EXHIBIT A
SCOPE OF SERVICES
Consultant shall provide the following California • Environmental Quality Act ("CEQA") environmental and regulatory permitting services for the East-West Bicycle Path project:
Task 1 - Conduct CEQA Initial Study Checklist Analysis
• Focus areas are anticipated to include:
construction phase air quality, greenhouse gasses, noise • construction phase analysis - biological resources, hydrology and water quality, cultural resources, hazards and hazardous materials, traffic and transportation, • operations phase - safety and water quality - appropriate signage and trash disposal.
Task 2 - Conduct technical studies to support the Initial Study Project-level construction phase analysis
• air quality, greenhouse gasses, noise
• biological resources (records search and field survey) • cultural resources and Native American Heritage Commission ("NAHC") (records search and review)
Task 3 - Preparation of CEQA Notice of Exemption
Task 4 - Regulatory Permits
• Technical assistance for preparation of railway easement encroachment permit Task 5 - Project Management and Coordination
EXHIBIT B
RATE SCHEDULE
Principal in Charge $300.00/hr
Project Manager $250.00/hr
Senior Biologist/Botanist $200.00/hr
Senior Regulatory Specialist $200.00/hr
Associate Biologist/Botanist $180.00/hr
Licensed Herbicide Applicator $160.00/hr
Senior Cultural Resources Specialist $200.00/hr
Assoc. Cultural Resources Specialist $180.00/hr
Principal Environmental Planner $200.00/hr
Assoc. Environmental Planner $180.00/hr
CADD/GIS Technician $160.00/hr
Word Processor $90.00/hr
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting Consultant's indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as insurance Services Office form CG 00 01, in an amount not less than $1,000,000.00 per occurrence, $2,000,000.00 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted.
Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000.00 combined single limit for each accident.
Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
Workers' compensation insurance. Consultant shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000.00).
Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.
Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his agents, representatives, employees or subconsultants.
Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured.
City's rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
Enforcement of contract provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability.
The policyies) shall not contain any cross-liability exclusions.
Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
City's right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant's compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by the City. The City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by the City.
Timely notice of claims. Consultant shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
CITY COUNCIL
ITEM NO. 5.12
CITY OF INDUSTRY
MEMORANDUM
TO: Honorable Mayor Moss and Members of the City Council FROM: Joshua Nelson, City Manager Gr
Mathew Hudson, Engineering Manager; James Cramsie, Director of STAFF: Engineering, CNC Engineering; Justin Aguilar, Field Operations Project Manager, CNC Engineering
DATE: October 27, 2022
SUBJECT:
Consideration of a Maintenance Services Agreement with Blake Air Conditioning & Service Co., Inc., for routine maintenance at various Citywide facilities, in an amount not-to-exceed $ 156,992.00, through October 27, 2024
BACKGROUND
HVAC services are an important aspect of maintaining a safe operating environment. The City owns the El Encanto Healthcare and Habilitation Center ("El Encanto") property, City Hall, Industry Business Council property, and the facility that currently houses the USPS and Youth Activities League. These four (4) facilities require regular inspection and maintenance to support the robust working environments at each of these locations. An essential system requiring routine maintenance at these facilities is the HVAC equipment which includes cooling towers, water pumps, packaged air conditioning units, boilers, and much more. Currently, Staff have dealt with ongoing issues to repair and restore the HVAC systems at each of these locations that may have been avoided through proper preventative maintenance.
DISCUSSION
Blake Air Conditioning & Service Co., Inc. ("Blake AC") has a reputation of providing quality routine maintenance of HVAC equipment throughout Southern California. Blake AC's services are already being used by the City at several facilities including City Hall, the Industry Business Council ("IBC") building, the Youth Activities League building, and the Expo Center. They have a proven track record and have developed a reliable partnership in maintenance and service with the City that far exceeds other commercial HVAC contractors used. Under this new Maintenance Service Agreement, Blake AC would provide routine HVAC maintenance at four (4) City facilities including City Hall, IBC/council chambers building, YAL/Post Office, and El Encanto. The service covers monthly inspections of each facility and regularly scheduled maintenance on cooling towers, air handlers, water-cooled chillers, air-cooled chillers, packaged air conditioning, boilers, water pumps, and associated HVAC equipment, as outlined. Staff is recommending the City Council approve the Maintenance Services Agreement with Blake AC for a two-year term, in an amount not-to-exceed $156,992.00.
FISCAL IMPACT
The fiscal impact is $156,992.00 over two years. This is budgeted in the adopted Fiscal Year 2022- 2023 Budget, under Account No. 100-620-8510.
RECOMMENDATION
Staff recommends that the City Council approve the Maintenance Services Agreement with Blake AC.
Attachments
A. Maintenance Services Agreement with Blake Air Conditioning & Service Company, Inc., dated October 27, 2022
ATTACHMENT A
CITY OF INDUSTRY
MAINTENANCE SERVICES AGREEMENT
This MAINTENANCE SERVICES AGREEMENT ("Agreement"), is made and effective as of October 27, 2022 ("Effective Date"), between the City of Industry, a municipal corporation ("City") and Blake Air Conditioning & Service Co., Inc., a California corporation (Contractor"). The City and Contractor are hereinafter collectively referred to as the "Parties".
RECITALS
WHEREAS, City desires to engage Contractor to perform the services described herein, and Contractor desires to perform such services in accordance with the terms and conditions set forth herein.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Contractor agree as follows:
1. TERM
This Agreement shall commence on the Effective Date, and shall remain and continue in effect until tasks described herein are completed, but in no event later than October 27, 2024, unless sooner terminated pursuant to the provisions of this Agreement.
2. SERVICES
(a) Contractor shall perform the tasks ("Services") described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full ("Scope of Services"). Tasks other than those specifically described in the Scope of Services shall not be performed without prior written approval of the City. The Services shall be performed by Contractor, unless prior written approval is first obtained from the City. (b) City shall have the right to request, in writing, changes to the Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement.
(c) Contractor shall perform all Services in a manner reasonably satisfactory to the City and in a first-class manner in conformance with the standards of quality normally observed by an entity providing routine HVAC maintenance, serving a municipal agency.
(d) Contractor shall comply with all applicable federal, state, and local laws, regulations and ordinances in the performance of this Agreement, including but not limited to, the conflict-of-interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.)). During the term of this Agreement, Contractor shall not perform any work for another person or entity for whom Contractor was not working on the Effective Date if both (i) such work would require
Contractor to abstain from a decision under this Agreement pursuant to a conflict-of- interest statute or law; and (ii) City has not consented in writing to Contractor's performance of such work. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Contractor hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Contractor was an employee, agent, appointee, or official of the City in the previous twelve (12) months, Contractor warrants that it did not participate in any manner in the forming of this Agreement. Contractor understands that, if this Agreement is made in violation of Government Code §1090 et. seq., the entire Agreement is void and Contractor will not be entitled to any compensation for Services performed pursuant to this Agreement, and Contractor will be required to reimburse the City for any sums paid to the Contractor. Contractor understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California. (e) Contractor represents that it has, or will secure at its own expense, all licensed personnel required to perform the Services. All Services shall be performed by Contractor or under its supervision, and all personnel engaged in the Services shall be qualified and licensed to perform such services.
3. MANAGEMENT
City Manager shall represent the City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Contractor, but shall have no authority to modify the Services or the compensation due to Contractor.
4. PAYMENT
(a) The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B ("Rate Schedule"), attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed One Hundred Fifty Six Thousand Nine Hundred Ninety Two Dollars ($156,992.00) for the total Term of the Agreement unless additional payment is approved as provided in this Agreement. (b) Contractor shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City. Contractor shall be compensated for any additional services in the amounts and in the manner as agreed to by City and Contractor at the time City's written authorization is given to Contractor for the performance of said services.
(c) Contractor shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of Contractor's fees it shall give written notice to Contractor within thirty (30) days of receipt of
an invoice of any disputed fees set forth on the invoice. Any final payment under this Agreement shall be made within 45 days of receipt of an invoice therefore.
5. LABOR CODE AND PREVAILING WAGES
(a) Contractor represents and warrants that it is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "Public Works" and "Maintenance" projects. If the Services are being performed as part of an applicable "Public Works" or "Maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000.00 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and any location where the Services are performed. Contractor shall indemnify, defend and hold harmless, the City, its elected officials, officers, employees and agents, from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, Contractor's or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor, failure or alleged failure to comply with Prevailing Wage Laws.
In accordance with the requirements of Labor Code Section 1776, Contractor shall keep accurate payroll records which are either on forms provided by the Division of Labor Standards Enforcement or which contain the same information required by such forms. Contractor shall make all such records available for inspection at all reasonable hours.
(c) To the extent applicable, Consultant shall comply with the provisions of Section 1777.5 of the Labor Code with respect to the employment of properly registered apprentices upon public works.
(d) Contractor shall comply with the legal days work and overtime requirements of Sections 1813 and 1815 of the Labor Code. (e) If the Services are being performed as part of an applicable Public Works or Maintenance project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Agreement and require the same of any subcontractors, as applicable. This Services set forth in this Agreement may also be subject to compliance monitoring and enforcement by
the Department of Industrial Relations. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements.
6. SUSPENSION OR TERMINATION OF AGREEMENT
(a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Contractor at least ten (10) days prior written notice. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Contractor shall submit an invoice to the City pursuant to Section 5 of this Agreement.
