Legislation Details

File #: HIST-1794    Version: 1 Subject:
Type: Historical Status: Action Item
In control: City Council Meeting Agenda
On agenda: 2/27/2006 Final action: 2/27/2006
Title: Discussion Related to Proposed Amendments to Sections of Chapter 3.07: Finance and Revenue of the Culver City Municipal Code Related to Contracts and Bidding.
Attachments: 1. Bids RFP Processes A-5.DOC, 2. A-5 Bids Staff Report Attachments.pdf
City of Culver City, California City Council Agenda Item Report RECOMMENDATION Staff recommends the City Council discuss staff’s proposal to amend various sections of Chapter 3.07 (Finance and Revenue) of the Culver City Municipal Code related to contracts and bidding. BACKGROUND Section 1304 and 1305 of the Charter of the City of Culver City (Charter) and Chapter 3.07 (Finance and Revenue) of the Culver City Municipal Code (Code) provide the legal requirements for the City’s purchasing procedures. These procedures specify, among other things, the processes to be used by Staff when making City purchases, when bidding is necessary and how bidding is undertaken (formal vs. informal process), and the authority of the Chief Administrative Officer to issue and execute contracts (including purchase orders). Many of the sections in Chapter 3.07 date back to 1965. It is the purpose of this report to present certain proposed amendments to the City Code for the Council’s discussion that would address certain purchasing/bidding procedures of interest to the City Council and to improve efficiency in the City’s purchasing. DISCUSSION The recommendations included in the attached Ordinance may be classified into two sections: (1) City Council Interests and (2) Municipal Code Consistency and Meeting Date: 02/27/06 Item Number:__A-5_ AGENDA ITEM: Discussion Related to Proposed Amendments to Sections of Chapter 3.07: Finance and Revenue of the Culver City Municipal Code Related to Contracts and Bidding Contact Person/Dept.: Martin R. Cole, ACAO Phone Number: (310) 253-6000 Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [] Public Hearing: [] Action Item: [X] Attachments: [X] Public Notification: Master Notification List (02/22/06) Department Approval: Martin R. Cole (02/22/06) CAO Approval: Martin R. Cole for Jerry B. Fulwood (02/22/06) City Controller Approval: N/ACity of Culver City, California City Council Agenda Item Report Update. In addition, the topic of consideration of doing work “in-house” with City Employees is also discussed. City Council Interest During prior City Council meetings, the City Council has expressed an interest in updating and clarifying the City’s bidding and purchasing procedures. Generally speaking, City Council members expressed the following:  The importance of bidding, when practical and cost-efficient, to encourage competition and achieve lower costs for City purchases;  Limitation, when practicable, continual renewal of contracts to the same vendor year after year; and,  Clarification of the aggregate limit of contract awards to a single vendor without City Council approval. The Chief Administrative Officer is authorized to execute contracts for goods and services for an amount less than $10,000. This authority is subject to budget appropriations approved by the City Council. Municipal Code Consistency/Update In reviewing the Code, staff discovered several sections that seemed inconsistent or outdated. As part of this review, Staff is recommending certain code amendments that will improve clarity and consistency among all areas of Chapter 3.07. Doing Work In-House Culver City prides itself on its ability to provide many services directly through our employees. Many times, the best way to perform duties is through use of our Staff. Nothing in these proposals is meant to impact or alter the current allocation of duties amongst staff and outside contracts. Proposed Amendments A-1: Contract Signing Authority The following items refer to existing Charter and/or Code language. Section 1304 of the Charter states in part: “…Every public works project to be performed by an independent contractor involving an expenditure of more than City of Culver City, California City Council Agenda Item Report Twenty-Five Thousand ($25,000.00) Dollars…shall be let to the lowest responsible bidder…” Section 3.07.015 states in part: “…[Every purchase] exceeding Twenty Thousand Dollars ($20,000.00) shall be by award of formal bid…” Section 3.07.055 states