Ione City Council
January 21, 2025

4908-5774-5168, v. 2
REGULAR MEETING STARTS AT 6:00 PM
Mayor Stacy Rhoades
Vice Mayor Jody Maita
Councilmember Dominic Atlan
Councilmember Alison LaFayne
Councilmember Jack Mitchell
AT 1 E. MAIN STREET, IONE, CA 95640

AND VIA ZOOM
https://zoom.us/j/2351961316?pwd=d3lWTW0zbVJLblpQNXBDQWtpZkRyUT09 Meeting ID: 235 196 1316 Passcode: 95640
Dial by Phone – 669-900-6833 Meeting ID: 235 196 1316 Passcode: 95640 NOTE: Public Comment will not be taken from Zoom
Tuesday, January 21, 2025

THE CITY OF IONE IS A GENERAL LAW CITY DEDICATED TO PROVIDING LEADERSHIP,

ACCOUNTABILITY, AND FISCAL INTEGRITY WHILE PROMOTING ECONOMIC OPPORTUNITIES AND MAINTAINING A HIGH QUALITY OF LIFE FOR OUR CITIZENS.

PLEASE LIMIT PUBLIC COMMENT/TESTIMONY TO FOUR MINUTES
Gov’t. Code §54954.3
The Ione City Council welcomes, appreciates, and encourages participation in the City Council Meeting. The City Council reserves the right to reasonably limit the total time for public comment on any particular noticed agenda item as it may deem necessary.

Full staff reports and associated documents are available for public review at the Office of the City Clerk, City Hall, 1 E. Main Street, Ione, CA. Hard copies may be obtained for $3.60 for pages 1- 5 and $.45 for each additional page. Documents that are not available when the agenda is posted will be made available for public review at the meeting.

A. ROLL CALL
B. CLOSED SESSION: None
C. PLEDGE OF ALLEGIANCE
D. APPROVAL OF AGENDA
4908-5774-5168, v. 2
E. PRESENTATIONS/ANNOUNCEMENTS: None
F. PUBLIC COMMENT: EACH SPEAKER IS LIMITED TO 4 MINUTES NOTE: This is the time for members of the public who wish to be heard on matters that do not appear on the Agenda. Persons may address the City Council at this time on any subject within the jurisdiction of the Ione City Council.

Please be mindful of the 4 minute time limit per person. Pursuant to the Brown Act, the City Council may not take action or engage in a detailed discussion on an item that does not appear on the Agenda. However, matters that require Council action will be referred to staff for a report and/or recommendation for possible action at a future Council meeting. Is there anyone in the audience who wishes to address the Council at this time? G. INFORMATION ITEMS:

All matters listed under this category are for information only with no action to be taken by the City Council.

1. December 2024 – Castle Oaks and the Wastewater Treatment Facilities Report

2. December 2024 – Fire Department Report
H. CONSENT CALENDAR:

All matters listed under this category are considered to be routine and will be enacted by one motion. Any item may be removed for discussion and possible action and made a part of the regular agenda at the request of a Councilmember(s).

1. Minutes of November 19, 2024, and December 3, 2024

2. Warrants – January 21, 2025
I. PUBLIC HEARING: None
J. REGULAR AGENDA:

1. Adoption of Resolution No. 2025-04 – Approving the Fiscal Year 2023/2024 Amador County Regional Traffic Mitigation Fee Program Annual Report

2. Adoption of Resolution No. 2025-06 Approving and Authorizing the City Manager to Sign Purchase Contract for the Vacant Lots at 105 S. Buena Vista Street and 125 E. Market Street

3. Adoption of Resolution No. 2025-05 Approving and Authorizing Execution of a First Amended and Restated Employment Contract for the City Manager 4908-5774-5168, v. 2

4. Approve Purchase of Fire Engine for Fire Department

5. Discussion of Start Time for City Council Regular Meetings and Closed Session Meetings

6. Continue Discussion of City’s Purchasing & Bidding Policy for Goods, Services, and Public Projects (Ione Municipal Code, Chapter 2.44)

7. Discussion of Sewer Line Responsibility of Homeowners

8. Capital Needs Update – Justin Granados, WaterStone, LLC – Oral Report

9. Oral Report by Finance Manager – Michael Ormsby

10. Approve Budget Amendment to Spend the Additional Funds to complete the various items needed and the Title 22 Report
K. REPORTS AND COMMUNICATIONS FROM CITY ATTORNEY
L. REPORTS AND COMMUNICATIONS FROM CITY MANAGER
M. COUNCIL COMMENTS/COMMITTEE REPORTS/FUTURE AGENDA ITEMS N. ADJOURNMENT

NOTICE REGARDING CHALLENGES TO DECISIONS
Pursuant to all applicable laws and regulations, including without limitation, California Government Code Section 65009 and or California Public Resources Code Section 21177, if you wish to challenge in court any of the above decisions (regarding planning, zoning and/or environmental decisions), you may be limited to raising only those issues you or someone else raised at the public hearing(s) described in this notice/agenda, or in written correspondence delivered to the City at, or prior to, this public hearing.

ADA COMPLIANCE STATEMENT
In compliance with the American with Disabilities Act, if you need special assistance to participate in this meeting, please contact City Clerk Janice Traverso at (209) 274-2412, ext. 102.

Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Agenda Item #G1

MONTHLY

OPERATIONS
REPORT
for the: City of Ione
Castle Oaks and the Wastewater Treatment
Facilities
Wastewater Services
December 2024
Agenda Item #G1
RE: DECEMBER 2024 MONTHLY OPERATIONS REPORT
Dear Mr. Lee:

WaterStone Services is pleased to present our monthly operations report detailing our operations and maintenance activities at your wastewater treatment facilities during the previous month. Our report addresses the following key areas of concern:

1. Monthly Operations Summary

2. Plant Compliance

3. Plant Process and Performances

4. Collection System

5. Items for Client Approval

6. Process Chemicals

7. Solids Disposal

8. Safety
Should you have any questions or concerns regarding this report or any aspect of our operation, please don’t hesitate to contact me.

Thank you for your time,
Sincerely,
Kathy Stone- Operations Manager
Justin Granados- Facility Manager

Agenda Item #G1

1.0 MONTHLY OPERATIONS SUMMARY
• COMPLETED ALL MONTHLY REPORTS
• SUBMITTED DMR REPORT TO WATER BOARDS- NO VIOLATIONS WERE NOTED • ALL PERMIT MONTHLY SAMPLES COMPLETED
• ALL CALIBRATION OF METERS, PROBES AND QA/QC COMPLETED • RESPONDED TO CALL-OUTS AND ALARMS
• WORK IN PROGRESS ON SOP’S FOR THE FACILITIES
• HELD STAFF MEETINGS WEEKLY TO DISCUSS FACILITY OPERATIONS/ISSUES AND UPCOMING

PROJECTS
• CHECKED AND INSPECTED LIFT STATIONS DAILY
• CHANGED OIL IN THE AERATORS
• GREASED AERATORS
• INSPECTED EYEWASH STATIONS AND EMERGENCY SHOWERS
• ALL FIRE EXTINGUISHERS CERTIFIED BY FIRE DEPARTMENT
• EXERCISED EMERGENCY GENERATOR ON 12/11
• COMPLETED FACILITY INSPECTION
• STOPPED IRRIGATING GOLF COURSE 11/11
• COMPLETED INSPECTIONS ON COLLECTION SYSTEM HOT SPOTS/CLEANING • INSPECTED ALL AREAS OF TERTIARY PLANT IN PREPARATION OF REPAIRS PROPOSAL FOR CITY.
• PERFORMED GRAB SAMPLES TO MONITOR WATER QUALITY AT TERTIARY PLANT FOR ANNUAL REPORT.
• MONITORED WATER FLOWS AND PRESSURES AT TERTIARY PLANT • WEED WHACKED AROUND POND IN A CONTINUED EFFORT.
• 12/18 STOPPED SENDING POTABLE WATER TO GOLF COURSE POND IN ORDER TO FLUSH TERTIARY WATER.
• BEGAN REPAIRING CHEMICAL FEED LINES THROUGHOUT TERTIARY. • CONTINUED PAINTING PIPES AND MOTORS WITH FADING PAINT. • DRAINED AND CLEANED TERTIARY CLARIFIER.
• SPRAYED WEEDS.
• MARKED MONTHLY USA’S THROUGHOUT TOWN.
• FARMERS STOPPED USING WWTP WATER TO IRRIGATE CROP.
• WORKED ON IWORKS IMPLEMENTATION
• FINALIZED ASSET LIST FOR CITY OF IONE.
• BEGAN PUTTING TOGETHER FINAL DRAFT OF CIP LIST FOR CITY OF IONE. • REMOVED DEBRIS/RAGS FROM AERATORS AS NEEDED
• WORKING ON FLOWMETER INSTALLATION
• PREPARING PROPOSAL FOR PLANT UPGRADES
• COMPLETED SAFETY TRAININGS AMONG STAFF
Agenda Item #G1

2.0 PERMIT COMPLIANCE
Central Valley Regional Water Quality Control Board provides a Permit for the Operation of the Pond Treatment System. No BOD excursions occurred in December. The WWTP Facilities achieved compliance with weekly parameters, as documented in TABLE 2.1 below.

TABLE 2.1
* Pond level too low to safely sample
TABLE 1.1 – PERMIT COMPLIANCE

POND PARAMETER PERMIT LIMIT FREQUENCY AVERAGE MONTHLY HIGH MONTHLY LOW 1 Dissolved Oxygen >1.0 X 3 Weekly 2.3 2.4 2.2
2 Dissolved Oxygen >1.0 X 3 Weekly 2.6 2.6 2.6
3 Dissolved Oxygen >1.0 X 3 Weekly 2.3 2.5 2.4
4 Dissolved Oxygen >1.0 X 3 Weekly 2.5 2.8 2.3
5 Dissolved Oxygen >1.0 X 3 Weekly * * *
6 Dissolved Oxygen >1.0 X 3 Weekly * * *
7 Dissolved Oxygen >1.0 X 3 Weekly * * *

POND PARAMETER PERMIT LIMIT FREQUENCY
1 pH 6.0-9.0 Weekly 7.1 7.2 7.0
2 pH 6.0-9.0 Weekly 7.0 7.5 7.0
3 pH 6.0-9.0 Weekly 7.4 7.8 7.4
4 pH 6.0-9.0 Weekly 7.2 7.2 7.0
5 pH 6.0-9.0 Weekly * * *
6 pH 6.0-9.0 Weekly * * *
7 pH 6.0-9.0 Weekly * * *

POND PARAMETER PERMIT LIMIT FREQUENCY AVERAGE MONTHLY HIGH MONTHLY LOW 1 Freeboard 2.0 Weekly 2.0 2.0 2.0
2 Freeboard 2.0 Weekly 2.0 2.0 2.0
3 Freeboard 2.0 Weekly 2.0 2.0 2.0
4 Freeboard 2.0 Weekly 2.0 2.0 2.0
5 Freeboard 2.0 Weekly 5.0 5.5 4.5
6 Freeboard 2.0 Weekly 9.75 10.0 9.5
7 Freeboard 2.0 Weekly 7.25 7.0 7.5

POND PARAMETER PERMIT LIMIT FREQUENCY AVERAGE MONTHLY HIGH MONTHLY LOW 1 Berm Condition Visual Weekly OK OK OK
2 Berm Condition Visual Weekly OK OK OK
3 Berm Condition Visual Weekly OK OK OK
4 Berm Condition Visual Weekly OK OK OK
5 Berm Condition Visual Weekly OK OK OK
6 Berm Condition Visual Weekly OK OK OK
7 Berm Condition Visual Weekly OK OK OK

POND PARAMETER PERMIT LIMIT FREQUENCY AVERAGE MONTHLY HIGH MONTHLY LOW 1 Seepage/Odor Visual Weekly OK OK OK
2 Seepage/Odor Visual Weekly OK OK OK
3 Seepage/Odor Visual Weekly OK OK OK
4 Seepage/Odor Visual Weekly OK OK OK
5 Seepage/Odor Visual Weekly OK OK OK
6 Seepage/Odor Visual Weekly OK OK OK
7 Seepage/Odor Visual Weekly OK OK OK
Agenda Item #G1
INFLUENT FLOW – Wastewater Treatment Pond Plant
The total Influent flow of 14.651 MGD of wastewater has been recorded for the month of December. The average daily influent flow for December was 0.473 MGD. A maximum daily flow of .787 MGD was recorded on December 29th. A minimum daily flow of 0.363 MGD on December 8th.

Graph 2.2 - Below trends the Influent flow for the month.

3.0 PLANT PROCESSES AND PERFORMANCE
Solids – Tertiary Treatment Plant
Solids sent to drying beds with small sludge blanket depths of less than a foot in clarifier.

Plant Loads
The plant loading consists of domestic wastewater.

Influent Headworks
Station is inspected daily. Filter screen cleaned as needed.

Aeration
Pond one floating aerator out. Pond five floating aerator out.

Farmer’s Irrigation
Zero discharge in the month of December.

0.000

0.100

0.200

0.300

0.400

0.500

0.600

0.700

0.800

0.900

INFLUENT FLOW
Influent Flow
Agenda Item #G1

4.0 COLLECTION SYSTEM

DESCRIPTION- WORK SUMMARY
ALL MANHOLE’S DOCUMENTED IN OUR HOT SPOT LIST WERE MONITORED IN THE MONTH OF

DECEMBER
TOTAL LENGTH INSPECTED 1,000’

5.0 ITEMS REQUIRING CLIENT APPROVAL

ITEM CRITICALITY STATUS COMPLETION
DATE

CHLORINE TANK
COVER

MEDIUM NEEDS

APPROVAL
N/A

TERTIARY FLOW
METER

HIGH APPROVED N/A

CIP PROJECTS HIGH NEEDS

APPROVAL
N/A

VACTOR TRUCK HIGH NEEDS

APPROVAL
N/A

6.0 PROCESS CHEMICALS
The process chemical inventory (chlorine, polymer) are the bulk of chemicals used at the plant.

All chemicals used are being tracked on a daily basis.

7.0 SOLIDS DISPOSAL
Sludge is separated from water and deposited in the solids sludge drying bed. When enough biosolids is collected, it will be analyzed and sent to the disposal site. The Annual Biosolids report will be submitted in February 2025.

8.0 SAFETY
Safety of the Waterstone Services staff, and the facility itself is a critical concern. Safety meetings topics for the month of December included: Safely operating in extreme weather conditions, CPR video tutorial, and Stretching/Lifting training. We are pleased to report that there were no workplace accidents or injuries in the past month.

