RFP P09-2024 September 29, 2023
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THE CITY OF CHULA VISTA
REQUEST FOR PROPOSAL
RFP P09-2024
Notice is hereby given that proposals will be received until 12:00 P.M. on Thursday, October 12, 2023, Pacific Standard Time (PST), furnishing the City of Chula Vista with:
Underwriter Services
Prospective respondents are hereby referred to the proposal instructions, general provisions, and terms and conditions contained in this request for proposal. All proposals must be submitted through PlanetBids by the due date and time. Late proposals will not be considered.
Questions related to the proposal must be submitted through PlanetBids. Questions must be received by 3:00 P.M. Tuesday, October 3 , 2023. Answers will be uploaded as an addendum in PlanetBids no later than 5:00 P.M. Thursday, October 5, 2023.
The City reserves the right to reject any or all proposals received or any portion of any proposal and to waive any irregularities or informalities in proposals or the RFP process. Any addenda that are issued through this RFP must be signed and returned with your submittal.
Victor De La Cruz
Procurement Services Analyst
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Schedule
Activity Date
RFP Posted to PlanetBids September 29, 2023
Question Submittal through
PlanetBids October 3, 2023, no later than 3:00 pm
Response to Questions Released October 5, 2023, no later than 5:00 pm RFP Response and Proposal Due October 12, 2023, no later than 12:00 pm Presentations/Interviews October 24-25 2023
Selection of Consultant October 25, 2023
Council Adoption November 7, 2023
Contract Inception November 7, 2023
Objective
The City of Chula Vista is seeking proposals from firms wishing to serve as Underwriter in connection with the refunding of the Chula Vista Municipal Financing Authority Special Tax Revenue Refunding Bonds, Series 2013. The City is requesting the following proposal:
Underwriter Services in connection with refunding of the Chula Vista Municipal Financing Authority Special Tax Revenue Refunding Bonds, Series 2013.
The goal is to select an Underwriter by October 25, 2023, and seek City Council approval of the selection on November 7, 2023. The City may request a form of engagement letter for this approval. The engagement will commence on November 7, and end when the closing of the Special Tax Refunding Revenue Bonds (described below) occurs. The Authority will adopt a Bond Purchase Agreement between the Authority and the Underwriter at the time of bond approval by the City Council.
2013 Bonds. The Chula Vista Municipal Financing Authority intends to sell approximately $40 million Special Tax Refunding Revenue Bonds for the purpose of refinancing its previously issued Special Tax Refunding Revenue Bonds Series 2013. The Bond proceeds will be used to acquire special tax refunding bonds of 5 CFDs (CFD Bonds) and the Bonds will be secured by repayment of the CFD Bonds. One of the five CFD Bonds are currently payable on parity with other CFD Bonds issued in connection with the issuance of the Chula Vista Municipal Financing Authority Special Tax Revenue Refunding Bonds, Series 2015.
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There was a partial mandatory redemption of the 2013 bonds in 2015, and the revised maturity schedule is shown below. The current reserve requirement is approximately $5,673,000.
Maturity Date Amount Maturity Date Amount
9/1/2024 3,315,000 9/1/2030 4,560,000
9/1/2025 3,495,000 9/1/2031 4,820,000
9/1/2026 3,685,000 9/1/2032 5,060,000
9/1/2027 3,885,000 9/1/2033 5,310,000
9/1/2028 4,095,000 9/1/2034 1,870,000
9/1/2029 4,330,000
Total 44,425,000
The City has the following
firms under contract for this engagement:
Bond Counsel – Stradling Yocca
Municipal Advisor – Harrell & Company Advisors
Special Tax Consultant – Spicer Consulting Group
Background
Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second -largest City in San Diego County with a population of more than 267,000. Chula Vista boasts more than 50 square miles of coastal landscape, canyons, rolling hills, mountains, and a variety of natural resources and quality infrastructure. Established neighborhoods, contemporary communities, start -up firms, corporations, nationally recognized entertainment venues, the nation’s only warm-weather Elite Athlete Training Center, an award -winning nature center and a historic downtown all contribute to Chula Vista’s attraction for both families and businesses.
