South Gate City Council
September 8, 2026

SOUTH GATE CITY COUNCIL

REGULAR MEETING AGENDA
Tuesday, September
8, 2026 at
6:30 p.m.

SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
DIAL-IN NUMBER 1 (213) 338-8477
MEETING ID: 876 2600 4020
VIEW MEETING LIVE ONLINE AT:

HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Joshua Barron

CITY CLERK,
Yodit Glaze

VICE MAYOR,
Al Rios

CITY TREASURER,
Jose De La Paz

COUNCIL MEMBER,
Maria del Pilar Avalos

CITY MANAGER,
Rob Houston

COUNCIL MEMBER,
Maria Davila

CITY ATTORNEY,
Ra
ú
l F. Salinas

COUNCIL MEMBER,
Gil Hurtado

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Meeting Schedule
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.

Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.

City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.

Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.

Emails for public comment received prior to 4:00 pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.

Call to Order/Roll Call With Invocation & Pledge

CALL TO ORDER:

Joshua Barron, Mayor
INVOCATION:

Tina De La Rosa, Director of Parks & Recreation
PLEDGE OF ALLEGIANCE:

ROLL CALL:

Yodit Glaze, City Clerk
Public Hearings

1. Introduction and First Reading of an Ordinance of the City Council of the City of South Gate Amending Chapter 1.54 (Purchasing System and Bidding Rules) of the South Gate Municipal Code to Modernize Procurement Procedures, Align with State and Federal Law, and Improve Operational Efficiency

The City Council will consider: (AS)
2 a. Introducing the proposed Ordinance amending Chapter 1.54 of the South Gate Municipal Code by reading title only and waiving further reading; and b. Setting the second reading and adoption of the Ordinance for the regular meeting of September 22, 2026.

Documents:

Item 1 09082026.pdf
Reports And Presentations

2. Parks and Recreation Department's Budget Reduction Service Impacts Update

The City Council will consider: (PARKS)
Receiving and filing the Parks and Recreation Department's budget reduction service impact update. The presentation will describe how the recent budget cuts are impacting services to our community.

Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.

Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.

Reports And Comments From City Officials

During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.

Consent Calendar Items

Agenda Items
3, 4, 5, 6, 7, 8
and
9 are Consent Calendar Items. All items including
Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent 3 Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action. Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.

Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.

3. Receive and File a Report on the City of South Gate's Compliance with the California Values Act (SB54)

The City Council will consider: (CM)
a. Receive and file this report on the City of South Gate’s compliance with the California Values Act (Government Code sections 7284–7284.12); and b. Direct the City Attorney, in coordination with the City Manager and the Chief of Police, to continue monitoring legislative and regulatory developments related to the California Values Act and SB 580 and to report to the City Council as necessary; and c. Direct the City Manager to ensure that all updated model policies required by SB 580 (Government Code section 12532.5) are implemented by the statutory deadline of January 1, 2027.

Documents:

Item 3 09082026.pdf

4. Second Reading of Ordinance No.26-06-CC for a Zone Change from IF (Industrial Flex) to M3 (Heavy Manufacturing) for a Portion of the Property Located at 9313 Rayo Avenue and Intent to Adopt a Mitigated Negative Declaration Pursuant to the California Environmental Quality Act (PL25-146/ZC25-02)

The City Council will consider: (CD)

a. Find that in accordance with the California Environmental Quality Act (CEQA), all potentially significant impacts would be reduced to less-than-significant levels with incorporation of a mitigation measure, and adopt a Mitigated Negative Declaration (MND) consistent with Section 15070 of the State CEQA Guidelines; and b. Waive further reading and adopt Ordinance No. 2026-06-CC, included as Attachment 1, approving PL25-146/ZC25-02 for a property at 9313 Rayo Avenue.

Documents:
4 Item 4 09082026.pdf

5. Resolution Accepting Alcohol Policing Partnership Grant Funds from the State of California Alcoholic Beverage Control

The City Council will consider: (PD)
a. Adopting a Resolution approving Agreement Number 26-APP41 accepting grant funds in the amount of $62,644 from the State of California Department of Alcoholic Beverage Control for ABC enforcement and compliance for Fiscal Year 2026-2027; and b. Appropriating $62,644 in the Fiscal Year 2026/27 Budget under Fund 231 Law Enforcement Grants and increasing grant revenue by the same amount; and c. Authorizing the Chief of Police to execute the Grant Agreement in a form acceptable to the City Attorney.

Documents:

Item 5 09082026.pdf

6. Amendment No.1 to Contract No.2025-04-CC with GO2ZERO Strategies, LLC., to Expand the Scope of Work and Increase Compensation

The City Council will consider: (PW)
a. Approving Amendment No. 1 to Contract No. 2025-04-CC with Go2Zero Strategies, LLC, to provide additional specialized services needed to comply with SB 1383 requirements, in an amount not-to-exceed $206,441;
b. Appropriating $206,441 in CalRecycle SB1383 Local Assistance Grant Fund needed for Amendment No. 1 to Contract No. 2025-04-CC; and
c. Authorizing the Mayor to execute Amendment No. 1 to Contract No. 2025-04-CC in a form acceptable to the City Attorney.

Documents:

Item 6 09082026.pdf

7. Ratification of an Agreement with All City Management Services, Inc., for Crossing Guard Services, and Approval of a Related Budget Amendment

The City Council will consider: (PD)
a. Ratifying an Agreement with All City Management Services, Inc. (“ACMS”), for crossing guard services for a term of August 31, 2026, through December 18, 2026, in an amount not to exceed $153,400; and
5 b. Approving a budget amendment appropriating $153,400 from the General Fund Budget Stabilization Reserve to account 100-505-21-6109 in the Fiscal Year 2026-2027 budget.

Documents:

Item 7 09082026.pdf

8. Agreement with All American Asphalt for the Construction of Phase V of the Citywide Residential Resurfacing Project, City Project No.727-ST

The City Council will consider: (PW)
a. Approving an Agreement with All American Asphalt to construct the Citywide Residential Resurfacing Project, Phase V, City Project No. 727-ST, in an amount not-to- exceed $2,392,979;
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney;
c. Approving Contract Change Order No. 1 in an amount not-to-exceed $1,500,000 to fund street improvements on approximately 24 additional streets segment under Phase V of the Residential Resurfacing Project, and authorizing the City Manager to execute it; d. Authorizing the City Manager to approve contract change orders in a cumulative amount not-to-exceed $347,438 to perform additional or unforeseen work necessary to complete construction of the Project;
e. Transferring $50,000 in Measure R Funds and $200,000 in Proposition C Local Return Funds, to fund additional street improvements, from Phase IV of the Residential Resurfacing Project, City Project No. 699-ST, to Phase V of the Residential Resurfacing Project, City Project No. 727-ST;
f. Appropriating $960,000 in Community Development Block Grant funds to Phase V of the Residential Resurfacing Project, City Project No. 727-ST, to fund additional street improvements and to construct eight pickleball courts at South Gate Park; g. Adopting a finding that Phase V of the Residential Resurfacing Project is categorically exempt under Title 14 of the California Code of Regulations, Section 15301, Class 1(c), for existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities, including road grading for public-safety purposes, and categorically excluded under Section 326 of amended Chapter 3 of Title 23, United States Code (23 U.S.C. Section 326), without significant environmental impacts as defined by the National Environmental Policy Act ("NEPA"); and
h. Approving the Notice of Exemption for Phase V of the Residential Resurfacing Project and directing the City Clerk to file it with the Los Angeles County Registrar- Recorder/County Clerk.
6 Documents:

Item 8 09082026.pdf

9. Agreement with O’Duffy Brothers Inc., for the Construction of Phase III of the Water Main Replacement Project, City Project No.702-WTR

The City Council will consider: (PW)
a. Approving an Agreement with O’Duffy Brothers Inc. (O’Duffy), for the construction of Phase III of the Water Main Replacement, City Project No. 702-WTR., in an amount not- to-exceed $4,454,728;
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney;
c. Appropriating $1,461,530 in Water Funds to fully fund Phase III of the Water Main Replacement, City Project No. 702-WTR;
d. Authorizing the City Manager to approve and execute change orders up to a cumulative amount of $601,000 in Water Funds; and
e. Approving the Notice of Exemption for Phase III of the Water Main Replacement, City Project No. 702-WTR.

Documents:

Item 9 09082026.pdf
Recommendations And Requests

10. City Council Appointments to the Various City Commissions, Committees and Boards

The City Council will consider: (CM)
a. Ratifying the nomination by Vice Mayor Al Rios of Fernando Rivera to the Planning Commission.

Documents:

Item 10 09082026.pdf

11. Warrant Register for September 8, 2026
The City Council will consider: (AS)
a. Approving the Warrant Register for September 8, 2026.

7 Total of Checks: $5,893,592.33 Less: Employee Payroll Deductions
(368,269.98)
Grand Total: $5,525,322.35

Cancellation: 115617
Documents:

Item 11 09082026.pdf
Adjournment

I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on September 3, 2026, at 4:17p.m., as required by law.

Yodit Glaze
City Clerk

GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.

MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:

City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.

PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers.

Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.

Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.

To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, email, mail. Methods of participation may be subject to change during other such 8 times when a State of Emergency, Health Order or State Executive Order limits in-person participation.

CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action upon the published agenda continued.

STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.

SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City Council Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to assure accessibility. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
9 Item No. 1
SFP 0 3 ":)ri:)fj
FIL-ED
7 : 32/-al Ciffl of South Gate

CITY COUNCIL
AGENDA BJ[LL
For tbe Regular Meeting of: September 8, 2026 (Continued from August 25, 2026) Originating Department: Adtninistrative Services
CifflManager:

Luis Frausto for Rob Houstm
SUBJECT: INTRODUCTION AND FIRST READING OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE AMF,NDmG CHAPTER 1,54 (PURCHASING SYSTEM AND BIDDING RULES) OF THE SOUTH GATE MtJNICIPAL

CODE TO MODERNIZE PROCUREMENT PROCEDURES, ALIGN WITH ST ATE AND

FEDERAL LAW, AND IMPROVE OPF,RATIONAL EFFICIENCY
PURPOSE: To ask the City Council to introduce, by firstreading, an Ordinance comprehensively amending Chapter 1.54 ofthe South Gate Municipal Code (Purchasing System andBidding Rules) and to set second reading and adoption for theregularmeeting of September 22, 2026. The current Chapter was last comprehensively updated in2005 and contains provisions that have fallen out of step with current state and federal law. The proposed Ordinance modernizes procurement procedures, brings the cliapter into compliance with cutrent statute, and improyes operational efficiency. The Ordinance expands administrative award, change order, and surplus disposition authority in several respects, as identified and quantified in the Analysis section below, and the proposed levels are within the range adopted by comparable California general law cities.

RECOMMENDED ACTIONS: Adoption ofthis Ordinance requires afour-fifthsvote ofthe City Council, because Section 1,54.370(B) of the amended Chapter delegates emergency contracting authority to the City Manager and Public Contract Code Section 22050(b)(1) requires that such a delegation be made by a four-fifths vote. The City Council will consider:
a. Introducing the proposed Ordinance amending Chapter 1.54 of the South Gate Municipal Code by reading title only and waiving further reading; and b. Setting the second reading and adoption of the Ordinance for the regular meeting of September 22, 2026.

S[TMMARY: Chapter 1.54 governshowthe City buys goods, contracts for setvices, awards public works projects, and disposes of surplus property. The current Chapter was last comprehensively updated in 2005 and shows its age in four respects.

First, several provisions no longertrack current state and federal law. The current Chapterrequires payment bonds on public works contracts only above $100,000, while California Civil Code Section 9550 mandates paytnent bonds on all California local public works contracts above $25,000. The current Chapter does not address the Public Contract Code Section 22050(c)(2) 1 10
timing for Council review and ratification of emergency procurements. The current Chapter cites Article XI Section 8 of the California Constitution for intergovernmental contracts, where the controlling authority is the Joint Exercise of Powers Act at Governrnent Code Section 6500 et seq.

Second, dollar thresholds set in 2005 are now, in some cases, too low to reflect current operational reality and, in other cases, create uru'iecessary Council touches on routine transactions. The open market threshold of $2,000 has not been adjusted in over 20 years, creating a paperwork burden for routine purchases. The administrative disposition limit for surplus property of $1,000 sends low-value items to the Council for individual approval.

Third, the current Chapter is silent on procurement methods that have become standard in California municipal practice, including design-build and progressive design-build delivery for public works (authorized under Public Contract Code Section 22160 et seq. and Section 22170 et seq. respectively, for the categories of agency and project those chapters cover), on-call and master service agreements with task-order structures, cooperative and piggyback purchasing under proper certification, and e-procurement portal-based notice and award.

Fourth, the current Chapter does not address how procurement procedures change during a proclaimed local, state, or federal emergency. South Gate's experience during the COVID-19 response, the 2020 windstorm, and other recent emergencies confirmed that the City needs a codified emergency procurement framework with clear delegation tiers, ratification procedures, and operational mechanisms.

The proposed Ordinance addresses all four concerns. It brings the four critical legal compliance provisions into alignment with the current statute. It rationalizes dollar thresholds where the 2005 figures have become operationally burdensome, while preserving the existing $50,000 formal bidding threshold. It introduces modern procurement methods that California municipal practice has adopted. It establishes a comprehensive emergency procurement framework. And it adds new internal-control provisions, including an anti-splitting prohibition (Section 1.54.165), a funding eligibility certification at the department level (Section 1.54.140(B)), and an annual inflation adjustment mechanism subject to Council resolution (Section 1.54.030(B)).

The proposed Ordinance has undergone extensive legal review by the City Attorney's Office, including a final review by outside counsel retained by the City Attorney. All material legal compliance items have been addressed, and the City Attorney's Office concurs with first reading.

FISCAL IMPACT: Adoption of the proposed Ordinance has no direct fiscal impact on the fiscal year 2026-27 General Fund or any other fund. The Ordinance changes how the City procures, not whether it procures. Ongoing operational efficiencies are expected from reduced paperwork burden on routine purchases and faster processing of administrative-tier transactions, but these efficiencies are not quantifiable in advance with sufficient confidence to book as savings.

Two indirect fiscal implications are worth noting. First, aligning the payment bond threshold with Civil Code Section 9550, which currently requires a payment bond on public works contracts in excess of $25,000 rather than the $100,000 threshold in the current Chapter, brings the City into compliance and reduces exposure on small public works contracts by giving unpaid subcontractors and suppliers recourse against the bond, which is the remedy the Civil Code contemplates, rather than leaving the City to manage stop payment notices and withheld funds. Second, the 'funding 2 11
eligibility certification at Section 1.54.140(B) is designed to protect the General Fund from inadvertent commingling of restricted 'funds by placing primary responsibility for funding-source compliance on the requesting department rather than Finance staff verification at the requisition stage. This is an internal control improvement that may reduce the risk of external Single Audit findings in :[uture years.

ANALYSIS: The proposed Ordinance is organized into the same subject areas as the current Chapter, but the substantive content has been comprehensively rewritten. The Change Map (Attachment 3) walks through the principal substantive differences between the current Chapter and the proposed Ordinance, organized by topic. The following sections describe the four functional areas of the rewrite at a level appropriate for Council consideration.

Modernization and Competition
The proposed Ordinance retains the existing $50,000 formal bidding threshold, which Council has held at this level since 2005. Below that threshold, the Ordinance restructures the informal procurement framework. The open-market threshold (where documented price reasonableness, rather than three written quotes, is sufficient) increases from $2,000 to $3,000. The internal approval band for the Director of Administrative Services to sign off on an award (in addition to the department manager requisition) increases from $5,000 to $25,000. The $50,000 formal bidding threshold, above which Council award is required, is unchanged. Raising the internal band does mean that purchases between $5,000 and $25,000 no longer require Director-level sign-off before award, which is a real change in internal routing rather than a change in the level at which Council acts.

The Ordinance also adds an anti-splitting prohibition at Section 1.54.165, which is standard in California municipal procurement codes adopted in the last decade. The prohibition aggregates substantially similar fiscal-year needs for threshold determination purposes, while permitting unbundling where doing so would expand small business, minority business enterprise, women's business enterprise, labor surplus area firm, or qualified South Gate business participation, consistent with 2 CFR Section 200.321(b)(3).

Notice and award procedures shift from newspaper publication as the primary method to the City's e-procurement portal. Newspaper notice is retained where required by law (Public Contract Code Section 22037 publication for formal public works bidding, for example) or where the Purchasing Officer determines newspaper publication is advantageous to the City. This change reflects how vendors actually find solicitations in 2026 and reduces the cost of solicitation advertising.

Public Works and CIP Deliveiy
The Ordinance retains the City's existing election to be subject to the Uniform Public Construction Cost Accounting Act (UPCCAA) at Public Contract Code Section 22000 et seq. Rather than restating the UPCCAA dollar figures, the proposed Ordinance refers to the state thresholds directly, so the Chapter follows future state adjustments without further Council action. The thresholds currently in effect under Public Contract Code Section 22032, as amended effective January 1, 2025, are force account or negotiated contract up to $75,000, informal bidding up to $220,000, and formal bidding above $220,000.
3 12
The Ordinance also adds, for the first time in South Gate's Municipal Code, authority for design- build and progressive design-build delivery on public works projects (Section 1.54.467), authority for the Public Works Director to pre-qualify bidders on larger projects (Section 1.54.430(C)), and a maintenance contract framework for work that is not a public project under Public Contract Code Section 22002 (Section 1.54.486). All three are authorized under California statute. Design-build and progressive design-build are available only for the categories of project the enabling chapters cover, are subject to statutory cost floors, project-count limits, workforce requirements, and reporting duties, and are subject to statutory expiration dates. There are two separate progressive design-build pathways. Public Contract Code Section 22170 et seq. reaches water and wastewater projects and expires January 1, 2029. Public Contract Code Section 22185 et seq., added by Senate Bill 706 in 2023, reaches public works generally, is capped at ten projects in excess of $5,000,000 each, carries a skilled and trained workforce requirement, and expires January 1, 2030. Section

1.54.467 authorizes both pathways and leaves the choice between them to the project-level eligibility determination. Section 1.54.467 therefore authorizes these methods only for projects that are eligible under state law, requires written confirmation of eligibility in consultation with the City Attorney before a solicitation is issued, and leaves the current eligibility criteria and thresholds to the Administrative Purchasing Policies and Procedures so they can be updated as state law changes. Adding the authority to the Municipal Code does not by itself make any particular City project eligible.

Internal Controls and Compliance
The Ordinance addresses the four critical legal compliance items identified earlier: the Civil Code Section 9550 payment bond threshold (now $25,000, matching state law); the Public Contract Code Section 22050(c)(2) emergency review and ratification timing (now explicitly tracked in Section 1.54.370(B)(2)); the Labor Code Section 1771 prevailing wage requirement for public works above $1,000 and the Labor Code Section 1771.1 contractor and subcontractor DIR registration requirements (Section 1.54.495); and the Government Code Section 6500 et seq. citation for intergovernmental contracts (Section 1.54.510(I)).

The Ordinance also addresses federal grant compliance comprehensively at Section 1.54.050(B), which incorporates 2 CFR Sections 200.317 through 200.327 by reference and addresses Davis- Bacon prevailing wage on federally funded construction prime contracts above $2,000 where the federal program legislation or award terms impose it, the socioeconomic affirmative steps encouraged by 2 CFR Section 200.321 for small, minority, women, veteran-owned, and labor surplus area businesses, conflict of interest standards, and full and open competition requirements.

Consistent with the 2024 revisions to the Uniform Guidance, those steps are stated in the Chapter as encouraged rather than required, so that the City is not held to a standard more restrictive than federal law imposes. The funding eligibility certification at Section 1.54.140(B) places responsibility for confirming funding-source eligibility on the requesting department, the project manager, and the department head, with Finance verifying the available appropriation. This division of responsibility better matches actual program knowledge to the certification function and protects Finance's internal controls during Single Audit and grantor monitoring.

Bond and insurance requirements at Section 1.54.490 conform to state law. Payment bonds are mandatory at 100% of the contract amount for public works contracts exceeding the threshold set by Civil Code Section 9550, which is currently $25,000. The Ordinance refers to the statutory threshold rather than restating the figure, so the requirement tracks any future change in state law. 4 13
Performance bonds are mandatory at 100% for public works contracts of $100,000 or greater (a City policy choice unchanged from the current Chapter) and discretionary for contracts below that amount.

Emergency Procurement Framework
The Ordinance establishes a comprehensive emergency procurement framework at Section

1.54.370 for use during a proclaimed local, state, or federal emergency. Under Section

1.54.370(B), the City Council delegates the Public Contract Code Section 22050 emergency contracting authority to the City Manager, which state law permits only by a four-fi:[ths vote.

Section 1.54.370(C) does not itself delegate statutory authority. It sets the internal routing by which the City Manager's delegated authority is exercised within the organization: a Department Director may approve up to $25,000 per procurement, the Director of Administrative Services up to $100,000, and the City Manager up to $500,000, with matters above $500,000 going to the City Council except where the City Manager makes a written determination that the emergency does not permit delay for Council action. The City Manager remains accountable to the Council for all action taken under the delegation. The delegated officer reports the reasons for the action as required by Public Contract Code Section 22050(b)(3), and the City Council conducts the initial and continuing review required by Section 22050(c)(2). Section 1.54.370(B)(5) states that emergency purchases outside the scope of Section 22050, such as sheltering, mass care, and continuity of operations, rest on the City's general purchasing authority rather than on Section 22050, and are reported to Council on the same schedule.

The framework also authorizes operational mechanisms during emergencies (Section

1.54.370(D)): elevated P-card limits, advance payments to vendors, pre-screened cooperative purchasing with abbreviated certification (full certification within 30 days), after-hours and electronic-signature execution, and other necessary operational mechanisms the Director of Administrative Services determines consistent with applicable law and funding-source requirements. These mechanisms reflect lessons learned from the City's response during the COVID-19 emergency and other declared emergencies.

Changes in Delegated Authority
The Ordinance expands administrative authority in six respects. The City Manager may award professional services contracts up to $100,000, where the current Chapter leaves professional services award authority to a separate administrative instruction (Section 1.54.350(D)(1)). Task orders up to $250,000 may be issued administratively against a Council-approved master service agreement, within the aggregate cap the Council approved at award (Section 1.54.355(D)(2)). The Public Works Director may approve change orders up to the lesser of 10 percent of the original contract amount or $250,000 cumulatively, where the current Chapter uses a 20 percent test with a $50,000 or $100,000 ceiling (Section 1.54.610(B)). The Director of Administrative Services may approve modifications to informally awarded supply and service contracts on a comparable basis (Section 1.54.610(C)). The administrative limit for disposing of surplus property rises from $1,000 to $10,000 (Section 1.54.810(C)). The Public Works Director may award informal UPCCAA public works contracts up to the state informal bidding threshold, currently $220,000, which Public Contract Code Section 22034(c) expressly permits a governing body to delegate (Section 1 .54.450(C)).
5 14
Legal Review
The City Attorney's Office reviewed the proposed Ordinance over the past year of drafting, and all legal compliance items identified during that review were incorporated into the version transmitted with this report. The City Attorney's Office concurs with first reading.

CEQA Determination
The proposed Ordinance is not a project under the California Environmental Quality Act (CEQA) because it consists of administrative and procedural changes to the City's purchasing code and does not have the potential to result in either a direct physical change or a reasonably foreseeable indirect physical change in the environment (CEQA Guidelines Section 15378(b)(2) and (b)(5)).

To the extent the Ordinance authorizes specific future public works projects (for example, by adding design-build authority), each such future project will be subject to its own CEQA review at the time it is considered for approval.

Implementation and Effective Date
The Ordinance becomes effective 30 days after second reading and adoption on September 22, 2026, with an effective date of October 22, 2026. Section 6 of the Ordinance sets a separate operative date of December 21, 2026, three months after adoption. Chapter 1.54, as it reads today, continues to govern procurement until the operative date. The purpose of the delay is to give the City time to issue the implementing Administrative Purchasing Policies and Procedures (APPP) and to complete department training before the new rules apply, rather than putting departments under a new Chapter that has not yet been trained. The amended Chapter, therefore, becomes operative during the second quarter of fiscal year 2026-27, leaving roughly seven months under the new Chapter before the close of the fiscal year.

Stafftraining on the new Chapter is planned, covering the new approval authorities and the funding eligibility certification process, as well as department-analyst training on operational procedures and forms. Both training waves are scheduled to conclude before December 21, 2026, the operative date, and the APPP will be issued in advance of the first training wave.

Procedural Considerations
This Ordinance is brought to Council for first reading on September 8, 2026, and second reading and adoption on September 22, 2026. Government Code Section 36934 provides that an ordinance may not be passed within five days of its introduction, and not at other than a regular or adjourned regular meeting. It also provides that an ordinance must be read in full at introduction or passage unless further reading is waived by regular motion adopted by majority vote, or unless the title appears on the published agenda and the full text is available to the public online and in print at the meeting. The fourteen days between the two meetings satisfies the five-day requirement. If the Ordinance is altered after introduction, Section 36934 requires that it be passed at a meeting held at least five days after the alteration; corrections of typographical or clerical errors are not alterations for this purpose. Following adoption, the City Clerk will publish the Ordinance as required by Government Code Section 36933. Because the amended Chapter is lengthy, the City Clerk intends to publish a summary under Section 36933(c)(1) and to post a certified copy of the full text in the Clerk's office not less than five days before the September 22, 2026, adoption 6 15
meeting. The Ordinance becomes effective 30 days after adoption, on October 22, 2026, and becomes operative on December 21, 2026.

ATTACHMENTS: A. Proposed Ordinance amending SGMC Chapter 1.54 B. Exhibit A to the Ordinance, full text of amended SGMC Chapter 1.54 C. Change Map, current Chapter 1.54 compared to proposed Chapter 1.54 D. Redline, current Chapter 1.54 compared to proposed Chapter 1.54 7 16
Attachment A
Agenda Bill 9/8/26
ORDINANCE NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COtJNCIL OF THE CITY OF SOUTH GATE AMENDING CHAPTER 1.54 (PURCHASING SYSTEM AND BIDDING RULES)

OF THE SOUTH GATE MUNICIPAL CODE
WHEREAS, the City of South Gate ("City") is a California general law city organized and operating under the laws of the State of California, with authority to adopt municipal ordinances governing its purchasing and contracting activities pursuant to Government Code Sections 37100 through 37103, Government Code Sections 54201 through 54205 (which require every local agency to adopt policies and procedures, including bidding regulations, governing the purchase of supplies and equipment), the Uniform Public Construction Cost Accounting Act at Public Contract Code Sections 22000 et seq., including the informal bidding ordinance required by Public Contract Code Section 22034, and other applicable statutes; WHEREAS, Chapter 1.54 of the South Gate Municipal Code (Purchasing System and Bidding Rules) governs the City's procurement of supplies, equipment, services, and professional services, and the award of public works contracts and disposition of surplus property; WHEREAS, the current Chapter 1.54 was last comprehensively amended in 2005, and several provisions of the current Chapter no longer track current state and federal law, including without limitation the payment bond threshold required by Civil Code Section 9550, the emergency procurement review and ratification timing under Public Contract Code Section 22050(c), and the proper statutory authority for intergovernmental cooperative purchasing under Governrnent Code Sections 6500 et seq. (Joint Exercise of Powers Act); WHEREAS, dollar thresholds set in 2005 have, in some cases, become operationally awkward, creating unnecessary paperwork burden on routine purchases and unnecessary Council action on low-value transactions, while the existing $50,000 formal bidding threshold remains appropriate and is preserved in the amended Chapter;

17 WHEREAS, the current Chapter 1.54 is silent on procurement methods that have become standard in California municipal practice, including design-build and progressive design-build delivery for public works under Public Contract Code Sections 22160 et seq., 22170 et seq., and 22185 et seq., in each case only for projects eligible under, and subject to the project-type, cost, project-count, workforce, reporting, and sunset limitations of, those chapters, on-call and master service agreement frameworks with task-order structures, cooperative and piggyback purchasing under proper certification, and electronic procurement portal-based notice and award; WHEREAS, the current Chapter 1.54 does not include a comprehensive emergency procurement framework, and the City's experience during the COVID-19 emergency response and other declared emergencies has confirmed the need for clear delegation tiers, ratification procedures, and operational mechanisms during proclaimed local, state, or federal emergencies; WHEREAS, Section 1.54.370(B) of the amended Chapter 1.54 delegates to the City Manager the authority to order emergency action under Public Contract Code Section 22050(a)(1), and Public Contract Code Section 22050(b)(1) requires that such a delegation be made by a four- fifths vote of the governing body; and the City Council intends by its adoption of this Ordinance to make that delegation by a four-fifths vote; and the City Council further finds that emergency procurement of goods and services outside the scope of Public Contract Code Section 22050 is authorized by the City's general purchasing authority and is addressed separately in Section

1.54.370(B)(5) of the amended Chapter;
WHEREAS, the amended Chapter 1.54 also adds new internal-control provisions, including without limitation an anti-splitting prohibition (Section 1.54.165), a department-side funding eligibility certification (Section 1.54.140(B)), a conflict of interest framework supplementing the Political Reform Act and other applicable law (Section 1.54.055), and an annual inflation adjustment mechanism subject to Council resolution (Section 1.54.030(B)); WHEREAS, the City Attorney's Office, including outside counsel retained by the City Attorney, has reviewed the amended Chapter 1.54 and concurs with its adoption; WHEREAS, the City Council has determined that the adoption of this Ordinance is not a project under the California Environmental Quality Act (CEQA) because it consists of administratrve 9

18 and procedural changes to the City's purchasing code and does not have the potential to result in either a direct physical change or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Sections 15378(b)(2) and 15378(b)(5); and WHEREAS, the City Council has duly considered all information presented to it, including the staff report and supporting materials, public testimony, and the recommendations of staff and the City Attorney's Office.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS.

SECTION 1. Chapter 1.54 (Purchasing System and Bidding Rules) of Title 1 (General Provisions) of the South Gate Municipal Code is hereby repealed in its entirety and replaced with a new Chapter 1.54 (Purchasing System and Bidding Rules), the full text of which is attached hereto as Exhibit A and incorporated by reference as though 'fully set forth herein.

SECTION 2. This Ordinance is not a project subject to the California Environmental Quality Act (Pub. Resources Code § 21000 et seq.) ("CEQA"). The City Council finds and determines that this Ordinance consists of administrative and procedural changes to the City's purchasing code and does not have the potential to result in either a direct physical change or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Sections 15378(b)(2) and 15378(b)(5). To the extent the amended Chapter 1.54 authorizes specific future public works projects, each such future project shall be subject to its own CEQA review at the time it is considered for approval.

SECTION 3. The amended Chapter 1.54 shall apply to all procurement actions initiated on or after the operative date established in Section 6 of this Ordinance. Procurement actions initiated before the operative date shall be governed by the Chapter 1.54 provisions in effect at the time the action was initiated, except that contract amendments, change orders, and renewals executed on or after the operative date shall be governed by the amended Chapter 1.54. For purposes of this Section, a procurement action is initiated when the requisition is approved, when the solicitation is issued, or when the City otherwise takes a binding step in the procurement process, whichever occurs first.
10

19 SECTION 4. If any section, subsection, sentence, clause, phrase, or word of this Ordinance, or any part of the amended Chapter 1.54 enacted hereby, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity or enforceability of the remaining portions of this Ordinance or the amended Chapter 1.54. The City Council declares that it would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, and word of the amended Chapter 1.54 irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or words might be declared invalid or unconstitutional.

SECTION 5. Headings and section captions used in the amended Chapter 1.54 are for convenience only and shall not be construed to limit or extend the meaning of any provision.

References in the amended Chapter 1.54 to specific statutes, regulations, or external standards include any successor provisions, amendments, or replacements thereof. Where a provision of the amended Chapter 1.54 conflicts with a specific provision of state or federal law that controls the City's procurement activities, the controlling provision of state or federal law shall apply, and the City Manager or designee shall document the controlling authority in the procurement file.

