Ontario City Council
June 23, 2026

PUBLIC FACILITIES
Anthony Munoz Community Center Gymnasium $ 10,000,000
Audio/Video Equipment Upgrades for City Conference Rooms 90,000 Capital City - East Plaza 8,591,102
Capital City - Temporary Parking Lot Construction 10,000,000 Citywide Camera Refresh and Expansion 300,000
Civic Center Expansion - City Services Building 8,000,000 Civic Center Expansion - Fire Admin Building at Fire Station No. 3 6,875,000 D-Block Parking Structure 5,000,000
Municipal Services Center Relocation 2,000,000
Ovitt Family Community Library – Various Door Renovations 500,000 Police Department Main Station Office Space Upgrades 500,000 Whispering Lakes Golf Course Renovation 10,000,000
PUBLIC FACILITIES TOTAL $ 61,856,102
1012
54 FY 2026-27 Proposed Capital Improvement Program by Category (cont.) SEWER
Bon View Avenue Sewer Main Improvements $ 200,000
Western Ontario Ranch Trunk Sewer 2,100,000
Interim Western Ontario Ranch Trunk Sewer Improvements 2,863,060 SEWER TOTAL $ 5,163,060

STORM DRAIN
Campus Avenue Storm Drain $ 550,000
Fourth Street Storm Drain 1,000,000
San Antonio Avenue Storm Drain ($26.9M Reimbursement) 4,000,000 Sultana Avenue/J Street Storm Drain and Street Improvements 1,000,000 Turner Avenue Storm Drain and Street Improvements 300,000 STORM DRAIN TOTAL $ 6,850,000
1013
FY 2026-27 Proposed Capital Improvement Program by Category (cont.) 55 STREETS
Allyn Avenue Pavement Rehabilitation $ 1,000,000
Euclid Avenue Pavement Rehabilitation 700,000
Fourth Street Pavement Rehabilitation (Various Locations) 1,300,000 FY 2026-27 ADA Concrete Ramp Construction 175,000
FY 2026-27 Alley Rehabilitation Program 735,000
FY 2026-27 Annual Curb and Gutter, Sidewalk and Ramp Improvements Project 500,000 FY 2026-27 Annual Maintenance Slurry Seal, Cape Seal and Pavement Management Rehabilitation Project 2,192,000
Grove Avenue Pavement Rehabilitation (Various Locations) 950,000 Laurel Avenue and D Street Improvements 300,000
Merrill Avenue Pavement Rehabilitation (Archibald to Celebration) 1,050,000 Milliken Avenue (West Half) Pavement Rehabilitation (SR-60 to Riverside) 300,000 Ontario Sports Empire – Offsite Street Improvements 8,000,000 Ontario Sports Empire – Onsite Street Improvements 2,500,000 Ontario Sports Empire - Vineyard Street 10,782,678
Pedestrian Intersection Improvements 800,000
Riverside Drive Pavement Rehabilitation (Various Locations) 600,000 Sixth Street Pavement Rehabilitation (Mountain to Euclid) 1,500,000 State Route 60 and Euclid Avenue Interchange Improvements 1,649,816 Vineyard Avenue Pavement Rehabilitation (Raymond Kay Way to 60 Freeway) 500,000 STREETS TOTAL $ 35,534,494
1014
FY 2026-27 Proposed Capital Improvement Program by Category (cont.) 56 TRAFFIC
Annual Traffic Signal Improvements - San Antonio Avenue and State Street $ 300,000 FY 2026-27 Citywide Striping Improvements 100,000
FY 2026-27 Signal Safety Improvements 300,000
FY 2026-27 Street Light Improvements 500,000
Traffic Signal Installation - Euclid Avenue and Phillips Street 55,000 Traffic Signal Installation - Walker Avenue and Riverside Drive 55,000 Traffic Signal Modification - Vineyard Avenue and Mission Boulevard 70,000 Traffic Signal Modification at Fourth Street and Turner Avenue 250,000 TRAFFIC TOTAL $ 1,630,000
WATER
1348' Pressure Zone Transmission Main Improvements $ 1,000,000 13th Street Reservoirs Structural Retrofits 200,000
Edison Avenue and Bon View Avenue Water Main Improvement 200,000 Euclid Recycled Water Improvements Phase 3 (WRDA) 50,000 Onsite Chlorine Generators 2,500,000
Ontario Sports Empire – Riverside Drive – Recycled Water 1,500,000 Ontario Sports Empire – Vineyard Avenue and Hellman Avenue – Potable Water 3,345,000 Well 36 Wellhead Treatment Facility 700,000
Well 45 Wellhead Treatment Facility 1,000,000
Well 50 Wellhead Treatment Facility 150,000
WATER TOTAL $ 10,645,000
1015
TOTAL FY 2026-27 PROPOSED CIP: $223,804,869
FY 2026-27 Proposed Capital Improvement Program by Category (cont.) 57 MISCELLANEOUS
Community Development Land Management System Replacement (Accela) $ 450,000 Downtown Euclid Avenue Corridor 2,700,000
OMUC Customer Information System (CIS) Upgrade 250,000
Ontario Sports Empire – ONT Field Restaurant 13,000,000 Public Art - City Services Building 200,000
Public Works' Work Order Management Upgrade 350,000
MISCELLANEOUS TOTAL $ 16,950,000
1016
Fund/Description Parks
Public
Facilities Sewer Storm Drain Streets Traffic Water Miscellaneous Total 2010 C.D.B.G $ - $ - $ - $ - $ 1,200,000 $ - $ - $ - $ 1,200,000 2210 Measure I - - - - 6,050,000 - - - 6,050,000
2220 Measure I Valley Major
Project - - - - 6,910,816 - - - 6,910,816
2520 Cable Access 1,224,500 - - - - - - - 1,224,500
2530 Gas Tax - - - - 342,000 - - - 342,000
2531 Road Maint & Rehab
Acct (SB 1) - - - 300,000 4,510,000 1,630,000 - - 6,440,000 2580 Public Art Fund - - - - - - - 200,000 200,000
2650 Park Impact/Quimby 50,000,000 - - - - - - - 50,000,000 4010 Capital Projects 33,951,713 60,966,102 - 6,550,000 11,000,000 - - 15,700,000 128,167,815 4413 Ontario Ranch Local
Adjacent Streets - - - - 4,787,510 - - - 4,787,510
4419 Ontario Ranch
Regional Streets - - - - 734,168 - - - 734,168
58 FY 2026-27 Proposed Capital Improvement Program by Fund & Category 1017
59 FY 2026-27 Proposed Capital Improvement Program by Fund & Category (cont.) Fund/Description Parks
Public
Facilities Sewer Storm Drain Streets Traffic Water Miscellaneous Total 5011 Water Capital - - - - - - 10,645,000 112,500 10,757,500 5111 Sewer Capital - - 5,163,060 - - - - 57,500 5,220,560 5210 Integrated Waste - - - - - - - 196,667 196,667
6021 Information
Technology Capital Projects - 390,000 - - - - - 566,667 956,667 6030 Facilities Maintenance - 500,000 - - - - - 116,666 616,666 Total$85,176,213 $ 61,856,102 $ 5,163,060 $ 6,850,000 $ 35,534,494 $ 1,630,000 $ 10,645,000 $ 16,950,000 $223,804,869 1018
60 FY 2026-27 Measure Q Funded Projects
Measure Q Sales Tax revenues are estimated at $64.3 million of which, $53.4 million will be used for the financing of Measure Q Capital Improvement Program (CIP) Projects.

Project
FY 2026-27
Budget Project
FY 2026-27
Budget
Anthony Munoz Community Center Gymnasium $ 10,000,000 Kimball Park Field and Lighting Upgrades $ 500,000 Campus Avenue Storm Drain 550,000 Ontario Sports Empire – ONT Field Restaurant 13,000,000 Capital City - East Plaza 8,591,102 Ontario Sports Empire - Offsite Street Improvements 8,000,000 Capital City - Temporary Parking Lot Construction 10,000,000 Ontario Sports Empire - Onsite Street Improvements 2,500,000 De Anza Park Improvements - Playground & Rubber
Surface 375,000 Ontario Sports Empire - Vineyard Parking Structure 31,431,713 De Anza Park Improvements - Skate Park 440,000 San Antonio Avenue Storm Drain ($26.9M Reimbursement) 1,919,250
De Anza Park Improvements - Splash Pad 250,000 Sultana Avenue/J Street Storm Drain and Street Improvements 1,000,000
De Anza Park Improvements - Walkways and Lighting 955,000 Whispering Lakes Golf Course Renovation 10,000,000 Fourth Street Storm Drain 1,000,000
Total Measure Q Funded Capital Improvement Program Projects in FY 2026-27: $100,512,065 1019
61 Five-Year Capital Improvement Program
Project Type
FY 2025-26
Current
FY 2026-27
Proposed
FY 2027-28
Recommended
FY 2028-29
Recommended
FY 2029-30
Recommended
FY 2030-31
Recommended
Outer Years Total
Parks $ 65,348,131 $ 85,176,213 $ 54,121,133 $ 10,200,000 $ 16,310,000 $ 3,550,000 $ 3,000,000 $ 237,705,477 Public Facilities 114,658,401 61,856,102 42,556,393 147,025,000 316,300,000 74,225,000 378,000,000 1,134,620,896 Sewers 1,210,552 5,163,060 18,870,000 25,327,500 21,850,000 - - 72,421,112 Storm Drains 23,914,880 6,850,000 34,400,000 10,832,871 14,000,000 7,041,000 32,600,000 129,638,751 Streets 35,812,683 35,534,494 12,377,301 14,007,193 10,202,000 7,902,000 - 115,835,671 Traffic 772,985 1,630,000 1,100,000 800,000 1,100,000 1,600,000 - 7,002,985 Water 41,880,807 10,645,000 37,352,875 98,882,566 71,885,900 74,275,000 62,050,000 396,972,148 Miscellaneous 14,709,221 16,950,000 53,050,000 38,000,000 300,000 - - 123,009,221 Total$ 298,307,660 $ 223,804,869 $ 253,827,702 $ 345,075,130 $ 451,947,900 $ 168,593,000 $ 475,650,000 $2,217,206,261 1020
Proposed Citywide Fee Schedule Updates
1021
FY 2026-27 Proposed Citywide Fee Schedule Updates
63 Agency
Current
Fees* New Deletions
(obsolete not in use)
Total
Fees
Increases/
Revisions1
(No Net Change to
Count)
Decreases
(No Net Change to
Count)
Revenue
Impacts
Citywide & Miscellaneous 38 1 - 39 1 - $ 5,000
Community Life & Culture 219 1 - 220 - 4 $ 2,500
Community Development 268 9 (22) 255 56 5 $ 776,610
Management Services 18 - - 18 - - $ -
Ontario Fire Department 91 35 (7) 119 65 - $ 279,935
Ontario Police Department 84 - - 84 - - $ -
Ontario Municipal Utilities Co. 7 - - 7 - - $ -
Public Works 48 - - 48 8 - $ 2,658,985
Total Count 773 67 (29) 790 130 9
Total Estimated Revenue $ - $ 221,500 $ - $ - $ 3,501,530 $ - $ 3,723,030 Fees, Fines, and Charges
Component of the FY 2026-27 Proposed Budget for Adoption June 23, 2026 Adjustments to Community Life and Culture reflect a new Museum Fee for vendors Fire Department fees were updated to reflect current operations Community Development are increased Business-related fees Building repurposed residential fees for affordability
Public Works increases are to cover pass through Development Based fees 1022
FY 2026-27 Proposed Citywide Fee Schedule Overview
• Recommended Fee Increases:
• Various increases to Community Development fees to full cost recovery as approved in Resolution 2025-060 on the June 18, 2025, Special Council Meeting
• For profit businesses will take on the full cost third-party cost for services in the Engineering Department currently funded by the City’s General Fund.
• Recommended New Fees:
• Community Life & Culture to create a new Museum Fee to charge vendors for their participation in the Ontario Art Book Fair
• Fire Department added fees to be assessed for Apartment’s, Hotels, Motels, and Commercial Buildings • Restructured Fees
• Community Development restructured building fees to accommodate residential improvements (pool, water heater, patio covers, etc.) to be more affordable for Ontario residents. This resulted in fees being added, deleted, or reworded.
64 1023
Questions
&
Comments
65 1024
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ESTABLISHING AN APPROPRIATIONS LIMIT FOR THE CITY OF ONTARIO FOR FISCAL YEAR 2026-27.

WHEREAS, Section 1.5 of Article XIIIB of the Constitution of the State of California imposes upon units of State and Local Government the obligation to limit each fiscal year’s appropriations of the proceeds of taxes to the amount of such appropriations in Fiscal Year 1986-87 as adjusted for changes in cost of living and population; and WHEREAS, Section 7910 of the Government Code of the State of California directs the governing body of each local jurisdiction to establish its appropriation limit by resolution each year; and
WHEREAS, said section of the Government Code allows the governing body to choose between various factors to be used in the calculation of said appropriation limit; and
WHEREAS, the Executive Director of Finance of the City of Ontario has determined the City’s appropriations limit for Fiscal Year 2026-27 in accordance with the said provisions of the Constitution and laws of the State of California and the documentation used in said determination has been available to the public since June 1, 2026, in the office of the Executive Director of Finance.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ontario, as follows: (1) calculation of said limit for the City shall be determined by using the California Per Capita Income and the population growth of the County of San Bernardino, both as determined by the California Department of Finance; and (2) based upon the factors, the appropriations limit of the City of Ontario for the Fiscal Year 2026-27 is hereby found and determined to be $457,236,701.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 23rd day of June 2026. _____________________________________
PAUL S. LEON, MAYOR
1025
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER LLP

CITY ATTORNEY
1026

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2026- was duly passed and adopted by the City Council of the City of Ontario at a special meeting held June 23, 2026 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2026- duly passed and adopted by the Ontario City Council at a special meeting held June 23, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
1027
RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ADOPTING THE OPERATING BUDGET OF SAID CITY
FOR THE FISCAL YEAR 2026-27.

