HomeMy WebLinkAboutItem 13a - Increasing Purchasing Thresholds
DATE: July 6, 2021
TO: Honorable Mayor and City Council
FROM: Dominic Lazzaretto, City Manager
Hue Quach, Administrative Services Director
By: Vanina Rynkiewicz, Purchasing Officer
SUBJECT: ORDINANCE NO. 2379 AMENDING CHAPTERS 8, 8.5, AND 8.7 OF THE
ARCADIA MUNICIPAL CODE INCREASING THE PURCHASING
THRESHOLD FOR NO BIDS/OPEN MARKET PURCHASES TO $5,000
AND FOR PROFESSIONAL SERVICES AGREEMENTS AWARDED BY
CITY COUNCIL FOR CONTRACTS GREATER THAN $30,000
Recommendation: Introduce
SUMMARY
Article II, Chapters 8, 8.5, and 8.7 of the Arcadia Municipal Code set forth the City’s
purchasing and procurement procedures, including contract award authority and
competitive solicitation requirements. Chapter 8 – Purchasing System was overhauled in
2002 following an effort to clarify and define purchasing procedures adding Chapters 8.5
– Professional Service Contract Procedure and 8.7 – Maintenance Service Contract
Procedure with Ordinance No. 2160. Recently, the current purchasing processes were
evaluated for effectiveness, efficiency, and relevancy to the changing times. Based on
this study, it is recommended that the City Council increase current purchasing thresholds
to further streamline procedures by introducing Ordinance No. 2379 amending Chapters
8, 8.5, and 8.7 of the Arcadia Municipal Code.
BACKGROUND
In 2002, Ordinance 2160 was introduced to amend sections of Chapter 8 that outline
general purchasing requirements. The Ordinance made changes to clarify and distinguish
between formal and informal contract procedures, amending purchasing thresholds to
different price points, and added sections that cover Exceptions and Exemptions for
situational emergency cases, where the City Manager has the ability to purchase without
complying with bidding procedures. Ordinance 2160 also included the addition of Chapter
8.5 for Professional Service Contract Procedures and Chapter 8.7 for Maintenance
Service Contract Procedures.
Ordinance No. 2379 Amending Chapters 8, 8.5, and 8.7 of the Arcadia Municipal Code
Increasing Purchasing Thresholds
July 6, 2021
Page 2 of 4
Staff recently reviewed all sections of Chapters 8, 8.5 and 8.7 of the City’s Municipal
Code, relating to the City’s Purchasing System, the Purchasing Procedure Manual, and
current practices to determine overall effectiveness, efficiency, and relevancy to today’s
environment. Based on this review, minor changes are recommended for Chapters 8,
8.5, and 8.7 of the Arcadia Municipal Code.
DISCUSSION
Presently, Chapters 8, 8.5 and 8.7 of the Arcadia Municipal Code set forth the purchasing
procedures and dollar thresholds for all purchases made by the City. The existing
procedures state:
• Purchases for supplies, materials, and equipment, in an amount equal to or less
than $2,500 may be awarded by the City departments using an open market
procedure where no bids are required but are highly encouraged.
• Professional service contracts of more than $2,500 and less than $15,000 may be
awarded by the requesting department, subject to written approval by the City
Manager.
• Professional service contracts more than $15,000 shall be awarded by the City
Council.
Representatives from each department were organized to discuss ways that the current
procurement process could be streamlined for additional efficiency and effectiveness. It
was the consensus and recommendation from all participants that the purchasing dollar
threshold limits needed to be updated and increased to adjust for inflation and current
market rate adjustments related to labor and other special services. These suggestions
would allow staff to streamline purchasing processes for small dollar item purchases,
allow staff to quickly obtain informal bids to secure products and materials for necessary
services, and to bring aboard professional assistance swiftly to lessen or avoid delays to
City programs or services.
To determine what that appropriate level is for these monetary thresholds, a review of
the inflationary component was determined by using the All Urban Consumers index for
the Los Angeles - Long Beach – Anaheim area, and by applying the month of May going
back to 2002. In addition to the inflationary adjustment, a survey of surrounding cities
was conducted for their purchasing thresholds, using factors such as size of budgets and
city services, to provide a comparative of cost in relation to the “local” economy.