7. OWNERSHIP OF DOCUMENTS
(a) Contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Contractor shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the representatives of City or its designees at reasonable times to review such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files, Contractor shall make available to the City, at the Contractor's office, and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Contractor hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by Contractor in the course of providing the services under this Agreement. All reports, documents, or other written material developed by Contractor in the performance of the Services pursuant to this Agreement, shall be and remain the property of the City.
8. INDEMNIFICATION
(a) Indemnity for professional liability
When the law establishes a professional standard of care for Contractor's Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless the City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including legal counsel's fees and costs caused in whole or in part by any negligent or wrongful act, error or omission of Contractor, its officers, agents, employees or Subcontractors (or any agency or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement. (b) Indemnity for other than professional liability
Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor.
(c) DUTY TO DEFEND. In the event the City, its officers, employees, agents and/or volunteers are made a party to any action, claim, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this Agreement, and upon demand by City, Contractor shall have an immediate duty to defend the City at Contractor's cost or at City's option, to reimburse the City for its costs of defense, including reasonable attorney's fees and costs incurred in the defense of such matters.
Payment by City is not a condition precedent to enforcement of this indemnity. In the event of any dispute between Contractor and City, as to whether liability arises from the sole negligence of the City or its officers, employees, or agents, Contractor will be obligated to pay for City's defense until such time as a final judgment has been entered adjudicating the City as solely negligent. Contractor will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney's fees, expert fees and costs of litigation.
9. INSURANCE
Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached hereto and incorporated herein by reference.
10. INDEPENDENT CONTRACTOR
(a) Contractor is and shall at all times remain as to the City a wholly independent Contractor and/or independent contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractors exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against the City, or bind the City in any manner. (b) No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing | services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder.
(c) Contractor shall indemnify, defend and hold harmless, the City, its elected officials, officers, employees and agents, from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including contributions to any retirement and/or pension plan, legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, Contractor's or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractor of Contractor, service as an independent contractor. The indemnity provisions set forth in this Section 10(c) shall survive the termination of this Agreement, and are in addition to any other rights or remedies the City may have under the law.
11. LEGAL RESPONSIBILITIES
The Contractor shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this Section.
12. UNDUE INFLUENCE
Contractor declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City has or will receive compensation, directly or indirectly, from Contractor, or from any officer, employee or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.
13. NO BENEFIT TO ARISE TO LOCAL OFFICERS AND EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement.
14. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Contractor in performance of this Agreement shall be considered confidential and shall not be released by Contractor without City's prior written authorization. Contractor, its officers, employees, agents, or subcontractors, shall not without written authorization from the City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City, unless otherwise required by law or court order. (b) Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request ("Discovery"), court order, or subpoena from any person or party regarding this Agreement and the work performed there under or with respect to any project or property located within the city, unless Contractor is prohibited by law from informing the City of such Discovery, court order or subpoena. City retains the right, but has no obligation, to represent Contractor and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to Contractor in such proceeding, Contractor agrees to cooperate fully with the City and to provide the opportunity to review any response to discovery requests provided by Contractor. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
15. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (i) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail,
certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To City: City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
Attention: City Manager
With a Copy To: Casso & Sparks, LLP
13300 Crossroads Parkway North, Suite 410
City of Industry, CA 91746
Attention: James M. Casso, City Attorney
To Contractor: Blake Air Conditioning & Service Co., Inc. 1175 N. Osprey Circle
Anaheim, CA 92807
Attention: Peter Rodriguez, Service Manager
16. ASSIGNMENT
The Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City.
Before retaining or contracting with any subcontractor for any services under this Agreement, Contractor shall provide City with the identity of the proposed subcontractor, a copy of the proposed written contract between Contractor and such subcontractor which shall include and indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subcontractor carries insurance at least equal to that required by this Agreement or obtain a written waiver from the City for such insurance.
Notwithstanding Contractors use of any subcontractor, Contractor shall be responsible to the City for the performance of its subconsultant as it would be if Contractor had performed the Services itself. Nothing in this Agreement shall be deemed or construed to create a contractual relationship between the City and any subcontractor employed by Contractor. Contractor shall be solely responsible for payments to any subcontractors.
Contractor shall indemnify, defend and hold harmless the Indemnified Parties for any claims arising from, or related to, the services performed by a subcontractor under this Agreement.
17. GOVERNING LAW/ATTORNEYS' FEES
The City and Contractor understand and agree that the laws of the State of Califomia shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court in Los Angeles County, California. If any action at law or suit in equity is brought to enforce or interpret the provisions of this Agreement, or arising out of or relating to the Services provided by Contractor under
this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and all related costs, including costs of expert witnesses and Contractors, as well as costs on appeal, in addition to any other relief to which it may be entitled.
18. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the Parties relating to the obligations of the Parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein materian each party's own independent investigation of any and all facts such party deems
19. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
20. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
21. CAPTIONS
The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and shall have no significance in the interpretation of this Agreement.
22. WAIVER
The waiver by City or Contractor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Contractor unless in writing.
23. REMEDIES
Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies.
24. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Contractor represents and warrants that he/she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date.
"CITY" "CONTRACTOR"
City of Industry Blake Air Conditioning & Service
Co., Inc.
BY Joshua Nelson, City Manager By_
Peter Rodriguez, Service Manager
Attest:
BY Jule Gutierez Robies, Cily Clerk
Approved as to form:
By:_
James M. Casso, City Attorney
Attachments: Exhibit A Scope of Services
Exhibit B Rate Schedule
Exhibit C Insurance Requirements
EXHIBIT A
SCOPE OF SERVICES
Contractor shall provide the following maintenance services at various City facilities including City Hall, Industry Business Council/Council Chambers building, YAL/Post Office building, and El Encanto facility:
Cooling towers
Inspection Frequency: Monthly
Clear fan housing of any debris.
• Check fan belts for condition, adjust tension, if necessary. • Check fan bearings and lubricate, as necessary.
• Check sump screen for debris.
• Check eliminators for algae, scale, or corrosion.
• Check motor or mag starter.
• Check condition of spray nozzles.
• Check for leaks and overall condition.
Annual Service: Complete drain and flush service, access and clean around eliminators, rinse all residue to sump, flush and rinse sump, refill tower.
Air Handlers
Inspection Frequency: Six (6) times per year (every two months) • Check condition of evaporator coil.
• Check fan section for cleanliness and proper rotation. • Check condition of belts, if belt driven.
• Check condensate drain pans and piping.
• Change filters per Schedule B (Quarterly)
• Check insulation and unit overall condition.
• Check motors and bearings, lubricate, if necessary.
• Check controls and electrical connections.
Annual Service: Access evaporator coils for application of coil cleaning chemicals, rinse thoroughly.
Note: Access doors must be installed on all four air handlers before chemical cleaning.
Water-Cooled Chillers
Inspection Frequency: Six (6) times per year (every two months) Check compressor oil level and refrigerant level.
• Check suction and discharge pressures.
Measure and record system superheat and subcooling.
• Check controls, function, and settings.
Check contactors, expansion valve for leaks, and strainers. • Check water piping and valves for leaks, check strainers. • Check electrical wiring and connections.
Annual Service: Testing of all performance parameters, temperature and pressure verification, leak check of refrigerant circuit and exterior piping, and thorough cleaning.
Air-Cooled Chillers
Inspection Frequency: Six (6) times per year (every two months) • Check suction and discharge pressures.
• Check liquid line sight glass/moisture indicator.
• Measure and record system superheat and subcooling.
• Inspect coils for dirt and debris and clean, if necessary.
Open disconnect switch. Manually rotate O.D. fan for orifice clearance.
Check fan mounts and tighten set screws, if necessary.
• Check controls, function, and settings.
• Check contactors, expansion valve sensing bulb, and bulb insulation. • Check water piping and valves for leaks, check strainers. • Check electrical wiring and connections.
Packaged Air Conditioning
Inspection Frequency: Four (4) times per year (every three months) • Check coils for overall condition.
• Clean outdoor coil annually, before summer cooling season. • Check condensate drain pan and drainage piping.
• Change filter per Schedule B (Quarterly)
• Check for refrigerant leaks.
• Check temperatures (split difference).
• Check electrical wiring and connections.
• Check fan rotation and lubricate motor bearings, if necessary. • Check contactors, safety controls, and compressor.
Boilers
Inspection Frequency: Four (4) times per year (every three months) • Check combustion. Flame quality and balance.
• Check fill water controls and valves.
• Check water pressure regulator and pressure relief valve. • Check gas valve and control settings.
• Adjust controls per seasonal requirements.
• Blow down boiler, drain and recharge expansion tank.
• Check overall condition.
Aerco Boilers
Inspection Frequency: Four (4) times per year (every three months) • Check spark ignitor for condition and operation.
• Check flame detector for condition and operation.
• Check combustion settings and re-calibrate, if necessary.
• Check safety devices and overall operation.
•Annual Service: Dismantle burner section, clean and inspect heat exchanger (firebox), clean inspect burners, assure proper combustion and flame quality.
Water Pumps
Inspection Frequency: Twice (2) per year (every six months) • Check motor and bearings, lubricate, if necessary.
• Check strainers and check seals visually for leakage. • Observe alignment and overall condition.
