Agenda — Arvin City Council, February 20, 2024 (part 1 of 2)

SPECIAL MEETING AGENDA
OF THE

ARVIN CITY COUNCIL / SUCCESSOR AGENCY TO THE

ARVIN COMMUNITY REDEVELOPMENT AGENCY / ARVIN HOUSING

AUTHORITY / ARVIN PUBLIC FINANCING AUTHORITY
TUESDAY FEBRUARY 20, 2024 7:00p.m.

CITY HALL COUNCIL CHAMBERS
200 CAMPUS DRIVE, ARVIN
CALL TO ORDER Mayor Olivia Trujillo

PLEDGE OF ALLEGIANCE

INVOCATION
*******************************************
ROLL CALL Olivia Trujillo Mayor
Daniel Borreli Mayor Pro Tem
Donny Horton Councilmember
Susana Reyes Councilmember
Juan Murillo Councilmember
******************************************
STAFF Jeff Jones City Manager / Finance Director
Nathan Hodges City Attorney – Hodges Law Group
Cecilia Vela City Clerk
I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all.

PUBLIC COMMENTS:

The meetings of the City Council and all municipal entities, commissions, and boards (“the City”) are open to the public. At regularly scheduled meetings, members of the public may address the City on any item listed on the agenda, or on any non-listed matter over which the City has jurisdiction. At special or emergency meetings, members of the public may only address the City on items listed on the agenda. Such comments shall be made in person and before the City during the meeting as prescribed below. There is a time limitation of two (2) minutes per person. However, the City shall allow a speaker using a translator four (4) minutes to ensure that non-English speakers receive the same opportunity to directly address the City. Sixteen Minutes (16) total (plus additional time based on use of a translator, if any) will be allowed for any one subject. For any item that is not on the agenda and within the jurisdiction or interest of the City, please come to the podium at this time. The Brown Act does not permit any action or discussion on items not listed on the agenda. If you wish to speak regarding a scheduled agenda item, please come to the podium when the item number and subject matter are announced, and the Mayor or Chair opens Public Comment on the item. When recognized, please begin by providing your name and address for the record (optional). Anyone wishing to submit written information at the meeting needs to furnish ten (10) copies to the City Clerk in advance to allow for distribution to City Council, staff and the media. Willful disruption of the meeting shall not be permitted. If the Mayor finds that there is in fact willful disruption of any City Council Meeting, he/she may order the disrupting parties out of the room and subsequently conduct the City’s business without them present.

In accordance with the Brown Act, all matters to be acted on by the City must be posted at least 72 hours prior to a regular meeting. In cases of an emergency, or when a subject matter needs immediate action or comes to the attention of the City subsequent to the agenda being posted, upon making certain findings, the City may act on an item that was not on the posted agenda.

AGENDA STAFF REPORTS AND HANDOUTS:

Staff reports and other disclosable public records related to open session agenda items are available at City Hall, 200 Campus Drive, Arvin, CA 93203 during regular business hours.

CONDUCT IN THE CITY COUNCIL CHAMBERS:

Rules of Decorum for the Public
Members of the audience shall not engage in disorderly or boisterous conduct, including the utterance of loud, threatening or abusive language, clapping, whistling, stamping of feet or other acts which disturb, disrupt, impede or otherwise render the orderly conduct of the City meeting infeasible. A member of the audience engaging in any such conduct shall, at the discretion of the presiding officer or a majority of the City, be subject to ejection from the meeting per Gov. Code Sect. 54954.3(c).

Removal from the Council Chambers:

Any person who commits the following acts in respect to a meeting of the City shall be removed from the Council Chambers per Gov. Code Sect. 54954.3(c).
(a) Disorderly, contemptuous or insolent behavior toward the City or any member thereof, tending to interrupt the due and orderly course of said meeting;
(b) A breach of the peace, boisterous conduct or violent disturbance, tending to interrupt the due and orderly course of said meeting;
(c) Disobedience of any lawful order of the Mayor, which shall include an order to be seated or to refrain from addressing the City; and
(d) Any other unlawful interference with the due and orderly course of said meeting.

AMERICANS with DISABILITIES ACT:

In compliance with the ADA, if you need special assistance to participate in a City meeting or other services offered by the City, please contact the City Clerk’s office, (661) 854-3134. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

Special Arvin City Council Meeting Agenda – February 20, 2024

Page 1 of 2 ends

1. APPROVAL OF AGENDA AS TO FORM.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

2. PUBLIC COMMENTS
(This is the opportunity for the public to address the City Council on any matter on the agenda.)

3. CONSENT AGENDA ITEM(S)
A. Approval of A Resolution of the City Council of the City of Arvin to Approve the Financial Policies and Procedures and Incorporate Attachment 740-A Grant Funding and Compliance Policy by Reference.

Staff recommends approval of the Consent Agenda.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

4. ACTION ITEM(S)
A. Consideration and Approval of A Resolution of the City Council of the City of Arvin Accepting and Awarding Bid and Authorizing the City Manager to Execute the Proposal from United Rentals for the Purchase of Heavy Equipment for the Public Works Department in the Amount of $121,688.48. (City Manager)
Staff recommends approval of the Resolution.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ B. Report, Discussion, and Potential Approval of A Resolution of the City Council of the City of Arvin Declaring the Necessity to Commence Eminent Domain Proceedings for the Acquisition of the Property Located at the Southwest Corner of Millux and Tejon Highway, Arvin, California 93203, Assessor’s Parcel No. 446-010-62. (City Manager)
Staff recommends consideration and direction from Council.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___ Special Arvin City Council Meeting Agenda – February 20, 2024

Page 2 of 2 ends

C. Consideration and Approval of Amendment No. 2 to Agreement No. 2022-29 Professional Consultant Services between City of Arvin and QK to Include Construction Management and Construction Staking Services for the Kovacevich Park “Field of Dreams and Baseball Teams” Project. (City Manager)
Staff recommends approval of Amendment No. 2 to Agreement No. 2022-29 Professional Consultant Services between City of Arvin and QK to include construction management and construction staking services for the Kovacevich Park “Field of Dreams and Baseball Teams” Project.

Motion __________ Second __________ Vote __________
Roll Call: CM Murillo ___ CM Reyes ___ CM Horton ___ MPT Borreli ___ Mayor Trujillo ___

5. CLOSED SESSION ITEM(S)
A. CONFERENCE WITH LABOR NEGOTIATORS (Government Code
§54957.6):

Agency Negotiator: City Manager
Employee Organizations: Arvin Police Officers Association (APOA) and Central California Association of Public Employees SEIU Local 521.

B. CONFERENCE WITH LEGAL COUNSEL--POTENTIAL LITIGATION
(Government Code §54956.9(b).)
Significant exposure to litigation pursuant to §54956.9(b): eight cases C. THREAT TO PUBLIC SERVICES OR FACILITIES (Government Code §54957(a).)
Consultation with: City Manager and/or City Attorney. (one item) D. CONFERENCE WITH LEGAL COUNSEL: LIABILITY CLAIMS (Government Code §54956.95)
Claimant: Kassandra Hendricks - AIMs File No. FR101830.

Against: City of Arvin

6. ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the Arvin City Council Chambers Bulletin Board not less than 24 hours prior to the meeting. Dated February 15, 2024.

Cecilia Vela, City Clerk

CITY OF ARVIN
Staff Report
Special Meeting Date: February 20, 2024
TO: Arvin City Council
FROM: Christine Viterelli, Grants Manager
Jeff Jones, City Manager / Finance Director
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN TO

APPROVE THE FINANCIAL POLICIES & PROCEDURES AND
INCORPORATE ATTACHMENT 740-A GRANT FUNDING AND
COMPLIANCE POLICY BY REFERENCE.

BACKGROUND:

The financial health and welfare of the City of Arvin are highly dependent upon establishing and maintaining sound financial planning objectives and strategies for implementation. These financial management policies assist the decision-making process of the City Council and City administration while operating independently of fluctuating operating conditions and varying economic circumstances. These policies also provide guidelines for evaluating current activities and proposals for future programs and direct the City's financial resources toward meeting the goals and programs of the City Council’s adopted strategic plan. The implementation of wise fiscal policies enables City officials to protect the public interest and ensure public trust and confidence.

The staff has previously presented this manual, which the City Council approved at the City Council meeting held on October 16, 2018, and is now being revised to add additional sections recommended by Caltrans.

Caltrans has requested that the City of Arvin modify the Financial Policies and Procedures Manual to incorporate sections 7 a-f of its corrected action plan in 2020.

No ordinances of the City of Arvin are required to be updated as a result of the 2020 CAP.

However, due to the nature of the findings and the related corrective action plan to resolve those findings, the Grant Management Policy (Section 740) of the Manual requires updating.

Additionally, Arvin is including and incorporating Caltrans-recommended Grant Policies and Procedures Section 740-Attachment A as a new addition to the policy document.

According to Section 740, the City Council must approve all grant management policies.

The following clauses of Section 740 will be updated in response to the Caltrans corrective action plan(CAP) items are identified in blue font for ease of reading prior to adoption :

3.A.1
Attachment: Staff Report to Adopt Financial Policy Manual_022024 (Financial Policies & Procedures Manual) Grant Management Policy:

4. Indirect costs of administering grant programs will be recovered to the maximum extent feasible.

5. Operating departments have the primary responsibility for seeking out grant opportunities, preparing effective grant applications, and for successfully managing grant programs after they have been awarded.

6. Operating departments should develop a simple system that tracks grant funding availability in their functional areas. Using this system, all capital improvement plan budget requests will evaluate and document the ability of grants to assist in funding the project. a. The methods of payment should be clearly defined in all capital improvement plan budget requests and each proposal.
(Per Caltrans CAP Letter to the city dated April 17, 2020, item 7.c.)

ROLES AND RESPONSIBILITIES
City Council

1. Approves grant management policies.

2. Approves all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager if delegation is allowed by the grantor agency.

City Manager

1. Receives grants and executes related contract documents when delegated to do so by the Council.

2. Develops, recommends and maintains grant management policies.

Operating Departments

1. Develop systems for maintaining ongoing information regarding grant availability within their functional areas of responsibility.

2. Evaluate benefits and costs of specific grant programs on a case-by-case basis:
a. Purpose of the grant program and its consistency with identified City goals and objectives. b. Additional staffing, office space, facilities, supplies or equipment that will be required if the grant is awarded.
c. Ongoing impacts of the grant program after it is completed. d. Responsibilities of other departments and impacts on them in preparing the grant application or performing work scope if the grant is approved.
740-2

3.A.1
Attachment: Staff Report to Adopt Financial Policy Manual_022024 (Financial Policies & Procedures Manual) e. Amount of indirect costs to be recovered from the grant, f. Total program costs, including portion funded through grant revenues and any required City contribution.
g. Source of funding for any required City share.
h. Compliance and audit requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. (1) Ensure that the successful bidder of a federal grant funded project is not under suspension and/or debarment. This is done by going to the SAM website and verifying that the bidder is NOT under suspension or debarment. Print out such proof and maintain in grant file. (added as a result of Federal Single Audit finding 2017-007)

3. Prepare grant applications.
a. Work with the grantor agency in identifying special program requirements and developing strategies for preparing a successful grant application. b. Complete grant application documents.
c. Coordinate with affected departments as necessary.
d. For grants in excess of $5,000, prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis. e. For grants of $5,000 or less, submit the grant application, subject to the following conditions:
• It will not add regular staffing.
• Any matching funds or in-kind contributions are already available within existing resources, and no additional appropriation of unreserved, undesignated fund balance or working capital is required.
• At the conclusion of the grant, there will no ongoing commitments or obligations to continue the program.
• The purpose of the grant program is clearly consistent with current City plans, policies and goals.

4. Administer grant programs if awarded.
a. For grants in excess of $5,000, prepare a Council Staff Report accepting grant award, including grant summary form (see attached), budget amendment request and any other required City forms or documents; and coordinate execution of grant documents by the City Manager and return executed documents to grantor agency.
740-3
b. For grants of $5,000 or less, execute and return grant documents to grantor agency. c. Notify affected departments of grant award.
a. The affected department shall:

1. Clearly define the contract dollar thresholds for each contract/project.

2. Develop a Project Schedule to include Project Costs, Task Order Dollar Thresholds, and Reporting Requirements to ensure that deliverables are met.

3. Require the contractor to develop a fee schedule to identify the components of loaded costs (a lump sum or hourly rate) in the consultant’s proposal. (Per Caltrans CAP Letter to the city dated April 17, 2020, item 7.a., b., d., and e.) d. Maintain financial and other records in accordance with grant requirements. e. Complete and submit required reports, including requests for funds.

3.A.1
Attachment: Staff Report to Adopt Financial Policy Manual_022024 (Financial Policies & Procedures Manual) a. Work with other departments to Ensure that Reporting Requirements of the grant are met.
(Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a.) f. Monitor grant expenditures and receipt of revenues.
a. Review contractor invoices/expenditures to ensure that Project Costs and Task Order Dollar Thresholds are adhered to.
b. Review contractor invoices to ensure that the agreed-upon labor rates that are reimbursed are in accordance with the executed contract. (Per Caltrans CAP Letter to the city dated April 17, 2020, item 7.a., d., and f.) g. Coordinate on-site management reviews by the grantor agency during the grant term. h. Ensure compliance with grant requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. i. Perform the grant work scope.

11.5 d. Prepare and submit any required grant close-out documents. 740-4
Arvin staff has also included “Attachment 740-A” as a new addition to the policy document as suggested by Caltrans.

This should be the last and final step required to have the Caltrans Corrective Action Plan (CAP) lifted so that the City can implement federal grants without requiring Kern County to provide oversight and project completion on federal projects moving forward.

STAFF RECOMMENDATION:

Staff recommends approval of the resolution and adoption of the updated policy.

FINANCIAL IMPACT:

No fiscal impact.

ATTACHMENTS:
1) Resolution of the City Council of Arvin to Approve the Financial Policies and Procedures and Incorporate “Attachment 740-A,” A Grant Funding and Compliance Policy by Reference

3.A.1
Attachment: Staff Report to Adopt Financial Policy Manual_022024 (Financial Policies & Procedures Manual) 2)
Financial Policy Manual Updated 2-20-24 Draft
3) Attachment 740-A (to be incorporated in the Financial Manual)

3.A.1
Attachment: Staff Report to Adopt Financial Policy Manual_022024 (Financial Policies & Procedures Manual)

Page 1 of 2 ends

Reso To Approve Financial Policies & Procedures and Incorporate Attachment 740-A Grant Funding.

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN TO

APPROVE THE FINANCIAL POLICIES AND PROCEDURES AND
INCORPORATE ATTACHMENT 740-A GRANT FUNDING AND
COMPLIANCE POLICY BY REFERENCE.

WHEREAS, the City Council recognizes the need for City of Arvin Financial Management Policies and
WHEREAS, the City Council attended Financial Management Manual workshops in 2018 and the policy has not been updated since 2018; and
WHEREAS, the financial health and welfare of the City of Arvin is highly dependent upon establishing and maintaining sound, financial-planning objectives and strategies for implementation; and
WHEREAS, the City's external financial auditors requested this document as a sound business practice, therefore recommends approval and implementation by the City Council of these financial policies; and
WHEREAS, financial management policies assist the decision-making process of the City administration while operating independently of changing service and financial circumstances and conditions; and
WHEREAS, these policies also provide guidelines for evaluating both current activities and proposals for future programs and direct the City's financial resources toward meeting the goals and programs of the strategic plan; and
WHEREAS, the implementation of wise fiscal policies enables City officials to protect the public interest and ensure public trust and confidence; and WHEREAS, Caltrans has requested that we expand our policy and procedures to include Grant Policies and procedures in Attachment 740-A; and
WHEREAS, Caltrans has requested that Arvin incorporate Sections 7a through 7f from the Caltrans corrective action plan dated April 17, 2020; and WHEREAS, the City of Arvin has incorporated Sections 7a through 7f into policies and procedures and also includes Attachment 740-A to be incorporated into the updated policy.

NOW, THEREFORE, BE IT HEREBY RESOLVED Exhibit’s 1, and 2, attached hereto and incorporated herein by reference be adopted as the City of Arvin’s Financial Management Manual and policy.
/////

3.A.2
Attachment: Reso To Approve Financial Policies & Procedures_022024 (Financial Policies & Procedures Manual)

Page 2 of 2 ends

Reso To Approve Financial Policies & Procedures and Incorporate Attachment 740-A Grant Funding.

I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a special meeting thereof held on the 20th day of February 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

NATHAN HODGES, City Attorney
Hodges Law Group
Exhibits:
1) Financial Policy Manual Updated 2-20-24 Draft
2) Attachment 740-A (to be incorporated in the Financial Manual) I, ______________________________, City Clerk of the City of Arvin, California, DO HEREBY CERTIFY that the foregoing is a true and accurate copy of the Resolution passed and adopted by the City Council of the City of Arvin on the date and by the vote indicated herein.

3.A.2
Attachment: Reso To Approve Financial Policies & Procedures_022024 (Financial Policies & Procedures Manual) Financial Management
Manual
Updated 2-20-24
City of Arvin

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual)

FINANCIAL MANAGEMENT MANUAL
A comprehensive guide to the conduct
of the City's financial affairs
Prepared by Jeff Jones
Finance Director
Approved by Resolution 2024-____

CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) RESOLUTION NO. 2024- DRAFT

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARVIN TO

APPROVE THE FINANCIAL POLICIES & PROCEDURES AND
INCORPORATE ATTACHMENT 740-A GRANT FUNDING AND
COMPLIANCE POLICY BY REFERENCE.

WHEREAS, the City Council recognizes the need for City of Arvin Financial Management Policies and
WHEREAS, the City Council attended Financial Management Manual workshops in 2018 and the policy has not been updated since 2018;and WHEREAS, the financial health and welfare of the City of Arvin is highly dependent upon establishing and maintaining sound, financial-planning objectives and strategies for implementation; and
WHEREAS, the City's external financial auditors requested this document as a sound business practice, therefore recommends approval and implementation by the City Council of these financial policies; and
WHEREAS, financial management policies assist the decision-making process of the City administration while operating independently of changing service and financial circumstances and conditions; and
WHEREAS, these policies also provide guidelines for evaluating both current activities and proposals for future programs and direct the City's financial resources toward meeting the goals and programs of the strategic plan; and
WHEREAS, the implementation of wise fiscal policies enables City officials to protect the public interest and ensure public trust and confidence; and WHEREAS, Caltrans has requested that we expand our policy and procedures to include Grant Policies and procedures in Attachment 740-A; and
WHEREAS, Caltrans has requested that Arvin incorporate Sections 7a through 7f from the Caltrans corrective action plan dated April 17, 2020; and WHEREAS, the City of Arvin has incorporated Sections 7a through 7f into policies and procedures and also includes Attachment 740-A to be incorporated into the updated policy; NOW, THEREFORE, BE IT HEREBY RESOLVED the City of Arvin Financial Management Manual document be adopted as policy.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual)

DRAFT- TO BE CERTIFIED BY THE CITY CLERK UPON APPROVAL
I HEREBY CERTIFY that the foregoing resolution was passed and adopted by the City Council of the City of Arvin at a special meeting thereof held on the 20th day of February 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST
CECILIA VELA, City Clerk

CITY OF ARVIN
By:

OLIVIA TRUJILLO, Mayor
APPROVED AS TO FORM:

By:

Page 2 of 2 ends

Reso to Approve Financial Policies and Procedures

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Financial Management Manual
This manual is distributed to key individuals throughout the organization who are responsible for managing the financial operations of the City. As indicated by its title, the purpose of this document is to provide a single, up-todate reference source of the major policies and procedures that guide the administration of the City's financial affairs.

The following is a brief overview of the contents of this manual.

Section 100
Introduction
Section 500
Budget Policies and Procedures
Overviews the purpose and organization of the
Financial Management Manual, including procedures
for updating and distributing the manual, internal
control concepts, role of fiscal officers, and a summary of other key policy documents.

Section 200
Purchasing Policies and Procedures
**Revised 2-13-24 (Section 250-2 and
adding Attachment 740-A)**
Comprehensively discusses the City's purchasing
policies and procedures, including ethics, objectives,
competitive bidding requirements, specifications,
standards, and purchasing procedures for supplies,
equipment, operating & maintenance services,
consultants, and construction projects.

Section 300 Travel
Guidelines
Includes the travel guidelines approved by the Council
in 2003 and the current mileage reimbursement rate for
the use of personal vehicles on City business.

Section 400
Fixed Assets and Inventory Management
Discusses all of the City's key policies regarding
budget preparation and execution such as the Financial
Plan preparation process, budget amendment
procedures, re-appropriation policies and budget
monitoring procedures.

Section 600
Accounting Policies and Procedures
Summarizes key accounting policies and procedures
such as financial reporting, payroll, payment approval
authority, disaster accounting procedures and security.

Section 700
Administrative Policies and Procedures
**Revised 2-13-24 (Section 740 and adding
Attachment 740-A)**
Includes general administrative policies and
procedures that affect the City's financial operations, such as City Manager Report preparation, grant
management, and donation policies.

Outlines policies and procedures for the financial
management of the City's fixed assets and inventory
items including vehicles, real property, infrastructure, and disposal of surplus property.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 100 Table of Contents
Overview 101-1
Summary of Major Policy Documents 105-1
Internal Control Concepts 115-1
Manual Updating and Distribution 120-1
Department Fiscal Officers 130-1
Section 200

PURCHASING POLICIES AND PROCEDURES
Introduction 201-1
Purchasing Overview 201-3
Ethics - Standards of Conduct in Purchasing Activities 205-1 Centralized Purchasing 210-1
Construction Contract Change Orders 225-1
Standard Bid and Proposal Documents 250-1
Amendments to Agreements 255-1
City Credit Cards 275-1
Source Documents
Purchasing Ordinance 290-1
Check Payments Guidelines 293-1
Purchasing Guidelines 295-1
Section 300

TRAVEL POLICIES ANDPROCEDURES
Travel Guidelines 301-1
Current Mileage Reimbursement Rate 350-1
Section 400

FIXED ASSETS AND INVENTORYMANAGEMENT
Introduction 401-1
Fleet Management 405-1
Accounting for Fixed Assets 415-1
Real Property Acquisition and Disposal 475-1
Surplus Personal and Unclaimed Property 480-1
Section 500

BUDGET POLICIES ANDPROCEDURES
Introduction 501-1
Financial Plan and Budget Preparation Process Overview 505-1 Budget Amendment Requests 540-1
Re-appropriation Policy
Operating Programs 550-1
Capital Improvement Plan Projects 550-5

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Monitoring Fiscal Performance 560
-1
Monthly Expenditure Reports 561-1
Accounting for Completed CIP Projects 565-1
Section 600

ACCOUNTING POLICIES ANDPROCEDURES
Introduction 601-1
Payroll Procedures
Correction of Payroll Payment Errors 631-1
Timecard Approval 631-2
Accounts Payable Procedures
Approval Authorizations 635-1
Disaster Response Accounting Procedures 650-1
Security Deposits 670-1
Section 700

ADMINISTRATIVE POLICIES ANDPROCEDURES
Introduction 701-1
Copier Management Policy 725-1
City Manager Report Preparation 735-1
Grant Management Policy **REVISED 2/13/24 740-1
Employee Use of City Property 750-1
Investment Policy 760-1
Managing Credit Card Acceptance 770-1
Attachment 740-A Grant Funding and Compliance Policy
Section 800

RESERVED FOR FUTURE USE
Section 900

NOTES AND MEMORANDUMS
Attachment A
Grant Funding and Compliance Manual

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 101-Introduction
101-1
The purpose of this manual is to provide a comprehensive, up-to-date procedural guide on the conduct of the City's financial affairs. Although the goal is to provide a “one-stop” reference tool for the City's financial policies and procedures, references will sometimes be made to major freestanding policy documentsratherthan restating orreproducing them in this manual. However, to the extent possible, this approach has been minimized, and in many cases documents that are “freestanding” such as the Fleet Management Program and Travel Guidelines have been directly incorporated into the manual.

If it is to meet its goal, this manual should be easy to read and provide useful information and solutions to an extremely broad range of financial subjects. It must also be up-to-date and easy to access. Accordingly, it has been prepared electronically in a “PDF” format and placed on the City’s Web Site in order to accommodate the changes that will occur over time. As discussed in Section 120, notification about updates will be sent out via email.

As described in the Preface, this manual is divided into seven Sections:
• Introduction (100)
• Purchasing Policies and Procedures (200)
• Travel Guidelines (300)
• Fixed Assets and Inventory Management (400)
• Budget Policies and Procedures (500)
• Accounting Policies and Procedures (600)
• Administrative Policies and Procedures (700)
Each of these sections begins with an overview that further describes its purpose and organization.

In summary, we want this manual to be easy to use and understand in keeping City staff up to date on changes in policies and procedures. If you have any suggestions for improvements that can be made to this manual, please feel free to contact the Department of Finance & Information Technology.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 105-Major Policy Documents Summary
105-1
Complementing the policies and procedures provided in this manual are the following major policy documents that also guide the management of the City’s financial affairs. A brief narrative summary for each of these documents is provided in this section; the department or office responsible for maintaining the document and making it available for distribution is noted at the end of each description.

Citywide Policy Documents
◼ City Incorporation
◼ Municipal Code
◼ Council Policies and Procedures Manual
◼ Advisory Body Handbook
◼ Conflict of Interest Code
◼ City Code of Ethics- (In Process)
◼ General Plan
◼ Conceptual Plan for the City – (In
Process)
◼ Facilities Master Plan: (In Process)
◼ Financial Plan and Budget
Utilities
◼ Wastewater Management Plan – (In
Process)
◼ Refuse Management Plan – (In Process)
Transportation
◼ Transit Plan
◼ Pavement Management Plan
◼ Bicycle Master Plan (In Process)
◼ Flood Management Policy – (In Process)
Administration - General
◼ Goals and Objectives Reporting System
◼ Manual for Preparing Council Agenda
Reports
◼ Emergency Response Plan – (In Process)
Administration-Human Resource Management
◼ Personnel Rules and Regulations
◼ Employer/Employee Relations
Resolution
◼ Memorandums of Agreement
◼ Affirmative Action Plan/Sexual
Harassment Avoidance Policy
◼ Drug Free Workplace Policy
◼ Anti-Discrimination Plan
Financial & Information Technology
◼ Revenue Management Manual
◼ General Fund Five Year Forecast
◼ Investment Management Plan
◼ Cost Allocation Plan
◼ Quarterly Financial Reports
◼ Comprehensive Annual Financial Report
(CAFR)
◼ Information Technology Strategic Plan
◼ Information Technology Policies and
Procedures Manual – (In Process)
◼ Risk Management Manual
◼ Safety/Loss Control Manual

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Summary of Major Policy
Documents
Disposal 105-2

CITYWIDE POLICY DOCUMENTS
City Incorporation. The City was incorporated on December 21, 1960, as a general law city and as such draws its authority from the Constitution and laws of the State of California. The City has a council/manager form of government and is governed by a five-member elected council. The City Manager is appointed by the City Council. The City provides the following services: police, community services, street construction and maintenance, planning and zoning, street cleaning, transit, sanitation, and general administrative services.

Municipal Code. The Municipal code contains all of the regulatory, penal, and administrative ordinances of the City of Arvin, codified according to the Government Code of the State of California. Responsibility: City Clerk
City Council Policies and Procedures Manual. This manual establishes guidelines for the conduct of Council meetings. It also sets forth other policies and procedures related to the Council such as appointments to advisory bodies, Council compensation, and Council/staff relationships.

Responsibility: City Clerk
City Code of Ethics. The purpose of this code is to establish and communicate City standardsfor ethical conduct. Containing examples, it addresses conflicts-of-interest (real and perceived), public confidence, acceptance of favors, use of confidential information, use of City facilities, contracts, outside employment, personal investments, and each individual employee's personal responsibility for ethical behavior. Responsibility: Administration
General Plan. A General Plan is the blueprint of a community's future addressing land use, transportation, housing, open space preservation, conservation of resources, public safety, and noise. In addition to these mandated topics, called elements, the City’s General Plan also addresses energy conservation, park and recreational facility development, water, and wastewater treatment facilities. Responsibility: Planning
Conceptual Plan for the City. This plan guides development and change in the central business district by providing design concepts and policies for key areas of the City. Responsibility:

Planning
Financial Plan and Budget. The City uses a one-year financial planning process in preparing its budget. The overall goal of the City's Financial Plan is to establish and maintain effective management of the City's fiscal resources. To accomplish this objective, the City uses a policydriven, goal-oriented budgeting process. Accordingly, the Financial Plan identifies key financial policies, major goals, program objectives, and appropriates the resources necessary to accomplish them. Responsibility: Finance & Information Technology

UTILITIES
Refuse Management. This policy document provides a plan for delivering services and determination of rates for the Citizens. Responsibility: Administration and Mountainside

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Summary of Major Policy
Documents
Wastewater Management Plan. Wastewater is another critical resource consideration for the City. Upgrades to the current wastewater treatment plant and other large capital requirements required to modernize the entire infrastructure will significantly influence financial planning for many years to come. This document is a policy instrument that defines and analyzes the key wastewater issues facing the City and recommends solutions. Responsibility: Administration and Veolia

TRANSPORTATION
Transit Plan. This plan outlines one year’s goals and objectives for transit system operation and objectives. Transit
Pavement Management Plan. The City maintains miles of streets representing a significant community investment in infrastructure and rights-of-way. The plan's objectives are to establish design and maintenance standards, prioritize maintenance actions, schedule long term maintenance activities to obtain maximum pavement life, and protect the investment made in pavement systems.

Responsibility: City Engineer
Flood Management Policy. The City of Arvin is in a natural flood plain. The objectives of this policy document include preventing the loss of life and minimizing property damage from flooding. Additionally, the policy establishes design capabilities, development guidelines, flood management standards and priorities, and an action plan. Responsibility: Administration

ADMINISTRATIVE
Goals & Objectives Reporting System. The Financial Plan identifies major goals to be accomplished over the budget year. Formal reports are provided to the Council on a quarterly basis which report on our progress in accomplishing these goals as well as the status of capital improvement plan projects and other key objectives. Responsibility: Finance Manual for Preparing Council Agenda Reports. This document outlines the format, content, and procedures to be used in preparing and processing Council Agenda Reports. Administration

HUMAN RESOURCE MANAGEMENT
Personnel Rules and Regulations. This section establishes the City's procedures for attracting and retaining qualified employees as well as assuring that appointments and promotions are based on fitness and merit. Responsibility: Administration
Employer/Employee Relations. City Council Resolutions provides procedures for the administration of employer/employee relations between the City and its employee organizations and for resolving disputes regarding wages, hours, and other terms and conditions of employment.

Administration
Memorandums of Understanding. The City has entered into agreements (MOU's) with each of 105-3

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Summary of Major Policy Documents
its employee units that govern terms and conditions of employment. Responsibility:

Administration
Affirmative Action Plan. The City is committed to providing equal opportunity in its hiring practices and ensuring that we have a work environment free from harassment. This document contains the City's policies and procedures designed to achieve these goals. Responsibility:

Administration
Drug-Free Workplace Policy. It is the City's goal to maintain a safe, healthful, and productive work environment for all of our employees. This document sets forth our commitment to this goal and establishes policies and procedures designed to achieve it. Responsibility: Administration Safety/Loss Control. The City's policies and procedures designed to prevent injuries to our employees, protect our property from damage, and ensure the safety of the public are provided in this document. Responsibility: Administration

FINANCIAL
General Fund One Year Fiscal Forecast. The City begins each of its one-year Financial Plans with a detailed forecast of the General Fund’s projected financial position for the next year. This forecast is provided to the Council in conjunction with the goal-setting process. The forecast looks at trends for the past five years in the consumer price index, population, revenues and expenditures.

Based on these past trends as well as economic forecasts prepared for the state and region by the State Controller’s Office, and other key assumptions prepared by the staff about likely revenue and expenditure factors that will affect the upcoming Financial Plan, the forecast provides an “order of magnitude” feel for the fiscal challenges likely to face the City in preparing the budget.

Responsibility:Finance
Investment Management Plan. The purpose of this plan is to establish strategies, practices, and procedures to be used in administering the City's investment portfolio in accordance with the City's adopted Investment Policy. Responsibility: Finance
Cost Allocation Plan. The cost allocation plan identifies the total cost of providing City services by allocating indirect costs such as accounting, personnel, legal, and facility usage to direct program cost areas. This information is used in setting City fees, reimbursing the General Fund for services provided to other funds, evaluating service delivery options, and recovering grant administration costs. The plan is updated every year in conjunction with the Financial Plan.

Responsibility: Finance
Monthly and Quarterly Financial Reports. In addition to providing up-to-date, on-line access to City financial information, the Department of Finance and Information Technology publishes interim financial statements on a monthly and quarterly basis. Monthly reports are distributed to the operating departments at a detailed level for ongoing monitoring and tracking of revenues and expenditures. Formal quarterly reports are prepared for distribution to a broader group of end users that summarize revenues, expenditures, and fund balance, and highlight key trends and issues. The purpose of these reports is to provide meaningful information on an ongoing basis 105-4

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Summary of Major Policy Documents
regarding the City's financial position as well as emerging trends. Responsibility: Finance Comprehensive Annual Financial Report (CAFR). The CAFR includes the City's audited general purpose financial statements as well as a comprehensive review of the City's financial operations and statistical information of general interest about the Arvin community.

Responsibility: Finance
Risk Management. The City's goals, policies, and procedures regarding risk management activities are provided in this document. Responsibility: Finance 105-5

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 115-Internal Control Concepts
115-1
Faithful stewardship of the public assets and resources that have been entrusted to us is the responsibility of all City employees. Assuring appropriate internal control over the use of these assets is one of the key tools available to us in meeting this responsibility. The following is an outline of internal control concepts.

PURPOSE OF INTERNAL CONTROLS
The objective of internal control systems is to provide reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and to ensure that transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived, and that estimates and judgments are required to be made by management in evaluating these costs and benefits.

INTERNAL CONTROLS ARE FOR THEEMPLOYEE
By establishing procedures that reduce the opportunity for employees to make unauthorized transactions, the City protects employees from unwarranted suspicions when unusual events or trends are identified.

STANDARD INTERNAL CONTROLS
The three most common types of internal controls are using and documenting standard operating procedures; formalizing approval authorizations; and separating duties. None of these approaches in themselves can guarantee the appropriate use of City assets at all times, but they represent a reasonable effort to reduce the opportunity for misuse of City assets.

SEPARATION OF DUTIES
Of the three approaches noted above, "separation of duties" is the most common internal control methodology by ensuring that no one individual has total control over an accounting transaction.

For example, the responsibility for the purchasing/disbursement function would ideally be segregated between separate departments or individuals as follows:
◼ Purchasing (authorization to acquire)
◼ Receiving (approval to pay)
◼ Accounting (disbursement)
However, no system of internal control based on separation of duties will be successful if there is collusion between parties. Further, any employee with "larceny in their heart" will identify ways to "beat the system." However, this should not deter an organization from establishing reasonable controls to reduce the opportunity and temptation to misuse City assets.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 120-Manual Updating & Distribution
120-1
◼ Email notification will be used for all manual additions and updates. It will be clearly titled “Financial Management Manual Update” and will reference the updated sections. ◼ The e-mail notification will be sent to everyone on the Distribution List. (See the following page)

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 120
-2
Administration
City Manager
Management Analyst
City Clerk
Director of Finance & Information Technology
Financial Analyst
Accountant
Accounting Technician
Audit Firm
City Attorney
Contract City Attorney
Building & Planning
Contract City Planner
Building Inspector
Parks & Recreation
Manager of Parks & Recreation
Public Works
Contract City Engineer
Public Works Supervisor
Utilities
Wastewater Contractor
City Refuse Contractor
Police
Police Chief
Administrative Assistant
Lieutenant
Transportation
Manager of Transportation
Updated August 2015

DISTRIBUTION LIST

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 130-1
Section 130 – Dept. Fiscal Officers
Each Department Head designates one employee to serve as their department’s Fiscal Officer.

The following is an outline of fiscal officer roles and responsibilities:

Role of Fiscal Officers
□ What should fiscal officers be doing?
□ What are they doing?
◼ If there’s a difference, what should we do about it?
General Consensus on Roles
□ Departmental resources for budget preparation.
□ Departmental resource for budget execution.
◼ Facilitator for departmental communications regarding the City’s fiscal policies and operations.
□ Departmental representatives with the responsibility for communicating financial concepts throughout the organization.
□ Sounding board for the development and implementation of financial policies. ◼ Network for sharing Citywide what works (and what doesn’t) in managing departmental fiscal affairs.
□ Framework for establishing minimum levels of consistency, recognizing that departments are different, and accordingly, procedures may need to be different. ◼ Department resource for purchasing process (a key form of “budget execution”). □ Liaison with Finance & Information Technology (IT) for departmental fiscal issues.

How to Best Perform These Roles and Responsibilities
Clear Roles
Ensure that the responsibilities of the following in coordinating departmental fiscal activities with the Finance & IT Department are clear.
□ Department Heads
□ Division Managers
□ Fiscal Officer

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 130-2
Department Fiscal Officers
Clear Policies
□ Create concise policies and procedures compiled into one document which provide good overall guidance in conducting the City’s financial affairs. □ Do not focus on detailed procedures designed to accommodate every situation. □ Prepare a concise directory of key policy documents for further reference (such as property management, purchasing and fleet management).
◼ Help bridge the “learning curve” for new Fiscal Officers and Division Managers. Concise policy guides like above will be useful in making this bridge. ◼ Rules keep changing, and obviously, this makes the Fiscal Officer’s job more difficult. Implicit (maybe explicit) recommendations: Stop changing the rules (or at least make sure that the benefit of the change is worth the effort required to communicate and implement it).

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 130
-3
Administration
Finance & Information Technology
Building Department
Police
Public Works
Transit
Wastewater
City Manager
Finance Director
Community Development Director
Chief of Police
Public Works supervisor
Transit Manager
City Manager

LISTING OF DEPARTMENT FISCAL OFFICERS

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 201 – Purchasing Goods & Services
201-1

OVERVIEW
The purpose of this chapter is to guide staff members in purchasing goods and services on behalf of the City by establishing responsibilities and authorization levels, outlining statutory requirements, and setting forth the policies and procedures that govern purchasing activities.