in part: “…[Any purchase]…involving an expenditure of Twenty Thousand Dollars ($20,000.00) or less may be made in the open market without following formal bidding procedures…The Chief Administrative Officer shall develop written policies for purchases up to Twenty Thousand Dollars ($20,000.00)” Section 3.07.070 states in part: “…the City may award purchase orders and contracts in any amount for personal or professional services without complying with the provisions of this Subchapter {bidding}…” (bracketed word added) and Section 3.07.075 states in part: “…The Chief Administrative Officer is authorized to approve…any contract in an amount not to exceed Ten Thousand Dollars ($10,000.00) for the services described in Subsections 3.07.070 B. and C., subject to the provisions of Section 3.07.070…” Proposed Amendments The use of four different amounts between the language of the Charter and the Code can be inefficient and somewhat confusing. Therefore, Staff proposes to replace the fixed amounts with $25,000.00 and remove conflicting language. This would clarify that all purchases in excess of $25,000.00 or more would be subject to the bidding process and approval of those contracts by the City Council and all purchases of up to $25,000.00 would be subject to written policies developed by the Chief Administrative Officer (CAO’s Policy). A-2: Limit of Continual Renewal of Contracts to the Same Vendor and Aggregate Dollar Limit on Contracts Members did express an interest in reviewing the procedures related to the renewal of contracts to the same vendor. This interest included contracts awarded in a single fiscal year and over two or more fiscal years. To address this interest, a revised CAO Policy will include the following: Dollar Limits (1) A limit of $10,000.00 to the signature authority of Department Heads (always subject to appropriations approval by the City Council);City of Culver City, California City Council Agenda Item Report (2) A limit of $25,000.00 to the signature authority of the CAO (always subject to appropriations approval by the City Council); and, (3) Contracts in excess of $25,000.00 require the direct approval of the City Council. Time Limits (4) Regardless of dollar amount, contracts awarded to any single vendor shall not have a term (or be renewed in total) for longer than three consecutive fiscal years without the approval of the City Council. Other Items Additionally, Staff will compile a list of contracts awarded in excess of $25,000.00 over the past three fiscal years. During the budget preparation for Fiscal Year 2006/2007, this list will be segregated into two areas: (1) General Services and (2) Exempted Services. The contracts for Exempted Services fall under exemptions from the formal competitive bidding process outlined in the Code (Sections 3.07.065 and 3.07.070). The contracts for exempted services will only be re-bid in the case the CAO or the City Council determines the bidding process is desired (of if the contract has an original term or has been renewed for more than three consecutive fiscal years – please see Time Limits above). The contracts for General Services will be subdivided into three subsets, each of which will be re-bid in each of the successive three fiscal years. This proposed process balances the desire with the practicality of the bidding process to ensure continued price competitiveness with the costs (in both money and staff time) of competitive bidding. This will also allow staff to re-bid General Services contracts over a three year period, thereby avoiding a “landslide” of bidding processes in a single fiscal year. FISCAL ANALYSIS Staff believes implementation of these proposed changes to the Code and Administrative Policies will result in a positive fiscal impact to the City because of expected savings and efficiencies. However, the amount of that impact is difficult to quantify at this time. ATTACHMENTS 1. Section of the Charter 2. Sections of the CodeCity of Culver City, California City Council Agenda Item Report RECOMMENDATION Staff recommends the City Council discuss this item, including the possibility or directing staff to return to the City Council with a proposed Ordinance, and provide any other direction as the City Council may deem appropriate. MEETING DATE: February 27, 2006 AGENDA ITEM: Discussion Related to Proposed Amendments to Sections of Chapter 3.07: Finance and Revenue of the Culver City Municipal