Garden Grove City Council
September 8, 2026

AGENDA

Garden Grove City Council

Tuesday, September 8, 2026
6:30 PM

Community Meeting Center
11300 Stanford Avenue
Garden Grove, California 92840
Stephanie Klopfenstein
Mayor
George S. Brietigam
Mayor Pro Tem – District 1
Phillip Nguyen
Council Member – District 2
Cindy Tran
Council Member – District 3
Joe DoVinh
Council Member – District 4
Yesenia Muñeton
Council Member – District 5
Ariana Arestegui
Council Member – District 6

Meeting Assistance: Any person requiring auxiliary aids and services, due to a disability, to address the City Council, should contact the City Clerk's Office 72 hours prior to the meeting to arrange for accommodations. Phone: (714) 741-5040.

Agenda Item Descriptions: Are intended to give a brief, general description of the item. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda.

Documents/Writings: Any revised or additional documents/writings related to an item on the agenda distributed to all or a majority of the Council Members within 72 hours of a meeting, are made available for public inspection at the same time (1) in th e City Clerk's Office at 11222 Acacia Parkway, Garden Grove, CA 92840, during normal business hours; (2) on the City's website as an attachment to the City Council meeting agenda; and (3) at the Council Chamber at the time of the meeting.

Public Comments:

General comments are made during "Oral Communications" and should be limited to matters under consideration and/or what the City Council has jurisdiction over. Persons wishing to address the City Council regarding a Public Hearing matter will have an opportunity to do so at the time the matter is being considered. The City Clerk will announce participation instructions for designated public comment periods.

In-person
Members of the public who attend the meeting in -person and would like to address the City Council are requested to complete a pink speaker card indicating their name and address, and identifying the subject matter they wish to address. This card should be given to the City Clerk before the meeting begins.

Remote
Members of the public may participate remotely and address the City Council via Zoom Webinar or telephone. To join by Zoom, cl ick the link or past e the link into your internet browser:
https://gg.city/council-meeting. You may request to speak by virtually raising your hand from Zoom and unmute when it is your turn to speak. To join by telephone dial (669) 900-6833 and enter Meeting ID 820 6630 0665#. Y ou may request to speak by dialing *9 from your phone. You must dial *6 to unmute when it is your turn to speak.

Any person requesting interpretation services to assist during Oral Communications and/or a Public Hearing, should contact the City Clerk's Office 72 hours prior to the meeting. Phone: (714) 741-5040.

The City will make reasonable efforts to accommodate the request. Speakers with interpreters are allowed twice the allotted speaking time.
1

Manner of Addressing the City Council: After being called by the Mayor, you may approach the podium, it is requested that you state your name for the record, and proceed to address the City Council. Remote speakers are asked to state their name for the record and identify the subject matter they wish to address. All remarks and questions should be addressed to the City Council as a whole and not to individual Council Members or staff members. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the City Council shall be called to order by the Mayor. If such conduct continues, the Mayor may order the person barred from addressing the City Council any further during that meeting.

Time Limitation: When any group of persons wishes to address the City Council on the same subject matter, the Mayor may request a spokesperson be chosen to represent the group, so as to avoid unnecessary repetition. At the City Council's discretion, a limit on the total amount of time for public comments during Oral Communications and/or a further limit on the time allotted to each speaker during Oral Communications may be set.

For mor e information on meeting participation, visit: https://ggcity.org/city-council/meetings- participation.

PLEASE SILENCE YOUR CELL PHONES DURING THE MEETING.

AGENDA

ROLL CALL: COUNCIL MEMBER NGUYEN, COUNCIL MEMBER TRAN, COUNCIL MEMBER DOVINH, COUNCIL MEMBER MUÑETON, COUNCIL MEMBER ARESTEGUI, MAYOR PRO TEM

BRIETIGAM, MAYOR KLOPFENSTEIN

INVOCATION

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA

PRESENTATIONS

1. Hazardous Materials Incident Update.

[Item 382/2026]

ORAL COMMUNICATIONS (TO BE HELD SIMULTANEOUSLY WITH OTHER

LEGISLATIVE BODIES)

RECESS

CONDUCT OTHER LEGISLATIVE BODIES' BUSINESS

RECONVENE

CONSENT ITEMS (WILL BE ACTED ON SIMULTANEOUSLY WITH ONE MOTION

UNLESS SEPARATE DISCUSSION AND/OR ACTION IS REQUESTED BY A

COUNCIL MEMBER)

2

2. Adoption of a Proclamation recognizing September 15, 2026 through October 15, 2026, as National Hispanic Heritage Month. (Action Item)

[Item 312/2026]

3. Adoption of Resolutions amending the City Manager's contracting authority, revising bidding thresholds, and updating the City's Purchasing Policy and Procedures Manual. (Action Item)

[Item 370/2026]

4. Approval for City staff to travel to Republic of Korea to participate in the 2026 KBIZ Leadership Forum to promote the City as a business destination and continue to foster the relationship with KBIZ. (Action Item)

[Item 360/2026]

5. Approval of Amendment No. 3 to the Agreement with OCY Management, LLC for transportation services for the Senior Mobility Program at the H. Louis Lake Senior Center. (Cost: $14,085)(Action Item)

[Item 368/2026]

6. Approval of an Amendment to the agreement with Unifirst Corporation to provide uniform rental and laundering services. (Cost:$19,000)(Action Item)

[Item 362/2026]

7. Authorization for the issuance of a purchase order to All Access Rentals & Sales for the purchase of one articulating boom lift for PFAS water treatment operations. (Cost: $60,035)(Action Item)

[Item 366/2026]

8. Receive and file warrants. (Action Item)

[Item 377/2026]

9. Approval to waive full reading of ordinances listed. (Action Item)

[Item 379/2026]

ITEMS FOR CONSIDERATION

10. Award contracts to B&D Towing, Inc., dba Balcaceres and Davalos Towing; Action Southland Enterprises, Inc., dba Action Southland Towing; and, Pacific Towing, Inc., to provide on-call towing services as needed by the Police Department. (Action Item)

[Item 369/2026]

11. Award a contract to CCS Facility Services Orange County, Inc. to provide janitorial services for the new public safety building and parking structure. (Cost: $768,535 per year)(Action Item)

[Item 359/2026]

3

12. Approval of an Employment Agreement with Matthew S. West for the position of City Manager. (Action Item)

[Item 386/2026]

ORDINANCES PRESENTED FOR SECOND READING AND ADOPTION

13. Second reading and Adoption of Ordinance No. 2980, entitled:

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE, CALIFORNIA, ADDING CHAPTER 8.72 TO TITLE 8 OF THE GARDEN GROVE

MUNICIPAL CODE TO ESTABLISH SAFETY AND SECURITY REQUIREMENTS FOR HOTEL WORKERS. (Action Item)

[Item 378/2026]

MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS AND CITY MANAGER

14. Charter City discussion as requested by Mayor Pro Tem Brietigam.

[Item 383/2026]

ADJOURNMENT

The next Regular Meeting is scheduled for Tuesday, September 22, 2026, at 5:30 p.m. in the Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California, 92840. 4 Item 312/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Lizabeth Vasquez
Dept:

City Manager Dept: City Clerk
Date: 9/8/2026

Subject: Adoption of a Proclamation recognizing September 15, 2026 through October 15, 2026, as National Hispanic Heritage Month. (Action Item)

OBJECTIVE

For the City Council to adopt a Proclamation recognizing September 15, 2026 through October 15, 2026, as National Hispanic Heritage Month.

BACKGROUND/DISCUSSION

First adopted by the City Council in 2018, and adopted annually every year thereafter, this Proclamation celebrates and recognizes the histories, cultures, and significant contributions of Hispanic and Latino communities in the United States of America.

FINANCIAL IMPACT

There is no financial impact.

RECOMMENDATION

It is recommended that the City Council:
 Adopt a Proclamation recognizing September 15, 2026 through October 15, 2026, as Hispanic Heritage Month.

ATTACHMENT(S)

1. Proclamation

5 Proclamation
National Hispanic Heritage Month
WHEREAS, Hispanic Heritage Month is observed nationally from September 15 through October 15 to recognize and celebrate the histories, cultures, and contributions of Hispanic and Latino Americans;
WHEREAS, September 15 marks the anniversary of independence for Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua; Mexico and Chile celebrate their independence days on September 16 and September 18, respectively, and Belize celebrates its independence on September 21; WHEREAS, California is home to more than 15 million Latino residents , including more than 64,000 residents of Garden Grove;
WHEREAS, Hispanic and Latino communities have made significant contributions to the advancement of business, educatio n, medicine, science, the arts, public service, and countless other fields; and
WHEREAS, Hispanic and Latino residents are an integral part of Garden Grove’s diverse and vibrant community, enriching the City through their culture, traditions, leadership, and commitment to family and community.

NOW, THEREFORE, the Garden Grove City Council hereby proclaims September 15 through October 15, 2026 , as Hispanic Heritage Month in Garden Grove and encourages all residents to recognize and celebrate the history, cul ture, achievements, and lasting contributions of Hispanic and Latino Americans to our nation and community.

September 8, 2026
6 Item 370/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 9/8/2026

Subject: Adoption of resolutions amending the City Manager’s contracting authority, revising bidding thresholds, and updating the City's Purchasing Policy and Procedural Manual. (Action Item)

OBJECTIVE

For the City Council to adopt resolutions amending the City Manager or designee’s contracting authority, revising the City’s formal and informal b idding and purchasing thresholds, and updating the City’s Purchasing Policy and Procedures Manual.

BACKGROUND

The Finance Department is responsible for administering the City’s procurement functions, including maintaining and updating the City of Garden Grove Purchasing Policy and Procedures Manual (the Manual). The Manual was last updated and adopted by the City Council in June 2020.

On August 11, 2026, the City Council adopted Ordinance No. 2979, amending Chapters 2.50 and 2.52 of the Municipal Code to align the City’s bidding requirements and thresholds with applicable federal and State law. Accordingly, the Manual must be updated to incorporate these changes and ensure consistency with the amended Municipal Code.

In addition, consistent with best practices and the revised bidding thresholds, staff recommends increasing the contracting authority of the City Manager, or designee, from $50,000 to $75,000. Updating the contracting authority will provide greater administrative efficiency while maintaining appropriate procurement controls and oversight.

DISCUSSION

Ordinance No. 2979 amended Sections 2.50.060 (Bidding) and 2.50.070 (Emergency Purchase Justification) of the Garden Grove Municipal Code to increase the formal bidding threshold for goods and services from $25,000 to $75,000 . To align the City’s purchasing procedures with these amendments, staff revised the Purchasing Policy and Procedures 7 Item 370/2026

Manual to update the procurement requirements and thresholds for purchases below $75,000.

To promote administrative efficiency and incorporate best practices, staff conducted a survey of Orange County cities to compare purchasing thresholds and contracting aut hority delegated to City officials. The proposed thresholds are generally consistent with those of other Orange County cities and reflect current economic conditions, helping ensure that the City’s procurement thresholds remain relevant, practical, and cost-effective.

The proposed changes include:

 Department Head Contracting Authority: Increase from $5,000 to $15,000;  City Manager Contracting Authority: Increase from $50,000 to $75,000;  Formal Bidding Threshold for Materials, Supplies, Equipment, Professi onal Services, and Other Contractual Services: Increase from $25,000 to $75,000; and  Formal Bidding Threshold for Public Works and Construction: Increase from $200,000 to $220,000, consistent with the applicable statutory threshold.

The proposed changes are intended to streamline the City’s purchasing process, provide appropriate administrative flexibility, and maintain adequate procurement controls while ensuring compliance with applicable laws and regulations.

A summary of the proposed changes to the existing Purchasing Policy and Procedures Manual is provided below:

General Purchasing Requirement
Current Proposed
Purchase Order Required >$1,000 >$1,000 (unchanged)
Department Head Contracting Authority ≤$5,000 ≤$15,000
City Manager Contracting Authority ≤$50,000 ≤$75,000

Bid Threshold – Material, Supplies and Equipment Purchase One (1) Informal
Quote Required
Three (3) Informal
Quotes Required
Formal Bid Process
Required
Current ≤$5,000 $5,001 to $25,000 >$25,000
Proposed ≤$15,000 $15,001 to $75,000 >$75,000

Bid Threshold – Profession and Contractual Services
 One (1) written
proposal
 May waive contract
& insurance
 One (1) written
proposal
 Contract & insurance
required
 Formal Bid Process
Required
 Contract & Insurance
required
Current ≤$5,000 $5,001 to $25,000 >$25,000
Proposed ≤$15,000 $15,001 to $75,000 >$75,000

8 Item 370/2026

Bid Threshold – Public Works and Construction Projects
 One (1)
written quote
 May waive
contract &
insurance
 Three (1) written
quotes with
prevailing wage
 Contract &
insurance
required
 Bonds required if
>$25,000
 Informal Bid
Required
 Contract &
Insurance
required
 Bonds required
 Formal Bid
Required
 Contract &
Insurance
required
 Bonds
required
Current ≤$10,000 $10,001 to
$60,000
$60,000 to
$200,000
>$200,000
Proposed ≤$15,000 $15,001 to
$75,000
$75,001 to
$220,000
>$220,000

FINANCIAL IMPACT

There is no financial impact to adopt the resolutions amending the City Manager or designee’s contracting authority, revising the City’s formal and informal bidding and purchasing thresholds, and updating the City’s Purchasing Policy and Procedures Manual.

RECOMMENDATION

It is recommended that the City Council:

 Adopt a resolution increasing the City Manager’s, or designee’s, contracting authority from $50,000 to $75,000;
 Adopt a resolution approving the revised formal and informal bidding and purchasing thresholds and the updated Purchasing Policy and Procedures Manual; and
 Authorize the Finance Director, or designee, to make minor modifications to the Purchasing Policy and Procedures Manual as necessary to reflect best practices and ensure consistency with the City’s Municipal Code and applicable laws and regulations.

ATTACHMENT(S)

 Resolution Authorizing the City Manager or Designee to Execute Certain Agreements  Resolution Approving the 2026 Revised Purchasing Policy and Procedure Manual  City of Garden Grove Purchasing and Policy and Procedure Manual - 2026

9 GARDEN GROVE CITY COUNCIL

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE

AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE

CERTAIN AGREEMENTS

WHEREAS, delegation of authority to the City Manager to enter into certain agreements is integral to the efficient functioning of City government and facilitates being able to meet the City's legal responsibilities in providing services to the community; and

WHEREAS, Garden Grove Municipal Code Section 2.08.170 provides that t he City Manager, or his or her representative, shall be responsible for the purchase of all supplies for all the departments or divisions of the City; and

WHEREAS, Garden Grove Municipal Code Section 2.08.200 provides that it shall be the duty of the City M anager to perform such duties and exercise such powers as may be delegated to him or her from time to time by ordinance or resolution or other official action of the City Council; and

WHEREAS, in 1985, the City Council granted the City Manager the authority to execute various small development and planning related agreements in an amount of up to $15,000 per year per contractor; and

WHEREAS, in 1993, the City Council expanded this authority to personal services contracts in general, at the same $15,000 per year per level; and

WHEREAS, in 2004, through the adoption of Resolution No. 8596 -04, the City Council increased the threshold amount to $25,000; and

WHEREAS, in 2014, through the adoption of Resolution No. 9212 -14, the City Council increased the amount to $50,000, and

WHEREAS, the current threshold of $50,000 has remained the same for twelve (12) years and is less than that of the city managers/agency heads of many other cities and public agencies in Orange County; and

WHEREAS, the efficient operation of the City would be enhanced by increasing the threshold up to which the City Manager is authorized to enter into personal services contracts, and contracts for the purchase of supplies and equipment, on behalf of the City and expressly delegating authority to the City Manager to execute agreements on behalf of the City providing for indemnification by the City of the other party to the agreement in specified circumstances.

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES HEREBY RESOLVE AS FOLLOWS:

10 Garden Grove City Council
Resolution No. ___

Section 1. Repeal of prior Resolutions. Resolution No. 9212-14 is hereby repealed.

Section 2 . Agreements for Personal Services and the Purchase of Supplies and Equipment. The City Manager, or the City Manager's designee, shall have the authority to execute all agreements for personal services, and for the purchase of supplies and equipment, up to the total sum of seventy -five thousand dollars ($75,000.00), provided, however, that the cumulative total payable to an individual person or entity under agreements approved by the City Manager, or the City Manager's designee, pursuant to this authority shall not exceed seventy-five thousand dollars ($75,000.00) in any single fiscal year.

Section 3. Indemnity Provisions in Agreements. Su bject to the recommendation of the Risk Manager and the approval as to form by the City Attorney, the City Manager, or the City Manager's designee, shall have the authority to execute agreements on behalf of the City providing for indemnification by the Ci ty of the other party to the agreement (a) where the value of the agreement, other than indemnification, does not exceed seventy-five thousand dollars ($75,000.00) and City Council approval of the agreement is not otherwise required, or (b) for the use of public or private property by the City, provided, however, that any such indemnity provision shall be specifically limited to claims, losses, damages, or injuries arising from the City's use of such property.

Adopted this 8th day of September, 2026.

STEPHANIE KLOPFENSTEIN
ATTEST: MAYOR

LIZBETH VASQUEZ

CITY CLERK

11 GARDEN GROVE CITY COUNCIL

RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE APPROVING THE 2026 REVISED PURCHASING POLICY AND PROCEDURE MANUAL

WHEREAS, the City’s Purchasing Policy and Procedure Manual was last revised in 2020; and

WHEREAS, pertinent State laws and federal regulations governing municipal procurement have changed since 2020; and

WHEREAS, on August 11, 2026, the City Council adopted Ordinance No. 2979 to amend Chapter s 2.50 and 2.52 of the Municipal Code t o revise the bidding thresholds to conform to State law; and

WHEREAS, the revised Purchasing Policy and Procedure Manual has been updated to reflect best practices and ensure conformity and compliance with the Municipal Code, federal and state regulations.

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The Purchasing Policy and Procedure Manual attached hereto is approved.

Section 2. The Finance Director is hereby authorized to make minor modifications to the City’s purchasing policies and procedures to reflect best practices and compliance with applicable laws and regulations consistent with the Municipal Code and City Council resolutions.

Adopted this 8th day of September, 2026.