SECTION 6. This Ordinance shall take effect thirty (30) days after its adoption, in accordance with Government Code Section 36937. The amended Chapter 1.54 set forth in Exhibit A shall become operative three (3) months after adoption, on December 8, 2026, in order to allow the City to issue the implementing Administrative Purchasing Policies and Procedures and to complete department training before the amended Chapter applies. Chapter 1.54 as it read immediately before the effective date of this Ordinance shall continue to govern the City's procurement actions until the operative date.

SECTION 7. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted as required by law, in accordance with Government Code Section 36933, including, at the City Clerk's election under Government Code Section 36933(c)(1), publication of a summary of this Ordinance together with posting of a certified copy of the full text in the office of the City Clerk not less than five (5) days before the meeting at which this Ordinance is to be adopted.

20 PASSED, APPROVED and ADOPTED this 8'h day of September 2026.

INTRODUCED at a regular meeting of the City Council held on August 25, 2026.

ADOPTED at a regular meeting of the City Council held on September 8, 2026, by not less than a four-fifths vote of the City Council, as required by Public Contract Code Section 22050(b)(1) for the delegation made in Section 1.54.370(B) of the amended Chapter 1.54.

CITY OF SOUTH GATE:

By:

Joshua Barron, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY:

Raul F. Salinas, City Attorney
12

21 EXHIBIT A
CHAPTER 1.54

PURCHASING SYSTEM AND BIDDING RULES
The full text of the amended Chapter 1.54 is attached as the continuation of this document, begirtning with Section 1.54. 010 and contiriued through Section 1.54.990.
13

22 Attachment B
Agenda Bill 9/8/26
Chapter 1.54 Purchasing System and Bidding Rules
Sections:

1.54.010
1 .54.020

1.54.030
1 .54.040
1 .54.050
1 .54.055
1 .54.056
I .54.057

1.54.110

1.54.120

1.54.130

1.54.140
154.165

1.54.210
1 .54.220
1 .54.230

1.54.240

1.54.310
Purpose and organization of this chapter.

Definitions.

Changes to dollar limits.

Matters pertaining to housing authority, successor agency, utility authority, public financing authority, or other City bodies.

Conflicts with state and federal law; federal grant procurement compliance.

Standards of Conduct; Conflicts of Interest; Gratuities.

Non-Discrimination.

Insurance, Bonds, and Risk Transfer.

Appointment, authority, and duties of Purchasing Officer.

Requests (requisitions) to the Purchasing Officer by city departments and personnel that the city purchase supplies, equipment, and services.

Centralized purchasing: all city purchases of supplies, equipment, and services must be made by the Purchasing Officer.

Funding of purchases.

Anti-splitting.

Exceptions from centralized purchasing for certain recurring expenses, maintenance expenses, real estate expenses, and minor one-time expenses.

Exemptions from centralized purchasing for purchases of professional services.

Exemptions from centralized purchasing for contracts for public projects, maintenance work, or other construction.

Other exemptions from centralized purchasing.

Formal bidding procedures for city purchases of supplies, equipment, and general services exceeding fifty thousand dollars.

Best-value awards and reverse auctions.1.54.315
1 .54.320 Informal bidding procedures for city purchases of supplies, equipment, and general services exceeding three thousand dollars up to and including fifty thousand dollars.

1.54.330 0pen market purchases without formal or informal bidding for amounts of three thousand dollars or less.

1.54.340 Local business credit.

1.54.345 Local subcontracting on larger contracts.

1.54.350 Procedures for professional services.

1.54.355 0n-call and master service agreements for professional services.

1.54.365 Bid Protests.

1.54.370 Procurement During a Proclaimed Emergency or Disaster.

1.54.410 AdoptionofUniformConstructionCostAccountingAct'saccountingprocedures.

1.54.420 Duties and responsibilities of Public Works Director.

1.54.430 Lists of qualified contractors and construction trade journals.

Page I of 29
23 3.54.440 Formal bidding procedures for contracts in excess of the state informal bidding threshold pertaining to public projects and certain other construction-related activities.

1.54.450 Informal bidding procedures for contracts at or below the state informal bidding threshold pertaining to public projects and certain other construction-related activities.

1.54.460 Performance of contracts at or below the state force-accounUnegotiated threshold pertaining to public projects and certain other construction-related activities.

1.54.467 Design-build and progressive design-build delivery.

1.54.470 Exceptions to bidding requirements for public projects, maintenance work, and similar construction-related activities in case of emergencies.

1.54.475 Rejection of bids.

1.54.480 Tiebids.

1.54.485 Performance of public projects and maintenance work when no bids are received.

1.54.486 Procedures for entering into maintenance contracts where no public bidding is required.

1.54.490 Bid bonds, performance bonds, and payment bonds.

1.54.495 Prevailing wage; DIR registration; labor compliance.

1.54.510 Exemptionsfromformalandinformalbiddingprocedures.

1.54.610 Approval of modifications and change orders.

1.54.710 Purpose of environmentally preferable purchasing policy.

1.54.720 Definitions used in environmentally preferable purchasing policy.

1.54.730 City department responsibility relative to environmentally preferable purchasing.

4.54.740 Waste prevention practices.

1.54.750 Exemptions and administrative updates to environmentally preferable purchasing standards.

1.54.810 Disposition of obsolete and surplus property.

1.54.990 Severability.
"Prior ordinance history: Ords. 1568, 1618, 'I 667, 1708, 1891, 2019, 2063, 2170, 2191 and 2302.

1.54.010 Purpose and organization of this chapter.

This Chapter establishes the rules under which the City of South Gate purchases supplies, equipment, and services; the competitive bidding procedures that apply to those purchases; and a separate bidding system for public projects and maintenance work. It also sets the standards of conduct that apply to every City procurement, authorizes a local business credit, governs contract modifications and change orders, adopts an environmentally preferable purchasing policy, and establishes procedures for disposition of surplus City property.

The Chapter is organized as follows:
§§ 1 .54.010-1 .54.057 General provisions and standards of conduct §§ 1 .54.110-1 .54.165 Centralized purchasing and anti-splitting §§ 1 .54.210-1 .54.240 Exceptions from centralized purchasing

24 §§ 1.54.310-1.54.365 Bidding for supplies, equipment, and services § I .54.370 Emergency and disaster procurement
§§ 1 .54.410-1 .54.495 Public projects and maintenance work (UPCCAA) § 1.54.510 Exemptions from bidding requirements
§ 1.54.610 Modifications and change orders
§§ 1 .54.710-1 .54.750 Environmentally preferable purchasing policy § 1.54.810 Disposition of surplus property
§ 1 .54.990 Severability
Details of the procedures summarized here are developed in the Administrative Purchasing Policies and Procedures issued by the Director of Administrative Services under Section

1.54.110.

Quick reference for departments:

If your need is... Start at...

A purchase of $3,000 or less § 1 .54.330
A purchase over $3,000 and up to $50,000 § 1 .54.320 A purchase over $50,000 § 1.54.310
A professional services contract § 1.54.220 and § 1.54.350 Public works or maintenance work §§ 1 .54.41 0-1 .54.495 Maintenance work, no public project § 1 .54.486
An emergency purchase § 1 .54.370
A modification or change order § 1.54.610
Cooperative or piggyback purchase § 1.54.510
A sole-source purchase § 1.54.510
A bid protest § 1 .54.365

1.54.020 Definitions.

Terms used in this Chapter but not defined herein shall have the meanings assigned by other provisions of the South Gate Municipal Code, the California Public Contract Code, or applicable state and federal law, in that order of precedence unless otherwise stated.

Unless the context otherwise clearly indicates, the following definitions apply:
"Administrative instructions for contracting professional services" means the professional services provisions of the Administrative Purchasing Policies and Procedures issued under Section 1.54.14 0(F), as amended from time to time, establishing the procedures by which the City selects and contracts for professional services. "Best value" means the procurement method that provides the greatest overall benefit to the City considering price, total cost of ownership, quality, reliability, delivery, experience, past performance, and other factors stated in the solicitation. Best value is not a lowest-price-only determination.

25 "Bidders' list" means a list of suppliers and vendors maintained by the Purchasing Division of the Department of Administrative Services, and a list of qualified contractors identified by category of work maintained by the Public Works Director pursuant to Public Contract Code § 22034 and criteria of the California Uniform Construction Cost Accounting Commission. "California Uniform Construction Cost Accounting Commission" means the commission established by Public Contract Code §§ 22010 through 22020. "City council" means the City of South Gate City Council, except as otherwise specified in Section 1.54.040.
"Contract" means a written agreement between the City and a vendor or contractor, including a purchase order issued to a vendor or contractor.
"Cooperative purchasing" means purchasing that consists of combining the needs of multiple customers and/or other governmental agencies into a single solicitation of bids. "Cooperative purchasing agreement" means an agreement by which the City purchases supplies, equipment, or services using the competitively awarded contract of another public agency or of a cooperative purchasing organization whose contracts have been competitively awarded on behalf of participating public agencies. "Customer" means any office, department, bureau, commission, board, or other agency of the City using supplies, equipment, or services.
"Director of Administrative Services" means the director of the City's Department of Administrative Services (also referred to interchangeably as the Finance Department).

References in this Chapter to "Director of Finance" or "Finance Director" shall be read as the Director of Administrative Services.
"E-procurement system" means the City-approved electronic platform used to issue solicitations, receive bids and proposals, distribute addenda, and maintain records of procurement activity. "Electronic sealed bid" means a bid or proposal submitted, time-stamped, encrypted, and stored through a city-approved e-procurement system that provides an auditable record functionally equivalent to a sealed, time-stamped paper submission. "Facility" means any plant, building, structure, ground facility, sewer, storm drain, or other publicly owned infrastructure (including without limitation items identified in Public Contract Code § 22002(c)(3)); real property; streets and highways; or other public works improvement. "Force account" means the accounting procedure for accurate recording of work performed on public projects and maintenance work using internal resources of the City, including labor, equipment, materials, supplies, and subcontracts.
"Local business" means a business entity with fixed offices or distribution points located within the boundaries of the City and listed in the business license tax files with a City of South Gate business address. For retail businesses that designate a point of sale for sales tax purposes, the business shall designate the City of South Gate as the point of sale for sales tax purposes. "Maintenance work" means (1 ) routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and (5) work performed to keep, operate, and

26 maintain publicly owned water, power, or waste disposal systems, including dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher. "Negotiated contract" means a letter of agreement, vendor agreement, contract, professional services agreement, maintenance services agreement, public project agreement, or other written documentation setting forth the terms and conditions of the purchase and services. "Other services" or "general services" means non-professional services that are not performed in conjunction with the purchase of an item (such as installation, repair, or activation labor) and that are not professional services as defined in this Chapter. General services include, without limitation, janitorial services, security services, equipment rental, courier services, and similar non-professional services.
"Piggyback contract" means a contract entered into by means of placing a purchase order against an existing contract of another public agency. "Professional services" means any service generally characterized as a "profession" rather than a "business," "industry," "occupation," or "trade" under California law, including accounting, architecture, auditing, business appraisal or valuation, construction project management, construction management and inspection, engineering, environmental, financial planning, insurance, land surveying, landscape architecture, landscape engineering, legal, medical, municipal planning, public housing, real estate appraisal, and real estate brokerage or sales.

Consulting services with respect to any of the foregoing are also professional services for purposes of this Chapter.
"Public project" has the meaning given in Public Contract Code § 22002(c), and generally means (a) construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (b) painting or repainting of any publicly owned, leased, or operated facility; and (c) in the case of a publicly owned utility system, only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher. Work that does not meet that definition is maintenance work or is otherwise procured under this Chapter. "Publicly owned infrastructure" means (including without limitation) items defined in Public Contract Code § 22002(c)(3); real property; streets and highways; sewer; water; street lights; or other public work improvement.
"Public Works Director" means the director of the City's Department of Public Works. "Purchasing Officer" means the Director of Administrative Services or his or her designee. All references in this Chapter to "Purchasing Supervisor" shall be read as references to the Purchasing Officer. Where this Chapter requires the approval of the Director of Administrative Services in addition to action by the Purchasing Officer, that approval shall be given by the Director personally or by a designee other than the person who authorized the purchase. "Purchase order" includes: (a) a standard written purchase order; (b) a "blanket purchase order," meaning a written authorization with a vendor for releases on an as-needed basis under a fiscal-year cap; and (c) a "field purchase order" for low-dollar purchases completed within a short timeframe. Dollar thresholds, fiscal-year caps, and procedural requirements for each type are specified in the Administrative Purchasing Policies and Procedures issued under Section

1.54.110.
"Reverse auction" means a competitive online procurement event in which pre-qualified bidders submit successively lower bids for specified commodities over a defined period, with award

27 made to the lowest responsive and responsible bidder or on a best-value basis as stated in the solicitation.
"Risk Manager" means the employee designated by the City Manager to administer the City's risk management and insurance program, or that person's designee. "Sole source" means a procurement from the only known source capable of providing the required supplies, equipment, or services, documented by a written justification approved in accordance with Section 1.54.510.
"Uniform Public Construction Cost Accounting Act" or "UPCCAA" means the Act set forth at Public Contract Code §§ 22000 through 22045.

1.54.030 Changes to dollar limits.

A. State-Law Threshold Updates. State-law dollar thresholds expressly incorporated by reference in this Chapter (including those in the uniform Public Construction Cost Accounting Act and elsewhere) shall be applied as amended from time to time, without further Council action.

B. Annual Inflation Adjustment. As part of the annual budget process, the Director of Administrative Services shall calculate an inflation adjustment equal to the percentage change in the GDP Implicit Price Deflator for State and Local Government Consumption Expenditures (BEA NIPA Table 1.1.9) for the four quarters ending December 31 of the prior calendar year, not less than zero percent (0%) and not more than three percent (3%), and shall present it to the City Council. If the City Council adopts the adjustment by resolution, it applies to every dollar amount stated in this Chapter, rounded to the nearest one thousand dollars ($1,000), except (1 ) the fifty thousand dollar ($50,000) formal bidding threshold in Sections 1.54.310, 1.54.320, and

1.54.486, which may be changed only by ordinance, and (2) amounts set by state or federal law, which are governed by subsection (A). Amounts remain unchanged in any year the City Council does not adopt a resolution. The Director of Administrative Services shall publish the amounts then in effect in the Administrative Purchasing Policies and Procedures.

1.54.040 Matters pertaining to housing authority, successor agency, utility authority, public financing authority, or other City bodies.

References to "City Council" include the governing board of the applicable City body when that body is acting on matters within this Chapter, including the Successor Agency to the former Community Development Commission/Redevelopment Agency, the South Gate Housing Authority, the South Gate Public Financing Authority, the South Gate Utility Authority, and any other commission, agency, or board established by the City Council.

1.54.050 Conflicts with state and federal law; federal grant procurement compliance.

A. To the extent any provision of this chapter conflicts with State or Federal law, the State or Federal law shall control. Conflicting provisions shall be interpreted, if reasonably possible, to avoid conflict. Severability applies to all provisions.

B. Federal grant procurement compliance. When expending funds from federal awards, the City shall comply with the procurement standards of 2 CFR §§ 200.317 through 200.327 (Uniform Administrative Requirements), awarding-agency-specific regulations, and any grant-specific terms. Without limiting the foregoing, the City shall observe:

28 1. The federal methods of procurement (micro-purchase, small purchase, sealed bid, competitive proposals, and noncompetitive) and the applicable federal thresholds, which supersede the thresholds in this Chapter when they are more restrictive;

2. Full and open competition, including any federal or funding-source restriction on local or geographic preferences and the requirements of 2 CFR § 200.319 (which identifies practices that may restrict competition), which may require the Purchasing Officer to suspend the local business credit under Section 1.54.340 for federally funded procurements;

3. Required contract clauses identified in 2 CFR 200 Appendix II (including, where applicable, Equal Employment Opportunity, Davis-Bacon, Copeland Anti-Kickback, Contract Work Hours and Safety Standards, Byrd Anti-Lobbying, debarment and suspension certifications, and domestic preference certifications under Build America, Buy America where applicable);

4. Documentation of the procurement history and cost or price analysis sufficient to support federal audit; and

5. Any awarding-agency requirements that are more restrictive than this Chapter, which shall control.

6. When the procurement method or threshold required by this Chapter is more restrictive than the federal method or threshold, this Chapter controls. When the federal method or threshold is more restrictive, the federal requirement controls. The Administrative Purchasing Policies and Procedures shall include a method-mapping reference identifying the corresponding federal procurement method for each procurement method authorized by this Chapter.

When required by applicable federal program legislation, the terms of the federal award, or awarding-agency requirements, prime contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works shall comply with the Davis-Bacon Act (40 u.s.c. §§ 3141 through 3144, 3146, and 3147) and implementing regulations, and shall include the contract clause required by 2 CFR 200 Appendix 11(D), irrespective of any higher threshold otherwise applicable under this Chapter. Davis-Bacon does not apply to every federally funded construction contract; applicability shall be confirmed against the award terms and documented in the procurement file.

7. Affirmative steps for small, minority, women, veteran-owned, and labor surplus area businesses. For federally funded procurements above the federal micro-purchase threshold, the City should take the socioeconomic affirmative steps encouraged by 2 CFR § 200.321 to consider small businesses, minority business enterprises, women's business enterprises veteran-owned businesses, and labor surplus area firms when possible. Nothing in this paragraph imposes a requirement more restrictive than the applicable federal standard.

8. Conflicts of interest. For federally funded procurements, the City shall maintain and apply written standards of conduct addressing conflicts of interest in the selection, award, and administration of contracts, consistent with 2 CFR § 200.31 8(c) and Section 1.54.055 of this Chapter.

1.54.055 Standards of Conduct; Conflicts of Interest; Gratuities.

This Section supplements, and does not replace, the conflict-of-interest and ethics requirements imposed by Government Code § 1090, the Political Reform Act (Government Code §§ 81000 et seq.), the regulations of the Fair Political Practices Commission, the common law conflict-of-

29 interest doctrine, the City's conflict-of-interest code adopted under the Political Reform Act, and applicable federal requirements including 2 CFR § 200.318(c).

A. City elected officials, appointed officials, board and commission members, officers, employees, and agents involved in the selection, award, or administration of contracts (including federally funded contracts subject to 2 CFR § 200.31 8(c)) shall avoid any real or apparent conflicts of interest. No person covered by this subsection shall participate in the selection, award, or administration of a contract supported by City or federal funds if a real or apparent conflict of interest would be involved. Such a conflict arises when an employee, officer, official, or board or commission member, or any member of their immediate family, has a financial or other interest in, or receives a tangible personal benefit from, a firm considered for a contract.

For purposes of this Section, "immediate family" means spouse or registered domestic partner, parent, child, sibling, parent-in-law, child-in-law, or sibling-in-law, whether biological, adoptive, or by marriage.

B. City elected officials, appointed officials, board and commission members, officers, employees, and agents shall not solicit or accept gratuities, favors, or anything of monetary value from present or prospective contractors or subcontractors that could reasonably be perceived to influence a procurement decision.

C. Violations of this Section are subject to disciplinary action and may result in remedies up to and including contract termination, disqualification, or debarment consistent with applicable law.

D. Organizational Conflicts of Interest (OCI). A person or firm that prepares specifications, statements of work, or solicitation documents for a particular procurement shall not compete for that procurement, unless the City determines in writing that adequate safeguards have been implemented to neutralize or mitigate the conflict consistent with applicable law and funding- source requirements. The Administrative Purchasing Policies and Procedures shall include the standard organizational conflict-of-interest guidelines required of local agencies using design- build or progressive design-build delivery under Public Contract Code §§ 22160 et seq., 22170 et seq., and 22185 et seq.

E. Debarment and Suspension. The City may debar or suspend a vendor, contractor, or consultant for cause, including, but not limited to, fraud, collusion, a criminal offense in connection with obtaining or performing a public contract, significant or repeated performance failures, or serious ethical violations. The procedures, notice, and appeal rights for debarment or suspension shall be established by administrative policy consistent with applicable law.

1.54.056 Non-Discrimination.

All City contracts shall include non-discrimination requirements consistent with Federal and State law and City policy, prohibiting unlawful discrimination in employment and in performance under the contract. The Purchasing Officer shall include standard contract language to implement this section.
"1.54.057 Insurance, Bonds, and Risk Transfer.

A. Administrative policy. Minimum insurance, bonding, indemnity, and other risk transfer requirements shall be established by administrative policy issued by the City Manager or designee. The policy may establish tiered requirements based on the type of work, activity, or exposure presented, and may be updated administratively to reflect current standards, including guidance from the City's joint powers insurance authority and its risk program advisors.

30 B. Application. The policy applies to any contract, purchase order, professional services agreement, master service agreement, task order, construction contract, lease, license, permit, facility use agreement, special event authorization, or other agreement under which a person or entity provides goods or services to the City, performs work on the City's behalf, or uses or occupies City property. The policy may provide risk-based exemptions for low-risk or de minimis transactions.

C. Higher requirements. A department may require limits or coverages higher than the policy minimums based on the risk presented.

D. Condition precedent. No agreement subject to the policy shall be executed, no notice to proceed issued, and no work commenced or goods or services delivered, until the required insurance, endorsements, bonds, and other security have been submitted and verified as provided by the policy.

E. Waiver. A reduction, modification, or waiver of a requirement established by the policy is effective only if approved in writing by the City Manager, the Director of Administrative Services, or the City's Risk Manager, and retained in the file. A Department Director may not waive an insurance requirement.

F. Indemnity. Indemnity and defense provisions shall be drafted consistent with applicable law, including Civil Code §§ 2782 and 2782.8, and with the standard forms issued under the policy.

G. Bonds and other security. Bond requirements for public works contracts are governed by Section 1.54.490 and applicable state law. For all other agreements, the Purchasing Officer or the Risk Manager may require bonds, letters of credit, or other security based on the risk presented, as provided by the policy.

H. Administration. The City may use a third-party administrator to receive, review, and monitor certificates of insurance and related documentation. Use of an administrator does not transfer the City's approval or waiver authority.

1. Continuing compliance. Required coverage shall be maintained for the full term of the agreement and for any applicable completed operations or extended reporting period. A lapse is a material breach, and the City may withhold payment, suspend work, or terminate.

1.54.110 Appointment, authority, and duties of Purchasing Officer.

A. Appointment. The Director of Administrative Services (Finance Director) is the City's Purchasing Officer and may delegate this authority.

B. Authority and duties. The Purchasing Officer shall: (1 ) purchase and contract for all supplies, equipment, and services required by any customer, in accordance with this chapter, approved administrative instructions, and other rules set by the Director of Administrative Services or City Manager; (2) negotiate and execute purchase orders and contracts, subject to required approvals; (3) utilize electronic solicitation and receipt of bids and proposals through the city- approved e-procurement system; (4) seek best value without sacrificing necessary quality; (5) discourage collusive practices and encourage competition; (6) maintain required records and forms; (7) perform inspections and testing as needed; (8) recommend transfers and disposition of surplus; (9) maintain bidders'lists (except as provided in Section 1.54.430); and (10) perform other assigned duties. Approval routing by dollar level is governed by Sections 1.54.310 through

1.54.330, 1.54.350, 1.54.355, 1.54.370, 1.54.440through 1.54.495, 1.54.610, and 1.54.810.

31 C. Public Notice; Electronic Methods. The City's website or designated e-procurement portal shall be the default method for issuing notices inviting bids, requests for proposals or qualifications, and for receiving electronic sealed bids or proposals, except where print publication or additional methods are required by law or determined by the Purchasing Officer to be advantageous to the City.

D. Electronic Signatures. The Purchasing Officer may execute contracts, purchase orders, and related procurement documents using electronic signatures with the same legal effect as handwritten signatures, consistent with the California uniform Electronic Transactions Act (Civil Code § 1633.1 et seq.) and applicable federal law.

E. Acting authority. In the Purchasing Officer's absence, these duties may be exercised by the City Manager or a duly appointed designee.

F. Administrative Purchasing Policies and Procedures. The Director of Administrative Services may issue and update Administrative Purchasing Policies and Procedures implementing this Chapter, including solicitation templates, electronic procurement, emergency purchasing practices, documentation standards, bid protests, debarment and suspension procedures, cooperative purchasing certifications, and procedures for verifying insurance and bonds. Where those procedures and the policy issued under Section 1.54.057 differ as to required coverages, limits, endorsements, or indemnity terms, the Section 1.54.057 policy controls.

1.54.120 Requests (requisitions) to the Purchasing Officer by city departments and personnel that the city purchase supplies, equipment, and services.

Requisitions shall follow the procedures established in the Administrative Purchasing Policies and Procedures issued under Section 1.54. 110, which may be electronic. The Purchasing Division may revise operational procedures for requisitions within the limits of this Chapter, with concurrence of the requesting customer.

1.54.130 Centralized purchasing: all city purchases of supplies, equipment, and services must be made by the Purchasing Officer.

The City maintains a centralized purchasing program within the Administrative Services Department for the procurement of supplies, equipment, and services, except as otherwise provided in this Chapter or by law.

All purchases shall be made through a written contract executed by the Purchasing Officer, unless explicitly exempted under Sections 1.54.210-1.54.240. Written contract forms include purchase orders (including electronic forms), field purchase orders, and blanket purchase orders.

1.54.140 Funding of purchases.

A. Budget appropriation required. No purchase order or contract shall be issued under this Chapter unless there is a sufficient unencumbered appropriation in the budget fund account against which the purchase is to be charged. The Purchasing Officer shall not authorize or issue a contract that exceeds available appropriations.

B. Department certification of funding eligibility. Where a purchase is to be charged in whole or in part to a restricted funding source - including federal awards, state awards, grant funds, capital improvement project funds, bond proceeds, enterprise fund revenues, or any other revenue or appropriation subject to use restrictions - the requesting department shall, before the

32 requisition is approved, certify in writing that the purchase complies with the eligibility, allowable cost, scope, and use restrictions of the applicable funding source. Verification of available budget appropriation by the Purchasing Officer, the Department of Administrative Services, or Finance staff is limited to the existence of sufficient unencumbered appropriation under subsection (A) and does not constitute a determination of program eligibility, cost allowability under applicable federal cost principles (including 2 CFR Part 200 Subpart E), grant-specific allowable use, or compliance with bond covenants or other funding-source restrictions.

Responsibility for those determinations rests with the requesting department, the project manager, and the department head approving the requisition. The Administrative Purchasing Policies and Procedures shall implement this subsection, including the certification form, list of funding sources that trigger the requirement, escalation procedure for concerns identified by Finance staff, and record retention consistent with applicable federal, state, and grant-specific retention requirements.

1.54.165 Anti-splitting.

Purchases and contracts shall not be split, separated, or otherwise structured to evade the competitive thresholds, approval requirements, or any other provision of this Chapter.

Aggregated needs for substantially similar goods or services within a fiscal year shall be considered in determining the applicable method of procurement.

Notwithstanding the foregoing, the Purchasing Officer (or the Public Works Director for public works) may divide a procurement into separate lots or scopes when doing so is economically feasible and would expand competition or participation by small businesses, minority business enterprises, women's business enterprises, labor surplus area firms, or qualified South Gate businesses, consistent with 2 CFR § 200.321 (b)(3). Documentation of the rationale shall be included in the procurement file.

1.54.210 Exceptions from centralized purchasing for certain recurring expenses, maintenance expenses, real estate expenses, and minor one-time expenses.

The following recurring and one-time payments are exempt from centralized purchasing under this Chapter:

A. Utility payments (water, electricity, gas, telecommunications, internet, refuse).

B. Lease and rental payment insta((ments under existing lease or rental agreements.

C. Subscription fees (publications, software-as-a-service, online services, professional databases).

D. Insurance premium payments.

E. Maintenance contract installment payments under existing maintenance agreements.

F. Real property acquisitions and dispositions handled under separate authority.

G. Memberships in professional associations and intergovernmental organizations.

H. Training and conference registration fees.

I. Travel reimbursements consistent with City travel policy.

J. Intergovernmental service payments and inter-agency reimbursements.

33 K. Procurement-card commodity purchases approved under standards set by the Director of Administrative Services.

L. Court-ordered payments, judgments, settlements, and statutory fees.

M. Minor one-time expenses at or below the open-market threshold under Section 1.54.330.

The exemption applies to payments under an existing contract that was competitively procured or otherwise authorized. A new contract, a renewal that creates a new term beyond the original contract, or a material increase in price or scope shall be procured under the applicable provisions of this Chapter.

1.54.220 Exemptions from centralized purchasing for purchases of professional SerVICeS.

A. Professional services are procured through decentralized procedures by the customer, subject to the Administrative Purchasing Policies and Procedures issued under Section

1.54.11 0(F) and this chapter.

B. Qualifications-based selection applies where required by state law.

C. Except where an authorized exemption applies, professional services with an expected total cost exceeding fifty thousand dollars shall be competitively solicited (e.g., RFQ/RFP) using criteria appropriate to the service type; selection shall be based on qualifications, experience, and best value, including price where appropriate.

D. When federal or other restricted funds are used, the competitive method prescribed by the funding rules shall govern.

1.54.230 Exemptions from centralized purchasing for contracts for public projects, maintenance work, or other construction.

Public works, maintenance, and construction contracts continue to be procured by the Public Works Director under Sections 1.54.410-1.54.495. Subsequent purchase orders are issued by the Purchasing Officer unless otherwise exempt.

1.54.240 0ther exemptions from centralized purchasing.

With Director of Administrative Services approval, the Purchasing Officer may authorize a customer to purchase specified items independently, subject to this chapter and periodic reporting.

1.54.310 Formal bidding procedures for city purchases of supplies, equipment, and general services exceeding fifty thousand dollars.

All purchases of supplies, equipment, and general services with a purchase price or estimated value exceeding $50,000 (other than professional services governed by Section 1.54.350, or those governed by Sections 1.54.410 through 1.54.495 or otherwise exempt from bidding under this Chapter) shall be made using the formal bidding procedures below. Awards shall be made to the lowest responsive and responsible bidder unless best-value award is authorized under Section 1.54.315.

34 A. Notice inviting bids. The Purchasing Officer (or authorized customer) shall prepare a notice inviting sealed bids (including electronic sealed bids), describing the purchase, where documents are obtained, and the time and place (physical or electronic) for opening.

B. Publication and posting. The notice shall be posted at least once, not less than fourteen (14) calendar days before bid opening, on the city's website or e-procurement portal, which is the primary method of notice under Section 1.54.110(C). The Purchasing Officer may additionally publish the notice in a newspaper of general circulation within the City where required by law or where the Purchasing Officer determines that publication is advantageous to the City.

Direct notice shall also be provided to vendors on the bidders' list and others who request it.

C. Submission of sealed bids. Bids shall be submitted to the City Clerk (or as specified) either (1 ) in sealed envelopes clearly identified, or (2) electronically through the city's e-procurement system. Late or misdelivered bids shall be returned or rejected unopened; electronic submissions shall follow system time-stamp controls.

D. Public opening and tabulation. Bids shall be opened publicly at the noticed time and place. A tabulation shall be made available for public inspection for not less than thirty calendar days.

E. Award. The City Council shall award to the lowest responsive and responsible bidder or as otherwise authorized by this chapter. Bid security, performance, and payment bonds may be required as specified.

F. Tie bids; rejection; other procedures. As provided elsewhere in this chapter.

1.54.315 Best-value awards and reverse auctions.

A. Best-value awards. For purchases of supplies, equipment, or general services under Sections 1.54.310 or 1.54.320, the Purchasing Officer may recommend award on a best-value basis rather than to the lowest responsive and responsible bidder, provided that:

1. The solicitation clearly states that award will be made on a best-value basis and identifies the evaluation criteria and their relative weights;

2. The evaluation criteria may include unit cost, total cost of ownership, operating efficiency, quality and warranty, compatibility with existing City systems, maintenance costs, past performance, contractor experience and responsibility, delivery schedule, and other factors reasonably related to the City's interests;

3. Price or cost shall be a weighted evaluation factor; and

4. The Purchasing Officer prepares and retains a written evaluation summary documenting the basis for the award recommendation.

