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HomeMy WebLinkAboutAgenda Report - April 6, 2022 H-02f., CITY OF it AW C A L I F O R N I A COUNCIL COMMUNICATION AGENDA ITEM Hm2 AGENDA TITLE: Introduce Ordinance Amending Lodi Municipal Code Chapter 2.12 "City Manager" by Repealing and Reenacting Section 2.12.060(T) "Powers and Duties Generally" and Amending Lodi Municipal Code Chapter 3.20 "Purchasing System," by Repealing and Reenacting Section 3.20.045 "State and Local Agency Contracts", Section 3.20.070 "Bidding", 3.20.080 "Purchase Orders", 3.20.100 "Formal Contract Procedure, and 3.20.110 "Open Market Procedure" MEETING DATE: April 6, 2022 PREPARED BY: Andrew Keys, Deputy City Manager RECOMMENDED ACTION: Introduce ordinance amending Lodi Municipal Code Chapter 2.12 "City Manager" by repealing and reenacting Section 2.12.060(T) "Powers and Duties Generally" and amending Lodi Municipal Code Chapter 3.20 "Purchasing System," by repealing and reenacting Section 3.20.045 "State and Local Agency Contracts", Section 3.20.070 "Bidding", 3.20.080 "Purchase Orders", 3.20. 100 "Formal Contract Procedure, and 3.20.110 "Open Market Procedure". BACKGROUND INFORMATION: The City Manager currently has a contract authority of $20,000 for purchasing goods and services without advanced City Council approval. This authority level was granted to the City Manager in section 2.12.060(T) of the Lodi Municipal Code by ordinance adopted in 2011. In this same section, Department Heads have contract authority from $10,000 to $15,000 as specifically listed. At the time the $20,000 City Manager purchasing level was set, Lodi was on the lower end of granting purchasing authority to its City Manager in comparison to other local agencies its size. Since that time, Lodi has grown in terms of population and size of its budget and operations. Costs of goods and services have also increased rapidly, rendering the twenty thousand ($20,000) threshold restrictive to conducting business. City Staff has reviewed comparable agency purchasing authority for City Manager's multiple times since 2011 and at each time, Lodi's City Manager had the least purchasing authority of any responding agency of comparable size. Many smaller cities grant their City Manager purchasing authority greater than the sixty thousand ($60,000) being requested. The greater flexibility offered by increasing the City Manager's purchasing authority will speed up the City's ability to respond to service demands and department needs. A contract that must be publicly bid and awarded by the City Council can take 3 months or longer depending on complexity, ability to come to terms APPROVED: St -79C- e"f(Mar30,202209:01PDT) Stephen Schwabauer, City Manager with the vendor, available staff resources and timing of Council meeting dates relative to the recognition of the need for a new contract. A contract that requires City Manager approval only can be executed in a matter of one or two weeks and is subject primarily to the availability of the department, City Manager and the City's legal staff to review the document to ensure the contract adequately protects the City's interests. For similar reasons, Department Head authority is requested to increase to $30,000. Quarterly reporting obligations remain for purchases and for contracts entered into under these authority levels so City Council will always be made aware of purchasing activity undertaken by all staff on a regular basis. To execute these change, amendments are necessary to section 2.12.060(T), 3.20.045, 3.20.100, and 3.20.110. Additionally, staff is requesting to increase the informal bidding threshold from $2,500 to $10,000 for supplies and services. Currently, the City is required to obtain and record three bids for all purchases estimated to exceed $2,500. The additional effort to obtain bids, document bids, have that documentation reviewed by purchasing staff and housed within the City's electronic records system exceeds the value of any savings achieved through bidding in most cases. This also takes resources in all departments away from service delivery. Staff is proposing to increase the informal bidding threshold to provide efficiencies in purchasing that will outweigh any minor increase in cost that may be seen through direct purchases of under $10,000. Strict provisions remain in the Municipal Code that prevent splitting of purchases, bids or contracts to avoid either the bidding or purchasing thresholds established. To execute this change, amendments are necessary to section 3.20.070, 3.20.080 and 3.20.110 Fiscal Impact: There is no fiscal impact for this item Funding Available: N/A Andrew Keys Deputy City Manager/Internal Services Director ORDINANCE NO. AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPER 2.12 — "CITY MANAGER" — BY REPEALING AND REENACTING SECTION 2.12.60, "POWERS AND DUTIES GENERALLY", AND AMENDING LODI MUNICIPAL CODE CHAPTER 3.20 — "PURCHASING SYSTEM" — BY REPEALING AND REENACTING SECTION 3.20.045, "STATE AND LOCAL AGENCY CONTRACTS", SECTION 3.20.070, "BIDDING", SECTION 3.20.080, "PURCHASE ORDERS", SECTION 3.20.100, "FORMAL CONTRACT PROCEDURE", AND SECTION 