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(1) Prior to Bid Opening or Closing Date for Receipt of Proposals. If prior to the bid opening or the closing date for receipt of proposals, the Purchasing Agent, after consultation with the City Attorney, determines that a solicitation is in violation of federal, State, or local law, then the solicitation or proposed award shall be canceled or revised to comply with applicable law.

(2) Prior to Award. If after a bid opening or the closing date for receipt of proposals, the Purchasing Agent, after consultation with the City Attorney, determines that a solicitation or a proposed award of an agreement is in violation of federal, State, or local law, then the solicitation or proposed award shall be canceled.

(3) After Award. If after an award, the Purchasing Agent, after consultation with the City Attorney, determines that a solicitation or award of an agreement was in violation of applicable law, then:

a. If the person awarded the agreement has not acted fraudulently or in bad faith:

i. the agreement may be ratified and affirmed, provided it is determined that doing so is in the best interests of the City; or

ii. the agreement may be terminated and the person awarded the agreement shall be compensated for the actual costs reasonably incurred under the agreement, plus a reasonable profit, prior to the termination; or

b. If the person awarded the agreement has acted fraudulently or in bad faith the agreement may be declared null and void or voidable, if such action is in the best interests of the City.

(4) Acting in Violation of this Ordinance. Any violation of this Ordinance shall be grounds for disciplinary action, and civil and criminal prosecution at the discretion of the City.

(Ord. No. 03-07 Enacted 01/21/2003)

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