B. Reverse auctions. The Purchasing Officer may conduct a reverse auction for commodities or other items suitable for such a method, provided that:

1. All participants are pre-qualified under a publicly issued solicitation;

2. The auction is conducted through the City's e-procurement system or an approved third- party platform with a documented audit trail; and

3. Award is made to the lowest responsive and responsible bidder at close of the auction, or on a best-value basis consistent with subsection (A) if so stated in the solicitation.

35 C. Reverse auctions shall not be used for public projects, professional services, or any procurement where prohibited by the terms of the funding source.

D. This Section does not apply to Public Works procurements governed by Sections 1.54.410 through 1.54.495.

E. Best-value award methods shall not be used where State law, Federal law, or the terms of the funding source require award to the lowest responsive and responsible bidder. For federally funded sealed bidding under 2 CFR § 200.320, award shall be to the lowest responsive and responsible bidder unless competitive proposals are used.

1.54.320 Informal bidding procedures for city purchases of supplies, equipment, and general services exceeding three thousand dollars up to and including fiffy thousand dollars.

Purchases under this Section are subject to Section 1.54.165 (Anti-splitting).

Purchases of supplies, equipment, and general services with a purchase price or estimated value greater than $3,000 and up to and including $50,000 (other than professional services governed by Section 1.54.350, or those governed by Sections 1.54.410 through 1.54.495) may be made using the informal bidding procedures of this Section in lieu of the formal bidding procedures of Section 1.54.310.

A. Approvals. A department manager's approved requisition authorizes use of the informal procedures for any purchase over $3,000 up to and including $25,000. For purchases greater than $25,000 and up to $50,000, the written approval of the Director of Administrative Services is also required prior to award.

B. Quotations. The Purchasing Officer shall obtain at least three written quotations (email quotes acceptable) from vendors in the open market. Where reasonable, at least one quote should be solicited from a local business. Records shall be kept for not less than three (3) years after final payment, grant closeout, or project closeout, or longer as required by the City's records retention schedule or a funding source.

C. Award. Subject to Section 1.54.315, award shall be to the vendor offering best value to the city considering price, quality, durability, delivery, service, standardization, and other relevant factors. Where state law, federal law, or the terms of the funding source requires award to the lowest responsive and responsible bidder, award shall be made on that basis.

1.54.330 0pen market purchases without formal or informal bidding for amounts of three thousand dollars or less.

Purchases of $3,000 or less are exempt from formal and informal bidding. The Purchasing Officer or requesting department shall seek reasonable pricing commensurate with the purchase. At a minimum, the Purchasing Officer or requesting department shall make a documented price check or obtain informal quotes where practicable, and shall retain documentation in the procurement file consistent with administrative policy and the City's records retention schedule.

1.54.340 Local business credit.

A. Rule. In determining the lowest responsive and responsible bidder under Section 1.54.310 or the most advantageous vendor under Section 1.54.320, a bid evaluation credit of five percent (5%) of the bid price or quotation shall be applied to a local business that meets the eligibility

36 requirements of this Section, provided that the solicitation expressly states the credit is available. The credit shall be applied for purposes of evaluation only and shall not reduce the contract price payable to the awarded local business. The City Council may, by resolution, set a lower fixed percentage applicable to all subsequent solicitations.

B. Cap. The local business credit shall not apply to purchases or projects with a total estimated value exceeding $250,000. The credit, when applied, shall not exceed five percent (5%) of the bid price or quotation.

C. Exclusions. The local business credit shall not apply:

1. To public works as defined by state law;

2. To procurements funded in whole or in part by any source where the funding source restricts geographic preferences, including federal awards governed by 2 CFR § 200.319, or where application of the credit would be inconsistent with the socioeconomic affirmative steps described in 2 CFR § 200.32'l ; or

3. To any other category identified by administrative policy issued under Section 1.54.110.

D. Certification. A bidder seeking the credit shall complete the City-provided Local Business Certification form. The Purchasing Officer may verify certifications against the City's business license records.

E. Small & Local Business Program. The City Council may by resolution adopt a race- and gender-neutral Small & Local Business Program establishing detailed bid preferences, evaluation points, participation goals, or reporting requirements consistent with applicable law.

Such program shall be implemented by administrative policy.

1.54.345 Local subcontracting on larger contracts
On contracts with an estimated total value of $500,000 or more, the City strongly encourages prime contractors and proposers to make good-faith efforts to subcontract with qualified South Gate businesses where feasible and consistent with the scope of work. Solicitations subject to this Section shall invite proposers to submit a Local Business Participation Plan describing anticipated local subcontracting, outreach to local subcontractors, and unbundling of scopes where appropriate. The Local Business Participation Plan is encouraged but not required, and failure to submit one shall not, by itself, render a bid or proposal nonresponsive. This Section shall not be applied in a manner inconsistent with federal grant requirements or 2 CFR §§ 200.319 and 200.321 and applicable grant terms.

1.54.350 Procedures for professional services.

Selection of architectural and engineering services shall be on demonstrated competence and qualifications; other consultants may be selected on a best-value basis.

Architectural, engineering, environmental, and construction-related professional services for public projects shall not be retained through cooperative procurement contracts. For other professional services, cooperative purchasing or piggybacking under Section 1.54.510(C) is permitted, subject to the certifications required by that Section. The City may establish on-call or master service agreements for recurring professional services needs in accordance with Section 1 .54.355.

A. The procedures of Sections 1.54.310 through 1.54.330 do not apply to professional services.

The Director of Administrative Services shall maintain, within the Administrative Purchasing

37 Policies and Procedures issued under Section 1.54.11 0(F), the procedures governing professional services contracts, including thresholds, solicitation methods, evaluation criteria, approval routing, standard contract forms, and negotiation authority. The standard contract forms and the Contract Negotiation Authority Matrix are issued under this subsection.

B. Qualifications-based selection shall be used as required by state law. For professional services not subject to qualifications-based selection, competitive proposals should be used where practicable, especially above the threshold in Section 1.54.220(C) ($50,000). Sole-source awards require written justification consistent with Section 1.54.510(B).

C. For funded projects subject to outside procurement rules, those rules govern in addition to this chapter.

D. Award authority for professional services contracts.

1. Professional services contracts with a total expected value of $100,000 or less may be awarded by the City Manager (or designee) following the qualifications-based or best-value selection process in the Administrative Purchasing Policies and Procedures.

2. Professional services contracts with a total expected value greater than $100,000 shall be awarded by the City Council upon recommendation of the City Manager.

3. Notwithstanding subsection (D)(I ), any professional services contract or task order for design or construction management of a public project funded in whole or in part from sources requiring Council action shall be awarded or authorized by the City Council regardless of dollar amount, including a task order issued under Section 1.54.355.

E. Execution. Professional services contracts, task orders, and amendments authorized under this Section shall be executed by the City Manager or designee.

Purchases under this Section are subject to Section 1.54. 165 (Anti-splitting).

1.54.355 0n-call and master service agreements for professional services.

A. Authority. The City may enter into on-call or master service agreements with one or more professional services providers for recurring or anticipated needs that cannot be precisely scoped at the time of award. Each such agreement shall be procured through the qualifications- based or competitive process required for professional services under Section 1.54.220 and Section 1.54.350, using a publicly issued solicitation that identifies the scope categories, the agreement term, and the aggregate cap. Master service agreements with an aggregate cap exceeding $100,000 shall be awarded by the City Council under Section 1.54.350(D)(2); master service agreements with an aggregate cap of $IO0,000 or less may be awarded by the City Manager (or designee) under Section 1.54.350(D)(1).

B. Term. The initial term of an on-call or master service agreement shall not exceed three (3) years, with up to two (2) one-year extensions exercisable by the City Manager based on performance.

C. Aggregate cap. The solicitation shall state an aggregate cap representing the maximum cumulative value of task orders that may be issued under the agreement. The aggregate cap shall be set forth in the solicitation and approved at award in accordance with subsection (A) and may not be increased without further approval consistent with subsection (A).

D. Task orders. Individual task orders issued against the agreement are issued on the task order form prescribed by the Administrative Purchasing Policies and Procedures, incorporate

38 the terms of the master agreement, shall be authorized in writing, shall identify the scope, schedule, and not-to-exceed price, shall be tracked cumulatively against the approved aggregate cap, and shall be approved as follows:

1. Task orders may be authorized by the City Manager (or designee) up to the remaining approved aggregate cap, subject to paragraphs (2) and (3).

2. No individual task order with a not-to-exceed price greater than $250,000 may be issued without City Council approval.

3. No task order may be issued that would cause the cumulative value of all task orders to exceed the approved aggregate cap. Increases to the aggregate cap require approval under subsection (A): if the increased aggregate cap exceeds $1 oo,ooo, City Council approval is required; if the increased aggregate cap remains at or below $1 oo,ooo, the City Manager (or designee) may approve the increase.

E. Multiple providers. Where more than one provider is awarded, the City shall use a documented method (rotation, qualifications-based mini-competition, or other reasonable method) to allocate task orders among providers.

1.54.365 Bid Protests.

A bidder or proposer may submit a written protest of an award or intended award in the manner and within the timeframes set forth in the Administrative Purchasing Policies and Procedures issued by the Director of Administrative Services under Section 1.54.11 0(F). At a minimum, the protest shall identify the solicitation or award at issue, state the specific grounds for protest, and include all supporting facts and documentation. Protests shall be directed to the Purchasing Officer (or designee) for an initial determination. A protestor may appeal an adverse determination to the City Manager, whose decision shall constitute the City's final administrative action. Nothing in this section creates a private right of action or limits the City's discretion where permitted by law.

1.54.370 Procurement During a Proclaimed Emergency or Disaster.

A. Purpose. To provide expedited, compliant procurement during a proclaimed local, state, or federal emergency, or when a public exigency or emergency will not permit delay from competitive procedures. For purposes of this Section, "proclaimed emergency or disaster" means a local emergency proclaimed pursuant to California Government Code § 8630 and Chapter 7.14 of this Code, a state of emergency proclaimed by the Governor pursuant to Government Code § 8625, or a federal disaster or emergency declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The operational mechanisms in subsection (D) are available only during a proclaimed emergency or disaster, and that authority is coextensive with the duration of the proclamation or declaration and terminates upon its expiration or rescission. The remaining subsections of this Section apply both during a proclaimed emergency or disaster and where a public exigency or emergency will not permit the delay resulting from competitive solicitation. Before a proclamation is issued, the City Manager may exercise the authority delegated in subsection (B) subject to the written findings required by subsection (B)(1 ) and the reporting required by subsection (B)(2), and a Department Director or the Director of Administrative Services may authorize a procurement within the limits of subsection (C) only with the prior concurrence of the City Manager.

39 B. Statutory Authority and Council Delegation. This Section is enacted pursuant to Public Contract Code § 22050. By adoption of this Chapter by a four-fifths vote, as required by Public Contract Code § 22050(b)(1 ), the City Council delegates to the City Manager the authority to order any action specified in Public Contract Code § 22050(a)(1), including the repair or replacement of public facilities, the procurement of equipment, services, and supplies necessary to respond to an emergency, and any directly related and immediate action required by that emergency, without giving notice for bids to let contracts.

1. Findings Required. Before exercising authority under this subsection, the City Manager (or designee) shall make a written finding, supported by substantial evidence, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.

2. Initial Council Review. The City Manager shall report the emergency action to the City Council not later than seven (7) days afier the action, or at the next regularly scheduled City Council meeting if that meeting will occur not later than fourteen (14) days affer the action, as required by Public Contract Code § 22050(c)(2). The report shall state the reasons justifying why the emergency would not permit a delay from competitive solicitation and why the action was necessary.

3. Continuing Council Review. After the initial review under paragraph (2), the City Council shall review the emergency action at each subsequent regularly scheduled meeting until the action is terminated, and shall determine by a four-fifths vote whether there is a need to continue the action. If the City Council meets weekly, it may, after the initial review, review the emergency action every fourteen (14) days as authorized by Pub!ic Contract Code § 22050(c)(2).

4. Termination. The City Manager may terminate emergency action under this subsection at any time. Consistent with Public Contract Code § 22050(c)(2), no further Council review under paragraph (3) is required with respect to an action terminated before the City Council has reviewed that action and made a determination on the need to continue it.

5. Scope of the statutory delegation; other emergency purchasing. The delegation made by this subsection is the authority described in Public Contract Code § 22050(a)(1), which reaches the repair or replacement of a public facility, action directly related to and immediately required by the emergency, and the equipment, services, and supplies necessary for those purposes. Procurement of other goods and services needed to respond to an emergency, including sheltering, mass care, food and water, transportation, communications, and continuity of City operations, is not made under Public Contract Code § 22050. That procurement is authorized by the City's general purchasing authority under Government Code §§ 37100 through 37103 and 54201 through 54205 and by the City's emergency organization provisions, is exempt from formal and informal bidding under Section 1.54.51 0(D), and is subject to the routing in subsection (C) and the competition, documentation, and reporting requirements of subsections (E) and (F). The findings requirement in paragraph (1) and the four-fiffhs review requirements in paragraphs (2) and (3) apply only to action taken under Public Contract Code § 22050.

C. Approval Authority During Emergencies. This subsection does not delegate authority under Public Contract Code § 22050. It establishes the internal approval routing by which the authority delegated to the City Manager under subsection (B) is exercised within the organization, and the City Manager remains accountable to the City Council for all action taken under that delegated authority. Subject to the foregoing, during a proclaimed emergency or disaster, or where a public exigency or emergency will not permit delay, procurement decisions under

40 subsection (B) and under the general emergency purchasing authority described in subsection (B)(5) are routed as follows, notwithstanding the dollar thresholds otherwise applicable under this Chapter:

1. Department Director or designee: up to and including $25,000 per procurement;

2. Director of Administrative Services or designee: up to and including $100,000 per procurement;

3. City Manager or designee: up to and including $500,000 per procurement; and

4. City Council: any procurement greater than $500,000, except where the City Manager makes a written determination that the emergency does not permit delay for Council action, in which case the City Manager may proceed under subsection (B) and report to Council pursuant to subsection (B)(2).

All procurements made under this subsection shall be reported and, where applicable, ratified by the City Council within the time required by subsection (B)(2) and Public Contract Code § 22050(c)(2), and otherwise at the next regularly scheduled meeting affer the procurement is made. Notwithstanding Section 1.54.140(A), a procurement authorized underthis Section may be made without a sufficient unencumbered appropriation where the emergency or exigency does not permit delay, provided that the Director of Administrative Services identifies the intended funding source and presents a budget amendment to the City Council at the meeting at which the procurement is reported.

D. Operational Mechanisms During Emergencies. During a proclaimed emergency or disaster, and notwithstanding any other provision of this Chapter, the Director of Administrative Services may authorize the following operational mechanisms to expedite procurement:

1. Elevated procurement card transaction and monthly limits for designated cardholders, subject to the Administrative Purchasing Policies and Procedures.

2. Advance payments to vendors where required to secure necessary equipment, services, or supplies, subject to written documentation of the circumstances and reasonableness.

3. Use of pre-screened cooperative purchasing agreements with abbreviated certification under Section 1.54.510(C), provided that full certification is completed within thirty (30) days after the procurement.

4. After-hours and electronic-signature execution of contracts and purchase orders, with the same legal effect as in-person execution during business hours.

5. Such other operational mechanisms as the Director of Administrative Services determines are necessary to expedite procurement, consistent with applicable law and funding-source requirements.

E. Competition to the Maximum Extent Practicable. When time allows, the City will seek at least three (3) quotes or proposals using electronic means. When not practicable, the Purchasing Officer shall document the circumstances and the basis for the selection and price reasonableness.

F. Documentation & Posting. The Purchasing Officer shall ensure documentation of the emergency circumstances, vendor selection, price reasonableness, and any noncompetitive justification. Emergency awards shall be presented to the City Council on the schedule required by subsection (B)(2), and posted to the City's website as soon as practicable.

41 G. Federal Requirements. For federally funded procurements, the City shall follow 2 CFR 200, applicable agency guidance, and any grant-specific terms, including domestic preferences, contract clauses, and debarment checks.

H. Duration. Emergency procedures are limited to the period reasonably necessary to address the emergency. Routine or long-term needs shall transition back to standard competitive methods.

1. Labor Costs and FEMA Reimbursement. Procurement of supplies, equipment, and services under this Section is distinct from authorization of City personnel labor costs (including overtime, premium pay, and compensatory time) incurred during an emergency response. Eligibility of labor costs for reimbursement under the FEMA Public Assistance Program or other federal disaster assistance programs depends on the City's pre-disaster written labor policy, which is established outside this Chapter. Departments incurring labor costs that may be subject to federal reimbursement shall coordinate with the Director of Administrative Services and the Director of Human Resources to ensure documentation and timekeeping practices support reimbursement.

1.54.410 Adoption of Uniform Construction Cost Accounting Act's accounting procedures.

Public Works procurements shall follow Sections 1.54.410 through 1.54.495; the general purchasing procedures in Sections 1.54.310 through 1.54.330 apply only where expressly referenced in Sections 1.54.410 through 1.54.495.

The City reaffirms its election to utilize the alternative bidding methods authorized by the Uniform Public Construction Cost Accounting Act (uPCCAA) for public projects as defined in Public Contract Code § 22002, including use of informal bidding under PCC § 22032 and force account/negotiated contracts under PCC § 22032(a). Maintenance contracts that are not public projects within the meaning of Public Contract Code § 22002 are procured under Section

1.54.486 of this Chapter.

1.54.420 Duties and responsibilities of Public Works Director.

The Public Works Director is authorized to prepare plans and specifications, invite bids, manage bidding, recommend/award within authority, secure required contractor documents, and delegate duties. Electronic advertising and receipt of bids may be used where authorized.

1.54.430 Lists of qualified contractors and construction trade journals.

A. The Public Works Director shall maintain, and keep current:

1. Alist of qualified contractors eligible to submit bids on informal contracts, organized by category of work and consistent with criteria established by the California Uniform Construction Cost Accounting Commission under Public Contract Code § 22034; and

2. A current list of construction trade journals identified by that Commission under Public Contract Code § 22036.

B. Notices of formal and informal bidding under Sections 1.54.440 and 1.54.450 shall be distributed using these lists as required by state law.

C. Pre-qualification under PCC § 20101. Public Contract Code § 20101 authorizes pre- qualification of prospective bidders but does not itself establish a dollar floor. As a matter of City

42 policy, for public works projects expected to exceed $1,000,000, the Public Works Director may require pre-qualification of bidders pursuant to Public Contract Code § 201 C)I prior to bid opening. Pre-qualification may also be required on projects below that amount where the Public Works Director determines it is warranted by project complexity or risk. Pre-qualification shall use a uniform questionnaire and rating system adopted by the City and shall provide a process for appeal of disqualification consistent with state law. Only pre-qualified bidders shall be permitted to submit bids on the project.

1.54.440 Formal bidding procedures for contracts in excess of the state informal bidding threshold pertaining to public projects and certain other construction- related activities.

A. Notice inviting bids shall: (1) be published in a newspaper of general circulation at least fourteen (14) calendar days before the date of bid opening; (2) be sent by mail or electronically (fax or email) to all construction trade journals identified by the California Uniform Construction Cost Accounting Commission under Public Contract Code § 22036 at least fifteen (15) calendar days before the date of bid opening; (3) be sent to all contractors on the qualified contractors list for the category of work to be bid (Section 1.54.430(A)(1 )); and (4) may also be posted on the City's website or e-procurement portal. If state law modifies required notice periods or methods, state law controls.

B. Bids shall be opened publicly by the city clerk at the noticed time and place (physical or electronic). Unless all bids are rejected, award shall be recommended to the lowest responsive and responsible bidder for City Council action.

C. Contracts shall be executed by authority delegated by the City Council.

1.54.450 Informal bidding procedures for contracts at or below the state informal bidding threshold pertaining to public projects and certain other construction- related activities.

A. Notice. The Public Works Director shall provide notice inviting informal bids not less than ten (10) calendar days before bids are due, mailed or emailed to all contractors on the qualified contractors list for the category of work to be bid (Section 1.54.430(A)(1 )) and to the construction trade journals designated by the California Uniform Construction Cost Accounting Commission for Los Angeles County (Section 1.54.430(A)(2)). Notices shall also be posted on the City website or e-procurement portal.

B. Notice Content. The notice shall describe the project in general terms, indicate where more detailed information may be obtained, and state the time and place for submission of bids.

C. Award. The Public Works Director (or designee) may award contracts to the lowest responsive and responsible bidder. Execution shall be by the City Manager or designee.

D. Award When All Bids Exceed Threshold. If all bids received exceed the state informal bidding threshold under Public Contract Code § 22032(b), the City Council may, by adoption of a resolution by a four-firths vote, award the contract at no more than $235,000 (or such other amount as is set by Public Contract Code § 22034(d) as it may be amended) to the lowest responsive and responsible bidder, provided the Council determines the cost estimate was reasonable.

E. Re-bid; Rejection. The Public Works Director may reject all bids and re-solicit, or use the formal procedures of Section 1.54.440, when in the City's best interest.

43 Informal bids shall use the City's current contractor list(s) and trade journals consistent with Public Contract Code §22034 and City policy.

1.54.460 Performance of contracts at or below the state force-account/negotiated threshold pertaining to public projects and certain other construction-related activities.

The Public Works Director may perform eligible work by force account, by purchase order under Sections 1.54.110-1.54.230, or by negotiated contract executed by the City Manager or designee.

1.54.467 Design-build and progressive design-build delivery.

A. Authority. The Public Works Director, with City Council approval, may procure public projects using design-build delivery in accordance with Public Contract Code § 22160 et seq., or progressive design-build delivery in accordance with Public Contract Code § 22170 et seq. or § 22185 et seq., in each case only for projects that are eligible under the applicable chapter and only while that authority remains in effect. Eligibility is determined by state law, which limits each delivery method by the type of local agency, the type of project, the project cost, the number of projects, and the term of the authorization, and which imposes reporting obligations on agencies that use these methods. The Administrative Purchasing Policies and Procedures shall state the eligibility criteria, cost thresholds, project limits, reporting obligations, and expiration dates then in effect under state law, and shall be updated as state law changes. No solicitation shall be issued under this Section until the Public Works Director, in consultation with the City Attorney, has confirmed in writing that the project is eligible under the applicable chapter.

B. Findings. Prior to issuing a solicitation under this Section, the Public Works Director shall prepare written findings supporting use of the alternative delivery method, including consideration of project complexity, schedule constraints, opportunities for design innovation, and total cost. The findings shall be presented to the City Council for approval prior to issuance of the solicitation. The City Council approval required by subsection (A) is given by approving the findings under this subsection, and a further approval is required at award under subsection (D).

C. Procurement procedures. Solicitations under this Section shall follow the procedures of Public Contract Code § 22160 et seq., § 22170 et seq., or § 22185 et seq., as applicable, including best-value or qualifications-based selection as applicable, public notice, prequalification of design-build entities, the standard organizational conflict-of-interest guidelines required by those chapters, any skilled and trained workforce requirement imposed by the applicable chapter, and statutory reporting. Where more than one chapter would authorize the project, the Administrative Purchasing Policies and Procedures shall identify the pathway selected and the reason for the selection. Sections 1.54.440 and 1.54.450 do not apply to design-build procurements under this Section, and Section 1.54.475 applies only as to the City's authority to reject any and all bids.

D. Council award. Award shall be recommended by the Public Works Director to the City Council for approval. The contract shall be executed by the City Manager or designee.

E. Federal funding. Where federal funds are used, design-build and progressive design-build procurements shall additionally comply with 2 CFR 200 and any awarding-agency requirements.

44 1.54.470 Exceptions to bidding requirements for public projects, maintenance work, and similar construction-related activities in case of emergencies.

Emergency public works contracting is governed by Public Contract Code § 22050 and shall be conducted in accordance with all provisions of Section 1.54.370 (Procurement During a Proclaimed Emergency or Disaster), including the statutory authority and Council delegation, approval thresholds, operational mechanisms, documentation, ratification, and federal grant compliance provisions of that Section. Sections 1.54.440, ?.54.450, 1.54.460, and 1.54.467 do not apply to emergency public works contracts entered into under this Section.

1.54.475 Rejection of bids.

The City may reject any and all bids. If, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the City, the City intends to declare the project can be performed by force account, the City shall furnish written notice to the apparent low bidder of its intention to reject the bid, mailed at least two (2) business days before the hearing at which the City intends to reject the bid, as required by Public Contract Code § 22038.

After re-evaluating its cost estimates, the City may: (1 ) abandon the project or re-advertise for bids; or (2) by passage of a four-fifths vote of the City Council, declare that the project can be performed more economically by City employees and have the project done by force account.

1.54.480 Tie bids.

Tie-bid procedures shall be as authorized by state law.

1.54.485 Performance of public projects and maintenance work when no bids are received.

If no bids are received under formal or informal procedures, the City may perform the work by force account or by negotiated contract consistent with this chapter.

1.54.486 Procedures for entering into maintenance contracts where no public bidding is required.

Where the City proposes to enter into a contract for maintenance work within the meaning of Public Contract Code § 22002(d) that does not constitute a public project under Public Contract Code § 22002(c), the Public Works Director shall use one of the following procedures:

A. Contracts of $3,000 or less. The Public Works Director or designee may procure the work directly from a qualified provider with documented price reasonableness and without competitive bidding. Documentation shall be retained in the procurement file consistent with administrative policy and the City's records retention schedule.

B. Contracts greater than $3,000 and up to $50,000. The Public Works Director or designee shall contact at least three (3) qualified maintenance providers in person, by telephone, by electronic mail, or through the City's e-procurement portal, and obtain qualifications and pricing information. Award shall be on a best-value basis considering qualifications, price, and other relevant criteria.

C. Contracts greater than $50,000. The Public Works Director or designee shall issue a formal Request for Proposals describing the scope, qualification requirements, and proposal submission instructions. The RFP shall be posted to the City's website or e-procurement portal at least fourteen (14) calendar days before the proposal due date, and may also be published or

45 distributed by other means reasonably likely to produce an adequate response. Award shall be recommended to the City Council, which may accept or reject any proposal.

D. Alternative bidding. The Public Works Director may elect to procure maintenance work using the formal or informal bidding procedures of Sections '1.54.440 or 1.54.450. An election under this subsection changes the solicitation method only and does not change the approval authority established by subsections (A) through (C).

1.54.490 Bid bonds, performance bonds, and payment bonds.

The thresholds in this Section apply to public works contracts under Sections 1.54.410 through

1.54.486 and are independent of the general purchasing thresholds in Sections 1.54.310 through 1.54.330.

A. Bid security may be required by the Public Works Director as specified in the notice inviting bids for any contract under Sections 1.54.440 or 1.54.450. Bid security shall be returned to unsuccessful bidders; a successful bidder who fails or refuses to execute the awarded contract within twenty (20) days after notice of award shall forfeit its bid security, unless the delay is attributable to the City.

B. Payment Bond. As required by California Civil Code § 9550, the Public Works Director shall require a payment bond for any public works contract exceeding the threshold set by that statute, in an amount equal to one hundred percent (1 00%) of the contract amount. The City's call for bids shall state this requirement.

C. Performance Bond. For contracts equal to or greater than $'l oo,ooo, the Public Works Director shall require a performance bond in an amount equal to one hundred percent (1 00%) of the contract amount. For contracts less than $100,000, the Public Works Director may require a performance bond in such amount as he or she determines reasonably necessary to protect the City's interests.

1.54.495 Prevailing wage; DIR registration; labor compliance.

All public works and applicable maintenance contracts under this Chapter shall comply with California Labor Code §§ 1720 et seq. and implementing regulations of the California Department of Industrial Relations (DIR), including the following:

A. Prevailing Wage. Pursuant to Labor Code § 1771, all workers employed on public works projects subject to that section, including covered maintenance work performed under contract, shall be paid not less than the general prevailing rate of per diem wages established by the Director of the DIR. The Public Works Director shall include the applicable prevailing wage determinations in the solicitation and contract documents for each covered project.

B. DIR Registration. Pursuant to Labor Code § 1771.1, all contractors and subcontractors bidding on, being listed in a bid proposal for, awarded, or performing work on public works projects shall be currently registered with the DIR and qualified to perform public work, except as exempted by Labor Code §§ 1725.5 and 1771.1 (n).

C. Project Registration. The Public Works Director shall register each applicable public works project with the DIR within thirty (30) days of contract award, but in no event later than the first day workers are employed on the project, as required by Labor Code § 1 773.3.

D. Certified Payroll. Contractors and subcontractors shall furnish certified payroll records to the Labor Commissioner as required by Labor Code § 4 776 and § 1 77"l.4.

46 E. Notice. The City's call for bids and contract documents shall include notice that the project is subject to compliance monitoring and enforcement by the DIR.

1.54.510 Exemptions from formal and informal bidding procedures.

A. General. Use of any exemption under this Section shall be documented in writing in the procurement file. For purchases funded by restricted sources, exemptions shall be applied only to the extent permitted by those sources. Available exemptions are listed below.

B. Sole source. A procurement from the only known source capable of providing the required supplies, equipment, or services. The procurement file shall include a written sole-source justification approved by the Purchasing Officer.

C. Cooperative purchasing and piggyback. Prior to utilizing a cooperative purchasing agreement or piggybacking on another public agency's contract, the Purchasing Officer shall certify in writing:
(1 ) that use of the agreement is in the best interests of the City; (2) that it is economically advantageous; and
(3) that the original contract was competitively awarded using procedures materially consistent with this Chapter.

The procurement file shall also document price reasonableness, scope and term alignment, and funding-source compatibility. During a proclaimed emergency or disaster, certification under this subsection may be abbreviated as provided in Section 1 .54.370(D)(3).

D. Emergency. Procurements made under Section 1.54.370 or Section 1.54.470 are exempt from formal and informal bidding to the extent provided in those Sections.

E. Lack of effective competition. Where the procurement involves supplies, equipment, or services for which there are no reasonably available alternatives in the marketplace (for example, fees for membership in professional organizations, registration for meetings or conventions, public utilities, advertising in identified publications, and proprietary items available only from original-equipment manufacturers or their authorized exclusive distributors). The procurement file shall include a written finding by the Purchasing Officer documenting the lack of effective competition.

F. Impracticability of formal bidding. Where the Director of Administrative Services, with the concurrence of the City Manager, makes a written finding that, given the nature of the supplies, equipment, or services, formal bidding is not likely to result in the lowest cost to the City. The finding shall be retained in the procurement file.

G. Recent competitive pricing. Where the same vendor has, within the preceding twelve (12) months, offered to provide the same supplies, equipment, or services on the same terms, conditions, and prices and that prior offer was the result of a competitive process. The procurement file shall document the prior competitive process and confirm that pricing has not increased.

H. Repair or compatibility components. Where the purchase is for a component for a system or equipment previously acquired by the City and is necessary to repair, maintain, or improve the City's utilization of that system or equipment. The procurement file shall document the existing system or equipment and the need for compatibility.

47 I. Intergovernmental contracts. Where the purchase of goods or services is made pursuant to a contract with another local, state, or federal governmental entity under authority granted by Government Code §§ 6500 et seq. (Joint Exercise of Powers Act), Government Code §§ 54981 et seq., or other applicable law.

J. Public Project Limitation. This Section does not exempt public projects from bidding requirements under Sections 1.54.410 through 1.54.495 unless an exemption is expressly authorized by state law.

K. Approval Authority. Use of any exemption under this Section shall follow the dollar-level approval routing applicable to the procurement under Sections 1.54.310 through 1.54.330,

1.54.350, 1.54.355, and 1.54.440 through 1.54.495, as provided in Section 1.54.110(B).

Procurements exempt under subsection (D) follow the routing in Section 1.54.370(C) instead.

1.54.610 Approval of modifications and change orders.

For purposes of this Section: (a) "cumulative modification value" refers to the aggregate dollar amount of all modifications and change orders to a contract, individually and together; and (b) "revised contract value" refers to the original contract amount plus the cumulative modification value.

A. Contracts may be modified by change order or amendment to add, delete, or revise items, subject to approval routing. Modifications to purchases made under Section 1.54.330 and to maintenance contracts awarded under Section 1.54.486 are approved at the level that would apply to the revised contract value under the Section that governed the original award, and this Section applies to those modifications only as provided in subsections (D) and (F).