Chula Vista means “beautiful view”. It has great year-round weather, miles of trails, coastline, mountains and open space beckon runners, hikers, cyclists, birders, and outdoors enthusiasts from the bay to lakes.
Additional information regarding the City may be obtained at www.chulavistaca.gov
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Scope of Work
The City of Chula Vista is soliciting proposals from qualified firm s to serve as the City’s Underwriter in connection to the refunding of the Chula Vista Municipal Financing Authority Special Tax Revenue Refunding Bonds, Series 2013 and intends to engage the Underwriter for the defined scope of work detailed in this Request for Proposal
In order to assist the City, the firm selected as Underwriter will be required to have the capabilities to perform the following services including but not limited to:
A. Provide review and comment on all documents related to the financing.
B. Optimizing the overall debt structure.
C. Working with the financing team to seek the highest possible credit ratings for the proposed bonds.
D. Assisting the financing team to assess the benefits of credit enhancement for the bonds.
E. Advising the financing team regarding the timing, sizing and structure of the bond issue.
F. Developing and executing a marketing plan that will result in the most favorable for the bonds.
G. Assist in the preparation of the official statement and other legal and disclosure documents used in connection with the sale of bonds.
H. Participate in meetings with and presentations to the City Council, City Staff, consultants, rating agencies, and insurance companies.
I. Keeping the City apprised of regulatory developments, as appropriate.
J. Providing assistance in closing the bond issue.
K. Preparing post-sale analyses, including but not limited to, information on placement of the bonds, market conditions at the time of sale, orders, designations, allocations, and results of comparable sales.
The above list is not meant to constitute an exhaustive list of duti es. A firm selected may be called upon to provide other services not identified here in connection with a particular transaction.
In addition, the City expects the Underwriters, as part of their responsibilities to investors under the Federal Securities Laws, to conduct such review as is necessary to attain a reasonable basis for belief in the accuracy and completeness of the key representations in the Official Statement.
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Proposal Form and Content
The City will accept proposals in accordance with the instructions and specifications in this Request for Proposal (RFP).
A. Provide one (1) original PDF document uploaded in PlanetBids on or before the date identified in this RFP.
B. Cover Letter
a. Each response should include a cover letter no longer than two pages. In the letter please specify whether you wish to be considered for the position of senior manager, co - manager or both. Please note that the City reserves the right to assign firms proposing as senior manager to a co-manager position.
C. Firm Information
a. Provide a brief description of your firm and its experience underwriting Community Facilities Districts Special Tax Revenue Bonds.
b. Provide a table, with a grand total, of all California Special Tax Revenue Bond transactions on which the firm has served as senior or co -manager since January 1, 2020. Specifically identify the firm’s role, the staff members involved, the underlying rating(s) on the transaction, and any credit enhancement used.
D. Qualifications and Experience of Assigned Personnel
a. Identify the members of your firm who will be assigned to this project, and provide the office location, telephone number and e-mail address of each. Identify the day-to -day project manager and the back-up project manager, if any, for this engagement. b. Provide the name, address, email address and telephone number of three references for California municipalities for whom the proposed project manager and the back-up project manager have served as underwriter since 20 20 carrying out similar responsibilities to those contemplated under this RFP.
E. Approach to Work
a. The Proposer must describe the firm’s envisioned approach or strategy for marketing the Bonds to potential bond investors , as well as describe its ability to market special tax revenue bonds at the lowest yields during the current uncertain interest rate environment. Your approach may include evaluating and rec ommending different financial strategies, if any, that are in compliance with the Mello -Roos Act for refunding community facilities district bonds. Please also identify how the City might strengthen the interest in the credit by potential bond investors, s uch as the use of a fully or partially funded reserve fund instead of purchasing a surety bond .