These guidelines are not intended to address every issue, exception or contingency that may arise in the course of purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources.

PURCHASING SYSTEM OBJECTIVES
The purchasing ordinance (Municipal Code) and purchasing resolutions — the policies and procedures set forth in this chapter form the City's purchasing system. This system has been developed in order to achieve the following objectives:
□ Secure goods and services at the lowest cost possible commensurate with quality requirements. □ Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City.
□ Ensure competition and impartiality in all purchasing transactions to the maximum extent possible.
□ Standardize procedures where appropriate to ensure that organization-wide policies and goals are achieved.
□ Maintain department responsibility, initiative and flexibility in evaluating, selecting and purchasing goods and services.
□ Implementsimple yet effective internal control proceduresthat appropriately support planning, maximize productive use of public funds and protect City assets from unauthorized use. □ Coordinate organization-wide purchasing activities for commonly used items. □ Communicate organization-wide purchasing goals, policies and procedures to departmental staff involved in purchasing activities.
□ Decentralize decision-making to the maximum extent possible consistent with prudentreview and internal control procedures.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction
201-2

PURCHASING AUTHORITY
The City's purchasing ordinance delegates purchasing authority to the City Council as well as the City Manager, up to certain limits, as well as any other representatives designated by the City Manager with limits. Purchasing authority responsibilitiesinclude:
□ Developing and prescribing such administrative policies, forms and files as may be reasonably necessary for the internal management and operation of City purchasing policies and procedures.
□ Purchasing or contracting for supplies, equipment, services and construction projects as required by the operating departments in accordance with City purchasing policies and procedures.
□ Negotiating and recommending execution of contracts.
□ Procuring needed quality goods and services at minimum expense. □ Ensuring as full and open competition as possible for all purchases. □ Consolidating department orders for similar items, ensuring quantity discount pricing whenever possible.
□ Developing and maintaining department awareness of purchasing and pricing principles, marketing conditions and new products.
□ Inspecting supplies and equipment delivered, as well as contractual services performed, to determine their conformance with the specifications set forth in orders and contracts; and, in this connection, having the authority to require chemical, physical or other tests of samples submitted with quotations or bids, or of delivery samplings, which may be necessary to determine quality and conformance with specifications.
□ Establishing procedures for, and assigning duties to, staff engaged in receiving, storing and issuing purchased supplies, ensuring that supply levels are consistent with usage requirements. □ Facilitating the transfer of surplus or unused supplies and equipment among departments as needed.
□ Selling or exchanging surplus supplies and equipment, provided that they cannot reasonably be used by any department.

PURCHASING ORGANIZATION
As provided in the purchasing ordinance, responsibility and accountability for purchasing activities has been delegated by the City Council to the City Manager within certain limits. As noted under purchasing system objectives, maintaining department responsibility, initiative and flexibility in purchasing activities and decentralizing decision-making to the maximum extent possible, are specific objectives of the City's purchasing system. However, this can only occur

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction
201-3
when organization-wide guidelines are clearly set forth and then followed.

General responsibilities for setting and implementing purchasing system policies and procedures are summarized in Exhibit 201-A.

PURCHASING SYSTEM OVERVIEW
Regardless of the type of item or service being acquired, virtually every purchase transaction goes through seven distinct stages in varying degrees:
□ Assessing and determining resource needs.
□ Developing specifications.
□ Soliciting and evaluating quotations, bids or proposals. □ Selecting the best proposal.
□ Awarding the contract or purchase order and authorizing work to proceed. □ Receiving and inspecting goods or services to ensure they conform to specifications. □ Paying the vendor when contract terms have been met.

The type of purchase as well as its estimated cost determine the formality with which each stage is completed and documented. For this purpose, the City has identified two basic types of purchases:
□ General Purchases. Contracts and purchases for supplies, equipment, operating & maintenance services and construction projects.
□ Consultant Services. Professional advice provided to the City by specially trained and experienced individuals or firms regarding economic, financial, engineering, planning, architectural, environmental, legal or administrative matters.

Procedural categories, purchasing authority levels and features for each of these purchase types are summarized in Exhibit 201-B.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing System Responsibilities Exhibit 201-A
201-4
◼ Elect the City Council
City
◼ Adopt purchasing ordinance.
◼ Adopt resolution setting purchasing guidelines.
◼ Approve Request for Proposal (RFP) documents for general purchases in excess of $30,000 and consultant services in excess of $30,000.
◼ Delegate authority to award contracts if they are within budget to the City Manager.
◼ Award contracts if they exceed the budget.

Policies: Ordinances andResolutions
◼ Implement purchasing policies.
◼ Delegate purchasing authority.
◼ Award major contracts.
◼ Approve RFPs for general purchases $30,000 and below; and $30,000 and below for consultant services.

Administrative Policies and Procedures
◼ Develop and implement purchasing guidelines.
◼ Monitor and evaluate system performance.
◼ Set payment schedule.
◼ Approve purchase orders for general purchases (except“job order contract” task orders) $10,000 and below.
◼ Approve for payment “job order contract” task orders for approved constructionprojects.

Organization-WideProcedures
◼ Develop and implement departmental purchasingprocedures. ◼ Delegate departmental purchasing authority.
◼ Request Approval of major departmental purchases.

DepartmentalProcedures
◼ Purchase, receive and pay for goods and services in
accordance with City and departmental guidelines.
◼ Maintain required purchasing records.
◼ Manage departmental inventories.

Voters
City Council
City Manager
Director of Finance & IT
City Engineer
Department Heads
Authorized Employees

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing System Overview Exhibit 201-B
201-5
Type Category Features
Over-the-Counter ◼ No specific requirements; competitive bidding to be used whenever practical.

Up to $15,000 ◼ Bid award by department via voucher or
purchase order.
◼ Job Order Contract (JOC) Task Orders
by the City Engineer.

Open Market
◼ Department solicits at least 3proposals;
>$15,000 to (may be verbal with written quotes). Must be posted on public bulletin board in City Hall. Written bids
submitted to City Clerk and kept for one year.
$30,000 ◼ Bid award by Finance via purchase order or contract (or JOC Task Order by the City Engineer).

GENERAL

PURCHASES
Formal ◼ Formal Bid or RFP documents.
◼ Advertising for sealed bids or proposals.

Includes supplies, Greater Than (Mailed notice in the case of construction projects.) equipment, operating or $30,000 ◼ City Council approves soliciting for bidsor maintenance services proposals and awards the contract
and construction projects. (or approves JOC Task Order). ◼ Same as above except the Council
approves Bid/RFP documents and soliciting
Greater Than for proposals; contract award generally
$30,000 delegated by Council to the City Manager.
◼ City Manager authorized to approve all JOC Task
Orders, not to exceed Council-approved annual
limits.
◼ No specific requirements;
Less Than proposals to be solicited whenever practical. $15,000 ◼ Proposal award by Department via voucher
or purchase order.
◼ Proposals solicited whenever practical.

CONSULTANT >$15,000 to ◼ Contract negotiated by Department.

SERVICES $30,000 ◼ Contract award by City Manager via purchase order or contract.

Includes advisory Formal
services from professionals ◼ Formal RFP document.
such as engineers, Greater Than ◼ Council authorizes staff to request architects, attorneys and $30,000 proposals and generally delegates contract other specialized award to the City Manager.
consultants. Note: These are general guidelines; the evaluation and selection process for consultant services may vary on a case-by-case basis.

Formal Bid or Proposal Process

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 205-1
Section 205-Ethical Standards of Conduct

OVERVIEW
The purpose of this policy is to set forth the ethical standards of professional behavior expected of all officials and employees conducting purchasing activities on behalf of the City.

STANDARDS OF CONDUCT
Every employee or official engaging in purchasing activities on behalf of the City is required to employ the following standards of conduct:
• Consider, first, the interests of the City in all transactions. • Carry out the established policies of the City.
• Buy without prejudice, seeking to obtain the maximum value for each expenditure of public funds.
• Subscribe to and work for honesty and truth in buying and selling, and to denounce all forms and manifestations of commercial bribery.
• Cooperate with all organizations and individuals engaged in activities designed to enhance the development of purchasing practices.
• Respect obligations to others and require the same respect from others for theirobligations.

PROHIBITED PRACTICES
The following practices are specifically prohibited in performing purchasing activities on behalf of the City:
• Having a financial or personal beneficial interest (directly or indirectly) in any contract or purchase order for supplies, equipment, services, or projects furnished to the City. • Accepting or receiving (directly or indirectly) from any person, firm, or corporation to whom any contract or purchase order may be awarded (by rebate, gift or otherwise) any money or anything of value, or any promise, obligation or contract for future reward or compensation.

Inexpensive advertising items bearing the name of the firm—such as pens, pencils, paper weights or calendars—are not considered articles of value or gifts in relation to thispolicy. • Using information available to officials and employees, solely because of their City position, for personal profit, gain or advantage.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 205-2
Ethical Standards of Conduct
• Directly or indirectly furnishing services or information not available to all prospective bidders to any person or firm bidding on, or who may reasonably be expected to bid on, a contract with the City.
• Providing confidential information to persons to whom issuance of such information has not been authorized.
• Using a position or status in the City to solicit (directly or indirectly) business of any kind; or to purchase products at special discounts or upon special concessions for personal private use from any person or firm who sells or solicits sales to theCity. • Serving the interests of any organization (either as an officer, employee, member of the board of directors, or in any capacity for consideration) which transacts or attempts to transact business with the City for profit when such employee holds a City position of review or control—even though remote—over such business transactions.

RESPONSIBILITY
• Employees. Each employee is responsible for following these practices. Violation of this policy may result in disciplinary action, termination of employment or criminal prosecution. • Department Heads. Department heads are responsible for ensuring that all employees of their department who conduct purchasing activities possess a thorough understanding of these standards of ethical conduct and prohibited practices.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 210-Centralized Purchasing
210-1
Purchasing responsibilities have generally been delegated to theoperating departments. However, in selected circumstances, responsibilities for purchasing goods or services used on an organization-wide basis have been assigned by the City Manager to a single department in order to reduce administrative costs as well as to achieve “best pricing” through volume purchases. The following summarizes those areas where purchasing responsibilities have beencentralized:

Purchase Department
• Construction projects and related services Public Works: City Engineer Public Works: Buildings/Chief for PD
Department Heads
• Office systemsfurnishings
• Office supplies and paper
• Off-site copying Finance & IT/Chief for PD
Finance & IT/Chief for PD
Finance & IT/Chief for PD
Finance & IT/Chief for PD
Department Heads
City Clerk
Finance & IT
• Copiers
• Computer workstations, file servers, printers and
organization-wide software standards
• Telephones
• Radios and cell phones
• City letterhead and envelopes
• Project financings
In selected circumstances, assigned departments may delegate purchasing responsibilities on a case-by-case basis. For example, the Public Works M a n a g e r may delegate purchasing and project management responsibilities to a designated Public Works employee.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 225–Construction Contract Change Orders
225-1

OVERVIEW
When the City awards a construction contract, the need for contract change orders (CCO’s) is not unusual. CCO’s are required whenever the scope of work changes from that in the original contract or an unknown condition of the site requires a change in the scope of work. Usually, a contingency amount is established when the project budget is finalized upon contract award to accommodate limited CCO’s. The purpose of this policy is to establish limits of authority for approving construction project CCO’s.

GOALS

1. Ensure appropriate authority and accountability in the approval of change orders.

2. Minimize the time needed to approve a CCO in order to avoid project delays.

3. Establish a system under which the organizational level at which approval is given is commensurate with the size of CCO and size of project.

4. Eliminate the potential for approval of a CCO when contingency funds are insufficient.

POLICIES
Conditions for Approval of CCO's by Staff

1. Sufficient contingency funds are budgeted and available in order for the City Engineer or City Manager (approved designees) to approve a CCO.

2. The nature of work in the CCO is not significantly different from that in the contract.

3. Authorization limits are based on an individual CCO amount, not the aggregate amount of all CCO’s.

4. Authorization limits apply to CCO’s for increases in contract amounts only.

5. When the aggregate amount of CCO’s reaches 75% of the contingency, the awarding authority shall be informed of the status of the project and the sufficiency of funding to complete the project.

6. Work will not be broken up into multiple CCO’s in order to circumvent this policy.

7. All CCO's must be in writing and approved by the appropriate contract parties consistent with the authorized limits established in this policy.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Change Orders

8. A copy of each approved CCO will be transmitted promptly to the Finance Division.

9. The City Manager may grant approval of CCO's in excess of $30,000 under the following circumstances (all three factors must be present):
a. Immediate approval of the CCO is necessary to avoid delay. b. The CCO is an integral and mandatory component of the project. c. The costs associated with delay of the project would be excessive.

The City Engineer is responsible for carrying out this policy.

Authorization Limits

1. City Engineer Must request approval

2. City Manager Not to exceed $30,000

3. City Council Greater than contract or above $30,000* 225-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 250-Standard Bid & Proposal Docs
250-1

OVERVIEW
The standard bid and proposal documents provided in this section have been developed for use in a broad range of purchasing situations: supplies, equipment, operation & maintenance services and consultantservices.(Bid documentsfor construction projects have been specifically excluded, since all construction projects are generally managed by Public Works, and they are responsible for maintaining standard bid documents for construction projects.) Additionally, these standard specifications can be used for the more price sensitive Invitation for Bid process (IFB) as well as the Request for Proposal (RFP) process where criteria other than price may be significant factors in making the purchasing decision.

GOALS
□ Ensure consistency in the preparation of RFP packages. □ Assure that generally accepted terms and conditions are included in all RFP documents. □ Reduce the level of staff resources required to prepare and review RFP documents.

USING THE STANDARD DOCUMENTS
Accessing the Standard RFP Documents. These boilerplate documents have been installed on the City’s Web Site.

Because changes will undoubtedly be made to these documents over time, it is essential in ensuring consistency in the preparation of IFB and RFP documents that these “boilerplates” be used for each package, not a previous package that you may have used for a similar purchase. Finance is committed to ensuring that the City’s standard package on the City’s Intranet containsthe latest version of these documents; however, this update effort will be wasted if the latest version is not used for each procurement.

Contents. As discussed in greater detail below, the City's standard RFP documents consist of the following elements:
□ Notice inviting bids (requesting proposals)
□ Table of contents
□ Description of work
□ General terms and conditions
□ Special terms and conditions
□ Agreement
□ Insurance
□ Proposal submittal form(s)
□ Bidders list (prepared as part of the total package but not mailed to vendors)

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Standard Bid and ProposalDocuments
250-2
Although these documents should generally be used exactly as formatted, there will be times when changes are appropriate. In these circumstances, departments should clearly highlight any deviations from our standard specifications when submitting them for review. (Better yet:
coordinate your proposed changes with Human Resources (for insurance issues), Finance and the City Attorney’s Office before submitting them—the review process will go even quicker!) One of the advantages of the standard documents is to reduce the amount of time required for preparation and administrative review; unless deviations are highlighted, reviewing staff are going to assume that departments have faithfully used the standard documents, and will not review them in detail.

DESCRIPTION OF THE STANDARD DOCUMENTS
Notice Inviting Bids (Requesting Proposals). As reflected in the sample, the bias is towards making the information presented in the notice as concise as possible. The title “Notice Requesting Proposals” should be used whenever an RFP process is being used. As a “cover page” to the document, the City’s logo is formatted directly into this document.

Table of Contents. It’s always useful to number pages and have a reference as to what’s in the package.

Description of Work. This is the “meat” of the package—what do you want to buy, what does it have to do, how should it perform? Section 205-B of this manual provides an overview of the factors that should be considered by departments in preparing specifications. The term “work” is used to reflect the broad range of purchases that can be made using these documents. If this will be an RFP for consultant services, this section should describe the tasks—or work—for which you are requesting proposals. The “work sample” provided in this package is the purchase of a tree stump grinder. While this provides some general idea of how to prepare “open specifications” for a commodity-type purchase, this section of the package by its very nature cannot be “standard.” But that’s the purpose of using boilerplate documents: freeing departmental resources to focus on the important stuff—like what you want to buy—rather than the repetitive, mundane stuff that applies to every purchase.

General Terms and Conditions. This section includes conditions that should be addressed in every formal purchasing situation. They have been arranged into three basic groups:
□ Proposal requirements
□ Contract award and execution
□ Contract performance
The City must develop and maintain contract management & project implementation procedures and guidelines in accordance with existing federal and state regulations, including but not limitedto:
a. Projectcosts,schedules, and reporting requirementsso that deliverables are met.
b. Contract dollar thresholds are determined for eachcontract. c. Method of payment is defined in each proposal.
**(REVISED 2-13-24 per Caltrans CAP item 7, a-c)**
Special Terms and Conditions. Every purchasing situation will be different, and it is not

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Standard Bid and ProposalDocuments
250-3
reasonable to assume that “one size will fit all.” This section contains language for the most “common” special circumstances, organized into the following twelve areas:
□ Invitation for bids
□ Open contract period or estimated quantities

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Standard Bid and ProposalDocuments
250-4
□ Use of brand names
□ Performance standards
□ Recycled products
□ References
□ Bidders’ security and performance bonds (rarely
used for non-construction purchases)
□ Request for proposals
□ State cooperative purchasing program
□ Ownership, delivery and presentation of written or
graphic products
□ Alternate proposals
□ Bid specification limits (accuracy of specifications) Departments are free to “mix and match” these components as appropriate: use the “delete” or “cut and paste” features of Word for those that don’t apply. Additionally, if you have other terms and conditions that you want to include not specifically addressed in general terms and conditions section—or the boilerplates already provided in this section—this is the place to put them.

Agreement. This standard agreement should be included in each IFB/RFP package, so the contractor knows what we expect to execute if awarded the contract. You’ll notice it’s very short.

This is possible because many of the terms and conditions that we might otherwise expect in an agreement have been incorporated into the standard IFB/RFP package. In using the agreement, the highlighted sections represent parts of the agreement that will have to be modified on a caseby-case basis.

If you are entering into a purchase agreement where you didn’t use the standard IFB/RFP package, the agreement will have to be expanded to include those areas of concerns normally addressed through the bid package. Please request a boilerplate agreement from the City Attorney.

Insurance. This part provides the City's standard insurance requirements for the following kinds of purchases—pick the one that’s right for your specific circumstances:
◼ Supplies and equipment—see note
□ Operation and maintenance services
□ Consultant services
□ Environmental services (including consultants)
Again, it is very important that you coordinate any proposed changes in these insurance requirements with Human
Resources.

Proposal Submittal Forms. Well-designed and thought-out proposal submittal forms can be an extremely valuable tool in evaluating bids and proposals by ensuring that key information is presented in a similar fashion by all of the bidders. This is true even for RFP approaches:
 Note: Make sure this
section is renumbered
correctly after your
changes and delete any
inappropriate “subject”
headings.
 Note: For supplies and
equipment, if the vendor will be
providing significant ongoing
maintenance services after
purchase (such as copiers), the
insurance requirements for
operation and maintenance
services should be used.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Standard Bid and ProposalDocuments
250-4
because it is a subjective process, the more you can standardize responses from bidders through submittal forms and questionnaires, the easier it will be to fairly compare and evaluate proposals.

Three kinds of boilerplates are provided for proposal submittals:
□ Proposal submittal summary
□ References
□ Statement of past contract disqualifications
Although references and a statement of past contract disqualifications may not be necessary for all purchases, some kind of submittal form should accompany all proposals. Like the “description of work” and “special terms and conditions” sections of the specifications package, the proposal submittal form will require modification depending on the specific purchase. The following six samples are provided:
◼ Sample A. This is the City's “basic” submittal form, and something like it should accompany all proposals even if additional submittals (like the one provided in Sample E) are also required.
◼ Sample B. This provides another example of a “basic submittal” form for multiple bid items. □ Sample C. Something like this sample proposal submittal form would be especially useful for an RFP package where you expect a large, primarily narrative submittal from the bidders. It also provides a sample format for alternative work programs. □ Sample D. This provides another example of a proposal submittal form as part of an RFP process for consultant type services. It also provides an example for a multi-yearproposal. ◼ Sample E. In this sample, the bid form and the work description are combined in one form for simplicity. In this case, a brief description of the purchase should be provided in the “description of work” section, with a reference to the “proposal submittal form” section.

However, as indicated above, a summary proposal form should also be submitted along with this form to document our standard proposer assurances. ◼ Sample F. This sample is for those limited circumstances—such as engineering, architectural and environmental services—where we will not be requesting price information as part of the initial proposal.

Bidders List. Although this is not a “formal” part of the IFB/RFP package, a listing of bidders should accompany the package as it is reviewed. This listing should not be mailed to vendors with the IFB/RFP package. However, it should be attached to Council agenda and City Manager reports when requesting authorization to invite bids or request proposals.

PRE-RFP INTEREST LETTER
To help ensure a smooth proposal evaluation process, you may want to consider sending a preRFP interest letter to prospective proposers. This has three benefits:
◼ Provides proposers with an early “heads-up” on key dates like the pre-proposal conference,

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Standard Bid and ProposalDocuments
250-5
proposal closing and finalist interviews.
□ Gives you an early idea of who is likely to be interested in proposing on your project and avoids sending large RFP packages to firms who are not interested. ◼ Ensures that you have good mailing address and contact name so valuable time isn’t lost on internal distribution of your RFP. This is especially true for larger firms.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Amendments to Agreements
250-6
Section 255-Amendments to Agreements
After contract award—whether by voucher, purchase order or formal contract—amendments may be needed to reflect changes in the scope of goods or services to be provided. The following summarizes what is required to authorize and document contract changes.

DOCUMENTING WORKSCOPE CHANGES
Attached is a sample “Amendment to Agreement” that can be used in approving contract changes.

It is applicable for almost all types of purchase agreements (supplies, equipment, operation & maintenance services, consultant services) except construction contracts: as set forth in Section 225, separate procedures have been established for managing construction change orders.

Amendments should be numbered.

Please note that some Federal and State agencies may require the use of their agency form and the following may not be allowed.

AUTHORIZING AGREEMENT CHANGES
Construction Contracts
Authorization levels for approving construction contract change orders are set forth in Section 225 of this manual.

Supplies, Equipment, Maintenance & Operation and Consultant Service Contracts The specific authority for approving contract amendments is usually set forth in the agreement itself (Section 5 of our standard agreement format). As a general rule, contracts where the bid or Request for Proposal (RFP) documents were approved by the City Manager should be amended by the City Manager; and contracts where the bid or RFP documents were approved by the Council should be amended by the Council.

General Policy. Staff can request to amend agreements to the cumulative contract amount that they are otherwise not authorized to award. In those cases where the original contract was awarded by a higher purchasing authority, then only that authority has the right to amend those contracts.

Budget Constraints. In all cases, however, staff authorization to increase contract amounts is subject to existing budget availability.

Staging of Contract Costs and Amendments. Using the amendment process in order to avoid competitive bidding or higher authorization levels at the contract award stage is prohibited.

The following provides general guidelines for authorization levels in approving changes to purchase orders and agreements.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Amendments to Agreements
250-7
Department Heads
□ Contract originally awarded by the Department Head. Not to exceed a cumulative amended contract cost of $1,000.
□ Contract originally awarded by a higher purchasing authority such as the City Manager or Council. Not to exceed a cumulative amendment cost of $5,000.

If amendments beyond these limits are needed, it will require the approval of either the City Manager or Council, depending on the type of contract, the amount of the amendment and the cumulative cost of the contract. Moreover, depending on the procedures used in awarding the original contract, amendments may not be possible due to competitive bidding requirements.

Finance Director
For supplies, equipment or operation & maintenance services:
□ Contract originally awarded by the Department Head or Finance Manager. Not to exceed a cumulative amended contract cost of $1,000.
□ Contract originally awarded by a higher purchasing authority (City Manager or Council). Not to exceed a cumulative amendment cost of $5,000.

City Manager
□ Contract or Bid/RPP package originally approved by the Department Head, Finance Manager or City Manager. Not to exceed a cumulative contract cost (including amendments) of $1,000 for supplies, equipment and operation & maintenance services; and $1,000 for consultant services.
□ Bid/RPP package or contract originally approved by the Council. Not to exceed a cumulative amendment amount from the original contract cost greater than $5,000 for supplies, equipment and operation & maintenance services; and greater than $5,000 for consultant services.

If amendments beyond these limits are needed, it will require the approval of the Council.

Moreover, depending on the procedures used in awarding the original contract, amendments may not be possible due to competitive bidding requirements.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Amendments to Agreements
250-8
Council
Any amendment that cannot be approved by the staff as outlined above.

Exceptions
If greater discretionary authority at the Department Head or City Manager level is desired than indicated above, this should be clearly identified in the City Manager or Council Agenda Report approving bid/RFP documents or awarding the contract.

DOCUMENTATION
Amendment requests (such as the City Manager or Council Agenda Report) should include a cost summary of the original contract amount, any amendments to-date, the proposed amendment and the revised contract total.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Amendments to Agreements
250-9
AMENDMENT TO AGREEMENT NO.
(This must be approved by the City Attorney
Before presenting to the City Council.)
THIS AMENDMENT TO AGREEMENT is made and entered in the City of Arvin on [date], by and between the CITY OF ARVIN, a municipal corporation, herein after referred to as City, and [CONTRACTOR NAME], hereinafter referred to as Contractor.

WITNESSETH:

WHEREAS, on [date] the City entered into an Agreement with Contractor for [generally describe the original agreement work scope] per Specification No. [xxxxxx]; and WHEREAS, the City desires to amend the scope of services to include [generally describe the proposed change in the work scope] and Contractor has submitted a proposal for this purpose that is acceptable to the City.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. The scope of services and related compensation is hereby amended as set forth in Exhibit A attached hereto. [Attach proposal letter or other itemization of proposed work and agreed upon compensation referencing the Amendment Number]

2. All other terms and conditions of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above.

ATTEST: CITY OF ARVIN
By:

City Clerk City Manager [or Mayor]
APPROVED AS TO FORM: CONTRACTOR
By:

City Attorney

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 275-City Credit Cards
275-1

OVERVIEW
Purpose
These guidelines establish the City’s basic policies and procedures for using credit cards in making minor supply and service purchases on behalf of the City and paying for travel expenses when on City business.

City Use Only. City credit cards are for official business use only. Charging personal expenses, even if the intent is to reimburse the City later, is prohibited. Doing so will result in disciplinary action.

Objectives
By using credit cards instead of other payment options we hope to:
□ Reduce procurement and payment processing costs.
◼ Improve vendor relations by making “doing business” with the Cityeasier. □ Enhance internal control by better identifying specific employees making minor supply and service purchases on behalf of the City and improving the accuracy of account distributions between programs and projects.
□ Take advantage of cost-saving opportunities by purchasing on the Internet and through catalogs.

Background
In the past, the City limited its card use to a debit card to make purchases for products or services as needed due to time constraints. This usually involved either new vendors with products thatwere needed quickly or expenses for conference hotels that had to be reserved in advance. Unfortunately, using a debit card has several inherent weaknesses that could cause serious problems for the City. If at any time a debit card number or card is stolen, the user has direct access to the City’s general bank account, which holds a regular balance of $500,000 , but at time can be in the Millions. The limit of what can be charged on a debit card is the bank balance.

Stolen charges on a debit card are not protected by the law as are credit card purchases, so debit cards are not allowed. Also, the muni-code is circumvented, since debit cards purchases do not require two signers.

Several factors have led the City to change our approach in using credit cards:
◼ Credit card issuers are no longer willing to issue “generic” cards in the City’s name; they now require them to be held in a specific individual’s name. ◼ Many vendors who once agreed to “open purchase orders” will no longer do so; they require credit card purchases.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 275-2
◼ In those cases where vendors have agreed to “open purchase orders,” we have experienced significant difficulties in ensuring appropriate cost distribution, especially where several departments, divisions and sections use the same vendor for similar purchases. □ Internet and catalog (via telephone and fax) purchasing is much more prevalent (offering significant cost-reduction opportunities for the City), and this requires the use of a credit card.

For these reasons, regarding the City’s use of credit cards, by issuing them to specific individuals, we can improve our internal control and cost accounting procedures.

City past practice and experience in other California cities. Before adopting these guidelines, we analyzed practices in other California cities and evaluated card options (such as “purchase cards” under the “Cal-Card” program versus more generic credit cards). Additionally, we have requested other Cities experiences in “checking-out” cards to employees on a case-by-case basis, and the administrative costs and inefficiencies with this approach. These guidelines reflect the results of this analysis and build on the successful experience of other cities.

Internal Control Concerns
While credit cards provide a cost-effective alternative for purchasing minor items and paying for authorized travel expenditures, the potential for abuse may offset any benefits that they offer. In addressing this concern, two conceptual approaches are available in managing their use:
□ Developing detailed centralized control procedures.
□ Having confidence in the discretion, judgment and ethics of City staff, with appropriate oversight by department heads.
□ Limit the number of credit cards issued.

Based on our organizational values as well as limited central staff resources, the second option is the most appropriate one for the City. Accordingly, the primary responsibility for ensuring the appropriate use of credit cards lies with each employee assigned a card. Department heads are responsible for ensuring that employees are aware of their responsibilities, and for implementing appropriate review and payment procedures within their department.

Summary. Some level of risk is inherent in expanding credit card use in conducting City business, and we should recognize this. However, there are also significant advantages; and with reasonable internal controls and exercise of good judgment by cardholders, we believe these advantages outweigh the underlying potential for abuse.

POLICIES
□ The City Manager may designate who may have the specific need for a creditcard. □ Once approved by the City Manager, Finance issues City credit cards to those individuals. Credit limits are follows City Manager $10,000; Finance Director $15,000 (to be used to pay invoices & other City business); Police Chief, City Directors $4,000; Supervisors $1,000. □ Credit cards should never be used to circumvent established competitive purchasing procedures.

This means no purchases for goods or services should be made in excess of $1,000 and any amount above that limit may require competitive bidding.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 275-3
◼ Credit cards may be used in paying for travel expenses. However, the City’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.
◼ City Officials or City Employees will not use City credit cards for personal expenses even if the intent is to reimburse the City later. Charging personal expenses on City cards is a misuse of City funds and a serious breach of the City’s ethics policy. Doing so—even if the intent is to reimburse the City later—will result in progressive disciplinary action, up to and including termination.

Note: Including minor incidental expenses as a component part of a larger billing—such as personal telephone calls or video rentals on a hotel bill—is allowed if reimbursed at the time the credit card billing is submitted for payment.

Standard Way of Doing Business. Using credit cards is no longer a “special way” of purchasing supplies and services on behalf of the City; for many minor purchases, it has become the standard way of doing business. For those employees assigned City credit cards, purchasing supplies and services on behalf of the City is an integral part of their job duties; and failure to follow City policies and procedures regarding the use of City cards is no different from failure to follow policies and procedures in any other aspect of their job.

PROCEDURES
Requesting Credit Cards. Department heads should submit credit card requests to Finance (via memorandum or email) to approve cardholders and set credit card limits. The Finance Director will then obtain approval to issue the credit card from the City Manager. Department heads need to include supplemental justification for credit limits in excess of $1,000.

Criteria. Credit cards are only issued to regular employees. Department heads should consider the following factors in approving credit cards for their staff and setting credit limits:
□ Ability to hold the employee accountable for purchases made on the card. □ Recognition that delegating authority to an employee to purchase via credit card is not conceptually different from delegating authority to them to purchase from an open contract on a vendor account. In fact, by issuing cards to named holders, accountability is enhanced. □ Frequency of use, diversity of vendors and dollar value of purchases made by theemployee.

Cardholder Agreement. Before receiving a credit card, employees must sign a “credit cardholder use agreement” (Exhibit A) setting forth their obligations under this program.

Competitive Bidding. The City’s competitive bidding standards apply to all types of payment methods, including credit card purchases. Generally, credit card purchases will be for smaller expenditures. While there may be exceptions as allowed under the Arvin Municipal Ordinances, this means individual total purchases of one item should not exceed $1,000, unless previous approval by the City Manager is approved and purchase orders or formal agreements may be needed for purchases in excess of $1,000.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 275-4
Finance has prepared a “streamlined”
voucher for processing credit card
payments makes it easier for
departments to keep track of uses,
reconcile receipts to the monthly
statement and process payments.

Timely Payment. Department heads are responsible for ensuring that each credit card statement (along with appropriate supporting documentation reconciled to the statement) is submitted to Finance for payment in a timely manner. Based on the statement cycle date, Finance has established specific monthly payment schedules for credit card statements. To avoid posting errors, administrative charges and late fees, Finance pays all credit card charges based on the “master account” on a timely basis, even if supporting documentation is not yet received from the operating departments. When subsequently received, the supporting documentation will be retroactively reconciled to the payment. Instances where this occurs should be very rare and due to extenuating circumstances. Accounting staff will notify the Director of Finance of any such instances of late or inaccurate payment submittals. After reviewing the circumstances, the Director of Finance will recommend to the City Manager appropriate follow-up action, including cancellation of card privileges and disciplinary action.

Disputed Charges. Cardholders are responsible for ensuring that the vendor and issuing bank are notified immediately of any disputed charges. Standard forms (provided by the issuing bank) are available from Finance for this purpose. Departments should pay the statement in full— including any disputed amounts—to avoid finance charges and late fees; when resolved, this will result in a credit to the account on the next monthly statement.

Standard Process for Payment. The City’s standard accounts payable system is used in processing monthly credit card statements for payment. Each credit card charge should be listed separately on the credit card payment voucher, and account numbers, purchase descriptions and amounts referenced as appropriate. Supporting documentation for credit card payments should be the same as for any other accounts payable item. This means that
original invoices (or receipts) along with credit card receipts must be retained, reconciled to the credit card statement and attached to the payment voucher.

Guidelines for Departmental Procedures. Specific
procedures for processing credit card payments will vary from department-to-department based on their unique needs.

Departments should document their internal procedures and periodically review them to ensure that they continue to make sense.

Finance is available to assist departments with this.

Credit Card Awards. Awards, Cash Back Fees, Redemption Points, Air Mileage Accruals or any other type of general awards from the credit card issuer are deemed the property of the City of Arvin solely and are to be used to reduce the amount of any purchase as a payment.

Credit Card Processing Fees. There may be a nominal processing fee by the issuing bank. This charge—if any—is the department’s cost responsibility.

Lost or Stolen Cards. Upon discovery by the cardholder of a lost or stolen credit card, they are responsible for ensuring that notification to the issuing bank and the Finance Director are made immediately. Failure to do so may result in making the cardholder responsible for any fraudulent use of the card.

Disciplinary Action. Department heads are responsible for all disciplinary action surrounding misuse of cards, including requesting cancellation of card privileges.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 275-5
Return of the Card Upon Request or Termination. Cardholders will immediately surrender their card upon request of their department head. Human Resources is responsible for retrieving the credit card when an employee separates from the City. Use of the credit card for any purpose after a request for surrender is prohibited.

RESPONSIBILITIES
□ Cardholders. Purchase supplies and services on behalf of the City in accordance with these guidelines.
□ Department Heads. Authorize issuance of credit cards and set credit limits; develop and implement departmental procedures to ensure that payments are appropriately reviewed and approved, processed in a timely manner and that all supporting documentation is retained, reconciled to monthly statements and attached to payment vouchers; and oversee implementation of these guidelines.
◼ Finance. Establish “master account” relationship with issuing bank; issue credit cards as requested by department heads in accordance with these guidelines; process credit card payment vouchers in accordance with the City’s accounts payable policies and procedures; ensure that the monthly “master account” is paid in full on a timely basis; develop guidelines (“best practices”) for departmental payment procedures; help resolve billing disputes; and replace lost or stolen cards. Retrieve credit cards from employees separating from theCity.

SUMMARY
The above statements are guidelines only and cannot cover every issue, exception or contingency that may arise in using City credit cards. Accordingly, the basic standard that should always prevail is to use common sense and good judgment in the use and stewardship of City resources.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Credit Cards: Credit Cardholder Use Agreement Exhibit A

CITYOF ARVIN

CREDIT CARDHOLDER USE AGREEMENT
Employee: Department:

The above-named City Official or employee (Cardholder) of the City of Arvin has been issued a City credit card. The Cardholder has been provided with a copy of the City's credit card policy, and hereby agrees to comply with all terms and conditions set forth therein, including but not limited to:

1. Official Use Only. City credit cards are for official City use only. Charging personal expenses on City cards is a misuse of City funds and a serious breach of the City’s ethics policy. Doing so—even if the intent is to reimburse the City later—will result in progressive disciplinary action, up to and including termination. Minor incidental expenses as a component part of a larger billing—such as personal telephone calls or video rentals on a hotel bill—may be allowed if reimbursed at the time the credit card billing is submitted for payment.

2. Timely, Accurate and Supported Payments. Credit card payments will be processed on a timely basis, and adequate supporting documentation (such as vendor order forms, receipts, invoices and credit card receipts) will be retained for all charges and attached to payment vouchers.

3. Disputed Charges. The vendor and issuing bank will be notified immediately of any disputed charges.

4. Lost or Stolen Cards. Upon discovery of a lost or stolen card, card holder will immediately notify the issuing bank and the Department of Finance and Information Technology. Failure to do so in a reasonable time could make the Cardholder responsible for any fraudulent use of the card, if the bank determines that the City is at fault.

5. Surrender Upon Request or Separation. The credit card will be immediately surrendered upon retirement, termination or upon request of the employee’s department head. Use of the credit card for any purpose after the cardholder is no longer an employee of the City is prohibited.

6. Awards, Cash Back Fees, Redemption Points, Air Mileage Accruals or any other type of general awards are the property of the City of Arvin solely and are to be used to reduce the amount of the purchase or as a payment to the credit card.

7. Unsupported Purchases. If purchases on this credit card are not supported by invoices or approved by your supervisor, the cardholder will be held liable for the unapproved amount and will be required to reimburse the City for those purchases.