B. For public works contracts originally approved under Sections 1.54.440, 1.54.450, 1.54.460, or 1.54.467, the Public Works Director (or designee) may approve change orders, individually or cumulatively, up to the lesser of (i) ten percent (1 0%) of the original contract amount, or (ii) two hundred fifty thousand dollars ($250,000). Change orders that would cause the cumulative value to exceed those limits require City Council approval, except as provided in subsection (D).

1. Any single change order in excess of fifiy thousand dollars ($50,000) shall require the written approval of the Public Works Director, even if within delegated cumulative authority.

2. Cumulative tracking shall be maintained in the procurement file. Each change order shall identify the original contract amount, the cumulative value of prior approved changes, the new change amount, and the resulting revised total.

C. For contracts originally approved under informal purchasing authority (Section 1.54.320), cumulative modifications may be approved by the Director of Administrative Services if the total revised contract value does not exceed the $50,000 upper limit of the informal purchasing range in Section 1.54.320, as that limit may be adjusted under Section 1.54.030(B). Modifications that would cause the total revised contract value to exceed that limit require City Council approval, except as provided in subsection (D). For purchases of supplies, equipment, and general services originally awarded under Section 1.54.310 (formal bidding), modifications follow the same delegated authority structure as subsection (B): the Director of Administrative Services may approve cumulative modifications up to the lesser of ten percent (1 0%) of the original contract amount or $250,000; any single modification exceeding $50,000 requires the written approval of the Director.

D. Emergency and urgency modifications. The City Manager may approve a modification or change order without prior City Council action when delay would threaten public health or

48 safety, essential City operations, City property, or compliance with applicable law, subject to written findings supporting the urgency and a report to the City Council at its next regular meeting. Public works emergency modifications shall additionally comply with Section 1.54.370 and Public Contract Code § 22050.

E. Professional services amendments. Amendments to professional services contracts awarded under Section 1.54.350 and task-order amendments under master service agreements awarded under Section 1.54.355 follow the award authority of the underlying contract or task order:

1. Amendments that do not cause the revised contract value or task-order value to exceed the City Manager's award authority under Section 1.54.350(D)(1 ) or the task-order ceiling under Section 1.54.355(D)(2) may be approved by the City Manager (or designee).

2. Amendments that cause the revised value to exceed those limits, or that increase an approved aggregate cap above $1 oo,ooo, require City Council approval.

3. For professional services contracts originally awarded by the City Council under Section

1.54.350(D)(2), the City Manager (or designee) may approve cumulative amendments up to the lesser of ten percent (1 0%) of the original contract amount or $1 00,000; cumulative amendments exceeding those limits require City Council approval.

F. Insurance and bonds. No modification or change order is effective until required insurance and bonds have been confirmed current and, where the modification increases the contract value or extends the term, conformed to the revised value and term as required by the policy issued under Section 1.54.057.

1.54.710 Purpose of environmentally preferable purchasing policy.

The purpose of Sections 1.54.710 through 1.54.750 is to promote purchase of recycled and environmentally preferable products, minimize environmental impacts of city operations, and support markets for recycled and sustainable products.

1.54.720 Definitions used in environmentally preferable purchasing policy.

A. "Environmentally preferable products" means products that have a lesser or reduced effect on human health and the environment when compared with competing products serving the same purpose, considering raw materials acquisition, production, manufacturing, packaging, distribution, use, reuse, operation, maintenance, and disposal.

B. "Recycled product" means a product containing post-consumer waste, manufacturing scrap, or other recovered materials in amounts meeting or exceeding the minimum content standards adopted by the City Council or by administrative policy.

C. "Practicable" means sufficient in performance and available at a reasonably competitive price compared to non-environmentally preferable alternatives, considering total cost of ownership over the useful life of the product.

D. "Waste prevention" means source reduction practices that reduce the volume or toxicity of products consumed or discarded.

Additional definitions may be adopted by administrative policy.

49 1.54.730 City department responsibility relative to environmentally preferable purchasing.

All departments shall prioritize EPP, encourage waste prevention and recycling through contracts and purchasing practices, consider lifecycle impacts, specify recycled/environmentally preferable products where practicable, and solicit such products in procurement documents where appropriate.

1.54.740 Waste prevention practices.

City staff are encouraged to reduce resource consumption by considering durability and repairability, performing routine maintenance, duplex printing, electronic information management, and record-retention practices that support this section.

1.54.750 Exemptions and administrative updates to environmentally preferable purchasing standards.

A. Administrative Updates to Environmentally Preferable Purchasing Standards.

The Director of Administrative Services may, by administrative policy, update and expand environmentally preferable purchasing standards, product categories, and specifications to reflect current best practices, market availability, and total-cost-of-ownership considerations, provided such updates remain consistent with this Chapter and applicable law.

B. Exemptions. Nothing in Sections 1.54.710 through 1.54.750 requires purchase of products that fail to perform for their intended use, exclude adequate competition, or are not available at reasonable prices, terms, or within a reasonable time.

1.54.810 Disposition of obsolete and surplus property.

A. Departments shall submit at least annually a report identifying surplus/obsolete/unserviceable property.

B. With City Manager approval, the Purchasing Officer may sell or exchange such property for best obtainable return (including public auction, trade-in, or competitive sale) or dispose of items with no salvage value.

C. Items with an estimated market value of $'l O,000 or less may be disposed of administratively under subsection (B). Prior to the disposition of any item with an estimated market value greater than $1 o,ooo, the Purchasing Officer shall report to the City Council describing the property and the proposed method and terms of disposition, and shall obtain City Council approval.

D. Grant-funded equipment. Disposition of equipment acquired with federal or state grant funds shall comply with the disposition requirements of the grant source (including 2 CFR § 200.31 3(e) for federal grants), notwithstanding any provision of this Section to the contrary.

E. Information technology equipment. Before disposition, all information technology equipment (including computers, mobile devices, servers, storage media, and any equipment that has stored City data) shall be subject to data sanitization or destruction in accordance with administrative policy and applicable data-protection standards.

F. Vehicles. Disposition of City vehicles shall include transfer of title through the California Department of Motor Vehicles consistent with applicable law.

50 G. Public-safety-sensitive items. Items with public-safety sensitivity (including but not limited to police uniforms with City insignia, badges, body armor, weapons, evidence-handling equipment, and similar items) shall not be sold to the general public. The Chief of Police shall determine the appropriate disposition method.

H. Restriction on employee purchases. No City elected official, appointed official, board or commission member, officer, employee, or member of their immediate family (as defined in Section 1.54.055) may purchase surplus property of the City except through a public auction or competitive sale that is open to the general public on the same terms.

I. Items sold shall be paid for in cash, certified check, electronic payment, or other immediately available funds payable to the City. Proceeds shall be deposited and recorded as provided by administrative policy.

J. The Purchasing Officer is authorized, with the approval of the City Manager, to execute bills of sale and other documents evidencing transfer of title.

1.54.990 Severability.

If any provision of this Chapter is held invalid, the remainder shall remain in full force and effect.

51 Attachment C
Agenda Bill 9/8/26
Change Map SGMC Chapter 1.54
Current Ordinance vs. Proposed Ordinance
What Changed and What It Means
This change map summarizes how the revised Chapter 1.54 differs from the existing ordinance. It is a summary and not a substitute for the ordinance text. Attachment 2 (Exhibit A) controls, and all section references are to that draft.

Rows are grouped into four functional areas for readability: Modernization and Competition; Public Works, CIP Delivery, and Professional Services; Emergency and Disaster Procurement; and Execution, Standards, and Roles.

Two points apply throughout. Because the Ordinance delegates emergency contracting authority to the City Manager under Public Contract Code § 22050(b)(1), adoption requires a four-fifths vote of the City Council.

Modernization and Competition

52

53

54 ?
aioi
I yi 1 J_enL! 0 J nJ t l- I: di (* kli {-, :I I J i S :ll' - ij! -k i ! i!Tij r -iii Igill Iax IgIt*griilai I *ii i ii i IllgiI i I111.111IIII trireshold stood
since 2005.

Government Consumption
Expenditures, with a zero percent
floor and a three percent cap. If
adopted, it applies to every dollar
amount in the Chapter, rounded to
the nearest 51,000, except the
S50,000 formal bidding threshold in
§§ 1.54.310, 1.54.320, and

1.54.486, which requires an
ordinance, and amounts set by
state or federal law (§ 1.54.030(A)).
maintenance tier stay
aligned automatically.

Thresholds never decrease
and stay flat in years the
Council does not act.

Defined terms
and contract
forms
Shorter definitions
section; contract-
form types not
defined. The chapter
refers to the
"Purchasing
Supervisor" and the
"Director of
Finance."
§ 1.54.020 adds defined terms
including best value, e-procurement
system, electronic sealed bid,
reverse auction, sole source, and
three purchase order types, and
maps the legacy titles forward.

Where Director of Administrative
Services approval is required in
addition to Purchasing Officer
action, it must come from the
Director personally or from a
designee other than the person
who authorized the purchase.

Legacy title references
resolve without a separate
amendment. The separate-
designee rule is a
segregation-of-duties
control that auditors look
for.

Public Works, CIP Delivery, and Professional Services l
aliiiffilii
Ii i:i: iil kl 7I iti 'i d- i ili I
t i i i i
@
II &i ii i
I' 111 ih i iafi ) ffi 1 %
zIimii ti II IIi* lai 1€-81 gIi Illffl bi ig
Public works
and UPCCAA
thresholds
§§ 1.54.440 through

1.54.460 codify the
March 2013 UPCCAA
figures of S45,000
and 5175,000.

These sections now refer to the
state informal bidding and force-
account thresholds rather than
fixed figures, applied automatically
under § 1.54.030(A) as the
Legislature amends them. Ei

1.54.410 confirms that
maintenance work that is not a
public project is procured under §

1.54.486.

No ordinance amendment
is needed when the state
changes thresholds, and
the chapter no longer
prints figures that go stale.

Staff apply the UPCCAA
thresholds then in effect,
which the Administrative
Purchasing Policies and
Procedures publish.
46

55

56 g I
ali
.ai Thi'ima i I n -l Hl
iffll&i
li} fi * I ]l * * I [
miihimi* zIr aaa*i 8151 € aI I i igii *II IIi Igi I
of bidders
(new)
contractor list for
informal bidding. No
PCC § 20101 pre-
qualification
authority.
expressly that the statute sets no
dollar floor. As a matter of City
policy, pre-qualification may be
required above Sl,000,000, and
below that amount where
complexity or risk warrants. Only
pre-qualified bidders may submit
bids.
statutory floor. Once pre-
qualification is required,
the questionnaire and
appeal timeline must be
built into the project
schedule.

Rejection of
bids:
protective
notice (new)
§ 1.54.475 permits
rejection of bids and
force account; no
codified notice rule.

Et 1.54.475 adds the PCC % 22038
protective notice: written notice to
the apparent low bidder at least
two business days before the
hearing where the City intends to
reject all bids in favor of force
account, which still requires a four-
fifths vote.

Mandatory protective
notice avoids post-
rejection bidder
challenges.

Bonds:
payment bond
threshold
§ 1.54.490 requires
performance and
payment bonds for
public works
contracts at or
above 5100,000.

Payment bonds now track the
threshold set by Civil Code § 9550
by reference rather than a fixed
figure, at 100% of the contract
amount. Performance bonds stay at
SIO0,000 as a City policy choice,
with discretion to require one
below that. The section states that
its thresholds are independent of
the general purchasing thresholds.

A legal compliance
correction. The prior
5100,000 payment bond
threshold sat above the
statutory trigger in Civil
Code § 9550, and the
section now tracks state
law automatically.

Prevailing
wage and DIR
registration
(new)
Not addressed in the
chapter, apart from
general state-law-
controls language.

New § 1.54.495 codifies Labor Code
§§ 1720 et seq. compliance by
citation: prevailing wage (§ 17711
DIR contractor registration (§
1771.1), project registration within
30 days of award (§ 1773.3),
certified payroll (§§ 1776 and
1771.41 and DIR monitoring notice
in the call for bids.

The framework sits in one
place. Consistent with the
drafting approach used
throughout the chapter,
the statutory dollar
triggers are not restated in
the ordinance and are
carried in the
Administrative Purchasing
Policies and Procedures so
they do not go stale.

48 57

58 !! 1 i J ! B - B a % * * * o ! J ! B - B a 14
1 i
a
i iiMii iz8411885 €Igitii t riI gIiii I *I* **IIIll *gg i 20% Or 5b0,000 tent
on larger contracts.
cumulative, with single change
orders above S50,000 requiring
written Director approval and
cumulative tracking in the file.

Formal-bid goods and services
follow a parallel cap, and informal
contracts may be modified
administratively within the 550,000
range. The City Manager may
approve urgency modifications on
written findings with a next-
meeting report. Professional
services amendments follow the
underlying award authority. No
modification is effective until
insurance and bonds are conformed
to the revised value and term.
contract categories rather
than public works alone,
and the insurance
conformance gate belongs
in the amendment routing.

Maintenance
contracts (not
public
projects)
§ 1.54.486 tiers at
55,000 and 525,000,
with newspaper
notice and Council
award above
S25,000.

Tiers realign to the goods and
services thresholds: S3,000 or less
direct with documented price
reasonableness, over S3,000 to
S50,000 by three quotes on a best-
value basis, and over 550,000 by
formal RFP posted to the portal
with Council award. § 1.54.486(D)
now states that electing UPCCAA
procedures changes the solicitation
method only, not the approval
authority.

Less RFP burden in the
525,000 to S50,000 range.

Subsection (D) closes a gap
where a UPCCAA election
could have been read to
shift award authority away
from the Council.

Emergency and Disaster Procurement

59

60 .. . _ I I i I
i
ffi.lT ' J;
il1ffi
j* } i €4- I I L l
ii il iiiiffiiiiI iaII yawn g1111III I *i**II I II*i II Tiered approval
authority
during
emergencies
(new)
No codified
emergency
thresholds. Ei

1.54.510(B) requires
Finance and City
Manager
confirmation, with
no field-level
delegation.

Ei 1.54.370(C) routes emergency
procurement internally:

Department Director S25,000,
Director of Administrative Services
SIO0,000, City Manager S500,000,
and the Council above that unless
the City Manager finds in writing
that delay is not permissible.

Notwithstanding § 1.54.140(A), a
procurement may proceed without
an unencumbered appropriation,
provided the Director identifies the
funding source and brings a budget
amendment when the
procurement is reported.

EOC Finance ana Fieid staff
have a clear approval
ladder during an
activation. The
appropriation provision
removes the budget block
but commits Finance to a
budget amendment on the
same agenda as the
report.

Operational
mechanisms
(new)
Standard
procurement
workflows apply
during emergencies;
no acceleration
mechanisms
codified.

Er 1.54.370(D) lets the Director of
Administrative Services elevate
procurement card limits, authorize
documented advance payments,
invoke cooperative agreements on
abbreviated certification with full
certification within 30 days, and
execute after hours by electronic
signature.

Field staff are not blocked
by card limits, and out-of-
area contractors can
mobilize on advance
payment. These
mechanisms require an '
actual proclamation.

Emergency
competition,
documentation,
and duration
(new)
No codified
emergency
competition or
documentation
standard.
§ 1.54.370(E) through (H) require
three quotes when time allows;
documentation of circumstances,
selection, and price
reasonableness; CouncH
presentation and website posting
of emergency awards; 2 CFR 200
compliance on federally funded
buys; and a limit to the period
reasonably necessary.

This is what FEMA reviews
in a Public Assistance
audit. Contemporaneous
documentation and
' posting are the elements
most often missing after
an event.

FEMA labor
cost cross-
reference (new)
Labor cost
reimbursement
issues not
addressed.
§ 1.54.370(1) separates
procurement from authorization of
City personnel labor costs and
states that FEMA reimbursement
The labor cost question
lives in HR policy. Without
that policy in place,
overtime may not be

52 61
I
i
Il-.: ik_; ! -i * l
ih
l;Thlu @,p r L@_jP] [
mi i iiiil IiijliiI r 18681 K u ti II*I I I *i* *II i*iigt g depenas on a pre-aisaster written
labor policy established outside
this Chapter, with departments
coordinating with Administrative
Services and Human Resources on
documentation.
reimbursable no matter
how well the procurement
side is documented.

Emergency
public works
§ 1.54.470
references PCC §
22050 procedures,
limited to public
projects.
§ 1.54.470 becomes a clean cross-
reference to all of § 1.54.370, and
gg 1.54.440, 1.54.450, 1.54.460,
and 1.54.467 do not apply during
emergencies.

One framework citywide,
with the ordinary bidding
and design-build sections
switched off.

Execution, Standards, and Roles

62 I
aii
i .amia ii ffi n ih li il ia:§ in ri1 ( p 1€ (i ri I
iim iiffll ii i§ibI xmi xi IiI I ggi iiiii I *Ii ii I*I ilIIi certification
(new)
requisitions can be
read in audit
responses as an
implicit eligibility
review.
writing, before requisition
approval, that purchases charged
to restricted sources comply with
eligibility, allowable cost, scope,
and use restrictions. Finance
verification is limited to
unencumbered appropriation and
is expressly not a determination of
program eligibility or cost
allowability. The Administrative
Purchasing Policies and Procedures
carry the form, triggering funds
list, escalation, and retention.
responses, and
departments own
eligibility on their own
projects and grants.

Bid protests Not addressed in the
chapter.

New § 1.54.365 establishes a
written protest process with
minimum content requirements,
initial determination by the
Purchasing Officer, and appeal to
the City Manager as final
administrative action. It creates no
private right of action. Deadlines
sit in the Administrative
Purchasing Policies and
Procedures.

A predictable path reduces
ad hoc disputes and
litigation risk. Because the
deadlines are in the
manual, the manual must
issue before the operative
date.

Cooperative
and piggyback
use
§ 1.54.510 permits
piggyback and
cooperative
purchasing with no
certification or
documentation
requirements.

The Purchasing Officer must now
certify best interest of the City,
economic advantage, and that the
original contract was competitively
awarded using materially
consistent procedures, with price
reasonableness documented. Each
exemption carries its own
documentation or findings
requirement, public projects are
expressly not exempted, and
exemption use follows the
ordinary approval routing.

Certification and a price-
reasonableness memo
come before piggybacking.

Using an exemption does
not change who approves
the purchase.

54 63
l
i
:.l'-i;-. T" i I 1,J [ !el in -ljaJt: * I tg tB] 0
xi ibib iffiimbI xaiuun II Igsiii It*i* Ill ii igIa
Insurance,
bonds, and risk
§ 1.54.490 governs
public works bonds.

No general
insurance or
indemnity section.

New § 1.54.057 places insurance,
bonding, indemnity, and risk
transfer under an administrative
policy that can be updated as joint
powers authority guidance
evolves. On the face of the code:
no execution, notice to proceed, or
work before verification; waivers
only by the City Manager, the
Director of Administrative Services,
or the Risk Manager, never a
department director; third-party
administration permitted without
transferring approval authority;
and a coverage lapse is a material
breach. Public works bonds remain
in § 1.54.490.

Two provisions change
daily practice: department
directors can no longer
waive insurance, and
verification must occur
before notice to proceed.

The third-party
administrator language
supports the certificate
management program
already underway.

Roles and
administrative
policy
Role titled
"Purchasing
Supervisor,"
appointed by the
Director of Finance;
procedures split
between the
chapter and City
Manager
instructions.

The role becomes "Purchasing
Officer," held by the Director of
Administrative Services, who
issues the Administrative
Purchasing Policies and Procedures
implementing the Chapter (§

1.54.110(F)). Acting authority is
cleaned up to remove the circular
fallback, and electronic signatures
are expressly authorized.

Procurement leadership
moves to department
head level, and the code
stays high-level so
procedure can be updated
without an ordinance
amendment. Because so
much detail moves to the
manual it must issue and
staff be trained before the
operative date.

Quick reference
for departments
(new)
§ 1.54.010 has a
section-range
outline but no
navigation aid
oriented to common
department
questions.
§ 1.54.010 adds a quick-reference
table mapping common
department needs to the
governing section, from a S3,000
purchase through a bid protest.

Analysts can find the right
section without reading
the chapter through. A
usability change rather
than a substantive one.

Environmentally
preferable
purchasing
fig 1.54.710 through

1.54.750 fix
environmentally
New § 1.54.750(A) lets the
Director of Administrative Services
update standards, product
Standards can be
refreshed as markets

55 64

65 Attachment D
Agenda Bill 9/8/26
REDLINE: South Gate Municipal Code Chapter 1.54
Current codified chapter compared to proposed Chapter 1.54 (Attachment 2, Exhibit A). Tracked changes show every deletion and insertion at the word level. Codifier ordinance-history citations at the end of each current section are omitted, because derivation is reassigned on a full repeal and replace.

Chapter heading, section list, and history footnote Chapter 1.5/I PURCH/\SING SYSTEM /\ND BIDDING RULES* Purchasinz System and Biddin@ Rules Sections:

1.54.010 Purpose and organization of this chapter.

1.54.020 Definitions.

1.54.030 Changes to dollar limits.

1.54.040 Matters pertaining to housing authority, successor agency, utility public financing authority, or other bodies.

1.54.050 Conflicts with state and federal law; federal grant procurement compliance.

1.54.055 Standards of Conduct; Conflicts of Interest; Gratuities.

1.54.056 Non-Discrimination.

1.54.057 Insurance, Bonds, and Risk Transfer.

1.54.110 Appointment, and duties of purchasing zupcrvizor.r'urchasin@ Officer.

1.54.120 Requests (requisitions) to purchazing supcrvisor the r'urchasinz Officer by city departments and personnel that the city purchase supplies, and services.

1.54.130 Centralized purchasing: all city purchases of supplies, and services must be made by a a the Purchasinz Officer.

1.54.140 Funding of purchases.

1.54.165 Anti-splitting.

1.54.210 Exceptions from centralized purchasing for certain recurring expenses, maintenance expenses, real estate expenses, and minor one-time expenses.

1.54.220 Exemptions from centralized purchasing for purchases of professional services.

1.54.230 Exemptions from centralized purchasing for contracts for public projects, maintenance work, or other construction.

1.54.240 0ther exemptions from centralized purchasing.

1.54.310 Formal bidding procedures for city purchases of supplies, and services exceeding fifty thousand dollars.

1.54.315 Best-value awards and reverse auctions.

1.54.320 Informal bidding procedures for city purchases of supplies, equipment and gservices exceeding three thousand dollars and fifty thousand dollars. 57 66

1.54.330 0pen market purchases without formal or informal bidding for amounts I('S!, than two of three thousand dollars or less.

1.54.340 Local business credit.

1.54.345 Local subcontractin@ on larzer contracts.

1.54.350 Procedures for professional and other zcrviccs.

1.54.355 0n-call and master service azreements for professional services.

1.54.365 Bid Protests.

1.54.370 Procurement During a Proclaimed Emergency or Disaster.

1.54.410 Adoption of Uniform Construction Cost Accounting Act', /\ccounting r)roccdurcs. procedures.

1.54.420 Duties and responsibilities of public workr, dircctor.Public Works Director.

1.54.430 Lists of qualified contractors and construction trade journals.

1.54.440 Formal bidding procedures for contracts in excess of one hundred seventy five thousand dollarr, (or such other amount as may hcrcaftcr be cstablizhcd by thc state informal biddinz threshold pertaining to public projects and certain other construction-related activities.

1.54.450 Informal bidding procedures for contracts between forty five thousand dollars and one hundrcd seventy five thousand dollars (or such othcr amounts as may hcrcaftcr be tstablirhcd by at or below the state jaw)-informal bidding threshold pertaining to public projects and certain other construction-related activities.

1.54.460 Performance of contracts for IC!,!; than forty five thousand dollars (or such othcr amount JZ may hereafter be established by at or below the state force-account/nezotiated threshold pertaining to public projects and certain other construction-related activities.

1.54.467 Design-build and progressive desizn-build delivery.

1.54.470 Exceptions to bidding requirements for public projects, maintenance work, and similar construction- related activities in case of emergencies.

1.54.475 Rejection of bids.

1.54.480 Tie bids.

1.54.485 Performance of public projects and maintenance work when no bids are received.

1.54.486 Procedures for entering into maintenance contracts where no public bidding is required.

1.54.490 Bid bonds, performance bonds, and payment bonds.

1.54.495 Prevailinz waze; DIR registration; labor compliance.

1.54.510 Exemptions from formal and informal bidding procedures.

1.54.610 Approval of modifications and change orders.

1.54.710 Purpose of rccycling ordinancc.cnvironmentally preferable purchasin@ policy.

1.54.720 Definitions used in rccycling ordinancc.cnvironmentally preferable purchasing policy.

1.54.730 City department responsibility relative to environmentally preferable purchasinz.

1.54.740 Waste prevention practices.
67 1.54,750 Exemptions and administrative updates to environmentally preferable purchasing standards.

1.5/1.750 Exemption 1.5/1.810 Disposition of rccyclinH plan.obsolete and surplus property.

1.5/1.810 Disposition of obsolctc and surplus property.

1.54.990 Severability.

1.54.010 Purpose and organization of this chapter.

The basic outline in which this chapter presents those matter, is as follows:
q 1.54.010 through 1.5/1.050 General provisions and standards of conduct iil.54.ll0 through 1.5/1.1/10 Centralized purchasing and anti-splitting q 1.54.210 through 1.5/1.230 Exceptions from centralized purchasing Formal biddin(; (amounts cxcccdinq S50,000)
Informal biddinq (amountr, from S2,000 to S50,000) No bidding required for open market purchases below S2,000 § 1.54.370 l Emergency and disaster procurement
§§ 1.54.410-1.54.495 l Public projects and maintenance work (UPCCAA) § 1.54.510 l Exemptions from bidding requirements
§ 1.54.610 l Modifications and change orders
No bidding rcquircd for professional services contracts Scctionr, 1.5/l./110 through 1.5/l./100 /\ltcrnatc bidding procedures for public project and maintenance work % 1.54.710 - 1.54.750 l Environmentally preferable purchasin@ policy Formal bidding (amountr, exceeding SIO0,000)
§ 1.54.810 l Disposition of surplus property
Informal biddinq (amountr, between S25,000 and SIO0,000) 68 No bidding required for amounts less than !,25,000 Section 1.5/1.510 Exceptions to bidding requirements Section 1.5"1.610 Contract modificationr, and change orders Sections 1.5/1.710 through 1.5'l.750 Rccyck'd product procurement policy Section 1.5/L.S!:10 Disposition of surplus property § 1.54.990 l Severability
Details of the procedures summarized here are developed in the Administrative Purchasing Policies and Procedures issued by the Director of Administrative Services under Section 1.54.110.

Quick reference for departments:

If your need is... l Start at...

A purchase of S3,000 or less l § 1.54.330
A purchase over 53,000 and up to S150,000 I § 1.54.320
A purchase over S50,000 I § 1.54.310
A professional services contract I § 1.54.220 and § 1.54.350 Public works or maintenance work l §§ 1.54.410-1.54.495 Maintenance work, no public project l § 1.54.486
An emergency purchase l § 1.54.370
A modification or change order i § 1.54.610
Cooperative or pi@@yback purchase l § 1.54.510
A sole-source purchase l § 1.54.510
A bid protest l § 1.54.365

1.54.020 Definitions.

Terms used in this Chapter but not defined herein shall have the meaninzs assizned by other provisions of the South Gate Municipal Code, the California Public Contract Code, or applicable state and federal law, in that order of precedence unless otherwise stated.
/\!, used in this chapter, unless Unless the context otherwise clearly indicates, the following definitions m
"Administrative instructions for contracting professional services" means the professional services provisions of the Administrative Purchasin@ Policies and other scrvict'," mcan those certain quidclincs prepared by thc city manager (including any modifications to those guidclincs that may hereafter be made Procedures issued under Section 1.54.110(F), as amended from time to time, establishing thc city manager) which establish procedures by which the e%cgy selects and contracts for professional and other zcrviccs. "Best value" means the procurement method that provides the @reatest overall benefit to the City considering price, total cost of ownership, quality, reliability, delivery, experience, past performance, and other factors stated in the solicitation. Best value is not a lowest-price-only determination. 69 "Bidders' list" means a list of suppliers and vendors, supplied vendors maintained by the purchasinq division Purchasin@ Division of the a ' Department of Administrative Services, and a list of qualified contractors identified according to categories ofwork maintained by the works director Public Works Director pursuant to Public Contract Code 4 22034 and criteria promulgated from timc to time by of the California Uniform Construction Cost Accounting Commission. "City council" means the e%-Ql of South Gate city council, City Council, except as otherwise specified in Section 1.5/1.0/10 of this chaptcr.l.5/1.040.
"Contract" means a written agreement between the (-%-Q!Y and a vendor or a-contractor, including a purchase order issued to a vendor or a-contractor.
"Cooperative purchasing" means purchasing that consists of combining the needs of multiple customers and/or other governmental agencies into a single solicitation of bids. "Cooperative purchasing agreement" means an azreement by which the City purchases supplies, equipment, or services usinz the competitively awarded contract of another public agency or of a cooperative purchasing organization whose contracts have been competitively awarded on behalf of participating public agencies. "Customer"meansanyoffice,department,bureau,commission,bear-d- board orotheragencyofthee%- using supplies, equipment, or cquipmcnt.,crviccs.
"Director of finance" means the director of the city', dcpartmcnt of finance. "Director of Administrative Services" means the director of the City's Department of Administrative Services (also referred to interchangeably as the Finance Department). References in this Chapter to "Director of Finance" or "Finance Director" shall be read as the Director of Administrative Services. "E-procurement system" means the City-approved electronic platform used to issue solicitations, receive bids and proposals, distribute addenda, and maintain records of procurement activity. "Electronic sealed bid" means a bid or proposal submitted, time-stamped, encrypted, and stored through a city- approved e-procurement system that provides an auditable record functionally equivalent to a sealed, time- stamped paper submission.
"Facility" means any plant, building, structure, ground facility, sewer, storm ,drainor other publicly owned infrastructure (including without limitation items identified in Public Contract Code 4 22002(c)(3)); real property; streets and highways; or other public works improvement. "Force account" means the accounting procedure for accurate recording of work performed on public projects and maintenance work using internal resources, resources of the City, includinq but not limited to labor, equipment, materials, supplies, and zubcontractz of the city.zubcontracts. 61 70
"Maintenance work" means (1) routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes; (2) minor repainting; (3) resurfacing of streets and highways at less than one inch; (4) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing ofirrigation and sprinkler systems; and (5) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limitcd %- dams, reservoirs, power plants, and electrical transmission lines of two hundred thirty thousand volts and higher.
"Negotiated contract" means a letter of agreement, vendor agreement, contract, professional services agreement, maintenance services agreement, public project agrccmcnt or other written documentation which details zcttinz forth the terms and conditions of the purchase and services. "Piggyback contract" means a contract entered into by means of placing a purchase order against an existing contract of another public agency.
"Professional services" means any service generally characterized as a "profession" rather than a "business," "industry," "occupation," or "trade" under California State law. Without limiting thc foregoing, the following types of scrviccs shall be included within the definition of "professional scrviccr," under this chaptcr: accounting; architecture; auditing; law, including accounting, architecture, auditing, business appraisal or valuation; valuation construction project mana(;cmcnt; management, construction management and inspcction; enzinccrin@; cnvironmcntal; inspection, engineering, environmental, financial planning, insurance, land landscapc architecture; architecture, landscape cnginecring; legal; mcdical; engineering, legal, medical, municipal public real estate and real estate brokerage or S.:)IC!J. Moreover, the provision of consulting services with respect to, rather than the actual pcrformancc of, to any of the foregoing are also professional serviccr, shall also be dccmcd "profcasional zcrviccr," for purposes of this "Publicly owned infrastructure" means (includin@ without limitation) items defined in Public Contract Code § 22002(c)(3); real property; streets and hizhways; sewer; water; street lights; or other public work improvement. "Publicly owned infrastructurc" mcans (including without limitation): items defined in California Public Contract Code Section 22002(c)(3); real property; strccts and hiqhways; sewer; water; street lights; or other public work improvement.
"r)urchasc order" mcans any or all of the following:
62 71
"Blanket purchase order": a purchase consisting of written authorization with a vendor for release of materials or service on an "as nccdcd" basis of an aqgrcqatc value of IC!,!., than one thou=;and dollars per purchase, no capital, with a fiscal year cap of fifty thousand dollars. /\ny amount exceeding fifty thousand dollars must be awarded by formal or informal bid procedures pursuant to Section 1.5/1.310 or 1.5/l./150, unless exemptions cstablizhcd under Scctionr, 1.5/i.350, 1.5"1!170 or 1.54.510 apply. Exceptions may be made upon approval by thc city manager or his dcsigncc. Thc blanket purchazc order is issued to satisfy an unforcrccn and immediate nccd. "Field purchasc order": a purchase of materials or services consisting of lass than a one thousand dollar limit, completed within thirty day,.
"Purchase order": purchase of materials or zcrvic's through a written order, required for orders over onc thousand dollar;, or at thc request of a vcndor, or at the judgment of the purchasinq supervisor (or his or her "Purcharing supervisor" means the person appointed by the director of finance to hold the position of purchasing supervisor.
"Purchasing Officer" means the Director of Administrative Services or his or her designee. All references in this Chapter to "Purchasing Supervisor" shall be read as references to the Purchasin@ Officer. Where this Chapter requires the approval of the Director of Administrative Services in addition to action by the Purchasing Officer, that approval shall be given by the Director personally or by a designee other than the person who authorized the purchase.
"Purchase order" includes: (a) a standard written purchase order; (b) a "blanket purchase order," meaning a written authorization with a vendor for releases on an as-needed basis under a fiscal-year cap; and (c) a "field purchase order" for low-dollar purchases completed within a short timeframe. Dollar thresholds, fiscal-year caps, and procedural requirements for each type are specified in the Administrative Purchasing Policies and Procedures issued under Section 1.54.110.
"Reverse auction" means a competitive online procurement event in which pre-qualified bidders submit successively lower bids for specified commodities over a defined period, with award made to the lowest responsive and responsible bidder or on a best-value basis as stated in the solicitation. "Risk Manager" means the employee designated by the City Manager to administer the City's risk management and insurance program, or that person's desiznee.
"Sole source" means a procurement from the only known source capable of providing the required supplies, equipment, or services, documented by a written justification approved in accordance with Section 1.54.510. "Uniform Public Construction Cost Accounting Act" or "UPCCAA" means the Act set forth at Public Contract Code q 22000 through 220'l5, which provides an alternative method for the bidding of public projcctr,, maintenance work, and any other conr,truction work, including that which does not fall within the dcfinition of a public projcct.22045.