3.20.110, "OPEN MARKET PROCEDURE" BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1. The Lodi Municipal Code Chapter 2.12 entitled "City Manager" is hereby repealed and reenacted in its entirety to read as follows: 2.12.060 - Powers and duties generally. The city manager shall be the administrative head of the city government under the direction and control of the council, except as otherwise provided by this code or other ordinance of the city. He shall be responsible to the city council for the efficient administration of all the affairs of the city which are under his control. In addition to the city manager's general powers as administrative head, and not as a limitation thereon, it is his duty and he shall have power: A. Enforcement of laws: To see that all laws and ordinances are duly enforced; B. Appointment, removal, etc., of certain officers: To employ, discipline or remove all heads of departments and all subordinate officers and employees of the city; to transfer employees from one department to another; and to consolidate or combine offices, positions, departments or units under his jurisdiction. Nothing contained in this subsection shall apply, however, to the city attorney, city clerk or city treasurer, each of whom shall be appointed and removed by the city council; C. Control over departments and appointive officers: To exercise control over all departments and divisions of the city government and over all appointive officers and employees thereof except as provided in this section; D. Attendance at council meetings: To attend all meetings of the council and its committees unless excused therefrom by the council or by the committee and except when his removal is under consideration by the council; E. Recommend ordinances: To recommend to the council for adoption such measures and ordinances as he deems necessary or expedient; F. Advice as to finances: To keep the city council at all times advised as to the financial conditions and needs of the city, and at least quarterly shall submit a financial report; G. Preparation of budget: To prepare the budget annually and submit it to the council and be responsible for its administration after adoption; H. Annual report: To prepare and submit to the council as of the end of the fiscal year a complete report on the finances and administrative activities of the city for the preceding year; Salary plan: To prepare and recommend to the city council a salary plan; Purchasing: To purchase all supplies for all of the departments or divisions thereof, and no expenditure shall be submitted or recommended to the city council except upon report or approval of the city manager; K. Investigation of city affairs: To make investigations into the affairs of the city or any department or division thereof or any contract, or the proper performance of any obligation running to the city; Investigation of complaints: To investigate all complaints in relation to all matters concerning the administration of the government of the city and in regard to the service maintained by public utilities in the city, and to see that all franchises, permits and privileges granted by the city are faithfully observed; M. Supervision of public buildings, parks, etc.: To exercise general supervision over all public buildings, public parks, streets and other public property which are under the control and jurisdiction of the city council; N. Organizational chart: To prepare and submit to the city council an organization chart showing the organization plan for all departments of the city government; O. Issue licenses and permits: To issue on behalf of the council all licenses and permits not otherwise provided for by ordinance; P. Public works construction: To superintend the construction of all public work done by the city; Q. Devotion of entire time to duties: To devote his entire time to the duties and interest of the city; R. Delegated duties: To perform such other duties and exercise such other powers as may be delegated by ordinance or motion of the city council; S. Political activity: The city manager shall not participate in any city political activities or politics; T. Contracts: To execute on behalf of the city, without city council approval, contracts, as defined in Lodi Municipal Code [Section] 3.20.015, in the amount ofj—sixty thousand dollars or less, and to delegate authority to subordinate officers and employees to execute contracts without city council or city manager approval contracts in the amount of fifto the isand or loss tri the p blip works r er designee fif�rt mzceriZrrva�vrra-vrr�.rrZv-crT c n the isaR d er loss tri the eleGtris utility doreGtOF or designee aR44eoLhirty thousand dollars or less to all Directors or desianeesether diF8Gt.,rs or desigRees. Nothing in this section shall allow departure from the other purchasing requirements of Chapter 3.20 of this code. For contracts of not less thanteR thirty -nor greater thanj-sixty thousand the city manager shall quarterly prepare for the city council a report which includes a list of the contracts into which the city has entered during the previous three months. No contract shall be split into