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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and Equipment) to Title 3 of the Municipal Code, and WHEREAS, on November 13, 2012, the City Council of Grand Terrace repealed Ordinance No 93 and Chapter 3 24 of the Municipal Code in their entirety and adopted a new Chapter 3 24 (Purchasing System) to Title 3 of the Municipal Code,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] "