Item5_PurchasingPolicyOrd-1stReading_061223 — Grover Beach City Council, July 24, 2023

Agenda Item No. 5

CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: July 24, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Kristin Eriksson, Deputy City Manager
SUBJECT: Introduction and First Reading of an Ordinance to Repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code

RECOMMENDATION
Conduct the first reading, by title only, and introduce the Ordinance to repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code; and schedule the second reading and public hearing for the next regularly scheduled meeting.

BACKGROUND:

On July 7, 1997, the City Council adopted Ordinances 97-11, repealing existing purchasing ordinances and adopting a new Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) of Article II (Administration) of the Grover Beach Municipal Code. This code section establishes the rules and regulations for purchasing by the City (see Attachment 1 –Ordinance 97-11). That same year, the City developed a Purchasing Procedures Manual to detail procedures and internal controls to be followed by City departments. Since 1997, no changes have been made to the City’s purchasing procedures and the existing code is out of date and inconsistent with State codes.

In 2022, staff began to develop an updated Purchasing Policy seeking input from multiple departments including Administrative Services and Public Works along with the City Attorney.

Staff also looked at purchasing policies of other agencies and researched current State codes.

After considering these sources of information, staff developed an updated Purchasing Policy to replace the outdated code sections and be incorporated by reference upon approval of this Ordinance by the City Council. (See Attachment 2 – New Ordinance and Attachment 3 – Purchasing Policy).

The new Policy better defines purchasing authority within the City, updates purchasing approval thresholds to improve the efficiency and timing of purchasing actions and provides purchasing procedures to guide staff. The Policy also defines rules and procedures for the use of City credit cards, business tax certificate requirements, contract management and disposal of surplus property. Additionally, the policy authorizes the City Manager to approve future administrative changes to the Policy, including changes to processes and procedures, but not including changes to purchasing authority or approval thresholds, which will still require City Council approval.

Staff Report: Introduction and First Reading of Purchasing Ordinance Page 2 July 24, 2023
The Policy’s updated purchasing approval thresholds are depicted in the charts below.

Acronyms referenced in the charts include RFB (Request for Bids), RFP (Request for Proposals), and PO (Purchase Order).

Purchases of Supplies, Materials, Equipment and General Services:

Purchase Amount Bid Process Approval Authority
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Informal Quotes
Process
Department Head approves invoice or PO
$50,001-$100,000 RFB Process City Manager approves
More than $100,000 RFB Process City Council approves contract Purchases for Public Projects:

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 RFB/f RFP Process Department Head or designee approves invoice
$50,001-$100,000 RFB/RFP Process City Manager approves PO $100,001-$200,000 RFB/RFP Process City Council approves contract More than $200,000 RFB/RFP Process City Council approves project concept prior to bidding process and resulting contract
* Note: The Department of Public Works will also maintain a Public Contracting Code Guidance document (see Attachment 4).

Purchases for Certain Professional Services (such as engineering and architectural services):

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Informal Quotes
Process*
Department Head approves PO
$50,001-$100,000 Informal Quotes
Process*
City Manager approves PO
More than $100,000 RFB/RFP Process City Council approves contract On-Call Consultant Services (previously approved firms for design and geotechnical services):

Purchase Amount Bid Process Approval
$5,000 or less None Required Department Head or designee approves invoice
$5,001-$50,000 Proposals from Oncall ConsultantsDepartment Head approves PO $50,001-$400,000* Proposals from Oncall ConsultantsCity Manager approves PO* More than $400,000 Proposals from Oncall ConsultantsCity Council approves *Approval threshold previously approved by Council related to infrastructure projects Staff Report: Introduction and First Reading of Purchasing Ordinance Page 3 July 24, 2023
Under the policy, a purchase approver listed above may also amend a contract or approve a change order in an amount not to exceed 20% of the original contract amount without approval from the higher purchasing authority, provided the original contract was within the approver’s authority and the amendment does not materially change the scope of services.

Pending the introduction and first reading of this ordinance, staff will schedule a public hearing for the second reading and adoption of the ordinance for the August 28th Council meeting.

FISCAL IMPACT
There is no fiscal impact related to approval of the purchasing policy.

ALTERNATIVES
The Council has the following alternatives to consider:
1) Conduct the first reading, by title only, and introduce the Ordinance to repeal Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services) and Adding a New Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) of the Grover Beach Municipal Code; and schedule the second reading and public hearing for the next regularly scheduled meeting; or 2) Provide alternative direction to staff.

PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.

Attachments

1. Ordinance 97-11

2. New Ordinance

3. Purchasing Policy

4. Public Contracting Code Guidance
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ORDINANCE NO. 97-11

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH REPEALING ARTICLE II, CHAPTER 8, AND ENACTING STANDARDS FOR THE

PERFORMANCE OF PUBLIC PROJECTS,

THE PURCHASE OF SUPPLIES AND EQUIPMENT AND CONTRACTING FOR SERVICES THE CITY COUNCIL OF THE City of Grover Beach DOES ORDAIN AS FOLLOWS:

Part I. Chapter 8 of Article II of the Grover Beach Municipal Code is repealed.

Part 2. Chapter 8 of Article of the Grover Beach Municipal Code is enacted to read as follows:

CHAPTER 8 - PERFORMANCE OF PUBLIC PROJECTS;
PURCHASE OF SUPPLIES AND EQUIPMENT; CONTRACTING FOR SERVICES PART 1- GENERALLY
Sec. 2800.2. (A) This article provides procedures for the performance of public projects, the purchase of supplies and equipment, and contracting for services.
(B) As used in this article, "Purchasing Agent" means the City Manager or employee designated as purchasing agent by the City Manager.
(C) The provisions of this article shall not apply to the extent that they conflict with any applicable State or federal laws or regulations or the terms and conditions of any grant, contract, gift or bequest otherwise consistent with law.

PART 2 - PUBLIC PROJECTS
Sec. 280 I. Uniform Public Construction Cost Accounting Act. The City has elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code section 22000 et seq.) in the performance of public projects. The procedures contained in this division are intended to implement and be consistent with such Act.

Sec. 2802. Definitions. (A) "Public project" means any of the following:
(I) Construction, reconstruction, erection, alteration, restoration, improvement, demolition and repair work involving any facility owned, leased or operated by the City. (2) Painting or repainting any facility owned, leased or operated by the City. (3) The construction, erection, improvement or repair of dams, reservoirs, powerplants and electrical transmission lines of 230,000 volts and higher that are part of a utility system owned by the City.
(B) "Public project" does not include maintenance work. "Maintenance work" means any of the following:
(1) Routine, recurring and usual work for the preservation or protection for its intended purposes of any facility owned or operated by the City.

Attachment 1
) )
(2) Minor repainting.
(3) Resurfacing at less than one inch deep of streets and highways. (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 water, power or waste disposal systems owned by the City, including, but not limited to, dams, reservoirs, powerplants and electrical transmission lines of230,000 volts and higher.
(C) "Facility" means any of the following:
(1) Any plant, building, structure, ground facility, real property, street, highway or other public work improvement.
(2) Any utility system owned by the City, subject to the limitation found in subdivision (a) (3) of this section.

CD) "Force account" means work performed on public projects using internal resources, including, but not limited to' labor, equipment, materials, supplies and subcontracts of the City.

Sec. 2803. Contracting Procedures: Dollar Amount Limitations. (A) Public projects of $25,000 or less may be performed by force account, by negotiated contract, or by purchase order. The director of the department in charge of the project is authorized to determine how and by whom the project shall be performed and to execute any contract or purchase order for the project and to execute any change order thereto if that change order, together with the amount of the original contract or purchase order and any previous change orders thereto, does not exceed $25,000. Any change orders exceeding such total amount shall be submitted for approval by the City Council. All contracts, purchase orders and change orders shall be in a form approved by the City Attorney. (B) Public projects from $25,000.01 to $75,000 shall be contracted for pursuant to the informal bidding procedures contained in section 2805.
(C) Public projects of more than $75,000 shall be contracted for pursuant to the formal bidding procedures contained in section 2805.
(D) It shall be unlawful to split or separate any project into smaller work orders or projects for the purpose of evading the provisions of this division requiring work to be done by contract after competitive bidding.

Sec. 2804.Lists of Contractors and Trade Journals. (A) The purchasing agent shall develop and maintain a list of contractors, identified according to categories of work, in accordance with criteria determined by the California Uniform Construction Cost Accounting Commission. (B) The purchasing agent shall maintain a list of the construction trade journals, as determined for San Luis Obispo County by the California Uniform Construction Cost Accounting Commission, that are to receive mailed notice of all informal and formal construction contracts being bid for work within San Luis Obispo County.

Sec. 2805.Informal Bidding Procedures. (A) When a public project from $25,000.01 to $75,000 is to be contracted for, the purchasing agent shall mail a notice inviting informal bids to all contractors on the list for the category of work being bid, to all construction trade journals on the list, and to such other contractors and trade journals as may be requested by the department in charge of the project. However, if a product of service essential to the project is proprietary and can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent only to such contractor or contractors.
(B) . All mailing of notices inviting informal bids shall be completed not less than 10 calendar days before bids are due.
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(C) The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and shall state the time and place for the submittal of bids.
(D) The purchasing agent and the director of the department in charge of the project are each authorized to award and execute contracts for public projects of $75,000 or less or to reject all bids and to execute any change order to such a contract if that change order, together with the amount of the original contract and any previous change orders thereto, does not exceed $75,000. Any change orders exceeding such total amount shall be submitted for approval by the City Council. (E) If all bids received are in excess of $75,000, the City Council may, by adoption of a resolution by a four-fifths vote, award the contract at $80,000 or less to the lowest responsible bidder, if the City Council determines that the City's cost estimate was reasonable. (F) If no bids are received, the project may be performed by force account or by negotiated contract.
(G) All contracts and change orders shall be in a form approved by the City Attorney.

Sec. 2806. Formal Bidding Procedures. (A) The City Council shall approve plans, specifications and working details for all public projects of more than $75,000. (B) When a public project of more than $75,000 is to be contracted for, the purchasing agent shall prepare a notice inviting formal bids, which shall distinctly describe the project and state the time and place for receiving and opening sealed bids.
(C) At least 14 calendar days before the date of opening the bids, the purchasing agent shall publish the notice in a newspaper of general circulation, printed and published in the City. At least 30 calendar days before the date of opening the bids, the purchasing agent shall mail the notice to all construction trade journals on the list referred to in subsection (b) of section 2804. The purchasing agent may also give such other notice as the purchasing agent or the director of the department in charge of the project deems proper.
(D) The purchasing agent may reject any bids received. If, after the first invitation of bids, all bids are rejected, the purchasing agent may, after reevaluating the cost estimates for the project:
(1) Abandon the project;
(2) Readvertise for bids; or
(3) Request that the City Council adopt a resolution by a four-fifths vote, declaring that the project can be performed more economically by City employees. If such a resolution is adopted, the purchasing agent may have the project done by force account.
(E) The purchasing agent shall award any contract to the lowest responsible bidder and is authorized to execute such contract.
(F) If no bids are received, the project may be performed by negotiated contract or by City employees by force account.
(G) The director ofthe department in charge of the project is authorized to execute any change order to a contract awarded pursuant to subsections (e) or (f) of this section, provided the change order does not exceed the total amount of the original contract and any previous change orders thereto. Any change order exceeding such total amount shall be submitted for approval by the City Manager. (H) All contracts and change orders shall be in a form approved by the City Attorney.

