Agenda Item No. 14
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 22, 2024 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Assistant City Manager
SUBJECT: Second Reading and Adoption of an Ordinance to Add a New Section 2801 to Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code to Allow the City Council to Delegate Signature Authority
RECOMMENDATION
Conduct a public hearing and second reading to adopt an Ordinance to add new Section 2801 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) to allow the City Council to delegate signature authority.
BACKGROUND:
In 2023, staff developed an updated Purchasing Policy shown in Attachment 1 to replace the previous outdated code sections and be incorporated by reference into the Grover Beach Municipal Code shown in Attachment 2. (Ordinance 23-02). The Policy defines purchasing authority within the City, provides updated purchasing approval thresholds and provides purchasing procedures to guide staff. The Policy also defines rules and procedures for the use of City credit cards, business tax certificate requirements, contract management and disposal of surplus property. While the Purchasing Policy does provide signature authority for the City Manager under various circumstances, it does not specify that the Council may delegate signature authority for contracts requiring mayoral signatures or the City seal.
Signature Authority
On February 13, 2024, the Council conducted a public hearing regarding the Notice of Funding Availability for 2023 Community Development Block Grant (CDBG) Funds. The Council adopted a resolution, Resolution Number 24-07, authorizing the City Manager to execute and sign documents related to the application and the State’s agreement, funding requests, and reporting forms if the grant is awarded. On March 21, 2024, Department of Housing and Community Development (HCD) staff informed the City that the application for the Ramona Garden Park Rehabilitation Project Phases 1 and 2 was recommended for approval. However, subsequently on June 18, 2024, HCD staff informed the City that the resolution adopted on February 13, 2024 would need to be re-adopted authorizing the Mayor to sign the aforementioned documents.
Given HCD’s position, staff recommends the Council adopt an ordinance to add Section 2801 to Chapter 8 (Purchasing Policy) of Article II of the GBMC to amend the GBMC to provide that the Council may authorize a City officer or employee to negotiate and execute a contract on the City’s behalf without further approval of the Council. This will help streamline these processes and avoid having to seek multiple levels of Council approval.
Staff Report: Second Reading and Adoption of an Ordinance to Delegate Signature Authority Page 2 July 22, 2024
FISCAL IMPACT
The 2023 CDBG application for Ramona Garden Park Rehabilitation Project requested $3.3 million in funding and has been recommended for approval. Official award of the funds is contingent upon addressing any items identified by HCD staff, including the acceptance of the signed documents related to the application.
ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct a public hearing for the second reading and adoption of an Ordinance to add new Section 2801 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code (GBMC) to allow the City Council to delegate signature authority; or
2) Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Purchasing Policy
2. Existing Ordinance No. 23-02
3. Proposed Ordinance
City of Grover Beach
Purchasing Policy, Version No. 1
As Approved by City Council Ordinance 2023-02
Date:
August 28, 2023
Attachment 1
TABLE OF CONTENTS
CONTENTS
SECTION 1 – OVERVIEW......................................................................................................... 2
1.1 Introduction.................................................................................................................. 2
1.2 Purchasing System...................................................................................................... 2
1.3 Types of Purchases ..................................................................................................... 2 SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES ........................................... 3
2.1 General Authority......................................................................................................... 3
2.2 Grant Funding.............................................................................................................. 4 SECTION 3 – PURCHASING PROCESS .................................................................................. 5
3.1 Permitted Purchasing Methods .................................................................................... 5
3.2 Purchase Requisitions/Purchase Orders...................................................................... 5
3.2.1. Blanket Purchase Orders/Standard Goods Contracts.......................................................... 5 SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS ............................... 6
4.1 Supplies, Materials, Equipment and General Services................................................. 6
4.2 Public Projects ............................................................................................................. 7
4.2 Purchases of Certain Professional Services................................................................. 8
4.3 On-Call Consultant Services ........................................................................................ 9
4.4 Contract Amendments and Change Orders ................................................................. 9 SECTION 5 – BIDDING PROCEDURES ................................................................................... 9
5.1 Request for Bids (RFB)................................................................................................ 9
5.2 Request for Proposals (RFP)....................................................................................... 9
5.3 Request for Qualifications (RFQ) ................................................................................10
5.4 Informal Quotes ..........................................................................................................10
5.5 Bidding Criteria ...........................................................................................................10 SECTION 6 – NO-BID PURCHASING ......................................................................................11
6.1 Low-Cost Purchasing..................................................................................................11
6.2 Sole Source Purchasing .............................................................................................11
6.3 Emergency Purchasing...............................................................................................11
6.4 Cooperative Agreement Purchasing ...........................................................................12