Between 2002 and 2021, the All Urban Consumers cumulative rate of inflation increased
by 57.5%, reducing the City’s purchasing power by more than half since the procurement
limits were set in place. A survey of surrounding cities’ bidding threshold limits showed
that the vast majority of cities have set the no bids or open market threshold limit at or
Ordinance No. 2379 Amending Chapters 8, 8.5, and 8.7 of the Arcadia Municipal Code
Increasing Purchasing Thresholds
July 6, 2021
Page 3 of 4
above $5,000. Some of these cities have smaller budgets and are not full-service cities
like Arcadia. The same survey for Professional Services contracts awarded by City
Council show an average above $40,000. The results of the survey are presented in the
table below:
Open
Market
Threshold
Prof. Services
Council Approval
FY20/21
General Fund
Budget Full-Service City
City Amount Police Fire Water
Arcadia (current) $2,500 $15,000 $63,881,700 Yes Yes Yes
Alhambra $3,500 $50,000 $69,790,649 Yes Yes Yes
Azusa $5,000 $25,000 $48,751,588 Yes No Yes
Baldwin Park $7,500 $25,000 $29,077,554 Yes No No
Chino $10,000 $100,000 $72,136,251 Yes No Yes
Diamond Bar $5,000 $45,000 $25,811,159 No No No
Monrovia $5,000 $25,000 $41,882,610 Yes Yes Yes
Rosemead $5,000 $30,000 $24,743,150 No No No
Temple City $5,000 $25,000 $14,730,490 No No No
Yorba Linda $5,000 $75,000 $40,150,519 No No No
Average: $5,350 $41,500 $43,095,567 - - -
Arcadia (Requested) $5,000 $30,000 $63,881,700 Yes Yes Yes
The following are proposed updates to the current purchasing thresholds as specified in
Chapters 8, 8.5 and 8.7 of the Municipal Code:
I. Changes to Non-Competitive Bids Dollar Limit
a. That the City’s buying of materials, equipment, and services of less than
$5,000 be done by an open market procedure; and
b. That the City’s buying of materials, equipment, and services in excess of
five thousand dollars $5,000 be done by through an informal competitive
bid procedure.
Ordinance No. 2379 Amending Chapters 8, 8.5, and 8.7 of the Arcadia Municipal Code
Increasing Purchasing Thresholds
July 6, 2021
Page 4 of 4
II. Changes to Council Approval Dollar Limit for Professional Services Agreements
a. That the Professional Service Agreement in excess of $5,000 and less than
$30,000 may be awarded by the requesting department, subject to written
approval by the City Manager, or their designee; and
b. That the Professional Service Agreement in excess of $30,000 shall be
awarded by the City Council.
A revised Ordinance governing Purchasing thresholds has been prepared, amending
Chapters 8, 8.5, and 8.7 of the Arcadia Municipal Code to update and increase the
purchasing thresholds to streamline and expedite the informal and formal bidding process
for retaining goods or services and to maintain a focus on the best use of every taxpayer
dollar.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT
There is no immediate fiscal impact; however, it is believed that the amendments will
result in a more efficient and cost-effective process for citywide procurements.
RECOMMENDATION
It is recommended that the City Council determine that this action does not constitute a
project and is therefore, exempt under, the California Environmental Quality Act
(“CEQA”); and introduce Ordinance No. 2379 amending Chapters 8, 8.5, and 8.7 of the
Arcadia Municipal Code to increase the purchasing thresholds for no bids/open market
purchases to $5,000 and for Professional Services Agreements awarded by City Council
for contracts greater than $30,000.
Attachments: Ordinance No. 2379 (first reading)
Current Chapter 8, 8.5, 8.7 Purchasing System of the Municipal Code
ARTICLE II. - ADMINISTRATION
CHAPTER 8. PURCHASING SYSTEM
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CHAPTER 8. PURCHASING SYSTEM
PART 1. ESTABLISHMENT AND PURPOSE
2810. ESTABLISHMENT OF CENTRALIZED PURCHASING SYSTEM.
In order to establish efficient procedures for the purchase of supplies, materials and equipment, to secure
for the City supplies, materials and equipment at the lowest possible cost, commensurate with the quality needed,
to exercise positive financial control over purchases, to clearly define and delegate authority for the purchasing
function, and to assure the quality of purchases, there is hereby established a centralized purchasing system,
under which is defined the authority for the purchase of supplies, materials and equipment required or purchased
by or for the City.