Sec. 2807. Same-Bid Bonds. All sealed bids submitted pursuant to section 2806 must be accompanied by a bid security in an amount equal to at least 10 percent of the amount bid. A bid shall not be considered. unless one of the forms of bid security specified in Government Code section 20170 is enclosed with the bid. If the successful bidder fails to execute the contract, the amount of the bidder's security shall be forfeited to the City, except as provided in Government Code sections 20173 and 20174. ) )
Sec. 2808. Performance and Payment Bonds. The purchasing agent or departmental director awarding a contract pursuant to section 2805, and the purchasing agent awarding a contract pursuant to section 2806, may require a faithful performance bond and shall require a payment bond in an amount equal to at least one-half of the amount of the contract. Such bonds shall be issued by an admitted surety insurer and be in the form of a bond, not a deposit in lieu of a bond.

Sec. 2809. Emergencies; Procedure. (A) In cases of great emergency, including, but not limited to, states of emergency defined in section 8558 of the Government Code, when repair or replacements are necessary to permit the continued conduct of the operation or services of the City or to avoid danger to life or property, any public facility may be repaired or replaced, pursuant to the procedure set out in subsection (b), without adopting plans, specifications, strain sheets or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the City Council, by contract, or by a combination of the two.
(B) By majority vote, the City Council may declare an emergency and authorize the repair or replacement ofa public facility, as described in subsection (a). If the City Council is not in session, the City Manager may take such actions, subject to confirmation by the City Council, by a four-fifths vote, at its next meeting.

PART 3 - PURCHASE OF SUPPLIES AND EOUIPMENT
Sec. 2810. Authority to Purchase. Supplies and equipment may be purchased for the City by the purchasing agent and by such other City officers and employees.

Sec. 2811. Purchase Orders and Contracts. Purchases of supplies and equipment shall be made only by purchase order or by contract in a form approved by the City Attorney. The purchasing agent or the City officer or employee making the purchase is authorized to execute the purchase order or contract on behalf ofthe City.

Sec. 2812. Bids Required. Except when the commodity can be obtained from only one source, bids shall be obtained for all purchases of supplies or equipment of $1 ,000 or more, in accordance with such procedures as the City Council may adopt by resolution.

Sec. 2813. Emergencies. If the City Council or the City Manager declares that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health or property, the City Council or the purchasing agent may expend any sum required to purchase supplies and equipment in the emergency without complying with section 2805.

PART 4 - CONTRACTING FOR TRADE SERVICES AND PROFESSIONAL SERVICES Sec. 2814. Definitions. (A) "Trade services" are services other than professional services. (B) "Professional services" are services and advice rendered by a specially trained and experienced person, firm or corporation in financial, economic, accounting, architectural, landscape architectural, engineering, environmental, land surveying, construction project management, legal or administrative matters.

Sec. 2815. Purchase of Trade Services. Trade services may be purchased for the City by the purchasing agent or by other City officers and employees in accordance with procedures adopted by resolution of the City Council.
) )
Sec. 2816. Purchase of Professional Services. Professional services may be purchased for the City by the purchasing agent or by other City officers and employees in accordance with procedures adopted by resolution of the City Council. However, procedures for contracting for certain professional services are provided in division 5 of this article.

Sec. 2817. Purchase Orders or Contracts Required. (A) Every purchase of trade services shall be by purchase order or by contract in a form approved by the City Attorney. (B) Every purchase of professional services shall be by contract in a form approved by the City Attorney.
(C) The purchasing agent or the City officer or employee making the purchase of trade services or professional services is authorized to execute the purchase order or contract on behalf ofthe City.

PART 5 - CONTRACTING FOR CERTAIN PROFESSIONAL SERVICES
Sec. 2818. Purpose. The purpose of this part is to ensure that certain professional services are engaged on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City and to ensure maximum participation by small business firms.

Sec. 2819. Definitions. (A) As used in this part, "services" means architectural, landscape architectural, engineering, environmental, land surveying and construction project management services rendered by private persons or firms, as such services are defined by section 4525 of the Government Code. (B) As used in this part, "small business firms" means those businesses so defined by the California State Director of General Services pursuantto section 14837 of the Government Code.

Sec. 2820. Applicability. This part shall not apply when the person or body selecting the services determines that the services needed are more of a technical nature and involve little professional judgment and that requiring bids would be in the public interest.

Sec. 2821. Basis for Selection. Persons and firms shall be selected to render services to the City on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required.

Sec. 2822. Actiyities Prohibited. (A) In contracting for services, no person shall engage in practices that might result in unlawful activity including, but not limited to, rebates, kickbacks or other unlawful consideration.
(B) If a City employee has a relationship with a person or business entity seeking a contract for services, and such relationship would subject the employee to the prohibition of section 87100 of the Government Code, such employee shall not participate in the process of selecting the contractor for those services. Section 87100 of the Government Code provides that no public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest.

Sec, 2823. Procedure. (A) Requests for proposals for services may, but need not, state the amount that has been budgeted for the services. However, requests for proposals for services shall prohibit proposers from providing information as to the cost at which they would provide services. (B) Requests for proposals for services shall require proposers to provide information as to their professional experience and qualifications. In addition, requests for proposals for construction project management services shall require proposers to provide evidence that the person or firm and its personnel carrying out onsite responsibilities have expertise and experience in construction project ) )
design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims review and negotiation, and general management and administration of a construction project.
(C) City staff shaH make reasonable efforts to make small business firms located in San Luis Obispo County aware of requests for proposals issued by the City for services provided by such firms. (D) City staff shaH determine the best qualified proposers and rank them accordingly. Rankings shall be based on responses to the request for proposals and on any interviews with the proposers that City staff may conduct. Interviews need not be conducted if City staff has sufficient information from the responses to the request for proposals to determine rankings. (E) City staff shaH negotiate for a contract with the first ranked person or firm at a compensation that City staff determines is fair and reasonable to the City. If City staff is unable to negotiate a satisfactory contract with the first ranked person or firm, City staff shaH notity such person or firm in writing that negotiations are terminated and shall begin negotiate with the second ranked person or firm, and so on in order of the rankings. If City staffis unable to negotiate a satisfactory contract with the second and third ranked person or firm, City staff may enter into negotiations with additional persons or firms in the order that they are ranked, pursuant to the same procedure, until a satisfactory agreement is reached, or may notity all remaining proposers that no additional negotiations will be entered into. In such case, City staff may issue a new request for proposals or perform the services with City employees.

Sec. 2824. No Obligation to Contract. Every contract for services must be awarded pursuant to this part.

However, nothing in this part shall require City staff to enter into any contract for services with any person or firm.

PART 6 - ADDITIONAL PROCEDURES
Sec. 2825. Purchasing Manual. The purchasing agent shall develop and maintain a purchasing manual that provides detailed procedures for compliance with City ordinances and resolutions and State and federal laws applicable to purchasing and contracting.

Within fifteen days after passage, the City Clerk shall cause this ordinance to be published one time in a newspaper of general circulation, published and circulated in the City. Ordinance No.97-l1 was first read on July 7, 1997 and finally adopted on July 21, 1997, to become effective thirty days thereafter.

On motion by Council Member Arnoldsen, second by Council Member Santos and on the following roll- . call vote, to wit:

AYES:

NOES:

ABSENT:

Arnoldsen, Santos, Gates, Keith, Mayor Reed
None
None
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APPROVED AS TO FORM:
~~ ES F. RUPP, CITY ARNEY
ORDINANCE NO. 23______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GROVER BEACH, CALIFORNIA, REPEALING OF CHAPTER 8 (PERFORMANCE OF PUBLIC PROJECTS; PURCHASING OF SUPPLIES AND EQUIPMENT; CONTRACTING

FOR SERVICES), OF ARTICLE II (ADMINISTRATION) AND ADDING A NEW SECTION 2800 OF CHAPTER 8 (PURCHASING POLICY) OF ARTICLE II (ADMINISTRATION) OF THE GROVER BEACH MUNICIPAL CODE
WHEREAS, the City of Grover Beach (“City”) is a General Law city organized pursuant to Article XI of the California Constitution; and
WHEREAS, this Chapter may be referred to as the “Purchasing Policy” and is adopted pursuant to the authority identified in this ordinance, including Government Code Sections 37103, 37350 et seq., 53060, and 54201 et seq., as well as the police power set forth in Article XI, Section 7 of the California Constitution; and
WHEREAS, This Ordinance applies to contracts for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative policy, and WHEREAS, it shall not be applied to purchases by elected officials not statutorily required to purchase in compliance with City policies or for whom purchases are not made by the City; and WHEREAS, when the procurement involves the expenditure of State or Federal assistance or contract funds, the procurement shall be conducted in accordance with any applicable mandatory State and/or Federal law. This ordinance does not apply to the procurement of legal services; and
WHEREAS, the Purchasing Policy, is not a project within the meaning of the California Environmental Quality Act (California Public Resources Code §§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of Regulations §§ 15000, et seq.) Section 15378 because the approval of the Purchasing Policy will not result in a direct or indirect physical change in the environment and does not involve an irrevocable commitment of resources by the City.

NOW THEREFORE, BE IT HEREBY ORDAINED BY THE CITY COUNCIL OF THE CITY OF GROVER BEACH AS FOLLOWS:

PART 1. Chapter 8 (Performance of Public Projects; Purchasing of Supplies and Equipment; Contracting for Services), of Article II (Administration) is hereby repealed in total.

PART 2. A new Section 2800 of Chapter 8 (Purchasing Policy) of Article II (Administration) is hereby added as follows:

Attachment 2
Ordinance No. 23-__ Page 2
Chapter 8 – Purchasing Policy
Sec. 2800. The Purchasing Policy shall represent the procedures for the procurement of goods, services, construction, and professional services entered into by the City and it shall apply to every expenditure of public funds by the City for public purchasing irrespective of its source, except as otherwise provided by State law, State regulation, City ordinance or administrative policy. The Purchasing Policy Dated July 24, , 2023, and entitled “City of Grover Beach Purchasing Policy, Version no. 1” is hereby incorporated by reference as if set out in full and adopted by the Council establishing the purchasing procedures for the City which shall be implemented consistent with the provisions within the Purchasing Policy.

PART 3. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held invalid by a court of competent jurisdiction, such a decision shall not affect the validity of the remaining portions of this Ordinance. The City Council declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses, or phrases, be declared invalid.

PART 4. All ordinances and parts of ordinances in conflict with those sections amended or added herein are hereby repealed.

PART 5. Effective Date. This Ordinance shall not become effective and in full force and effect until 12:01 a.m. on the thirty-first day after its final passage. However, within fifteen (15) days after adoption by the City Council, the Ordinance shall be published once, together with the names of the Council Members voting thereon, in a newspaper of general circulation within the City.