6.5 Routine Expenditures for Utilities, Payroll and Other Services ....................................12 SECTION 7 – CREDIT CARD CHARGES ................................................................................12
7.1 Credit Card Issuance ..................................................................................................12 1 SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT ..............................................14
8.1 Requirement ...............................................................................................................14
8.2 Exceptions ..................................................................................................................14 SECTION 9 – PAYMENT OF INVOICES ..................................................................................15
9.1 Receipt of Goods and Services...................................................................................15
9.2 Invoice Process ..........................................................................................................15 SECTION 10 – CONTRACT MANAGEMENT ...........................................................................15
10.1 Responsibilities...........................................................................................................15
10.2 City Attorney Approval ................................................................................................15
10.3 Execution....................................................................................................................16
10.4 Control of Contract......................................................................................................16 SECTION 11 – DISPOSAL OF SURPLUS PROPERTY ...........................................................16
11.1 General.......................................................................................................................16
11.2 Value Exceeding $5,000................................................................................................16
11.3 Value of $5,000 or Less ..............................................................................................16
11.4 Donations to Other Agencies .........................................................................................17 SECTION 12 – DEFINITIONS...................................................................................................17
11.1 Capital Asset...............................................................................................................17
11.2 Force Account.............................................................................................................17
11.3 Job Order Contract .....................................................................................................17
11.4 Public Project..............................................................................................................17
11.5 Sole Source Purchase ................................................................................................17
11.6 Surplus Property .........................................................................................................18
ATTACHMENTS
A Emergency Purchasing and Disaster Policy .............................................................. 18 B Credit Card Agreement..............................................................................................22 2 SECTION 1 – OVERVIEW
1.1 Introduction
The purpose of this chapter is to guide City of Grover Beach employees in purchasing goods and services on behalf of the City by establishing responsibilities and authorization levels, outlining statutory requirements, and setting forth the policies and procedures that govern purchasing activities.
These guidelines are not intended to address every issue, exception or contingency that may arise in purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources. Any questions about purchasing activities or proper purchasing process should be referred to the Administrative Services Department.
Definitions for certain terms in this policy are included in Section 11 of this policy.
1.2 Purchasing System
Chapter 8 of Article II of the City of Grover Beach Municipal Code (GBMC), which incorporates these Policies (this Purchasing Policy) and the policies and procedures set forth in this chapter shall govern the City’s purchasing system, in addition to applicable sections of the Public Contracting Code to the extent the act preempts local regulations governing public works contracts (see California Public Contract Code Sections 20100, et. seq.). This system has been developed to achieve the following objectives:
• Secure goods and services at the lowest cost possible commensurate with quality requirements and the City’s needs;
• Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City;
• Ensure appropriate levels of competition and provide equal opportunities for all qualified vendors;
• Standardize procedures where appropriate to achieve consistency in purchasing practices in adherence to City policies and goals;
• Coordinate citywide purchasing for commonly used items.
1.3 Types of Purchases
The type of purchase and the estimated cost of the purchase determine the formality of the process by which the purchase shall be made. The City has identified three basic types of purchases:
• Purchases of Supplies, Materials, Equipment and General Services. Purchases or contracts for supplies and equipment, as well as operating and maintenance services.
• Purchases for Public Projects. Purchases for public projects, as defined by Public Contracting Code Section 20161 (generally, contracts for construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work, including painting of any facility owned, leased or operated by the City and street or sewer work).
3 • Purchases for Certain Professional Services. Professional work provided to the City by specially trained and experienced individuals or firms regarding engineering, planning, architectural, landscape architectural, environmental, land surveying and construction project management.
• Purchases for Services from On-Call Contractors. Purchases of consultant services, made from a list of contractors deemed most qualified via a competitive Request for Statement of Qualifications process and approved by Council. On-call lists must be approved by Council at least every three years.
SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES
2.1 General Authority
The Table below demonstrates the City’s purchasing authorities and responsibilities:
City Council • Adopt purchasing ordinance
• Adopt resolution to approve
purchasing policy
• Approve changes to the
purchasing policy involving
purchasing thresholds or
authorities
• Approve purchases as required
under Section 4 of this policy
• Delegate authority to City
Manager/staff for purchases within
certain cost thresholds and
approved budget
City Manager • Ensure implementation of
purchasing policies
• Approve administrative changes to
the policy, including changes to
processes and procedures, but
not including changes to
purchasing thresholds or authority.