Agenda Item #G2

CITY OF IONE

FIRE DEPARTMENT
December 2024 Status Report

TYPE OF CALL NUMBER OF CALLS
Emergency Medical 60
Medical Alarms 1
Vehicle accidents 7
Lift assist 15
Agency Assist 2
Station cover assignments 44
Lockouts 5
Mutual Aid / Fires 6
Support Services ( ReHab) 6
Mutual Aid to Sacramento Co (Harold) 1
Landing Zones 2
Flooding 1
Natural Gas Leak 2
Wild land fires / Escape burns 1/8 acre 2
Commercial alarm 1
Residential alarm 1
Animal removal 1
Tree down -Storm 2
Power lines down 2
CO alarm activation 1
Residential Structure Fire ( 400 blk W. Marlette $400,000 Loss) 1 Commercial Structure fire ( 00 Blk E. Main St $50. loss ) 1 Total Fire Loss: $400,050 Total Number of Incidents: 162

CITY OF IONE

FIRE DEPARTMENT
2024
End of Year Report
Month Total Number of Incidents
January 126
February 126
March 117
April 119
May 160
June 171
July 179
August 122
September 127
October 148
November 125
December 162
Total Fire Loss for the year: $ 750,550 Total wild land acres in the city: ½

Agenda Item #H2

Agenda Item #J1
RTMF/23-24__Annual Report
RESOLUTION NO. 2025-04
RESOLUTION APPROVING THE FISCAL YEAR 2023/24

AMADOR COUNTY REGIONAL TRAFFIC MITIGATION FEE

PROGRAM ANNUAL REPORT
WHEREAS, pursuant to its authority under Government Code 66000 et. seq., the City of Ione previously imposed regional traffic mitigation fees and amended said fees pursuant to Resolution Nos. 1626 and 1823; and
WHEREAS, the purpose of said fees is to mitigate the impact of new developments on the regional transportation system of Amador County; and
WHEREAS, The County of Amador and the County’s five incorporated cities have all collected and deposited all regional traffic mitigation fees with the Amador County Transportation Commission (“ACTC”) which has maintained the funds in a separate non co-mingled capital facilities fund (“capital facilities fund”) established for the above stated purpose pursuant to Government Code Section 66006(a) and (b); and WHEREAS, the ACTC and the City of Ione have made available to the public an annual program implementation report for fiscal year 2023/24 (“Annual Report”) which is hereby incorporated by reference; and WHEREAS, the Annual Report was prepared in accordance with Government Code Section 66001(d) and 66006(b)(1); and
WHEREAS, the City of Ione has reviewed the information provided in the Annual Report and determined the information contained therein is true and correct; and WHEREAS, the Annual Report reflects implementation of prior year recommendations of the Regional Traffic Mitigation Fee Oversight Committee as approved by the cities and County for programming and expending funds for projects consistent with the Amended and Restated Memorandum of Understanding (“MOU”) establishing the countywide Regional Traffic Mitigation Fee Program and the Regional Traffic Mitigation Fee Nexus Plan 2000-2025 (“Nexus Plan”); and WHEREAS, City of Ione has agendized and considered the Annual Report at a regularly scheduled City Council meeting and considered public comment concerning the Annual Report during said meeting.

NOW THEREFORE the City of Ione, County of Amador, State of California, finds and determines the following:

1. The above recitals are true and represent findings of the Ione City Council

2. The Ione City Council hereby approves the Annual Report for fiscal year 2023/24 as presented.

3. That all recommendations for funding are consistent with the MOU and the Nexus Plan as required.

4. The approval of the Annual Report and programming and expenditure of funds consistent with the previously approved MOU and Nexus Plan is not a “project” or otherwise an act requiring environmental review pursuant to the California Environmental Quality Act.

5. That all Regional Traffic Mitigation Fees previously collected and not yet expended are accounted for and are still needed for the purposes for which they were collected.

Agenda Item #J1
RTMF/23-24__Annual Report
Resolution No. 2025-04

January 17, 2025
The foregoing resolution was duly introduced and adopted by the City Council of the City of Ione at their regular meeting held on January 17, 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

__________________________
Stacy Rhoades, Mayor
ATTEST:
________________________
Janice Traverso, City Clerk
Amador County Transportation Commission
DATE:

TO:

FROM:

SUBJECT:

January 13, 2025
David Groth, City Manager, City of Amador City
George Lee, City Manager, City of lone
Carl Simpson, City Manager, City of Jackson
Margaret Roberts, City Manager, City of Plymouth
Tom DuBois, City Manager, City of Sutter Creek
Chuck lley, County Administrative Office, Amador County John Gedney, Executive Director
FY 23/24 Regional Traffic Mitigation Fee Annual Report
117 Valley View Way
Sutter Creek, CA 95685
209.267.2282
Please find the attached Annual Report for the Amador County Regional Traffic Mitigation Fee Program (RTMF) for Fiscal Year 23/24. Along with the Report, the attachments include:
• FY 23/24 revenue by jurisdiction
• Program expenditures by project
• Currently-adopted fee schedule
• Eligible Project Listing
• RTMF Reporting Form
Also included in the attachments is a draft resolution adopting the Annual Report provided in Word version for editing purposes.

All cities and the County are asked to appoint a representative to the RTMF Oversight Committee for the next calendar year to participate in the annual meetings as needed, to consider program obligations, expenditures, and policy.
cc:

Joyce Davidson, City Clerk, City of Amador City
Sandra Staples, Mayor, City of Amador City
Janice Traverso, City Clerk, City of lone
John (Jack) Georgette, City Clerk, City of Jackson
Jennifer Burns, Clerk of the Board, Amador County Board of Supervisors JG- Attachments
Attachment #J1A

CITY OF /O1\E
/ONE, C1 95640
DATE: January 21, 2024
Agenda Item #J2
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: George Lee
SUBJECT: Purchase of lots in city limits
RECOMMENDED ACTION: Authorize City Manager to sign purchase contract for the vacant lots on 105 S. Buena Vista St. and 125 E. Market St.

FISCAL IMP ACT: $ 82,500.00 from ARP A funds
BACKGROUND: City Council previously authorized City Manager to proceed in the purchase of abovementioned city lots. Attached is the purchase agreement from Sellers representative.

DISCUSSION: Purchasing the abovementioned lots would be of great benefit to the City of Ione as it could provide much flexibility for future city projects and or just parking itself.

ATTACHMENTS: Picture of lots

4927-3021-5440, v. 3
Agenda Item #J3
DATE: JANUARY 21, 2025
TO: CITY COUNCIL
FROM: JOSH VARINSKY, CITY ATTORNEY
SUBJECT: CITY MANAGER CONTRACT
RECOMMENDED ACTION:

Adopt Resolution approving and authorizing execution of a First Amended and Restated Employment Contract for the City Manager.

BACKGROUND/DISCUSSION:

The City Manager has an existing contract for employment with the City of Ione through the year 2027. At the City Manager’s request, new contract terms were proposed for the City Council’s consideration. Upon negotiation of the parties, the following terms are included in the contract attached with this staff report.

1. The City Manager’s contract will increase from $135,000 annually to $180,000 annually.

2. The term of the original contract expired in 2027. The term is being extended through April 2029.

3. The original contract provided severance equivalent to three (3) months. The updated contract will provide severance equivalent to eighteen (18) months. If the City Manager is terminated for-cause as described in the contract, severance would not apply.

4. As it pertains to benefits, the City Manager participates in the City’s standard cafeteria plan offered to employees. With this amendment, the City will pay the full cost of the premiums for the City Manager’s healthcare plan.

A resolution is included with this staff report approving and authorizing execution of the contract amendment.

FISCAL IMPACT:
4927-3021-5440, v. 3
Upon discussion with the Finance Director, there are funds available in the General Fund to pay for the increase in salary and benefits. The fiscal impact for FY 2024/25 is estimated to be approximately $38,000.

ATTACHMENT:

1. Resolution No. 2025-___

2. City Manager Employment Agreement
Attachment #J3A
4911-4811-0864, v. 1
RESOLUTION 2025-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IONE APPROVING AND

AUTHORIZING EXECUTION OF A FIRST AMENDED AND RESTATED EMPLOYMENT

CONTRACT FOR THE CITY MANAGER
WHEREAS, the City of Ione currently employs Mr. George Lee as its City Manager, as the administrative head of the City under the direction and control of the City Council; and WHEREAS, the City Council has agreed to update and amend certain provisions of the City Manager’s existing contract; and
WHEREAS, the updated contract for the City Manager is attached and incorporated hereto as Exhibit A.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Ione does hereby approve and authorize the Mayor to execute the agreement on behalf of the City.

The foregoing resolution was duly introduced and adopted by the City Council of the City of lone at their meeting held on _____________, ____, 20___, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Stacy Rhoades, Mayor
ATTEST:

Janice Traverso, City Clerk
Attachment #J3A
4911-4811-0864, v. 1

EXHIBIT A

CITY MANAGER EMPLOYMENT AGREEMENT
Attachment #J3B
4923-5691-3936, v. 5 1

FIRST AMENDED AND RESTATED EMPLOYMENT CONTRACT

THIS FIRST AMENDED AND RESTATED EMPLOYMENT CONTRACT (“Contract”) is made and entered into this ___ day of _______________, 2025, by and between the CITY OF IONE, California, a general law city organized under the laws of the State of California, (hereafter “Employer” or “City”), and GEORGE LEE, (hereafter “Employee”) (who may be referred to individually as a “Party” or collectively as the “Parties”), and shall be deemed effective as of the City Council’s approval of this Contract and its execution by the Parties (“Effective Date”). This Contract shall supersede the original contract and any other contracts, agreements, or understanding between the Parties with respect to Employee’s employment with City.

The parties agree as follows:

SECTION 1. DUTIES.

A. General.

Employer employs Employee as City Manager to perform the functions and duties specified in the laws of the State of California, the Municipal Code of the City of Ione, and the Ordinances and Resolutions of the City of Ione, and to perform such other duties and functions as the Council shall from time-to-time assign, pursuant to the terms and conditions of this Contract.

SECTION 2. TERM.

A. The term of this Contract shall commence upon the Effective Date and terminate at 11:59 P.M. on April 30, 2029. Notwithstanding this Section, Employee’s employment as City Manager is at-will as described in California Labor Code section 2922 and may be terminated at any time during the term of this Contract for any reason or for no reason subject only to the Municipal Code of the City of Ione, if applicable. Nothing in this Contract shall prevent, limit, or otherwise interfere with the right of Employee to resign at any time.

B. Notwithstanding any other provision in this Section 2, this Contract may be earlier terminated in accordance with Section 7 of this Contract.

C. Notwithstanding Employee’s efforts to wind up ongoing concerns with his personal affairs, Employee shall remain in the exclusive employment of Employer and shall neither accept other employment nor become employed by any other employer except upon written approval of Employer.

D. The term “employed” shall not be construed to include occasional teaching, writing, or consulting performed during Employee’s time off.

SECTION 3. DISABILITY.

If Employee shall, for whatever reason, become incapable of performing any of the essential functions of Employee’s position, even with reasonable accommodation by Employer, either:

Attachment #J3B
4923-5691-3936, v. 5 2
A. Permanently, or
B. For a period exceeding the period of leave available to the Employee under the Family Medical Leave Act or the California Family Rights Act, or accrued sick leave, whichever is longer, then Employee shall be deemed to have suffered a disability. Employer and Employee agree that the time period specified in Section 3.A. Above is a reasonable accommodation by Employer, and that granting longer time would be an undue hardship on Employer due to the importance of the City having a permanent City Manager.

SECTION 4. SALARY.

Employer agrees to pay Employee, effective January 1, 2025, at the rate of One Hundred Eighty Thousand and 00/100 dollars ($180,000.00) annually for services rendered as City Manager through the term of this Contract, a base monthly salary of Fifteen Thousand and 00/100 dollars ($15,000.00), payable in installments at the same time as other employees of the Employer are paid, subject to all withholdings for the payment of wages as may be required by law. To account for the effective date of the payrate increase pursuant to this Contract and the amount Employee has actually been paid pursuant to the rate specified in the original contract, City shall retroactively pay Employee the difference between his former rate and his current rate between January 1, 2025, and the first pay period following the execution of this Contract at which time Employee’s regular pay check shall reflect the rate specified herein. After the execution of this Contract, if the Employer provides a cost-of-living adjustment (“COLA”) to all employees of the City, Employee shall be entitled to the same COLA. For purposes of calculating future base monthly salary increases as a result of a COLA, the amount of the COLA shall be applied only to the base month salary set forth in the City Salary Schedule. The City Council shall have the discretion to increase Employee’s base monthly salary at any time.

SECTION 5. HOURS OF WORK.

Employee’s employment as City Manager is classified as “exempt” pursuant to federal and state wage and hour laws. Employee is expected to devote a great deal of time outside normal office hours to business of Employer. To that end, Employee will be allowed to take compensatory time off as he shall deem appropriate, during said office hours.

SECTION 6. TECHNOLOGY.

City shall furnish Employee with a cellular phone and laptop computer for his use during the duration of this Contract, including any extensions.

SECTION 7. TERMINATION
This Contract, and thereby Employee’s employment with Employer, shall terminate upon the occurrence of any of the following events:

Attachment #J3B
4923-5691-3936, v. 5 3
A. The death of Employee.

B. The dissolution or bankruptcy of Employer.

C. The disability of Employee, as defined in Section 3 of this Contract.

D. The majority of the City Council votes, in accordance with the Municipal Code of the City of Ione, to terminate the Employee at a duly authorized meeting without cause.

E. If the Employer, citizens or legislature act or acts to amend any provision of applicable law which substantially changes the role, powers, duties, authority, or responsibilities of the Employee, the Employee shall have the right to declare that such amendments constitute termination.

F. If the Employer reduces the base salary, compensation or any other financial benefit of the Employee, unless it is applied in no greater percentage than the average reduction of all department heads, such action shall constitute a breach of this Contract and may be regarded as termination at the option of Employee.

G. If the Employee wishes to resign following an offer to accept resignation, or a suggestion that Employee resign, whether formal or informal, by any member of the City Council of Employer acting as representative of the majority of the City Council, then the Employee may declare a termination as of the date of the suggestion.

H. Breach of contract declared by either party with a thirty (30) day cure period for either Employee or Employer. Written notice of a breach of contract shall be provided.

I. Conviction of Employee of any public offense which is a felony, and/or involves moral turpitude, and/or the punishment for which includes a prohibition of holding public employment.

SECTION 8. SEVERANCE PAY
If this Contract is terminated because of the reasons specified in Section 7.D., 7.E., 7.F.,

7.G., or an uncured breach by Employer pursuant to 7.H., Employer shall pay severance pay to Employee in an amount equal to Eighteen (18) Months’ salary if termination occurs prior to the last Eighteen (18) Months of the term of this Contract. If the Contract is terminated as set forth in this Section during the last Eighteen (18) Months of the term of this Contract, Employer shall pay severance pay to Employee in an amount equal to the number of months remaining of the term of this Contract and, except as otherwise provided by this Contract or by law, Employee shall be precluded from recovering anything else of value from Employer by reason of the termination.

No severance shall be paid if the Contract is terminated voluntarily by Employee, for reasons specified in Section 7.A, 7.B, 7.C, or 7.I, or by Employer for-cause, set forth as follows.

Termination “for-cause” means that five (5) members of the City Council have determined, based on substantial evidence, that Employee engaged in gross misconduct that would warrant the immediate dismissal of any regular City employee, or Employee’s continued failure to substantially perform his duties under the just-cause standard. Prior to for-cause termination, Attachment #J3B
4923-5691-3936, v. 5 4
Employee must be given notice of any deficiency and an opportunity to correct it, unless the gross misconduct is self-evident.

Nothing in this Section shall abrogate the terms set forth in the Ione Municipal Code Sections 2.10.250 through 2.10.290.

If this Contract is terminated for any reason specified in Section 7, Employee shall be paid for all accrued vacation time and accrued paid holidays.

SECTION 9. VACATION AND SICK LEAVE.

Employee shall accrue vacation, sick, or other Employer-authorized, leave, in the same manner as other employees of the City.

SECTION 10. PERSONAL AFFAIRS LEAVE
A. During the initial six (6) months following the Effective Date of this Contract, Employee shall be entitled to take one (1) day per week as leave to attend to personal affairs (“Personal Affairs Leave”).

B. Personal Affairs Leave shall not exceed one (1) day per calendar week. Personal Affairs Leave shall not accumulate from week to week and shall not carry over into subsequent weeks or months.

C. Employee shall provide the Employer with reasonable advance notice of his intention to take Personal Affairs Leave, whenever possible.

D. If the Employee’s Personal Affairs Leave significantly impacts ongoing projects or responsibilities, the Employee and Employer shall work together to develop alternate arrangements, such as adjusting working schedules or redistributing tasks.

E. This Section 10 shall automatically terminate upon completion of six (6) months continuous employment commencing on Effective Date of this Contract. Thereafter, Employee and Employer shall be subject to the standard leave policies in the same manner as other employees of the City.

SECTION 11. DISABILITY, HEALTH AND LIFE INSURANCE.