EXHIBIT B
RATE SCHEDULE
Quarterly Rate Annual Rate
El Encanto (MP 07-24 #1) $9,051.00 $36,204.00
City Hall (MP 03-24 #2) $4,663.00 $18,652.00
IBC (MP 03-24 #4) $4,157.00 $16,628.00
YAL/Post Office (MP 03-24#11/MP $1,753.00 $7,012.00
15-05)
Total per year $78,496.00
Total 2-year contract $156,992.00
Note: Cooling tower gasket and part replacement, air handler installation of access doors, Aerco boiler parts and opening of water box, and water-cooled chiller inspection of condenser tubes, Eddy current and other specialized testing are not included in this Agreement and must be billed separately.
......
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting Contractor's indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to the City.
General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000.00 per occurrence, $2,000,000.00 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO "insured contract" language will not be accepted.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000.00 combined single limit for each accident.
Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
Workers' compensation insurance. Contractor shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000.00).
Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers.
Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise
from or in connection with the performance of the Services hereunder by Contractor, his agents, representatives, employees or subcontractors.
Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured.
City's rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of Califomia, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subContractors.
Enforcement of contract provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non- compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability.
The policy(ies) shall not contain any cross-liability exclusions.
Pass Through Clause. Contractor agrees to ensure that its subcontractors, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with Contractors, subcontractors, and others engaged in the project will be submitted to City for review.
City's right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor's compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by the City. The City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by the City.
Timely notice of claims. Contractor shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
CITY COUNCIL
ITEM NO. 5.13
CITY OF INDUSTRY
MEMORANDUM
TO: Honorable Mayor Moss and Members of the City Council FROM: Joshua Nelson, City Manager
Mathew Hudson, Engineering Manager; Sean Calvillo, Director of STAFF: Operations, CNC Engineering; Justin Aguilar, Field Operations, CNC Engineering
DATE: October 27, 2022
SUBJECT: Consideration of a Maintenance Services Agreement with Chem Pro Laboratory, Inc., for routine maintenance in an amount not-to-exceed $26,000.00 through October 27, 2024
BACKGROUND
El Encanto Heath and Habilitation Center ("El Encanto"), City of Industry City Hall, the Industry Business Council ("IBC"), and the YAL/Post Office buildings all have water treatment equipment that is vital to daily operations. Routine monitoring and maintenance services of this equipment is an essential and on-going activity for maintaining health and safety of staff, customers, and residents.
DISCUSSION
Chem Pro Laboratory, Inc. ("Chem Pro") has a reputation of providing quality water treatment products and services throughout Southern California. Under this new Maintenance Service Agreement, Chem Pro would provide routine maintenance at El Encanto, City Hall, IBC, and the YA/Post Office buildings. Staff is recommending the City Council approve the Maintenance Services Agreement with Chem Pro for a two-year term in an amount not to exceed $26,000.00.
FISCAL IMPACT
This fiscal impact associated with this action will be $13,000.00 annually for two years for a not-to- exceed amount of $26,000.00. This is budgeted for in the adopted Fiscal Year 2022-2023 General Fund in Account No. 100-620-8510.
RECOMMENDATION
Staff recommends that the City Council approve the Maintenance Services Agreement with Chem Pro Laboratory, Inc.
Attachments
A. Maintenance Services Agreement with Chem Pro Laboratory Inc. dated October 27, 2022
ATTACHMENT A
CITY OF INDUSTRY
MAINTENANCE SERVICES AGREEMENT
This MAINTENANCE SERVICES AGREEMENT ("Agreement"), is made and effective as of October 27, 2022 ("Effective Date"), between the City of Industry, a municipal corporation ("City") and _Chem Pro Laboratory, Inc., a California corporation ("Contractor"). The City and Contractor are hereinafter collectively referred to as the "Parties".
RECITALS
WHEREAS, City desires to engage Contractor to perform the services described herein, and Contractor desires to perform such services in accordance with the terms and conditions set forth herein.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Contractor agree as follows:
1. TERM
This Agreement shall commence on the Effective Date, and shall remain and continue in effect until tasks described herein are completed, but in no event later than October 27, 2024, unless sooner terminated pursuant to the provisions of this Agreement.
2. SERVICES
(a) Contractor shall perform the tasks ("Services") described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. ("Scope of Services"). Tasks other than those specifically described in the Scope of Services shall not be performed without prior written approval of the City. The Services shall be performed by Contractor, unless prior written approval is first obtained from the City. In the event of conflict or inconsistency between the terms of this Agreement and Exhibit A, the terms of this Agreement shall prevail.
(b) City shall have the right to request, in writing, changes to the Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement.
(c) Contractor shall perform all Services in a manner reasonably satisfactory to the City and in a first-class manner in conformance with the standards of quality normally observed by an entity providing routine monitoring of water treatment equipment, serving a municipal agency.
Contractor shall comply with all applicable federal, state, and local laws, regulations and ordinances in the performance of this Agreement, including but not limited to, the conflict of interest provisions of Government Code Section 1090 and the
Political Reform Act (Government Code Section 81000 et seq.)). During the term of this Agreement, Contractor shall not perform any work for another person or entity for whom Contractor was not working on the Effective Date if both (i) such work would require Contractor to abstain from a decision under this Agreement pursuant to a conflict of interest statute or law; and (ii) City has not consented in writing to Contractor's performance of such work. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Contractor hereby warrants that it is not now, nor has it been in the previous twelve (12) months, an employee, agent, appointee, or official of the City. If Contractor was an employee, agent, appointee, or official of the City in the previous twelve (12) months, Contractor warrants that it did not participate in any manner in the forming of this Agreement. Contractor understands that, if this Agreement is made in violation of Government Code §1090 et. seq., the entire Agreement is void and Contractor will not be entitled to any compensation for Services performed pursuant to this Agreement, and Contractor will be required to reimburse the City for any sums paid to the Contractor: Contractor understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California. (e) Contractor represents that it has, or will secure at its own expense, all licensed personnel required to perform the Services. All Services shall be performed by Contractor or under its supervision, and all personnel engaged in the Services shall be qualified and licensed to perform such services.
3. MANAGEMENT
City Manager shall represent the City in all matters pertaining to the administration of this Agreement, review and approval of all products submitted by Contractor, but shall have no authority to modify the Services or the compensation due to Contractor.
4. PAYMENT
(a) The City agrees to pay Contractor monthly, in accordance with the payment rates and terms and the schedule of payment as set forth in Exhibit B ("Rate Schedule"), attached hereto and incorporated herein by this reference as though set forth in full, based upon actual time spent on the above tasks. This amount shall not exceed Twenty Six Thousand Dollars ($26,000.00) for the total Term of the Agreement unless additional payment is approved as provided in this Agreement.
(b) Contractor shall not be compensated for any services rendered in connection with its performance of this Agreement which are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City. Contractor shall be compensated for any additional services in the amounts and in the manner as agreed to by City and Contractor at the time City's written authorization is given to Contractor for the performance of said services.
(c) Contractor shall submit invoices monthly for actual services performed. Invoices shall be submitted on or about the first business day of each month, or as soon thereafter as
practical, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the City disputes any of Contractor's fees it shall give written notice to Contractor within thirty (30) days of receipt of an invoice of any disputed fees set forth on the invoice. Any final payment under this Agreement shall be made within 45 days of receipt of an invoice therefore.
5.l LABOR CODE AND PREVAILING WAGES
(a) Contractor represents and warrants that it is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "Public Works" and "Maintenance" projects. If the Services are being performed as part of an applicable "Public Works" or "Maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000.00 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and any location where the Services are performed. Contractor shall indemnify, defend and hold harmless, the City, its elected officials, officers, employees and agents, from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, Contractor's or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor, failure or alleged failure to comply with Prevailing Wage Laws. (b) In accordance with the requirements of Labor Code Section 1776, Contractor shall keep accurate payroll records which are either on forms provided by the Division of Labor Standards Enforcement or which contain the same information required by such forms. Contractor shall make all such records available for inspection at all reasonable hours.
(c) To the extent applicable, Consultant shall comply with the provisions of Section 1777.5 of the Labor Code with respect to the employment of properly registered apprentices upon public works.
Contractor shall comply with the legal days work and overtime requirements of Sections 1813 and 1815 of the Labor Code. (e) If the Services are being performed as part of an applicable Public works or Maintenance project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the
Department of Industrial Relations. Contractor shall maintain registration for the duration of the Agreement and require the same of any subcontractors, as applicable. This Services set forth in this Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's sole responsibility to comply with all applicable registration and labor compliance requirements.
6. SUSPENSION OR TERMINATION OF AGREEMENT
(a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Contractor at least ten (10) days prior written notice. Upon receipt of said notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. (b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Contractor shall submit an invoice to the City pursuant to Section 5 of this Agreement.
7. OWNERSHIP OF DOCUMENTS
(a) Contractor shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Contractor shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Contractor shall provide free access to the representatives of City or its designees at reasonable times to review such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts or copies therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
(b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Contractor. With respect to computer files, Contractor shall make available to the City, at the Contractor's office, and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, copying and/or printing computer files. Contractor hereby grants to City all right, title, and interest, including any copyright, in and to the documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared by Contractor in the course of providing the services under this Agreement. All reports, documents, or other written
material developed by Contractor in the performance of the Services pursuant to this Agreement, shall be and remain the property of the City.
INDEMNIFICATION
(a) Indemnity for professional liability
When the law establishes a professional standard of care for Contractor's Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend and hold harmless the City and any and all of its officials, employees and agents (Indemnified wrongful act,
thereof) in the performance of professional services under this Agreement. (b) Indemnity for other than professional liability
Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor.