PART 2. DEFINITIONS
2820. ADMINISTRATIVE SERVICES DIRECTOR.
The term "Administrative Services Director" as used herein shall mean the Administrative Services Director of
the City of Arcadia or his or her designee.
2821. CITY MANAGER.
The term "City Manager" as used herein shall mean the City Manager of the City of Arcadia or the person
designated by the City Manager to perform all or some of the duties prescribed in this Chapter.
2822. EMERGENCY.
The term "Emergency" as used herein means a condition which makes competitive bidding, either formal or
informal, impractical or not in the best interests of the City.
2823. PUBLIC WORKS PROJECT.
The term "Public Works Project" as used herein shall mean the erection, construction, alteration or
improvement or repair of any public structure, building, road, street or other public improvement or work,
excluding maintenance work.
2824. USING DEPARTMENT OR DEPARTMENT.
The term "using department" or "department" as used herein shall include any office or division of City
government whose cost of operations is provided by funds of the City over which the City Council has any control
and when not otherwise provided for in the Chapter.
ARTICLE II. - ADMINISTRATION
CHAPTER 8. - PURCHASING SYSTEM
PART 3. RESPONSIBILITY FOR PURCHASES
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PART 3. RESPONSIBILITY FOR PURCHASES
2830. DESIGNATION.
The Administrative Services Director shall be the person designated to assume all duties and responsibilities
specified in this Chapter, including, but not limited to, the contracting for, purchasing, storing, distribution and
disposal of supplies, materials and equipment.
2831. DUTIES.
The Administrative Services Director shall have the authority and it shall be his/her duty to perform the
functions set forth in the following subsections.
2831.1. SAME.
Purchase or contract for supplies, materials and equipment required by any using department in accordance
with purchasing procedures prescribed by this Chapter.
2831.2. SAME.
Negotiate and recommend execution of contracts for the purchase of supplies, materials and equipment.
2831.3. SAME.
Review requests for purchases to determine if they are reasonable in quantity and quality in relation to
known needs of the using department, to ascertain that they are within budgetary allotments, and to determine
whether supplies already on hand in the warehouse or in other departments, can be used to fill the request.
2831.4. SAME.
Control emergency purchases in accordance with the approved procedures.
2831.5. SAME.
Prepare and maintain standard specifications for supplies, materials and equipment whenever practicable,
and to consolidate and schedule orders for all standard items.
2831.6. SAME.
Maintain records as to source of supply for types of purchases, bids, bidders' lists and bid quotations.
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2831.7. SAME.
Act to procure for the City the needed quality in supplies, materials, equipment and services at least expense
to the City.
2831.8. SAME.
Discourage uniform bidding and endeavor to obtain competition as full and open as possible on all
purchases.
2831.9. SAME.
Prescribe and maintain such forms as are reasonably necessary to the operation of the procedures provided
for in this Chapter.
2831.10. SAME.
Supervise the inspection of all supplies, materials and equipment purchased to insure conformance with
specifications.
2831.11. SAME.
Recommend the transfer of surplus or unused supplies, materials and equipment between departments as
needed, and the sale or other disposal of all supplies, materials and equipment which cannot be used by any City
agency or which have become unsuitable for City use.
2831.12. SAME.
Cause to be delivered or distributed to the using department all supplies, materials and equipment
purchased specifically for such department, and cause to be distributed to the using department from available
warehouse or stockroom items on hand, supplies, materials and equipment when requisitioned by any
department.
PART 4. PROCEDURE
DIVISION 1. GENERAL, PROCEDURES AND REQUIREMENTS
2841.1. PURCHASING AND CONTRACTING GOALS.
The City shall endeavor to secure supplies, services and equipment at the lowest possible cost
commensurate with the quality and scope needed, subject to any limitations imposed by the City Charter, this
Chapter or the Purchasing Procedure Manual.
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2841.2. ESTIMATES OF REQUIREMENTS.
All using departments shall file detailed estimates of their requirements for supplies, materials and
equipment in such a manner, at such time and for such periods as the Administrative Services Director shall
prescribe.
2541.3. REQUISITIONS.
All using departments shall submit requests for supplies, materials, equipment and services to the
Administrative Services Director by standard requisition form as specified in the Purchasing Procedure Manual.
2841.4. CONTRACTS, PURCHASE ORDERS AND LIMITED PURCHASE ORDERS.
All purchases of supplies, materials and equipment shall be made only by contract, purchase order or limited
purchase order, issued or executed as hereinafter provided in the Purchasing Procedure Manual.