Employee shall be provided the same disability, health, dental, vision and life insurance that is presently provided other management employees. For the term of this Contract, in addition to the disability, vision, and life insurance benefits and the amount paid to Employee pursuant to the cafeteria plan as provided to other management employees, City agrees to pay the full cost of premiums due under Employee’s PERS Gold PPO plan, or a plan with equivalent benefits.

Attachment #J3B
4923-5691-3936, v. 5 5
SECTION 12. 457 PLAN.

The Employer shall provide a qualified 457 deferred compensation plan for Employee’s continued participation, and in addition to the base salary paid by the Employer to Employee, Employer agrees to pay an amount equal to three percent (3%) of Employee’s base salary into the designated plan on Employee’s behalf, in equal proportionate amounts each pay period.

SECTION 13. DUES AND SUBSCRIPTIONS.

Employer shall budget and pay for the professional dues and subscriptions of Employee necessary for his continuation and full participation in national, regional, state and local associations and organizations necessary and desirable for his continued professional participation, growth and advancement and for the good of Employer. The limit of such expenses shall be two hundred dollars ($200.00) monthly.

SECTION 14. PROFESSIONAL DEVELOPMENT.

A. Employer shall budget for and pay the travel and subsistence expenses of Employee for professional official travel, meetings and occasions adequate to continue the professional development of Employee and to adequately pursue necessary official and other functions for Employer, including but not limited to the State League of California Cities, International City/County Management Association, and such other national, regional, state and local governmental groups and committees thereof of which Employee may serve as a member.

B. Employer shall budget and pay for the travel and subsistence expense of Employee for short courses, institutes and seminars necessary for his professional development and for the good of the Employer.

C. The expenses specified in Section 14.A. and Section 14.B. shall be preapproved by the City Council.

D. Employer will perform a written annual performance evaluation within thirty (30) days of June 1, of each year of this Contract. In the event that Employer fails to timely perform the evaluation, Employee may issue a written notice under Section 7.H demanding that the Employer perform the evaluation within thirty (30) days of the date of the written notice. In the event the Employer fails to perform the evaluation within thirty (30) days of Employee’s written notice, Employee may declare a termination of the Contract under Section 7.H.

SECTION 15. REIMBURSEMENT OF EXPENSES.

To the extent Employee necessarily incurs reasonable expenses in the performance of his duties, which shall include mileage reimbursement, Employee will receive reimbursement therefor. Employee shall submit a claim form to Employer in the form and manner required of any employee.

Attachment #J3B
4923-5691-3936, v. 5 6
SECTION 16. INDEMNIFICATION.

Beyond that required under Federal, State or Local Law, Employer shall defend, save harmless and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager, or resulting from the exercise of judgment or discretion in connection with the performance of program duties or responsibilities, unless the act or omission involved willful or wanton conduct. The Employee may request, and the Employer shall not unreasonably refuse to provide independent legal representation at Employer's expense and Employer may not unreasonably withhold approval.

Legal representation, provided by Employer for Employee, shall extend until a final determination of the legal action including any appeals brought by either party. The Employer shall indemnify Employee against any and all losses, damages, judgments, interest, settlements, fines, court costs and other reasonable costs and expenses of legal proceedings including attorneys’ fees, and any other liabilities incurred by, imposed upon, or suffered by such Employee in connection with or resulting from any claim, action, suit, or proceeding, actual or threatened, arising out of or in connection with the performance of his duties. Any settlement of any claim must be made with prior approval of the Employer in order for indemnification, as provided in this Section, to be available.

Employee recognizes that Employer shall have the right to compromise or settle a claim or suit and agrees that he will sign any settlement agreement involving only the payment of money by the Employer or a third party. However, if the Employee is a named party to the suit and the settlement agreement requires that the Employee perform or refrain from performing any conduct, Employee's written consent must be given for the compromise or settlement, which consent shall not be unreasonably withheld. Further, Employer agrees to pay all reasonable litigation expenses of Employee throughout the pendency of any litigation to which the Employee is a party, witness or advisor to the Employer. Such expense payments shall continue beyond Employee's service to the Employer as long as litigation is pending. Further, Employer agrees to pay Employee reasonable consulting fees and travel expenses when Employee serves as a witness, advisor or consultant to Employer regarding pending litigation if those services occur after Employee is no longer an Employee of the Employer.

SECTION 17. BONDING.

Employer shall bear the full cost of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 18. OTHER TERMS AND CONDITIONS OF EMPLOYMENT.

A. Employer, in consultation with Employee, shall fix any such other terms and conditions of employment as it may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with or in conflict with the provisions of this Contract, the Municipal Code, or any other law.

B. Unless otherwise specifically provided herein, all provisions of the Municipal Code and regulations and rules of Employer (including but not limited to the City’s Employee Attachment #J3B
4923-5691-3936, v. 5 7
Handbook and Personnel Manual) relating to vacation and sick leave, retirement system contributions, holidays and other fringe benefits and working conditions as they now exist or hereafter may be amended, also shall apply to Employee as they would to other employees of the Employer.

SECTION 19. NOTICES.

Notices pursuant to this Contract shall be in writing given by deposit in the custody of the United State Postal Service, postage prepaid, addressed as follows. All notices sent by mail shall be accompanied by a copy sent by email.

(1) Employer: Mayor
City of Ione, 1 E. Main Street
Ione, CA 95640
Email: [email protected]
with copy to: White Brenner LLP
Attn: Joshua Varinsky
1608 T. Street
Sacramento, CA 95811
Email: [email protected]
(3) Employee: GEORGE LEE
13818 Fiddletown Road
Fiddletown, CA 95629
Email: [email protected]
Alternatively, notices required pursuant to this Contract may be personally served in the same manner as is applicable to civil judicial process. Notice shall be deemed given as of the date of personal service or as of the date of deposit of such written notice in the course of transmission in the United States Postal Service.

SECTION 20. GENERAL PROVISIONS.

A. The text herein shall constitute the entire agreement between the Parties and supersedes all other agreements or understandings, either oral or in writing between the Parties with respect to the City’s employment of Employee. This Contract can be amended or modified only by a subsequent written agreement executed by each Party.

B. This Contract shall be binding upon and inure to the benefit of the heirs at law and executors of Employee.

C. This Contract shall become effective on the date first written above.

D. If any provision, or any portion thereof, contained in this Contract is held unconstitutional, invalid or unenforceable, the remainder of this Contract, or portion thereof, shall be deemed severable, shall not be affected and shall remain in full force and effect.

Attachment #J3B
4923-5691-3936, v. 5 8
IN WITNESS WHEREOF, the City of Ione has caused this Contract to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk, and the Employee has signed and executed this Contract, both in duplicate, as of the dates set forth below. "EMPLOYER"

CITY OF IONE

By:

STACEY RHOADES, Mayor
Date:

ATTEST:

JANICE TRAVERSO, City Clerk
APPROVED AS TO FORM:

Joshua Varinsky, City Attorney
"EMPLOYEE"
By:

GEORGE LEE
Date:

Agenda Item #J4
DATE: January 16, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: KEN A. MACKEY – FIRE CHIEF
SUBJECT: PURCHASE OF A NEW/USED WILDLAND FIRE ENGINE
RECOMMENDED ACTION:

Purchase a 2019 Freightliner 4X4 Type 3 Urban Interface Wild land fire engine to replace one of the current 1991 International wildland fire engines that is 34 yrs. old FISCAL IMPACT: $322,786.68
The funding will come from the department’s apparatus account that is income earned from strike teams, Cal Fire cover assignments, or local fires with Cal fire. This price includes all taxes and fees. The purchase of this engine is half the price and without a two year wait if we were to purchase a new engine
BACKGROUND:

The Department currently operates as our first out units during the wild land fire season two 1991 International wildland urban interface fire engines, that were purchased used.

The normal service life of a fire engine is 20 years. Parts are becoming difficult to locate and even with proper maintenance parts and reliability has become a major concern.

DISCUSSION:

The department found the attached fire engine with low mileage, 28,759, and is in excellent like new condition that meets the current vehicle standards by NFPA and CALFIRE SPECS:

Freightliner with a L9 diesel, Allison automatic 3000 HME 4-person cab 500 Gallon per minute main pump
200 Gallon per minute auxiliary pump (pump and roll for mobile attack) ATTACHMENTS: Photos

4933-6693-3776, v. 5
Agenda Item #J5
DATE: JANUARY 21, 2025
TO: CITY COUNCIL
FROM: JOSH VARINSKY, CITY ATTORNEY

GEORGE LEE, CITY MANAGER
SUBJECT: CONSIDERATION / DISCUSSION OF THE START TIME FOR CITY OF

IONE REGULAR MEETINGS AND CLOSED SESSIONS
RECOMMENDED ACTION:

The Council should consider the information contained in this staff report, discuss its preferred time to hold closed session meetings, and direct staff accordingly.

BACKGROUND/DISCUSSION:

Under the Brown Act, the City Council is required to establish a time and place for holding regular meetings. (Gov. Code § 54954.)
Under the Ione Municipal Code, regular meetings of the City Council occur on the first and third Tuesday of each month at 6:00 pm. (Ione Municipal Code § 2.04.020.) The Council has discretion to decide the time and method of holding closed sessions. In exercising its discretion to hold a closed session in accordance with the Brown Act, the Council has several options, including the following:

1. Closed sessions can be held at the beginning of a regular meeting at 6:00 pm, before consideration of the open session agenda items.

2. Closed sessions can be held at the end of a regular meeting, after consideration of all open session agenda items.

3. Closed sessions can begin before 6:00 pm. This can be done by several methods. One option is to hold the closed session by calling a special meeting in accordance with Brown Act requirements. Alternatively, the Council can choose to amend the Ione Municipal Code to specify that the closed session portion of the meeting will occur before 6:00 pm.

Amending the Ione Municipal Code would require that an ordinance be prepared and brought back to Council for introduction and adoption at future meetings. 4933-6693-3776, v. 5
Also attached with this staff report is the provision from the Brown Act with the requirements for special meetings, and relevant provisions from the City Council Protocol Manual.

FISCAL IMPACT:

Preparing and drafting an ordinance requires staff time and resources.

ATTACHMENTS:

1. Brown Act Statute – Special Meetings (Gov. Code § 54956)

2. Excerpts from the City Council Protocol Manual

Agenda Item #J6
DATE: JANUARY 21,2025
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ANDREA BONHAM, MANAGEMENT ANALYST
SUBJECT: PURCHASING AND BIDDING POLICY
RECOMMENDED ACTION:

Staff recommends that the council review and provide direction to staff.

FISCAL IMPACT: $0.00
BACKGROUND:

Ordinance 2.44 of the Ione, CA Code of Ordinances directs staff on how to use budgeted funds for purchases and contracts. Chapter 2.44.140 – Expenditure categories reads, “Purchases, which include those made by purchase order (PO), written agreement, amendment or change order that require city expenditures, are classified into five categories based on the anticipated expenditure amount. Each category establishes an authorization level, procurement method, and maximum term, which shall apply unless specially exempted in accordance with this policy.” At the January 3rd meeting staff presented possible changes to the City of Ione purchasing and bidding policy for review and direction.

Direction was given to staff to bring additional information to the January 21st meeting. Council directed to include a background of the ordinance, the previous finance committee direction and current suggested policy changes.

ATTACHMENTS:

A. Ordinance 2.44 – Current Purchasing and Bidding Policy B. Finance Committee Policy Changes
C. Current Suggested Policy Changes
D. Purchasing and Bidding Worksheet
Attachment #J6A

Attachment #J6B

CITY OF IONE
Chapter 2.44 – PURCHASING AND BIDDING POLICY

2.44.010 – Established.

The City of Ione hereby establishes a purchasing and bidding policy under the direction of the City Manager and Finance Office Director.

2.44.020 – Intent.

The Purchase and Bidding policy provides a fair and equitable process for all interested and qualified vendors in providing a bid to the City. The City will make an award in a manner consistent with the City Purchase and Bidding Policy. Any exceptions to this Policy must be approved by the City Council. The City Council may, by majority vote and in accordance with its fiduciary responsibilities, approve expenditures of any amount, for any length of term, not otherwise inconsistent with any applicable law.

2.44.030, 2.44.040 – Reserved.

2.44.050 – Duties.

The duties of the City Manager and /or Finance Office Director, or their designee, shall be to make and provide all purchases of materials and services for the city:

A. As are required and requested by the various departments and activities of the city which are usual, normal and necessary for the achievement of the end objective of said departments and are within and contemplated by the regularly adopted budget of the city for said department or departments; and
B. As requested by various departments and as specifically authorized by the city council, whether included within or without the then valid budget for said city.

2.44.060 – Rules, Regulations and Definitions.

The city purchasing department will set up and submit to the city council, for its approval, and within 60 days after the appointment by the city council of the purchasing agent, proposed rules and regulations with respect to the policy of purchasing, the manner of purchasing and the coordination of such purchases with budgetary provisions and limitations, and, when such rules and regulations have been adopted by the city council, then, and continuing from the date of said adoption until otherwise modified, such rules and regulations shall afford direction to the city purchasing department and to the city purchasing agent in the exercise of the duties, responsibilities and authority granted by this chapter.

Definitions:
“City Manager” means the appointed City Manager or a designee authorized to act on behalf of the City Manager.
“Department Director” means the city employee or consultant authorized to act as the head of a city department or authorized designee acting on behalf of the director, regardless of title.

2.44.070 - Chapter not to affect state law.

No provision in this chapter abrogates or alters the basic legal requirements for competitive bidding for materials and services where otherwise required by state law.

2.44.080 - Local preference program.

A. Definition. "Local business" means a vendor, contractor, or consultant who has paid its local business tax to the City of Ione at least 24 months prior to bid or proposal opening date; does business in the City of Ione by providing goods, services, or construction; and maintains a physical business address located within the 95640 ZIP Code and performs business within such geographical limit on a day-to-day basis. Post office boxes shall not be used for the purpose of establishing said physical address. However, should there be a lack of bids by a local business, preference will be next given to bidders within Amador County and then to all others in that order.

B. Local Preference in Purchasing. In bidding for, or letting contracts for procurement of, supplies, materials, and equipment, as described in the purchasing policies of the city, the city council, or other authorized purchasing authority, may give a preference to local businesses in making such purchase or awarding contracts in an amount not to exceed five percent of the local business' total bid price.

The total bid price shall include not only the base bid price, but also all alterations to the base bid price resulting from alternatives which were both part of the bid and actually purchased or awarded by the city council or other appropriate authority.

C. Local Preference for Services. In awarding contracts for services, including consultant services, preference to local businesses shall be given whenever practicable, and, the contractor or consultant will also, to the extent legally permitted, solicit applications for employment and proposals for subcontractors and sub-consultants for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible.

D. Local Preference in Public Works Contracts (Sub-Contracting).

1. A contractor shall use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose work force resides within the 95640 ZIP Code.

2. A "good faith" effort, includes but is not limited to, the following or similar actions to recruit and maintain a work force that resides within the 95640 ZIP Code. a. Contact local recruitment sources to identify qualified individuals. b. Advertise in local trade papers and local newspapers of general circulation in the 95640 ZIP Code area.
c. If portions of the work are performed by subcontractors, identify qualified subcontractors whose workforce includes persons living within the 95640 ZIP Code or demonstrate that no local subcontractors are qualified to perform the work or supply the materials or equipment.
d. Develop a written plan to recruit a work force within the 95640 ZIP Code. e. Establish a goal for local hiring that is based upon the types of skills needed to complete the project with the city.

3. Any notice inviting bids that may require the use of subcontractors shall include notification of this section.

4. Every bidder must complete and sign under penalty of perjury a certification of goodfaith effort to hire a work force that resides within the 95640 ZIP Code or within Amador County if not within the City of Ione, on the form provided in the City of Ione's bid package, and submit said certification with the sealed bid no later than the date and time of the bid opening. Bidder shall attach to the Certificate documentary evidence supporting bidder's promise to meet or make a good-faith effort to meet the local hiring goal. The purchasing agent, as defined in Section 2.44.030, may reject as non-responsive the bid of any contractor proposing to use subcontractors that fails to comply with the requirements of this subsection.