WHEREAS, the General Fund group is comprised of the General Fund; and WHEREAS, the Special Revenue Funds group is comprised of the following funds:

Community Development Block Grant, HOME Grants, Housing Grants, Measure I, Measure I Valley Major Project, Grants Fund, DOJ Asset Seizure, State Asset Seizure, Treasury Asset Seizure, Fire Mutual Aid, Cable Access Fund, Broadband / Fiber, Opioid Settlement, Gas Tax, Road Maintenance & Rehabilitation Account (SB 1), Transportation Development Act (TDA), Historic Preservation, Air Quality Improvement Fund, Economic Development Activities Fund, Public Art Fee Fund, Affordability In-Lieu, Local Housing Trust Fund, Special Assessment Administration, Parkway Maintenance, Street Light Maintenance, Storm Drain Maintenance, Park Impact/Quimby, Ontario Ranch Public Services, Old Model Colony Services CFDs, Ontario Ranch Services CFDs; and WHEREAS, the Debt Service Funds group is comprised of the Debt Service Fund; and
WHEREAS, the Capital Project Funds group is comprised of the following funds:

Capital Projects, Capital Projects-Measure Q, Capital Projects-Euclid Avenue, Capital Projects-Ontario Ranch Facilities, Ground Access, Aquatics Impact, General Facility Impact, Integrated Waste Impact, Law Enforcement Impact, Library Impact, Public Use Community Centers Facilities, Species Habitat Impact, Old Model Colony-Fire Impact, Old Model Colony-Local Adjacent Sewer, Old Model Colony-Local Adjacent Streets, Old Model Colony-Local Adjacent Storm Drains, Old Model Colony-Local Adjacent Water, Old Model Colony-Regional Sewer, Old Model Colony-Regional Storm Drains, Old Model Colony-Regional Streets, Old Model Colony-Regional Water, Ontario Ranch-Fire Impact, Ontario Ranch-Local Adjacent Fiber, Ontario Ranch-Local Adjacent Sewer, Ontario Ranch-Local Adjacent Streets, Ontario Ranch-Local Adjacent Storm Drains, Ontario Ranch-Local Adjacent Water, Ontario Ranch-Regional Fiber, Ontario Ranch-Regional Sewer, Ontario Ranch-Regional Storm Drains, Ontario Ranch-Regional Streets, Ontario Ranch-Regional Water; and
WHEREAS, the Enterprise Funds group is comprised of the following funds: Water Operating, Water Capital, Sewer Operating, Sewer Capital, Integrated Waste, Parking; and
WHEREAS, the Internal Service Funds group is comprised of the following funds:

Equipment Services, Information Technology, Information Technology Capital Projects, Facilities Maintenance, Workers Compensation, General Liability, Disability/Unemployment Insurance, Pension Benefit Fund, Other Post Employment Benefits, Leave Liability Fund; and
1028
NOW THEREFORE, be it resolved, that the City’s Operating Budget for the Fiscal Year 2026-27, submitted by the City Manager to the City Council, is herewith adopted for the City of Ontario for the Fiscal Year 2026-27.

NOW, THEREFORE, be it also resolved, that the 2026-27 Operating Budget Appropriations are as follows:

General Fund $481,477,045
Special Revenue Funds 120,398,488
Debt Service Funds 69,635,126
Capital Project Funds 140,214,375
Enterprise Funds 275,745,770
Internal Service Funds 135,401,840
Total Operating Budget $1,222,872,644
The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 23rd day of June 2026. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
1029

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2026- was duly passed and adopted by the City Council of the City of Ontario at a special meeting held June 23, 2026 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2026- duly passed and adopted by the Ontario City Council at a special meeting held June 23, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
1030
RESOLUTION NO. OHA-________

A RESOLUTION OF THE ONTARIO HOUSING AUTHORITY OF THE

CITY OF ONTARIO, CALIFORNIA, ADOPTING A BUDGET FOR SAID AUTHORITY FOR THE FISCAL YEAR 2026-27.

WHEREAS, Ontario Housing Authority is comprised of the Housing Authority Fund and the Housing Asset Fund with a total appropriation of $1,588,670 for departmental activities, shall be as set forth in the budget summaries; and WHEREAS, the Authority hereby determines, in accordance with Section 33334.3(d) of the California Redevelopment Law, that the planning and administrative expenses provided in the Budget to be made from the Low and Moderate Income Housing Fund are necessary for the production, improvement, or preservation of low-andmoderate income housing.

NOW, THEREFORE, be it resolved, determined, and ordered by the Housing Authority of the City of Ontario that the Housing Authority’s Operating Budget for the Fiscal Year 2026-27, submitted by the Executive Director to the Housing Authority, is herewith adopted for the Housing Authority of the City of Ontario for the Fiscal Year 2026-27.

NOW, THEREFORE, be it also resolved, that the 2026-27 Operating Budget Appropriation is $1,588,670.

The Secretary of the Ontario Housing Authority shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 23rd day of June 2026. _____________________________________
PAUL S. LEON, CHAIRMAN
ATTEST:
______________________________________

SHEILA MAUTZ, AUTHORITY SECRETARY
1031
APPROVED AS TO FORM:
_______________________________________

AUTHORITY COUNSEL
1032

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, Secretary of the Ontario Housing Authority, DO HEREBY CERTIFY that the foregoing Resolution No. OHA- was duly passed and adopted by the Board Members of the Ontario Housing Authority at a special meeting held June 23, 2026, by the following roll call vote, to wit:

AYES: BOARD MEMBERS:

NOES: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:
______________________________________

SHEILA MAUTZ, AUTHORITY SECRETARY
(SEAL)
The foregoing is the original of Resolution No. OHA- duly passed and adopted by the Ontario Housing Authority at a special meeting held June 23, 2026. _____________________________________

SHEILA MAUTZ, AUTHORITY SECRETARY
(SEAL)
1033

CITY OF ONTARIO

ADMINISTRATIVE POLICY
.

POLICY FSA-001 07/26 1

PURPOSE
The primary goals and objectives of this Travel and Expense Reimbursement Policy are:

1. To document the allowable business expenses eligible for reimbursement. These include necessary and reasonable expenses as defined under Section 162 of the Internal Revenue Code. This policy applies to all travel expenses regardless of the source of funds.

2. To establish a uniform policy for reimbursing members of legislative bodies as defined in the Brown Act for expenses incurred for travel, meetings, and other expenses incurred while on official business for the City of Ontario, and/or Ontario Housing Authority.

3. To define official City business activities to ensure that public resources should only be used when there is sufficient benefit to the City. Examples of such benefits, include:
• The opportunity to discuss the community’s concerns with state and federal officials; • Participating in regional, state and national organizations whose activities affect the City of Ontario;
• Attending educational seminars designed to improve an official’s or employee’s skill and information levels; and
• Promoting public service and morale by recognizing service to the City.

4. To keep expenses within community standards for public officials. If expenses are incurred which exceed these guidelines, the cost borne or reimbursed by the City will be limited to the costs that fall within the guidelines.

5. To satisfy the requirements of Government Code sections 53232.2 and 53232.3.

SUBJECT
Travel and Expense
Reimbursement Policy
Number: FSA-001
Effective Date: July 1, 2026
Revision Date: June 23, 2026
Policy Owner(s):

Financial Services Agency
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CITY OF ONTARIO

ADMINISTRATIVE POLICY
.

POLICY FSA-001 07/26 2
SCOPE
The requirements of Government Code Sections 53232 et seq specify that the provisions of this policy shall apply to all members of legislative bodies as defined in the Brown Act. This currently includes the Mayor and City Council Members, members of the Planning Commission, Recreation and Parks Commission, Library Board of Trustees, Museum of History and Art Board of Trustees, and Public Art Advisory Commission, and agency/department head positions whose positions are designated as members of the Development Advisory Board. This policy shall also apply to the City Clerk and City Treasurer, and all positions in the Executive Management and Department Head units as now constituted and as modified in the future within the City. In addition, this policy applies to all City full-time and part-time employees, volunteers, and other individuals representing the City of Ontario on official business.

This Travel and Expense Reimbursement policy is effective July 1, 2026, and supersedes any other travel and expense reimbursement policies or administrative policies related to the matters included in this Travel and Expense Reimbursement policy. Under the provisions of the Public Records Act, all Statement of Expenses Forms, Travel Request and Authorization Forms, and any accompanying receipts are public records and subject to disclosure. 1035

CITY OF ONTARIO

ADMINISTRATIVE POLICY
.

POLICY FSA-001 07/26 3

1.0 POLICY REQUIREMENTS

1.1 Substantiation of Expenses
a. All expenses must be accompanied by a detailed receipt or supporting documentation, except for meals and incidental expenses as the City of Ontario offers a per diem rate as an option in-lieu of actual meals and incidental costs. Failure to provide such documentation will result in denial of reimbursement. b. Individuals are expected to show good judgement in nature of expenses incurred during traveling. Expenses for members of the individual’s family who accompany him/her on a trip are not reimbursable. The expense report must reflect only the expenses incurred by the elected/appointed official, employee, or volunteer for that specific travel.
c. The City of Ontario reserves the right to deny reimbursement of expenses that are considered lavish, extravagant, or are unsupported by required documentation.

Unusual expenses incurred due to special circumstances may be approved by the City Manager or designee, when in the City Manager’s judgement, such expenses are justified.

1.2 Falsification of Expenses
a. Submitting fraudulent receipts or falsifying your expense report will result in loss of your reimbursement privileges and may lead to disciplinary action, up to and including termination of employment. (Also see Violation of Policy Section.)

1.3 Eligible Expenses
a. Expenses shall be appropriately related to City business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, if the other requirements of this policy are met:
i. Attendance and participation in regional, state, and national organizations whose activities affect the City’s interests;
ii. Communicating with representatives of regional, state, and national government on City policy positions;
iii. Attendance and participation in conferences, workshops, training, and educational seminars to improve skills and information levels;
iv. Attendance at events that recognize service to the City by others; v. Attendance at other events in an official capacity, including attendance and participation in international trade promotions and economic development program activities, and other activities to promote the interests of the City; 1036

CITY OF ONTARIO

ADMINISTRATIVE POLICY
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POLICY FSA-001 07/26 4
vi. Implementing an approved strategy for attracting or retaining businesses to the City, which will typically involve at least one staff member; and vii. Expenses incurred relating to the ongoing operations of City business, such as materials and supplies, membership dues, equipment and tools, and certifications. These expenses should not exceed $500 without the prior approval of the Executive Director of Finance or designee.
viii. Events relating to employee service recognition are allowed at the discretion of the City Manager or his/her designee.
ix. Employees required to reimburse the City for an expense or purchase, including those made with a City-issued PCard, shall reimburse the full amount paid by the City, including any applicable sales tax, fees, or other charges not refunded or credited by the vendor.
b. Reimbursement of expenses for other City business shall require prior approval by the City Manager or designee, with the concurrence of the Executive Director of Finance or designee. In the event an official or agency/department head is uncertain as to whether a request complies with this policy, such individual should seek resolution from the City Manager and the Executive Director of Finance. Any questions regarding the propriety of a particular type of expense should be resolved by the approving authority before the expense is incurred.

1.4 Non-Reimbursable Expenses
Examples of non-reimbursable expenses include, but not limited to, the following:
• Alcohol
• Tobacco and Other Related Products (i.e., e-cigarettes, vape, hookah, etc.) • Internet (except when pre-approved by the Agency Head) • Car Repair and Maintenance (including car washes)
• Credit Card Interest Charges
• Day-Care for Children/Dependents
• Expenses Reimbursed by another Agency, Supplier or 3rd Party • Fees for Upgrades of Air, Hotel (including early check-in), or Auto; Unless Pre-Approved by the City Manager or Designee
• Flowers/Plants (except for City sponsored events and employee/retiree/City official funeral and/or memorial services)
• Headphones on Airlines
• Health Club Fees
• Laundry or Dry-Cleaning Services
• Medicines/Drugs (prescription and over the counter)
• Movies (either in-room, on the plane/train, or at the theater) • Personal Bar Bills
• Personal Books, Magazines, or other Entertainment
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CITY OF ONTARIO

ADMINISTRATIVE POLICY
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POLICY FSA-001 07/26 5
• Personal Celebrations, including Birthdays, Baby Showers, Going-Away or Farewell, Promotions, Retirements, Wedding Showers, etc.
• Personal Losses incurred during the Business Trip
• Personal Travel Credits and Credit Card Points Utilized to Pay for City Travel, Lodging, and Other Items Related to City Business
• Personal Travel Portion during, before or after the Business Trip • Pet Hotel Stays or Pet Transportation
• Political or Charitable Contributions
• Rental/use of scooters, motorcycles, bicycles, and other motorized/non-motorized equipment (excludes the rental of vehicles through the City’s corporate account) • Spa Treatments, Massages, Hair Cuts and other related costs, Manicures, or Pedicures • Sporting Events, Theater, Cinema, Opera, or Concert Tickets • Spouse’s/Partner’s Expenses if Accompanying a City of Ontario Employee on Travel • Toiletries
• Toll Road Fees (Commuting from Home to/from Work)
• Traffic Citations (Parking Tickets, Fines, or Toll Road Penalties) • Travel in a Personal owned Aircraft, Boat or Non-Legal Vehicle for Streets/Roadways • Valet Parking (if Self-Parking is Available at a Lesser Cost

1.5 Travel/Spend Authorizations
a. All City employees, elected/appointed officials, and volunteers must have their Travel Authorization or Spend Authorization submitted electronically in the Expense Module and approved by their Agency/Department Head for all City business travel outside of the Ontario city limits. All Spend Authorizations are subject to approval by the Executive Director of Finance or designee.
b. All out-of-state and/or out-of-country travel on City business requires approval from the City Manager or designee. Travel Authorizations or Spend Authorizations must be approved prior to incurring expenses related to the travel and shall include an explanation of the purpose of the travel.
c. Spend Authorizations are not required for emergency related travel including Fire Suppression personnel assigned to the Fire Strike Teams and City business related to City services provided to other municipalities (i.e., Dispatch Services). However, it is expected that approval is obtained through the normal process required of the City agency or department the City staff are assigned to.
d. Receipts or other proof of fee for travel expenditures must be obtained and submitted with the travel expense report, except for meals and incidentals if the per diem option is being used. No travel expense reimbursement shall be made in excess of the actual cost of the travel.
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CITY OF ONTARIO

ADMINISTRATIVE POLICY
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1.6 Expense Report Submissions Deadline
a. Travel Expense Reports are due within 30 days of the travel. Failure to submit the completed travel reimbursement request electronically through the Employee Expense Module within the 30 days of the travel date may forfeit all reimbursable travel expenses. b. When the travel reimbursement form is submitted beyond the 30-day time limit, a written explanation to the Executive Director of Finance or designee is required to explain the reason for the late submission before the employee’s travel expense reimbursement request is processed.

