Fontana - Purchasing Policy and Procedure Manual - NO TABLE of CONTENTS December 2022 - CLEAN-c1.docx

Purchasing Policies and Procedures Manual
REVISED: December 13, 2022

1.0 General Purchasing Policy

PURPOSE
The purpose of this policy is to provide the City of Fontana a means of assuring continuity and uniformity in its purchasing operation, and to define the authority for the purchasing function, and responsibilities for purchasing supplies, services, and equipment for the City.

This policy ensures that the City of Fontana’s (the City) purchasing procedures and processes are in compliance with Fontana Municipal Code (FMC) – Chapter 10 - Article V. Purchasing, federal, state, and local laws, and it ensures appropriate stewardship of the City’s assets, integrity when acquiring goods and services, and accountability to its citizens.

POLICY
Purchases and contracts for goods and services made on behalf of the City shall be made in compliance with procurement laws and regulations, and with the highest ethical standards, including appropriate stewardship of the City’s resources when acquiring goods and services.

Approval of Purchases and Contracts for Goods, Services, and Public Works Projects All purchases and contracts for goods and services are under the control and direction of the City Manager. The City Council, City Manager, Deputy City Manager, and Department Heads are authorized to bind the City to contractual agreements for Goods, Services, and Public Works Projects.

Delegation of Approval Authority
Pursuant to Resolution No. 2022-035, the Approval Authority applicable for the purchase of Goods, Services, and Public Works Projects shall be delegated as follows:

Award by City Manager. The City Manager may make purchases or contracts for Goods, Services, and Public Works Projects in an amount up to One Hundred Thousand ($100,000) Dollars. Contracts that exceed $100,000 are subject to review and approval by the City Council.

Award by Deputy City Manager. The Deputy City Manager may make purchases or contracts for Goods, Services, and Public Works Projects in an amount up to Fifty Thousand ($50,000) Dollars.

Award by Department Heads. Department Heads may make purchases or may make purchases or contracts for Goods, Services. Public Works Projects in amount up to Twenty-Five Thousand ($25,000) Dollars.

The following chart outlines the respective Approval Authority limits as described in this Section 1.1.1:

Authorized Official
Limit
Department Head
<$25,000.00
Deputy City Manager
<$50,000.00
City Manager
<$100,000.00
City Council
>$100,000.00
Delegation of Authority for Purchase Orders
The Purchasing Manager has been delegated authority to issue purchase orders for all purchases on forms approved by the Chief Financial Officer of the Department of Finance. Prior to the issuing a purchase order, the Purchasing Manager shall ensure that the requesting department has sufficient funds to purchase the goods and services and that the request has been approved in accordance with the purchasing approval authority above.

Procurement Law
Contracts for goods and services must comply with federal, state, and local laws. The primary governing authorities are determined by the source of funds being used, jurisdiction, and the governing body incorporated into the contract.

Municipal Contract Law
Cities have governing authority to enter contracts for goods and services to carry out its necessary functions, including those expressly granted and those implied by necessity. Cities also have specific statutory authority to contract for special services, including financial, economic, accounting, engineering, legal, and administrative functions.

Public Works Contracts are governed by the State of California. The law relating to Public Works Contract for the City is found primarily in the California Public Contract Code (PCC) and secondarily in the California Government Code (GC), Labor Code (LAB), and Civil Code (CIV).

The City’s contract templates, and standard terms and conditions incorporate all applicable statutory requirements from the State of California and the City’s Municipal Code. All terms and conditions are incorporated and binding for all contracts and purchase orders using City’s resources.

Government Grant Law
The primary governing authority for grants is the terms and conditions of the individual grant and the agency- specific provisions imposed by the awarding agency. Federal grants are governed by the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), also known as the Uniform Guidance. Contracts for goods and services using federal grants include various terms and conditions, including individual grant terms and conditions, program provisions, agency-specific provisions, and the City’s terms and conditions. All levels of terms and conditions are incorporated and binding. However, when there is a conflict, the order of precedence determines which terms and conditions prevail. For more details regarding federal grants, see Section 6.0 - Federal Emergency and Grant Procurement Procedures.

The City’s contract templates, and Government Grant provisions incorporate all applicable statutory requirements from the federal government and the City’s Municipal Code. All terms and conditions are incorporated and binding for all contracts and purchase orders under federal grants.

Ethics
City Employees shall always uphold the highest level of ethical conduct in performing purchasing activities on behalf of the City. At a minimum, City Employees shall comply with the standards set forth in Fontana Administrative Policy 15-01 – Conflict of Ethics, the Political Reform Act, GC sections 8100 et seq., the Fair Political Practices Commission (FPPC) regulations, GC section 1090, and the Anti-Kickback Enforcement Act of 1986.

Personal Conflict of Interest
City Employees are prohibited from soliciting or accepting any gift, money, favor, entertainment, hospitality, loan or any other item of value for the performance of an act which the City Employee is expected or required to render in the course and scope of City employment, regardless of whether the item of value is for the City Employee or for someone else.

A non-exclusive list of examples of gratuities which, if received, would violate this policy is as follows:

Beverages and/or meals;
“Tips” whether in the form of cash or merchandise;
Discounts on personal purchases for goods and/or services; and Gifts.

In general, if a City Employee would not have been offered a Gratuity but for the fact of being employed and serving in the capacity as a City Employee, then acceptance of any item of value is prohibited. Even if acceptance of a Gratuity is allowed under this policy, the City Employee shall comply with all reporting requirements under state and local law.

NOTE: Unsolicited gifts which cannot be reasonably returned (such as perishable foods, candy, or flowers) must be shared at large with all City Employees and the public or provided to a nonprofit charitable organization for use.

Disciplinary Action
Failure to obey the foregoing policies will result in appropriate disciplinary action and may result in discharge from City employment.

ROLES AND RESPONSIBILITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer
The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the competitive procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads
Department Heads are responsible for holding their City Employees accountable for the purchasing activities they make on behalf of the City and to ensure that they comply with all purchasing policies and procedures.

Purchasing Manager
The Purchasing Manager has the authority and responsibility to carry out his or her job responsibilities, including the enforcement of purchasing policies and any guidelines promulgated by the City Manager as determined by the Chief Financial Officer of the Finance Department and approved by the City Manager.

City Employees
City Employees are responsible for understanding their liabilities and obligations when they communicate with vendors and contractors. City Employees are prohibited from making promises to vendors and contractors and signing contracts for goods and services on behalf of the City unless they have expressed authority to do so in accordance with the City’s Municipal Code. In the event a City Employee negotiates terms and conditions of a contract for goods and services, the City Employee must consult with the Purchasing Manager prior to making any commitments to a vendor or contractor.

DEFINITIONS
Approval Authority – means the City Council, City Manager, Deputy City Manager, or Department Head with the authority to approve a particular contract or purchase.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Department Head – a director of a department within the City.

Ethics – moral principles governing or influencing conduct, including fairness, integrity, and transparency in the City’s purchasing activities.

General Services - mean furnishing of labor, time, or effort by a contractor for non-professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Gratuity – anything of more than nominal value given in exchange for more than the market value of that which is provided.

Maintenance Services– mean the furnishing of labor, time, or effort by a vendor, including but not limited to: as defined in PCC Section 22002, Maintenance is: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape Maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Professional Services – as defined means the services of attorneys, architects, auditors, consultants, engineers, specialized printers or other individuals or firms possessing a high degree of professional, unique, specialized, or technical skill or expertise.

Public Project or Public Works Project – as defined in PCC Section 22002, a Public Project/Public Works Project is: (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (2) Painting or repainting of any publicly owned, leased, or operated facility; (3) In the case of a publicly owned utility system, “Public Project/Public Works Project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Public Works Contract – an agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

Services – means general services, maintenance services, or professional services.

Uniform Guidance – The Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) is Federal legislation that governs the Federal grant process from pre-award to post-award administration.

2.0 Purchasing Goods and Services PolicyPURPOSE

2.0 Purchasing Goods and Services Policy
This policy is to ensure that City Employees are purchasing Goods and Services in compliance with the City of Fontana’s (the City) policies and procedures, federal, state, and local laws, while obtaining favorable pricing and terms that are most advantageous to the City.

POLICY
This policy ensures that contracts and purchases for Goods and Services are in accordance with all requirements outlined in the Fontana Municipal Code (FMC) – Chapter 10 - Article V. Purchasing, California Public Contract Code (PCC), the California Uniform Public Construction Cost Accounting Act (CUPCAA), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles Competitive Requirements (Uniform Guidance).

Purchasing Mechanisms
The following purchasing mechanisms must be used when purchasing Goods and Services on behalf of the City:

2.1.1 Purchase Order (PO)
The preferred mechanism to use to purchase Goods and one-time Services is by a Purchase Order (PO). To purchase by a PO, the Requestor from the department must submit a Purchase Requisition through the City’s Enterprise Resource Planning (ERP) System. The Requestor must ensure that all supporting documentation is attached to the Purchase Requisition, including a quotation or proposal, and a Competitive Source Selection Justification or a Non-Competitive Source Selection Justification if applicable. The PO mechanism is used in the following instances:

One-time purchases of various goods and services when required information about the purchase is known, including estimated costs, quantities, delivery schedules, and accounting distributions.

Annual Purchase Orders are for a repetitive nature, or when an exact dollar amount is unknown for the Fiscal Year.

Multi-Year Purchase Orders that are a firm price agreement with a vendor for specific commodities or services for a per-determine period of time. Purchasing, in cooperation with the using department, will identify the need for a multi-year purchase order after examining past usage. Multi-year purchase orders are established through competitive bidding depending on the dollar value. Multi-year purchase orders are usually based on specific items or services, definite or indefinite quantities to be ordered as needed, over the contract period.

POs must be used to encumber funds once a contract has been executed. After a contract has been executed and created in ERP System, the department will submit a Purchase Requisition to create a PO that is linked to the contract to encumber the funds. .

Purchasing Card (P-Card)
Authorized Cardholders can purchase low-value goods and services, in accordance with the Purchasing-Card Policy 20-55 (Administrative Policy).

