14. Approval of Revisions of Chapters 3 and 4 of the Downey Purchasing Policy

llll') CityofDowney AGENDA MEMO
Item NoAPPROVED BY

CITY MANAGER
TO:HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM :OFFICE OF THE CITY MANAGER
BY: STEPHEN W. HANNAH, DIRECTOR OF FINANCE
DATE: NOVEMBER 14, 2023
SUBJECT: APPROVAL OF REVISIONS OF CHAPTERS 3 AND 4 OF THE DOWNEY

PURCHASING POLICY

EXECUTIVE SUMMARY
The City Council will consider approving a revision to Chapters 3 and 4 of the City’s Purchasing Policy. The proposed changes to Chapters 3 and 4 of the Purchasing Policy (Policy) increase process efficiency by clearly defining what is required for approval as well as increasing the monetary thresholds at each approval level to amounts more consistent with the current industry standard. The proposed Policy also aIIgns approval authority and monetary thresholds across “Non-Professional Services, Supplies and Equipment” and “Professional/Consultant Services” procurement segments.

RECOMMENDATION
That the City Council:

Approve the changes to Chapters 3 and 4 of the Downey Purchasing Policy.

BACKGROUND
The City Council adopted a revised Purchasing Policy in November 2020. Since that time, it has become apparent that the approval authority established by the policy inhibited the City’s ability to procure services and supplies.

The proposed update to chapters 3 and 4 simplifies the language used, aligns the monetary thresholds across the supplies, material, equipment, and general services segment and the Professional/Consultant Services segment, and increases the required approval monetary thresholds to amounts more closely aligned with the industry standards for cities with a similar population and complexity to the City of Downey. The most substantive change to the two chapters is the change in the monetary thresholds associated with the approval authority.

Changes to the policy related to Non-Professional Services, Supplies and Equipment includes removing Finance from the approval matrix, increasing the approval authority for Department Heads from $3,000 to $14,999; and increasing the City Manager’s Approval Authority from $30,000 to $75,000. City Council approval is required for all purchases or

APPROVAL OF REVISIONS OF CHAPTERS 3 AND 4 OF THE DOWNEY PURCHASING POLiCY
NOVEMBER 14, 2023
PAGE 2
contracts in excess of $75,000. Purchases and contracts that are less than $75,000 may still be brought to City Council for approval as deemed appropriate.

One of the key advantages of these changes is an enhanced ability to make a non-capital emergency purchase to meet an unexpected near-term need such as the purchase of additional sand bags and sand to help citizens to prepare for a hurricane / tropical storm or the rental of specialized equipment to effect required repairs or re-establish public services
Changes to the policy related to Professional/Consultant Services include adding a Department Head approval of up to $14,999 and increasing the City Manager’s approval authority of $10,000 to $75,000. City Council approval is required for all purchases or contracts in excess of $75,000. Purchases and contracts that are less than $75,000 may still be brought to City Council for approval as deemed appropriate.

Changes to procurement related to Public Works projects are not included within these two chapters.

Overall, these changes will reduce the number of relatively small dollar purchases and contracts from going to the City Council for approval, increasing the speed at which the City can obtain needed supplies and services, and reducing the amount of staff and management time spent on preparing Council agenda items.

The current timeline for placing a purchase of greater than $30,000 before the City Council can delay the purchase by 4 to 6 weeks. For example, per the City Clerk’s required process, an item that requires City Attorney review, such as a service agreement, would need to be provided to the City Attorney on or before October 31 st, to be eligible for the November 28tF' City Council Meeting. In addition, the item needs to be scheduled for a Council date, a staff report has to be prepared, reviewed by the department and the City Manager, and edits / changes completed, supporting documents prepared , and the complete packet must be submitted by November 20th to keep the item on the November 28tF1 City Council Agenda.

CITY COUNCIL PRIORITIES
Fiscal Responsibility
Efficiency and Adaptability

FISCAL IMPACT
There is no fiscal impact associated with this action.

ATTACHMENTS
Attachment A: Chapters 3 and 4 as proposed
Attachment B: Chapters 3 and 4 as adopted in November of 2020

Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
Chapter 3 – Informal Bidding Procedures
Procurement of supplies, material, equipment and general services Purchasing Authority
Required
Approval
Department Head
or Desig nee
Required
Solicitation
No solicitation required if
the price is reasonable.

To the extent practicable,
must distribute
micropurchases equitably
among qualified suppliers.