5. If the city finds that a contractor to whom a city contract for public works has been awarded, or a subcontractor listed by contractor on a public works project, has failed to comply with the good-faith requirement during the performance of the contract, the city may disqualify the contractor and/or subcontractors for bidding or being listed in any bid on any city contract for public works for a period of one year from the date of the city's disqualification. The city clerk shall keep a current list of all disqualified contractors and subcontractors on file.

E. Exceptions to Local Business Preference Policy. The preference set forth in this Section shall not apply to the following purchases or contracts:

1. Goods or services provided under a cooperative purchasing agreement.

2. Purchases or contracts which are funded in whole or in part by a governmental entity, other than the city, and the laws, regulations, or policies governing such funding prohibit application of that preference.

3. Purchases made or contracts let under emergency or noncompetitive situations.

4. Application of the local business preference to a particular purchase, contract, or category of contracts for which the city council is the awarding authority may be waived at the city council's discretion.

2.44.090 - Small business preference.

A. In the bidding of a construction contract, procurement of goods, or delivery of services, the purchasing agent shall give a preference to a small business in an amount not to exceed five percent of the small business total price. The total bid price shall include not only the base bid price, but also all alterations to the base bid price resulting from alternatives which were both part of the bid and actually purchased or awarded by the city council or other appropriate authority. This preference shall not be in addition to any preference granted under Section

2.44.080(B).

B. As used in this section, "Small Business" means a business entity that has for at least the 24 months prior to submittal of its bid (i) held a current business license issued by the city and (ii) maintains its principal business office within the 95640 ZIP Code, and that either employs fewer than 100 employees or has average annual gross receipts of $10,000,000.00 or less over the previous three years.

C. No preference shall be given pursuant to this section where legal constraints on the expenditure of funds prohibit the giving of such contract.

2.44.100 - Verification of preference eligibility.

A. Any vendor or consultant claiming to be a local business or small business shall so certify in the bid in writing. The purchasing agent shall not be required to verify the accuracy of any such certifications, and shall have the discretion to determine if a vendor or consultant meets the definition of "local business" or "small business." The decision of the purchasing agent declaring that any person or business is not a local business or small business shall be subject to appeal.

B. Enforcement.

1. The information furnished by each bidder requesting a local business or small business preference shall be under penalty of perjury.

2. No person or business shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a local business or small business for the purpose of this chapter.

3. No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a city official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business or small business.

4. A business which has obtained city certification as a local business or a small business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall:

a. Pay to the city any difference between the contract amount and what the city's costs would have been if the contract had been properly awarded; b. Be subject to debarment from future award of contracts from the city at the discretion of the city.

2.44.110 - Quality and fitness.

The preferences established in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the city council and the purchasing agent to compare quality and fitness for use of supplies, materials, equipment, and services proposed for purchase and to compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this section shall in no way be construed to prohibit the right of the city council or the purchasing agent from giving any other preference permitted by law or this chapter.

2.44.120 - Pre-qualification of bidders for public works projects.

A. The city manager may designate public works projects or parts thereof that require specialized skills or cost in excess of $2,000,000.00 to be subject to prequalification of bidders.

B. To become a prequalified bidder, a contractor must submit to the city a prequalification application consisting of a standardized questionnaire, financial statement, and statement of experience. The forms for the questionnaire, financial statement, and statement of experience will be provided as part of the prequalification bidding packet.

C. The questionnaires and financial statements submitted by prospective contractors are not public records and are not subject to public inspection. Records of the names of contractors applying for prequalification status are public records and subject to disclosure. Documents submitted by a prospective contractor will be submitted under penalty of perjury.

D. The city will rate prospective contractors in accordance with the rating system attached as Exhibit "A" ("rating system"). The city will devise the questions, process and scoring of the rating system, so as to best evaluate a contractor's ability to successfully complete a particular project. The city will complete the rating system prior to closing of the period for submission of pre-qualification packages for any given project or pre-qualification process. The rating system will be applied uniformly and objectively to all prospective contractors, which have submitted properly completed documents in accordance with this policy.

The city may determine that only a certain number of the top scoring rated contractors shall be considered prequalified for a specific project. This determination shall be made prior to issuing the notice inviting pre-qualifications for the specific project.

E. When the city uses this pre-qualification process, the only contractors eligible to submit a bid are prequalified contractors. Further, such contractors shall submit bids only naming a prequalified subcontractor, if the city also pre-qualifies subcontractors in a similar manner as prime contractors. Any bid received listing an unqualified subcontractor will automatically be disqualified as nonresponsive. No bid shall be accepted for the project from unqualified contractors.

F. A contractor's pre-qualification status will immediately terminate if: (1) the contractor fails to give the city written notice of changes in the information previously provided within ten days before a bid opening; (2) the contractor's license is suspended or terminated by the California State Licensing Board; (3) the contractor is convicted of any crime of moral turpitude; (4) the contractor's application contains materially false information; or (5) the contractor's control over a public works contract, whether within the city's jurisdiction or otherwise, is terminated for cause.

G. The city shall give written notice to each contractor of the pre-qualification determination for that contractor. A contractor may appeal a rating of "not qualified," including a decision to revoke a previous qualified rating. There is no appeal from a finding that a contractor is not pre-qualified because of a failure to submit required information, because of failure to submit required information in a timely manner, because of the omission of requested information or because of the falsification of information. Without a timely appeal, the contractor waives any and all rights to challenge the decision of the City of Ione, whether by administrative process, judicial process, or any other legal process or proceeding.

H. A contractor may appeal the decision as follows:

1. By giving written notice of appeal to the city manager no later than ten days after receipt of the not qualified rating.

2. The notice of appeal shall contain at least the following:
a. The name, address and telephone number of the person making the appeal; b. A description of the determination which is the subject of the appeal, and the date of the notice of determination; and
c. A brief description of the grounds for the appeal.

I. The city will provide the contractor with a written statement of the basis for the not qualified determination and supporting evidence received from others or adduced as a result of investigation.

J. The informal hearing is to be concluded no later than five (5) business days after the City of Ione's receipt of the notice of appeal, and no later than five business days prior to the last date for the receipt of bids on the project. It is the intention of the City of Ione that the date for the submission and opening of bids will not be delayed or postponed to allow for completion of an appeal process.

K. The city manager or designee shall hear the appeal. The hearing shall be an informal one. The contractor may rebut evidence which is the basis for the determination and present evidence why the contractor is qualified.

L. The city manager or designee may affirm the earlier determination or reverse the determination and assign a different rating. This decision will be in writing containing a summary of the facts that led to the decision. The decision of the city manager is final. A contractor shall have no right to appeal that decision to the council.

M. The city manager may cancel the pre-qualification process at any time during the prequalification process, even after receiving and scoring applications. If the pre-qualification process is cancelled, the normal competitive bidding rules will apply. The city assumes no

liability for the cost a prospective contractor may have incurred by submitting an application for pre-qualification, and the submittal of a pre-qualification application is a waiver to claim any such cost or losses due to cancellation of the process.

2.44.130 – Administrative Guidelines

1. Vendor Limit. Combined purchase orders cannot exceed $100,000 per vendor, per fiscal year except in the case of major expenditures in which a vendor has participated in a public formal bidding process.

2. Change Orders or Amendments. A change order or amendment is a change in a contract term, other than as specifically provided for in the contract, that authorizes or necessitates any increase or decrease of the cost of the contract or in the time of completion that can be authorized by the City Manager or Department Director. A valid request for a change order or amendment must meet the following criteria:
a. the change was not reasonably foreseeable at the time that the contract was signed; b. the change must be relevant to the original contract; and c. the change is authorized by the contract provisions and in the best interest of the City.

3. Conflict of Interest. No employee, officer, Councilmember, or agent shall participate in the selection, award, or administration of a contract if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, Councilmember, agent, or any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated, herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.

Nothing in this Policy does or is to be construed as limiting the applicability of any other federal, state, or local laws and regulations governing prohibitions against financial conflicts of interest, including but not limited to the Political Reform Act (Government Code Section 81000 et seq.) and implementing regulations from the Fair Political Practices Commission (Title 2, Section 18110 et seq., of the California Code of Regulations), and Government Code Sections 1090-1999 and 1126. All such laws and regulations shall apply to every employee, officer, Councilmember, and agent of the City.

4. Local Vendors. Purchasing goods and services from local vendors which stimulate the local economy is encouraged but not required.

5. Green Purchasing Practices. The City is committed to Green Purchasing practices in obtaining goods and services. The City shall consider environmentally-preferable products when appropriate. Nothing in this policy requires the procurement of products that do not adequately perform their intended use, requires procurement that excludes adequate competition, or requires the procurement of products that are unavailable at a reasonable price or at a reasonable time. An environmentally-preferable product means a product that meets any of the following criteria:

a. is durable, repairable, reusable, or recyclable;
b. has minimal packaging, toxic content, or chemical-hazard potential; c. is resource or energy efficient in any or all phases of its manufacture, use, or disposal; or
d. its use or disposal minimizes or eliminates the City’s potential environmental liability.

2.44.140. – Expenditure Categories
Purchases, which include those made by purchase order (PO), written agreement, amendment or change order that require city expenditures, are classified into five categories based on the anticipated expenditure amount. Each category establishes an authorization level, procurement method, and maximum term, which shall apply unless specifically exempted in accordance with this Policy.

A. Expenditures of $200 or less (petty cash)
B. Expenditures of $201 to $1,000 (operational)
C. Expenditures of $1,001 to $15,000 (minor)
D. Expenditures of $15,001 to $25,000 (intermediate)
E. Expenditures over $25,001 (major)
A. EXPENDITURES OF $200 OR LESS
Authorization: Department Manager, who may delegate to a department manager Procurement: No bids or PO necessary; petty cash advances or reimbursement Term Limit: N/A
Note: These transactions take the place of ordinary ongoing purchases and shall be limited in use.

A cash disbursement or reimbursement may be obtained from the Finance department and must not exceed $200. A petty cash request form shall be completed and signed by the department director before submittal. The form shall include the date, description of the item to be purchased, and account number. Petty cash amounts will be advanced to accommodate miscellaneous minor expenditure amounts of $200 or less and for which normal payment provisions are not practical.

The Finance department will periodically audit petty cash expenditures as to form and regulations and may confirm purchases.

B. EXPENDITURES OF $201 to $1,000 DURING THE INITIAL TERM1 Authorization: Department Manager who may delegate to a department manager4 Procurement: No PO necessary; 1 informal bids/proposals2 whenever possible Term Limit: 3 years plus one 3-year extension

1 For purposes of this Policy, the “Initial Term” shall be either (i) a term under the contract or PO not to exceed one year, or (ii) a term longer than one year but not to exceed the maximum number of years authorized under a “Term Limit” (set forth below) as long as the contract includes a continuing obligation for performance by a contracting party and the City has an obligation for payment only for the services actually performed and accounted for by invoice or other monthly or regular periodic documentation acceptable to the City. Under any contract or PO, either the contracting party or City may terminate the contract or PO prior to the expiration of the Initial Term for the other party’s nonperformance. 2 “Informal” bid/proposal means verbal or written, via telephone, e-mail or other casual medium.

C. EXPENDITURES OF $1,001 to $15,000 DURING THE INITIAL TERM Authorization: Department Manager
Procurement: No PO necessary; 3 informal bids/proposals whenever possible3 plus city contract
Term Limit: 3 years plus one 3-year extension
D. EXPENDITURES OF $15,001 to $25,000 DURING THE INITIAL TERM Authorization: City Manager and City Council
Procurement: PO required plus 3 formal bids/proposals plus city contract4 Term Limit: 3 years plus one 3-year extension
E. EXPENDITURES OVER $25,001
Authorization: City Council
Procurement: PO required plus formal bids/proposals plus city contract Term Limit: no limit, any term approved by majority vote of the City Council F. REPORT TO CITY COUNCIL
Any and all expenditures by Department Director or City Manager in excess of $1,000 shall be reported to the City Council at the next regular council meeting following said expenditure. Said report may be in the form of a list provided by the City Manager describing the purpose and the amount of the expenditure.

2.44.150 – Procurement Procedures – Major Expenditures (over $100,000) A. FORMAL BIDS FOR MAJOR PUBLIC WORKS PROJECTS AND MAJOR SUPPLIES AND EQUIPMENT PURCHASES. Major public works projects and supplies and equipment are defined as purchases and projects having an actual or estimated value of greater than one hundred thousand dollars ($100,000). The solicitation and selection of bids and award of contracts shall comply with the Ione Municipal Code (public works contracts), and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Invitation for bids. An invitation for bids (the “invitation”) shall be published at least two times in a newspaper, electronic bulletin board or online submission source, City website, or other generally-recognized source of local public works contract information, at least ten days and at least five days prior to the date of the opening of bids. Invitations shall include general descriptions of the work to be performed, the time and place of the opening of bids, the place where bidders may obtain bid documents, the amount of bid security required, and the amount and nature of performance and labor materials security that will be required.

3 The city’s templates for contracts, agreements, amendments and change orders shall be used for category D and E purchases. The City Manager may allow for modifications of these templates or use of other contracts, agreements, amendments and change orders, or may require use of city templates for category B and C purchases when the City Manager determines it is prudent due to the level of risk exposure to the city, the need to spell out a complex scope of work, or any other reason s/he believes to be in the best interest of the city. To meet prevailing wage requirements any maintenance or repair project over $20,000 or construction project over $50,000 will require a written contract. 4 Designee must have signature authorization form on file with the Finance department, or active designation letter for a specific date range.

2. Form of bids. Bids conforming to the requirements of the invitation shall be submitted to the Department Director (the “Director”) in sealed packages or by other means which will prevent the divulging of bids prior to the stated time for opening of bids, all as specified in the invitation or the bid documents. Unopened bids should be clearly marked or otherwise identifiable as bids for the project to which they apply.

3. Bid security for public works projects. Bids for public works projects shall be accompanied by cash, cashier’s check, certified check, surety bond, or other form of security stated in the invitation or bid documents, in a sum equal to at least ten percent (10%) of the amount of the bid.

4. Opening of bids. At the time and place stated in the invitation, the bids shall be publicly opened and announced. The bid amounts shall be tabulated and the tabulation shall be available for public inspection at the Public Works Department during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

5. Review of bids. The Director shall review all bids received for completeness, accuracy, responsiveness to the invitation and the bid documents, and the City’s experience with or knowledge of the qualification and reliability of each bidder and shall prepare a recommendation to the City Council. Written amounts shall take precedence over associated numeric amounts. Mathematical errors, if found, shall be corrected and shall not disqualify a bid. The corrected total shall be the bid amount considered in determining the lowest responsible bidder and shall be the contract amount awarded if the bid is selected.

6. Award of contract. Contracts shall be awarded by the City Council to the lowest responsible bidder. Determination of the lowest responsible bidder shall be at the sole discretion of the City Council pursuant to findings and recommendations presented by the Director at the time of the award of contract.

7. Equal bids. If two or more equal low bids are received, the City Council may award the contract to any one of the equal low bidders by the following:
a. Select one bid; or
b. Reject all bids and re-solicit for bids; or
c. Reject all bids and authorize negotiated agreement if consistent with federal and state laws; or
d. Select one bid, which is the most responsible bidder; or e. Take any other action that the City Council deems to serve the best interest of the City.

8. No bids. When no bids are received from responsible firms, the City Council may accomplish the project in any manner it sees fit.

9. Rejection of bids. The City Council may reject any or all bids presented and may then direct that the project be re-advertised, may authorize negotiation of a contract with one or more

responsible firms, or may resolve that the project can be performed more economically by City forces, day labor, time and materials contract, or other method.

