Article
1 Contracts Requirements
2 Procedure and Requirements for Competitive Bidding on City Contracts
3 Quarterly Reports – Contracts
3.1 [Reporting Requirements for Long Term Contracts]
3.5 Use of Independent Contractors Instead of City Employees
4 Local Business Preference Program
6 Environmentally Preferable Products Purchasing Program
9 Bid Preferences
10 Worker Retention
11 Living Wage
12 Lessees Required to Have Tax Registration Certificates
13 City Contractor Evaluations
14 Contractor Responsibility Program
15 Regulations Regarding Participation in or Profits Derived From Slavery by any Company Doing Business with the City
16 Use Tax Direct Payment Permit Requirement
17 Sweat-free Procurement
18 First Source Hiring
19 Public Infrastructure Stabilization Ordinance
22 City Contractors' Use of Criminal History for Consideration of Employment Applications
23 Los Angeles World Airport's Local Business, Local Small Business and Local-State Disabled Veterans Business Enterprise Program
24 Disclosure of Border Wall Contracting
25 Permanent Supportive Housing and Facilities Infrastructure Stabilization Ordinance
27 Zero Waste City Facilities and Events on City Property
Section
10.1 Right and Power of City to Make Contracts.
10.1.1 Departments’ Authorization of Contracts.
10.2 Formalities.
10.2.1 Contracts Required to Be in Writing.
10.3 Submission of Terms to Council.
10.4 Notices Inviting Bids or Requesting Proposals.
10.5 Limitation and Power to Make Contracts.
10.5.2 Authority of the Board of Water and Power Commissioners to Enter into Contracts for the Purchase of Local Renewable Energy and Related Interconnection Agreements
10.5.3 Authority of the Board of Water and Power Commissioners to Enter into Contracts for Natural Gas and Biogas and Financial Transactions for Natural Gas and the Delegation of Such Authority to the General Manager.
10.5.4 Authority of The General Manager of The Department of General Services to Negotiate And Execute Leases, Subleases, And Licenses of Specified Durations For The Placement of Telecommunications Equipment on City Property.
10.5.5 Emergency Waiver of Contracting Limitations.
10.7 “Prevailing Wage” Provisions.
10.7.1 Enforcement of Prevailing Wage Requirements.
10.8 Mandatory Provisions Pertaining to Non-discrimination in Employment in the Performance of City Contracts.
10.8.1 Definitions.
10.8.1.1 Summary of Thresholds.
10.8.2 All Contracts: Non-discrimination Clause.
10.8.2.1 Equal Benefits Ordinance.
10.8.3 Equal Employment Practices Provisions.
10.8.4 Affirmative Action Program Provisions.
10.8.5 Notice of Bid Announcement.
10.8.6 Exemptions.
10.8.7 Interpretation of “Disability” and “Medical Condition.”
10.9 Contracts Exempt from Mandatory Provisions Pertaining to Non-discrimination in Employment.
10.10 Child Support Assignment Orders.
10.11 Notice to Prospective Contractors and Suppliers Pertaining to Non-discrimination in Employment.
10.12 Power of City Attorney to Withhold Endorsement.
10.13 Mandatory Provisions Pertaining to Non-discrimination in Employment and Affirmative Action in Hiring Employees in the Performance of Work on Certain City Construction Contracts.
10.14 Provisions Pertaining to Listing of Subcontractors.
10.14.1 Sale of Animals from the Los Angeles City Zoo.
The City of Los Angeles, in addition to any other rights and powers now held by it, or that hereafter may be granted to it under the constitution or laws of the State, shall have the right and power, subject to the restrictions in the Charter to make contracts.
SECTION HISTORY
Based on Charter, Sec. 2(11)(k).
(a) Any action by any of the departments named in Sections 500 and 600 of the Charter approving a contract which obligates the City for a longer period of time than one year or which involves consideration reasonably valued in excess of $25,000 shall be taken by the head of the department by order or resolution. However, the Board of Commissioners of the Departments of Airports, Harbor, and Water and Power may each authorize its General Manager to contract on behalf of its department if the contract does not involve consideration reasonably valued in excess of $150,000. In determining the reasonable value of consideration under this article, the awarding authority shall aggregate the amount payable under the original action with the amounts payable under all renewals, extensions, and amendments.
(b) Notwithstanding the foregoing, the Board of Commissioners of the Department of Water and Power may delegate authority to its General Manager to enter into contracts which are not speculative for the purchase, sale or exchange of natural gas for a period not to exceed one year in duration and up to a limit of 350 MMCFD not to exceed twenty dollars ($20) per MMBtu per transaction. Such price cap shall not apply to contracts that are not speculative for the purchase of natural gas for a period not to exceed 15 days in duration and up to a limit of 100 MMCFD per transaction that are necessary to provide a reliable power supply to the retail customers of the Department of Water and Power at the least cost as determined by the General Manager. The General Manager or a designee shall provide notice (manual or electronic) of such purchase within two (2) business days to: the Associate Director, Infrastructure Services of the Office of the Mayor; the Chair of the Energy and Environment Committee of the City Council; the Chief Administrative Analyst of the City Administrative Officer; the Policy Advisor, Energy and Environment of the Chief Legislative Analyst; the Ratepayer Advocate of the Office of Public Accountability; the Commission Secretary of the Board of Water and Power Commissioners; or similar position of the aforementioned City representatives. Financial instruments and other option contracts shall not be included in this delegation of authority.