F. Legal Issues and Potential Conflict of Interest
The proposal must provide the following information:
a. Conflict of Interest: Public finance underwriting is subject to regulation by federal and state regulatory agencies and self -regulatory organizations, inc luding the Securities and RFP P09-2024 September 29, 2023
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Exchange Commission (SEC) and the Municipal Securities Rulemaking Board (MSRB).
When acting as an underwriter, MSRB rules require that the firms provide certain disclosures to the issuers of bonds to clarify the role of an underw riter, for example as compared to that of a municipal advisor. Disclose any existing or contemplated relationship with any other person or entity, including relationships with any parent, subsidiary or affiliated firm, which would constitute an actual or potential conflict of interest or appearance of impropriety, relating to other clients/customers of the Respondent or former officers and employees of the Agencies and their Affiliates, in connection with your rendering services enumerated in this RFP. If a conflict does or might exist, please describe how your firm would eliminate or prevent it. Indicate what procedures will be followed to detect, notify the Agencies of, and resolve any such conflicts.
b. Any pending investigations of the firm and any enforcement, settlements, or disciplinary actions taken within the past five years by any regulatory body. c. The firm’s affiliation or relationship, if any, with any broker-dealer. d. Any finder’s fee, fee splitting, payments to consultants, or other contractu al arrangements of the firm that could present a real or perceived conflict of interest. e. Registration with appropriate regulatory bodies.
G. Cost Proposal
Please provide the following costs:
a. Takedown
b. Management Fee
c. Expenses
Evaluation Method
All proposals shall be reviewed to verify that the Proposer has met the minimum requirements. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the G eneral Terms and Conditions , will be eliminated from further consideration. Proposals will be reviewed and evaluated by an evaluation committee comprised of City of Chula Vista personnel. Award will be made in the best interest of the City of Chula Vista.
Evaluation Criteria
The award to the successful Underwriter will be based upon response to the requirements outlined in this RFP, and an estimate of the quality and effectiveness of each Underwriter’s services in the following areas (not listed in order of importance):
a. Relevant experience and qualifications of the firm
b. Record of past performance of the firm and individual staff in client relationship and delivering services on scope, quality, schedule, and budget. c. Approach to work.
d. Legal issues or conflicts.
e. Cost Proposal.
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GENERAL CONDITIONS
Evaluation
The Purchasing Agent along with the Department Representatives will evaluate responses. The City reserves the right to reject any or all responses and to waive any irregularity or informality in any response to the extent permitted by law. All respondents are responsible for reading the attached specifications, terms and conditions, Performance Standards, General Conditions, and General Provisions, which are considered part of your bid and any contract awarded.
Award
It is the City’s intent to award this contract to a single contractor based on the primary services (as outlined on PlanetBid s).
However, the city retains the ability to utilize alternate contractor/s in the event the awarded contractor is unable to provide services in the time outlined by the city. The award will be made to the lowest, responsive and responsible bidder who, in the City's sole judgement, has the necessary experience, skill, business standing, equipment, staffing, and financial stability to properly maintain the City's bid. The extent to which the respondent proposes to subcontract work will also be a consideration in award.
This RFP does not commit the City to award a contract, to pay any costs incurred in the preparation of the proposal to this request, or to procure or contract for services or supplies. The City reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with any qualified source, or to cancel in part or entirely this RFP, if it is in the best interest of the City to do so. The City further reserves the right to waive any technicalities or minor irregularities in bids received. The City may require the selected respondent to participate in negotiations and to submit such price, technical or other revisions of their proposals as may result from negotiations. The City shall be the sole judge in determining award of contract.
Local Business Consideration
According to the Chula Vista Municipal Code, Chapter 2.56.080, letter G, In accordance with Section 1011 of the Charter, in the event two or more bids are received which are for the same total amount or unit price and in all other respects are equal, the contract shall be awarded to a local respondent. In the event, however, that such tie bids are all from vendors either wholly inside or all outside of the city, then the contract shall be awarded by drawing lots in public. In evaluating bids for award, the City of Chula Vista considers the 1% sales tax allocated back to the City from vendors located in Chula Vista.