smaller segments to avoid the provisions of this subsection. (Government Code § 4526, Public Contract Code § 10359) SECTION 2. The Lodi Municipal Code Chapter 3.20 entitled "Purchasing System" is hereby amended to read as follows: Sections: 3.20.045 - State and local agency contracts. The bidding process described in this chapter may be waived when advantageous for the city and authorized by the city manager for purchase of supplies, equipment, or contractual services awarded in accordance with formally adopted bidding or negotiation procedures approved by the governing boards of other California public agencies. Purchases or contracts in excess of the City Manager's contract authority as defined by Section 2.12.060(T) of this codetwenty thousand dollars shall require the approval of the city council. 3.20.070 - Bidding. Purchases of supplies, services, equipment, and the sale of personal property shall be by bid procedures pursuant to Sections 3.20.100 and 3.20.110. Bidding shall be dispensed with only (1) bid in cases of emergency as defined in this chapter, and therefore requires that an order be placed with the best available source of service or supply, (2) when the amount involved is less than twe en thousand fide hundFed dollars (but competitive quotes shall be obtained if it is in the city's best interest to do so), (3) when the commodity can be obtained from only one vendor, due to (a) product standardization by resolution of the city council, or (b) need for branded replacement parts or supplies for equipment of like brand; (4) when professional or technical requirements preclude competitive bidding, pursuant to Section 3.20.075 of this chapter, or (5) when the city council determines that the purchase or method of purchase would be in the best interests of the city. 3.20.080 - Purchase orders. Purchases of supplies and equipment in an amount of tentwe thousand fide hURdFed dollars or more shall be made only by written contract or by purchase orders. Purchase orders should not be used to procure services, except as noted in Section 3.20.085. 3.20.100 - Formal contract procedure. Purchases of supplies, equipment, contractual services, public projects, and sales of personal property of an estimated value greater than twenty th,,wsapd- de-W-,r&the City Manager's contract authority as defined by Section 2.12.060(T) of this code shall follow the formal contract procedure: A. Specifications and plans shall be subject to review and approval by the city council prior to the solicitation of bids. B. The advertisement for bids will be conducted as provided for in the Government Code. C. Notice Inviting Bids. Notice inviting bids shall include a general description of the articles to be purchased or sold, or work to be performed, and shall state where bid forms and specifications may be secured and the time and place for opening of bids. 1. Published Notice. Notice inviting bids shall be published at least ten calendar days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices. 2. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list. 3. Internet Posting. The purchasing officer may also advertise pending bids for purchases or sales on the city's web page. D. Bidder's Security. When required by law or deemed necessary by the purchasing officer, bidder's security may be prescribed in the notice inviting bids. Bidders shall be entitled to the return of their bid security; except that a successful bidder shall forfeit all or part of his or her bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. Thereafter, if the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. E. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. F. Rejection of Bids. In its discretion, the city council may reject any and all bids presented and, if it is in the city's best interest to do so, readvertise for bids. G. Award of Contracts. After evaluation of bids, contract shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter. In determining the lowest responsible bid, considerations shall include but not be limited to such factors as (1) whether any portion of the state sales tax payable on the article which is the subject of the bid will be rebated to the city by reason of awarding such contract to a person or firm domiciled within the city, (2) total life -cycle costs, and/or (3) residual value. H. Tie Bids. If two or more bids received are for the same total amount or unit price, with quality, service, and factors considered in Section 3.20.100 (E) above, being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the lowest bid determined by toss of a coin performed at a time as soon after the bid opening as is possible. Performance Bond. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessity 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 bidding documents. 