Request for Check/Pay Voucher
The Request for Check/Pay Voucher mechanism to purchase Goods and Services is only used for certain types of purchases for which a PO is not required, or competitive bidding is not required. Any purchase for goods and services submitted by the Request for Check/Pay Voucher must adhere to the comprehensive listing of allowable exemptions can be accessed City’s intranet of the Purchasing’s CityNet Page. One-time purchases of supplies, services, and equipment of $3,000 or less, require a Request for Check/Pay Voucher. FMC 10-145 Petty Cash
Petty Cash may only be used for unplanned purchases totaling amount of $100.00 for supplies, mileage advance or reimbursement, parking and must adhere to the Petty Cash Policy 20-16 (Administrative Policy).

Purchase Requisitions
Purchase Requisitions authorize the Purchasing Manager to make purchases on behalf of the requesting department. Prior to submitting a Purchase Requisition through the ERP System, the Requestor must ensure the following:

Purchase Requisitions must include all relevant information for the purchase, including the vendor/vendor’s contact information (e.g., contact person, company name and address, email address, and phone number), an attached written quote or proposal from the vendor, and any other relevant documents that may be useful to the Purchasing Office.); and Purchase Requisitions must include the appropriate attachments (e.g., staff reports, competitive quotes or proposals and a Competitive Source Selection Justification for competitive purchases, or a Non-Competitive Source Selection Justification for noncompetitive purchases) to meet the Competitive Threshold requirements for purchases that exceed $10,000 as outlined in Section 2.4 Competition.

2.2.1 Purchase Order Change Order
In the event the department wants to modify an existing PO that changes the price, quantity, period of performance, or terms and conditions, the Requestor must submit a Purchase Order Change Order (“Change Order”) through the ERP System. The Requestor must ensure the following when submitting a Change Order:

If the Change Order amount causes the total amount of the PO to exceed $10,000, then the Requestor will need to include the appropriate attachments, including a Non-Competitive Source Selection Justification to meet the Competitive Threshold requirements as outlined in Section 2.4 Competition; If the Change Order is for an existing PO that already exceeds $10,000, then at the Purchasing Manager’s discretion, may request a Non-Competitive Source Selection Justification that addresses the changes to the PO; and Change Order, as required, may include a revised quote or proposal that reflects the modifications of the contract or Purchase Order, including a revised statement of work (SOW), budget, quantities, prices, period of performance, or any other revised terms and conditions.

Unauthorized Orders
Unauthorized Orders are those for which a Purchase Requisition is submitted after Goods or Services were received without a Purchase Order (e.g., reimbursements and invoice for receipt of goods and services without a PO). Unauthorized Orders present a significant risk to the City, including entering into contractual agreements without the appropriate terms and conditions incorporated into the contract or Purchase Order, increased risk and liability to the City, and limited recourse in the event of a dispute with a vendor. Unauthorized Orders are not acceptable. However, in the event of an emergency or a circumstance where an Unauthorized Order is unavoidable, the City Manager or designee will permit the transaction.

If an Unauthorized Order is submitted to Purchasing Office, the Purchase Requisition must comply with all the requirements outlined in Section 2.2. Purchase Requisitions and Section 2.4 Competition. In addition, reimbursements must have proof of payment documentation attached to the Purchase Requisition, including receipts, invoices, or credit card statements.

Competition
The City’s competitive purchasing requirements are to ensure that all contracts and purchases for goods and services are conducted in a manner that provides full and open competition consistent with FMC –Section 10 - Article V. Purchasing, PCC, CUPCAA, and Uniform Guidance. The competitive purchasing requirements promote transparency, stimulate competition, prevent favoritism, and secure the best value of goods and services for the City. This is further described in Section 3.0 Bidding Procedure.

Documentation
All purchases that exceed $10,000 require the following supporting documentation:

Competitive Source Selection Justification or Non-Competitive Source Selection Justification and Bid Tabulation for Evaluated Procurements must be included as a separate document which details the evaluation criteria.

All purchases that exceed $100,000 require the following supporting documentation:

A Staff Report that has been approved by the City Council which justifies the rationale of the source selection (e.g., competitive, or noncompetitive).

Environmentally Preferable Purchases
The City of Fontana in order to comply with SB 1383 to purchase recycled content and environmentally preferred products whenever practicable, in accordance with the Administrative Policy 20-31.

Federal Grant Requirements
All purchases fully funded or partially funded by a Federal Grant require the following:

Government Funded Grant Provisions incorporated and binding for all POs and contracts; Equipment Screening for all equipment purchases that exceed $5,000; Certification of Debarment is required for all purchases that are equal to or exceed $25,000; Certification of Anti-Lobbying is required for all purchases that equal or exceed $100,000; Independent Cost Estimate prior to issuing a solicitation for purchases that exceed $100,000; and Cost Price/Analysis for purchases that exceed $100,000.

Purchase Threshold
Federal Grants
> $5,000
Equipment Screening
> $25,000
Certification of Debarment
> $100,000
Certification of Anti-Lobbying
Independent Cost Estimate prior to issuing a solicitation Cost/Price Analysis
Purchase of Consumable Items
The City allows the purchase of food, beverages and/or other related consumable goods for certain official city programs and events. However, the purchase of food, beverage and/or other consumable goods for events such as staff meetings, holidays, birthdays, or retirements parties is generally prohibited unless: (1) the purchase is authorized by the City Manager or (2) the event falls within one of the following exceptions:

City Council and Commission meetings
Public Groundbreaking
Outside interview panels for employment
In-house training when employees are required to participate in the training program Intra-department meetings
Community Services Department Programs
Volunteer Work Programs

ROLES AND RESPONSIBLITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Department Heads
Department Heads are responsible for holding their employees accountable for the purchasing activities they make on behalf of the City and to ensure that they comply with all purchasing policies and procedures.

Purchasing Manager
Purchasing Manager is responsible for ensuring that all contracts and purchases for goods and services are conducted in a manner that provides full and open competition, appropriate documentation, including source justifications, Cost/Price Analysis, and the rationale of purchasing decisions. In addition, Purchasing Manager shall minimize the risk to City by assisting the Requestors by selecting the appropriate contract types, ensuring that vendors comply with our insurance requirements, and making prudent business decisions with the assistance of the City Attorney when vendors take exceptions to City’s terms and conditions.

Requestor
The Requestor must ensure that Purchase Requisitions are complete and accurate, including detailed itemized lines of the goods and services being purchased, correct funding sources, and correct expenditure types. Prior to submitting a Purchase Requisition to Purchasing, the Requestor is responsible for ensuring that all the appropriate supporting documentation is attached to the Requisition.

DEFINITIONS
As used in this policy:

Annual Purchase Order – a term contract or basic agreement between the City and a vendor to address recurring low-value purchases of goods and services for a specific period.

Bid Tabulation – a summary of the results of proposals or quotes submitted by suppliers to be evaluated based on a set of evaluation criteria.

California Uniform Public Construction Cost Accounting Act (CUPCAA) – the Uniform Public Construction Cost Accounting Act (Act), enacted in 1983 under Public Contract Code section 22000 et seq., allows local agencies to perform public project work of up to $60,000 with their own workforces if the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission.

Cardholders – an authorized individual who may make purchases for goods and services on behalf of the City with a P-Card.

City Council – the City Council serves as the legislative branch of City of Fontana Government and consists of a Mayor and four Council Members, all nonpartisan.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Competitive Source Selection Justification – a summary of all the quotes or proposals received for a specific requirement and the rationale behind the selection of a successful vendor.

Competitive Threshold – a dollar threshold that requires competition, either by Informal or Formal Competition.

Cost/Price Analysis – a review to determine and evaluate the cost elements of a vendor’s proposal to determine how well the proposed costs represent what the cost of the contract should be, including price reasonableness. Factors to be considered in determining price reasonableness include commodity markets, price lists, price quotations, negotiated pricing, input costs, transaction costs, relational costs, and landed costs.

Certification of Compliance to Anti-Lobbying – a certificate required by Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part200) to ensure that vendors have not and will not lobby public officials with Federal funds.

Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters – a certificate required by Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) to ensure that vendors have not been suspended or debarred from doing business with the Federal Government.

Encumbrance – an amount of money that one is required to spend on a stated item or service in the future or the amount of money that remains on a Purchase Order after invoicing.

Enterprise Resource Planning System – the system through which the City manages its day-to-day business activities including accounting, payroll, purchasing and other financial activities.

Equipment Screening – a screening process of ensuring, either prior to an equipment purchase or concurrently with the equipment purchase, that the same or equivalent piece of equipment is not in excess or otherwise available to share.

Evaluated Procurement – an award based on evaluated criteria other than the lowest price.

Fiscal Year – a one-year period to report the City’s financial information.

Federal Grant – an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.

Formal Competition – a formal solicitation, including Request for Information (RFI), Sealed Bids, Request for Qualifications (RFQ), and Request for Proposals (RFP) that is publicly advertised online.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Informal Competition – an informal solicitation to vendors either by email or online for a Request for Qualifications (RFQ), Quotes, or Request for Proposal (RFP).

Independent Cost Estimate – documentation, in an organized effort, to gather cost and pricing data for targeted markets. Market research is used to support the Independent Cost Estimate.

Micro-Purchase – a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000.

Multi-Purchase Order – is a firm price agreement with a vendor for specific commodities or services for a pre-determined period of time.

Non-Competitive Source Selection Justification – a documented justification that underlines the reasons why only one source was solicited for a requirement, including that the item is only available through a single source, the purchase is being done through a cooperative purchasing agreement, the price obtained from the vendor is the same price that was offered to another public agency, the emergency for the requirement will not permit a delay from a competitive solicitation, it is a follow-on purchase, or after solicitation to a number of sources, competition was determined inadequate.

OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) (Uniform Guidance) – Federal legislation that governs the Federal financial assistance (grants and cooperative agreements) process from pre-award to close-out.

Petty Cash – Amount of City cash, kept on hand, to pay for minor or incidental expenses more particular described in Petty Cash Policy 20-16 (Administrative Policy).

Purchasing Card (P-Card) – a City credit card issued to an individual by Purchasing Office to purchase Goods and Services on behalf of the City. P-Cards are also used for travel expenses.