(c) DUTY TO DEFEND. In the event the City, its officers, employees, agents and/or volunteers are made a party to any action, claim, lawsuit, or other adversarial proceeding arising from the performance of the services encompassed by this Agreement, and upon demand by City, Contractor shall have an immediate duty to defend the City at Contractor's cost or at City's option, to reimburse the City for its costs of defense, including reasonable attorney's fees and costs incurred in the defense of such matters.
Payment by City is not a condition precedent to enforcement of this indemnity. In the event of any dispute between Contractor and City, as to whether liability arises from the sole negligence of the City or its officers, employees, or agents, Contractor will be obligated to pay for City's defense until such time as a final judgment has been entered adjudicating the City as solely negligent. Contractor will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney's fees, expert fees and costs of litigation.
9. INSURANCE
Contractor shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit C attached hereto and incorporated herein by reference.
10. INDEPENDENT CONTRACTOR
(a) Contractor is and shall at all times remain as to the City a wholly independent Contractor and/or independent contractor. The personnel performing the services under this Agreement on behalf of Contractor shall at all times be under Contractors exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Contractor or any of Contractor's officers, employees, or agents, except as set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against the City, or bind the City in any manner. (b) No employee benefits shall be available to Contractor in connection with the performance of this Agreement. Except for the fees paid to Contractor as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing services hereunder.
(c) Contractor shall indemnify, defend and hold harmless, the City, its elected officials, officers, employees and agents, from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including contributions to any retirement and/or pension plan, legal counsel fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, Contractor's or by any individual or agency for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractor of Contractor, service as an independent contractor. The indemnity provisions set forth in this Section 10(c) shall survive the termination of this Agreement, and are in addition to any other rights or remedies the City may have under the law.
11. LEGAL RESPONSIBILITIES
The Contractor shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. The Contractor shall at all times observe and comply with all such laws and regulations. The City, and its officers and employees, shall not be liable at law or in equity occasioned by failure of the Contractor to comply with this Section.
12. UNDUE INFLUENCE
Contractor declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of the City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City has or will receive compensation, directly or indirectly, from Contractor, or from any officer, employee or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity.
13. NO BENEFIT TO ARISE TO LOCAL OFFICERS AND EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the Project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the Project performed under this Agreement.
14. RELEASE OF INFORMATION/CONFLICTS OF INTEREST
(a) All information gained by Contractor in performance of this Agreement shall be considered confidential and shall not be released by Contractor without City's prior written authorization. Contractor, its officers, employees, agents, or subcontractors, shall not without written authorization from the City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City, unless otherwise required by law or court order. (b) Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request ("Discovery"), court order, or subpoena from any person or party regarding this Agreement and the work performed there under or with respect to any project or property located within the City, unless Contractor is prohibited by law from informing the City of such Discovery, court order or subpoena. City retains the right, but has no obligation, to represent Contractor and/or be present at any deposition, hearing, or similar proceeding as allowed by law. Unless City is a party to the lawsuit, arbitration, or administrative proceeding and is adverse to Contractor in such proceeding, Contractor agrees to cooperate fully with the City and to provide the opportunity to review any response to discovery requests provided by Contractor. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
15. NOTICES
Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (i) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail,
certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:
To City: City of Industry
15625 Mayor Dave Way
City of Industry, CA 91744
Attention: City Manager
With a Copy To: Casso & Sparks, LLP
13300 Crossroads Parkway North, Suite 410
City of Industry, CA 91746
Attention: James M. Casso, City Attorney
To Contractor: Chem Pro Laboratory, Inc.
941 W. 190th Street
Gardena, CA 90248
Attention: Danny Garison, Sales Representative
16. ASSIGNMENT
The Contractor shall not assign the performance of this Agreement, nor any part thereof, nor any monies due hereunder, without prior written consent of the City.
Before retaining or contracting with any subcontractor for any services under this Agreement, Contractor shall provide City with the identity of the proposed subcontractor, a copy of the proposed written contract between Contractor and such subcontractor which shall include and indemnity provision similar to the one provided herein and identifying City as an indemnified party, or an incorporation of the indemnity provision provided herein, and proof that such proposed subcontractor carries insurance at least equal to that required by this Agreement or obtain a written waiver from the City for such insurance.
Notwithstanding Contractor's use of any subcontractor, Contractor shall be responsible to the City for the performance of its subconsultant as it would be if Contractor had performed the Services itself. Nothing in this Agreement shall be deemed or construed to create a contractual relationship between the City and any subcontractor employed by Contractor. Contractor shall be solely responsible for payments to any subcontractors.
Contractor shall indemnify, defend and hold harmless the Indemnified Parties for any claims arising from, or related to, the services performed by a subcontractor under this Agreement.
17. GOVERNING LAW/ATTORNEYS' FEES
The City and Contractor understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the municipal, superior, or federal district court in Los Angeles County, California. If any action at law or suit in equity is brought to enforce or interpret the provisions of this Agreement, or arising out of or relating to the Services provided by Contractor under this Agreement, the prevailing party shall be entitled to reasonable
attorneys' fees and all related costs, including costs of expert witnesses and Contractors, as well as costs on appeal, in addition to any other relief to which it may be entitled.
18. ENTIRE AGREEMENT
This Agreement contains the entire understanding between the Parties relating to the obligations of the Parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written and pertaining to the subject of this Agreement or with respect to the terms and conditions of this Agreement, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material.
19. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
20. COUNTERPARTS
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
21. CAPTIONS
The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and shall have no significance in the interpretation of this Agreement.
22. WAIVER
The waiver by City or Contractor of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Contractor unless in writing.
23. REMEDIES
Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every
other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies.
24. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this Agreement on behalf of Contractor represents and warrants that he/she has the authority to execute this Agreement on behalf of the Contractor and has the authority to bind Contractor to the performance of its obligations hereunder.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the Effective Date.
"CITY" "CONTRACTOR"
City of Industry Chem Pro Laboratory, Inc.
By:_ By.
Joshua Nelson, City Manager Tony Aiello, General Sales Manager Attest:
Bylie Gutierez-Robles, City Clerk
Approved as to form:
By:_
James M. Casso, City Attorney
Attachments: Exhibit A Scope of Services
Exhibit B Rate Schedule
Exhibit C Insurance Requirements
EXHIBIT A
SCOPE OF SERVICES
Contractor shall complete the following services at El Encanto Health and Habilitation Center, City Hall, Industry Business Council/Council Chamber building, and YAL/Post Office Building:
Check all water treatment equipment and maintain chemical levels to inhibit scale and corrosion potential.
Visit Monthly and submit a written field report at the time of each service call. The Fe port is to summarize work completed, water conditions, and observation of water side conditions.
EXHIBIT B
RATE SCHEDULE
Labor $1,008.20
Fuel/Trip Surcharge $75.00
Monthly Total $1,083.20
2-Year Contract Total $25,996.80
EXHIBIT C
INSURANCE REQUIREMENTS
Without limiting Contractor's indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000.00 per occurrence, $2,000,000.00 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractua liability that has not been amended. Any endorsement restricting standard ISO "insurec contract" language will not be accepted.
Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000.00 combined single limit for each accident.
Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Contractor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement.
Workers' compensation insurance. Contractor shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000.00).
Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.
Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation. Insurance certificates and endorsement must be approved by City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
Duration of coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Contractor, his agents, representatives, employees or subcontractors.
Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City's own insurance or self-insurance shall be called upon to protect it as a named insured.
City's rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the altemative, City may cancel this Agreement.
Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager.
Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own night of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subContractors.
Enforcement of contract provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non- compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess liability policies.
Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.
Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability.
The policy(ies) shall not contain any cross-liability exclusions.
Pass Through Clause. Contractor agrees to ensure that its subcontractors, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with Contractors, subcontractors, and others engaged in the project will be submitted to City for review.
City's right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor's compensation.
Self-insured retentions. Any self-insured retentions must be declared to and approved by the City. The City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by the City.
Timely notice of claims. Contractor shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
CITY COUNCIL
ITEM NO. 5.14
1957 CITY OF INDUSTRY
MEMORANDUM
TO: Honorable Mayor and Members of the City Council
FROM: Joshua Nelson, City Manager On
STAFF: Yamini Pathak, Director of Finance
DATE: October 27, 2022
SUBJECT:
• Adoption of Ordinance No. 819 - an Ordinance of the City Council of the City of Industry, California, Amending Sections 3.04.040 (Bidding orocedures), 3.04.050 (Purchases on the open market), 3.04.05 (Professional services), and 3.04.070 (Exemptions-municipal utilities and street lighting) of Chapter 3.04 (Purchasing System), of Title 3 (Revenue and Finance) of the City of Industry Municipal Code, and Adopting a Notice of Exemption Regarding Same
• Consideration of an Amended Procurement Policy
BACKGROUND:
On October 13, 2022, the City Council considered the first reading and introduction of Ordinance No. 819, amending various sections set forth in the Chapter 3.04 Of the City's Municipal Code ("Code"). The City adopted a formal Procurement Policy ("Policy") on June 27, 2013, which follows policies set forth in the Code, concerning the acquisition of services, supplies and equipment. The City wishes to amend the Code and Policy to update purchase level authorizations, bidding procedures and types, exemptions for municipal utilities and street lighting, etc.