3.20.110 - Open market procedure. Purchases of supplies, equipment, contractual services and sales of personal property of an estimated value in the amount of the City Manager's contract authority as defined by Section 2.12.060(T) of this code or less may be made in the open market without observing the formal contract procedure prescribed by Section 3.20.100. A. Minimum Number of Informal Bids or Quotations. Open market purchases shall, wherever possible, be based on at least three informal bids or quotations, and shall be awarded to the lowest responsible bidder. B. Request for Quotations. The purchasing officer or purchasing authority shall solicit informal written bids or quotations from prospective vendors by written request, by telephone or by electronic data interchange. Quotations or informal bids shall be in writing for amounts greater than twe-ten thousand fide hundred -dollars. C. Quotations and written informal bids shall be submitted to the requestor, who shall keep a record of all quotations, bids, and open market orders for a period of one year after the submission of quotations or the placing of orders. This record, while so kept, shall be open to public inspection. D. The purchasing officer or purchasing authority may reject any and all informal bids, offers and quotations when, in his or her discretion, it shall be in the best interest of the city to do so. SECTION 3. No Conflict. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 4. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care toward persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 5. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 6. Effective Date and Publication. This Ordinance shall take effect thirty (30) days after its adoption. In lieu of publication of the full text of the Ordinance within fifteen (15) days after its passage, a summary of the Ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council, and a certified copy shall be posted in the office of the City Clerk pursuant to Government Code section 36933(c)(1). Approved this day of 2022 MARK CHANDLER Mayor Approved as to Form: JANICE MAGDICH City Attorney jdm Attest: PAMELA M. FARRIS Assistant City Clerk State of California County of San Joaquin I, Pamela M. Farris, Assistant City Clerk of the City of Lodi, do hereby certify that Ordinance No. was introduced at a regular meeting of the City Council od the City of Lodi held April 6, 2022, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held , 2022, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — 2022 - Signature: Jan D/Magdich (Ma&a—'LL Email: jmagdich@lodi.gov PAMELA M. FARRIS Assistant City Clerk SUBJECT: Please immediately confirm receipt of'this fax by calling 333-6702 CITY OF LODI P. O. BOX 3006 LODI, CALIFORNIA 95241-1910 ADVERTISING INSTRUCTIONS SUMMARY OF ORDINANCE NOS. 1995, 1996, 1997, AND 1998 PUBLISH DATE: SATURDAY, APRIL 9, 2022 TEAR SHEETS WANTED: One (1) please SEND AFFIDAVIT AND BILL TO: PAMELA M. FARRIS, ASSISTANT CITY CLERK LNS ACCT. #5100152 City of Lodi P.O. Box 3006 Lodi, CA 95241-1910 DATED: THURSDAY, APRIL 7, 2022 ORDERED BY: PAMELA M. FARRIS ASSISTANT CITY CLERK PAMELA M. FARRIS ASSISTANT CITY CLERK KAYLEE CLAYTON ADMINISTRATIVE CLERK SEND PROOF OFADVERTISEMENT. THANK YOU!! Emailed to the Sentinel at legals@lodinews.com at 7 '37 (time) on 7 (dace) \\cvcfi Iv01 \adm i n istration$ Wdmin istrati on\CLERK\Ord Summaries\Advins. doc CITY OF LODI ORDINANCE NO. 1995 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE TITLE 3 — REVENUE AND FINANCE — CHAPTER 3.20, "PURCHASING SYSTEM," BY REPEALING AND REENACTING SECTION 3.20.105, "PUBLIC WORKS PROJECTS," IN ITS ENTIRETY TO PROVIDE INFORMAL BIDDING PROCEDURES UNDER THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT. The purpose of this ordinance is to provide informal bidder procedures for Public Works projects that comply with the California Uniform Construction Cost Accounting Commission. Introduced March 16, 2022. Adopted April 6, 2022, and effective May 6, 2022. AYES: Hothi, Khan, Kuehne, and Nakanishi; NOES: None; ABSENT: Mayor Chandler. ORDINANCE NO. 1996 AN UNCODIFIED ORDINANCE OF THE LODI CITY COUNCIL AMENDING CHAPTER 1.12 — MUNICIPAL ELECTIONS —OF THE LODI MUNICIPAL CODE ADOPTING MAP DESIGNATING REVISED CITY COUNCIL ELECTION DISTRICTS AND BOUNDARIES BASED ON FINAL 2020 CENSUS DATA. The purpose of this ordinance is to revise the City Council election districts and boundaries based on the final 2020 census data and in conformance with the federal Voting Right Act, California Constitution, and Fair Maps Act, as shown on the map below. The map is also available for viewing at https:/lca- lodi.civicplus.comlDoc_umentCenter/View/5042/Yellow or at the City Clerk's Office at 221 West Pine Street, Lodi. Introduced April 6, 2022. Adoption to be considered April 20, 2022. AYES: Hothi, Khan, Kuehne, and Nakanishi; NOES: None; ABSENT: Mayor Chandler. ORDINANCE NO. 1997 AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LODI LEVYING AND APPORTIONING THE SPECIAL TAX IN TERRITORY ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2007-1 (PUBLIC SERVICES) (ANNEXATION NO. 13). The purpose of this ordinance is to levy and apportion the special tax within the territory annexed into the Community Facilities District No. 2007-1 (Public Services) as Annexation No. 13. Introduced April 6, 2022. Adoption to be considered April 20, 2022. AYES: Hothi, Khan, Kuehne, and Nakanishi; NOES: None; ABSENT: Mayor Chandler. ORDINANCE NO. 1998 