STEPHANIE KLOPFENSTEIN
ATTEST: MAYOR

LIZBETH VASQUEZ

CITY CLERK

12 13

CITY OF GARDEN GROVE

PURCHASING POLICY
AND

PROCEDURE MANUAL

REVISED JUNESEPTEMBER, 2020 2026 (REV 6-090826)
14 ii

CITY OF GARDEN GROVE

PURCHASING POLICIES & PROCEDURES

TABLE OF CONTENTS
Table of Contents ................................................................................... ii Mission Statement of the Purchasing Division ............................................. v Code of Ethics ........................................................................................ vi

CHAPTER 1 – GENERAL PURCHASING OVERVIEW AND STRUCTURE ................. 1

1.1 Introduction ....................................................................................... 1

1.2 Overview ........................................................................................... 1

1.3 Purchasing Structure ........................................................................... 2

1.4 The Purchasing Cycle ........................................................................... 2

1.5 Responsibilities ................................................................................... 3

CHAPTER 2 – PURCHASING AUTHORITY & THRESHOLDS AND REQUIREMENTS 5

2.1 Purchasing Authority ........................................................................... 5

2.2 Purchasing Thresholds and Requirements ............................................... 6

CHAPTER 3 – VENDOR INFORMATION AND RELATED
POLICIES ........................................................................................................ 101 1 3.1 New Vendor Approval
Process ............................................................................................................ 101 1 3.2 Planet Bids On-Line Vendor
Registration ...................................................................................................... 101 1 3.3 Local Vendor
Preference ................................................................................................... 111 2 3.4 Using Vendor Contracts versus City Approved
Contracts.......................................................................................................... 111 2 CHAPTER 4 – METHODS OF
PROCUREMENT ............................................................................................... 131 214

4.1 Requisition/Purchase Order and
Requirements ............................................................................................... 131 4 15

iii

4.2 Exemptions to Requisition and Purchase Order
Requirements .................................................................................................... 131 4 4.3 Procurement Cards/P-
Cards ...................................................................................................... 1415

4.4 Blanket Purchase Orders
1415

CHAPTER 5 – INFORMAL AND FORMAL BIDDING
PROCEDURES .................................................................................................. 161 7 5.1 Informal Bidding
Process ............................................................................................................ 161 7 5.2 Formal Bidding
Process ............................................................................................................ 161 7 5.3 Formal Bidding Process
Requirements .................................................................................................... 161 7 5.4 Award of Purchase
Order/Contract .................................................................................................. 171 8 5.5 No Bids Received/Non-Responsive Bids and
Proposals .......................................................................................................... 171 8 5.6 Rejection of Formal
Bids ...................................................................................................... 1718

CHAPTER 6 – EXCEPTIONS TO THE COMPETITIVE BIDDING
PROCESS ........................................................................................................ 181 9 6.1 Emergency Purchases
1819

6.2 Sole Source/Proprietary
Purchases ......................................................................................................... 192 0 16

iv

6.3 Cooperative Purchasing and Piggybacking on
Contracts.......................................................................................................... 202 1 6.4 Qualification Based Selection
2122

CHAPTER 7 – PURCHASE ORDERS FOR MATERIALS, SUPPLIES, EQUIPMENT AND OTHER
COMMODITIES ................................................................................................ 242 6 7.1 Requirements for Purchases up to
$15,000 ........................................................................................................... 252 7 7.2 Requirements for Purchases of $15,001-
$75,000 ........................................................................................................... 252 7 7.3 Requirements for Purchases of $75,001 and
greater ............................................................................................................. 252 7 7.4 Environmentally Friendly Purchasing (SB-
1383) ...................................................................................................... 2527

7.5 Vehicle
Purchases ......................................................................................................... 252 7 7.6 Change Orders to Purchase
Orders ...................................................................................................... 2627

CHAPTER 8 – PROFESSIONAL SERVICES/CONSULTANT AGREEMENTS 2729

8.1 Professional Service Agreements up to
$15,000 ........................................................................................................... 283 0 8.2 Professional Service/Consultant Agreements of $15,001- $75,000 ........................................................................................................... 283 0 8.3 Requirements for Professional Services Agreements of $15,001- $75,000 ........................................................................................................... 283 0 8.4 Professional Services/Consultant Agreements of $75,001 and greater 2931
17 v

8.5 Amendments to Professional and Consultant Services
Agreements ...................................................................................................... 293 1 8.6 Assembly Bill 339 (AB 339) Contraction Contracting Notifications and Labor Relations .......................................................................................................... 303 2 8.7 Low Dollar/High Risk
Services ........................................................................................................... 313 3 CHAPTER 9 – PUBLIC WORKS/CONSTRUCTION AGREEMENTS
3234

9.1 Uniform Public Construction Cost Accounting
Act 3537

9.2 Public Works Projects up to
$15,000 ........................................................................................................... 353 7 9.3 Public Works Projects of $15,001-
$75,000 ........................................................................................................... 353 7 9.4 Public Works Projects of $75,001-$220,000 (Informal Bid Procedure) ........................................................................................................ 363 8 9.5 Public Works Projects of $220,001 and greater (Formal Bid Procedure) .................................................................................................. 363 8 9.6 Change
Orders ...................................................................................................... 3840

9.7 Prevailing Wage Rates and Public Works
Projects ............................................................................................................ 384 0 9.8 Project Registration with the CA Department of Industrial Relations …….. ........................................................................................................... 394 1 9.9 Department of Industrial Relations (DIR) PWC 100
System ....................................................................................................... 404 2 18

vi

CHAPTER 10 – FEDERAL PURCHASING
REQUIREMENTS .............................................................................................. 424 4 10.1
Background ...................................................................................................... 464 8 10.2 Micro
Purchases ......................................................................................................... 464 8 10.3 Small
Purchases ......................................................................................................... 464 8 10.4 Sealed
Bids ...................................................................................................... 4648

10.5 Competitive
Proposals .......................................................................................................... 474 9 10.6 Sole
Source ............................................................................................................. 474 9 10.7 Debarment and
Suspension ....................................................................................................... 474 9 CHAPTER 11 – PURCHASING DURING PROCLAIMED EMERGENCY OR DISASTER ....................................................................................................... 485 0 11.1 Purpose and
Definition ......................................................................................................... 485 0 11.2 Delegation of Purchasing Authority in
Emergencies ..................................................................................................... 485 0 11.3 Reporting
Requirements .................................................................................................... 495 1 11.4 Procurement Procedures in
Emergencies ..................................................................................................... 495 1 19

vii

11.5 Ratification, Notification and Post-Award
Procedures ....................................................................................................... 515 3 CHAPTER 12 – INSURANCE AND CONTRACTUAL RISK TRANSFER
....................................................................................................................... 525 4 12.1 Inclusion in Bid
Materials .......................................................................................................... 525 4 12.2 Determination of Insurance
Requirements .................................................................................................... 525 4 12.3 Contract Indemnification Agreement and
Insurance ......................................................................................................... 535 5 12.4 Minimum Insurance
Specifications .................................................................................................... 535 5 12.5 High-Risk
Contracts.......................................................................................................... 545 6 12.6 Additional Types of Insurance
Coverage .......................................................................................................... 555 7 12.7 Surety
Bonds ...................................................................................................... 5658

12.8 Verification of Insurance
Coverage .......................................................................................................... 565 8 12.9 City of Garden Grove Insurance
Policies/Coverage .............................................................................................. 575 8 12.10
Definitions ........................................................................................................ 575 9 CHAPTER 13 – CENTRAL STORES
WAREHOUSE ................................................................................................... 586 0 20

viii

13.1 Services
Provided ........................................................................................................... 586 0 13.2 Surplus Property and
Equipment ........................................................................................................ 596 1 13.3 City Record
Storage ............................................................................................................ 616 3 CHAPTER 14 – CELLULAR PHONES AND OTHER
DEVICES ......................................................................................................... 626 4 APPENDIX- REFERENCE
DOCUMENTS ................................................................................................... 636 5 Bid Threshold Reference
Sheet ...................................................................................................... 6466 DIR
Guidelines ........................................................................................................ 656 7 Assembly Bill 339 (AB 339) Implementation
Guidelines ........................................................................................................ 666 8 Flowchart: Purchase of Materials, Supplies, Equipment and other Commodities ..................................................................................................... 676 9 Flowchart: Professional Services and Consultant
Agreements ...................................................................................................... 687 0 Flowchart: Public Works/Construction
Contracts.......................................................................................................... 697 1 Flowchart: Informal Bidding
Procedures ....................................................................................................... 717 2 Flowchart: Formal Bidding
Procedures ....................................................................................................... 727 3 21

ix

22 x

CODE OF ETHICS

As public employees, purchasing professionals, and staff members of the Purchasing Division for the City of Garden Grove, we owe our institutions our best, unbiased judgment every time we spend their money and/or act on their behalf. All staff members who engage in the procurement process shall agree to, be familiar with and be bound by the City of Garden Grove Code of Ethics for Public Officers and Employees as set forth in Chapter 2.02 of the Municipal Code.

In addition, the following rules of professional conduct shall govern the behavior of Assistant Buyer(s), Buyer(s), Storekeeper(s), Stock Clerk(s) and the Purchasing Division Manager in the fulfillment of their duties.

A. Act impartially and with the highest degree of integrity to foster public confidence in City Government, and make every effort to ensure open and fair competition for available City Business in accordance with the Garden Grove Municipal Code and the Garden Grove Purchasing Manual.

B. Do not to accept, directly or indirectly, any tangible or intangible benefit, the value of which is five dollars ($5.00) or more, including, but not limited to, money, gifts, favors, entertainment, discounts, passes, transportation, accommodation, hospitality, or offers of employment that may influence or give the appearance of influencing procurement-related decisions. This includes those items exceeding said value that have an imprinted company logo and could be perceived, by virtue of their use in the Department, as an endorsement of, or preference for a particular product or service.

C. Declare a conflict of interest when a potential organization is to be selected for contract award that employs him or her, is about to employ him or her, or his or her family members or partner. The officer, employee of agent shall not solicit or accept gratuities, favors or anything exceeding five dollars ($5.00) in value from contractors, potential contractors, or parties to sub-agreements and subcontracts.

D. Immediately disclose any real or apparent potential conflict of interest to the employee’s supervisor and refrain from all activity with respect to this vendor upon learning that the City is conducting or intends to conduct business with a vendor which the employee, or a member of the employee’s family may have a financial interest.

E. Conduct themselves in a courteous and professional manner with the Department’s customers and vendors, and act professionally and without discrimination or bias.

F. Do not utilize confidential or sensitive information acquired in the course of their duties for personal gain or for the benefit of family or friends.

23 xi

G. Immediately inform their supervisor and other department management upon learning of a potential or existing problem that the Department has an interest in. Employees will strive to ascertain all relevant facts in a timely manner as well as analyze all possible solutions, and present what they believe to be the best solution to their supervisor.

H. Do not willfully or unlawfully conceal, remove, mutilate, falsify or destroy any document or records.

I. Do not make any false or fictitious statements in connection with any official matter, document or record.

Violation of any provision of this policy may be cause for disciplinary action. Disciplinary action may range from an oral reprimand to termination. The City reserves all rights to pursue appropriate legal action to the fullest extent permitted by law.

24 1
CHAPTER 1:

GENERAL PURCHASING OVERVIEW AND STRUCTURE

1.1 INTRODUCTION

This Purchasing Manual has been prepared to provide guidance and training for the procurement of all equipment, materials, supplies and services needed by departments within the City. This manual outlines the steps of each type of procurement process from the beginning to the end. The Garden Grove Municipal Code is the guideline for this manual and can be referenced on the City’s Intranet.

The Purchasing Division is responsible for managing the informal and formal bidding process, processing of all purchase requisitions, developing and reviewing contracts, and the administration of the p-card and cell phone programs. The Purchasing Division also oversees the operations of the Central Stores Warehouse which includes receiving and surplus property disposal.

1.2 OVERVIEW

As a public entity, it is critical that the purchasing procedures adopted by the City Council are equitable, transparent and follow the applicable statutory requirements.

The Purchasing Manual was created to serve as a reference tool for departments in translating needs into tangible items and services. The purpose of this manual is to provide the necessary guidance for staff to obtain needed products and services as directed by the Municipal Code, Ordinances and Resolutions, Administrative Regulations, and State and Federal Regulations.

In addition to outlining the basic purchasing processes and threshold limits, this manual also provides detailed information on the informal and formal bidding processes, insurance requirements and the Central Stores Warehouse operations.

This manual cannot address every situation. When an unusual situation occurs or a difficult legal problem arises, the City Council, City Manager or designee, may approve exceptions to this policy, when in the best interest of the City, so long as the proposed exceptions are consistent with local, state, and federal laws. The final authority for City purchasing procedures is the law itself.

It shall be the policy of the City to fully comply with and make purchases or expenditures pursuant to this manual.

The goal of this manual is to present a user-friendly, easy-to-understand document that summarizes the procurement process and provides information that is most useful to the procurement process. If you cannot find the answer to your question in this manual, please call the Purchasing Division for assistance. We are happy to be of service.

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1.3 PURCHASING STRUCTURE

The City of Garden Grove operates under a decentralized purchasing function for purchases that do not exceed a total amount of $75,000 in which specific employees in the various departments are responsible for purchasing decisions for services, equipment, and goods within a certain dollar threshold per the approval of the department head/designee and City Manager. The Purchasing Division advises and assists the departments as needed, and initiates purchases that benefit the City.

City departments may contact vendors for product information and to obtain informal quotes for materials, supplies and equipment and proposals for services that do not exceed the $15,000 purchasing threshold. All purchases that do not fall within this dollar threshold must be executed per the guidelines established within this Purchasing Manual.

1.4 THE PURCHASING CYCLE
Purchasing and procurement are citywide functions. Virtually every City employee participates either directly or indirectly in the process. Procurement begins with employees identifying a requirement for a product or service. The purchasing cycle establishes the proper steps for all department staff to follow when requisitioning supplies, materials, and equipment; public works projects; and/or professional/consultant service contracts.

The Budget
Step One: Approval of the City’s budget. The budget authorizes the City Manager and designees to purchase the materials, supplies, services, and equipment in the budget document. Purchases for certain dollar amounts are subject to further requirements, such as department head approvals, City Manager/Designee approval, City Council approval, and/or bidding requirements.

Method of Purchase
Step Two: Departments choose the method of purchase according to the type and dollar value of the purchase. A requisition is submitted, routed through the approval workflow process, and is eventually converted into a purchase order or contract.

Risk Management Review
Step Three: Risk Management evaluates the potential risk and determines the appropriate insurance requirements and contract language.

Receiving and Acceptance
Step Four: Once the product or service has been received or accepted, payment authorization can proceed. All goods should be shipped to a City facility to ensure receipt by City staff, unless approved by the Purchasing Division Manager prior to making the purchase.

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1.5 RESPONSIBILITIES
Department Responsibilities
 Obtain full and open competition in accordance with City policies and procedures in a manner that presents the best overall value to the City.  Know the requirements of your funding source. Grants and Federal funding may have different requirements and always defer to the stricter funding requirements or the City purchasing policies
 Verify available budget prior to making purchases
 Anticipate requirements sufficiently in advance to allow adequate time to obtain goods in accordance with the best purchasing practices  Determine if prevailing wages are required and confirm DIR registration requirements are met prior to obtaining bids and quotes  Contact Risk Management to obtain insurance recommendations and contract language prior to obtaining bids and quotes or issuing contracts  Do not split orders for the purpose of avoiding purchasing and bid requirements or approval levels
 Provide detailed, accurate specifications to ensure goods obtained are consistent with requirements and expectations
 Enter requisitions according to instructions and provide all required supporting documentation required for procurements to minimize processing time
 Limit urgent and sole source purchases and provide written documentation for review when these purchases are necessary
 Obtain the required approvals prior to purchasing goods or services  Provide fair and equitable treatment of contractors
Risk Management Responsibilities
 Review draft contracts and contract amendments and provide insurance recommendations and language
 Contact vendors to obtain additional insurance documents when needed  Evaluates risk to determine if insurance requirements can be waived based on risk assessment
Purchasing Responsibilities
 Ensure full and open competition on all purchases as required by the purchasing policy
 Coordinate vendor relations, locate sources of supply and evaluate vendor performance
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 Recommend revisions to purchasing procedures when necessary and stay informed of current developments in the field of public purchasing and state laws pertaining to purchasing

 Prescribe and maintain all forms and records necessary for the efficient operation of the purchasing function
 Act as the City’s agent in the transfer and disposal of surplus equipment and materials

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CHAPTER 2:

PURCHASING AUTHORITY & THRESHOLDS AND REQUIREMENTS

2.1 PURCHASING AUTHORITY

Under the provisions of Chapter 2.50.020 of the Garden Grove Municipal Code, the Finance Director has been given the authority to purchase or contract for all supplies, services or equipment required by any City department. The Municipal Code further sets forth formal and open market procedures to be followed in carrying out purchasing functions. The Finance Director may delegate this responsibility to the Purchasing 29 6
Division.

City Council Resolution No. 9212-14####-26______ authorizes the City Manager or his/her designee to approve contracts for professional services and for the purchase of supplies and equipment up to $75,000 per person or entity, in any single fiscal year.

Public Works contracts are authorized under the California Public Contract Code and Chapter 2.52 (Public Works Construction Bid Procedure) of the Garden Grove Municipal Code.

Pursuant to Section 2.50.020 (Purchasing Authority) of the Garden Grove Municipal Code, the City of Garden Grove Purchasing Manager has the authority, as delegated by the Finance Director, to:

A. Purchase or contract for supplies, services, and equipment required by any using agency in accordance with purchasing procedures prescribed by the Code, such administrative regulations as he or she shall adopt for the internal management and operation of the Purchasing Division, and such other rules and regulations as shall be prescribed by the City Council or City Manager;

B. Negotiate and recommend execution of contracts for the purchase of supplies, services, and equipment;

C. Act to procure for the City the needed quality in supplies, services, and equipment at the least expense to the City;

D. Discourage uniform bidding and endeavor to obtain as fully and open competition as possible on all purchases;

E. Prepare and recommend to the City Council through the City Manager, rules governing the purchase of supplies, services, and equipment for the City;

F. Prepare and recommend to the City Council through the City Manager, revisions and amendments to the purchasing rules;

G. Keep informed of current developments in the field of purchasing, prices, market conditions, and new products;
H. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations; I. Supervise the inspection of all supplies, services, and equipment purchased to ensure conformance with specifications;
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J. J. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment that cannot be used or that have become unsuitable for City use; and K. K. Maintain a bidder’s list and records needed for the efficient operation of the Purchasing Division (2813 § 1, 2012; 1274 § 1, 1972)

2.2 PURCHASING THRESHOLDS AND REQUIREMENTS

The following charts are reference guides that outline the different types of procurements, the requirements for each process, and the proper channels of approval. Please reference Chapters 7, 8 and 9 of this manual for a detailed explanation of each procurement process.

Purchase of Materials and Supplies, Equipment and other Commodities Dollar Threshold Requirements Requisition
Approval/Authority
$1–$15,000
Requisition/PO and one (1) informal
quote required for amount over
$1,000

*Purchases under $1,001 do not
require a Requisition/PO

Requisition Approval:

Department Head/Designee
approval required

Authority: Department
Head/Designee approval
required

$15,001–$75,000
Obtain three (3) informal quotes

Requisition/PO Required
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee approval
required up to $75,000

Note: All vehicles require City
Council approval regardless
of dollar amount per Section

5.7: Vehicle Purchases.

$75,001 and greater
Formal Bid (IFB) Process
Required

Requisition/PO Required

Requisition Approval:

Department Head/Designee
approval required

Authority: City Council approval
required for purchases greater
than $75,000

Note: All vehicles require City
Council approval regardless
of dollar amount per Section

5.7: Vehicle Purchases.

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Contracts for Professional Services and Consultant Services Dollar Threshold Requirements Requisition
Approval/Authority
$1–$15,000
Requisition/PO and one (1) written
proposal required for all services that
exceed $1,000
*Services under $1,001 do not
require a Requisition/PO
Contract and insurance validation is not
required for services between $1,001-
$15,000 unless deemed as necessary by
Risk Management
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee signature
required on all contracts

$15,001–$75,000
Requisition/PO, one (1) written proposal
and contract required

Mini Brooks Act may apply

Insurance required as per contract and
Risk Management recommendations
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee signature
required on all contracts

$75,001 and
greater
Formal Request for Proposal (RFP)
Process Required

Mini Brooks Act may apply

Requisition/PO, scope of work and
contract required
Insurance required as per contract and
Risk Management recommendations
Requisition Approval:

Department Head/Designee
approval required

Authority: City Council
approval required

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Purchase Orders and Contracts for Public Works/Construction Projects Dollar Threshold Requirements Requisition Approval/Authority $1-$15,000

Provide a detailed scope of work to
potential contractors and obtain one
(1) written quotation which includes
prevailing wage rates

Prevailing Wage rates required for work
of $1,000 and greater

Requisition/PO and one (1) written
quotation required for amount over
$1,000

Contract and insurance validation is
not required for services between
$1,001-$15,000 unless deemed as
necessary by Risk Management
Valid Contractor License in good
standing required
Requisition Approval/Authority:

Department Head/Designee approval
required

DIR: Notice of contract award
through DIR’s PWC-100 NOT

REQUIRED

$15,001 –$75,000

Provide a detailed scope of work to
potential contractors and obtain three
(3) written quotations which includes
prevailing wage rates

Valid Contractor License in good
standing required

Must provide proof of registration (prime
and all sub-contractors) with the DIR:

Department of Industrial Relations

Contract and Insurance required as per
contract and Risk Management
recommendations
Labor/Material & Performance Bonds
required for contracts over $25,000

Prevailing Wage rates required

Requisition Approval: Department
Head/Designee approval required

Authority: City Manager/ Designee
signature required on all contracts
up to $75,000

DIR: Project Managers are required
to submit notice of contract award
through DIR’s PWC-100 system on
projects that fall outside of the small
project exemption within 30 days of
the award/approval date, or before
beginning any work.

. The small project exemption
applies for all public works projects
that do not exceed:
- $25,000 for new construction,
alteration, installation,
demolition or repair
- $15,000 for maintenance
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Dollar Threshold Requirements Requisition Approval/Authority

$75,001-$220,000
Informal Bid Process Required per
GGMC 2.52.030

Requisition/PO, Scope of Work/Plans
and Contract required

Notice of Inviting Bids required

Valid Contractor License required

Must provide proof of registration
(prime and all sub-contractors) with
the DIR: Department of Industrial
Relations

Labor/Material and Performance Bonds
required

Insurance required as per contract and
Risk Management recommendations

Prevailing Wage rates required
Requisition Approval: Department
Head/Designee approval required

Authority: City Council approval
required

DIR: Project Managers are required
to submit notice of contract award
through DIR’s PWC-100 system on
projects that fall outside of the small
project exemption within 30 days of
the award/approval date, or before
beginning any work.
. The small project exemption
applies for all public works projects
that do not exceed:
- $25,000 for new construction,
alteration, installation,
demolition or repair
- $15,000 for maintenance

.