2.0REIMBURSEMENT REQUIREMENTS

2.1 Meals and Incidental Expenses
Reimbursement for meals and other incidental expenses while traveling on City business shall be based on either:
a. Actual receipted expenses not to exceed a reasonable amount per meal or, b. The IRS’ established standard meal allowance, also known as “Per Diem” amount, is the daily allowance amount for meals and incidental expenses while traveling as established and maintained by the Federal General Services Administration and as referenced in IRS Publication 463. The Per Diem amount is only available for travel that requires an overnight stay, and the full “Per Diem” amount is pro-rated 75% for travel days, as well as adjusted for any meals provided by the host or others at the travel event. c. Or for travel outside the City of Ontario limits that consists of a full day (8 hours or more) and with no overnight stay, full-time City employees are eligible to be reimbursed at the Federal General Services Administration established standard meal allowance amount included for lunch (currently $23 for San Bernardino County) as a “Daily Allowance” for each day that consists of a full day and where lunch is not provided by the event. The Daily Allowance amount will not be pro-rated or given for any travel less than 8 hours. i. Elected/Appointed Officials, Executive and Department Head employees, part-time employees, volunteers, and contractual individuals representing the City of Ontario on business related matters are not eligible for the “Daily Allowance”; however, they would be allowed to submit an actual receipt, to not to exceed a reasonable amount, for reimbursement. The “Daily Allowance” will be reimbursed when the expense statement is submitted.
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2.2 Travel Advances
All full-time City of Ontario employees are eligible to request a travel advance for the applicable Per Diem amount for meals and incidental expenses based on the IRS’ established rates.

Elected/Appointed Officials, Executive and Department Head employees, part-time employees, volunteers, and contractual individuals representing the City on business related matters are not eligible for the Travel Advance. They may seek reimbursement for the applicable Per Diem amount when submitting their Expense Statement.
a. A Travel Advance request will be submitted electronically in the Expense Module at least two weeks prior to the travel event. The Travel Advance is only available for travel that requires an overnight stay and the full Per Diem amount is pro-rated 75% for travel days, as well as adjusted for any meals provided and/or paid by the host or others at the travel event. The travel advance is optional.
b. The Travel Advance will only include the IRS’ established meal allowance. It will not include any other expenses related to the travel event, including hotel stay, parking, event registration, air fare and other transportation costs, as well as any other travel cost incurred that does not fall under the IRS’ established meal allowance. These costs will either be paid in advance (if possible) by the City via a request for payment submitted electronically to the Supplier Module and/or use of a City credit card.
c. Those expenses not eligible for prepayment, will be paid by the attendee either through a City credit card or by the attendee directly. Reimbursement for those eligible expenses paid by the attendee, will be reimbursed after the travel event is concluded and the attendee has electronically submitted the Expense Statement in the Expense Module. d. Only one Travel Advance at a time will be issued to the requestor. If another Travel Advance is requested and the prior Travel Advance has not been settled with the submission of a completed Expense Statement, the other Travel Advance will be denied. e. When the employee has not fully utilized their per diem travel advance, the employee is required to remit the unused balance to the City’s central cashier and submit the cashier receipt as proof of the repayment as supporting documentation when submitting their statement of expense.

2.3 Airfare and Other Transportation Costs
Elected/Appointed Officials, Agency and Department Head employees, full-time and part-time employees, volunteers, and contractual individuals representing the City of Ontario on business related matters shall use the most economical mode and class of transportation reasonably consistent with scheduling needs and cargo space requirements, as well as use governmental and group rates when available.
a. All airfare and other transportation costs shall be paid either by the City using a City credit card and/or submitting a request for payment electronically through the Supplier Module.

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i. For employees and officials that do not receive a monthly Vehicle Expense Reimbursement Allowance for use of their personal vehicle, automobile mileage is reimbursed at Internal Revenue Service mileage reimbursement rates presently in effect under IRS publications shall apply.
ii. These per mile rates compensate the employee for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls, which are reimbursable.
iii. Use of a personal vehicle by an employee must be a vehicle that is legal to be driven on all City, State and Federal streets, roadways and highways, and must receive prior approval by the Agency/Department Head.
iv. If on official City business outside of the City boundaries, proof of mileage shall be included when submitting for reimbursement. Proof of mileage for City business travel within the City boundaries is not required.
v. When personal vehicles are approved as a mode of travel outside of the City boundaries, the distance shall be calculated based on the shortest distance from the employee’s work location or the employee’s primary residence to the point of destination, whichever is less.
vi. The cost associated with using a personal vehicle for overnight travel should be compared to the cost of air or train travel and eligible rental car or other transportation expenses. If the costs associated with using a personal vehicle for overnight travel exceed the comparable costs associated with air or train travel, then the maximum mileage reimbursement shall be based upon the costs of air travel. Declaration of using a personal vehicle for overnight travel must be included in the Travel/Spend Authorization electronically submitted to the Expense Module and approved by the Agency/Department Head and the Executive Director of Finance or designee. b. Travel in City Vehicles may be approved when circumstances warrant it. When traveling in a City vehicle, receipts should be secured for the purchase of gas, oil, and other supplies necessary while in route. These amounts should be included in the expense statement, with a notion that a City vehicle was used, indicating the fleet number of the vehicle. The amounts of these charges must be included in the transportation category. If emergency repairs are necessary, the person to whom the vehicle is assigned must contact their Agency/Department Head, as well as the Fleet Services Manager to determine proper course of action. All receipts for such payment must be furnished to obtain reimbursement. c. Monthly Auto Allowance is a monthly amount paid to elected officials and Agency/Department Heads as for all expenses related to the operation and maintenance of a vehicle for local use on official City business. The monthly Vehicle Expense Reimbursement Allowance shall be as specified in the Compensation Profile for Executive Management Employees, Department Head Employees, and Association of Ontario Management Employees. Those elected officials and employees receiving a monthly auto allowance are not eligible for mileage or fuel reimbursement unless personal vehicle travel is in excess of 250 miles and prior approval from the City Manager is granted. d. Toll Road Fees can be reimbursed when traveling to and from a City business-related event. 1041

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2.4 Hotel and Lodging Expenses
Eligible costs for Hotel and Lodging are generally the group rate for lodging when attending conferences or the government rate, when available.
i. The maximum Lodging Expense Amount is $512.00 per night excluding hotel parking fee, data fees and taxes as of July 1, 2026. This maximum rate shall be increased annually based upon the percentage change in the Consumer Price Index (CPI) for the RiversideSan Bernardino-Ontario region. ii. Any hotel or lodging costs greater than the maximum allowed per night will require prior approval from the City Manager or designee and concurrence with the Executive Director of Finance or designee.
iii. Hotel/Lodging accommodations should be appropriate to the purpose of the trip.

Individuals are expected to use good judgement in the selection of hotel/lodging accommodations offering competitive rates. Guidelines to follow when reserving accommodations for hotel or lodging:
i. Hotel or lodging accommodations are allowed when the overnight event is greater than 30 miles away from the employee’s work location or primary residence (whichever is less), or longer than a 60-minute commute one way.
ii. With advance City Manager approval, hotel reimbursement may be authorized for multi-day events that take place in cities less than 30 miles from the employee’s work location or primary residence.
iii. Overnight stays at Airbnb’s and other short-term rentals will not be approved. iv. Sharing accommodations with other City of Ontario employees is not mandated nor encouraged.
v. For one-day seminars, conferences or other travel, hotel/lodging accommodations are not reimbursable unless approved in advance by the City Manager or designee and appropriate due to the locations or event schedule.
vi. The City does not reimburse for hotel/lodging stay if the employee wishes to stay one day after the conference has been completed in the Pacific Time Zone. If the conference is in the Mountain, Central, or Eastern Time Zones, the employee may travel the day after the conference has been completed.
vii. The hotel in which the individual decides to stay should be located within walking distance to the event or place of business, where possible, to minimize the need for transportation – rental car, bus, taxi, ride share (Uber/Lift), trolley, etc. viii. The individual shall pay for any extra hotel charges, including but not limited to, the following: newspapers, snacks, snack bar, mini bar, pay per view TV, access to internet services (unless prior approval is obtained by the Agency Head), access to the hotel gym, spa treatment, dry cleaners, laundry, valet parking (if self-parking is available), etc.
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ix. No alcohol or other prohibited expenses are allowed on the hotel/lodging receipt. It is the responsibility of the attendee to be responsible for payment of those expenses on a separate invoice.
x. An employee shall notify the City in advance if they are opting for other lodging arrangements, such as staying with family and/or friends during their travel. These other accommodations are not reimbursable.
xi. In the event of an emergency, lodging expenses incurred within the City of Ontario’s boundaries (for example, the Fire Strike Team), shall be reimbursed in accordance with this Travel and Expense Reimbursement Policy as it relates to City business. These lodging expenses shall receive prior approval from the designated Director of Emergency Services and/or Incident Commander.
xii. Planning Advisory Board, Chaplains, West End Emergency Response, and other personnel from other cities lodging may be reimbursable by the City of Ontario only with prior approval of the City Manager or designee.

2.5 Other Miscellaneous Reimbursements
a. Commercial Driver’s License Reimbursement
City employees who are required to obtain and maintain a commercial driver’s license (Class A or Class B) per their respective bargaining group’s Memorandum of Understanding (MOU) shall be reimbursed by the City for the difference between the commercial driver’s license fee and the Class C driver’s license fee, subject to the approval by their respective Agency/Department Head and the Executive Director of Finance or designee. b. Membership Dues and/or Certifications Reimbursement
Membership dues and/or certifications are eligible for reimbursement if they are related to the City employee’s job at the City, subject to approval by their respective Agency/Department Head and the Executive Director of Finance or designee. c. Out-of-Pocket Expense Reimbursement
Qualified expenses incurred by employees related to City business (materials, supplies, etc.) are eligible for reimbursement, subject to approval by their respective Agency/Department Head and the Executive Director of Finance or designee. d. Safety Shoe Reimbursement Allowance
Employees who are required to wear safety shoes shall be reimbursed up to amount specified in their respective bargaining group’s Memorandum of Understanding (MOU) per fiscal year for such shoes. The shoes shall meet ASTM or other industry approved standards appropriate for the employee’s work assignment and classification, as determined by the Agency/Department Head and Executive Director Human Resources/Risk Management. 1043

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e. Technology Expense Reimbursement Allowance
Elected officials shall receive a monthly technology expense allowance to reimburse for all expenses related to monthly cellular telephone charges, additional telephone charges for facsimile machine use at their residences and/or offices, internet access and account maintenance charges to maintain internet access at their residences and/or offices, which may be necessary in the conduct of City business.
f. Tuition Reimbursement
To encourage all City employees to continue educational development, specified employees may be eligible for reimbursement of tuition expenses, per the guidelines stated in their respective Memorandum of Understanding (MOU). Tuition reimbursements are subject to the approval by their respective Agency/Department Head, Executive Director Human Resources/Risk Management or designee, and Executive Director of Finance or designee.

3.0Reporting Requirements for Elected and Non-Elected Officials

3.1 Elected Officials - Mayor, City Council, City Clerk and City Treasurer At the first City Council meeting following a meeting attended at City expense and during the Council Matters section of the City Council Meeting Agenda, members of the City Council (Elected Officials, including the Mayor, City Council, City Clerk, and City Treasurer) shall provide a brief oral or written report regarding a meeting or conference attended at City expense. In accordance with Government Code Section 53232.3(d), the term "meeting" shall mean a meeting of the majority of the members of a legislative body as defined in the Brown Act. For example, if three Council Members were to meet with a Congressperson in Washington D.C. regarding an item concerning the City of Ontario, then the Council Members would be required to report such attendance at the next regular City Council meeting. A joint report may be made. In addition to the mandatory reporting set forth above, when Council Members attend a conference or organized activity conducted in compliance with Section 54952.2(c) of the Government Code, a report shall be made.

3.2 Non-Elected Officials – Commissioners and Board Members At the first Commission or Board meeting following a meeting or conference attended at City expense and during the Commissioner/Board Reports section of the Commission or Board Meeting Agenda, members of the Commission/Board shall provide a brief oral or written report regarding a meeting attended at City expense. In accordance with Government Code Section 53232.3(d), the term "meeting" shall mean a meeting of the majority of the members of a legislative body as defined in the Brown Act. A joint report may be made. In addition to the mandatory reporting set forth above, when Commissioners or Board members attend a conference or organized activity conducted in compliance with Section 54952.2(c) of the Government Code, a report shall be made.
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This applies to all appointed members of the Planning Commission, Recreation and Parks Commission, Library Board of Trustees, Museum of History and Art Board of Trustees, and Public Art Advisory Commission.

Reporting requirements do not apply to others covered by this policy.

4.0 Violation of Policy

4.1 Violation of Policy – Elected Officials
Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the agency's reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, and 5) prosecution for misuse of public resources.

4.2 Violation of Policy – Non-Elected Officials and City Employees Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the agency's reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, 5) prosecution for misuse of public resources, and 6) disciplinary action, up to and including termination of employment.
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SUPPLEMENTAL

REFERENCES

ATTACHMENTS

REVISIONS
Revision
Revision #1 November 7, 2023
Revision #2 July 1, 2024
Revision #3 July 1, 2026
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PURPOSE
The primary goals and objectives of this Purchasing Policies and Procedures Manual (“Manual”) are:
a. To facilitate best-value purchasing transactions.
b. To help employees of the City of Ontario (“City”) facilitate the timely procurement of goods and services (“Purchasing System”) needed to meet the City's operational needs while adhering to the regulations set forth in the City’s Municipal Code (Volume 1, Title 2, Chapter 6), Generally Accepted Accounting Practices (“GAAP”), and all applicable Federal and State of California regulations and requirements. c. To complement and reinforce fiscal control measures. d. To communicate Citywide and promote a common understanding of the City's procurement policies and established business practices; e. To define procurement roles and responsibilities of the Purchasing Division and staff, and serve as a tool for employee training and development.

The policy statements contained in this Manual represent the foundation upon which the City operates in its Purchasing System. This Manual will be revised and supplemented, as required, to meet City requirements.