2841.5. AVAILABILITY OF FUNDS.
The Administrative Services Director shall not issue any purchase order for supplies, materials or equipment
unless there exists an unencumbered appropriation in the appropriate fund account against which said purchase is
to be made or charged.
2841.6. INSPECTION AND TESTING.
The Administrative Services Director or using department shall inspect all supplies and equipment delivered
to the using department. The Administrative Services Director or using department shall also review all contractual
services performed to determine their conformance with the specifications set forth in the purchase order or
contract. The using department shall have the right to waive any minor defect or informality with the approval of
the Administrative Services Director. The Administrative Services Director shall also have the authority to require
chemical and physical tests of samples submitted with bids and samples and deliveries as the Administrative
Services Director deems necessary to determine their quality and conformance with specifications.
2841.7. ETHICAL CONDUCT.
City personnel shall conduct all purchases and enter into all contracts with the highest ethical standards in
accordance with the ethical policies established in the Purchasing Procedure Manual and as may be established in
the City's administrative policies. Conflicts of interest with vendors and contractors shall be avoided so that all
vendors and contractors are given an equal opportunity to seek and procure City contracts.
DIVISION 2. PUBLIC WORKS PROJECT CONTRACT PROCEDURES
2842. WHEN REQUIRED.
Public Works Projects, as defined in this Chapter, involving an expenditure of thirty thousand dollars
($30,000) or more shall be let to the lowest, responsive and responsible bidder in accordance with Section 1212 of
the City Charter, such additional procedures that may be established in the Purchasing Procedure Manual, and the
following procedures:
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2842.1. NOTICE INVITING BIDS.
The notice inviting bids shall state the time and place for the receiving and opening of sealed bids and shall
distinctly describe the project. At a minimum, the notice inviting formal bids shall: (1) describe the project; (2)
state how to obtain more detailed information about the project; (3) state the date, time and place for the
submission of sealed bids; and (4) include any other information required by the City Charter and this Chapter, as
may be determined by the Administrative Services Director and City Attorney. The City shall also provide any
additional notice it deems proper.
2842.2. PUBLISHED NOTICE.
Notice inviting bids for public works projects shall be published in a newspaper of general circulation at least
once (1), ten (10) days prior to the scheduled opening of bids.
2842.3. CITY AUTHORITY.
The City may reject any or all bids received, and may readvertise at its discretion. The City may also waive
any minor irregularities in each bid received.
2842.4. AWARD OF CONTRACTS.
All public works contracts in excess of thirty thousand dollars ($30,000) shall be awarded by the City Council.
2842.5. EMERGENCY PROCEDURES.
(a) Contracts for Public Works Projects may be let without following the procedures established in this section if
such purchases are deemed by the City Council to be of urgent necessity for the preservation of life, health,
or property or to restore necessary services to the public. Such determination of Emergency shall be
authorized by resolution of the City Council passed by at least four (4) affirmative votes. The resolution shall
contain a declaration of facts that constitute the Emergency.
(b) Except for Public Works Projects, in situations determined by the City Manager to constitute an Emergency,
the City Council hereby delegates to the City Manager the power to declare an Emergency and take any
directly related and immediate action required by the Emergency, up to a total of one hundred thousand
dollars ($100,000) Emergency expenditures of more than one hundred thousand dollars ($100,000) shall first
be approved by the City Council. Work shall be performed without the benefit of competitive bidding, either
formal or informal, only so long as necessary:
(1) For projects of more than thirty thousand dollars ($30,000), a report on the Emergency and work
performed shall be provided at the next regular meeting of the City Council.
(2) For projects of thirty thousand dollars ($30,000) or less, the City Manager shall determine, on his or her
own as the action continues, whether there is a need to continue the action without following the
prescribed method of bidding provided by this Chapter. The City Manager shall terminate the
Emergency action at the earliest possible date that conditions warrant, so that the remainder of the
Emergency action may be completed pursuant to required procedures.
2842.6. USE OF CITY FORCES.
This Section shall not apply to work done by the City with its own personnel if the City Council determines
that such work can be performed more economically by City forces.
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2842.7. OTHER PUBLIC WORKS PROJECTS.