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPER 2.12, "CITY MANAGER," BY REPEALING AND REENACTING SECTION 2.12.60, "POWERS AND DUTIES GENERALLY," AND AMENDING LODI MUNICIPAL CODE CHAPTER 3.20, "PURCHASING SYSTEM," BY REPEALING AND REENACTING SECTION 3.20.045, "STATE AND LOCAL AGENCY CONTRACTS," SECTION 3.20.070, "BIDDING," SECTION 3.20.080, "PURCHASE ORDERS," SECTION 3.20.100, "FORMAL CONTRACT PROCEDURE," AND SECTION 3.20.110, "OPEN MARKET PROCEDURE". The purpose of this ordinance is to increase purchasing authority for the City Manager and City of Lodi Department Heads and to increase the informal bidding threshold for supplies and services to provide efficiencies in purchasing. Introduced April 6, 2022. Adoption to be considered April 20, 2022. AYES: Hothi, Khan, Kuehne, and Nakanishi; NOES: None; ABSENT: Mayor Chandler. Pamela M. Farris, Assistant City Clerk City of Lodi April 6, 2022 Certified copies of the full text of these ordinances are available in the office of the Lodi City Clerk. DECLARATION OF POSTING ORDINANCE NO. 1998 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPER 2.12, "CITY MANAGER," BY REPEALING AND REENACTING SECTION 2.12.60, "POWERS AND DUTIES GENERALLY," AND AMENDING LODI MUNICIPAL CODE CHAPTER 3.20, "PURCHASING SYSTEM," BY REPEALING AND REENACTING SECTION 3.20.045, "STATE AND LOCAL AGENCY CONTRACTS," SECTION 3.20.070, "BIDDING," SECTION 3.20.080, "PURCHASE ORDERS," SECTION 3.20.100, "FORMAL CONTRACT PROCEDURE," AND SECTION 3.20.110, "OPEN MARKET PROCEDURE" On Thursday, April 7, 2022, in the City of Lodi, San Joaquin County, California, a certified copy of Ordinance No. 1998 (attached hereto, marked Exhibit "A") was posted in the Lodi City Clerk's Office. I declare under penalty of perjury that the foregoing is true and correct. Executed on April 7, 2022, at Lodi, California. Pamela M. Farris TM Assistant City Clerk ordsu mmarieAnDecPost.doc ORDERED BY: PAMELA M. FARRIS ASSISTANT CITY CLERK Kaylee Clayton Administrative Clerk ORDINANCE NO. 1998 AN ORDINANCE OF THE LODI CITY COUNCIL AMENDING LODI MUNICIPAL CODE CHAPTER 2.12, "CITY MANAGER," BY REPEALING AND REENACTING SECTION 2.12.60, "POWERS AND DUTIES GENERALLY," AND AMENDING LODI MUNICIPAL CODE CHAPTER 3.20, "PURCHASING SYSTEM," BY REPEALING AND REENACTING SECTION 3.20.045, "STATE AND LOCAL AGENCY CONTRACTS," SECTION 3.20.070, "BIDDING," SECTION 3.20.080, "PURCHASE ORDERS," SECTION 3.20.100, "FORMAL CONTRACT PROCEDURE," AND SECTION 3.20.110, "OPEN MARKET PROCEDURE" BE IT ORDAINED BY THE LODI CITY COUNCIL AS FOLLOWS: SECTION 1, The Lodi Municipal Code Chapter 2.12 entitled "City Manager" is hereby repealed and reenacted in its entirety to read as follows: 2.12.060 - Powers and duties generally. The city manager shall be the administrative head of the city government under the direction and control of the council, except as otherwise provided by this code or other ordinance of the city. He shall be responsible to the city council for the efficient administration of all the affairs of the city which are under his control. In addition to the city manager's general powers as administrative head, and not as a limitation thereon, it is his duty and he shall have power: A. Enforcement of laws: To see that all laws and ordinances are duly enforced; B. Appointment, removal, etc., of certain officers: To employ, discipline or remove all heads of departments and all subordinate officers and employees of the city; to transfer employees from one department to another; and to consolidate or combine offices, positions, departments or units under his jurisdiction. Nothing contained in this subsection shall apply, however, to the city attorney, city clerk or city treasurer, each of whom shall be appointed and removed by the city council; C. Control over departments and appointive officers: To exercise control over all departments and divisions of the city government and over all appointive officers and employees thereof except as provided in this section; D. Attendance at council meetings: To attend all meetings of the council and its committees unless excused therefrom by the council or by the committee and except when his removal is under consideration by the council; E. Recommend ordinances: To recommend to the council for adoption such measures and ordinances as he deems necessary or expedient; F. Advice as to finances: To keep the city council at all times advised as to the financial conditions and needs of the city, and at least quarterly shall submit a financial report; G. Preparation of budget: To prepare the budget annually and submit it to the council and be responsible for its administration after adoption; H. Annual report: To prepare and submit to the council as of the end of the fiscal year a complete report on the finances and administrative activities of the city for the preceding year; Salary plan: To prepare and recommend to the city council a salary plan; J. Purchasing: To purchase all supplies for all of the departments or divisions thereof, and no expenditure shall be submitted or recommended to the city council except upon report or approval of the city manager; K. Investigation of city affairs: To