SUBJECT

PURCHASING POLICIES

AND PROCEDURES MANUAL
Number: FSA-002
Effective Date: July 1, 2026
Revision Date: June 23, 2026
Policy Owner(s): Financial Services
Agency
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SCOPE
The Purchasing Division, part of the Financial Services Department, is focused on strengthening the economic well-being and quality of life of the City’s community through oversight of the timely procurement of City services and infrastructure. It defines success as providing superior service to all City Departments and thereby to the community, and it strives to maintain:
a. A strong commitment and genuine desire to provide supportive customer service in the spirit of teamwork, to take the extra step to be helpful, and to obtain the best quality of life for our community as the highest priority. b. An attitude that fosters cooperation, creativity, and innovation in problem-solving while aiming to make the most economically prudent use of the City's limited resources.
c. The highest level of integrity and ethical standards while discharging its duties in accordance with the City's policies and procedures, and all applicable laws and regulations.
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DEFINITIONS
a. Annual Purchase Order: A purchasing method used to purchase designated goods and/or services on a repetitive basis for the City’s Agencies or Departments. Annual Purchase Orders shall be issued to a specific supplier on a per fiscal year basis and shall close at the end of the fiscal year.
b. Best Value: A value determined by evaluation of objective criteria that may include, but not be limited to price, features, functions life-cycle costs, technical experience, and past performance. A best value determination may involve the lowest cost proposal meeting the interests of the City and the needs of the project, or a tradeoff between price and other specified factors.
c. City: Refers to any entity affiliated with the City, including the Ontario Housing Authority (to the extent such entity adopts a resolution subjecting itself to the Uniform Public Construction Cost Accounting Act, and these purchasing policies and procedures). d. Cooperative Purchasing: A competitive procurement method whereby the procurement requirements of two or more governmental entities are combined to obtain the benefits of volume pricing, reduction in administrative costs, or both. e. Emergency: A sudden unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health property, or essential public services.
f. Formal Bid: A bid (subject to Section 2-6.07 of the Municipal Code) advertised in a local newspaper; submitted in a sealed envelope and in conformance with a prescribed format; and publicly opened at a specified place, date, and time. g. Goods: Supplies, materials, equipment, and other commodities (other than services and real property) included in California Commercial Code Section 2105. h. Non-competitive: A non-competitive procurement whereby an acceptable justification exists to support goods, services, or public works related purchases provided by a particular supplier without a competitive process. i. Prevailing Wage: California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations Title 8, Section 16000, et seq. (“Prevailing Wage Laws) require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the work is being performed as part of an applicable “public works” or “maintenance” project as defined by the Prevailing Wage Laws and if the total compensation is $1,000 or more, the City must make suppliers aware of these requirements and suppliers must fully comply with such Prevailing Wage Laws. For more information and threshold levels, visit the Department of Industrial Relations website at dir.ca.gov. 1049

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j. Procurement: The purchasing, leasing, or otherwise acquiring of any goods, services, or public project construction (including all of the functions that pertain to the acquisition). k. Professional Services: Advisory, consulting, architectural, engineering, computer, legal, financial, telecommunications, financial, surveying or any service which involves the exercise of professional discretion or independent judgment (based on an advanced or specialized knowledge, expertise, or training gained by formal studies or experience). l. Purchase Order: The written document provided to the supplier formalizing the terms and conditions associated with the ordering of the goods, services, or public project required by the City. It is the payment document and also serves as a low value threshold contractual document.
m. Purchasing Officer: The position defined by the City’s organizational structure that is responsible for overseeing the Purchasing Division. The person occupying such a position may delegate to such other person or entity as he/she deems advisable such duties and responsibilities as have been provided. In the absence of the Purchasing Officer, or designee, the Assistant Finance Director or the Executive Director of Financial Services has the authority to sign purchase orders.
n. Requisition: A written request submitted to the Purchasing Division by a City Agency or Department to initiate the procurement process for specified goods, services, or a public project.
o. Responsive Bid: A bid which meets all of the specifications set forth in the request for bid proposal.
p. Responsible Bidder: A bidder who has demonstrated the attribute of trustworthiness as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract.
q. Services: The furnishing of labor, time, or effort by a contractor or supplier (which may involve to a lesser degree the delivery or supply of products). The term does not include services rendered by City officers and employees, nor private firms offering professional services.
r. Sole Source: A non-competitive procurement whereby an acceptable justification exists to support goods, services, or public works related purchases provided by a single source supplier. A sole source is, by definition, only available from one source. s. Standardized suppliers: A non-competitive procurement whereby pre-authorized suppliers, approved by City Council, are selected for procuring products or services determined to be in the City’s best interest to buy directly from specified suppliers. t. Virgin Materials: Items that in their raw or unprocessed form tend to use more energy during processing phase. Therefore, recycled materials are preferred. 1050

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POLICY

1.0 PROCUREMENT OVERVIEW

1.1 Policy Statement
a. The City’s goal for every purchasing transaction is to obtain the best value possible. Best value is determined by evaluating many factors (such as price, delivery capabilities, quality, past performance, training, financial stability, service capabilities, ease of ordering, payment terms, functions, features, life-cycle costs, etc.) and selecting a supplier that offers the best combination of those factors.

1.2 Policy Amplification
a. The Financial Services Department of the Financial Services Agency supports sustaining and promoting a procurement environment to best support the operational needs of the City’s Agencies and Departments. These purchasing policies and procedures are meant to foster an environment that puts its City’s Agencies and/or Departments in the best possible position to procure the products and services needed in a timely and cost-effective manner to effectively operate (while also making sure appropriate procurement processes are followed).
b. It is the responsibility of all employees involved in the procurement process to exercise due diligence in an effort to mitigate any avoidable risks, obtain maximum value for each dollar expended, and protect the City's rights in carrying out procurement transactions and in administering contracts.

2.0 PROCUREMENT CODE OF ETHICS

2.1 Policy Statement
a. The City desires to maintain a reputation that embodies the very highest standards of ethical conduct, and advocate a code of conduct that prohibits breach of public trust by any attempt to realize personal gain by a public employee through conduct inconsistent with the proper discharge of the employee's duties. b. Employees are expected to demonstrate loyalty to the City by diligently following lawful instructions, using reasonable care, and using only the authority granted. City employees shall know and obey the letter and spirit of laws governing the purchasing function, and remain alert to the legal ramifications of purchasing decisions. c. It is the responsibility of all City employees to endeavor to maintain the good name of the City, to develop and maintain good relations between the City and its suppliers, and to keep in mind that personal contacts form much of the basis for public opinion. 1051

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City employees must place the interests of the City first in all transactions (and expose questionable practices wherever discovered).

2.2 Supplier Relations
a. Negotiations with suppliers should be based on sound business judgment. The City expects its employees to be fair and neither perform nor accept favors. It is prohibited for City employees to accept personal advantages. Entertainment, gifts, free services, discounts on personal purchases (whether for the City employee or anyone else in his/her family or household) is forbidden. Favors must be declined and gifts must be returned pleasantly, diplomatically, and firmly. Relations with suppliers should be friendly, objective, and strictly for business.

2.3 Conflicts of Interest
a. The City expects its employees will not permit any conflict of interest between their personal affairs and City business. One may not have a financial interest, position, or relationship with any person, firm, or corporation that does business with the City that would influence (or could be regarded as influencing) their actions for the City. Family or relative financial interests can become a conflict for the employee. Any situation which is unclear should be reviewed with management.

2.4 Confidential Information
a. Suppliers may divulge to a City employee or employees confidential or proprietary information. Employees must handle confidential or proprietary information belonging to the City or suppliers with due care and diligence, and with proper consideration of ethical and legal ramifications and governmental regulations. City employees are expected to refer requests from the public for supplier or bidder information to the Records Management Department.

3.0 PROCUREMENT OF GOODS AND SERVICES

3.1 Policy Statement
a. The City strives to make fiscally responsible purchases of goods and services that reduce resource consumption and waste, perform as required, and promote human health and well-being.

3.2 Policy Amplification
a. All procurement of goods and services shall be made in accordance with City Council approved policies and procedures (including without limitation the City’s Municipal Code). The City utilizes a combination of formal bids, informal bids, and alternative bid procedures for the procurement of goods, professional services, and public projects 1052

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based on need and threshold.

3.3 Formal Bid Procedures
a. Formal bid procedures are used for public projects exceeding two hundred thousand dollars ($200,000) or large dollar value procurements requiring a more formal procurement process. Types of procurement vehicles include:
i. Notice Inviting Bids
ii. Request for Qualifications

3.4 Informal Bid Procedures
a. Informal bid procedures are used for small to medium-sized public projects as defined in Municipal Code Section 2-6.13, and procurements for goods, services, and professional services with a defined list of attributes. Types of procurement vehicles include:
i. Invitation for Bids

3.5 Alternative Bid Procedures
a. Alternative bid procedures are used when formal or informal bidding procedures are not required for goods, services, or professional services due to low dollar value; or when the procurement is for an intended outcome versus a defined list of attributes, etc. Types of procurement vehicles include:
i. Informal Quotation
ii. Request for Quote
iii. Request for Proposal

3.6 Design Build
a. The City may utilize a design-build method of procurement for public projects in accordance with California Public Contracting Code Section 22160 et seq.

3.7 Supplier Preference
a. The City has established a local, veteran, minority, and women-owned preference to promote the community's economic health, encourage participation in the procurement process, and receive fair access to contracting and procurement opportunities within our projects.
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County of a proportionate amount of the sales tax associated with the purchase of the goods solicited.
ii. A supplier whose sales tax is reportable outside of the City (but within the County of San Bernardino) will receive a ¾% advantage in low bid determination. This section shall not apply to procurements subject to Federal funding requirements.

3.8 Standardization
a. Every effort shall be made to standardize commonly used items, vehicles, equipment, and services. Once a standard item has been determined, approval shall be obtained from City Council for repeated purchases expected to exceed $150,000 within a period of up to five (5) years. This will eliminate repetitive approvals by City Council for the same item.

3.9 Cooperative Purchases
a. The City may engage in cooperative purchasing for goods or services as a third-party agency "piggybacking" on another agency's competitively bid agreement so long as the goods or services were procured in accordance with minimum requirements of the Purchasing System. Cooperative purchasing reduces administrative expenses, secures prices, and offers other benefits of a large volume purchase. Caution must be exercised to ensure that the City complies with all applicable Federal, state, and local laws as well as the City's Purchasing System. The Purchasing Division must be consulted prior to any City Agency or Department engaging in cooperative purchasing.

The City's Municipal Code Section 2-6.23 allows for the following exceptions to the procurement methods set forth in the City’s Purchasing System:

I. Emergency – When in an emergency as defined in the Purchasing System, provided the procedures set forth in Section 2-6.24 of City’s Municipal Code are followed.

II. Sole-Source—When a City Agency or Department determines that the goods, services, or public project can only be obtained from a sole source, the Agency or Department will submit a request for non-competitive procurement to the Purchasing Division. A sole source justification shall be valid for up to one year from the date of approval by the Purchasing Division.

III. Cooperative Purchasing – When the City Council has by resolution transferred the authority to make the purchase of goods to another governmental agency through cooperative purchasing and the agency generally follows the provisions of California Government Code Sections 54201 through 54204. 1054

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4.0 PUBLIC PROJECTS

4.1 Policy Statement
a. The City is subject to the California Uniform Public Construction Cost Accounting Act (“Act”) in awarding all public projects for construction work.

4.0 Policy Amplification
a. The Act permits the City to:
i. Simplify the bidding process for public projects valued up to $200,000; and ii. Minimize limits on using City employees for public works. b. Every five years, the California Uniform Construction Cost Accounting Commission reviews the bid limits for inflation and other factors to determine whether adjustments should be made to the Act. If an adjustment is made to the current thresholds represented in this Manual, the State Controller will notify the affected public agencies.

The adjustment may become effective before it appears as a formal change in the Public Contract Code (“PCC”).
c. Public projects (as defined by the Act) may be let to contract as set forth in the Purchasing System and PCC sections 22000 through 22045 in accordance with the current dollar limits as follows:
i. Public projects of $75,000 or less may be performed by the employees of the City by force account, negotiated contract, or purchase order; ii. Public projects of $220,000 or less may be let to contract by informal bid procedures as set forth in the Purchasing System and Act; and iii. Public projects of more than $220,000 shall, except as otherwise provided in the Act, be let to contract by formal bid procedure as set forth in the Purchasing System.
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5.0 FEDERAL FUNDING REQUIREMENTS

5.1 Policy Statement
a. Federal procurement standards are set forth in Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). The Uniform Guidance requires the City to have and use documented procurement procedures consistent with state, local, and tribal laws; and regulations and the standards of the procurement standards identified in Sections 200.317 through 200.327 of the Uniform Guidance when using certain Federal funds. This includes procurements made (i) in preparation of, during, and after an emergency declared by the President of the United States and that may be subject to Federal funding or reimbursement; and (ii) when using Federal grant funds subject to the Uniform Guidance. When procurement is subject to the Uniform Guidance, the City shall follow its document procurement procedures along with the procurement standards of the Uniform Guidance.

For additional guidelines, please reference the Grant Administration Policy, FSA-009 1056

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6.0 AGREEMENTS AND/OR CONTRACT STANDARDS

6.0 Policy Statement
a. The City’s policy is the City Council has sole authority to approve agreements or contracts exceeding $150,000; and the City Manager or designee signs such contracts on behalf of the City Council, unless otherwise directed by City Council or provided for by law.
b. The Purchasing Officer or his/her authorized representative has sole authority to approve and sign purchase orders on behalf of the City, unless otherwise directed by the City Council or provided for by law.
c. Electronic and/or digital signatures on agreements or contracts are acceptable when in accordance with City policy and Secretary of State (Government Code Section 16.5) procedures established for digital and electronic signatures. The Purchasing Division, Records Management, and the City Attorney reserve the right to require original wet signatures on agreements or contracts when deemed to be in the best interest of the City.
d. It is the policy of the City that it remits payment for supplier invoices via electronic fund transfers through the Automated Clearing House (“ACH”) network. All payments related to agreements of $25,000 and over shall be made through electronic ACH transfers.
e. Furthermore, it is the policy of City Council to establish and require the use of contract standards to assure that the interests of the City will be protected in all agreements or contracts.