Required
Documentation
Invoice: no PO or
contract required
Amount
Less than
$5,000
1 $5,000
to
$14,999
Department Head
or Designee
3 written quotes
(email, paper, etc)
1 Copy of Quotes or
Contract
2 Purchase requisition
3 Dept head approval
4 PO or contract
$15,000
to
$75,000
City Manager 3 formal written quotes 1 Copy of Quotes or Contract
2 Purchase requisition
3 Dept head approval
4 PO or contract
5 City Manager approval
$75,001
to
$100,000
City Council 3 formal written quotes 1 Copy of Quotes or Contract
2 Dept head approval
3 Staff Report
4 City Manager approval
5 City Council approval
6 Purchase requisition
7 PO
Note: Quotes must be current and obtained within 120 days of highest level of approval. 1 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
Purchase Value Under $5,000 (Small Dollar)
This is the purchase of supplies, materials, equipment or general services, when the aggregate amount is under the $5,000 purchase threshold. The City uses this purchase method in order to expedite the completion of its small dollar purchase transactions and minimize the associated administrative burden and cost. It is encouraged, but not required, to secure quotes from more than one vendor. Efforts should be made so that these types of purchases are from vendors located in the City of Downey.

Purchase Value Between $5,000- $14,999 (Written Quotes) For purchases that fall under the monetary threshold between $5,000 - $14,999, written quotes from at least three unrelated vendors shall be obtained. To obtain the required Purchase Order, the following shall be submitted to the Finance Department - Centralized Purchasing:
• Purchase Requisition signed by the Department Head or Designee • Contract, if applicable
• Copies of the three quotes
Purchase Value Between $15,000 - $75,000 (Formal Written Quotes) For purchases that fall between $15,000 - $75,000 purchase threshold, written quotes from at least three unrelated vendors shall be obtained. The formal quotes can be submitted by the vendor via letter, fax, or email, or an on-line bid system. To obtain the required Purchase Order, the following shall be submitted to the Finance Department - Centralized Purchasing:
• Purchase Requisition signed by the Department Head
• Contract, if applicable
• Copies of the three quotes
• City Manager Approval
Purchase Value Between $75,001 - $100,000 (Formal Written Quotes) For purchases that fall between $75,001 - $100,000 purchase threshold, written quotes from at least three unrelated vendors shall be obtained. The formal quotes can be submitted by the vendor via letter, fax, or email, or an on-line bid system. To get the required Purchase Order created, the following shall be submitted to the Finance Department - Centralized Purchasing:
• Purchase Requisition signed by the Department Head
• Contract, if applicable
2 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
• Copies of the three quotes
• City Manager Approval
• Staff Report
• City Council Approval
Follow-Up Approval for Contracts that Exceed Original Limits If a contract originally approved by a Department Head or the City Manager later requires authorization for additional expenditures or costs that, if included as part of the original contract, would have exceeded the Department Head’s or City Manager’s contract approval authority, any amendment(s) authorizing such additional expenditures or costs shall be
• approved by the City Manager if the additional expenditures and costs, had they been included in the original contract, would have still been within the City Manager’s approval authority; or
• approved by the City Council if the additional expenditures and costs, had they been included in the original contract, would have exceeded the City Manager’s approval authority.

Miscellaneous Form and Content Requirements
All purchase orders must be made using printed forms that have been pre-approved by the City Manager and/or the City Council or on such other forms that have been approved as to form by the City Attorney.

All contracts (other than purchase orders) must be made in writing and approved as to form by the City Attorney.

During any given fiscal year, procurements of identical supplies, equipment, materials or general services may not be broken-up into multiple procurements for the purpose of evading the more approval requirements of this Section, above.

The City Council reserves the right to disapprove any purchases, engagements or other procurements placed with such intent where it is determined that the accountability and expenditure control benefits of complying with the more stringent approval requirements outweigh the immediate convenience of avoiding such requirements or where such action runs contrary to the spirit of fiscal accountability which is the underlying objective of this chapter

Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
Cooperative purchasing.

The purchasing coordinator, upon the Finance Director’s approval, shall have the authority to join with other public and quasi-public agencies in cooperative purchasing plans or programs for the purchase of supplies, services and/or equipment by contract, arrangement, or agreement as allowed by law, provided the determination that participation is in the city’s best interests and the administering agency has made its purchases in a competitive manner.

In addition, the purchasing coordinator may buy directly from a vendor at a price established by another public agency when the other public agency has made its purchase in a competitive manner.