8. Credit Card Limit. The credit limit of this card is$ .

9. Other Restrictions (if none, pleasewrite “None”) .

Cardholder Signature Date
DISTRIBUTION: Original—Cardholder Personnel File Copies—Finance, Department Head and Cardholder 275-6
Cardholder Date Finance Director Date
I HEREBY SURRENDER the credit card issued to me by the City of Arvin to the Finance Department. I declare that all outstanding charges on the credit card are for official City business and will be paid through established procedures.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 290-Ordinances for Purchasing
Chapter 3.24

PROCEDURES FOR PAYMENT OF

CLAIMS AND PURCHASES
Article I. General Provisions

PROCEDURES FOR PAYMENT OF CLAIMS AND PURCHASES
Municipal Code for the City

3.04.010 Depository designated.

3.04.020 Withdrawals – Authorized
signors.

Purchase Orders Under $5,000

3.08.080 Open market procedures
A. Minimum numbers of bids.

B. Notice Inviting Bids.

C. Written Bids.

D. Oral Bids.

E. Petty Cash.

Purchase Orders Greater than $5,000

3.08.090 Formal Contract Procedure
A. Notice Inviting Bids.

B. Bidder’s Security
C. Bid Opening Procedure.

D. Rejection of Board.

E. Award of Contract
F. Tie Bid.

G. Performance Bonds.

Procurement of Professional Services

3.08.095 Process

3.08.100 Inspection of Purchases

3.08.110 Surplus Supplies/Equipment
A. Sale or disposal.

B. Notice of Sale.

C. Value Less than $250
D. Oral Bids.

E. Payment method.
290-1

3.04.010 Depository designated. A bank or
savings and loan association designated by the city
council, which is located within Kern County, shall
be the depository of all funds and money coming into
the possession of the treasury of the city, and all such funds and money shall forthwith upon receipt by the
city be deposited therein to the credit of the city.
(Ord. 170 §1, 1982: Ord. 4 §1, 1960).

3.04.020 Withdrawals – Authorized
signors. All withdrawals upon funds and moneys
deposited as required by Section 3.04.010 of this
chapter shall be made upon warrants drawn on the
city treasury signed by the mayor and the city
manager or the mayor and the finance director. In the
absence of the mayor, said warrants shall be signed
by the mayor pro tem and the city manager or the
mayor pro tem and the finance director. When
expediency is required, and the mayor and mayor pro
tem are both absent, said warrants shall be signed by
the city manager and finance director. Expediency
may be required if neither the mayor or mayor pro
tem is reasonably available and timely payment is
required to avoid a penalty, fee, legal exposure, or is necessary to complete an action authorized or
directed by the council while meeting a payment
deadline not set by the city. (Ord. 170 §2, 1982: Ord. 4 §2, 1960). (Ord. No. 429, § 3, 7-5-2016)

3.08.010 System adopted - Purpose.

In order to establish efficient procedures for
the purchase of supplies, equipment and
incidental services, to secure for the city
supplies, equipment and incidental services at
the lowest possible cost commensurate with
quality needed, to exercise positive financial
control over purchases, to clearly define
authority for the purchasing function, and to
assure the quality of purchases, a purchasing
system is hereby adopted. (Ord. 138 §2,
1978).

3.08.010 System adopted - Purpose.

3.08.020 Departments – Estimate filing

3.08.030
required.

Departments – Requisitions for

3.08.040
supplies and equipment.

Purchase orders – Issuance
authority.

3.08.050 Encumbrance of funds.

3.08.060 Annual contracts.

3.08.070 Bidding procedures generally.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Ordinance

3.08.020 Departments – Estimate filing
required. All departments shall file detailed
estimates of their requirements in supplies and
equipment, setting forth specifications in such
manner, at such time, and for such future
periods as the purchasing rules and
regulations shall prescribe. (Ord. 138
§3, 1978).

3.08.030 Departments – Requisitions for
supplies and equipment. Departments shall
submit requests for supplies and equipment to
the council by standard requisition form, or by
other means as may be established. (Ord. 138
§5, 1978).

3.08.040 Purchase orders – Issuance
authority. Purchases of supplies and
equipment shall be made only by purchase
orders except as otherwise provided herein.

No purchase order shall be issued except by
the city council or such city officer as it may
designate. (Ord. 138 §7, 1978).

3.08.050 Encumbranceof funds. Except in
cases where necessary budget adjustments
have been duly authorized, no purchase order
for supplies or equipment shall be issued,
unless thereexists an unencumbered
appropriation in the fund account against
which said purchase is to be charged. (Ord.
138 §8, 1978).

3.08.060 - Annual contracts. The city
council or the city officer designated by the
city council shall have the authority to
negotiate prices set forth in annual contracts
for purchases of repetitively used items and
shall have the authority to accept proposals
from or enter into memorandum accounts
with vendors for items that are required in
minor, undetermined quantities which are not
practical in competitive bidding. (Ord. 138§4,
1978).

3.08.070 - Bidding procedures generally.

Purchases of supplies and equipment shall be
by procedures pursuant to Sections

3.08.080 and 3.08.090. Bidding may be
dispensed with only when: A. Except as
otherwise provided in subsection B of this
section, by this Chapter, or 290-2
pursuant to applicable law, the purchase of
supplies, equipment, materials and public works
projects shall be by bid procedures pursuant to
Sections 3.08.080 and 3.08.090. B. Bidding or open
market procedure may be dispensed with only
when: 1. An emergencyrequires that an
order be placed with the nearest available
source of supply; 2. The amount involved
is less than two thousand five hundred dollars;

3. The commodity can be obtained from only one
vendor; or 4. Competitive bidding or proposal
procedures, substantially similar to the
competitive bidding or proposal procedures in
this Code, have already been utilized either by a
federal, state, county, city or special district
government agency, or by a legitimate
cooperative purchasing agency; and, that the
supplies, equipment, materials or public works
project provided to the City are at the same or better
price, terms and conditions, as was obtained
through such prior competitive bidding or proposal
procedures.”
(Ord. 440 2017).

3.08.080 - Open market procedure—
Purchases under thirty thousand dollars.

Purchases of supplies and equipment of an
estimated value in the amount of thirty thousand
($30,000.00) dollars or less may be made in the
open market pursuant to the procedure
prescribed in this section and without observing
the procedure prescribed in Section 3.08.090.

A. Minimum Number of Bids. Open market
purchases shall, wherever possible, be based on
at least three (3) bids, and shall be awarded to
the lowest responsible bidder.

B. Notice Inviting Bids. Bids shall be
solicited by written requests to prospective
vendors, by telephone, and by public notice
posted on a public bulletin board in the City
Hall, for single purchases amounting to
more than fifteen thousand ($15,000.00)
dollars but less than thirty thousand
($30,000.00) dollars.

C. Written Bids. Sealed written bids shall be
submitted to the city clerk for single purchases
amounting to more than fifteen thousand
($15,000.00) dollars. The city council shall keep
a record of all open market orders and bids for a
period of one year after the submission of bids
or the placing of orders. This record,

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Ordinance
while so kept, shall be open to public
inspection.

D. Oral Bids. Oral bids shall be
obtained from prospective suppliers when the
amount involved is fifteen thousand
($15,000.00) dollars or less, unless, at the
city's discretion, written is fifteen thousand
($15,000.00) dollars or less, unless, at the
city's discretion, written bids have been
obtained or bidding has been dispensed with in
accordance with Section 3.08.070 of this
chapter, or the amount involved is less than
five hundred ($500.00) dollars and the city
council has determined more than one bid to
be impractical; or the purchase is to be made
through the petty cash procedures.

E. Petty Cash. Purchases of a minor nature
may be made through petty cash procedures
prescribed by the city council. Bidding shall
not be required for petty cash purchases. (Ord
138 §10, 1978).

3.08.090 - Formal contract procedure—
Purchases over thirty thousand dollars.

Except as otherwise provided in this chapter,
purchases of supplies and equipment of an
estimated value greater than thirty thousand
($30,000) dollars shall be by written order or
contract with the lowest responsible bidder
pursuant to the procedure prescribed in this
section.

A. Notice Inviting Bids. Notices inviting
bids shall include a general description of the
articles to be purchased, shall state where bid
blanks and specification may be secured, and
the time and place for opening bids.

1. Published Notice. Notices inviting
bids shall be published at least five (5) days
before the date of opening of the bid. Notice
shall be published at least once in a
newspaper of general circulation, printed and
published in the city, or if there is none, it
shall be posted in at least three public places
in the city that have been designated by
ordinance as the places for posting public
notices.

2. Bidder's List. Sealed bids shall be
solicited from responsible prospective
290-3
suppliers whose names are on a bidder's list
maintained by the city, or from responsible
bids have been obtained or bidding has been
dispensed prospective suppliers who have
made written request that their names be added
thereto.

3. Bulletin Board. The city council, by its
designated official, shall also advertise pending
purchases by a notice posted on a public
bulletin board in the City Hall.

B. Bidder's Security. When deemed
necessary by the city council, bidder's
security
may be prescribed in the public notices
inviting bids. Bidders shall be
entitled to return of bid security;
provided, however, that a successful bidder
shall forfeit his bid security upon his
refusal or failure to execute the contract within
ten (10) days after notice of award of
contract has been mailed, unless in the
latter event the city is solely
responsible for the delay in
executing the contract. The city council
may, on refusal or failure of the successful
bidder to execute the contract, award it to
the next lowest responsible bidder. If the
city council awards the contract to the
next lowest bidder, the amount of the
lowest bidder's security shall be applied by
the city to the contract price
differential between the lowest bid
and the second lowest bid, and the surplus,
if any, shall be returned to the lowest
bidder. If the city council rejects all
bids presented and re-advertises the
amount of the lowest bidder's security
may be used to offset the cost of
receiving new bids and the surplus, if any,
shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids
shall be submitted to the city clerk
and shall be identified as "bids" on the
envelope. Bids shall be opened in public at
the time and place stated in the public
notices. A tabulation of all bids received
shall be open for public inspection during
regular business hours for a period of not
less than thirty (30) calendar days after the
bid opening.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Ordinance
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D. Rejection of Bids. In its discretion, the city
council may reject any and all bids presented and
re-advertise for bids pursuant to the procedure
hereinabove prescribed in thissection.

E. Award of Contracts. Except as otherwise
provided herein, orders or contracts shall be
awarded by the city council to the lowest
responsible bidder. Notwithstanding any
other provision in this section, if no bids are
received, orders or contracts may be awarded
by the city council in its discretion without
complying with any further bidding
requirements of this section.

F. Tie bids. If two or more bids received are
for the same total amount or unit price,
quality and service being equal, and if the
public interest will not permit the delay of readvertising for bids, the city council may, in its discretion, accept the one it chooses.

G. Performance Bonds. The city council may
require a performance bond before entering
into a contract, in such amount as it shall find
reasonably necessary to protect the best
interest of the city. When required, the form
and amount of the bond will be described in
the notice inviting bids. (Ord. 138 §9, 1978).

3.08.110 - Surplus supplies and
equipment—Sale or other disposal.

All department heads of the city shallsubmit
to the city council at such times, and in such
form as may be prescribed, reports showing
stock, materials and equipment on hand not
then in use in said department. When a
surplus of stock, materials or equipment
exists in any department, the city council
may transfer the same to any other
department having a need for such stock or
any portion thereof on approval of the city
council or its designated official. When it is
found by the city council that equipment
exists which is not needed for use by any city
department, the city council may authorize
the sale thereof, and the proceeds from any
such sale or sales shall be deposited in the
city treasury. Such sale or sales shall be
conducted in the following manner:

A. Upon authorization of the city council, the
designated official shall obtain competitive
and formal quotations for the
sale of surplus stock, materials or equipment,
when any one item or group of items offered
for sale amounts to more than two hundred
fifty ($250.00) dollars in estimated resale
value.

B. When items offered for sale amount to
more than two hundred fifty ($250.00) dollars
in estimated resale value, the designated city
official shall cause notice of sale to be
published at least five days before the sale, in
the official newspaper, giving a general
description of the items to be sold, where bids
are to be received, and the time and place of
sale. The designated city official shall, in
addition, solicit sealed quotations from
prospective buyers by telephone, or by sending
those copies of newspaper notices, or other
methods designed to reach the greatest number
of prospective buyers.

C. When any separate item or items of such
surplus stock, material or equipment to be
offered for sale amounts to two hundred fifty
($250.00) dollars or less, the designated city
official may accept informal written bids or
quotations for the sale of such item or items,
without causing a notice of sale to be published
in a newspaper.

D. At the time and place of sale of such
surplus stock, material or equipment, oral bids
may be considered by the designated city
official, after giving proper notice of such fact,
provided such oral bids shall be at least ten
(10) percent higher than the highest written bid
received at the time of opening of bids.

E. The designated city official may, at his
discretion, require cash or a cashiers’ check in
an amount equal to ten (10) percent of the price
bid to be deposited by the bidder at the time of
making or submitting his bid. The person to
whom any bid is awarded shall consummate
the purchase within five (5) days from then,
excluding the day of the award of such bid.
(Ord. 138 §12, 1978).

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Ordinance
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A. Professional Services. Professional
services may include, but not be limited to,
architectural, engineering, testing, land
surveying, appraising, environmental,
planning, financial, economic, accounting,
legal, development processing, waste
management, governmental operations,
special studies, construction project
management and other related services. The
City shall follow the procedures set forth in
this section to procure professional services.

B. Process for Contracts with a Total
Value Not to Exceed $15,000.00. The city
manager is authorized to contract for all
professional services required by the city,
for which an appropriation has been made in
the current budget, without implementing
the formal request for proposal process set
forth in subsection B, provided the contract
involves an expenditure of city moneys of
less than or equal to fifteen thousand dollars
($15,000.00) and the total proposed
expenditure of city moneys under the
contract and any amendments thereto will
not exceed fifteen thousand dollars
($15,000.00). However, in procuring
professional services pursuant to the
authority provided in this subsection the city
manager shall use his best efforts to obtain
the best value for the City based upon (1)
qualifications of the firm; (2) The firm’s
experience with similar projects; (3) the
firm’s capacity to provide the professional
services consistent with the City’s timelines
for performance and (4) the total overall
cost to the City unless excluded by state or
federal law. In addition, to the extent that its
provisions apply to the particular type of
service to be procured, the city manager
shall fully comply with the requirements of
Government Code, section 4526, as may be
amended, which shall take precedence over
any conflicting provisions in this section. The
contract procuring professional services shall
be approved as to form by the city attorney
prior to execution by the city manager. The city
clerk shall retain the original contract. The
finance department shall encumber the amount
against the budget.

C. Process for Contracts with a Total Value
in Excess of $15,000.00.

1. Upon approval of the city manager, the
department head of the department requesting
professional services shall prepare a request
for proposal (RFP), and request for
qualifications which shall then be sent to the
appropriate professional service firms. The
RFP shall include a description of the project
and a scope of work to be performed. As a rule,
proposals from a minimum of three (3)
prospective firms shall be solicited. To solicit
proposals, at a minimum the City shall post the
RFP on its website, public notice of the RFP at
least once in a newspaper of general
circulation and shall use its best efforts to
identify other means of communicating the
existence of the RFP to persons and firms who
may be qualified to provide the services
sought.

2. The department shall review all
proposals received. The general selection
criteria for determining which firm is to be
selected include:
a. Firm qualifications;
b. The firm's experience with similar
projects;
c. Schedule of completion;
d. Price, unless excluded by state or
federal law.

To the extent that the provisions of
Government Code, section 4526, as may be
amended, apply to the particular type of service
to be procured the selection process shall
comply with its requirements which shall take
precedence over any conflicting provisions
in this section.

3. Based on the results of the initial
screening process, the top firms may be invited

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Ordinance

3. Based on the results of the initial
screening process, the top firms may be
invited to present their qualifications. Based
upon their qualifications and presentations,
the city shall rank order the firms. The city
may negotiate the price, terms and conditions
of the project with the top firm. The city also
reserves the right to negotiate with another
top-ranked firm if an agreement cannot be
reached with the number one ranked firm.

4. Once the firm is selected, the contract
shall be forwarded to the city attorney for
review.

5. A staff report with recommendations
shall be presented to the city manager.

6. The city manager is authorized to
exercise his/her discretion to award the
contract based upon the selection criteria set
forth in subsection (B)(2) and staff’s
recommendation for professional services
required by the city, for which an
appropriation has been made in the current
budget, provided the contract involves an
expenditure of city moneys greater than
fifteen thousand dollars ($15,000.00) and
less than or equal to thirty thousand dollars
($30,000.00) and the total proposed
expenditure of city moneys under the
contract and any amendments thereto will not
exceed thirty thousand dollars ($30,000.00).

7. The city manager shall submit to the
city council for its consideration at a regular
meeting or special meeting, unless not
permitted by law, any contracts for
professional services that involves an
expenditure of city moneys greater than
thirty thousand dollars ($30,000.00) or when
the total proposed expenditure of city
moneys under the contract and any
amendments thereto will exceed thirty
thousand dollars ($30,000.00).

8. The contract procuring the professional
services shall be approved as to form by the
city attorney prior to execution by the city. The
city clerk shall retain the original contract. The
Finance department shall encumber the
amount against the budget.

D. If no proposals are received in response to
the RFP after solicitation as required by this
section, then this may serve as a presumption
that no competitive advantage may be served
by further solicitation of bids as it would either
be impossible or not in the public interest.

Upon such a determination by the city
manager, or the city council for contract in
excess of thirty thousand dollars ($30,000), no
further solicitation of bids is required by this
section.
290-6

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 293-Payment by Check
There is a risk that our funds will be spent on unauthorized items, theft of blank checks, intentional payment to non-vendors or City property converted to personal use.

Finance has the responsibility to pay for all items with a check, authorized bank transfer or by credit card. No items should be paid for by cash.

PROCEDURES

1. Opening Bank Accounts. Bank accounts may be opened only upon authorization by the Board of Directors.
• All bank accounts must be opened with the City’s employer identification number (EIN). • The Councilshall approve the authorized signers on the organization’s bank accounts. • Checks must have two signatures to be authorized asfollows:

1. Mayor and City Manager

2. Mayor and Finance Director

3. Mayor Pro Tem and City Manager

4. Mayor Pro Tem and Finance Director

5. City Manager and Finance Director (for expediency)
• The Mayor and City Manager are the primary check signers.

2. Custody of Checks. The Finance Department Accountant is the only person authorized to have access to unused check stock. The checks should be stored in a locked location and information about how to access them should be kept confidential from everyone but the Finance Director and theCity Manager. The Finance Department Accountant must notify the CityCouncil of any requests for blank checksthat has not been authorized by the City Manager and the Finance Director.

3. Check Authorization. All invoices will be forwarded immediately to the Finance Director for review and authorization to pay. The Finance Director will perform the following procedures:
• Review all invoices for mathematical accuracy, agreement with a written invoice, conformity to budget or Board authorization and compliance with grant fund requirements.
• Ensure that all conditions and specifications on a contract or order have been satisfactorily fulfilled, including inventorying items received against packingslip counts. • Code the invoice with the appropriate expense or chart of accountsline time number and other information as needed for accounting purposes.
• Approving an invoice indicatesthat it has been reviewed, and a check is authorized. • Responsible for timely follow-up on discrepancies and payment. • Send approved invoices to the Finance Department Accountant forpayment. 293-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 293-2

4. Expenses Not Invoiced. In some cases, expenses may not be invoiced, such as rent. When such expenses are due, the Finance Director needs to ensure that the expense is in the budget and write a note authorizing payment of the expense and the amount of the expense and supply it to the Finance Department Accountant.

4. Payment by Checks. Upon approval of the invoice and note by the Finance Director, the Finance Department Accountant is authorized to prepare all checks and should do so. • If a check is voided, the check will have “VOID” written in large lettersin ink on the face and have the signature portion of the check torn out. Voided checks will be kept on file. • In the event that it is necessaryto issue a duplicate check for checksin an amount over $50, the Finance Department Accountant will order a stop payment at the bank on the original check.

5. Duties of Check Signers.All checks will be signed by the signers designated by the CityCouncil.

Priorto signing a check, a check signer will do the following:
• Compare the check to the original invoice or the Finance Director’s note to pay the expense.
• Compare the amount on the check to the amount on the invoice or note • Be sure that the Finance Director has initialed the invoice. This is to protect against the risk that you are paying based on a copy of the bill that has already been paid. • Check the date on the invoice or the Finance Director’s note against the date of signing the check. If the difference is more than 60 days, get written approval from the Finance Director before signing the check. This is to mitigate the risk that the organization is paying the same expensetwice.
• Check to be sure that the amount of the check is not clearly unreasonable.

6. Prohibited Practices. In no event will:
• Invoices be paid unless approved by the FinanceDirector; • Blank checks be signed inadvance;
• Checks be made out to “cash,” “bearer,”etc.

Each check signer will be made aware that signing blank checks exposes our organization to theft since the bank is entitled to charge our account for any check that has a valid signature. A signed blank check is an invitation totheft.

7. On-line Payments. If we make online payments, we will make arrangements with the bank that allow the Finance Director to have online, read-only access to the account. We will also arrange with the bank to be sure that only the individualsthe board has authorized as check signerswill be permitted to authorize the payment of bills electronically. In addition to the monthly reconciliation, the Finance Director will periodically check the account to compare the bank automatic payments with the vendor statements.

8. Review of City Manager and Finance Director signed checks. This will only occur when a check must be signed and sent immediately to appease a vendor or to make payments that requires immediate attention. Once given to the vendor, a copy of this check must be held for the Mayor or Mayor Pro Tem to authorize by the Finance Department Accountant for review and initials.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 295-Purchasing Guidelines
295-1
In accordance with the policy framework set forth in the municipal code, City purchases and contracts (including those for rentals and leases but excluding those for real property) will be made pursuant to these guidelines. Applicable competitive bidding categories, authorization limits or contract award procedures will be based on unit cost, total purchase cost for consolidated bid items or fiscal year aggregates in the case of blanket purchase orders or similar ongoing purchasing arrangements. Staging of purchases in order to avoid these competitive bidding procedures or authorization limits is prohibited.

GENERAL PURCHASES
Purchases and contracts for supplies, equipment, operating and maintenance services, and construction projects will be made pursuant to the following guidelines. Please refer to the Arvin Municipal Code for the exact wording:

A. 3.080.080 Open Market for Purchases less than $30,000. Purchases of supplies and equipment of $30,000 or less may be made in the open market without observing the formal contract procedure as set in

3.08.090. The City Manager (or designee) is authorized to purchase without City Council approval.

1. Open market purchase shall, wherever possible, be based on at least 3 bids, and shall be awarded to the lowest responsible bidder.

2. Bids shall be solicited by written request to prospective vendors, by telephone, and by public notice posted on a public bulletin board in the City Hall, for single purchases amounting to $15,000 but less than $30,000.

3. Written bids shall be submitted to the city clerk for single purchases amounting to more than $15,000 and available for public inspection.

4. Oral bids shall be obtained from prospective suppliers when the amount involved is $15,000 or less, or per

3.08.070, bidding may be dispensed with only when the city council has declared a local emergency which requires that an order be placed with the nearest available source of supply, or when the service, material, or group of commodities can be obtained from only one vendor.

5. Purchases of a minor nature may be made through petty cash procedures prescribed by the city council and bidding is not required.

B. 3.08.090 Formal Contract Procedure for purchases equal to or greater than $30,000.

Purchases of supplies and equipment equal to or greater than $30,000 shall be by written order or contract with the lowest responsible bidder.
1) Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specification may be secured, and the time and place for opening bids. a) Notices inviting bids will be published at least 5 days before the date of opening of the bid. Notice will be published at least once in a newspaper.
b) Sealed bids will be solicited from suppliers whose names are on a bidder's list maintained by the city, or from suppliers who have made written requests to add theirnames. c) Advertise pending purchases by a notice posted on a public bulletin board in the City Hall. 2) Bidder's Security. The city council may require security in order to bid. Bidders shall be entitled to return of bid security, but the bidder will forfeit security upon refusal or failure to execute the contract within 10 days after award, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest bidder. Refer to the Arvin Municipal Ordinances for details on bidsecurity.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Guidelines - 295
295-2
3) Sealed bids are to be submitted to the city clerk. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 days after the bid opening. 4) Rejection of Bids. In its discretion, the city council may reject any and all bids presented and readvertise for bids.
5) Award of Contracts. Orders or contracts will be awarded by the city council to the lowest bidder. 6) Tie bids. If two or more bids received are for the same amount, quality and service being equal, and if a delay is not an option, the city council may accept the one it chooses. 7) Performance Bonds. The city council may require a performance bond before entering into a contract to protect the best interest of the city. The form and amount will be described in the notice inviting bids.

C. Public Works Construction Projects. Public works law requires private construction contractors to pay prevailing wages to their workers and requires the construction contractor to follow public works law when working on a project funded by a public entity. Prevailing wages are due, in most instances, if the project costs more than $1,000, and involves the following construction work: new construction, alteration, demolition, installation, repair and maintenance.

CONSULTANT SERVICES
Contracts for consultant services will be awarded pursuant to the following guidelines. (Please refer to the Arvin Municipal Code 3.08.095 for the exact wording):

3.08.095 – Procurement of Professional Services.

A. Professional Services. Professional services may include, but not be limited to, architectural, engineering, testing, land surveying, appraising, environmental, planning, financial, economic, accounting, legal, development processing, waste management, governmental operations, special studies, construction project management and other related services. The City shall follow the procedures set forth in this section to procure professional services.

B. Contracts Total Value not to Exceed $15,000. The city manager is authorized to contract for all professional services required by the city, for which were approved in the current budget, without a formal request for proposal, provided the expenditure is less than or equal to fifteen $15,000.00. (1) qualifications of the firm;
(2) The firm’s experience with similar projects;
(3) the firm’s capacity to provide the professional services consistent with the City’s timelines for performance and
(4) the total overall cost to the City unless excluded by state or federal law and fully complying with the requirements of Government Code, section 4526, as may be amended, which shall take precedence over any conflicting provisions in this section.

The contract shall be approved as to form by the city attorney prior to execution, the city clerk shall retain the original contract and finance shall encumber the amount against the budget.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Purchasing Guidelines - 295
295-3
C. Process for Contracts with a Total Value in Excess of $15,000.00.

1. Upon approval of the city manager, the department head requesting professional services will prepare a request for proposal (RFP), and request for qualifications which shall then be sent to the appropriate professional service firms.The RFP shall include a description of the project and a scope of work to be performed. Proposals from a minimum of 3 prospective firms shall be solicited. To solicit proposals, the City will post the RFP on its website, publish a notice of the RFP at least once in a newspaper and will use best efforts to identify persons and firms who may be qualified to provide theservices.

2. The department shall review all proposals received. The general selection criteria for determining which firm is to be selected include:
a. Firm qualifications;
b. The firm's experience with similar projects;
c. Schedule of completion;
d. Price, unless excluded by state or federal law.

If Government Code, section 4526, is applicable it will take precedence.

3. The top firms may be invited to present their qualifications. Based upon their qualifications and presentations, the city will rank the firms. The city may negotiate the price, terms and conditions of the project with the top firm and another top-ranked firm in case an agreement cannot be reached with the number one ranked firm.

4. Once the firm is selected, the contract shall beforwarded to the city attorney for review.

5. A staff report with recommendations shall be presented to the citymanager.

6. The city manager is authorized to award the budgeted contract based upon the selection criteria is less than or equal to $30,000.

7. The city manager will submit to the city council any contracts for professional services that involves an expenditure greater than $30,000.

8. The contract must be approved as to form by the city attorney prior to execution. The city clerk will retain the original contract and the finance department will encumber the amount against the budget.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City of Arvin
295-4
Type
All Services, Goods and
Professional Services.

Non-Professional Services or
goods.

Professional Services
Non-Professional Services or
goods
Professional Services
Includes advisory
services from professionals
such as engineers,
architects, attorneys and
other specializedconsultants.

Features
pen Market Purchases
Petty Cash Purchases ◼ No specific requirements; not competitive, but less than $500
◼ 3 oral solicited bids sent to City Clerk;
◼ Lowest bidder accepted.
◼ Contract awarded by City Manager
◼ Subject to Arvin Municipal Code 3.08.080.
◼ Approved in current budget.
◼ City Manager authorized to contract for
services.
◼ No formal request for proposal
◼ Follow formal RFP process.
◼ Must be published for 5 days before opening
bids.
◼ Sealed bids submitted to City Clerk.
◼ To be opened in public at time and place as
noted in publications.
◼ Bids may be rejected.
◼ Awarded to lowest bidder by the City
Council.
◼ Subject to Arvin Municipal Code 3.09.090.
◼ Approved in Current Budget.

Formal RFP document.

Council authorizes staff to request
proposals and generally delegates contract
award to the City Manager
Note: These are general guidelines; the evaluation and
selection process for consultant services may vary on a case-by-case basis
Category
$30,000 or Greater
Less Than $30,000
15,000 or Less

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 301-Travel and Meeting Guidelines

OVERVIEW
These guidelines establish the basic policies and procedures for travel on City business or attendance at meetings by all employees and officials. Everyone who travels or attends meetings for City business purposes (or supervises someone who does) is responsible for knowing and following these guidelines.

These guidelines are organized into the following eight sections:

1. General Standards

2. Allowable Expenses

3. Planning an Official Trip

4. Travel Authorizations

5. Making the Trip

6. Incurring Non-Travel Expenses

7. Accounting for Expenses

8. Completing Travel Authorizations and Expense Reports The key document in the administrative process is the Travel Authorization/Expense Report (TA).

Besides ensuring that travel by City employees and officials is conducted in accordance with these guidelines, the TA summarizes the total cost of attending conferences, meetings, and seminars and provides documentation for cash advances, vendor payments and credit card purchases. General instructions for completing and processing this form are also included in these guidelines.

Adoption and Implementation. The Council is responsible for adopting the City’s travel and meeting guidelines and for approving any significant policy revisions to them. The City Manager is responsible for developing administrative procedures as needed to implement the guidelines. In this role, the City Manager is authorized to make minor administrative changes to the guidelines as long as they are intended to carry out the purpose of these guidelines and will not have any significant policy impacts.
1 GENERAL STANDARDS
These guidelines do not require you to take a bus, stay in a cheap motel or eat only in fast food restaurants. A bus or a train may cost less than a plane, but the added time away from work may make these slower options more expensive to the City overall. The meal allowances established in these guidelines allow you to eat in moderately priced restaurants.

In all areas, not just economy, you are responsible for exercising good judgment in requesting, arranging and making a trip. It should be thoroughly planned, well in advance. You should not mix personal business with official business if it will cost the City anything in dollars or lost time, or if it will harm the City’s interests in any way.
301-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-2
These guidelines are not intended to address every issue, exception or contingency that may arise in the course of City travel or attendance at meetings. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of the City's resources. 2 ALLOWABLE EXPENSES
Expenses incurred in connection with the following activities generally constitute authorized expenses, as long as the other guidelines of this policy are met, including good judgment in the use and stewardship of the City's resources.

1. Communicating with representatives of regional, state and national government on City adopted policy positions.

2. Serving on professional organizations or governmental committees, boards or task forces.

3. Attending educational seminars, conferences or organized educational activities designed to improve skill levels or provide information on topics important to City policy andoperations.

4. Preparing research for City projects or implementing adopted City plans, policies, goals or programs.

5. Attending meetings involving activities or decisions important to City interests, consistent with adopted plans, policies, goals or programs.

6. Attending events where the City is a formal sponsor or participant, or in performance of official duties for the City.

7. Communicating with individuals or representatives of community groups on policy positions adopted by or under consideration by theCity.

8. Recognizing volunteer or employee service to the City.

9. Engaging in other business-related activities with a direct connection to the implementation of adopted City plans, policies, goals or programs. 3 PLANNING AN OFFICIALTRIP
How will you travel?
When planning the transportation portion of your trip, you should consider all aspects of cost to the City—daily expenses, overtime, lost work time—as well as actual transportation costs. In general, common carriers (such as bus, train or plane) is the preferred mode of transportation. You should use an intercity bus, train or airplane unless there is a valid reason for using private transportation. For example, use of a City vehicle—especially if two or more employees or officials are traveling together—may be less expensive for travel within the State. However, as noted above, the increased time for automobile transportation—and the potential for lost work

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-3
time, overtime, or increased lodging costs—should be considered in determining the best mode of transportation.

Transportation at Your Destination. If you need local transportation at your destination, use of public transit such as buses, streetcars and subways is appropriate: the City will reimburse you for these expenses. The City will also reimburse you for taxis when public transit or other common carriers are not reasonably available. If a car
rental is required, you may use a City credit card or request reimbursement when you return (see Section 275 of the
Financial Management Manual regarding guidelines and
procedures for using City credit cards).

Air Travel. All air travel on City business should be coach class.

Traveling by Automobile. If you will be driving, you should use a City vehicle if one is available.

You may use a City credit card to purchase gasoline or request reimbursement when you return. If a City vehicle is not available, or there is another reason why you should drive your personal car, you may do so with the approval of your department head. You will be reimbursed at the currently approved per mile rate (see Section 350 of the Financial Management Manual).

Additionally, you may also use third party sources such as “Yahoo Maps” in determiningmileage reimbursements.

To drive a privately owned vehicle on City business you must:

1. Possess a valid California driver’s license.

2. Carry liability insurance limits required by the City’s Risk ManagementManual.

3. Realize that any damage to the car, needed service or repair occurring on the trip will be your responsibility, as these costs are included in the City’s per mile cost reimbursement. transportationwhenevertheseare
offered andavailable.
group rates for
discounted government or
Government or Group Rates
It is the City’s policy to use

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-4
Mileage in-Lieu of Common Carrier Costs. In the event that a common carrier would otherwise be the preferred mode of transportation, but you will use a personal car instead (subject to the approval guidelines set forth above), you will not be reimbursed more than the common carrier cost.

When will you go? By what route?
You should schedule your trip so that you leave at the latest reasonable hour and still arrive at your destination on time. You should also return promptly when your business is finished, thereby minimizing the time away from work and ensuring full reimbursement of all related expenses. You should generally take the most direct and commonly traveled routes. Other routes may be authorized when official business requires their use. If you take an indirect route or stop along the way for personal reasons, the City will not reimburse you for related expenses.

What about compensation for travel time?
Please refer to the Union MOU for this portion.

Where will you stay?
The City will pay for a single room (including taxes and parking) for as many nights as necessary.

The accommodations you use should be economical but practical. For example, it is preferable to stay at the hotel where a conference is held, even if that hotel may be slightly more expensive than others in the area. Location is also important: a hotel close to where you will be conducting business may be slightly more
expensive than outlying hotels, but it may be
easier to achieve the City’s travel goals by
staying at the closer location. In general, you
should stay at the most reasonably priced
accommodations available consistent with the
purpose and goals of your travel.

If you have a question about using a particular
hotel, obtain concurrence or direction from
your department head before making a
reservation.

Should you make reservations?
Whenever possible, you should make reservations. They are often required for large conferences.

You can use a City credit card number to confirm reservations. Be sure to cancel any reservations you will not use. If the City is charged for an unused reservation, you will pay that charge unless circumstances requiring cancellation were reasonably beyond your control.

Sponsored Conferences and Training
When conference or training sponsors have
made arrangements for lodging, you should
stay at one of these facilities and the cost
should not exceed the maximum group rate
published by them.

In the event that rooms are not available at
one these facilities, you should stay at a
comparable facility at a comparable cost, not
to exceed the maximum group rate published
by thesponsor.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-5
When making lodging reservations, be sure to ask about exemptions from the local transient occupancy tax (TOT): some cities exempt travelers from City business, others don’t. If there is an exemption, you can save up to 15% on lodging costs depending on the local TOT rate. Almost all lodging operators will require an official, written claim for exemption. A sample for this purpose is provided in Exhibit A.

Additionally, you should also ask about any discounted government or group rates; and use them if they are offered and available.
4 TRAVEL AUTHORIZATIONS
TAs are required whenever the total estimated cost will exceed $200 or overnight accommodations will be required. Otherwise, credit cards or the City’s standard voucher system may be used to request vendor payments or expense reimbursements.

Department head approval of TA’s is required, and out-of-state travel requires the further approval of the City Manager. The completed TA and accompanying voucher requests should be submitted to your department head as far in advance as possible. The Expense Report Form will be used when you return in order to account for your actual travel expenses.

Department heads approving TAs are responsible for determining that the cost is reasonable and justified by the trip’s purpose. They should be certain that:

1. The purpose cannot be accomplished by mail or telephone.

2. The seminar, meeting or conference is necessary to accomplish key City goals and objectives and is unavailable locally if overnight accommodations are required.

3. The minimum number of City staff members are going.

4. The itinerary ensures accomplishment of the purpose at the lowest reasonable cost.

5. The traveler understands and follows these guidelines.

6. There is enough money in the appropriate travel budget to cover the costs.

Ultimately, the responsibility for following these guidelines and exercising good judgment in the use and stewardship of the City’s resources rests with each City employee and official incurring travel, meeting or meal costs on City business.

Requests for Cash in Advance and Payments to Vendors
The City will pay all legitimate expenses of your trip or meeting. These include transportation, lodging, registration fees, meals and any other related expenses such as parking, baggage handling and telephone costs if they are for official business and fit within these guidelines.

There are three ways to pay for travel expenses: direct vendor payments, cash advances/reimbursements and credit cards. Direct vendor payments are made by the City to an

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-6
organization to pay for specific costs related to a trip—usually registration fees, lodging and airfare. Cash advances are lump sum payments made to you before you leave to cover expenses as they arise on the trip; and reimbursements (or refunds to the City) are processed after your travel is completed. Credit cards are issued pursuant to the City credit card policy (Section 275 of the Financial Management Manual).

If you request a cash advance, your department head must review the amount to be sure it is reasonable. When you return, you must account for all expenses you incurred, and return the unused portion of the advance. You will be reimbursed the difference if the actual, authorized expenses you incurred exceed the amount advanced.

To obtain either direct vendor payments or a cash advance, you must complete the appropriate sections of the TA and attach payment vouchers for all payments (including cash advances). You should also attach a copy of the approved City Manager transmittal report (if required). You should retain a copy of the completed TA (both sides) because you will need it when you return to reconcile and account for your actual expenses.

TA Forms. The TA Form is available as an Excel file on the City’s Intranet. 5 MAKING THETRIP
There are two key “golden rules” to remember about making an official trip:

1. Keep it official.

2. Keep records of all expenses.

Keeping It Official
If you take time away from official business for personal matters, or if you delay your return after completing your business, you will not be reimbursed for expenses incurred during that time. When combining business and personal travel in this manner, department head approval is required. If this extended period occurs during your regular scheduled work hours, the time will be counted as vacation, comp time (if available) or leave without pay.

If you become sick and must delay your return, you will be reimbursed for your additional living expenses (except those directly related to your illness, such as physician or hospital costs) until you are able to return home. You should notify your supervisor as soon as possible if you become ill. The time will be counted as sick leave if it occurs during your normally scheduled work hours, and the City's normal sick leave rules will apply.