1.54.030 Changes to dollar limits.

In thc cvcnt that any dollar amounts or monctary limits specified in the Uniform Public Construction Cost /\ccounting /\ct or clr,cwhcrc in the Government Codc or Public Contract Code arc amended by the state legislature or adjusted by the state controller, and if such amendment or adjustment affcctr, the subject matter of this chapter, then this chapter shall be deemed automatically amended to include any such revised dollar amountr, or monetary limits.
63 72
A. State-Law Threshold Updates. State-law dollar thresholds expressly incorporated by reference in this Chapter (including those in the Uniform Public Construction Cost Accountin@ Act and elsewhere) shall be applied as amended from time to time, without further Council action.

B. Annual Inflation Adjustment. As part of the annual budget process, the Director of Administrative Services shall calculate an inflation adjustment equal to the percentage chance in the GDP Implicit Price Deflator for State and Local Government Consumption Expenditures (BEA NIPA Table 1.1.9) for the four quarters ending December 31 of the prior calendar year, not less than zero percent (0%) and not more than three percent (3%), and shall present it to the City Council. If the City Council adopts the adjustment by resolution, it applies to every dollar amount stated in this Chapter, rounded to the nearest one thousand dollars (Sl,000), except (1) the fifty thousand dollar (550,000) formal bidding threshold in Sections 1.54.310, 1.54.320, and 1.54.486, which may be chanted only by ordinance, and (2) amounts set by state or federal law, which are @overned by subsection (A).

Amounts remain unchanged in any year the City Council does not adopt a resolution. The Director of Administrative Services shall publish the amounts then in effect in the Administrative Purchasing Policies and Procedures.

1.54.040 Matters pertaining to housing authority, redcvclopment successor agency, utility authority, public financin@ authority, or other bodies.

To the extent that this chaptcr requires the approval of the city council to the execution or modification of any contract, the term "city council" shall have the following specialized mcanings in the following specialized circumr,tanccs:

A. With respect to contractr, pertaining to public housing or publicly asr,iztcd hour,ing mattcrr,, the term "city council" shall mean the city council sitting as the governing board of the hour,ing authority of the city of South B. With respect to contractr, pertaining to rcdcvclopmcnt agency matters, the term "city council" shall mean the city council sitting as thc governing board of the city of South Gate community rcdcvclopmcnt agcncy.

C. With respect to contracts pertaining to sewer and water facilities, the term "city council" shall mean the city council sitting as the governing board of the utility authority of the city of South Gatc.

D. With respect to contractr, pertaining to any othcr matter as to which jurisdiction has been granted by the city council to a city agency, authority or commission, the term "city council" shall mean the city council sitting as the (;ovcrnin@ body of that agency, authority or commission.

References to "City Council" include the governing board of the applicable City body when that body is acting on matters within this Chapter, includin@ the Successor Agency to the former Community Development Commission/Redevelopment Agency, the South Gate Housing Authority, the South Gate Public Financing Authority, the South Gate Utility Authority, and any other commission, agency, or board established by the City Council.

1.54.050 Conflicts with state law.and federal law; federal grant procurement compliance.

To the extent that anything in this chapter conflict, with any provision of state or federal law, then such state or federal law shall prevail and control with respect to the subject matter of the conflict. To the extent any such conflicting provision of this chapter can be interpreted !.,O as to avoid the conflict, then that interpretation shall be applicd. If any section, sub,action, subdivision, paragraph, zcntcncc, clause or phrase of this chapter is for any reason held to be unconstitutional or invalid or incffcctivc by any court of competent jurisdiction, ruch 64 73
decision shall not affect the validity or cffcctivcnczz of the remaining portions ofthis chapter or any part thereof. Thc city council hereby dcclarcs that it would havc parried each section, subsection, subdivision, paragraph, zcntcncc, clause or phrase of this chaptcrirrc=;pcctivc of the fact that one or more section!,, subsections, zubdivizionr,, paragraph;, sentences, clauscs or phrases be declared unconstitutional or invalid or incffcctivc. To this end the provisions of this chapter arc declared to be scvcrablc.

A. To the extent any provision of this chapter conflicts with State or Federal law, the State or Federal law shall control. Conflictinz provisions shall be interpreted, if reasonably possible, to avoid conflict. Severability applies to all provisions.

B. Federal grant procurement compliance. When expendinz funds from federal awards, the City shall comply with the procurement standards of 2 CFR §§ 200.317 through 200.327 (Uniform Administrative Requirements), awarding-agency-specific regulations, and any zrant-specific terms. Without limitin@ the foregoing, the City shall observe:

1. The federal methods of procurement (micro-purchase, small purchase, sealed bid, competitive proposals, and noncompetitive) and the applicable federal thresholds, which supersede the thresholds in this Chapter when they are more restrictive;

2. Full and open competition, includinz any federal or funding-source restriction on local or zeographic preferences and the requirements of 2 CFR § 200.319 (which identifies practices that may restrict competition), which may require the PurchasinH Officer to suspend the local business credit under Section 1.54.340 for federally funded procurements;

3. Required contract clauses identified in 2 CFR 200 Appendix II (includin@, where applicable, Equal Employment Opportunity, Davis-Bacon, Copeland Anti-Kickback, Contract Work Hours and Safety Standards, Byrd Anti- Lobbyinz, debarment and suspension certifications, and domestic preference certifications under Build America, Buy America where applicable);

4. Documentation of the procurement history and cost or price analysis sufficient to support federal audit; and

5. Any awarding-agency requirements that are more restrictive than this Chapter, which shall control.

6. When the procurement method or threshold required by this Chapter is more restrictive than the federal method or threshold, this Chapter controls. When the federal method or threshold is more restrictive, the federal requirement controls. The Administrative Purchasing Policies and Procedures shall include a method- mapping reference identifyinz the correspondinz federal procurement method for each procurement method authorized by this Chapter.

When required by applicable federal program legislation, the terms of the federal award, or awardinz-agency requirements, prime contracts in excess of !>2,000 for the construction, alteration, or repair of public buildings or public works shall comply with the Davis-Bacon Act (40 u.s.c. §§ 3141 through 3144, 3146, and 3147) and implementing rezulations, and shall include the contract clause required by 2 CFR 200 Appendix 11(D), irrespective of any higher threshold otherwise applicable under this Chapter. Davis-Bacon does not apply to every federally funded construction contract; applicability shall be confirmed azainst the award terms and documented in the procurement file.

7. Affirmative steps for small, minority, women, veteran-owned, and labor surplus area businesses. For federally funded procurements above the federal micro-purchase threshold, the City should take the socioeconomic affirmative steps encouraged by 2 CFR § 200.321 to consider small businesses, minority business enterprises, women's business enterprises, veteran-owned businesses, and labor surplus area firms when possible. Nothing in this paragraph imposes a requirement more restrictive than the applicable federal standard. 65 74

8. Conflicts ofinterest. For federally funded procurements, the City shall maintain and apply written standards of conduct addressing conflicts of interest in the selection, award, and administration of contracts, consistent with 2 CFR § 200.318(c) and Section 1.54.055 of this Chapter.

1.54.055 Standards of Conduct; Conflicts of Interest; Gratuities.

This Section supplements, and does not replace, the conflict-of-interest and ethics requirements imposed by Government Code § 1090, the Political Reform Act (Government Code §§ 81000 et seq.), the regulations of the Fair Political Practices Commission, the common law conflict-of-interest doctrine, the City's conflict-of-interest code adopted under the Political Reform Act, and applicable federal requirements includin@ 2 CFR § 200.318(c).

A. City elected officials, appointed officials, board and commission members, officers, employees, and agents involved in the selection, award, or administration of contracts (includin@ federally funded contracts subject to 2 CFR § 200.318(c)) shall avoid any real or apparent conflicts ofinterest. No person covered by this subsection shall participate in the selection, award, or administration of a contract supported by City or federal funds if a real or apparent conflict ofinterest would be involved. Such a conflict arises when an employee, officer, official, or board or commission member, or any member of their immediate family, has a financial or other interest in, or receives a tangible personal benefit from, a firm considered for a contract. For purposes of this Section, "immediate family" means spouse or rezistered domestic partner, parent, child, siblinH, parent-in-law, child-in- law, or sibling-in-law, whether biolozical, adoptive, or by marriage.

B. City elected officials, appointed officials, board and commission members, officers, employees, and agents shall not solicit or accept gratuities, favors, or anything of monetary value from present or prospective contractors or subcontractors that could reasonably be perceived to influence a procurement decision.

C. Violations of this Section are subject to disciplinary action and may result in remedies up to and including contract termination, disqualification, or debarment consistent with applicable law.

D. Organizational Conflicts of Interest (OCI). A person or firm that prepares specifications, statements of work, or solicitation documents for a particular procurement shall not compete for that procurement, unless the City determines in writing that adequate safeguards have been implemented to neutralize or mitigate the conflict consistent with applicable law and fundinz-source requirements. The Administrative Purchasing Policies and Procedures shall include the standard organizational conflict-of-interest guidelines required of local agencies using desizn-build or progressive design-build delivery under Public Contract Code §§ 22160 et seq., 22170 et seq., and 22185 et seq.

E. Debarment and Suspension. The City may debar or suspend a vendor, contractor, or consultant for cause, including, but not limited to, fraud, collusion, a criminal offense in connection with obtaining or performing a public contract, significant or repeated performance failures, or serious ethical violations. The procedures, notice, and appeal rights for debarment or suspension shall be established by administrative policy consistent with applicable law.

1.54.056 Non-Discrimination.

All City contracts shall include non-discrimination requirements consistent with Federal and State law and City policy, prohibiting unlawful discrimination in employment and in performance under the contract. The Purchasinz Officer shall include standard contract languaze to implement this section. 66 75

1.54.057 Insurance, Bonds, and Risk Transfer.

A. Administrative policy. Minimum insurance, bonding, indemnity, and other risk transfer requirements shall be established by administrative policy issued by the City Manager or designee. The policy may establish tiered requirements based on the type of work, activity, or exposure presented, and may be updated administratively to reflect current standards, including guidance from the City's joint powers insurance authority and its risk program advisors.

B. Application. The policy applies to any contract, purchase order, professional services agreement, master service agreement, task order, construction contract, lease, license, permit, facility use agreement, special event authorization, or other agreement under which a person or entity provides @oods or services to the City, performs work on the City's behalf, or uses or occupies City property. The policy may provide risk-based exemptions for low-risk or de minimis transactions.

C. Higher requirements. A department may require limits or coverages hizher than the policy minimums based on the risk presented.

D. Condition precedent. No agreement subject to the policy shall be executed, no notice to proceed issued, and no work commenced or goods or services delivered, until the required insurance, endorsements, bonds, and other security have been submitted and verified as provided by the policy.

E. Waiver. A reduction, modification, or waiver of a requirement established by the policy is effective only if approved in writinz by the City Manazer, the Director of Administrative Services, or the City's Risk Manager, and retained in the file. A Department Director may not waive an insurance requirement.

F. Indemnity. Indemnity and defense provisions shall be drafted consistent with applicable law, includinz Civil Code §§ 2782 and 2782.8, and with the standard forms issued under the policy.

G. Bonds and other security. Bond requirements for public works contracts are governed by Section 1.54.490 and applicable state law. For all other agreements, the Purchasin@ Officer or the Risk Manager may require bonds, letters of credit, or other security based on the risk presented, as provided by the policy.

H. Administration. The City may use a third-party administrator to receive, review, and monitor certificates of insurance and related documentation. Use of an administrator does not transfer the City's approval or waiver authority.

1. Continuing compliance. Required coverage shall be maintained for the full term of the agreement and for any applicable completed operations or extended reporting period. A lapse is a material breach, and the City may withhold payment, suspend work, or terminate.
l.54.llOAppointment,authorityanddutiesof o PurchasmHOfficer.

The purchazing supervisor shall be appointed by the dircctor of finance.

The purchazing supervisor shall have authority, and is required to, pcrform the following duties:

A. Purchase and contract for all supplies, equipment and rcrviccz required by any cur,tomcr. Such purchasinq and contracting shall be done by the purchasing supervisor in accordance with: (i) purchazing procedures prescribed by this chapter, (ii) the administrative instructions for contracting professional and other services, (iii) such administrative regulations as the director of finance shall prescribe, and (iv) such other rules and regulations ,)!, shall bc prescribed by the director of financc or the city manager. Such duties and authorities shall include:
67 76

1. Negotiation of all purchase order, and other contracts (cxccpt for contracts cxcmptcd from centralized purchazinH pursuant to Scctionr, 1.54.210 through 1.5/1.230 of this chapter);

2. Execution of all contractr; (except for those exempted from centralized purcharinq purr,uant to Sections

1.5/1.210 through 1.5/1.230 of this chapter, which shall instead be executed by the person or pcrsonr, identified in those sections), and execution of all purchase ordcrs (includin(; those pcrtaininq to contracts which were exempted from centralized purchasing pursuant to said scctions); provided, however, that the following approvals arc required before the purchazing supervisor may execute any purchase order or other contract cqual to or greater than five thousand dollars:
a. Where formal bidding W,)!, required undcr Scction 1.5"1.310 of this chapter (purchases of supplies, equipment and scrviccs in amountr; cxcccding fifty thousand dollars) and not exempt under Section 1.5/1.510 or any other provision of this chapter, approval of the financc dircctor and the city council is required prior to the purchasing supervisor's execution of the contract or purchasc order, b. Whcrc informal bidding was authorizcd under Section 1.5/1.320 of this chapter (which, as it relates to this section, applicr, to purchases of supplies, equipment and services in amountr, between five thousand dollars and fifty thousand dollar;), approval of the finance director is required prior to the purcharinq supervisor's c><ccution of the contract or purchazc ordcr,
c. Where the formal bidding procedure under Section 1.5/t./1 /10 of this chapter was authorized (public projcctr,, maintenance work and similar construction contracts in amountr, cxcccding one hundred seventy five thousand dollar,), approval of thc city manager (or his or her dcsigncc) and thc city council is required prior to the purchazing supervisor's execution of the purchase order; and d. Whcrc the informal bidding procedure under Section 1.5/l./150 of this chapter War, authorized (public projects, maintcnancc work and similar construction contracts in amounts between forty five thousand dollars and onc hundred seventy five thousand dollars), approval of the city manaqcr (or his or her dcsiqncc) is required prior to the purcharing supervisor's cxccution of the purchase order.

B. When cxcrcizinq the duties set forth in subsection A of this section, the purchasing supervisor shall endeavor to procure such supplies and cquipmcnt at the lowest cxpcnsc possible, without sacrificing necessary quality; C. Dizcouraqc collusivc biddin(; in all cases, and encourage compctitivc bids where appropriate; D. Prepare, revise and rccommcnd to the director of finance rulcr, governing purchasing, maintaining an inventory, and warchousing of supplics and equipment of the city; E. Kctp informed of current dcvclopmcntz in the ficldr, of purchazing, prices, market conditions, and ncw F. Prescribe and maintain such forms as arc reasonably ncccsr,ary to the operation of this chapter and other related rules and rcqulationz;
G. Require and tx' responsible for the proper performance of inrpectionr, (including chemical and physical tar,ts where such tar,t arc reasonably necessary) of samples submitted with bid; and samples of deliveries to determine their quality and conformancc with specifications; H. P.ccommcnd the tranr,far of surplur, or unused supplies and equipment between customers as needed and the sale or othcr disposition of all supplies and equipment which cannot be used by any cur,tomcr or which have become ob',olctc or otherwise unsuitable for city usc; 68 77
I. Maintain the biddcrr,' list (c>tccpt for thosc portions of the bidders' list consistin@ of the lists that the public works director is required to maintain pursuant to Section 1.5/l./130 of this chapter), vendor; catalog file and records nccdcd for the efficient operation of the purchasing division of the department of finance; J. /\ppoint one or morc asr,irtant purchazing supervisors or acting purcharing rupcrvisorr, to carry out tht:i purchazin(; supervisor's duties in his or her abscncc; K. Perform such other duties and functions as may be assigned by the director of finance.

In the purchazing supcrvi=;or's abr,cncc, any and all duties of the purcharinq supervisor can be exercised by the director of finance, the city manager, or by any assistant purchasing supervisor or actinq purchazinq supervisor who has been appointed by the purcharing supervisor or the finance director.

A. Appointment. The Director of Administrative Services (Finance Director) is the City's Purchasing Officer and may delezate this authority.

B. Authority and duties. The Purchasing Officer shall: (1) purchase and contract for all supplies, equipment, and services required by any customer, in accordance with this chapter, approved administrative instructions, and other rules set by the Director of Administrative Services or City Manager; (2) negotiate and execute purchase orders and contracts, subject to required approvals; (3) utilize electronic solicitation and receipt of bids and proposals throuzh the city-approved e-procurement system; (4) seek best value without sacrificing necessary quality; (5) discouraze collusive practices and encouraze competition; (6) maintain required records and forms; (7) perform inspections and testing as needed; (8) recommend transfers and disposition of surplus; (9) maintain bidders' lists (except as provided in Section 1.54.430); and (10) perform other assigned duties. Approval routing by dollar level is @overned by Sections 1.54.310 through 1.54.330, 1.54.350, 1.54.355, 1.54.370, 1.54.440 through 1.54.495, 1.54.610, and 1.54.810.

C. Public Notice; Electronic Methods. The City's website or designated e-procurement portal shall be the default method for issuinz notices invitinz bids, requests for proposals or qualifications, and for receiving electronic sealed bids or proposals, except where print publication or additional methods are required by law or determined by the Purchasing Officer to be advantageous to the City.

D. Electronic Siznatures. The Purchasin@ Officer may execute contracts, purchase orders, and related procurement documents usinz electronic signatures with the same lezal effect as handwritten signatures, consistent with the California Uniform Electronic Transactions Act (Civil Code § 1633.1 et seq.) and applicable federal law.

E. Actin@ authority. In the PurchasinH Officer's absence, these duties may be exercised by the City Manager or a duly appointed desi@nee.

F. Administrative Purchasinz Policies and Procedures. The Director of Administrative Services may issue and update Administrative Purchasing Policies and Procedures implementing this Chapter, including solicitation templates, electronic procurement, emergency purchasing practices, documentation standards, bid protests, debarment and suspension procedures, cooperative purchasing certifications, and procedures for verifying insurance and bonds. Where those procedures and the policy issued under Section 1.54.057 differ as to required coverages, limits, endorsements, or indemnity terms, the Section 1.54.057 policy controls.

1.54.120 Requests (requisitions) to purchasing rupervisor the rlurchasing Officer by city departments and personnel that the city purchase supplies, equipment and services.

Customers shall submit rcqucsts (requisitions) for supplies, cquipmcnt and services to the purcharinq supervisor u;ing standard purchase requisition procedures utilizcd by the purchasing department. Requisitions arc ured to 69 78
inform the purchasing supervisor of the nccds of a rcqucr,ting cur,tomcr, to identify and define thc material and/or service being rcqucztcd, to provide a record of requested item;, to encumber funds, and to obtain ncccs';ary approvals. Rcquisitionz may be submitted in the following manner:

A. Standard requisition provides vital information required before an order may be placed, and ultimately rcprcscnt, the authorization for a purchase order to be issued; B. Stock requisition provides information to proccs', an order for items in the warchour,c; C. Supplier requisition onlinc order directly with the vcndor, set up by contract pricing, security approvals through the purchasing supervisor.

The purchasing dcpartmcnt is authorized to revise requisitions and estimates JZ to quantity, quality, or crtimatcd cost, within the limitations s:'t forth in this chapter. If the purchazing department reviser, any requisition, however, thc purchazing dcpartmcnt shall obtain the requesting customer'; approval of thc rcvisionr before placing any ordcrs to fill the requisition.

Requisitions shall follow the procedures established in the Administrative Purchasing Policies and Procedures issued under Section 1.54.110, which may be electronic. The Purchasin@ Division may revise operational procedures for requisitions within the limits of this Chapter, with concurrence of the requesting customer.

1.54.130 Centralized purchasing: all city purchases of supplies, equipment and services must be made by purchazing supcrvizor,the Purchasing Officer.

Unlcrs spccifically exempted under Scctionz 1.54.210, 1.5/1.220, 1.5/1.230 or 1.5/1.2/10 of this chapter, all purchases of supplies, equipment and zcrviccz to bc madc by the city shall be done exclusively by mcanr, of written contracts entered into by the purchasing supervisor on behalf of the city. The form of those written contracts may includc, without limitation, any purchase order, field purchase order, or blanket purchase ordcr.

The City maintains a centralized purchasinz program within the Administrative Services Department for the procurement of supplies, equipment, and services, except as otherwise provided in this Chapter or by law.

All purchases shall be made throuzh a written contract executed by the Purchasin@ Officer, unless explicitly exempted under Sections 1.54.210-1.54.240. Written contract forms include purchase orders (including electronic forms), field purchase orders, and blanket purchase orders.

1.54.140 Funding of purchases.

The purchasing supervisor A. Budzet appropriation required. No purchase order or contract shall not authorize or issue a written contract for supplies, cquipmcnt or services be issued under this Chapter unless there eis a sufficient unencumbered appropriation in the budget fund account against which the purchase is to be charged. The Purchasing Officer shall not authorize or issue a contract that exceeds available appropriations.

B. Department certification of funding eligibility. Where a purchase is to be charged in whole or in part to a restricted fundin@ source - includinz federal awards, state awards, @rant funds, capital improvement project funds, bond proceeds, enterprise fund revenues, or any other revenue or appropriation subject to use restrictions - the requesting department shall, before the requisition is approved, certify in writing that the purchase complies with the eligibility, allowable cost, scope, and use restrictions of the applicable funding source. Verification of available budget appropriation by the Purchasing Officer, the Department of Administrative Services, or Finance staff is limited to the existence of sufficient unencumbered appropriation 70 79
under subsection (A) and does not constitute a determination of program eligibility, cost allowability under applicable federal cost principles (includinz 2 CFR Part 200 Subpart E), zrant-specific allowable use, or compliance with bond covenants or other funding-source restrictions. Responsibility for those determinations rests with the requesting department, the project manager, and the department head approving the requisition.

The Administrative Purchasing Policies and Procedures shall implement this subsection, including the certification form, list of fundin@ sources that tri@@er the requirement, escalation procedure for concerns identified by Finance staff, and record retention consistent with applicable federal, state, and grant-specific retention requirements.

1.54.165 Anti-splitting.

Purchases and contracts shall not be split, separated, or otherwise structured to evade the competitive thresholds, approval requirements, or any other provision of this Chapter. Aggregated needs for substantially similar goods or services within a fiscal year shall be considered in determining the applicable method of procurement.

Notwithstanding the foregoing, the Purchasing Officer (or the Public Works Director for public works) may divide a procurement into separate lots or scopes when doin@ so is economically feasible and would expand competition or participation by small businesses, minority business enterprises, women's business enterprises, labor surplus area firms, or qualified South Gate businesses, consistent with 2 CFR § 200.321(b)(3).

Documentation of the rationale shall be included in the procurement file.

1.54.210 Exceptions from centralized purchasing for certain recurring expenses, maintenance expenses, real estate expenses, and minor one-time expenses.

Payments for the : following goods, scrviccr, and property rights one time payments are exempt from the general rule cstablirhcd by Scction 1.5"1.130 of centralized purchasin@ under this A. Paymcnt of monthly utility bills (including without limitation telephone, clcctricity and water bills), where the initial agreement for service bctwccn thc city (or customer) and the utility provider pursuant to which the bills arc issued was approved by the director of finance or the city council; B. Payment of monthly, annual or oth:'r periodic rental, lease or installment payments under cquipmcnt leases, personal property rental .:igrccmcnts, or other written contractr, for the u;c of goodr,; provided, however, that those Icascr,, agreements and contracts: (i) do not pertain to public projcctr, or maintcn,:incc work, and (ii) ware approved by the director of finance or thc city council; and provided further that if any such IC!.'l!,Cl, .:igrccmcnt or contract calk; for an initial payment upon the city's execution thereof, then that initial payment must be made by the purchasing supervisor pursuant to a purchase order undcr Section 1.54.130 of this chapter; C. r'aymcnt of monthly, annual or othcr pcriodic subscription installmcntr, for ma(;azincz, ncwr,papers, journals, Icqal and governmental publications, printed or electronic information scrviccs, and other pcriodicals and similar subr,criptions, provided that the initial purchase of the corrcspondinq periodical, publication or service was previously approved by the appropriatc city body, officer or department; D. Payment of monthly, annual or other pcriodic insurancc premiums, where the city'r, (or cur,tomcr'r,) purchasc of the insurance policy for which such prcmiums arc due W.'l!, approved by the director of finance or the city E. Payment of monthly, annual or other periodic installments under maintenance agrccmcnts and scrvicc contractr, (including without limitation those for pest control, I.:indrcapin(;, security, hcatin(; and air conditioning 71 80
repair, and computer/information technology support), where the contractr, pursuant to which such paymcntr, arc made (i) were entered into in accordance with and contain language required by the adminirtrativc instruction for contracting profcssional and other services prepared by the city managar, and (ii) were approvcd by the purchazing supervisor, the director of finance, the city manager or the city council; F. /\ny inr,tallmcnt or lump sum paymcnt for thc purchase or Icaze of real property, or for the acquisition of casement rightr, or similar property rights, where the purchase agreement, lease, rental contract, casement dccd or other written contract pursuant to which that payment is made was approved by the city council; G. Payment of monthly, annual or other periodic dues for professional ar',ociationz, civic org:iniz:itionr and other groups, whcrc mcmbcrr,hip therein by the city or any of its officers or employees W:I!!, prcviour,ly approved by thc appropriate city body, officer or department;
H. Payment of fccs for participation by any city officer or employee in any seminar, workshop or similar training cour,c or zcrsion pertinent to that officer's or employee's duties, where such scmin:ir, workr,hop, course or scr,sion was prcviour,ly approved by the appropriate city body, officer or department; I. Payment or rcimburscmcnt of travel expenses for city council members, city officers, city employees or city consultantr,, whcrc thc related travel was previously approved by the appropriate city body, officer or J. r)aymcntr, to the county of Loz /\nqclcs or to other local, state or federal government entities for services rcndcrcd to the city under contracts authorized in accordance with the procedures sat forth in this chapter; and K. r)aymcntr, for commoditicr, obtained with a procurcmcnt card or credit card and approved by the dircctor of finance in compliance with the terms and conditions set forth in the purchazing divir,ions purcharing policy.

A. Utility payments (water, electricity, Has, telecommunications, internet, refuse).

B. Lease and rental payment installments under existinz lease or rental agreements.

C. Subscription fees (publications, software-as-a-service, online services, professional databases).

D. Insurance premium payments.

E. Maintenance contract installment payments under existing maintenance agreements.

F. Real property acquisitions and dispositions handled under separate authority.

G. Memberships in professional associations and intergovernmental organizations.

H. Traininz and conference registration fees.

1. Travel reimbursements consistent with City travel policy.

J. Intergovernmental service payments and inter-agency reimbursements.

K. Procurement-card commodity purchases approved under standards set by the Director of Administrative Services.

L. Court-ordered payments, judgments, settlements, and statutory fees.

M. Minor one-time expenses at or below the open-market threshold under Section 1.54.330.

The exemption applies to payments under an existinz contract that was competitively procured or otherwise authorized. A new contract, a renewal that creates a new term beyond the original contract, or a material increase in price or scope shall be procured under the applicable provisions of this Chapter. 72 81

1.54.220 Exemptions from centralized purchasing for purchases of professional services. /\11 profcssional services to bc performed for any cur;tomcr shall be procured through a dcccntralizcd procedure.

Contracts for such profcsr,ional services shall not be cntcrcd into by the purch.:ising supcrviror, but shall instead be entered into directly by the customer for whom such profcsr,ional services arc to be provided. The customcrr,' right to enter into such dircct contracts is, however, subject to the administrative instructions for contracting professional and other scrviccs (available from thc purchasing department), and to any other rules or rcgulations now or hcrcaftcr t';tablishcd by the city manager.

Following the initial cxccution of any such contract, any purchase order subr;cqucntly needed in connection with the contract shall (unlcr,s otherwise exempted from ccntralizcd purchazing by Section 1.5/l.:210 of this chapter) be cxccutcd by the purchasing supervisor.

Subjcct to the foregoing, each customer is authorized to exercise the city's rights purr,uant to Govcrnmcnt Codc Sections 37103 and 53060 to contract with any person, firm or corporation for special services and advice in financial, economic, accounting, cnqinccring, legal, or administrative m.:ittcrs, if such pcr=;on, firm or corporation is specially trained and cxpcricnccd and competcnt to perform the special services rcquircd.

A. Professional services are procured through decentralized procedures by the customer, subject to the Administrative Purchasing Policies and Procedures issued under Section 1.54.110(F) and this chapter.

B. Qualifications-based selection applies where required by state law.

C. Except where an authorized exemption applies, professional services with an expected total cost exceeding fifty thousand dollars shall be competitively solicited (e.g., RFQ/RFP) using criteria appropriate to the service type; selection shall be based on qualifications, experience, and best value, including price where appropriate.

D. When federal or other restricted funds are used, the competitive method prescribed by the funding rules shall govern.

1.54.230 Exemptions from centralized purchasing for contracts for public projects, maintenance work, or other construction
Contracts for the construction of public works, contracts for the performance of maintenance work, or contractr; pcrtaining to construction, repair or maintenance of facilities, or any other contracts which may be bid using thc proccdurcr, set forth at Sections 1.5'l."110 through 1.5/l./190 of this chapter shall be exempt from centralized purchazinH. Following the initial execution of any such contract, any purchase orders subsequently nccdcd in connection with the contract shall (unless otherwise exempted from centralized purchasinq under Scctionr,

1.5/1.210 of this chapter) be cxccutcd by the purchasing supervisor.