make investigations into the affairs of the city or any department or division thereof or any contract, or the proper performance of any obligation running to the city; L. Investigation of complaints: To investigate all complaints in relation to all matters concerning the administration of the government of the city and in regard to the service maintained by public utilities in the city, and to see that all franchises, permits and privileges granted by the city are faithfully observed; M. Supervision of public buildings, parks, etc.: To exercise general supervision over all public buildings, public parks, streets and other public property which are under the control and jurisdiction of the city council; N. Organizational chart: To prepare and submit to the city council an organization chart showing the organization plan for all departments of the city government; O. Issue licenses and permits: To issue on behalf of the council all licenses and permits not otherwise provided for by ordinance; P. Public works construction: To superintend the construction of all public work done by the city; Q. Devotion of entire time to duties: To devote his entire time to the duties and interest of the city; R. Delegated duties: To perform such other duties and exercise such other powers as may be delegated by ordinance or motion of the city council; S. Political activity: The city manager shall not participate in any city political activities or politics; T. Contracts: To execute on behalf of the city, without city council approval, contracts, as defined in Lodi Municipal Code [Section] 3.20.015, in the amount of sixty thousand dollars or less, and to delegate authority to subordinate officers and employees to execute contracts without city council or city manager approval contracts in the amount of thirty thousand dollars or less to all Directors or designees. Nothing in this section shall allow departure from the other purchasing requirements of Chapter 3.20 of this code. For contracts of not less than thirty thousand nor greater than sixty thousand, the city manager shall quarterly prepare for the city council a report which includes a list of the contracts into which the city has entered during the previous three months. No contract shall be split into smaller segments to avoid the provisions of this subsection. (Government Code § 4526, Public Contract Code § 10359) SECTION 2. The Lodi Municipal Code Chapter 3.20 entitled "Purchasing System" is hereby amended to read as follows: 2 Sections: 3.20.045 - State and local agency contracts. The bidding process described in this chapter may be waived when advantageous for the city and authorized by the city manager for purchase of supplies, equipment, or contractual services awarded in accordance with formally adopted bidding or negotiation procedures approved by the governing boards of other California public agencies. Purchases or contracts in excess of the City Manager's contract authority as defined by Section 2.12.060(T) of this code shall require the approval of the city council. 3.20.070 - Bidding. Purchases of supplies, services, equipment, and the sale of personal property shall be by bid procedures pursuant to Sections 3.20.100 and 3.20.110. Bidding shall be dispensed with only (1) bid in cases of emergency as defined in this chapter, and therefore requires that an order be placed with the best available source of service or supply, (2) when the amount involved is less than ten thousand dollars (but competitive quotes shall be obtained if it is in the city's best interest to do so), (3) when the commodity can be obtained from only one vendor, due to (a) product standardization by resolution of the city council, or (b) need for branded replacement parts or supplies for equipment of like brand; (4) when professional or technical requirements preclude competitive bidding, pursuant to Section 3.20.075 of this chapter, or (5) when the city council determines that the purchase or method of purchase would be in the best interests of the city. 3.20.080 - Purchase orders. Purchases of supplies and equipment in an amount of ten thousand dollars or more shall be made only by written contract or by purchase orders. Purchase orders should not be used to procure services, except as noted in Section 3.20.085. 3.20.100 - Formal contract procedure. Purchases of supplies, equipment, contractual services, public projects, and sales of personal property of an estimated value greater than the City Manager's contract authority as defined by Section 2.12.060(T) of this code shall follow the formal contract procedure: A. Specifications and plans shall be subject to review and approval by the city council prior to the solicitation of bids. B. The advertisement for bids will be conducted as provided for in the Government Code. C. Notice Inviting Bids. Notice inviting bids shall include a general description of the articles to be purchased or sold, or work to be performed, and shall state where bid forms and specifications may be secured and the time and place for opening of bids. 1. Published Notice. Notice inviting bids shall be published at least ten calendar days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the city, or if there is none, it shall be posted in at least three public places in the city that have been designated by ordinance as the places for posting public notices. 