And lastly, all expenses must be incurred in accordance with the guidelines set forth in this policy.

Keeping Records for All Expenses

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-7
As discussed below under Accounting for Expenses, you must maintain a detailed record of all expenses incurred during your travel: meals, transportation, lodging, baggage handling, parking fees, registration fees, telephone (including reasonable calls to communicate home) and a n y other reasonable and necessary expenses.

Receipts must be submitted for all expenses.

In the event that receipts are not available, you must provide a written explanation of the circumstances as to why this is the case and reason you incurred this expense.

Meal Guidelines
The following amounts (including beverages, taxes and gratuities) are allowed for meals:

Breakfast $15.00
Lunch 25.00
Dinner 35.00
As noted above, receipts are required for all meal costs.

Because of reimbursement limitations by other agencies (such as P.O.S.T) or other budget constraints, department heads may authorize lower meal allowances. Any reimbursements exceeding these allowances require approval by the department head. In the event that there are conflicts between these guidelines and Memorandums of Understanding (MOU) with employee associations, the MOU will apply.

If meals are provided without charge at a meeting or while in transit (meals served on a plane, for example), meal costs will not be reimbursed.
6 INCURRING NON-TRAVEL EXPENSES
Special Events. The City will reimburse expenses incurred for such meetings and hospitality as may, from time to time, be determined by the Council to be appropriate. Costs for such special occasions will be determined by specific Council action authorizing such events.

Local Meeting and Training Costs. The City will also reimburse expenses you incur in attending meetings or conferences held locally which do not include travel expenditures, subject to the following guidelines:

1. Meals not incurred as part of out-of-area or overnight travel are limited to activities outside of normal duties, such as business-related meetings held before or after regular working hours (including working lunches where this is the only time available) or extended overtime due to special projects or emergencies.

2. Meal reimbursements are not allowed as part of routine daily work assignments or training within City limits, unless part of the registration cost or the meal is served on site as part of the program to keep all participants together and not have them disperse for meals.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-8

3. Meals incurred during training held outside the City limits are only allowable when the training (including travel time) spans the normal meal period.

For example, if training is held outside of the City limits from 9:00 until 10:30 AM at a location that is an hour away from the City, meal costs for lunch would not be reimbursable. However, meal costs for lunch under similar circumstances where the training is held from 9:00 AM to 3:00 PM would be reimbursable.

4. Reimbursement for meal costs in these circumstances are subject to the City’s meal cost guidelines for overnight travel.

Other Expenses. The City will reimburse you for costs incurred while at a meeting or other function when such costs are directly linked to the program or subject matter of the meeting.

Examples of costs that may be borne by the City include printed materials, tapes or other training material that may be available for sale at the meeting.

Alcoholic Beverages
City funds should not be used to purchase alcohol or reimburse employees for alcohol-related costs. The Council or City Manager may approve exceptions to this policy on a case-by-case basis forspecialreceptions or other unique circumstances. This discretion applies primarily to non- travelrelated expenditures such as special receptions, and not to routine travel or meetings by City employees.

Spouses and Guests
Spouses and guests are welcome to accompany you on City travel and at conferences, seminars and meetings. However, any additional costs associated with the participation of your spouse or other guests are your responsibility. Exceptions to this policy include the annual League of California Cities dinner and any other occasions as specifically approved by the Council.

Guests As Passengers in City Vehicles. Due to liability concerns, non-City employees are forbidden to ride as passengers in City vehicles when it is not directly related to City business.

In non-police vehicles, however, department heads may approve exceptions on a case- by-case basis, subject to review by the Risk Manager (Finance Director) and approved by the City Manager. 7 ACCOUNTING FOR EXPENSES
When you return from your trip or official function, a final accounting of all expenses must be approved by your department head and submitted to Finance within ten working days. An expense report is required in all cases—whether the advance and actual expenses are equal, you are eligible for additional reimbursement or you owe money to the City.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-9
The final accounting is made by completing the Travel Expense Report section on the reverse side of the TA. After completing the expense report, you should attach required receipts, sign the report attesting to its accuracy and submit it to your department head for review and approval. If you owe the City for the unused balance of a cash advance, you should pay the amount due to the cashier at your location and attach the cash register receipt to your expense report.

A completed Travel Expense Report is required for the employee’s vendor file, even when a trip does not have an employee advance or reimbursement because all payments were made via direct voucher or credit card.

Department heads approving expense reports are responsible for ensuring that:

1. All expenses are reasonable, necessary and consistent with these guidelines.

2. Any required receipts are attached.

3. The final disposition is correct (balance due employee; balance due City).

4. Any amounts due to the City are reimbursed.

5. Final accounting of all expenses is submitted to Finance.

Upon approval by your department head, the expense report should be processed as follows depending upon the circumstances:

If the City Owes You
The expense report should be forwarded to Finance along with a voucher request for payment to you; the reimbursement will be processed on the next check register.

If You Owe the City
The expense report should be forwarded to Finance with the cash register receipt attached evidencing payment of the amount due.

Processing Related Vouchers
All travel related costs require payments to vendors via vouchers, whether it is direct payments to vendors (such as to the conference provider for registration or hotel for lodging), credit payments or reimbursements to employees. To ensure appropriate documentation for all such payments, copies of the TA or Travel Expense Report must accompany all vouchers asfollows:

1. Vouchers Processed Before Travel Occurs . The TA must be attached to all related vouchers.

2. Vouchers Processed After Travel Occurs. The Travel Expense Report must be attached to all related vouchers.

Note: When City Manager approval is required, documentation of this must also be attached to all related vouchers.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-10
8 COMPLETING TRAVEL AUTHORIZATIONS AND EXPENSEREPORTS
The following charts and tables provide an overview of the City’s travel procedures, instructions for completing the TA and Expense Report forms, and completed samples.

OVERVIEW OF TRAVEL PROCEDURES
Who What
Traveler
Department Head
Finance
• Consult with Department Head on the need fortravel.
• Plan itinerary, transportation & lodging.
• Complete Travel Authorization (TA); attach vouchers
for employee cash advance (if needed) and each direct
vendor payment requested.
• Review TA for conformance with City travel
guidelines and department priorities.
• Verify that adequate funding exists in the appropriate travel budget to cover all costs.
• Approve TA, provide a copy to the employee and
submit to Finance for payment processing.
• Make cash advance and vendor payments.
• File TA in employee's vendor file.

STEP 1
Travel Authorization
Who What
Traveler
Department Head
Finance
• Complete and submit expense report section of the TA
accounting for all expenses to the Department Head
within 10 working days after completion oftravel.
• Attach any required receipts.
• Sign report attesting to its accuracy.
• Pay cashier at your location and attach cash register receipt if a balance is due to the City.
• Review expense report for conformance with City
travel guidelines.
• Verify accuracy of balances and disposition.
• Approve expense report, make a copy for departmental
records and submit to Finance; attach voucher request if funds are due to the employee.
• File expense report in employee's vendor file and
process any payment due to the employee ifrequested.

STEP 2
Expense Reporting

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-11

COMPLETING THE TRAVEL AUTHORIZATION

OVERVIEW
The Travel Authorization (TA) form should be
prepared whenever overnight lodging is required.

The form provides for approval of the travel,
summarizes the cost and provides documentation for
any cash advance to the employee and direct payments
to vendors
Completing the form itself is largely self- explanatory, and a completed sample is provided for your
information. The following highlights key areas of the
TA form:

TRAVEL AUTHORIZATION:

The front side of the TA is organized into five major
sections:

1. General Information. Identifies who is going,
where the meeting or conference will be held, how
long the employee will be gone, how much it will
cost, and the account number that should be
charged.

2. Purpose. Describes the reason for the trip.

3. Cost and Payment Summary. Outlines the
estimated cost of the trip by expense type
(registration, transportation, lodging, meals;
spaces are provided to add categories not prelisted), vendors to whom payment will be made (including cash advances to the employee),
method of payment (voucher, purchase order,
credit card), and amount. A summary is then
provided of the payments to be made to the
employee, vendors, or by credit card.

Appropriate vouchers, purchase orders or credit
card requests should be attached to the TA when
it is submitted to Finance for processing.

4. Approvals. Provides a signature box for the
employee and approval by the Department Head.

Out-of-state travel requires the further approval of
the City Manager.

TRAVEL EXPENSE REPORT
For reporting actual expenses upon completion of
travel and reconciling this amount to any cash advance
received, the reverse side of the TA is organized into
four major sections:

1. Actual Expense Detail. Itemizes actual expenses
by type for each day of your trip (spaces are
provided for dates and expense categories not prelisted).

2. Mileage Detail: Personal Vehicle. Summarizes
miles and cost if you were authorized to use a
personal vehicle for the trip.

3. Travel Expense Summary. Totals expenses for
the trip and reconciles them with any cash
advance received, resulting in either a balance due
to the employee or due to the City.

4. Approvals. Provides a signature box for the
employee and approval by the Department Head
(and City Manager if required).

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-12
City of Arvin

TRAVEL AUTHORIZATION
This form should be completed in legible handwriting or in Excel using the City's standard template Sample

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
City of Arvin

TRAVEL EXPENSE REPORT
This form should be completed in legible handwriting or in Excel using the City's standard template 301-13

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
301-14
Sample
City of EXHIBIT A
Arvin
200 Campus Dr. • Arvin, CA 93203

CLAIM FOR EXEMPTION FROM TRANSIENT OCCUPANCY TAX
The undersigned claims exemption from paying city transient tax charged for the period from through . The undersigned claims
this exemption for who is on official business as an
employee of the City of Arvin.

NOTE: Operators of hotels should not accept this application unless the person presenting it shows satisfactory identification. A separate application is required for each occupancy period.

I declare under penalty of perjury of the laws of the State of California that the foregoing is true and correct:
[Signature of Authorizing Official]
Sara Elspeth, Date
Director of Department
The City of Arvin is committed to including disabled persons in all of our services, programs and activities.

Telecommunications Device for the Deaf (805) 781-7410.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Travel and MeetingGuidelines
350-14
Section 350-Mileage Reimbursement Rate
Under the City’s fleet management program, the City reimburses employees for using their personal car in conducting City business at the IRS approved rate. Consistent with the IRS basis in setting this rate, the City’s per mile reimbursement rate reflects all costs associated with operating a vehicle, such as depreciation, lease payments, maintenance, repairs, fuel, oil, insurance (including deductibles) and vehicle registration fees.

As of January 1, 2016, the IRS standard mileage rate is 54 cents per mile. Accordingly, effective January 1, 2016, the City will reimburse employees at the rate of 54 cents per mile when using their personal vehicle in conducting City Business.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 401-1
Section 401-Fleet Management
The purpose of this section is to describe the City’s policies and procedures regarding the management of the City's fixed assets and inventory items.

Areas currently covered include:
◼ Fleet management (Section 405)
◼ Accounting for fixed assets (Section 415)
◼ Real property acquisition and disposal (Section 475)
◼ Disposal of surplus property (Section 480)
Further areasthat will be covered in thissection include policies and proceduresfor the management of:
◼ Information technology property
◼ Other equipment items
◼ Infrastructure (water and sewer lines, treatment facilities, bridges,sidewalks) ◼ Consumable supplies in inventory

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual)

TABLE OF CONTENTS

OVERVIEW
A. Purpose and Objectives2
B. Responsibilities3

POLICIES
C. Maintaining Proper Fleet Size6
D. Buying New Versus Used7
E. Environmental Stewardship8
F. Fleet Use Target Guidelines Before Replacement9
G. Equipping and Marking Newly Acquired Units 11

PROCEDURES
Budgeting
H. Budgeting for Fleet Additions and Replacements 12
Budgeting for Fleet Additions
Budgeting for Fleet Replacements
Off-Cycle Fleet Additions and Replacements
Replacing Damaged Fleet Units
Purchasing
I. Buying New Units: Cooperative Purchasing Contract 14 J. Buying New Units: Invitation for Bids 15
K. Buying Used Vehicles 16
Surplus Units
L. Disposing of Surplus Units 17
401-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-A: Purpose and Objectives

1. Purpose
The City’s fleet represents a significant investment in the tools needed to deliver day-today services. This section of the Financial Management Manual outlines responsibilities, policies, and procedures for managing the City’s fleet according to established objectives.

2. Objectives
a. Minimize fleet life-cycle costs. Typically, it makes sense to get as much service life as possible out of a fleet unit. On the other hand, as fleet units get older and accumulate more miles, operation and maintenance costs eventually become excessive. Also, surplus value declines sharply after a certain point. Striking a sensible balance among these fleet management principles can maximize utility and minimize overall costs.
b. Avoid unnecessary capital outlays for fleet expansion and replacement.

Expanding the fleet or replacing an existing unit may not make sense if the unit is used only sparingly.
c. Preserve and improve fleet safety, utility, reliability, and economy. Regular and competent inspection and maintenance can prevent safety problems, maximize reliability, and minimize long-term costs. Newer vehicles usually incorporate more advanced technology such as airbags, anti-lock braking systems, and engines that burn cleaner, last longer, and use less fuel. New construction equipment usually incorporates technology that improves the productivity and safety of equipment operators. Also, newer units are naturally more reliable. d. Maintain a positive image for the City. Routinely cleaning, maintaining, and repairing fleet units can demonstrate a commitment to good stewardship over City assets. Operating older vehicles and equipment can sometimes convey a positive impression of cost-consciousness, if the units are not allowed to become unsightly or noisy. Stylish features with marginal utility may project an inappropriate image of luxury or extravagance.
e. Set a progressive example of environmental stewardship. Buying and operating alternative-fuel and high efficiency conventional-fuel units, where functionally and fiscally practical, can demonstrate the practicality of such units in reducing conventional-fuel use and enhancing air quality. It can also encourage the initial supply of innovative products until widespread demand makes them more feasible to produce.
f. Encourage responsible use of City vehicles and equipment. Conscientious use of City vehicles and equipment can improve safety and reduce liability. 405-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-B: Responsibilities

1. City Manager Responsibilities
a. Oversee the acquisition, operation, and disposal of all City-owned and leased Fleet vehicles and equipment.
b. Authorize replacement of fleet units that have been damaged beyond repair when the cost or method of replacement is within the City Manager’s purchasing authority and adequate resources are available within existing budget appropriations.
c. Amend fleet management policies and procedures as required to accomplish adopted fleet management objectives.

2. Department Head Responsibilities
a. Ensure fleet management policies and procedures are followed. b. Budget for fleet additions and replacements not funded through the Fleet Replacement Fund.
c. Ensure that all department employees who operate fleet units have appropriate and valid operator licenses.
d. Ensure discussion between management staff occurs to identify and consider incremental changes when Transit contracts renew, or key fleet staff positions vacate. Potential opportunities could include combining business activities to take advantage of economies of scale, better integration or centralized administrative support, integration of fleet asset management data collection and reporting, establishing equipment standards and using master contracts for outsourced service providers.

3. General Fleet Coordinator Responsibilities
a. Manage the acquisition, disposal and replacement of all units not assigned to the Fire or Transit Fleet.
b. Service and repair all vehicles and other related fleet equipment including portable and fixed emergency generators not assigned to the Fire or TransitFleet. c. Manage inventories of the fuel, oil, tires, and replacement parts needed for all units not assigned to the Fire or Transit Fleet.
d. Document the maintenance history and cost, the fuel use, and the accumulated mileage (or hours) for each unit not assigned to the Fire or Transit Fleet. e. Identify units to be disposed of.

4. Transit Fleet Coordinator Responsibilities (General Fleet Coordinator) The City owns passenger vehicles available to the employees for particular city purposes.

These vehicles may include passenger cars, vans, busses and pickup trucks. The Transit 405-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Manager will, per certain guidelines, issue vehicles for use to employees who have met legal requirements to operate these vehicles and who have been authorized to attend certain events or for use in City business.

The Transit Manager will be required to maintain these vehicles and assure that the vehicles are ready for use at all times.

The City a l s o has established a separate Transit Fleet to address the specific needs of this specialized equipment. Transit equipment has a special roll and demands that require special certification and record keeping in maintaining unique equipment. Examples may be combining business activities to take advantage of economies of scale, better integrated or centralized administrative support, integration of fleet asset data collection and reporting, adoption of common equipment standards and using master contracts for outsourced service providers.
a. Manage the acquisition, disposal and replacement of all units assigned to the Transit Fleet. The Transit Fleet includes buses and service vehicles owned by the City. b. Oversee the maintenance and operation activities of the Transit Fleet. c. Identify units to be disposed of.

5. Vehicle and Equipment Operator Responsibilities
a. Exercise good judgment.
b. Consult a supervisor or the fleet coordinator if any operator responsibilities are not clear.
c. Use City units only for conducting City business unless 1) a vehicle has been approved as a part of compensation or 2) personal use of a vehicle has been specifically approved by the City Manager.
d. Arrange for emergency repairs whenever consulting with the fleet coordinator would be impractical. Pay for emergency repairs by either using a City credit card or paying for the repair and submitting receipts forreimbursement. e. Wash and vacuum units periodically to maintain appearance and prevent premature deterioration of surfaces and materials. Use commercial waxing and detailing services only with prior approval of the City Manager.
f. Pay for any parking fees and tolls required while on City business. Submitreceipts for reimbursement.
g. Pay any traffic and parking fines incurred. These payments are notreimbursable. h. Carry a valid California driver license.
i. Obey all traffic laws.
j. Except for emergency responses, strictly observe speed limits and avoid rapid acceleration in order to minimize fuel use.
k. In order to minimize fuel use, avoid vehicle idling except when required for safety, emergency response, vehicle maintenance, equipment activity, or recommended warm-up.
l. Drive defensively.
m. Use turn signals.
405-3

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) n. Use seat belts and ensure all occupants use seat belts. o. In case of accident, follow instructions included in the accident folder. p. Observe no smoking in City vehicles policy requirements in accordance with City policies pursuant to City Municipal Code.
q. Observe cell phone use policy requirements during operation of City vehicles.

6. Finance Division Responsibilities
a. Dispose of surplus vehicles in accordance with City policy in section 480 or the Finance Management Manual.
405-4

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-C: Maintaining Proper Fleet Size

1. Minimum Fleet Size. The number of units in the fleet should not exceed the minimum number of units needed to effectively conduct City business.

2. Reviewing Vehicle Use. When budgeting for fleet replacements, average annual mileage or hours should be calculated for each unit to be replaced. If average annual use appears to be much lower than the average annual use within the same vehicle or equipment category, the following options should be considered instead of replacement:
a. Using a vehicle assigned to a convenient vehicle pool b. Occasionally borrowing from or establishing on-going shared equipment with another operating program.
c. Renting a vehicle or equipment item for a limited period of time in accordance with Financial management Manual requirements and City Manager approval where required.
d. Reimbursing employees for use of privately-owned personal vehicles where it is a practical or necessary alternative to City vehicle use, particularly if such use may result in reduction in fleet size and does not conflict with trip reduction efforts. e. Leasing of select construction or alternative fuel equipment.

3. Reimbursement for Business Use of Personal Vehicles. When use of a privately- owned personal vehicle is authorized for City business, reimbursement will be made at the current Internal Revenue Service rate allowed for business use of vehicles. Consistent with the IRS calculation of this rate, the per mile reimbursement rate will reflect all costs associated with operating a vehicle, including, but not limited to, depreciation, lease payments, maintenance, repairs, fuel, oil, insurance, and vehicle registration fees.

4. Timely Disposal of Replacement Units. Replacement of units will not be used as a strategy to expand the fleet either temporarily or permanently. When a unit is replaced, it will expeditiously be declared surplus and be disposed of, except that the City Manager may approve a one-time temporary retention and use not to exceed 180 days. a. The General Fleet Coordinator may retain one surplus general-purpose sedan or pickup truck for a loaner vehicle to be used by departments when their vehicles are being serviced.

5. Authority to Dispose of Surplus Units. The Director of Finance & Information Technology is authorized to:
a. Declare replaced units as surplus whenever the Council has previously approved replacement through the budget process or other Council action. b. Dispose of surplus units by sale, auction, trade-in, or other disposal method according to City policies and procedures.
405-5

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-D: Buying New Versus Used

1. 2. Based on past experience with purchase of used general fleet equipment, and to ensure reliability and value, the City’s primary practice should be purchasing new vehicles and equipment when replacements are needed. Buying new fleet equipment takes advantage of design advancements and improvements in fuel usage at reasonable cost from competitive bidding through state and local cooperative purchase opportunities. This does not preclude the option to buy used on a case-by-case basis if there are specific reasons why used vehicles or specialized equipment is a more practical and cost-effective alternative to buying new.

3. Exception. One standing exception to this policy will be that the City will purchase used general-purpose police sedans. Police Department has found that it needs general- purpose sedans that:
a. Are not typically specified for government fleet use and have modest exterior trim levels so the sedans do not stand out as stripped-down government vehicles. This is important because these cars are often pressed into service for detective or undercover work.
b. Have large interior capacities with plenty of seat width and legroom in the rear.

This is important because these cars must occasionally respond to emergencies carrying four fully equipped patrol officers.

To meet these two criteria and keep replacement budgets reasonable, the City should buy used vehicles to replace general-purpose police sedans. This procedure is common practice in California cities when replacing similar police vehicles. 405-6

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-E: Environmental Stewardship

1. The City should incorporate “green” vehicles into its General, Fire, and Transit Fleets when such units:
a. Will produce significantly less air pollution, use less fossil fuel or have higher miles-per-gallon ratings than comparable conventional units. b. Will not compromise fleet safety, utility, and reliability. c. Can be fueled or recharged locally.
d. Can be serviced economically and locally.
e. Have a projected life-cycle cost that is no more than 20% higher than the projected life-cycle cost of comparable conventional-fuel units. The impact of environmental externalities, such as secondary pollution or market impacts from biofuel production and distribution, should be considered with potential decisions in procuring alternative fuel vehicles.

2. Each new and replacement unit should have the best fuel-efficiency and the lowest emissions available while performing its primary program use. Incidental or occasional program uses should not compromise good fuel-efficiency and low emissions. For example, if the primary use is local transportation for one or two people, then a small or ultra-small vehicle should be selected. If the program occasionally needs a larger unit to transport three or four people to an out-of-town conference, such a unit should be rented or borrowed from another program area.
405-7

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-F: Target Guidelines
405-8

1. The following table shows the age and mileage expected from City units in frontline operation before replacement or assignment to backup service:

Vehicle or Equipment Category Age
in Years Mileage
Years
Allowed in
Backup
Service*
Hours
Public Safety Vehicles
Police Patrol Vehicles --- 100,000 --- ---
**Other Public Safety Vehicles --- 100,000 --- ---
General Purpose Vehicles
Police Sedans 8 100,000 ---
Sedans 11 100,000 ---
Utility Vehicles 11 90,000 ---
Pickup Trucks (under 1 ton) 11 100,000 ---
Special Purpose Service Units
Light Trucks (under 1 ton) 15 150,000 ---
Medium Trucks (1 to 2 tons) 15 150,000 ---
Heavy Trucks (over 2 tons) 15 150,000 ---
Street Sweepers 10 150,000 6,000
Trailers 18 --- ---
Construction Equipment 12 --- 5,000
Buses 12 --- ---
Mowers 7 --- 5,000
* Backup service defined as setting aside a unit from front line or regular service for the sole purpose of being available during down time of the front-line unit. ** Includes any 24/7 scheduled unitsthat are primarily assigned as a front-line, first responder emergencycall vehicle.

2. For units bought used, the age and mileage targets apply to age and mileage since new, rather than age and mileage since acquired by the City.

3. Age/mileage/hours standards will be periodically reviewed and may be adjusted because of improvements in technology or maintenance practices.

4. In order to maintain the high level of reliability required for emergency response vehicles, police patrol units should be replaced when they reach their mileage targets

5. For non-safety units, the age/mileage/hours targets are only guidelines. Units in exceptional condition with low-cost repair histories may continue in service beyond expected age/mileage/hours targets at the discretion of the fleet coordinator. On the other hand, units may be recommended for replacement before expected age/mileage/hours targets are reached if there are problems with irreparable damage, high maintenance cost, unreliability, unsafe components, or technological obsolescence.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-G: New Units – Equipping & Marking
405-9

1. The fleet coordinator will equip each unit with the following articles:
a. Vehicle registration forms
b. Proof of insurance
c. An accident folder that includes an incident report form, an information exchange card, and witness information cards

2. General-purpose sedans, station wagons, and passenger vans do not require any special markings. However, these vehicles must be identified as belonging to the City of Arvin through such means as a license plate holder or window decal.

3. Utility vehicles, pickup trucks, and special purpose units will be marked with the current standard City logo and logo colors on each side and the City fleet identification number on the tailgate or other conspicuous area.

4. Police patrol vehicles and patrol motorcycles will be marked so that they will be immediately recognizable as City public safety vehicles. Marking schemes for patrol vehicles will be approved by the City Manager.

5. Transit Fleet vehicles will be marked with a distinctive scheme that includes the term “Arvin Transit.”

6. The City Manager must approve any deviations from the provisions of paragraphs 2 through 4 and any additional special markings on any units. Any significant change to established vehicle markings may, at the discretion of the City Manager, require Council approval.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-H: Fleet Additions & Replacements - Budgeting 405-10
Budgeting for additions and replacements will be pursuant to the City’s budget policies and the budget instructions issued for each Financial Plan cycle. Except as noted below, all fleet additions and replacements are approved by the Council through the budget process.

1. Budgeting for Fleet Additions
a. Prepare a Capital Improvement Plan (CIP) project request for each unit to be added.
b. Group similar units within one operating program into a single request. c. Understand that the City’s budget policies will apply to all such requests.

2. Budgeting for Fleet Replacements
a. Examine units that are near or beyond age and mileage targets. Recommend replacement if justified by maintenance history, overall condition, value, and obsolescence.
b. Prepare a CIP project request for each unit to be replaced. Group similar units within one operating program into a single request. Include the following minimum information for each unit to be replaced:
• City identification number (e.g., 0405)
• Model year (e.g., 2005), make (e.g., Ford), and model (e.g., F-350) • Description (e.g., one-ton truck)
• Assigned department (e.g., Public Works)
• Assigned program (e.g., Signal and Light Maintenance) • Acquisition year (e.g., 2004-05)
• Acquisition price
• Recommended replacement year (e.g., 2010-11)
• Estimated total replacement price (including the price of additional equipment such as radios and installation for new or transferred equipment) • Itemization of total replacement price (including base price, price of special equipment, price of special equipment installation, and five percent price contingency)
• Estimated surplus value
• Basis of estimated surplus value (e.g., blue book, previous auction proceeds) • Current odometer or hour meter reading
• Projected odometer or hour meter reading at replacement

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) • Maintenance cost since acquisition
405-11
• Maintenance cost in the last full fiscal year
• Justification for replacement before age or mileage targets • Justification for replacement with other than a like unit • An explanation of how the replacement unit conforms to the policies of Section 405-E regarding environmental stewardship

3. Off-Cycle Additions and Replacements
Request fleet additions or replacements at times other than the normal budget cycle (Financial Plans, Mid-Year Budget Reviews and Financial Plan Supplements) when necessary due to exceptional circumstances. However, except for replacements due to damage beyond repair as discussed below, understand that Council approval is always required.

4. Replacing Fleet Units Damaged Beyond Repair
Request City Manager approval to replace fleet units that have been damaged beyond repair, subject to all of the following conditions:
a. The Fleet Coordinator has evaluated cost options and recommended replacement rather than repair as the most cost-effective solution. b. The cost and method of replacement are within the City Manager’s purchasing authority.
c. Adequate resources are available for the purchase within existing budget appropriations.
d. The City Manager Report includes (1) the same information about the unit being replaced described in paragraph 2b of this section and (2) a full description of the circumstances resulting in the damage.

Request Council approval if the City Manager conditions in paragraph 4b and 4c are not met.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-I: Buying New Units
405-12
Note: All Fleet purchasessuch as Police patrol vehicles,sedans,station wagons, passenger vans, light to heavy trucks, utility vehicles, and construction equipment should generally be acquired new through State of California Multiple Award Schedule (CMAS) contracts. Specialized units not generally available through CMAS should generally be acquired new through “piggyback” purchases, where other local agencies have conducted competitive procurements and made those contracts available to the City.

1. Obtain a copy of the purchasing contract that extends contract prices to other government agencies.

2. Ensure that the specified unit along with options is appropriate for the intended use.

3. Contact any local dealers that might have been potential bidders to ensure that the cooperative contract price is a good value and prudent alternative to advertising for bids.

4. Include only those options needed to meet work requirements and typical comfort needs.

Avoid options like fancy wheels or leather upholstery that might be perceived asluxurious or extravagant, even if there is no difference in price compared to ordinary options.

5. Specify the exterior paint color to be white. Specify another base color (preferably solid and non-metallic) if authorized or if it will demonstrably improve safety, enhance utility, or reduce cost.

6. Prepare a purchase order for the contract dealer. Depending on the cost, submit a Council Agenda Report or City Manager Report requesting approval of the purchase order.

7. Receive the unit and examine it for defects and conformance to specifications. If satisfactory, mark the dealer’sinvoice “okay to pay,” initial it, and forward it to Accounting with a copy of the purchase order. Note: CMAS contracts often include substantial cash discounts for payment within a stated period of time. For this reason, invoices should be processed promptly to earn such discounts.

8. Forward any title documents to Accounting.

9. Pay any State of California CMAS invoices and charge the appropriate project account.

The State assesses a nominal service charge – typically one percent of the base price – for CMAS procurements. Invoices for these service charges usually arrive two or three months after the procurement.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-J: Invitation for Bids – Buying New Units
405-13
Note: Where appropriate vehicles and equipment are not available through cooperative purchasing contracts, they should be acquired new through invitations for bids.

1. Use the standard invitation for bids (IFB) template to create the specification.

2. In Section A (Description of Work), list the dimensions, capacities, ratings, and options that will adequately describe the unit needed for the intended use. Avoid describing a unit available from only one manufacturer.

3. Include only those options needed to meet work requirements and typical comfort needs.

Avoid options like fancy wheels or leather upholsterythat might be perceived as luxurious or extravagant, even if there is no difference in price compared to ordinary options.

4. Specify the exterior paint color to be white. Specify another base color (preferably solid and non-metallic) if it will demonstrably improve safety, enhance utility, or reduce cost.

5. If the unit will be picked up at the dealer or delivered by common carrier, eliminate insurance requirements from Section B (General Terms and Conditions) and eliminate Section E (Insurance Requirements) from the specification.

6. Eliminate the contract requirements from Section B (General Terms and Conditions).

Eliminate Section D (Form of Agreement) from the specification.

7. In Section C (Special Terms and Conditions), change language about awarding a contract to language about issuing a purchase order.

8. Along with the bid form, include a specification conformance form on which the bidder affirmatively indicates that its product meets the description included in Section A of the Invitation for Bid.

9. Depending on estimated cost, submit a City Manager Report or Council Agenda Report requesting authorization to invite bids. If a Council Agenda Report is submitted, request that the City Manager be authorized to award a purchase order if the cost is within budget.

10. Advertise for bids.

11. Open bids.

12. Prepare a purchase order for the successful bidder. Submit a City Manager Report requesting approval of the purchase order.

13. Forward the purchase order to Accounting.

14. Receive the unit and examine it for defects and conformance to specifications. If satisfactory, mark the dealer’s invoice “okay to pay,” initial it, and forward it to Accounting with a copy of the purchase order.

15. Forward any title documents to Accounting.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-K: Buying Used Vehicles
405-14
Note: Although the City’s past policy has been to buy used vehicles through dealers who sell used rental vehicles from rental, movie companies, there have been two disadvantages with using this procedure: 1) prices have tended to be at the high end of the retail range, above what is commonly referred to as “high blue book” value and 2) long-term reliability has been dubious because of the effects of multiple drivers and hard rentalservice.

To avoid these problems and, particularly, to find vehicles in excellent overall condition with relatively low mileage and reasonable prices, the City should use local auto brokers to find suitable vehicles at auction. This approach avoids high dealer markups and allows purchases of vehicles from leased corporate fleets. Such vehicles are usually in better shape than rental vehicles because they have typically had only one driver and have been subject to strict lease conditions regarding condition and mileage at the end of the lease.

1. Depending on estimated cost, submit a City Manager Report or Council Agenda Report requesting authorization to buy a used vehicle.

2. The Fleet Coordinator will initiate a search for a vehicle through brokers who buy and sell vehicles.

3. Select a late model, low mileage vehicle that appears to be in excellent overall condition.

Consider only vehicles with options needed to meet work requirements and typical comfort needs. Avoid vehicles with options like fancy wheels or leather upholstery that might be perceived as luxurious or extravagant, even if there is no difference in price compared to ordinary options.

4. Perform a technical inspection to confirm the vehicle is in excellent condition.

5. Negotiate a purchase price, including an extended warranty as appropriate, to be included in a written buyer’s order from the dealer.

6. Prepare a payment voucher and submit a City Manager Report for approval authorizing the appropriate Fleet Department Head to approve the purchase.

7. Forward the payment voucher to Accounting.

8. Receive the vehicle and examine it for defects and conformance to the buyer’s order.

If satisfactory, pick up the check from Accounting and pay the broker.

9. Forward any title documents to Accounting.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 405-L: Disposing of Surplus Units
405-15

1. When a unit is replaced or otherwise permanently removed from service, report to Accounting that it is surplus and available forsale.

2. Include in each such report the following information for each unit reported:
• City identification number (e.g., 9901)
• Vehicle identification number (VIN)
• License number
• Model year (e.g.,2005), make (e.g., Ford), and model (e.g., F-350) • Description (e.g., one-ton truck)
• Assigned department (e.g., Public Works)
• Assigned program (e.g., Signal and Light Maintenance) • Acquisition year (e.g., 2004-05)
• Estimated surplus value
• Basis of estimated surplus value (e.g., blue book, previous auction proceeds) • Current odometer or hour meter reading
• Justification for replacement
• Current location
• Authorization to surplus (e.g., budget document that authorized replacement or other Council authorization to replace or dispose of the unit)

3. Finance Division will dispose ofsurplus vehicles in accordance with Section 480 of the Finance Management manual.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 415 – Fixed Asset Accounting
415.-1

OVERVIEW
The City defines Fixed Assets, for the purposes of capitalization, as long-lived tangible items that cost $5,000 or more. Capitalized fixed assets are categorized as follows:
• Land
• Infrastructure
• Buildings and structures
• Improvements other than buildings
• Computer Equipment
• Vehicles
• Miscellaneous Equipment
Additions or improvements that significantly extend the useful life or substantially increase the operating efficiency of an asset are capitalized. Other related costs that only enable an asset to meet its original estimated useful life or operational efficiency are considered maintenance expenditures in the period incurred.

The Finance Division will record all items requiring capitalization using the Fixed Asset system.

All fixed assets are valued at cost, or estimated cost, if actual cost is not available. Contributed fixed assets are recorded at estimated fair market value at the time received. The Fixed Asset System will be updated at least annually in conjunction with the annual audit.

DEPRECIATION
Estimated useful lives are assigned to the various classes of fixed assets. Depreciation, a measure of the exhaustion of economic resources, is an allocation of the cost of a fixed asset over its useful life. Depreciation can then be used to determine the amount which must be budgeted annually to fund replacement of the item. Depreciation is calculated using the Fixed Asset System in conjunction with the annual audit.

Infrastructure items such as roads, curbs and gutters, streets and sidewalks, bridges, draining systems, and lighting systems are capitalized and depreciated using the straight-line method over the following estimated useful lives:

Assets Years
Infrastructure 35-50
Buildings and structures 15-40
Improvements other than buildings 15-40
Equipment 5-20
Vehicles 5
Detailed information regarding useful lives is provided in the “GASB 34” report prepared for this purpose, and as noted above, fleet replacement guidelines are provided in Section 405 of the

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 415
– Fixed Asset Accounting
415.-1
Finance Management Manual (Fleet Management).

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 475
– Introduction Real Property

TABLE OF CONTENTS
INTRODUCTION1
Purpose and Objectives1
Management Strategy2
Responsibilities2
State and City Requirements4
PROPERTY ACQUISITION6
Purchase6
Rents, Leases and Management Agreements6
PROPERTY DISPOSAL8
Sales and Long-Term Leases8
Leases of City-Owned Buildings 10
Right-of-Way 13
475.-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 475-Real Property – Acquisition & Disposal

PURPOSE AND OBJECTIVES
Purpose
The purpose of this policy is to set forth responsibilities and general strategies for the acquisition and disposal of real property, whether by sale, lease or via grants, donations, gifts, dedication or exchange.

This policy does not address maintenance and operations of City real property. These are covered in other policy documents that are more focused on operations. The City’s Wastewater Management Plans addresses maintenance and operations of the real property used in delivering these services such as treatment plants and reservoirs.

It also does not address City “personal property,” such as vehicles or computers. For example:
detailed policies and procedures for the acquisition, disposal, operations and maintenance of the City’s fleet are comprehensively set forth in the City’s Fleet Management Policy (Section 405 of the Financial Management Manual).

Lastly, this policy supplements provisions regarding the acquisition and disposal of real property that may exist in other City policy documents: unless there are direct conflicts, it does not replace them.

Objectives
The goal of this policy is to provide a framework for the acquisition and disposal of City real property that assures these actions:

1. Advance City plans, policies and goals, such as the General Plan (which consists of eight elements: Land Use, Circulation, Housing, Parks & Recreation and Conservation & Open Space, Noise, Safety and Wastewater); Bicycle Plan; Short-Range Transit Plan; and Financial Budget.

2. Provide effective stewardship of City assets.
475.-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction

MANAGEMENT STRATEGY
Team-Oriented Rather than Centralized or Decentralized
The opportunities to acquire or dispose of property, whether initiated by the City or others, are infrequent. Accordingly, it does not make sense to establish a centralized real property management function for this purpose. On the other hand, a highly decentralized approach is unlikely to be successful in achieving broader City goals and assuring effective stewardship of City assets.

For this reason, real property acquisition and disposal will be managed on a team basis, with the project manager and team members to be determined by the City Manager based on the nature of the sale or lease on a case-by-case basis. Depending on the complexity of the sale or lease, the project manager will be responsible for preparing a formal “Project Plan.” Along with staff members, the project team may include third party, independent advisors as needed based on the nature and complexity of the sale or lease, such as appraisers, engineers, accountants, legal counsel, economists, brokers and financing consultants. These will be selected in accordance with the City’s purchasing policies.

