344 ORDINANCE NO 344
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, AMENDING SECTIONS 3 24 070, 3 24 080,
3 24 090, AND 3 24 120 OF CHAPTER 3 24 OF TITLE 3 OF THE GRAND
TERRACE MUNICIPAL CODE THEREBY CHANGING THE
THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF
SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY
MANAGER'S AUTHORIZATION LIMIT TO $25,000, AND ADDING
SECTION 3 24 190 TO CHAPTER 3 24 OF TITLE 3 OF THE GRAND
TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS
RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY
WHEREAS, California, Government Code Section 54202 every local agency to
adopt policies and procedures, including bidding regulations, governing purchases of
supplies and equipment by the local agency, and
WHEREAS, California Government Code Section 4526 provides that professional
services may be awarded on the basis of demonstrated competence and on the
professional qualifications necessary for the satisfactory performance of the services
required, and
WHEREAS, on August 22, 1985, the City Council of the City of Grand Terrace
adopted Ordinance No 93 adding Chapter 3 24(Purchasing of Supplies and Equipment)
to Title 3 of the Municipal Code, and
WHEREAS, on November 13, 2012, the City Council of Grand Terrace repealed
Ordinance No 93 and Chapter 3 24 of the Municipal Code in their entirety and adopted
a new Chapter 3 24 (Purchasing System) to Title 3 of the Municipal Code, and
WHEREAS, the City Council of the City of Grand Terrace desires to amend
regulations governing purchases in Grand Terrace Municipal Code ("GTMC") Sections
3 24 070, 3 24 080, 3 24 090, and 3 24 120 in order to change the thresholds for
purchasing procedures, sale of surplus supplies, materials and equipment, and the City
Manager's authorization limit to $25,000, and, further adding GTMC Section 3 24 190
relating to conflicts of interest and unlawful activity with respect to City purchases
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE
DOES HEREBY ORDAIN AS FOLLOWS
SECTION 1 RECITALS The Recitals set forth above are incorporated herein by
this reference
SECTION 2 PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR
NON-PROFESSIONAL SERVICES UNDER $25,000 Section 3 24 070 of Chapter 3 24
of Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its
entirety as follows
Ord No 344 Page 1 of 6 November 8, 2022
"3 24 070 — Purchases Twenty-five Thousand Dollars or less
Purchase of supplies, materials, equipment or services with an
estimated value of $25,000 or less may be made and approved by the
City Manager in the open market, pursuant to the procedure prescribed
in this Section, provided, however, all quotation may be dispensed with
in an emergency, or where said goods and/or services can be obtained
from only one source A using department is responsible for insuring
there is a sufficient appropriation in the budgetary account against which
said purchase is to be charged
A Using department shall follow the following procedure when
making an open market purchase
1 Purchases that are $25,000 or less shall, whenever
possible, be based on at least three (3) informal quotations and
shall be awarded to the vendor submitting the lowest responsible
quotation
2 Solicit quotations from prospective vendors by written
request, electronic mail or by telephone
3 Written quotations shall be submitted to the using
department, which shall keep a record of all open-market orders
and quotes for a period of one year after the submission of quotes
or the placing of orders
4 Where written contracts are entered into for purchases
made under this Section, the department head is authorized to
execute such contracts on behalf of the City Such purchases
shall be made only by purchase order A copy of the executed
contract shall be maintained on file in the offices of the requesting
department
5 Using departments shall submit standard purchase order
requisition forms to the Purchasing Officer when requesting
goods and services pursuant to this Section
B Notwithstanding subsection "A" above, purchases of supplies,
materials, equipment or services not exceeding an estimated value of
$2,500 may be made over the counter by a department head without
requirement for quotations or comparative pricing Furthermore, such
goods and services may be obtained without a purchase order"
SECTION 3 PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR
NON-PROFESSIONAL SERVICES OVER $25,000 Section 3 24 080 of Chapter 3 24 of
Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety
as follows
Ord No 344 Page 2 of 6 November 8, 2022
"3 24 080 - Formal Contract Procedure, Purchases Greater Than
Twenty-five Thousand Dollars
"Except as otherwise provided herein, purchases of supplies, materials,
equipment or services with a value greater than $25,000 shall be
awarded to the lowest responsible bidder, pursuant to the procedure
prescribed in this section Written contracts may be required when in
the judgement of the City Manager the public interest is served thereby
A Notice inviting bids shall include a general description of the
articles to be purchased and shall state where bid documents and
specifications may be obtained and the time and place for opening bids
1 Notice Inviting Bids Notice inviting bids shall be published by
the City Clerk at least ten 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
2 Bidders' List The City shall also solicit sealed bids from
responsible prospective suppliers whose names are on the
bidders' list
B Bidders' Security When deemed necessary by the purchasing
agent, bidders' security shall be required Bidders shall be entitled to
return of bid security upon execution of the contract or upon the
readvertisement for bids, provided that a successful bidder shall forfeit
his 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 If the City Council awards the contract
to the next lowest bidder, the bidder first awarded the contract shall
forfeit only the portion of his security, which is equal to the difference
between his bid and the bid of the next lowest responsible bidder If the
next lowest bidder is awarded the contract and he fails or refuses to
execute the contract, he shall forfeit his entire bid security
C Bid Opening Procedure Sealed bids shall be submitted to the
City Clerk, and shall be identified as bids on the envelope Bids shall be
opened in public at the time and place stated in the public notices A
tabulation of all bids received shall be open for public inspection during
regular business hours for a period of not less than 30 calendar days