Purchase Order (PO) – a commercial document and first official offer issued by Purchasing Office to a seller, indicating types, quantities, agreed prices for Goods and Services, and the terms and conditions of the offer.

Purchase Order Change Order or Change Order – a Purchase Order Change Order/Change Order in ERP System that is used by the department to initiate a modification to an existing Purchase Order.

Purchase Requisition – a document generated through the ERP System to notify the Purchasing Office of Goods and Services needed by a department. It is a formal authorization to purchase Goods and Services on behalf of the department.

Purchasing Office – a division within the Department of Finance responsible for ensuring compliance with the City’s purchasing policies and procedures.

Request for Check/Pay Voucher – a method to purchase Goods and Services when certain types of purchases do not require a formal Purchase Order or where negotiation adds no value. Request for Check/Pay Vouchers are used for reimbursements, per-diems, travel, and miscellaneous items.

Request for Information (“RFI”) - a solicitation document used to obtain general information about products, services, or suppliers. It is an information request, not binding on either the supplier or the City, and is often used prior to specific requisitions for items. The purpose of an RFI is to gain familiarity with the current market for a particular supply or service and to gather information in a formal, structured, and comparable way.

Request for Proposal (“RFP”) - is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.

Request for Qualification (“RFQ”) - is a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQ generally does not require specific project knowledge or scope. An RFQ may be used as a pre-qualification step to engaging a service provider. If an RFQ is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQ will contain specific reference to selection criteria.

Requestor – a City Employee that submits Purchase Requisitions through ERP System to make purchases on behalf of the City.

Services – means general services, maintenance services, or professional services.

Staff Report – a report prepared by staff and presented to the City Council for approval of some action taken by the department.

Unauthorized Order – Unauthorized Orders are those for which a Purchase Requisition was submitted after a purchase for Goods and Services was placed with an individual’s own financial resources or without a Purchase Order.

CITY OF FONTANA

COMPETITIVE SOURCE SELECTION JUSTIFICATION
Contract/Req. No.:

Amendment No.:

Requestor:

Date:

Pre-Tax Amount:
$
Tax:
$
Freight:
$
Total Amount:
$
Vendor Name:

FUNDING SOURCE AND AUTHORIZATION (check as applicable)
City Resources
Gov’t Grant
Other
Certifications:

Debarment1
Anti-Lobby2
Certificate(s) Attached
Not Applicable
Fund:

Object Code:

Equipment Screening3:

Yes
Not Applicable
Title Vests: -
Purchase Description:

Source Selection:

PROCUREMENT SELECTION RATIONALE
Vendor
Total Amount
(With tax/freight)
Technically Acceptable
(Y/N)
AWARDED TO LOWEST RESPONSIVE AND RESPONSIBLE BIDDER. (Please attach bid tabulation or bid opening sheet if you have more than three bids) NOT AWARDED TO LOWEST BIDDER (Explain rationale below: Only to be used for professional services or an evaluated procurement other than public works contracts):

Small Business’ Solicited (Federally Funded Procurements Only) Document whether Small Business, HUBZone Small Business, Small Disadvantaged Business, Women Owned Small Business or Service Disabled Veterans Owned Business or Veterans of Vietnam Era Owned Business concerns were solicited and, if not, why not.

Applicable Businesses’ referenced above were solicited.

No Applicable Businesses referenced above were solicited because Requestor Name (Print) Signature Date
Department Director Name (Print) Signature Date
1 Applies to purchases under a Federal Grant equal to or more than $25,000 2 Applies to purchases under a Federal Grant equal to or more than $100,000 3 Applies to equipment purchases under a Federal Grant equal to or more than $5,000

CITY OF FONTANA

NON-COMPETITIVE SOURCE SELECTION JUSTIFICATION
Contract/Req. No.:

Amendment No.:

Requestor:

Date:

Pre-Tax Amount:
$
Tax:
$
Freight:
$
Total Amount:
$
Vendor Name:

FUNDING SOURCE AND AUTHORIZATION (check as applicable)
City Resources
Gov’t Grant
Other
Certifications:

Debarment4
Anti-Lobby5
Certificate(s) Attached
Not Applicable
Fund:

Object Code:

Equipment Screening6:

Yes
Not Applicable
Title Vests: -
Purchase Description:

Source Selection - Competition is impracticable (Check appropriate box):

UNAVAILABLE FROM ANY OTHER SOURCE. No competitive advantage would be gained from competitive pricing, such as when equipment, goods, materials, supplies, personal property, or services are unique and are only available from one source. (Explain below. Include all contacts made to verify the sole source or single source situation.) COOPERATIVE PURCHASING AGREEMENT. This product or service required is being purchased under a cooperative purchasing agreement. (Explain below).

SAME PRICE PURCHASED BY ANOTHER PUBLIC AGENCY. The product or service required was awarded a bid by another public agency that has purchasing procedures substantially similar to those that the city would have been required to use, and the vendor offers the same price(s) to the city that it offered to the other agency.

EMERGENCY. This product or service required is due to an emergency, determined by the City Manager, which could not have been anticipated and critical need precludes any form of competition. (Purchases more than $50,000 must be presented at the next regular City Council Meeting for ratification by the City Council. Please attach supporting documentation and approval from City Manager).

OTHER REASON(S). (Explain below).

Detail information to support above justification(s):
4 Applies to purchases under a Federal Grant equal to or more than $25,000 5 Applies to purchases under a Federal Grant equal to or more than $100,000 6 Applies to equipment purchases under a Federal Grant equal to or more than $5,000 Price/Cost Analysis (ONLY APPLICABLE TO PURCHASES/CONTRACTS THAT EXCEED $100,000):

The action taken in verifying price reasonableness is indicated below. Identify the method(s) listed below used to verify price reasonableness. Check one or more paragraphs below as applicable.

Current price schedule (verifiable catalogue, published price list, etc.) Schedule Name/No.: Unit Price: $
Supplier Contact: Date of Schedule:

Previous purchase.

Supplier: Unit Price:

PO No.: PO Date:

Similar item in related industry.

Price Source: Unit Price:

Supplier: Date:

Any other Reasonable basis:

Applicable Businesses’ referenced above were solicited.

No Applicable Businesses referenced above were solicited because Required Signatures:

---------------------Attach additional sheets as needed---------------------- Requestor Name (Print) Requestor Signature Date
Department Director Name (Print) Department Director Signature Date

GOVERNMENT FUNDED GRANT PROVISIONS
If this Purchase Order/Contract is funded under a U.S. Government grant the following provisions as contained in Appendix II of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule (2 CFR Part 200, et al) are part of this Order. If any conflict arises between the provisions of these Government Funded Grant Provisions and any other provisions of this Purchase Order/Contract, the Government Funded Grant Provisions shall prevail.

Equal Employment Opportunity (E.O. 11246 as amended by E.O. 11375 and supplemented by 41 CFR part 60).

For construction with Federal funds: the Davis-Bacon Act (40 U.S.C. 3141-3148) as supplemented by 29 CFR part 5.

Copeland “Anti-Kickback” Act (40 U.S.C. 3145 and 29 CFR part 3).

Where applicable, the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701- 3708) as supplemented by 29 CFR part 5.

For non-profit organizations and small business, patent rights will be governed by 37 CFR part 401,“Rights to Inventions Made by Non-Profit Organizations and Small Business Firms under Government Grants, Contracts and Cooperative Agreements.” The Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387.), as amended.

Mandatory standards and policies relating to energy efficiency contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

When applicable, this Order is subject to Debarment and Suspension (E.O.s 12549 and 12689) as provided in 2 CFR part 180.

The BYRD Anti-Lobbying Amendment (31 U. S. C. 1352): awards of $100,000.00 or more will file the required certification.

Other Provisions
The Federal awarding agency, the Comptroller General of the United States, or any of their duly authorized representatives, shall be provided with access to documents, papers and records directly pertinent to a specific program for audits, examinations, excerpts and transcriptions.

CITY OF FONTANA

EQUIPMENT SCREENING FORM
Applicability: Purchasing Capital Equipment >$5,000, Reportable Agency Submission Process: Attach to Requisition Originating Authority: 2 CFR 200.313; 2 CFR 200.318 (d) Effective Date: July 1, 2020
Awards
Requestor:

Total Amount:
$
Grant No./FAIN:

Fund:

Purchase Description:

Title Vests:

Approved by Funding Agency
YES NO
Federal regulations require the City of Fontana to use capital equipment in the program or project(s) for which it was acquired (2 CFR 200.313). Additionally, regulations state that City of Fontana is to avoid the acquisition of unnecessary or duplicative items (2 CFR 200.318 (d)). Using the below form, identify how the unique functions of the capital equipment will assist in meeting the aims of the project(s). If the equipment will benefit multiple projects, the below justification must describe the process for allocating costs.

Justification:

Any relevant documentation, such as written confirmation from the awarding agency must be attached to the requisition. Contact your Grant Program Administrator liaison with allowability questions or Finance Department.

To the best of my knowledge, the capacity and specific functionality provided by this equipment is not currently available at City of Fontana.

Requestor:

Grant Program Administrator: Date Submitted:

CITY OF FONTANA

DEBARMENT AND ANTI-LOBBYING CERTIFICATION
Vendors must sign this form in the designated location on page 2.

To be completed by City of Fontana:

Vendor Name: Requisition/Contract/Purchase Order Number:

Debarment Certification
To be completed by City of Fontana:Federal grant or cooperative agreement: ≥ $25,000 To be completed by City of Fontana:

Federal grant or cooperative agreement: ≥ $25,000
Vendors, please complete the following certification and sign the bottom of page 2.

MATTERS (FIRST TIER SUBCONTRACTOR)
(1) The Offeror certifies, to the best of its knowledge and belief, that— CERTIFICATION REGARDING DEBARMENT, SUSPENSION, PROPOSED DEBARMENT, AND OTHER RESPONSIBILITY The Offeror and/or any of its Principals— Are are not presently debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any Federal agency; Have have not , within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for: commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; and Are are not presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in subdivision (a)(1)(i)(B) of this provision.