Public Works Projects, as defined in this Chapter, involving an expenditure of twenty-nine thousand nine
hundred ninety nine dollars ($29,999) or less shall be let in accordance with Division 4 or Division 5 of this Part, and
any additional, procedures that may be established in the Purchasing Procedure Manual.
2842.8. PREVAILING WAGES REQUIRED.
Except on locally funded public works projects of twenty-five thousand dollars ($25,000) or less when the
project is for construction work, or fifteen thousand dollars ($15,000) or less when the project is for alteration,
demolition, repair or maintenance work, all contractors performing work on a City public works projects shall be
subject to California prevailing wage law, codified at California Labor Code Section 1720 et seq., as it may be
amended from time to time. The only limitation on this requirement shall be in the event federal funding
requirements supersede state prevailing wage laws.
( Ord. No. 2320, § 1, 11-18-2014 )
DIVISION 3. FORMAL CONTRACT PROCEDURE
2843. WHEN REQUIRED.
Purchases and contracts for supplies, materials and equipment, other than Public Works Projects,
professional services, other contractual services and the sale of personal property, in an amount greater than
thirty thousand dollars ($30,000) may be awarded by the City using a formal contract procedure pursuant to the
following requirements:
2843.1. AWARDING OF BID.
Contracts shall be awarded to the highest or lowest bidder, as the case may be, pursuant to the procedures
established in this Division and the Purchasing Procedure Manual.
2843.2. NOTICE INVITING BIDS.
Notice inviting bids shall include a general description of the articles to be purchased or sold, shall state
where bid blanks and specifications may be secured, and the time and place for opening of bids.
2843.3. PUBLISHED NOTICE.
Notice inviting bids shall be published in a newspaper of general circulation and published in the City at least
ten (10) days prior to the scheduled opening of bids. If there is no newspaper of general circulation, the notice
inviting bids shall be posted in at least three (3) public places in the City that have been designated by City Council
resolution as appropriate placed for the posting of public notices
2843.4. BIDDERS' LIST.
The Administrative Services Director or using department shall maintain a list of qualified contractors,
suppliers and vendors, identified according to categories of work or supplies. The Administrative Services Director
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or using department shall also solicit sealed bids from responsible, prospective suppliers and bidders whose names
are on the Bidders' List or who have requested their names to be added thereto.
2843.6. BIDDER'S SECURITY.
When deemed necessary by the Administrative Services Director, bidder's security may be prescribed in the
public notice inviting bids. If bid security is prescribed, the same type and rate of security shall be required of each
bidder, and no contract may be awarded to any bidder failing to post the required bid security except upon
approval of the City Council. Each bidder shall be entitled to the return of his bid security within sixty (60) days
after the opening of bids for which security was posted or upon execution of a contract with the City by the
successful bidder, whichever occurs first; provided that a successful bidder shall forfeit his bid security upon refusal
or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless
the City is responsible for the delay. The City Council may, upon the refusal or failure of the successful bidder to
execute the contract, award it to the next responsible bidder. Alternatively, the City Council may decide to reject
all bids and rebid the contract. If the City Council awards the contract to the next lowest bidder, the amount of the
lowest bidders 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 original lowest bidder.
2843.7. BID OPENING PROCEDURE.
Sealed bids shall be submitted to the City Clerk and shall be specifically identified as bids on the envelope.
Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received
shall be available for public inspection during regular business hours for a period of not less than thirty (30)
calendar days after the bid opening.
2843.8. REJECTION OF BIDS.
At its discretion, the City Council may reject any and all bids presented and readvertise for bids.
2843.9. AWARD OF CONTRACTS.
Contracts shall be awarded by the City Council to the lowest or highest responsive and responsible bidder, as
the case may be, except as otherwise provided herein.
2843.10. TIE BIDS.
If two or more bids received are for the same total amount or unit price, invoice and delivery terms, quality
and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City
Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the
time of the bid opening.