City Attorney Review:

All contracts required under this section must be submitted to and approved by the appropriate authorizing officer or body and the City Attorney before being presented to the vendor or general services provider as the City’s propose instrument. Purchase orders do not need to be approved by the City Attorney
Formal Bidding Procedures
Required
Approval
City Council
Required
Solicitation
Formal Bid
Required
Documentation
1 Notice inviting bid
2 Copy of bids
3 Contract
4 Staff report
5 City Council approval
6 Purchase requisition
7 PO
Amount
Greater
than
$75,000
or
Cooperative Purchase
Purchase Value over $75,000 (Formal Bid Process)
A.To initiate the bid process, operating department staff shall 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 Centralized Purchasing shall solicit formal bids as prescribed by the City’s Purchasing Ordinance. The Centralized Purchasing will coordinate with the City Clerk in setting a bid opening date and publication of the bid in the local newspaper.

Publication deadlines are available at the City Clerk's Office.

B Notice inviting formal bids will be posted on the City’s website 21 calendar days prior to the date of submittal and distributed to registered vendors. Notice of the formal bid may also be posted to other web sites and boards to enhance the greatest response to the bid. The formal bid will contain a pro~vision requiring the proposer to include fee proposal in a separate file.
4 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
C. Notices inviting bids shall include a general description of the goods, articles, services, or equipment to be purchased, bonding requirements, state where bid plans and specifications may be secured, the bid submittal due date and the time and place for opening the bids.

D. The City may or if applicable require bidders’ security equal to ten (10%) of the bid amount and/or a performance bond in such amount as it shall find reasonably necessary to protect the public interest. If the City requires either or both such security and bond, the form and amount of the security and bond shall be described in the notice inviting bids.

E. Sealed bids shall be submitted to the City Clerk and shall be clearly identified as the bidder, bid item, and “bid” on the envelope or they can be submitted through the City’s website. Bids shall be opened by the City Clerk, with a representative of the department that developed the bid or proposal document present, in public at the date, time, and place stated in the notice inviting bids. A written record and tabulation shall be made at the time all bids are received and the tabulation shall be available for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

F.A representative of the requesting department shall review all bids received for compliance with specifications. All deviations from the specifications shall be fully documented by the requesting department, and the impact of the deviations on the performance or suitability of the bid item evaluated and detailed. The requesting department shall review its findings with the Centralized Purchasing staff.

G. The City Council may reject all bids or award the purchase contract to the lowest responsive and responsible bidder whose bid fulfills the intended purpose according to criteria designated in the solicitation, provided that an unencumbered appropriation exists for the purchase. The City Council may waive any minor bid irregularities. If bids are rejected, the City Council may authorize Purchasing staff to negotiate a contract for the purchase, initiate a rebid, or abandon the purchase.

H. Quality and service being equal, a local preference of ten percent (10%) shall be given to local vendors within the City of Downey. This ten percent (10%) shall be given as a credit in their bid. The ten percent (10%) preference is not applicable to public works projects and construction or purchases funded by grant or special revenue funds.

I. Rejection of Bids: The Centralized Purchasing and/or Operating Department may recommend rejection of any or all bids if it is determined to be in the best interest of the City.
5 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
J. Tie Bids: if two or more bids are received for the same total amount or unit prices, quality and service being equal, and if the public interest will not permit the delay of re-advertising the bids, the City Council may accept either bid.

Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
Chapter 4 – Professional/Consultant Services
Required
Approval
Department Head
or Designee
Required
Solicitation
1 One (1) informal quote if
the price is less than
$5,000
2 Over $5,000 requires
3 written quotes
(email, paper, etc)
3 formal written quotes
Required
Documentation
1 Copy of Quotes or
contract
2 Dept head approval
3 Purchase requisition
4 PO
Amount
Less than
$14,999
$15,000
to
$75,000
City Manager 1 Copy of Quotes or
contract
2 Dept head approval
3 Purchase requisition
4 City Manager approval
5 PO
Greater
than
$75,000
City Council Formal Bid 1 Notice inviting bid
2 Copy of bids
3 Contract
4 Staff report
5 City Council approval
6 Purchase requisition
7 PO
or
Cooperative Purchase
Professional or consultant services are those activities to be performed by specially trained persons or firms who provide services related to a specialized expertise or any services which involves the exercise of professional discretion or independent judgments based on advanced or specialized knowledge, expertise or training gained by formal studies or expertise.