The Offeror has has not , within a three-year period preceding this offer, had one or more contracts terminated for default by any Federal agency. (2) "Principals," for the purposes of this certification, means officers; directors; owners; partners; and, persons having primary management or supervisory responsibilities within a business entity (e.g., general manager; plant manager; head of a subsidiary, division, or business segment, and similar positions).

THIS CERTIFICATION CONCERNS A MATTER WITHIN THE JURISDICTION OF AN AGENCY OF THE UNITED STATES AND THE MAKING OF A FALSE, FICTITIOUS, OR FRAUDULENT CERTIFICATION MAY RENDER THE MAKER SUBJECT TO PROSECUTION UNDER SECTION 1001, TITLE 18, UNITED STATES CODE.

The Offeror shall provide immediate written notice to the City of Fontana if, at any time prior to subcontract award, the Offeror learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

A certification that any of the items in paragraph (a) of this provision exists will not necessarily result in withholding of an award under this solicitation. However, the certification will be considered in connection with a determination of the Offeror's responsibility. Failure of the Offeror to furnish a certification or provide such additional information as requested by the City of Fontana may render the Offeror nonresponsible.

Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by paragraph (a) of this provision. The knowledge and information of an Offeror is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

The certification in paragraph (a) of this provision is a material representation of fact upon which reliance was placed when making award. If it is later determined that the Offeror knowingly rendered an erroneous certification, in addition to other remedies available to the City of Fontana, the City of Fontana may terminate the contract resulting from this solicitation for default.

Anti-Lobby Certification
To be completed by City of Fontana:Federal grant or cooperative agreement: ≥ $100,000 To be completed by City of Fontana:

Federal grant or cooperative agreement: ≥ $100,000
CERTIFICATION AND DISCLOSURE REGARDING PAYMENTS TO INFLUENCE CERTAIN FEDERAL TRANSACTIONS (SEPT 2007) Definitions. As used in this provision-“Lobbying contact” has the meaning provided at 2 U.S.C. 1602(8). The terms “agency,” “influencing or attempting to influence,” “officer or employee of an agency,” “person,” “reasonable compensation,” and “regularly employed” are defined in the FAR clause of this solicitation entitled “Limitation on Payments to Influence Certain Federal Transactions” (52.203-12).

Prohibition. The prohibition and exceptions contained in the FAR clause of this solicitation entitled “Limitation on Payments to Influence Certain Federal Transactions” (52.203-12) are hereby incorporated by reference in this provision.

Certification. The offeror, by signing its offer, hereby certifies to the best of its knowledge and belief that no Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress on its behalf in connection with the awarding of this contract.

Disclosure. If any registrants under the Lobbying Disclosure Act of 1995 have made a lobbying contact on behalf of the offeror with respect to this contract, the offeror shall complete and submit, with its offer, OMB Standard Form LLL, Disclosure of Lobbying Activities, to provide the name of the registrants. The offeror need not report regularly employed officers or employees of the offeror to whom payments of reasonable compensation were made.

Penalty. Submission of this certification and disclosure is a prerequisite for making or entering into this contract imposed by 31 U.S.C. 1352.Any person who makes an expenditure prohibited under this provision or who fails to file or amend the disclosure required to be filed or amended by this provision, shall be subject to a civil penalty of not less than $10,000, and not more than $100,000, for each such failure.

This certification must be signed by an authorized representative of your organization.

Certified by (Signature): Printed Name: Company Name: Date:

3.0 Bidding ProcedurePURPOSE

3.0 Bidding Procedure
This procedure is to ensure that City Employees are purchasing Goods and Services in compliance with the City of Fontana’s (the City) policies and procedures, federal, state, and local laws, while obtaining favorable pricing and terms that are most advantageous to the City.

PROCEDURE
This procedure ensures that contracts and purchases for goods and services are in compliance with all bidding requirements outlined in the Fontana Municipal Code (FMC) – Chapter 10 - Article V. Purchasing, California Public Contract Code (PCC), the California Uniform Public Construction Cost Accounting Act (CUPCAA), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles competitive requirements (Uniform Guidance).

Purchasing Methods
The following purchasing methods must be used when acquiring Goods and Services on behalf of the City in accordance with the Purchasing Method and Cost Threshold Matrix:

Micro-Purchase
Purchasing by the Micro-Purchase method must be used when acquiring Goods and Services when the aggregate dollar amount does not exceed $10,000. To the extent practicable, the City shall distribute Micro-Purchases equitably among qualified vendors. Micro-Purchases may be awarded without soliciting competitive quotations or proposals if the City considers the price to be fair and reasonable.

Small Purchase
The Small Purchase method is an Informal Competition procedure for relatively simple and informal procurements of Goods, Services, property, and Public Projects. The Small Purchase method shall be used for Goods, Services, and property when the proposed purchase amount is between $10,000 to $100,000. The Small Purchase method shall be used for Public Projects that are between $60,000 and $200,000.

Purchases of Goods and Services. If the Small Purchase method is used, the Requestor may informally solicit three (3) competitive vendors either written or via email request for quotations or proposals for goods and services. Once the Requestor receives at least three quotations or proposals, a Competitive Source Selection Justification, documenting the rationale of the selection, must be filled out, signed by the Department Director, and submitted with the Purchase Requisition to the Purchasing Office.

Maintenance. If the Small Purchase method is used for Maintenance contracts, then the appropriate solicitation type would be determined by the basis of selection. If the basis of selection is the lowest responsive and responsible bidder, then the Requestor shall use the same Informal Competition procedures as for Public Projects (Section 3.2.2 – Informal Competition Procedures for Public Projects (contracts that exceed $60,000 but less than or equal to $200,000). If the basis of selection is based on an Evaluated Procurement, then the Requestor may informally solicit three (3) competitive vendors either written or via email request for quotations or proposals for such Maintenance services.

Public Projects. If the Small Purchase method is used for Public Projects, Informal Competition procedures shall be used in accordance with CUPCAA and Section 3.2.2.

Sealed Bid
The Sealed Bid method is a formal advertisement online that is publicly solicited, and a firm fixed-price contract is awarded to the responsive and responsible bidder whose bid, conforms with all the material terms and conditions of the Invitation for Bid (IFB) and is the lowest price. This method must be used for all Public Projects that exceed $200,000. This method should also be used for Goods that exceed $100,000 for such purchases that cannot be used for the Competitive Proposal or Noncompetitive Proposal method.

Conditions for Sealed Bid Method. The following conditions should be present for the Sealed Bid method to be feasible:

A complete, adequate, and realistic specification or purchase description is available; Two or more responsible bidders are willing and able to compete effectively; and The purchase lends itself to a firm fixed-price contract and the selection of the successful bidder can be made based on price.

Requirements for Sealed Bid Method. The following requirements shall be used for the Sealed Bid method:

All IFBs for Public Works Projects must use Formal Competition procedures in accordance with CUPCAA and Section 3.2.3 Formal Competition Procedures for Public Projects (contracts that exceed $200,000); An Independent Cost Estimate or Engineer’s Estimate must be developed prior to issuing the IFB; IFBs must be solicited from an adequate number of known bidders, providing sufficient response time prior to the date set for opening the bids; The IFBs, which include any specifications and pertinent attachments, must define the items or services for the bidder to properly respond; All bids will be opened at the time and place prescribed in the IFB whether opened publicly at the City or opened electronically on the city’s online bid system; A firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder; and Any or all bids may be rejected if there is a sound documented reason.

City Council shall award sealed bids.

Sealed Proposal
The Sealed Proposal method is a formal advertisement online, Request for Proposal (RFP), that is publicly solicited for Services, , to award either a firm fixed-price, cost-reimbursement, or time-and-materials type contract when the source selection is based on an Evaluated Procurement. The Sealed Proposal method must be used for all purchases exceeding $100,000.

Requirements for Sealed Proposal Method. The following requirements shall be used for the Sealed Proposal method:

RFPs must be publicized online and identify all evaluation factors and their relative importance. Any response to publicized RFPs must be considered to the maximum extent practical; Proposals must be solicited from an adequate number of qualified vendors; An Independent Cost Estimate must be used for all purchases that exceed $100,000; An Evaluation Committee must be established for all purchases that exceed $100,000 of at least three individuals. The Evaluation Committee must have a written method for conducting technical evaluations of the proposals received and for selecting the successful vendor; Contracts must be awarded to the responsible vendor whose proposal is most advantageous to the City, with price and other factors considered; and The City may use the Qualified Proposal method for Qualifications-Based Selection (QBS) of Architectural/Engineering (A/E) Professional Services whereby vendors’ qualifications are evaluated and the most qualified vendor is selected, subject to negotiation of a fair and reasonable price. The method, where price is not used as a selection factor, can only be used in procurement of A/E Professional Services. QBS cannot be used to purchase other types of services through A/E vendors as a potential source to perform the proposed service.

City Council shall award sealed proposals.

Non-Competitive Proposal
The Non-Competitive Proposal method may be used only when one or more of the following circumstances apply:

Single Source/Sole Source. No competitive advantage would be gained from competitive pricing, such as when equipment, goods, materials, supplies, personal property, or services are unique and are only available from one source; Cooperative Purchasing Agreement. The product or service required is being purchased under a cooperative purchasing agreement; Same Price Purchased by Another Public Agency. The product or service required was awarded a bid by another public agency that has purchasing procedures substantially similar to those that the City would have been required to use, and the vendor offers the same or better price(s) to the City that it offered to the other agency; Unique Services. Services from Attorneys, Entertainers, Music Artists, Class Instructors, Counseling, and Motivational Speakers.

Emergency. The product or service required is due to an emergency, determined by the City Manager, which could not have been anticipated and critical need precludes any form of competition. (Purchases more than $100,000 must be presented at the next regular City Council meeting for ratification by the City Council. Please attach supporting documentation and approval from City Manager); and Bidding impractical. When the City Council determines by that bidding would be impractical, inefficient, or otherwise not in the best interest of the City, provided that the City Council shall state the basis for its determination in the resolution.