INTRODUCED at a regular meeting of the City Council held on July 24, 2023 and PASSED, APPROVED, and ADOPTED by the City Council on August _____, 2023, on the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________

KAREN BRIGHT, MAYOR
Attest:
______________________________

WENDI SIMS, CITY CLERK
Approved as to Form:
_____________________________
DAVID P. HALE, CITY ATTORNEY
** D R A F T **
City of Grover Beach
Purchasing Policy, Version No. 1
As Approved by City Council Resolution 2022-XX
Date:

July 24, 2023
Attachment 3

TABLE OF CONTENTS

CONTENTS
SECTION 1 – OVERVIEW......................................................................................................... 2

1.1 Introduction.................................................................................................................. 2

1.2 Purchasing System...................................................................................................... 2

1.3 Types of Purchases ..................................................................................................... 2 SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES ........................................... 3

2.1 General Authority......................................................................................................... 3

2.2 Grant Funding.............................................................................................................. 4 SECTION 3 – PURCHASING PROCESS .................................................................................. 5

3.1 Permitted Purchasing Methods .................................................................................... 5

3.2 Purchase Requisitions/Purchase Orders...................................................................... 5

3.2.1. Blanket Purchase Orders/Standard Goods Contracts..........................................................5 SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS ............................... 6

4.1 Supplies, Materials, Equipment and General Services................................................. 6

4.2 Public Projects ............................................................................................................. 7

4.2 Purchases of Certain Professional Services................................................................. 8

4.3 On-Call Consultant Services ........................................................................................ 9

4.4 Contract Amendments and Change Orders ................................................................. 9 SECTION 5 – BIDDING PROCEDURES ................................................................................... 9

5.1 Request for Bids (RFB)................................................................................................ 9

5.2 Request for Proposals (RFP)....................................................................................... 9

5.3 Request for Qualifications (RFQ) ................................................................................10

5.4 Informal Quotes ..........................................................................................................10

5.5 Bidding Criteria ...........................................................................................................10 SECTION 6 – NO-BID PURCHASING ......................................................................................11

6.1 Low-Cost Purchasing..................................................................................................11

6.2 Sole Source Purchasing .............................................................................................11

6.3 Emergency Purchasing...............................................................................................11

6.4 Cooperative Agreement Purchasing ...........................................................................12

6.5 Routine Expenditures for Utilities, Payroll and Other Services ....................................12 SECTION 7 – CREDIT CARD CHARGES ................................................................................12

7.1 Credit Card Issuance ..................................................................................................12 1 SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT ..............................................14

8.1 Requirement ...............................................................................................................14

8.2 Exceptions ..................................................................................................................14 SECTION 9 – PAYMENT OF INVOICES ..................................................................................15

9.1 Receipt of Goods and Services...................................................................................15

9.2 Invoice Process ..........................................................................................................15 SECTION 10 – CONTRACT MANAGEMENT ...........................................................................15

10.1 Responsibilities...........................................................................................................15

10.2 City Attorney Approval ................................................................................................15

10.3 Execution....................................................................................................................16

10.4 Control of Contract......................................................................................................16 SECTION 11 – DISPOSAL OF SURPLUS PROPERTY ...........................................................16

11.1 General.......................................................................................................................16

11.2 Value Exceeding $5,000................................................................................................16

11.3 Value of $5,000 or Less ..............................................................................................16

11.4 Donations to Other Agencies .........................................................................................17 SECTION 12 – DEFINITIONS...................................................................................................17

11.1 Capital Asset...............................................................................................................17

11.2 Force Account.............................................................................................................17

11.3 Job Order Contract .....................................................................................................17

11.4 Public Project..............................................................................................................17

11.5 Sole Source Purchase ................................................................................................17

11.6 Surplus Property .........................................................................................................18

ATTACHMENTS
A Emergency Purchasing and Disaster Policy .............................................................. 18 B Credit Card Agreement..............................................................................................22 2 SECTION 1 – OVERVIEW

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

These guidelines are not intended to address every issue, exception or contingency that may arise in purchasing activities. Accordingly, the basic standard that should always prevail is to exercise good judgment in the use and stewardship of City resources. Any questions about purchasing activities or proper purchasing process should be referred to the Administrative Services Department.

Definitions for certain terms in this policy are included in Section 11 of this policy.

1.2 Purchasing System
Chapter 8 of Article II of the City of Grover Beach Municipal Code (GBMC), which incorporates these Policies (this Purchasing Policy) and the policies and procedures set forth in this chapter shall govern the City’s purchasing system, in addition to applicable sections of the Public Contracting Code to the extent the act preempts local regulations governing public works contracts (see California Public Contract Code Sections 20100, et. seq.). This system has been developed to achieve the following objectives:
• Secure goods and services at the lowest cost possible commensurate with quality requirements and the City’s needs;
• Establish authority, responsibility and accountability for purchasing activities conducted on behalf of the City;
• Ensure appropriate levels of competition and provide equal opportunities for all qualified vendors;
• Standardize procedures where appropriate to achieve consistency in purchasing practices in adherence to City policies and goals;
• Coordinate citywide purchasing for commonly used items.

1.3 Types of Purchases
The type of purchase and the estimated cost of the purchase determine the formality of the process by which the purchase shall be made. The City has identified three basic types of purchases:
• Purchases of Supplies, Materials, Equipment and General Services. Purchases or contracts for supplies and equipment, as well as operating and maintenance services.
• Purchases for Public Projects. Purchases for public projects, as defined by Public Contracting Code Section 20161 (generally, contracts for construction, reconstruction, erection, alteration, renovation, improvement, demolition and repair work, including painting of any facility owned, leased or operated by the City and street or sewer work).
3 • Purchases for Certain Professional Services. Professional work provided to the City by specially trained and experienced individuals or firms regarding engineering, planning, architectural, landscape architectural, environmental, land surveying and construction project management.
• Purchases for Services from On-Call Contractors. Purchases of consultant services, made from a list of contractors deemed most qualified via a competitive Request for Statement of Qualifications process and approved by Council. On-call lists must be approved by Council at least every three years.

SECTION 2 – PURCHASING AUTHORITIES/RESPONSIBLITIES

2.1 General Authority
The Table below demonstrates the City’s purchasing authorities and responsibilities:

City Council • Adopt purchasing ordinance
• Adopt resolution to approve
purchasing policy
• Approve changes to the
purchasing policy involving
purchasing thresholds or
authorities
• Approve purchases as required
under Section 4 of this policy
• Delegate authority to City
Manager/staff for purchases within
certain cost thresholds and
approved budget
City Manager • Ensure implementation of
purchasing policies
• Approve administrative changes to
the policy, including changes to
processes and procedures, but
not including changes to
purchasing thresholds or authority.
• Serve as or designate “Purchasing
Agent”
• Award contracts as specified in
Section 4 of this policy
Administrative Services Director (or
designee)
• Develop and implement
purchasing policies and
procedures
4 • Review purchases and contract
awards for compliance with
purchasing policy
• Assist departments in
development of solicitations
• Create, manage and maintain
Blanket Purchase Orders
City Engineer • Approve specifications for public
projects
Public Works Director • Approve Job Order Contract task orders for public projects
Department Heads • Review and approve departmental
purchases and contracts as
specified in Sections 4 and 10
• Approve invoices or payment
requests for departmental
purchases
• Delegate purchasing authority to
department employees as
appropriate
IT Manager • Review all purchases of citywide
or departmental technology
systems, applications, software or
hardware for recommendation on
purchase
Authorized Employees • Purchase, receive and pay for
items in accordance with City
guidelines
• Review (and approve if delegated
by the Department Head) invoices
or payment requests for
departmental purchases

2.2 Grant Funding
Federal, State or other grant programs may require additional conditions that are more stringent than the City’s procedures. It is the responsibility of the department accepting the grant to ensure all grant provisions are complied with. Departments should adhere to Part 200 – Uniform Administrative Requirements for Federal Grants, including the 5 Section 200.318 general procurement standards, which can be found here:
https://www.ecfr.gov/current/title-2/part-200.

SECTION 3 – PURCHASING PROCESS

3.1 Permitted Purchasing Methods
Departments may use three methods to purchase goods and services: Purchase Order/Contract, City Credit Card and Emergency Purchases. The table below summarizes the dollar thresholds and requirements for each method. Note that work may be performed by Force Account, or with internal resources, if the Department Head determines internal resources have the needed ability/expertise and the total cost is less than $25,000.

Purchase Type Dollar Threshold Requirements
Contract/Purchase
Requisition/ Purchase
Order**
Within approved
budget
Must obtain all approvals as required by
Section 4
Credit Card Up to $5,000* Not permitted for purchases for services or Capital assets. Only employees
authorized by Department Heads may
make credit card purchases.

Emergency Purchase Within Budget* for
a General
Emergency
For a Proclaimed
Emergency or
Disaster, refer to
Attachment B
Only permitted if there is an immediate
and serious need that cannot be met
through normal purchasing procedures
that would seriously threaten the
functioning of City government, the
preservation of property or the health
and safety of any person consistent with
approved emergency declaration. All
emergency purchases must be reported
to the Administrative Services
Department as soon as is practicable.
* Limit/amount may be raised with City Manager approval ** Purchase Requisitions and Purchase Orders are not required, pending a new financial system

3.2 Purchase Requisitions/Purchase Orders

3.2.1. Blanket Purchase Orders/Standard Goods Contracts. The Administrative Services Department shall develop contracts and/or Blanket Purchase Orders with vendors for frequently purchased goods. The Administrative Services 6 Department shall maintain a list of citywide contracts and Blanket Purchase Orders for these purchases. City staff must use the City accounts or contracts when making related purchases, unless otherwise authorized by the Administrative Services Department and approved by the City Attorney. [THE REMAINDER OF THIS SECTION IS INTENTIONALLY LEFT BLANK PENDING IMPLEMENTATION OF FINANCIAL SYSTEM]
SECTION 4 – PURCHASING BIDDING AND APPROVAL THRESHOLDS
The required bidding process and level or approvals for any purchase is determined by the type of purchase (see Section 1.3 of this policy) and the cost of the purchase. Most purchases that do not fall within an exception listed in Section 6 of this policy require an informal or formal bidding process (See Section 5 of this policy which defines each bidding process). Note that the buyer for any purchase cannot serve as the approver of that purchase.

4.1 Supplies, Materials, Equipment and General Services The table below summarizes the bidding and approval requirements for purchases of supplies, materials, equipment and general services. Note that all purchases of technology systems, applications, software or hardware must be reviewed by the IT Manager.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Informal Quotes
Process*
Department Head
approves invoice or
PO
PO or contract
required
$50,001-$100,000 RFB Process City Manager
approves
PO or contract
required
More than $100,000 RFB Process City Council
approves contract
Contract required;
Contracts must be
reported to the City
Council in quarterly
reports
* Generally, staff should seek at least three quotes. A “no-bid” response may be considered a quote for this purpose. 7 4.2 Public Projects
The table below summarizes the bidding and approval requirements for Public Project purchases. Staff should also consult the Public Contracting Code Guidance provided by the Public Works Department.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 RFB RFP Process Department Head or
designee approves
invoice
PO or contract
required
$50,001-$100,000 RFB/RFP Process City Manager
approves PO
Contract or PO
required
$100,001-$200,000 RFB/RFP Process City Council
approves contract
Contract required
More than $200,000 RFB/RFP Process City Council
approves project
concept prior to
bidding process and
resulting contract
Contract required
8 4.2 Purchases of Certain Professional Services
For purchases of certain professional services, as defined in Section 1.3 of this policy, persons or firms must be selected on the basis of demonstrated competency and professional qualifications necessary for the performance of the services required and proposers must provide information about the cost of services under separate cover. The table below summarizes the bidding and approval requirements for each type of service under this section.

Purchase Amount Bid Process Approval PO/Contract
Requirement
$5,000 or less None Required Department Head or
designee approves
invoice
No PO or contract
required
$5,001-$50,000 Proposals from Oncall Consultants
Department Head
approves PO
Contract required
$50,001-$400,000 Proposals from Oncall Consultants
City Manager
approves PO
Contract required
More than $400,000 Proposals from Oncall Consultants
City Council
approves
Contract required

4.4 Contract Amendments and Change Orders
A purchase approver may amend a contract or approve a change order in an amount not to exceed 20% of the original contract amount without approval from the higher purchasing authority, provided that the original contract was within the approver’s authority, as noted in this Section 4, and the amendment or change order does not materially change the scope of services.

SECTION 5 – BIDDING PROCEDURES
For purchases that require a bidding process as shown in Section 4 of this policy that do not fall within the exceptions listed in Section 6 of this policy, staff must engage in one of the following competitive bidding processes describe below.

