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Ordinance No. 1212212 ORDINANCE NO. 1212 AN ORDINANCE OF THE CITY COUNCIL OF THE CITYOF CYPRESS, CALIFORNIA, AMMENDING SECTION 21A OF THE CYPRESS MUNICIPAL CODE ESTABLISHING UPDATED PURCHASING AUTHORITY LIMITS FOR CITY PERSONNEL WHEREAS, section 21A of the Cypress Municipal Code establishes the requirements for the City's purchasing system and includes monetary limits on bid procedures and contract award thresholds; and WHEREAS, the current monetary limits on bid procedures and contract award thresholds was last adjusted in 1999 from $10,000 to $25,000; and WHEREAS, inflation since 1999 in the Los Angeles, Long Beach and Anaheim area has increased by more than 100% over this time; and WHEREAS, a survey of all 34 Orange County cities was conducted which indicated Cypress' threshold was the second lowest in the County; and WHEREAS, it is appropriate to periodically update the monetary limits on bid procedures and contract award thresholds to ensure the efficient use of staffing resources and limit the number of routine items presented to City Council for consideration; and NOW, THEREFORE, the City Council of the City of Cypress DOES HEREBY ORDAIN as follows: SECTION 1. Section 21A of the Cypress Municipal Code is hereby amended to read as follows: "Sec. 21A-10(d).Bidding generally When there is to be a contract for professional services such as, but not limited to, the services of attorneys, architects, or engineers or where the service contracted for deals with public relations or promotions, elections, negotiations, acquisition of land, trash, garbage or refuse disposal or the like, insurance, bonds, any other services of similar nature to those listed, those items which are in their nature unique and not subject to competition or other services for which by law another officer or body is specifically charged with obtaining. For professional services, a request for qualifications, ('RFQ'), should be used to select the appropriate professional or professionals. For contracts of $50,000 or less the city manager is authorized to enter into the contract. Further, the city manager may enter into contracts up to five years in duration if the total value of the contract does not exceed $100,000 for the term of the contract. All contracts in excess of $50,000 shall be approved by the city council, except as noted above. These limits shall be updated based on the October Consumer Price Index for Los Angeles - Long Beach — Anaheim, CA as published by the Bureau of Labor Statistics. The first update will be effective in January 2030 and updated every five years thereafter by resolution of the City Council. Sec. 21A-10(h).Bidding generally Any contract which combines professional services and the acquisition of goods or equipment where the professional services are specifically retained to advise the city on the selection of the goods or equipment and the professional services utilized under the contract also include designing, retrofitting, or modifying the goods or equipment to meet the particular needs of the city. This exemption shall also include the acquisition by the city of 'intellectual property.' In utilizing this exemption, an RFQ shall be used. For contracts of $50,000 or less the city manager is authorized to enter into the contract. Further, the city manager may enter into contracts up to five years in duration if the total value of the contract does not exceed $100,000 for the term of the contract. All contracts in excess of $50,000 shall be approved by the City Council, except as noted above. These limits shall be updated based on the October Consumer Price Index for Los Angeles - Long Beach — Anaheim, CA as published by the Bureau of Labor Statistics. The first update will be effective in January 2030 and updated every five years thereafter by resolution of the City Council.. 213 Sec. 21A-12.Formal contract procedure Except as otherwise provided herein and in accordance with the city's power as a Charter City, purchases of supplies, equipment, or services of an individual of an estimated value greater than $50,000 shall be by written contract with the lowest responsible bidder, pursuant to the procedure hereinafter prescribed. Sec. 21A-13.Open market procedure Purchases of supplies, equipment, and services of an estimated value in the amount of $50,000 or less may be made by the purchasing officer in the open market pursuant to the procedure prescribed in section 21A-12; provided, however, all bidding may be dispensed with for purchases of supplies, equipment, and services having a total estimated value of less than the amount established by resolution of the city council pursuant to section 21A-10. Sec. 21A-17.Contracting for the purchase of supplies, equipment, services, or leases; exemption. The purchasing officer, with the approval of the council, may contract for supplies equipment, services, or leases without observing the procedure required herein regardless of estimated value of such supplies, equipment, services, or leases when the best interests of the city would be served thereby. Whenever the council approves the purchase of supplies, equipment, services, or leases without observing the procedures required in this chapter, the council may require that the purchasing officer solicit informal bids under such conditions and limitations as the city council may impose. This exemption section shall not apply to any public work contract. SECTION 2. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases or portions thereof be declared invalid or unconstitutional. SECTION 3. The City Clerk shall certify to the passage of this Ordinance and this Ordinance shall be published as required by law and shall take effect as provided by law. FIRST READING at a regular meeting of the City Council of the City of Cypress held on the 12th day of November, 2024 and finally adopted and ordered posted at a regular meeting held on the 9th day of December, 2024. MAYOR OF THE C TY OF CYPRESS ATTEST: CITY CLERK OF THE CITY OF CYPRESS STATE OF CALIFORNIA } COUNTY OF ORANGE } SS I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of the said City Council held on the 9th day of December, 2024, by the following roll call vote: AYES: 4 COUNCIL MEMBERS: Burke, Mallari, Peat and Minikus NOES: 0 COUNCIL MEMBERS: None ABSENT: 1 COUNCIL MEMBERS: Marquez CITY CLERK OF THE OfTY OF CYPRESS