Budgeted non-commodity items. Budgeted non-commodity items such as debt service payments, deposits, dues, insurance premiums, legal advertising, memberships, publications, self-insurance claim payments, seminar registration, subscriptions and travel expenses.

Real property. Real property purchases and leases, utility services and related charges, work or services performed by another public agency.

Other Circumstances. The following circumstances permit the use of the Non-Competitive Proposal method and shall be documented in the Non-Competitive Source Selection Justification:

A purchase that is a follow-on procurement, where the non-competitive purchase is placed with an incumbent vendor, either by a separate new contract or by a supplemental contract, to continue or augment a City program to maintain continuity of that program, where such placement was necessitated by prior procurement decisions; A purchase under a grant where the awarding agency expressly authorizes the Non-competitive Proposal method in response to a written request from the City; After solicitation of several vendors, competition is determined inadequate; When the Design-Build project delivery method is used; and For renewable energy and energy efficiency projects.

Bidding Procedures for Public Projects
The following bidding procedures apply to all Public Projects and are in compliance with PCC, CUPCAA, and Uniform Guidance.

Public Works Projects $60,000 or less
Public Projects with an estimated cost of $60,000 or less may be performed by City Employees by force ac- count or else may be awarded by negotiated contract or by purchase order without competitive bidding.

Informal Competition Procedures for Public Projects (contracts that exceed $60,000 but less than or equal to $200,000) Public Projects that exceed $60,000 but less than or equal to $200,000 shall be solicited in accordance with the CUPCAA Cost Accounting Policies and Procedures Manual, including the following:

IFBs are to be sent via online bid system to the trade journals specified by the Commission:

The IFB must be published in each of the following two trade journals:

Construction Bidboard (eBidboard)11662 El Camino Real San Diego, CA 92130 Phone: 800-479-5314E-mail: [email protected] Website: www.ebidboard.comDodge Data & Analytics 830 Third Avenue, 6th Floor New York, NY 10022 Phone: 877-784-9556E-mail: [email protected] Website: www.construction.com Construction Bidboard (eBidboard)
11662 El Camino Real San Diego, CA 92130 Phone: 800-479-5314 E-mail: [email protected] Website: www.ebidboard.com Dodge Data & Analytics 830 Third Avenue, 6th Floor New York, NY 10022 Phone: 877-784-9556 E-mail: [email protected] Website: www.construction.com The IFB must be published in at least two of the following three trade journals:

Southern California Builders Association 732 N. Diamond Bar Blvd, @224 Diamond Bar, CA 91765Phone: 909-396-1451E-mail: [email protected] Website: www.socalbuilders.orgBidAmerica41085 Elm StreetMurrieta, CA 92562Phone: 909-677-4819E-mail: [email protected] Website: www.bidamerica.com Southern California Builders Association 732 N. Diamond Bar Blvd, @224 Diamond Bar, CA 91765 Phone: 909-396-1451
E-mail: [email protected] Website: www.socalbuilders.org BidAmerica
41085 Elm Street
Murrieta, CA 92562
Phone: 909-677-4819
E-mail: [email protected] Website: www.bidamerica.com Associated General Contractors of AmericaSan Diego Chapter, Inc. 6212 Ferris Square San Diego, CA 92121 Phone : 858-558-7444E-mail : [email protected] Website : www.agcsd.org Associated General Contractors of America
San Diego Chapter, Inc. 6212 Ferris Square San Diego, CA 92121 Phone : 858-558-7444 E-mail : [email protected] Website : www.agcsd.org
The IFB must be sent ten (10) days before the bids are due; Bidders must send all required bid documents, including all applicable certifications and Bid Bonds; and The award must go to the lowest responsive and responsible bidder.

Formal Competition Procedures for Public Projects (contracts that exceed $200,000) Public Projects that exceed $200,000 shall be solicited in accordance with the CUPCAA Cost Accounting Policies and Procedures Manual, including the following:

IFBs are prepared with general terms with a time and place to submit bids; IFBs must be published at least 14 calendar days before the date of opening the bids in a newspaper printed and published in the City or published in at least 3 places within the jurisdiction of the City; and IFBs must be sent electronically to all construction trade journals specified by the Commission pursuant to PCC Section 22036 at least 15 calendar days before the date of opening the bids.

Surety Bond Requirements
Surety Bonds, including Bid Bonds, Performance Bonds, and Payment Bonds are established to protect the best interests of the City. All Surety Bond requirements must be stated in all solicitations, if required, and the City, at its discretion, may waive the requirement for Surety Bonds subject to compliance with state and federal laws.

Public Projects
All Public Projects that exceed $60,000 require the following Surety Bonds:

Bid Bond equal to ten percent (10%) of the bid price;
Performance Bond equal to one hundred percent (100%) of the bid price; and Payment Bond equal to one hundred percent (100%) of the bid price.

Non-Public Projects
Surety Bonds may be required for Non-Public Projects as determined by the City Manager, City Attorney, Risk Manager and/or the Department Head. All Maintenance contracts that exceed $25,000 may require the following Surety Bonds:

Bid Bond equal to ten percent (10%) of the bid price (The Bid Bond only applies if the basis of selection is the lowest responsive and responsible bidder by using the Sealed Bid method. The Bid Bond would not be required if the basis of selection is based on an Evaluated Procurement by using the Competitive Proposal or Non-Competitive Proposal methods);
Performance Bond equal to one hundred percent (100%) of the proposed price; and Payment Bond equal to one hundred percent (100%) of the proposed price.

Licensing
City Business License Requirements
All vendors that perform Services, or Public Project work are required to obtain a City Business License upon award of a contract if the following applies:

The vendor has a place of business in the City;
The vendor will perform services within the City; or
The vendor performs services with other businesses or customers within the City; Contractor License Requirements
Solicitations and Contracts. All solicitations and plans for Public Projects or Maintenance Services (if applicable) must specify the classification of the contractor’s license requirements. The vendors must include their license numbers in the construction contract, subcontracts, solicitations for subcontracts, and advertisements for bids.

Failure to Have Contractor’s License. A bid submitted by a vendor for a Public Project who is not properly licensed must be considered nonresponsive and be rejected by the City. However, if a bid submitted by a vendor is not properly licensed for contracts funded fully or partially by a federal agency, the bid does not become invalid, but the vendor must be properly licensed at the time the contract is awarded.

Verification of Contractor’s License. Except for contracts fully or partially funded by a federal agency, the City must verify that the contractor was properly licensed at the time it submitted its bid, before awarding a contract or before issuing a purchase order.

Local Business Preference
Businesses within the City may take advantage of the City’s local business preference for City contracts in accordance with FMC 10-151. The local business preference in awarding contracts does not apply to Public Projects, emergencies, or contracts that are funded by a federal award.

Qualified Local Businesses
To be a Qualified Local Business the vendor must satisfies the following:

It has maintained its primary office, distribution point or place of business within the City; It has secured all necessary licenses to conduct business in the City and it has paid all fees and taxes imposed by the City; It meets all other qualifications required to perform the contract for which its bid has been submitted.

ROLES AND RESPONSIBILITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer
The Chief Financial Officer of Finance is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the competitive procurement process while ensuring appropriate stewardship of the City’s assets.

Purchasing Manager
Purchasing Manager is responsible for ensuring that all solicitations for goods and services are conducted in a manner that provides full and open competition; assisting Department Heads and Requestors with selecting the appropriate solicitation types; and facilitating the administration of solicitations and contracts for goods and services.

Requestor
The Requestor must ensure to provide the Purchasing Division with detailed information regarding the solicitation within a reasonable time prior to advertising. The Requestor shall include detailed information, including the name of the project, the due date of the solicitation, project duration or contract period, any required licenses or certifications, a detailed scope of work, a list of detailed items or equipment, and detailed specifications and requirements.

DEFINITIONS
As used in this procedure:

Bid Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that the lowest responsive and responsible bidder will undertake the contract under the terms and conditions at which the vendor submitted its bid.

California Public Contract Code (PCC) – State of California Statutes that clarify laws regarding the public competitive bidding requirements to eliminate favoritism, fraud, and corruption in the awarding of public contracts.

California Uniform Public Construction Cost Accounting Act (CUPCAA) – The Uniform Public Construction Cost Accounting Act (Act), enacted in 1983 under Public Contract Code section 22000 et seq., allows local agencies to perform Public Project work of up to $60,000 with their own workforces if the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Sealed Proposal – a purchasing method by Request for Proposals (RFP) (publicized online, identify all evaluation factors, etc.) from an adequate number of qualified sources with a written method for conducting technical evaluations and for selecting recipients; qualifications-based procurement for architectural/engineering services and professional service agreements.

Competitive Source Selection Justification – a summary of all the quotes or proposals received for a specific requirement and the rationale behind the selection of a successful vendor.

Design-Build – a project delivery method used in the construction industry where the City would solicit a Design- Build Team, which consists of a general contractor that will provide construction management and construction for a project that subcontracts an architectural/engineering firm to perform the design portion of the project.

Evaluated Procurement – An award based on evaluated criteria other than the lowest price.

Formal Competition – A formal solicitation, including Request for Information (RFI), Invitation for Bids (IFB), Request for Qualifications (RFQ), and Request for Proposals (RFP) that is publicly advertised.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Informal Competition – An informal solicitation to vendors either written or by email for a Quote, Request for Qualifications (RFQ) or Request for Proposal (RFP).

Independent Cost Estimate – Documentation, in an organized effort, to gather cost and pricing data for targeted markets. Market research is used to support the Independent Cost Estimate.

Instructional Services –services provided by an individual with the necessary credentials to teach specific classes to the City of Fontana residents.

Local Business Preference Application – a City application form for vendors to participate in the local business preference program to submit a Preference Bid.

Maintenance Services– mean the furnishing of labor, time, or effort by a vendor, including but not limited to: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape Maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Micro-Purchase – a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000.

Non-Competitive Proposal – a purchasing method by soliciting only one source and may be used only when one or more of the following circumstances apply: (1) Single or sole source; (2) Cooperative purchasing agreement; (3) Same price purchased by another public agency for the same product or service; (4) Emergency determined by the City Manager; and (5) Other reasons that can be justified depending upon the nature of the purchase.