10. Execution of contract. The successful bidder shall execute the contract and furnish required performance security and labor and materials security when required pursuant to the bid document.

11. Forfeiture of bid security for public works projects. If the successful bidder fails to execute the contract and furnish security within the stated time, and said failure is not primarily due to actions or omissions of the City or to acts of god, the bidder shall forfeit the bid security provided. The City Council may then consider the bid of the next lowest responsible bidder.

12. Release of bid security for public works projects. Bidders are entitled to the return of their bid security unless forfeited as provided herein. The City shall retain all bid security until a contract has been executed or until the City Council rejects all bids at which time all bid security not forfeited shall be returned to the appropriate bidders.

13. Disposition of forfeited bid security for public works projects. The City shall retain forfeited bid security until a contract is awarded to another firm or the project is cancelled. The City shall retain an amount equal to the difference between the forfeiting firm’s bid and the new contract amount, if any, and an additional amount equal to administrative and other costs incurred as a result of the failure of the forfeiting bidder to enter into a contract and provide required security, and shall return any remaining amount of the bid security to the forfeiting bidder.

14. Performance security and labor and materials security for public works projects. The bidder to whom the contract is awarded (the “successful bidder”) shall furnish performance security and labor and materials security in amounts specified in the Invitation or Bid Documents.

B. FORMAL PROPOSALS FOR MAJOR PROFESSIONAL AND TECHNICAL SERVICES. Major professional and technical services are defined as services having an actual or estimated value of greater than one hundred thousand dollars ($100,000). The solicitation and selection of proposals and award of contracts shall comply with the Ione Municipal Code, and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Maintenance and Repair Services. Services intended to preserve and/or restore a public work to a clean, safe, efficient, and/or continually usable condition. Maintenance and repair services include, but are not limited to: carpentry, electrical, painting, plumbing, glazing, and other craftwork to preserve a facility in the condition for which it was intended; repairs, cleaning and other operations on machinery and other equipment permanently attached to a facility as fixtures; the mowing, pruning, and trimming of lawns, grass, trees, shrubs, bushes and hedges; and the regular removal or relocation of by-products or waste products accumulated at City facilities as the result of ongoing environmental processes.

2. The City Manager shall approve the preparation and release of all Requests for Proposals (RFP) and Requests for Qualifications (RFQ).

3. City staff shall determine, based on professional judgment, whether an RFP or an RFQ process best suits its needs and City staff, or a city-authorized consultant, shall prepare the RFP/RFQ document.

4. City staff, or a city-authorized consultant, or both shall prepare a list of suitable firms from known registries, professional organizations, and/or any other source.

5. City staff shall issue the RFP/RFQ to suitable firms, and may also advertise for competitive proposals.

6. City staff shall form a selection committee, which may include private consultants, to review the RFPs/RFQs received, and the selection committee may conduct interviews and/or hold discussions with proposing firms.

7. The selection committee shall rank the proposing firms according to the criteria specified in the RFP/RFQ and City staff shall notify firms of their position in the ranking.

8. City staff, or a city-authorized consultant, shall negotiate with the top-ranked firm to arrive at mutually-acceptable contract terms.

9. City staff, or its authorized consultant shall terminate negotiations and begin negotiations with the next-ranked firm if an agreement cannot be reached and continue this process until negotiations are successfully concluded or until the list of qualified firms submitting proposals is exhausted and an agreement cannot be reached.

10. The City Council shall award or reject the contract negotiated by City staff.

IV. PROCUREMENT PROCEDURES – NON-MAJOR EXPENDITURES ($25,000 & under)
INFORMAL BIDS OR PROPOSALS - Intermediate, Minor, and Operational Expenditure category projects, including minor public works projects, supplies, goods, equipment and minor services are defined as projects having an actual or estimated value of twenty five thousand dollars ($25,000) or less. The solicitation and selection of bids and award of contracts shall comply with the Ione Municipal Code for public works projects, service contracts, and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Informal bids shall be obtained verbally or in writing as dictated by this Policy from the open market and a written record of informal bids shall be kept with the related PO.

2. Bid security. Security and labor and material security shall conform to the requirements for major public works projects but may be modified or waived by the City staff person authorized to make the purchase if warranted and in the best interest of the City.

3. Execution and Award of Contracts. The City Council may award contracts, or the City Manager, or designated City Director, or staff personnel may award and execute contracts, set forth in Categories A, B, C or D of Section II above, and may waive competitive bidding requirements if in the best interest of the City, provided there are unencumbered appropriations in the fund accounts against which the expenses are to be charged.

V. EXEMPTION TO ANY PROCUREMENT METHOD
Justification for exemption to any required procurement method may be submitted to the City Manager or in the case of a major expenditure, to the City Council under the following circumstances:
a. Sole-source or select-source purchase. To determine that a sole-source or select-source purchase exists, rationale and/or proof must be provided in the purchase requisition. • Acquisition of brand name to insure compatibility with other city products and equipment. For example, standardization of fleet inventory (select-source). • Change orders - additions to an original scope of work when the original source is the only reasonable one to provide the additional goods, construction work or service needed (select-source).
• Only one manufacturer or vendor makes and/or sells the required equipment (solesource). b. State, County, or other public agency cooperative purchasing program or contracts utilizing funding or other participation from agencies which require conformance with state, federal or other contracting regulations.
c. The City does not require a contract for equipment purchases such as a specific type or brand of supply or part necessary for acceptable operation of a machine or device, or as required by warranty or contract on the machine or device; written documentation supporting a purchase must be provided.
d. Emergency purchases made necessary by an immediate threat to life or property or a substantial disruption of a vital public service.
• In advance of any local emergency, the City seeks to retain a list of available local businesses willing to provide necessary supplies, materials, equipment, services, food, care or shelter to the City through the Office of Emergency Management. Once the Emergency Operations Center (EOC) is activated, these memorandums will be activated.
• In the event of an emergency, the City Manager or designee may make immediate purchases of goods and services. Emergency purchases include any purchase required to prevent imminent danger or to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Every effort shall be made to obtain advance approvals or to obtain approvals as soon as possible following the purchase.

• The City is not required to engage in either formal or informal competitive bidding in an emergency. The City Council delegates to the City Manager and City Manager’s designee the authority to waive any procedures in the Policy that are not statutorily mandated when making emergency purchase of supplies, equipment, materials or services.
• The City Council shall ratify emergency suspension of procedures at the next properly noticed Council meeting following the emergency procurement and consider whether further suspension of procedures is required to abate the impacts of the emergency. e. The awarding officer(s) may waive irregularities in formal or informal bids received provided that it is in the best interest of the City to do so, and it does not result in unfair advantage to any bidder.
f. The City Council may authorize the award and execution of contracts without competitive bidding provided that such award is in the best interest of the City, or of the public health, safety and welfare.

2.44.160 - FEDERALLY FUNDED PROCUREMENTS
This section pertains to federal-funded projects and purchases.

Any procurement made pursuant to a federal award or subject to reimbursement, in whole or in part, with federal funds must comply with the City’s procurement procedures and all applicable Procurement Standards codified in 2 CFR 200.318-200.326 to include the following:
(a) Comply with general federal requirements and recommendations:
a. Comply with currently applicable Department of Homeland Security Standard Terms and Conditions.
b. Comply with the Solid Waste Disposal Act, 2 CFR section 200.322. c. Complete a cost or price analysis, including independent estimates, when necessary under 2 CFR 200.323.
d. Profit must be negotiated as a separate element of price, where required under 2 CFR 200.323(b).
e. Use of federal excess and surplus property is encouraged over purchasing new.
f. Geographical (local) preferences may not be used, unless expressly authorized by the awarding agency.
g. A time and materials contract or a “cost-plus” contract may not be used. h. Intergovernmental agreements are encouraged where appropriate. i. Procurements are subject to requirements for monitoring and oversights, see 2 CFR 200.318(b).
j. Records must be maintained by each department consistent with 2 CFR 200.318(i).

(b) Federal contractors must meet requirements of being responsible contractors (see CFR 200.318(h) and the City will take all necessary affirmative steps to assure minority businesses, women’s businesses and labor surplus area firms are used when possible. (c) Consistent with 2 CFR section 200.320, the City will use one of the following approved procurement methods: micro-purchases, small purchase procedures, sealed bids (formal advertising), competitive proposals, and noncompetitive proposals. (d) Contracts for federally-funded procurements must comply with 2 CFR section 200.326, by acknowledging that federal financial assistance will be used to fund the contract, requiring that the contractor comply with all applicable federal law, regulations, executive orders and applicable federal policies; and specifying the Federal Government is not a party to the contract.

I. GENERAL PROCUREMENT STANDARDS
A. Code of Conduct. As representatives of the City of Ione, all employees are expected to conduct themselves in a professional and ethical manner, maintaining high standards of integrity and the use of good judgement. Employees are expected to be principled in their business interactions and act in good faith with individuals both inside and outside the City.

The following Code of Conduct shall govern the performance, behavior and actions of the City, including employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of contracts:

1. No employee, director, appointed or elected official, volunteer, or agent of the City shall participate in the selection, award, or administration of contracts supported by a federal award if a conflict of interest is real or apparent to a reasonable person.

2. Conflicts of interest may arise when any employee, officer, or agent of the City, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a real or apparent financial or other interest in or a tangible personal benefit form a firm considered for the contract.

3. No employee, director, appointed or elected official, volunteer, or agent of the City shall do business with, award contracts to, or show favoritism toward a member of his or her immediate family, spouse’s family, or to any company, vendor, contractor, or parties to subcontractors who either employ or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of federal, state and local procurement laws and policies established to maximize free and open competition among qualified vendors.

4. The City’s employees, directors, appointed or elected officials, volunteers, or agents shall neither solicit nor accept gratuities, favors, gifts, consulting fees, trips, or anything having a monetary value in excess of twenty-five dollars ($25.00) from a vendor, potential vendor, family or employees of a vendor, contractor or parties to subcontractors.

5. Disciplinary measures for violations of the Code of Conduct by employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts

and grants, and the administration and supervision of contracts could lead to disciplinary measures, up to and including possible termination of employment.

B. Solicitation Procedures

1. Acquisition of unnecessary or duplicative items must be avoided. Consideration should be given to consolidating or dividing procurements to obtain a more economical purchase. When appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.

2. To foster greater economy and efficiency, and in accordance with efforts to promote costeffective use of shared services, the City shall enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.

3. Procuring federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs shall be utilized.

4. Value engineering clauses may be used in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.

5. Contracts shall only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

6. Records will be maintained sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The City Clerk will be the repository for said records and shall be maintained for period of no less than seven (7) years.

7. Time and material type contracts (open-ended) may be used only after a determination that no other contract is suitable. Time and material type contract means a contract where the cost to the City is the sum of the actual cost of materials and direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expense, and profit. Each time and material contract will set a ceiling price that the contractor exceeds at its own risk. A higher degree of oversight is required in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

6. The City alone will be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the City of any contractual responsibilities under its contracts. The federal awarding agency will not substitute its judgment for that of the City

unless the matter is primarily a federal concern. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction.

C. Competition

1. All procurement transactions must be conducted in a manner providing full and open competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids or requests for proposals will be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include, but are not limited to:
a. Placing unreasonable requirements on firms in order for them to qualify to do business;
b. Requiring unnecessary experience and excessive bonding; c. Noncompetitive pricing practices between firms or between affiliated companies; d. Noncompetitive contracts to consultants that are on retainer contracts; e. Organizational conflicts of interest;
f. Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement; and
g. Any arbitrary action in the procurement process.

2. Procurements shall be conducted in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

3. All solicitations will incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standard to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equivalent description may be used as a means to define the performance or other relevant requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated.

4. Bids and proposals shall identify all the requirements which the offerors must fulfill and all other factors to be used in evaluation bids or proposals

D. Methods of Procurement. In addition to the City’s purchasing policy approval limits, one of the following methods should be used:

1. Micro-purchase: Purchases where the aggregate dollar amount does not exceed $3,000, or the current limitation set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1, where this threshold is periodically adjusted for inflation.

2. Small purchase: Purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources.

3. Sealed bid: Purchases over the Simplified Acquisition threshold, which is currently $150,000.

Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the preferred procurement method for construction contracts, if the following conditions apply:
a. A complete, adequate, and realistic specification or purchase description is available; b. Two or more responsible bidders are willing and able to compete effectively for the business, and,
c. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally based on price.

If this method is used, the following requirements shall apply:
d. The invitation for bids will be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date for opening the bids;
e. The invitation for bids, which will include any specifications and pertinent attachments, must define the terms or services in order for the bidder to properly respond; f. All bids will be publicly opened at the time and place prescribed in the invitation for bids;
g. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts will only be used in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
h. Any or all bids may be rejected if there is a sound documented reason.

4. Competitive proposals: Purchases over the Simplified Acquisition threshold, which is currently $150,000. This procurement method requires formal solicitation, fixed-price or costreimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors. If this method is used, the following requirements apply:

a. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
b. Proposals must be solicited from an adequate number of qualified sources; c. The methods for conducting technical evaluations of the proposals received and for selecting recipients may include, but not limited to: oral interviews, references, past performance, availability to perform work, and certifications as determined by project scope.
d. Any response that takes exception to any mandatory items in this proposal process may be rejected and not considered;
e. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and, f. Competitive proposal procedures may be used for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services, though A/E firms are a potential source to perform the proposed effort.

5. Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when one or more of the following criteria are met:
a. The item is available only from a single source;
b. The public emergency for the requirement will not permit a delay resulting from competitive solicitation;
c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-federal entity; or
d. After solicitation of a number of sources, competition is determined inadequate.

E. Contract Cost and Price. A cost or price analysis shall be performed in connection with every procurement action in excess of the Simplified Acquisition threshold ($150,000) including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, independent estimates shall be made prior to receiving bids and proposals.

1. Profit shall be negotiated as a separate element of the price for each contract in which there is a no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

2. Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under Subpart E- Cost Principles of Part 200- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

3. The cost plus a percentage of cost and percentage of construction cost methods of contracting shall be used.

F. Federal Awarding Agency or Pass-Through Entity Review.

1. The City shall make available, upon request of the federal awarding agency or pass-through entity, technical specifications on proposed procurements where the federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the City desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or passthrough entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.

2. The City will make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
a. Procurement procedures or operations fails to comply with the procurement standards in this part;
b. The procurement is expected to exceed the Simplified Acquisition Threshold ($150,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
c. The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product;
d. The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or e. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.

3. The City is exempt from the pre-procurement review in paragraph 2 of this section if the federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part.

4. The City may request that its procurement system be reviewed by the federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third-party contracts are awarded on a regular basis;

5. The City may self-certify its procurement system. Such self-certification must not limit the federal awarding agency's right to survey the system. Under a self-certification procedure, the federal awarding agency may rely on written assurances from the City that it is complying with these standards. The City must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

G. Bonding Requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold ($150,000), the federal awarding or pass-through entity may accept the bonding policy and requirements of the City provided that the federal awarding agency or pass-through entity has made a determination that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

1. A bid guarantee from each bidder equivalent to five percent (5%) of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified;

2. A performance bond on the part of the contractor for 100 percent (100%) of the contract price.

A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract; and,

3. A payment bond on the part of the contractor for 100 percent (100%) of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

H. Contract Provisions. All federal funding source compliance provisions shall include the following:

1. Equal Employment Opportunity- All contracts, when funded in whole or partly by monies derived from the federal government (either directly or indirectly), shall contain a provision requiring compliance with Equal Employment Opportunity.

2. Davis-Bacon Act- Applies to construction contracts in excess of $2,000. It requires contracts to pay laborers and mechanics wages not less than the prevailing wage as determined by the Secretary of Labor and must be required to pay wages not less than once a week. Each bid solicitation published by the City must contain the current prevailing wage determination. Any award of the contract must be conditioned on contractor’s acceptance of that wage determination and suspected or reported violations of this act shall be immediately reported to the Federal awarding agency.