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Dollar Threshold Requirements Requisition Approval/Authority $220,001 and greater
Formal Bid Process Required per
PCC 22037

Requisition/PO, Scope of Work/Plans
and Contract required

Notice of Inviting Bids required

Valid Contractor License required

Must provide proof of registration
(prime and all sub-contractors) with
the DIR: Department of Industrial
Relations

Labor/Material and Performance Bonds
required

Insurance required as per contract and
Risk Management recommendations

Prevailing Wage rates required

Requisition Approval: Department
Head/Designee approval required

Authority: City Council approval
required

DIR: Project Managers are required
to submit notice of contract award
through DIR’s PWC-100 system on
projects that fall outside of the small
project exemption within 30 days of
the award/approval date, or before
beginning any work.
. The small project exemption
applies for all public works projects
that do not exceed:
- $25,000 for new construction,
alteration, installation,
demolition or repair
- $15,000 for maintenance

.

* A purchase order will be required once cumulative fiscal year spending with any vendor exceeds $1,000.

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CHAPTER 3:

VENDOR INFORMATION AND RELATED POLICIES

3.1 NEW VENDOR APPROVAL PROCESS
Before making purchases other than with petty cash and p-cards, new vendors must be set up in the City’s financial system. New vendor requests are to be entered by the departments.

For one-time transactions under $1,001 where purchase orders are not required, the Finance Department will be responsible for setting up these vendors so invoices can be processed. The Finance Department will also be responsible for updating all existing vendor records which include changes to vendor address, payment method, W-4, etc.

Departments are responsible for new vendor setup only when the department is trying to initiate a purchase requisition with that vendor. New vendors are required to submit a Vendor Set-Up form and other documents will need to be filled out by the vendor which include:
 Required - New Vendor set-up information. This form also includes changes to existing vendor information.
 Required - W-9 Form
 Optional - EFT form
The Vendor Set-Up form is to be attached in PEUPPE in Financial Enterprise (FE) at the time the vendor number is created and all the pertinent information needs to be entered in the screen. All information must be complete and accurate in order for invoices to be processed. Purchasing will reject any vendor creation that does not have the documents mentioned above attached to the record in PEUPPE.

The vendor request will be submitted to the Purchasing Division for review and approval. Once approved, a vendor number is assigned and the department will be notified. The new vendor is then available to use by all departments.

3.2 PLANET BIDS ON-LINE VENDOR REGISTRATION

The Purchasing Division utilizes an online registration and bidding system to conveniently assist and notify vendors and businesses of various bid opportunities, news, and updates. The electronic bidding system provides an easy and accessible way to obtain solicitation documents. Registered companies will receive customized emails notifying them of specific bids, the ability to search for bids, and download documents.

The City utilizes a customized list of commodity codes to register and notify potential bidders for opportunities. In order to access the system, vendors must register with the City.

Current and new vendors that would like to receive notification of bid opportunities from the City are encouraged to register online. The system requires all vendors to 36 13
have email capability to download solicitations, documents, addendums, and award information. Both formal and informal solicitations can be processed through the online bidding system. When a vendor does not have access to register online, Purchasing Division staff will assist in the registration and bidding process. Once registered, all vendors are solely responsible for maintaining current and accurate profile information.

Vendors may edit their profile at any time.

This system provides vendors with a searchable online database of current bid and proposal solicitations and opportunities.

Some of the key system features and vendor benefits include:

A. Vendors’ ability to maintain their own profiles as a new or existing vendor B. Receive automatic email notifications for selected bid opportunities based on product/service categories
C. Searches for requests, addenda, plan holders lists, bid results, and awards D. Request and download bid document(s) when available
E. Receive automatic addendum notifications as a bid participant

The City now conducts the majority of its formal bid and proposal solicitations through this on-line bidding system. To receive full advantage of this program, we encourage all vendors to register online by accessing the City’s website.

3.3 LOCAL VENDOR PREFERENCE

Where all factors are considered and are deemed equal, preference shall be given to local merchants when the local merchants’ bids are within 2% of the lowest bid received, provided that the dollar amount represented by the 2% difference does not exceed $5,000. This provision shall only be utilized where bids in the amount of $5,000 or higher are solicited.

3.4 USING VENDOR CONTRACTS VERSUS APPROVED CITY CONTRACTS

Project Managers may encounter a situation where the vendor prefers for the City to use their contract versus a standard City approved contract. It is recommended that the project manager send the vendor a sample copy of the City’s standard contract for review prior to agreeing to use a vendor’s contract.

If a decision is made to use the vendor’s contract, the following steps must be followed by the project manager to ensure that the proper insurance requirements are included within the contract and that the City is able to comply with all of the terms of the vendor contract.

A. Risk Management Review: A copy of the vendor contract and the scope of work should be forwarded to Risk Management for review and insurance recommendations and language.

B. City Attorney Review: Once Risk Management reviews the vendor’s contract, it should then be forwarded to the City Attorney for review and approval as to 37 14
form. The City Attorney will make recommendations and may request that the vendor make changes to their contract prior to obtaining signatures.

C. Consult with the Vendor: The project manager shall communicate any changes or recommendations back to the contractor for review and revisions to their contract. Once the contract has been revised, signatures can be obtained. In the event that the contractor does not agree with the proposed changes, Risk Management and/or the City Attorney should be contacted for further discussion and negotiation.

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CHAPTER 4:

METHODS OF PROCUREMENT

The most common methods of procurement are purchase orders and contracts which are discussed in detail in Chapters 7, 8 and 9. This chapter will discuss other methods that are available and the guidelines for each method. These alternate methods of 39 16
procurement should not be used when a purchase order or contract is required according to the purchasing policies and guidelines.

4.1 REQUISITION/PURCHASE ORDER AND REQUIREMENTS

A requisition and purchase order are required for the following purchases:

1. Materials/Supplies/Commodities

2. Equipment

3. Public Works/Construction contracts

4. Professional Service/Consultant contracts

5. Changes Order requests to make changes to existing purchase orders

6. Requests for Master Blanket Purchase Orders

7. Releases against Master Blanket Purchase Orders

8. Amendments to existing Professional Service/Consultant contracts

9. Change notices to Public Works/Construction contracts

10.Request to initiate a formal bid or request for proposal process

11.If the purchase involves obtaining any of the following items, a requisition and purchase order are always required, regardless of the dollar threshold.  Furniture (Chairs, Desks, Systems Furniture/Cubicles, etc.)  Software and Computer Products (may require prior approval from the Information Technology Department)
 Ammunition
 Weapons-replacement parts are exempt

4.2 EXEMPTIONS TO REQUISITION AND PURCHASE ORDER REQUIREMENTS

The following are exemptions to the requisition and purchase order process: The following products and services do not require the submission of a requisition or purchase order.

1. Filing Fees

2. Travel Services – such as hotel reservations, rental cars, and airfare

3. Licenses

4. Utility Payments-including usage and services that must be performed by utility companies such as pipeline relocations and meter replacements

5. Professional Membership Dues

6. Registration fees

7. Subscriptions for magazines/periodicals

8. Tuition

9. Other Governmental Agencies

10.Contracts for services under $1,001, until cumulative fiscal year spending with any vendor exceeds $1,000.

11.Purchases for goods/commodities under $1,001 until cumulative fiscal year spending with the vendor exceeds $1,000.

12.Reimbursement for items under the petty cash procedure

13.Insurance Premiums, Claims and Settlements

14.Conferences and Business Meetings

15.Mandated Payments

16. Gift Cards for City related events or programs

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4.3 PROCUREMENT CARDS/P-CARDS

The procurement card program is an efficient, cost-effective method of purchasing and paying for small-dollar and high-volume purchases. P-Cards offer an alternative to the traditional purchasing process and can result in a significant reduction in the volume of paperwork, reporting and a more streamlined process. Cardholders must ensure that funds are available in the current fiscal year budget prior to making purchases. A purchase order is not required when using a P-Card.

The use of City issued procurement card (P-Card) shall comply with the City's Purchasing Policy and Procedures adopted by the City Council. P-Card purchases should not be “split” to circumvent transaction limits or bidding requirements established under the City's Purchasing Policy and Procedures.

Please reference Administrative Regulation 5.8 (Use of City Procurement Cards) for additional information and restrictions of use.

4.4 BLANKET PURCHASE ORDERS

 Blanket purchase orders are used for various categories of items such as office supplies, hardware, maintenance supplies, and certain types of on-call services.

Master blanket purchase orders will be established at the beginning of each fiscal year and must be a collaborative effort amongst various City departments. This will ensure discounted pricing based on larger purchases and economies of scale. Pricing should be based on discounted pricing through negotiated contracts or through contracts that have already been formally bid such as state contracts or cooperative agreements.

 Blanket purchase orders are required for all vendors that are frequently used and where the cumulative fiscal year spending with the vendor on similar purchases exceeds $1,000. Once a blanket purchase order is established, purchases that fall within the $15,000 bidding threshold must be applied towards the existing blanket purchase order via Release purchase orders. Invoices cannot be paid directly against a blanket purchase order, it is the department’s responsibility to initiate a Release purchase order to allow invoices to be paid. Release purchase orders must be established for all frequently used vendors even if the purchase is under $1,001.

 The available balances on blanket purchase orders must be used within the term specified. Once the blanket purchase order expires, purchasing staff will verify with the department that there are no pending payments before closing out the blanket purchase order and the associated Releases. Once the Releases are closed, any remaining balances will be automatically disencumbered, and cannot be carried over into future purchase orders.

 Blanket purchase orders should only be established for contracts that are for on-call or emergency services. Contracts that have a set annual budgeted amount should be set up as “C” Type purchase orders and the total annual amount will be encumbered up front. Examples of contracts that should not be set up as blanket purchase orders include but are not limited to: Park Maintenance, Janitorial 41 18
Services, Parking Citation Processing, Tree Maintenance, Graffiti Abatement and Street Sweeping.

Master Blanket Purchase Orders

• Master blanket purchase orders are “B” type purchase orders • The requestor will enter a requisition to initiate a new master blanket purchase order which includes the purchase order amount and negotiated pricing list or contract
• Purchasing will create the master blanket purchase order • Purchasing will verify annual spending amount based on history to ensure collaboration amongst City departments
• Purchasing staff can assist with negotiated pricing for the items to be purchased under the master blanket purchase order when needed
• Funds are not encumbered (non-encumbered) at the time the master blanket purchase order is created
• Master blanket purchase orders will be renewed at the beginning of each fiscal year
• Master Blanket Purchase Order and Terms and Conditions will be sent to the vendor

Releases against Master Blanket Purchase Orders

• Releases against Master Blanket purchase orders are “P” type purchase orders • The requestor will enter a requisition to initiate a release against the master blanket purchase order
• Releases are the anticipated spending amount per quarter or time period the user choses and are encumbered
• Releases can be done on a quarterly basis or as needed • Release purchase orders against the master blanket purchase orders will not be sent to the vendors
• Release purchase orders are only valid in the fiscal year they are created and must be closed out at the end of the fiscal year. New release purchase orders must be created for each new fiscal year.

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CHAPTER 5:

INFORMAL AND FORMAL BIDDING PROCEDURES

5.1 INFORMAL BIDDING PROCESS
Informal bidding procedures require the solicitation of written informal quotes and proposals from vendors as required per the purchasing thresholds. These may be submitted by email, fax, internet websites, or mail. Informal bidding procedures apply to the following:
 Purchases – for materials, supplies, equipment and commodities up to $75,000  Professional/Consultant Service Contracts up to $75,000  Public Works Contracts up to $220,000. Notice of Inviting Bids is not required under the informal bidding process except for Public Works projects over between $75,0001 and $220,000, which require a Notice Inviting Informal Bids.

5.2 FORMAL BIDDING PROCESS
Formal bidding procedures require a formal type of bidding process such as an IFB (Invitation for Bids) or RFP (Request for Proposal) process. Formal bidding procedures apply to the following:
 Purchases – Materials, supplies and equipment that exceed $75,000 require a formal IFB process.
 Professional/Consultant Service contracts over $75,000- All professional and consultant services that exceed $75,000 require a formal RFP process.  Public Works Projects over $220,000- All Public Works projects that exceed $220,000, require a formal IFB (Invitation for Bids) process.

5.3 INFORMAL AND INFORMAL BIDDING PROCESS REQUIREMENTS
A. Informal Biddings - Vendor List: The City shall maintain a list of vendors which is maintained in the City’s Planet Bids portal to whom the City will send notices of informal bids no less than 10 calendar days before bids are due per Public Contracts Code sect. 22034. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.

B. Formal Bids - Per Public Contracts Code sect. 22037, notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the City; or, if there is no newspaper printed and published within the City, in a newspaper of general circulation which is circulated within the City, or, if there is no newspaper which is circulated within the City, publication shall be by posting the notice in at least three places within the City as have been designated by ordinance or regulation of the City as places for the posting of its Formatted: Underline
43 20
notices. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or electronic mail and mailed to all construction trade journals specified in Section 22036. The notice to journals shall be sent at least 15 calendar days before the date of opening the bids. In addition to notice required by this section, the City may give such other notice as it deems proper.

The Notice Inviting Bids shall include:
(a) State the time and place for receiving and opening of sealed bids (b) Distinctly describe the project
(c) Project title and contract number
(d) Date, time, and place for receiving bids
(e) City’s address and phone number
(f) Brief description of work to be done
(g) Bond requirements-required for Public Projects of $25,000 and greater (h) Where plans or scopes of service may be obtained
(i) If a deposit is required and whether or not the deposit is refundable

C. Formal Bid Opening: Sealed bids can submitted to the Purchasing Division or the City Clerk’s Office in paper or electronic format, per bid instructions. DIR registration is verified for all contractors and subcontractors prior to bid opening.

Bids are publicly opened and recorded at the time and place stated in the public notices. All bids received will be available for public inspection at the time of the bid opening or within 24 hours if the submittal is electronic. The Purchasing Division or City Clerk’s Office will be responsible for bid tabulations.

5.4 AWARD OF PURCHASE ORDER/CONTRACT

If a purchase order or contract is awarded through an IFB (Invitation for Bid) process, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one it chooses, subject to the local vendor preference in Garden Grove Municipal Code Section 2.50.110 (Open Market Procedure).

Contracts that are awarded through an RFP (Request for Proposal) process are based upon the specified scoring criteria and not based on the lowest priced proposal submitted.

5.5 NO BIDS RECEIVED/NON-RESPONSIVE BIDS AND PROPOSALS
If no bids or proposals are received through the formal or informal bidding procedure, the goods or services may be secured by negotiated contract.

5.6 REJECTION OF FORMAL BIDS

In the event that a decision is made to not award a formal bid that falls under the authority of the City Council, the department must obtain authorization from the City Council to reject all bids. If a decision is made to re-bid the project, then the department must also obtain City Council approval to re-bid the project. This request would be considered a Consent Item on the City Council agenda and the department must prepare the staff report accordingly.
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CHAPTER 6:

EXCEPTIONS TO THE COMPETITIVE BIDDING PROCESS

Purchases of supplies, services, equipment, and the sale of personal property shall be by bid procedures pursuant to Garden Grove Municipal Code Section 2.50.060 (Bidding). Bidding may be dispensed with only when:

A. The amount is equal to or less than $75,000;
B. An emergency requires that the order be placed with the nearest available source of supply and/or service providers, subject to Garden Grove Municipal Code Section 2.50.070 (Emergency Purchase Justification); C. The Finance Director determines that the commodity can be obtained from only one vendor;
D. The City has a contract with another governmental agency to purchase a particular item or service on a cooperative basis; E. The purchase price and other terms are similar to those in a contract awarded for the same goods and/or services by another public agency or government purchasing cooperative organization based on a competitive process similar to the processes described in Garden Grove Municipal Code Section 2.50.100 (Formal Contract Procedure) or 2.50.110 (Open Market Procedure) [piggy-backing];
F. The contract is for professional services to be let primarily based on qualifications; or
G. The City Council determines it to be in the best interest of the City.

6.1 EMERGENCY PURCHASES

In the event of an emergency, competitive bidding procedures may be bypassed when time is of the essence.

The City Manager has the final authority on all emergency requests. An emergency memo must be reviewed and signed by the City Manager or his/her designee.

Insurance Requirements will also be waived if the situation does not allow adequate time for the insurance approval process.

An emergency is defined as follows:

EMERGENCY: An emergency situation exists when the life safety, health or welfare of the public or employees is affected by a sudden and unexpected occurrence, which requires immediate action to prevent or mitigate a loss.

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6 pt
Formatted: Indent: Left: 0", Hanging: 0.3"
45 22

An emergency situation does not exist when staff has neglected to allow sufficient time to process an order or obtain a product or service that does not fall under the requirements of an emergency as defined above.

When an emergency situation exists, Purchasing staff or the Finance Director should be contacted whenever possible. Purchasing staff will confirm if the situation qualifies as an emergency, and will assist the department as needed with placing an order or service call with the nearest available source.

If the Purchasing Division or the Finance Director cannot be reached, the Department Director may authorize placing an order or service call with the nearest available source. The Department Director is responsible to notify the City Manager of the emergency situation.

If an emergency situation requires expenditures in excess of $75,000, a Manager’s memo shall be sent to notify the City Manager and the approval of City Council may be required at its next scheduled meeting.

The requesting Department will be responsible for submitting the following documents to the Purchasing Division within 48 hours of the occurrence:

A. Requisition which is flagged with a requisition code of “99” to mark it as an emergency and enter notes regarding why it is an emergency in the PR notes field and attach the following documents:

 Emergency Memo-which explains and justifies the emergency situation and is signed by the Department Director or his/her Designee.

For purchasing policies during major disasters and emergencies that may require FEMA reimbursement, please reference Chapter 11: PURCHASING DURING PROCLAIMED EMERGENCY OR DISASTER.

6.2 SOLE SOURCE/PROPRIETARY PURCHASES

In some cases, the competitive bidding process cannot be accomplished due to a sole source condition where the services or products are available only from one source. A sole source situation may also exists when “compatibility” or “best fit” with existing equipment or services exists, and when in the best interest of the City. The Department Director or his/her designee must make this determination which is subject to the approval of the Purchasing Manager and Finance Director.

Sole Source requests should not be made unless the Department is confident that the request is reasonable, appropriately justified to meet the City’s requirements, and can withstand a possible audit. Sole source purchasing minimizes or eliminates fair and open competition and should be avoided whenever possible.

Sole sources purchases are not exempt from the purchasing thresholds or the City Manager and City Council approval requirements.
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The requesting Department will be responsible for submitting the following documents to the Purchasing Division when requesting a sole source purchase:

A. Requisition which is flagged with a requisition code of “SS” to mark it as a sole source purchase and attach the following:

 A Sole Source Memo that is signed by the Department Director or his/her designee, and should provide an objective written explanation along with any written documentation signed the by sole source vendor to further support the request. Approved Sole Source Memos will be approved for the specific request only. Approvals may remain valid for a one year period if multiple purchases for the same product/service will be made within a one year period and the sole source situation has not changed. For services, the sole source approval will remain valid for the entire term of the specific contract for which it was approved. New contracts must be reviewed to ensure that a sole source situation exists. If at any time after approval it is learned that the product or service is now available from other sources, the sole-source approval will be revoked.

Services performed in connection with project development and permit processing must comply with federal and state environmental laws.

Sole source purchases that fall under the Federal Purchasing Requirements must be properly documented per federal requirements.

6.3 COOPERATIVE PURCHASING AND PIGGYBACKING ON CONTRACTS If a product or service is available through the utilization of another public entity’s contract (included but not limited to City, County, State, Federal, School District, California Communities Programs, Federal GSA, JSPA, and NASPO Value Point), the City can participate in a cooperative purchasing agreement or “piggyback” onto an existing contract and waive the competitive bidding process when all requirements are met.

Local vendors should also be taken into consideration before utilizing cooperative agreements.

In the case of a contract, the City will request that the same pricing be honored in the existing contract, but may issue a City approved contract since the City’s terms and conditions may vary from other entities.

Piggybacking may not be used for Public Works projects.