Non-Competitive Source Selection Justification – A documented justification that underlines the reasons why only one source was solicited for a requirement, including that the item is only available through a single source, the purchase is being done through a cooperative purchasing agreement, the price obtained from the vendor is the same price that was offered to another public agency, the emergency for the requirement will not permit a delay from a competitive solicitation, it is a follow-on purchase, or after solicitation to a number of sources, competition was determined inadequate.

Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) (Uniform Guidance) – Federal legislation that governs the federal financial assistance (grants and cooperative agreements) process from pre-award to close-out.

Payment Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that its subcontractors and material suppliers on a project will be paid, including labor and material bonds.

Performance Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that the vendor will complete a project that is acceptable to the City.

Online Bid System – a software/license package used by the City that includes a comprehensive e-procurement tool to facilitate the solicitation and contracting process for the City.

Preference Bid – the amount of the bid computed after reducing the original bid by a factor equal to as much as five percent (1%) of the original bid amount.

Purchasing Method and Cost Threshold Matrix – a guide created to help City Employees with their purchasing and contracting needs for goods and services.

Qualifications-Based Selection (QBS) – a basis of a competitive selection of architectural and engineering services under which the highest qualified professional or firm is selected based on qualifications, including knowledge, skill, experience, and other project-specific factors, rather than solely on price.

Qualified Local Business – a business which applies for local business preference and satisfies all requirements.

Requestor – a City Employee that submits Purchase Requisitions through Munis to make purchases on behalf of the City.

Sealed Bid – a purchasing method by Sealed Bids (formal advertising). Bids are publicly solicited, and a firm fixed- price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all the material terms and conditions of the Invitation for Bid (IFB).

Services – means general services, maintenance services, or professional services.

Small Purchase – a purchasing method that is simple and informal that requires competition, including written price or rate quotations from at least 3 sources.

Surety Bond – a Surety Bond serves the purpose of guaranteeing the vendor’s performance of a contract for a Public Project Purchasing Method and Cost Threshold Matrix

PURCHASING METHOD

NON-PUBLIC WORKS

PUBLIC WORKS
Micro-Purchase
≤$10,000
≤$60,000
Small Purchase
Use when between $10,000 to $100,000
Use when between $60,000 to $200,000
Sealed Bid (IFB)
Use when greater than $100,000
Use when greater than $200,000
Sealed Proposal/Qualification (RFP/RFQ)
Use when greater than $100,000
Does not apply to Public Projects
Non-Competitive Proposal
Use when greater than $10,000
Only use for Public Project emergencies
Micro-Purchase
a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000 required by the Federal Acquisition Regulation (FAR) and Office of Management and Budget (OMB) Uniform Guidance for purchases less than the Micro-Purchase Threshold (MPT) (currently set at $10,000) Small Purchase
a purchasing method that is simple and informal that requires competition, including written price or rate quotations from at least 3 sources required by FAR and OMB Uniform Guidance for purchases that exceed the MPT but are less than the Simplified Acquisition Threshold (SAT) (currently set at $250,000) Sealed Bid
purchasing by Sealed Bids (formal advertising online / Public Projects online and newspaper). Bids are publicly solicited, and a firm fixed-price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all the material terms and conditions of the Invitation for Bid (IFB).

Sealed Proposal/Qualification
a purchasing method by Request for Proposals/Qualifications (RFP/RFQ) (publicized online, identify all evaluation factors, etc.) from an adequate number of qualified sources with a written method for conducting technical evaluations and for selecting recipients; qualifications may be-based procurement for architectural/engineering services and professional service agreements.

Noncompetitive Proposal
purchasing method by soliciting only one source and may be used only when one or more of the following circumstances apply:
single or sole source
cooperative purchasing agreement
same price purchased by another public agency for the same product or service entertainer, music artists, class instructor, counseling, and motivational speaker emergency determined by the City Manager
3-11

INDEPENDENT COST ESTIMATE (ICE)
This form must be filled out prior to issuing a formal solicitation (purchases exceeding $100,000). Failure to do so may result in delays while additional information is obtained.

Requestor Name:

Date:

Estimate:
$
Description:

Federally Funded:

Yes No
Method of Obtaining Estimate:

Attach additional documentation such as previous pricing documentation, emails, internet screen shots, estimates on letterhead, etc.

PUBLISHED PRICE LIST (attach source and date)
HISTORICAL PRICING (attach copy of documentation from previous PO/Contract).

ENGINEERING OR TECHNICAL ESTIMATE (attach a copy of the Engineer’s Estimate or Technical Estimate) INDEPENDENT THIRD-PARTY ESTIMATE (attach copy of documentation) OTHER (Explain below.)
Detail information to support above estimate:

THROUGH THE METHOD(S) STATED ABOVE, IT HAS BEEN DETERMINED THE ESTIMATED TOTALCOST OF THE GOODS/SERVICES IS $______________________________________. THE PRECEDING INDEPENDENT COST ESTIMATE WAS PREPARED BY:

Name Signature Date

4.0 Prevailing Wages PolicyPURPOSE

4.0 Prevailing Wages Policy
This policy is to provide guidance to City Employees to ensure that the City of Fontana (the City) is compliant with all federal, state, and local Prevailing Wage Laws.

POLICY
This policy ensures that contracts and purchases for goods and services are compliant with all Prevailing Wage Laws in accordance with California Public Contract Code (PCC), California Uniform Public Construction Cost Accounting Act (CUPCAA), California Labor Code (LAB), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles competitive requirements (Uniform Guidance).

General Requirements
The State labor law requires payment of Prevailing Wages on “Public Works” contracts that exceed $1,000. The LAB defines “Public Works” differently than the PCC and CUPCAA. There may be circumstances in which public bidding or other statutory Public Works requirements are not required but payment of Prevailing Wages is required. Regardless if a Public Works contract is publicly solicited or not, the City’s contracts require all contractors and its subcontractors to pay Prevailing Wages and maintain certified payroll records evidencing such payment of Prevailing Wages.

Bidding
All contractors and subcontractors must be registered with the California Department of Industrial Relations (DIR) before bidding on, being listed on a bid for, or performing any work on a Public Works contract. If a contractor and its subcontractors are not registered with the DIR when the prime contractor submits its bid, then the City must reject the bid as nonresponsive. The DIR registration requirement does not apply to the following:

A Public Works contract of $25,000 or less when the work is for construction, alteration, demolition, installation, or repair work; or Work performed on a Public Works contract of $15,000 or less when the contract is for Maintenance.

Awarding
The City must provide notice to DIR within thirty (30) days of award and failure to do so will result in a civil penalty of $100 per day, not to exceed $10,000. The City must file a PWC-100 Form with the DIR within five (5) days of the award for the following Public Works contracts:

A Public Works contract of $25,000 or more when the work is for construction, alteration, demolition, installation, or repair work; or Work performed on a Public Works contract of $15,000 or more when the contract is for Maintenance.

Applicability of Prevailing Wages
Public and private projects that are paid for in whole or in part out of public funds are subject to Prevailing Wages. Prevailing Wages do not apply to work performed by the City’s employees with its on forces. Since the definition of “Public Works” is very broad, the Prevailing Wage Decision Tree and the following should assist City Employees with determining the applicability of Prevailing Wages. “Public Works”
As defined in LAB, Public Works includes the following:

Construction, alteration, demolition, installation, repair, or maintenance work done under contract and paid for in whole or in part out of public funds, and tree removal work done in the execution of any such work (construction includes work performed during the design and preconstruction phases of construction, including but not limited to inspection and land surveyors’ work, as well as post- construction phases of construction, including but not limited to all cleanup work at the jobsite); Work done for certain special districts (e.g., irrigation, utility, reclamation, and improvement districts); Street, sewer, or other improvement work done under the direction and supervision or by the authority of any charter or general law city; The laying of carpet paid for out of public funds;
Public transportation demonstration projects;
Hauling refuse from a Public Works site to an outside disposal location; Hauling and delivery of ready-mixed concrete to carry out a Public Works contract; and Maintenance which is defined as the following:

Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired.

Carpentry, electrical, plumbing, glazing, touchup painting, and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures.

Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and services of irrigation and sprinkler systems.

Exceptions to the “Public Works” definition which are excluded from Prevailing Wages are the following:

Janitorial or custodial services of a routine, recurring or usual nature; Protection of the sort provided by guards, watchmen, or other security forces; and Landscape maintenance work by “sheltered workshops.”
Paid in Whole or Part with Public Funds
Prevailing Wages may apply to projects done under contract, even otherwise private projects, when the City pays money or its equivalent, performs construction work, transfers assets for less than their market price, pays project costs (such as bond costs), makes credits, reduces or waives fees, or permits repayment on a contingent basis. The definition of paid for in whole or in part out of public funds excludes certain construction or rehabilitation of affordable housing units for low- or moderate-income people. As defined in LAB, “paid for in whole or in part out of public funds” includes the following:

Payment of money or the equivalent by a public agency to or on behalf of the Public Works contractor, subcontractor, or developer; Performance of construction work in execution of the project; Transfer of an asset of value for less than the fair market price; Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations normally required in the execution of the contract that are paid, reduced, charged at less than fair market value, waived, or forgiven; Money loaned by the state to be repaid on a contingent basis; or Credits that are applied against repayment obligations.

4.2.3 Exemptions
An exemption from Prevailing Wages is for the following circumstances:

Private residential projects on private property that are not built according to an agreement with the City or any other public agency; When the City requires a private developer to perform construction, alteration, demolition, installation, or repair work on a Public Work of improvement as a condition of regulatory approval of an otherwise private project, and the City contributes no more money or its equivalent than required to perform the public improvement work, and the City maintains no proprietary interest in the overall project, Prevailing Wage requirements apply only to the public improvement work; Public agency reimbursements to private developers for costs normally allowed by the public, or direct or indirect public subsidies to a private development project that are de minimis in the context of the project, do not in themselves make an otherwise private development project subject of Prevailing Wages; and Construction or rehabilitation of privately owned residential projects that meet certain specified conditions are also exempt from Prevailing Wages.