6.1 Policy Amplification
a. To preclude claims against the City, all employees shall refrain from oral or written commitments that may be construed as binding by the other party. i. All employees shall emphasize to the other party that there is no commitment or contract until an agreement or contract is signed by the City Manager or designee.
ii. Any employee that enters into an agreement or contract without the approval of City Council and/or City Manager as appropriate, or takes actions that are interpreted as commitments by a third party or leads to claims against the City, may be personally liable for any costs associated with the agreement or contract.
b. This policy will be accomplished primarily through the use of standard contracting procedures established and promulgated by the Purchasing Department of the Financial Services Agency.
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c. It is the responsibility of each Agency or Department Head to assure that:
i. Standard contracting procedures are followed in the preparation and processing of all agreements or contracts with the City Agency or Department.
ii. All applicable standard contract terms and conditions are included in all agreements or contracts.
iii. All agreements and contracts are reviewed by affected City Agencies or Departments (including the Purchasing Division) before being presented to the Office of the City Manager for approval by the City Manager or placement on the agenda for approval of City Council.
iv. All revisions and updates to this policy and applicable procedures are promptly disseminated to personnel engaged in contract preparation and administration.
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7.0 ANNUAL PURCHASE ORDERS
a. Annual Purchase Orders allow the City to purchase designated goods or services on a repetitive basis for City Agencies or Departments. Annual Purchase Orders shall be issued to a specific supplier on a per fiscal year basis and shall close at the end of the fiscal year. As the cost of the goods, services, and professional services approach the $150,000 threshold, an Agenda Report seeking approval will be submitted by the City Agency or Department to City Council.
b. The Annual Purchase Order system is for goods, services, and professional services that are purchased frequently or in large quantities by the City (provided on an “asneeded” basis). Annual Purchase Orders expedite delivery because separate requisitions are not required for each transaction. In the case of goods and certain services, the supplier agrees to supply the City’s requirements at either a fixed price or at a fixed discount from the list market price. The Purchasing Officer will determine the goods, services, and professional services allowed by the Annual Purchase Order system.
c. Purchases by the Annual Purchase Order system include, but are not limited to, any expenditure that is recurring and is a reasonably predictable operating expense. d. Only those items specified within the Annual Purchase Orders may be ordered using the Annual Purchase Order. Items not allowed under the Annual Purchase Order system shall be ordered in accordance with the City’s purchasing policies and procedures:
i. Using Agency or Department shall contact the supplier for a Quote or estimate, referencing the Annual Purchase Order, to confirm pricing matches negotiated pricing.
ii. Using Agency or Department must review the quoted price and ensure compliance with the terms of the Annual Purchase Order. iii. Using Agency or Department shall ensure it has adequate budget funds for the proposed expenditure.
iv. Using Agency or Department shall submit a requisition, which includes the quote or estimate, to the Purchasing Division noting the Annual Purchase Order it plans to utilize.
v. Once the good is received or service accomplished, the invoice from the supplier shall be submitted to the Accounts Payable Division following the normal payment process for invoices.
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8.0 RECYCLED PRODUCT PROCUREMENT

8.1 Policy Statement
a. In the procurement of goods for the City, a preference shall be given for the purchase of recycled goods whenever equal in fitness and quality and available at no more than the total cost of non-recycled products in accordance with Article 7, Reduction and Reuse Provisions, Sections 2-6.30 and 6-3.701 of the City’s Municipal Code.
b. Products must be recyclable as defined by the Federal Trade Commission’s, Green Guides, (Code of Federal Regulations Title 16 Chapter I, Subchapter B Part 260, Section 12)

8.2 Policy Amplification
a. The purpose of this policy is to encourage purchasing decisions that (1) increase the recycled content of goods purchased and used by the City, (2) reduce waste in the manufacture and use of goods and packaging purchased by the City, (3) and to provide guidance to City staff in evaluating the purchase of goods for City use.
c. This policy applies to all City departments and direct service providers to the City, as applicable, must comply with the City's procurement policy. d. Procurement Requirements
i. Printing and writing paper shall consist of at least 30 percent post-consumer recycled content.
ii. Toilet paper shall consist of at least 45 percent post-consumer recycled content.
iii. Paper towels shall consist of at least 40 percent postconsumer recycled content.
iv. Facial tissue shall consist of at least 10 percent postconsumer recycled content.
v. Toilet seat covers shall consist of at least 20 percent postconsumer recycled content.
vi. General-purpose paper wipers shall consist of at least 40 percent postconsumer recycled content. vii. Food service ware, including, but not limited to, napkins, plates, bowls, food trays, takeout boxes, placemats, etc., shall consist of at least 40 percent post-consumer recycled content
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9.0 SURPLUS PERSONAL PROPERTY

9.1 Policy Statement
a. The City’s policy regarding disposition of City-owned surplus personal property is outlined in Section 2-6.31 of the City’s Municipal Code. The Purchasing Officer is authorized to dispose of surplus goods which are not used or needed by any Using Agency or which have become unsuitable for City use. The City prohibits employees from acquiring surplus items sold through auction.

9.2 Policy Amplification
a. Timely identification of surplus and obsolete goods is essential to an effective disposition program. Higher maintenance and storage costs and further deterioration of the goods are the result of delayed identification of surplus. i. Declaration of Surplus Goods. Using Agencies that determine certain goods to be of no use to their Agency must complete a "surplus property transaction request" and forward it to the Purchasing Officer for review and subsequent declaration as being surplus.
ii. Custody of Surplus Goods. Each Using Agency shall retain custody of its surplus goods until their transfer or final disposition has been determined. No Using Agency shall (in any event) permit any surplus goods held by it to be loaned or donated without prior City Council approval, or destroyed or otherwise removed from the City's custody without the prior written approval of the Purchasing Officer.
iii. Transfer. Before disposing of surplus goods, the Using Agency shall canvass all other Using Agencies to determine whether another City Agency can use the surplus goods. If another Agency desires to use the goods, the Purchasing Division shall assist in transferring the goods to that Agency.
iv. Disposition. The Purchasing Officer is hereby authorized to dispose of surplus goods which are not used or needed by any Using Agency or which have become unsuitable for City use. Such goods may be disposed of by any of the following procedures:
• Exchanged or traded in on new goods;
• Sold utilizing competitive procedures similar to those prescribed herein for open market procurement;
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• Sold at public auction conducted by a professional
auctioneer;
• Sold utilizing a negotiation process when the
Purchasing Officer deems that such process is in the
best interests of the City;
• Disposed of as scrap material or destroyed if no resale value exists; or
• Donated to a non-profit organization or other public
entity following a City Council determination that such donation would serve a public purpose.
v. Once a good has been identified for surplus disposal, the Using Agency submits a request to the Purchasing Officer identifying the disposing procedure with approval from the Head of the Using Agency.
vi. If there is an asset number associated with the surplus goods, the asset number needs to be identified to alert the Accounting Division to have the asset removed from the asset list. vii. Once all approvals are obtained, a notification of the approved surplus request is routed to the requestor for filing and/or further action.
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10.0 PROCEDURES

10.1 PROCUREMENT AND PURCHASING AUTHORITY

10.2 Purchasing Division
a. The Purchasing Division is charged with interpreting and enforcing the City's purchasing policies and procedures. The Purchasing Division is authorized to issue purchase orders, contracts or agreements, and change orders; and is directed to oversee their implementation and its operations in accordance with the rules and regulations prescribed by City Council and the administrative procedures approved by the City Manager.

10.3 City Manager
a. The City Manager is authorized to execute written agreements or contracts (along with amendments or change orders) for all goods, services, professional services, and public projects with a cumulative term of up to five (5) years for which the cumulative value of the agreement or contract (inclusive of all amendments and/or change orders) does not exceed the City Manager's purchasing authority limit as may be established from time to time by resolution or other order of City Council.
b. If an amendment or extension to an agreement results in a financial commitment that exceeds the City Manager's purchasing authority or the five (5) year term limit, City Council authorization is required. The Agenda Report to the City Council shall include an identification of the annual and/or total expected cost and term of the agreement. c. Amendments or extensions to agreements or contracts that exceed the City Manager's purchasing authority or the maximum term limitation (and City Council authorization is not obtained) require a new procurement process. A non-competitive justification does not preclude City Council authorization requirement.
d. The City Manager is authorized to execute written public project agreements or contracts within his or her purchasing authority limit. Change orders to public project agreements or contracts that exceed 75 percent of the approved contingency shall be signed by the City Manager.
e. The City Manager may delegate authorities granted by the City’s Municipal Code Section 2-6.26 to subordinates provided that such delegation be made in writing and signed by the City Manager.

10.4 City Departments
a. Agency Heads and Department Heads, or their designees, consistent with the City's designated purchasing approval limits are authorized to approve and submit all purchase requisitions.
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11.0 COMPETITIVE PROCUREMENT
a. Competition in purchasing provides equal opportunity for qualified suppliers to compete for City business and for City personnel to secure the best price, quality, and service.

When bids are required, they are to be conducted on an open and competitive basis and without favoritism or bias in order to maximize the best value to the City and the procuring City Agency and/or Department. The bids of interested suppliers shall receive fair and impartial consideration.
b. The rules and regulations established by the City are intended to secure sound value, to guard against favoritism and profiteering at public expense, and to promote the interest of private enterprise and the health of the local economy. To further this objective, the City has elected to utilize an electronic bid management system as provided by Municipal Code Section 2-6.07 to (1) enhance the efficient procurement of goods, services, professional services, maintenance work and public projects, (2) encourage competition for public contracts, and (3) to purchase at the lowest competitive market price without favoritism or prejudice.
c. The estimated cost of each purchase is considered when determining the level of competition necessary. This ensures that the benefit derived from the competitive process justifies the cost of administering the process and that all legal requirements are met. Procurements shall not be split to circumvent dollar limits associated with procurement procedures.
d. Encouraging competition is a means by which the City can mitigate the potential for antitrust activity. A Non-Collusion Declaration is mandated by Public Contract Code Section 7106 and shall be completed in the procurement of all public projects. The NonCollusion Declaration can be found on the City’s Intranet. 1064

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12.0 NON-COMPETITIVE PROCUREMENT
a. Full and open competition should be the objective in public procurement; but it is not always possible or practicable. When procuring goods or services, City staff may determine the best value to the City may be achieved by pursuing a non-competitive procurement with a specific supplier due to technological, specialized, or other unique characteristics. Otherwise, as long as there is more than one potential supplier available to satisfy a given need, there exists insufficient justification for a non-competitive procurement.

12.1 Non-Competitive Purchases
a. A non-competitive purchase must be supported by written justification that thoroughly explains the need and reason for the requested course of action. A Non-Competitive Justification Form validates to the Purchasing Division of only one viable supplier for the procurement of the goods and/or services. It must be signed by the Agency or Department Head and submitted with the requisition or agreement or contract packet for the approval of the Purchasing Officer. With its submission of the Non-Competitive Justification form, the Department shall attach a detailed written rationale for the use of only one supplier and not competitively bidding the needed goods or services. b. The following factors are among those that constitute justification for non-competitive purchases:
i. The supplier is determined to be the only known source of the goods or services after solicitation of several suppliers, or seeking competitive bids and competition is determined to be inadequate.
ii. The goods can only be procured directly from the original manufacturer or sole representative of the item in the City's geographical region. iii. There is a reasonable basis to conclude the City's minimum needs can only be satisfied by unique goods or services and the supplier demonstrates a unique qualification due to:
• An innovative concept or a unique capability to provide the particular services proposed;
• Proven expertise or specialized knowledge in a field of few known experts;
• Previous experience providing like services to the City resulting in an understanding of City's immediate needs and practices increasing the likelihood of greater efficiency and success;
c. The use of a piece of equipment or commodity would require modifications to existing equipment, necessitate engineering re-design, or require voiding of a warranty. 1065

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d. Goods may be deemed available only from the original source in the case of a followon contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in:
i. Substantial duplication of cost to the City that is not expected to be recovered through competition.
e. City property is released to a proven supplier who must dismantle equipment in order to assess repair needs and it is not practical or feasible to obtain competitive pricing for repair.
f. The existence of limited rights in data, patent rights, copyrights, or secret processes for the goods.
g. When only specified makes and models of technical equipment and parts will satisfy the City's needs for additional units or replacement items and only one source is available in accordance with the City's standardization program.
h. The item is one with which staff members who will use the item have specialized training and/or expertise and retraining would incur substantial cost in time and/or money. i. Purchase of property for which it is determined there is no functional equivalent. j. Existence of an unusual and compelling urgency (emergency purchase) with serious potential repercussions for the City resulting in the impracticality of a competitive purchase.
k. When the City determines (with the advice of legal counsel) that seeking competition would not produce an advantage, competitive bidding requirements may be waived.

12.2 Emergency Purchases
a. Emergency – When in an emergency, as defined in the Purchasing System, provided the procedures set forth in Section 2-6.24 of City’s Municipal Code are followed.

Municipal Code Section 2-6.24, Emergency Procurements:
i. In cases of emergency when repair or replacements are necessary, the City Council (pursuant to a four-fifths vote of the City Council) may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details or giving notice for bids to let contracts in accordance with California Public Contract Code Sections 22050 et seq. Before the City Council takes any action pursuant to this subdivision (a), it shall make a finding that the emergency will not permit a delay resulting from a competitive solicitation for bids and that the action is 1066

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necessary to respond to the emergency based on substantial evidence set forth in the minutes of its meeting.
ii. Pursuant to California Public Contract Code Section 22050, Subdivision (b)(1), the City Council hereby delegates to the City Manager or designee the authority to repair or replace a public facility, take any directly related and immediate action required by that emergency; and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts. iii. If the City Manager or designee orders any action specified in subdivision (a), that person shall report to the City Council (at its next meeting required pursuant to this section) the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.
iv. (1) If the City Council orders any action specified in subdivision (a), the City Council shall review the emergency action at its next regularly scheduled meeting; and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated to determine (by a four-fifths vote) that there is a need to continue the action
(2) If the City Manager or designee orders any action specified in subdivision (a), the City Council shall initially review the emergency action not later than seven (7) days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen (14) days after the action; and at least at every regularly scheduled meeting thereafter until the action is terminated to determine (by a four-fifths vote) that there is a need to continue the action (unless the City Manager or designee has terminated that action prior to the City Council reviewing the emergency action and making a determination pursuant to this subdivision). (3) When the City Council reviews the emergency action pursuant to subdivision (1) or (2), it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.
b. Pursuant to Municipal Code Section 4-3.06(a), the Director of Emergency Services is hereby empowered to:
i. Request the City Council to proclaim the existence or threatened existence of a “local emergency” if the City Council is in session, or to issue such proclamation if the City Council is not in session. Whenever a local emergency is proclaimed by the Director of Emergency Services, the City Council shall take action to ratify the proclamation within seven (7) days thereafter or the proclamation shall have no further force or effect; and obtain vital supplies, equipment, and such other properties found lacking and needed for the protection of life and property and to bind the City for the fair value thereof (and, if required immediately, to commandeer the same for public use).
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Director of Emergency Services under Section 4-3.06(a) of the City’s Municipal Code. In the absence of both the Director of Emergency Services and the Assistant Director of Emergency Services, the Emergency Manager is empowered to take on the powers of the Director of Emergency Services under Section 4-

3.06(a) of the City’s Municipal Code. The Director of Emergency Services shall be deemed absent where he or she is unavailable to participate in meetings or otherwise is unable to perform his or her duties during an emergency. 1068

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13.0 PROCUREMENT CARDS

13.1 Procurement Card Purchases
a. This policy and procedures document aims to provide clear direction for City departments to request and oversee the use of procurement cards (“Procurement Card”) assigned and utilized by authorized City employees. The Procurement Card program has been established to provide a convenient means to make purchases and reduce the costs associated with initiating and paying for those purchases. It will assist in reducing the cost of processing small dollar purchases, expedite delivery of required merchandise, and simplify the payment process. This policy establishes the minimum standards for departments administering the Procurement Card program. Departments may establish additional controls beyond those established by these procedures. b. The Procurement Card represents the use of public funds; therefore, cardholders must know that their purchases represent the City’s interests and reputation for ethical and prudent business dealings.