RESPONSIBILITIES

1. City Council
a. Adopts Real Property Acquisition and Disposal Policy. b. Determines the process that is most appropriate for the sale or lease of City property on a case-by-case basis.
c. Reviews the acquisition of City real property via its review of the Capital Improvement Plan (CIP) as part of the City’s budget process for General Plan consistency. d. Reviews the sale of all City-owned property for General Plan consistency.

2. City Manager
a. Recommends real property management policies to the Council and oversees implementation.
b. On a case-by-case basis, designates project manager and team members comprised of staff from various departments to manage real property acquisition and disposal projects. 475.-3

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction
Along with the project manager, the project team will typically include representatives from:
 Administration
 City Attorney
 Finance Division
 Operating Department responsible for managing the property that will be disposed of or acquired
 Other City staff as appropriate
c. Makes non-substantive administrative changes to policies and procedures as required to accomplish policy objectives.

3. City Attorney
a. Serves as member of project team as set forth in the Project Plan. b. Drafts required legal documents.
c. Manages escrow closing and other related technical duties, including review of title reports and insurance requirements to ensure encumbrances on City real property do not cloud title, whether acquired with City funds, grants, donations, gifts, dedications or exchange.

4. Finance & Information Technology
Finance Division
a. Serves as member of project team as set forth in the Project Plan. b. Manages financing and budgeting activities, as well as processes payment for a property sale or lease.
c. Reviews all City-owned properties as part of the two-year Financial Plan development process.

Planning
d. Via the City’s Geographic Information System (GIS), maintains an on-line inventory of City-owned properties and provides an annual summary report to the City Manager and department heads.

5. Project Manager
As designated by the City Manager on a case-by-case basis, provides overall planning, coordination and successful implementation of real property acquisitions and disposals. 475.-3

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction

6. Finance Director: Risk Management
Ensures appropriate insurance coverage for all properties; reports property acquisition and disposals to the City’s insurance carrier.

7. Finance Director
Maintains central records system for all real property acquisitions and disposals, including deeds and lease documents

8. Operating Departments
a. Serve as members of the project team as set forth in the Project Plan. b. Operating department responsible for managing the property that will be disposed of or acquired. Ensures compliance with any covenants or restrictions set forth in the deed or lease, including any grant or donor requirements.

STATE AND CITY REQUIREMENTS
While the City Attorney’s Office should always be consulted on real property acquisitions or disposals for compliance with State and City requirements, the following summarizes key guidelines:

1. State Guidelines
a. California Government Code Section 37380: Allows City-owned property to be leased for a period not exceeding 99 years.
b. California Government Code Section 54220: Surplus City-owned property must first be offered to:
 Housing authorities
 Parks, recreations and open space areas
 Enterprise zones
 Schools
While these agencies have the “right of first refusal,” the City is not required to accept an offer from these entities if the terms are not acceptable to the City. Property exchanges are exempt from these provisions.
c. California Government Code Section 65402: The Planning Commission must review all property acquisition and disposal proposals to determine compliance with the General Plan. 475.-4

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Introduction
d. Abandonment of Parks, Street Right-of-Ways: There are detailed requirements that must be met in each of these cases. As such, the City Attorney must be contacted for directions on a case-by-case basis.

2. City Requirements
 Sale of real or personal property in excess of $1,000.  Lease of personal property for more than three years.

The full text of these City requirements is provided in the Appendix. 475.-5

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 475-B- Property Acquisition

PURCHASE
The following guidelines apply to the purchase of real property, whether in the form of fee title, rights-of-way or easements; and whether purchased with City funds or acquired via grants, donations, gifts, dedications via the development review process or property exchanges. Prior to the acquisition of real property, a professional title search shall be completed.

1. Purchase with City Funds

1. Property purchase recommendations should normally be presented as part of the City’s Financial Plan process via the recommended Capital Improvement Plan (CIP). However, as opportunities arise, the Council may consider property acquisitions at any time.

2. Acquisition proposals should be consistent with adopted plans and policies, including the prior Financial Plans and the adopted CIP.

3. The Council must authorize negotiations and approve the acquisition of any real property.

4. Depending on the complexity of the transaction, market conditions and other circumstances at the time, the City may choose to be represented by a broker or other third-party professionals in acquiring real property. These will be selected in accordance with the City’s purchasing policies.

2. Acquisition Via Grants, Donations, Gifts, Dedications and Exchanges

1. Acquisition recommendations that will be fully or partially funded from grants, donations, gifts, dedications or exchanges should follow, at a minimum, the same guidelines as acquisitions financed from City funds. Where grant fund requirements for property acquisition are different from these guidelines, the requirement with the greater public disclosure will apply.

2. Council approval of acquisitions via grants will be required in accordance with the City’s Grant Management Policy (Section 740 of the Financial Management Manual).

3. In considering property donations and gifts, the City will evaluate and short and long- term maintenance and operating costs, as well as any one-time costs that might be necessary to rehabilitate properties for public use or meet building code requirements.

RENTS, LEASES AND MANAGEMENTAGREEMENTS
The following guidelines apply to real property rents and leases (including management agreements) where the City will be the tenant. This need may arise for short-term uses, such as rental of interim space during construction; or ongoing operational needs, such as leases for the 475.-6

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 475-7
Property Acquisition
City’s cellular tower or radio needs as well as cooperative use agreements with the school district for recreation programs.

1. These should normally be included as part of the City’s Financial Plan process. However, as needed, the City may consider renting or leasing property as required to meet the City’s operational needs at any time.

2. The approval authorization required for entering into lease agreements will be in accordance with the City’s purchasing policies.

3. Depending on the complexity of the transaction, market conditions and other circumstances at the time, the City may choose to be represented by a broker or other third-party professionals in renting or leasing real property. These will be selected in accordance with the City’s purchasing policies.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 475-C-Property Disposal
*-9 475-8
The consideration of selling or leasing City property may arise from the City’s initiative to do so or may be in response to interest from others. The guidelines below cover short-term leases of City property as well as long-term leases or fee-title sales.

SALES AND LONG-TERM LEASES
Sales Versus Long-Term Lease
In most cases, the sale or long-term lease of City real property will have a similar practical effect:
the use of City property by others for a very long time. As such, as set forth below, the basic process for the sale or long-term lease of City property will be same. The decision on whether the City goals will be better met through sale or long-term lease will be made by the Council on a caseby-case basis. Key factors to be considered include:

1. Which option represents the best financial return to the City?

2. Are the City’s fiscal goals at the time best met with one-time proceeds from the sale or from a long-term income stream? For example, if the disposition is directly linked to the funding of another capital project, such as the acquisition or construction of a replacement facility, then sale may make the most sense.

3. Does the City have a long-term policy, project, program or proprietary interest in how the property is used? In this case, a long-term lease may make the mostsense.

4. Is the property already fully developed, undeveloped or underdeveloped? If developed, was it intended to be used as leased space?

5. Are there limiting factors based on how the property was originally acquired or its initial intended use, such as grants, enterprise funds or donations) that would favor long-term leasing over direct sale?

6. What is the appropriate lease term? Depending on the circumstances, the Council is hereby authorized under this policy to enter into a lease for up to 99 years. Terms up to 99 years would be appropriate for leases where the intent, from a use and developer financing perspective, is intended to mirror a sale; but for the reasons outlined above, the City desires to retain fee-title.

In most cases, the decision will be a balancing of competing interests that can best be weighed by the Council based on the circumstances at the time.

Process: Determined on Case-by-Case Basis
The City disposes of property infrequently and the most appropriate process will vary in each case depending on the circumstances. The guidelines below are intended to provide the City with a framework for assessing the best approach on a case-by-case basis. It is not intended to

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Property Disposal
*-9 475-9
limit the approaches available to the City: the overarching principle that should always apply is using an approach that will best accomplish the City’s objectives given the circumstances at the time.

As outlined below, there are five basic approaches that the City could take in determining the best long-term use of City property by others: request for proposals, broker services, exclusive negotiations, competitive sealed bids or auction (or a combination of these approaches), which will be determined by the Council on a case-by-case basis depending on the circumstances.

1. Request for Proposals (RFP). This approach makes the most sense when the City isinitiating the sale or long-term lease of City property. It provides an opportunity to clearly articulate the City’s policy goals and the general terms and conditions under which it will select the successful proposal. However, even with an RFP process, extensive negotiations are likely to follow the finalist selection.

2. Broker Services. This approach makes the most sense for sales when the City is initiating the sale; the goal is primarily a financial one; and the conditions of the sale are straightforward.

The sale of the prior Headquarters Fire Station at Pismo and Garden Streets after the construction of the replacement Fire Station No. 1 at Broad and Santa Barbara in the mid1990’s is an example of where listing the property with a broker is likely to be the best option.

3. Exclusive Negotiations. This approach makes the most sense when considering the sale or lease in response to a development proposal by others. The following factors support this approach:
a. The City receives a written request from a proposer that sets forth its conceptual project and explains why it believes that exclusive negotiations are in the City’s best interest. b. The proposer owns or controls a majority of the privately held property adjacent to the intended area to be developed that is integral to the proposed development and required for successful implementation of the project. In this case, the project could not occur without the developer’s property and no other developer could make a similarproposal. c. The proposal involves an exchange of City-owned property with the developer/property owner. In this case, the project could not occur without the developer’s property and no other developer could make a similar proposal.
d. There is a clear link to the development proposal and accomplishment of significant City goals, plans or policies.
e. The proposer has a demonstrated record of completing highly successful projects in the City or similar communities.
f. Other circumstances where it is clearly in the City’s best interest in achieving major policy objectives to enter into exclusive negotiations.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Property Disposal
*-9 475-10
When this approach is used, the City will enter into a formal Exclusive Negotiating Agreement which will be considered at a public meeting and clearly sets forth the terms and conditions of the negotiating period.

4. Competitive Sealed Bids. This approach makes the most sense for sales when the City is initiating the sale; the goal is primarily a financial one; the conditions of the sale are straightforward; and the City believes that it can successfully market the sale without outside professional assistance.

5. Auction. This approach is typically used for delinquent tax sales or forfeited assets.

Accordingly, it is likely to be rarely used by theCity.

LEASES OF CITY-OWNED BUILDINGS AND REALPROPERTY
The following guidelines apply to leases of City-owned buildings to outside parties.

Leases with Non-Profit Organizations

1. Requests for the long-term use of City property by non-profit organizations should generally follow the same review procedures as the sale or lease of City property by private for-profit entities.

2. The proposed use should be consistent with the goals and objectives of the City’s General Plan and not conflict with or preclude any existing or planned City use.

3. Any development or operations directly related to the proposed use should have a clear and measurable community benefit in alignment with City goals, policies and plans.

4. Any lease agreements for the use of City property by non-profit organizations that charge a less than market rate for the City property should include a provision for community access and/or City use or operate in close partnership in the delivery of Cityservices.

5. Lessees will be responsible for all property related use taxes and insurance that may be assessed or needed.

Long-Term Uses
Buildings permanently intended for non-residential uses (such as retail or office) and located on land zoned for those uses
a. The City may use the services of a real estate agent or broker in advertising, locating and managing the leases. This selection will be made in accordance with the City’s purchasing policies. The net difference between the manager's fees and the rents collected shall accrue to the City.
b. For-profit entities should pay comparable market rents. Below-market rates may be considered for non-profit organizations in accordance with the guidelines above.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Property Disposal
*-9 475-11
c. Unless otherwise agreed upon, lessees will be responsible for making all tenant improvements and complying with all City zoning and land use requirements, including any special conditions the City may place on the property. d. Lessees will conform to the City's non-discrimination requirements. e. Lessees will be responsible for all property-related use taxes that may be assessed.

Buildings or real property permanently intended for specific City-approved purposes by others, such as cultural or agricultural uses
f. The lessee must be a formal, non-profit organization whose stated purpose is a public benefit aligned with the purpose and goals of the City. g. The proposed use must further the Council's intended goals or policies for the specific property and shall not conflict or preclude any existing or planned City use. h. The proposed use should be consistent with the goals and objectives of the City's General Plan for land use.
i. Any development of operations directly related to the proposed use must be in the public interest and supply measurable benefit to the public.
j. The lease agreement must include a provision for community and/or City use. k. Lessees will be determined either by a specific organization requesting use of t h e building or by the City actively seeking out an organization to fulfill the Council approved use for the property.
l. Approved lessees must conform to the City's non-discrimination requirements. m. Lessees will be responsible for all general maintenance and upkeep of the property and any expansion or improvement of the building, unless the Council otherwise chooses to help fund that expansion or improvement.
n. The long-term lease will be at a rate of $1 per year, unless the Council determines otherwise.

Typical properties in this category include the farm property south of Arvin, which is agricultural/open space operations.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Property Disposal
*-9 475-12
Interim Uses
Buildings on land eventually intended for other purposes, which are available for interim residential use and located on land zoned for that use
o. Each property will be evaluated on its particular merits and an appropriate agreement will be developed by the City.
p. For any properties acquired that are already being successfully managed by a property management company, the City may continue thisrelationship.

Buildings on land eventually intended for other purposes, which are available for interim uses on land zoned for other than residential uses
q. The Council will determine the best use of the property on a case-by-case basis. r. For any residential properties acquired that are already being successfully managed by a property management company, the City may continue this relationship. s. For non-residential uses, the City may use the services of a real estate agent or broker to advertise the property and locate and manage lessees. At this time the City has decided not to use a broker, but to deal directly with the tenants. The City will provide directions to the property manager, if any, as to the length of the lease term, since business/office users that install tenant improvements generally want lease terms long enough to recover those costs. t. Lessees will pay comparable market rents. Below-market rates may be considered for nonprofit organizations in accordance with the guidelines above. u. Lessees must conform to the City’s non-discrimination requirements. v. Unless otherwise agreed upon, lessees will be responsible for making all tenant improvements and complying with all City zoning and land use requirements, including any special conditions the City may place on the property.

Typical buildings in this category include properties in the Adobe Complex.

RIGHT-OF-WAY
Right-of-way disposals may be initiated by the City or in response to public requests. Right-ofway will only be abandoned when it has no apparent current or future use. The following guide the disposal of right-of-way:

1. The City will follow requirements of the State of California Streets and Highways Code in acquiring, disposing and abandoning public right-of-way.

2. Right-of-way that has been purchased in fee or easements purchased with City funds will be sold or leased in accordance with the policies above.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Property Disposal
*-9 475-13

3. Easements used for utility transmission and distribution systems will normally be reserved. If the utility previously using the easement declines further use, the City will offer it to other utilities before abandonment.

4. The City may place conditions of approval on abandonments of right-of-way that must be satisfied prior to transfer of ownership of the subject easement or property.

5. The City may reserve an easement for its water and sewer system or may reserve a blanket easement for all utilities.

6. The City will not guarantee the title of right-of-way it abandons.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Appendix
CITY ARTICLE IX, SECTION 906
*-9 475-14
906 Sale or Lease of City Property.

The City Council, by ordinance or resolution, shall adopt policies and procedures that shall be applicable to the sale or lease of City property.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Appendix
RESOLUTIONNO.
*-9 475
-15

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Appendix
RESOLUTIONNO.
*-9 475
-16
This is for a resolution regarding sale or lease of property.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 480-A

SURPLUS PERSONAL AND UNCLAIMED PROPERTY POLICY
480-1

OVERVIEW
This policy addresses the procedures for the disposal of surplus personal property, unclaimed property, consumable supplies, and junk. The policies and procedures for the disposal or sale of surplus real property, abandoned property and resale inventory are provided in other policy documents.

In preparing this policy, not all issues or exceptions could be anticipated. Accordingly, the guidance given in this policy does not relieve Staff from exercising good judgment in their stewardship of the City's property resources. Whenever there is a question or doubt between the guidance provided in this policy and the good judgment expected of a prudent person, good judgment should always be the prevailing standard, with this policy as a minimum standard.

LEGISLATIVE POLICY
A. Surplus Property
Council must approve the sale of surplus property (real or personal) with an estimated value greater than $1,000.

B. Unclaimed Property

1. The City Municipal Code provides for the disposal of unclaimed property by the Chief of Police. This property must be held for a minimum of four months and notice of sale must be given at least five days prior to sale by publication in a newspaper of general circulation. Property not sold may be destroyed by the Police Department after public auction.

2. Sections 2080.4 and 2080.6 of the Civil Code requires any person finding property valued at $10.00 or more to turn the property over to the Police Department within a reasonable time, stating when and where the property was found and providing a description of the property. If the property was saved, a statement is required from the "finder" describing:
a. From what and how it was saved.
b. Whether the owner of the property is known to the "finder". c. That the property has not been secreted, withheld, or partially disposed of.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Surplus Personal and Unclaimed Property Policy
480-2

ADMINISTRATIVE POLICY
A. The Director of Finance is authorized to declare as surplus those items of personal property and consumable supplies estimated to be less than $1,000 in value; Council approval is required to declare personal and consumable supplies as surplus with a value of $1,000.

B. Department Heads are authorized to approve the disposal of property that is essentially without value due to technical obsolescence or its unrepairable (or economically unrepairable) condition. Department Heads may dispose of such junk property in the manner they deem most appropriate, consistent with other rules, regulations, and the City's ethics policy.

C. Generally, estimating the value of surplus property is made by the Department Head or designated representative. In unique and unusual cases, Finance will assist Departmentsin estimating the value of property by using the City's auction firm to provide a professional estimate. However, in all cases, the Department Head must approve in writing the estimated value of the property to be sold or otherwise disposed of.

D. The Director of Finance is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property, consumable supplies, or unclaimed property in the most cost-effective manner. Normally the sale of this property will be at auction with a firm contracted to provide the following services:

1. Sell and dispose of personal property, consumable supplies and unclaimed property at auction.

2. Provide professional estimates as to the value of personal property and consumable supplies when required.

3. Assist in the sale of unique or special property and consumable suppliesthat requires the use of a "specialty house" to sell or dispose of the property.

4. Dispose of unsaleable property, supplies and equipment at an approved disposal site.

E. The Director of Finance may dispose of surplus property and supplies by transfer to another local government agency or non-profit organization based on the recommendation of a Department Head. Although there may be circumstances where it is appropriate to make such transfer without compensation, cash or in-kind services should generally be received in an amount equal to or greater than the estimated value provided by the City's auction firm or the Department Head. In the case of vehicles, "low blue book value" may also be considered.

F. As it is a normal business practice, trade value should be obtained to determine the most cost-effective method of disposal and as a standard by which to evaluate the services of the City's auction firm. There may be circumstances when trade value of

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Surplus Personal and Unclaimed Property Policy
480-3
property may exceed auction value; in which case the Director of Finance may authorize the trade of surplus property versus sale at auction based on the recommendation of the appropriate Department head.

G. Advertising the sale of the City's property and unclaimed property will be made by the City's auction firm in accordance with these procedures, the Auction Services Agreement, and legislative policy. Accordingly, the advertising must disclose that the property for sale at auction is either the surplus property of the City of Arvin or is unclaimed property in the possession of the City and it must state the date and time of sale. Property sold at auction will be advertised for at least five days in a newspaper of general circulation in the City of Arvin.

H. Property determined to be unclaimed by the Chief of Police may be sold at public auction in accordance with these policies and procedures under the following conditions:

1. It is a thing which is commonly the subject ofsale.

2. The owner cannot (with reasonable diligence) be found.

3. The owner, if identified, refuses to pay the reasonable charges incurred by the City for storing and safeguarding the property.

PROCEDURES
A. Surplus Personal Property and Consumable Supplies

1. Department Heads will identify personal property and supplies that are surplus to their needs and notify the Director of Finance & IT by Memorandum to sell or dispose of property identified, in accordance with City policy and procedures. The property to be declared surplus will be listed and include the City Asset Number (if applicable), a descriptive name of the property, quantity, pickup location, estimated value, and name of the contract person with their extension number. Separate memorandums must be prepared for property estimated to exceed $1,000 in value and for property estimated to be less than $1,000 in value. The memorandum (or listing) must indicate why the property is no longer required.

2. Department Heads may request that Finance assist them in estimating the value of personal property and consumable supplies. In such instances, Finance may request the services of the City's auction firm in estimating these values. However, these services are limited and should not be used except for unique and unusual property.

3. Special handling will be required for the disposal of toxic and hazardousmaterials and should be coordinated with the City's Fire Department.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Surplus Personal and Unclaimed Property Policy
480-4

4. After receipt of a request to dispose of personal property and consumable supplies from a Department Head, Finance will circulate the list of property to other City Departments as an advisory memorandum. The property listed may be claimed by other Departments on a first come first serve basis. After 10 days from the date of the advisory memorandum, this listing will be forwarded to the Housing Authority, San Luis Coastal Unified School District, and United Way for their information. If none of these agencies expresses interest in the remaining property items within 10 days of receiving the listing, then the property will be consigned to the City's auction firm for sale or other method of disposal as determined by the Director of Finance & IT. Except in unusual circumstances, surplus property will generally remain on site pending its final disposition. This means that it is the responsibility of the interested party to make arrangements with the disposing department to view the property, discuss its condition, and coordinate any terms of transfer such as price, timing, and transportation.

5. For property with a value of $1,000 or more, the Director of Finance & IT will prepare an Agenda Report for Council approval to declare the property as surplus after review by the operating departments as described above and prior to the consignment of property to the City's auction firm.

B. Evidence
The provisions of this policy do not address the disposal of property which is classified as evidence. Evidence is governed by the provisions of the penal code and must be dealt with accordingly. For example, evidence may be returned to the owner, subjected to lien, or classed as contraband and accordingly destroyed. However, evidence may also be determined by the Chief of Police to be unclaimed property and, in that event, will be processed in accordance with the policies and procedures provided below.

C. Unclaimed Property
Unclaimed property received by the City will be processed as follows:

1. The Police Department is required to receive, hold, and safe keep all property valued at more than $10 that is found within the City limits and turned in to the Police Department for safekeeping. The owner will be notified as to where the property may be claimed if the owner's identity can reasonably be determined.

2. If the owner appears within 120 days after receipt of the property by the Police Department, proves ownership, and pays all reasonable charges, the Police Department will return the property to the owner.

3. If the reported value of the property is fifty dollars or more (and no owner appears and proves ownership within 120 days), the Police Department will publish a notice, at least once, in a newspaper of general circulation. After seven days following the first published notice the following actions will be taken if no owner appears and proves ownership of the property;

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Surplus Personal and Unclaimed Property Policy
480-5
a. If the property was found in the course of employment by a City employee, the property shall be sold at public auction.
b. The title shall vest in the person who found the property if he or she is willing to pay the cost of the publication.
c. If the reported value of the property is less than $50 and no owner appears and proves ownership of the property within 120 days, the title shall vest in the person who found the property, unless the property was found in the course of employment by a City employee, in which case the property shall be sold at public auction.
d. Generally, the sale of unclaimed property will be made by the City's auction firm; however, in unique circumstances, the Chief of Police may request that Police Department staff conduct the auction. When the City's auction firm is used, the firm must be notified in writing with a list of property to be sold. This list does not require a statement of estimated values. The letter will give the name of the contact person and extension number, a short title property description, a pickup location, and a pickup time. e. Prior to sale, a listing of unclaimed property shall be provided to the Director of Finance & IT, who will circulate this list as an advisory memorandum to other City Departments. The property listed may be claimed by other Departments on a first come first serve basis. After a 15-day period from the date of the advisory memorandum, the unclaimed property will be available for sale at public auction according to policy. f. The unclaimed property to be sold by the City's auction firm will be transferred on consignment in accordance with the surplus property policies. g. Any property remaining unsold after being offered at public auction may be destroyed or otherwise disposed of by the City's auction firm.

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 480-B-Auction Firm Services
480-10

OVERVIEW
To reduce staff time in the sale and disposal of property, to reduce the amount of space being used to store surplus and unclaimed property, to improve the process of estimating the value of surplus property, and to maximize the value of return on surplus property, the Department of Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal of personal property, consumable supplies and unclaimed property on an "as available basis"after authorization is given by the Council or the Director of Finance & IT to sell or dispose of City property.

The policies and procedures provided below in conjunction with the City's auction firm will provide the staff with the opportunity to systematize the sale and disposal of this property.

AUCTION FIRM RESPONSIBILITIES
The following responsibilities will normally be assigned to the City's auction firm by Agreement between the City and the firm selected:

A. The auction firm will be required to pick up any and all "marketable" surplus property by consignment and deliver this property to their premises where it shall be inventoried, sorted, identified, and catalogued. An auction will be conducted within 30 days of receipt of property and supplies.

B. The auction firm will make the necessary arrangements for offering the property for sale by auction to the most qualified buyers to obtain the highest return possible. The auction firm will advertise the auction in a manner that will obtain the maximum participation by the public in at least one newspaper of general circulation in the City of Arvin for a minimum of five days prior to a scheduled auction.

C. The property consigned to the auction firm will remain the property of the City until sold or disposed of in accordance with these procedures.

D. Property not sold at auction will be disposed by one of the followingmethods:

1. Consignment to a sub-contractor specializing in unique or special equipment and material for which there is no local market.

2. Direct sale to a buyer of unique or special equipment and material for which there is no local market.

3. By sale as salvage to a local dealer or any recycling firm.

4. By destruction at an appropriate landfill site and certification thereto.

5. Returned to the City.

E. The material and equipment not sold at auction will be disposed of by one of the methods described above within 15 days from the date offered at auction. For the purpose ofthese

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 480-11
Auction FirmServices
instructions, the City will give approval as to the disposal method based on the recommendation of the auction firm and the method that is in the best interests of the City.

F. The auction firm will provide the Department of Finance & IT with a list of consigned property with a check for the net proceeds from the auction or specialty sale within 60 days of receipt of consigned material and equipment providing the followinginformation:

1. City Asset number (if available)

2. Short title description of the property

3. Date of sale or disposal

4. Purchaser or the disposal site

5. Total purchase price

6. Auction fee

7. Net to City

8. Method of disposal (sale at auction, transfer to a specialty house for sale, direct sale as salvage, transfer to an appropriate landfill or disposal site, return toCity)

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 501-1
Section 501-Budget Policies & Procedures
The purpose of this section is to describe the City’s budget policies and procedures. Areas currently covered include:
• Overview of the City’s budget process (Section 505)
• Budget amendment requests (Section 540)
• Re-appropriation policy for operating programs and capital improvement plan projects (Section 550)
• Monitoring budget performance—monthly expenditure reports and comprehensive annual financial reports (Section 560)
• Accounting for completed capital improvement plan (CIP) projects (Section 565)

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 505-Budget Process Overview
505-1
Significant features of the City's Financial Plan include the integration of Council goal setting into the budgetary
process and the extensive use of formal policies and
measurable objectives. The Financial Plan includes
operating budgets and a capital improvement plan.

While appropriations continue to be made annually under this process, the Financial Plan is the foundation for
preparing the budget every year. Additionally, unexpended operating appropriations from the budget year may be
carried over for specific purposes into the next year with the approval of the CityCouncil.

Purpose of the City's Financial Plan. The fundamental
purpose of the City's Financial Plan is to link what we want to accomplish for the community with the resources
necessary to do so. The City’s Financial Plan process does this by clearly setting major City goals and other important objectives; establishing reasonable timeframes and
organizational responsibility for achieving them; and
allocating resources for programs and projects.

Major City Goals. Linking important objectives with
necessary resources requires a process that identifies key goals at the very beginning of budget preparation. Setting goals and priorities should drive the budget process, not follow it.

For this reason, the City begins each year’s Financial Plan process with a series of in-depth goal setting workshops where Council members invite candidate goals from
community groups, Council advisory bodies and interested individuals; review the City's fiscal outlook for the next year and the status of prior goals; present their individual goals to fellow Council members; and then set and
prioritize major goals and work programs for the next year.

City staff then prepares the Preliminary Financial Plan based on the Council’s policy guidance.

Financial Plan Policies. Formally articulated budget and fiscal policies provide the foundation for preparing and implementing the Financial Plan while assuring the City’s long-term fiscal health. Included in the Financial Plan itself, these policies cover a broad range of areas such as user fee cost recovery goals, enterprise fund rates,
investments, capital improvement management, capital
financing, debt management, fund balance and reserves,
human resource management, and productivity.

Preparation and Review Process. The City Manager is
responsible for preparing the budget and submitting it to the Council for approval. Although specific steps will vary from year to year, the following is an overview of the
general approach used under the City's budgetary process:

First. As noted above, the Financial Plan process begins with a Council goal-setting session to determine major
objectives to be accomplished over the next year. The
results of Council goal setting are incorporated into the budget instructions issued to the operating departments, who are responsible for submitting initial budget proposals.

After these proposals are comprehensively reviewed and a detailed financial budget is prepared, the City Manager issues the Preliminary Financial Plan for public comment.

A series of study sessions and public hearings are then held leading to Council adoption of the Financial Plan by June

30. Mid-Year Reviews. The Council formally reviews the
City’s financial condition and amends appropriations, if needed, six months after the beginning of each fiscal year.

Interim Financial and Project Status Reports. Online
access to “up to date” financial information is provided to staff throughout the organization. Additionally,
comprehensive financial reports are prepared monthly to monitor the City's fiscal condition, more formal reports are issued to the Council on a quarterly basis, and special report are provided on focused topics on an ongoing basis on sales tax, transient occupancy tax and investments. The status of major program objectives – including CIP projects – is also periodically reported to the Council on a formal basis.

Administration. The Council may amend or supplement
the budget at any time after its adoption by majority vote of the Council members. The City Manager has the
authority to make administrative adjustmentsto the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 540-Budget Amendments
540-1

OVERVIEW
Formal amendments to the budget (including increases or reductions in both revenues and expenditures) may be required for a variety of reasons, including:
□ Supplemental appropriations approved by the Council.
□ Changes in Memorandums of Agreement.
□ Acceptance of grant programs.
□ Revisions to currently funded programs, projects and activities. □ Intra-departmental revisions between and within program areas.

A standard Budget Amendment Request form is used to document all budget changes. Amendments to the budget that do not have significant policy impacts and will not affect budgeted fund balances or working capital may be administratively approved; all other changes require Council approval.

POLICIES
Budget Control
Through adoption of the Financial Plan, the Council sets major City goals and program objectives, approves timeframes and departmental responsibility for accomplishing them, establishes service levels, and appropriates the resources necessary to achieve objectives and deliver services.

Under our program budgeting approach, departments are provided with significant flexibility in managing the resources allocated to them for these purposes: although detail line-item budgets are prepared for each of our operating programs, formal budget control is maintained at the fund level by department. However, in order to help assure that this overall budgetary control goal is achieved, more detailed financial reporting and budget control guidelines are internally used at the program and object level as more fully discussed in Section 560: Monthly Expenditure Reports of the Financial Management Manual.

Budget Amendment Authority
□ Council. The Council has the sole responsibility for adopting the City's budget and may amend or supplement the budget at any time after its adoption by majority vote of the Council. After budget adoption, all supplemental appropriations from fund balance or working capital require Council approval.
□ City Manager. The City Manager has the authority to make or approve administrative adjustments to the budget as long as those changes will not have significant policy impacts nor affect budgeted year-end fund balances or working capital.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-2
□ Director of Finance. The Director of Finance has the authority to make or approve administrative adjustments to all line-item accounts at the department and program level, and to adjust offsetting revenue and expenditure accounts based on policies or programs approved by the Council. However, any such adjustments must not have significant policy impacts nor affect budgeted year-end fund balances or working capital. □ Department Heads. Department Heads request to make administrative adjustments within and between their program budgets as long as those changes do not have significant policy impacts nor affect department totals at the fund level. However, even within these guidelines, budget amendments require City Manager approval under the following circumstances:
• CIP projects. All budget changes to capital improvement plan (CIP) projects. • Staffing. All budget changes to staffing accounts, both within and between programs.

Note: In accordance with the City’s line-item control policies as set forth in Section 560, Budget Amendment Requests are not required to correct for overages for sub-object level overtime accounts within the program.
• Travel, meetings and dues. Any budget increases in this object code at the departmental level. This means Department Heads may approve inter-program budget changes in this object code as long as departmental totals for it are not higher.

Budget Amendment Request
To ensure that all changes to the budget are correctly recorded and appropriately authorized, a standard Budget Amendment Request form is used to document all budget changes, including those approved by the Council. As such, any Council Agenda Report that amends the budget should be accompanied by a completed Budget Amendment Request when submitted to the Director of Finance & IT as part of the agenda review process; however, as noted below, it will not be included with the Council Agenda packet.

PROCEDURES
□ Initiating the Amendment. The operating department requesting an amendment is responsible for completing the Budget Amendment Request. If the request requires a new program or account number, the Department of Finance & IT should be contacted before completing the form for the assignment of appropriate account numbers. Department Head approval of the request is required before its submission to the Department of Finance &IT. □ Finance Review. All requests should be submitted to the Finance Manager who will review the request to determine the effect of the change on fund balances and to verify the account numbers. If required, the request will be forwarded for approval to the Director of Finance & IT; as determined by her or him, approval by the City Manager may also berequired.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-3
□ Council Agenda Reports. Budget Amendment Requests that are related to a Council agenda report will be pulled by the Department of Finance & IT and held pending Council action. If the Council approves the item, the request will be processed by the Department of Finance & IT without further action required by the department. Items disapproved or changed by the Council will be returned to the originating department for further action as appropriate. □ Implementation. After the Budget Amendment Request has been submitted and approved, the operating department should review the next Monthly Financial Report to ensure that the change has been processed as requested.

PREPARING THE BUDGET AMENDMENTREQUEST
The Budget Amendment Request form has been placed on the City’s intranet.

Provided in Exhibits 1 and 2 are completed samples of the Budget Amendment Request form. (Note: The request does not have to be entered in Excel or typed; legible printing is the desired method of preparation if data is not entered into a spreadsheet.) As this form updates on-line budgetary information as well as Monthly and Quarterly Financial Reports, its timely completion is essential in maintaining the accuracy of these reports.

Completing the form itself is largely self-explanatory. The following highlights key areas to consider in preparing the form:
□ More than One Department. The signatures of all Department Heads are required if more than one department is affected.
□ More than One Fund. Only one fund should be affected per form to ensure that any budget transfers between funds will not result in changes in ending fund balance for any of the funds. □ Regular Staffing. When proposing to use savings from regular staffing costs to fund other cost areas, the contra-account of Salary Savings (707) should be used instead of directly reducing all the other affected line accounts (regular salaries as well as related benefits). This approach has several benefits: it reduces the number of specific line-item accounts that would otherwise have to be adjusted to correctly reflect the savings; and it retains the budgeted cost for authorized regular staffing levels for information and financial reporting purposes. □ City Manager Approval. Whenever City Manager approval is necessary as discussed above, a City Manager Staff Report should accompany the Budget Amendment Request.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-4
□ Council Approval. The Council must approve all budget amendments under the following circumstances.
• Total amendments for expenditures do not equal zero. In the sample provided in the first exhibit, Council approval would not be required. However, because staffing accounts are affected, Human Resources Director review and City Manager approval would be required. • Total amendments for revenues and expenditures are not equal; in the sample provided in Exhibit 2, Council approval would be required.
◼ Reason for the Amendment. In most cases, the space provided on the form u n d e r “purpose” should be sufficient to describe the need for the requested change (supporting documentation may be attached if appropriate but it is not required). If the amendment implements Council or prior City Manager approval of a budget change, the date of this action should also be referenced in this section.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-5

EXHIBITS

1. Sample budget amendment request reflecting administrative line-itemadjustments.

2. Sample budget amendment request reflecting Council approval of new appropriation.

Exhibit 1: Sample Budget Amendment Request
Administrative Approval
Requesting Department Fund Name Fund No.

Finance General 100

REVENUES AND OTHER FINANCING SOURCES
Account Description Revenue Account No.

Amendment
Amount
TOTAL 0

EXPENDITURES AND OTHER FINANCING USES
Account Description Program Account Project Phase Amount Temporary Salaries 25300 7014 5,000
Overtime 25300 7020 3,500
Wide Area Network Services 25300 7351 4,500
Salary Savings 25300 707 (11,000)
Contract Services 25120 7227 (2,000)
City Manager approval is
needed on all such requests.

PURPOSE

BUDGET AMENDMENT REQUEST
Use salary savings from two vacant positions in Information Systems and other contract savings

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-6
Department Head Date Director of Finance Date
City Manager Date Entered By Date

Page 1 of 1 ends

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Budget Amendments
540-7
Exhibit 2: Sample Budget Amendment Request
Council Approval
Requesting Department Fund Name Fund No.

Public Works Capital Outlay 400

REVENUES AND OTHER FINANCING SOURCES
Account Description Revenue Account No.

Amendment
Amount
Proceeds from Bond Sales 500,000
Transportation Impact Fees 325,000
TOTAL 825,000

EXPENDITURES AND OTHER FINANCING USES
Account Description
General Ledger No, Capital Project No. Amendment
Program Account Project Phase Amount
Street Resurfacing 90012 990 (165,000)
Mathews Property 90347 990 1,095,000
Acquisition 53900347 90550 885,000
Environmental Review 53900347 90557 25,000
Site Preparation 53900347 90555 35,000
Design 53900347 90552 50,000
Construction 53900347 90553 100,000
Because the net effect is
not zero, Council
approval is required.
930,000

PURPOSE
Funding for Mathews property purchase and improvements per Council approval of 11/3.

Department Head Date Director of Finance Date
City Manager Date Entered By Date

Page 1 of 1 ends

BUDGET AMENDMENT REQUEST

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 550-Budget Carryover
550-5
Under the City's Financial Plan policies, annual appropriations for designated capital improvement plan (CIP) projects lapse after three years unless funds are subsequently appropriated for specific project phases (such as study, design, acquisition or construction). This usually occurs at the time of contract award.

The following sets forth basic procedures for implementing this aspect of the City's Financial Plan policies.

BUDGET BALANCE CARRYOVER
Budget balances at the end of each year will be carried over in their entirety on a project-by- project basis.