In order for the City to piggyback onto an existing contract with another public entity, the existing contract with that entity must meet the following requirements:

A. The product or service must have been competitively bid

B. The contract must be current

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C. The contract must be for the same product or service

D. The contract must be approved and awarded by the entity’s governing body

E. The contractor must honor the contract pricing

The following items should be submitted to the Purchasing Division and the City Attorney for review to ensure that due diligence is performed when requesting to piggyback onto an existing contract of another public agency:

A. A copy of the bidder’s response to the public agency which includes a bid summary/comparison of all bids received
B. A complete copy of the existing contract with the other public agency

C. A copy of the clause that allows for another public entity to piggyback onto the existing contract, or written confirmation from the contractor honoring the other agency’s pricing to the City

D. Proof of the approval and award by the governing body of the other agency

6.4 QUALIFICATION BASED SELECTION

The Mini-Brooks Act (California Government Code Sections 4525-4529.5) provides exceptions to awarding a contract to the lowest bidder for the procurement of professional services in areas, which require a substantial amount of professional expertise and judgment.

Examples of such services include architectural and engineering (A/E), environmental, land surveying, and construction management services. The terms of these agreements should be negotiated and awarded to the most qualified and competent firms to perform the scope of work. It is necessary to engage market forces during these procurements through a Qualifications Based Selection (QBS) process to ensure that staff has a thorough understanding of the qualifications of the firms within the given industry and to obtain the best overall value for the City.

The QBS process is defined as follows:

A. Funding

1. Federal-if any federal dollars are involved with contracts for the “Architectural and Engineering” services, the procurement must comply with “Brooks Act,” 40 U.S.C. sections 1101-1104.

2. State and Local- if only state and local funds are involved with the contract for “Architectural and Engineering” services, the procurement must comply with “Mini Brooks Act,” California Government Code sections 4525-4529.5.

B. ARCHITECTURAL AND ENGINEERING SERVICES

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1. Federal-Under the “Brooks Act” architectural and engineering services are defined as:

 Professional services of an architectural or engineering nature, as defined by state law, if applicable, that are required to be performed or approved by a person licensed, registered, or certified to provide the services

 Professional services of an architectural or engineering nature performed by contract that are associated with research, planning, development, design, construction, alteration, or repair of real property; and

 Other professional services of an architectural or engineering nature or incidental service, which members of the architectural and engineering professions (and individuals they employ) may logically or justifiably perform, including studies, investigations, surveying and mapping, tests, evaluations, consultations, comprehensive planning, program management, conceptual designs, plans and specifications, value engineering, construction phase services, soils engineering, drawing reviews, preparation or operating and maintenance manuals and other related services.

2. State and Local-Under the “Mini Brooks Act” architectural and engineering services are defined as:

 Those professional services of an architectural, landscape architectural, engineering, environmental, or land surveying nature as well as incidental services that members of those professions and those in their employment may logically or justifiably perform.

 Those services provided by a licensed architect, registered engineer, or licensed general contractor which meet the requirements of Government Code section 4529.5 for management and supervision work performed on construction projects.

 Those services performed in connection with project development and permit processing in order to comply with federal and state environmental laws.

C. PROHIBITIONS

The “Mini Brooks Act’ includes a prohibition that local agencies “shall specifically prohibit practices which might result in unlawful activity including, but limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit government agency employees from participating in the selection process when these employees have a relationship with a person or business entity seeking a contract under this section.

D. SELECTION PROCESS

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The goal of the Qualifications Based Selection (QBS) is to assure that the services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed. Price is not considered until after the most qualified firm has been selected by the agency. Once the most qualified firm is selected, the agency negotiates for services to be supplied at a fair and reasonable price. The process includes the following:

1. Determine if QBS must be utilized-determine what types of services are required and whether they are “Architectural and Engineering” services.

2. Determine Funding Source-determine if federal monies are involved. If so, “Brooks Act” must be followed. If only state and local monies, then the “Mini Brooks Act” must be applied.

3. Establish Evaluation Criteria-establish evaluation criteria to be utilized in selection process to include categories judged and corresponding weights.

4. Solicit Statements of Qualifications/Request for Qualifications-solicit for interested parties using Request for Proposal (RFP) or Request for Qualifications (RFQ). Use agency standard process but ensure price is not a factor to be considered. When pricing is a requirement in the RFQ or RFP, any price proposal must be submitted under a separate sealed envelope and marked as such, and cannot be opened until after selection of the most qualified firm.

5. Develop Short List of Firms-based on a review by selection committee; develop a short list of firms to move on to the interview process. Items to consider are proposal responsiveness and categories set forth in RFP/RFQ.

6. Interview Short List Firms-selection committee interviews firms on short list.

Interviews are optional at the discretion of the project manager.

7. Rank Firms-based on the initial review of the proposals and information gathered in the interview process, the selection committee, utilizing the selection criteria set forth in RFP/RFQ, ranks the short listed firms from 1-X.

8. Define the Scope of Work/Contract Terms-the agency, if required, can utilize the top ranked firms in further defining the scope of work, level of effort and contract terms. If agreement cannot be reached on the scope of work, level of effort or contractual terms, the agency must cease negotiations with top ranked firm and begin negotiations with the next ranked firm on the list.

9. Negotiate Price-once the scope of work if fully defined and the contract terms are negotiated, the agency asks the firm for a price proposal. The price proposal, if submitted earlier in a sealed envelope, can be opened at this stage. Utilizing the price proposal, the agency and the firm negotiate a price for the scope of work. If an agreement cannot be reached, the agency must cease negotiations with the firm and move on to the next ranked firm on the list.
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10.Present recommendations to the City Council-once a fair and reasonable price has been reached, the agency must present the award for City Council approval if the contract amount exceeds $75,000.

51 28

CHAPTER 7:

PURCHASE ORDERS FOR MATERIALS, SUPPLIES, EQUIPMENT

AND OTHER COMMODITIES

Dollar Threshold Requirements Requisition
Approval/Authority
$1–$15,000
Requisition/PO and one (1) informal
quotation required for amount over
$1,000

*Purchases under $1,001 do not
require a Requisition/PO

Requisition Approval:

Department Head/Designee
approval required

Authority: Department
Head/Designee approval
required
$15,001–$75,000
Obtain three (3) informal quotations

Requisition/PO Required
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee approval
required up from $15,001 to
$75,000

Note: All vehicles require
City Council approval
regardless of dollar amount
per Section 5.7: Vehicle
Purchase.

$75,001 and
greater
Formal Bid (IFB) Process
Required

Requisition/PO Required
Requisition Approval:

Department Head/Designee
approval required

Authority: City Council
approval required for purchases
greater than $75,000

Note: All vehicles require
City Council approval
regardless of dollar amount
per Section 5.7: Vehicle
Purchase.
* A purchase order will be required once cumulative fiscal year spending with any vendor exceeds $1,000. 52 29

7.1 REQUIREMENTS FOR PURCHASES UP TO $15,000

Purchases that do not exceed the $15,000 purchasing threshold have no competitive bidding requirements. Staff must obtain approval from the Department Head or his/her designee before making the purchase. All purchases in the amount of $1,001 or greater require a requisition and purchase order, until cumulative fiscal year spending with the vendor has exceeded $1,000.

7.2 REQUIREMENTS FOR PURCHASES OF $15,001-$75,000

Purchases between the amounts of $15,001-$75,000 require three written informal quotations and City Manager/Designee approval. Staff must obtain approval from the Department Head or his/her designee prior to making the purchase. The requesting department shall obtain the quotes and attach them to the requisition. The Purchasing Division will place the order with the supplier providing the lowest price.

7.3 REQUIREMENTS FOR PURCHASES OF $75,001 and greater

Purchases of $75,001 and greater require a formal bid process and City Council approval.

7.4 ENVIRONMENTALLY FRIENDLY PURCHASING

Beginning January 1, 2022, SB 1383 requires jurisdictions (cities, counties, cities and counties, or special districts that provide solid waste collection services) to purchase recycled-content products, including paper products, compost and mulch. Specifically, per the regulations, "all paper purchases must contain 30 percent post-consumer recycled content when available at no greater cost."

This builds upon existing laws to purchase products that contain minimum recycled content, and adds requirements on product recyclability and recordkeeping.

Please reference Administrative Regulation 2.10 (Use and Procurement of Recycled Products) for more information.

7.5 VEHICLE PURCHASES

All vehicles purchases, regardless of cost, require City Council approval. A vehicle is defined as a wheeled vessel used to carry people, things, or materials and requires registration and a license plate from the Department of Motor Vehicles. Items such as pumps or pressure washers with built in wheels and hitches fall under "equipment" and require City Council approval only when the total purchase amount exceeds the City Manager's authority to approve contracts or purchases of services, supplies and equipment of up to $75,000 under Resolution 9212-14_______ and this Manual.

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53 30

7.6 CHANGE ORDERS TO PURCHASE ORDERS

Changes to purchase orders require the department to submit a change order request and attach all supporting documentation to process the change.

The Department Head or his/her designee may authorize a change (or cumulative changes) of 10% of the initial purchase order amount or a maximum cumulative increase of $7,500.

If the cumulative change to a purchase order will result in an amount that exceeds the 10% or the $7,500 maximum cumulative increase, City Manager or City Council approval will be required.

Minor variances in purchase order amounts can be processed by the Accounting Division (the lesser of $100 250 or 10% overpayment) without a Change Order. Minor changes to purchase orders include minor variations in price, fees or taxes.

54 31

CHAPTER 8:

PROFESSIONAL SERVICES/CONSULTANT AGREEMENTS
The purchasing process differs when services rather than supplies or equipment are required. Professional services are those services provided by an educated or licensed specialist or a consultant. Consultant services include services that are of an advisory nature, that provide a recommended course of action or personal expertise, and that have an end product, which is basically a transmittal of information.

Examples of purchases in this category are service contracts for technical support, staff assistance, environmental impact and feasibility studies, project design and administration, production and broadcasting, financial advisory and banking services, tax auditing, legal services, architectural and engineering, and educational or instructional services.
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Dollar
Threshold Requirements Requisition
Approval/Authority
$1–$15,000
Requisition/PO and one (1) written
proposal required for all services that
exceed $1,000
Contract and Insurance validation are not
required unless deemed necessary by Risk
Management
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee signature
required on all contracts
(when contract is required by
Risk Management)
$15,001–
$75,000
Requisition/PO, one (1) written proposal
and contract required

Mini Brooks Act may apply

Insurance required as per contract and
Risk Management Recommendations
Requisition Approval:

Department Head/Designee
approval required

Authority: City
Manager/Designee signature
required on all contracts
$75,001 and
greater
Formal Request for Proposal (RFP)
Process Required

Mini Brooks Act may apply

Requisition/PO, scope of work and
contract required
Insurance required as per contract and
Risk Management Recommendations
Requisition Approval:

Department Head/Designee
approval required

Authority: City Council
approval required for
contracts greater than
$75,000

8.1 PROFESSIONAL SERVICE/CONSULTANT AGREEMENTS UP TO $15,000

Professional/Consultant services that fall under the purchasing threshold ($1,001- $15,000) do not require contract and insurance validation, unless it is deemed necessary by Risk Management. A requisition or purchase order are not required for professional/consultant services in the amount under $1,001, until cumulative fiscal year spending with the vendor has exceeded $1,000.

8.2 PROFESSIONAL SERVICE/CONSULTANT AGREEMENTS OF $15,001- $75,000

Professional/Consultant services in the amount of $15,001-$75,000 are exempt from the competitive bidding process. A Professional Services Agreement and insurance coverage are required for all services in the amount of $15,001 or greater. If the total 56 33
value of the contract falls under $15,001, a professional service agreement and insurance are not required unless it is deemed necessary by Risk Management.

If the department elects to use a contract, which is drafted by the contractor, which is not approved by Risk Management or the City Attorney, then it must be reviewed by them prior to obtaining the required signatures per Section 3.4 of this purchasing manual.

Resolution number 9212-14________, by the Garden Grove City Council, authorizes the City Manager, or his designee, the authority to execute all Professional Services Agreements up to total sum of seventy fiveseventy-five thousand dollars ($75,000) per individual person or entity in any fiscal year.

To ensure enhancement of full and open competition, contracts are limited to $75,000 per fiscal year with any given contractor for the same type of services. If the City wishes to enter into multiple contracts with the same contractor in the same fiscal year, the City may do so if the contract is for a different type of service. Contracts with the same contractor, for the same type of service who have reached the $75,000 fiscal year limit require City Council approval. City staff are encouraged to collaborate with other City departments to enter into one contract for the same type of services.

8.3 REQUIREMENTS FOR PROFESSIONAL/CONSULTANT SERVICES
AGREEMENTS OF $15,001-$75,000

The following items must be submitted to the Purchasing Division:

A. Requisition for review and approval

B. Scope of Work from the Contractor- This should be on company letter head, attached to requisition and include the following:

1. Scope of the Services/Work signed by the Contractor

2. Cost of the Service/Work to be performed

3. Contact Information: Name, Title, Phone Number, Cell Phone Number, and email address (Insurance Review Request Form located on the Intranet under Risk Management)

Upon receipt of all of the items above, the Purchasing Division will draft the agreement and obtain the required signatures. The contract with all required signatures, insurance compliance report, and any other required documents, such as bonds, are then forwarded to City Clerk so the contract can be executed. The City Clerk’s office will forward a copy of the executed agreement to Purchasing, the Project Manager and Contractor. The purchase order will be issued once the executed agreement is received.

8.4 PROFESSIONAL/CONSULTANT SERVICE AGREEMENTS OF $75,001-and greater

All Professional/Consultant Services Agreements of $75,001 and greater require a formal RFP (Request for Proposal) process and City Council approval.

Formatted: Highlight
57 34
For multi-year agreements, City Council approval is required if the amount exceeds $75,000 for the total contract term. Optional terms are not included in the total contract calculation.

Example: If the term of an agreement is one year in the amount of $75,000, with optional renewal years of $75,000, City Council approval is not required. If the term of the contract is four years in the amount of $75,000 per year, resulting in a $300,000 contract, City Council approval is required.

Insurance is required for all services in an amount of $15,001 and greater or when if it can be determined that a significant amount of risk is involved with the work.

If the Department elects to use a vendor contract, which is not approved by Risk Management or the City Attorney, then the vendor contract must be reviewed and approved prior to obtaining the required signatures per Section 3.4 of this purchasing manual.

8.5 AMENDMENTS TO PROFESSIONAL/CONSULTANT SERVICES AGREEMENTS

A change or cumulative changes to a Professional Services/Consultant Agreement within a given fiscal year, up to the City Manager’s authority of $75,000, must be amended and approved at the discretion of the City Manager and when in the best interest of the City. Any changes that cause the contract price to exceed the City Manager’s authority must be amended and processed for City Council approval, and work created by such changes shall not commence until City Council approval is obtained.

A change or cumulative changes to a Professional Services/Consultant Agreement that has already been approved by the City Council, up to a maximum of 10% of the awarded contract amount, must be amended and approved by the City Manager.

Changes that exceed the 10% of the annual or fiscal year awarded contract amount must be amended and require City Council approval. For example, a five year contract with option years of $100,000 per annual/fiscal year requires City Council approval if the annual/fiscal year amount increase exceeds 10% ($10,000). Any work created by such change shall not commence until City Council approval is obtained.

The available balances on contracts must be used within the term specified. Once the contract expires, purchasing staff will verify with the department that there are no pending payments before closing out the purchase order. Once the purchase order is closed, any remaining balances will be automatically disencumbered, and cannot be carried over into future purchase orders.

8.6 ASSEMBLY BILL 339 (AB 339): CONTRACTING NOTIFICATIONS AND LABOR

RELATIONS

Effective January 1, 2026, Assembly Bill 339 (AB 339) adds Section 3504.1 to the Government Code, and requires local public agencies in California to provide 45 days’ notice to labor organizations representing public employees about contracts for services Formatted: Indent: Left: 0", Hanging: 0.3"
Formatted: Space After: 6 pt
58 35
that are the same as or similar to work performed by employees the labor organization represents — before a local public agency issues:
 A Request for Proposal (RFP)
 A Request for Quotes (RFQ), or
 A renewal of or extension to a contract that covers services within the scope of job classifications represented by a labor organization of the public agency.

The bill is intended to increase transparency related to the contracting of public services and adds an extra procedural step for public agencies to discharge prior to making a contracting decision.

Some contracts are exempt from this new notice requirement, including (1) public works contracts for construction, alteration, demolition, installation, repair, or maintenance as defined by Labor Code section 1720, and (2) contracts for services that are related to the planning, design, administration, oversight, review, or delivery of public works, residential, commercial, or industrial buildings, or other infrastructure projects, as defined by Government Code Sections 4525 and 4529.10. Such contracts are for specialized services provided by architects, engineers, land surveyors, construction project management firms, and other professionals, and typically cover individual construction or repair projects as opposed to ongoing work.

For all other RFPs, RFQs and contract renewals and extensions that implicate bargaining unit work, the notice to the affected union must include the following information:
 The anticipated duration of the contract,
 The scope of work under the contract,
 The anticipated cost of the contract,
 The draft solicitation (or, if not yet drafted, the information that would normally go into one), and
 The reason the agency believes the contract is necessary.

If an emergency or other exigent circumstance prevents the full notice period, the public agency contracting for such work is required to provide as much advance notice as is practicable under the circumstances.

Please reference Appendix A for the AB 339 Implementation Guidelines.

8.7 LOW DOLLAR/HIGH RISK SERVICES

Many of the professional service agreements arranged by staff amount to $1,000 or less, and are therefore not required to use a standard City contract. Many of these services have potentially high risk exposures that could otherwise be transferred by indemnification language in the standard City contract. Examples of these services include but are not limited to rock climbing walls, train rides, and reptile shows.

59 36
To ensure that the City is covered for these types of services, the requesting Department will be responsible for the following when there is a need for a low dollar/high risk service:

1. Consult with Risk Management for the insurance requirements

2. Collect the required insurance, create a requisition and attach the insurance to the requisition. The requisition would should be noted with the requisition code for a low dollar/high risk service so that purchasing staff is aware that it falls under this category

Once these requirements have been met, the purchase order will be issued to the contractor prior to the event. The purchase order will include the insurance requirements from Risk Management and the City’s indemnification language.

Please consult with Risk Management on all low dollar but high risk exposure services.

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CHAPTER 9:

PUBLIC WORKS/CONSTRUCTION AGREEMENTS

Note that the definition of “public project” for bidding purposes differs from the definition of “public project” for prevailing wages purposes. PCC 22002 defines a “public project” subject to public bidding as any of the following:

 Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility.

 Painting or repainting of any publicly owned, leased, or operated facility.

 “Public project” does not include maintenance work. “Maintenance work” includes (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.

 In certain circumstances, it may be difficult to determine whether a project should be considered a public works project or maintenance work. In such cases, the project manager may request a determination from the City Attorney. 61 38

Examples of projects in this category are contracts for new street construction, major street resurfacing, intersection improvements, construction or renovation of a public facility, parking lot construction, sidewalk construction, and traffic signal installation.

62 39
Dollar Threshold Requirements Requisition Approval/Authority $1 –$15,000
Provide a detailed scope of work to
potential contractors and obtain one
(1) written quotation which includes
prevailing wage rates

Prevailing Wage rates required for
work of $1,000 and greater

Requisition/PO and one (1) written
quotation required for amount over
$1,000

Contract and insurance validation is
not required for services between
$1,001-$15,000 unless deemed as
necessary by Risk Management
Valid Contractor License in good
standing required
Requisition Approval:

Department Head/Designee
approval required

Authority: City Manager/Designee
signature required on all contracts
when required by Risk Management

DIR: Notice of contract award
through DIR’s PWC-100 NOT

REQUIRED

$15,001-$75,000
Provide detailed scope of work to
potential contractors and obtain
three (3) written quotations which
include prevailing wage rates

Requisition/PO, scope of work and
contract required

Valid Contactor License required

Must provide proof of registration
(prime and all sub-contractors) with
the DIR unless under the small
project exemption

Labor/Material and Performance
Bonds required for all contracts
greater than $25,000

Insurance required as per contract
and Risk Mgmt. recommendations

Prevailing Wage rates required
Requisition Approval:

Department Head/Designee
approval required

Authority: City Manager/Designee
signature required on all contracts

DIR: Contracts AND Purchase
Orders for all public works projects
that fall outside of the small project
exemption must be reported to the
DIR by the Project Manager within
30 days of the award/approval
date, or before beginning any work.

See sections 9.8 and 9.9 for DIR
requirements
63 40
Dollar Threshold Requirements Requisition Approval/Authority $75,001-$220,000

Informal Bid Process Required
per GGMC § 2.52.030

Requisition/PO, detailed scope of
work/plans and contract required

Notice Inviting Informal Bids
Required

Valid Contractor License required

Must provide proof of registration
(prime and all sub-contractors) with
the DIR: Department of Industrial
Relations

Labor/Material and Performance
Bonds required

Insurance required as per contract
and Risk Management
recommendations

Prevailing Wage rates required

Requisition Approval:

Department Head/Designee
approval required

Authority: City Council approval
required

DIR: Contracts AND Purchase
Orders for all public works projects
that fall outside of the small project
exemption must be reported to the
DIR by the Project Manager within
30 days of the award/approval
date, or before beginning any work.