13.2 Procurement Card Issuance
a. To request a Procurement Card to a City employee, the City Agency or Department Head must complete a Procurement Card Request form and submit the form to the Purchasing Division. The form includes the respective employee’s information, the expected types of purchases to be made and the requested card limit. The form is signed by the employee signifying the employee’s understanding of the rules governing use of the Procurement Card.
b. Upon receipt of the Procurement Card Request Form, the Purchasing Division will coordinate the issuance of the Procurement Card through the issuing bank, or the bank serving the City as applicable. When the Purchasing Division receives the Procurement Card, the cardholder will be notified to make arrangements to pick up the card and sign that he/she has accepted the Procurement Card.
c. Each Procurement Card holder must activate his/her own Procurement Card. Activation instructions are enclosed with the cardholder’s Procurement Card, and activation should be done immediately so the Procurement Card’s initial activation instructions do not expire.
d. It is MANDATORY that all Procurement Card holders review the Procurement Card policies and procedures prior to use. Additionally, the Purchasing Division will conduct training for all cardholders. Each cardholder will be required to sign a form that he/she acknowledges these Procurement Card policy and procedures. e. The Procurement Card is for the exclusive use of the cardholder. The unique Procurement Card that the cardholder receives has both the City and the cardholder’s name embossed on the Procurement Card. No member of the cardholder’s respective 1069

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Department, his/her family, or anyone else may use the Procurement Card. The Procurement Card has been labeled to avoid confusing it with the cardholder’s personal credit cards, with the words “Cal-Card” or “State of California” on the top of the card.

In all other respects, this is a regular credit card. THE CITY’S PROCUREMENT CARD SHALL NOT BE USED FOR PERSONAL PURCHASES. Although the Procurement Card is issued to a cardholder, it remains City property and may be rescinded at any time.

13.3 Procurement Card Use
a. Use of the Procurement Card requires the cardholder adhere to all City policies and procedures on procurement, including competitive bidding and the benefit of volume discounts or volume arrangements that the City has negotiated with selected suppliers over time.
b. This Manual limits single purchases (inclusive of sales tax and shipping charges) to $5,000, or the amount established by the cardholder’s Department for that cardholder. c. In addition, each Procurement Card has a monthly dollar purchasing limit. Each single purchase may be comprised of multiple items, but the total cannot exceed the single purchase dollar limit on the Procurement Card as established by the cardholder’s department. Cardholders shall follow the City’s procedures to ensure that sufficient funds are available in the budget line item, prior to making a purchase. Purchases shall not be split to circumvent purchasing regulations.
d. The cardholder may use the Procurement Card at any merchant that accepts VISA Procurement cards. If a supplier does not accept Procurement Cards, the cardholder may contact the Purchasing Division with the supplier’s contact information so efforts can be made to set up that supplier for Procurement Card acceptance. Before signing the draft, the cardholder shall verify that the dollar amount is correct, and that sales tax has been included. The cardholder will be provided one copy of the signed sales draft, which he/she shall keep for reconciling the monthly Cardholder Statement of Account. e. Any changes to the cardholder’s information shall be immediately reported to the Purchasing Division. The Purchasing Division will notify the issuing bank of the changes and request a new card. If a replacement card is requested, the Procurement Card cardholder will be notified when the new card is available.
f. Contact the Purchasing Division to request a current Procurement Card be changed or cancelled via email or memorandum. Upon notification to the Purchasing Division, cut the Procurement Card in half or return it to the Purchasing Division in person. g. Report lost or stolen cards immediately to the Purchasing Division. 1070

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13.4 Procurement Card Restrictions
a. The Procurement Card must not be used to purchase the following items:
i. Alcoholic beverages
ii. Weapons
iii. Cash advances through bank tellers or teller machines, or money orders iv. Legal fees, court costs, fines, bails, or bonds
v. Fixed asset purchases (an item or equipment with a cost of $15,000 or more) vi. Any personal items and personal services, even if the intent is to repay the City at a later date
vii. Rental or lease payments
viii. Purchase of telephone services including pagers and calling cards, except for business telephone calls charged to a hotel/motel room while traveling on City business
ix. Fees for Upgrades of Air, Hotel (including early check-in), or Auto; unless preapproved by the City Manager or designee x. Using the Procurement Card to circumvent normal purchasing steps in order to buy a product from a relative or close friend

13.5 Unauthorized Use of Procurement Card
a. Unauthorized use of the Procurement Card, including personal use of the Procurement Card or failure to adhere to the Procurement Card Program guidelines, shall result in the cancellation of the cardholder’s use of the Procurement Card. b. Upon an unauthorized use of the Procurement Card, the cardholder and their respective Agency or Department head will have three (3) working days to submit a written justification (email or memorandum) to the Purchasing Officer. c. If a justification is not received or the offense is deemed a violation, the Procurement Card may be suspended. If a second unauthorized use occurs within a six (6) month period, and a written justification is not received or the use is deemed a violation, the cardholder’s use of the Procurement Card system shall be suspended for three (3) months.
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cardholder may result in disciplinary action. Fraudulent use of the Procurement Card may be referred to a law enforcement agency.

13.6 Procedures After Purchase
a. All receipts must be turned in monthly with the Procurement Card statement so they can be reconciled. At the close of each billing cycle, the cardholder will receive a Cardholder Statement of Account. The statement itemizes each transaction that was charged to the Procurement Card. Upon receipt of the statement, the cardholder must complete each of the following actions:
i. Review the statement to verify that the cardholder purchased all items listed, and the amounts charged are correct;
ii. Indicate the account string to be charged for each transaction; iii. Provide a brief description of the item(s) purchased for each transaction. For meals, receipts must itemize the meals ordered and document the meeting type and attendees;
iv. Attach detailed sales receipts reflecting each item purchased; v. If an item purchased is returned, attach the credit voucher to the Statement of Account on which the credit appears;
vi. If charged for an item incorrectly, try to resolve the problem with the merchant first. Provide a complete explanation of the error and attach it to the Statement of Account; and
vii. After completing the above, sign and date the Cardholder Statement of Account.

Thereafter, route the entire documentation to the respective Department Head for signature approval and then route the packet to the Accounts Payable Division for payment processing.
b. Please note that banks issuing Procurement Cards have operating regulations with specific timeframes established in which reversals of charges may be processed. c. Upon separation from the City, it is the responsibility of the cardholder to notify the Purchasing Division of the separation and to surrender the Procurement Card to his/her authorizing manager for return to the Purchasing Division. Procurement Cards are to be returned to the Purchasing Division in person.

DO NOT SEND PROCUREMENT CARDS THROUGH THE INTEROFFICE MAIL. 1072

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14.0 PROCUREMENT SELECTION METHODS

14.1 Debarment
a. Public Contract Code 6109 prohibits contractors or subcontractors to bid on, be awarded, or perform work on a public works project if they are debarred pursuant to Labor Code Sections 1771.1 or 1777.7. Before awarding a contract to a contractor, the Department shall check with the California Department of Industrial Relations (dir.ca.gov), the Department of Consumer Affairs Contractors State License Board (cslb.ca.gov), and the System for Award Management (sam.gov) database to ensure the contractor is currently registered with the State of California to perform the work required and is not debarred from participating in solicitations.

14.2 Electronic Bidding
a. The City’s electronic bid management system shall be utilized to issue City solicitations, unless allowed by Appendix A or the Purchasing Officer deems the solicitation can be procured differently.

14.3 Solicitation Types
FORMAL BID PROCEDURE: The formal bid procedure shall be for all public projects exceeding two hundred thousand dollars ($200,000), or large dollar value procurements for goods or services. Types of procurement vehicles include:
a. Notice Inviting Bids (“NIB”): NIB is a formal procurement process released through the electronic bid management system and award may require a negotiated agreement or contract.
i. Shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.
ii. Shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the City.
iii. Shall be sent electronically, if available, by either facsimile or electronic mail and mailed at least fifteen (15) calendar days before the date of opening the bids to all construction trade journals specified in California Public Contract Code Section 22036.
iv. Shall include a general description of the items to be purchased and shall state where bid forms may be obtained and the date, time, and place of bid opening.
v. Bidders list shall be made available to all responsible, prospective suppliers known to City staff and others requesting, in writing, to participate in the bid process.
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vi. If awarded, the bid will be awarded to the responsible bidder who submits the lowest responsive bid. Unless provided otherwise by law, the City shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. Unless provided otherwise by law, no defect of informality shall void any contract entered into. b. Request for Proposal (“RFP”): RFP may be used for non-public works projects or procurements whenever the City has identified a desired outcome, and the supplier is asked to propose a solution in response to the City’s provided statement of work or specifications. The City may ask the suppliers to quote on the original specifications and to indicate how the quotation would be changed if the supplier's suggestion is followed. RFP procurement is released through the electronic bid management system.
i. This solicitation type will include a combination of the following elements:
• Statement of Work or Specifications
• Schedule or Timelines
• Deliverables
• Sample Contract
• Terms and Conditions
• Special Contractual Requirements
• Submittal Instructions
• Evaluation Criteria
ii. RFPs are not typically appropriate for award to the lowest responsible proposer submitting a responsive proposal.
iii. Award of an agreement or contract may be made to the most technically responsible proposer whose proposal provides the highest rated solution to the City based on the proposal and evaluation criteria and will require a negotiated agreement or contract.
c. Request for Qualifications (“RFQ”): City Council Resolution 2003-011 adopted bidder pre-qualification procedures and documents for public projects to streamline the bidding process by focusing staff efforts on the review and evaluation of only those bid responses submitted by pre­qualified bidders. It is highly recommended that this process be used for high dollar public projects. 1074

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INFORMAL BID PROCEDURES: Small to medium sized public projects as defined in Municipal Code Section 2-6.13 and procurements for goods, services and professional services with a defined list of attributes. Informal bid processes are released through the electronic bid management system and award may require a negotiated agreement or contract. Types of procurement vehicles include:
a. Invitation for Bid (“IFB”):
i. All procurements for small or medium public projects shall follow the procurement procedures found under Municipal Code Section 2-6- 18 Informal Bid Procedure.
ii. All plan holders shall receive an invitation to bid. iii. Informal bid contracts shall, whenever possible, be based on at least three (3) responsive bids.
iv. Shall be awarded to the lowest responsible bidder, consistent with quality and delivery requirements.
v. The City’s standard term for an agreement is three (3) years with two (2) one-year options.

ALTERNATIVE BID PROCEDURES: When formal or informal bidding procedures are not required for goods, services, or professional services due to low dollar value, when the procurement is for an intended outcome versus a defined list of attributes, etc. Types of procurement vehicles include:
a. Informal Quotation (“quote”):
i. The quote procedure may be utilized for the procurement of goods, services, and professional services when the total value (inclusive of all taxes, delivery charges and fees) does not exceed $25,000 (per supplier, project, scope, or type of goods per Agency or Department).
ii. A Purchase Order may be issued for goods and for services with approved documentation.
iii. The City’s standard term for an agreement is three (3) years with two (2) one-year options.
iv. Award is based on best value.
b. Request for Quote (“RFQ”):
i. The RFQ procedure may be used for the procurement of goods, services, and professional services when the total value (inclusive of all taxes, delivery charges and fees) does not exceed $25,000 (per supplier, project, scope, or type of goods or services per Agency or Department).
ii. The City’s standard term for an agreement is three (3) years with two (2) one-year options.
iii. Award is based on best value.
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c. Request for Proposal (“RFP”):

RFP may be used for non-public works projects or procurements whenever the City has identified a desired outcome, and the supplier is asked to propose a solution in response to the City’s provided statement of work or specifications.

The City may ask the suppliers to quote on the original specifications and to indicate how the quotation would be changed if the supplier's suggestion is followed. RFP procurement is released through the electronic bid management system.
i. This solicitation type will include a combination of the following elements:
• Statement of Work or Specifications
• Schedule or Timelines
• Deliverables
• Sample Contract
• Terms and Conditions
• Special Contractual Requirements
• Submittal Instructions
• Evaluation Criteria
ii. RFPs are not typically appropriate for award to the lowest responsible proposer submitting a responsive proposal.
iii. Award of an agreement or contract may be made to the most technically responsible proposer whose proposal provides the highest rated solution to the City based on the proposal and evaluation criteria and will require a negotiated agreement or contract.

DESIGN BUILD
a. The City may utilize a design-build method of procurement for public projects in accordance with California Public Contracting Code Section 22160 et seq. 1076

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15.0 AGREEMENTS AND/OR CONTRACTS
a. The City utilizes written contracts to document each party's obligation and to minimize the City's risks during the performance of work. The written contract often incorporates much more detail than a purchase order alone can provide, especially related to the operating terms and conditions and the details of the transaction itself. Contracts include standard terms and conditions that serve as the framework and a statement of work that serves as the substance of the contract. During the course of the relationship between the parties, the contract serves as a point of reference which may quickly resolve any misunderstanding.
b. When a Purchase Order and/or agreement or contract reaches or exceeds $150,000, an Agenda Report documenting City Council approval needs to be submitted to Purchasing authorizing the expenditure. If the contract is over multiple years (with set dollar values per year), the original Agenda Report submitted to Purchasing is generally sufficient to cover the period of performance of the Purchase Order and/or agreement or contract (inclusive of optional years) if so stated in the original Agenda Report with delegated signature authority to the City Manager.
c. Generally, the following situations are among those requiring written agreements in addition to a Purchase Order:
i. Professional and consulting services
ii. Construction services
iii. Design services
iv. Maintenance services
v. Removal of hazardous materials
vi. Major software license agreements
vii. Work that takes longer than one year to complete
viii. Goods purchased that need to be serviced by the same Supplier d. The City’s contract templates can be found on the City’s Intranet. The City Agency and/or Department shall be responsible for ensuring that the most current contract template is used. Purchasing is responsible for updating the contract templates on the City’s Intranet.