Code Related to Contracts and Bidding ATTACHMENTS Pages 1. Sections 1304 & 1305: Charter 1 2. Chapter 3.07: City Code 2 - 918 Culver City - The Charter There shall be levied and collected at the time and in the same manner as other property taxes for municipal purposes are levied and collected as additional taxes, if no other provision for payment thereof is made: (a) A tax sufficient to meet all liabilities of the City for principal and interest of all bonds or judgments due and unpaid, or to become due during the ensuing fiscal year; and (b) A tax sufficient to meet all obligations of the City to the Public Employees' Retirement System, or other system for the retirement of City employees due and unpaid or to become due during the ensuing fiscal year. Special levies, in addition to the above may be made annually, based on City Council approved estimates, for the following specific purposes: parks, recreation, refuse disposal, City planning, libraries, advertising and promotion. The proceeds of any such special levy shall be used for no other purpose than that specified. SECTION 1303. BONDED DEBT LIMIT. The bonded indebtedness of the City may not exceed the sum of fifteen (15%) percent of the total assessed valuation of all the real and personal property within the City. SECTION 1304. CONTRACTS FOR PUBLIC 1 WORKS. Every public works project to be performed by an independent contractor involving an expenditure of more than Twenty-Five Thousand ($25,000.00) Dollars for the construction or improvement, excluding maintenance and repair, of public buildings, works, streets, drains, sewers, utilities, parks and playgrounds, shall be let to the lowest responsible bidder after notice by publication in the newspaper designated by the City Council pursuant to Section 517 hereof by two or more insertions, the first of which shall be at least ten days before the time for opening bids. The City Council may reject any and all bids presented and may readvertise in its discretion. The City Council by four affirmative votes may award such a contract without complying with bidding procedures provided a public hearing is held on the award of the contract. Notice of the public hearing shall be published as provided hereinabove and shall state the name of the proposed contractor, scope of the contract and compensation. Such contract may be let without advertising for bids and without a public hearing if such work shall be deemed by the City Council to be of urgent necessity for the preservation of life, health or property, and shall be authorized by at least four affirmative votes. SECTION 1305. CENTRALIZED PURCHASING. Under the control and direction of the Chief Administrative Officer there shall be established a centralized purchasing system for all City departments and agencies. The Chief Administrative Officer shall recommend and the City Council shall consider and adopt by ordinance, rules and regulations governing the contracting for purchasing, storing and distribution of all supplies, materials and equipment i required by any office, department or agency of the City government. SECTION 1306. RESERVE FUNDS. The City Council shall maintain sufficient cash reserves for the purpose of placing the payment of operating expenses of the City on a cash basis. The reserves shall be built from any available sources which in combination with anticipated revenues shall be sufficient to meet all lawful demands against the City. Transfers may be authorized by the City Council from one fund to another fund or funds in such amounts as may be required to place those funds as nearly as possible on a cash basis. In case of such transfers, monies shall be returned to the fund from which they were transferred as they become available. 2000 S-2CHAPTER 3.07: FINANCE AND REVENUE Section 3.07.305 Procedures for bond issuance Cross-reference: Purchasing System Finance and Judiciary Committee, see § 3.01.020 3.07.005 Purchasing officer; duties Claim procedures, see §§ 3.10.005 through 3.07.010 Purchase order; encumbrance of 3.10.080 funds Benefit assessment district, see Ch. 15.01 3.07.015 Formal bidding procedure 3.07.020 Soliciting bids 3.07.025 Bidder's security and performance bonds PURCHASING SYSTEM 3.07.030 Bid opening 3.07.035 Rejection or waiver of bid requirements; rejection of bids § 3.07.005 PURCHASING OFFICER; DUTIES. 