• Serve as or designate “Purchasing
Agent”
• Award contracts as specified in
Section 4 of this policy
Administrative Services Director (or
designee)
• Develop and implement
purchasing policies and
procedures
4 • Review purchases and contract
awards for compliance with
purchasing policy
• Assist departments in
development of solicitations
• Create, manage and maintain
Blanket Purchase Orders
City Engineer • Approve specifications for public
projects
Public Works Director • Approve Job Order Contract task orders for public projects
Department Heads • Review and approve departmental
purchases and contracts as
specified in Sections 4 and 10
• Approve invoices or payment
requests for departmental
purchases
• Delegate purchasing authority to
department employees as
appropriate
IT Manager • Review all purchases of citywide
or departmental technology
systems, applications, software or
hardware for recommendation on
purchase
Authorized Employees • Purchase, receive and pay for
items in accordance with City
guidelines
• Review (and approve if delegated
by the Department Head) invoices
or payment requests for
departmental purchases
2.2 Grant Funding
Federal, State or other grant programs may require additional conditions that are more stringent than the City’s procedures. It is the responsibility of the department accepting the grant to ensure all grant provisions are complied with. Departments should adhere to Part 200 – Uniform Administrative Requirements for Federal Grants, including the 5 Section 200.318 general procurement standards, which can be found here:
https://www.ecfr.gov/current/title-2/part-200.
SECTION 3 – PURCHASING PROCESS
3.1 Permitted Purchasing Methods
Departments may use three methods to purchase goods and services: Purchase Order/Contract, City Credit Card and Emergency Purchases. The table below summarizes the dollar thresholds and requirements for each method. Note that work may be performed by Force Account, or with internal resources, if the Department Head determines internal resources have the needed ability/expertise and the total cost is less than $25,000.
Purchase Type Dollar Threshold Requirements
Contract/Purchase
Requisition/ Purchase
Order**
Within approved
budget
Must obtain all approvals as required by
Section 4
Credit Card Up to $5,000* Not permitted for purchases for services or Capital assets. Only employees
authorized by Department Heads may
make credit card purchases.
Emergency Purchase Within Budget* for
a General
Emergency
For a Proclaimed
Emergency or
Disaster, refer to
Attachment B
Only permitted if there is an immediate
and serious need that cannot be met
through normal purchasing procedures
that would seriously threaten the
functioning of City government, the
preservation of property or the health
and safety of any person consistent with
approved emergency declaration. All
emergency purchases must be reported
to the Administrative Services
Department as soon as is practicable.
* Limit/amount may be raised with City Manager approval ** Purchase Requisitions and Purchase Orders are not required, pending a new financial system
3.2 Purchase Requisitions/Purchase Orders
3.2.1. Blanket Purchase Orders/Standard Goods Contracts. The Administrative Services Department shall develop contracts and/or Blanket Purchase Orders with vendors for frequently purchased goods. The Administrative Services 6 Department shall maintain a list of citywide contracts and Blanket Purchase Orders for these purchases. City staff must use the City accounts or contracts when making related purchases, unless otherwise authorized by the Administrative Services Department and approved by the City Attorney. [THE REMAINDER OF THIS SECTION IS INTENTIONALLY LEFT BLANK PENDING IMPLEMENTATION OF FINANCIAL SYSTEM]
SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS
The required bidding process and level or approvals for any purchase is determined by the type of purchase (see Section 1.3 of this policy) and the cost of the purchase. Most purchases that do not fall within an exception listed in Section 6 of this policy require an informal or formal bidding process (See Section 5 of this policy which defines each bidding process). Note that the buyer for any purchase cannot serve as the approver of that purchase.
4.1 Supplies, Materials, Equipment and General Services The table below summarizes the bidding and approval requirements for purchases of supplies, materials, equipment and general services. Note that all purchases of technology systems, applications, software or hardware must be reviewed by the IT Manager.
Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Informal Quotes
Process*
Department Head
approves invoice or
PO
PO or contract
required
$50,001-$100,000 RFB Process City Manager
approves
PO or contract
required
More than $100,000 RFB Process City Council
approves contract
Contract required;
Contracts must be
reported to the City
Council in quarterly
reports
* Generally, staff should seek at least three quotes. A “no-bid” response may be considered a quote for this purpose. 7 4.2 Public Projects
The table below summarizes the bidding and approval requirements for Public Project purchases. Staff should also consult the Public Contracting Code Guidance provided by the Public Works Department.
Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 RFB RFP Process Department Head or
designee approves
invoice
PO or contract
required
$50,001-$100,000 RFB/RFP Process City Manager
approves PO
Contract or PO
required
$100,001-$200,000 RFB/RFP Process City Council
approves contract
Contract required
More than $200,000 RFB/RFP Process City Council
approves project
concept prior to
bidding process and
resulting contract
Contract required
8 4.2 Purchases of Certain Professional Services
For purchases of certain professional services, as defined in Section 1.3 of this policy, persons or firms must be selected on the basis of demonstrated competency and professional qualifications necessary for the performance of the services required and proposers must provide information about the cost of services under separate cover. The table below summarizes the bidding and approval requirements for each type of service under this section.
Purchase
Amount
Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Informal Quotes
Process*
Department Head
approves PO
PO or contract
required
$50,001-$100,000 Informal Quotes
Process*
City Manager
approves PO
Contract required
More than $100,000 RFB/RFP Process City Council
approves contract
Contract required
* Generally, staff should seek at least three quotes. A “no-bid” response may be considered a quote for this purpose. 9 4.3 On-Call Consultant Services
The table below summarizes the bidding and approval requirements for purchases of on-call consultant services, as defined in Section 1.3 of this policy.
Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Proposals from Oncall Consultants
Department Head
approves PO
Contract required
$50,001-$400,000 Proposals from Oncall Consultants
City Manager
approves PO
Contract required
More than $400,000 Proposals from Oncall Consultants
City Council
approves
Contract required
4.4 Contract Amendments and Change Orders
A purchase approver may amend a contract or approve a change order in an amount not to exceed 20% of the original contract amount without approval from the higher purchasing authority, provided that the original contract was within the approver’s authority, as noted in this Section 4, and the amendment or change order does not materially change the scope of services.
SECTION 5 – BIDDING PROCEDURES
For purchases that require a bidding process as shown in Section 4 of this policy that do not fall within the exceptions listed in Section 6 of this policy, staff must engage in one of the following competitive bidding processes describe below.
5.1 Request for Bids (RFB)
An RFB is a request to vendors to submit an offer or quote for specific, defined goods, products or construction. An RFB should be used when seeking a fixed price for goods with known specifications (e.g. Dell XPS 13 laptops). RFBs are used for Construction of Public Projects and when setting up a Job Order Contract (defined in Section 11 of this Policy). RFBs must be posted on the City’s designated solicitation site along with other desired noticing.
5.2 Request for Proposals (RFP)
An RFP is a request to vendors to submit a proposal for goods or services for which the exact specifications or methodology of providing the desired goods or services is not 10 defined. An RFP is generally used for more complex goods or services purchases. RFPs allow for consideration of factors other than price, including the qualifications of the vendor and the vendor’s ability to perform. RFPs must be posted on the City’s designated solicitation site along with other desired noticing.
5.3 Request for Qualifications (RFQ)
An RFQ is a request for a statement of qualifications for a certain class of vendors or consultants. RFQs are used to develop On-call or Master Agreements. RFQs must be posted on the City’s designated solicitation site along with other desired noticing.
5.4 Informal Quotes
When formal bidding is not required by the City’s purchasing policy, staff may seek informal quotes by verbal or written request. An informal or quick quote is a simple request for pricing on simple, low-cost goods or services. Staff should request quotes from at least three vendors, if available. If quotes are sought by verbal or written request, staff must create a quote summary to record the quotations received..
5.5 Bidding Criteria
The table below summarizes the requirements and process for each type of solicitation listed in Sections 5.1 – 5.4 of this policy.
RFB RFP RFQ Informal Quote
Goal Lowest Price Lowest
Responsible
Bidder
Most Qualified Lowest Price
Public Opening
Requirements
Open publicly
and read aloud
Open publicly
and pricing read
aloud
No public
opening.
Qualification
statements
made publicly
available
No public
opening
Evaluation
Process
Select lowest
responsive bid.
No scoring
Responsible
proposals
evaluated and
scored based on
qualifications.
Qualifications
evaluated and
scored (can
have pass/fail
responses). No
cost evaluation.
Select lowest
responsive
quote. No
scoring
Award Basis Lowest
responsive bid
Highest scored
proposal
Highest scored
submittal
Lowest
responsive
quote
11 SECTION 6 – NO-BID PURCHASING
6.1 Low-Cost Purchasing
As noted in the tables in Section 4 of this manual, no bidding process (formal or informal) is required for purchases of less than $5,000.