after the bid opening
D Rejection of Bids At its discretion, the City Council may reject any
and all bids presented, and re-advertise for bids
E Award of Contracts Contracts shall be awarded by the City
Ord No 344 Page 3 of 6 November 8, 2022
Council to the lowest responsible bidder except as otherwise provided
herein A master copy of the contract is to be on file in the City Clerk's
Department upon execution of the contract
F Award of Contracts by City Manager The City Manager is
authorized to award contracts to the lowest responsible bidder when the
City Council has budgeted funds for the item(s) and the amount of the
award is not more than the budgeted amount All contracts awarded
pursuant to this Section shall require issuance of a purchase order
G Tie Bids If two or more bids received are for the same total
amount or unit price, quality, service and delivery being equal, and if the
public interest will not permit the delay of re-advertising for bids, the City
Council may accept the one it chooses, or accept the lowest bona fide
offer by negotiation with the tie bidders at the time of the bid opening
H Performance Bonds The City shall have authority to require a
performance bond before entering a contract, in such amount as it shall
be found reasonably necessary to protect the best interests of the City
If the City requires a performance bond, the form and amount of the
bond shall be described in the notice inviting bids
I Single Source Purchases Single source purchase of goods or
services that can be obtained from only one source may be made by a
City department or the Purchasing Officer without advertising and after
approval by the City Council
J Waiver of Formal Bidding Requirement The City Council may
authorize purchase of supplies, materials, equipment or services of a
value greater than $25,000 00 without complying with the above
procedures when in the opinion of the Council, compliance with the
procedure is not in the best interest of the City "
SECTION 4 PROFESSIONAL SERVICES Section 3 24 090 of Chapter 3 24
of Title 3 of the Grand Terrace Municipal Code is hereby amended in its entirety as
follows
"3 24 090 - Professional and contractual services
Contracts for services of specially trained and professional persons or
businesses shall be exempt from bidding If possible, quotes from three
qualified vendors shall be obtained prior to the award of a contract and
the award of contract may be based on the basis of demonstrated
competence and on the professional qualifications necessary for the
satisfactory performance of the services required If the contract is equal
to or below $25,000 00, the contract shall require the approval of, and
be executed by, the City Manager All contracts exceeding $25,000 00
must be approved by the City Council "
Ord No 344 Page 4 of 6 November 8, 2022
SECTION 5 SALE OF SURPLUS SUPPLIES, MATERIAL, OR
EQUIPMENT Section 3 24 120 of Chapter 3 24 of Title 3 of the Grand Terrace
Municipal Code is hereby amended in its entirety as follows
"3 24 120 - Surplus supplies, materials and equipment
All using departments shall submit to the Purchasing Officer, at such
times and in such forms as he shall prescribe, reports showing all
supplies, materials and equipment which are no longer used or which
have become obsolete or worn out The using department, with the
concurrence of the Purchasing Officer, shall have authority to sell all
supplies, materials 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 the same in on new supplies and
equipment The Purchasing Officer shall also have the authority to make
transfers between departments of any usable surplus supplies,
materials or equipment The sale of supplies, materials or equipment
when the total estimated value exceeds $25,000 00 requires approval
by the City Council Surplus supplies, materials or equipment which
cannot be sold may be donated to a local not-for-profit organization with
approval of the City Manager "
SECTION 6 CONFLICT OF INTEREST Section 3 24 190 is hereby added to
Chapter 3 24 of Title 3 of the Grand Terrace Municipal Code as follows
"3 24 190 —Conflict of Interest and Unlawful Activity
Any evaluation or selection practice that would result in unlawful activity
including, but not limited to, kickbacks or unlawful consideration is expressly
prohibited Any award of a contract where an employee, officer or agent has
used his or her position with the City to influence a governmental decision
in which he or she knows or has reason to know that he or she has a
financial interest in any person or entity who seeks such a contract or in the
outcome of the selection process in any way, is expressly prohibited "
SECTION 7 SEVERABILITY If any section, subsection, subdivision, sentence,
clause, phrase, or portion of this ordinance or the application thereof to any person or
place, is for any reason held to be invalid or unconstitutional by the decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remainder of this
ordinance The City Council hereby declares that it would have adopted this ordinance,
and each and every section, subsection, subdivision, sentence, clause, phrase, or portion
thereof, irrespective of the fact that any one or more sections, subsections, subdivisions,
sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional
SECTION 8 EFFECTIVE DATE This ordinance shall be effective on the thirtieth
(30th) day after the day of its adoption
SECTION 9 CERTIFICATION The City Clerk shall certify to the adoption of this
Ord No 344 Page 5 of 6 November 8, 2022
Ordinance and cause the same to be published as required by law
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand
Terrace at a regular meeting held on the 8th day of November 2022
Darcy ► - �,-P
Mayor
ST
1Debra Thomas
City Clerk
APPROVED AS TO/0
A nan R Guerra
City Attorney
Ord No 344 Page 6 of 6 November 8, 2022
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF GRAND TERRACE )
I Debra L Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA,
DO HEREBY CERTIFY that the foregoing Ordinance, being Ordinance No 344 was
duly passed, approved and adopted by the City Council, approved and signed by the
Mayor, and attested by the City Clerk, at the regular meeting of said City Council held
on the 8th day of November 2022, and that the same was passed and adopted by the
following vote
AYES Council Members Allen, Wilson, and Robles, Mayor Pro Tem
Hussey, Mayor McNaboe
NOES None
ABSENT None
ABSTAIN None
Executed this 15th day of November 2022, at Grand Terrace, California
-&-C4 , ----'
LAIC/
b L Thomases
City Clerk
[SEAL] "