Public works, maintenance, and construction contracts continue to be procured by the Public Works Director under Sections 1.54.410-1.54.495. Subsequent purchase orders are issued by the Purchasing Officer unless otherwise exempt.

1.54.240 0ther exemptions from centralized purchasing.

The purchasinq supervisor, with approval of the director of finance, may authoriz:', in writing, any customer to purchazc and contract for specified supplies, equipment and services independently of the purchazin(; division; but the purchasing supervisor shall require that such purchases and contracts be made in conformity with the procedures established by this chapter, and shall further require periodic reports from the customer on the purchascr, and contractr, made under such written authorization. 73 82
Following the initial purchase or contract, any purchase order subsequently needed, shall, (unlcsr, othcrwizc cxcmptcd from centralized purchasinH by Section 1.5/1.210 of this chapter), be executed by the purchazing With Director of Administrative Services approval, the Purchasinz Officer may authorize a customer to purchase specified items independently, subject to this chapter and periodic reportinz.

1.54.310 Formal bidding procedures for city purchases of supplies, equipment equipment, and g services exceeding fifty thousand dollars.

All purchases of supplies, and serviccs made by the city as to which the with a purchase price or estimated valuc cxcccds fifty thousand dollarr, cxcccdin@ §50,000 (other than rclativc to public projects, maintenance work, and other contracts and purchases made pursuant to services governed by Section 1.54.350, or those governed by Sections 1.54.410 through 1.5/l./190 of this chapter

1.54.495 or otherwise from bidding requirements under this shall be made by means of the formal bidding procedures below. Awards shall be made to the lowest responsive and responsible bidder unless best-value award is authorized under Section 1.54.315.

A. r)rcparation of riJoticc Invitinq Bids. invitin@ bids. The purchasing supervisor Purchasing Officer (or customer, where dcccntralizcd purchazinq is authorized under Sections 1.5V1.210, 1.5"1.220, 1.5"1.230 or 1.5/1.240 of this chapter) shall prepare for publication a notice inviting sealed bids. The noticc shall include a general description of bids (includinz electronic sealed bids), describinz the articlcs to be purchascd, shall state wherc bid forms and specifications may be documents are obtained, and shall specify the time and place (physical or electronic) for opening bids. The notice must also include the allowancc for local vendor preference pursuant to Section 1.5/1.350 of this chaptcr, if that is to be considcrcd.

B. Publication of Notice. The notice inviting bids shall be published by the purchazing supervisor (or by thc customer who prepared thc notice, in the case of dcccntralizcd purchazing) at least ten days before the date of thc opening of thc bids. The notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is no such ncwr,paper, the notice shall be posted in at least three public places in the city that have been designated by ordinance J!, the placer, for posting public noticcr,.

C. Solicitation of Bids from those Named on Bidders' List. The purcharing supervisor (or customer, in the case of dcccntralizcd purchasing) shall also solicit scaled bids from responsible prospective vendor, or suppliers whose namcr, arc on the biddcrr,' list or who have rcqucr,tcd their names to be added thereto.

D. Submission of Scaled Bids. Bids shall be submitted to the office of the city clerk (or such other location zpccificd in the notice inviting bids) in scaled envelopes. The outside of the envelope shall identify the contents as a bid by rcfcrcncing the bid number or other identifying information required by the notice inviting bids and corrtr,ponding information for bidder, prepared by the city. Bitj; submitted to a location other than that specified in the notice inviting bid;, or bids submitted after the time specified in the notice inviting bids, shall be returned unopcncd.

B. Publication and posting. The notice shall be posted at least once, not less than fourteen (14) calendar days before bid opening, on the city's website or e-procurement portal, which is the primary method of notice under Section 1.54.110(C). The Purchasinz Officer may additionally publish the notice in a newspaper of general circulation within the City where required by law or where the Purchasinz Officer determines that publication is advantageous to the City.

Direct notice shall also be provided to vendors on the bidders' list and others who request it. 74 83
C. Submission of sealed bids. Bids shall be submitted to the City Clerk (or as specified) either (1) in sealed envelopes clearly identified, or (2) electronically through the city's e-procurement system. Late or misdelivered bids shall be returned or rejected unopened; electronic submissions shall follow system time-stamp controls.

E. Bid Opcninq Procedures. D. Public openin@ and tabulation. Bids shall be opened by the city clerk, in public, a at the noticed time and place stated in the notice inviting bids. /\ tabulation shall be emade available for public inspection in the office of thc city dcrlt during regular busincsr, hefor a pcriod of not Icss than thirty calendar days after the bid opening.

E. Award. The City Council shall award to the lowest responsive and responsible bidder or as otherwise authorized by this chapter. Bid security, performance, and payment bonds may be required as specified.

F. Rejection of Bid,. In itr, discretion, the city council may reject any and all bids prior to or followin@ the opening G. /\w,:ird of Contracts. The city council sh,:ill award a contract to the lowest rcrponsivc and responsible bidder, pursuant to findings and recommendations presented by the purcharing supervisor (or his or her dczigncc) at the timc of award of contract=; that arc subject to this section.

H. Bidder,' Security. When dccmcd ncccssary or appropriate by the purcharing rupcrvisor (or by the customer who prcparcd the noticc invitinq bids, in thc case of dcccntralizcd biddin(;l bidder'r security may be prcr,cribed in the public noticc inviting bid,. Bidders shall be entitled to the return of their bid security; provided, that a succcsr,ful bidder shall forfcit its bid security upon refusal or failure to c><acute the contract within twenty days aftcr the notice of award of contract has bccn mailed, unless thc city is rcspon=;ible for the delay. The city council ma,5 on rcfus,:il or failure of the successful bidder to cxccutc the contract, award the contract to the next lowest rcr,ponsiblc and responsive bidder. If the city council awards the contract to the next lowest bidder, thc 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.

I. Tie Bids. If two or more bids rcccivcd arc for tm samc total amount or unit price, quality and service being equal, and if the public intcrcst will not permit thc delay of re advcrtizin(; for bids, thc city council may: (i) accept either bid, or (ii) accept the lowest bid made by and after negotiation and rabid with the ticd vendors.

J. Payment (Material) and Performance Bonds. The purchasing supervisor (orthc customer, in the case of dcccntralizcd purchazing) shall have authority to require payment (material) and performance bonds before cntcring a contract in such amount JZ the purchasing supervisor (or customer) dcamz rcaronably necessary to protect the bczt intcrcr,ts of thc city. If a paym:'nt or performance bond is required, the form and amount of the bond shall be described in thc noticc inviting bids.

F. Tie bids; rejection; other procedures. As provided elsewhere in this chapter.

1.54.315 Best-value awards and reverse auctions.

A. Best-value awards. For purchases of supplies, equipment, or zeneral services under Sections 1.54.310 or

1.54.320, the Purchasing Officer may recommend award on a best-value basis rather than to the lowest responsive and responsible bidder, provided that:

1. The solicitation clearly states that award will be made on a best-value basis and identifies the evaluation criteria and their relative weights;
75 84

2. The evaluation criteria may include unit cost, total cost of ownership, operating efficiency, quality and warranty, compatibility with existin@ City systems, maintenance costs, past performance, contractor experience and responsibility, delivery schedule, and other factors reasonably related to the City's interests;

3. Price or cost shall be a weighted evaluation factor; and

4. The Purchasing Officer prepares and retains a written evaluation summary documenting the basis for the award recommendation.

B. Reverse auctions. The Purchasin@ Officer may conduct a reverse auction for commodities or other items suitable for such a method, provided that:

1. All participants are pre-qualified under a publicly issued solicitation;

2. The auction is conducted through the City's e-procurement system or an approved third-party platform with a documented audit trail; and

3. Award is made to the lowest responsive and responsible bidder at close of the auction, or on a best-value basis consistent with subsection (A) if so stated in the solicitation.

C. Reverse auctions shall not be used for public projects, professional services, or any procurement where prohibited by the terms of the funding source.

D. This Section does not apply to Public Works procurements governed by Sections 1.54.410 through 1.54.495.

E. Best-value award methods shall not be used where State law, Federal law, or the terms of the funding source require award to the lowest responsive and responsible bidder. For federally funded sealed bidding under 2 CFR § 200.320, award shall be to the lowest responsive and responsible bidder unless competitive proposals are used.

1.54.320 Informal bidding procedures for city purchases of supplies, equipment, and services between two a><ceediriB three thousand dollars and fifty thousand dollars.

Purchases under this Section are subject to Section 1.54.165 (Anti-splitting).

Purchases of supplies, cquipmcnt and gservices at-with a price or estimated value greater than two thousand dollar, but not grcatcr !>3,000 and up to and including S50,000 (other than a professional services zoverned by Section 1.54.350, or those governed by Sections 1.54.410 through 1.54.495) may be made using the informal bidding procedures prer,cribed by of this section rather than Section in lieu of the formal bidding procedures of Section

1.5/1.310 of this chaptcr..

A. Ncccrsary Requests and /\pprovals. For purchases of five thousand dollar; or less, the informal proccdurcs established by this section may be used by the purchazing supervisor or requesting cu,tomcr upon receipt of a purchase requisition executed by a department manager. For purchases greater than five thousand dollars but IC!!,!, than or equal to fifty thousand dollars, the written approval of the director of finance is Jl!,O required before the informal proccdurcs established by this section may be used.

B. Solicitation of Written Quotations. When the purchasing rupcrviror is authorized to make purchases pursuant to the informal bidding procedures established by this section, the purchasing supervisor shall obtain at least thrcc written quotationr, from commercial, publig or othcr open market vendors. 76 85
A. Approvals. A department manager's approved requisition authorizes use of the informal procedures for any purchase over S3,000 up to and includin@ 525,000. For purchases greater than !>25,000 and up to !>50,000, the written approval of the Director of Administrative Services is also required prior to award.

B. Quotations. The Purchasing Officer shall obtain at least three written quotations (email quotes acceptable) from vendors in the open market. Where reasonable, at least one quote should be solicited from a local business. Records shall be kept for not less than three (3) years after final payment, zrant closeout, or project closeout, or longer as required by the City's records retention schedule or a fundin@ source.

C. /\ward of Contract. Following receipt of at Icast three such informal bid;, the purchasinH supervisor /\ward.

Subject to Section 1.54.315, award shall award the contract bc to the vendor offering the most advantageous best value to the city after consideration of price, quality, durability, service, t-standardization, and aother factors dccmcd ncccsr,ary by rclcvant factors. Where state law, federal ,laworthc purchazing supervisor terms of the fundinz source requires award to thc bcst valuc for the eJlowest responsive and responsible bidder, award shall be made on that basis.

D. Copies of Written Quotations. /(II written quotations required under this section shall be submitted to the purchazing supervisor (his or her dcsigncc), who shall kccp copies (and other records deemed ncccssary or dcr,irablc by the purchasing supervisor) of thosc quotationr, and contracts for a period of two years after submission of quotations or the execution of contracts. Thcr,c copies and record;, while kept, shall be opened to public inspection, upon writtcn request to the purchazing supervisor, except that vendor proprietary data shall not be opened to public inspection.

1.54.330 0pen market purchases without formal or informal bidding for amounts of three thousand deUaxdollars or less.

Purchases of supplies, cquipmcnt and scrviccz for a purchase price of, or havinq an estimated value IC!!,!, than, two thou,and dollars arc exempt from both formal and informal bidding requirements. Such purchases may be made by the purchasing supervisor on the open market with three verbal quotations, or by private ncqotiatcd !,JICI without rcr,triction, subject to the rcquircmcntr, of Scctionr, 1.5/1.110(B) and (E) of this chaptcr.

Purchases of 53,000 or less are exempt from formal and informal bidding. The Purchasin@ Officer or requestin@ department shall seek reasonable pricin@ commensurate with the purchase. At a minimum, the Purchasin@ Officer or requestin@ department shall make a documented price check or obtain informal quotes where practicable, and shall retain documentation in the procurement file consistent with administrative policy and the City's records retention schedule.

1.54.340 Local business credit.

A. Rule. In determining the lowest responsive and responsible bidder under Section 1.54.310 e!Al# chapter (formal bidding procedures), or the lowest rcsponsiblc most advantageous vendor pursuant to Section 1.5/1.320 of this chapter (informal biddin@ procedures), the purchasing rupcrvizor shall bc authorized to g-1.54.320, a bid evaluation credit of five percent of the bid price or quotation shall be applied to a local busincrr, for purchascs and projccts that do not c>tcccd three hundred thour,and dollars. If such meets the eligibility requirements of this Section, provided that the solicitation expressly states the credit is the do!lar or percentage amount thereof available. The credit shall be applied for purposes of evaluation only and shall not reduce the contract price payable to the awarded local business. The City Council may, by resolution sct forth in the notice inviting bid, or in the request for quotations. The purchazing supervisor shall 77 86
B. Cap. The local business credit shall not apply to purchases or projects with a total estimated value exceeding 5250,000. The credit, when applied, shall not exceed five percent (5%) of the bid price or quotation.

C. Exclusions. The local business credit shall not apply:

1. To public works as defined by state law;

2. To procurements funded in whole or in part by any source where the fundin@ source restricts @eo@raphic preferences, including federal awards governed by 2 CFR § 200.319, or where application of the credit would be inconsistent with the socioeconomic affirmative steps described in 2 CFR § 200.321; or

3. To any other category identified by administrative policy issued under Section 1.54.110.

D. Certification. A bidder seeking the credit shall complete the City-provided Local Business Certification form.

The Purchasinz Officer may verify certifications against the City's business license records.

E. Small & Local Business Prozram. The City Council may by resolution adopt a race- and @ender-neutral Small & Local Business Program establishing detailed bid preferences, evaluation points, participation goals, or reporting requirements consistent with applicable law. Such program shall be implemented by administrative policy.

1.54.345 Local subcontracting on larger contracts.

On contracts with an estimated total value of 5500,000 or more, the City strongly encourages prime contractors and proposers to make good-faith efforts to subcontract with qualified South Gate businesses where feasible and consistent with the scope of work. Solicitations subject to this Section shall invite proposers to submit a Local Business Participation Plan describinH anticipated local subcontractin@, outreach to local subcontractors, and unbundling of scopes where appropriate. The Local Business Participation Plan is encouraged but not required, and failure to submit one shall not, by itself, render a bid or proposal nonresponsive. This Section shall not be applied in a manner inconsistent with federal zrant requirements or 2 CFR §§ 200.319 and 200.321 and applicable @rant terms.

1.54.350 Procedures for professional services.

The procedures .:l!, set forth in this chapter shall not apply to purchase orders or contracts for profcsr,ional or other s:irvia's. The city manager shall prepare an administrative instruction rcttinq forth the proccdurcs to be followed by all city departments in contracting for profczrional and other services, which proccdurer, shall be approved by the city council.
r)ur,uant to the authority qrantcd by Government Code Sections /1525 throuqh /1529.5, sclcction of profcsr,ional scrviccr, of private architectural, landr,cape architectural, engineering, environmental, land surveying, or conr,truction project management firms may be made on the basis of demonstrated competence and on the profcr,zional qualifications necessary for the satisfactory performance of the services required. The provider of such services shall be sclcctcd only if the providcr'=; services arc obtained at fair and reasonable priccr, to the city or customer.

Selection of architectural and engineerin@ services shall be on demonstrated competence and qualifications; other consultants may be selected on a best-value basis. 78 87
Architectural, engineering, environmental, and construction-related professional services for public projects shall not be retained through cooperative procurement contracts. For other professional services, cooperative purchasin@ or pi@@ybacking under Section L.54.510(C) is permitted, subject to the certifications required by that Section. The City may establish on-call or master service agreements for recurring professional services needs in accordance with Section 1.54.355.

A. The procedures of Sections 1.54.310 through 1.54.330 do not apply to professional services. The Director of Administrative Services shall maintain, within the Administrative Purchasinz Policies and Procedures issued under Section 1.54.110(F), the procedures governing professional services contracts, including thresholds, solicitation methods, evaluation criteria, approval routing, standard contract forms, and nezotiation authority.

The standard contract forms and the Contract Negotiation Authority Matrix are issued under this subsection.

B. Qualifications-based selection shall be used as required by state law. For professional services not subject to qualifications-based selection, competitive proposals should be used where practicable, especially above the threshold in Section 1.54.220(C) (S50,000). Sole-source awards require written justification consistent with Section 1.54.510(B).

C. For funded projects subject to outside procurement rules, those rules zovern in addition to this chapter.

D. Award authority for professional services contracts.

1. Professional services contracts with a total expected value of !>100,000 or less may be awarded by the City Manager (or designee) followin@ the qualifications-based or best-value selection process in the Administrative Purchasing Policies and Procedures.

2. Professional services contracts with a total expected value greater than §100,000 shall be awarded by the City Council upon recommendation of the City Manager.

3. Notwithstanding subsection (D%1), any professional services contract or task order for design or construction management of a public project funded in whole or in part from sources requirin@ Council action shall be awarded or authorized by the City Council regardless of dollar amount, includin@ a task order issued under Section 1.54.355.

E. Execution. Professional services contracts, task orders, and amendments authorized under this Section shall be executed by the City Manazer or desi@nee.

Purchases under this Section are subject to Section 1.54.165 (Anti-splitting).

1.54.355 0n-call and master service agreements for professional services.

A. Authority. The City may enter into on-call or master service agreements with one or more professional services providers for recurrin@ or anticipated needs that cannot be precisely scoped at the time of award. Each such azreement shall be procured throuzh the qualifications-based or competitive process required for professional services under Section 1.54.220 and Section 1.54.350, using a publicly issued solicitation that identifies the scope catezories, the azreement term, and the aggrezate cap. Master service azreements with an a@@re@ate cap exceedinz 5100,000 shall be awarded by the City Council under Section 1.54.350(D)(2); master service agreements with an azzrezate cap of 9100,000 or less may be awarded by the City Manager (or desi@nee) underSection 1.54.350(D)(1).

B. Term. The initial term of an on-call or master service agreement shall not exceed three (3) years, with up to two (2) one-year extensions exercisable by the City Manager based on performance. 88 C. Aggregate cap. The solicitation shall state an aggregate cap representin@ the maximum cumulative value of task orders that may be issued under the agreement. The aggregate cap shall be set forth in the solicitation and approved at award in accordance with subsection (A) and may not be increased without further approval consistent with subsection (A).

D. Task orders. Individual task orders issued against the agreement are issued on the task order form prescribed by the Administrative Purchasing Policies and Procedures, incorporate the terms of the master agreement, shall be authorized in writing, shall identify the scope, schedule, and not-to-exceed price, shall be tracked cumulatively azainst the approved a@Hre@ate cap, and shall be approved as follows:

1. Task orders may be authorized by the City Manager (or designee) up to the remaining approved aggregate cap, subject to paragraphs (2) and (3).

2. No individual task order with a not-to-exceed price greater than 5250,000 may be issued without City Council approval.

3. No task order may be issued that would cause the cumulative value of all task orders to exceed the approved aggregate cap. Increases to the azHregate cap require approval under subsection (A): if the increased a@@regate cap exceeds 9100,000, City Council approval is required; if the increased aggregate cap remains at or below 5100,000, the City Manager (or designee) may approve the increase.

E. Multiple providers. Where more than one provider is awarded, the City shall use a documented method (rotation, qualifications-based mini-competition, or other reasonable method) to allocate task orders amonz providers.

1.54.365 Bid Protests.

A bidder or proposer may submit a written protest of an award or intended award in the manner and within the timeframes set forth in the Administrative Purchasing Policies and Procedures issued by the Director of Administrative Services under Section 1.54.110(F). At a minimum, the protest shall identify the solicitation or award at issue, state the specific @rounds for protest, and include all supportin@ facts and documentation.

Protests shall be directed to the Purchasin@ Officer (or designee) for an initial determination. A protestor may appeal an adverse determination to the City Manager, whose decision shall constitute the City's final administrative action. Nothing in this section creates a private rizht of action or limits the City's discretion where permitted by law.

1.54.370 Procurement During a Proclaimed Emergency or Disaster.

A. Purpose. To provide expedited, compliant procurement during a proclaimed local, state, or federal emergency, or when a public exigency or emergency will not permit delay from competitive procedures. For purposes of this Section, "proclaimed emergency or disaster" means a local emergency proclaimed pursuant to California Government Code !? 8630 and Chapter 7.14 of this Code, a state of emergency proclaimed by the Governor pursuant to Government Code § 8625, or a federal disaster or emergency declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The operational mechanisms in subsection (D) are available only durin@ a proclaimed emergency or disaster, and that authority is coextensive with the duration of the proclamation or declaration and terminates upon its expiration or rescission. The remaininz subsections of this Section apply both durinz a proclaimed emergency or disaster and where a public exizency or emerzency will not permit the delay resulting from competitive solicitation. Before a proclamation is issued, the City Manager may exercise the authority delegated in subsection (B) subject to the written findings 80 89
required by subsection (B)(1) and the reportin@ required by subsection (B)(2), and a Department Director or the Director of Administrative Services may authorize a procurement within the limits of subsection (C) only with the prior concurrence of the City Manager.

B. Statutory Authority and Council Delegation. This Section is enacted pursuant to Public Contract Code § 22050.

By adoption of this Chapter by a four-fifths vote, as required by Public Contract Code § 22050(b)(1), the City Council delegates to the City Manager the authority to order any action specified in Public Contract Code § 22050(a)(1), including the repair or replacement of public facilities, the procurement of equipment, services, and supplies necessary to respond to an emergency, and any directly related and immediate action required by that emergency, without giving notice for bids to let contracts.

1. Findings Required. Before exercisin@ authority under this subsection, the City Manager (or desi@nee) shall make a written finding, supported by substantial evidence, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency.

2. Initial Council Review. The City Manazer shall report the emergency action to the City Council not later than seven (7) days after the action, or at the next rezularly scheduled City Council meetin@ if that meetinz will occur not later than fourteen (14) days after the action, as required by Public Contract Code E) 22050(c)(2). The report shall state the reasons justifyinz why the emerzency would not permit a delay from competitive solicitation and why the action was necessary.

3. Continuing Council Review. After the initial review under parazraph (2), the City Council shall review the emergency action at each subsequent regularly scheduled meetinz until the action is terminated, and shall determine by a four-fifths vote whether there is a need to continue the action. If the City Council meets weekly, it may, after the initial review, review the emergency action every fourteen (14) days as authorized by Public Contract Code § 22050(c)(2).

4. Termination. The City Manazer may terminate emergency action under this subsection at any time.

Consistent with Public Contract Code § 22050(c)(2), no further Council review under parazraph (3) is required with respect to an action terminated before the City Council has reviewed that action and made a determination on the need to continue it.

5. Scope of the statutory delezation; other emergency purchasing. The delegation made by this subsection is the authority described in Public Contract Code § 22050(a)(1), which reaches the repair or replacement of a public facility, action directly related to and immediately required by the emergency, and the equipment, services, and supplies necessary for those purposes. Procurement of other goods and services needed to respond to an emergency, includin@ sheltering, mass care, food and water, transportation, communications, and continuity of City operations, is not made under Public Contract Code § 22050. That procurement is authorized by the City's general purchasinz authority under Government Code §§ 37100 through 37103 and 54201 through 54205 and by the City's emergency organization provisions, is exempt from formal and informal bidding under Section

1.54.510(D), and is subject to the routing in subsection (C) and the competition, documentation, and reporting requirements of subsections (E) and (F). The findings requirement in paragraph (1) and the four-fifths review requirements in paragraphs (2) and (3) apply only to action taken under Public Contract Code § 22050.

C. Approval Authority Durin@ Emergencies. This subsection does not delezate authority under Public Contract Code § 22050. It establishes the internal approval routing by which the authority delegated to the City Manager under subsection (B) is exercised within the organization, and the City Manager remains accountable to the City Council for all action taken under that delegated authority. Subject to the foregoing, during a proclaimed emergency or disaster, or where a public exigency or emergency will not permit delay, procurement decisions under subsection (B) and under the zeneral emergency purchasing authority described in subsection (B)(5) are routed as follows, notwithstandinz the dollar thresholds otherwise applicable under this Chapter: 81 90 1. Department Director or desi@nee: up to and including 525,000 per procurement;

2. Director of Administrative Services or desiBnee: up to and includin@ 5100,000 per procurement;

3. City Manager or designee: up to and includin@ 5500,000 per procurement; and

4. City Council: any procurement greater than 5500,000, except where the City Manager makes a written determination that the emergency does not permit delay for Council action, in which case the City Manager may proceed under subsection (B) and report to Council pursuant to subsection (B)(2).

All procurements made under this subsection shall be reported and, where applicable, ratified by the City Council within the time required by subsection (B)(2) and Public Contract Code § 22050(c)(2), and otherwise at the next regularly scheduled meeting after the procurement is made. Notwithstanding Section 1.54.140(A), a procurement authorized under this Section may be made without a sufficient unencumbered appropriation where the emergency or exigency does not permit delay, provided that the Director of Administrative Services identifies the intended fundin@ source and presents a budzet amendment to the City Council at the meeting at which the procurement is reported.

D. Operational Mechanisms Durinz Emergencies. Durin@ a proclaimed emergency or disaster, and notwithstandin@ any other provision of this Chapter, the Director of Administrative Services may authorize the following operational mechanisms to expedite procurement:

1. Elevated procurement card transaction and monthly limits for desiznated cardholders, subject to the Administrative Purchasing Policies and Procedures.

2. Advance payments to vendors where required to secure necessary equipment, services, or supplies, subject to written documentation of the circumstances and reasonableness.

3. Use of pre-screened cooperative purchasinz azreements with abbreviated certification under Section

1.54.510(C), provided that full certification is completed within thirty (30) days after the procurement.

4. After-hours and electronic-signature execution of contracts and purchase orders, with the same legal effect as in-person execution during business hours.

5. Such other operational mechanisms as the Director of Administrative Services determines are necessary to expedite procurement, consistent with applicable law and fundin@-source requirements.

E. Competition to the Maximum Extent Practicable. When time allows, the City will seek at least three (3) quotes or proposals usinz electronic means. When not practicable, the Purchasinz Officer shall document the circumstances and the basis for the selection and price reasonableness.

F. Documentation & Posting. The Purchasin@ Officer shall ensure documentation of the emergency circumstances, vendor selection, price reasonableness, and any noncompetitive justification. Emergency awards shall be presented to the City Council on the schedule required by subsection (B)(2), and posted to the City's website as soon as practicable.

G. Federal Requirements. For federally funded procurements, the City shall follow 2 CFR 200, applicable agency guidance, and any zrant-specific terms, includin@ domestic preferences, contract clauses, and debarment checks.

H. Duration. Emerzency procedures are limited to the period reasonably necessary to address the emergency.

Routine or long-term needs shall transition back to standard competitive methods.

1. Labor Costs and FEMA Reimbursement. Procurement of supplies, equipment, and services under this Section is distinct from authorization of City personnel labor costs (including overtime, premium pay, and compensatory 91 time) incurred during an emerzency response. Eligibility of labor costs for reimbursement under the FEMA Public Assistance Program or other federal disaster assistance programs depends on the City's pre-disaster written labor policy, which is established outside this Chapter. Departments incurring labor costs that may be subject to federal reimbursement shall coordinate with the Director of Administrative Services and the Director of Human Resources to ensure documentation and timekeepin@ practices support reimbursement.

1.54.410 Adoption of Uniform Construction Cost Accounting Act'; /lccounting Procedure;, procedures.

The purpose of Sections 1.5/l./110 through 1.54."l')O of thir chapter is to provide for an alternative method for the bidding of public projects, maintcnancc work, and related work, .:l!; authorized by California Public Contract Code Sections 22000 at sag.

Purchazt'; made by thc city rclatcd to public projects, maintenance work, and other work that is the subject of Sections 1.5/1.410 through 1.5"1.'l')O of this chapter shall be made by the purchazing :upcrviror pursuant to the provisions of Scction 1.5/1.130 of this chapter, unlcrr, an exemption from ccntralizcd purcharing applicr, under Sections 1.5/1.210 through 1.5"1.230 of this chapter.

Howcvcr, bidding for such public projccts, maintenance work, and any other construction work, including that which does not fall within the definition of a "public project" set forth in Public Contract Code Section :2002(cl may at the city's discretion be bid uzinq the alternative bidding mcthodz set forth in Sections 1.5/l./110 through

1.54./190 of this chaptcr.

The city is ablc to utilizc the alternative biddinq method, also known as informal bidding, pur=;uant to the authority granted to city govcrnmcnts by Public Contract Codc Section 22003. In order to become eligible to exercise the riqhts qrantcd by Public Contract Code Section 22003, the city of South Gate, on May 9, 2000, parsed, approved and adopted Resolution 656/1. In that resolution, the city elected to become subject to thc Uniform Construction Cost /\ccounting Procedures set forth in the Uniform r'ublic Construction Cost /\ccounting /\ct, and to bccomc subject to the Policies and Procedures Manual and cost accounting review procedures cstablishcd by the California Uniform Public Conr,truction Cost /\ccounting Commirsion, ar they may each from time to time be amcndcd, which shall apply to public projects, maintenance work, and any other construction work, including that which does not fall within the definition of public project set forth in Public Contract Codc Section 22002(c).
/\11 city dcpartmcntr, and other customers arc subject to Sections 1.5"1.'ll0 through 1.5/l./190 ofthir chapter (Ord. 2063; Public Contract Code 22030.)
Public Works procurements shall follow Sections 1.54.410 through 1.54.495; the @eneral purchasing procedures in Sections 1.54.310 through 1.54.330 apply only where expressly referenced in Sections 1.54.410 through

1.54.495.

The City reaffirms its election to utilize the alternative biddin@ methods authorized by the Uniform Public Construction Cost Accountinz Act (UPCCAA) for public projects as defined in Public Contract Code § 22002, including use of informal bidding under PCC § 22032 and force account/nezotiated contracts under PCC § 22032(a). Maintenance contracts that are not public projects within the meaning of Public Contract Code § 22002 are procured under Section 1.54.486 of this Chapter.

1.54.420 Duties and responsibilities of public work; director,Public Works Director. 92 The public works director has the authority to do al! of the following with respect to public projects, maintenance work, and similar construction projects:

A. Prepare (or arrange for thc preparation of) and approve plans, specifications and workinq details for all public projects, maintenance work, and similar construction work that qualificr, for thc bidding procedures established by Ss'ctions 1.5"l."ll0 through 1.5/1.490 of this chapter; B. Invite bids, prcparc bid packags, and managc the bidding process for such public projects, maintenance work, and similar construction work pursuant to the provisions of Scctionr, 1.5'l."ll0 through l.5n./190 of this C. With rcr,pact to contract, which arc the subject of formal bidding procedures pursuant to Section 1.5/l./1/10 of this chapter, the city manager and the public works director have the authority to recommend that the city council award the contractr, to the lowest responsive and rcsponr,iblc bidder. With respect to contr.:ictr, which arc the subject of the informal bidding procedures pursuant to Section 1.54.'l50 of this chapter, the city manager or to any other parson designated in writing by the city manager, has the authority to award thosc contracts to the lowest responsive and responsible bidder; D. Obtain from any contractor to whom a contract is awarded pursuant to Sections 1.5/l./1 10 through 1.5/1. /190 of this chapter, and to dclivcr to the purchasing supervisor, any of the following to the extent deemed ncccr,r,ary or desirable by the public works director or the purchasing supervisor: (i) contractors' insurance certificates and policies required by the terms of the contract; (ii) liccnr,ing information confirming that the contractor holds any and all licenses rcquircd by the terms of the contract; (iii) vcrification that any signature; appearing on the contract arc the signaturcs of individuals authorizcd to bind thc contractor to the contract; (iv) pcrformancc and material bonds, insurance certificates, and cvidcncc of workers' compensation coverage; and (v) any other documents or information confirming that the contractor is cligiblc to rcccivc thc award of the contract; E. r)rcparc and implement written policies ,]!, the public workr, director deem, ncccrs.:iry or desirable to facilitate the actions authorized by Sections 1.5/l./110 through 1.5/l./190 ofthiz chapter; and F. Dcsignatc one or more assistants, and to delegate to such azsi=;tant(s) the right to perform any of the duties set forth in this section.