PUBLIC DISCLOSURE
All proposals submitted in response to this RFP become the property of the City and public records, and as such may be subject to public review. Under the California Public Records Act (California Government Code Section 6250 et seq.) records in the custody of a public entity generally have to be discl osed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255.
A cover letter should be provided with the proposal containing a paragraph that states whether or not Vendor believes that its proposal does or does not contain information that falls into one of the exemptions of Government Code Sections 6254 through 6255 and whether or not Vendor considers such information to be confidential.
In the absence of a declaration, the City may be obligated to disclose the proposal to any party that requests it. Regardles s of assertions of confidentiality, proposal contents may still be disclosed if City, or a court with juris diction, determines that such proposal is a public record requiring disclosure.
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Payment Terms
Fees are contingent and will be paid from bond proceeds at bond closing.
Business License
A Business License is required as outlined in the Chula Vista Municipal Code Section 5.02.020, which states: It is unlawful for any person, or for any person as agent, clerk or employee, either for himself or for any other person, within the corporate limits of the City, to transact, engage in, or carry on any business, show, exhibition or game hereinafter specified without first having procured a license.
____________________
Signature
____________________
Date
This page must be completed and returned with response.
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PROPOSAL GENERAL PROVISIONS
Please Read Carefully
These Provisions Are a Part of Your Proposal and any Contract Awarded
The bidder agrees that:
A. Bidder has carefully examined the specifications, and all provisions relating to the item(s) to be furnished or the work to be done; understands the meaning, intent, and requirements; and B. Bidder will enter into a written contract and furnish the item(s) or complete the work in the time specified, and in strict conformity with the City of Chula Vista specifications for the prices quoted.
Note: Bidder is defined as any individual, partnership, or corporation submitting a bid, proposal, or quotation in response to a request for bid, request for proposal, or request for quotation. A bidder may also be referred to as consultant, contractor, operator, supplier, or vendor.
Bid is defined as any bid, proposal, or quotation submitted in response to this solicitation.
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3. Verify Quotations
Prices shall be verified prior to bid submittal, as withdrawal or correction may not be permitted after the bid has been opened.
4. Firm Prices
Prices on bid shall be firm prices not subject to escalation.
5. Modification or Withdrawal of Bids
Bids may be modified or withdrawn by written or facsimile notice received prior to the exact hour and date specified for receipt of bid. A bid may also be withdrawn in person by a bidder, or authorized representative, prior to the exact hour and date set for receipt of bids. Telephone withdrawals are not permitted.
6. Late Bids, Modifications, or Withdrawals
a) Bids, modifications of bids, or bid withdrawals received after the exact time and date specified for receipt will not be considered unless receipt is before the contract is awarded and the City determines that late receipt was due solely to City error.
b) Modification of a successful bid that makes the terms of the bid more favorable to the City will be considered at any time.
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7. Mistake in Bid
a) If the bidder discovers a mistake in bid prior to the hour and date specified for receipt of bid, bidder may correct the mistake by modifying or withdrawing the bid in accordance these provisions.
b) If within seventy-two hours of the bid closing and prior to the issuance of a purchase order or a contract, the bidder discovers a mistake in its bid of a serious and significant nature which is unfavorable to bidder, bidder may request consideration be given to modifying the bid if it remains the lowest bid or to withdrawal of the bid if the result of the correction of the mistake makes another bidder lowest and best bidder. The mistake must be evident and provable. The right is reserved by the City to reject any and all requests for correction of mistakes in bids received after the hour and date of the bid closing. The decision of the Purchasing Agent is final as regards acceptance or rejection of requests for correction of bids.
c) A mistake in bid cannot be considered once a purchase order or contract is issued.
8. Signature
All bids shall be signed, and the title and firm name indicated. A bid by a corporation shall be signed by an authorized officer, employee or agent with his or her title.
9. Alternative Proposals
To be responsive to the bid, bidder must submit a proposal that meets all specific bid requirements. Once bidder has proposed a product which is responsive to the specification, bidder may include with the bid any additional proposals or alternative products that bidder believes can meet or exceed the City’s requirements and that may offer additional advantages, benefits, or cost savings. The City reserves the righ t to evaluate, and accept or reject, such alternatives as though they were part of the original specifications without advertising for further bids, when in the best interests of the City. Any awards so made will be based on operational and cost analysis considerations that would result in the optimum economic advantage to the City.