6.2 Sole Source Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, certain acquisitions in which the products or services may only be obtained from a single source may be purchased without engaging in bidding procedures.
Sole Source purchases must be justified in sufficient detail to explain the basis for suspending the usual competitive procurement process and approved by the Administrative Services Department before such a purchase is made.
Some examples of legitimate sole source purchases include the following:
• Purchases in which only one known source exists or there is no reasonable alternative source for the goods or services as determined by documented research • Purchases in which only one source meets the City’s business needs (e.g., compatibility with existing systems, unique features or services that meet the desired goals of the City, etc.).
• Purchases of proprietary items which only the manufacturer, owner, or designated re-seller is permitted to sell (this includes purchases in which purchasing from a nondesignated seller would result in nullification of manufacturer warranties) • Upgrades to existing systems where purchasing a different solution or product would result in significant additional costs (e.g., data conversion, re-training of staff, new system implementation costs)
• Purchases of services from a contractor with specific and unique knowledge of existing City systems, procedures or historical data that is critical to the project or City goals where use of another contractor would result in significant costs or project delays due to lack of such knowledge.
6.3 Emergency Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, purchases that are required to safeguard and immediate life, health or property interest may be made without a bidding process.
Section 6.3.1 – A purchase qualifies as an Emergency Purchase if all of the following are true:
• The City’s need cannot be met under the time constraints of the normal purchasing process and;
12 • The lack of equipment, goods or services would seriously threaten the functioning of City government, the preservation of property or the health and safety of any person.
Section 6.3.2 – City staff must not use the emergency purchase process to circumvent general purchasing policy or vendor licensing requirements. City staff should seek quotes and determine reasonableness of pricing when making an emergency purchase whenever possible.
Section 6.3.3 – Local Emergency Purchasing. If a local emergency is declared by the City Council, City staff must adhere to the Emergency and Disaster Purchasing Policy (see Attachment B).
6.4 Cooperative Agreement Purchasing
Section 6.4.1 – City staff may use established cooperative agreements involving other public agencies for purchases without a competitive bidding process, if those cooperative agreements were competitively bid. City staff is responsible for researching cooperative agreements to ensure the bidding process complies with City competitive bidding rules.
Section 6.4.2 – City staff should research the pricing for the goods or services being sought and compare the pricing set forth in the cooperative agreement is reasonable. If the pricing set forth in a cooperative agreement is not reasonable, City staff should initiate a competitive bidding process rather than leveraging the cooperative agreement.
6.5 Routine Expenditures for Utilities, Payroll and Other Services Routine expenditures that benefit several departments, such as telephone, utilities, debt service payments, and payroll benefit costs, shall be paid by the Administrative Services Department without the use of a Purchase Order Request. Computer spreadsheets, reports, or other coding information will be sufficient to use as backup documentation.
These procedures may be waived in the event of an emergency if it is in the public interest.
SECTION 7 – CREDIT CARD CHARGES
7.1 Credit Card Issuance
The Administrative Services Department will issue credit cards only to permanent employees who are approved by their Department Head.
13 7.1.1 Limits. Generally, City-issued credit cards shall have a credit limit of $5,000. However, the City Manager may approve an increase of this limit if written justification is provided by the Department Head.
7.1.2 City Business. City credit cards are for official City business only. No personal purchases may be charged to the card. Intentional charging of personal expenses on City credit cards is a misuse of City funds, and a serious breach of the City’s ethics policy. Doing so, even if the intent is to reimburse the City later, will result in disciplinary action, up to and including termination and legal action.
Minor incidental expense as a component part of a larger billing, such as personal calls on a hotel bill, may be allowed if reimbursed at the time the credit card billing is submitted for payment.
7.1.3 Travel Expenses. Credit cards may be used in paying for travel expenses.
However, the City’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.
7.1.4 Gratuities. Generally, purchases with City credit cards may include reasonable gratuities for services for which such gratuities are standard but should not exceed 20 percent of the total cost.
7.1.5 Comply with Rules. City credit cards may not be used to circumvent other purchasing rules in this manual. Additionally, City credit cards may not be used for the following:
• Cash advances, wire transfers, money orders, etc.
• Purchases of items for which the City has contracts (water meters, bulk fuel, etc.) unless it is an emergency situation, and approved by the Approving Official.
• Political or religious organizations.
• Court costs, fines, bail, or bonds.