3. Copeland “Anti-Kickback” Act- Applies to construction contracts in excess of $2,000. It prohibits kickbacks in construction contracts funded with Federal monies. Contractors and subcontractors or subrecipients shall be prohibited from inducing 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 and suspected or reported violations shall be immediately reported to the Federal awarding agency.

4. Clean Air Act & Federal Water Pollution Control Act- Applies to contracts and sub grants in excess of $150,000. Contractor shall be required to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act.

Suspected or reported violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

5. Debarment and Suspension- Contracts funded with federal grant monies may not be awarded to contractors that have been debarred or suspended from receiving federal monies pursuant to the System for Award Management (SAM).

6. Byrd Anti-Lobbying Amendment- Contractors that apply or bid for an award of $100,000 must certify that they will not and have not used federal 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.

I. Contracting with small and minority business, women’s business enterprises, and labor surplus area firms.

All necessary affirmative steps will be taken to assure that minority business, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps include:

1. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;

2. Assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources;

3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises;

4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women’s business enterprises;

5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and,

6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

2.44.170 – Emergency Expenditures
In accordance with §20168 PCC, in the event of an emergency, the City Council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with §20162 et sec PCC. If notice for bids to let contracts will not be given, the City Council shall comply with chapter 2.5 (commencing with §22050 PCC.)

2.44.180 – Gifts and Unauthorized Purchases
City employees, officers or officials are not entitled to any special consideration from vendors and merchants in their personal affairs nor are such city employees, officers, or officials to attempt to procure materials for the personal use of any other person. City employees, officers or officials shall not solicit or accept gifts except for those items that can be shared by all staff such as food and flowers. Except for emergencies or other authorized exemption, no purchases shall be made without specific authorization as outlined in this policy. The person ordering the unauthorized purchase may be held personally liable for the costs of the purchase or contract.

Effective Date
This ordinance shall be effective 30 days following its adoption by the City Council of the City of Ione. A summary of this ordinance shall, within fifteen (15) days after passage, be published in accordance with Section 36933 of the Government Code of the State of California, with the names of the City Council members voting for and against it.

INTRODUCED at a regular meeting of the City Council of the City of Ione on the ______ day of ________, 2025; and
PASSED AND ADOPTED this _______ day of _________, 2025 by the following vote:

AYES: Councilmembers: ___________________________________________________

NOES: Councilmembers: ___________________________________________________ ABSENT: Councilmembers: ___________________________________________________ ABSTAIN: Councilmembers: ___________________________________________________

__________________________________________

STACY RHOADES, MAYOR

CITY OF IONE
ATTEST:
______________________________
Janice Traverso, City Clerk
APPROVED AS TO FORM:
______________________________
Josh Varinsky, City Attorney
Attachment #J6C

CITY OF IONE
Chapter 2.44 – PURCHASING AND BIDDING POLICY

2.44.010 – Established.

The City of Ione hereby establishes a purchasing and bidding policy under the direction of the City Manager and Finance Office Director.

2.44.020 – Intent.

The Purchase and Bidding policy provides a fair and equitable process for all interested and qualified vendors in providing a bid to the City. The City will make an award in a manner consistent with the City Purchase and Bidding Policy. Any exceptions to this Policy must be approved by the City Council. The City Council may, by majority vote and in accordance with its fiduciary responsibilities, approve expenditures of any amount, for any length of term, not otherwise inconsistent with any applicable law.

2.44.030, 2.44.040 – Reserved.

2.44.050 – Duties.

The duties of the City Manager and /or Finance Office Director, or their designee, shall be to make and provide all purchases of materials and services for the city:

A. As are required and requested by the various departments and activities of the city which are usual, normal and necessary for the achievement of the end objective of said departments and are within and contemplated by the regularly adopted budget of the city for said department or departments; and
B. As requested by various departments and as specifically authorized by the city council, whether included within or without the then valid budget for said city.

2.44.060 – Rules, Regulations and Definitions.

The city purchasing department will set up and submit to the city council, for its approval, and within 60 days after the appointment by the city council of the purchasing agent, proposed rules and regulations with respect to the policy of purchasing, the manner of purchasing and the coordination of such purchases with budgetary provisions and limitations, and, when such rules and regulations have been adopted by the city council, then, and continuing from the date of said adoption until otherwise modified, such rules and regulations shall afford direction to the city purchasing department and to the city purchasing agent in the exercise of the duties, responsibilities and authority granted by this chapter.

Definitions:
“City Manager” means the appointed City Manager or a designee authorized to act on behalf of the City Manager.
“Department Director” means the city employee or consultant authorized to act as the head of a city department or authorized designee acting on behalf of the director, regardless of title.

2.44.070 - Chapter not to affect state law.

No provision in this chapter abrogates or alters the basic legal requirements for competitive bidding for materials and services where otherwise required by state law.

2.44.080 - Local preference program.

A. Definition. "Local business" means a vendor, contractor, or consultant who has paid its local business tax to the City of Ione at least 24 months prior to bid or proposal opening date; does business in the City of Ione by providing goods, services, or construction; and maintains a physical business address located within the 95640 ZIP Code and performs business within such geographical limit on a day-to-day basis. Post office boxes shall not be used for the purpose of establishing said physical address. However, should there be a lack of bids by a local business, preference will be next given to bidders within Amador County and then to all others in that order.

B. Local Preference in Purchasing. In bidding for, or letting contracts for procurement of, supplies, materials, and equipment, as described in the purchasing policies of the city, the city council, or other authorized purchasing authority, may give a preference to local businesses in making such purchase or awarding contracts in an amount not to exceed five percent of the local business' total bid price.

The total bid price shall include not only the base bid price, but also all alterations to the base bid price resulting from alternatives which were both part of the bid and actually purchased or awarded by the city council or other appropriate authority.

C. Local Preference for Services. In awarding contracts for services, including consultant services, preference to local businesses shall be given whenever practicable, and, the contractor or consultant will also, to the extent legally permitted, solicit applications for employment and proposals for subcontractors and sub-consultants for work associated with the proposed contract from local residents and firms as opportunities occur and hire qualified local residents and firms whenever feasible.

D. Local Preference in Public Works Contracts (Sub-Contracting).

1. A contractor shall use good faith efforts to sub-contract the supply of materials and equipment to local business enterprises and to sub-contract services to businesses whose work force resides within the 95640 ZIP Code.

2. A "good faith" effort, includes but is not limited to, the following or similar actions to recruit and maintain a work force that resides within the 95640 ZIP Code. a. Contact local recruitment sources to identify qualified individuals. b. Advertise in local trade papers and local newspapers of general circulation in the 95640 ZIP Code area.
c. If portions of the work are performed by subcontractors, identify qualified subcontractors whose workforce includes persons living within the 95640 ZIP Code or demonstrate that no local subcontractors are qualified to perform the work or supply the materials or equipment.
d. Develop a written plan to recruit a work force within the 95640 ZIP Code. e. Establish a goal for local hiring that is based upon the types of skills needed to complete the project with the city.

3. Any notice inviting bids that may require the use of subcontractors shall include notification of this section.

4. Every bidder must complete and sign under penalty of perjury a certification of goodfaith effort to hire a work force that resides within the 95640 ZIP Code or within Amador County if not within the City of Ione, on the form provided in the City of Ione's bid package, and submit said certification with the sealed bid no later than the date and time of the bid opening. Bidder shall attach to the Certificate documentary evidence supporting bidder's promise to meet or make a good-faith effort to meet the local hiring goal. The purchasing agent, as defined in Section 2.44.030, may reject as non-responsive the bid of any contractor proposing to use subcontractors that fails to comply with the requirements of this subsection.

5. If the city finds that a contractor to whom a city contract for public works has been awarded, or a subcontractor listed by contractor on a public works project, has failed to comply with the good-faith requirement during the performance of the contract, the city may disqualify the contractor and/or subcontractors for bidding or being listed in any bid on any city contract for public works for a period of one year from the date of the city's disqualification. The city clerk shall keep a current list of all disqualified contractors and subcontractors on file.

E. Exceptions to Local Business Preference Policy. The preference set forth in this Section shall not apply to the following purchases or contracts:

1. Goods or services provided under a cooperative purchasing agreement.

2. Purchases or contracts which are funded in whole or in part by a governmental entity, other than the city, and the laws, regulations, or policies governing such funding prohibit application of that preference.

3. Purchases made or contracts let under emergency or noncompetitive situations.

4. Application of the local business preference to a particular purchase, contract, or category of contracts for which the city council is the awarding authority may be waived at the city council's discretion.

2.44.090 - Small business preference.

A. In the bidding of a construction contract, procurement of goods, or delivery of services, the purchasing agent shall give a preference to a small business in an amount not to exceed five percent of the small business total price. The total bid price shall include not only the base bid price, but also all alterations to the base bid price resulting from alternatives which were both part of the bid and actually purchased or awarded by the city council or other appropriate authority. This preference shall not be in addition to any preference granted under Section

2.44.080(B).

B. As used in this section, "Small Business" means a business entity that has for at least the 24 months prior to submittal of its bid (i) held a current business license issued by the city and (ii) maintains its principal business office within the 95640 ZIP Code, and that either employs fewer than 100 employees or has average annual gross receipts of $10,000,000.00 or less over the previous three years.

C. No preference shall be given pursuant to this section where legal constraints on the expenditure of funds prohibit the giving of such contract.

2.44.100 - Verification of preference eligibility.

A. Any vendor or consultant claiming to be a local business or small business shall so certify in the bid in writing. The purchasing agent shall not be required to verify the accuracy of any such certifications, and shall have the discretion to determine if a vendor or consultant meets the definition of "local business" or "small business." The decision of the purchasing agent declaring that any person or business is not a local business or small business shall be subject to appeal.

B. Enforcement.

1. The information furnished by each bidder requesting a local business or small business preference shall be under penalty of perjury.

2. No person or business shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a local business or small business for the purpose of this chapter.

3. No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a city official or employee for the purpose of influencing the certification or denial of certification of any entity as a local business or small business.

4. A business which has obtained city certification as a local business or a small business by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew or should have known the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall:

a. Pay to the city any difference between the contract amount and what the city's costs would have been if the contract had been properly awarded; b. Be subject to debarment from future award of contracts from the city at the discretion of the city.

2.44.110 - Quality and fitness.

The preferences established in this section shall in no way be construed to inhibit, limit or restrict the right and obligation of the city council and the purchasing agent to compare quality and fitness for use of supplies, materials, equipment, and services proposed for purchase and to compare the qualifications, character, responsibility, and fitness of all persons, firms, or corporations submitting bids or proposals. In addition, the preferences established in this section shall in no way be construed to prohibit the right of the city council or the purchasing agent from giving any other preference permitted by law or this chapter.

2.44.120 - Pre-qualification of bidders for public works projects.

A. The city manager may designate public works projects or parts thereof that require specialized skills or cost in excess of $2,000,000.00 to be subject to prequalification of bidders.

B. To become a prequalified bidder, a contractor must submit to the city a prequalification application consisting of a standardized questionnaire, financial statement, and statement of experience. The forms for the questionnaire, financial statement, and statement of experience will be provided as part of the prequalification bidding packet.

C. The questionnaires and financial statements submitted by prospective contractors are not public records and are not subject to public inspection. Records of the names of contractors applying for prequalification status are public records and subject to disclosure. Documents submitted by a prospective contractor will be submitted under penalty of perjury.

D. The city will rate prospective contractors in accordance with the rating system attached as Exhibit "A" ("rating system"). The city will devise the questions, process and scoring of the rating system, so as to best evaluate a contractor's ability to successfully complete a particular project. The city will complete the rating system prior to closing of the period for submission of pre-qualification packages for any given project or pre-qualification process. The rating system will be applied uniformly and objectively to all prospective contractors, which have submitted properly completed documents in accordance with this policy.

The city may determine that only a certain number of the top scoring rated contractors shall be considered prequalified for a specific project. This determination shall be made prior to issuing the notice inviting pre-qualifications for the specific project.

E. When the city uses this pre-qualification process, the only contractors eligible to submit a bid are prequalified contractors. Further, such contractors shall submit bids only naming a prequalified subcontractor, if the city also pre-qualifies subcontractors in a similar manner as prime contractors. Any bid received listing an unqualified subcontractor will automatically be disqualified as nonresponsive. No bid shall be accepted for the project from unqualified contractors.

F. A contractor's pre-qualification status will immediately terminate if: (1) the contractor fails to give the city written notice of changes in the information previously provided within ten days before a bid opening; (2) the contractor's license is suspended or terminated by the California State Licensing Board; (3) the contractor is convicted of any crime of moral turpitude; (4) the contractor's application contains materially false information; or (5) the contractor's control over a public works contract, whether within the city's jurisdiction or otherwise, is terminated for cause.

G. The city shall give written notice to each contractor of the pre-qualification determination for that contractor. A contractor may appeal a rating of "not qualified," including a decision to revoke a previous qualified rating. There is no appeal from a finding that a contractor is not pre-qualified because of a failure to submit required information, because of failure to submit required information in a timely manner, because of the omission of requested information or because of the falsification of information. Without a timely appeal, the contractor waives any and all rights to challenge the decision of the City of Ione, whether by administrative process, judicial process, or any other legal process or proceeding.

H. A contractor may appeal the decision as follows:

1. By giving written notice of appeal to the city manager no later than ten days after receipt of the not qualified rating.

2. The notice of appeal shall contain at least the following:
a. The name, address and telephone number of the person making the appeal; b. A description of the determination which is the subject of the appeal, and the date of the notice of determination; and
c. A brief description of the grounds for the appeal.

I. The city will provide the contractor with a written statement of the basis for the not qualified determination and supporting evidence received from others or adduced as a result of investigation.

J. The informal hearing is to be concluded no later than five (5) business days after the City of Ione's receipt of the notice of appeal, and no later than five business days prior to the last date for the receipt of bids on the project. It is the intention of the City of Ione that the date for the submission and opening of bids will not be delayed or postponed to allow for completion of an appeal process.

K. The city manager or designee shall hear the appeal. The hearing shall be an informal one. The contractor may rebut evidence which is the basis for the determination and present evidence why the contractor is qualified.

L. The city manager or designee may affirm the earlier determination or reverse the determination and assign a different rating. This decision will be in writing containing a summary of the facts that led to the decision. The decision of the city manager is final. A contractor shall have no right to appeal that decision to the council.

M. The city manager may cancel the pre-qualification process at any time during the prequalification process, even after receiving and scoring applications. If the pre-qualification process is cancelled, the normal competitive bidding rules will apply. The city assumes no

liability for the cost a prospective contractor may have incurred by submitting an application for pre-qualification, and the submittal of a pre-qualification application is a waiver to claim any such cost or losses due to cancellation of the process.

2.44.130 – Administrative Guidelines

1. Vendor Limit. Combined purchase orders cannot exceed $100,000 per vendor, per fiscal year except in the case of major expenditures in which a vendor has participated in a public formal bidding process.

2. Change Orders or Amendments. A change order or amendment is a change in a contract term, other than as specifically provided for in the contract, that authorizes or necessitates any increase or decrease of the cost of the contract or in the time of completion that can be authorized by the City Manager or Department Director. A valid request for a change order or amendment must meet the following criteria:
a. the change was not reasonably foreseeable at the time that the contract was signed; b. the change must be relevant to the original contract; and c. the change is authorized by the contract provisions and in the best interest of the City.

3. Conflict of Interest. No employee, officer, Councilmember, or agent shall participate in the selection, award, or administration of a contract if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, Councilmember, agent, or any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated, herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract.

Nothing in this Policy does or is to be construed as limiting the applicability of any other federal, state, or local laws and regulations governing prohibitions against financial conflicts of interest, including but not limited to the Political Reform Act (Government Code Section 81000 et seq.) and implementing regulations from the Fair Political Practices Commission (Title 2, Section 18110 et seq., of the California Code of Regulations), and Government Code Sections 1090-1999 and 1126. All such laws and regulations shall apply to every employee, officer, Councilmember, and agent of the City.