2843.11. PERFORMANCE BONDS.
The City Council shall have the authority to require a performance bond before entering into a contract in
such amount as it shall find reasonably necessary to protect the best interests of the City. If the City Council
requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
ARTICLE II. - ADMINISTRATION
CHAPTER 8. - PURCHASING SYSTEM
PART 4. - PROCEDURE
DIVISION 4. INFORMAL CONTRACT PROCEDURE
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DIVISION 4. INFORMAL CONTRACT PROCEDURE
2844. WHEN REQUIRED.
Purchases and contracts for supplies, materials and equipment, other than professional services and other
contractual services, in an amount greater than two thousand five hundred dollars ($2,500) and less than thirty
thousand dollars ($30,000) may be awarded by the City using an informal procedure to the lowest responsive and
responsible bidder at fair and reasonable prices, pursuant to the following requirements:
2844.1. AWARDING OF BID.
Purchases and contracts may be competitively bid in accordance with the procedures established in the
Purchasing Procedure Manual. Selection of the winning bid shall be based on criteria and requirements established
in advance by the City Manager and Administrative Services Director.
2844.2. CITY COUNCIL AWARDS.
Contracts of more than thirty thousand dollars ($30,000) shall be awarded by the City Council.
2844.3. DEPARTMENT AWARDS.
Contracts of more than two thousand five hundred dollars ($2,500) and less than thirty thousand dollars
($30,000) may be awarded by the requesting department, subject to written approval by the Administrative
Services Director.
2844.4. EXCEPTIONS.
All exceptions and exemptions from the bid procedures contained in Division 6 of this Part shall be applicable
to the procedures established in this Section.
2844.5. USE OF CITY FORCES.
This Section shall not apply to work done by the City with its own personnel if the City Council determines
that such work can be performed more economically with City forces than by contracting for such work.
DIVISION 5. PURCHASE ORDER PROCEDURE
2845. PURCHASE ORDER PROCEDURE.
Purchases of supplies, materials and equipment, and sales of property in an amount greater than two
thousand five hundred dollars ($2,500) and less than thirty thousand dollars ($30,000) may be awarded by the
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Administrative Services Director in the open market without observing the procedures prescribed in Division 3 and
Division 4 of this Part. Such purchase orders shall comply with all provisions of the Purchasing Procedure Manual
and the following:
2845.1. PRICE QUOTATIONS.
Open market purchases shall, wherever practical, be based on at least three (3) price quotations.
2845.2. REQUEST FOR PRICE QUOTATIONS.
The Administrative Services Director or using department shall solicit price quotations from prospective
vendors pursuant to the regulations contained in the Purchasing Procedure Manual.
2845.3. PRICE QUOTATION RECORDS.
The Administrative Services Director shall, consistent with the City's records retention policies, keep a record
of all open market purchase orders and price quotations for a period of one (1) year after the submission of price
quotations or the placing of orders. This record while so kept shall be open to public inspection.
2845.4. LIMITED PURCHASE ORDER.
A Limited Purchase Order procedure shall be established, implemented and used by the Administrative
Services Director for the purchase of goods and/or services of less than two thousand five hundred dollars
($2,500). The Limited Purchase Order procedures shall be established in the Purchasing Procedure Manual.
DIVISION 6. EXCEPTIONS AND EXEMPTIONS
2846.1. EXCEPTIONS FROM BID PROCEDURES.
Supplies, materials and equipment may be purchased, personal property sold and contracts may be let
without complying with any of the bidding procedures specified in Divisions 3, 4 and 5 of this Part, Chapter 8.5
and/or Chapter 8.7 in any of the following situations:
(a) Upon the approval of the City Manager when an emergency requires that an order be placed with the
nearest available source of supply or contract to be let. For projects of more than thirty thousand
dollars ($30,000), a report on the emergency and work performed shall be provided at the next regular
meeting of the City Council.
For projects of thirty thousand dollars ($30,000) or less, the City Manager shall determine, on his or her
own as the action continues, whether there is a need to continue the action without the benefit of bidding
required by this Chapter. The City Manager shall terminate the emergency action at the earliest possible date
that conditions warrant, so that the remainder of the emergency action may be completed pursuant to the
bidding procedures required by this chapter;
(b) When the amount of the purchase or sale involved is less than two thousand five hundred dollars
(2,500);
(c) When the Administrative Services Director determines that a competitive market does not exist, such
as, but not limited to, when the needed supplies, services and equipment are proprietary and can only
be provided by one vendor and the amount involved is less than thirty thousand dollars ($30,000);
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(d) When the Administrative Services Director determines that a competitive bid procedure has been
conducted by another public agency (e.g. through CMAS) and the price to the City is equal to or better
than the price to that public agency;
(e) When the purchase is made on behalf of the City by the State Department of General Services;
(f) When no bids are received pursuant to any of the bidding procedures required by this Chapter;
(g) When otherwise authorized by this or any other Chapter.