LAPSED PROJECTS
In the event that funding will lapse because sufficient progress has not been made in studying, designing, acquiring or constructing projects within the three-year timeframe following Financial Plan adoption, the managing department will either:
• Resubmit the project for consideration in a subsequent capital improvement plan. • Present a report to the Council recommending that the project be eliminated or indefinitely deferred. This report may be prepared on a "case-by-case" basis or incorporated into the overall budget review and approval process.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 560-1
City of
Arvin
Section 560-Monitoring the City’s Fiscal Performance

OVERVIEW
Staying on top of the City’s fiscal condition on an ongoing basis—on both the revenue and expenditure side of the equation—is an essential part of our overall strategy for preserving our fiscal health. The following summarizes how we report on this at the Council and staff level.

Core Principles
There are four core principles underlying our fiscal monitoring and reporting efforts:
 Strong Systems. We need to have an underlying financial management and internal control system that captures and produces both timely and reliable information (one without the other is worthless).
 Meaningful Reports. To be useful for policy makers and managers, this raw data then needs to be analyzed and summarized to answer the key question of: what’s it mean? And setting specific, periodic reporting goals and standards is one of the best ways of ensuring that this kind of analysis is in fact taking place. While this requires more time and effort, it is a critical organizational discipline.
 Timely, Open Reporting. Full, open, honest and straightforward disclosure of our fiscal condition on an ongoing basis—whether good or bad—to elected officials, senior managers, the organization at-large and the community is a fundamental precept for effective and responsible stewardship of the public resources that have been entrusted to us. In short, we may not always like results—but if we are doing our job, they should never be a surprise.  Organizational Responsibility. On the revenue side (especially in the General Fund), the Department of Finance & Information Technology plays the lead role in managing the City’s fiscal condition; on the expenditure side, Department Heads have the principal responsibility for ensuring that the City’s resources are used wisely and in accordance with adopted plans, policies, service levels and the resources allocated by the Council.

FISCAL HEALTH MONITORING
Council-Focused Reports
The following reports are provided to the Council on an ongoing basis, and except as noted, typically cover both revenues and expenditures. In all cases, these same reports are widely distributed within the organization; and several of these that have broad interest—such as our Sales Tax Newsletter, TOT Newsletter, Quarterly Financial Newsletter and Monthly Investment Report—are distributed externally to others and posted on our web site.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 560-2
◼ Financial Plan. This is the benchmark against which we measure our fiscal performance for revenues, departmental operating expenditures and CIP projects. And while this document primarily looks forward to the next year, it also includes detailed information about our fiscal performance for both revenues and expenditures for the prior five years. ◼ Financial Plan Supplement. Under the Financial Plan concept, appropriations in the next year’s plan are based upon the framework and foundation developed during the budget process.

Again, this report provides prior and current year information on the status of revenues, departmental expenditures and CIP projects.
◼ Mid-Year Budget Review. Prepared six months into each fiscal year, this is another opportunity to take a formal look at the City’s fiscal performance, and take corrective action as needed.
◼ Quarterly Financial Newsletters. In staying focused on the “big picture,” we issue a one- page Newsletter (okay, so it’s front and back—but it’s still one piece of paper) quarterly focusing on key fiscal performance indicators in the General and Enterprise Funds. This includes yearto-date revenues, expenditures and changes in fund balance, “Top 10” General Fund revenues (which account for about 95% of the total) and budget versus actual expenditures for each of the departments. The last quarter report serves as an Interim Annual Financial Report for the year pending issuance of the City’s Comprehensive Annual Financial Report. This Newsletter is also distributed electronically to allemployees.
◼ Comprehensive Annual Financial Report. This includes audited financial statements for all of the City’s funds, including budget versus actual for revenues and expenditures. More importantly, it includes a transmittal memorandum from the Director of Finance & IT that concisely analyzes key fiscal results for the year.
◼ Monthly Investment Report. This report shows the City’s cash and investment position for all funds held by the City and our trustees. The Investment Oversight Committee meets quarterly for a detailed review of the City’s investment performance and conformance with investment policies.
◼ Council Agenda Reports. In every Council agenda report, we assess the fiscal impact of the recommended action, including any budget shortfalls if applicable.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 560-3
Monitoring the City’s FiscalPerformance Page 3
Staff-Focused Reports
As noted above, City staff receive the same reports as those listed above. This is supplemented by more detailed reports as follows (which are also available to the Council upon request). ◼ On-Line Access. Through our network, up-to-date financial information is available on-line to everyone in the organization. This ranges from high-level summaries to detailed, individual transactions.
◼ Monthly Financial Reports. Even though data is available on-line, we produce and distribute detailed monthly financial reports to ensure that records are accurate and up to date. (This is one of those “organizational discipline” things.)
◼ Quarterly CIP Expenditure Status Reports. The CIP Review Committee meets at least quarterly to review the status of CIP projects. An important part of their role is to identify any problem areas with upcoming projects (and resolve them); and to ensure smooth coordination of complex projects. These detailed reports on the “project-to-date” budget and expenditure status of all CIP projects are to be distributed.
◼ Daily Cash Balance Reports. Every day we access the City’s bank cash balances on-line and compare them to our general ledger. While the primary reason for this is maximum investment of idle cash, it also keeps us on top of our cash position.

SUMMARY
There are two key aspects to our approach in monitoring our fiscal condition: we are committed to an ongoing program of collecting meaningful information and reporting on it; and then ensuring that this information is acted upon in a timely manner.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 561-1
Section 561-Monthly Financial Reports

OVERVIEW
In addition to providing up-to-date, on-line access to the City’s financial system, the Finance Division issues “hard copy” monthly financial reports to assist operating departments in monitoring their expenditures and revenues. These reports detail on a line-item basis year-to- date budget, expenditure and encumbrance information for each operating program and capital improvement plan (CIP) project. Similar information is provided forrevenues.

The purpose of these reports is to help identify erroneous postings and approved-but-unrecorded budget changes. It also helps identify any over-budget expenditures that must be corrected, either through internal reallocations or supplemental appropriations requiring Council approval.

POLICIES
Timely Financial Reports
Finance will issue monthly financial reports by the tenth working day of the month (except for June, when longer lead times are required to include year-end items).

Budgetary Controls
◼ Operating departments are responsible for ensuring that adequate funds are available within the object budget for the program (or phase level for CIP projects) before submitting payment vouchers and purchase orders to Finance for processing. ◼ Operating departments are responsible for addressing on a timely basis any budget totals that are over-expended at the object level within the operating program or phase level within individual CIP projects. For operating programs, object levels are:
• Staffing (See note below on additional staffing line-item control) • Contract Services
• Office Expenses
• Travel, Meetings and Dues
• Communications and Utilities
• Rents and Leases
• Insurance
• Operating Materials and Supplies
• Minor Capital Outlay

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 561-2
Monthly FinancialReports
Staffing. There is further line-item control within the following staffing object levels within the program:
• Regular staffing
• Contract staffing
• Temporary staffing
• Special staffing accounts (Such as Council/Commissions or Uniform Allowances) • Overtime (Note: Does not include detail sub-object codes for overtime within the program)
Corrective Action
◼ Operating departments are responsible for initiating corrective action for any problem areas.

There are generally two options for this:
◼ Submitting a memorandum to Accounting requesting a correction due to incorrect coding or posting of charges or receipts.
◼ Preparing a Budget Amendment Request.

Note. Depending on the circumstances, this may require City Manager or Council approval.

The guidelines for preparing and approving budget amendments are set forth in Section 540:

Budget Amendment Requests of the Financial Management Manual.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 565-Completed CIP Projects-Accounting
565-1

OVERVIEW
Under the City's capital improvement plan (CIP) budget policies, funding is approved for each CIP project by phase when the Financial Plan is adopted. Unless otherwise approved by the Council, appropriations for each phase lapse after three years if no activity is shown for the account.

As the project proceeds, there are a number of systems for monitoring its status, including on- line financial reports, formal monthly and quarterly financial reports, formal CIP status reports, ongoing CIP Review Committee review and comprehensive procedures for approving construction change orders as set forth in Section 225 of this manual.

The purpose of this section is to bring closure to the CIP project funding process by establishing procedures for accounting for completed projects.

GOALS
◼ Provide consistency in accounting for completed CIP projects. ◼ Improve financial reporting on the status of CIP projects and related effects on theCity’s fiscal condition.
◼ Assure timely and consistent filing of notices of completion for construction projects. ◼ Identify responsibility for approving the use of budget balances from completed projects.

PROCEDURES
Filing of the Notice of Completion for Construction Projects Upon completion of construction project work specified in the contract, the City Engineer will forward to the City Manager the Notice of Completion for signature. The Notice will then be filed with the County of Kern within 10 days of the last day of work on the project to begin the formal notice for liens against the project for materials and labor.

Reporting on Completed Projects
Upon completion of each project, the managing department is responsible for preparing a City Manager Report summarizing its final status. Generally, reports are only required upon the completion of the construction phase and should encompass all phases of the project. However, if the project is not expected to go beyond the study, design or acquisition phase, the report should be prepared upon completion of the furthest phase. Reports should:
◼ Briefly summarize the purpose of project.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
565-2
◼ Discuss any unusual circumstances or difficulties in completing the project and recommend corrective action for the future if appropriate.
◼ Compare estimated and actual completion dates.
◼ Compare the project budget with actual costs. This comparison should provide sufficient detail to meaningfully summarize key expenditure areas and project phases. ◼ Summarize the status of any outside funding sources such as grants, loans, donations or developer agreements.
◼ Identify any outstanding encumbrance balances that should be closed once final contract payments are made.
◼ Request authorization for a budget amendment request transferring any remaining budget balances to or from the fund’s completed or master project account. Processing of the budget amendment request will follow upon completion of the claim period for constructionprojects.  Note: This account is established in each fund in order to account for net budget balances resulting from completed projects. This balance is available to fund new projects or offset shortfalls in existing projects, subject to Council or City Manager approval as discussed below.

Roles and Responsibilities
◼ City Council. Approval by the Council is required for all transfers from the completed projects account for any new projects as well as for any existing project when the transfer amount exceeds the City Manager’s purchasing authority.
◼ City Manager. The City Manager is authorized to make transfers to and from the master project or completed projects account for existing CIP projects. The City Manager’s authority to transfer balances from this account is limited to amounts otherwise within his or her purchasing authority.
◼ City Engineer. Public Works is responsible for ensuring that notices of completion for construction projects are appropriately filed.
◼ Department of Finance & Information Technology. The Finance Division is responsible for reviewing completed project reports for fiscal accuracy; processing the approved budget amendment request and ensuring that project budget balances on the next monthly financial report will be zero; reducing encumbrances as recommended by the managing department and ensuring that encumbrance balances will be zero after any final project contract payments are made; and ensuring that projects completed by the end of the fiscal year are not carried over into the next fiscal year.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
565-3
◼ Operating Departments. Upon completion of a CIP project assigned to them, operating departments are responsible for completing timely and accurate City Manager Reports summarizing the project's final status as discussed above. A sample report is provided in Exhibit A.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
565-4

SAMPLE STAFF REPORT-CIP COMPLETION
August 16, 200X
FROM: CITY ENGINEER
SUBJECT: PROJECT COMPLETION: SMOTHERMON SPRAY PARK
The purpose of the Laguna Lake dredging project was to mitigate flooding damage and improve recreational use of the lake by removing sediment that had built up over time. Prior to this project, the lake had never been dredged in its entirety, although there had been limited dredging of the Park Sump area on a periodic basis.

Unusual Circumstances or Difficulties
The primary difficulties in completing this project—mitigating environmental concerns and identifying appropriate methods for disposing of dredged materials—were identified and resolved during the study and design phases. No significant difficulties were encountered during construction. This project was scheduled to be completed within 150 days after authorization to proceed; construction was completed within 148 days.

Project Budget Summary
Original
Budget
Budget As
Amended Actual Variance
Study 50,000 39,000 39,000 -
Design 30,000 27,000 25,000 2,000
Construction
Bid Amount Change 230,000 225,000 225,000 -
Orders Other Project 25,000 15,000 10,000
Costs* 5,000 5,000 3,500 1,500
Construction Management 15,000 15,000 12,500 2,500
TOTAL 330,000 336,000 320,000 16,000
* Soils reports; materials testing
Status of Funding Sources
◼ Grant funds for this project were awarded in the amount of $125,000 (50% of construction costs). Because construction costs were less than budgeted by $10,000 ($240,000), $120,000 is the total grant eligible amount. To date, $100,000 has been requested, and of this amount, $75,000 has been received. Upon final payment to the contractor, the remaining balance

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Accounting for Completed CIP Projects
565-5
($20,000) will be requested. No problems are anticipated in receiving the total eligible amount.
◼ Zone 9 contributed a fixed amount of $50,000 for this project. All funds have been billed and received.

The following is a brief overview of the final funding for this project:

Project Funding Summary
Original
Budget
Budget As
Amended Actual Variance
General Fund 155,000 161,000 150,000 11,000
Zone 9 50,000 50,000 50,000 -
Federal Grant 125,000 125,000 120,000 5,000
TOTAL 330,000 336,000 320,000 16,000
Because $5,000 of the $16,000 in project savings is allocable to grant funding, only $11,000 is recommended for transfer to the completed projects account in the Capital Outlay Fund.

Correspondingly, the budget estimate for grant revenue in the Capital Outlay Fund should be adjusted downward by $5,000. (See attached budget amendment request).

Contract Status
Original
Contract
Change
Orders
Total
Costs*
Contract
Balance
Wepus Management 15,000 - 12,500 2,500
Smith Construction 225,000 15,000 240,000 -
SSN Associates 27,000 - 25,000 2,000
* Including final payments that will be processed within the next 30 days pending publishing the notice of completion.

Combined with the attached budget amendment request, reducing the Wepus Construction Management and SSN Associates encumbrance balances as indicated above should result in "zero" balances for all phases of this project.

ATTACHMENTS
◼ Notice of completion
◼ Budget amendment request closing project balances

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 601-1
Section 601-Key Accounting Policies & Procedures
The purpose of this section is to describe the City's key accounting policies and procedures. Areas currently covered include:

Correction of Payroll Payment Errors (Section 631)
Approval authorizations (Section 635)
Procedures to be used in accounting for the costs of disaster response and recovery (Section 650) Security deposits such as guarantees, letters of credits, certificates of deposits, promissory notes, and performance bonds (Section 670)
Future areas that will be covered include:

Significant accounting policies
Purpose and preparation approach of the cost allocation plan Payroll procedures (timesheets, personnel actions, periodic reports, schedules) Accounts payable (voucher preparation, purchase orders, schedules)

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 631-A-Payroll Procedures – Corrections of Payments Although the City strives to ensure that employees are correctly paid with every paycheck, from time-to-time payment errors will happen. The following sets forth the City’s policy for correcting underpayments and overpayments to our employees.

Underpayments
Immediate Correction. Underpayments will be corrected through a one-time payment to the employee on the next paycheck after the error has been identified and the correct amount of the retroactive payment has been calculated.

Interest If One-Year or More. If the underpayment has occurred for one year or more, the City will pay interest on the underpayment based on the interest rate earned by the City during that same period on its investments placed in the Local Agency Investment Fund (LAIF). Due to its “de minimus” affect, no interest will be paid on underpayments that occurred over less than one year.

Overpayments
Installment Payment Option Via Payroll Deduction. When an employee has been overpaid, the full amount of the overpayment is due to the City. The City will offer the employee the option, via payroll deduction, to repay the amount of the overpayment up to the same period of time that the overpayment occurred. For example, if an employee was overpaid $1,000 for six months (13 payroll periods), the employee will have the option of repaying this amount in 13 payroll period installments of $76.92 each. (Employee may choose a shortertimeframe).

To exercise this option, employees must authorize the deduction in writing. They must also agree in writing to authorize the City to deduct any outstanding balance in a lump sum from their final paycheck if employment with the City is terminated before the total amount of the over-payment is collected. Further, they must agree in writing that in the event that their final paycheck is not enough to cover any outstanding balance, they will pay the City any amounts due in a lump sum on their last day of employment with theCity.

One-Time Payment. In the event that the employee does not agree to have voluntary payroll deductions to reimburse the City, the total amount of the overpayment, once it has been calculated by the City, will become immediately due and payable in full. The City will then invoice the employee under its standard accounts receivable process. In seeking recovery ofthe overpayment, the City will use its full range of collection options, including court action, to ensure that the City is fully reimbursed for the overpayment.

No Interest on Overpayments. The City will not charge interest on overpayments, either for the period of time that the overpayment occurred, or for the period of time over which installment payments will be deducted.
631-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 631-B-Timecard Approval Authority

OVERVIEW
The City provides significant discretion to department heads in approving timecards. The purpose of this policy is to provide organization-wide guidance to department heads in delegating timecard approval authority.

POLICY
Authorized Employees
Department heads should only delegate timecard approval to the following City staff members:
□ Division managers
□ Program managers and supervisors
Department heads should limit timecard approval authority to those areas where the employee is knowledgeable about the transaction and is able to attest to the accuracy of the hours worked.

Further, the timecard approval should be consistent with the employee's overall scope of duties and responsibilities.
631-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 635-Purchase & Payment Approval Authority

OVERVIEW
The City provides significant discretion to department heads in approving payments, and in delegating this authority to others in their department. The purpose of this policy is to provide organization-wide guidance to department heads in delegating purchase and payment approval authority.

POLICY
Authorized Employees
All purchases $30,000 or more require a formal bid and City Council approval, unless All purchases of $15,000 to $29,999 will require informal bids, City Manager approval. If the City Manager is unavailable, then the Finance Director may sign in his place, but must notify the City Council at the next scheduled meeting.

All purchases between the amounts of $5,000 to $14,999 will require informal bids, City Manager approval or Finance Director approval, and the approval of the Department Director or Division Supervisor.

All purchases between the amounts of $4,000 to $4,999 will require Finance Director approval and the approval of the Department Director or Division Supervisor.

All purchases between the amounts of $1,000 to $3,999 will require the approval of the Department Director or Division Supervisor or Finance Director.

All purchases between the amounts of $500 to $999 will require the approval of the Department Director or Division Supervisor.

All items up to the amount of $499 will require the approval of the Department Director or Division Supervisor.

Department heads should only delegate purchase and payment approval to the following City staff members:
□ Division managers
□ Program managers and supervisors
□ Formally designated department fiscal officers
Department heads may delegate approval to other staff members, but this requires City Manager approval.
635-1
Department heads should limit purchase and payment approval authority to those areas where

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) the employee is knowledgeable about the transaction and is accountable for the use of City funds. Further, the purchase or payment approval amount should be consistent with the employee's overall scope of duties and responsibilities.

Written Delegation of Authority
All approval authorizations by the Department Head will be in writing and filed with Accounting.

In addition to identifying the employee and her or his position, the authorization will also identify any program account number and amountlimitations.

ATTACHMENT
Sample Approval Authorization Form is below.
635-2

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Department Department Head Approval Date
Public Works Julia Hernandez 2-15-17
Employee Name Signature As You Sign Approvals Program Acct No’s Dollar Limit (If Any) City Manager Approval (If Required) James Logan All None
Roy Hashimoto 50300, 50310,
50320, 50330,
None
Sara Elspeth 50200, 50220 None
Jane Gonzales All None
Ann Salinas 50200 None
Mary Ann Smith 50600 To $5,000 Naomi Stein
Bill Mifune 50700 To $1,000
635-3
Sample

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Section 650-Disaster Response Accounting Procedures
650-1

OVERVIEW
From the moment the State or the City declares a “state of emergency” in the event of natural disasters, technological incidents or national security emergencies, special accounting procedures are implemented. In order to ensure maximum cost reimbursement from the Federal Emergency Management Agency (FEMA) or the State Office of Emergency Services (OES), expenditure information must be captured in a format approved by these agencies. Disaster- related activities must be accounted for separately from normal activities and captured by damaged site orDamage Survey Report (DSR). Each damaged site has the potential to generate one or more DSR’s.

Therefore, accounting for activity by location is essential.

The types of cost activities that must be captured include:
• Staff labor hours (regular and overtime) by location and description of work performed.

Only overtime and related benefits are reimbursable for sworn personnel. • Equipment hours and cost of rented equipment, by location. • Cost of materials used and purchased, by location.
• Equipment damaged or destroyed and the cost to repair or replace it, by location. • Vendor services or materials acquired under purchase orders, contracts, or pre-existing agreements, by location where the services or materials were used. • Contracted construction services and costs by site.
• Cost of consultant services and specific purpose of work performed.

POLICIES
It is the City’s policy to:
• Identify the costs of responding to emergencies and recovery from disasters as accurately as possible.
• Receive maximum allowable reimbursement for eligible emergency response and disaster recovery costs.

ROLES AND RESPONSIBILITIES
• Operating Departments. The primary responsibilities for initiating expenditures and identifying and maintaining cost information rest with the operating departments.Procedures for doing so are outlined below.
• Finance. The Finance Department is responsible for establishing cost accounting procedures, coordinating the collection of cost information and preparing this information in a format acceptable for reimbursement by state

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-2
and federal agencies. On an as-needed basis, Finance will conduct briefings with key staff on emergency response and disaster recovery accounting procedures.

PROCEDURES
Account Number
The City has established program number 238-054 (Emergency Services) to account for all disasterrelated expenditures. The normal fund/object/sub-object numbers should be used.

Form Preparation
The following forms should be prepared by the operating departments and submitted to Finance in order to maintain sufficient documentation for cost recovery:

A. Emergency Services Individual Time Sheet Supplement. In addition to our regular time sheet, each non-sworn employee working during emergency operations must complete a time sheet supplement that details the location and description of the work done related to the emergency (sworn overtime hours will be captured from the City’s regular timecards). Regular and overtime hours must be recorded separately. Each supervisor is responsible for accurately reviewing, completing and approving the time sheet supplement. The information from the supplements will be compiled by Finance & IT in the format required by FEMA. The location and description sections are very important to ensure reimbursement.

All overtime (sworn or non-sworn) should be charged to program account 238-054 on timesheets. Additionally, regular hours incurred by temporary employees should also be charged to program account 238-054.

B. Force Account Equipment Record. This form was designed by OES and is required for reimbursement for the use of City-owned equipment. A separate form should be completed for each specific location where City-owned equipment was used. Operating departments are responsible for providing the following information on each form:
• Location of work • Description of work
• Timeperiod • Prepared by
• Date prepared • Type of equipment
• Cityequipmentreferencenumber • Date and hours used
Finance & IT will complete the rate and cost sections along with assigned FEMA/OES reference, DSR, job site and category numbers.

C. Rented Equipment Record. This form was also designed by OES and is required for reimbursement of rental equipment costs. A separate form should be completed for each specific location where rented equipment was used. Operating departments are responsible for completing this form with the exception of OES and FEMA reference, DSR, category and job site numbers, which will be completed by Finance & IT. Additionally, Finance & IT will verify pricing from accounts payable records.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-3
D. Materials Record. This form maintains a record of materials and supplies purchased by the location where they were used. Operating departments are responsible for completing this form with the exception of OES and FEMA reference, DSR, category and job site numbers.

Additionally, Finance & IT will verify the pricing from accounts payable records.

Avoid paying for supplies or services with petty cash; most vendors, especially those that the City uses on a regular basis will extend their normal order and payment terms to the City. Use an emergency purchase order (see below) for those vendors who won't extend credit at the time of purchase. The Multi-Hazard Emergency Response Plan, Part 3, lists vendors with whom the City has emergency purchasing agreements. If cash is required beyond amounts readily available from departmental petty cash balances, contact Finance & IT for assistance.

E. Emergency Purchase Order. Finance & IT has a supply of emergency purchase orders that can be used when a vendor is reluctant to extend payment for emergency purchases without formal, written authorization. Each fiscal officer is assigned a limited supply of emergency purchase orders for use by their department, if required. Additional supplies of emergency order forms are available at the Emergency Operation Centers (Police Station and Corporation Yard) as well as the Headquarters Fire Station and Finance & IT.

Payment Processing
To the maximum extent feasible, the City's normal payment processing procedures should be followed. This means that vendor invoices for ordered supplies, materials, equipment, rentals and services should be sent to the operating department and a voucher prepared for payment accordingly. It is important that the vouchers:
• Use program account 238-054 and the appropriate fund and object/sub-object code.
• Describe the purpose of the purchase.*
• Identify the location where the purchase items orservices were used.*

EXHIBITS
A. Emergency Services Individual Timesheet Supplement
B. Force Account Equipment Record
C. Equipment Rental Record
D. Materials Record
E. Emergency Purchase Order
* This information can be
annotated on the invoice or
described in the voucher
as appropriate. This is
especially important for
services, as the accounts
payable documentation will
be our sole support for
those costs.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-4
Emergency Services Individual Timesheet Supplement CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-5
Force Account Equipment Record

CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-6
Equipment Rental Record

CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-7

CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-8
Materials Record

CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Disaster Response Accounting Procedures
650-9
Emergency Purchase Order

CITY OF ARVIN

EMERGENCY PURCHASE ORDER

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 670-Construction Security Deposits
670-1

OVERVIEW
It is customary to require members of the public to furnish security deposits to guarantee the performance of acts or agreements related to private construction projects.

Since January 1, 1986, the City has been required to pay interest on all cash deposits for security purposes that are banked or invested (Government Section Code 53079). The statutory formula for computing interest due is complicated and additional effort is required to ensure these deposits are properly managed and controlled. Accordingly, City staff determined that the public could be better served by eliminating the use of cash or cash-like deposits as security to guarantee work or services and to develop policies and procedures to allow non-cash security deposits.

The following policies and procedures have been prepared in order to provide guidance on the administration of construction security deposits for private projects. (Policies and procedures for City construction projects are not addressed in this section).

POLICY
A. No cash or cash equivalent deposits (such as personal or cashier checks) will be accepted as security when required to guarantee the performance of any act or agreement related to a private construction project.

B. The following forms of guarantee are acceptable security deposits:

1. Certificates of deposit (any amount)

2. Letters of credit (any amount)

3. Promissory notes (less than $1,000 under conditions provided in this policy)

4. Unconditional guarantees or notes issued by certain institutions (any amount) It is the City's preference not to use performance bonds as security deposits. However, if an applicant cannot provide a letter of credit or certificate of deposit, this form of security may be considered at the sole discretion of the City Manager.

C. The guarantee form provided in Exhibit A must accompany all certificates of deposit, letters of credit and promissory notes.

1. Guarantees will not be accepted for amounts less than $100, and all guarantees shall be rounded to the nearest $100.

2. Guarantees for letters of credit will expire no sooner than 90 days before the expiration date of the letter of credit. (Promissory notes and certificates of deposit do notexpire.)

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-2
D. Security deposits must meet the following standards to beacceptable:

1. Certificates of Deposit (must be accompanied by guarantee form) Certificates must be made out on a form that clearly identifies the Payer bank and an unconditional promise to pay the City of Arvin.

2. Letters of Credit (must be accompanied by guarantee form) Irrevocable letters of credit will only be accepted when issued by a Federal or State chartered bank or savings and loan institution. The City reserves the right to qualify any institution based upon the current financial position of that institution. Irrevocable letters of credit for general purposes must appear in substantially the same form as provided in Exhibit B.1. An irrevocable letter of credit for subdivisions must appear in substantially the same form as Exhibit B.2 to comply with the requirements of the Subdivision Map Act. As a minimum, this means that the letter of credit must indicate:
a. By its title, it is irrevocable.
b. City of Arvin must be the beneficiary.
c. Entire sum is available to the City upon written demand. d. Letter is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code.
e. The timeframe should be based on a reasonable period for completion of the work scope and must remain valid for at least one year from its issue date. f. No mention of the project or work that is being guaranteed may appear in theletter.

3. Promissory Notes (must be accompanied by guarantee form) Promissory notes are acceptable only for deposits of $1,000 or less. The promissory note must be prepared in the format shown in Exhibit C. Acceptance of a promissory note is not required; the responsible department may refuse the depositor's promissory note under the following circumstances:
a. Within the past 12 months, the depositor has given the City a check that was subsequently dishonored.
b. Within the past 24 months, the depositor has failed to complete a construction project for which security was given.
c. The department involved has verified that a stop notice or mechanics lien has been filed against the depositor, and has developed into a civil suit filed in a Superior Court within the State of California.
d. The depositor has a primary business or home address outside the County of Kern.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-3
All promissory notes signed by a corporate officer on behalf of the corporation shall also be signed by the same individual as a guarantor of the note.

4. Unconditional Guarantees or Notes Issued by Certain Institutions The instruments listed above are issued by bonding companies or financial institutions and may be accepted if they include an unconditional promise to pay upon demand to the City the sum of the deposit. All such instruments shall be reviewed by the City Attorney before acceptance.

As noted above, it is the City's preference not to use this form of security, but it may be considered depending upon the circumstances of the work to be performed and our prior experience with the applicant and the issuing institution. Acceptance of this form of guarantee is at the sole discretion of the department.

E. The following types of security shall not be acceptable:

1. Passbooks purporting to pledge a savings account.

2. Any document, otherwise acceptable, which makes the City and the depositor joint tenants or co-owners of payment rights.

3. Any document, otherwise acceptable, which requires that the City first establish, as a condition to collection, that the depositor has failed to satisfactorily complete the act or work guaranteed.

4. Cash.

5. Personal checks or cashier checks.

PROCEDURES
Responsible departments will ensure the following procedures are used in processing guarantees for certificates of deposit, letters of credit and promissory notes:

A. Certificates of Deposit (Any Dollar Amount)

1. Certificates of deposit will be made in the name of the City of Arvin only. Be sure there is an automatic renewal. They cannot expire.

2. A guarantee form will be completed with the pink copy attached to the certificate of deposit (Exhibit A).

3. Original certificates of deposit and the pink copy of the guarantee form will be held by the Department in a locked file cabinet or other secure location. The department may make additional copies for internal purposes, but they must be clearly marked“copy.”

4. The yellow copy of the guarantee will be given to the applicant. The original or white copy of the guarantee is a file copy.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-4

5. The responsible Department will prepare a notification letter approximately two weeks to one month prior to scheduled completion of the work, notifying the guarantor of the work requirements (Exhibit D).

6. If the guarantor does not complete requirements, a copy of the notification letter will be sent to the City Attorney for further action.

7. When the guarantor completes all work as required, the responsible department will release the certificate of deposit to the guarantor. The back of the certificate of deposit should be endorsed back to the guarantor in the following manner:

Pay to the order of (guarantor's name)
On behalf of the City of Arvin
By: (authorized staff)
(staff's title)
B. Letters of Credit (Any Dollar Amount)

1. Letters of credit must be in the approved format (Exhibit B.1 or B.2 depending on if letter of credit is for general purposes or for subdivisions).

2. Processing is the same as certificates of deposit for items 2 through 6 as describedabove.

3. When the guarantor completes all work as required, the responsible department will release the letter of credit to the guarantor. No endorsement isrequired.

C. Promissory Notes ($100 to $1,000)

1. Promissory notes (Exhibit C) must be signed by the property owner. If the property owner is a corporation or partnership, the note must be signed by an official of the organization named. The note should be witnessed by a City official; however, when this is not possible, notes must be notarized.

2. Other processing requirements are the same as letters of credit.

EXHIBITS
A. Guarantee Form
B. Sample Irrevocable Letter of Credit

1. General Purposes

2. Subdivisions
C. Promissory Note Form
D. Sample Reminder letter to Guarantor to Complete Work E. Sample Release of Guarantee

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-5
ExhibitA

GUARANTEE TO THE CITY OF ARVIN

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-6
(Bank letterhead) Exhibit B-1

LAST BANK OF ARVIN
August 25, 1990 Reference Number (if any)

IRREVOCABLE LETTER OF CREDIT
Last Bank of Arvin, being a financial institution, which is subject to regulation by the State of California or by the federal government, as insurer of the Irrevocable Letter of Credit, on behalf of its customer, XYZ Enterprises, hereby establishes this Letter of Credit in favor of the below named beneficiary:

THE CITY OF ARVIN
in the amount of Twenty Thousand and No/100 Dollars ($20,000) payable upon written notice from the beneficiary through its Director of Finance & Information Technology that the entire sum, or a portion thereof is due.

This Credit is available in portions at the discretion of the beneficiary. This Credit is nontransferable and non-assignable. This Letter of Credit is issued in accordance with and shall be interpreted in accordance with Division 5 of the California Commercial Code (Section 5101, et seq.) and the rights of all parties shall be governed hereby.

This Credit will expire at midnight on March 1, 1992. Demands for payment received after this date will not be honored and will be considered null and void.

Dated this 25th day of August 1990 at Arvin, California. LAST BANK

OF ARVIN
BY:

Corporate Officer

XYZ ENTERPRISES
BY:

General Partner

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-7
Exhibit B-2
The undersigned agrees that said funds are trust funds on deposit and guaranteed for payment and that upon receipt of written demand, signed by the City Engineer of the City of Arvin, the undersigned shall immediately pay said funds or such amount thereof as shall be set forth in said demand, to the Finance Director of the City of Arvin to be used for the purpose set forth above.

City of Arvin
200 Campus Dr.

Arvin, CA 93203

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-8
ExhibitB-2
Dated at Arvin, California, this day of , 20,
Bank of America
Arvin, CA
Dated at Arvin, California, this day of , 20,

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-9
ExhibitC
Issued to:

The City of Arvin, Payee
(hereafter “City”)
by

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-10
Exhibit D

CITY LETTERHEAD
October 27, 1990
XYZ Enterprises
120 North Street
Cambria, CA 93444
SUBJECT: COMPLETION OF IMPROVEMENTS
Dear Mr. Smith:

On August 25, 1990, you agreed to complete the installation of landscaping at 1234 Restful Drive within 90 days. This time period expires November 23, 1990. If the work has not been completed by this date, we will refer this to the City Attorney for action to collect on your [Certificate of Deposit or Letter ofCredit].

If the landscaping has been installed, please contact Mary Smith at 781-7170 so that she may inspect the property to verify that the work has been completed as required. After verification, we will release your [Certificate of Deposit or Letter of Credit].

Sincerely,
Joe Doe
Public Works cc:

Mary Smith

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Construction Security Deposits
670-11

CITY LETTERHEAD
Exhibit E
November 5, 199X
XYZ Enterprises
120 North Street
Cambria, CA 93444
SUBJECT: RELEASE OF GUARANTEE AND SECURITY
The improvements required at 1234 Restful Drive have been completed and accepted by the City.

Accordingly, the release of your Certificate of Deposit in the amount of $20,000 is hereby authorized for release.

Please contact Mary Smith, at 781-7170 to arrange for the return of your Certificate of Deposit.If we do not hear from you within the next ten days, we will simply mail the Certificate of Deposit to you.

Sincerely,
Joe Doe
Public Works
cc: Mary Smith, Project Manager

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 701-1
Section 701-Admin Policies – Financial Operations
The purpose of thissectionis to provide key excerpts of existing administrative policies and procedures that affect the City's financial operations.

Areas currently covered include:
□ Mail processing guidelines (Section 715)
□ Copying management policies (Section725)
□ City Manager Report preparation (Section735)
□ Grant management policy adopted by the Council on August 16, 1994 (Resolution No.8322) (Section 740)
□ Employee use of City property (Section750)
□ Donation policy (Sections760)
□ PEG access funds policy (Section770)

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Manager Report Preparation
701-2

OVERVIEW
The purpose of these guidelines is to set forth standards, responsibilities and procedures for processing postal service mail.

RESPONSIBILITIES
In-House Mail Processing
□ The Police Department is responsible for in-house processing of postal service mail at the Police Station.
□ The City Clerk is responsible for in-house postal service mail for all other departments. □ Departments are responsible for dropping-off and picking-up postal service mail at CityHall.

ACCOUNTING FOR MAILING COSTS
◼ In-House Mail Processing. The Support Services budget managed by the City Clerk is responsible for all general postage costs for normal services. The cost for any “very large” mailings that should otherwise be processed through USPS will be charged to the initiating department. (Note:

As discussed above, any mailings of 100 pieces or more require prior arrangements with the City Clerk.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Manager Report Preparation
725-1
Section 725-Copies - Policy

OVERVIEW
This policy addresses the City of Arvin’s document reproduction program, both in- house and offsite. The purpose of the policy is to ensure that documents are reproduced in an efficient and effective manner. The policy will take effect upon approval of the City Manager and will be reviewed whenever the off-site copy contract is renewed. The policy will be administered by the Department of Finance & Information Technology (IT).

POLICY
A. In-House Copying Volume Guidelines
Generally, it can be more cost effective to send copying services to off-site copying services.

Therefore, copying of documents requiring 10 or more copies of a single sheet and not needing the copies for 6 to 24 hours, should be sent out. Labor, equipment and maintenance factors make this more economical and efficient. For immediate copying needs, the City will provide for a least three operational levels of walk-up copiers for use within individual department and divisions as set forth below:

Large Copiers 50 copies or under
Medium Copiers 30 copies or under
Small Copiers 10 copies or under
B. Acquisition of In-House Copiers

1. Funding for all copier acquisitions will come from either Capital Improvement Plan or the Support Services operating program, consistent with Financial Planpolicies.

2. During the analysis of copier needs and bid evaluations, cost will only be one factor among many to be considered.

3. The choice of lease, rent, lease/purchase or purchase will be used for each copier acquisition as best benefits the City in each situation.

4. The Department of Finance & IT will establish and administer a replacement cycle policy for all copiers.

C. Standard Specifications forCopiers
There are four levels of copiers which will be considered for use by the City. At the time that need for a new copier is established, an analysis of the specific user requirements will be done to determine which category is appropriate. The levels are:

1. Very High-Speed Volume. Target use: centralized copy services for Citywide copying. Target volume per month: 50,000 copies and up. As long as the City makes extensive use of off-site copying, it is unlikely that there will be an on- site need for this level of copier.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Manager Report Preparation
725-2

2. High Speed Volume. Target use: central copy site for large number of users; multiple divisions and department; high volume and quick turnaround time needs. Target City volume per month: 25,000 to 50,000 copies. Industry rating: 50,000 copies/month.

3. Medium Volume. Target use: divisional or isolated site main copier. Target City volume per month: 5,000 to 25,000 copies. Industry rating: 30,000 copies/month.

4. Low Volume. Target use: secondary copier in department or site with high demand for more than one copier, or an isolated site with the need for very simple single sheet copying. Target City volume per month: up to 5,000 copies. Industry rating: 10,000 copies/month.

D. Management and Operation of In-House Copiers

1. Management. The City Clerk will manage the City's on-site copy equipment. This includes developing copier policies, receiving new copier requests, coordinating the analysis and procurement of any and all copiers, coordinating trouble calls, managing maintenance agreements, monitoring copier usage and coordinating key operators.