The Public Works Director is authorized to prepare plans and specifications, invite bids, manage bidding, recommend/award within authority, secure required contractor documents, and delegate duties. Electronic advertisinz and receipt of bids may be used where authorized.

1.54.430 Lists of qualified contractors and construction trade journals.

To ensure that the public works director is able to mail notices, pursuant to Public Contract Code Sectiorr, 2203/1 and 22036, of formal or informal conr,truction contracts being bid pursuant to Sections 1.5/l./1/10 and 1.5/l./150 of this chapter, the public workr, director shall maintain and keep current both of the following listr,:

A. The Public Works Director shall maintain, and keep current:

A. List of Qualified Contractors. The public works director shall maintain a l.Alist of qualified contractors eligible to submit bids on informal contracts awarded contracts, organized by the city. That list shall identify the qualified contractors according to categories of work. A liccns:'d contractor wishing to be on the list mur,t first submit a request letter to the public works director. In developing work and maintaining that list, thc public works director shall comply consistent with aqcriteria established by the California Uniform Construction Cost Accounting Commission pursuant to under Public Contract Code Section 2203/1.5 22034; and 84 93
B. List of Construction Trade Journals. The public works director shall alr,o maintain a 2.A current list oft-he namcr, and addrcs,cs of all construction trade journals identified by tm California Uniform Construction Cost /\ccounting that Commission under Public Contract Code i 22036.

B. Notices of formal and informal bidding under Sections 1.54.440 and 1.54.450 shall be distributed using these lists as required by state law.

C. Pre-qualification under PCC § 20101. Public Contract Code § 20101 authorizes pre-qualification of prospective bidders but does not itself establish a dollar floor. As a matter of City policy, for public works projects expected to exceed Sl,000,000, the Public Works Director may require pre-qualification of bidders pursuant to Public Contract Code § 20101 prior to bid openinz. Pre-qualification may also be required on projects below that amount where the Public Works Director determines it is warranted by project complexity or risk. Pre- qualification shall use a uniform questionnaire and rating system adopted by the City and shall provide a process for appeal of disqualification consistent with state law. Only pre-qualified bidders shall be permitted to submit bids on the project.

1.54.440 Formal bidding procedures for contracts in excess of one hundred seventy five thousand dollarr, (or such other amount .:l!, may hereafter be established by the state informal bidding threshold pertaining to public projects and certain other construction-related activities.

The public works director may utilize the formal bidding procedures set forth in this section for any "public project" (.:l!, defined bclow) having a contract pricc or estimated cost of more than the threshold amount for which informal bidding is authorizcd by the California Uniform Conrtruction Cost /\ccountinH Commirsion ("CUCC/\C"). /\!, of March 5, 2013, that threshold amount was one hundred zcvcnty five thousand dollar,, but in accordance with Section 1.5/1.030, thc thrcr,hold amount for purposes of this section will automatically be increased or dccrcascd to correspond with changes cstablishcd by the CUCC/\C. In dctermining the applicability of this scction, the city shall rely on the threshold amount published by the CUCC/\C on its wcbsitc (www.zco.ca.qov/ardcuccac) or otherwise disclosed to the city by the CUCC/\C. /\Z used herein, the term "public project" has the meaning set forth in Section 1.5/1.020. In accordance with provir,ions of the Uniform Public Construction Cost /\ccounting /\ct set forth at Public Contract Code !Scction 22002(d), "public project" does not include "maintenance work," defined thcrcin to include all of the followinq: (1) routine, rccurrinq and usual work for the prcscrvation or protection of any publicly owned or publicly operated facility for itr, intended purposes; (2) minor rcpaintinH; (3) rcsurfacing of streets and highways at ICIZZ than one inch; (/I) land;cape maintenance, including mowing, watering, trimming, pruning, planting, rcplaccmcnt of plant,, and scrvicing of irrigation and sprinklcr systems; and (5) work pcrformcd to kccp, operate, and maintain publicly owned water, power, or waste disposal system,, includin(;, but not limited to, dam,, rcr,crvoirs, power plantr,, and electrical transmirr,ion lines of two hundred thirty thousand volts and higher. Pursuant to other provisions of the Uniform Public Construction Cost /\ccounting Act set forth at Public Contract Code Section 22003, the city may, but is not required to, utilize the formal bidding procedurcr, cztablirhcd by this section when contracting for maintcnancc work or any other work which docs not fall within the definition of "public project" J!, defined in the Uniform Public Construction Cost /\ccounting /\ct.

A. Notice Inviting Bid;. Thc public works director shall prepare a notice inviting public bids. That noticc shall state the time and place for the rccciving and opening of stalcd bids and shall distinctly describe the project.

The noticc may ,:)I!,O include bond rcquircmcnts of Section 1.5/l./190, if stipulated by the public workr, director.

The public works director shall cause the notice to be issued in all of the following way,:

1. /\t least fourteen calendar days bcforc the date of opening the bids, (i) by publishing the notice in a newspaper of qencral circulation, printed and pub!ishcd in the jurisdiction of the city; (ii) if there is no 85 94
newspaper printed or published within the city, then the notice shall be published in a newspaper of (;cncral circulation which is circulatcd within the city; or (iii) if there is no newspaper which is circulated within the jurisdiction of the city, publication shall be done by posting the notice in at least three places within the jurisdiction of the city as have bean designated by ordinance or regulation of thc city J!, P1.:ICCI!, for the posting of

2. Not IC!!,!, than fifteen calendar days before the date of opening the bidr,, the notice invitin@ formal bids shall Jl!,O be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals on thc list maintaincd by the public works director pursuant to Section 1.54.430(B); and

3. In addition, the public works director may give any other notice he or she deems proper, including without limitation dclivcring notice to additional contractorr; and/or construction trade journals. /1. If subsequent changar, in state law crcatc new or modified definitions (including but not limited to definitions of the tcrrns "maintenance work" or "public project"l notice periods or procedures which arc different from those set forth in this section, then the public workr, director or other authorizcd city rcprcr,cntativc shall proceed accordin@ to those state law notice provisionr, rather than those sat forth hcrcin.

A. Notice invitin@ bids shall: (1) be published in a newspaper of @eneral circulation at least fourteen (14) calendar days before the date of bid openinz; (2) be sent by mail or electronically (fax or email) to all construction trade journals identified by the California Uniform Construction Cost Accountinz Commission under Public Contract Code § 22036 at least fifteen (15) calendar days before the date of bid opening; (3) be sent to all contractors on the qualified contractors list for the catezory of work to be bid (Section 1.54.430(A)(1)); and (4) may also be posted on the City's website or e-procurement portal. If state law modifies required notice periods or methods, state law controls.

C. Execution of Contract. /\ny contract awarded pur,uant to this scction Contracts shall be executed by authority delegated by the City Council.

1.54.450 Informal bidding procedures for contracts between forty five thou=and dollar, and one hundred seventy five thour,and dollars (or such other amountz J!, may hereafter be established by at or below the state informal bidding threshold pertaining to public projects and certain other construction-related activities.

The public works director may utilizt:' the informal bidding proccdurcz set forth in this section for any "public projcct" (.:l!, defined bclow) having a contract price or cztimatcd cost within the range for which informal bidding is authorized by the California Uniform Construction Cost /\ccounting Commis,ion ("CUCC/\C"). /\r, of March 5, 2013, that range was more than forty fivc thousand dollars but ICI!,!, than or equal to one hundrcd seventy five thousand dollars, but in accordance with Scction 1.54.030, the ranqc for purposes of this section will automatically bc incrcascd or decreased to corrcspond with changcs established by the CUCC/\C. In dctcrmining the applicability of this section, the city shall rely on the dollar range published by the CUCC/\C on itr, wcbsitc (www.sco.ca.gov/ardcuccac) or otherwise disclosed to the city by the CUCC/\C. /\s used herein, the term "public project" has the meaning set forth in Section 1.54.020. In accordance with provisionr, of the Uniform Public 86 95
Construction Cost /\ccounting /\ct s:it forth at Public Contract Code Section 22002(d), "public project" does not include "maintenance work," dcfincd therein to include all of the following: (1) routine, recurring and u,ual work for the prcr,crvation or protection of any publicly owncd or publicly operated facility for itr, intended purposes; (2) minor rcpainting; (3) rcsurfacinq of streets and hi(;hways at ICI!,!, than one inch; (/l) land;cape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plantr,, and scrvicing ofirrigation and sprinkler zystcmr,; and (5) work performed to keep, operate, and maintain publicly owned water, powcr, or waste disposal zy;tcm;, including, but not limited to, darns, reservoirs, power plant,, and electrical transmission lines of two hundred thirty thousand volts and higher. r)urzuant to other provisionr, of the Uniform Public Construction Cost /\ccounting /\ct set forth at Public Contract Codc Section 22003, the city may, but is not required to, utilize the informal bidding procedures cstablishcd by this section when contracting for maintenance work or any other work which does not fall within the definition of "public project" as defined in the Uniform Public Conr,truction Cost /\ccounting /\ct.

A. Notice. The Public Works Director shall provide notice inviting informal bids not less than ten (10) calendar days before bids are due, mailed or emailed to all contractors on the qualified contractors list for the category of work to be bid (Section 1.54.430(A)(1)) and to the construction trade journals designated by the California Uniform Construction Cost Accountinz Commission for Los Anzeles County (Section 1.54.430(A)(2)). Notices shall also be posted on the City website or e-procurement portal.

A-B. Noticc Inviting Bids. Content. The public works director shall prepare a noticc inviting public bidr,. That notice shall describe the project in general terms, shall dcr,cribc how to obtain indicate where more detailed information about thc project, may be obtained, and state the time and place for submission of notice may also include bond rcquircmcnts of Section 1.5'l.'l90, if stipulated by the public works director. The public workr, director shall cause the notice to be issued in either of the following wayr,:bidz.

1. By mailinq, at least tan calendar days before thc data on which bids arc due, a copy of the notict:i to all of thc construction trade journals on the list maintained by the public works director pursuant to Section 1.5/l./130(B); OF
C. Award. The Public Works Director (or desi@nee) may award contracts to the lowest responsive and responsible bidder. Execution shall be by the City Manager or desiznee.

2. By mailing, at least tan calendar days before the date on which bids arc due, a copy of the notice to all contractors for the category of work being bid as shown on the list maintained by the public works dircctor purr,uant to Section 1.5/1./130(/\); provided, however, that if the product or service that is the subjcct of the notice is proprietary in nature such that it can only be obtained from a certain contractor or contractors, then the notice invitin@ bids shall be scnt exclusively to such contractor or contractors; and further provided, that if the list maintaincd by the public workr, director contains no contractors for the particular category of work to be performed, then only the notices rcquircd by subr,actions (/\)(1) and (2) of this section need be scnt; and

3. If subr,cqucnt changes in state law create new or modified definitions (includin(; but not limited to dcfinitionr, of the terms "maintenance work" or "public project"), notice periods or procedures which arc different from those set forth in this subsection (/\), then the public workr, director or other authorized city representative shall proceed accordinq to those statc law noticc provisions rather than those set forth herein.

In addition, the public works director may givc any other notice he or she deems proper, includinq without limitation dclivcring notice to additional contractorr, and/or construction trade journalr,.

B. Submirsion of Scalcd Bids. Bids shall be submitted to the office of the city clerk (or such other location specified in the notice inviting bids) in scaled cnvclopcs. The outside of the envelope shall identify the contents as a bid by rcfcrcncing the bid numbcr or other identifying information required by the notice inviting bid, and 87 96
corrcr,ponding information for bidders prepared by thc city. Bids submitted to a location other than that spccificd in the notice inviting bids, or bids submitted after the time specified in the notice inviting bidr,, shall be rcturncd unopened.

C. Opcning of Bid=, and /\ward of Contract. /\t the time provided in the notice, all bids timely received rhall be opcncd. Following the opening of the bid;, the public work; director may do any of the following:

1. /lward the contract to the lowest rcr;ponr;ivc and re,ponsiblc bidder; or

2. Rcjcct all bids pur,uant to Section 1.5"1.475; or

3. If all bidr, rcccivcd and' in (!xCClZ!!, of one hundred seventy five thousand dollarr, but do not exceed one hundred eighty zcvcn thousand five hundred dollars, the public work, director may recommend th:it the contract be awarded to the lowest rcspon=;ivc and rcsponsiblc bidd:'r. Upon such a rccommcndation, the city council may, by adoption of a resolution by a four fifthz vote, award thc contract to the lowcst responsive and rcsponr,iblc biddcr (in an amount not cxcccding one hundred cighty scvcn thousand five hundred dollar,) if the city council determines that thc public works director', original estimation of the cost of the project was reasonablc. The dollar amounts specified in this subsection (C)(3) arc effective as of March 5, 2013, but shall automatically be adjur,tcd to corrcr,pond to subsequent adju,tmcnts made by thc CUCC/\C or by the amendment of California r'ublic Contract Code Section 2203/1(f).
/1. If all bids rcccivcd arc greater than onc hundred eighty seven thousand five hundred dollars (or ar:' between onc hundrcd zcvcnty five thousand dollars and one hundr:'d eighty seven thousand five hundred dollar; but the contract is not awarded pursuant to subsection (C)(3) of this scctionl and if the public works director elects to rabid the project, the project must be rabid using the formal bidding procedures sat forth in Section 13/1/1/la The dollar amounts spccificd in this subr,action (C)(/I) arc effective .:l!; of March 5, 2013, but shall automatically be adjusted to corrc!,pond to subsequent adjustments made by the CUCC/IC or by the amendment of California Public Contract Code Section 2203"1(f).

D. Execution of Contract. /\ny contract awarded pursuant to this section shall be executed by city manager or his/her dcsiqncc.

D. Award When All Bids Exceed Threshold. If all bids received exceed the state informal bidding threshold under Public Contract Code § 22032(b), the City Council may, by adoption of a resolution by a four-fifths vote, award the contract at no more than S235,000 (or such other amount as is set by Public Contract Code § 22034(d) as it may be amended) to the lowest responsive and responsible bidder, provided the Council determines the cost estimate was reasonable.

E. Re-bid; Rejection. The Public Works Director may reject all bids and re-solicit, or use the formal procedures of Section 1.54.440, when in the City's best interest.

Informal bids shall use the City's current contractor list(s) and trade journals consistent with Public Contract Code §22034 and City policy.

1.54.460 Performance of contracts for l(!!,!, than forty five thousand doll:irs (or such other amount as may hcrcaftcr be crtablizhcd by at or below the state force-account/negotiated threshold pertaining to public projects and certain other construction-related activities. /\ny "public project," and, at the city's discretion, any "maintcnancc work" (,)!, thozc terms arc defined in Scctions 1.5/1.020, 1.5/1.4 /10 and 1.5/l./150) or any other work which does not fall within the definition of "public project" as defined in the Uniform Public Construction Cost /\ccounting /\ct, having a contract price or cr,timatcd cost at or below the threshold amount established by the California Uniform Construction Cost Accounting 88 97
Commission ("CUCC/IC"), may, at the direction of the public works director, be performed in any of the ways set forth below without any formal or informal bidding procedure. /\s of March 5, 2013, that threshold amount was forty five thousand dollars, but in accordance with Section 1.54.030, the thrcshold amount for purposes of this zcction will automatically be incrcascd or decreased to correspond with changes established by the CUCC/IC. In dctcrmining the applicability of this section, the city shall n:'ly on the threshold amount published by the CUCC/\C on itr, wcbsitc (www.zco.ca.qov/ardcuccac) or otherwise disclosed to the city by the CUCC/\C:

A. By force account using cmployc', of the city;
B. By purchase order pursuant to Sections 1.5/1.110 through 1.5/1.230; or C. By a negotiated contract which the public work; director negotiates on the city's behalf and which is executed by the city manager or his or hcr dcsigncc.

The Public Works Director may perform elizible work by force account, by purchase order under Sections

1.54.110-1.54.230, or by negotiated contract executed by the City Manager or designee.

1.54.467 Design-build and progressive design-build delivery.

A. Authority. The Public Works Director, with City Council approval, may procure public projects using design- build delivery in accordance with Public Contract Code § 22160 et seq., or prozressive design-build delivery in accordance with Public Contract Code § 22170 et seq. or § 22185 et seq., in each case only for projects that are eligible under the applicable chapter and only while that authority remains in effect. Eligibility is determined by state law, which limits each delivery method by the type of local azency, the type of project, the project cost, the number of projects, and the term of the authorization, and which imposes reporting obligations on agencies that use these methods. The Administrative Purchasing Policies and Procedures shall state the eligibility criteria, cost thresholds, project limits, reporting obligations, and expiration dates then in effect under state law, and shall be updated as state law changes. No solicitation shall be issued under this Section until the Public Works Director, in consultation with the City Attorney, has confirmed in writin@ that the project is eligible under the applicable chapter.

B. Findings. Prior to issuing a solicitation under this Section, the Public Works Director shall prepare written findings supporting use of the alternative delivery method, includinz consideration of project complexity, schedule constraints, opportunities for design innovation, and total cost. The findings shall be presented to the City Council for approval prior to issuance of the solicitation. The City Council approval required by subsection (A) is given by approving the findings under this subsection, and a further approval is required at award under subsection (D).

C. Procurement procedures. Solicitations under this Section shall follow the procedures of Public Contract Code § 22160 et seq., § 22170 et seq., or § 22185 et seq., as applicable, includinz best-value or qualifications-based selection as applicable, public notice, prequalification of desizn-build entities, the standard organizational conflict-of-interest guidelines required by those chapters, any skilled and trained workforce requirement imposed by the applicable chapter, and statutory reporting. Where more than one chapter would authorize the project, the Administrative Purchasing Policies and Procedures shall identify the pathway selected and the reason for the selection. Sections 1.54.440 and 1.54.450 do not apply to design-build procurements under this Section, and Section 1.54.475 applies only as to the City's authority to reject any and all bids.

D. Council award. Award shall be recommended by the Public Works Director to the City Council for approval.

The contract shall be executed by the City Manazer or designee. 89 98
E. Federal funding. Where federal funds are used, design-build and progressive design-build procurements shall additionally comply with 2 CFR 200 and any awardinz-a@ency requirements.

1.54.470 Exceptions to bidding requirements for public projects, maintenance work, and similar construction- related activities in case of emergencies.

In case of emergency when repair or rcplaccmcntr; arc necessary, the city may proceed at once to replace or repair any public facility without adopting plans, specifications, str,:iin zhccts, or working dct,iilr, or giving notice for bidr, to let contracts. The work may be done by day labor under thc dircction of the public work; director, by contractor, or by a combination of the two. In any such emergency, if notice for bids will not be given, the city shall comply with the proccdurcs in Public Contract Code Section 22050 (Emergency Contracting Procedurcr,).

Thcsc procedures require, bcforc any cmcrgcncy action is taken, that the city council authorize the action by a four fifths vote and make a finding bazcd on zubr,tantial cvidcncc that: (a) the cmcrgency will not permit a delay resulting from the competitive solicitation for bids; and (b) the action is nccerr,ary to respond to the emergency.

Thc city counci! must ,)I!,O review the action at cvcry regular mccting until thc action is terminated to determine, by a four fifthr vote, that there is a nccd to continue the action.

Emergency public works contractin@ is @overned by Public Contract Code § 22050 and shall be conducted in accordance with all provisions of Section 1.54.370 (Procurement Durinz a Proclaimed Emergency or Disaster), includinz the statutory authority and Council delegation, approval thresholds, operational mechanisms, documentation, ratification, and federal grant compliance provisions of that Section. Sections 1.54.440,

1.54.450, 1.54.460, and 1.54.467 do not apply to emergency public works contracts entered into under this Section.

1.54.475 Rejection of bids.

A. The city has the absolute riqht, in its !,01C! discretion, to reject all bids submitted pursuant to Sections 1.5/l./1/10 and 1.5/l./150 of this chaptcr.

B. If, after the firr,t invitation for bids under Section 1.5/1."1 "10 or L.S"1."150 of this chapter, all bids are rejected, the city may, after rccvaluating itr, cost cstimatcr, of the project, cithcr:

1. /\bandon the project;

2. Rcadvcrtizc for bids pursuant to Scction 1.5/l."1 "10 or 1.5/l./150 of this chapter; or

3. Subject to sub,cction C of this section, by passagc of a rcsolution by a four fifths vote of the city council dcclaring that the project can bc performed more cconomically by the employees of the public agency, cause the projcct to be performed by force account without further complying with Sections 1.5/l./110 through

1.5/l."1')O of this chapter.

C. Prior to taking the actionr, set forth in subsection (B)(3) of this section, the city shall furnish a written notice to the apparent low bidder. The notice shall inform the bidder of the city's intent to reject the bid, and shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid.

The City may reject any and all bids. If, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the City, the City intends to declare the project can be performed by force account, the City shall furnish written notice to the apparent low bidder of its intention to reject the bid, mailed at least two (2) business days before the hearing at which the City intends to reject the bid, as required by Public Contract Code § 22038. After re-evaluating its cost estimates, the City may: (1) abandon the project or 90 99
re-advertise for bids; or (2) by passaze of a four-fifths vote of the City Council, declare that the project can be performed more economically by City employees and have the project done by force account.

1.54.480 Tie bids.

If two or morc bids arc thc same and the lowest, thc public works director (in thc case of bids received purr;uant to Section 1.5/l./150 of this chapter) or the city council (in the cas:i of bids received pursuant to Section 1.5/l./1 /10 of this chapter) may in his, her or its discretion, award the contract to either of the lowest bidder; purr,uant to Public Contract Code Section 22038(b).

Tie-bid procedures shall be as authorized by state law.

1.54.485 Performance of public projects and maintenance work when no bids are received.

If a project is put out to bid pursuant to the formal or informal bid proccdurcs of Scction 1.5/l./1/10 or 1.5/l./150 of this chapter and no bidr, arc rcccivcd through those formal or informal procedures, then pursuant to Public Contract Code Section 22038(c) the project may be performed (without any further formal or informal bidding procedures) in either of thc following ways:

A. By forcc account u,ing employees of thc city; or B. Under a negotiated contract which the public works director negotiates on thc city'; behalf and which is crtccutcd by the purchasin(; supervisor pursuant to thc procedures, conditions and rcstriction=; sat forth in Sections 1.5/1.110 through 1.5/1.1/10 of this chapter.

If no bids are received under formal or informal procedures, the City may perform the work by force account or by nezotiated contract consistent with this chapter.

1.54.486 Procedures for entering into maintenance contracts where no public bidding is required.

Where the e%-gy proposes to enter into a contract for "maintenance work" as that term is defined in maintenance work within the meaning of Public Contract Code i 22002(d) and in Sections 1.5/l./1/10 and

1.5/l./150, such work that does not constitute a "public project" and need not be bid pursuant to public project under Public Contract Code § 22002(c), the provisions of said Scctionr, 1.5/l./1/10 and 1.5/l./150. In such cases, the public work, director r'ublic Works Director shall use one of the following procedures for recommending to the city council the pcrr,on or entity to whom the maintenance contract shall be awarded:

A. Contractr, of Five Thour,and Dollars or Less. Contract; in amounts of five thousand dollars or ICI!,!!, shall be cntcrcd into purr,uant to the provisions of Sections 1.5/1.320(/\) and 1.5/1.330 to the extent those apply.

B. Informal Request for Proposals for Contracts between Five Thour,and Dollars and Twenty Five Thousand Dollars. For contracts in amounts grcatcr than five thourand dollars but not more than twenty five thour,and dollarr,, the city manager, public works director, or parson designated by either of those two city officer, shall contact (in pcrr,on, by telephone or in writing) a minimum of threc maintenance providers, provide thcm with information regarding thc maintenance project to the extent the said manager, director or darignec deem; ncccrr;ary, and obtain information from those providers regarding their qualifications and the amount thcy would charge to pcrform the maintenance rcrviccr,. The city manager, public work; director, or person designated by either of those two city officer, shall also negotiate the terms of the proposed contract with one or more of those prospcctivc maintenance providers. The city manager, public works director, or pcrr,on 91 100
dcsignatcd by either of those two city officers shall take into account not only the price offered by the proposers but also thcir qualifications and any other rclcvant critcria. The city manager, public works director, or parson dcsignatcd by either of those two city officers may, but nccd not, recommend to the city council that thc contract be awarded to the person or entity offering to perform the services for the lowest cost. The city council may, but need not, award the contract to the parson or entity offering to perform the scrviccr, for the lowest C. Formal Request for Proposals for Contractr; Grcatcr than Twenty Five Thousand Dollars. For contractr, in amountr, greater than twenty five thousand dollars, the city manager, public work, dircctor, or pcrr,on dcr,ignatcd by either of those two city officers shall issue a formal request for proposals. That request shall describe the maintcnancc work in general tcrrnr,, shall dcscribc how to obtain morc detailed information about the project, shall statc the time for submirsion of scaled proposals, and shall require all such proporalr, to be submitted to the city clerk's office (to the attention of the department director requesting such proposal). Thc rcqucr,t for proposal shall also invite the proposers to provide information as to their qualificationr, for the maintenance work that is the subject of the request, and to indicate the price for which the propozcrr, would perform that maintenance work. The rcqucst shall also contain any other information or requcstr, which the city manager, public works director, or parson dsignatcd by cithcr of thozc two city officer, deem, relevant. No specific procedures for distributing the request for proporals or notice inviting proposals need to be followed, but at a minimum (a) thc cover page of, or other notice qcncrally dcscribing, the request for proposals or notice inviting proposals shall be published at least once in a ncwr,paper of general circulation in the city not IC!,!, than two WC'C!k!, prior to the opening of the proposal, and (b) the city manager, public works director, or per,on dcr,ignatcd by cithcr of those two city officers shall .:idvcrtisc, publicize or otherwise distribute the request in a manner reasonably likely to cause an adequate number of responses to be returned to the city. A full copy of the rcqucr,t for proposals or notice inviting proposals, in hard copy or electronic form, shall be provided to any prospective proposer upon request. The city manager, public works director, or pcrson designated by cithcr of thosc two city officers may, but need not, recommend to the city council that the contract be awarded to the per;on or entity offering to perform the services for the lower,t cost. The city council may, but need not, award the contract to the person or entity offering to perform thc scrviccs for thc lowest cost.

D. Formal or Informal Bidding. Notwithstanding anything to thc contrary set forth in rubrcctions (/\), (B) and (C) of this scction, the public works director may, but nccd not, elect not to use thc procedures discussed in those paragraphs and inr,tcad bid thc maintenance work uzing thc formal or informal bidding procedures established by Sections 1.5/l./1/lo and 1.5/l./150.

A. Contracts of !>3,000 or less. The Public Works Director or desi@nee may procure the work directly from a qualified provider with documented price reasonableness and without competitive bidding. Documentation shall be retained in the procurement file consistent with administrative policy and the City's records retention schedule.

B. Contracts greater than S3,000 and up to !>50,000. The Public Works Director or designee shall contact at least three (3) qualified maintenance providers in person, by telephone, by electronic mail, or through the City's e- procurement portal, and obtain qualifications and pricinz information. Award shall be on a best-value basis considerinz qualifications, price, and other relevant criteria.

C. Contracts greater than 550,000. The Public Works Director or designee shall issue a formal Request for Proposals describing the scope, qualification requirements, and proposal submission instructions. The RFP shall be posted to the City's website or e-procurement portal at least fourteen (14) calendar days before the proposal due date, and may also be published or distributed by other means reasonably likely to produce an adequate response. Award shall be recommended to the City Council, which may accept or reject any proposal. 92 101
D. Alternative bidding. The Public Works Director may elect to procure maintenance work using the formal or informal bidding procedures of Sections 1.54.440 or 1.54.450. An election under this subsection changes the solicitation method only and does not change the approval authority established by subsections (A) through (C).

1.54.490 Bid bonds, performance bonds, and payment bonds.

A. Biddcr'r, Sccurity Bonds. When deemed ncccrsary or appropriate by the public works director, biddcr,' security may be prescribed in the notice inviting bids issued purr,uant to Section 1.5/l./1/10 or 1.5/l./150 of this chapter. Biddcrr, shall bc entitled to return of bid security; provided that a successful bidder shall forfeit its bid sccurity upon rcfusal or failurc to cxccutc the contract within twenty days after the notice of award of contract has bccn mailed, unlcss thc city is r'sponsiblc for delay. The city manager or any other parson dcr,ignatcd in writing by the city manager (in the C,:)!;C' of bids received pursuant to Section 1.5"l."150 of this chapter) or the city council (in thc CJZCI of bids received pur,uant to Section 1.5/l./1 /10 of this chapter) may, on refusal or failure of the succcrsful bidder to citccutc the contract, award the contract to next lowest responsive and rer,poor,iblc bidder. If thc din:'ctor or city council SO awards the contract to the next lowest bidder, then the amount of thc lowest bidder's security rhall be applied to the difference between the low bid and the rccond lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

B. Pcrformancc and Payment (Material) Bonds. The public work; director shall have the authority to require a pcrformancc and/or material bond as a condition to the award of any contract pursuant to Section 1.5/l./1/10 or

1.5/l./150 of this chapter. The amount of any such bond for contracts less than one hundred thousand dollars shall be in such amount that the public works director dctcrmincz to be reasonably necessary to protect the bar,t intcrcr,t of the city. The amount of any such bond for contracts equal to or greater than one hundred thousand dollarr, shall bc onc hundrcd percent of thc contract amount. If a performance bond and/or material bond arc required, the form and amount of the bond may be described in the notice invitinq bids and/or in any of thc other bidding documents.

The thresholds in this Section apply to public works contracts under Sections 1.54.410 through 1.54.486 and are independent of the zeneral purchasin@ thresholds in Sections 1.54.310 through 1.54.330.

A. Bid security may be required by the Public Works Director as specified in the notice invitin@ bids for any contract under Sections 1.54.440 or 1.54.450. Bid security shall be returned to unsuccessful bidders; a successful bidder who fails or refuses to execute the awarded contract within twenty (20) days after notice of award shall forfeit its bid security, unless the delay is attributable to the City.

B. Payment Bond. As required by California Civil Code § 9550, the Public Works Director shall require a payment bond for any public works contract exceedinz the threshold set by that statute, in an amount equal to one hundred percent (100%) of the contract amount. The City's call for bids shall state this requirement.

C. Performance Bond. For contracts equal to or @reater than SIO0,000, the Public Works Director shall require a performance bond in an amount equal to one hundred percent (100%) of the contract amount. For contracts less than 5100,000, the Public Works Director may require a performance bond in such amount as he or she determines reasonably necessary to protect the City's interests.

1.54.495 Prevailing wage; DIR registration; labor compliance.

All public works and applicable maintenance contracts under this Chapter shall comply with California Labor Code §§ 1720 et seq. and implementin@ regulations of the California Department of Industrial Relations (DIR), includinz the following:
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A. Prevailing Wage. Pursuant to Labor Code § 1771, all workers employed on public works projects subject to that section, including covered maintenance work performed under contract, shall be paid not less than the general prevailing rate of per diem waies established by the Director of the DIR. The Public Works Director shall include the applicable prevailing wage determinations in the solicitation and contract documents for each covered project.

B. DIR Registration. Pursuant to Labor Code § 1771.1, all contractors and subcontractors bidding on, being listed in a bid proposal for, awarded, or peformin@ work on public works projects shall be currently registered with the DIR and qualified to perform public work, except as exempted by Labor Code §§ 1725.5 and 1771.1(n).

C. Project Registration. The Public Works Director shall register each applicable public works project with the DIR within thirty (30) days of contract award, but in no event later than the first day workers are employed on the project, as required by Labor Code § 1773.3.

D. Certified Payroll. Contractors and subcontractors shall furnish certified payroll records to the Labor Commissioner as required by Labor Code § 1776 and § 1771.4.

E. Notice. The City's call for bids and contract documents shall include notice that the project is subject to compliance monitorinz and enforcement by the DIR.