Informal Process
Each Department may maintain a current list of qualified professional consultants in various categories. When selecting a consultant to provide services on a specific project, the Department Director should consider consultants on a rotational basis wherever feasible in addition to capability and qualifications.

If a list of qualified consultants is not maintained by the Department Director, the Department Director will consult various professional organizations and/or cities that have recently completed similar activities, and other methods to develop a list of qualified consultants. The Department Director, or his/her designee shall contact two or more qualified professional consultants to ensure qualifications, person(s) that will be assigned to the project, price, and other factors relevant to 7 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
the selection process. Once the Department Director selects the consultant, he/she presents the proposed selection to the City Manager or City Manager’s designee for approval.

Formal Process
In the normal course of business, the Department shall utilize an electronic Request for Proposal (RFP) process. A Request for Qualifications (RFQ) process may be used prior to a RFP process. The Department Director will submit a written recommendation of award of contract to the City Council after completion of the RFQ and/or RFP process.

The Department Director will select whether to initially use a RFQ process or an RFP process. It is important that the solicitation clearly state the City’s needs to ensure that each professional/consultant/firm has a fair opportunity to present their proposal and that the City receives well developed proposals.

If an RFQ process is used, the Department shall issue a RFQ to those firms that appear to have qualifications in the areas that the Department Director deems will likely be used by the City. A list developed through the RFQ process is valid for a maximum of three years from the date the list was approved, unless an extension is granted by the City Council, and there is no grant or special revenue funding associated with the activity or project that would result in the professional services fee to be an ineligible cost.

The City is required by State law (Government Code S 4526) to select vendors for architectural, landscape architectural, engineering, environmental services, land surveying, and construction project management services based on demonstrated competence and professional qualifications, rather than competitive bidding, and at fair and reasonable prices.

Request for Qualifications (RFQ) Process
A. The Department shall use the following RFQ process to develop a list of qualified consultants/firms for a type or category of professional services. Consultants are evaluated based upon the following criteria:

1. Mandatory Elements: The firm is properly licensed to practice in California, has no conflict of interest, adheres to the proposal instructions and includes a Letter of Transmittal.

2. Expertise and Experience: Expertise, experience and past performance on comparable engagements, quality of personnel and support, references, understanding of work to be done and firm’s statement regarding qualifications.

3. Scope of Work: Responses to all items and additional information. 8 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4

4. Qualitative Evaluation: Appropriateness of qualifications and proposed level of services to the requirements of the City, expertise and experience in the type or category of professional services outlined in the RFQ, background and experience of key personnel, and other factors outlined in the RFQ.

B.The Department shall rank the firms as qualified or not qualified for a particular type or category of professional services. This list will be maintained for a maximum of three years from the date the list was approved, unless an extension is granted by City Council and there is no grant or special revenue funding associated with the activity or project that would result in the professional service’s fee to be an ineligible cost. This list can be terminated earlier upon recommendation of the Department Director to the City Manager and approved by the City Manager.

C. Notice of RFQ will be posted on the City’s website 21 calendar days prior to the date of submittal and distributed to consultants on the City’s list. The RFQ may also be posted to other web sites and boards to enhance the greatest response to the RFQ. The Department may also distribute the Notice of RFQ to additional professional/consultants/firms if they know of specialists who are not on the City’s list. Departments can also encourage consultants/firms to download the full RFQ document from the website as this will ensure that the consultants/firms are distributed any addenda or other notifications related to the RFQ.

D. All Statement of Qualifications (SOQ) will be received electronically through the City’s website and a listing of all those received will be posted on the website. Any SOQs received after the date and time stated on the notice will be rejected.

E.The initiating Department Director shall propose a selection committee consisting of at least three members. One member shall not be a member of the initiating department. On a case-by-case basis, the Finance Director may waive the requirement of one member of the selection committee not being a member of the initiating Department. Any individual or firm that has an interest in one or more of the firms submitting a SOQ cannot be part of the selection process or on the selection committee.

F. The Department Director shall establish evaluation criteria in advance of receiving the SOQs. Each committee member will evaluate and rank the SOQs based on the established criteria.

G. The Department Director will receive results of the committee’s final evaluation and recommendation and prepare a list of qualified firms for each category of services.

The list shall be approved by the City Council prior to its use.

H. Selecting a professional/consultant services firm based on the results of the RFQ process:
9 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4

1.The Department Director will cause a Request for Project Proposal (RPP) to be issued to firms on the qualification list of the category for which the services are requested. The firms shall be provided at least 21 calendar days in which to respond to the RPP.