DISCUSSION:
The City has been using the Policy adopted on June 27, 2013 and corresponding Code to obtain services, supplies and equipment. It is necessary from time-to-time to review the Policy and Code to identify inconsistencies, changes or general updates to the way City is conducting business. City Staff has identified several sections in the Code and Policy that require updates and is recommending changes, as follows:
15625 Mayor Dave Way • City of Industry, California 91744 • 626.333.2211 • www.cityofindustry.org Purchasing Ordinance No. 819
October 27, 2022
• Code Section 3.04.040 A-D (Bidding procedures) is updated to include an option for electronic bidding procedures on City's website.
• Code Section 3.05.050 (Purchases on the open market) previously required all purchases on supplies and equipment of an estimated value of $100,000 or less be made by City Manager on the open market, following solicitation of written proposals from prospective sellers. The revision to this section of the Code separates the $100,000 authority into three separate buckets, as follows:
• Purchases less than $5,000 may be made by the City Manager or his designee over the counter.
• Purchases of $5,000 to $9,999 may be made by the City Manager or his designee on the open market after the solicitation of proposals from the prospective sellers of such supplies or equipment.
• Purchases of $10,000 to $100,000 may be made by the City Manager on the open market after the solicitation of proposals.
• Code Section 3.05.055 (Professional services) increases the City Manager's authority to enter into agreements for professional services from $10,000 to $50,000.
During the first reading and introduction, the Council increased the proposed limit of $25,000 to $50,000.
• Code section 3.04.070 (Exemptions - Municipal utilities) revises the section title and content to include street lighting.
In addition to the Code changes listed above, changes to the Policy include a new definition section; removal of former Section 14 Protest Procedures; and updates to Section 13 Surplus Personal Property to allow donations of surplus property to other public agencies.
Further, as noted in the Policy, in the event there are any conflicts between the Policy and the City's Code, the provisions of the Code prevail.
FISCAL IMPACT:
No fiscal impact.
RECOMMENDED ACTION:
1) Adoption of Ordinance No. 819 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF INDUSTRY, CALIFORNIA, AMENDING SECTIONS 3.04.040 (BIDDING PROCEDURES), 3.04.050 (PURCHASES ON THE OPEN MARKET), 3.04.055 (PROFESSIONAL SERVICES), AND 3.04.070 (EXEMPTIONS—MUNICIPAL UTILITIES AND STREET LIGHTING) OF CHAPTER 3.04 (PURCHASING SYSTEM), OF TITLE 3 (REVENUE AND FINANCE) OF THE CITY OF INDUSTRY MUNICIPAL CODE, AND
ADOPTING A NOTICE OF EXEMPTION REGARDING SAME
Adopt the Policy, which will become effective upon the effective date of Ordinance No. 819.
Purchasing Ordinance No. 819
October 27, 2022
Attachments:
1. Adoption of Ordinance No. 819 - an Ordinance of the City Council of the City of Industry, California, Amending Sections 3.04.040 (Bidding procedures), 3.04.050 (Purchases on the open market),
3.04.055 (Professional services), and 3.04.070 (Exemptions-municipal utilities and street lighting) of Chapter 3.04 (Purchasing System), of Title 3 (Revenue and Finance) of the City of Industry Municipal Code, and Adopting a Notice of Exemption Regarding Same Notice of Exemption
3. City of Industry Amended Procurement Policy
ORDINANCE NO. 819
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
INDUSTRY, CALIFORNIA, AMENDING SECTIONS 3.04.040 (BIDDING PROCEDURES), 3.04.050 (PURCHASES ON THE OPEN MARKET),
3.04.055 (PROFESSIONAL SERVICES), AND 3.04.070 (EXEMPTIONS- MUNICIPAL UTILITIES AND STREET LIGHTING) OF CHAPTER 3.04 (PURCHASING SYSTEM), OF TITLE 3 (REVENUE AND FINANCE) OF
THE CITY OF INDUSTRY MUNICIPAL CODE, AND ADOPTING A
NOTICE OF EXEMPTION REGARDING SAME
WHEREAS, pursuant to Article XI, Section 3, of the California Constitution, the Charter of the City of Industry ("City's Charter") governs the City of Industry's ("City") municipal affairs.
Pursuant to Section 200 of the City's Charter, the City has the power to make all laws and regulations with respect to municipal affairs. Cities have the authority to enter into contracts, including those for services and goods, and carry out necessary functions; and WHEREAS, Chapter 3.04 of the City's Municipal Code ("Code") sets forth the process by which the City obtains services, supplies and equipment; and WHEREAS, it is recommended that the City Council amend Chapter 3.04 of the Code to increase the City Manager's authority to enter into agreements for professional services, and to expressly include an exemption to the purchasing requirements for street lighting; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDUSTRY, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Findings.
The City Council finds that based upon substantial evidence presented to the City Council during the October 13, 2022 public meeting, including public testimony and oral staff reports, that all of the facts set forth in the recitals, are true and correct, and are incorporated herein by reference.
SECTION 2. CEOA Findings.
Upon independent review and consideration of the information contained in the Staff Report and the Notice of Exemption for this Ordinance, the City Council hereby finds and determines that this Ordinance does not have the potential for causing a significant effect on the environment.
Accordingly, the City Council finds and determines that this Ordinance is exempt from California Environmental Quality Act ("CEQA", Public Resources Code § 21000 et seq.) pursuant to the general rule in Section 15061(b)(3) of the CEQA Guidelines (Chapter 3, of Title 14, of the California Code of Regulations) that CEQA applies only to projects which have the potential for causing a significant effect on the environment and therefore the City Council approves and adopt the Notice of Exemption. The City Council further directs Staff to file the Notice of Exemption, as authorized by law.
SECTION 3. Municipal Code Amendment. Sections 3.04.040.A.-D. (Bidding procedures) of Chapter 3.04 (Purchasing System) of Title 3 (Revenue and Finance) of the City of Industry Municipal Code are hereby revised to read in their entirety as follows:
A. Purchases of supplies and equipment of an estimated value of greater than one hundred thousand dollars shall be by written contract with the lowest responsible bidder after notice. Such notice shall invite sealed bids, include a general description of the services, supplies or equipment to be purchased, state where bid forms and specifications may be obtained and specify the time and place for the opening of bids. The City may require electronic submission of any bids.
B. Such notice shall be published on the City's website and in a newspaper of general circulation printed and published in the city, or if there is none, it shall be posted in no less than three public places in the city designated by ordinance for the posting of public notices. The city manager shall post a copy of such on a public bulletin board in the city administrative offices. The city manager shall mail a copy of such notice to anyone who has requested to be so notified.
C. All notices shall be published or posted, as the case may be, not less than ten days prior to the date specified for the opening of bids.
D. Bids shall be submitted to the City in accordance with the instructions in the notice inviting sealed bids. Bids shall be received and finalized at the time specified in the notice inviting sealed bids. All bids received by the City shall be available for public viewing and inspection following the bid opening.
SECTION 4. Municipal Code Amendment. Section 3.04.050 (Purchases on the open market) of Chapter 3.04 (Purchasing System) of Title 3 (Revenue and Finance) of the City of Industry Municipal Code is hereby revised to read in its entirety as follows:
3.04.050 Purchases of $100,000 or Less
A. Purchases of Less than $5,000
Purchases of supplies and equipment of an estimated value of less than five thousand dollars, may be made by the city manager or his designee over the counter.
B. Purchases of $5,000 to $9,999.99
Purchases of supplies and equipment of an estimated value of five thousand to less than ten thousand dollars, may be made by the city manager or his designee, on the open market after the solicitation of proposals from the prospective sellers of such supplies or equipment. Solicitation of proposals may be made in writing, by telephone or otherwise and shall be made to sufficient numbers of prospective sellers as may be deemed by the city manager (or his designee) to be consistent with competitive bidding policies of the city and in no event less than three such proposals shall be obtained unless the city manager (or his designee) determines that it is not possible to obtain three such proposals. The city manager (or his designee) shall maintain a record of all such purchases and the names of each bidder, the manner in which the bids were solicited and the amount of each such bid.
That record shall also reflect the reason why there are less than three bids in those instances where there were not three qualified bidders.
2 C. Purchases of supplies and equipment of an estimated value of ten thousand dollars or more may be made by the city manager on the open market after the solicitation of proposals as set forth in Section 3.04.050.B.
SECTION 5. Municipal Code Amendment. Section 3.04.055 (Professional services) of Chapter 3.04 (Purchasing System) of Title 3 (Revenue and Finance) of the City of Industry Municipal Code is hereby revised to read in its entirety as follows:
Procurement of professional services of an estimated value of fifty thousand dollars ($50,000.00) or less may be made by the city manager at his or her discretion on the open market without specific solicitation or competitive bidding requirements. Professional services greater than fifty thousand dollars ($50,000.00) shall require prior approval by the city council. For the purposes of this section, professional services shall include, without limitation, consultants, advisors, attorneys, architects, planners, engineers, auditors, or other professionals with advanced or specialized knowledge, expertise or training gained by formal studies, or any other professional services listed in California Government Code sections 4525-4529.5, 37103, and 53060 so long as the service performed does not constitute a public works project.