See sections 9.8 and 9.9 for DIR
requirements
$220,001 and
greater
Formal Bid Process Required per
PCC 22037

Requisition/PO, Scope of Work/Plans
and Contract required

Notice Inviting Bids and Newspaper
Publication Required

Valid Contractor License required

Must provide proof of registration
(prime and all sub-contractors) with
the DIR: Department of Industrial
Relations

Labor/Material and Performance
Bonds required

Insurance required as per contract
and Risk Management
recommendations

Prevailing Wage rates required
Requisition Approval:

Department Head/Designee
approval required

Authority: City Council approval
required

DIR: Contracts AND Purchase
Orders for all public works projects
that fall outside of the small project
exemption must be reported to the
DIR by the Project Manager within
30 days of the award/approval
date, or before beginning any work.

See sections 9.8 and 9.9 for DIR
requirements

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9.1 UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT

The City of Garden Grove has adopted the following bid procedures for public works construction contracts pursuant to the Uniform Public Construction Cost Accounting Act, Public Contract Code Section 22000 et seq. The Uniform Public Construction Cost Accounting Act is a program that was created in 1983 which allows local agencies to perform public project work up to $75,000 with its own work force if the agency elects to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual of the California Uniform Construction Cost Accounting Commission.

The Act was codified at Public Contracts Code Sections 22000 through 22045.

A governing body must elect by resolution to become subject to the Act and file a copy of the resolution with the State Controller's Office (PCC 22030). The City of Garden Grove, by Resolution No. 8677-05, elected to become subject to the Uniform Cost Accounting Procedures. Public contracts are subject to the Public Contract code Sections 22000-22045 and the “Public Works Construction Bid Procedure” of Chapter 2.52 of the City of Garden Grove Municipal Code.

In addition, the Act provides for alternative bidding procedures when an agency performs public project work by contract.

A. Public projects of $75,000 or less may be performed by its own forces, negotiated contract, or by purchase order (PCC 22032(a)).

B. Public projects of $220,000 or less may be processed via contract by the informal procedures set forth in the Act (PCC 22032(b)). These informal procedures are codified at Section 2.52.030 of the Garden Grove Municipal Code.

C. Public projects of more than $220,000 shall be processed via contract by formal bidding procedures (PCC 22032(c)). The formal bidding procedures are specified in PCC 22037.

9.2 PUBLIC WORKS PROJECTS up to $15,000
One (1) informal quote, containing prevailing wage, shall be obtained for Public Works projects in the amount of $1,001-$15,000. A requisition or purchase order is not required for public works projects in the amount of $1,000 or less, however prevailing wages apply to work of $1,000 and greater. Contract and insurance are not required for projects in the amount of $1,001-$15,000 unless deemed necessary by Risk Management. Risk Management must review the Scope of Work to make this determination before proceeding. Contract and insurance validation is required for contracts of $15,001 and greater. Notice of contract award through DIR’s PWC-100 is not required only when the contract scope falls under the small project exemption.

9.3 PUBLIC WORKS PROJECTS of $15,001-$75,000

Public Works projects in the amount of $75,000 or less may be performed by the employees of the City of Garden Grove in accordance with section 22032 of the Public Contract Code.
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At least three (3) quotes/estimates, containing prevailing wage, shall be obtained for Public Works projects that range from $15,001 to $75,000. The contract will be awarded to the lowest bidder. A contract, insurance, and bonds for contracts that exceed $25,000, and City Manager approval are required. In the event that the lowest bidder is unable to meet the City’s requirements, a fourth informal bid may be required to meet the three informal bid requirement. Contracts and purchase orders for all public works projects that fall outside of the small project exemption must be reported to the DIR by the Project Manager within 30 days of the award/approval date, or before beginning any work. PWC-100 form is required.

9.4 PUBLIC WORKS PROJECTS of $75,001-$220,000 (INFORMAL BID

PROCEDURE)
Public Works projects in an amount of $75,001 to $220,000 must follow the requirements of the Public Contract Code Section 22034 and Section 2.52.030 of the Garden Grove Municipal Code. The Purchasing division shall complete an informal bid procedure and City Council approval is required.

Section 22033 of the Public Contract Code states, “It shall be unlawful to split or separate into smaller work orders or projects any project for the purpose of evading the provisions of this article requiring work to be done by contract after competitive bidding.”

The Purchasing Division shall maintain a list of qualified contractors, identified according to categories of work in accordance with Section 22034 (a) of the Public Contract Code. All contractors in the category of qualified contractors list shall be mailed a notice inviting bids.

The notice shall:

A. Describe the project in general terms.

B. Describe how to obtain more detailed information about the project.

C. State the time and place for the submission of bids.

Pursuant to California Public Contracting Code section 22034(a)(1), notice inviting bids shall be mailed to contractors and construction trade journals no less than 10 days prior to bid opening.

All contracts that do not fall under the Small Project Exemption must be registered with the Department of Industrial Relations. PWC-100 form is required.

9.5 PUBLIC WORKS/CONSTRUCTION PROJECTS of $200,001 and greater (FORMAL BID PROCEDURE)
Public Works projects in the amount of $220,001 and greater are subject to a formal bidding process as required by sections 22032(c) and 22037 of the Public Contract Code and Section 2.52.010 of the Garden Grove Municipal Code. Plans and Specifications are required. Award shall be made by the City Council. 66 43
Notifications of the formal bid, in accordance with Section 22037 of the Public Contract Code, shall be published twice once in a local newspaper at least 14 calendar days before the opening of the bids.

The formal bid notification shall include:

A. State the time and place for receiving and opening of sealed bids.

B. Distinctly describe the project (plans, specifications, etc.).

The notice inviting formal bids should be mailed to construction trade journals at least 10 15 days prior to the bid opening. When time permits, it is recommended that 30 days prior notice inviting formal bids be mailed to construction trade journals in order to foster more competition.

Notifications to trade journals shall include:

A. Project title and contract number
B. Date, time, and place for receiving bids
C. City’s address and contact information
D. Brief description of work to be done
E. Bond requirements
F. Where plans may be obtained
G. Deposit information if one is required and whether or not the deposit is refundable
In accordance with Section 22038(c) of the Public Contract Code, if no bids are received through the formal or informal procedure, the project may be performed by the employees of the City or by negotiated contract.

In accordance with Section 22038(a) of the Public Contract Code, the City may reject all bids presented if the City, prior to rejecting all bids and declaring that the project can be more economically performed by employees of the agency, furnishes a written notice to the apparent low bidder. If bids are to be rejected, notification to the bidders informing them of the agency’s intention to reject the bids shall be mailed at least two business days prior to the hearing at which the agency intends to reject the bid.

If after the first invitation of bids where all bids were rejected, after reevaluating its cost estimates or scope of the project, the City shall have the option of either of the following:

A. Abandon the project or re-advertise
B. Declare that the project can be performed by employees. This requires a Resolution approved by four-fifths of the City Council.

In accordance with Section 22038(b) of the Public Contract Code, if the contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the City may accept the one of its choice.

All contracts that do not fall under the Small Project Exemption must be registered with the Department of Industrial Relations. PWC-100 form is required.

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9.6 CHANGE ORDERS
Prior to submitting a Change Order request, the administering department is responsible for ensuring that adequate budget appropriations are available to accommodate the additional expenditure.

If sufficient funds are not available to accommodate the additional expenditure, the Change Order request will be rejected. The requisitioning department is responsible for requesting budget transfers if applicable and/or seeking approval for additional appropriations from City Council when necessary.

The City Manager or his/her designee may authorize a change or cumulative changes to a Public Works contract within the approved scope of work, as long as the resultant cost does not exceed 10% of the awarded contract amount. Approved changes to the project include any emergency work or additional work that is directly related to the completion of the original project. Public Works contracts, such as those for on-call work which include options to renew annually, require an amendment.

A change or cumulative changes to a Public Works contract greater than 10% of the awarded contract amount must be approved by the City Council, provided that the progress of a public project shall not be interrupted if it would create an emergency situation.

The available balances on contracts must be used within the term specified. Once the contract expires, purchasing staff will verify with the department that there are no pending payments before closing out the purchase order. Once the purchase order is closed, any remaining balances will be automatically disencumbered, and cannot be carried over into future purchase orders. Capital projects may be an exception and will be reviewed on a case by case basis.

9.7 PREVAILING WAGE RATES AND PUBLIC WORKS PROJECTS

Labor Code 1771 requires the payment of prevailing wages for all public works projects greater than $1,000. The definition of “public works” under the Labor Code differs from the definition “public works” under the bidding statutes. For purposes of the payment of prevailing wages under Labor Code 1771 and 1720, “public works projects” include construction, re-construction, alteration, renovation, erection, demolition, improvements, installation, or repair work done under contract and paid for in whole or in part out of public funds, to a publicly owned, leased, or operated facility. "Construction" includes work performed during the design and pre-construction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the post-construction phases of construction, including, but not limited to, all cleanup work at the jobsite. "Installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

Under Labor Code 1771, prevailing wages applies to contracts let for maintenance work.

The Prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within locality and in the nearest labor market area. California prevailing wage laws ensure 68 45
that the ability to get a public works contract is not based on paying lower wage rates than a competitor.

In accordance with Labor Code Sections 1770-1773, prevailing wages must be paid to all workers on a “public works” project when the project is over $1,000 or when government monies are used as the source of funding.

A. When submitting quotes or proposals for public projects, the contractor must note that the quotation is based on prevailing wages.

B. Certified payroll will be required to confirm that prevailing wages are being paid by City contractors.

C. For current prevailing wage rates and information, please refer to the DIR’s website: http://www.dir.ca.gov/DLSR/PWD/

9.8 REGISTRATION OF PROJECTS WITH THE CALIFORNIA DEPARTMENT OF

INDUSTRIAL RELATIONS (DIR)

The public works reforms brought about by Senate Bill 854 (Stat. 2014, chapter 28) and Senate Bill 96 (Stat. 2017, chapter 28), made several changes to the laws governing how the Department of Industrial Relations (DIR) monitors compliance with prevailing wage requirements on public works projects.

For up to date DIR vendor and City reporting and registration requirements, please refer to the DIR’s website: https://www.dir.ca.gov/public-works/contractors.html

Each department is responsible for determining if a project is subject to the DIR registration and reporting requirements. As of December 2018, the following key elements apply:
 Public Works projects include construction, alteration, demolition, installation, or repair. Public works projects also include routine, recurring, and usual maintenance work on anything affixed to City real property  Paid with public funds
 Over $1,000-Prevailing Wages apply
 Small project exemptions up to $25,000 for construction and up to $15,000 for maintenance. These small projects are exempt from registration by the contractor, subcontractors, and the City. Prevailing wages are still required for any public works project over $1,000. Small project exemption is applied based on the amount of the entire project, not a contractor’s subcontracted amount of the project
 Contractors are still required to maintain certified payroll records on a continuous basis, and provide those records to the Labor Commissioner’s Office upon request
 Contractors and subcontractors are required to be registered before submitting bids or proposals and remain registered through project completion.  Contract registration within 30 days of contract award, or prior to the first work day for projects lasting less than 30 days
 Penalties for City noncompliance include fines and/or loss of state funding for one year
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9.9 DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) PWC-100 SYSTEM

Per California Labor Code 1773.3, awarding agencies are required to submit notice of contract award through DIR’s PWC-100 system on projects that fall outside of the Small Project Exemption, within 30 days of the award, but in no event later than the first day in which a contractor has workers employed upon the public work. The small project exemption applies for all public works projects that do not exceed $25,000 for new construction, alteration, installation, demolition or repair and $15,000 for maintenance.

All contracts that do not fall under the Small Project Exemption must be registered with the Department of Industrial Relations. The PWC 100 form online application can be found online on the DIR service portal. Public Works Projects Registration (PWC 100) must be filed within 30 days of the award, or before beginning any work, whichever is first. The PWC 100 form must be completed by the City’s Project Manager.

The City is still responsible for administering its project and ensuring that public funds are used appropriately. As partners with DIR’s Public Works Enforcement team, the City must also ensure that all public works contractors are in compliance with all labor laws.

A. Changes to the Labor law are listed below:

1. Duty to notify the DIR when awarding a contract for a public works project, using the online PWC-100 form.

2. Elimination of the obligation to pay the DIR for compliance monitoring on state bond-funded projects and other projects that required use of the DIR's Compliance Monitoring Unit (CMU).

3. All contractors and subcontractors who bid or work on a public works project must register with, and pay a fee to the DIR.

4. The City may not accept a bid or enter into a contract for public work with an unregistered contractor, except for work that qualifies under the small project exemption.

B. Notice Requirements:

Effective January 1, 2015: The call for bids and contract documents must include the following information:

1. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the DIR pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a), and the small project exemption under Labor Code 1725.5(f)].

2. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the DIR pursuant to Labor Code section 1725.5, unless the work comes under the small project exemption under Labor Code 1725.5(f).
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3. The contract must contain the statement that, “This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.”
C. Furnishing of Electronic Certified Payroll Records to Labor Commissioner:

All contractors and subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement).

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CHAPTER 10:

FEDERAL PURCHASING REQUIREMENTS

Dollar Threshold Requirements Requisition Approval/Authority Micro-purchase:
$1 – $15,000
(NOTE: The Davis-
Bacon Act generally
applies to contracts in
excess of $2,000 and
includes construction,
alteration or repair of
public buildings and
public works)
No bid or quote required if
price is considered to be
reasonable. Reasonableness
could be determined by
comparing the price to past
purchases or other published
prices and/or requesting
prices from more than one
vendor.

Distributed equitably among a
range of qualified vendors
when practical
Requisition/PO required for all
purchases/contracts over
$1,000
Contract and Insurance
Validation is not required for
services between $1,001-
$15,000 unless deemed as
necessary by Risk
Management

Prevailing Wage rates required
for work greater than $1,000
Requisition Approval/Authority:

Department Head/Designee approval
required

City Manager/Designee signature
required on all contracts

Small
purchase/Simplified
acquisition
procedure:
$15,001 – $350,000

Price or rate quotes must be
obtained from adequate
number of sources (at least
two)
Can be informal, e.g., phone
call or web search
All quotes, including phone
calls, web searches, etc., must
be documented and kept on
file
Price does not need to be
deciding factor, but all quotes
need to be kept in
procurement records
Requisition Approval: Department
Head/Designee approval required

Authority:

Material/Supplies/Commodities
City Manager approval required for
material, supplies and commodity
purchases up to $75,000

City Council approval required for
material ,supplies and commodity
purchases greater than $75,000

Contracts
City Manager/Designee approval
required on all contracts up to
75,000
72 49
Dollar Threshold Requirements Requisition Approval/Authority

Small
purchase/Simplified
acquisition
procedure:
$15,001 – $350,000
(Continued)

Requisition/PO required for all
purchases/contracts over
$1,000

Contract and Insurance
Validation is required for
services $15,001 and greater

Prevailing Wage rates required
for work greater than $1,000

City Council approval required for
contracts greater than $75,000

Sealed Bid-Public
Works/Construction
Related Projects:
$350,001 and greater

Used when selection of
successful bidder can be made
principally on the basis of
price
Bids must be solicited from
two (2) or more qualified
bidders, providing sufficient
response time
Local governments must
publicly advertise bids
Invitation for bids must define
the items or services in order
for bidders to properly
respond
All bids will be opened at time
and place prescribed in
invitation. Local governments
must open bids publicly.

Firm fixed price contract must
be made in writing to the
lowest responsive and
responsible bidder
Any or all bids may be
rejected if there is a sound
documented reason.

Requisition Approval: Department
Head/Designee approval required

Authority: City Council approval
required

Contracts
City Manager/Designee signature
required on all contracts

Formatted: Font: Bold
73 50
Dollar Threshold Requirements Requisition Approval/Authority

Sealed Bid-Public
Works/Construction
Related Projects:
$350,001 and greater
(Continued)
Requisition/PO, scope of work
and contract required

Valid Contractor License
required

Must provide proof of
registration (prime and all
sub-contractors) with the DIR:

Department of Industrial
Relations unless under the
small project exemption

Labor/Material and
Performance Bonds required
for contracts greater than
$25,000

Insurance required as per
contract and Risk
Management
recommendations

Prevailing Wage rates required

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Dollar Threshold Requirements Requisition Approval/Authority Competitive Proposal:

Professional/
Consultant Services:
$350,001 and greater
Must be publicized and
identify all evaluation factors
and their relative importance
Must be solicited from an
adequate number of qualified
sources
Must have a written method
for conducting technical
evaluations of the proposals
and selecting recipients
Contracts must be awarded to
the responsible firm whose
proposal is most
advantageous to the program,
with price and other factors
considered

Brooks Act may apply

Requisition/PO, scope of work
and contract required

Insurance required as per
contract and Risk
Management
Recommendations
Requisition Approval: Department
Head/Designee approval required

Authority: City Council approval
required

Contracts
City Manager/Designee signature
required on all contracts

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Dollar Threshold Requirements Requisition Approval/Authority Noncompetitive
proposal (Sole
Source):
$15,001 and greater
May be used only when the
item is available only from a
single source, the public
exigency or emergency will
not permit a delay resulting
from competitive solicitation,
federal awarding agency or
pass-through entity expressly
authorizes its use in response
to a written request, or after
solicitation of a number of
sources competition is
determined inadequate
Justification of the use of
noncompetitive proposal must
be documented
Any research on availability
from multiple sources must be
documented
Documentation of
authorization must be retained
Any initial solicitations from
multiple sources which are
concluded to be inadequate,
and such reasoning, must be
documented

Requisition/PO, scope of work
and contract required

Insurance required for
contracts as per contract and
Risk Management
Recommendations

Requisition Approval: Department
Head/Designee approval required

Authority:

Sole Source Memo must be
approved in advance by the Finance
Director/ Designee

Material/Supplies/Commodities
City Manager approval required for
material and commodity purchases
up to $75,000

City Council approval required for
material/commodities purchases
greater than $75,000

Contracts
City Manager/Designee signature
required on all contracts up to
$75,000

City Council approval required for
contracts greater than $75,000

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10.1 BACKGROUND

A. This chapter summarizes the Federal Purchasing requirements published by the Office of Management and Budget (OMB) on December 26, 2013. The OMB issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Final Rule (aka Uniform Guidance) which applies to all non-federal entities receiving Federal awards, and to all new federal awards and existing awards that receive additional funding (or funding increments) after December 12, 2014.

B. The Uniform Guidance requirements for sub-award and sub-recipient is based on the pass-through agency. If the pass-thru agency is subject to the Uniform Guidance (i.e. if the source of funds are federal and the pass-through agency is subject to Uniform Guidance), then the sub-award or sub-recipient is also subject to the Uniform Guidance.

C. The requirement for a sub-award, no matter when the sub-award was made, flows from the requirements of the original federal award from the federal awarding agency.

10.2. MICRO PURCHASES

A. The maximum aggregated amount for micro purchases is $15,000. The maximum amount for construction projects is $2,000 and are subject to the Davis-Bacon Act (Prevailing Wages).

B. There are no requirements for multiple quotations, and to the extent practical the City must distribute micro-purchases equitably among qualified suppliers.

10.3. SMALL PURCHASES

A. Small purchases utilize simple and informal procurement procedures. The acquisition threshold is currently $15,001-$350,000. The Uniform Guidance states quotes for small purchases must be obtained from an “adequate” number of qualified sources. There is no specific number of sources required by the Uniform Guidance, thus one quote can be sufficient as long as there is proper documentation.

B. Quotes can be obtained from suppliers or from public websites (i.e., City may use internet searches as documentation).

10.4. SEALED BIDS

A. Sealed bids are required for contracts in excess of $350,000 and is the preferred method for construction contracts. Sealed bids are also appropriate for fixed price contracts where bidders are provided complete and adequate specifications.

B. Additionally, sealed bids must come from two or more qualified bidders, must be publicallypublicly advertised and solicited from an adequate number of suppliers.

C. The contract is awarded to the lowest responsive and responsible bidder.

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10.5. COMPETITIVE PROPOSALS

A. Competitive proposals are required for contracts in excess of $350,000 and is the preferred method for architectural, engineering and professional services. Request for Proposals must be publicized and proposals solicited from an adequate number of qualified sources.

B. Competitive proposals are awarded to the most advantageous bid which considers both price and other factors. The City does not have to select the lowest bid.