The RPP will request the names and qualifications of the person(s) to be assigned to the project, their understanding of the project, available start date (or confirm that they are available to start the project on the date indicated by the City), the dollar cost (which may be itemized by category, if appropriate), the deadline for submitting a response to the RPP, and that the response to the RPP shall be submitted to the initiating Department’s Director.

2. 3. A departmental selection committee will review the responses to the RPP and select the firm to be recommended for approval by the City Council.

Request for Proposal (RFP) Process
A. The City shall use the following RFP process to determine the best qualified Consultants for the requested professional services as follows:

1. Notice of RFP will be posted on the City’s website 21 calendar days prior to the date of submittal and distributed to consultants on the City’s list and those professional/consultants/firms if they appear to be qualified and are not on the City’s list. The RFP may also be posted to other web sites and boards to enhance the greatest response to the RFP. The Department can also encourage consultants/firms to download the full RFP document from the website as this will ensure that the consultants/firms are distributed any addenda or other notifications related to the RFP. The RFP will contain a provision requiring the proposer to include fee proposal in a separate file or sealed envelope.

2. The all proposals (responses to the RFP) will be received electronically through the City’s website and a listing of all those received will be posted on the website.

Any proposals received after the date and time stated on the notice will be rejected .

3. The initiating Department Director shall propose a selection committee consisting of at least three members, one of which cannot be a member of the initiating Department. Any individual or firm that has a financial interest in one or more of the firms submitting a proposal cannot be part of the selection process or on the evaluation committee. The proposed selection committee will be approved by the City Manager or designee.

B. Consultants/Firms are evaluated based upon the criteria below, which should be included in the RFP:

1. Mandatory Elements: The firm is properly licensed to practice in California, has no conflict of interest, adheres to the proposal instructions and includes a Letter of Transmittal
10 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4

3. Scope of Work: (responses to all items and additional information).

4. Qualitative Evaluation: Aappropriateness of qualifications and proposed level of services to the requirements of the City, expertise and experience in the type or category of professional services outlined in the RFQ, background and experience of key personnel, and other factors outlined in the RFQC.

Each evaluation committee member will evaluate and rank the proposals using the established criteria. The evaluation committee will review all of the proposals (responses to the RFP) and rank the consultants/firms. The top firms (at least three) will become the “short list”. The Department may conduct reference checks. The Department Director will receive results of their evaluation and either select one of those firms or determine which firms are on the “short list” to be interviewed.

If interviews are conducted :
a. Professionals/consultants/firms that are on the “short list” will be invited to meet with the evaluation committee. The interview may be any of the following formats: (i) interview, (ii) demonstration of product, (iii) oral presentations and clarification of RFP/RFQ response, if needed, and/or (iv) all of the formats. b. During the interview process the evaluation committee will individually rank the professionals/consultants/firms. At the conclusion of all the interviews, the evaluation committee members will discuss their opinions of the consultants, the Department representative will share the results of reference checks and through negotiation, the evaluation committee will rank the candidates and come to a consensus of the top candidate.

D.Once firms are ranked based upon qualifications, staff opens the cost proposal envelope and determines if the highest-ranking firm’s cost proposal is reasonable prior to making a recommendation for selection. If the cost proposal is found to be unreasonable, staff can negotiate with the highest-ranking firm. If the desired outcome is not achieved, then staff should move to the second highest ranking firm. This process can continue until a firm is selected , or the Department Director, in consultation with the Finance Director, rejects all proposals and either cancels the project or revises the RFP in such a manner that will likely result in the receipt of acceptable proposals for the project. Determining a reasonable cost is based upon comparison of proposals, project budget, prior experience, comparative project costs in neighboring cities and professional judgment. 11 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
E. Contracts
Once the top candidate has been determined to be the most qualified, the project scope of work and price can be further negotiated. If the selected consultant’s pricing exceeds the budget or what the City has determined to be a reasonable price for the job, the City may end negotiations with that consultant and begin negotiations with the next most qualified consultant.

Contracts less than $14,999 are signed by the Department Head. The contract is developed using the City’s standard Professional Services Agreement (PSA), forwarded to the City Attorney’s Office, and reviewed and approved as to form by the City Attorney and signed by the City Manager and the vendor. No services shall be provided until the City receives the vendor’s signed Contract and certificate of insurance. The Department will retain the signed original contract and will attach a copy of the signed contract to a purchase requisition.