• Rentals, except for small pieces of equipment to be used for less than a weekin duration or vehicle rentals related to travel.
• Temporary employees.
• Alcoholic beverages and tobacco products.
14 7.1.6 Cardholder Responsibility. Each cardholder is responsible for the security and safe keeping of the credit card and must sign the City’s Credit Card Agreement (See Attachment C – Credit Card Agreement). Cardholders should obtain itemized receipts for every transaction. Cardholders who fail to provide itemized receipts for purchases may be held personally responsible for charges.
If an item is billed incorrectly, the cardholder is responsible for contacting the vendor within 10 days of the transaction. The employee should notify Accounts Payable and should provide all documentation relating to the charge in a timely manner. Accounts payable will contact the bank and will pursue the matter until resolved.
7.1.7 Department Head Responsibility. Department Heads must authorize issuance of credit cards and develop and implement departmental procedures to be sure credit card purchases are approved and forwarded to Administrative Services in accordance with this manual, and in a timely manner. Department Heads must retrieve credit cards from the cardholder if the cardholder fails to adhere to the policies in this manual or separates from City service. When necessary, Department Heads must enforce disciplinary action associated with the misuse of credit cards.
7.1.8 Disciplinary Action. The Director of Administrative Services or authorized designee will notify Department Heads regarding misuse of City credit cards.
Department Heads will be responsible for all disciplinary action surrounding misuse of cards, or abuse of this policy. This will include cancellation of card privileges, and other action as deemed appropriate.
SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT
8.1 Requirement
The City requires most entities doing business within or transacting with the City to obtain a Business Tax Certificate, pursuant to GBMC Section 10202. Therefore, for most purchases, City staff must notify the vendor of the requirement and/or ensure that the vendor has a Business Tax Certificate before making the purchase. Whenever possible, City staff should direct purchases to vendors who already have a valid business license. Staff should contact the Administrative Services Department for a current listing of businesses who have valid Business Tax Certificates.
8.2 Exceptions
• Some businesses are exempt from obtaining a Business Tax Certificate (see GBMC Section 10215). For those businesses that are exempt, staff need not require proof of a Business Tax Certificate to make a purchase. 15 SECTION 9 – PAYMENT OF INVOICES
9.1 Receipt of Goods and Services
Items must generally be shipped to a City address or worksite. If the product will be shipped to an alternate location, this should be cleared through the Administrative Services Department inadvance.
9.2 Invoice Process
Once an invoice is received, staff should verify the goods or services were received in good working order or pursuant to the scope and terms of the contract, when applicable.
Upon verification, the Department should enter all necessary information in the Accounts Payable System provide the following information to the Administrative Services Department:
• That they are authorizing payment (i.e., use stamp)
• The amount that they are authorizing for payment
• The account number(s) that is to be charged
• Include vendor’s W-9 form if not already on file (should be checked with the Administrative Services Department)
• Attach a copy of the contract, if applicable
• Attach invoice/receipt/backup
SECTION 10 – CONTRACT MANAGEMENT
Purchases that require contracts, as noted in Section 4 of this policy, and any contract entered into on behalf of the City must adhere to this Section 10.
10.1 Responsibilities
Contract management is the primary responsibility of the department in charge of the project or services. Prior to requesting bids or proposals, the Department Director shall work with the City Attorney to ensure the contract is in proper legal form and shall ensure the contract is properly executed upon award. The Department Director shall also ensure that payment to contractors or vendors are in accordance with the payment terms and/or schedule within the contract.
10.2 City Attorney Approval
10.2.1 Unless otherwise exempted in this Policy, contracts must be reviewed and approved as to legal effect and form by the City Attorney prior to execution or submittal to the City Clerk for inclusion in the City Council Agenda. .
10.2.3 Templates. If staff uses a City Attorney-approved contract template for the purchase of goods or equipment and no changes are made, additional City Attorney approval and/or signature is not required.
16 10.3 Execution
Whenever possible, contracts that require approval of the City Council should be signed by the contractor prior to being brought before the Council and a copy of the contract shall be included in the Council agenda package submitted to the City Clerk before it is included into the Council agenda package. Contracts should be signed via electronic signature whenever legally permitted. Contracts that are signed by a corporation or any other legal entity other than an individual, should be verified by written delegation of the legal entity the party signing the agreement has authority to do so. The City Attorney can assist with the type and nature of written authority necessary for a binding agreement.
10.4 Control of Contract
The Director of the contracting department shall maintain a copy of each contract and shall provide a copy to the Administrative Services Department. Contracts should be maintained for at least three years from the date of final payment under the contract.