C. The Brooks Act may apply (qualifications basedqualifications-based procurement).

10.6. SOLE SOURCE

A. Sole source must meet at least one of the following criteria:

1. Goods or services are only available from a single source

2. There is a public emergency

3. After soliciting a number of sources, the competition is deemed inadequate

4. Written request has been made and approved by the Federal Agency

B. The City must have written pre-approval from the federal awarding agency.

Additionally, the City must have proper documentation as to why a sole source vendor was required in these circumstances. The sole source must be properly documented and the City’s Project Manager must maintain the documentation.

10.7. DEBARMENT AND SUSPENSION

A. The City is prohibited from contracting with or making sub awards under covered transactions to parties that are suspended, debarred or whose principals are suspended or debarred by the federal government. The General Service Administration’s (GSA) lists the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority on the System for Award Management (SAM).

B. Project Managers are required to complete and document a Debarment and Suspension check on https://www.sam.gov/SAM/ before any purchase is made.

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CHAPTER 11

PURCHASING DURING PROCLAIMED EMERGENCY OR DISASTER

11. 1 PURPOSE AND DEFINITION
A. Purpose. This Policy modifies the City’s normal purchasing practices to assure that, in exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to life, public health, or safety or an immediate threat of significant damage to improved public and private property while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that City procurements comply with federal regulations applicable to FEMA disaster grant reimbursement. In the event of an emergency declaration it is important to keep accurate records for FEMA reimbursement and this shall be the responsibility of the departments.

B. Definitions. For purposes of this Policy, (a) a proclaimed disaster or emergency exists if (i) the Governor has declared a state of emergency for an area which includes the geographic territory of the City; or (ii) the City Manager has declared an emergency in the City. (b) “Emergencies” are situations in which (i) a disaster or emergency has been proclaimed, and (ii) the public exigency for goods and services required to address an immediate threat to health, safety, or improved property will not permit competitive solicitation.

11.2 DELEGATION OF PURCHASING AUTHORITY IN EMERGENCIES

A. If the City Manager determines that goods and services in excess of his/her purchasing authority must be procured before the City Council is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in subparagraphs (1) and (2), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate threat to health, safety or improved property.

(1) Limits of Single Purchase Authority. The City Manager, shall have the authority to make individual purchases up to $250,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $250,000 up to a maximum of $500,000 when countersigned by the Finance Director or in the Finance Director’s absence countersigned by the Police Chief. Emergency purchases in excess of $500,000 will require the Mayor’s signature, or in the Mayor’s absence, two council members.

(2) Limits of Aggregate Purchase Authority. The City Manager shall have the authority to make aggregate purchases up to $500,000 on his or her signature alone.

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B. Sub-delegation to EOC Director. The EOC Director shall be a designee of the City Manager at any time that the City Manager is not available to approve emergency purchases.

C. Sub-delegation of Purchasing Authority to Department Heads. If neither the City Manager nor the EOC Director is available, the police department watch commander, division chief, and/or public works director shall have authority to rent or purchase from the nearest available source any equipment, supplies, services, or other items necessary for his or her department to respond to an immediate threat to health, safety, or improved property, up to a maximum of $150,000.

11.3 REPORTING REQUIREMENTS

A. As soon as possible after purchases are made under Section 11.2, the City Manager, EOC Director, or department head shall submit to the Purchasing Division Manager a requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated.

B. The City Manager will report to the City Council within 48 hours any purchase made under Section 11.2 exceeding $75,000, individually or in the aggregate.

C. Department Heads will inform the City Manager of any individual purchase with a contract amount greater than $75,000, and also whenever the aggregate of purchases are greater than $75,000.

11.4 PROCUREMENT PROCEDURES IN EMERGENCIES

A. The regulations in Title 2 of the Code of Federal Regulations, Part 200, as it may be amended from time to time, are incorporated herein by reference.

B. Upon receipt of requisitions under Section 11.2, the Purchasing Agent shall prepare purchase orders for the emergency equipment, supplies, services or other items in accordance with this section. All purchases or rentals made during a proclaimed emergency or disaster shall require separate invoicing from routine (non-emergency related) purchases. All invoices shall state the goods, services or equipment provided and shall specify where the goods or services were delivered.

C. Noncompetitive Procurements during Emergencies.

(1) Noncompetitive procurements may be used when one or more of the following circumstances exist:

a. The Emergency circumstances will not permit a delay resulting from competitive procurement;

b. The item is available only from a single source;

c. After solicitation of a number of sources, competition is determined inadequate; or
80 57
d. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City, County, or State.

(2) The Department requesting the emergency purchase shall document the justification for noncompetitive procurement and provide a copy to the City Manager.

(3) When a noncompetitive procurement is used due to an emergency, the procurement shall be limited to that portion of the work that must be performed immediately. Procurement for any additional work shall be conducted through competitive procurement procedures.

(4) Noncompetitive procurement shall be necessary for one of the following reasons: placement of emergency protective measures; procurement of a scarce commodities, goods, or services; acquisition or rental of emergency equipment, emergency consulting services, emergency road clearance or other emergency requirements.

D. Alternate Competitive Procurements During Emergencies.

(1) Competitive procurements for Purchases below the Federal Simplified Acquisition Threshold (currently $350,000) shall not be required to be formally bid.

(2) Competitive procurements for Purchases equal to or exceeding the Federal Simplified Acquisition Threshold shall be conducted in accordance with the following alternate purchasing procedures:

(a) The City's normal requirements for sealed bids shall not apply to acquisitions under Section 11.2. However, the Purchasing Agent shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in lieu of written and/or sealed bids, in an effort to obtain multiple competitive proposals when and if time allows in light of the emergency.

(b) Locations of Postings for Requests for Proposals or Solicitation of Bids. The Purchasing Agent may waive normal requirements for public posting of requests for proposals or solicitation of bids. Notices soliciting bids or requests for proposals shall be posted at the Emergency Operations Center or Alternate Emergency Operations Center, if the Primary Emergency Operations Center is not being used.

(c) Length of Time for Posting Requests for Proposals or Solicitation of Bids.

The Purchasing Agent may shorten the normal bid period and response period to expedite the award of contracts for emergency equipment, goods, or services, but such period shall be no less than 24 hours. The Purchasing Agent should seek to assure that the shortened bid period allows multiple suppliers or contractors to submit responses.
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(d) Number of Bids Required. A minimum of three (3) bids or proposals from qualified sources shall be obtained. Bids and proposals that are non- responsive shall count towards the minimum numbers of bids required.

11.5 RATIFICATION, NOTIFICATION AND POST AWARD PROCEDURES

A. Ratification and Posting of Contract Awards. All contracts awarded that exceed $75,000 shall be presented to the City Council for ratification at its next available meeting and thereafter shall be publicly posted within 60 days of the award.

B. Authority to Cancel Emergency Procurements. The City Manager or designee shall have the authority to rescind a purchase or contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to immediately perform the terms of the contract.

C. Auditing of Invoices for Debris Clearance Prior to Payment. All invoices for debris clearance and removal shall be audited by the City prior to payment to the vendor.

Vendors shall be notified of this requirement prior to the awarding of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.

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CHAPTER 12:

INSURANCE AND CONTRACTUAL RISK TRANSFER

12.1 INCLUSION IN BID MATERIALS

Risk Management shall be consulted to determine appropriate insurance requirements before formal bids are advertised to ensure that those requirements are included in the solicitation documents. It is important that contractors are made aware of the insurance requirements in advance to ensure they have considered any additional costs to obtain the proper coverage before they submit a bid or sign a contract, and to avoid unnecessary delays to City projects.

The Contractor Statement in which the contractor acknowledges they have or can obtain the required insurance should also be included in all formal bid documents. This document can be found under Risk Management on the Intranet for your reference.

12.2 DETERMINATION OF INSURANCE REQUIREMENTS

The process for establishing a contract’s insurance requirements is as follows:

1. PROVIDE RISK MANAGEMENT WITH SCOPE OF WORK
A clear scope of work that sufficiently describes the work to be performed and which parties are responsible for certain duties is necessary to determine the appropriate insurance requirements.

2. ANALYZE RISKS AND RELATIONSHIPS
A critical analysis of potential risk exposures will be undertaken by Risk Management and the project manager on a case-by-case basis to determine the appropriate insurance requirements. Keep in mind, the amount of the contract is not necessarily commensurate with the risk exposure. Even the smallest job has the potential for large losses. Considerations in determining amounts of insurance include:

 The extent to which the activity presents a risk of personal injury, bodily injury or death.
 The extent to which the activity presents a risk of property damage.  The frequency of claims, occurrences, or incidents associated with the activity.
 The ability of contractor to obtain the desired insurance coverages and limits.

3. INSURANCE LANGUAGE PROVIDED BY RISK MANAGEMENT
After the appropriate insurance requirements are determined, Risk Management will provide the project manager with the proper insurance language and coverage amounts that should be included in the bid documents and contracts. 83 60

12.3 CONTRACT INDEMNIFICATION AGREEMENT AND INSURANCE

The City’s standard contracts contain an Indemnity/Hold Harmless agreement that includes an obligation for the contractor to defend the City, its officers, officials, agents, employees and volunteers, and is meant to be interpreted as broadly as possible in the City’s favor. Hold Harmless agreements are language that shifts responsibility for loss or damage arising from the activities of a contract from one party (the City) to the other (the contractor). The contractor acts as the City’s representative while performing services for the City, provided they are within the scope of their agreement. Any damages caused to a third party on the City’s behalf can result in a claim against the City. “Hold Harmless” language allows the City to tender the claim to the contractor for defense and indemnity by the contractor or their insurer.

Because the contract’s indemnification language is vital to the transfer or recovery of losses, project managers should:

A. USE THE CITY’S STANDARD CONTRACT
The City’s standard contracts have been drafted and reviewed by the City Attorney. No changes should be made to indemnification section of the contract without prior approval by the City Attorney.

B. GET CITY ATTORNEY APPROVAL FOR ALL OTHER CONTRACTS OR CHANGES At times you may have to accept a contractor’s form or negotiate the terms of the City’s indemnity language with a prospective contractor. If you do have to make changes or accept another form, always have the City Attorney review and approve before you send out for signature.

12.4 MINIMUM INSURANCE SPECIFICATIONS

The following are the City’s minimum insurance specifications as required in the City’s standard contracts.

COMMENCEMENT OF WORK
Contractor shall not commence work under this Agreement until all certificates and endorsements have been received and approved by the City. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the City of any material change, cancellation, or termination at least thirty (30) days in advance and provide a Waiver of Subrogation in favor of the City.

WORKERS COMPENSATION INSURANCE
For the duration of this Agreement, Contractor and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by law, if applicable.

Insurers shall waive subrogation against the City of Garden Grove its officers, officials, agents, employees and volunteers.

COMMERCIAL GENERAL LIABILITY INSURANCE
Commercial General Liability in an amount not less than $1,000,000 per occurrence (claims made and modified occurrence policies are not acceptable). Insurance 84 61
companies must be acceptable to the City and have an AM Best’s Rating of A-, Class VII or better, as approved by the City.

COMMERCIAL AUTOMOBILE LIABILITY COVERAGE
Automobile liability, for any/all autos, in an amount not less than $1,000,000 combined single limit; (claims made and modified occurrence policies are not acceptable); Insurance companies must be acceptable to City and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the City.

PROFESSIONAL LIABILITY/ERRORS AND OMISSIONS (If professional services are provided)
Professional liability (Errors and Omissions) Professional liability in an amount not less than $1,000,000. Insurance companies must be admitted and licensed In California and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the City.

If the policy is written on a “claims made” basis, the policy shall be continued in full force and effect at all times during the term of the agreement, and for a period of three (3) years from the date of the completion of services provided. In the event of termination, cancellation, or material change in the policy, professional/consultant shall obtain continuing insurance coverage for the prior acts or omissions of professional/consultant during the course of performing services under the term of the agreement. The coverage shall be evidenced either by a new policy evidencing no gap in coverage, or by obtaining separate extended “tail” coverage with the present or new carrier.

ADDITIONAL INSURED ENDORSEMENT
An Additional Insured Endorsement, ongoing and completed operations, for the Commercial General Liability policy, shall designate City, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the Contractor. Contractor shall provide to City proof of insurance and endorsement forms that conform to city’s requirements, as approved by the City.

PRIMARY ENDORSEMENT OR POLICY LANGUAGE
For any claims related to this Agreement, Contractor’s insurance coverage shall be primary insurance as respects to City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents, or volunteers shall by excess of the Contractor’s insurance and shall not contribute with it.

12.5 HIGH-RISK CONTRACTS

Higher-risk services may require special types of insurance coverages and/or higher commercial general liability per occurrence limits.

Examples of high-risk services include but are not limited to the following:

 Asbestos Abatement Contractors
 Ambulance Services
 Construction Projects
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 Elevator Maintenance and Repair
 Festivals and City Events
 Jail Management Services
 Medical Services
 Refuse Transportation and Disposal
 Towing Services
 Transportation Services
Insurance limits may be reached by combining a commercial general liability policy limit with an umbrella/excess policy limit. For example, a contractor may have a general liability policy with a $1,000,000 limit and a $1,000,000 umbrella/excess policy. By combining both coverage amounts, the total meets the $2,000,000 general liability coverage required by the City.

12.6 ADDITIONAL TYPES OF INSURANCE COVERAGES

Different types of insurance or higher limits may be necessary based on the Scope of Work. The following are examples of additional types of coverage that may be required, but are not limited to the following:

 Tow truck drivers will be required to provide proof of cargo, on hook, and garage liability coverage.
 Moving companies will be required to provide cargo coverage.  Contractors handling hazardous material will be required to provide environmental/pollution or asbestos liability insurance.  Transporters of hazardous wastes will be required to provide an automobile liability policy to be endorsed to delete the Pollution and/or the Asbestos exclusion and add the Motor Carrier Act endorsement (MCS-90), TL 1005, TL 1007 and/or other endorsements required by federal or state authorities.  Construction contracts may require course of construction insurance (Builders All Risk) and employer’s liability insurance.
 Contractors who work with children or the elderly will be required to have legal liability coverage for sexual abuse and molestation.
 Financial institutions or other contractors handling financial transactions or that have access to other City assets will be required to provide crime coverage.  Service providers that keep City or public data will be required to provide cyber liability insurance.

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12.7 SURETY BONDS

Per Civil Code section 9550, a public works contract in excess of $25,000 requires the contractor to provide a material and labor/payment bond prior to starting the work.

A. PERFORMANCE BONDS
(100% of the total bid amount) Guarantees the City that if the contractor fails to complete the work as quoted, the surety will assume the contractor’s financial responsibility to have the work completed.

B. MATERIAL AND LABOR BONDS
(100% of the total bid amount) Guarantees the City that laborers, subcontractors and suppliers will be paid the monies they are due from the contractor. Also called payment bonds.

All bonds submitted require that the Surety Company have an AM Best rating of A- VII or better and must be on the City approved bond forms. Proper language for bond rating requirements should be stated within the contract and all bid documents so that potential contractors are properly notified of these requirements. The contract shall not become effective until such bonds are submitted and in compliance with the City’s requirements.

Bonds should not be requested from the Contractor until final approval of the project has been granted by the City Manager or City Council, based on level of authority.

12.8 VERIFICATION OF INSURANCE COVERAGE

Risk Management shall verify that the evidence of insurance provided by the contractor meets the requirements as outlined in the contract and shall provide project manager with documentation of the verification.

The project manager is responsible for ensuring that contractors’ insurance coverage is kept current and maintained for the full term of the contract. Current and valid insurance coverage will be required to amend existing contracts and insurance compliance must be verified by Risk Management prior to the City’s execution of the amendment.

The City reserves the right to suspend and cease all operations during such a period of time the required insurance coverage is not in compliance.

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12.9 CITY OF GARDEN GROVE INSURANCE POLICIES/COVERAGE

The City has a Self-Insurance Retention (deductible) of $2,000,000 per occurrence for General Liability and $1,000,000 for Worker’s Compensation. The City also carries property insurance for all its buildings, vehicles and equipment. Any requests for proof of insurance or letters of self-insurance for the City of Garden Grove should be directed to the Risk Management Division.

Except as required by contract, the City does not cover vendors/contractors under its insurance policies.

12.10 DEFINITIONS

Additional Insured for Ongoing Operations: Affords the City direct coverage under the contractor's policy, including defense, should the City be sued for injuries or damages occur while the contractor is on the job.

Additional Insured for Products-Completed Operations Hazard: Affords the City direct coverage under the contractor's policy, including defense, should the City be sued for damages that arise from defects in the contractor’s product or work.

AM Best: Agency that provides credit rating and financial size categories of insurance companies.

Annual Aggregate Limit: The maximum amount the insurance will pay for all covered claims combined in a single policy year.

Certificate of Insurance: Proof of insurance coverage, usually provided by the contractor or contractor’s insurance agent or broker, listing types of coverage, insurers, insurance agency, insured, policy numbers, effective dates, limits, certificate holder, cancellation procedure and special provisions.

Claims Made Coverage: Will only respond to a claim that is presented while the policy is in force or during an extended reporting provision.

Per Occurrence Limit: The maximum amount the insurance will pay for one or more covered claims resulting from each accident or out of any one event.

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CHAPTER 13:

CENTRAL STORES WAREHOUSE

13.1 SERVICES PROVIDED

The Central Stores Warehouse operates under the Purchasing Division and provides the following services:

A. Receiving and Acceptance of Material:

The receiving and acceptance function is the final phase of the purchasing cycle.

At this point, the final determination is made as to whether requirements specified in the purchase documents have been met. The following outline describes this process:

1. Materials and supplies that are inventoried in the warehouse are received into the financial system. All non-inventoried items that are delivered to the warehouse are not received into the financial system but are delivered to the requesting department unopened. The requesting department must sign for receipt of the items.

2. The requesting department is responsible for the initial inspection of the goods.

Any apparent damage or shortages observed at the time of delivery should be noted on the shipping documents and reported to the Purchasing Division so the issues can be resolved.

3. Changes in quantity or dollar amounts from the original purchase order at the time of delivery must be handled through the submission of a “Change Order.”

B. Warehouse Operation and Inventory Control:

The warehouse operation maintains an inventory of approximately 1,500 commonly used items for City departments. It is recommended that staff check the warehouse inventory prior to purchasing common items that may already be stocked in the warehouse inventory. Materials and supplies may be requested in one of two ways:

1. City staff enters a requisition to order items from the warehouse and the order will be sent to the warehouse to fill. The requested items can be picked up from the warehouse or will be delivered on the next scheduled delivery day by warehouse staff.

2. City departments may also fill out a paper requisition at the warehouse, which will be filled upon request for urgent needs or emergencies only. For large orders, staff may require additional time to fill the order and will advise staff when the order will be ready for pick up or delivery.

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C. Delivery of Materials and Supplies that are shipped to the warehouse:

1. Departments may elect to have items shipped directly to their location or to the Central Stores Warehouse. If delivery to the warehouse is the preferred method, all packages should be marked as follows:

City of Garden Grove, Central Receiving
13802 Newhope Street
Garden Grove, CA, 92843
Attn: Requesting Person/Department

2. To avoid any delays in delivery, the department should provide the vendor with their contact name and City department/division and ask that they clearly mark this information on the outside of the package.

3. Large and heavy items should be shipped directly to the department or location where the item is required for use.

13.2 SURPLUS PROPERTY AND EQUIPMENT
The Central Stores Warehouse is responsible for the storage and disposition of approved surplus property. Surplus property is tangible property that is no longer of use to the City because it is obsolete, too costly to repair, or valued only for its base content.

Surplus property includes items such as vehicles and certain equipment and furniture that is in good resalable condition.

Before any items are considered to be surplus property, the City will make its best effort to reuse, recycle, or reassign the items to another department within the City.

Items that have no value such as old office chairs, old worn out furniture, and small office supplies are not considered surplus property and will not be handled by the Central Stores Warehouse. The department will be responsible for the disposition of any City property that the Central Stores Warehouse staff has advised will not be accepted as surplus property.

Large furniture replacements shall also be handled by the individual department due to the large volume of items. It is recommended that the department schedule an appointment with the City’s surplus vendor so that they can come to the location of the property and advise the department of which items they will accept for surplus property. All other items must be reassigned to another department, recycled or disposed of by the department and will not be handled the Central Stores Warehouse.

All surplus property to be stored at the Central Stores Warehouse must be approved by the Central Warehouse staff. It is not acceptable for any department to place any City property in the Central Stores Warehouse without prior authorization from Central Stores Warehouse staff.