5.1 Request for Bids (RFB)
An RFB is a request to vendors to submit an offer or quote for specific, defined goods, products or construction. An RFB should be used when seeking a fixed price for goods with known specifications (e.g. Dell XPS 13 laptops). RFBs are used for Construction of Public Projects and when setting up a Job Order Contract (defined in Section 11 of this Policy). RFBs must be posted on the City’s designated solicitation site along with other desired noticing.

5.2 Request for Proposals (RFP)
An RFP is a request to vendors to submit a proposal for goods or services for which the exact specifications or methodology of providing the desired goods or services is not 10 defined. An RFP is generally used for more complex goods or services purchases. RFPs allow for consideration of factors other than price, including the qualifications of the vendor and the vendor’s ability to perform. RFPs must be posted on the City’s designated solicitation site along with other desired noticing.

5.3 Request for Qualifications (RFQ)
An RFQ is a request for a statement of qualifications for a certain class of vendors or consultants. RFQs are used to develop On-call or Master Agreements. RFQs must be posted on the City’s designated solicitation site along with other desired noticing.

5.4 Informal Quotes
When formal bidding is not required by the City’s purchasing policy, staff may seek informal quotes by verbal or written request. An informal or quick quote is a simple request for pricing on simple, low-cost goods or services. Staff should request quotes from at least three vendors, if available. If quotes are sought by verbal or written request, staff must create a quote summary to record the quotations received..

5.5 Bidding Criteria
The table below summarizes the requirements and process for each type of solicitation listed in Sections 5.1 – 5.4 of this policy.

RFB RFP RFQ Informal Quote
Goal Lowest Price Lowest
Responsible
Bidder
Most Qualified Lowest Price
Public Opening
Requirements
Open publicly
and read aloud
Open publicly
and pricing read
aloud
No public
opening.

Qualification
statements
made publicly
available
No public
opening
Evaluation
Process
Select lowest
responsive bid.

No scoring
Responsible
proposals
evaluated and
scored based on
qualifications.

Qualifications
evaluated and
scored (can
have pass/fail
responses). No
cost evaluation.

Select lowest
responsive
quote. No
scoring
Award Basis Lowest
responsive bid
Highest scored
proposal
Highest scored
submittal
Lowest
responsive
quote
11 SECTION 6 – NO-BID PURCHASING

6.1 Low-Cost Purchasing
As noted in the tables in Section 4 of this manual, no bidding process (formal or informal) is required for purchases of less than $5,000.

6.2 Sole Source Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, certain acquisitions in which the products or services may only be obtained from a single source may be purchased without engaging in bidding procedures.

Sole Source purchases must be justified in sufficient detail to explain the basis for suspending the usual competitive procurement process and approved by the Administrative Services Department before such a purchase is made.

Some examples of legitimate sole source purchases include the following:
• Purchases in which only one known source exists or there is no reasonable alternative source for the goods or services as determined by documented research • Purchases in which only one source meets the City’s business needs (e.g., compatibility with existing systems, unique features or services that meet the desired goals of the City, etc.).
• Purchases of proprietary items which only the manufacturer, owner, or designated re-seller is permitted to sell (this includes purchases in which purchasing from a nondesignated seller would result in nullification of manufacturer warranties) • Upgrades to existing systems where purchasing a different solution or product would result in significant additional costs (e.g., data conversion, re-training of staff, new system implementation costs)
• Purchases of services from a contractor with specific and unique knowledge of existing City systems, procedures or historical data that is critical to the project or City goals where use of another contractor would result in significant costs or project delays due to lack of such knowledge.

6.3 Emergency Purchasing
Generally, it is the policy of the City to solicit quotations or bids for purchases of commodities or services for more than $5,000 and to select vendors on a competitive basis. However, purchases that are required to safeguard and immediate life, health or property interest may be made without a bidding process.

Section 6.3.1 – A purchase qualifies as an Emergency Purchase if all of the following are true:
• The City’s need cannot be met under the time constraints of the normal purchasing process and;
12 • The lack of equipment, goods or services would seriously threaten the functioning of City government, the preservation of property or the health and safety of any person.

Section 6.3.2 – City staff must not use the emergency purchase process to circumvent general purchasing policy or vendor licensing requirements. City staff should seek quotes and determine reasonableness of pricing when making an emergency purchase whenever possible.

Section 6.3.3 – Local Emergency Purchasing. If a local emergency is declared by the City Council, City staff must adhere to the Emergency and Disaster Purchasing Policy (see Attachment B).

6.4 Cooperative Agreement Purchasing
Section 6.4.1 – City staff may use established cooperative agreements involving other public agencies for purchases without a competitive bidding process, if those cooperative agreements were competitively bid. City staff is responsible for researching cooperative agreements to ensure the bidding process complies with City competitive bidding rules.

Section 6.4.2 – City staff should research the pricing for the goods or services being sought and compare the pricing set forth in the cooperative agreement is reasonable. If the pricing set forth in a cooperative agreement is not reasonable, City staff should initiate a competitive bidding process rather than leveraging the cooperative agreement.

6.5 Routine Expenditures for Utilities, Payroll and Other Services Routine expenditures that benefit several departments, such as telephone, utilities, debt service payments, and payroll benefit costs, shall be paid by the Administrative Services Department without the use of a Purchase Order Request. Computer spreadsheets, reports, or other coding information will be sufficient to use as backup documentation.

These procedures may be waived in the event of an emergency if it is in the public interest.

SECTION 7 – CREDIT CARD CHARGES

7.1 Credit Card Issuance
The Administrative Services Department will issue credit cards only to permanent employees who are approved by their Department Head.
13 7.1.1 Limits. Generally, City-issued credit cards shall have a credit limit of $5,000. However, the City Manager may approve an increase of this limit if written justification is provided by the Department Head.

7.1.2 City Business. City credit cards are for official City business only. No personal purchases may be charged to the card. Intentional charging of personal expenses on City credit cards is a misuse of City funds, and a serious breach of the City’s ethics policy. Doing so, even if the intent is to reimburse the City later, will result in disciplinary action, up to and including termination and legal action.

Minor incidental expense as a component part of a larger billing, such as personal calls on a hotel bill, may be allowed if reimbursed at the time the credit card billing is submitted for payment.

7.1.3 Travel Expenses. Credit cards may be used in paying for travel expenses.

However, the City’s Travel Guidelines still apply to all such credit card payments, including the use of Travel Authorizations and per diem amounts.

7.1.4 Gratuities. Generally, purchases with City credit cards may include reasonable gratuities for services for which such gratuities are standard but should not exceed 20 percent of the total cost.

7.1.5 Comply with Rules. City credit cards may not be used to circumvent other purchasing rules in this manual. Additionally, City credit cards may not be used for the following:
• Cash advances, wire transfers, money orders, etc.
• Purchases of items for which the City has contracts (water meters, bulk fuel, etc.) unless it is an emergency situation, and approved by the Approving Official.
• Political or religious organizations.
• Court costs, fines, bail, or bonds.
• Rentals, except for small pieces of equipment to be used for less than a weekin duration or vehicle rentals related to travel.
• Temporary employees.
• Alcoholic beverages and tobacco products.
14 7.1.6 Cardholder Responsibility. Each cardholder is responsible for the security and safe keeping of the credit card and must sign the City’s Credit Card Agreement (See Attachment C – Credit Card Agreement). Cardholders should obtain itemized receipts for every transaction. Cardholders who fail to provide itemized receipts for purchases may be held personally responsible for charges.

If an item is billed incorrectly, the cardholder is responsible for contacting the vendor within 10 days of the transaction. The employee should notify Accounts Payable and should provide all documentation relating to the charge in a timely manner. Accounts payable will contact the bank and will pursue the matter until resolved.

7.1.7 Department Head Responsibility. Department Heads must authorize issuance of credit cards and develop and implement departmental procedures to be sure credit card purchases are approved and forwarded to Administrative Services in accordance with this manual, and in a timely manner. Department Heads must retrieve credit cards from the cardholder if the cardholder fails to adhere to the policies in this manual or separates from City service. When necessary, Department Heads must enforce disciplinary action associated with the misuse of credit cards.

7.1.8 Disciplinary Action. The Director of Administrative Services or authorized designee will notify Department Heads regarding misuse of City credit cards.

Department Heads will be responsible for all disciplinary action surrounding misuse of cards, or abuse of this policy. This will include cancellation of card privileges, and other action as deemed appropriate.

SECTION 8 – BUSINESS TAX CERTIFICATE REQUIREMENT

8.1 Requirement
The City requires most entities doing business within or transacting with the City to obtain a Business Tax Certificate, pursuant to GBMC Section 10202. Therefore, for most purchases, City staff must notify the vendor of the requirement and/or ensure that the vendor has a Business Tax Certificate before making the purchase. Whenever possible, City staff should direct purchases to vendors who already have a valid business license. Staff should contact the Administrative Services Department for a current listing of businesses who have valid Business Tax Certificates.

8.2 Exceptions
• Some businesses are exempt from obtaining a Business Tax Certificate (see GBMC Section 10215). For those businesses that are exempt, staff need not require proof of a Business Tax Certificate to make a purchase. 15 SECTION 9 – PAYMENT OF INVOICES

9.1 Receipt of Goods and Services
Items must generally be shipped to a City address or worksite. If the product will be shipped to an alternate location, this should be cleared through the Administrative Services Department inadvance.

9.2 Invoice Process
Once an invoice is received, staff should verify the goods or services were received in good working order or pursuant to the scope and terms of the contract, when applicable.

Upon verification, the Department should enter all necessary information in the Accounts Payable System provide the following information to the Administrative Services Department:
• That they are authorizing payment (i.e., use stamp)
• The amount that they are authorizing for payment
• The account number(s) that is to be charged
• Include vendor’s W-9 form if not already on file (should be checked with the Administrative Services Department)
• Attach a copy of the contract, if applicable
• Attach invoice/receipt/backup
SECTION 10 – CONTRACT MANAGEMENT
Purchases that require contracts, as noted in Section 4 of this policy, and any contract entered into on behalf of the City must adhere to this Section 10.

10.1 Responsibilities
Contract management is the primary responsibility of the department in charge of the project or services. Prior to requesting bids or proposals, the Department Director shall work with the City Attorney to ensure the contract is in proper legal form and shall ensure the contract is properly executed upon award. The Department Director shall also ensure that payment to contractors or vendors are in accordance with the payment terms and/or schedule within the contract.

10.2 City Attorney Approval

10.2.1 Unless otherwise exempted in this Policy, contracts must be reviewed and approved as to legal effect and form by the City Attorney prior to execution or submittal to the City Clerk for inclusion in the City Council Agenda. .

10.2.3 Templates. If staff uses a City Attorney-approved contract template for the purchase of goods or equipment and no changes are made, additional City Attorney approval and/or signature is not required.
16 10.3 Execution
Whenever possible, contracts that require approval of the City Council should be signed by the contractor prior to being brought before the Council and a copy of the contract shall be included in the Council agenda package submitted to the City Clerk before it is included into the Council agenda package. Contracts should be signed via electronic signature whenever legally permitted. Contracts that are signed by a corporation or any other legal entity other than an individual, should be verified by written delegation of the legal entity the party signing the agreement has authority to do so. The City Attorney can assist with the type and nature of written authority necessary for a binding agreement.

10.4 Control of Contract
The Director of the contracting department shall maintain a copy of each contract and shall provide a copy to the Administrative Services Department. Contracts should be maintained for at least three years from the date of final payment under the contract.

SECTION 11 – DISPOSAL OF SURPLUS PROPERTY
All departments shall notify the Administrative Services Department of existing materials, supplies or equipment that are no longer used or have become obsolete. Departments may sell or dispose of such property under the following Sections.