3.07.040 Award of bids 3.07.045 Equal bids A. For the purpose of this Subchapter, the term 3.07.050 Awards of contracts to PURCHASING OFFICER shall include the term businesses located in the city "Purchasing Agent" as used in other parts of this 3.07.055 Open market procedures Code. ('65 Code, § 2-53) 3.07.060 Emergency purchases 3.07.065 Exemption from formal B. The Chief Administrative Officer, or his/her competitive bidding designee approved by the City Council, shall serve as 3.07.070 Personal and professional Purchasing Officer and have the following duties: services excluded 3_07.075 Authority of Chief 1. To negotiate, purchase and contract for Administrative Officer supplies, and equipment used by the City, in 3.07.080 Compliance with federal regulations accordance with City laws and regulations. 3.07.085 Disposal of supplies and 2. To develop and maintain a standardized equipment system for the procurement of supplies, services and 3.07.090 Employee interest prohibited equipment. Funds 3. To encourage open competitive bidding. 3.07.200 Special Gas Tax Street 4. To advise the City Council on all Improvement Fund matters pertaining to purchasing. 3.07.205 Capital outlay funds Revenue Bonds 3.07.300 Issuance and sale of revenue bonds 3738 Culver City - Administration 5. To determine that bid specifications are adhered to in all respects. ('65 Code, § 2-54) (Ord. No. 87-007 § 2) Cross-reference: Purchasing, see Charter §§ 1304 and 1305 § 3.07.010 PURCHASE ORDER; ENCUMBRANCE OF FUNDS. Except in cases of emergency, or if excepted by authorization of the Chief Administrative Officer, all purchases shall be made by purchase order issued by the Purchasing Officer after the City Treasurer has certified that there is sufficient unencumbered appropriation balance. ('65 Code, § 2-55) (Ord. No. 87-007 § 2; Ord. No. 96-007 § I (part)) § 3.07.015 FORMAL BIDDING PROCEDURE. A. Every purchase or contract involving the expenditure for supplies or equipment exceeding Twenty Thousand Dollars ($20,000.00) shall be by award of formal bid, after giving of a notice inviting sealed bids in the manner set forth in § 3.07.030. B. Purchases shall not be divided or split in order to circumvent formal bidding requirements. (' 65 Code, § 2-56) (Ord. No. 87-007 § 2) § 3.07.020 SOLICITING BIDS. A. One or more notices inviting sealed bids shall be published in a newspaper of general circulation within the City at least ten (10) days prior to the date set for opening of the bids. In addition, the Purchasing Officer shall solicit sealed bids from all prospective bidders including those who have requested to be placed on the bidders list. B. Notices of bids shall include a general description of the articles for which bids are sought, details on filing bond requirements, and the time, date and location for submitting and the opening of the bids. ('65 Code, § 2-57) (Ord. No. 87-007 § 2) § 3.07.025 BIDDER'S SECURITY AND PERFORMANCE BONDS. A. A bidder's security may be required in an amount equal to ten percent (10%) of the bid in the form of either cash, certified or cashier's check or surety bond, if the bond form is approved by the City Attorney. Each bidder's security is refundable; provided that in the case of a successful bidder, the bidder's security may be retained if the bidder fails to enter into the contract resulting from the award of the bid within ten (10) days after notice of award has been given. B. A Faithful Performance Bond not exceeding the amount of one hundred percent (100%) of the bid and a Labor and Materials Bond not exceeding the amount of fifty percent (50%) of the bid may be required to be filed by a successful bidder prior to entering into any contract resulting from the award of a bid. ('65 Code, § 2-58) (Ord. No. 87-007 § 2) § 3.07.030 BID OPENING. Sealed bids shall be submitted to the City Clerk and shall be opened in public at the time and place stated in the notice inviting bids. All bids received shall be available for public inspection at the time and place of opening, and thereafter, in the Office of the City Clerk. ('65 Code, § 2-59) (Ord. No. 87-007 § 2) § 3.07.035 REJECTION OR WAIVER OF BID REQUIREMENTS; REJECTION OF KIDS. A. The City Council may waive the formal bid requirement, or authorize the purchases or contract in the open market if it finds any or all of the following circumstances exist:Finance and Revenue 39 1. The City's employees may produce the items better or more economically; or 2. The supplies or equipment are urgently required for the