15.1 Terms
a. The City’s standard agreement or contract term for ongoing services is three (3) years with two (2) one-year options, to be exercised at the City's discretion. The City requires all agreements and/or contracts to have defined effective dates. Auto-renewal language is NOT acceptable for agreements or contracts executed by the City. 1077

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15.2 Contingency
a. To mitigate delays resulting from unforeseen circumstances and reduce administrative costs associated with procurements, Departments may request authorization to include and utilize a contingency of up to 10 percent for service contracts or agreements when justified. Any contingencies exceeding the City Manager's authority require City Council approval. The use of a contingency is not automatic and is subject to the review and discretion of the Purchasing Officer based on the nature, scope, complexity, and risk of the procurement.
b. Construction change orders up to 75 percent of the City Council approved contingency amount may be approved by the Agency Head, contingency in excess of 75 percent City Council approved contingency amount shall require City Manager’s signature.

15.3 Department Concurrence
a. Business License:
i. City Agencies and/or Departments submitting agreements and/or contracts must confer with the City’s Business License Department to determine if a business license is required for the work. If the Business License Department indicates that a business license is not required for the proposed work, then documentation needs to be included in the submission to Purchasing.
ii. “Business” includes any business, commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood (whether or not carried on for gain or profit). “Evidence of doing business” shall include but not be limited to a person's use of signs, circulars, cards, telephone books, newspapers, or trade publications to advertise, hold out, or represent that such person is doing business within the City; when any person gives other evidence of transacting and carrying on business within the City; or when such person fails to deny in a sworn statement given to the License Official that such person is not engaged in business within the City after being requested to do so by the License Official. An example of a potential exemption is a nonprofit business exempt from paying Federal income tax by virtue of nonprofit status.
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b. City Attorney: When negotiations between a City Agency and/or Department and a supplier require changes to a contract template (or the supplier 's contract may be substituted for a City contract), documentation that the City Attorney’s Office approved such changes need to be included in the submission to Purchasing. c. Communications and Community Relations Department: Authorization by the Communications and Community Relations Department is required for procurement of all graphic and/or printing services by outside suppliers for:
i. Graphic Design;
ii. Print Services (all outsourced printing); and
iii. Promotional/Advertising Items using the City logo/marketing mark (including promotional items, apparel, etc.).
• The Communications and Community Relations Department will review the request for said services to determine if in-house services can be provided in-lieu of outsourcing or if it is in the best financial and uniformity interest to outsource the work. If the decision is made to outsource the work, the Communications Department will liaison with contracted suppliers. City Agencies and/or Departments must email the following to initiate this request: [email protected].
• For all promotional and/or advertising items, requests with mock proofs must be sent to [email protected] for approval on use of the City logo/marketing mark to ensure uniformity of standards on use are being met prior to the purchase of items.
d. Human Resources: Authorization by the Human Resources Department (“HR”) is required for procurement of all staffing services by outside suppliers for temporary, part-time, interim, or related personnel services (include documentation in the submission to Purchasing that HR has approved the request).
e. Information Technology Services: If the proposed statement of work will impact the City’s Information Technology (“IT”) hardware or software infrastructure, include documentation in the submission to the Purchasing Division that IT has approved the services.
f. Risk Management: Subject to Risk Management Department approval, insurance requirements may be waived in contract when there is low risk to the City. If an insurance provision is waived by the Risk Management Department, include documentation from the Risk Management Department of such waiver.
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16.0 PURCHASE ORDER EXCEPTIONS
a. Invoices may not be utilized as backup documentation with a requisition to request generation of a Purchase Order (“PO”). Invoices must be approved utilizing the Accounts Payable approval process and submitted directly to the Accounts Payable Department. b. Some purchases are not readily adaptable to the PO process. These purchases are usually for items where the competitive process is not applicable. These purchase exceptions are submitted to the Accounts Payable Division for payment processing. The following are allowable exceptions*:
• Asset seizure payments/evidence reimbursements
• City, County, State, Federal, or other municipality’s services • City Procurement Cards
• Collection services
• Office and Janitorial supplies approved via Staples, Grainger, Waxie, Amazon • Dues and Memberships
• Digital Subscriptions, such as newsletters. Digital Subscriptions Exclude IT Software Renewals and Maintenance Agreements
• Escrow fees, closing and rehabilitation loans (wire transfers) • Federal Express service & United Parcel Service (Delivery Services) • Fiscal agent trustee fee
• Instructors and sports officials
• Leases and rentals
• Legal services
• Display and recruitment advertising
• Mail sorting services
• Payroll deductions
• Physical exams and medical treatments
• Post Office fees and permits
• Property acquisition costs
• Property profile (lot book reports)
• Refunds, rebates, and reimbursements (including petty cash) • Relocation payments
• School Tuition
• Sponsorships
• Temporary agency employees
• Travel, conferences, meeting, and training expenses
• Utility deposits and services
*Purchasing reserves the right to require an agreement and/or Purchase Order be issued for any of the above-listed items, if deemed necessary or in the best interests of the City. 1080
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SUPPLEMENTAL

REFERENCES

ATTACHMENTS
• Appendix A – Purchasing Thresholds
• Appendix B – Authorization Recap
• Appendix C – Contract Matrix

REVISIONS
Review Date Revision
June 30, 2023
June 30, 2024
March 18, 2025
June 18, 2025
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APPENDIX A

PURCHASING THRESHOLDS
All values below include all taxes, fees, and shipping/freight charges. a. $0 - $25,000 (Goods, Services and Professional Services):
i. Although the use of the electronic bid management system is not required, the requisition requires the submittal of a minimum of one (1) Quote. ii. For services and professional services, including all applicable documents (e.g., a valid Business License, Risk Management approved insurance, etc.). iii. The award for goods is based on the lowest responsive and responsible bidder and the best value for professional services.
iv. A purchase order for goods, services, or professional services may be issued. b. $25,001 - $75,000 (Goods, Services and Professional Services):
i. Use of the electronic bid management system is not required. ii. Whenever possible, shall be based on three (3) or more responses of an RFQ or an RFP process. To be considered competitive, you should obtain at least two (2) responses and submit them with the requisition.
iii. The award for goods is based on the lowest responsive and responsible bidder and the best value for professional services.
iv. For services, a negotiated agreement or contract is required. c. $75,001 - $150,000 (Goods, Services and Professional Services):
i. Use of the electronic bid management system to issue a NIB or an RFP. ii. Newspaper advertisement is not required.
iii. Award based on best value, department required to justify selection. iv. For services, an agreement or contract is required. d. $150,001 and above (Goods, Services and Professional Services):
i. Use of the electronic bid management system to issue NIB or RFP. ii. Bid awarded based on best value. Department required to justify selection. iii. Professional services solicitation requires procurement by RFP procurement and evaluation based on the professional qualifications necessary for the satisfactory performance of the services needed.
iv. RFP evaluation factors and their relative importance must be identified in the RFP. The City must have a written method for conducting the evaluation and selection of the supplier.
v. City Council action is required.
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PUBLIC PROJECTS:

With reference to Public Contract Code sections 22030 through 22045: Article 3. Public Projects:

Alternative Procedure
a. Up to $75,000 (IFB)
May be performed {1} with City employees, or {2} with a qualified, properly licensed contractor using a negotiated Purchase Order and agreement or contract. i. If City staff {1} is used, proper codes for Accounting and charging time and material is required.
ii. If a contractor {2} is used and project exceeds $1,000, prevailing wages are required. iii. Payment bond equal to 100% of the contract required when >$25,000. A performance bond is recommended.
iv. A negotiated contract is required.
b. $75,001 - $220,000 (IFB):
i. Staff must follow the Act and the Informal Bid Procedure (see Purchasing Policies and Procedures and Purchasing System).
ii. Prevailing Wages are required.
iii. Bid bond equal to 10% of the bid price and payment bond equal to the contract price are required. Performance bond is strongly recommended.
iv. A negotiated contract is required.
c. $220,001 and above (NIB):
i. Staff must follow the Act and the Formal Bid Procedure (see Purchasing Policies and Procedures and Purchasing System).
ii. Prevailing Wages are required.
iii. Bid bond equal to 10% of the bid price and payment bond equal to the contract price are required. Performance bond is strongly recommended.
iv. A negotiated contract is required.
d. City Council action required for any procurement exceeding $150,000. i. Once a Purchase Order and/or agreement or contract exceeds the $150,000, City Council approval is required for each future dollar amendment.
• This includes each optional year unless the total dollar value approved by City Council for authority delegated to City Manager is inclusive of the dollar values of all optional years. Once that dollar value threshold has been exceeded the agreement is required to go back to City Council for approval. • The $150,000 threshold is not limited to a fiscal year and it does not reset to zero at the beginning of the new fiscal year.
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APPENDIX B

AUTHORIZATION RECAP
Dollar
Threshold Purchase Type* Agreement Type* Authorization Requirement $0 - $25,000 Goods, Services and
Professional Services Purchase Order
Agency or Department
Head, City Manager or
Designee
$25,001 -
$75,000
Goods Purchase Order
Agency or Department
Head, City Manager or
Designee
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order City Manager or Designee
$75,001 -
$150,000
Goods Purchase Order
Agency or Department
Head, City Manager or
Designee
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order City Manager or Designee
$150,001 +
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order
City Council (Approval)
City Manager or Designee
(Executes Agreement)
For examples and thresholds for Purchasing and Agreement Types, see Appendix A, Purchasing Thresholds
i. Executive Director Community Life & Culture is authorized to execute Entertainment Agreements or Contracts up to $10,000.
ii. Executive Director of Public Works is authorized to execute Public Works Agency operations related purchase agreements and contracts up to $50,000. iii. Utilities General Manager is authorized to execute Water & Sewer operations related Agreements or Contracts up to $50,000.
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APPENDIX C
CITY OF ONTARIO - CONTRACT MATRIX - JULY 2024

TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model Construction Contract
Documents
Model Document No. 29437851
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Required for
contracts more than
$150,000
(OMC § 2-6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects
Model Short Form Construction
Contract
Model Document No. 33225207
Intended for low risk public projects or maintenance projects ($200,000 or less) such as:
• Maintenance or repair of streets or sewers
• Construction, maintenance, or repair of water facilities or water works
• All public projects, defined above, which do not require formal bidding ($200,000 or less)
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
Up to $200,000 Informal bidding over
$200,000 (OMC § 2-

6.18)
Alternative Bid
Procedure for $60,000
or less (OMC § 2-6.19)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Can be used for “emergency”
contracts if project is low cost
and straightforward (Pub. Con.

Code § 22050)
Model Engineering Department
Construction Contract Documents -
Caltrans Standard Specification
Model Document No. 29440147
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to 2010 Caltrans Standard Specifications
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects built pursuant to 2010
Caltrans Standard Specifications
Model Engineering Department
Construction Contract Documents -
Greenbook
Model Document No. 33484528
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to Greenbook Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects built pursuant to
Greenbook
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TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model OMUC Construction
Contract Documents
Model Document No. 33349674
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for OMUC projects
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Always use on formally bid
projects
Model Design Services
Agreement
Model Document No. 33241256
Engineering or architectural design services for a public facility or structure.

Note: Formerly “Model Architect Services Agreement”
Required for all
contracts over
$150,000
Unlimited Qualifications-based
selection (OMC § 2-

6.15)
Not usually required, but can be if
the project dictates
• Will usually involve negotiation
with architect on terms and scope
• Contract awarded based on
demonstrated competence and
qualifications to satisfactorily
perform the work (Gov. Code §§
4526-4529)
Model Professional Services
Agreement
Model Document No. 33225203
Professional consultant (independent contractor) work, such as:
• Financial
• Economic
• Accounting
• Legal
• Engineering (non-design)
• Administrative
Required for all
contracts over
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14);
Qualifications based
selection (OMC § 2-

6.15)
Not usually required, but can be if
the project dictates
Model Maintenance Services
Agreement
Model Document No. 33225206
“Maintenance work” includes all of the following:
(1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes
(2) Minor repainting
(3) Resurfacing of streets and highways at less than one inch (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems
(5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• Prevailing wages must be paid on
most maintenance projects.

Some exceptions include:
− Janitorial/Custodian
services
− Security/Watchman
services
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TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model General Services
Agreement
Model Document No. 40935197.1
“General Services” are those which are not considered Professional Services or Maintenance work. Some examples of situations for which a General Services Agreement would be appropriate are:
• Party rentals (i.e., tables and chairs)
• Basic computer services (i.e., off the shelf software) Alarm monitoring Services
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Not usually required, but can be if
the project dictates
• If the services contracted for are
not Professional Services or
Maintenance Services, then it
will most likely fall under a
General Services Agreement (if
there is any question, consult
with the City Attorney’s office)
Model IFB Maintenance Services
Agreement
Model Document No. 33437079
“Maintenance work” (as defined by Pub. Con. Code § 22000, above) when informal or formal bidding is desired
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• Prevailing wages must be paid on
most maintenance projects.

Some exceptions include:
− Janitorial/Custodian
services
− Security/Watchman
services
• Use on Informal/Formal bid
projects
Model Letter Agreement
Model Document No. 33241407
For use on small projects (not included in definition of “public project” under Pub. Con. Code § 22000) such as professional and nonprofessional services involving little money, complexity, and risk to the City.

N/A For services under
$25,000 only
Formal, informal, or
alternative procedure
(OMC §§ 2-6.14);
Qualifications based
selection (OMC § 2-

6.15)
Not required Check with Risk Management for
insurance/bond requirements
Model Equipment Purchase
Agreement
Model Document No. 29443677
Equipment purchases only Required for
contracts more than
$150,000
Unlimited Any formal, informal,
or alternative procedure
(OMC §§ 2-6.16)
Not required Check with Risk Management for
insurance/bond requirements
Model Amendment to NonConstruction Agreements
Model Document No. 9423414
To be used to amend all non-construction agreements Required when total value of contract or
amendment is
$150,000 or more
Unlimited N/A N/A Check with Risk Management for
insurance/bond requirements that may
be triggered by new work added by
amendment
Model Goods & Services Agreement
Model Document No. 31872872
To be used when the City desires vendor to sell the materials and/or equipment to the City, and render services related to those goods Required for
contracts more than
$150,000
Unlimited Any formal, informal,
or alternative procedure
(OMC §§ 2-6.16)
Not required Check with Risk Management for
insurance/bond requirements
Model Construction Contract
Documents w/ CDBG
Model Document No. 31389538
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to CDBG Specifications Required for
contracts more than
$150,000
(OMC § 2-6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects
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City of Ontario
Purchasing Policies and Procedures Manual
REVISED July 2024
NOTES:

1. Prevailing Wages must be paid on any “public works” or “maintenance” contract in excess of $1,000. Note: This is a broader definition than “public project” for public bidding purposes (See Labor Code §§ 1720, et seq. and 1771; 8 CCR §§ 16000 and 16001(f); and Department of Industrial Relations (“DIR”) Precedential Decision List effective January 8, 2001 at www.dir.ca.gov). Please note DIR has set wage rates for some “professional” services performed on public works and maintenance projects.

