in CPCC Section 22050, in cases Finance Department- Procurement Policies and Procedures Page 14 of emergency when repair or replacement is necessary, the City may proceed at once to replace or repair any public facility without adopting plans, specifications, working drawings, or working details, or giving notice of bids to let contracts. The work may be done by day labor under the direction of the City, by contractor, or by a combination of the two.

The day labor includes the use of maintenance personnel employed on a permanent or temporary basis. The City Manager can authorize a purchase due to an unexpected, urgent request in which health and safety or public resource conservation are at risk. The procurement must be reported to Council at the next Council Meeting for ratification if the amount has been subject to City Council approval.
• Sole source – The City may dispense with the bidding requirements if it finds that the materials, supplies, equipment, or services are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source, or, if available from more than one (1) source, can be purchased from the manufacturer or service provider for a lower price. If the cost of such sole source purchasing is $75,000 or greater, the City Council’s approval shall be required. • Contracts with other government entities for supplies, services, and equipment: The City may enter into contracts with other government agencies without a competitive process.
• Cooperative or piggyback purchasing – The City may be exempted from a competitive procurement process when cooperating or piggybacking with another governmental agency.
• Personal and professional services: The City may award personal and professional service contracts less than $75,000 if the procurement does not include any federal funding, based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the service required. Architectural, engineering, and land surveying services must follow the qualifications-based selection procedures required by California Government Code Section 4526, regardless of contract amount.

Federal, State, and Local Requirements
Suppose a Federal, State or Local agency has any level of authority regarding your purchase. In that case, it is incumbent upon the solicitation Department to follow any and all procurement rules required for the specific purchase. Please be prepared to provide detailed instructions directly from the federal or state agency that governs your solicitation. Below are a few general guidelines to consider that may govern your procurement. It is important to note that this section is not designed to provide all federal Finance Department- Procurement Policies and Procedures Page 15 or state requirements. If you are making a purchase bound by federal or state rules, you are strongly advised to gather and assemble all necessary forms, procedures, and policies that govern your solicitation.
• Federal, state, or local grants: If the procurement is grant-funded partially or completely, the City must meet all granting agency requirements, including the solicitation threshold amounts. The most restrictive policy should be followed.
• Public projects: As defined in CPCC Section 22002, a public project includes but is not limited to construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operating facility. A public project does not include maintenance work. The City shall procure a Public Project by following the requirements and bidding limits set forth by the California Uniform Public Construction Cost Accounting Act (CUPCCAA), which periodically adjusts those requirements and thresholds for efficiency and inflation. The City’s Municipal Code 3.48 provides more specific guidelines for public project procurement.

Consultant Selection and Procurement
For example, the City receives grants from the Department of Transportation via Caltrans.

According to 23 CFR “ Highway” Part 172 “Procurement, Management, and Administration of Engineering and Design Related Services”, Section 172.5(b)(1) (https://www.ecfr.gov/current/title-23/chapter-I/subchapter-B/part-172), the City shall follow the procedures detailed in the Local Assistance Procedures Manual (LAPM) Chapter 10 “Consultant Selection” https://dot.ca.gov/programs/localassistance/guidelines-and-procedures/local-assistance-procedures-manual-lapm) for the procurement, management, and administration of engineering and design related consultant services funded in whole, or in part, with Federal-aid highway program funds.

Departments are responsible for reviewing and validating all of the Caltrans and Federal requirements, including contract language that is included in their solicitation, prior to advertisement of the solicitation.

Departments are advised to adhere to all Federal standards applicable to their funding as it relates to purchasing. The link below contains the 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 Finance Department- Procurement Policies and Procedures Page 16 Below is an excerpt for immediate reference:
• § 200.214 Suspension and debarment
• § 200.215 Never contract with the enemy
• § 200.216 Prohibition on certain telecommunications and video surveillance services or equipment.
• § 200.318 General Procurements Standards
• § 200.319 Competition
• § 200.320 Procurement Method – Federal procurement thresholds, including micro-purchase and simplified acquisition thresholds, are established by federal regulation and may change periodically; departments shall follow the most current federal thresholds when federal funds are used.
• § 200.321 Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms
• § 200.322 Domestic preferences for procurements
• § 200.323 Procurement of recovered materials
• § 200.324 Contract cost and price
• § 200.325 Federal awarding agency or pass-through entity review • § 200.326 Bonding requirements
• § 200.327 Contract provisions & Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards Federal terms and conditions include, but are not limited to, the following:
• Equal Employment Opportunity
• Davis-Bacon Act and Copeland “Anti-Kickback” Act
• Contract Work Hours and Safety Standards Act
• Clean Air Act and Federal Water Pollution Control Act • Debarment and Suspension Certification to ensure that a contract is not to be awarded to parties listed on the System for Award Management’s (SAM) “List of Parties Excluded from Federal Procurement or NonProcurement Programs.” • For federally funded procurements exceeding the simplified acquisition threshold, the City must perform and document a cost or price analysis in accordance with 2 CFR §200.324.

PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT

REQUIREMENTS FOR FEDERAL AWARDS
Finance Department- Procurement Policies and Procedures Page 17 Change Order
Approval authority for change orders is determined based on the total revised contract amount. If a contract or purchase order originally approved by a Department Head, Finance Director, or the City Manager later requires authorization for additional expenditures or costs that, if included as part of the original contract, would have exceeded the Department Head’s, Finance Director’s, or City Manager’s contract approval authority, any amendment(s) authorizing such additional expenditures or costs shall be:
• Approved by the Department Head if the additional expenditures and costs, had they been included in the original contract, would have still been within $10,000;
• Approved by the Finance Director if the additional expenditures and costs had been included in the original contract, would have exceeded $10,000, but were below $50,000. Also, staff should conduct an informal bid or provide a sole source form approved by the Finance Director; • Approved by the City Manager if the additional expenditures and costs were included in the original contract, contingency, and any subsequent change orders exceeding $50,000 but below $75,000. Also, staff should conduct a formal bid or provide a sole source form approved by the City Manager;
• Approved by the City Manager if the cumulative change orders are up to ten percent (10%) of the original contract value and any approved contingency over $75,000;
• Approved by the City Council if the cumulative change orders exceed ten percent (10%) of the original contract value and any approved contingency over $75,000.

Insurance Guidelines
In general, when a vendor is performing work for the City, whether on City property or not, some form of insurance may be required, regardless of the amount of a purchase order or the length of time the vendor will be on City premises. If in doubt whether the insurance documentation submitted by a vendor complies with the City's insurance requirements, you may request Risk Management review and approve the insurance prior to submitting a Requisition to the Finance Department. In an effort to assist vendors in complying with the City's insurance requirements, it may be helpful to provide the vendor with a copy of the City's General Insurance Requirements. A copy of this document and other types of coverage can be obtained from Risk Management.

Finance Department- Procurement Policies and Procedures Page 18 Types of Coverage may include, but are not limited to, general insurance requirements, construction type risks, contracts with professional liability, contracts with software, cyber liability, and professional liability.

Contract Types
The City has several standard contracts, each with its own particular terms and conditions. The contracts include purchase orders for supplies and equipment, professional services contracts, etc. The type of contract used for a particular transaction is determined by the nature of the transaction.

Contract Approval Process
The soliciting department makes sure that there are sufficient funds in the budgeted accounts/projects before the contract is approved by the appropriate approval authority.

The Department verifies the contract’s fiscal impact included in the agenda report. The contract approval authority is defined in PRMC 3.20.210.

The soliciting department prepares a draft contract, has it reviewed by the City Attorney, and then approved by the appropriate authority before a contract can be effective.

Per PRMC 2.04.140, the City manager shall examine all proposed contracts to which the City may be a party and may sign on behalf of the City any contract authorized by the City Council, except where the council directs that some other officer or officers shall do so.

Therefore, unless directed by the City Council, no other employees are authorized to bind the City into a contract.

Glossary
ADA
The Americans with Disabilities Act (ADA) became law in 1990. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and public and private places open to the general public. The purpose of the law is to make sure that people with disabilities have the same rights and opportunities as everyone else. The ADA gives civil rights protections to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion.

Bid security is a bond or deposit that guarantees the bidder/proposer will accept the contract as bid if awarded.

Bid specification is a document that states the requirements to which a given product or service must conform.

Finance Department- Procurement Policies and Procedures Page 19 Competitive bidding is the process of inviting and obtaining bids from competing sources in response to advertised specifications, and by which an award is made to the lowest and best bidder who meets the specifications.

Competitive selection is a process in which various criteria are used to determine which proposer offers the City the best overall value. Competitive selection is used for services.

Contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration to do or abstain from doing some act. The essential elements of a contract are: 1) an offer and an acceptance of that offer; 2) the capacity of the parties to contract; 3) consideration to support the contract; 4) a mutual identity of consent; 5) legality of purpose; and 6) definiteness.

Exemption is a limited action that allows a purchase to be made without the Competitive Bidding or Competitive Selection processes.

General service is a service of a general nature (as opposed to personal and professional services). If the City determines that all vendors in a service classification can provide the service satisfactorily, a bid process would be appropriate. However, if factors other than price need to be considered in awarding the contract, the RFP process may be used.

Professional services require a high degree of professional, educational, or technical skill, such as services rendered by architects, engineers, bond underwriters, actuaries, attorneys, auditors, software service providers, web designers, and others.

Purchase Order (PO) is a written document to a vendor formalizing the City's terms and conditions of a proposed transaction, such as a description of the requested items, delivery schedule, terms of payment, and transportation. (PRMC 3.20.070) Request for Proposal (RFP) is a document used to solicit proposals from potential providers for goods and services. Price is usually not a primary evaluation factor. It provides for negotiating all terms, including price, prior to contract award.

Requisition (RX) is a document created by a requester to initiate the procurement of supplies, services, and equipment. It includes a description of the purchase and other relevant information. An RX is not a purchase order and shall not be used or represented as such. (PRMC 3.20.060)

COUNCIL

MEETING
DATE

COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action

DISCUSSION
ITEM
ACTION

ITEM DATE
STATUS:

Complete;
Pending;
On-going;
In-Progress
9/9/2025 Sanchez/Garcia Smoke Free Multi-Unit Housing Year of 2026 Alvie Betancourt CED/Planning Commission Agenda Report In Progress 11/12/2025 Sanchez/Camacho SNAP Benefits Assistance to residents 2/24/2026 Garcia/Sanchez Pico Boys Softball Team Relocation Pam Yugar

GOOD OF THE ORDER
Back to Agenda Outline

Pico Rivera City CouncilApril 14, 2026

Pico Rivera City Council
April 14, 2026