Prior to any disposition of City property, it is recommended that City departments contact Central Stores Warehouse staff. Staff can assist with any questions regarding surplus property or provide recommendations for the disposition of any potential surplus property.

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Section 2.50.130 (Surplus Supplies and Equipment) of the Garden Grove Municipal Code states: All using agencies shall submit to the Purchasing Division, at such times and in such form as prescribed, reports showing all supplies and equipment which are no longer used or which have become obsolete and/or worn out. The Purchasing Division shall have authority to sell all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use, or to exchange the same for, or trade in the same on, new supplies and equipment. Such sales shall be made pursuant to Sections 2.50.100 (Formal Contract Procedure) and 2.50.110 (Open Market Procedure) of the Municipal Code, whichever is applicable.

Departments having City-owned property which is surplus to their needs shall:

1. Contact the Central Stores Warehouse for review and recommendation of potential surplus property.

2. Complete the Property Disposition Form for any approved surplus property.

3. Place a work order on the City’s Intranet or make arrangements with Central Stores Warehouse staff to pick up the approved surplus property. The Property Disposition Form must accompany the surplus property. Once approved by Central Stores staff, surplus property must be taken to the Central Stores Warehouse since property cannot be declared surplus and remain in the department.

4. When the Purchasing Manager determines the property is no longer suitable for use by the City, the items will be disposed of by utilizing one of the following methods per Administrative Regulation 1.8 (Surplus Property).

 Sell by auction or sealed bid (including vehicles-handled by Public Works Department)
 Trade in on new equipment
 Sell as scrap
 Dispose of in trash (for items with no salvage value)  Donate surplus items with City Council approval
 Purchase by City employee at fair market value determined by the Purchasing Manager as approved by the City Manager. The Purchasing Manager and the City Manager cannot purchase such surplus property per Government Code 1090.

5. City employees wishing to keep their cell phones upon retirement shall be treated as surplus equipment subject to a $1.00 value if the phone is two years or older, half of the sales tax price the City paid for it if it is 1-2 years old, and the full amount of the sales tax paid by the City if the phone is less than 1 year old.

6. Public Safety service weapons transferred to retiring police officers shall be treated as surplus property and are subject to a $1.00 value upon the execution of a release of liability and compliance with Penal Code 27065. Retiring canines may be transferred to its handler and are subject to a $1.00 value upon the execution of a release of liability.
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Unless otherwise provided, all proceeds from the sale of surplus property will be deposited into the City's general fund.

All IT related surplus items such as desktop computers, laptop computers and iPads are handled by the Information Technology department. All surplus pricing and purchases must be reviewed and approved by the Information Technology Department.

13.3 CITY RECORD STORAGE
The City record storage is located in the Central Stores Warehouse but is coordinated by the City Clerk’s office. Central Stores staff assists the City Clerk’s office in the pick- up of records from the various departments. Each department is responsible for labeling, loading and arranging their boxes on the shelves at the warehouse.

The Purchasing Division will determine if documents or records that are not part of the City record storage can be stored at the Central Stores Warehouse. Warehouse inventory will be given priority of storage space. Requests to store items in the warehouse will be based on available space and reviewed on a case by case basis.

Please reference Administrative Regulation 1.7 (Storage and Destruction of Records and Other Materials) that must be followed for storing records at the Central Stores warehouse at the City’s Municipal Services Center, and for destroying on-site and off- site records.

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CHAPTER 14:

CELLULAR PHONES AND OTHER DEVICES

The Purchasing Division processes all requests and changes for cellular phones, Wi-Fi devices, and tablets for those positions that are authorized by the Department Director.

The authorized position list should be updated by all Department Directors in the department budget.

Please reference Administrative Regulation 2.14 (Cellular, Smartphones, Tablets and Telecommunication Devices) for more information.

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APPENDIX

REFERENCE DOCUMENTS

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EXCEPTIONS TO THE BIDDING REQUIREMENTS include emergencies, sole source and piggyback/cooperative agreements which must be reviewed and approved by the Purchasing Division prior to purchasing or entering into agreements * A purchase order will be required once cumulative fiscal year spending with any vendor exceeds $1,000.

Bid Threshold $1-$15,000 $15,001-$75,000 $75,001 and greaterMaterials, Supplies and Equipment (no labor)One (1) informal quote Three (3) informal quotes Formal Bid Process RequiredProfessional/Consultant ServicesOne (1) written proposal and contract/insurance may not be needed if approved by Risk ManagementOne (1) written proposal and contract and insurance required as per Risk ManagementFormal Bid Process/Contract and insurance requiredBid Threshold$1-$15,000 $15,001-$75,000 $75,001-$220,000 $220,001 and greaterPublic Works/Construction ProjectsOne (1) written quotation with prevailing wage if over $1,000; contract/insurance may not be needed if under $15,001 and approved by Risk ManagementThree (3) written quotations with prevailing wage; contract/insurance required as per Risk Management; bonds required for >$25k.Informal Bid Process Required per GGMC 2.52.030;contract/insurance/bonds required as per Risk ManagementFormal Bid Process Required per PC22037;contract/insurance required as per Risk ManagementBid Threshold $1-$15,000 $15,001-$350,000 $15,001 and greater $350,001 and greater $350,001 and greaterFederal Purchasing Requirements(MICRO PURCHASE) No bid or quote required for reasonable pricing(SMALL PURCHASE/SIMPLIFIED ACQUISITION) Minimum of Two (2) informal quotes required(SOLE SOURCE) May only be used when properly justified and research is document (SEALED BID-PUBLIC WORKS CONSTRUCTION) Bids must be solicited from at least two (2) or more qualified bidders with prevailing wage(COMPETITIVE PROFESSIONAL/CONSULTANT SERVICES) Bids must be solicited from an adequate amount of qualified sourcesGENERAL PURCHASING REQUIREMENTS1. PO always required for amount of $1,001 and greater2. City Manager's Authority-up to $75,0003. City Council Authority-$75,001 and greater

BID THRESHOLD REFERENCE GUIDE
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Department of Industrial Relations (DIR) Guidelines

These are NOT a public works projects. Prevailing wages and DIR registration are not required. Repairs and maintenance to equipment not attached to realty. Janitorial or custodial services of a routine, recurring, or usual nature. Landscape maintenance work done by a “sheltered workshop.” Example: California Conservation Corps. Protection provided by guards, watchmen, or other security forces. Services up to $1,000. Work done under contract and paid for in whole or in part with public funds? •Alteration •Demolition •Installation •Repair •Construction (including design, inspection, or surveying) Maintenance that is: •"Routine, recurring, and usual work for the preservation, protection, and keeping of any publicly owned or publicly operated facility for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered, or repaired" OR •"Carpentry, electrical, plumbing, glazing, (touchup painting), or other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient, and continuously usable condition for which it was intended, including repairs, cleaning, and other operations on machinery and other equipment permanently attached to the building or realty." •Landscape and tree trimming.

These are public works projects. DIR registration by vendor and subcontractors is required before bidding. Project registration required the sooner of the first day of work or 30 days following award. Prevailing wages required, when over $1,000. Include DIR language on City PO/contract.

Construction under $25,000 and Maintenance under $15,000 are exempt from DIR PWC-100. Prevailing wages apply. DIR language is included in City contracts. Register public works projects with DIR. Require proof of contractor/subcontractor registration before accepting a bid. Ensure posting of jobsite notices. Ensure payment of prevailing wages. Awarding body (City) responsibilities Awarding body (City) penalties for noncompliance Fines of $100 per day up to $10,000 for: oFailure to comply with award notification requirements oPermitting an unregistered contractor or subcontractor to work on a project Potential loss of state funding for one year for willful violation for two or more projects. 96 73
Assembly Bill 339 (AB 339) Implementation Guidelines

Step 1: Initial Screening for Applicability Responsible Department: Finance/Purchasing

• Review all requests for RFP's, RFQ's and service contracts renewals or extensions submitted to Purchasing to determine whether AB 339 may apply. • If the Scope of Work appears to involve services that could be subject to AB 339 requirements, notify the requesting department and the Human Resources Department via email. The Scope of Work shall be included in the email notification for further review and evaluation.

Step 2: Determination of Applicability Responsible Department: Requesting Department • Review the scope of work to determine whether the services involved duties that are performed by, or are reasonably related to, classifications represented by a recognized bargaining unit. • Consult with HR to confirm the contracted services overlap with bargaining unit duties. • If no overlap is identified, document the review and determination that the proposed services do not involve bargaining unit work subject to AB 339 requirements. • Notify Purchasing whether the procurement may proceed or whether compliance with AB 339 is required before moving forward.

Step 3: Notification to Bargaining Units Responsible Department: Human Resources

• Provide notification template to requesting department to complete necessary information and provide solicitation document.
• Once completed notification template is received from the requesting department, provide written notice to the applicable bargaining unit(s) to initiate the 45-day review period required under AB 339. • Coordinate correspondence between requesting department and the bargaining unit(s) as required by law and document compliance with notification requirements.

Step 4: Documentation and Record Retention Responsible Department: Requesting Department and Human Resources • Maintain copies of notices, responses received, and determinations made under AB 339. • Coordinate with City Clerk's Office on record retention requirements Formatted: Indent: Left: 0.25", First line: 0", Right:

0.28", Space After: 6 pt
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Purchase of Materials, Supplies, Equipment and other Commodities

***A purchase order will be required once cumulative fiscal year spending with any vendor exceeds $1,000.

Purchases
$15,001-$75,000
Department Head or
Designee
Approval Required
Department Head or
Designee approves
requisition
Purchases
$75,001 and
greater
Department Head or
Designee
Approval Required
Department enters
purchase requisition
and attaches bid
specifications
Formal Bid Process
Required (IFB)
Department Head or
Designee approves
requisition
Formal Bid Process
Is conducted and
awarded to lowest
responsible bidder
City Manager/Designee
Approval Required for
$15,001-$75,000
City Council Approval
Required for $75,000
and above
*(All vehicles require
City Council approval)
Purchase
order
issued
Department enters
purchase requisition
Purchase
order
issued
Requisition and
Three (3) Informal
Quotes Required
Purchases
$1,001-$15,000
Department Head or
Designee
Approval Required
Requisition and
One (1) Informal
Quote Required
Purchase
order
issued
Purchases up to
$1,000
Department Head or
Designee
Approval Required
Use Petty
Cash
Use
P-Card

Or
Or
PO
Not
Required

Department Head or
Designee approves
requisition
Department enters
purchase requisition
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Professional Services and Consultant Agreements

Services $15,001-$75,000 Department Head or Designee Approval Required Department Head or Designee approves requisition Department enters purchase requisition and attaches proposal, and insurance form Consult with Risk Management for insurance requirements Contract is drafted and signatures are obtained Contractor provides required insurance for review and compliance Signed contract, insurance compliance report and bonds to the City Clerk’s office City Manager/Designee signature required on all contracts up to $75,000 Services $1,001-$15,000 Department Head or Designee Approval Required Requisition and One (1) written Proposal Required Department enters purchase requisition and attaches proposal Contract and insurance validation not required unless deemed necessary by Risk Management Department Head or Designee approves requisition Requisition and One (1) written Proposal Required Services up to $1,000 Department Head or Designee Approval Required Verify with Risk Management for Insurance if High Risk PO, contract and insurance validation not required unless deemed necessary by Risk Management Invoice can be paid Services $75,001 and greater Department Head or Designee Approval Required Formal Bid Process Required (RFP) Department enters purchase requisition and attaches bid specifications and insurance requirements Department Head or Designee approves requisition RFP process is required and awarded based on RFP Contract is drafted and signatures are obtained Contractor provides required insurance for review and compliance Consult with Risk Management for insurance requirements Signed contract, insurance compliance report and bonds to the City Clerk’s office City Manager/Designee approval required up to $75,000 and City Council approval required for $75,001 and greater Department drafts Staff Report when City Council approval is required City Manager signs contract per City Council approval City Clerk’s office forwards executed contract to Purchasing, Project Manager and Contractor City Manager/Designee signature required on all contracts up to $75,000 City Clerk’s office forwards executed contract to Purchasing, Project Manager and Contractor City Clerk’s office forwards executed contract to Purchasing, Project Manager and Contractor *A purchase order will be
required once cumulative
fiscal year spending with any
vendor exceeds $1,000.

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Public Works/Construction Contracts
DIR and Prevailing Wage Requirements Apply

Public Works Contacts up to $15,000 Department Head or Designee Approval Required Requisition and One (1) Written Quote Required Department enters purchase requisition and attaches quote and insurance form Purchase Order is issued and Terms and Conditions are attached for insurance requirements Contract and insurance validation is not required for services between $1,001-$15,000 unless deemed as necessary by Risk Management Public Works Contacts
up to $15,001-$75,000
Department Head or
Designee
Approval Required
Requisition and
Three (3) Written
Quotes Required
Department enters purchase
requisition and attaches
quotes and insurance form
Contract and insurance required
for projects greater than $15,000
as per contract and Risk
Management recommendations
Department Head or Designee
approves requisition
Contract is drafted and
signatures are obtained
Contractor provides required
insurance for review and
compliance
Signed contract, insurance
compliance report and bonds to
the City Clerk’s office

City Manager/Designee
approval required up to
$75,000 and City Council
approval required for
$75,001 and greater

City Clerk’s office forwards
executed contract to
Purchasing, Project
Manager and Contractor
*A purchase order will be
required once cumulative
fiscal year spending with
any vendor exceeds $1,000.

Department drafts Staff
Report when City Council
approval is required
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77 Public Works/Construction Contracts
DIR and Prevailing Wage Requirements Apply, Cont.

Public Works Contracts $220,001 and greater Department Head or Designee Approval Required City Council Approval required for $75,000 and greater Department enters purchase requisition and attaches bid specifications Formal Bid Process Required (IFB) per PCC 22037 Formal Bid Process is conducted and awarded to lowest bidder Signed contract, insurance compliance report and bonds to the City Clerk’s office Contract is drafted and signatures are obtained Contractor forwards required insurance/bonds for review and compliance Confer with Risk Management for Insurance Requirements City Clerk’s office forwards executed contract to Purchasing, Project Manager and Contractor Public Works Contracts $75,001-$220,000 Department Head or Designee Approval Required Department enters purchase requisition and attaches bid specifications Confer with Risk Management for Insurance Requirements Contract is drafted and signatures are obtained Contractor forwards required insurance/bonds for review and compliance Informal Bid Process (IFB) required per GGMC 2.52.030 Informal Bid Process is conducted and awarded to lowest bidder Signed contract, insurance compliance report and bonds to the City Clerk’s office City Clerk’s office forwards executed contract to Purchasing, Project Manager and Contractor Department drafts Staff Report City Council Approval required for $75,000 and greater Department drafts Staff
Report
101

78 Informal Bidding Procedures

Purchasing or City Clerk Publicly opens all bids at the time and place stated in public notices Project Manager Reviews bids received and confirms lowest responsible bidder Drafts staff report Uploads staff report and contract Reviews bids received and confirms lowest responsible bidder City Council Awards contracts over $75,000 City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor Purchasing Advertises in trade journals at least 14 10 calendar days prior to bid opening Posts the bids to Planet Bids Pre-Bid Meetings/Job Walks Project Manager Drafts the Scope of Work and plans and specifications Public Project Contracts $75,001 - $220,000 Purchasing Maintains list of qualified contractors Prepares notice inviting informal bid Notice Inviting Informal Bids shall: Describe the project in general terms Describe how to obtain more detailed information State the time and place for submission of bids (at least 10 days) Purchasing Drafts contract, obtains contract signatures, and requests insurance from Contractor for review Forwards signed contract, insurance compliance report and bonds to the City Clerk’s office Supplies, Materials & Equipment Public Works Contracts Professional/Consultant Services Up to $75,000 Project Manager Solicits Informal quotes for materials and supplies Minimum of one proposal for professional services Project Manager Recommends successful bidder or contractor for Purchasing review City Manager/Designee Awards all contracts up to $75,000 Purchasing Drafts contract, obtains contract signatures, and requests insurance from Contractor Forwards signed contract, insurance compliance report and bonds to the City Clerk’s office City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor Public Project Contracts $15,001- $75,000 Purchasing Department Maintains list of qualified contractors Project Manager Recommends successful bidder or contractor for Purchasing review Drafts Staff Report when required Uploads Staff Report and Contract Presents to City Council as required City Manager/Designee Awards contracts up to $75,000 City Council Awards contracts over $75,000 City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor Project Manager Solicits Informal quotes for public works projects as required Purchasing Drafts contract, obtains contract signatures, and requests insurance from Contractor for review Forwards signed contract, insurance compliance report and bonds to the City Clerk’s office  102

79 Formal Bidding Procedures

Contractor Provides Bonds and insurance within 10 days of contract award City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor Professional/Consultant Services Contracts over $75,000 Project Manager Tasks Reviews Proposals Received Interviews qualified consultants Checks References Recommends and selects qualified contractor Purchasing Tasks Notice inviting formal bids Solicits requests for proposals Posts addenda to RFP’s Project Manager Provides 1. Scope of Work 2. Scoring Criteria 3. Evaluation Team for Proposals 4.List of Potential Proposers Contracts over $75,000 RFP (Request for Proposal) process required City Manager/Designee Awards all contract up to $75,000 Purchasing Tasks Schedules meetings with Evaluation Team Reviews scoring of proposals Drafts contract, obtains contract signatures, and requests insurance from Contractor Forwards signed contract, insurance compliance report and bonds to the City Clerk’s office Department Tasks Drafts staff report to award Purchase Order and uploads documents City Manager/Designee Awards Purchase Orders up to $75,000 City Council Awards Purchase Orders over $75,000 Supplies, Materials & Equipment over $75,000 Project Manager Tasks Reviews Bids Received Checks References Recommends/selects qualified contractor Purchasing Tasks Notice inviting formal bids Solicits requests for bids Posts addenda to IFB’s Project Manager Provides 1. Product Specifications 2. List of Potential Vendors Purchases over $75,000 IFB (Invitation for Bid) process required Department Submits Drafts staff report to award Purchase Order and uploads documents City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor Purchasing or City Clerk Publicly opens all bids at the time and place stated in the public City Council Approval required for all contracts over $75,000 Contractor Provides Bonds and insurance within 10 days of contract award City Clerk Prepares letter of contract award Forwards executed contract to Purchasing, Project Manager and Contractor  Public Project Contracts In Excess of $220,000 Purchasing Tasks Advertises in trade journalsnewspaper at least 14 calendar days prior to bid opening and (15 days for trade journals) Posts the bids on Planet Bids Pre-Bid Meetings/Job Walks Posts addenda to IFB’s Purchasing Maintains list of qualified contractors Prepares notice inviting formal bids Notice Inviting Formal Bids shall:Describe the project in general terms Describe how to obtain more detailed information State the time and place for submission of bids Project Manager Tasks Reviews bids received and confirms lowest responsible bidder Reviews bids received and confirms lowest responsible bidder Project Manager Provides 1. Scope of Work 2.Plans and Specifications Purchasing Tasks Drafts contract, obtains contract signatures, and requests insurance from Contractor Forwards signed contract, insurance compliance report and bonds to the City Clerk’s office Department Tasks Drafts staff report to award Contract and uploads documents 103
Item 360/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Matthew West
Dept:

City Manager Dept: City Manager
Date: 9/8/2026

Subject: Approval for City staff to travel to Republic of Korea to participate in the 2026 KBIZ Leadership Forum to promote the City as a business destination and continue to foster the relationship with KBIZ. (Action Item)

OBJECTIVE

To obtain travel authorization for two (2) staff members to participate in the Korea Federation of Small and Medium Business (KBIZ) Leadership Forum to promote business opportunities and tourism interest of the City and further strengthen our relationship with the business community in Republic of Korea, from October 16-23, 2026, including travel time.

BACKGROUND

KBIZ was established in 1962 as a support organization for small and medium sizes (SMEs) businesses and currently represents the rights and economic interests of the 7.29 million SMEs in Republic of Korea. KBIZ is the Korea co -host of the World Korean Business Convention (Hansang), which held its first US convention successfully in Anaheim in 2023.

DISCUSSION

This year, KBIZ will be hosting its annual KBIZ Leadership Forum in Jeju, Republic of Korea.

KBIZ has invited the City to participate as a speaker and attend variety of events and seminars that will take place from October 20-23, 2026. KBIZ will provide all lodging, ground transportation, and interpreters for the participating staff while staying in Jeju (4 days, 3 nights). Prior to the Leadership Forum on October 19th, staff will meet with various members of KBIZ to promote tourism and showcase the City as a business destination from the Republic of Korea to Garden Grove. This will be great opportunity to not only discuss tourism and promote Garden Grove as a tourism destination but to promote the City as a business destination. It is anticipated that KBIZ members will be further e ncouraged to invest in and promote business opportunities within the City of Garden Grove as a result of this visit.