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12. Litigation Warranty
The bidder, by bidding, warrants that bidder is not currently involved in litigation or arbitration concerning the materials or bidder’s performance concerning the same or similar material or service to be supplied pursuant to this contract of specification, and that no judgments or awards have been made against bidder on the basis of bidder’s performance in supplying or installing the same or similar material or service, unless such fact is disclosed to the City in the bid. Disclosure may not disqualify the bidder. The City reserves the right to evaluate bids on the basis of the facts surrounding such litigation or arbitration and to require bidder to furnish the City with a surety bond executed by a surety company authorized to do bus iness in the State of California and approved by The City of Chula Vista in a sum equal to one hundred percent (100%) of the contract price conditional on the faithful performance by bidder of the contract in the event the bid is awarded to bidder, notwithstanding the litigation or arbitration.
13. Performance Standards
Performance of work and acceptability of equipment or materials supplied pursuant to any contract or award shall be to the satisfaction of the City.
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15. Addenda
The effect of all addenda to the bid documents shall be considered in the bid and said addenda shall be made part of the bid documents and shall be returned with them. Before submitting a bid, each bidder shall ascertain whether or not any addenda have been issued, and failure to cover in this bid any such addenda issued may render the bid invalid and result in its rejection.
16. Specifications to Prevail
The detailed requirements of the specifications shall supersede any conflicting reference in these General Provisions that are in conflict therewith.
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18. Conflict of Interest
No City employee or elected or appointed member of City government, or member of the employee’s immediate family, may participate directly or indirectly in the procurement process pertaining to this bid if they:
a) Have a financial interest or other personal interest that is incompatible with the proper discharge of their official duties in the public interest or would tend to impair their independence, judgment or action in the performance of their official duties.
b) Are negotiating for or have an arrangement concerning prospe ctive employment with bidder. The bidder warrants to the best of his knowledge that the submission of the bid will not create such conflict of interest. In the event such a conflict occurs, the bidder is to report it immediately to the Purchasing Agent.
For breach or violation of this warranty, the City shall have the right to annul this contract without liability at its discretion, and bidder may be subject to damages and/or debarment or suspension.
19. Gratuities
The City may rescind the right of the bidder to proceed under this agreement if it is found that gratuities in the form of entertainment, gifts, or otherwise are offered or given by the bidder, or any agent or representative of the bidder, to any officer or employee of the City with the intent of influencing award of this agreement or securing favorable treatment with respect to performance of this agreement.
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21. Insurance
Bidder shall provide proof of liability and property damage insurance prior to performance of duties. Coverage shall be from a company authorized to transact business in the State of California and shall be in an amount not less than $1,000,000 combined single limit (CSL), unless otherwise specified. The City of Chula Vista shall be named as an additional insured and thirty (30) days’ notice of cancellation shall be indicated. Work er’s Compensation coverage for each employee engaged in work on City premises is required. Bidder is solely responsible for all insurance premium payments.
22. Indemnification
Bidder shall defend, indemnify, protect and hold harmless the City, its elected an d appointed officers, employees, and agents, from and against all claims for damages, liability, and expenses (including attorney’s RFP P09-2024 September 29, 2023
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fees) arising out of this agreement and/or bidder’s performance hereunder, except as to such damages, liability, and expenses due to the sole negligence or willful acts of the City, its officers, employees or agents.