Contracts between $15,000 and $75,000 are signed by the City Manager. The contract is developed using the City’s standard Professional Services Agreement (PSA), forwarded to the City Attorney’s Office, and reviewed and approved as to form by the City Attorney and signed by the City Manager and the vendor. No services shall be provided until the City receives the vendor’s signed Contract and certificate of insurance. The Department will retain the signed original contract and will attach a copy of the signed contract to a purchase requisition.

Contracts in an amount exceeding $75,000 require the approval of the City Council. Prior to taking the contract to City Council, the contract should be negotiated with the contractor, using the City’s standard PSA, forwarded to the City Attorney’s Office, and reviewed and approved as to form by the City Attorney and signed by both the City and the vendor. No services shall be provided until the City receives the vendor’s signed Contract and certificate of insurance. Once approved by City Council and vendor, the Contract will be given an official contract number by the City Clerk and the original maintained by the City Clerk’s Office. “On-Call“ Consultants
Departments may utilize “on-call” consultants to assist in the workload resulting from large projects or public works projects. These “on-call” consultants must be selected in either an RFQ or RFP process. Consultants may not be associated with any engineering or consulting firm and shall work as sole proprietors and independent consultants. All “on- call” consultant agreements must be approved by the City Council prior to the signing of any contractual agreement. It is permissible for the City Council approval to be for an amount that includes more than one project, with the projects starting at various dates throughout the year.
12 Attachment A - Purchasing Policy Revision - November 2023 Chapters 3 and 4
Professional Services – Multiple Awards
Purpose: To enhance the efficiency of the City’s response to an identified need and / or to allow the City the flexibility to select the most responsive service provider with the highest quality of service or results.

Policy: Contracts for the performance of professional services, for a number of similar or like tasks or minor projects, on an as-needed or on-call basis, for an established contract period, may be awarded to multiple firms or individuals. The selection of firms or individuals shall be made from an existing list of firms or individuals previously approved through either an RFQ or RFP process, as stated in the applicable sections of the Procurement Policy.

The RFQ or RFP must identify:

A. (1) The number of firms that may be selected and/or (2) contracts that may be awarded .

B. Specify the initial term of the contract and the number and length of any contract extensions. Maximum term including extensions shall not exceed 5 years.

C.The maximum total dollar amount that may be awarded over the initial term of the contract.

1. Professional judgement may be used to estimate the maximum contract amount

2. This amount may be amended per the City’s policies and procedures.

D. The maximum annual (per fiscal year) contract amount that may be awarded. This amount may be amended per the City’s policies and procedures.

E. Include a statement of work, requirements, specifications, or other description to define the general scope, complexity, and professional nature of the services.

F. Specify the procedures that will be used for awarding contracts to the respondents selected under either the RFP or RFQ process.

Tasks or projects are not required to be awarded on the basis of costs. Each specific task or project shall be awarded to the selected, qualified firms or individuals through an additional qualifications-based selection procedure.
13 Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
Chapter 3 – Non-Professional Services, Supplies and Equipment Purchase Value Thresholds
L e
Method I Required I Approval
r e
Director
Value of
Purchase
Agreement
Format
Under $3,000 None
$3,000 -
$15,000
r
Quotes
Finance Purchase Order
$15,001 -
$30,000
Formal
Written Quotes
Yes City Manager
or
City Manager
Desjgnee
city cm
City Manager
approved contract
Over $30,001 Formal Bid Yes City Council
approved contract
This chapter only applies to the purchase of non-professional services, supplies and equipment. This chapter does not apply to professional services and public works projects or maintenance/repair projects which are covered in Chapter 4.

Purchase Value Under $3,000 (Small Dollar)
This is the purchase of non-professional services, supplies or equipment when the aggregate amount is under $3,000 purchase threshold. The City uses this purchase method in order to expedite the completion of its small dollar purchase transactions and minimize the associated administrative burden and cost. It is encouraged, but not required, to secure quotes from more than one vendor.

Efforts should be made so that these types of purchases are from vendors located in the City of Downey.

Purchase Value Between $3,000- $15,000 (1nformal written Quotes) For purchases that fall under the monetary threshold between the $3,000- $15,000 purchase threshold, written quotes from at least three unrelated vendors shall be obtained. If the quotes are received in other than written form, then a quote form documenting the quote (containing at a minimum the firm name, person providing the quote, the item(s) quoted , the price, and any other

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
relevant information) must be prepared, attached to the purchase requisition, and submitted to the Finance Department.