11.1 General
If disposing of any City property, staff should determine the property’s value and reason for disposal (ie: property is past useful life, property is obsolete or being replaced by updated equipment). Disposal of capital assets must be reported to the Administrative Services Department.

11.2 Value Exceeding $5,000

11.2.1. If the value of the equipment or goods exceeds $5,000, the City must publish a notice in a newspaper of general circulation and shall sell the property using one of the following methods:
(A) A notice inviting formal bids shall be published in a newspaper of general circulation and sale shall be made to the highest bidder. (B) The department may use a third party vendor to auction the items on behalf of the City.

11.2.2. The department may dispose of property with a value exceeding $5,000 only if it is determined to be unusable or if an attempted sale is not successful.

Disposal of such property must be approved by the City Manager.

11.3 Value of $5,000 or Less
If the value of the equipment or goods is $5,000 or less, the surplus property shall be offered to other departments, if feasible. If no other City department claims the property, it must be included in a list prepared by the Administrative Services Department and be 17 sold by informal bids to the highest bidder. If no bids are received or if the property has no resale value, the City Manager may approve the destruction of the property.

11.4 Donations to Other Agencies
If property may properly be donated to another governmental agency, staff shall make arrangements with that agency and notify the Administrative Services Department of property being donated and estimated value. Donations should be made on an “as-is” basis, without any express or implied representations or warranties under applicable law.

11.5 Disposal
Departments shall dispose of property at the City’s Corporation Yard. 11 – DEFINITIONS
For definitions of bidding processes, see Section 5 of this policy.

11.1 Capital Asset
Any asset, tangible or intangible, used in operations that has a service life of more than one year with a cost exceeding $25,000 for infrastructure and $5,000 for all other capital assets.

11.2 Force Account
Use of City assets, equipment or labor of City staff, rather than a contractor.

11.3 Job Order Contract
A competitively bid, fixed price, multi-year construction contract based on established or published unit prices via a unit price book (UPB) or a price list with a multiplier (termed coefficient) applied to the unit prices.

11.4 Public Project
A public project is “construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds . . . For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work regardless of whether any further construction work is conducted, and work performed during the postconstruction phases, including but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.” (See CA Labor Code Section 1720, CA Public Contract Code Section 20161).

11.5 Sole Source Purchase
A sole source purchase is when the City enters into a contract with a contractor without going through the typical competitive process as required by law because it deems that the contractor is the only source available that can meet the City’s 18 requirements or the purchase complies with the requirements of Section 6.2 of this Policy.

11.6 Surplus Property
Surplus property is tangible property (any property that can be physically relocated) that is no longer of use to any City department because it is obsolete, uneconomical to repair, or valued only for its base contents. Surplus Property may include anything from office supplies and furniture to vehicles and heavy equipment. Surplus property for purposes of this Policy shall not include real property as defined by State law.

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EXHIBIT A

EMERGENCY AND DISASTER PURCHASING POLICY
Policy Statement
The City of Grover Beach (City) is a full-service City, providing police, public works, parks and recreation and community development services. As such, it is the City’s responsibility to establish policies for prudent financial oversight and accountability.

The City Council sets legislative financial management policies, as recommended by staff. During declared states of emergency, the City may be required to invoke emergency purchasing practices to maintain core public services. These emergency practices are only authorized when the City Manager, acting in the capacity of the Director of Emergency Services, or the City Council of the City of Grover Beach declares a local state of emergency.

Purpose
When the City of Grover Beach has declared a local state of emergency, any official or employee who is required to purchase materials, supplies or services on behalf of the City for their department shall use purchasing practices set forth in this document until such time as the local state of emergency has been lifted.

This Policy modifies the City’s normal purchasing practices to assure that, in exigent circumstances caused by a proclaimed disaster or emergency, the City is able to acquire the goods and services required to address an immediate threat to health, safety or improved property while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the City is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that City procurements comply with federal regulations applicable to FEMA disaster grant reimbursement.

Definitions
For purposes of this Policy, (a) a proclaimed disaster or emergency exists if (i) the Governor has declared a state of emergency for an area which includes the geographic territory of the City; or (ii) the Chief Executive Officer of the City has declared an emergency in the City; (b) “Exigent Circumstances” are situations in which (i) a disaster or emergency has been proclaimed, and (ii) the public exigency for goods and services required to address an immediate threat to health, safety, or improved property will not permit competitive solicitation.

Emergency and Disaster Purchasing Policy
Disaster purchasing has a number of facets, first emergency spending limits are expanded and authorized by council without the need to obtain their prior approval. There can be individual limits and aggregate limits which give emergency managers the necessary authority to act quickly under exigent circumstances.

Page 19 ends

The concept of emergency purchases regards purchases made under “crisis” conditions, where there is an immediate threat to health, safety or improved property. When this condition (an immediate threat to health, safety or improved property) exists, the city has wider latitude to do what is necessary to save lives and prevent further damage to improved property. Given this, and operating under the understanding that when an emergency is in place, the City will be in need of supplies, goods and services as quickly as possible, local vendors within the City and County will be contacted first to obtain the quickest possible acquisition to preserve immediate health and safety for the Grover Beach community. This is consistent with the policy directives outlined below.

Section 1 - Delegations of Purchasing Authority in Exigent Circumstances. (a) if the City Manager determines that goods and services must be procured before the City Council is able to assemble and approve purchases, the City Manager has authority, subject to the limitations set forth in sub-paragraphs (a)(i) and (a)(ii), to approve the immediate rental or purchase of any equipment, supplies, services or other items necessary to respond to an immediate threat to health, safety or improved property.
(i) Limits of Single Purchase Authority. The City Manager shall have the authority to make individual purchases up to $250,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $250,000 up to a maximum of $500,000 when countersigned by the Mayor or in the Mayor’s absence countersigned by another council member.
(ii) Limits of Aggregate Purchase Authority. The City Manager shall have the authority to make aggregate purchases up to $500,000 on his or her signature alone. The City Manager shall have the authority to make purchases in excess of $500,000 up to a maximum of $1,500,000 when countersigned by the Mayor or in the Mayor’s absence countersigned by another council member.
(b) Sub-delegation to EOC Coordinator. The EOC Coordinator shall be a designee of the City Manager at any time that the City Manager is not available to approve purchases as allowed in this section. (c) Administrative Procedures: Reporting Requirements.
(i) As soon as possible after purchases are made under this section 1, the City Manager, EOC Coordinator, or department head shall submit to the Purchasing Officer (Administrative Services Director) a requisition and a notation that the commodity has been ordered on an emergency basis from the vendor designated.
(ii) The Purchasing Officer will inform the City Manager and the City Council of any individual purchase under this section with a contract amount greater than $125,000, and also whenever the aggregate of purchases under this section is greater than $200,000 dollars. (iii) The Purchasing Officer will obtain the City Manager's (or EOC Coordinator as the City Manager’s designee) approval prior to any purchase by a department head if the amount is $150,000 dollars or more.
(iv) The Purchasing Officer shall have the authority to approve all disaster related purchases under $150,000 thousand dollars.

Page 20 ends

(v) The Purchasing Officer will expedite the verification of funds available and complete the preparation of the purchase order.

Section 2 - Procurement Procedures in Exigent Circumstances.

Upon receipt of requisitions under Section 1 above, the Purchasing Officer shall prepare purchase orders for the emergency equipment, supplies, services or other items in accordance with the requirements of this section.
(a) Exempt Purchases. Purchases below $200,000 shall not be required to be formally bid. Purchases greater than $200,000 may be made following the procedures specified in this section. The signature(s) of the City Manager, Purchasing Officer and/or Department Head are still required as provided in Section 1.
(b) Justification of “Sole Source” or “No-bid” Contracts. Where exigent circumstances require immediate procurement from the nearest available source:
(i) the Procurement Officer shall complete a Sole Source Justification Form; (ii) procurement should be limited to that portion of the work that must be performed immediately, allowing subsequent procurement by competitive proposals of the remainder of the work;
(iii) “Sole source” or “no-bid” acquisitions shall be necessary for one of the following reasons:
placement of emergency protective measures; procurement of a scarce commodities, goods, or services; or acquisition or rental of emergency equipment , emergency consulting services, emergency road clearance or other emergency requirements. (c) Provision for Alternate Bid Solicitation Procedures. The City's normal requirements for sealed bids shall not apply to acquisitions under Section 1. However, the Procurement Officer shall conduct telephonic or other electronic bid solicitation from potential vendors or suppliers, in lieu of written and/or sealed bids, in an effort to obtain multiple competitive proposals when and if time allows in light of the exigent circumstances.
(d) Locations of Postings for Requests for Proposals or Solicitation of Bids. The Procurement Officer may waive normal requirements for public posting of requests for proposals or solicitation of bids.

Notices soliciting bids or requests for proposals shall be posted at the Emergency Operations Center or Alternate Emergency Operations Center, if the Primary Emergency Operations Center is not being used.
(e) Length of Time for Posting Requests for Proposals or Solicitation of Bids. The Procurement Officer may shorten the normal bid period to expedite the award of contracts for emergency equipment, goods, or services. The Procurement Officer should seek to assure that the shortened bid period allows multiple suppliers to submit bids.
(f) Number of Bids Required. Solicited bids that are non-responsive shall count towards the minimum numbers of bids required when there is a declared emergency or disaster in the City.

Page 21 ends

Section 3 - Notification and Ratification
(a) Posting of Contract Awards. Under this section, all contracts awarded that exceed $750,000 shall be presented to the City Council for ratification and shall be publicly posted within sixty (60) days of the award.
(b) Authority to Cancel Emergency Procurements. As a provision of this policy, the City has the absolute authority to rescind a contract for non-performance within 24 hours when a contractor or vendor, once awarded a contract, is unable to perform under the terms of the contract and the resulting delay or non-performance presents an immediate threat to life, safety or improved property. (c) Notification Requirement for Emergency Purchases. For any purchase in excess of $150,000, the City Manager shall report all such purchases to the City Council within thirty (30) days. (d) Requirement for Separate Invoicing. All purchases or rentals made during proclaimed emergency or disaster conditions shall require separate invoicing from routine (non-disaster related) purchases.

All invoices shall state the goods, services or equipment provided and shall specify where the goods or services were delivered and be coded to the designated disaster project code. (e) Auditing of Invoices for Debris Clearance Prior to Payment. All invoices for debris clearance and removal shall be audited by the City prior to payment to the vendor. Vendors shall be notified of this requirement prior to the awarding 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.
(f) Limitations of Disaster Purchasing Policy. For the purposes of this section, an emergency or disaster shall be deemed to exist when a condition exists that presents an immediate threat to health, safety or improved property and a local emergency or disaster has been proclaimed. Any purchases that do not meet the standard of being necessary for responding to an immediate threat to health, safety or improved property shall follow the City's regular purchasing provisions.

EXHIBIT B

CITY OF GROVER BEACH

CREDIT CARD HOLDER USE AGREEMENT
22 Employee: Department:

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

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

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

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

4. Lost or Stolen Cards. The issuing bank and the Administrative Services Department will be notified immediately of a lost or stolen card. Failure to do so could make the Cardholder responsible for any fraudulent use of the card.

5. Surrender Upon Request or Separation. The credit card will be immediately surrendered upon retirement, termination or upon request of the department head. Use of the credit card for any purpose after its surrender is prohibited.