23. Award of Contract
a) Bids will be analyzed, and award will be made to the lowest, responsive and responsible bidder whose bid conforms to the solicitation and whose bid is considered to be most advantageous to the City, price and other factors considered. Factors to be considered may include, but are not limited to: bidder’s past performance, total unit cost, economic cost analysis, life cycle costs, warranty and quality, maintenance cost, durability, the operational requirements of the City and any other factors which will result in the optimum economic benefit to the City.
b) The City reserves the right to reject any item or items, to waive informalities, technical defects and minor irregularities in bids received; and to select the bid(s) deemed most advantageous to the City. The City will, however, consider bids submitted on an “all or nothing” basis if the bid is clearly designated as such.
c) The City reserves the right to award one or more contracts on the bids submitted, either by award of all items to one bidder or by award of separate items or groups of items to various bidders as the interests of the City may require, unless the bidder clearly specifies otherwise in his bid.
d) For the purpose of evaluating bids for multiple awards, the sum of $100.00 is considered to be the administrative cost to the City for issuing and administering each contract awarded under this solicitation, and individual awards will be made for the items and combinations of items which result in the lowest aggregate price to the City, including such administrative cost.
e) Upon acceptance by the City of Chula Vista, the solicitation, bid, proposal, or price quotation and a purchase order issued to the successful bidder shall be deemed to result in a binding contract incorporating those terms and these General Provisions without further action required by either party. Items are to be furnished as described in the bid and in strict conformity with all instructions, conditions, specifications, and provisions in the complete contract, as defined by this clause 28 or any related integrated agreement.
24. Protests
Protests by unsuccessful bidders to the selection for award shall be submitted in writing to the Purchasing Agent no later than ten (10) calendar days after award recommendation. The unsuccessful bidder shall have the right to appear at the City Council to protest any award to be confirmed by Council. Failure to submit a timely written protest to the Purchasing Agent shall bar consideration of such protest.
25. Documentation
Due to the time constraints that affect contract performance, all required documents, certificates of insurance and bonds shall be provided to the City within ten (10) calendar days following award or date of request by City, whichever is later. Any failure to comply may result in bid being declared non- responsive and rejected, and at City’s option the bid bond may be attached for damages suffered.
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27. Document Ownership
a) All technical documents and records originated or prepared pursuant to this contract, including papers, reports, charts, and computer programs, shall be delivered to and become the exclusive property of the City and may be copyrighted by the City. Bidder assigns all copyrights to City by undertaking this agreement
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b) All inventions, discoveries, enhancements, changes , or improvements of computer programs developed pursuant to this contract shall be the property of the City, and all patents or copyrights shall be assigned to City, unless otherwise agreed. Bidder agrees that City may make modifications to computer software furnished by bidder without infringing bidder’s copyright or any license granted to City.
28. Advertisements, Product Endorsements
City employees and agencies or organizations funded by the City are prohibited from making endorsements, either implied or direct, of commercial products or services without written approval of the City Manager. No bidder may represent that the City of Chula Vista has endorsed their product or service without the Purchasing Agent’s prior written approval.
29. City Provisions to Prevail
Except as indicated in the specifications, the City’s standard General Provisions shall govern any contract award.
Any standard terms and conditions of bidder submitted by bidder shall not be acceptable to City unless expressly agreed to by the City. The City reserves the right to reject bidder’s bid as non- responsive, to consider the bid without bidder’s standard terms and conditions, or to require bidder to delete reference to such as a condition of evaluation or award of the bid. If, after award of con tract, bidder (contract vendor) shall provide materials or services accompanied by new or additional standard terms or conditions, they too shall be considered void and City may require deletion as a further condition of performance by Bidder. To the exte nt not otherwise provided for by the contract documents, the California Commercial Code shall apply.
30. Invalid Provisions
In the event that any one or more of the provisions of this agreement shall be found to be invalid, illegal or unenforceable, the remaining provisions shall remain in effect and be enforceable.
31. Amendments and Modifications
The Purchasing Agent may at any time, by written order, and without notice to the sureties, make a modification to the contract or an amendment to the Purchase Order, within the general scope of this contract, in (1) quantity of materials or service, whether more or less; (2) drawings, designs, or specifications, where the supplies to be furnished are to be specially manufactured for the City; (3) method of shipm ent or packing; and (4) place of delivery. If any such change causes an increase or decrease in the cost or the time required for the performance of this contract, an equitable adjustment shall be made by written modification of the contract or amendment to the Purchase Order. Any claim by the bidder for adjustment under this clause must be asserted within 30 calendar days from the notification date.