SECTION 6. Municipal Code Amendment. Section 3.04.070 (Municipal utilities) of Chapter
3.04 (Purchasing System) of Title 3 (Revenue and Finance) of the City of Industry Municipal Code is hereby revised to read in its entirety as follows:
3.04.070 Exemptions-Municipal utilities and street lighting.
In addition to the exceptions set forth in Section 3.04.060, Sections 3.04.040 and 3.04.050 shall not apply to the purchase of supplies and equipment for projects related to the construction, modification, addition, extension, replacement or expansion of public utility facilities and street lighting, or the transmission or distribution system thereof, operated by, or under the control of the city. For purchases of such supplies and equipment with an estimated value over two hundred fifty thousand dollars, the city manager shall first attempt to follow the procedures set forth in Section 3.04.050; however, such procedures shall not be mandatory if the city manager's determination is that supplies and equipment must be purchased immediately for the efficient operation of the public utility.
SECTION 7. Clerical Errors. The City Council directs the City Clerk to correct any clerical errors found in this Chapter, including, but not limited to, typographical errors, irregular numbering, and incorrect section references.
SECTION 8. Severability. Should any section, subsection, clause, or provision of this Ordinance for any reason be held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance; it being hereby expressly declared that this Ordinance, and each section, subsection, sentence, clause, and phrase hereof would have been prepared, proposed, approved, and ratified irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid, unenforceable, or unconstitutional.
3 SECTION 9. Effective Date. In accordance with California Government Code §36937, this Ordinance shall take effect and be in force thirty (30) days from passage and adoption.
SECTION 10. Publication. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this ordinance to be published and posted as required by law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Industry at a regular meeting held on October 27, 2022, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Cory C. Moss, Mayor
ATTEST:
Julie Gutierrez-Robles, City Clerk
4 STATE OF CALIFORNIA CITY CLERK'S CERTIFICATION
COUNTY OF LOS ANGELES RE: ADOPTION OF CITY ORDINANCE
CITY OF INDUSTRY
I, Julie Gutierrez-Robles, City Clerk of the City of Industry, do hereby certify that the foregoing Ordinance No. 819 was introduced at the regular meeting of the City Council on October 13, 2022, and was adopted at a regular meeting of the City Council on October 27, 2022 by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
Julie Gutierrez-Robles, City Clerk
(SEAL)
CITY OF INDUSTRY
ANGELES
PROCUREMENT POLICY
Date Adopted: 06/27/2013
Last Amended: 10/13/2022 Page 1 of 16
SECTION 1. PURPOSE
The purpose of this policy is to provide the City a means of assuring continuity and uniformity in its contracting and purchasing operations, and to define the responsibilities for contracting for services and purchasing supplies and equipment for the City. This policy is in furtherance of the general authority and procedures set forth in Chapter 3.04 (Purchasing System) of Title 3 of the City's Municipal Code, and while comprehensive, the policy is not intended to address every issue, exception, or contingency that may arise in the course of City contracting and purchasing activities. The basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources, including keeping within the budget authorized by the City Council.
This policy does not address the purchase of supplies, equipment and professional services, which are included within the definition of a "public works" project subject to the requirements of the California Public Contract Code.
In the event of any conflicts between this policy and the City's Code, the provisions of the Code shall prevail.
SECTION 2. DEFINITIONS
The following words and terms shall be defined as follows unless the context indicates that a different meaning is intended:
"Bid" means the response submitted by a bidder to an invitation for bids issued by the City for supplies, equipment, and professional services. "City" means the City of Industry.
"City Council" means the City Council of the City of Industry. "Competitive bidding" refers to the process whereby bids are solicited from potential bidders in accordance with applicable laws (including the City's Municipal Code) to foster cost effective competition within the private sector providing professional services, supplies, or equipment to the City.
"Contract" means an agreement, in writing, between two or more persons with the requisite authority, which creates an obligation to provide supplies, personal property, equipment or professional services.
"Department" means any department, office, or other organizational unit of the City of Industry.
"Open market" or "quotation" means an informal, written or verbal proposal that is submitted by the bidder for procurement of supplies, equipment, and professional services for which formal bidding is not required.
"Over-the-counter" means purchases that do not require formal or informal bidding, nor competitive pricing considerations, unless practical to do so. "Procurement document" means a document that announces a project or a need for supplies, equipment, or professional services, and solicits bids from interested parties. "Professional services" means services performed by specially trained persons or firms in a professional occupation, including, but not limited to, services in connection with financial, economic, accounting, auditing, architectural, engineering, planning, legal, administrative or other matters involving advanced or specialized knowledge, expertise or training gained by formal studies, or any other professional services listed in California Government Code sections 4525-4529.5, 37103, and 53060. "Purchase order" means the City's written documentation provided to a vendor formalizing the terms and conditions associated with the ordering of the supplies, equipment, and professional services required by the City.
"Splitting" shall mean dividing a purchase or contract into two or more parts in order to avoid the provisions of this chapter requiring work to be done by contract after competitive bidding.
SECTION 3. PROCUREMENT OFFICER
The City Manager is designated as the Procurement Officer for the City and may delegate the administration of the program to a designee. The Procurement Officer is charged with the responsibility and authority for coordinating and managing the procurement of the City's supplies, equipment, and professional services according to this policy.
The Procurement Officer and all departments must adhere to this policy when procuring supplies, equipment, and professional services. This policy strives to define decision making with prudent review and internal control procedures and to maintain departmental responsibility and flexibility in evaluating, selecting, and procurement supplies, equipment, and professional services.
SECTION 4. RESPONSIBILITIES OF THE PROCUREMENT OFFICER
The Procurement Officer is responsible for 1) the procurement of supplies, equipment, and professional services; 2) the administration of this procurement policy; and 3) the management of surplus City property. To perform these functions efficiently and assist departments, the Procurement Officer will:
A. Coordinate and manage the procurement of the City's supplies and equipment services from the lowest responsive and responsible bidder when required by this policy.
B. Ensure full and open competition on all purchases as required by this policy.
C. Identify, evaluate and utilize procurement methods which best meet the needs of the City (i.e., cooperative purchases, blanket purchase orders, contractual agreements, etc.)
Assist all departments with research and recommendations in developing specifications; review specifications for completeness of information to ensure specifications are not unnecessarily restrictive.
Coordinate vendor relations, locate sources of supply, and evaluate vendor performance.
Recommend revisions to procurement procedures when necessary and keep informed of current developments in the field of public contracting and purchasing.
G. Prescribe and maintain all forms and records necessary for the efficient operation of the procurement function.
H. Act as the City's agent in the transfer and disposal of surplus equipment and materials.
1. Investigate the cost of recycled and non-recycled products to determine if the purchase of recycled products is practical and economical. To be considered economical, the added costs should not exceed 10 percent of the lowest non-recycled product price.
Make purchase award recommendations to the appropriate authority.
SECTION 5. RESPONSIBILITIES OF DEPARTMENTS
Departments are charged with the following responsibilities in the procurement process:
A. To anticipate requirements sufficiently in advance to allow adequate time to obtain goods in accordance with the best procurement practices.
B. To communicate and coordinate purchases with the Procurement Officer, as necessary.
C. To provide detailed, accurate specifications to ensure goods obtained are consistent with requirements and expectations.
To prepare requisitions in accordance with instructions so as to minimize the processing effort
E. To inform the Procurement Officer of any vendor relations problems, shipping problems (i.e., damaged goods, late delivery, wrong items delivered, incorrect quantity delivered, etc.) and any situations that could negatively affect the procurement function.
F. To minimize urgent and sole source purchases and to provide written documentation when such purchases may be necessary.
G. To assist the Procurement Officer with the review of all bids received for compliance with specifications, and provide the Procurement Officer with written documentation regarding their findings.
H. To notify vendors of purchase award when authorized by the Procurement Officer.
1. To not "split" orders for the purpose of avoiding procurement requirements.
See Definitions.
J. To consider the use of recycled products when practical and economically feasible. To be considered economical, the added costs should not exceed 10 percent of the lowest non-recycled product price.
SECTION 6. VENDOR AND CONSULTANT RELATIONS
It is to the City's advantage to promote and maintain good relations with vendors and service providers. The Procurement Officer and department staff will conduct their dealings with vendors and consultants in a professional manner and will promote equal opportunity and demonstrate fairness, integrity, and courtesy in all relations.
SECTION 7. SPECIFICATIONS
It is the responsibility of each department to provide detailed, accurate specifications when requisitioning supplies, equipment, and professional services. Accurate specifications are essential for effective bidding.
A. Sole Source Specifications.
Sole source specifications must be avoided whenever possible, as they minimize or eliminate competition. The appropriate authority (Procurement Officer if total purchase for supplies or equipment is $100,000 or less; and City Council if total purchase for supplies or equipment is more than $100,000) may waive bidding requirements if sufficient written justification for a sole source purchase exists. Written documentation signed by the appropriate department head must accompany the requisition for any sole source request.
B. Standardization.
Standardization of specifications for items common to several departments can tacilitate the procurement process. The Procurement Officer and departments are encouraged to work together to establish standard specifications for such items.
C. Brand Name, or Equal, Specifications.
In purchasing equipment or supplies needed to be compatible with existing equipment, or to perform complex or unique functions, the Procurement Officer may limit bidding to a specific product type or a brand name product.
Use of brand names in specifications will be for the purpose of describing the standard of quality, performance, and characteristics the City desires and not be intended to limit or restrict competition. If a brand name is incorporated into a specification, a minimum of two acceptable brands will be listed whenever possible and will be followed by the statement "or approved equal" unless the sole source rule applies. Using specifications provided by a specific manufacturer should be avoided, however, if used, the name of the manufacturer, model number, etc., should be indicated. The bid document must clearly state that the use of the manufacturer's specifications are for the sole purpose of establishing the level of quality desired. The Procurement Officer reserves the right to determine and approve any product submitted as an "or equal."