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

7. Other Restrictions. .

Cardholder Signature Date
DISTRIBUTION: Original - Cardholder Personnel File Copies - Administrative Services Department, Department Head, Cardholder

RETURN OF CITY CREDIT CARD UPON SEPARATION FROM CITY EMPLOYMENT I HEREBY SURRENDER the credit card issued to me by the City of Grover Beach to the Human Resource Department. I declare that all outstanding charges on the credit card are for official City business and will be paid through established procedures.

Cardholder Date Department Head Date
Standard Requirements for Public Works Contracts
Contrac�ng for public works by local agencies are generally governed by the Local Agency Public Construc�on Act (California Public Contract Code §§ 20100, et. seq).

The following provides general guidance on compliance with the Public Contract Code and shall govern all no�ces, bids, bid documents, awards, agreements and contracts for public works in the City of Grover Beach. This is not a comprehensive lis�ng of all Public Contract Code Requirements and it is recommended that staff become aware of all requirements prior to preparing bid documents for public works. • Compe��ve bidding is required for all public works projects over $5,000. • California Labor Code sec�on 1720 defines a public work as: “Construc�on, altera�on, demoli�on, installa�on, or repair work done under contract and paid for in whole or in part out of public funds . . . For purposes of this paragraph, “construc�on” includes work performed during the design and preconstruc�on phases of construc�on, including, but not limited to, inspec�on and land surveying work. For purposes of this paragraph, “installa�on” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.” • Projects cannot be split into smaller projects to avoid compe��ve bidding. • A no�ce to bidders shall be published in a paper of general circula�on and in any on-line plan room that requests bid informa�on. The no�ce shall state the �me, date and place where bids will be publicly opened.
• No�ces must be published twice the with first no�ce no less than 10 calendar days prior to the bid opening and the second no�ce no less than 5 calendar days prior to the bid opening. • Project documents shall be prepared for all public works. Project documents shall generally consist of General and Special Provisions, Project Specifica�ons and drawings depic�ng the nature of the work to be constructed. All project documents must be made available for review by poten�al bidders. Project documents shall be posted on the City’s website prior to the no�ce invi�ng bids.
• If bid alternates or addi�ves are included in addi�on to the project base bid, the no�ce shall indicate the method of selec�ng the lowest responsive and responsible bid without ambiguity. • Project bids may require prequalifica�on when in the opinion of the City Engineer the work involves special construc�on methods or requires sufficient equipment, manpower and experience such that some contractors may be unable to successfully complete the work with minimal public inconvenience. The process involves submi�ng ques�onnaires and forms that are prepared by the Department of Industrial Rela�ons and available on their website. • A prequalifica�on program must be adopted by Resolu�on prior to the no�ce invi�ng bids. • Project bid documents shall:
o Iden�fy the required contractor’s license classifica�on. o State that the contractor and all subcontractors will be required to obtain a City of Grover Beach Business Tax Cer�ficate and Encroachment Permit at the �me the Contract is awarded.
o State that the contract is subject to state contract nondiscrimina�on and compliance requirements pursuant to Government Code, Sec�on 12990. o State that contractors shall list in their bid all subcontractors who will perform work in excess of one-half of one percent of the total bid or $10,000, whichever is greater. o Require the contractor to submit and Equal Employment Opportunity Cer�fica�on, a NonCollusion Affidavit, Debarment and Suspension Cer�fica�on and Project References (Example forms provided in Appendix A)
• Final Bid Documents and Contract forms shall be reviewed and approved by the City Atorney unless such forms are approved in advance as City Standard forms by the City Atorney and remain unaltered.
• All bids must be submited by the date, �me and to the place indicated in the no�ce. Bids may be accepted electronically if indicated in the no�ce.
• Staff shall determine whether the bidders are responsive to the bid no�ce and requirements and whether the bidder is responsible.
• The contract shall be awarded to the lowest responsive and responsible bidder. • Bids shall be publicly read aloud, and the apparent low bidder shall be announced at the �me of bid opening.
• Minor bid irregulari�es may be waived if in the opinion of the City Engineer they do not affect the bid price or provide an unfair bidding advantage.
• All bids shall include a bid bond in the amount of 10% of the bid price. • Generally no bids shall be withdrawn for a period of 60 working days following the date of the bid opening. Bids may be withdrawn if requested in wri�ng by the contractor within 5 business days of the bid opening if in the opinion of the City Engineer the contractor made a substan�al bid error that substan�ally affects the total bid price. The error cannot be careless or a lack of judgment or experience and shall generally be clerical or similar.
• The City may reject all bids and is not required to proceed with the project but if the project is to be completed the City must follow the procedures above for publishing a new no�ce invi�ng bids. • The awarded contractor shall furnish a performance bond in the amount of 100% of the contract price and a payment bond in the amount of 50% of the contract price. • All bidders must submit a Non-collusion Affidavit signed by an officer or owner of the company (PCC § 7107)
• Contractor and subcontractor employees must be paid the prevailing wage as set forth by the Department of Industrial Rela�ons. The contract must state that failure to pay prevailing wages will result in enforcement in accordance with the California Labor Code. • The contractor shall be registered with the Department of Industrial Rela�ons and shall show proof of such registra�on as required by the California Code of Regula�ons. • The contractor shall be required to comply with appren�ceship requirements, pos�ng of prevailing wages and cer�fied payroll requirements of the Labor Code (refer to Sec�ons 1725.5, 1773.2, 1775, 1777.5, 1776 and 1813 of the California Labor Code and Title 8, California Code of Regula�ons Sec�on 230.1)
• Contracts may include sole source specifica�ons (specific brand names or model numbers) only if the item is only available from a single source or if needed to match other products or provide consistency for replacement and maintenance.
• The City may withhold reten�on in the amount of 5% of each payment es�mate in accordance with Public Contract Code Sec�on 9203(a).
• The release of reten�on shall be made pursuant to Public Contract Code Sec�on 7107. Within 60- calendar days a�er the date of comple�on of the work of improvements and the establishment of the Contract acceptance date in accordance with the Special Provisions 5.20, “Comple�on of the Work of Improvements”, the reten�on withheld by the City shall be released. In the event of a dispute between the City and the Contractor, the City may withhold from the release of reten�on an amount not to exceed one hundred fi�y percent (150%) of the disputed amount. This code provision will be administered as either (1) all 150% may be withheld from the Final Payment, (2) all 150% may be withheld from the reten�on, or (3) a combina�on of withhold from both the Final Payment and reten�on in an amount not to exceed 150%.
• The contractor shall be required to provide insurance in the amount and form as specified in the contract documents and approved by the City Atorney. An example of the insurance requirements is provided in Appendix B. The amounts and form may be reviewed and revised at any �me by the City Atorney.
• Following comple�on of the public work, the Council shall accept and approve the project as complete and file a No�ce of Comple�on.

Appendix A: Sample Forms
(Because some colored inks will not reproduce in copy machines, please use black ink to complete this proposal.)

PROPOSAL
To The City of Grover Beach
for
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The Work shall be constructed in accordance with the State of California Department of Transportation Standard Specifications dated 2010, except as modified by these Special Provisions, the Construction Drawings, the City of Grover Beach Standard Drawings and the Contract annexed hereto. In the absence of specific standards referenced in the foregoing, water system work and materials shall comply with AWWA Standards. Labor Surcharges and the Equipment Rental Rates and General Prevailing Wage Rates of the STATE OF CALIFORNIA, Business and Transportation Agency, Department of Transportation shall apply to all work except as modified herein.

This Proposal is submitted with respect to the changes to the Contract included in addenda number/s _________________________ (Fill in addenda numbers if addenda have been received).

BID INFORMATION
Bids are submitted for the entire Work. The amount of the bid for comparison purposes will be the total of all items. The total of unit basis items will be determined by extension of the item price bid on the basis of the estimated quantity set forth for the item.

The Bidder shall set forth for each item of Work, in clearly legible figures, an item price and a total for the item in the respective spaces provided for this purpose. In the case of unit basis items, the amount set forth under the "Item Total" column shall be the extension of the item price bid on the basis of the estimated item quantity for the item.

In case of discrepancy between the item price and the item total set forth for the item, the item price shall prevail provided, however, if the amount set forth as an item price is ambiguous, unintelligible or uncertain for any cause, or is omitted, or in the case of unit basis items, is the same amount as the entry in the "Item Total" column, then the amount set forth in the "Item Total" column for the item shall prevail in accordance with the following:

1. As to lump sum items, the amount set forth in the "Item Total" column shall be the item price.

2. As to unit basis items, the amount set forth in the "Item Total" column shall be divided by the estimated quantity for the item and the price thus obtained shall be the item price.

The City reserves the right to reject any and all bids.

The BASIS OF AWARD of the Contract will be based on the lowest, responsive, responsible “BASE” Bid. The city, at its sole discretion, may or may not elect to award the Base Bid and Additive Bid.

If this proposal shall be accepted and the undersigned shall fail to enter into the Contract, to provide the certificate(s) of insurance and endorsement(s) as required by these Special Provisions, and to give the specified Payment Bond and Performance Bond with a surety that is satisfactory to the City, within ten (10) days, not including Saturdays, Sundays and legal holidays, after the Bidder has received notice from the City that the Contract has been awarded, the City may, at its option, determine that the Bidder has abandoned the Contract, and thereupon this proposal and the acceptance thereof shall be null and void and the forfeiture of such security accompanying this proposal shall operate and the same shall be the property of the City.

The undersigned, as Bidder, declares under penalty of perjury that the only persons or parties interested in this proposal as principals are those named herein; that this proposal is made without collusion with any other person, firm, or corporation; that he has carefully examined the location of the proposed Work, the annexed proposed form of contract and the plans therein referred to; and he proposes, and agrees, if this proposal is accepted, that he will contract with the City in the form of the copy of the Contract annexed hereto, to provide all necessary machinery, tools, apparatus and other means of construction, and to do all the Work and furnish all the materials specified in the Contract, in the manner and time therein prescribed, and according to the requirements of the Engineer as therein set forth, and that he will take in full payment therefore the following item prices, to wit:

BID QUANTITIES
for the
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT

BASE BID
ITEM
NO.

ITEM DESCRIPTION UNIT APPROX.

QTY

UNIT PRICE TOTAL ITEM
PRICE
1 Mobilization LS 1
2 Construction Surveying LS 1
3 Survey Monument
Preservation
LS 1
4 Water Pollution Control
Program
LS 1
5 Traffic Control Systems LS 1
6 Portable Changeable
Message Sign
EA 2
7 Public Notifications LS 1
8 Clearing and Grubbing LS 1
9 Repair Landscape and
Irrigation
LS 1
10 F Roadway Excavation CY 7,250
11 Hot Mix Asphalt TON 6,060
12 Class 2 Aggregate Base CY 4,500
13 Hot Mix Asphalt (Driveways
and Misc. Areas)
SF 3,850
14 Hot Mix Asphalt Dike (Type
A)
LF 1,150
15 Hot Mix Asphalt Dike (Type
E)
LF 300
16 Concrete Curb Ramp SF 13,390
17 Concrete Sidewalk SF 660
18 Concrete Curb & Gutter LF 185
19 Concrete Curb & Spandrel SF 190
20 Concrete Curb LF 420
21 Concrete Cross Gutter SF 1,150
22 Concrete Driveway SF 820

BASE BID
ITEM
NO.

ITEM DESCRIPTION UNIT APPROX.