2. Bidders' List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on the bidders' list. 3 3. Internet Posting. The purchasing officer may also advertise pending bids for purchases or sales on the city's web page. D. Bidder's Security. When required by law or deemed necessary by the purchasing officer, bidder's security may be prescribed in the notice inviting bids. Bidders shall be entitled to the return of their bid security; except that a successful bidder shall forfeit all or part of his or her bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. Thereafter, if the city council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. E. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening. F. Rejection of Bids. In its discretion, the city council may reject any and all bids presented and, if it is in the city's best interest to do so, readvertise for bids. G. Award of Contracts. After evaluation of bids, contract shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter. In determining the lowest responsible bid, considerations shall include but not be limited to such factors as (1) whether any portion of the state sales tax payable on the article which is the subject of the bid will be rebated to the city by reason of awarding such contract to a person or firm domiciled within the city, (2) total life -cycle costs, and/or (3) residual value. H. Tie Bids. If two or more bids received are for the same total amount or unit price, with quality, service, and factors considered in Section 3.20.100 (E) above, being equal and if the public interest will not permit the delay of readvertising for bids, the city council may accept the lowest bid determined by toss of a coin performed at a time as soon after the bid opening as is possible. Performance Bond. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessity 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 bidding documents. 3.20.110 - Open market procedure. Purchases of supplies, equipment, contractual services and sales of personal property of an estimated value in the amount of the City Manager's contract authority as defined by Section 2.12.060(T) of this code or less may be made in the open market without observing the formal contract procedure prescribed by Section 3.20.100. A. Minimum Number of Informal Bids or Quotations. Open market purchases shall, wherever possible, be based on at least three informal bids or quotations, and shall be awarded to the lowest responsible bidder. 4 B. Request for Quotations. The purchasing officer or purchasing authority shall solicit informal written bids or quotations from prospective vendors by written request, by telephone or by electronic data interchange. Quotations or informal bids shall be in writing for amounts greater than ten thousand dollars. C. Quotations and written informal bids shall be submitted to the requestor, who shall keep a record of all quotations, bids, and open market orders for a period of one year after the submission of quotations or the placing of orders. This record, while so kept, shall be open to public inspection. D. The purchasing officer or purchasing authority may reject any and all informal bids, offers and quotations when, in his or her discretion, it shall be in the best interest of the city to do so. SECTION 3. No Conflict. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 4. No Mandatory Duty of Care. This ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care toward persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 5. Severability. If any provision of this ordinance or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application. To this end, the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this ordinance irrespective of the invalidity of any particular portion thereof. SECTION 6. Effective Date and Publication. This Ordinance shall take effect thirty (30) days after its adoption. In lieu of publication of the full text of the Ordinance within fifteen (15) days after its passage, a summary of the Ordinance may be published at least five (5) days prior to and fifteen (15) days after adoption by the City Council, and a certified copy shall be posted in the office of the City Clerk pursuant to Government Code section 36933(c)(1). Approved as to Form: JANICE MAGDICH City Attorney Attest: OLIVIA NASHED City Clerk A Approved this 20th day of April, 2022 MARK CHANDLER Mayor State of California County of San Joaquin I, Olivia Nashed, City Clerk of the City of Lodi, do hereby certify that Ordinance No. 1998 was introduced at a regular meeting of the City Council of the City of Lodi held April 6, 2022, and was thereafter passed, adopted, and ordered to print at a regular meeting of said Council held April 20, 2022, by the following vote: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — I further certify that Ordinance No. 1998 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. OLIVIA NASHED City Clerk C