preservation of life, health or property; or 3. The public interest would best be served by using the open market. B. The City Council at its discretion may reject any and all bids submitted, or may order re-bidding. ('65 Code, § 2-60) (Ord. No. 87-007 § 2) § 3.07.040 AWARD OF BIDS. Except as otherwise provided, formal bids shall be awarded by the City Council to the responsible bidder submitting the best bid. ('65 Code, § 2-61) (Ord. No. 87-007 § 2) § 3.07.045 EQUAL BIDS. Whenever two (2) or more equivalent bids are received, the City Council may choose whichever of the following options it deems to serve the best interest of the City: A. Select one (1) bid, giving preference to a business located within Culver City; B. Reject all bids and re-advertise for bids; or C. Reject all bids and authorize negotiation of an agreement directly between the City and one (1) of the equivalent bidders. ('65 Code, § 2-62) (Ord. No. 87-007 § 2) § 3.07.050 AWARDS OF CONTRACTS TO BUSINESSES LOCATED IN THE CITY. The City shall give preference to businesses located in the City ("local businesses") when awarding any contract for the purchase of goods when those contracts meet any of the following criteria: A. The difference between bids from Culver City businesses and those outside the City is less than the current sales tax benefit the City would receive from the local sales tax; and B. The local business will be able to provide goods which are equal in quality and meet all bid specifications of the City and of other competing bidders; or C. A reasonable condition of the contract performance is expeditious delivery of goods and it is reasonably believed that the local business will be able to provide its goods more expeditiously than a business located outside the City and which complies with Subsection B. above; or D. The use of a local business will help further the City's, Los Angeles County's and the State's goals of improving air quality and relieving traffic congestion by reducing the required travel distance of vehicles used by a local business, and which complies with Subsection B. above. E. Any other reason which would factually justify selection of local businesses based upon criteria which does not illegally discriminate against outside businesses and which complies with Subsection B. above. ('65 Code, § 2-62.1) (Ord. No. 92-015 § 1) § 3.07.055 OPEN MARKET PROCEDURES. Any purchase or contracts for supplies or equipment involving an expenditure of Twenty Thousand Dollars ($20,000.00) or less may be made in the open market without following formal bidding procedures of this Subchapter_ Open market purchases shall be based upon competitive quotations whenever practical from not less than three (3) contractors. Open market quotations shall be kept by the Purchasing Officer as a public record_ The Chief Administrative Officer shall develop written policies for purchases up to Twenty Thousand Dollars ($20,000.00). ('65 Code, § 2-63) (Ord. No. 87-007 § 2) 440 Culver City - Administration § 3.07.060 EMERGENCY PURCHASES. A. In the event of an emergency seriously affecting the public welfare where the purchase of essential supplies and equipment are urgently required for the preservation of life, health or property, or for the immediate continuation of direct City services to the public, the Chief Administrative Officer or Purchasing Officer may procure such items without following formal procedures of this Subchapter; and B. In the absence or unavailability of the Purchasing Officer, any department head shall have like authority, but shall file a written report with the Chief Administrative Officer within ten (10) days after such emergency purchase. ('65 Code, § 2-64) (Ord. No. 87-007 § 2) § 3.07.070 PERSONAL AND PROFESSIONAL SERVICES EXCLUDED. A. Except for the provisions of §§ 3.07.075 and 3.07.080, the City may award purchase orders and contracts in any amount for personal or professional services without complying with the provisions of this Subchapter; provided that, the purchase order or contract shall be based upon competitive quotations, whenever practical, as determined by the Chief Administrative Officer from not less than three (3) vendor contractors. B. For purposes of this Section, personal services shall include: 1. Any communication, gas, water, electric light and power service or similar utility service; § 3.07.065 EXEMPTION FROM FORMAL 2. Insurance, postage, freight and