QTY

UNIT PRICE TOTAL ITEM
PRICE
23 Decomposed Granite Path SF 2,870
24 Replace 1-Inch Water
Service
EA 11
25 Adjust Sewer Manhole to
Finish Surface
EA 9
26 BLANK n/a n/a
27 Adjust Sewer Cleanout to
Finish Surface
EA 10
28 Adjust Water Valve Cover to
Finish Surface
EA 64
29 Adjust Utility Boxes to
Finish Surface
EA 4
30 Relocate Fire Hydrant EA 1
31 Reset Mailbox EA 2
32 Reset One-Post Sign EA 5
33 Replace Traffic Signal
Detector Loops
EA 4
34 Thermoplastic Pavement
Striping (Detail 21)
LF 300
35 Thermoplastic Pavement
Markings (Limit lines,
crosswalks, and word
markings)
SF 1,170
36 Blue Retroreflective
Pavement Markers
EA 13
37 Paint Curb Red LF 320
Notes:

1. (F) denotes Final Pay per Caltrans Standard Section 9-1.02C.

2. Lump Sum items shall provide Schedule of Values per Caltrans Standard Section 9-1.16B unless directed otherwise by the Engineer.

TOTAL BASE BID AMOUNT:

TOTAL BASE BID: $
(In Figures)
(In Words)
Bid amount of each of the above bid items must be filled in and completed in ink. In the event of a conflict between numbers given in figures and in words, the words shall control. In the event of a conflict between a unit price and the extended price, the unit price correctly multiplied by the estimated quantity shall be used in calculating the total bid.

ADDITIVE BID NO. 1 – Concrete
ITEM
NO.

ITEM DESCRIPTION UNIT APPROX.

QTY

UNIT PRICE TOTAL ITEM
PRICE
1 Concrete Sidewalk SF 420
2 Concrete Curb and Gutter LF 75
3 Concrete Driveway SF 300
Notes:

1. (F) denotes Final Pay per Caltrans Standard Section 9-1.02C.

2. Lump Sum items shall provide Schedule of Values per Caltrans Standard Section 9-1.16B unless directed otherwise by the Engineer.

TOTAL ADDITIVE BID NO. 1 AMOUNT:
(In Figures)
(In Words)
Bid amount of each of the above bid items must be filled in and completed in ink. In the event of a conflict between numbers given in figures and in words, the words shall control. In the event of a conflict between a unit price and the extended price, the unit price correctly multiplied by the estimated quantity shall be used in calculating the total bid.

TOTAL ADDITIVE BID NO. 1: $
EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION – BIDDER
The Bidder ______________________________________________________________________, hereby certifies that he ____________(has, has not) _______, participated in a previous contract or subcontract subject to the equal opportunity clauses, as required by Executive Orders 10925, 11114, or 11246, and that, where required, he has filed with the Joint Reporting Committee, the Director of the Office of Federal Contract Compliance, a Federal Government contracting or administering agency, or the former President's Committee on Equal Employment Opportunity, all reports due under the applicable filling requirements.

Note: The above certification is required by the Equal Employment Opportunity Regulations of the Secretary of Labor (41 CFR 60-1.7(b) (1)), and must be submitted by bidders and proposed subcontractors only in connection with contracts and subcontracts which are subject to the equal opportunity clause. Contracts and subcontracts which are exempt from the equal opportunity clause are set forth in 41 CFR 60-1.5. (Generally only contracts or subcontracts of $10,000 or under are exempt.)
Currently, Standard Form 100 (EEO-1) is the only report required by the Executive Orders or their implementing regulations.

Proposed contractors and subcontractors who have participated in a previous contract or subcontract subject to the Executive Orders and have not filed the required reports should note that 41 CFR 60-1.7(b) (1) prevents the award of contracts and subcontracts unless such contractor submits a report covering the delinquent period or such other period specified by the Federal Highway Administration or by the Director, Office of Federal Contract Compliance, U.S. Department of Labor.

EQUAL EMPLOYMENT OPPORTUNITY CERTIFICATION – SUBCONTRACTOR Proposed Subcontractor ____________________________________________________________, hereby certifies that he ____________(has, has not) _______, participated in a previous contract or subcontract subject to the equal opportunity clauses, as required by Executive Orders 10925, 11114, or 11246, and that, where required, he has filed with the Joint Reporting Committee, the Director of the Office of Federal Contract Compliance, a Federal Government contracting or administering agency, or the former President's Committee on Equal Employment Opportunity, all reports due under the applicable filling requirements.

Noncollusion Affidavit
(Title 23 United States Code Section 112 and
Public Contract Code Section 7106)
To the CITY of Grover Beach, DEPARTMENT OF PUBLIC WORKS.

In conformance with Title 23 United States Code Section 112 and Public Contract Code Section 7106 the Bidder declares that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the Bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the Bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the Bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the Bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

Note: The above Noncollusion Affidavit is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Noncollusion Affidavit. Bidders are cautioned that making a false certification may subject the certifier to criminal prosecution.

DEBARMENT AND SUSPENSION CERTIFICATION
TITLE 49, CODE OF FEDERAL REGULATIONS, PART 29
The Bidder, under penalty of perjury, certifies that, except as noted below, he/she or any other person associated therewith in the capacity of owner, partner, director, officer, manager:
• is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any Federal agency;
• has not been suspended, debarred, voluntarily excluded or determined ineligible by any Federal agency within the past 3 years;
• does not have a proposed debarment pending; and
• has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past 3 years.

If there are any exceptions to this certification, insert the exceptions in the following space.

Exceptions will not necessarily result in denial of award, but will be considered in determining Bidder responsibility. For any exception noted above, indicate below to whom it applies, initiating agency, and dates of action.

Notes: Providing false information may result in criminal prosecution or administrative sanctions. The above certification is part of the Proposal. Signing this Proposal on the signature portion thereof shall also constitute signature of this Certification.

The Bidder shall list the name and address of each subcontractor required to be listed by the provisions in "Subcontracting and Superintendence," of the Special Provisions, to whom the Bidder proposes to subcontract portions of the Work.

LIST OF SUBCONTRACTORS

BASE BID
In accordance with the provisions of Section 4100 et. seq. of the California Public Contract Code, the Bidder shall, in its bid, list the name, the location of the place of business, the California contractor license number, and the public works contractor registration number issued pursuant to Section 1725.5 of the California Labor Code, of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement, or a subcontractor licensed by the State of California who, under subcontract to the prime contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime contractor's total bid or, in the case of bids or offers for the construction of streets or highways, including bridges, in excess of one-half of 1 percent of the prime contractor's total bid or ten thousand dollars ($10,000), whichever is greater.

Name and Address License No. and
Classification
CA Dept. of
Industrial
Relations (DIR)
No.

Work to be
Subcontracted Bid
Item / Description
Subcontracted
$ Amount
Do not list alternative subcontractors for the same work.

The Bidder shall complete, under penalty of perjury, the following questionnaire:

QUESTIONNAIRE
Has the Bidder, any officer of the Bidder or any employee of the Bidder who has a proprietary interest in the Bidder, ever been disqualified, removed or otherwise prevented from bidding on, or completing a federal, state or local government project because of a violation of law or a safety regulation? YES  NO 
If the answer is yes, explain the circumstances in the following space.

NOTE: This questionnaire constitutes a part of the Proposal and signature on the signature portion of this Proposal shall constitute signature of this questionnaire.

BID FORM
Accompanying this proposal is _____________________________, in an amount equal to at least (NOTICE: Insert the words "Cash ($____),”Cashier's Check, or Bidder's Bond," as the case may be). ten percent (10%) of the total of the base bid.

The names of all persons interested in the foregoing proposal as principals are as follows:

IMPORTANT NOTICE
If the Bidder or other interested person is a corporation, state legal name of corporation, also names of the President, Secretary, Treasurer and Manager, thereof; if a co-partnership, state true name of firm, also names of all individual co-partners composing firm; if Bidder or other interested person is an individual, state first and last names in full. _______________________________________________________________________________ _______________________________________________________________________________ _______________________________________________________________________________ Licensed in accordance with an act providing for the registration of contractors, said license being in good standing as of the date of this bid. License No: Class: , Expiration Date:
_____. The statement of good standing, license number, class and expiration date stated herein over my signature are made under penalty of perjury.

California Department of Industrial Relations (DIR), Registration No. ______________ NOTE: If Bidder is a corporation, the legal name of the corporation shall be set forth above together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if Bidder is a co-partnership, the true name of the firm shall be set forth above together with the signature of the partner or partners authorized to sign contracts on behalf of the co-partnership; and if Bidder is an individual, his signature shall be placed above. If signature is by an agent other than an officer of a corporation or a Sign
Here
Si t f Bidd
member of a partnership, a Power of Attorney must be on file with the City of Grover Beach prior to opening bids or submitted with the bid; otherwise, the bid will be disregarded as irregular and unauthorized.

Business Address:

Telephone Number: ( ) Email: @
Place of Business:

Place of Residence:

Dated: ______________________, 20______

BIDDER'S BOND
KNOW ALL MEN BY THESE PRESENTS, That we _______________________________ as PRINCIPAL, and ___________________________________________________, as SURETY, are held and firmly bound unto the City of Grover Beach, in the penal sum of TEN PERCENT (10%) of the TOTAL AMOUNT OF THE BID of the Principal above named, submitted by said Principal to the City, aforesaid, for the work described below, for the payment of which sum in lawful money of the United States, well and truly to be made to the City to which said bid was submitted, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents. In no case shall the liability of the surety hereunder exceed the sum of __________________________ DOLLARS ($___________).

THE CONDITION OF THIS OBLIGATION IS SUCH, That whereas the Principal has submitted the above mentioned bid to the City of Grover Beach, aforesaid, for certain construction specifically described as follows, for which bids are to be opened at the office of the City Clerk, City of Grover Beach, 154 South 8th Street, Grover Beach, CA, 93433, (805) 473-4520, at 2:00 p.m., on Thursday, March 18, 2021 for
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT NOW, THEREFORE, If the aforesaid Principal is awarded the Contract and, within the time and manner required under the specifications, after the prescribed forms are presented to him for signature, enters into a written contract, in the prescribed form, in accordance with the bid, and files two (2) bonds with the City, one to guarantee faithful performance and the other to guarantee payment for labor and materials, as required by law, then this obligation shall be null and void; otherwise, it shall be and remain in full force and virtue.

IN WITNESS WHEREOF, We have hereunto set our hands and seals on this _____ day of ________________, AD., 20 _____.
_________________________________ (SEAL)
__________________________________ (SEAL)
__________________________________ (SEAL)
Principal
__________________________________ (SEAL)
__________________________________ (SEAL)
__________________________________ (SEAL)
Surety
NOTE: Signatures of those executing for the surety must be properly acknowledged.

PROJECT REFERENCES
Agency/Customer Name & ContactIndividual
Telephone Number
Street Address, City, State, ZipCode
Is this similar to the project being bid?
Yes □ No □
Describe the services provided and how this project is similar to that which is being bid:

Date project completed:

Was this contract for a public
agency?
Yes □ No □
Agency/Customer Name & ContactIndividual
Telephone Number
Street Address, City, State, ZipCode
Is this similar to the project being bid?
Yes □ No □
Describe the services provided and how this project is similar to that which is being bid:

Date project completed:

Was this contract for a public
agency?
Yes □ No □

CONTRACT FORMS
CONTRACT FORMS shall include the following:
 GUARANTY to the City of Grover Beach
 CONTRACT, including the completed CONTRACT QUANTITIES and Total Contract Amount  PERFORMANCE BOND (form provided by Contractor)
 PAYMENT BOND (form provided by Contractor)
 Insurance Certificate(s) and Endorsement(s) (form provided by Contractor) (This guaranty shall be executed by the Successful Bidder in accordance with the instructions in the Special Provisions. The Bidder may execute the guaranty on this page at the time of submitting his bid).

GUARANTY
To The City of Grover Beach
for
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT THE UNDERSIGNED guarantees the construction and installation of all work performed under this Contract.