4. Local Vendors. Purchasing goods and services from local vendors which stimulate the local economy is encouraged but not required.

5. Green Purchasing Practices. The City is committed to Green Purchasing practices in obtaining goods and services. The City shall consider environmentally-preferable products when appropriate. Nothing in this policy requires the procurement of products that do not adequately perform their intended use, requires procurement that excludes adequate competition, or requires the procurement of products that are unavailable at a reasonable price or at a reasonable time. An environmentally-preferable product means a product that meets any of the following criteria:

a. is durable, repairable, reusable, or recyclable;
b. has minimal packaging, toxic content, or chemical-hazard potential; c. is resource or energy efficient in any or all phases of its manufacture, use, or disposal; or
d. its use or disposal minimizes or eliminates the City’s potential environmental liability.

2.44.140. – Expenditure Categories
Purchases, which include those made by purchase order (PO), written agreement, amendment or change order that require city expenditures, are classified into five categories based on the anticipated expenditure amount. Each category establishes an authorization level, procurement method, and maximum term, which shall apply unless specifically exempted in accordance with this Policy.

A. Expenditures of $250 or less (petty cash)
B. Expenditures of $251 to $20,000 (operational)
C. Expenditures of $20,001 to $50,000 (minor)
D. Expenditures of $50,001 to $100,000 (intermediate)
E. Expenditures over $100,000 (major)
A. EXPENDITURES OF $250 OR LESS
Authorization: Department Director, who may delegate to a department manager Procurement: No bids or PO necessary; petty cash advances or reimbursement Term Limit: N/A
Note: These transactions take the place of ordinary ongoing purchases and shall be limited in use.

A cash disbursement or reimbursement may be obtained from the Finance department and must not exceed $250. A petty cash request form shall be completed and signed by the department director before submittal. The form shall include the date, description of the item to be purchased, and account number. Petty cash amounts will be advanced to accommodate miscellaneous minor expenditure amounts of $250 or less and for which normal payment provisions are not practical.

The Finance department will periodically audit petty cash expenditures as to form and regulations and may confirm purchases.

B. EXPENDITURES OF $251 to $20,000 DURING THE INITIAL TERM1 Authorization: Department Director, who may delegate to a department manager4 Procurement: No PO necessary; 3 informal bids/proposals2 whenever possible Term Limit: 3 years plus one 3-year extension

1 For purposes of this Policy, the “Initial Term” shall be either (i) a term under the contract or PO not to exceed one year, or (ii) a term longer than one year but not to exceed the maximum number of years authorized under a “Term Limit” (set forth below) as long as the contract includes a continuing obligation for performance by a contracting party and the City has an obligation for payment only for the services actually performed and accounted for by invoice or other monthly or regular periodic documentation acceptable to the City. Under any contract or PO, either the contracting party or City may terminate the contract or PO prior to the expiration of the Initial Term for the other party’s nonperformance. 2 “Informal” bid/proposal means verbal or written, via telephone, e-mail or other casual medium.

C. EXPENDITURES OF $20,001 to $50,000 DURING THE INITIAL TERM Authorization: Department Director
Procurement: No PO necessary; 3 informal bids/proposals whenever possible3 plus city contract
Term Limit: 3 years plus one 3-year extension
D. EXPENDITURES OF $50,001 to $100,000 DURING THE INITIAL TERM Authorization: City Manager
Procurement: PO required plus 3 informal bids/proposals plus city contract4 Term Limit: 3 years plus one 3-year extension
E. EXPENDITURES OVER $100,000
Authorization: City Council
Procurement: PO required plus formal bids/proposals plus city contract Term Limit: no limit, any term approved by majority vote of the City Council F. REPORT TO CITY COUNCIL
Any and all expenditures by Department Director or City Manager in excess of $5,000 shall be reported to the City Council at the next regular council meeting following said expenditure. Said report may be in the form of a list provided by the City Manager describing the purpose and the amount of the expenditure.

2.44.150 – Procurement Procedures – Major Expenditures (over $100,000) A. FORMAL BIDS FOR MAJOR PUBLIC WORKS PROJECTS AND MAJOR SUPPLIES AND EQUIPMENT PURCHASES. Major public works projects and supplies and equipment are defined as purchases and projects having an actual or estimated value of greater than one hundred thousand dollars ($100,000). The solicitation and selection of bids and award of contracts shall comply with the Ione Municipal Code (public works contracts), and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Invitation for bids. An invitation for bids (the “invitation”) shall be published at least two times in a newspaper, electronic bulletin board or online submission source, City website, or other generally-recognized source of local public works contract information, at least ten days and at least five days prior to the date of the opening of bids. Invitations shall include general descriptions of the work to be performed, the time and place of the opening of bids, the place where bidders may obtain bid documents, the amount of bid security required, and the amount and nature of performance and labor materials security that will be required.

3 The city’s templates for contracts, agreements, amendments and change orders shall be used for category D and E purchases. The City Manager may allow for modifications of these templates or use of other contracts, agreements, amendments and change orders, or may require use of city templates for category B and C purchases when the City Manager determines it is prudent due to the level of risk exposure to the city, the need to spell out a complex scope of work, or any other reason s/he believes to be in the best interest of the city. To meet prevailing wage requirements any maintenance or repair project over $20,000 or construction project over $50,000 will require a written contract. 4 Designee must have signature authorization form on file with the Finance department, or active designation letter for a specific date range.

2. Form of bids. Bids conforming to the requirements of the invitation shall be submitted to the Department Director (the “Director”) in sealed packages or by other means which will prevent the divulging of bids prior to the stated time for opening of bids, all as specified in the invitation or the bid documents. Unopened bids should be clearly marked or otherwise identifiable as bids for the project to which they apply.

3. Bid security for public works projects. Bids for public works projects shall be accompanied by cash, cashier’s check, certified check, surety bond, or other form of security stated in the invitation or bid documents, in a sum equal to at least ten percent (10%) of the amount of the bid.

4. Opening of bids. At the time and place stated in the invitation, the bids shall be publicly opened and announced. The bid amounts shall be tabulated and the tabulation shall be available for public inspection at the Public Works Department during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

5. Review of bids. The Director shall review all bids received for completeness, accuracy, responsiveness to the invitation and the bid documents, and the City’s experience with or knowledge of the qualification and reliability of each bidder and shall prepare a recommendation to the City Council. Written amounts shall take precedence over associated numeric amounts. Mathematical errors, if found, shall be corrected and shall not disqualify a bid. The corrected total shall be the bid amount considered in determining the lowest responsible bidder and shall be the contract amount awarded if the bid is selected.

6. Award of contract. Contracts shall be awarded by the City Council to the lowest responsible bidder. Determination of the lowest responsible bidder shall be at the sole discretion of the City Council pursuant to findings and recommendations presented by the Director at the time of the award of contract.

7. Equal bids. If two or more equal low bids are received, the City Council may award the contract to any one of the equal low bidders by the following:
a. Select one bid; or
b. Reject all bids and re-solicit for bids; or
c. Reject all bids and authorize negotiated agreement if consistent with federal and state laws; or
d. Select one bid, which is the most responsible bidder; or e. Take any other action that the City Council deems to serve the best interest of the City.

8. No bids. When no bids are received from responsible firms, the City Council may accomplish the project in any manner it sees fit.

9. Rejection of bids. The City Council may reject any or all bids presented and may then direct that the project be re-advertised, may authorize negotiation of a contract with one or more

responsible firms, or may resolve that the project can be performed more economically by City forces, day labor, time and materials contract, or other method.

10. Execution of contract. The successful bidder shall execute the contract and furnish required performance security and labor and materials security when required pursuant to the bid document.

11. Forfeiture of bid security for public works projects. If the successful bidder fails to execute the contract and furnish security within the stated time, and said failure is not primarily due to actions or omissions of the City or to acts of god, the bidder shall forfeit the bid security provided. The City Council may then consider the bid of the next lowest responsible bidder.

12. Release of bid security for public works projects. Bidders are entitled to the return of their bid security unless forfeited as provided herein. The City shall retain all bid security until a contract has been executed or until the City Council rejects all bids at which time all bid security not forfeited shall be returned to the appropriate bidders.

13. Disposition of forfeited bid security for public works projects. The City shall retain forfeited bid security until a contract is awarded to another firm or the project is cancelled. The City shall retain an amount equal to the difference between the forfeiting firm’s bid and the new contract amount, if any, and an additional amount equal to administrative and other costs incurred as a result of the failure of the forfeiting bidder to enter into a contract and provide required security, and shall return any remaining amount of the bid security to the forfeiting bidder.

14. Performance security and labor and materials security for public works projects. The bidder to whom the contract is awarded (the “successful bidder”) shall furnish performance security and labor and materials security in amounts specified in the Invitation or Bid Documents.

B. FORMAL PROPOSALS FOR MAJOR PROFESSIONAL AND TECHNICAL SERVICES. Major professional and technical services are defined as services having an actual or estimated value of greater than one hundred thousand dollars ($100,000). The solicitation and selection of proposals and award of contracts shall comply with the Ione Municipal Code, and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Maintenance and Repair Services. Services intended to preserve and/or restore a public work to a clean, safe, efficient, and/or continually usable condition. Maintenance and repair services include, but are not limited to: carpentry, electrical, painting, plumbing, glazing, and other craftwork to preserve a facility in the condition for which it was intended; repairs, cleaning and other operations on machinery and other equipment permanently attached to a facility as fixtures; the mowing, pruning, and trimming of lawns, grass, trees, shrubs, bushes and hedges; and the regular removal or relocation of by-products or waste products accumulated at City facilities as the result of ongoing environmental processes.

2. The City Manager shall approve the preparation and release of all Requests for Proposals (RFP) and Requests for Qualifications (RFQ).

3. City staff shall determine, based on professional judgment, whether an RFP or an RFQ process best suits its needs and City staff, or a city-authorized consultant, shall prepare the RFP/RFQ document.

4. City staff, or a city-authorized consultant, or both shall prepare a list of suitable firms from known registries, professional organizations, and/or any other source.

5. City staff shall issue the RFP/RFQ to suitable firms, and may also advertise for competitive proposals.

6. City staff shall form a selection committee, which may include private consultants, to review the RFPs/RFQs received, and the selection committee may conduct interviews and/or hold discussions with proposing firms.

7. The selection committee shall rank the proposing firms according to the criteria specified in the RFP/RFQ and City staff shall notify firms of their position in the ranking.

8. City staff, or a city-authorized consultant, shall negotiate with the top-ranked firm to arrive at mutually-acceptable contract terms.

9. City staff, or its authorized consultant shall terminate negotiations and begin negotiations with the next-ranked firm if an agreement cannot be reached and continue this process until negotiations are successfully concluded or until the list of qualified firms submitting proposals is exhausted and an agreement cannot be reached.

10. The City Council shall award or reject the contract negotiated by City staff.

IV. PROCUREMENT PROCEDURES – NON-MAJOR EXPENDITURES ($100,000 & under)
INFORMAL BIDS OR PROPOSALS - Intermediate, Minor, and Operational Expenditure category projects, including minor public works projects, supplies, goods, equipment and minor services are defined as projects having an actual or estimated value of one hundred thousand dollars ($100,000) or less. The solicitation and selection of bids and award of contracts shall comply with the Ione Municipal Code for public works projects, service contracts, and this Policy, and shall be administered through each City Department, according to the following procedures:

1. Informal bids shall be obtained verbally or in writing as dictated by this Policy from the open market and a written record of informal bids shall be kept with the related PO.

2. Bid security. Security and labor and material security shall conform to the requirements for major public works projects but may be modified or waived by the City staff person authorized to make the purchase if warranted and in the best interest of the City.

3. Execution and Award of Contracts. The City Council may award contracts, or the City Manager, or designated City Director, or staff personnel may award and execute contracts, set forth in Categories A, B, C or D of Section II above, and may waive competitive bidding requirements if in the best interest of the City, provided there are unencumbered appropriations in the fund accounts against which the expenses are to be charged.

V. EXEMPTION TO ANY PROCUREMENT METHOD
Justification for exemption to any required procurement method may be submitted to the City Manager or in the case of a major expenditure, to the City Council under the following circumstances:
a. Sole-source or select-source purchase. To determine that a sole-source or select-source purchase exists, rationale and/or proof must be provided in the purchase requisition. • Acquisition of brand name to insure compatibility with other city products and equipment. For example, standardization of fleet inventory (select-source). • Change orders - additions to an original scope of work when the original source is the only reasonable one to provide the additional goods, construction work or service needed (select-source).
• Only one manufacturer or vendor makes and/or sells the required equipment (solesource). b. State, County, or other public agency cooperative purchasing program or contracts utilizing funding or other participation from agencies which require conformance with state, federal or other contracting regulations.
c. The City does not require a contract for equipment purchases such as a specific type or brand of supply or part necessary for acceptable operation of a machine or device, or as required by warranty or contract on the machine or device; written documentation supporting a purchase must be provided.
d. Emergency purchases made necessary by an immediate threat to life or property or a substantial disruption of a vital public service.
• In advance of any local emergency, the City seeks to retain a list of available local businesses willing to provide necessary supplies, materials, equipment, services, food, care or shelter to the City through the Office of Emergency Management. Once the Emergency Operations Center (EOC) is activated, these memorandums will be activated.
• In the event of an emergency, the City Manager or designee may make immediate purchases of goods and services. Emergency purchases include any purchase required to prevent imminent danger or to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Every effort shall be made to obtain advance approvals or to obtain approvals as soon as possible following the purchase.

• The City is not required to engage in either formal or informal competitive bidding in an emergency. The City Council delegates to the City Manager and City Manager’s designee the authority to waive any procedures in the Policy that are not statutorily mandated when making emergency purchase of supplies, equipment, materials or services.
• The City Council shall ratify emergency suspension of procedures at the next properly noticed Council meeting following the emergency procurement and consider whether further suspension of procedures is required to abate the impacts of the emergency. e. The awarding officer(s) may waive irregularities in formal or informal bids received provided that it is in the best interest of the City to do so, and it does not result in unfair advantage to any bidder.
f. The City Council may authorize the award and execution of contracts without competitive bidding provided that such award is in the best interest of the City, or of the public health, safety and welfare.

2.44.160 - FEDERALLY FUNDED PROCUREMENTS
This section pertains to federal-funded projects and purchases.

Any procurement made pursuant to a federal award or subject to reimbursement, in whole or in part, with federal funds must comply with the City’s procurement procedures and all applicable Procurement Standards codified in 2 CFR 200.318-200.326 to include the following:
(a) Comply with general federal requirements and recommendations:
a. Comply with currently applicable Department of Homeland Security Standard Terms and Conditions.
b. Comply with the Solid Waste Disposal Act, 2 CFR section 200.322. c. Complete a cost or price analysis, including independent estimates, when necessary under 2 CFR 200.323.
d. Profit must be negotiated as a separate element of price, where required under 2 CFR 200.323(b).
e. Use of federal excess and surplus property is encouraged over purchasing new.
f. Geographical (local) preferences may not be used, unless expressly authorized by the awarding agency.
g. A time and materials contract or a “cost-plus” contract may not be used. h. Intergovernmental agreements are encouraged where appropriate. i. Procurements are subject to requirements for monitoring and oversights, see 2 CFR 200.318(b).
j. Records must be maintained by each department consistent with 2 CFR 200.318(i).

(b) Federal contractors must meet requirements of being responsible contractors (see CFR 200.318(h) and the City will take all necessary affirmative steps to assure minority businesses, women’s businesses and labor surplus area firms are used when possible. (c) Consistent with 2 CFR section 200.320, the City will use one of the following approved procurement methods: micro-purchases, small purchase procedures, sealed bids (formal advertising), competitive proposals, and noncompetitive proposals. (d) Contracts for federally-funded procurements must comply with 2 CFR section 200.326, by acknowledging that federal financial assistance will be used to fund the contract, requiring that the contractor comply with all applicable federal law, regulations, executive orders and applicable federal policies; and specifying the Federal Government is not a party to the contract.