courier COMPETITIVE BIDDING. service; The City Council may waive the formal competitive bidding procedures of this Subchapter for the purchase of supplies or equipment which: A. Can be obtained from only one (1) vendor; B. Can be purchased through a cooperative purchasing agreement which has been competitively bid, or through agreements executed with other governmental agencies; C. Can be purchased by the City from a vendor, who within the past twelve (12) months, has offered such equipment on the same terms and conditions to the City or another public agency through the competitive bidding process; provided, that the benefits of such terms and conditions are verified by informal bid confirmation; or D. Is a component for equipment or a system of equipment previously acquired by the City, and is necessary to repair, maintain or improve the City's utilization of the equipment. ('65 Code, § 2-65) (Ord. No. 87-007 § 2) 3. Travel/hotel accommodations, education and training expense; 4. Subscriptions and memberships; 5. Repair or maintenance service for equipment, machinery or other City-owned personal property; and 6. Repair and maintenance service for City-owned or occupied real property and buildings; 7. Rental of real property or equipment and other personal property; and 8. Such other services as the City Council may, by Resolution, specifically direct. C. For purposes of this Section, professional services shall include: 1. Services of engineers, architects, accountants, attorneys, doctors, and similar professionals when the City is contracting for the skill, integrity, judgment, and/or special technical ability of the professional. 5Finance and Revenue 41 2. Such other services as the City Council may, by Resolution, specifically direct. ('65 Code, § 2-66) (Ord_ No. 87-007 § 2) § 3.07.075 AUTHORITY OF CHIEF ADMINISTRATIVE OFFICER. A. The Chief Administrative Officer is authorized to approve and execute, on behalf of the City, any contract in an amount not to exceed Ten Thousand Dollars ($10,000.00) for the services described in Subsections 3.07_070 B. and C., subject to the provisions of § 3.07.070. B. The Chief Administrative Officer is authorized to approve and execute on behalf of the City any three (3) party contract for services described in Subsection A. if the total cost for such services is paid by a third party, subject to the provisions of § 3.07.070. ('65 Code, § 2-67) (Ord. No. 87-007 § 2; Ord. No. 91-020 § 1) § 3.07.080 COMPLIANCE WITH FEDERAL REGULATIONS. Notwithstanding any other provision of this Subchapter, for any contract totally or partially funded by the Federal Government: A. All applicable Federal Procurement Standards shall be followed; and B. The following protest procedures shall apply: 1. Any actual or prospective bidder, offeror or contractor may protest any phase of the solicitation or award of the contract by filing, in writing, within ten (10) days before the bid opening or within five (5) days after the bid opening, a statement indicating the name and address of the protestor, appropriate identification of the procurement and if the contract has been awarded, its bid number, a detailed statement of the reasons of the protest and supporting information to substantiate any protest. 2. Such protest shall be reviewed by the Purchasing Officer, in consultation with the City Attorney's office, and a recommendation thereon shall be made to the person or body within the City responsible for making the decision to award the contract. 3. If the decision-maker on the contract is the City Council, the protestor may address the Council during a public meeting at which the recommendation on the protest is submitted to the Council for decision. 4. A decision on the protest shall be made by the applicable decision-maker as expeditiously as possible. 