SHOULD any of the material or equipment prove defective or should the Work as a whole prove defective, due to faulty workmanship, material furnished or methods of installation, or should the Work or any part thereof fail to operate properly as originally intended and in accordance with the plans and specifications, due to any of the above causes, all within twelve (12) months after the date on which this Contract is accepted by the City of Grover Beach, the undersigned agrees to reimburse the City of Grover Beach, upon demand, for its expenses incurred in restoring said Work to the condition contemplated in said project, including the cost of removing and replacing any other Work necessary to make such replacement or repairs, or, upon demand by the City of Grover Beach, to replace any such material and to repair said Work completely without cost to the City of Grover Beach so that said Work will function successfully as originally contemplated.

THE CITY OF GROVER BEACH shall have the unqualified option to make any needed replacements or repairs itself or to have such replacements or repairs done by the undersigned. In the event the City elects to have said Work performed by the undersigned, the undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within a reasonable time after the receipt of demand from the City. If the undersigned shall fail or refuse to comply with its obligations under this guaranty, the City of Grover Beach shall be entitled to all costs and expenses, including attorneys' fees, reasonably incurred by reason of said failure or refusal.

Date: ________________________
_______________________________________

CONTRACTOR
The City of Grover Beach

STATE OF CALIFORNIA
- - - - - - - - - - - - - - - - - -

CONTRACT
for
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT THIS AGREEMENT, made and concluded, in triplicate, this 15th day of April 2021, between the CITY OF GROVER BEACH, party of the first part, and, JJ FISHER CONSTRUCTION, INC., Contractor, party of the second part.

ARTICLE I. -- WITNESSETH, That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the said party of the first part, the said party of the second part agrees with the said party of the first part, at his own proper cost and expense, to do all the work and furnish all the materials, except such as are mentioned in the specifications to be furnished by said party of the first part, to construct this project in accordance with the State of California Department of Transportation Standard Specifications dated 2010, except as modified by these Special Provisions, the Construction Drawings, the City of Grover Beach Standard Drawings and the Contract annexed hereto. In the absence of specific standards referenced in the foregoing, water system work and materials shall comply with AWWA Standards. Labor Surcharges and the Equipment Rental Rates and General Prevailing Wage Rates of the STATE OF CALIFORNIA, Business and Transportation Agency, Department of Transportation shall apply to all work except as modified herein. All other provisions of the Notice to Bidders, Special Provisions Proposal and Contract for the Measure K-14 Street Rehabilitation and Repair Project, CIP 2295-10, Seabright Avenue, from South 13th Street to South Oak Park Boulevard, Trouville Avenue, from South 10th Street to South Oak Park Boulevard, Manhattan Avenue, from South 13th Street to South Oak Park Boulevard, South 11th Street, from West Grand Avenue to Long Branch Avenue, South 10th Street, from Rockaway Avenue to Ramona Avenue, Malibu Court, Jalama Court, Rincon Court, and Stinson Court (herein also referred to as “the project”), are hereby specially and incorporated by reference.

ARTICLE II. -- The said party of the first part hereby promises and agrees with the said Contractor to employ, and does hereby employ, the said Contractor to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices, hereinafter set forth and hereby contracts to pay the same at the time, in the manner and upon the Conditions herein set forth; and the said parties for themselves, their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained.

ARTICLE III. -- The statement of prevailing wages as determined by the Director of Industrial Relations of the State of California pursuant to California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1 and which is filed at the principal office of the said party of the first part in accordance with the requirements of Section 1773.2 of said Code is hereby specifically referred to and by this reference is made a part of this Contract. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith.

ARTICLE IV. -- By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 1725.5 of the Labor Code requiring every contractor and subcontractor, awarded work on this project, be registered with the Department of Industrial Relations and as such is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

ARTICLE V. -- By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workmen's compensation or to undertake self insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work of this Contract.

ARTICLE VI. -- And the said Contractor agrees to receive and accept the following prices as full compensation for furnishing all materials and for doing all the work contemplated and embraced in this Contract; also for all loss or damage, arising out of the nature of the work aforesaid, or from the action of the elements, or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the Work until its acceptance by the said party of the first part and for all risks of every description connected with the Work, also for all expenses incurred by or in consequence of the suspension or discontinuance of Work and for well and faithfully completing the Work, and the whole thereof, in the manner and according to the plans and specifications, and the requirements of the Engineer under them, to wit:

CONTRACT QUANTITIES
for the
MEASURE K-14 STREET REHABILITATION AND REPAIR PROJECT, CIP 2295-10 • SEABRIGHT AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • TROUVILLE AVENUE, SOUTH 10TH STREET TO SOUTH OAK PARK BOULEVARD • MANHATTAN AVENUE, SOUTH 13TH STREET TO SOUTH OAK PARK BOULEVARD • SOUTH 11TH STREET, WEST GRAND AVENUE TO LONG BRANCH AVENUE • SOUTH 10TH STREET, ROCKAWAY AVENUE TO RAMONA AVENUE
• MALIBU COURT, JALAMA COURT, RINCON COURT, STINSON COURT ITEM
NO. ITEM DESCRIPTION UNIT APPROX. QTY UNIT PRICE TOTAL ITEM PRICE 1 Mobilization LS 1 $ 46,743.00 $ 46,743.00
2 Construction Surveying LS 1 $ 68,775.00 $ 68,775.00
3 Survey Monument
Preservation LS 1 $ 12,075.00 $ 12,075.00
4 Water Pollution Control
Program LS 1 $ 20,988.00 $ 20,988.00
5 Traffic Control Systems LS 1 $ 31,363.00 $ 31,363.00
6 Portable Changeable
Message Sign EA 2 $ 1,974.00 $ 3,948.00
7 Public Notifications LS 1 $ 6,400.00 $ 6,400.00
8 Clearing and Grubbing LS 1 $ 13,402.00 $ 13,402.00
9 Repair Landscape and
Irrigation LS 1 $ 2,224.00 $ 2,224.00
10 F Roadway Excavation CY 7,250 $ 28.56 $ 207,060.00
11 Hot Mix Asphalt TON 6,060 $ 109.75 $ 665,085.00
12 Class 2 Aggregate Base CY 4,500 $ 59.20 $ 266,400.00 13 Hot Mix Asphalt (Driveways
and Misc. Areas) SF 3,850 $ 10.00 $ 38,500.00
14 Hot Mix Asphalt Dike (Type A) LF 1,150 $ 9.50 $ 10,925.00 15 Hot Mix Asphalt Dike (Type E) LF 300 $ 9.50 $ 2,850.00 16 Concrete Curb Ramp SF 13,390 $ 15.75 $ 210,892.50
17 Concrete Sidewalk SF 660 $ 7.00 $ 4,620.00
18 Concrete Curb & Gutter LF 185 $ 42.00 $ 7,770.00
19 Concrete Curb & Spandrel SF 190 $ 21.00 $ 3,990.00
20 Concrete Curb LF 420 $ 43.00 $ 18,060.00
21 Concrete Cross Gutter SF 1,150 $ 22.00 $ 25,300.00
ITEM
NO. ITEM DESCRIPTION UNIT APPROX. QTY UNIT PRICE TOTAL ITEM PRICE 22 Concrete Driveway SF 820 $ 16.00 $ 13,120.00
23 Decomposed Granite Path SF 2,870 $ 10.42 $ 29,905.40 24 Replace 1-Inch Water Service EA 11 $ 2,121.34 $ 23,334.74 25 Adjust Sewer Manhole to
Finish Surface EA 9 $ 897.00 $ 8,073.00
26 BLANK n/a n/a $ 0.00 $ -
27 Adjust Sewer Cleanout to
Finish Surface EA 10 $ 600.00 $ 6,000.00
28 Adjust Water Valve Cover to
Finish Surface EA 64 $ 450.00 $ 28,800.00
29 Adjust Utility Boxes to Finish
Surface EA 4 $ 1,200.00 $ 4,800.00
30 Relocate Fire Hydrant EA 1 $ 3,435.00 $ 3,435.00
31 Reset Mailbox EA 2 $ 575.00 $ 1,150.00
32 Reset One-Post Sign EA 5 $ 350.00 $ 1,750.00
33 Replace Traffic Signal
Detector Loops EA 4 $ 1,240.00 $ 4,960.00
34 Thermoplastic Pavement
Striping (Detail 21) LF 300 $ 5.25 $ 1,575.00
35 Thermoplastic Pavement
Markings (Limit lines,
crosswalks, and word
markings)
SF 1,170 $ 5.51 $ 6,446.70
36 Blue Retroreflective Pavement
Markers EA 13 $ 10.50 $ 136.50
37 Paint Curb Red LF 320 $ 0.53 $ 169.60
Notes:

1. (F) denotes Final Pay per Caltrans Standard Section 9-1.02C.

2. Lump Sum items shall provide Schedule of Values per Caltrans Standard Section 9-1.16B unless directed otherwise by the Engineer.

TOTAL CONTRACT AMOUNT:
$1,801,026.44
(In Figures)
One Million Eight Hundred One Thousand Twenty-Six Dollars & Forty-Four Cents (In Words)
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands the year and date first above written.

The City of Grover Beach

STATE OF CALIFORNIA
______________________________________
_
Jeff Lee, Mayor Date
ATTEST:
________________________________________
Wendi Sims, City Clerk Date
APPROVED AS TO FORM:
________________________________________
David Hale, City Attorney Date
JJ FISHER CONSTRUCTION, INC.:
_______________________________________
Jayson J. Fisher, CEO Date
Licensed in accordance with an act providing for
the registration of
contractors, License No. 939644
California Department of Industrial Relations
(DIR),
Registration No. 1000003980
_______________________________________
Mark Sczbecki, CFO Date
Appendix B: Insurance Forms

5.08 INDEMNIFICATION AND INSURANCE

5.08-A INDEMNIFICATION. Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless the City of Grover Beach, and all officers, officials, employees, authorized agents, and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Contract, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees, authorized agents, and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Contract.

Contractor obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee; however, without affecting the rights of City under any provision of this Contract, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.

The duty of the Contractor to indemnify and save harmless includes the duties to defend as set forth in Section 2778 of the CIVIL CODE.

5.08-B LIABILITY INSURANCE. The provisions of said Section 7-1.05 “Indemnification,” of the Standard Specifications regarding the retention of funds to cover claims or suits for damages shall not apply,however:

Prior to the beginning of and throughout the duration of the Work, Contractor and its subcontractors shall maintain insurance in conformance with the requirements set forth below.

Contractor will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, Contractor agrees to amend, supplement or endorse the existing coverage to do so.

Contractor acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to Contractor or its subcontractors in excess of the limits and coverage identified in this Contract and which is applicable to a given loss, claim or demand, will be equally available to City.

Contractor shall provide the following types and amounts of insurance:

Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form satisfactory to City.

General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, authorized agents, employees, and volunteers.

Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent Contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, authorized agents, and employees, shall be included as insureds under the policy.

Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. Contractor shall procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, his agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. City and its officers, officials, employees, and authorized agents shall continue as additional insureds under such policies.

Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self- insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.

City’s rights of enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s risk manager.

Waiver of subrogation. All insurance coverage maintained or procured pursuant to this Contract shall be endorsed to waive subrogation against City, its elected or appointed officers, authorized agents, officials, employees, and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

Enforcement of Contract provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, authorized agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. Contractor agrees to ensure that its sub-consultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.

City’s right to revise requirements. The City reserves the right at any time during the term of the Contract to change the amounts and types of insurance required by giving the Contractor a ninety (90) day advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by City.

City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved byCity.

Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

Grover Beach City CouncilJuly 24, 2023

Grover Beach City Council
July 24, 2023