1.54.510 Exemptions from formal and informal bidding procedures.

Notwithstanding any provision of this chapter to the contrary, thc formal and informal bidding proccdurcz and othcr requirements cr,tablirhcd by Sections 1.5/1.310 through 1.5"l."190 of this chapter may be dispenr,cd within any of the following instanccs:

A. When the supplies, cquipmcnt or scrviccz to be purchased arc both: (a) available from only one source, and (b) unique because of; (i) thcir quality, (ii) their durability, (iii) their safety features, componentr, or attributes, (iv) their fitncsr for .:i particular u;c, or (v) their ability to z.'itisfy the city's nccd for standardization of supplies, cquipm:'nt or services;
B. When an emergency, as determined by the dircctor of finance and confirmcd by the city manager, requires that the purchasc be completed within a period of time which will not permit form:if bidding or informal quotation procedures;
C. When a piggyback contract is available under which:

1. Competitive bid proccdurcs have already been utilized, such ,:l!, in purchasing from the federal, California State or county govcrnmcnts, including state of California and agcncicr, of counties, cities and special districtr, in the state of California, and

2. The supplier,, equipment or services arc supplied to the city under the piggyback contract at the same or better price, as W,:)Z obtained by the vendor, through the federal, state of California agencies and the agencies of counties, cities and special districts in the state of California usinq the competitive bid procedures.

D. When cooperative purchazing is available;
E. When competition for formal bids does not exist (which might occur, for cxamplc, with rcr,pact to fees and costs related to member:,hip in profcs,ional organizations, participation in mcctinqr or conventions, travel, advcrtising, public utilities, and proprietary itcms of original equipment manufacturer, and/or their authorized cxcluzivc distributorr,);
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F. When the dircctor of finance determines, with the concurrence of the city manager, that due to the nature of the supplicr,, cquipmcnt or zcrviccs, formal biddin(; is not likely to result in the lowest pricc; G. When a purchasc by the city is from a vendor who, within the past twelve month=, hag offered to provide the city with such supplies, equipment or services on thc same terms, conditions and prices; H. Whcn the purchase is for a component for a system or equipment previously acquired by the city, and is ncccssary to repair, maintain, or improve the city's utilization of the system or equipment; or I. When the purchase of goods or scrviccr, is madc pursuant to a contract with the county of LO!, /\ngclcs or any othcr city, county, rcgional, state or federal Hovcrnmcntal entity by the authority Hrantcd under /\rticlc 11, Section 8 of thc State Conr,titution, undcr Government Codc Sections 8630 863'l, 51300-51308, 5/1983, 55000 5500/1, 55600 5560'), 55631 5563"l, any other provision of thc California Government Code, or any other applicable ztatc or fcdcral law.

A. General. Use of any exemption under this Section shall be documented in writin@ in the procurement file. For purchases funded by restricted sources, exemptions shall be applied only to the extent permitted by those sources. Available exemptions are listed below.

B. Sole source. A procurement from the only known source capable of providing the required supplies, equipment, Or services. The procurement file shall include a written sole-source justification approved by the Purchasinz Officer.

C. Cooperative purchasing and piggyback. Prior to utilizing a cooperative purchasinz agreement or pi@@ybacking on another public agency's contract, the Purchasinz Officer shall certify in writing:
(1) that use of the azreement is in the best interests of the City; (2) that it is economically advantageous; and
(3) that the original contract was competitively awarded usinz procedures materially consistent with this Cha(iter.

The procurement file shall also document price reasonableness, scope and term alignment, and funding-source compatibility. During a proclaimed emergency or disaster, certification under this subsection may be abbreviated as provided in Section 1.54.370(D)(3).

D. Emergency. Procurements made under Section 1.54.370 or Section 1.54.470 are exempt from formal and informal bidding to the extent provided in those Sections.

E. Lack of effective competition. Where the procurement involves supplies, equipment, or services for which there are no reasonably available alternatives in the marketplace (for example, fees for membership in professional organizations, registration for meetinzs or conventions, public utilities, advertisinz in identified publications, and proprietary items available only from original-equipment manufacturers or their authorized exclusive distributors). The procurement file shall include a written findinz by the Purchasinz Officer documentinz the lack of effective competition.

F. Impracticability of formal bidding. Where the Director of Administrative Services, with the concurrence of the City Manager, makes a written finding that, ziven the nature of the supplies, equipment, or services, formal bidding is not likely to result in the lowest cost to the City. The finding shall be retained in the procurement file.

G. Recent competitive pricing. Where the same vendor has, within the preceding twelve (12) months, offered to provide the same supplies, equipment, or services on the same terms, conditions, and prices and that prior offer was the result of a competitive process. The procurement file shall document the prior competitive process and confirm that pricin@ has not increased.
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H. Repair or compatibility components. Where the purchase is for a component for a system or equipment previously acquired by the City and is necessary to repair, maintain, or improve the City's utilization of that system or equipment. The procurement file shall document the existing system or equipment and the need for compatibility.

I. Intergovernmental contracts. Where the purchase of goods or services is made pursuant to a contract with another local, state, or federal governmental entity under authority @ranted by Government Code §§ 6500 et seq. (Joint Exercise of Powers Act), Government Code §§ 54981 et seq., or other applicable law.

J. Public Project Limitation. This Section does not exempt public projects from biddin@ requirements under Sections 1.54.410 throuzh 1.54.495 unless an exemption is expressly authorized by state law.

K. Approval Authority. Use of any exemption under this Section shall follow the dollar-level approval routing applicable to the procurement under Sections 1.54.310 throuzh 1.54.330, 1.54.350, 1.54.355, and 1.54.440 through 1.54.495, as provided in Section 1.54.110(B). Procurements exempt under subsection (D) follow the routinz in Section 1.54.370(C) instead.

1.54.610 Approval of modifications and change orders.

A. /\ny contract cxccutcd on behalf of the city for the purchase of cquipmcnt or supplies, for the retention of professional or other scrviccr, for any public project, for maintcnancc work, or for any other item; or services acquired pur,uant to this chapter, may be modificd at any time after its effective date pur,uant to the tcrrnr, of B. The modification may add to, delete from, or revise any item in such contract (including, without limitation, plans and specifications, extra work, and change order,) rclatinq to the nature or quantity of services, equipment, supplies or work.

C. Except where additional approvals arc required under subsection (D) or (E) of this section, the modification may, without any further city council action, bc authorized and/or executed by the following persons:

1. By the city manager or public works dircctor, as to all city contracts pertaining to public works, parks, and/or park facilities;

2. By the city manager or financc dir:'ctor, with respect to all city contracts other than those identified in subsection (C)(1) of this s:iction (and by the city'r, purchasing supervisor to tm extent specified in subsection (D) of this section); and

3. By any otmr city officer or employee who was authorized by the city council, at the time the contract was originally approved or awarded, to sign the contract or any documents related thereto or any modific,:itions D. With raspcct to any contract cxccutcd on behalf of the city by the purchazing supervisor and/or the financc director pursuant to Section 1.5/1.320, city council approval shall not be required before entering into any modification which (individually or together with any previous modification) increases the total amount of the city's obligations under the contract to an amount Icsr, than fifty thousand dollars; provided, that the followin@ conditions arc met:

1. Where thc modification (individually or together with any previous modification) will result in a total contract amount ICI!,!; than or equal to tan thousand dollars, the modification shall be executed by the purcharing 105

2. Whcrc the modification (individually or together with any previous modification) will result in a total contract amount greater than tan thousand dollars but Icrs than fifty thousand dollarr,, the modification shall bc cxccutcd by the purchasing supervisor and approved in writing by the finance director.

E. Except as noted in subscction (D) or (F) of this section, city council approval shall be required before entering into any modification of any contract having an original contract amount equal to or greater than fifty thousand dollar, which modification (individually or together with any previous modification) increarer, the total amount of thc city's obligations by more than the following amounts:

1. The highcr of (a) fifty thou,and dollars or twenty percent of the original contract price, whichever is lass, in the casc of a contract having an original contract price of one million dollars or Icss, or (b) any amount .:ipprovcd by the city council for the supplies, services or project which is the subject of the contract;

2. The hiqhcr of (a) one hundred thousand dollars, in thc case of a contract having an original contract pricc in cxccss of onc million dollars, or (b) any amount approvcd by the city council for thc supplies, services or project which is the subject of the contract.

F. riJotwithstanding subsections (D) and (E) of this section, city council approval shall not be a prcrcquiritc to approval or execution of any modification if thc person approving or executing the modification reasonably determines that sccking and obtaining such advance city council approval will cause a delay that will either: (a) subject the city to liability for damages incurred by a contractor, (b) jeopardize the public health, welfare or safety, or (c) otherwise result in potential dctrimcnt to the city. If any person authorize: and/or cxacuter, such a modification without city council approval pursuant to this section, then that parson (or his or her dcsigncc) shall, at the next n:'gularly scheduled city council mcctinH, report to the city council 3Z to the nature and extent of the modification and ,]!, to the facts which justified approval or cx:icution of the modification without city council approval.

For purposes of this Section: (a) "cumulative modification value" refers to the aggregate dollar amount of all modifications and change orders to a contract, individually and together; and (b) "revised contract value" refers to the orizinal contract amount plus the cumulative modification value.

A. Contracts may be modified by change order or amendment to add, delete, or revise items, subject to approval routing. Modifications to purchases made under Section 1.54.330 and to maintenance contracts awarded under Section 1.54.486 are approved at the level that would apply to the revised contract value under the Section that governed the original award, and this Section applies to those modifications only as provided in subsections (D) and (F).

B. For public works contracts originally approved under Sections 1.54.440, 1.54.450, 1.54.460, or 1.54.467, the Public Works Director (or desiznee) may approve chance orders, individually or cumulatively, up to the lesser of (i) ten percent (10%) of the original contract amount, or (ii) two hundred fifty thousand dollars (S250,000).

Change orders that would cause the cumulative value to exceed those limits require City Council approval, except as provided in subsection (D).

1. Any single change order in excess of fifty thousand dollars (550,000) shall require the written approval of the Public Works Director, even if within delezated cumulative authority.

2. Cumulative tracking shall be maintained in the procurement file. Each change order shall identify the original contract amount, the cumulative value of prior approved changes, the new change amount, and the resulting revised total.

C. For contracts originally approved under informal purchasing authority (Section 1.54.320), cumulative modifications may be approved by the Director of Administrative Services if the total revised contract value does 97 106
not exceed the !>50,000 upper limit of the informal purchasin@ range in Section 1.54.320, as that limit may be adjusted under Section 1.54.030(B). Modifications that would cause the total revised contract value to exceed that limit require City Council approval, except as provided in subsection (D). For purchases of supplies, equipment, and general services originally awarded under Section 1.54.310 (formal biddinz), modifications follow the same delegated authority structure as subsection (B): the Director of Administrative Services may approve cumulative modifications up to the lesser of ten percent (10%) of the orizinal contract amount or 5250,000; any single modification exceeding S50,000 requires the written approval of the Director.

D. Emergency and urgency modifications. The City Manager may approve a modification or change order without prior City Council action when delay would threaten public health or safety, essential City operations, City property, or compliance with applicable law, subject to written findings supportin@ the urgency and a report to the City Council at its next rezular meeting. Public works emergency modifications shall additionally comply with Section 1.54.370 and Public Contract Code § 22050.

E. Professional services amendments. Amendments to professional services contracts awarded under Section

1.54.350 and task-order amendments under master service azreements awarded under Section 1.54.355 follow the award authority of the underlying contract or task order:

1. Amendments that do not cause the revised contract value or task-order value to exceed the City Manager's award authority under Section 1.54.350(D)(1) or the task-order ceiling under Section 1.54.355(D)(2) may be approved by the City Manager (or designee).

2. Amendments that cause the revised value to exceed those limits, or that increase an approved aggregate cap above 5100,000, require City Council approval.

3. For professional services contracts orizinally awarded by the City Council under Section 1.54.350(D)(2), the City Manager (or desiznee) may approve cumulative amendments up to the lesser of ten percent (10%) of the original contract amount or SIO0,000; cumulative amendments exceedinz those limits require City Council approval.

F. Insurance and bonds. No modification or change order is effective until required insurance and bonds have been confirmed current and, where the modification increases the contract value or extends the term, conformed to the revised value and term as required by the policy issued under Section 1.54.057.

1.54.710 Purpose of rccycling ordinance,cnvironmentally preferable purchasing policy.

The purpose of Sections 1.54.710 through 1.54.750 of this chapter is to promote city support for the purchase of recycled and cnvironmcntally preferred cnvironmentally preferable products, te-minimize environmental impacts of city operations, and markets for recycled and sustainable products.

1.54.720 Definitions used in rccycling ordinancc.cnvironmentally preferable purchasing policy.

A. "Environmentally preferable products" means products that have a lesser or reduced effect on human health and the environment when compared with competing products serving the same purpose, considering raw materials acquisition, production, manufacturinz, packa@inz, distribution, use, reuse, operation, maintenance, and disposal.
/\Z uzcd in Sections 1.5/).710 throuqh 1.5/1.750 of this chapter, the following definitions shall apply:
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"Environmcntally prcfcrablc products" mcan product that have a lesser impact on human health and the cnvironmcnt when compar:'d with compctinH productr,. This comparison may consider raw materials acquisition, production, manufacturinq, packaqinq, distribution, rcuzc, opcratinq and disposal of the product.

B. "Recycled product" means a product containinz post-consumer waste, manufacturin@ scrap, or other recovered materials in amounts meetin@ or exceedin@ the minimum content standards adopted by the City Council or by administrative policy.
c. "Practicable" means sufficient in performance and available at a reasonably competitive price to market and other conditions.non cnvironmentally preferable alternatives, considering total cost of ownership over the useful life of the product.
"Rccyclcd products" mcan products manufactured with waste material that has been recovered from the waste strcam. Recycled material may be derived from post conr,umcr waste (material that har r,crvcd itr, intended cnd ur,c and bccn discarded by a final conzumcrl industrial scrap, manufacturing wastc and/or other waste that otmrwisc would not have bean utilized.
"Rccyclinq" mcanr, the process of collccting, sorting, treating, clcanzing, and rcconstitutin@ materials that would othcrwisc lx'comc solid waste, and rcturninq them to the economic mainstrcam in the form of raw material for new, rcur,cd, or rcconr,tituted products which m:'at the quality standards necessary to be used in thc marketplace.
"Waste prevention" means the action taken by an individual or organization to eliminate or reduce the amount or toxicity of matcrialr, before they enter the municipal solid waste stream. This action is intended to conserve rcsourccz, promote efficiency, and reduce pollution.

D. "Waste prevention" means source reduction practices that reduce the volume or toxicity of products consumed or discarded.

Additional definitions may be adopted by administrative policy.

1.54.730 City department responsibility relative to rccycling.anvironmentally preferable purchasing.

All departments shall prioritize EPP, encourage waste prevention and recyclinz throuzh contracts and purchasing practices, consider lifecycle impacts, specify recycled/environmentally preferable products where practicable, and solicit such products in procurement documents where appropriate.

A. Policy Intent. /\11 city dcpartmcntr, shall adopt and promote the uzc of recycled/rccyclablc supplies and matcrialr, JZ a city priority. In doinq !,O, the city shall:

1. Encourage waste prcvcntion, rccycling, market development and use of recycled/rccyclablc materials through Icasc agrccmcnts, contractual relationships, and purcharing practices with vcndorr,, contractor;, busincsscs and other governmental agencies;

2. /\dopt waste prevention, rccycling, and use of rccyclcd supplies/materials as a city priority;

3. Generate Icr'; waste material by reviewing how supplies, materials and equipment arc manufactured, purchascd, packaqcd, delivered, uscd, and disposed; /1. /\11 city staff will specify recycled and cnvironmcntally preferable productr; whenever practical and porsiblc;

5. The purchasing division of the city's department of financc shall solicit the u;c of rccyclcd and other cnvironmcntally preferred products in its procurement documcntr; ,:)!, appropriate. The purcharing supervisor shall have the authority to make all final decisions relative to the acquirition of matcrialr, under this policy. 108
B. City Sponr,orcd Projects. /\11 city sponsored construction, demolition, and renovation projects shall be considered "covered projects" for the purpose of Sections 1.5/1.710 through 1.5/1.750 of this chapter.

C. Compliancc as a Condition of /\pproval. Compliance with the provisions of these Sections 1.5/1.710 through

1.5/1.750 of this chapter shall be listed J!, a condition of approval on any building or demolition permit irsucd for a covcrcd projcct.

1.54.740 Waste prevention practices.

City staff 4are encouraged to reduce resource consumption of rcsourccr, by incorporating thc following considering durability and repairability, performing routine maintenance, duplex printing, electronic information management, and record-retention practices into thcir daily activities:that support this section.

A. Conr,idcr durability and repair of products prior to acquisition; B. Conduct routinc maintcnancc on products/cquipmcnt to cxtcnd the useful life; C. UZC' duplex features on laser printers and copicr, and spccify duplex on print jobs; D. Sand and storc information electronically whcn pos',iblc; E. Review record retention policies that furthcr the goalr, of this section.

1.54.750 Exemption of rccycling plan.Excmptions and administrative updates to environmentally preferable purchasinH standards.

A. Administrative Updates to Environmentally Preferable Purchasin@ Standards.

The Director of Administrative Services may, by administrative policy, update and expand environmentally preferable purchasing standards, product categories, and specifications to reflect current best practices, market availability, and total-cost-of-ownership considerations, provided such updates remain consistent with this Chapter and applicable law.

B. Exemptions. Nothing in t-Sections 1.54.710 through 1.54.750 requires purchase of this chaptcr shall be construed ,1!, rcquiring a purchaser or contractor to procure products that perform for their intended use, exclude adequate competition, or are not available at reasonable p3terms, i+or within a reasonable time.

1.54.810 Disposition of obsolete and surplus property.

A. Each customer shall submit to the purchasing supervisor, at least annually, a report der,cribing all supplier,, equipment, materials, fixtures, and other personal property of the city in the customer's custody which is deemed by that customer to be surplus or to have become obsolctc or unserviceable.

B. Subject to sub,action F of this section, the purchazing supervisor, with the approval of the city manaHcr, is authorized to !,C!11 or exchange any and all such rurplu,, obsolctc or unzcrviccablc item,, as well JZ any city owned itcrnr, for which replacements arc to be purchased, if the purchazing supervisor determiner, that such items have any salvage valuc. The purchasing supervisor may !;(ll the same for the best price obtainable in the open market, or, when dccmcd advisable by the purchasing supervisor, to the highest bidder at a public sale.

The purchasing supervisor may also, in his or her discretion, cxchangc the same for other property or for crcdit or trade in on other property.
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C. If the purchasing supervisor dctcrmincz that any such obsolete, unserviceable, or =;urplus property has no salvage value, it may be disposcd of, with the approval of the city manaqcr, throu(;h sale, donation, or disposal D. /\11 items sold pursuant to this scction shall be paid for in cash or by certified check or money order payable to E. The purchasing supervisor shall be authorized, with the approval of the city manager, to sign bills of sale and any other documents cvidcncing thc transfcr of title to such property by and on behalf of the city.

A. Departments shall submit at least annually a report identifyin@ surplus/obsolete/unserviceable property.

B. With City Manager approval, the PurchasinH Officer may sell or exchange such property for best obtainable return (including public auction, trade-in, or competitive sale) or dispose of items with no salvage value.

F. Prior to dizposing of any propcrty pursuant to this section havin4 C. Items with an estimated market value * of one thour,and dollar,, SI0,000 or less may be disposed of administratively under subsection (B). Prior to the purchasing supervisor disposition of any item with an estimated market value @reater than SI0,000, the Purchasing Officer shall thc city council of the nature of City Council describing the property proposed for disposition and the proposed salcr, price. Such disposition mcthod and terms of disposition, and shall be subject to the city council', prior obtain City Council approval.

D. Grant-funded equipment. Disposition of equipment acquired with federal or state zrant funds shall comply with the disposition requirements of the zrant source (includinz 2 CFR § 200.313(e) for federal grants), notwithstandinz any provision of this Section to the contrary.

E. Information technology equipment. Before disposition, all information technology equipment (including computers, mobile devices, servers, storage media, and any equipment that has stored City data) shall be subject to data sanitization or destruction in accordance with administrative policy and applicable data- protection standards.

F. Vehicles. Disposition of City vehicles shall include transfer of title throuzh the California Department of Motor Vehicles consistent with applicable law.

G. Public-safety-sensitive items. Items with public-safety sensitivity (including but not limited to police uniforms with City insignia, badges, body armor, weapons, evidence-handling equipment, and similar items) shall not be sold to the zeneral public. The Chief of Police shall determine the appropriate disposition method.

H. Restriction on employee purchases. No City elected official, appointed official, board or commission member, officer, employee, or member of their immediate family (as defined in Section 1.54.055) may purchase surplus property of the City except through a public auction or competitive sale that is open to the general public on the same terms.

I. Items sold shall be paid for in cash, certified check, electronic payment, or other immediately available funds payable to the City. Proceeds shall be deposited and recorded as provided by administrative policy.

J. The Purchasing Officer is authorized, with the approval of the City Manager, to execute bills of sale and other documents evidencing transfer of title.

1.54.990 Severability
If any provision of this Chapter is held invalid, the remainder shall remain in full force and effect. 101
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Item No. 3
SEP 0 3 2026
FILED
C2,'
City of South Gate

CITY COUNCIL
AGENDA 3LL
For the Regular Meeting of September 8, 2026
Originating Department: City Manager's Office
Ci% Manager:
ffl,-,j,,, C=,1,,t,6,,
Ci@ Manager:
'Yj-'=-(j-=
far Rob Houston far Rob Houston
SUBJECT: RECEIVE AND FILE A REPORT ON THE CITY OF SOUTH GATE'S COMPLIANCE ffiI'H THE CALIFORNIA VALUF,S ACT (SB 54) PURPOSE: To provide the City Council with an overview of the City of South Gate's compliance with the California Values Act (SB 54), including applicable requirements governing local law enforcement practices, the handling of immigration-related requests, and the use of City resources in connection with federal immigration enforcement,
RECOMMF,NDED ACTIONS: The City Council will consider:
a. ReceiveandfilethisreportontheCityofSouthGate'scompliancewiththeCaliforniaValues Act (Government Code sections 7284-7284.12); and
b, Direct the City Attorney, in coozdination with the City Managet and the Chief of Police, to continue monitoring legislative and regulatory developments related to the California Values Act and SB 580 and to report to the City Council as necessary; and c. Direct the City Maiiager to ensure that all updated model policies requited by SB 580 (Government Code section 12532.5) are implemented by the statutory deadline of January I, 2027.

FISCAL IMPACT: No fiscal impact.

ANALYSIS: The City of South Gate is committed to upholding the requirements of the California Values Act and maintaining the trust of all members of the community. The City has implemented comprehensive measures to ensure full compliaxice with the Act, as detailed below:

Law Enforcement Policies and Practices
The South Gate Police Department does not use City resources or personnel to investigate, interrogate, detain, detect, or artest persons for gration enforcement purposes, consistent w'th Goyernment Code section 7284,6(a)(I). Officers do not inquire into individuals= immigration status for immigration enforcement purposes.

I
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The South Gate Police Department has remained steadfast in its commitment to adhering to the guidelines set forth by the California Values Act. Department policies which are in line with California Values Act requirements ensure that personnel act in accordance with Senate Bill 54.

Since the inception of Senate Bill 54, the South Gate Police Department has not transferred any people in custody to the custody of ICE for violation of civil immigration laws and does not honor ICE Detainer requests. The Police Department also complies with all annual reporting requirements to the California Department of Justice.

ICE Detainer and Transfer Policies
The Police Department does not honor ICE hold requests, notification requests, or transfer requests, except where permitted under Government Code sections 7282.5 and 7284.6(a)(4)-specifically, for individuals with specified serious criminal convictions where a judicial warrant has been obtained.

No Federal Deputization or Supervision
The City has not placed any peace officers under the supervision of federal agencies, nor has it deputized any officers as special federal officers for immigration enforcement purposes, in accordance with Government Code section 7284.6(a)(2).

No Dedicated ICE Space or Detention Contracts
The City does not provide office space exclusively dedicated to immigration authorities or immigration investigations within any law enforcement facility, as prohibited by Government Code section 7284.6(a)(5). Furthermore, the City does not have, and has not entered into, any contracts with the federal government to house individuals for civil immigration custody purposes, consistent with Governrnent Code sections 7284.6(a)(6) and 7310.

TRUTH Act Compliance
To the extent applicable, the City complies with all TRUTH Act consent and notification requirements set forth in Government Code section 7283.1, including providing written consent forms prior to ICE interviews, furnishing copies of ICE requests to affected individuals, maintaining public records of ICE access, and holding community forums as required.

Task Force Compliance
Any participation by South Gate law enforcement in joint law enforcement task forces is limited to task forces whose primary purpose is not immigration enforcement, and whose enforcement or investigative duties are primarily related to violations of state or federal law unrelated to immigration enforcement, in compliance with Government Code section 7284.6(b)(3).

Reporting Compliance
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The City submits all required annual reports to the California Department of Justice as mandated by Government Code section 7284.6(c)-(d), including reports regarding any joint task force participation and any transfers to immigration authorities.

Model Policy Adoption and SB 580 Implementation
The City has adopted and implemented model policies or equivalent policies as required by Government Code section 7284.8 for public facilities. The City is also on track to implement the updated model policies issued by the Attorney General pursuant to SB 580 (Government Code section 12532.5) by the January 1, 2027, deadline.

Training and Community Trust
City staff and law enforcement officers receive training on the California Values Act and related obligations to ensure ongoing compliance. The City maintains a welcoming environment for all residents regardless of immigration status, consistent with the legislative intent of the Act to promote trust between immigrant communities and public agencies.

BACKGROUND: The California Values Act, also la'iown as Senate Bill 54 (SB 54), was signed into law on October 5, 2017, and took effect on January 1, 2018. The Act is codified at California Government Code sections 7284 through 7284.12. Its constitutionality was upheld by the Ninth Circuit Court of Appeals in United States v. California, 921 F.3d 865 (9th Cir. 2019).

The California Values Act was enacted to ensure that state and local resources are not used to assist in federal civil immigration enforcement, thereby preserving the relationship of trust between California's immigrant cornrnunities and state and local government agencies. The Legislature found that this trust is central to the public safety of all Californians and is threatened when state and local agencies become entangled with federal immigration enforcement operations.

Key legislative findings underlying the Act include:
* ImmigrantsarevaluableandessentialmembersoftheCaliforniacommunity.A1mostoneinthree Californians is foreign born and one in two children in California has at least one immigrant parent.
* A relationship of trust between California's immigrant community and state and local agencies is central to the public safety of all Californians. * Entangling state and local agencies with federal immigration enforcement diverts already limited resources and blurs the lines of accountability between local, state, and federal governtnents. * State and local participation in federal immigration enforcement raises constitutional concerns, including possible Fourth Amendment and Equal Protection violations. 3 113
Additionally, Senate Bill 580 (SB 580), effective January 1, 2026, codified at Government Code section 12532.5, requires all state and local agencies to implement the Attorney General's model policies or equivalent policies by January 1, 2027, further strengthening the framework established by the California Values Act.

KEY PROVISIONS
The California Values Act imposes the following requirements and prohibitions on California law enforcement agencies:

Prohibitions on Local Law Enforcement
Under Governrnent Code section 7284.6(a), California law enforcement agencies shall not:

1. Use agency moneys or personnel to investigate, interrogate, detain, detect, or arrest persons for immigration enforcement purposes, including inquiring into an individual's immigration status.

2. Honor ICE hold requests, notification requests, or transfer requests, except in limited circumstances involving individuals with specified serious criminal convictions and judicial warrants.

3. Provide personal information about an individual, such as home or work addresses, to immigration authorities unless such information is publicly available.

4. Make or intentionally participate in arrests based on civil immigration warrants.

5. Place peace officers under the supervision of federal agencies or deputize officers as special federal officers for immigration enforcement purposes.

6. Use irnrnigration authorities as interpreters for law enforcement matters.

7. Transferindividualstoimtnigrationauthoritiesunlessauthorizedbyajudicialwarrantorjudicial probable cause determination.

8. Provide office space exclusively dedicated to immigration authorities within law enforcement facilities.

9. Contract with the federal government to use law enforcement facilities to house individuals for civil immigration custody.

Permitted Activities
The Act does not prevent California law enforcement from:
* Investigating or arresting individuals for violation of 8 U.S.C. § 1326(a) (illegal reentry subject to felony enhancement) when detected during unrelated law enforcement activity. 4 114
* Responding to requests for criminal history information accessed through the California Law Enforcement Telecommunications System (CLETS).
* Conducting enforcement or investigative duties associated with joint law enforcement task forces, provided the primary purpose of the task force is not irnrnigration enforcement. * Making inquiries to certify T or U Visa victims. * Giving immigration authorities access to interview an individual in custody, subject to TRUTH Act requirements.

TRUTH Act Requirements
Under Government Code section 7283. 1, the TRUTH Act requires local law enforcement agencies to:
* Provide a written consent fornn before any interview between ICE and an individual in local custody regarding civil immigration violations, explaining that the interview is voluntary. * Provide a copy of any ICE hold, notification, or transfer request to the affected individual and inform the individual whether the agency intends to comply. * Maintain all records relating to ICE access as public records. * Hold at least one annual community forum if ICE access was provided during the prior year.

Reporting and Model Policies
Law enforcement agencies must submit annual reports to the California Department of Justice regarding any joint task force participation and any transfers to immigration authorities. The Attorney General has issued updated model policies for schools, libraries, healthcare facilities, courthouses, shelters, and labor agencies, most recently in December 2024 and July 2026 pursuant to SB 580.

ATTACHMENT: None.
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Item No. 4
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SOUTH GATE CITY COUNCIL
AGE[A BJ[LL
For the Regular Meeting of: September 8, 2026
Originating Department: Community Development
Department Director: Cify Matiager:
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Gabriel Perez for Rob Houstori
SUBJECT: SECOND READING OF ORDmANCE N0. 26-06-CC FOR A ZONE CHANGE FROM IF (INDUSTRIAL FLEX) TO M3 (HEAVY MANUFACTURING) FOR A PORTION OF THF, PROPERTY LOCATED AT 9313 RAYO AX7,NUE AND INTENT TO ADOPT A MITIGATED

NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (PL25-146/ZC25-02)
PURPOSE: To adopt Ordinance No. 2026-06-CC to change the zoning designation of a portion of the property at 9313 Rayo Avenue from IF (Industrial Flex) to M3 (Heavy Manufacturing), to match the current M3 zoning designation of the remainder of the property ("Project"), The purpose of the request is to eliininate the split-zone condition and consolidate the entire property to :M3.

RECOMMENDED ACTION: It is recornmended that the City Couricil:
a. Find that in accordance with the California Environmentai Quality Act (CEQA), all potentially significant impacts would be reduced to less-than-significant levels with incorporation of a mitigation measure, and adopt a Mitigated Negative Declaration (MND) consistent with Section 15070 of the State CEQA Guidelines; and
b. WaivefurtherreadingandadoptOrdinanceNo.2026-06-CC,includedasAttachmentl,approving PL25-146/ZC25-02 for a property at 9313 Rayo Avenue.

FISCAL IMPACT: There is no direct fiscal impact associated witli approval of this project.

BACKGROUND: On August 25, 2026, the City Council held a public hearing on PL25-146/ZC25-02 to change the zoning designation of a portion of the property at 9313 Rayo A'venue from IF (Industrial Flex) tO M3 (heavy Manufacturing), tO matCh the CurrentM3 zoning designation ofthe remainder oftheproperty.

At the conclusion of the public hearing, the City Council voted 4-0 to introduce Ordinance No, 2026-06- CC.

On May 20, 2025, the Planning Commission reviewed a request to change the zoning designation of a portion Ofthe PrOPerty at 9313 RaYO Avenue ffotn .b (Industrial FleX) tO M3 (Heavy Manufacturing), The Planning Commission voted, 4-0, to recommend approval of the Zone Change to the City Council. 1 116
City Council
PL25-146/ZC25-02 - 9313 Rayo Ave.

September 8, 2026