(c) Notwithstanding the provisions of Subsection (a) of this section, the Boards of the Los Angeles Departments of Harbor Commissioners and Airports Commissioners may authorize the respective General Managers of those Departments to enter into contracts on behalf of the Department that satisfy all of the following:
(1) The contract is not for personal services; and
(2) The contract does not obligate the City for a term of longer than three years including all extensions, renewals and amendments; and
(3) The contract does not involve consideration reasonably valued in excess of One Hundred Fifty Thousand Dollars ($150,000) annually.
The Harbor Department and the Department of Airports shall each submit a report quarterly to their respective Boards identifying all contracts, including the dollar value involved in each contract, authorized by the General Manager of the respective Department pursuant to the provisions of this subsection.
Three years after the last effective date of this subsection, the Harbor Department, and the Department of Airports shall each submit a report to the Mayor and the City Council evaluating the effects and benefits of the authority granted by the provisions of this subsection, and include a recommendation regarding whether to continue the provisions of this subsection.
(d) Notwithstanding the provisions of Subsection (a) of this section, the Board of Water and Power Commissioners may authorize its General Manager to enter into contracts on behalf of the Department that satisfy all of the following:
(1) The contract is not for personal services;
(2) The contract does not obligate the City for a term of longer than three years, including all extensions, renewals and amendments; and
(3) The contract does not involve consideration reasonably valued in excess of Five Million Dollars ($5,000,000) annually.
(e) The DWP will report quarterly to the Board and the City Council with respect to contracts pending, approved, or terminated by the General Manager or the Board. The report shall also set forth the status of any pending requests for the use of independent contractors pursuant to Charter Section 1022. The DWP will post on its website a listing of all contracts awarded by the DWP within 60 days of the end of each calendar year.
(f) During any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, the City Council, by resolution approved by the Mayor, may delegate to the Chief Administrative Officers of any City Department, including the Proprietary Departments, the authority to contract for the procurement of goods and services that safeguard life, health, safety, and property, or continue City services. The resolution shall establish the consideration and maximum period of time for any contract authorized by the Chief Administrative Office and may specify any other limits applicable to the delegation. The resolution may apply to all City Departments or may specify which Departments are encompassed by the resolution. The resolution may specify the duration of the delegation but, in no event, shall the delegation extend beyond the period of the declared local disaster or emergency.
SECTION HISTORY
Added by Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95.
Amended by: Ord. No. 173186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper 7-1-00; Ord. No. 174,377, Eff. 1-26-02; Subsec. (c) added, Ord. No. 181,967, Eff. 1-22-12; Subsec. (c), Ord. No. 182,594, Eff. 6-29-13; Subsec. (c), Ord. No. 183,115, Eff. 7-24-14; Subsec. (c), Ord. No. 183,518, Eff. 6-9-15; Subsec. (b), Ord. No. 183,949, Eff. 12-5-15; Subsec. (c) amended and Subsecs. (d) and (e) added, Ord. No. 185,471, Eff. 4-23-18; Subsec. (f) added, Ord. No. 186,637, Eff. 5-29-20; Subsec. (a), Ord. No. 187,995, Eff. 11-6-23.
The City shall not be, and is not, bound by any contract unless the contract complies with the requirements of this section and all other applicable requirements of the Charter:
(a) Writing. Except in case of urgent necessity for the preservation of life, health, or property as provided in Section 371(e) of the Charter, the following contracts must be in writing:
(1) Contracts for the sale, purchase, or other transfer of any interest in real property;
(2) Contracts for the lease of real property for one year or longer;
(3) Contracts for the sale or purchase of goods with consideration exceeding $500 that, by the contract terms, cannot be performed within one year; and
(4) Contracts with consideration reasonably valued at more than $25,000, annually or in the aggregate.
(b) Approval. Any contract expending City funds, whether or not in writing, must be approved by the board, officer, or employee authorized to make the contract. The contract, if in writing, shall be signed on behalf of the City by
(1) The Mayor;
(2) The General Manager, board, officer, or employee authorized to enter into the contract. The approval shall include a certification attesting that the signatory has no personal, financial, beneficial, or familial interest in the contract; or
(3) In the case of a contract authorized by the City Council, the person authorized by the City Council to enter into the contract. The approval shall include a certification attesting that the signatory has no personal, financial, beneficial, or familial interest in the contract.
(c) Approval as to Form. Every contract must be approved by the City Attorney as to form, except the following:
(1) Contracts, including, but not limited to, those of the Departments of Airports, Harbor, and Water and Power, involving a sum of $100,000 or less for the purchase of materials, supplies, and equipment, and the rental, repair, or maintenance thereof;
(2) Contracts of the Departments of Airports, Water and Power, Recreation and Parks, Harbor, and Library involving a sum of $25,000 or less for professional or personal services;
(3) Contracts involving a sum of $125,000 or less for the payment of City membership dues for non-profit, inter-government, or government- support organizations as budgeted in the General City Purposes section of the City budget;
(4) Contracts involving a sum of $25,000 or less for the payment of subscriptions for newspapers, professional journals, online information, or research services; and
(5) Contracts not required to be made in writing or other manner as provided by ordinance that by their terms restrict the amount that is payable or can be paid to $25,000 or less in total consideration annually or in the aggregate.
SECTION HISTORY
Based on Charter, Sec. 385.
Amended by: Ord. No. 154,252, Eff. 9-11-80; Ord. No. 158,965, Eff. 6-30-84; In Entirety, Ord. No. 170,313, Eff. 3-3-95, Oper. 4-25-95; Ord. No. 173,186, Eff. 5-22-00; Ord. No. 173,285, Eff. 6-26-00, Oper 7-1-00; In Entirety, Ord. No. 185,268, Eff. 1-10-18; In Entirety, Ord. No. 187,995, Eff. 11-6-23.
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