Purchase Value Between $15,001 - $30,000 (Formal written Quotes) For purchases that fall between $15,001-$30,000 purchase threshold, written quotes from at least three unrelated vendors shall be obtained. Quotes can be submitted by the vendor via letter, fax, or email, or an on-line bid system. The quotes are to be attached to the purchase requisition form submitted to the Finance Department.

Purchase Value over $30,001 (Formal Bid Process)
A. To initiate the bid process, operating department staff shall 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 Purchasing Division shall solicit formal bids as prescribed by the City’s Purchasing Ordinance. The Purchasing Division will coordinate with the City Clerk in setting a bid opening date and publication of the bid in the local newspaper. Publication deadlines are available at the City Clerk’s Office.

B. Notices inviting formal bids shall be distributed electronically by email to prospective bidders, posted on the Purchasing Division bidding website, and shall be published at least twice in a newspaper of general circulation printed and published in the City, and in appropriate trade publications at least fourteen (14) days before the date of the opening of the bids.

C. Notices inviting bids shall include a general description of the goods, articles, services, or equipment to be purchased, bonding requirements, state where bid plans and specifications may be secured and the time and place for opening the bids
D. The City may or if applicable require bidders’ security equal to ten (10%) of the bid amount and/or a performance bond in such amount as it shall find reasonably necessary to protect the public interest. If the City requires either or both such security and bond, the form and amount of the security and bond shall be described in the notice inviting bids.

E.Sealed bids shall be submitted to the City Clerk and shall be clearly identified as the bidder, bid item, and “bid” on the envelope. Bids shall be opened by the City Clerk, with a representative of the department that developed the bid or proposal document present, in public at the date, time, and place stated in the notice inviting bids. A written record and tabulation shall be made at the time all bids are received and the tabulation shall be available for public inspection during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
F.A representative of the requesting department shall review all bids received for compliance with specifications. All deviations from the specifications shall be fully documented by the requesting department, and the impact of the deviations on the performance or suitability of the bid item evaluated and detailed. The requesting department shall review its findings with the Purchasing Division staff.

H.Quality and service being equal, a local preference of ten percent (10%) shall be given to local vendors within the City of Downey. This ten percent (10%) shall be given as a credit in their bid. The ten percent (10%) preference is not applicable to public works projects and construction or purchases funded by grant or special revenue funds.

I. Rejection of Bids: The Purchasing Division and/or Operating Department may recommend rejection of any or all bids if it is determined to be in the best interest of the City.

J. Tie Bids: if two or more bids are received for the same total amount or unit prices, quality and service being equal, and if the public interest will not permit the delay of re-advertising the bids, the City Council may accept either bid.

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
Chapter 4 – Professional/Consultant Services
Purchase Value Thresholds
PO RequiredPurchase
Method
Value of
Purchase
Agreement
Format
$10,000 and
Under
Informal
Process
Yes
(Unless Under
$3,000
Yes
City
Manager
Small Dollar
PSA
Over $10,000 Formal Process City Council City Council
approved PSA
Professional or consultant services are those activities to be performed by specially trained persons or firms who provide services in connection with financial, economic, accounting, engineering, environmental, administrative, specialized expertise, unique skills, advisory, consulting, architectural, land survey or any services which involves the exercise of professional discretion or independent judgments based on advanced or specialized knowledge, expertise or training gained by formal studies or expertise.

If a list of qualified consultants is not maintained by the Department Director, the Department Director will consult various professional organizations and/or cities that have recently completed similar activities, and other methods to develop a list of qualified consultants. The Department Director, or his/her designee shall contact two or more qualified professional consultants to ensure qualifications, person(s) that will be assigned to the project, price, and other factors relevant to the selection process. Once the Department Director selects the consultant, he/she presents the proposed selection to the City Manager or City Manager’s designee for approval.

Formal Process
In a non-urgent situation, the Department shall utilize a sealed Request for Proposal (RFP) process. A Request for Qualifications (RFQ) process may be used prior to a RFP process. The Department Director will submit a written recommendation of award of contract to the City Council after completion of the RFQ and/or RFP process.

The Department Director will select whether to initially use a RFQ process or an RFP process. It is important that the solicitation clearly state the City’s needs to

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
ensure that each professional/consultant/firm has a fair opportunity to present their proposal and that the City receives well developed proposals.