Federal Requirements and Davis-Bacon Act
In accordance with the Uniform Guidance, all construction contracts awarded by the City as a Prime Recipient or a Subrecipient of more than $2,000 must include a provision for compliance with the Davis-Bacon Act (40 USC 3141 et seq.), and as supplemented by Department of Labor regulations. (29 CFR pt 5). .

Conflicting Provisions
The City is not exempt from complying with existing State Public Works requirements when expending federal funds. However, unless a federal requirement conflicts with a state requirement, the City will be required to comply with both requirements. For example:

If a contract is subject to both the Davis-Bacon Act and State Prevailing Wage Laws, then the contractor will be required to pay the higher of the two wages. However, the Davis-Bacon Act might not apply to a particular federally funded contract, but the City will still be required to comply with State Prevailing Wage Laws.

ROLES AND RESPONSIBILITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer
The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads
Department Heads are responsible for holding their employees accountable for reporting Public Works contracts to the DIR to ensure compliance with Prevailing Wage Laws.

Purchasing Manager
Purchasing Manager is responsible for ensuring that all solicitations for goods and services are conducted in a manner that provides full and open competition and in compliance with Prevailing Wage Laws; assisting Department Heads and City Employees with selecting the appropriate solicitation types; and facilitating the administration of solicitations and contracts for goods and services.

Departments/City Employees
The Departments/City Employees must ensure to provide the Purchasing Office with detailed information regarding the scope of work to assist in the determination whether a particular project is subject to Prevailing Wages or not. Once the determination has been decided and a contract is awarded, the Department/City Employee is responsible for filing the PWC-100 Form with the DIR within five (5) days of award.

DEFINITIONS
As used in this policy:

California Department of Industrial Regulations (DIR) – a state agency that enforces and codifies California Labor Statutes.

California Labor Code (LAB) – State of California statutes that clarify laws regarding labor laws.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Davis-Bacon Act – a Prevailing Wage Law imposed by the federal government on federal awards that requires contractors and subcontractors to pay local Prevailing Wages on Public Works projects more than $2,000.

Maintenance – as defined in LAB, Maintenance includes the following: (1) Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired; (2) Carpentry, electrical, plumbing, glazing, touchup painting, and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures; and (3) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and services of irrigation and sprinkler systems.

Prevailing Wages – hourly wages, benefits and overtime required to pay the labor force under the performance of a government contract for Public Works.

Prevailing Wage Laws – State and federal statutes that require contractors and subcontractors to pay Prevailing Wages.

Prevailing Wage Decision Tree – a guide for departments to use when deciding if Prevailing Wages would apply to a particular project or scope of work.

Prime Recipient – a non-federal entity that expends federal awards received directly from a federal awarding agency to carry out a federal program.

Public Works – as defined in LAB, Public Works includes the following: (1) Construction, alteration, demolition, installation, repair, or maintenance work done under contract and paid for in whole or in part out of public funds, and tree removal work done in the execution of any such work (construction includes work performed during the design and preconstruction phases of construction, including but not limited to inspection and land surveyors’ work, as well as post-construction phases of construction, including but not limited to all cleanup work at the jobsite); (2) Work done for certain special districts (e.g., irrigation, utility, reclamation, and improvement districts); (3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of any charter or general law city; (4) The laying of carpet paid for out of public funds; (5) Public transportation demonstration projects; (6) Hauling refuse from a Public Works site to an outside disposal location; (7) Hauling and delivery of ready-mixed concrete to carry out a Public Works contract; and (8) Maintenance.

PWC-100 Form – a form that fulfills the required Public Works project award notification as required by LAB sec. (replacing former DAS-13 notification) and 8 Cal. Code Reg. sec. 16451(a).

Subrecipient – a non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal program.

Prevailing Wage Decision Tree
Exceptions
Janitorial or custodial services of a routine, recurring or usual nature; Protection of the sort provided by guards, watchmen, or other security forces; and Landscape maintenance work by “sheltered workshops” where “sheltered workshops” are nonprofit organizations licensed by the Division of Labor Standards Enforcement (DLSE) employing mentally and/or physically handicapped workers. 4-6

5.0 City Contract Policy

PURPOSE
This policy is to ensure that City Employees are using the appropriate City Contract Templates in compliance with the City of Fontana’s (the City) policies and procedures, federal, state, and local laws, and to provide guidance when selecting the appropriate contract template for goods and services.

POLICY
The City’s Attorney has developed several City Contract Templates for City Employees to use when acquiring goods and services for different types of contracts, including Public Projects, Professional Services, Instructional Services, and Special Events. The City Contract Templates define the parties’ responsibilities and terms and conditions that govern each contract.

City Contract Templates
The City Contract Templates must be used when entering into an agreement with a vendor, consultant, or contractor to provide goods and services to the City. Anytime a vendor, consultant, or contractor takes exceptions to the terms and conditions, the Purchasing Manager must be notified, and the City Attorney must review and approve prior to obtaining the Department Head, Deputy City Manager, and City Manager’s signature. All City Contract Templates can be found on the Purchasing’s CityNet intranet page.

Exceptions to City Contract Templates
City Employees must always use the City Contract Templates. However, there may be some circumstances where the City Contract Templates do not fit the purpose for a specific type of good or service.

Contracts for Goods and Services
The following goods and services are examples of when the City Contract Templates may not be the appropriate contract type: equipment leases/purchases, software licenses/renewals, software maintenance agreements, contracts with financial institutions, and complex construction contracts. Vendors that provide such goods and services require the City to agree to their terms and conditions. In these circumstances, the City Employee must notify the Purchasing Manager to assist in reviewing the terms and conditions to minimize the risk to the City. Prior to obtaining the Department Head, Deputy City Manager, and City Manager’s signature, the City Attorney must review and approve all contracts when the City Contract Templates are not used.

Other Contractual Agreements
The City enters into many other contractual agreements other than goods and services for which the above City Contract Templates would not be appropriate, including multi-agency agreements with other public agencies, cooperative agreements, memorandums of understanding, easement acquisitions, right-of-way contracts, fiduciary agreements, bond purchasing agreements, development agreements, grants, and subawards.

ROLES AND RESPONSIBILITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Purchasing Manager
Purchasing Manager is responsible for assisting departments with selecting the appropriate contract template, assisting with negotiating contracts to mitigate risk to the City, and to facilitate the contracting process to ensure compliance with the City’s policies and procedures.

City Employees
City Employees who acquire goods and services on behalf of the City must ensure that they use the appropriate City Contract Templates, seek assistance from the Purchasing Manager when necessary, and ensure all purchasing decisions are in compliance with the City’s policies and procedures.

DEFINITIONS
As used in this policy:

City Attorney – the attorney selected to represent the City of Fontana.

City Contract Templates – contract templates that are either developed or approved by the City Attorney.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Instructional Services –services provided by an individual with the necessary credentials to teach specific classes to the City of Fontana residents.

Professional Services –means the services of attorneys, architects, auditors, consultants, engineers, specialized printers or other individuals or firms possessing a high degree of professional, unique, specialized, or technical skill or expertise. "Professional services" also means Maintenance work.

Public Project/Public Works Project – as defined in PCC Section 22002, a Public Project/Public Works Project is: (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (2) Painting or repainting of any publicly owned, leased, or operated facility; (3) In the case of a publicly owned utility system, “Public Project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Special Events – performing arts or other special events that take place on City property.

6.0 Federal Emergency and Grant Procurement Procedures

PURPOSE
The purpose of these Federal Emergency and Grant Procurement Procedures is to define the practices and policies governing the procurement of public works projects, services, and goods (i) in preparation of, during, and after an emergency that may be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence.

POLICY
These Federal Emergency and Grant Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).

6.1 Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements

6.1.1 In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by the Uniform Guidance.

6.1.2 In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements.

6.1.3 These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements in this Policy or state law. In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern.

6.2 Conflicts of Interest

6.2.1 Standards of Conduct for Conflicts of Interest. No City Employee shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: City Employees; any member of their immediate family; their partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. City Employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub-agreements. Such a conflict will not arise where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. City Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts.

6.2.2 Violations. Disciplinary actions to be applied for violations of the above standards are as follows:
(1) The violation of these standards of conduct by City Employees will subject the violator to any disciplinary proceedings or action deemed appropriate by the City Manager. City Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations. (2) The violation of any of these standards of conduct by City Employees will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations. (3) Contractors or subcontractors that violate these standards of conduct as relates to an active federally-funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager. (4) Agents of the City that violate these standards of conduct as relates to federally-funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager.

6.3 Procurement Standards

6.3.1 Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders.

6.3.2 Economical Approach. The City must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.

6.3.3 Detailed Records. The City shall maintain records sufficient to detail the history of each procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.

6.3.4 Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. Protest procedures or information on obtaining the procedures shall be included in the procurement documents.

6.4 Competition

6.4.1 Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business; (2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest, as further detailed herein; (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and (7) Any arbitrary action in the procurement process.

6.4.2 Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-by-case basis.

6.4.3 Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

6.4.4 Procurement Transactions. The City shall require the following information for procurement transactions:
(1) A clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and (2) All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

6.4.5 Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period.

6.5 Procurement Procedures
The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein.

6.5.1 Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micro-purchases equitably among qualified suppliers.

6.5.2 Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $250,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources.

6.5.3 Formal, Sealed Bidding.
(1) Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101. (2) This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally on the basis of price. (3) The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation. (4) Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason.

6.5.4 Competitive Proposals
(1) When the nature of a procurement does not lend itself to formal, sealed bidding, the District may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or cost-reimbursement type contract is awarded. (2) A request for proposals (RFP) must be publicly advertised, and the District must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed. (3) Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision. a. The City’s procurement officer shall establish a formal evaluation committee, of at least two persons. The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and represented by individuals involved with the procurement and/or affected by the goods or services being procured. b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award. (4) Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or price-related factors. (5) If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered.

6.5.5 Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable.

6.5.6 Noncompetitive Procurements
(1) Contracts may be procured through a noncompetitive proposal only when:
a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the District; or d. Competition is deemed inadequate after the solicitation of a number of sources.

6.5.7 Public Projects. Public projects shall be procured by the City’s formal contract bid procedures outlined by Section 3.0 Bidding Procedure, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply.