I. GENERAL PROCUREMENT STANDARDS
A. Code of Conduct. As representatives of the City of Ione, all employees are expected to conduct themselves in a professional and ethical manner, maintaining high standards of integrity and the use of good judgement. Employees are expected to be principled in their business interactions and act in good faith with individuals both inside and outside the City.

The following Code of Conduct shall govern the performance, behavior and actions of the City, including employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts and grants, and the administration and supervision of contracts:

1. No employee, director, appointed or elected official, volunteer, or agent of the City shall participate in the selection, award, or administration of contracts supported by a federal award if a conflict of interest is real or apparent to a reasonable person.

2. Conflicts of interest may arise when any employee, officer, or agent of the City, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a real or apparent financial or other interest in or a tangible personal benefit form a firm considered for the contract.

3. No employee, director, appointed or elected official, volunteer, or agent of the City shall do business with, award contracts to, or show favoritism toward a member of his or her immediate family, spouse’s family, or to any company, vendor, contractor, or parties to subcontractors who either employ or has any relationship to a family member; or award a contract or bid which violates the spirit or intent of federal, state and local procurement laws and policies established to maximize free and open competition among qualified vendors.

4. The City’s employees, directors, appointed or elected officials, volunteers, or agents shall neither solicit nor accept gratuities, favors, gifts, consulting fees, trips, or anything having a monetary value in excess of twenty-five dollars ($25.00) from a vendor, potential vendor, family or employees of a vendor, contractor or parties to subcontractors.

5. Disciplinary measures for violations of the Code of Conduct by employees, directors, appointed or elected officials, volunteers, or agents who are engaged in any aspect of procurement, including, but not limited to, purchasing goods and services, awarding contracts

and grants, and the administration and supervision of contracts could lead to disciplinary measures, up to and including possible termination of employment.

B. Solicitation Procedures

1. Acquisition of unnecessary or duplicative items must be avoided. Consideration should be given to consolidating or dividing procurements to obtain a more economical purchase. When appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.

2. To foster greater economy and efficiency, and in accordance with efforts to promote costeffective use of shared services, the City shall enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.

3. Procuring federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs shall be utilized.

4. Value engineering clauses may be used in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions. Value engineering is a systematic and creative analysis of each contract item or task to ensure that its essential function is provided at the overall lower cost.

5. Contracts shall only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

6. Records will be maintained sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. The City Clerk will be the repository for said records and shall be maintained for period of no less than seven (7) years.

7. Time and material type contracts (open-ended) may be used only after a determination that no other contract is suitable. Time and material type contract means a contract where the cost to the City is the sum of the actual cost of materials and direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expense, and profit. Each time and material contract will set a ceiling price that the contractor exceeds at its own risk. A higher degree of oversight is required in order to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

6. The City alone will be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes, and claims. These standards do not relieve the City of any contractual responsibilities under its contracts. The federal awarding agency will not substitute its judgment for that of the City

unless the matter is primarily a federal concern. Violations of law will be referred to the local, state, or federal authority having proper jurisdiction.

C. Competition

1. All procurement transactions must be conducted in a manner providing full and open competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, and invitations for bids or requests for proposals will be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include, but are not limited to:
a. Placing unreasonable requirements on firms in order for them to qualify to do business;
b. Requiring unnecessary experience and excessive bonding; c. Noncompetitive pricing practices between firms or between affiliated companies; d. Noncompetitive contracts to consultants that are on retainer contracts; e. Organizational conflicts of interest;
f. Specifying only a brand name product instead of allowing an equal product to be offered and describing the performance or other relevant requirements of the procurement; and
g. Any arbitrary action in the procurement process.

2. Procurements shall be conducted in a manner that prohibits the use of statutorily or administratively imposed state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

3. All solicitations will incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description must not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured and, when necessary, must set forth those minimum essential characteristics and standard to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equivalent description may be used as a means to define the performance or other relevant requirements of procurement. The specific features of the named brand which must be met by offers must be clearly stated.

4. Bids and proposals shall identify all the requirements which the offerors must fulfill and all other factors to be used in evaluation bids or proposals

D. Methods of Procurement. In addition to the City’s purchasing policy approval limits, one of the following methods should be used:

1. Micro-purchase: Purchases where the aggregate dollar amount does not exceed $3,000, or the current limitation set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1, where this threshold is periodically adjusted for inflation.

2. Small purchase: Purchases up to the Simplified Acquisition threshold, which is currently $150,000. Informal purchasing procedures are acceptable, but price or rate quotes must be obtained from an adequate number of sources.

3. Sealed bid: Purchases over the Simplified Acquisition threshold, which is currently $150,000.

Under this purchase method, formal solicitation is required, and the fixed price (lump sum or unit price) is awarded to the responsible bidder who conformed to all material terms and is the lowest in price. This method is the preferred procurement method for construction contracts, if the following conditions apply:
a. A complete, adequate, and realistic specification or purchase description is available; b. Two or more responsible bidders are willing and able to compete effectively for the business, and,
c. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally based on price.

If this method is used, the following requirements shall apply:
d. The invitation for bids will be publicly advertised and bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date for opening the bids;
e. The invitation for bids, which will include any specifications and pertinent attachments, must define the terms or services in order for the bidder to properly respond; f. All bids will be publicly opened at the time and place prescribed in the invitation for bids;
g. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts will only be used in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and
h. Any or all bids may be rejected if there is a sound documented reason.

4. Competitive proposals: Purchases over the Simplified Acquisition threshold, which is currently $150,000. This procurement method requires formal solicitation, fixed-price or costreimbursement contracts, and is used when sealed bids are not appropriate. The contract should be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors. If this method is used, the following requirements apply:

a. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;
b. Proposals must be solicited from an adequate number of qualified sources; c. The methods for conducting technical evaluations of the proposals received and for selecting recipients may include, but not limited to: oral interviews, references, past performance, availability to perform work, and certifications as determined by project scope.
d. Any response that takes exception to any mandatory items in this proposal process may be rejected and not considered;
e. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and, f. Competitive proposal procedures may be used for qualifications-based procurement of architectural/engineering (A/E) professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. The method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services, though A/E firms are a potential source to perform the proposed effort.

5. Noncompetitive proposals: Also known as sole-source procurement, this may be appropriate only when one or more of the following criteria are met:
a. The item is available only from a single source;
b. The public emergency for the requirement will not permit a delay resulting from competitive solicitation;
c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-federal entity; or
d. After solicitation of a number of sources, competition is determined inadequate.

E. Contract Cost and Price. A cost or price analysis shall be performed in connection with every procurement action in excess of the Simplified Acquisition threshold ($150,000) including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, independent estimates shall be made prior to receiving bids and proposals.

1. Profit shall be negotiated as a separate element of the price for each contract in which there is a no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor’s investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

2. Costs or prices based on estimated costs for contracts under the federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under Subpart E- Cost Principles of Part 200- Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

3. The cost plus a percentage of cost and percentage of construction cost methods of contracting shall be used.

F. Federal Awarding Agency or Pass-Through Entity Review.

1. The City shall make available, upon request of the federal awarding agency or pass-through entity, technical specifications on proposed procurements where the federal awarding agency or pass-through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the City desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or passthrough entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.

2. The City will make available upon request, for the Federal awarding agency or pass-through entity pre-procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:
a. Procurement procedures or operations fails to comply with the procurement standards in this part;
b. The procurement is expected to exceed the Simplified Acquisition Threshold ($150,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation;
c. The procurement, which is expected to exceed the Simplified Acquisition Threshold, specifies a “brand name” product;
d. The proposed contract is more than the Simplified Acquisition Threshold and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or e. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold.

3. The City is exempt from the pre-procurement review in paragraph 2 of this section if the federal awarding agency or pass-through entity determines that its procurement systems comply with the standards of this part.

4. The City may request that its procurement system be reviewed by the federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high-dollar funding, and third-party contracts are awarded on a regular basis;

5. The City may self-certify its procurement system. Such self-certification must not limit the federal awarding agency's right to survey the system. Under a self-certification procedure, the federal awarding agency may rely on written assurances from the City that it is complying with these standards. The City must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

G. Bonding Requirements. For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold ($150,000), the federal awarding or pass-through entity may accept the bonding policy and requirements of the City provided that the federal awarding agency or pass-through entity has made a determination that the federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

1. A bid guarantee from each bidder equivalent to five percent (5%) of the bid price. The bid guarantee must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified;

2. A performance bond on the part of the contractor for 100 percent (100%) of the contract price.

A performance bond is one executed in connection with a contract to secure fulfillment of all the contractor’s obligations under such contract; and,

3. A payment bond on the part of the contractor for 100 percent (100%) of the contract price. A payment bond is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

H. Contract Provisions. All federal funding source compliance provisions shall include the following:

1. Equal Employment Opportunity- All contracts, when funded in whole or partly by monies derived from the federal government (either directly or indirectly), shall contain a provision requiring compliance with Equal Employment Opportunity.

2. Davis-Bacon Act- Applies to construction contracts in excess of $2,000. It requires contracts to pay laborers and mechanics wages not less than the prevailing wage as determined by the Secretary of Labor and must be required to pay wages not less than once a week. Each bid solicitation published by the City must contain the current prevailing wage determination. Any award of the contract must be conditioned on contractor’s acceptance of that wage determination and suspected or reported violations of this act shall be immediately reported to the Federal awarding agency.

3. Copeland “Anti-Kickback” Act- Applies to construction contracts in excess of $2,000. It prohibits kickbacks in construction contracts funded with Federal monies. Contractors and subcontractors or subrecipients shall be prohibited from inducing 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 and suspected or reported violations shall be immediately reported to the Federal awarding agency.

4. Clean Air Act & Federal Water Pollution Control Act- Applies to contracts and sub grants in excess of $150,000. Contractor shall be required to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act.

Suspected or reported violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

5. Debarment and Suspension- Contracts funded with federal grant monies may not be awarded to contractors that have been debarred or suspended from receiving federal monies pursuant to the System for Award Management (SAM).

6. Byrd Anti-Lobbying Amendment- Contractors that apply or bid for an award of $100,000 must certify that they will not and have not used federal 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.

I. Contracting with small and minority business, women’s business enterprises, and labor surplus area firms.

All necessary affirmative steps will be taken to assure that minority business, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps include:

1. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;

2. Assuring that small and minority businesses and women’s business enterprises are solicited whenever they are potential sources;

3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses and women’s business enterprises;

4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses and women’s business enterprises;

5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and,

6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

2.44.170 – Emergency Expenditures
In accordance with §20168 PCC, in the event of an emergency, the City Council may pass a resolution by a four-fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, or property. Upon adoption of the resolution, it may expend any sum required in the emergency without complying with §20162 et sec PCC. If notice for bids to let contracts will not be given, the City Council shall comply with chapter 2.5 (commencing with §22050 PCC.)

2.44.180 – Gifts and Unauthorized Purchases
City employees, officers or officials are not entitled to any special consideration from vendors and merchants in their personal affairs nor are such city employees, officers, or officials to attempt to procure materials for the personal use of any other person. City employees, officers or officials shall not solicit or accept gifts except for those items that can be shared by all staff such as food and flowers. Except for emergencies or other authorized exemption, no purchases shall be made without specific authorization as outlined in this policy. The person ordering the unauthorized purchase may be held personally liable for the costs of the purchase or contract.

Effective Date
This ordinance shall be effective 30 days following its adoption by the City Council of the City of Ione. A summary of this ordinance shall, within fifteen (15) days after passage, be published in accordance with Section 36933 of the Government Code of the State of California, with the names of the City Council members voting for and against it.

INTRODUCED at a regular meeting of the City Council of the City of Ione on the ______ day of ________, 2025; and
PASSED AND ADOPTED this _______ day of _________, 2025 by the following vote:

AYES: Councilmembers: ___________________________________________________

NOES: Councilmembers: ___________________________________________________ ABSENT: Councilmembers: ___________________________________________________ ABSTAIN: Councilmembers: ___________________________________________________

__________________________________________

STACY RHOADES, MAYOR

CITY OF IONE
ATTEST:
______________________________
Janice Traverso, City Clerk
APPROVED AS TO FORM:
______________________________
Josh Varinsky, City Attorney
Current Purchasing and Bidding Policy
A. (Petty Cash) B. (Operational) C. (Minor) D. (Intermediate) E. (Major) $50 or Less $51 to $5,000 $5,001 to $10,000 $10,001 to $50,000 Over $50,000 Authorization Department director, who may delegate
to a department manager
Department director, who may delegate
to a department manager Department director City Manager/City Council City Council Procurement No bid or PO necessary, petty cash
advances or reimbursement
No PO necessary, three informal
bids/proposals whenever possible
PO required pluss three informal
bids/proposals
PO required plus three informal
bids/proposals plus city contract
PO required plus formal bids/proposals
plus city contract
Term Limit
Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension No limit, any ter approved by majority
vote of the city council
Finance Committee Direction June 2024
A. (Petty Cash) B. (Operational) C. (Minor) D. (Intermediate) E. (Major) $200 or Less $201 to $1,000 $1,001 to $15,000 $15,001 to $25,000 Over $25,001 Authorization Department director, who may delegate
to a department manager
Department director, who may delegate
to a department manager Department director City Manager/City Council City Council Procurement
No bid or PO necessary, petty cash
advances or reimbursement
No PO necessary, three informal
bids/proposals whenever possible
PO required pluss three informal
bids/proposals
PO required plus three informal
bids/proposals plus city contract
PO required plus formal bids/proposals
plus city contract
Term Limit Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension No limit, any term approved by majority
vote of the city council
Suggested Puchasing and Bidding Policy
A. (Petty Cash) B. (Operational) C. (Minor) D. (Intermediate) E. (Major) $250 or Less $251 to $20,000 $20,001 to $50,000 $50,001 to $100,000 Over $100,000 Authorization Department director, who may delegate
to a department manager
Department director, who may delegate
to a department manager Department director City Manager City Council Procurement No bid or PO necessary, petty cash
advances or reimbursement
No PO necessary, three informal
bids/proposals whenever possible
No PO nexessary: 3 informal
bids/proposals whenever possible plus
city contract
PO required plus three informal
bids/proposals plus city contract
No PO required plus formal
bids/proposals plus city contract
Term Limit Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension Three years plus on three‐year extension No limit, any term approved by majority
vote of the city council
Attachment #J6D
CIT}' OF IOlVE
IONE. C,_ 95640
DATE: January 21, 2024
Agenda Item #J7
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: George Lee
SUBJECT: Sewer line responsibility of homeowners
RECOMMENDED ACTION: Discussion only
FISCAL IMP ACT: 0
BACKGROUND: At present, the homeowner is responsible for sewer repairs from their house the sewer line. A hypothetical situation has been brought up where if the sewer line is on the other side of the road, it would be cost prohibitive for the homeowner to cut through the road to reach the sewer line.

DISCUSSION:

ATTACHMENTS:

CITY OF 101\ E
101\E, CA 95640
DATE: January 21, 2024
Agenda Item #J10
TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: George Lee
SUBJECT: Budget Amendment/West Yost
RECOMMENDED ACTION: Approve budget amendment to spend the additional funds to complete the various items needed and the Title 22 report.

FISCAL IMPACT: $172,700.00
BACKGROUND: City Council previously approved funds for West Yost to complete various tasks in addressing issues related to the Treatment Plant and Regional Board requirements.

DISCUSSION: West Yost has previously been tasked with the abovementioned issues.

They are very close to achieving all of the necessary reporting and tests required by the Regional Board including the Title 22 report.

ATTACHMENTS: Correspondence from West Yost.