2846.2. EXEMPTIONS FROM CENTRALIZED PURCHASING.
The Administrative Services Director with the approval of the City Manager, may in writing authorize any
department to purchase or contract for specified supplies, materials, equipment and services independently of the
Administrative Services Director. The Administrative Services Director shall ascertain that all purchases or
contracts made in accordance with this Section conform with all procedures established in this Chapter and shall
obtain periodic reports on the purchases and contracts made under such written authorization from each
department.
2846.3. WAIVER.
After notice of failure to comply with one or more provisions hereof, the City Council may declare void any
transaction not in conformity herewith or may waive any irregularity or noncompliance herewith with respect to
such transaction.
PART 5. SURPLUS SUPPLIES AND EQUIPMENT
2850. SURPLUS SUPPLIES AND EQUIPMENT.
All using departments shall submit to the Administrative Services Director, at such times and in such form as
he or she shall prescribe, reports showing all supplies and equipment which are no longer used or which have
become obsolete or worn out. The Administrative Services Director shall have authority to sell or otherwise
dispose of all supplies and equipment which cannot be used by any department or which have become unsuitable
for City use, or to exchange the same for, or trade in the same on, new supplies or equipment. Such sales shall be
made pursuant to Division 3, Division 4 or Division 5 of Part 4, whichever is applicable. The proceeds of any such
sale shall be credited to the fund from which the purchase price thereof was originally paid, but such proceeds
shall be unbudgeted surplus in such fund until appropriated by the City Council.
PART 6. PURCHASING PROCEDURE MANUAL
2860. PREPARATION OF PURCHASING PROCEDURE MANUAL.
The Administrative Services Director shall prepare a Purchasing Procedure Manual so that all concerned may
have a clear definition and understanding of the goals and purposes of this Chapter. The Purchasing Procedure
Manual shall describe and explain in detail the procedures that using departments must follow in the procurement
of equipment, goods and supplies and shall include among other things, samples of the various forms necessary to
carry out the intent of this Chapter.
ARTICLE II. - ADMINISTRATION
CHAPTER 8.5 PROFESSIONAL SERVICE CONTRACT PROCEDURE
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CHAPTER 8.5 PROFESSIONAL SERVICE CONTRACT PROCEDURE
2860.1. WHEN REQUIRED.
Professional service contracts, in an amount greater than two thousand five hundred dollars ($2,500), may
be awarded by the City on the basis of demonstrated competence and qualifications necessary for the satisfactory
performance of the professional services required to be performed at fair and reasonable prices, pursuant to the
following requirements:
2860.2. AWARDING OF BID.
Selection of winning proposals for professional services shall be based on professional competence and the
criteria and requirements established in advance by the City Manager and Administrative Services Director.
2860.3. CITY COUNCIL AWARDS.
Professional service contracts of more than fifteen thousand dollars ($15,000) shall be awarded by the City
Council.
2860.4. DEPARTMENT AWARDS.
Professional service contracts of more than two thousand five hundred dollars ($2,500) and less than fifteen
thousand dollars ($15,000) may be awarded by the requesting department, subject to written approval by the City
Manager.
2860.5. EXCEPTIONS.
All exceptions and exemptions from the bid procedures contained in Division 6 of Part 4 of Chapter 8 shall be
applicable to the procedures established in this Section.
(Chapter 8.5 added by Ord. 2160 adopted 6-18-02, eff. 7-19-02)
CHAPTER 8.7 MAINTENANCE SERVICE CONTRACT PROCEDURE
PART 1. FORMAL PROCEDURE
2871. WHEN REQUIRED.
Maintenance service contracts for public, buildings, grounds and equipment in an amount greater than thirty
thousand dollars ($30,000) may be awarded by the City using a formal contract procedure pursuant to the
following requirements:
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2871.1. AWARDING OF BID.
Maintenance service contracts shall be awarded to the lowest bidder.
2871.2. NOTICE INVITING BIDS.
Notice inviting bids shall include a general description of the maintenance services to be provided and shall
state where bid blanks, instructions and specifications may be secured, and the time and place for opening of bids.
2871.3. PUBLISHED NOTICE.
Notice inviting bids shall be published in a newspaper of general circulation published in the City at least ten
(10) days prior to the scheduled opening of bids. If there is no newspaper of general circulation, the notice inviting
bids shall be posted in at least three (3) public places in the City that have been designated by City Council
resolution as appropriate place for the posting of public notices.