6.5.8 Award.
(1) Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. (2) Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award Management (SAM), www.sam.gov, must be performed and documented in the procurement records prior to award.

6.6 Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms

6.6.1 The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below. The City shall:
(1) Place qualified small and minority businesses and women's business enterprises on solicitation lists; (2) Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (4) Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

6.6.2 The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file.

6.7 Cost and Price

6.7.1 Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City must, at a minimum, make independent estimates before receiving bids or proposals.

6.7.2 Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b).

6.7.3 Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq.

6.8 Payment Procedures

6.8.1 Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods.

6.8.2 Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought.

6.8.3 Time and Materials (“T&M”) Contracts
(1) T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the District cannot define a clear scope of work. (2) The City shall only enter into a time and materials contract if all of the following apply:
a. The City has determined and documented in the project file that no other contract is suitable; b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls. (3) The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., non-T&M).

6.8.4 Separate Invoicing. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases. All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivered. All invoices shall specify the location(s) where the goods or services were used, if possible. Any invoice which fails to properly identify the emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such errors are corrected by the vendor and re-submitted in correct form.

6.8.5 Auditing of Invoices for Debris Removal. All invoices for debris clearance and removal shall be audited prior to payment to the contractor. Contractors shall be notified of this requirement prior to the award of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.

6.9 Bonding Requirements

6.9.1 Bonding. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold (See 2 CFR 200.88), the City shall require at a minimum:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price. (2) A performance bond on the part of the contractor for 100 percent of the contract price. (3) A payment bond on the part of the contractor for 100 percent of the contract price.

6.10 Procurement of Recovered Materials

6.10.1 For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

6.10.2 This requirement applies to purchases of items when the purchase price of the item exceeds $10,000, or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.

6.11 Contract Provisions
The City’s contracts shall contain the applicable provisions described in Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.

ROLES AND RESPONSIBILITIES
City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

DEFINITIONS
As used in this policy:

City Employee - a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Federal Emergency Management Agency (FEMA) - An agency of the United States Department of Homeland Security (DHS) with the primary purpose is to coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities.

Micro-Purchases - Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable.

Political Reform Act - California law that is requires the detailed disclosure of the role of money in California politics. This includes the disclosure of contributions and expenditures in connection with campaigns supporting or opposing state and local candidates and ballot measures as well as the disclosure of expenditures made in connection with lobbying the State Legislature and attempting to influence administrative decisions of state government.

Request for Proposal – is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.

Resource Conservation and Recovery Act - the principal federal law in the United States governing the disposal of solid waste and hazardous waste.

Small Purchases - Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $250,000 or less) shall not be required to be formally bid Uniform Guidance – The Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) is Federal legislation that governs the Federal grant process from pre-award to post-award administration.

7.0 Surplus Property PolicyPURPOSE

7.0 Surplus Property Policy
This policy is to ensure that City Employees are purchasing supplies and equipment in accordance with the City of Fontana’s (the City) policies and procedures, Federal, State, and local laws, while ensuring adequate control, appropriate use, and disposition.

POLICY
This policy ensures that acquisitions, internal controls, and disposition of supplies and equipment are in compliance with all requirements outlined in the (FMC 10-155), California Government Code (GC) and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles Competitive Requirements (Uniform Guidance).

7.1 City Property
City Property consists of all supplies and equipment purchased for the City regardless of the dollar amount, including Fixed Assets.

7.2 Fixed Assets
Fixed Assets are tangible assets having a value equal to or greater than $5,000. Therefore, any supplies or equipment purchased that has a value of $5,000 or greater must be acquired, tagged, and disposed in accordance with this policy.

7.2.1 Acquiring Fixed Assets Under Grants
The City receives grants from various Federal, State, and local agencies to fund specific programs. All Fixed Assets acquired under a grant shall comply with the terms and conditions of the grant. All Fixed Assets fully funded or partially funded by a Federal Grant shall perform an Equipment Screening prior to purchasing which verifies the following:

If prior written approval was obtained from the Federal awarding agency or pass-through to purchase the Fixed Asset; If the title of the Fixed Asset will vest in the Federal awarding agency, a pass-through, or the City; Description of the Fixed Asset; Source of funding (Federal Award Identification Number (FAIN)); and

7.3 Disposition of Surplus Property
Supplies, equipment, and Fixed Assets are considered Surplus Property if they are no longer being utilized by the City for reasons, including decreased use, poor condition, damaged beyond repair, and/or obsolescence. Once Surplus Property has been identified and a disposition method has been determined, the department will need to submit a Surplus Property Disposition Form to the Purchasing Manager. The Department Head will need to approve the disposition of all Surplus Property for their department regardless of the value. If the value of the Surplus Property is equal to or more than $5,000, the Purchasing Office will coordinate with Maintenance to transport the Surplus Property to dispose by one of the following disposition methods. Once the disposition is complete, the Purchasing Office will notify Accounting to update the asset record.

7.4 Transfer to Another Department
Departments can transfer Surplus Property from one department to another. The department transferring out the Surplus Property will need to submit a Surplus Property Disposition Form with the necessary approvals.

7.5 Trade-In
Surplus Property can be offered as a trade-in or a credit towards the acquisition of new supplies, equipment, or Fixed Assets.

7.6 Sell
Surplus Property may be offered for sale, and any sales must be directed and approved by the Purchasing Manager. All Surplus Property sales are “as is” with no warranty, guarantee, expressed or implied, as to the condition, utility or usability of the Surplus Property being sold. City Employees may not purchase Surplus Property. The following sale methods for Surplus Property may be used:

Public Auction. the Purchasing Office may conduct public auctions, utilize public auction internet providers, or contract a public auctioneer company to sell Surplus Property on behalf of the City.

Sealed Bids. the Purchasing Office may solicit sealed bids in which the highest responsible bidder will be sold the Surplus Property.

Negotiated Sale. the Purchasing Office may negotiate a sale if there is only one known buyer available and willing to purchase the Surplus Property.

Selling as Salvage. the Purchasing Office may sell Surplus Property as salvage if the value of the raw materials exceeds the value of the property.

7.7 Donate
Surplus Property may be donated to a non-profit organization or charitable group.

7.8 Scrap
If no other disposition method for Surplus Property is available, including transferring to a different department, trading in, selling, donating, and/or selling as salvage, then the Surplus Property may be thrown away.

7.9 Surplus Property Under Grants
If the City has Surplus Property that was acquired with grant funds, then the disposition of such property shall comply with the terms and conditions of the grant, regardless of the funding agency. All Fixed Assets fully funded or partially funded by a Federal Grant shall be disposed in accordance with the Federal awarding agency’s disposition instructions.

ROLES AND RESPONSIBILITIES
City Manager
All sales and disposition of Surplus Property are under the control and direction of the City Manager.

Chief Financial Office
The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the Surplus Property process while ensuring appropriate stewardship of the City’s assets.

Department Heads
Department Heads are responsible for holding their employees accountable for the Surplus Property activities to ensure that they comply with the City’s purchasing policies and procedures.

Purchasing Manager
The Purchasing Manager is responsible for ensuring that the disposition of Surplus Property is conducted in a manner that is compliant with the City’s purchasing policies and procedures, Federal, State, and local laws.

Purchasing Office
The Purchasing Office will review completed Surplus Property Disposition Forms, ensure the appropriate method of disposition. Once approved, the Purchasing Office will coordinate the disposition of the Surplus Property with Maintenance and notify Accounting if any asset records need to be updated.

Accounting
In coordination with the Purchasing Office, Accounting enters and maintains Fixed Asset records in accordance with the City’s purchasing policies and procedures.

Maintenance
In coordination with the Purchasing Office, Maintenance assists with the transportation of Surplus Property to and from departments within the City, or from City buildings to the yard for disposition.

City Employees
City Employees are responsible for adhering to this policy whenever purchasing Fixed Assets or disposing Surplus Property.

DEFINITIONS
As used in this policy:

Accounting – a division within the Department of Finance that performs accounting functions and reporting for the City.

Maintenance – a division within the Department of Public Works that is responsible for building maintenance services for the City.

City Property – consists of all supplies and equipment purchased for the City regardless of the dollar amount, including Fixed Assets.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Federal Grant – an award of financial assistance from a Federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.

Fixed Asset – tangible assets having a value equal to or greater than $5,000.

Purchasing Office – a division within the Department of Finance responsible for ensuring compliance with the City’s purchasing policies and procedures.

Surplus Property – supplies, equipment, and Fixed Assets that are no longer being utilized by the City for reasons, including decreased use, poor condition, damaged beyond repair, and/or obsolescence.

Surplus Property Disposition Form – a form used whenever a department wants to transfer, trade-in, sell, donate, or scrap Surplus Property.

Surplus Property Disposition Form
This form must be submitted to the Purchasing Office for the disposition of City owned property, including supplies, equipment, materials, and fixed assets.

Department
Division
Date
/ /
Method of Transfer of Property Donate Disposition: Trade-in Scrap Sell
Additional Detail:

Transfer to Department/Division (If Applicable):

Are All Items Available for Pickup?
YES NO
Date Available for Pickup
/ /
Property
Tag Number
(If Applicable)
Detailed description, including serial number, manufacturer, model Title to City
Operational
Estimated Value
Received Price
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
YES NO
YES NO
$
$
Total
$
$
In the space below, describe the circumstances surrounding the method of disposition. Please be specific:

If the title vests with the awarding agency, did you follow the disposition instructions or the terms and conditions of the grant? YES NOT APPLICABLE
Requestor Name/Title
Signature
Date

PURCHASING USE ONLY
Date Received: Date Processed: Date to Accounting:

Disposition Complete:

Initial/Signature Date Name:

Approved by Department Head
Signature
Date:

Name/Title:

Approved by City Manager (If total estimated value exceeds $5,000) Signature
Date:

Name/Title:
1-6
1-6
5-2
6-2
7-2
2-8
2-8
2-9
2-9
2-14
2-14
3-19
3-19
3-12
3-12
4-5
4-5

Fontana City CouncilDecember 13, 2022

Fontana City Council
December 13, 2022