104
Item 360/2026

FINANCIAL IMPACT

The KBIZ Leadership Forum portion of the trip will be primarily funded by KBIZ, including lodging, ground transportation and some meals. The estimated cost for flight and lodging not covered by KBIZ is approximately $3,000 per person, for two staff members. Together with ancillary expenses, not expected to exceed $3,000, will be funded by the existing FY 2026- 27 City Manager budget.

RECOMMENDATION

It is recommended that the City Council:

 Authorize travel for the two staff members to travel to Republic of Korea to participate in the 2026 KBIZ Leadership Forum.

ATTACHMENT(S)

1. Korean Federation of SMEs (KBIZ) Invitation Letter

105
106
Item 368/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: John Montanchez
Dept:

City Manager Dept: Community Services
Date: 9/8/2026

Subject: Approval of Amendment No. 3 to the Agreement with OCY Management, LLC for transportation services for the Senior Mobility Program at the H. Louis Lake Senior Center. (Action Item)

OBJECTIVE

To request City Cou ncil approval of Amendment No. 3 to the Agreement with OCY Management, LLC, for transportation services for the H. Louis Lake Senior Center Senior Mobility Program (SMP).

BACKGROUND

In June 2024 , City Council approved a two -year Agreement with Cabco Yellow, Inc., dba California Yellow, to provide transportation services for the SMP at the H. Louis Lake Senior Center. The transportation services were split funded through the Orange County Transportation Authority (OCTA), Meals on Wheels OC (MoWOC), and the City of Garden Grove for two twelve-month periods beginning July 1, 2024, and ending June 30, 2026. The City can exercise the option to extend the agreement for an additional three years, one year at a time. Amendment No. 1 was executed on May 29, 2025 to reassign the agreement from Cabco Yellow Inc, dba California Yellow, to OCY Management, LLC. Amendment No. 2 was executed on June 9, 2026 to extend the term of the agreement for the first option year, beginning July 1, 2026 through June 30, 2027, and increase the total compensation amount for both the agreement expiring on June 30, 2026 and for the remaining option years, from $240,000 to $293,000, an increase of $53,000.

DISCUSSION

The $293,000 annual not -to-exceed amount was based on projections regarding expec ted usage of the SMP, but actual program usage may vary, resulting in costs that exceed the estimated amount and requiring additional funding to pay outstanding invoices. Higher-than- anticipated ridership, particularly for medical and nutrition trips, has resulted in program costs exceeding initial projections.

107
Item 368/2026

Staff is requesting that City Council approve Amendment No. 3 to the Agreement, which will increase the total compensation amount from $293,000 to $307, 084.35, an increase of $14,084.35 to cover Fiscal Year 2025/26 outstanding invoices.

FINANCIAL IMPACT

Funding for the City’s SMP will continue to be split funded by the City, OCTA and MoWOC.

OCTA will provide funding through June 2027. There will be no additional appropriation necessary to approve Amendment No. 3 to the Agreement with OCY Management, LLC, for transportation services for the H. Louis Lake Senior Center Senior Mobility Program.

RECOMMENDATION

It is recommended that the City Council:
 Approve Amendment No. 3 to the Agreeme nt with OCY Management, LLC, increasing the contract amount by $14,084.35 to cover Fiscal Year 2025/26 outstanding invoices for a total of not-to-exceed $307,084.35; and  Authorize the City Manager, or designee, to execute Amendment No. 3 on behalf of the C ity, including making minor modifications as appropriate and necessary.

ATTACHMENT(S)

1. Amendment No. 3 for the Agreement with OCY Management LLC

108

CITY OF GARDEN GROVE
AMENDMENT NO. 3
To: Provide Transportation Services for the City of Garden Grove's Senior Mobility Program per RFP S-1325.

This Amendment No.3 to Provide Transportation Services for the City of Garden Grove's Senior Mobility Program per RFP S-1325, is made and entered into this_____day of______2026, by and between the CITY OF GARDEN GROVE, hereinafter referred to as "CITY", and OCY Management, LLC, hereinafter referred to as "CONTRACTOR".

WHEREAS, Contractor and CITY entered into Contract No. B250003 effective June 11, 2024.

WHEREAS, Contractor and CITY desire to amend the Existing Contract as provided herein.

Now, therefore, it is mutually agreed, by and between the parties as follows:

Section 3: Compensation - shall be revised as follows:

Increase the second year of the original contract term, which expired on June 30, 2026, from $293,000.00 to $307,084.35, an increase of $14,084.35, to pay the final outstanding invoice of FY 2026.

Except as expressly amended hereby, the Existing Contract remains in full force and effect as originally executed.

109
IN WITNESS WHEREOF, the parties have caused this Amendment No. 3 to the Existing Contract to be executed by their respective officers duly authorized on the date first written above.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By:___________________________
City Manager
ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"
OCY Management, LLC

By: ___________________________

Name:__________________________

Title:___________________________

Date: __________________________

If CONTRACTOR is a corporation, a
Corporate Resolution and/or Corporate
Seal is required. If a partnership,
Statement of Partnership must be
submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

110
Item 362/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Samuel Kim
Dept:

City Manager Dept: Public Works
Date: 9/8/2026

Subject: Approval of an Amendment to the agreement with Unifirst Corporation to provide uniform rental and laundering services. (Cost: $19,000)(Action Item)

OBJECTIVE

To receive City Council approval of an amendment to the uniform rental and laundering services agreement with Unifirst Corporation to address a rate increase.

BACKGROUND

The City contracts with Unifirst Corporation for weekly uniform rental and laundering services covering employee classifications across the Public Works Department. Under the Memorandum of Understanding with the applicable bargaining unit(s), the City is responsible for the cleaning, maintenance, and replacement of uniforms and related apparel for covered classifications. On November 12, 2024, the City Council awarded the existing contract to Unifirst Corporation, piggybacking on a competitively bid Sourcewell contract (Contract #011124-UFC) under which Unifirst Corporation was the lowest responsive bidder. The agreement covers employee uniforms and other related service items, including building mats, runners, and dust mops used for cleaning at City facilities.

The contract has a 40-month term – an initial seven-month term in the amount of $40,000, followed by annual renewal options – not to exceed $80,000 per year, and is scheduled to expire on March 25, 2028, consistent with the underlying Sourcewell contract term. The $80,000 annual not-to-exceed amount has been sufficient to cover routine weekly laundering service, inspections, and standard uniform repairs and replacements since the contract was awarded, but Unifirst Corporation has since advised the City that current pricing is no longer sustainable at the existing rate.

DISCUSSION

Unifirst Corporation applied a 20% annual rate increase on the existing agreement, citing rising costs for laundering, garment replacement, and labor. Applying this 20% increase to the current $80,000 annual not-to-exceed amount resulted in total expenditure amounts for last Fiscal Year increasing by approximately $12,000, for a total of $92,000. An amendment 111
Item 362/2026

for 10% was issued to pay for $8,000 outstanding invoices, leaving a remaining $3,000 unpaid invoices. To avoid disruption in providing the required safety gear to employees, it is recommended to issue an amendment to increase Fiscal Year 2025-26 agreement by $3,000 and Fiscal Year 2026 -27 agreement by $16,000 to adequately fund Unifirst Corporations applied 20% increase. Based on the requested 20% rate increase, staff recommends increasing the annual not -to-exceed contract amount from $80,000 to $96,000 for the remainder term.

The rate increase is further compounded by growth in the Department's cove red workforce.

Approximately 22 new employees were added to the uniform program within the last year, each requiring an initial uniform issuance under the agreement. In addition, new employees performing electrical work are issued fire -resistant (FR) unifo rms as required for arc flash protection, which carry an additional per-employee charge under the Unifirst pricing schedule.

Together, these workforce-driven costs are layered on top of Unifirst Corporation's applied rate increase and further support the need for the requested contract amendment.

FINANCIAL IMPACT

The requested increase to the UniFirst contract is $19,000. The additional cost will be absorbed within the existing Public Works Department operating budget. No addit ional appropriation is required.

RECOMMENDATION

It is recommended that the City Council:

 Approve Amendment No. 3 for the uniform rental and laundering services agreement with Unifirst Corporation, increasing the contract amount by $3,000 to cover Fiscal Year outstanding invoices for a total of not-to-exceed $91,000 for the contract term ending on June 30, 202 6, and increasing the contract amount by $16,000 per year to cover the remaind er two fiscal year annual terms for a total of not-to-exceed $96,000 annually; and

 Authorize the City Manager, or designee, to execute the amendment and any related documents necessary to implement this action.

By: Raquel Manson, Senior Administrative Analyst

ATTACHMENT(S)

1. Amendment Agreement No. 3

112

CITY OF GARDEN GROVE

AMENDMENT NO. 3

To: Provide uniforms, products and services in accordance with the Sourcewell competitive bid program, Contract #011124-UFC attached herewith as Attachment “A”

This Amendment No. 3 uniforms, products and services in accordance with the Sourcewell competitive bid program, Contract #011124-UFC attached herewith as Attachment “A”, is made and entered into thi s ____ day of ___________ 2026, by and between the CITY OF GARDEN GROVE, her einafter referred to as "CITY" and UNIFIRST CORPORATION, a Massachusetts co rporation, hereinafter referred to as "CONTRACTOR".

WHEREAS, Contractor and CITY entered into Contract No. B250156 effective November 12, 2024.

WHEREAS, Contractor and CITY desire to amend the Existing Contract as provided herein.

Now, therefore, it is mutually agreed, by and between the parties as follows:

Section 3: Compensation - shall be revised as follows:

The contract price is hereby increased from $88,000.00 to $91 ,000.00 for the term of the contract ending on June 30, 2026.

The contract price is hereby increased from $80,000.00 to $96 ,000.00 for the contract term ending on June 30, 2027.

Except as expressly amended hereby, the Existing Contract remains in full force and effect as originally executed.

113
IN WITNESS WHEREOF, the parties have caused this Amendment No. 3 to the Existing Contract to be executed by their respective officers duly authorized on the date first written above.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By: ____________________________
City Manager
ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR”

UNIFIRST CORPORATION

By: ______________________________

Name: ___________________________

Title: ____________________________

Date: ____________________________

If CONTRACTOR is a corporation, a
Corporate Resol ution and/or
Corporate Seal is required. If a
partnership, Statement of
Partnership must be submitted to
CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

114
Item 366/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Samuel Kim
Dept:

City Manager Dept: Public Works
Date: 9/8/2026

Subject: Authorization for the issuance of a purchase order to Access Rentals & Sales for the purchase of an articulating boom lift for PFAS Water Treatment Operations. (Cost: $60,035)(Action Item)

OBJECTIVE

To receive City Council approval for the purchase of one (1) new articulating boom lift , through a Sourcewell competitive bid program , for the Water Division to support PFAS operations and maintenance at water sites.

BACKGROUND

The City's PFAS treatment vessels require periodic inspection and media replacement every three to five years and required maintenance or repair of various appurtenances. Staff has relied on temporary scaffolding or short-term aerial lift rentals — both carry fall-hazard risk, vendor lead-time dependency, and recurring rental costs.

An articulating boom lift's jointed reach clears vessel walls and overhead obstructions more effectively than a telescopic boom or scissor lift, and its compact footprint suits tight pump rooms — extending its use beyond PFAS system servicing to general facility mai ntenance.

Purchasing the unit eliminates reliance on temporary scaffolding and reduces fall -hazard exposure for maintenance crews. Currently, the Water Services Division operates and maintains four PFAS treatment sites, with an additional four sites schedu led for startup by 2028.

DISCUSSION

Sourcewell nationally solicits, evaluates and awards contracts through a competitive bid process. As a member of Sourcewell, the City is able to utilize bid awards for vehicle and equipment purchases. Staff recommends dispensing of the bidding process per Municipal Code 2.50.060 (E) and piggybacking on the results of a recent Sourcewell competitive bid program, contract #020923-TER. The results deemed All Access Rentals & Sales as the lowest responsible bid. Staff received a quote for one (1) new 2026 Genie Z-34/22 Articulating Boom Lift in the amount of $60,034.88 with a lead time of 15 weeks. 115
Item 366/2026

FINANCIAL IMPACT

The total cost to purchase one (1) new 2026 Genie Z -34/22 Articulating Boom Lift is $60,034.88. The purchase will be funded through the adopted FY 2026-27 Water Enterprise Fund budget.

RECOMMENDATION

It is recommended that the City Council:

 Approve to dispense of the bidding process per Municipal Code 2.50.060(E), piggy-back purchase through an approved cooperative purchasing contract;

 Authorize the use of Sourcewell Cooperative Purchasing Contract #020923 - TER; and

 Authorize the Finance Director, or designee, to issue a purchase order in the amount of $60,034.88 to All Access Rentals & Sales for the purchase of one (1) new 2026 Genie Z -34/22 Articulating Boom Lift for the Public Works Department - Water Division.

By: Raquel Manson, Senior Administrative Analyst

ATTACHMENT(S)

1. Quote

2. Sourcewell Cooperative Purchasing Contract No. 020923-TER

3. Sourcewell Pricing

116
OFFICE: BRANCH # Riverside
FAX: 619.697.1082 SALES REP Donny
CELL: DATE :

EMAIL :

NAME PHONE

CONTACT CONTACT

ADDRESS ADDRESS

CITY STATE CA CITY STATE
ZIP 92843 ZIP

PHONE FAX PHONE FAX
Qty Part# Year Eq #
1 TBD 2026 N/A

8.75%
Y

Estimated
TotalDescription
2026 Genie Z-34/22 Articulating Boom Lift
(see specifications)

$450.00
$53,450.00
$44,676.88
"When operated in California, any off-road diesel vehicle may be subject to the California Air Resource Board In use of Off-Road Vehicle Regulation. For more information, please visit the California Air Resource Board website at: http://www.arb.ca.gov/msprog/ordiesel/ordiesel.htm" COMMENTS:
$4,676.88
Deposit or PO -$15,358.00

BALANCE DUE
CA Sales Tax Resale Cert
Local Freight
SUB TOTALPrint Name:_______________________________ Title:______________________ Factory Freight $1,458.00
13802 New Hope Street Same
Quote
3364 Helix St Spring Valley, CA 91977
06/23/26
D. McCleary
Edward Huy
Quote prepared by:

Quote #: 62326-1
Garden Grove
[email protected]
714924-2171
This price quote is for information purposes only and does not constitute an offer to rent or sell goods or equipment. All rentals or sales shall be subject to the terms and conditions of ALL ACCESS RENTALS Contract or Sales Invoice. 619.222.9337
951-640-2775

CUSTOMER INFORMATION JOB SITE INFORMATION
The City of Garden Grove

$53,450.00$53,450.00
Current Lead Time 15 Weeks subject to change.

Signature:___________________________________ Date: / / 117
020923-TER

Rev. 3/2022 1

Solicitation Number: 020923

CONTRACT

This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Terex USA, LLC, 20021 120
th Ave. NE, Bothell, WA 98011 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Portable Construction Equipment with Related Accessories and Attachments from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT

A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

B. EXPIRATION DATE AND EXTENSION. This Contract expires April 20, 2027, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.

C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.

2. EQUIPMENT, PRODUCTS, OR SERVICES

A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.















118
020923-TER

Rev. 3/2022 2

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship.

In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Supplier’s Limited Product Warranty shall apply to all Equipment, Products and Services provided.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING

All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products within ten (10) 














119
020923-TER

Rev. 3/2022 3

days after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will repair or replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid tax- exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.

4. PRODUCT AND PRICING CHANGE REQUESTS

Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:

x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and 














120
020923-TER

Rev. 3/2022 4

x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.

B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at government- owned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING

A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity 














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payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as e- commerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE

A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:

x Maintenance and management of this Contract;















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x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT

A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:

x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should 














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note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE

Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE

A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
















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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Except to the extent of the negligence or willful misconduct of the respective indemnitee, Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law. No party shall be liable hereunder for incidental, indirect, or consequential damages, even if advised of the possibility thereof.

12. GOVERNMENT DATA PRACTICES

Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT

A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell. 














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2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.

C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
















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14. GOVERNING LAW, JURISDICTION, AND VENUE

The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE

Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY

If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES

A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract. 














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The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for damages.

If the default remains after the opportunity for cure, the non-defaulting party may:

x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms 














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no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000

5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.

Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate

Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is 














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primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.

D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE

A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION

Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
















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21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS

Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions. 














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C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).

Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared 














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ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.

G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in 














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guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
















134
020923-TER

T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.

22. CANCELLATION

Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does no t relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Terex USA, LLC

By: By:

Jeremy Schwartz Matt Treadwell
Title: Chief Procurement Officer Title: Vice President Global Sales

Date: Date:

Approved:

By:

Chad Coauette
Title: Executive Director/CEO

Date:

Rev. 3/2022 18







































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Bid Number: RFP 020923 Vendor Name: TEREX CORP















149
Bid Number: RFP 020923 V endor Name: TEREX CORP
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Line Item CateJor\ or T\pe Offered Comments
71 Air Compressors Yes
No
N/A *
72 Light Towers Yes
No
N/A *
73 Generators Yes
No
N/A *
74 Pressure Washers Yes
No
N/A *
75 Welders Yes
No
N/A *
76 Aerial Equipment (scissor lifts/manlifts) Yes
No
Terex/Genie's proposal includes all
Aerial Work Platforms, Material Lifts,
Telehandlers, and associated
accessories currently offered in North
America
77 Pumps (less than 30 HP Yes
No
N/A
78 Soil Compaction Equipment Yes
No
N/A
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document(s) conforms to the following :

1. Documents in PDF format are preferred. Documents in W ord, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item respon ding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." 














150
Bid Number: RFP 020923 Vendor Name: TEREX CORP
Pricing - Copy of Terex Genie 2023 Pricing RFP 020923.xlsx - Monday February 06, 2023 11:20:21 Financial Strength and Stability - Terex Financial Strength and Stability.zip - Monday February 06, 2023 11:50:14 Marketing Plan/Samples - Genie Terex Marketing Plan Samples 2023.zip - Monday February 06, 2023 11:57:08 WMBE/MBE/SBE or Related Certificates - Terex---Introducing-Terex-Corporation---01-05-22.pdf - Monday February 06, 2023 12:14:35
Warranty Information - Genie Warranty Doc.pdf - Monday February 06, 2023 11:58:07 Standard Transaction Document Samples (optional)
Upload Additional Document - Terex Environmental_Social_ Governance_Report.pdf - Monday February 06, 2023 12:06:48 














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153
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Item 377/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Patricia Song
Dept:

City Manager Dept: Finance
Date: 9/8/2026

Subject: Receive and file warrants. (Action Item)

OBJECTIVE

For the City Council to receive and file the warrants.

BACKGROUND/DISCUSSION

Attached are the warrants recommended to be received and filed.

FINANCIAL IMPACT

Items listed in the warrants are budgeted.

RECOMMENDATION

It is recommended that the City Council:
 Receive and file the warrants.

ATTACHMENT(S)

1. 08142026

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Item 369/2026

Final
City of Garden Grove

INTER-DEPARTMENT MEMORANDUM

To:

Lisa L. Kim From: Chief El-Farra
Dept:

City Manager Dept: Police
Date: 9/8/2026

Subject: Award contracts to B&D Towing, Inc., dba Balcaceres and Davalos Towing; Action Southland Enterprises, Inc., dba Action Southland Towing; and, Pacific Towing, Inc., to provide on-call towing services as needed by the Police Department. (Action Item)

OBJECTIVE

To seek City Council approval to award contracts to B&D Towing, Inc., dba Balcaceres and Davalos Towing (B&D Towing) , Action Southland Enterprises, Inc., dba Action Southland Towing, and Pacific Towing, Inc., in response to RFP No. S -1370 to provide the Police Department with on-call towing services.

BACKGROUND

A request for proposals was conducted (RFP No. S -1370) to establish multiple vendors for on-call towing services. Police officers respond to a variety of calls for service that often include abandoned vehicles, recovering stolen vehicles, processing arrest ee’s vehicles, and vehicles that have been involved in traffic collisions. Towing services are used consistently throughout the City for these types of calls for service, and timely services help to ensure the efficiency of the Department’s operations.

DISCUSSION

RFP No. S-1370 was issued in June 2025 to obtain proposals for on-call towing services. The proposals were received in July 2025 with responses from a total of six towing companies.

Three of the six companies successfully completed the requireme nts outlined in RFP No. S - 1370 and are listed below:

 B&D Towing
 Action Southland Towing
 Pacific Towing
178
Item 369/2026