2871.4. BIDDERS' LIST.
The Administrative Services Director or using department shall maintain a list of qualified maintenance
service providers according to categories of maintenance needed. The Administrative Services Director or using
department shall also solicit sealed bids from responsible, prospective suppliers and bidders whose names are on
the Bidders' List or who have requested their names to be added thereto.
2871.6. BIDDER'S SECURITY.
When deemed necessary by the Administrative Services Director, bidder's security may be prescribed in the
public notice inviting bids. If bid security is prescribed, the same type and rate of security shall be required of each
bidder, and no contract may be awarded to any bidder falling to post the required bid security except upon
approval of the City Council. Each bidder shall be entitled to the return of his bid security within sixty (60) days
after the opening of bids for which security was posted or upon execution of a contract with the City by the
successful bidder, whichever occurs first; provided that a successful bidder shall forfeit his bid security upon refusal
or failure to execute the contract within ten (10) days after the notice of award of contract has been mailed, unless
the City is responsible for the delay. The City Council may, upon the refusal or failure of the successful bidder to
execute the contract, award it to the next responsible bidder. Alternatively, the City Council nay decide to reject all
bids and rebid the contract. If the City Council awards the contract to the next lowest bidder, the amount of the
lowest bidders 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 original lowest bidder.
2871.7. BID OPENING PROCEDURE.
Sealed bids shall be submitted to the City Clerk and shall be specifically identified as bids on the envelope.
Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received
shall be available for public inspection during regular business hours for a period of not less than thirty (30)
calendar days after the bid opening.
2871.8. REJECTION OF BIDS.
At its discretion, the City Council may reject any and all bids presented and readvertise for bids.
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2871.9. AWARD OF CONTRACTS.
Contracts shall be awarded by the City Council to the lowest responsive and responsible bidder, as the case
may be, except as otherwise provided herein.
2871.10. TIE BIDS.
If two or more bids received are for the same total amount or unit price, invoice and delivery terms, quality,
and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City
Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the
time of the bid opening.
2871.11. PERFORMANCE BONDS.
The City Council shall have the authority to require a performance bond before entering into a contract in
such amount as it shall find reasonably necessary to protect the best interests of the City. If the City Council
requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
2871.12. PREVAILING WAGES REQUIRED.
Except on locally funded public works projects of twenty-five thousand dollars ($25,000) or less when the
project is for construction work, or fifteen thousand dollars ($15,000) or less when the project is for alteration,
demolition, repair or maintenance work, all contractors performing work on a City public works projects shall be
subject to California prevailing wage law, codified at California Labor Code Section 1720 et seq., as it may be
amended from time to time. The only limitation on this requirement shall be in the event federal funding
requirements supersede state prevailing wage laws.
( Ord. No. 2320, § 2, 11-18-2014 )
PART 2. INFORMAL PROCEDURE
2872. WHEN REQUIRED.
Maintenance service contracts for public buildings, grounds and equipment in an amount greater than two
thousand five hundred dollars ($2,500) and less than thirty thousand dollars ($30,000) may be awarded by the City
using an informal procedure on the basis of either demonstrated competence and qualifications necessary for the
satisfactory performance of the services required to be performed or to the lowest responsive and responsible
bidder at fair and reasonable prices, pursuant to the following requirements:
2872.1. AWARDING OF BID.
Selection of the winning bid shall be based on criteria and requirements established in advance by the City
Manager and Administrative Services Director.
2872.2. CITY COUNCIL AWARDS.
Contracts of more than thirty thousand dollars ($30,000) shall be awarded by the City Council.
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2872.3. DEPARTMENT AWARDS.
Contracts of more than two thousand five hundred dollars ($2,500) and less than thirty thousand dollars
($30,000) may be awarded by the requesting department, subject to written approval by the Administrative
Services Director.
2872.4. EXCEPTIONS.
All exceptions and exemptions from the bid procedures contained in Division 6, Part 4 of Chapter 8 shall be
applicable to the procedures established in this Section.
2872.5. USE OF CITY FORCES.
This Section shall not apply to work done by the City with its own personnel if the City Council determines
that such work can be performed more economically with City forces than by contracting for such work.
(Chapter 8.7 added by Ord. 2160 adopted 6-18-02, eff. 7-19-02)