SECTION 11 – DISPOSAL OF SURPLUS PROPERTY
All departments shall notify the Administrative Services Department of existing materials, supplies or equipment that are no longer used or have become obsolete. Departments may sell or dispose of such property under the following Sections.
11.1 General
If disposing of any City property, staff should determine the property’s value and reason for disposal (ie: property is past useful life, property is obsolete or being replaced by updated equipment). Disposal of capital assets must be reported to the Administrative Services Department.
11.2 Value Exceeding $5,000
11.2.1. If the value of the equipment or goods exceeds $5,000, the City must publish a notice in a newspaper of general circulation and shall sell the property using one of the following methods:
(A) A notice inviting formal bids shall be published in a newspaper of general circulation and sale shall be made to the highest bidder. (B) The department may use a third party vendor to auction the items on behalf of the City.
11.2.2. The department may dispose of property with a value exceeding $5,000 only if it is determined to be unusable or if an attempted sale is not successful.
Disposal of such property must be approved by the City Manager.
11.3 Value of $5,000 or Less
If the value of the equipment or goods is $5,000 or less, the surplus property shall be offered to other departments, if feasible. If no other City department claims the property, it must be included in a list prepared by the Administrative Services Department and be 17 sold by informal bids to the highest bidder. If no bids are received or if the property has no resale value, the City Manager may approve the destruction of the property.
11.4 Donations to Other Agencies
If property may properly be donated to another governmental agency, staff shall make arrangements with that agency and notify the Administrative Services Department of property being donated and estimated value. Donations should be made on an “as-is” basis, without any express or implied representations or warranties under applicable law.
11.5 Disposal
Departments shall dispose of property at the City’s Corporation Yard. 11 – DEFINITIONS
For definitions of bidding processes, see Section 5 of this policy.
11.1 Capital Asset
Any asset, tangible or intangible, used in operations that has a service life of more than one year with a cost exceeding $25,000 for infrastructure and $5,000 for all other capital assets.
11.2 Force Account
Use of City assets, equipment or labor of City staff, rather than a contractor.
11.3 Job Order Contract
A competitively bid, fixed price, multi-year construction contract based on established or published unit prices via a unit price book (UPB) or a price list with a multiplier (termed coefficient) applied to the unit prices.
11.4 Public Project
A public project is “construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds . . . For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work regardless of whether any further construction work is conducted, and work performed during the postconstruction phases, including but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.” (See CA Labor Code Section 1720, CA Public Contract Code Section 20161).
11.5 Sole Source Purchase
A sole source purchase is when the City enters into a contract with a contractor without going through the typical competitive process as required by law because it deems that the contractor is the only source available that can meet the City’s 18 requirements or the purchase complies with the requirements of Section 6.2 of this Policy.
11.6 Surplus Property
Surplus property is tangible property (any property that can be physically relocated) that is no longer of use to any City department because it is obsolete, uneconomical to repair, or valued only for its base contents. Surplus Property may include anything from office supplies and furniture to vehicles and heavy equipment. Surplus property for purposes of this Policy shall not include real property as defined by State law.
ORDINANCE NO. 23-02
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, REPEALING OF CHAPTER 8 (PERFORMANCE OF PUBLIC PROJECTS; PURCHASING OF SUPPLIES AND EQUIPMENT; CONTRACTING FOR SERVICES), OF ARTICLE 11 (ADMINISTRATION) AND ADDING A NEW SECTION 2800 OF CHAPTER 8 (PURCHASING POLICY) OF ARTICLE II (ADMINISTRATION) OF THE GROVER BEACH MUNICIPAL CODE
WHEREAS, the City of Grover Beach ("City") is a General Law city organized pursuant to Article XI of the California Constitution; and
WHEREAS, this Chapter may be referred to as the "Purchasing Policy" and is adopted pursuant to the authority identified in this ordinance, including Government Code Sections 37103, 37350 et seq., 53060, and 54201 et seq., as well as the police power set forth in Article XI, Section 7 of the California Constitution; and
WHEREAS, This Ordinance applies to contracts for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative policy, and WHEREAS, it shall not be applied to purchases by elected officials not statutorily required to purchase in compliance with City policies or for whom purchases are not made by the City; and WHEREAS, when the procurement involves the expenditure of State or Federal assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory State and/or Federal law. This ordinance does not apply to the procurement of legal services; and
WHEREAS, the Purchasing Policy, is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., "CEQA") and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 because the approval of the Purchasing Policy will not result in a direct or indirect physical change in the environment and does not involve an irrevocable commitment of resources by the City.