D. Vendor Assistance in Writing Specifications.
There may be occasions when vendor assistance is required to develop a specification. Such specifications must be written in general terms, and may not contain specifications that limit the bidding opportunities to a sole vendor, the vendor will be informed that the information they provide may be used to develop specifications for a competitive bid process. The vendor will be allowed to submit a bid, but will not be given any preference over the other bids.
SECTION 8. SUPPLIES & EQUIPMENT: PROCUREMENT METHODS
A. Requirements for Certain Procurement Dollar Limits.
Procurement dollar limits are "per order". This policy specifically prohibits splitting an order to circumvent the specified dollar limits. Departments should contact the Procurement Officer to coordinate volume bids of repetitive requirements (i.e., the frequent purchase of items such as chemical, paper goods, etc., which annually exceed the specified limits).
Furthermore, the limits described below shall not apply to the purchase of supplies and equipment for projects related to the construction, modification, addition, extension, replacement or expansion of public utility facilities or street lighting, or the transmission or distribution system thereof, operated by, or under the control of the City. For purchases of such supplies and equipment with an estimated value over two hundred fifty thousand dollars, the Procurement Officer shall first attempt to follow the procedures set forth within Section 8.A; however, such procedures shall not be mandatory if the Procurement Officer's determination is that supplies and equipment must be purchased immediately for the efficient operation of the public utility. Limit amounts do not include sales and use taxes or shipping charges.
Authority and Purchasing Limitations Summary
Competitive Bid Type Purchase Authorization
Bids Order Required
Less than $5,000 Not required Over the Not Department Head Counter required or Procurement
Officer
$5,000 to $9,999.99 Required Open Required Department Head Market/Quote or Procurement
Officer
$10,000 to $100,000 Required Open Required Procurement
Market/Quote Officer
Over $100,000 Required Formal Required City Council
Purchases of Less than $5,000 - Over the Counter.
(i) For purchases of less than $5,000, the authority to award is the Procurement Officer, and said authority
may be delegated to department heads. Purchases
shall be made over the counter, and no purchase order
is required. The Procurement Officer may delegate
authority to approve purchases less than $5,000 to
respective Department heads. A purchase order may
be requested by the department if required by the
vendor or if the department wishes to use the purchase
order as a mechanism to encumber funds.
(ii) Purchases of $5,000 - $9,999.99 - Open Market.
For purchases of between $5,000 - $9,999.99, the
authority to award is the Procurement Officer, and said authority may be delegated to department heads.
Purchases must be through the informal bid process.
All departments must obtain at least three oral or
written competitive proposals whenever possible for
purchases, unless the Procurement Officer determines
that it is not possible to obtain three such proposals.
The Procurement Officer may be requested to assist in
this process. The department must submit a
requisition, which includes the recommended vendor,
with all supporting documentation to the Procurement
Officer. Supporting documentation will include
competitive price quotes obtained, names of vendors
contacted, description of the items required, and
certificates of insurance as applicable.
Procurement Officer will review the recommendation
and supporting documentation and may contact
additional sources for quotations. The Procurement
Officer may award the purchase to the lowest bidder
whose quotation fulfills the intended purpose, quality, and delivery needs of the solicitation, provided that an unencumbered appropriation for that item exists. In lieu of awarding the purchase, the Procurement Officer
may reject bids, or may negotiate further to obtain
terms more acceptable to the City.
(iii) Purchases of $10,000 to $100,000 - Open Market.
For purchases between $10,000 - $100,000 the
authority to award is the Procurement Officer.
Purchases must be made through the informal bid
process. All departments must obtain at least three
oral or written competitive proposals whenever
possible for purchases, unless the Procurement Officer
determines that it is not possible to obtain three such proposals. The Procurement Officer may be requested
to assist in this process. The department must submit
a requisition, which includes the recommended vendor,
with all supporting documentation to the Procurement
Officer. Supporting documentation will include
competitive price quotes obtained, names of vendors
contacted, description of the items required, and
certificates of insurance as applicable. The
Procurement Officer will review the recommendation
and supporting documentation and may contact
additional sources for quotations. The Procurement
Officer may award the purchase to the lowest bidder
whose quotation fulfills the intended purpose, quality, and delivery needs of the solicitation, provided that an unencumbered appropriation for that item exists. In lieu of awarding the purchase, the Procurement Officer
may reject bids, or may negotiate further to obtain
terms more acceptable to the City.
(iv.) Purchases of More than $100,000 - Formal Bid.
Purchases that exceed $100,000 require a Formal Bid
Process, and City Council approval. See Section 9.
B. Blanket Purchase Orders.
A blanket purchase order is an agreement whereby the City contracts with a vendor to provide equipment or supplies on an as needed and often over- the-counter basis. Blanket purchase orders provide a mechanism whereby items which are uneconomical to stock may be purchased in a manner that allows field operations timely access to necessary materials. Blanket purchase orders may not be used to purchase capital assets.
1. Review.
The Procurement Officer will request confirmation of blanket purchase orders as needed, before the beginning of the fiscal year.
The Procurement Officer will review blanket purchase order requests based upon the following criteria:
i. Responsiveness and capabilities.
ii. Average dollar value and type of items to be purchased. ili. Frequency of need.
2. Contents.
All blanket purchase orders must include the following information:
i. A general description of the equipment or supplies that may be charged. ii. The period of time the order will remain open, not to exceed one year. ili. The maximum total amount that may be charged on the purchase order. iv. The maximum amount that may be charged each time the employee implementing a purchase enters the vendor's place of business, or if unspecified, $250 per visit and $750 per month.
V. Items excluded from the purchase, if applicable.
Vi. The phone number of the Purchasing Officer for questions or approval of charges that exceed the limit.
vii. Identification of the departments) and employee(s) who may charge against the order.
vili. Requirement that the employee show City identification. ix. Requirement that employees print and sign their names when picking up goods. x. City account numbers) to be charged.
Once a Blanket Purchase Order is issued to a vendor, any authorized City employee may contact the vendor directly to place orders per the terms and conditions specified in the Blanket Purchase Order.
Before the beginning of a new fiscal year, the finance department, in coordination with Procurement Officer and other departments, as applicable, will prepare a list of Blanket Purchase Orders in excess of $10,000 expected for the upcoming fiscal year. Staff will present the list of vendors whom the Blanket Purchase Orders will be issued for to City Council for approval.
C. Contract Purchase Orders.
Contract purchase orders are the preferred method of procurement for repetitive-use items that may be common to several departments or within one department. Establishing contract purchase orders provides a means of obtaining volume pricing based upon the combined needs of all departments, reduces the administrative costs associated with seeking redundant competitive bids and processing a contract purchase order each time an order is placed, and allows departments to order as needed, reducing the requirement to maintain large inventories of stock.
If a contract purchase order exists, departments will order all of their requirements from the successful vendor. No other source may be used
without prior approval of the Procurement Officer. Departments must submit, in writing to the Procurement Officer, any performance problem encountered immediately following the occurrence so that corrective action may be taken.
Contract purchase orders are annual and may include option for renewal for specific products, product types, or services at agreed upon prices or pricing structure and for a specified period of time.
D. Cooperative Purchases.
The Procurement Officer may participate in purchases and contracts established by other political jurisdictions, provided the cooperative agreement is established following a competitive bid process. Procedures set forth below shall not apply to purchases of supplies or equipment where competitive bid procedures have already been utilized by the City, another public agency, including, but not limited to, federal, state, and county governments, including state of California agencies, joint powers authorities, special districts, or non-profit agencies whose main purpose is to assist cities or other public entities, including, but not limited to, the California Contract Cities Association and the League of California Cities.
The Procurement Officer may authorize the award of cooperative purchase agreements up to and including $100,000. City Council approval is required for the award of any cooperative purchase of more than $100,000.
E. Sole Source Purchases.
Supplies and equipment that can be obtained from only one vendor are exempt from competitive bidding. Sole source purchases may include proprietary items sold directly from the manufacturer, items that have only one distributor authorized to sell in this area or a certain product has been proven to be the only product that has proven to be acceptable. All sole source purchases must be supported by written documentation signed by the appropriate department head and forwarded to the Procurement Officer.
Final determination that an item is a valid sole source purchase will be made by the Procurement Officer, or in the event the purchase exceeds $100,000, the City Council.
F. Urgency Purchases.
Applicability.
Urgency purchases may be made without competitive bidding when time is of the essence, and will be made only for the following reasons:
i. to preserve or protect life, health or property; or
il. upon natural disaster; or
ili. to forestall a shutdown of essential public services.
2. Requirements.
Since urgency purchases do not normally provide the City an pportunity to obtain competitive quotations or properly encumbe unds committed, sound judament must be used in keeping suct orders to an absolute minimum. In addition, the following requirements apply:
i. The Procurement Officer must be contacted prior to purchase to make the required verbay, to austanizes findigent Tre arouement Officer's approval may be given il. A completed purchase requisition must be submitted to the Procurement Officer within two business days, or as soon as the information is available. All purchase requisitions for urgent purchases must be signed by the appropriate department head
ili. Documentation explaining the circumstances and nature of the urgency purchase must be submitted by the appropriate department head as follows:
(i) Purchases less than $10,000: Use standard
procurement procedures.