5. A protest not filed in writing within the period set forth in paragraph 1. above, shall not be considered. ('65 Code, § 2-68) (Ord. No. 89-006 § 1) § 3.07.085 DISPOSAL OF SUPPLIES AND EQUIPMENT. The Purchasing Officer shall have the authority to sell or trade any obsolete, worn out or surplus items of supplies or equipment which are no longer suitable for City use, in any manner determined by him/her, except in the following circumstances: A. When the City Council directs otherwise; B. If the estimated value of any such item or lot exceeds Five Thousand Dollars ($5,000.00), then the equipment or supplies shall be sold or traded using a bidding procedure similar to the Formal Bidding procedure set forth in this Subchapter. ( '65 Code, § 2-69) (Ord. No. 87-007 § 2) § 3.07.090 EMPLOYEE INTEREST PROHIBITED. No employee of the City shall be financially interested, directly or indirectly, in any purchase order42 Culver City - Administration or contract for furnishing services, supplies or equipment within the purview of this Subchapter. ('65 Code, § 2-70) (Ord. No. 87-007 § 2) FUNDS § 3.07.200 SPECIAL GAS TAX STREET IMPROVEMENT FUND. A. Source. All moneys received by the City from the State of California under the provisions of the Streets and Highways Code for the acquisition of real property or interests therein for, or the construction, maintenance or improvement of streets or highways other than state highways shall be paid into said fund. (Ord. 436 § 2) B. Purpose. All moneys in said fund shall be expended exclusively for the purposes authorized by, and subject to all of the provisions of Cal. Sts. & High. Code§§ 181 et seq. (Ord. 436 § 3) ('65 Code, § 2-87) Cross-reference: New Development Impact Fund, see § 15_06.010 City Art Fund, see § 15.06.110 § 3.07.205 CAPITAL OUTLAY FUNDS. A. Special Fund for capital outlays. 1. Source. Taxes may be levied upon the taxable property for the raising of moneys for said fund, subject to the laws of taxation. Also the City Council may transfer to this fund unencumbered surplus funds remaining on hand at the end of any fiscal year. 2. Purposes. This fund shall remain exclusively for making capital outlays. ('65 Code, § 2-88) (Ord. No. 609) B. Special capital outlay funds. 1. Pursuant to Charter § 1307, the following special funds are created for special capital outlay purposes: Duplicating Machine Fund — 13-3; City Buildings Maintenance Fund — 13-7; Police Department Fund — 14-0; Fire Depai talent Buildings, Facilities and Equipment Fund — 14-1; Weed Control Equipment Fund — 14-5; Parking Meters Fund — 14-6; Public Works Equipment Fund — 15-0; Street Department Fund — 15-3; Street Maintenance Equipment Fund — 15-4; Municipal Plunge Equipment and Facilities Fund — 16-1; Park Department Land, Buildings, Facilities and Equipment Fund — 16-3; Tree Planting and Landscaping Fund — 16-4; City Yard Land, Buildings, Facilities and Equipment Fund — 17-5; City Hall Building, Equipment, Facilities and Replacement Fund — 19-0; Advertising and Promotion Fund — 138C-C; Bus Department Facilities, Equipment, Repair and Replacement Fund — 270-2. 2. Source. That the City Council will, from time to time, levy and collect taxes for capital outlays and will include in the annual tax levy, from time to time, a levy for such purposes, in which event there shall be apportioned and appropriated to the Special Capital Outlay Funds the money derived from such levy. 3. Purposes. Each fund shall remain inviolate for the department or division denoted by the name, unless changed by lawful election. Unencumbered funds may be transferred by the City Council into any of the Special Capital Outlay Funds. ('65 Code, § 2-90)Finance and Revenue 43 C. Expenditure requirement. Not less than three-fourths of the funds derived from each annual tax levy and from other sources for Capital Outlay purposes shall be apportioned and appropriated not later than the end of the third quarter of the fiscal year. ( . 65 Code, § 2-91) (Ord. CS-188 §§ 1 - 5) REVENUE BONDS § 3.07.300 ISSUANCE AND SALE OF REVENUE BONDS. The City Council, exercising the powers reserved to the City under Cal. Const. Art. XI, § 5 and pursuant to City of Culver City Charter §§ 400 and 401, may, by resolution(s), issue and sell revenue bonds for any City purpose or purposes. ('65 Code, § 2-140) (Ord. No. 91-003 § 1 (part)) § 3.07.305 PROCEDURES FOR BOND ISSUANCE. Except as otherwise expressly provided in the Charter of the City of Culver City, the procedure for the issuance of such bonds shall be the procedure set forth in the Revenue Bond Law of 1941 (commencing with Cal. Gov't Code § 54300), and by this reference, with the exception hereinafter stated, the provisions of said Law are incorporated herein; provided, however, that no election to authorize the issuance of said bonds shall be required and to that end Cal. Gov't Code §§ 54380 through 54387 are not incorporated herein and shall not be applicable to the issuance of said bonds. ('65 Code, § 2-141) (Ord. No. 91-003 § 1 (part))44 Culver City - Administration|10 13|