NOW THEREFORE, BE IT HEREBY ORDAINED BY THE CITY COUNCIL OF THE CITY OF GROVER BEACH AS FOLLOWS:
PART 1. Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services), of Article II (Administration) is hereby repealed in total.
PART 2. A new Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) is hereby added as follows:
Attachment 2
Ordinance No. 23-02 Page 2
Chapter 8 - Purchasing Policy
Sec. 2800. The Purchasing Policy shall represent the procedures for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative pol icy. The Purchasing Policy Dated July 24, , 2023, and entitled "City of Grover Beach Purchasing Policy, Version no. 1" is hereby incorporated by reference as if set out in full and adopted by the Council establishing the purchasing procedures for the City which shall be implemented consistent with the provisions within the Purchasing Policy.
PART 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid.
PART 4. All ordinances and parts of ordinances in conflict with those sections amended or added herein are hereby repealed .
PART 5. Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty-first day after its final passage. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.
INTRODUCED at a regular meeting of the City Council held on July 24, 2023, and PASSED, APPROVED, and ADOPTED by the City Council on August 28, 2023, on the following roll call vote, to wit:
AYES: Council Members - Rushing, Weirick, Zimmerman, Mayor Pro Tern NOES:
Robert and Mayor Bright
Council Members - None
ABSENT:
ABSTAIN :
RECUSED:
Attest:
Council Members - None
Council Members - None
Council Members - None
WENDI SIMS, CITY
~ CLERK
Approved as to Form:
DAVID P. HALE, CITY ATTORNEY
KAREN BRIGHT, MAYOR
ORDINANCE NO. 24-__
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA ADDING SECTION 2801 (COUNCIL APPROVAL OR AWARD OF CONTRACTS) TO CHAPTER 8 (PURCHASING POLICY) OF ARTICLE II (ADMINISTRATION) OF THE GROVER BEACH MUNICIPAL CODE
WHEREAS, Grover Beach Municipal Code Article II, Chapter 8, regulates the purchasing policy of the City of Grover Beach (“City”); and
WHEREAS, the purchasing policy as approved by City Council allows for execution of certain specified agreements by City officers and authorized employees; and WHEREAS, certain grant applications, approvals and agreements are not addressed within the purchasing policy thereby requiring the Mayor or Mayor Pro Tem to execute all related documents; and
WHEREAS, the ability for City Council to delegate authority for City officers or authorized employees to execute necessary documents to carry out the Council’s directions and approvals will ensure the efficient administration of City business by avoiding unnecessary delays.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Grover Beach as follows:
SECTION 1. Section 2801 (“Council Approval or Award of Contracts”) of Chapter 8 (“Purchasing Policy”) of Article II (“Administration”) of the Grover Beach Municipal Code is hereby added to read as follows:
Sec. 2801. Council Approval or Award of Contracts. The Council shall approve or award and the Mayor or Mayor Pro Tem shall sign all contracts and/or agreements for which no contracting or signature authority has been established under this Chapter, unless another City officer or employee is otherwise authorized to execute such contracts or agreements. When authorized by Council, City Officers, as defined within Section 2105 of the Grover Beach Municipal Code, are hereby authorized to negotiate and execute any such contracts and/or agreements on the City’s behalf.
SECTION 2. SEVERABILITY. If any part of this Ordinance is held invalid for any reason by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of this Ordinance, and the City Council hereby declares that it would have passed the remainder of the Ordinance if such invalid portion thereof had been deleted.
SECTION 3. EFFECTIVE DATE. This ordinance shall take effect and be in force thirty (30) days from and after its final passage.
SECTION 4. PUBLICATION. Within fifteen (15) days after passage, the City Clerk shall cause this ordinance to be published in a newspaper of general circulation.
INTRODUCED at a regular meeting of the City Council held June 24, 2024.
Attachment 3
PASSED, APPROVED, and ADOPTED by the City Council at a regular meeting held on July 22, 2024, on the following roll call vote, to wit:
AYES: Council Members –
NOES: Council Members –
ABSENT: Council Members –
ABSTAIN: Council Members –
APPROVED:
__________________________
Karen Bright, Mayor
ATTEST:
____________________________________
Wendi Sims, City Clerk
APPROVED AS TO FORM:
_____________________________________
Robert Lomeli, City Attorney