2. Maintenance. All copiers owned, leased, or rented by the City will be covered by a third-party maintenance agreement provided by a vendor certified to work on the specific machine's brand.

3. Operation. Each copier will have at least one “key operator” appointed by the Department Head of the department, division, or site, who is the main user of the equipment. The key operator will be thoroughly trained in the use and routine maintenance of the copier, and will be responsible for:
a. Performing routine weekly maintenance and cleaning.
b. Serving as the user’s main contact for problems encountered with the equipment. c. Calling the maintenance vendor for service when problems are encountered. d. Informing the Department of Finance & IT of severe or repetitive equipment problems.

4. Supplies. The City Manager will designate a department responsible for bulk ordering of consumable supplies such as paper and toner. ALL copier sites will use supplies ordered by this department. Each site’s key operator will be responsible for arranging delivery of supplies to their copier.

E. Management of Off-Site Copy Contract
The City Clerk will be responsible for implementing and administering the off-site copy contract.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Manager Report Preparation
735-1
Section 735-City Staff Report Preparation

OVERVIEW
The City Staff Report format and review process should be used whenever this level of approval is required to authorize an administrative decision or action with significant management or policy implications. Examples include approving bid or request for proposal (RFP) documents, awarding contracts and purchase orders, and approving other policy items such as department organization changes, position reclassifications, filling vacant positions if a “hiring freeze” is in effect and budget amendment requests if they require City Managerapproval.

CITY STAFF REPORT PROCESS
Attached is a sample City Staff Report, which should accompany all:
• Clearly identify reports or documents requiring the City Council’sapproval. • Summarize key information regarding the request.
• Ensure that any required supporting documentation is provided. • Facilitate report review and routing.
• Reduce report preparation efforts.

As discussed below, completing this form may be the only “report” preparation required in many circumstances.

Form Overview
This one-page form has the City logo and is addressed to the City Council. Since it is a simple one-page document that uses standard bond paper, copies can be easily made by the department.

Preparation and Processing Guidelines
Completing this form is largely self-explanatory. The following highlights key concepts in the City Manager Report process.
• Although the City Staff Report should be used for significant policy approvals by the City Council, its largest use is in conjunction with the City’s formal bid or RFP process. • Initiating departments are responsible for using good judgment in determining when review and coordination are necessary.
• Reviews of the report are made by the Finance Director, the City Attorney, the City Clerk and the City Manager before it can be placed on the Council Agenda. • Administration is responsible for distributing reports as appropriate after they are approved.

CITY STAFF REPORT FORMAT AND CONTENTS
Format

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Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) City Manager Report Preparation
735-2
See the attached example for the format used in order to present a consistent format for the City Council.

Contents
Whenever a formal City Manager Report is required, it should include the same information organized in the same manner as Council Agenda Reports summarized as follows:
• Subject
• Background/Discussion (with appropriate sub-headings if necessary) • Report-in-Brief (if the report is over five pageslong) • Alternatives (when appropriate)
• Fiscal Impact
• Recommendation
No approving signature lines are required.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Sample City Staff Report
735-3

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 740-1
Section 740-Grant Management

OVERVIEW
With state takeaways and continued decreases in key General Fund revenues, grant revenues have become an even more important part of the City’s overall resource picture, especially in funding capital improvements. Although grant programs themselves are being reduced and becoming more competitive, actively seeking out grant revenues that assist in achieving identified City goals and objectives should nonetheless play a key role in the City’s overall financial health strategies.

The purpose of this policy is to set forth an overall framework for guiding the City’s use and management of grant resources.

In addition to the goals, general concepts and framework. Topics listed immediately below, the City adopts and will follow the model Grant Management - Grant Funding and Compliance Policy.(included as an attachment “A” at the end of section 740) when applying for and requesting reimbursements for any grants funded by Caltrans.

GOALS

1. Set forth the importance of grant programs in accomplishing City goals and objectives.

2. Establish general concepts and framework for seeking and managing grant programs.

3. Identify roles and responsibilities in managing grant programs.

4. Establish criteria for evaluating the benefits and costs of grant programs.

5. Set forth the City’s policy in complying with Single Audit Act requirements.

GENERAL CONCEPTS AND FRAMEWORK

1. The City will aggressively pursue grant funding from federal, state and othersources, consistent with identified City goals and objectives.

2. Aside from entitlement grants, the City should focus its efforts on securing grants for capital improvements. This approach will allow the City to compete for projects we might not otherwise be able to afford while maintaining financial independence should future grant sources diminish. Grants for operating purposes may be considered on a case-by-case basis after careful consideration of the benefits of the program and the ongoing impacts on the City if grant funding is no longer available.

3. The City will only seek grants when sufficient staff resources are available to effectively administer the program in compliance with grant requirements and successfully perform the grant work scope.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-2

4. Indirect costs of administering grant programs will be recovered to the maximum extent feasible.

5. Operating departments have the primary responsibility for seeking out grant opportunities, for preparing effective grant applications and for successfully managing grant programs after they have been awarded.

6. Operating departments should develop a simple system that tracks grant funding availability in their functional areas. Using this system, all capital improvement plan budget requests will evaluate and document the ability of grants to assist in funding the project. a. The methods of payment should be clearly defined in each proposal. (Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.c.)

ROLES AND RESPONSIBILITIES
City Council

1. Approves grant management policies.

2. Approves all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager if delegation is allowed by the grantoragency.

City Manager

1. Receives grants and executes related contract documents when delegated to do so by the Council.

2. Develops, recommends and maintains grant management policies.

Operating Departments

1. Develop systems for maintaining ongoing information regarding grant availability within their functional areas of responsibility.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-3
e. Amount of indirect costs to be recovered from the grant, f. Total program costs, including portion funded through grant revenues and any required City contribution.
g. Source of funding for any required City share.
h. Compliance and audit requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. (1) Ensure that the successful bidder of a federal grant funded project is not under suspension and/or debarment. This is done by going to the SAM website and verifying that the bidder is NOT under suspension or debarment. Print out such proof and maintain it in grant file.
(added as a result of Federal Single Audit finding 2017-007)

3. Prepare grant applications.
a. Work with the grantor agency in identifying special program requirements and developing strategies for preparing a successful grant application. b. Complete grant application documents.
c. Coordinate with affected departments as necessary.
d. For grants in excess of $5,000, prepare a Council agenda report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis. e. For grants of $5,000 or less, submit the grant application, subject to the following conditions:
• It will not add regularstaffing.
• Any matching funds or in-kind contributions are already available within existing resources, and no additional appropriation of unreserved, undesignated fund balance or working capital is required.
• At the conclusion of the grant, there will be no ongoing commitments or obligations to continue the program.
• The purpose of the grant program is clearly consistent with current City plans, policies and goals.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-4
b. For grants of $5,000 or less, execute and return grant documents to grantor agency. c. Notify affected departments of grant award.

The affected department shall:

1. Clearly define the contract dollar thresholds for each contract / project.

2. Develop a Project Schedule to include Project Costs, Task Order Dollar Thresholds, and Reporting Requirements to ensure that deliverables are met.

3. Require the contractor to develop a fee schedule to identify the components of loaded costs (a lump sum or hourly rate) in the consultant’s proposal.
(Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a., b., d., and e.) d. Maintain financial and other records in accordance with grant requirements. e. Complete and submit required reports, including requests for funds.

1. Work with other departments to Ensure that Reporting Requirements of the grant are met. (Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a.) f. Monitor grant expenditures and receipt of revenues.

1. Review contractor invoices / expenditures to ensure that Project Costs and Task Order Dollar Thresholds are being adhered to.

2. Review contractor invoices to ensure that the agreed upon labor rates that are reimbursed are in accordance with the executed contract.
(Per Caltrans CAP Letter to the city dated April 17, 2020 item 7.a., d., and f.) g. Coordinate on-site management reviews by the grantor agency during the grantterm. h. Ensure compliance with grant requirements, paying special attention to those areas where the grantor’s administrative procedures are different than the City’s. i. Perform the grant work scope.

5. Complete grant closeout.
a. Complete the grant work scope.
b. Notify affected departments that the project is completed and schedule a “close-out” meeting if necessary to resolve any final procedural issues. (1) Within 90 days of last expenditure of grant funds, ensure that a final invoice is submitted to the grantor for payment.

Finance Director to verify this process happens.
(added as result of Federal Single Audit finding 2017-007) c. Ensure final receipt of grant revenues.
d. Prepare and submit any required grant close-out documents. e. Review grant file for completeness.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-5
f. Retain all necessary program and financial records for the period of time required by grantor agency.
(1) The finance department will
meet on a quarterly basis to review
the current schedule of grant
revenue and expenses. Such
schedule is the joint responsibility of
the Accountant and the Grant Writer.

This meeting will serve as
verification that all Federal award
grants are identified and will be
included on the annual “Schedule of
Expenditures of Federal Awards
(added as a result of Federal Single Audit finding 2017-006) g. Coordinate any on-site management reviews or audits after the grant is completed. h. Resolve any audit findings.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-6
i. Ensure that the City’s policy regarding single audit act requirements is implemented as discussed below.

Department of Finance & Information Technology

1. Provides technical assistance to operating departments in preparing grant applications, submitting reports and maintaining records.

2. Coordinates preparation and distribution of single audit reports.

Other Departments
Provide assistance to the managing department as identified during the grant application and award process.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-7

SINGLE AUDIT ACT REQUIREMENTS
Background
The City is subject to the financial and compliance requirements of the Single Audit Act of 1984, which is applicable to all local and state governments expending more than $500,000 in federal financial assistance during a fiscal year. The purpose of the Act is to:

1. Improve the financial management and accountability of state and local governments with respect to federal financial assistance programs.

2. Establish uniform requirements for audits of federal grants.

3. Promote efficient and effective use of audit resources.

4. Assure that federal departments and agencies rely upon and use audit work performed during a single audit rather than performing the audit work themselves.

Under this Act, federal grants are included under an inclusive single audit program that is incorporated into the City's annual audit and financial report preparation process. During the audit, tests are made to determine the adequacy of the internal control structure, including that portion related to federal financial assistance programs, as well as to determine that the City has complied with applicable laws and regulations.

City’s Policy Regarding the Single Audit Approach
For federal grants included in the scope of the City’s single audit approach, it is the City’s policy that all financial and compliance issues have been met through the single audit, and follow-up audits to determine these issues are not necessary unless specifically related to findings or recommendations included in the single audit report. As noted above, the purpose of the Act is to establish uniform audit requirements, promote efficient use of audit resources, and assure that federal agencies rely upon audit work already completed; its purpose is not to audit local agencies twice. Accordingly, the City will strongly resist any efforts by federal agencies to duplicate audit work already performed in complying with Act requirements. As such, whenever federal grantor agencies request final audits, the managing department should notify the Department of Finance in order to ensure a consistent response to these types ofrequests.

ATTACHMENT
Grant Summary Form

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Grant Management Policy
740-8

GRANT SUMMARY FORM
This form is available on the City’s Intranet.

City of Arvin GRANT PROGRAM

SUMMARY

GENERAL INFORMATION
Grant Title Grant No.

General Description of Grant Work scope
Granting Agency Agency Contact Phone No.

Responsible Department Department Contact Extension No.

Council Approval Date Application Date Award Date Est'd Completion Date

GRANT COST AND REVENUE SUMMARY
Program Cost Summary Total Grant Portion
Staffing
Contract Services
Supplies & Other Operating Expenditures
Capital Outlay
Indirect Costs @ % of Direct Costs
TOTAL GRANT COSTS AND REVENUES $ $
How Was Grant Portion Determined?
Is a Budget Amendment Request Required? Yes ( ) No ( ) If yes, it should be attached OTHER COMMENTS (note any significant or unusual compliance requirements) Use reverse side if necessary to provide additional information Prepared By Date
This form does not have to be typed - legible handwritten printing is preferred

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 750-Employee Use of City Property
750-1
The City Code of Ethics states that “employees should not use, for private gain or advantage, their City time or the City's facilities, equipment or supplies, nor should they use or attempt to use their position to secure unwarranted privileges or exemptions for themselves orothers.” While personal use of City property is discouraged, if there is an occasion where an employee uses copiers, fax machines or makes personal phone calls, the employee must reimburse the City.

Payment should be made to the cashier at your location. For use of copiers and FAX machines, payment should be made at the time of use; for telephone calls, payment should be made upon receipt of your itemized phone calls that is distributed to you monthly.

As of July 2015, the following rates for reimbursement should be used for both employees and the general public:

Copies $ .50 per copy
FAX $1.00 per page
Phone calls Actual cost of call

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 760-Investment Policy
760-1

INVESTMENT PROCEDURES - SUMMARY
The Director of Finance reviews the City’s cash balances on a daily basis. As necessary, cash is transferred between bank accounts, to and from the state’s Local Agency Investment Fund, or securities are purchased based on established criteria in accordance with City Council Investment Policy of City Funds.

INVESTMENT PROCEDURES - DETAIL

PURPOSE
This statement is intended to provide a guideline for the prudent investment of funds and to outline the policies for maximizing the efficiency of the City of Arvin and its components units (“Entity”) cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled funds. This investment policy has been prepared so as to be in conformance with all pertinent existing laws of the State of California for General Law cities.

OBJECTIVE
The goal of the City’s investment policy is to enable the City to invest funds to enhance the economic status while protecting its pooled cash. The city attempts to obtain a market rate of interest without assuming undue risk to principal. The objective of such investmentsis:
1) Preservation of capital with maintenance of liquidity; and 2) Competitive rate of return.

DELEGATION OF AUTHORITY
The authority of the legislative body to invest or to reinvest funds of the Entity is delegated to the City Finance Director in accordance with State Statutes and Council resolution.

INVESTMENT RESPONSIBILITY /REPORTING
Investments are the responsibility of the City Finance Director. He shall be responsible for reporting the status of investments to the City Council and the City Manager on a quarterly basis. In addition, to be in compliance with the California Government Code, a report will be submitted to City Council not later than thirty (30) days after the end of the quarter which shows the type of investment, institution, cost, par, market value, interest rate, date of maturity, and source of market value for all investments of more than twelve months. The report will contain a certification regarding the compliance of investments with the Entity’s investment policy and disclosure regarding the availability to provide sufficient liquidity to meet six months of estimated expenditures.

PRUDENCE
The standard of prudence to be applied by the City Finance Director shall be the “prudent investor” rule, which states, “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence description and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital, as well as the probable income to be derived.” The prudent investor rule shall be applied in

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) the context of managing the overall portfolio.
760-2

INVESTMENT CRITERIA
Criteria for selecting investments and the order of priority are:

1. SAFETY
The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The City only operates in those investments that are considered secure.

2. LIQUIDITY
This refers to the ability to “cash in” at any moment in time with a minimal chance of losing some portion of principal or interest. Liquidity is an important investment quality especially when the need for unexpected funds occurs occasionally.

3. YIELD
Yield is the potential dollar earnings an investment can provide and sometimes is described as the rate of return.

INVESTMENT INSTRUMENTS
California cities may invest in any instrument allowable under current legislation of the State of California (Government Code Section 53600 et al.) so long as the investment is appropriate when the City’s investment objectives and policies are taken into consideration. Currently, the following investment types have been selected as permissible investments for the Entity:

Max Max
Max % of Invest In
Maturity Portfolio One Issuer
• US Treasury Obligations (bills, Notes and Bonds) 5 Years None None • US Government Agency Securities and Instrumentalities of Government Sponsored Corporations (except inverse floating rate securities and other • derivative products) 5 Years None None
• Banker’s Acceptances 180 40% 30%
• Commercial Paper Rated “Prime-1” by Moody’s and “A-1” or better by S&P 270 Days 25% 10%
• Investment Contracts 30 Years None None
• Time Certificates of Deposits 3 Years None 10%
• Negotiable Certificates of Deposits 5 Years 30% 5%
• Certificates of Deposits 3 Years None 10%
• Repurchase Agreements 92 Days 20% 10%
• Mortgage Pass-Through Securities None None None
• State Bonds or Notes 5 Years None 10%
• Municipal Bonds or Notes None None None
• State Bonds or Notes None None None None
• Money Market Funds N/A 15% 10%
• Local Agency Investment Fund (LAIF) N/A None $50 Million

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 760-3
• Investment Trust of California (Cal Trust) N/A None 10% • Municipal Bonds or Notes None None 10%
• Joint Powers Investment Pool (Cal TRUST) None None 10% • JPA Pool (other investment pools) None None 10%
• CSJVRMA Invest Pool (Chandler) None None 10%

MATURITY LIMITATIONS
Every investment instrument purchased must have a term remaining to maturity of less than five years, unless the investment is for bond proceeds for the reserve fund or funded/capitalized interest fund or the City Council has granted express authority to make that investment either specifically or as part of an investment program approved by the City Council no less than three months prior to the investment. The average maturity of the City’s total portfolio is to be managed so that money is always available when needed.

1. Purpose
This Investment Procedures Manual is intended to document the internal procedures that are used to implement the City’s Investment of Funds.

2. Worksheet
The Director of Finance shall be responsible for maintaining the Excel spreadsheet called Cash & Investments, which calculates the daily book balances of the City’s General Checking Account, and the Investment Portfolio.

The General Checking Account is the operating account where all of the receipts of the City are deposited and all of the accounts payable are disbursed from. This account is also the “parent” account to the specialized “zero balance account” (ZBAs) maintained by the City, which isthe payroll account.

ZBA means that at the end of each banking day the City’s bank automatically transfers all money deposited into a ZBA account to the General Account, and conversely transfers from the General Account to a ZBA account the funds needed to cover all disbursements from a ZBA account.

Therefore, at the end of each banking day, only the General Account has funds in it, and all ZBA accounts have a zero balance.

Every morning, the Finance Director must log on to City’s bank account for the General Account information, as well as lists of all ZBA transfers to/from the General Account. The information from these reports is then entered on Excel spreadsheet for deposits, ZBA transfers, and returned checks.

Wires and other transfers in and out of the General Account (such as revenue from the State or debt service wires) are also verified and entered (if not previously entered). ZBA activity is also entered on a separate spreadsheet also located in the Excel file.

Wires and other transfers in and out of the General or Custody Account, and investment transactions are entered as soon as the information is available.

3. Calendar of Cash and Investment Activity
The Director of Finance is responsible for keeping a calendar of all major scheduled cash and investment activity for the calendar year. An entry is made on each day that has anticipated cash or investment activity, as soon as that activity becomes known, showing the activity description and the

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) amount (if known). The following are the items to be posted on the calendar:
a) Investment purchases, sales, calls, and maturities.
b) Payroll disbursements.
c) Accounts payable check runs.
d) Property tax receipts (including redevelopment tax increment). e) Sales tax receipts.
f) Motor vehicle in-lieu receipts.
g) Highway users tax receipts.
h) Debt service payments.
i) Any other large receipts or disbursements scheduled in advance.

4. Cash Available for Investment
The Director of Finance must review the cash balances and investment portfolio daily to determine how much is available for investment. Items to be reviewed should include:
a) Balance in General Account.
b) Outstanding checks in all accounts.
c) Holds placed by bank on deposits (shown as “float” on daily report from bank). d) Balance in Custody Sweep Account.
e) Balance in Local Agency Investment Fund (LAIF).
f) Cash flow data.
g) Investment purchases, sales, maturities and calls.
h) Current receipts and anticipated large receipts shown on calendar. i) Current disbursements and anticipated large disbursements shown on calendar.

5. Development of Investment Strategies
The City Manager and Director of Finance shall meet periodically to determine the City’s investment strategies. The following factors shall be considered while developing the strategies:
a) City of Arvin’s Investment Policy.
b) Cash flow data, including maturing investments.
c) Yield curve.
d) Current portfolio structure.
e) Market information from various sources.

These factors should be evaluated within the overall context of passive portfolio management, although selective active management may occasionally be utilized.

6. Investment Selection
Information on possible investment types, yields, and maturitiesis obtained by the Director of Finance from various sources, including:
a) Authorized brokers.
b) Business publications.
c) The internet. 760-4

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 760-5
d) Data services, such as Bloomberg.

7. Purchasing an Investment
If purchasing an investment through a broker, the broker must be approved by the Director of Finance, as specified in the City’s Investment Policy. The Director of Finance should be as specific as possible in requesting offerings from brokers. The following must be determined prior to contacting brokers or direct issuers:
a) Settlement—cash, regular (next day), corporate (3 business days) or when-issued if a new issue. b) Amount—either par value or total dollars to be invested. c) Type of security to be purchased, or type to be excluded. d) Targeted maturity, or maturity range.
e) Time limit to show offering—5 minutes, 15 minutes, etc.

The Director of Finance shall select the investment that meets all the criteria of allowed investments as specified in the City’s Policy and that best meets the City’s needs for safety, liquidity, and yield.

After the selection is made, the Director of Finance will advise the successful provider that their offering has been selected for purchase.

After consummation of the transaction, and prior to settlement, the Director of Finance should receive the following by fax or email, if a security is being purchased through abroker:
a) A trade ticket.
b) A Bloomberg security description printout.
c) If the security is callable, a Bloomberg call schedule printout.

If the security is being purchased directly from an issuer (for example, commercial paper purchased directly from the issuing company), a faxed confirmation should be requested from the issuer containing the following information:
a) CUSIP number.
b) Settlement dollar amount.
c) Settlement date.
d) Maturity date.

If the investment is a deposit to or withdrawal from LAIF, a LAIF transaction form must be completed.

The Director of Finance must verify that all written documentation of a trade that the City receives from a broker or direct issuer agrees with the City’s records.

8. Selling or Swapping an Investment
Before a security can be sold (not including withdrawing funds from LAIF or a money market account) or swapped, the reason for the sale or swap should be discussed by the City Manager and the Director of Finance. The City Manager must approve the sale or swap before the transaction occurs.

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) 760-6

9. Settlement & Follow-through
The Director of Finance must enter the transaction information into the investment management software used by the City (currently Excel) and print out a transaction confirmation. LAIF transactions, however, do not require this confirmation. This transaction confirmation must be given to the City’s Accountant for recording.

The Director of Finance must make sure that the funds needed to purchase a security are either already held by the custodian or are wired to the custodian on the settlement date.

The custodian must notify the City Manager or Director of Finance if a trade fails. In this event, the Director of Finance must follow through until all problems are resolved with the trade.

For purchases (excluding LAIF), the Director of Finance must fill out an Investment Purchase Approval form and attach copies of all relevant documents, including trade tickets and Bloomberg security descriptions. For sales (excluding LAIF), the Director of Finance must complete an Investment Sale Approval form and attach any relevant documents. These forms and attachments must be submitted to the Director of Finance for review and signature. In the absence of theDirector of Finance, the City Manager should review and sign the transaction.

All transactions, including LAIF deposits and withdrawals, must also be entered on the Excel Spreadsheet.

10. Monthly Reports & Reconciliations
After each month-end, the Director of Finance must obtain the estimated market value of all securities owned by the City at month-end. The City currently receives month-end statement from each of its investment entities. Any earned interest must be posted to the Fund Balance General Ledger System.

The LAIF average interest rate for the month can be obtained by either calling LAIF or going to the website http://www.Finance Director.ca.gov/pmia-laif/laif.asp. The actual amount of interest posted quarterly to the City’s LAIF account can be obtained from the mailed notice received from LAIF, or by calling LAIF. These interest rates and dollar amounts must be posted to the investment management software. The quarterly interest amount must also be posted to the Excel Spreadsheet.

After all market values, interest amounts received, and interest rates are entered into the investment the spreadsheet, the monthly reports must be run. These reports include:
a) Portfolio Summary
b) Amortization Schedule
c) Accrued Interest
d) Interest Earnings
e) Interest Received
Using the information from these reports, the Director of Finance’s Cash Report for the month is prepared.

A City Council Agenda Report must be prepared for the Director of Finance’s Cash Report, and the

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) entire package must be submitted to the City Manager for review and approval. After approval, the package is sent for inclusion on the consent calendar of the specified City Council meeting.

11. Investment Policy Review
At the beginning of each calendar year, and any other time a change in state law or other circumstances warrant a review and possible change to the City’s Investment Policy, the City Manager and Director of Finance shall discuss possible policy changes. Any suggested changes must be presented to the Investment Advisory Committee if any. The Committee may also recommend additional changes to Policy. After discussion and approval by the Committee, either the City Manager or the Director of Finance shall prepare a City Council Agenda Report listing all changes recommended by the Investment Advisory Committee. This Agenda Report shall be included in the specified City Council meeting.
760-7

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) Section 770-Credit Card Acceptance from Public

OVERVIEW
In April of 2015, the City Manager approved the public use of credit cards to pay amounts due to the City for Permits, Police citations, business licenses and dog licenses. There is no limit to the amount that may be used to pay for amounts due to the City, but any amounts above $3,000 will be charged and additional 2.5% of the charge to cover the merchant service fee being charged to the City.

GOALS

1. Establish positive customer service relationships by using current technology allowing customers to pay their amounts due to theCity.

2. Increase cash flow to the City.
770-1

3.A.3
Attachment: GRANTS MANAGEMENT MANUAL FMM 2023 - City of Arvin_022024 (Financial Policies & Procedures Manual) ATTACHMENT “740
-A”

GRANT MANAGEMENT

GRANT FUNDING AND COMPLIANCE POLICY

3.A.4
Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 2
Table of Contents
Introduction ..................................................................................................................................................3 Section 1: Roles and Responsibilities for Grants.......................................................................................4 Management and Administration.........................................................................................................4 Section 2: Post- Award Processes and Procedures...................................................................................6 Section 3: Implementation of Grant Project.............................................................................................8 Section 4: Project Evaluation ..................................................................................................................15 Section 5: Grant Closeout .......................................................................................................................17 Section 6: Compliance, Audits, and Audit Readiness..............................................................................19 Section 7: Additional Guidance...............................................................................................................21 Department of Transportation (Caltrans) Grants...............................................................................22 Additional Resources for Department of Transportation (Caltrans) Grants.......................................23 Glossary...................................................................................................................................................24 Grants Terminology and Acronyms ....................................................................................................24

3.A.4
Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
Best Practices P a g e | 3
Introduction
Congratulations! Your grant proposal has been selected for award and you are ready to begin implementation of the project.

This handbook provides a foundation for meeting basic grant management requirements and standards to help in effectively managing your grant. The handbook was created to increase project success, while minimizing any problems that may arise. As good stewards of grant resources, grantees are expected to understand and adhere to programmatic, administrative, and fiscal laws, regulations, policies, and procedures to most effectively implement and manage grant projects.

This guide outlines the steps to follow as grant projects are implemented and provides information related to working with the Finance Department and other entities; providing and maintaining proper documentation; preparing financial submissions; ensuring audit readiness; and a variety of other pertinent topics. Remember, Finance is here to support and ensure the success of your project.

It is important to note that activities undertaken in the first few weeks of project implementation are crucial to the overall success of the project. These activities will not only set the tone for your project, but will also impact several important factors such as:
- Will the project be on target to meet the required performance measures? - Will all grant funds be expended during the grant period? - Will the project records and documentation meet audit requirements? Ensure that all project team members are familiar with the grant proposal, the notice of award, the terms of the grant agreement/contract, and the policies and procedures for the City. Being aware of what can and cannot be done, and how best to do it will alleviate potential difficulties in the future.

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Section 1: Roles and Responsibilities for Grants
Management and Administration
During the development, implementation, and management of projects, the primary individual responsible for coordinating with all of these offices is the project manager. This individual is also responsible for facilitating communication about the project, soliciting support from the appropriate departments when needed, and participating in grants compliance meetings with finance staff as needed. The City Manager, or a designee in writing, is the only person who can commit the City to receive and use grant funds.

Finance Department
The finance department provides assistance for externally funded grants for both the City. The finance department support, guide, and advise staff through the full life cycle of grants from pre-award to post-award to closeout.

Pre-Award/Grant Development Responsibilities

1. Assist in budget development.

2. Review the proposal budget.

Post-Award Grant Management and Compliance

1. Review grants for general compliance and oversight.

2. Assist with analyzing, interpreting, and applying Federal, State, and local government statutes, OMB Guidance, CFR, private funders’ requirements, and other regulations for grant administration, and implement related finance processes.

3. Serve as a resource for staff and project managers during the project implementation process to focus on allowable expenditures and the project budget.

4. Monitors the budget for proper use of funds, and ensures compliance with agency requirements regarding purchasing regulations, equipment inventory, and closing documents.

5. Work to coordinate reporting, audit responses, time and effort reporting, and other grant-related financial activities.

6. Provide oversight to facilitate the preparation and submission of reports and documentation required by the funder.

7. Meet with project managers to review financial and performance activities and provides recommendations for adjusting spending, when needed.

Financial Services for Grants

1. Provides post-award administration support for grants, financial reporting, financial record maintenance, time and effort reporting, and preparation of monthly, quarterly, and annual financial reports.

2. Provides cash management support, including preparation of reimbursement requests and drawdown of funds.

3. Ensures that grant funds are expended in compliance with the agency regulations or funder requirements.

Project Manager
The primary individual responsible for the day-to-day management of the grant throughout the grant period is the project manager. Keys to effective and efficient grant management are planning, allowing for time needed to complete requests, addressing issues as early as possible, and maintaining complete, auditable records. The project manager supervises the daily operations of the grant, including:

1. Managing the budget

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a. Responsible for reconciling quarterly budget reports in collaboration with the Grants Office and Budget Office.
b. Monitoring the budget monthly to compare the percentage of time elapsed in the grant period with the percentage of total funds spent to date.

2. Purchasing with grant funds
a. Ensuring purchasing requests adhere to all policies and procedures and to federal, state, or funder requirements.
b. Ensuring grant-funded positions are paid in accordance with the grant requirements and standard payroll practices and processes.

3. Closing out the project and evaluation
a. Preparing final reports for closeout of the grant for submission to the funding agency, typically within 45 to 90 days after the project ends. (Reminder: Not completing and submitting reports timely may have an impact on our future funding.)
b. Ensuring proper closeout has been completed using the Grant Closeout Checklist.

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Section 2: Post- Award Processes and Procedures
Once a grant is awarded, the project should begin operations immediately. Be sure to allow for the needed time to begin working on defining grant activities, establishing timelines for milestones and deliverables, determining the reporting schedule, and understanding how the funds will be used within the guidelines of the funding agency/grantor.

Award Letter and Contract Processing
Funding agencies generally inform the person who is listed on the grant proposal as the lead contact person about a new or continuing grant award. Do not assume that Finance has been informed of the award. Many times, there are time-sensitive actions that need to be taken. Please notify Finance as soon as possible upon receiving an award letter.

Negotiating the Award
In some instances, a program officer from the funding agency may request additional information or clarification on a project or contact the lead contact person to discuss budget adjustments or required revisions. The Finance staff has extensive experience in working with a variety of grant programs, funding agencies, and foundations which will be helpful in the efforts to come to an agreement with the program officer, should you require assistance.

Executing the Grant Contract
Please note that grant contracts may only be signed by a designated individual. Grant contracts are legal agreements between the City and the funding agency or organization that holds the City accountable and responsible for delivering the outcomes set forth in the contract and for managing all grant funds appropriately.

The Project Manager will facilitate the signature process to fully execute the grant contract, typically thru DocuSign.

A fully executed copy of the agreement, along with any supporting documentation, i.e. staff reports, etc. will then be provided to Finance for processing.

Grant Award Kick-Off Grant Meeting
Within two weeks of notice of award, the Project Manager will schedule a grant award kick-off meeting with the administrative, fiscal, and program staff who will be involved in the grant. This meeting is an opportunity for the Project Manager and project team to ask questions and gain clarification on any and all aspects of project implementation.

The Project Manager should become extremely familiar with the grant contract, project timelines and performance objectives, budget, and all requirements referenced in the grant award documents. We do not want to inadvertently fail to comply with grant requirements because we did not take the time to read and understand them. The award documents typically include specific information and the terms and conditions regarding allowable and unallowable costs and activities, reporting requirements, and situations that would require prior approval by the funding agency. - At the kick-off meeting, the following grant project details will be reviewed:
- Specific requirements of the funding agency/organizations - Specific next steps and timelines for project implementation and planned activities - Best practices for establishing a recordkeeping system - Issues, policies, and procedures pertaining to budget, including equipment and supply purchases, contracted services, consultants, and subcontracting, as applicable - Expectations regarding reporting requirements and due dates - Any other issues of concern

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Starting the Grant File
The official master grant file is maintained by Project Manager. This file should include all administrative documents associated with applying for, administration of, and closeout of the grant contract as well as any documents necessary for recordkeeping and audit purposes. A duplicate working grant file will be maintained by Finance.

For each new grant funded project, an electronic and hard-copy file will be maintained that includes the following documentation:
- Original Notice of Funding Opportunity or Request for Proposals - Program regulations and guidelines
- Original proposal submission documents
- Final revised proposal and budget, if amended
- Original, fully-executed award documents and amendments or approvals - Memorandum of Understanding with partners, if applicable - In-kind, matching, and cost-sharing commitments included in budget - Project timeline, implementation timeline, or work plan from original proposal - Grant correspondence with the funding agency
- Sub-grantee monitoring reports and other sub-grantee records, if applicable - Participant files
- Audit reports
- Program monitoring and evaluation reports
- Progress and financial reports
- Close-out documents
Finance will maintain the following documentation for grant files:
- Invoices and copies of receipts for purchases made with grant funds - Time reporting documents

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Section 3: Implementation of Grant Project
Applying Best Practices
The implementation phase is the longest phase of the grant lifecycle. By now, the Project Manager and team has reviewed the approved activities, timelines, budget, and evaluation plan. This section provides best practices for managing the various aspects of project implementation.

Remember to:
Verify that all grant project files are current and complete Review budget status
Review allowable expenses before making a purchase or charging other expenses Review financial and progress report deadline and complete reports on time Note: Progress and narrative reports are due to the Grants Office a minimum of five (5) days before the due date.

Establishing the Budget
Institutional Grants
Upon receipt of the notice of award, fully executed contract, and project budget, Finance will set up the project’s internal budget account based on the approved budget. This account will be used for any project-related purchases, grant personnel costs, and/or fund transfers. Most funding agencies use electronic wire transfers to credit grant accounts. This system will be set up by Finance as defined in the award documents.

Once the budget is established, Finance will review the fiscal management process with the Project Manager. The Project Manager should be very familiar with the budget, cost categories, and amount in each budget line, as approved by the funding agency. The Project Manager is responsible for initiating and approving all direct charges to the project’s budget.

Note: If the Project Manager should receive a check payable to the City directly from the funder, it should be immediately delivered to Finance.

Managing the Budget
Note: It is imperative that all grant funds are spent timely and prudently. Grant budget reports must be consistent with the project progress or narrative reports. If issues with project implementation arise that will impact the project budget, please contact Finance as soon as possible and well in advance of report due dates.

As the project progresses, communicate periodically with Finance to:
- Review the grant’s financial status
- Receive help in interpreting budget reports
- Address questions about fiscal management
- Receive assistance with payroll procedures and forms for grant-funded personnel - Prepare financial reports for grant billings/draw down Budget Line Items
Finance will set up the grant budget in the accounting system. Funds will be allocated to accounts and budget line items in accordance with the approved budget. Common grant budget lines include:
- Personnel - Salary and wages paid to employees working part or full time on program-related tasks for the grant (i.e. curriculum development, program implementation, training, etc.).

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- Benefits - Medical, dental, life insurance, and other fringe benefits related to staff working on grant programs. Professional development benefits are also included for personnel assigned to the grant fund. - Travel & Meetings - Includes mileage, transportation, meals, and accommodations for staff attending meetings or training for program-related work. Conference registration fees are included in this category. - Supplies - Supplies are those items with a cost of less than $500 per unit and a useful life of less than one year. Federal grants define the amount as less than $5,000. Please refer to the GAN and the agencies grant guidelines.
- Equipment - Equipment has a cost of more than $500 per unit and a useful life of more than one year.

Federal grants define the amount as greater than $5,000. - Contractual Services - Contractual Services are those items provided by non- personnel or companies.

Further detail on the different types of contractual services is included in the “Vendors vs. Independent Contractors vs. Sub-recipients” section, below.
- Other Expenses - Most costs should fit into one of the above categories if they are being directly charged to the grant.

NOTE: ALL Federal Awards, Cooperative Agreements, or State Awards utilizing Federal Funds must follow the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Chapter 1, Chapter 2, Part 200). These guidelines can be found at https://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl.

Expending Grant Funds
Allowable Expenditures
All costs directly related to the grant, including salary, fringe benefits, stipends, travel, supplies, equipment, printing, and marketing and outreach are eligible expenditures if they were included in the original budget approved by the funding agency. Allowable expenditures are allocable, allowable, reasonable, and necessary for accomplishing the objectives of the program as defined in approved grant award for implementing activities. There may be instances where the contract may have more restrictive terms than general funding guidelines (such as the Uniform Guidance or GATA). When rules do conflict, the most conservative rule applies to the spending limitation. Common disallowed costs, include, but are not limited to:
Salary for employees not working directly on the grant Alcohol
Entertainment Costs (unless approved as programmatic by awarding agency) Lobbying
Advertising (unless required as part of a “Public Notice” process) Promotional items or “giveaways”
Exceptions may be made if prior approval is obtained from the agency.

Approvals of Expenditures
Prior to expending funds, the Project Manager should review the costs to ensure they are an allowable expense and directly relate to the grant objectives and are provided for in the grant budget. The Project Manager should approve expenditures based upon their institutional authority. Evidence of approval should be part of the grant files for all expenditures.

Supplement vs. Supplant
Grant funds must supplement or add to, enhance, expand, increase, extend the programs and services offered with City funds. Grant funds are not permitted to be used to supplant (take the place of or replace) local funds used to offer those programs and services. Grant funds should INCREASE the overall amount of resources available to the

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Grantee. If an expense was previously paid for with City funds, it should not be charged to a grant subsequently unless it can be documented that state or local funds have been reduced/eliminated.

Documenting In-Kind, Cost Sharing and Matching
Some funding agencies or grant programs require the grantee institution to demonstrate its financial commitment to the project, or the commitment of other funding sources. This is done by sharing the total project costs through matching or leveraged funds, cost sharing, or in-kind contributions. If included in the grant proposal budget, these financial commitments become a binding requirement of the grant award and costs must be tracked and reported for compliance.