(ii) Purchases in the amount of $10,000 - $100,000:
Report to the Procurement Officer by processing
requisition within one week.
(iii) Purchases of more than $100,000: 1) Report to
Procurement Officer within two working days, and 2)
Report to the City Council as soon as possible, ideally at its next scheduled meeting for ratification.
iV. If the urgency purchase causes any budget line item to exceed the approved budget, it will be the responsibility of the department requesting the purchase to obtain subsequent City Council approval for an additional appropriation or to make a transfer to cover the purchase.
G. Change Orders.
Purchase orders represent a contract between the City and the vendor. Any substantial change to a purchase order must be documented as a change order. Change orders will be reviewed and approved by the Procurement Officer. Any change order that causes the purchase order to exceed $10,000 must be reported to the Procurement Officer. Any change order
that results in the purchase order exceeding $100,000 must be approved by City Council. Urgency changes must comply with Section 8.F. A purchase order may not be increased by more than 10 percent or $2,500, whichever is less, without a change order, except for taxes, shipping and handling as discussed below. Taxes, shipping and handling may cause the purchase order to exceed the authorized purchase order amount. These items do not require a change order, even if they exceed 10 percent of the original purchase order amount.
SECTION 9. INFORMAL AND FORMAL BID PROCESS
A. Except as otherwise exempted in the policy, supplies and equipment with an estimated value of $5,000 to $100,000 will be purchased following an Informal Bid Process and purchases of more than $100,000 will be made following a Formal Bid Process.
B. To initiate the informal/formal bid process, the department making the request must provide specifications for the item to be purchased and documentation showing the existence of an unencumbered appropriation for the item in the current approved budget. The Procurement Officer or requesting department will solicit informal/formal bids as prescribed by the City's Municipal Code and this policy.
C. Informal bids may be posted on the City's electronic bidding service to prospective bidders a minimum of ten calendar days before the due date, or solicited over the phone or otherwise.
D. Formal bids shall comply with Section 3.04.040 of the City's Code.
E. Copies of all bids received by the Procurement Officer will be retained per the City's document retention policy.
F. Bids will be reviewed for compliance with specifications by the requesting department. All deviations from the specifications must be fully documented by the requesting department and the impact of the deviations on the performance or suitability of the bid item will be detailed. Staff will prepare and forward a recommendation for approval of purchase or denial.
Informal bids will be approved by the City Manager, as set forth in Section
3.04.050 of the City's Code.
5.or.al bid mility Coed by the City Council, as set forth in Section
SECTION 10. CREDIT CARD USAGE
Under certain circumstances, the use of a City credit card may be the most appropriate method for certain purchases. The following policies and procedures are established to insure internal control and timely payment of charges.
A. Treasury Department distributes the City's credit cards on an as-needed basis to department heads. City credit cards will only be available for the conduct of official City business. Use of the City credit card for personal purchases or cash advances is prohibited.
B. Purchases with a credit card may not exceed $2,000 without prior written approval of the City Manager.
C. All receipts must be turned in to Accounts Payable in Finance Department.
D. Failure to comply with established procedures may result in discontinuance of use of the City credit card by the employee/department, and may subject the employee to disciplinary personnel action, including but not limited to reimbursement.
SECTION 11. UNAUTHORIZED PURCHASES
Except for urgencies, departmental purchases, or other authorized exemptions stated in these policies, no purchase of supplies, equipment, or professional services may be made without an authorized purchase order. Otherwise, such purchases are void and not considered an obligation of the City. Any invoices without an authorized purchase order may be returned to the vendor unpaid. Purchase orders must be issued prior to ordering supplies, equipment, and professional services and not "after the fact" for work already done or materials already ordered.
SECTION 12. PROFESSIONAL SERVICES: CONSULTANT SELECTION A. Selection of Consultants for Professional Services:
As used in this policy, "professional services" are those services listed in Section 2. The following criteria will be used to determine approval authority for consultants for professional service contracts:
Contracts of $50,000 or less: Procurement Officer approval.
Contracts of more than $50,000: City Council approval.
This policy specifically prohibits splitting scope of services to circumvent the limits set forth in Section 12.A.1, above.
3. The appropriate department head, with the approval of the Procurement Officer, will prepare a scope of work consistent with the proposed budget. A Request for Proposal ("RFP"), Request for Qualifications ("RFQ") or other appropriate procurement document ("Procurement Document") process may be used at the discretion of the Procurement Officer. If utilized, the Procurement Document will outline the City's requirements and project description. The Procurement Document will be made available on an electronic procurement website. Procurement activities, including submittal of questions and answers, addendum issuance, and bid submittals will be conducted through the electronic plan room application. The list of solicited firms may be drawn from firms who, in the opinion of the department head, can perform the work. In addition, upon request, department heads will maintain a list of interested bidders who will be included in future solicitations.
4. In the event a Procurement Document is issued, the initial review of proposals will be conducted by the involved department head(s).
They may make a recommendation to the Procurement Officer regarding if consultants should be invited to interviews. Formal interviews will be conducted by the Procurement Officer and applicable department heads, who, where applicable, will make a recommendation to the City Council for final selection.
Qualifications should be the primary factor in the selection of a professional services consultant.
6. Prior to approval of a contract, the department head must conduct appropriate background and reference checks and ensure that adequate bonding or security, if required, is posted.
Consultants must comply with all regulations and laws dealing with conflict of interest disclosure and reporting. Consultants will not be engaged if a conflict of interest exists.
Approval of "additional scope of work" items must comply with the limits of Section 12.A.1, above.
Selection of Consultants for Professional Services for Continuing Services:
Firms providing professional services may be retained on a continuing basis to provide professional services. The department head may recommend to the Procurement Officer that the City contract on a project-by-project or on a retainer basis for additional work/services without going through procurement and selection processes, so long as the cost does not exceed the contract's not-
to-exceed amount. As needed, these arrangements will be reviewed to ensure the City is receiving the best value in their services.
As needed, the Procurement Officer will make a written request to each utan curt he a to comic the her department seria to ot name of firms, type of services, cost of contracts, length of contracts, SECTION 13. SURPLUS PERSONAL PROPERTY
The Procurement Officer is responsible for the transfer and disposition of surplus City property. "Surplus property" is used generically to describe any City property that is no longer needed or useable by the applicable department. The Procurement Officer has the authority to declare items) surplus.
A. Methods of Disposition.
The Procurement Officer will determine or approve one of the following methods of disposition that is most appropriate and in the best interests of the City.
Trade-In.
Property declared as surplus may be offered as a trade-in for credit toward the acquisition of new property. All trade-in offers will be submitted for the review and approval of the Procurement Officer. If surplus property is to be applied to a purchase order, the trade-in value must be itemized on the Purchase Order. The amount charged against the expenditure account will be the value of the purchase before application of the trade-in credit.
Return to Manufacturer.
suntacture for buy back or credito and the prene ta
Disposal.
Surplus property may be offered for sale by the Procurement Officer.
All surplus property is for sale "as is" and "where is", with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability or the property offered for sale.
Appropriate methods of sale are as follows:
i. Public Auction - Surplus property may be sold at public auction. Public Auctions may be conducted by City staff, or the City may contract with a professional auctioneer including professional auction services.
її. Sealed Bids - Sealed bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest bidder. ili. Selling for Scrap - Surplus property may be sold as scrap if the Procurement Officer deems that the value of the raw material exceeds the value of the property as a whole.
iV. Negotiated Sale - Surplus property may be sold outright if the Procurement Officer determines that only one known buyer is available or interested in acquiring the property.
V. Donation to Non-Profit or Public Agency - Surplus property may be donated to a non-profit organization or public agency if the Procurement Officer determines that:
(i) the resale value of the item is limited, (ii) the cost of other means of disposal would potentially exceed the recovery value, or (iii) the surplus property may be used by a non-profit or public agency in a manner that would provide a general public benefit.
vi. No Value Item - Where the Procurement Officer determines that specific supplies or equipment are surplus and of minimal value to the City due to spoilage, obsolescence or other cause or where the Procurement Officer determines that the cost of disposal of such supplies or equipment would exceed the recovery value, the Procurement Officer will dispose of the same in such a manner as he or she deems appropriate and in the best interest of the City. vii. Transfers Between Entities - The Procurement Officer may transfer surplus property between different entities at fair market value.
B. Proceeds.
Proceeds from the sale or trade-in of surplus property will be returned to the appropriate fund.
CITY COUNCIL
ITEM NO. 5.15
CITY OF INDUSTRY
ANGELES COU
MEMORANDUM
TO: Honorable Mayor Moss and Members of the City Council FROM: Joshua Nelson, City Manager n
DATE: October 27, 2022
SUBJECT: Consideration of the cancellation of the November 24, 2022 City Council Meeting and the closure of City Hall from December 23, 2022 through January 2, 2023.
Background:
Due to the fact that the November 24, 2022 regularly scheduled City Council Meeting falls on Thanksgiving Day, staff recommends cancelling this meeting.
Staff is also recommending that City Hall closes from December 23, 2022 through January 2, 2023, in observance of the Christmas and New Year holidays. If approved, City Hall would reopen on Tuesday, January 3, 2023.
Recommendation:
Staff recommends cancelling the November 24, 2022 regular City Council Meeting and closing City Hall from December 23, 2022 through January 2, 2023.
JNIh
15625 Mayor Dave Way• City of Industry, California 91744 • 626.333.2211 • www.cityofindustry.org