32. Assignment
Bidder shall not assign or delegate duties or responsibilities under this agreement, in whole or in part, without prior written approval of the City.
33. Disputes
Except as otherwise provided in these provisions, any dispute concerning a question of fact arising under this contract which is not disposed of by agreement shall be decided by the Purchasing Agent, who shall reduce this decision to writing and mail a copy to the bidder. The decision of the Purchasing Agent shall be final and conclusive, unless bidder requests mediation within ten (10) calendar days. Pending final decision of a dispute, the bidder shall proceed diligently with the performance of the contract and in accordance with the Purchasing Agent’s decision.
34. Mediation
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Should an unresolved dispute arise out of this agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within thirty (30) days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitratio n Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a Blindfold@ process.
The cost of mediation shall be borne equally by both parties. Neither party shall be deemed the prevailing party.
No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last unti l agreement is reached by the parties but not more than sixty (60) days, unless the maximum time is extended by both parties.
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35. Lawful Performance
Bidder shall abide by all Federal, State and Local Laws, Ordinances, Regulations, and Statutes as may be related to the performance of duties under this agreement. In addition, all applicable permits and licenses required shall be obtained by the bidder, at bidder’s sole expense.
36. Business License
Chula Vista Municipal Code Section 5.02.020 requires all firm/entities doing business with the City to obtain a Business License. Section 5.02.20 states: It is unlawful for any person, or for any person as agent, clerk or employee, either for himself or for any other person, within the corporate limits of the City, to transact, engage in, or carry on any business, show, exhibition or game hereinafter specified without first having procured a license.
37. Annual Appropriation of Funds
Multi-year term supply and service contracts and leases are subject to annual appropriation of funds by the City Council. Payments made under term contracts and leases are considered items of current expense. Purchase Orders are funded when issued; therefore, they are c urrent expense items and are not subject to any subsequent appropriation of funds.
In the event sufficient funds are not appropriated for the payment of lease payments or anticipated term contract payments required to be paid in the next occurring lease or contract term, and if no funds are legally available from other sources, the lease or contract may be terminated at the end of the original term or renewal term and the City shall not be obligated to make further payments beyond the then current original or renewal term. The City will provide notice of its inability to continue the lease or contract at such time as the Purchasing Agent is aware of the non -appropriation of funds. However, failure to notify does not renew the term of the lease or contract. The City has no monetary obligation in event of termination or reduction of a term contract since such contracts represent estimated quantities and is not funded as a contract except to the extent of the Purchase Orders issued.
38. Extension
When in the City’s best interest, this agreement may be extended on a daily, month-to- month, or annual basis by mutual agreement of both parties. Services and/or materials received under an extension shall be in accordance with pricing, terms, and conditions, as described herein.
39. Debarment
The Purchasing Agent may recommend to the City Council that the person or business be debarred from consideration for award of contracts. The period of debarment will be contingent upon the severity of cause.
Causes for debarment include:
a) Conviction under state or federal statutes of embezzlement, theft, forgery, bribery, falsification or destruction of records, receiving stolen property, or other offense indicating a lack of business integrity or business honesty
b) Violation of contract provisions which is regarded by the Purchasing Agent to be so serious as to justify debarment action, including:
i. Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract; or
ii. A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts, or
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iii. Two or more claims of computational error in bid submission within a two-year period.
c) Debarment by another governmental entity.
d) Any other cause the Purchasing Agent deems to be so serious and compelling as to affect responsibility as a City bidder. A bidder may be permanently debarred for the following causes:
i. Collusion in bidding
ii. Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a contract or subcontract with the City of Chula Vista or in the performance of such contract or subcontract.
iii. Conviction under State or Federal antitrust statutes arising out of the submission of bids or proposals.
40. Venue
This agreement shall be governed by and interpreted according to the laws of the State of California, and venue for any proceeding shall be in the County of San Diego.
(REV February 2021)