For all federal awards, any cost share, matching funds, or in-kind contributions must be accepted as part of the nonfederal entity’s cost sharing or matching when such contributions meet all of the following criteria:
- Verifiable from the non-federal entity’s records;
- Not included as contributions for any other federal award; - Necessary and reasonable for achieving project or program objectives; - Not paid by the federal government, unless required; and - Included in the approved budget.

The Project Manager must work closely with Finance to ensure that in-kind, matching, or cost sharing funds are allocable, available, and properly documented. For example, funds cannot be used for match or cost sharing on multiple grants and federal funds cannot be matched with other federal funds. These commitments must be documented in a way that meets audit standards.

Grant Budget Revisions
The grant budget approved by the funding agency is a financial plan for achieving the desired outcomes of the grant project. Grant funds may only be expended within the cost categories and amounts identified in the approved grant budget. The approved budget constitutes part of a legal contract. Changes in planned project activities or scope of work may require budget modifications. Federal and state guidelines are usually flexible enough to allow minor (≤ 10%) line item variances without prior approval from the program officer. If a larger change is anticipated, contact Finance to discuss the changes before making any scope of work changes or spending funds outside of the approved budget.

Finance will work with the Project Manager to determine if the funding agency guidelines allow for the proposed budget change. The Project Manager may need to contact the program officer at the funding agency to discuss the change and to determine the appropriate forms or format for formally requesting the modification.

Upon receipt of the request, the funding agency will review and officially approve or disapprove the change in writing. No budget changes may be made until official, written notification is received. This process can take several weeks so it is important to make adjustments as early as possible. The revised budget and copies of the written approval will be maintained in the grant master file.

Purchasing Department
Purchasing has instituted an efficient and fair procurement process in accordance with federal and state procurement regulations and encourages the inclusion of all vendors and suppliers. Purchasing serves the needs of the City for all purchases in excess of $2,000 as outlined in the City’s Procurement Policies and Procedures Manual.

For purchases of $25,000 or more, a formal bid process is required. Responsibility and authority to make commitments for these purchases are assigned to Purchasing. For more information on Purchasing procedures and processes, contact Purchasing.

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NOTE: ALL Federal Awards, Cooperative Agreements, or State Awards utilizing Federal Funds must also follow the General Procurement Standards in the Code of Federal Regulations (CFR); Title 2: Grants and Agreements section §200.318 through §200.326. These guidelines can be found at https://www.ecfr.gov/cgi-bin/textidx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl; in addition expenditures utilizing funds through Caltrans must follow the Local Assistance Procedures Manual (LAPM, particularly Chapters 5 and 16. These guidelines can be found at https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/local-assistance-procedures-manuallapm or Local Assistance Procedures Manual for Caltrans Grants. Feel free to contact Finance for additional information (ext. 6033).

ALL Federal Awards used to procure vendors providing services to the City in excess of $25,000.00 must maintain evidence of vendor “Suspension and Debarment” verification through the “Systems for Awards Management (SAM).

Print out copy of verification and submit it to Finance or contact Grant Mngt. Analyst to obtain a copy. This requirement must also be included in your Contract, Professional Services Agreement, or PO.

Vendors vs. Independent Contractors vs. Sub-recipients
Most vendors are businesses, suppliers, contractors, or subcontractors who sell goods and services to the City through the purchase requisition process. All vendors interested in doing business with the City must send a request on company letterhead asking to be added to the Bidder’s List. All vendors are subject to the City’s purchasing policies.

Independent contractors (including consultants) are entities that receive a contract from the City and provide goods and services under a procurement relationship within normal business operations. These contractors provide similar goods and services to many different purchasers and normally operate in a competitive environment. In the context of federal grant projects, independent contractors provide goods or services that are ancillary to the operation of a federal grant project and are not subject to compliance requirements of a federal program as a result of the agreement. For more information of Department of Transportation consultant contracts, please see Section 7:

Additional Information.

A sub-recipient is a non-federal entity that expends federal funds to carry out a part of a federal grant project’s activities, as opposed to providing goods or services (as a contractor) for the benefit of the City. In a sub-recipient relationship, the City is considered a pass-through entity (i.e., federal funds are awarded to the City, which then provides part of those funds to the sub-recipient for performing grant work/activities). Different from vendor or contractor, a sub-recipient is a partner responsible for a portion of the grant’s performance outcomes, and shares in the responsibility for programmatic decision making. In accordance with grant contracts, sub-recipients are responsible for compliance with applicable federal flow down clauses and program requirements.

A sub-recipient relationship is established through a sub-award agreement, a contract issued under a larger (prime) grant award for the commitment of specific services or project-related activities that are to be performed by the sub-recipient. Issuance of a sub-award under a federal prime award is subject to compliance with federal law, and all sub-awards are subject to the terms and conditions of the prime grant award and the City’s purchasing policies.

A sub-award does not include payments to a contractor or payments to an individual that is a beneficiary of the federal grant program.

Once the grant is awarded, the Project Manager will determine which partners are eligible to receive federal assistance, and will prepare a sub-award agreement. This agreement will define the specifics of the grant work to be completed, the funding agency’s terms and conditions, and City policies and procedures. Sub-awards are written to assign specific portions of the programmatic effort and the sub-recipient is responsible for managing the technical and administrative aspects of the agreement.

The Project Manager and Finance will work closely to monitor whether:

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- Federal and state awards are used for authorized purposes in compliance with laws, regulations (including OMB guidance), and the provisions of the grant contract. - Costs are allowable, allocable, and reasonable.
- Performance goals are achieved.
- All grant project files are current.

Tracking Time
Government policies require that all staff paid from and/or contributing effort to federally-funded and state-funded grants report and certify their time accordingly. When the City accepts federal or state funds, it agrees to this obligation as a condition of award.

Institutional records are required to verify direct and indirect cost activities related to grant-funded projects. In addition to submitting regular timesheets. A timesheet must be completed by each staff member who charges or contributes time to a grant project. The timesheet provides a system of budgeted, planned, and assigned work activity that is incorporated into the official records of the City and must reasonably reflect only the activity for which the staff is compensated by the City.

Risk, Compliance, and Sub-Award Management
Grant compliance is becoming increasingly important. Federal requirements have expanded for evaluation and monitoring of grant project outcomes, and increased scrutiny of risk management and financial accountability and transparency is codified in the federal Uniform Guidance regulations (i.e., OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards in 2 CFR part 200).

The risk management cycle is a framework for continuous discovery, analysis, action, and improvement. Risk mitigation is taking appropriate action to address potential problems, including imposing the appropriate types and levels of requirements and providing appropriate types of monitoring and levels of technical assistance. Monitoring is the process followed to assess how well a grant is being implemented, achieving program objectives, and complying with requirements, terms, and conditions.

Grantees who allocate sub-awards of federal funds to sub-recipients as pass-through entities must:
- Assess the risk of subrecipients;
- Maintain strong internal controls for managing sub-awards; - Communicate with federal program staff and with sub-recipients; - Document all activities; and
- Monitor sub-awards to ensure sub-recipients are spending grant funds appropriately and in compliance with the award and all regulations.

When monitoring subrecipients, the pass-through entity must:
- Review reports required by the pass-through entity;
- Ensure sub-recipients take appropriate action on deficiencies identified through audits, on-site monitoring, and other reviews;
- Issue a management decision for single-audit findings pertaining to the federal award; and - Verify audits of sub-awards.

Programmatic Changes
All programmatic changes must be discussed with the Finance. The Project Manager will contact the program officer to discuss the potential changes needed and complete the forms required by the funding agency to request a formal grant modification.

Personnel Changes

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During the life of the grant it may be necessary to change grant-funded personnel, key personnel listed in the grant, or to adjust salary rates. Most funding agencies have established strict procedures for requesting prior approval of personnel changes which are incorporated into the terms and conditions of the grant contract. Finance will work with the Project Manager and provide technical assistance in obtaining approval from the funding agency.

Changes in Project Scope
Substantive changes in the scope, objectives, or goals of a project, whether they impact the budget, typically require written approval from the funding agency’s program officer. Some examples that would require written approval include changing a performance location, training activities, or monitoring plans. In most cases, a fully substantiated written justification for the changes will be required to request the changes. The Project Manager is responsible for obtaining the written approval from the funding agency.

No-cost Extension
A no-cost extension is a request to extend the end date of the project beyond the previously approved end date and for which no additional funds are needed beyond what was originally awarded. The Project Manager is responsible for knowing the deadline for submitting a no-cost extension request. Some programs do not allow no-cost extensions. Simply having remaining funds at the end of the grant period is not sufficient justification for a no-cost extension.

Required Reporting
Reporting requirements and due dates are specified in the grant contract and a reporting schedule is formalized at the kick-off meeting. Most funding agencies require monthly, quarterly, and/or annual progress and financial reporting.

Note: Caltrans requires submittal of invoices at least every 6 months.

Financial Reports
Financial reports are prepared by Finance. Finance will report on the budget expended to date and any in-kind or matching dollars. Financial reports will be reviewed and approved by the Project Manager prior to submitting to the funding agency. Electronic submissions, through portals such as IDIS, will be submitted by Finance.

Narrative/Progress Reports
The Project Manager is responsible for preparing narrative reports. Reports should conform to funding agency guidelines and use technical report writing standards. A report narrative usually requires responses to each of the proposed outcomes, including status updates on progress toward each grant activity, objective, and milestone.

Outcomes that are not accomplished as scheduled during the reporting period should be clearly explained and any challenges should be described along with the solution.

Comments should be substantiated and fully supported by evaluation data, research, and statistics. The Project Manager should plan adequate time for collection and analysis of institutional project data, when needed for reports. Reports may also include charts, graphs, or other representations of data pertaining the project and delivery of services.

Successfully prepare the narrative/progress reports by following these guidelines:

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Compliance Reviews
As stewards of external grant funds, the City must ensure that project implementation is on track. By monitoring the progress of grant activities and ensuring compliance with regulations, the City is working to secure strong relationships with funding agencies and other grant makers and focusing on accessing future funding opportunities.

Project Managers will schedule monthly or quarterly compliance reviews to review progress, both programmatically and financially, and address any issues. The frequency of these reviews will be determined based on the complexity of the grant and the grant management experience of the Project Manager. These reviews allow Finance to support Project Manager in successfully managing their grant projects.

Additionally, annual file reviews will be conducted approximately one month prior to deadlines for final reports and an additional review will be conducted one month prior to deadlines for closeout reports, generally within 60-90 days after the grant contract end date.

Follow all instructions
•Adhere to page limits, use funder formatting
•Ensure the specific questions of the funder are being answered Review grant agreement guidelines
•Ensure each goal, objective, and activity is addressed Explain any unexpected challenges, delays, or goals not fully acheived •Include any corrective action taken to get back on track Be clear, concise, and coherent
•Tie outcomes directly to project goals, objectives, and activities

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Section 4: Project Evaluation
Preparing for Project Evaluation
The evaluation is a key aspect of any project and evaluation plans becoming a heavily weighted criterion in grant proposals. The evaluation informs progress toward the achievement of objectives, the effectiveness of methods, and whether processes, strategies, or tactics require adjustment during the grant period. Expectations for rigor and quality of evaluation plans have increased in recent years across all funding agencies/organizations, so it is critical to keep in mind that evaluation must be an ongoing process throughout the life of the grant-funded project. The Project Manager must be familiar with reporting schedules and be prepared to implement routine data collection and analysis as primary project activities. There are many approaches to project evaluation with the two most common being programmatic assessment and administrative assessment.

Programmatic assessment addresses the following questions:
- Is the project meeting the specific goals, objectives, and outcomes listed in the grant proposal? - Is the project meeting the overall requirements and objectives of the grant program? - Is the project programmatically compliant?
Administrative assessment addresses the following types of questions:
- Is the project meeting its milestones and deliverables? - Do the expenditures correspond to the original budget? - Are reports vouchers submitted correctly and on time? Funding agencies may conduct several types of program monitoring activities, including but not limited to the following:
- Basic mandatory monitoring which includes the review of performance and progress reports and financial reports, along with final cumulative reports at closeout, vouchers and budget changes, data submissions as requested, and ongoing communications with the grantee. - Periodic on-site monitoring such as program reviews, process reviews, general onsite observations, file reviews, and programmatic and operational reviews.

The following list, while not all encompassing, describes the primary steps for ensuring a comprehensive project/program evaluation.
1) Know the expectations of the project. Review goals, objectives, strategies, milestones, deliverables, outcomes and work plans. Scrutinize the performance measures and indicators and carefully plan the tools and resources that will be used for collecting and storing data, when data collection will occur, and how the data will be analyzed.
2) Finalize data collection methods. Determine what data is needed to show progress toward objectives using performance indicators; plan to collect qualitative and quantitative data from existing or new sources; identify how and where data will be entered and safely stored; and create plans to periodically pull and analyze data for reports and ongoing project improvement. 3) Engage stakeholders. If the proposed evaluation plan included input from a stakeholder group or steering committee, now is the time to formally establish the group and begin communication. Create opportunities for partners and stakeholders to engage in the evaluation process as well as identify solutions to the findings. Create a feedback loop throughout the process for interim findings and recommendations. 4) Initiate data collection. Begin to systematically gather and enter data into a secure database. 5) Analyze the data. Prepare and implement plans to analyze data for reports and continuous improvement, including sharing results with stakeholders and partners. Compile data and prepare reports. 6) Monitor the budget. Review budget expenditures and modifications; ensure that financial reports are submitted on time.

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7) Develop plan for disseminating results. Document and disseminate the results and lessons learned via customized communications that meet the specific needs of stakeholder groups. Findings should be considered in decisions or actions that affect the project. Schedule follow-up meetings with report users to make sure the findings are communicated and used appropriately in decision making.

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Section 5: Grant Closeout
Grant closeout is the process by which the Project Manager and Finance determine that all requirements of the grant contract agreement between the funding agency and the City have been completed in accordance with the terms and conditions of the agreement. Finishing a grant project is just as important as starting one. Closing out a grant project involves making sure that all grant contract activities have been completed and funding has been exhausted.

Closeout of the grant does not cancel any requirements for property accountability, record retention, or financial accountability. Following closeout, the City remains obligated to return any unexpended funds due to the agency and the sponsor/funding agency may recover amounts based on the results of an audit covering any part of the grant period.

It is highly recommended that you create a Grant Closeout Checklist at least six months prior to the end date of your grant project. Upon closeout, all grant documents and files should be forwarded for file labeling and storage.

Start the Closeout process 60 days of grant end date.

In many cases, the way closeout procedures are handled, such as timely submission of final reports and the quality of those reports, can have a direct impact on the chances for future funding. There are seven grant management items that need particular attention at the closeout of a funded project: pre-closeout activities, budget, personnel, purchasing activities, files, final reports, and document storage.

Area Process
Pre-Closeout Meeting The Project Manager will contact Finance at least 2 months prior to the end of the grant.

Budget Review encumbrances and liquidate those no longer needed. Accounts will be closed soon after the grant’s ending date.

Personnel Submit any payroll changes for staff members to other budget account or to the new grant budget account assigned to a continuing grant.

Purchasing Ensure all goods and services have been received prior to the end of the grant, although payment can occur soon after the end of the grant period.

Grant Files Review all grant documents, personnel records, purchase order and requisitions, and budget records.

Final Reports Follow the guidelines and requirements for all final reports, as provided by the funding agency.

Document Storage Plan to have all grant files transferred to storage.

Disposition of Equipment
Equipment purchased with state or federal funds must be used in the grant project for which it was acquired for as long as the equipment is needed. Grant equipment with a current per unit fair market value (FMV) of $5,000 of less may be retained, sold, or otherwise disposed of with no further obligation to the Federal awarding agency. If the FMV is in excess of $5,000, the Federal awarding agency should be contacted for instruction prior to selling or disposing, according to the terms and conditions of the grant agreement.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Final Reporting
Grant closeout also includes the preparation and submission of final programmatic/technical reports as well as financial reports. Some funding agencies or sponsors have required forms that must be used. All final reports should be submitted to Finance for review and submittal to the funding agency.

Records Management
The City adheres to Federal rules pertaining to retention requirements for grant agreements. As a general rule, all grant files must be retained for a period of at least three (3) years. More specifically, 2 CFR 200.333 states the following:

Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient. Federal awarding agencies and pass-through entities must not impose any other record retention requirements upon non-Federal entities. The only exceptions are the following:
(a) If any litigation, claim, or audit is started before the expiration of the 3-year period, the records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken.
(b) When the non-Federal entity is notified in writing by the Federal awarding agency, cognizant agency for audit, oversight agency for audit, cognizant agency for indirect costs, or pass-through entity to extend the retention period.
(c) Records for real property and equipment acquired with Federal funds must be retained for 3 years after final disposition.
(d) When records are transferred to or maintained by the Federal awarding agency or pass-through entity, the 3-year retention requirement is not applicable to the non-Federal entity. (e) Records for program income transactions after the period of performance. In some cases recipients must report program income after the period of performance. Where there is such a requirement, the retention period for the records pertaining to the earning of the program income starts from the end of the nonFederal entity's fiscal year in which the program income is earned. (f) Indirect cost rate proposals and cost allocations plans. This paragraph applies to the following types of documents and their supporting records: indirect cost rate computations or proposals, cost allocation plans, and any similar accounting computations of the rate at which a particular group of costs is chargeable (such as computer usage chargeback rates or composite fringe benefit rates). (1) If submitted for negotiation. If the proposal, plan, or other computation is required to be submitted to the Federal Government (or to the pass-through entity) to form the basis for negotiation of the rate, then the 3-year retention period for its supporting records starts from the date of such submission. (2) If not submitted for negotiation. If the proposal, plan, or other computation is not required to be submitted to the Federal Government (or to the pass-through entity) for negotiation purposes, then the 3-year retention period for the proposal, plan, or computation and its supporting records starts from the end of the fiscal year (or other accounting period) covered by the proposal, plan, or other computation.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Section 6: Compliance, Audits, and Audit Readiness
Compliance
Grant compliance is the cornerstone of grants management.

Once a grant award is accepted, the City accepts formal, legal responsibility to follow the rules and regulations of the grant including requirements stated in the original request for proposal, the notification of award, and any other supplemental documentation, including the budget. Failure to comply with the terms and conditions could result in a finding of noncompliance and result in the following:
- The City could be labeled as a high-risk grantee, which could result in suspension or termination of current grant projects, and/or impact the City’s eligibility for future grant funding; - Cash payments/reimbursements may be withheld until any given deficiency is corrected; - All or part of the costs for project activity or action that is not in compliance may be disallowed, meaning the City would have to reimburse the funding agency for disallowed costs; - Future awards for the project may be withheld; and/or - Other legal remedies may be imposed.

Additionally, the City may be disbarred, suspended, or excluded from managing federal awards and subawards for mismanagement or misuse of grant funds.

Audit Readiness
An important thing for Project Managers to remember is that all grant project records are subject to internal and external audits. When organizations receive external grant funds, particularly state or federal funds, they are responsible for using those funds in accordance with laws and regulations. Recipients must use fiscal control and accounting procedures to ensure proper disbursement of and accounting for these funds. The effective management of public and private funds should be the result of ongoing activities that ensure audit readiness, such as:
 Administrative controls: Internal policies and procedures an organization follows as part of its normal business operations.
 Accounting controls: Internal policies and procedures that protect an organization’s finances and financial records.
 Compliance with Federal, state, and grant program requirements: Adherence to laws and regulations related to reporting of financial status, treatment of grant-related income, eligibility of participants, monitoring of activities, allowability of charges, and direct and indirect cost allocations.  Records: Should include information adequate to support statements in the proposal and should be retained for the required period of time.
 Internal audits: May be requested by the funding agency to assist in determining the adequacy of controls and systems.

Common Audit Findings
Finance researched a variety of sources to identify the most common audit findings related to the management and administration of grants. Audit findings can have a negative impact on the City and its ability to obtain grants in the future. The monthly compliance reviews are just one way that the Project Manager assists in ensuring the potential for audit findings are minimized throughout the grant period.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Common Budget-Related Audit Findings
- Unallowable costs charged to grant
- Inaccurate administrative costs
- Misallocation of costs (amounts expended in
unapproved cost category or other category)
- Budget adjusted without prior written
approval
- Excessive cost transfers / journal entries
- Lack of time documentation to support
salaries charged to the grant budget
- Inaccurate time reporting or inadequate
documentation
- Lack of consulting agreements and invoices to
support services were related to grant and
costs were reasonable.

Common Match, In-Kind, Cost Sharing Audit Findings
- Cash and in-kind amounts not supported by
adequate documentation or not verifiable
- Using other federal funds as match
- Costs charged based on estimated amount
rather than actual costs
- Match claimed on Federal Financial Report
(FFR) based on estimates, not actual amounts
- Match expense incurred outside of grant
award cycle
- Match amounts unreasonable or excessive
- Match deemed unnecessary to implement
grant
- Match claimed that was not in the approved
grant budget
Other Common Audit Findings
- Noncompliance with assurances and special
terms and conditions of award
- Significantly behind schedule in meeting grant
deliverables or outcomes
- Missing or inadequate support
documentation for purchases
- Equipment purchased without program
officer approval
- Changes made to scope of work without
Program Manager approval
- Delinquent financial and progress reports
- Delinquent closeout report
- Inadequate or no subrecipient monitoring
- Missing acknowledgement of funding agency
on project materials, if applicable

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Section 7: Additional Guidance
Finance wants you to be successful in managing and performing the work of your grant project. While this handbook cannot contain information or guidance for every situation, the intent is that it provides overviews of the regulations that govern grants, best practices for successful grant management, guidance for navigating the City’s, and tips for efficient and effective management.

On-site Monitoring Visits
It is possible that during the life of your grant, the grant funding agency will conduct an on-site visit. These can be both programmatic and financial. If you are notified of an upcoming agency monitoring visit, the first thing you should do is notify your manager and Finance.

Conflict of Interest
The City requires that individuals involved in procuring goods and services for a grant be free of any conflicts of interest. Conflict may arise when an employee, officer, agent any member of the immediate family has a financial interest in the contract. Contractors who assist in the development or draft the grant application must be excluded from bidding to compete for the award. Individuals must disclose any conflicts of interest that exist to the awarding agency. Finance can assist individuals at the City with this process.

Disseminating Project Results
One of the final activities to consider as the grant-funded project comes to an end is how the grant project team will disseminate the evaluation results or capture lessons learned in a way that will inform ongoing practices. The proposal may have included a dissemination plan that outlined when, how, and with whom this information would be shared. Be sure to revisit this plan to ensure that the stated information is sent to the appropriate individuals, organizations, or publications. It is also important to consider opportunities to schedule presentations based on the project results or lessons learned at local, regional, and national meetings and conferences. This further promotes the City and the good work being done here to improve the quality of life. In some cases, it may be necessary, per the grant contract, to disseminate or make specific work products publicly available. Be sure to credit the grant funding agency as appropriate and where required when creating materials for public dissemination. Frequently, specific language is required by the grant funding agency to be included in any publications or materials generated from the award. Check with Communications if you have any questions about publicly disseminating grant-related work.

If the proposal did not include a dissemination plan or the grant contract did not prohibit the dissemination of results, the grant project results may be distributed to appropriate professional organizations and publications, shared at council meetings, or other means. At a minimum, project results should be submitted to the funding agency, City staff, and partner organizations that were involved with the project.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Department of Transportation (Caltrans) Grants
Certain grants will have additional regulations that must be followed in order to be compliant with the granting agency. For example, Department of Transportation provides specific contract and procurement requirements.

The federal government has delegated the California Department of Transportation (Caltrans) the authority to administer funds to local agencies through the Local Assistance Program. Caltrans requires local agencies to adopt the policies and procedures outlined in Chapter 10(Consultant Selection) of the LAMP as the process to be followed by staff.

If your division has received funding from Caltrans you must:

1. Attend the Local Agency A&E Contract Procurement Training https://www.youtube.com/watch?v=CtJGAzh1iJc&feature=youtube.

2. Review the Local Assistance Procedures Manual, including Chapter 10: Consultant Selection and A&E Boilerplate Agreement Language
The Project Manager for any Caltrans grant is responsible for:

1. Contract negotiation, consultant performance evaluation, and submitting invoices to Finance for payment.
a. Exhibit 10-R A&E Boilerplate Agreement Language is used on all consultant contracts utilizing DOT funds.
b. Required contract provisions from the Master Agreement are included in future consultant contracts and adequate documentation of any deviations are maintained. c. Required language is included in the Request for Proposal and contract provisions that require the consultants and sub-consultants to identify the key personnel staff by name and classification in their cost proposals and consultant invoices.
d. The PM must ensure key personnel are identified in consultant invoices by name and their costs are authorized in the executed contract.

2. Being familiar with the contract requirements, scope of services, and products to be produced.

3. Being familiar with the qualifications of the consultant's staff & changes in key personnel.

4. Attending progress & project review meetings, to ensure project delivery according to schedule milestones.

5. Ensuring consultant costs billed are allowable and consistent with the contract terms. a. Reimbursements to consultants are consistent with terms of the executed contract including, but not limited to travel reimbursement and labor rates
b. Consultant billing rates are detailed to include the cost breakdown of labor, fringe benefits and indirect costs included in the submitted consultant proposal or as negotiated with the most highly qualified consultant.
c.

6. Evaluating and participating in decisions for contract modifications. a. Any modifications to the contract for personnel substitutions, labor rates, and/or any other cost proposal changes must be:
i. Agreed upon by the City and the consultant.
ii. Documented prior to reimbursement for these changes to the executed or amended contract.

7. Documenting contract monitoring activities and maintaining supporting contract records, as specified in 2 CFR 200.333

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Additional Resources for Department of Transportation (Caltrans) Grants ➢ Additional guidance and manual for Caltrans can be found at the address below:
<https://dot.ca.gov/programs/local-assistance>
➢ Local Assistance Procedures Manual (LAPM)
<https://dot.ca.gov/programs/local-assistance/guidelines-and-procedures/local-assistanceprocedures-manual-lapm> ➢ Chapter 10: Consultant Selection
<https://dot.ca.gov/-/media/dot-media/programs/local-assistance/documents/lapm/ch10.pdf> ➢ Exhibit 10-R: A&E Boilerplate Agreement Language:
<https://dot.ca.gov/-/media/dot-media/programs/localassistance/documents/lapm/c10/10r.pdf>

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Glossary
Grants Terminology and Acronyms
501(c)3: Section of the IRS Code that authorizes and defines most tax-exempt organizations, which must be organized and operated for a public purpose. 501(c)3 is the most common type of non-profit designation.

Activities (developmental vs. operational): developmental activities are those that use innovative approaches to solve an institutional problem. Operational activities are those that are performed in the course of normal everyday City business.

Administrative Fees/Overhead: Portion of a grant or contract that may be used for non-programmatic costs, sometimes unallowable or with limits set by the funder as a percentage of the total grant. (See also Indirect Costs).

Allowable Cost: A cost for which an institution or agency may be reimbursed under a grant or contract with a government agency.

Amendment: Modification of an existing grant or contract agreement. Must be in writing.

Appropriations: Federal or State congressional legislation that approves spending for a particular agency or group of agencies.

Audit: Detailed financial analysis performed by an independent accounting firm at the end of the institution’s fiscal year. Can also be conducted by a federal or state funding agency at the end of a grant project period. Program audits are also sometimes required by the funder to ensure outcomes were achieved and money was spent in accordance with the grant agreement.

Authorized Organizational Representative (AOR): Member of organization authorized to submit applications in Grants.gov on behalf of the organization.

Award: Financial assistance that provides support to accomplish the program or public purpose.

Award Letter: Written notification from the funding agency indicating that a project has been funded.

Best Practices: Theories and activities within a given field that have been demonstrated to be successful in addressing issues or needs in the field. These programs, processes, or services have been tested and can be replicated.

Block Grants: Funds distributed by the federal government to state and local governments for broad purposes allocated based on population (e.g., community development block grants - CDBG).

Boilerplate Language: Standard narratives about an organization, program, or service that is kept on file to be easily pasted into a proposal or grant application with only minor modification/adaptation needed.

Budget: Fiscal plan for entire organization, specific program, or specific project that includes an itemized list of projected revenues (income) and expenses. Generally created on an annual basis for organizations and for the entire project period for a grant.

Budget Modification: Formal change in the allocation of grant funding when a deviation from the grant budget approved by the funder is needed. Any deviation from the approved grant budget requires formal approval from the funder. The percentage of allowed deviation is generally stated in the grant agreement.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Budget Narrative: Detailed description of each line item included in the proposed grant budget. Describes how the amount was calculated and how it supports the program. All budget items should support the activities described in the scope of work.

Cage Code: Five-character code which identifies companies doing business with the federal government and is assigned through SAM.

Capacity: The organization’s ability to effectively manage a grant, to have the requisite resources and institutional support, and to ensure that the program is implemented successfully. This can include grant management experience, subject matter expertise, staffing, fiscal systems, space, equipment, and other assets needed to support the grant.

Capital Funding: Grant or budget to assist in construction or renovation of building(s) or space(s) in a building, or the acquisition of equipment (valued at $10,000 or more with a life span greater than one year).

Catalog of Federal Domestic Assistance (CFDA): Resource listing all new, existing, and past federal programs. Each federal grant has an CFDA number assigned to it and is required on the Standard Form 424, the cover sheet for federal proposals.

Challenge Grant: Grant offered by a funder to encourage other grant makers or individuals to support a particular program. These funds are only received if the other funds are obtained.

Community-based Organization (CBO): Non-profit groups that work at the local level to improve life for the residents.

Community Foundation: Foundation established for the purpose of managing funds for the benefit of a community in which it functions.

Competitive Grant: Grant award by a government agency or private funder through a competitive application process. Proposals or applications are submitted in response to a Request for Proposals (RFP) or a Notice of Funding Opportunity (NOFO) and are scored according to established evaluation criteria.

Conflict of Interest: When two or more contradictory interests relate to an activity by an individual or organization.

Situations in which financial or other personal considerations may compromise or have the appearance of compromising an individual’s judgement in conducting work or research.

Corporate Foundation: Foundation that is separate and independent of a company established solely for charitable purposes. Maintains close ties with the parent company and giving usually reflects the company’s interests.

Cost Sharing/Matching: Portion of project costs not paid by federal funds. Can be value of allowable third-party inkind contributions or expenditures of awardee.

Demonstration Project/Grant: Project designed and funded to determine the viability of a new idea, program, or service. Can test and measure the effects of new programs or program changes in a real-world environment.

Determination Letter: Letter from the IRS affirming that an organization is eligible for tax-exempt status.

Direct Costs: All budget items that directly support the work of the project and are allowable and allocable in accordance with the grant agreement and approved budget.

Discretionary Grants: Funds awarded on the basis of a competitive process. Awardee is selected based on merit and eligibility.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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DUNS Number: Data Universal Numbering System number assigned by Dun & Bradstreet to every organization that applies for a grant. Required for all federal grant applications.

Eligibility Guidelines: Requirements the applicant must meet as defined by the funder in order to be eligible to apply for a specific grant.

Employer Identification Number (EIN): Unique identification number assigned by the IRS to a business entity. Also known as a Tax Identification Number (TIN).

Evaluation Plan: An integral part of a proposal that describes a systematic process for gathering, analyzing, and reporting information about a program. A detailed plan for measuring a project’s or program’s effectiveness and impact on participants.

Federal Register: Federal government publication in which grant announcements (NOFAs, FOAs, RFAs, RFPs, or SGAs), rules and regulations, and other notices are published.

Fiscal Year (FY): 12-month period of operation of an organization under its annual budget. The City has a fiscal year running from July 1 to June 30 each year and the federal government’s is October 1 to September 30. Fiscal year is designated by the year in which the fiscal year ends.

Form 990: IRS form entitled Return of Organization Exempt from Income Tax which must be filed annually by tax exempt organizations. Provides overview of organization’s activities, governance, and detailed financial information.

Formula Grants (also known as entitlement grants): Federal government funding provided to states and major municipalities based on a formula that accounts for number of individuals entitled to that funding. Could be based on total population or individuals in a specific category such as elderly, disabled, youth, etc.

General Operating Funds: Funding for the organization as a whole for any purpose that furthers the mission of the organization. Funding for costs that cannot be allocated to a specific project or program. Also called unrestricted funds or administrative overhead.

Governmental Institution: Designation given to an institution acting as an instrumentality of a governmental unit.

Grant: Award of money, or sometimes goods or services, to accomplish a specific purpose defined by the funder to be carried out by the grantee.

Grant Project Administrator: Project Manager identified by the City to manage a grant in accordance with the grant agreement.

Grant Agreement: Legally binding document that states funder’s requirements, terms, and conditions. Once signed by both parties, the funder and the City are legally bound to those legal terms and conditions. Changes to these term and conditions must be in writing.

GAN: Grant Agreement Number
Grant Guidelines: Funder’s official instructions for applying for a grant laid out in the forms of NOFAs, FOAs, RFAs, RFPs, or SGAs. Details components of grant proposal or application that must be included to be considered responsive and viable.

Grant maker: Entity that provides grants. Can include government agencies, foundations, associations, and corporations.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Grants.gov: A common website for federal agencies to post discretionary funding opportunities and for grantees to find and apply for them.

Impact Statement: Demonstrates how the work will make a difference in the lives of people and communities.

Indirect Costs: Costs that are incurred for common or joint objectives and cannot be readily identified with a particular final cost objective. Many funders limit the Percentage of total program costs allowable to pay for overhead. (See also Administrative Overhead)
In-kind Contribution: Goods or services that are donated to an organization in support of a project or program. Inkind contributions should be identified in the budget as in-kind and described in the budget narrative. In-kind can be used as matching funds in some cases.

Institutionalization: Permanent or long-term support for or absorption of a specific program or service by the institution in order to sustain it after the grant funding has ended.

Key Staff/Personnel: Administrators and/or staff who are critical to implementation and management of a specific project/grant. Contribute to the execution of a project in a substantive, measurable way, regardless if they are directly funded by the grant. Any change in key personnel named in the grant agreement should be communicated to the funder immediately.

Kickoff Meeting: First meeting of the grant project team (and sometimes the funder) to have an open discussion regarding the details of the grant and project. Grants director will answer any questions regarding processes or procedures, discuss budget and reporting requirements, and ensure all roles and responsibilities are defined and understood.

Letter of Intent (LOI): Preliminary, non-binding indication of an organization’s intent to submit an application or proposal.

Letter of Inquiry (LOI): Proposal letter to introduce your organization, project idea, and proposed budget in an effort to get an invitation to submit a full proposal.

Letters of Support: Letters included in a grant proposal describing the support of the project from legislators or external organizations (e.g., local industry, community organizations, other colleges or universities, small businesses).

Local Assistance Procedures Manual (LAMP): Assistance provided by Caltrans for all DOT grants Match (or Matching Funds): Amount or percentage of total budget that a funder may require an applicant to commit to the program, if funded. Match can be in-kind contributions, case, or a combination of both.

Memorandum of Understanding (MOU): Agreement signed by authorized representatives of each organization or from each partner of a project that specifies the activities and services that each organization will perform and the expectations/responsibilities that each organization has from the grant project. Also can be a Memorandum of Agreement (MOA).

Needs Assessment: Systematic process for gathering qualitative and/or qualitative data and documentation used to identify needs, gaps, and solutions to get an organization from a state of “what is” to a state of “what should be.” There are a variety of needs assessments conducted at the City, including Housing Needs Assessment, Program Needs Assessments, etc.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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Needs Statement (Problem Statement): Section of a grant proposal that defines the issues, needs, or problems, that a program will address. Proposals to government agencies generally require greater documentation and data to document the problem. Includes research from the field.

Non-federal Entity: State, local government, Indian tribe, or nonprofit organization that carries out a Federal award as a recipient or subrecipient.

Notice of Funding Availability (NOFA): Formal, published announcement made by a funder (generally a government agency) of a funding opportunity for a specific program identified in the NOFA. Also called a Notice of Funding Opportunity (NOFO), Request for Proposals (RFP), or Request for Application (ROA).

Objectives: Clearly defined and measurable results (outcomes) that a project or program is expected to achieve.

Outcomes: Intended, measurable results of a project or program.

Outcome Evaluation: Process of determining whether and to what extent a project or program achieved its results.

Generally accomplished through quantitative research methods.

Pass-through Entity: Non-federal entity that provides a subaward to a subrecipient to carry out part of a Federal grant program.

Process Evaluation: Application of research methods, generally qualitative, to determine if a program was implemented the way it was intended to be implemented. Provides feedback to program managers to take corrective action. Also called Formative Evaluation.

Program Evaluation: Systematic process for analyzing indicators and documenting whether or not a program has achieved its objectives or intended outcomes. Complexity is dependent on funder’s requirements.

Program Officer (Grants Officer): Staff member of funding organization who receives grant proposals and processes applications for a government agency or foundation.

Project Period (Performance Period): Length of time of the grant-funded project approved by the funder.

Request for Proposal (RFP): Document issued by funding agency inviting eligible organizations to submit a proposal for a specific funding opportunity. Seen more in federal contracts than federal grants. Also called Request for Application (RFA), Request for Quote (RFQ), or a Solicitation.

SAM Cage Code: Five-character ID number used extensively within the Federal government. It is assigned to identify a given legal entity at a specific location.

Seed Grant: Grant funds used to start a new project or program.

Site Visit: On-site visit by a funding agency that is considering the City for a grant which allows the agency to assess the information contained in the proposal and to ask additional questions to determine capability of the City to perform the work of the grant.

Subrecipient: Non-federal entity that receives a subaward from a pass-through entity to carry out a part of a Federal program, but does not include an individual that is a beneficiary of such program.

Supplanting: Using grant funds to pay for ongoing activities already budgeted for or for the usual activities assigned to a position. Supplanting is not allowed.

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Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Grant Management /
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System for Award Management (SAM): Federal government database that validates applicant information and electronically shares the secure and encrypted data with federal agencies’ finance office to facilitate paperless payments through EFT. Stores organizational information allowing Grants.gov to verify organizational identity and to pre-fill organizational information on grant applications.

3.A.4
Attachment: Grant Management - Grant Funding and Compliance Policy ATTACHMENT 740-A (Financial Policies & Procedures Manual) Staff Report Awarding Bid to United Rental for Heavy Equipment_022024.

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Arvin City CouncilFebruary 20, 2024

Arvin City Council
February 20, 2024