1. Mandatory Elements: The firm is properly licensed to practice in California, has no conflict of interest, adheres to the proposal instructions and includes a Letter of Transmittal.

3. Scope of Work: Responses to all items and additional information.

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
recommendation of the Department Director to the City Manager and approved by the City Manager.

C. Notice of RFQ will be posted on the City’s website 21 calendar days prior to the date of submittal and distributed to consultants on the City’s list. The Department may also distribute the Notice of RFQ to additional professional/consultants/firms if they know of specialists who are not on the City’s list. Departments can also encourage consultants/firms to download the full RFQ document from the website as this will ensure that the consultants/firms are distributed any addenda or other notifications related to the RFQ.

D. The City Clerk’s Office will receive all Statement of Qualifications (SOQ) and will create a listing of all those received. Any SOQs received after the date and time stated on the notice will be returned unopened.

E.The initiating Department Director shall propose a selection committee consisting of at least three members, one of which cannot be a member of the initiating department. On a case-by-case basis, the Finance Director may waive the requirement of one member of the selection committee not being a member of the initiating Department. Any individual or firm that has an interest in one or more of the firms submitting a SOQ cannot be part of the selection process or on the selection committee.

F. The Department Director shall establish evaluation criteria in advance of receiving the SOQs. Each committee member will evaluate and rank the SOQs based on the established criteria.

G. The Department Director will receive results of the committee’s final evaluation and recommendation and prepare a list of qualified firms for each category of services. The list shall be approved by the City Council prior to its use.

H. Selecting a professional/consultant services firm based on the results of the RFQ process :

2. Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4

3. A departmental selection committee will review the responses to the RPP and select the firm to be recommended for approval by the City Council.

Request for Proposal (RFP) Process
A. The City shall use the following RFP process to determine the best qualified Consultants for the requested professional services as follows:

1. Notice of RFP will be posted on the City’s website 21 calendar days prior to the date of submittal and distributed to consultants on the City’s list and those professional/consultants/firms if they appear to be qualified and are not on the City’s list. The Department can also encourage consultants/firms to download the full RFP document from the website as this will ensure that the consultants/firms are distributed any addenda or other notifications related to the RFP. The RFP will contain a provision requiring the proposer to include fee proposal in a separate sealed envelope.

2. The City Clerk’s Office will receive all proposals (responses to the RFP) and will create a listing of all those received. Any proposals received after the date and time stated on the notice will be returned unopened.

B. Consultants/Firms are evaluated based upon the criteria below, which should be included in the RFP:

1. Mandatory Elements: The firm is properly licensed to practice in California, has no conflict of interest, adheres to the proposal instructions and includes a Letter of Transmittal.

3. Scope of Work: (responses to all items and additional information).

Attachment B
Purchasing Policy – November 2020
Chapters 3 and 4
and experience of key personnel, and other factors outlined in the RFQC.

If interviews are conducted:
a. Professionals/consultants/firms that are on the “short list” will be invited to meet with the evaluation committee. The interview may be any of the following formats: (i) interview, (ii) demonstration of product, (iii) oral presentations and clarification of RFP/RFQ response, if needed, and/or (iv) all of the formats.
b. During the interview process the evaluation committee will individually rank the professionals/consultants/firms. At the conclusion of all the interviews, the evaluation committee members will discuss their opinions of the consultants, the Department representative will share the results of reference checks and through negotiation, the evaluation committee will rank the candidates and come to a consensus of the top candidate.

D. Once firms are ranked based upon quality staff opens the cost proposal envelope and determines if the highest ranking firm’s cost proposal is reasonable prior to making a recommendation for selection. If the cost proposal is found to be unreasonable, staff can negotiate with the highest ranking firm. If the desired outcome is not achieved, then staff should move to the second highest ranking firm. This process can continue until a firm is selected, or the Department Director, in consultation with the Finance Director, rejects all proposals and either cancels the project or revises the RFP in such a manner that will likely result in the receipt of acceptable proposals for the project. Determining a reasonable cost is based upon comparison of proposals, project budget, prior experience, comparative project costs in neighboring cities and professional judgment.

E. Contracts

1. Once the top candidate has been determined to be the most qualified, the project scope of work and price can be further negotiated. If the selected consultant’s pricing exceeds the budget or what the City has determined to be a reasonable price for the job, the City may end negotiations with the first consultant and begin negotiations with the next most qualified consultant, and so forth.

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Downey City CouncilNovember 14, 2023

Downey City Council
November 14, 2023