2. Performance Bonds are generally not required by state law; however, they are strongly recommended to secure performance by the contractor and full and adequate completion of the project.

3. Risk Management must approve all insurance/bond waivers.

4. Payment Bonds are required by law for projects involving: (1) construction, alterations, additions, or repairs; (2) seeding, sodding, or planting for landscaping purposes; (3) filling, leveling, or grading work; and (4) demolition or building removal work (See Civil Code Sections 8038 and 9550).

REVISED July 2024
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PURPOSE
This policy is intended to: (1) describe the policies and procedures utilized in the City’s capital asset management system; (2) put in place guidelines for accounting and depreciating of the City’s capital asset; and (3) list and describe the type of suitable capital assets and their estimated useful life.

The capital asset policy and practices are based in accordance with generally accepted accounting principles and closely conform to Government Finance Officers Association of recommended accounting practices. The primary goals of these policies are:

1. To ensure that the City’s capital assets are properly accounted for;

2. To establish a consistent and cost–effective method for accounting of the City’s capital assets; and

3. To assure compliance with generally accepted accounting principles.

BACKGROUND
GFOA recommends that state and local governments consider the following guidelines in establishing capitalization thresholds:

1. Potentially capitalizable items should only be capitalized only if they have an estimated useful life of at least two years following the date of acquisition;

2. Capitalization thresholds are best applied to individual items rather than to groups of similar items (e.g., desks and tables), unless the effect of doing so would be to eliminate a significant portion of total capital assets (e.g., books of a library district);

3. In no case should a government establish a capitalization threshold of less than $15,000 for any individual item;

SUBJECT
Capital Assets Administration Policy
Number: FSA-010
Effective Date: July 1, 2026
Revision Date: TBD
Policy Owner(s):

Financial Services Agency
Approved by:
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4. In establishing capitalization thresholds, governments that are recipients of federal awards should be aware of federal requirements that prevent the use of capitalization thresholds in excess of certain specified maximum amounts (i.e., currently $10,000) for purposes of federal reimbursement; and

5. Governments should exercise control over potentially capitalizable items that fall under the operative capitalization threshold.

DEFINITIONS
Capital Assets: Capital assets (fixed assets) include land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles, infrastructure, easements, works of art and historical treasures. Capital assets are also referred to as “capital outlay”.

Capital Improvement Project (CIP): A long-term project (usually of five years) for significant projects such as streets, bridges, park improvements, building construction, and various major facility repairs.

Capitalization: Capitalization of a capital asset occurs when the cost of the capital asset meets the “threshold” and the “estimated useful life” set in the organizational guidelines.

Condition Assessment: A physical assessment of the condition of infrastructure assets that are capitalized under the Modified Approach. The results of the assessment are summarized using a measurement scale. Under the Modified Approach, the condition assessment must be performed every three years.

Depreciation: Depreciation is the process of allocating the cost of tangible property over a period of time, rather than recognizing the cost as an expense in the year of acquisition. Generally, at the end of an asset’s life, the sum of the amounts charged for depreciation in each accounting period (accumulated depreciation) will equal the original cost less salvage value.

Donated Capital Asset: Donated assets are contributed to a government. The donated assets are treated like a capital asset (using the fair market value).

Estimated Useful Life: Estimated useful life means the estimated number of months or years that an asset will be able to be used for the purpose for which it was purchased. In determining useful life, consider the asset’s present condition, use of the asset, construction type, maintenance policy, and how long it is expected to meet service demands.

Fair Market Value (FMV): The amount that would be paid if the item were sold is currently in a transaction between a willing buyer and a willing seller.

Full-Month Convention Method: The Full-Month Convention Method is a form of straight-line depreciation.

It provides an averaging guideline for capital assets that are not purchased at the beginning of the fiscal year.

Under the Full-Month Convention Method, property placed in service at any time during a given month is treated as if it had been placed in service on the first day of that month. This allows depreciation to be taken for the entire month in which the asset is placed in service. If the asset is disposed of before the end of the estimated useful life, no depreciation is allowed for the month of disposition.

Historical Cost: The historical cost of a capital asset includes the cost or estimated cost at the time of acquisition, freight charges, installation and site preparation charges, and the cost of any subsequent additions or improvements, excluding repairs.
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Infrastructure Assets: Infrastructure assets are long-lived capital assets that normally can be preserved for a significant greater number of years than most capital assets (non-infrastructure assets). Infrastructure assets are normally stationary in nature and are of value only to the government entity. They are basic physical assets that allow the government entity to function. Examples include street systems, water purification and distribution systems, sewer collection and treatment systems, parks and recreation lands and improvement systems, storm water conveyance systems, bridges, tunnels, dams, and buildings combined with the site amenities such as parking and landscaped areas used by the government entity in the conduct of its business.

Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals, and pavement markings), landscaping and land.

Subscription-Based Information Technology Arrangements (SBITA): A Subscription-Based Information Technology Arrangement (SBITA) is a contract that conveys control of the right to use another party’s information technology software, alone or in combination with tangible capital assets, for a period of time in an exchange or exchange-like transaction. Examples include cloud-based software subscriptions, hosted software solutions, and software-as-a-service (SaaS) arrangements.

SBITAs shall be recognized and accounted for in accordance with generally accepted accounting principles and applicable Governmental Accounting Standards Board (GASB) guidance.

Leases: Effective July 1, 2026, the City will capitalize leases with an initial individual contract value of $50,000 or greater and a lease term greater than one (1) year.

The lease liability shall be measured as the present value of payments expected to be made during the lease term, including:
• Fixed lease payments;
• Variable payments that depend on an index or rate;
• Reasonably certain purchase options;
• Payments associated with termination penalties, if applicable.

The corresponding right-to-use lease asset shall be measured as the initial amount of the lease liability, adjusted for:
• Lease payments made at or before commencement of the lease term; • Initial direct costs;
• Certain incentives received from the lessor.

Short-term leases, defined as leases with a maximum possible term of twelve (12) months or less, including options to extend regardless of the likelihood of exercise, shall not be capitalized and shall instead be recognized as expenditures or expenses as payments are made.

Lease assets shall be amortized over the shorter of the lease term or the useful life of the underlying asset using the straight-line method unless another systematic and rational basis is more representative of the pattern of use.

The City shall periodically evaluate lease agreements for modifications, terminations, impairments, or other changes requiring remeasurement in accordance with generally accepted accounting principles.

Modified Approach: The Modified Approach is the election not to depreciate infrastructure assets that are part of a network or subsystem of a network {eligible infrastructure assets (i.e. streets – concrete and asphalt pavements)} that meet two specific requirements.
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1. The government entity manages the eligible infrastructure assets using an asset management system that has certain specified characteristics. To meet this requirement the asset management should:
a. Have an up-to-date inventory of eligible infrastructure assets within the network or subsystem for which the modified approach is adopted.
b. Perform or obtain condition assessments on infrastructure assets and summarize the results using a measurement scale. The condition assessment must be performed at least once every three years. The condition assessments must be replicable (conducted using methods that would allow different measures to reach substantially similar results). c. Each year, the government entity must estimate the amount needed to maintain and preserve infrastructure assets at a condition level established and disclosed by the government entity.

2. The government entity documents that the eligible infrastructure assets are being preserved approximately at (or above) a condition level established and disclosed by that government entity.

If any of the above conditions are not met, reporting must revert back to the depreciation method.

Salvage Value: The salvage value of an asset is the value it is expected to have when it is no longer useful for its intended purpose. In other words, the salvage value is the estimated amount for which the asset could be sold at the end of its useful life.

Straight-Line Method: The straight-line method is the simplest and most commonly used for calculating depreciation. It can be used for any depreciable property. Under the straight-line method, the basis of the asset is written off evenly over the useful life of the asset. The same amount of depreciation is taken each year. In general, the amount of annual depreciation is determined by dividing an asset’s depreciable cost by its estimated life.

The total amount depreciated can never exceed the asset’s historic cost less salvage value. At the end of the asset’s estimated life, the salvage value will remain.

For example, a $30,000 copier is placed in service on March 16, 2025. It has an estimated life of five years and a salvage value of $2,000. The depreciation calculation for the straight-line method would be:

Original Cost $30,000
Salvage Value 2,000
Adjusted Basis $28,000
Estimated Useful Life 5 Years
Depreciation per Year $5,600
Threshold: The threshold is the dollar amount that an asset must equal or exceed if that asset is to be capitalized.

Otherwise, the item would be considered as an expense at the time of acquisition.

Project Manager: The person(s) within a given City department who is responsible for managing a capital improvement project from beginning to end at the department level. This includes, but is not limited to, the planning, execution, monitoring, and managing the day-to-day operations of projects that align with the City’s vision and goals (see Roles and Responsibilities attachment for further details). 1092
Project Administrator: The person(s) within the Financial Services Agency that oversees the Citywide capital improvement program, including the financial aspects (funding, budgetary, and reporting), and ensures it aligns with the City’s vision and goals (see Roles and Responsibilities attachment for further details).

THRESHOLD
Effective July 1, 2026, the City of Ontario will capitalize all individual assets and infrastructure with a cost of $30,000 (*except for capital assets purchased with federal grant money with a cost over $10,000 should be capitalized) and $50,000 respectively that has an estimated useful life of five (5) years or more (with the exception of police vehicles which have a useful life of 4 years and 100,000 miles).

Individual assets that cost less than $30,000, but that operate as part of a network system will be capitalized in the aggregate, using the group method, if the estimated average useful life of the individual asset is five years or more. A network is determined to be where individual components may be below $30,000 but are interdependent and the overriding value to the City is on the entire network and not the individual assets (e.g. computer systems and telephone systems).

SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA) Effective July 1, 2026, the City will capitalize Subscription-Based Information Technology Arrangements (SBITAs) with an initial subscription term cost of $150,000 or greater and an estimated useful life or subscription term of greater than one (1) year.

The capitalization amount shall include:
• Initial implementation costs incurred during the application development stage; • Subscription payments required by the contract;
• Ancillary charges are necessary to place the subscription asset into service.

Costs incurred during the preliminary project stage and post-implementation operational stage, including training and maintenance, shall be expensed as incurred.

Short-term SBITAs, defined as agreements with a maximum possible term of twelve (12) months or less, including options to extend regardless of likelihood of exercise, shall not be capitalized.

The City shall amortize the SBITA asset over the shorter of the subscription term or the estimated useful life of the underlying information technology asset using the straight-line method.

VALUATION
In accordance with generally accepted accounting principles, the City will value its capital assets at historical cost. Historical cost includes the cost or estimated cost at the time of acquisition, freight charges, installation and site preparation charges, and the cost of any subsequent additions or improvements, excluding repairs. If a capital asset is donated to City, the value of the asset will be based on the fair market value at the time the asset is donated.
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CAPITAL ASSET INVENTORY REPORT
As part of the financial audit, the Accounting division of the Financial Services Agency shall submit a capital asset report to the City’s external auditor on an annual basis. The report will include the following information:
• Type of asset (i.e. land, building, infrastructure, etc.) • Date of acquisition
• Funding source (if acquired with grant funds)
• Acquisition cost
• Location of the asset
• Estimated useful life
• Annual depreciation
• Accumulated depreciation

DEPRECIATION
The City will use the Full-Month Convention Method as its “basic approach” (standard approach) to depreciate capital assets using the schedule of Estimated Useful Lives listed in Schedules A and B.

The Modified Approach, which does not require depreciation, will be used on infrastructure assets whenever applicable.

ESTIMATED USEFUL LIVES
The following ranges are guidelines in setting estimated useful lives for depreciating assets. • Building and Structures 20-99 Years
• Intangible Assets – software/SBITA 5 Years
• Right-to-Use Lease Assets 3-10 Years (or lease term)
• Vehicles 4-15 Years**
• Other Equipment 5-25 Years
• Infrastructure 20-50 Years
**Police vehicles are currently replaced approximately every four (4) years. These vehicles will have an estimated useful life of four (4) years or 100,000 miles
(See Exhibits A and B for a detailed table of Recommended Estimated Useful Lives for non-infrastructure and infrastructure assets.)
CAPITAL vs. REPAIR AND MAINTENANCE EXPENSE
The following criteria are the basis for distinguishing costs as either capital or repair and maintenance expense:

1. With respect to improvements on non-infrastructure and infrastructure capital assets, under the Basic Approach, expenditures should be capitalized if:
a. The estimated life of the asset is extended by more than 25%; or 1094
b. The cost results in an increase in the capacity of the assets; or c. The efficiency of the asset is increased by more than 10%; or d. It significantly changes the character of the asset; or e. In the case of streets and roads – if the work completed impacts the “base” structure.

Otherwise, the expenditures are classified as repair and maintenance and not capitalized.

2. With respect to improvements on infrastructure capital assets under the Modified Approach, costs should be capitalized if expenditures increase the capacity or efficiency of an infrastructure.

Otherwise, costs that preserve the useful life of an infrastructure asset are classified as expenditures and not capitalized.

INVENTORY
For internal control purposes, the City will maintain an inventory listing of certain assets (controlled equipment) that do not meet the capitalization amount of $30,000. Controlled equipment includes items that should be specifically accounted for and inventoried periodically due to the high re-sale value of the equipment and potential risk of theft. Controlled equipment may include items such as computers, construction equipment, and other office equipment.

The Agency Head for each City Agency/Department is responsible for all controlled equipment (inventory) within their respective areas of responsibility.

DISPOSAL AND TRANSFER OF CITY ASSETS
Disposition of City assets will be performed in accordance with the guidelines outlined in Section 2-6.21 of the Ontario Municipal Code.

Impairment of Capital Assets (No Value Items):

When the Department Head or designee determines that specific assets or surplus of minimal value to the City due to spoilage, obsolescence, or other cause or where the Department Head or designee determines that the cost of disposal of such assets or surplus would exceed the recovery value, the Department Head or designee shall dispose of the same in such a manner as he or she deems appropriate in accordance with Section 2-6.21 of the Ontario Municipal Code. Please refer to the City’s Purchasing Policies and Procedures (FSA-002) for additional information on the surplus of City assets.

SUPPLEMENTAL

ATTACHMENTS
• Roles and Responsibilities of Project Manager and Project Administrator • Schedule A – Recommended Estimated Useful Lives for Non-Infrastructure • Schedule B – Recommended Estimated Useful Lives for Infrastructure 1095

REFERENCES

REVISIONS
Review Date Revision
6/24/2019 Amendment of policy approved by City Council on 6/24/2019 6/11/2025 Amendment of policy approved by City Council on 6/18/2025 5/27/2026 Amendment of policy approved by City Council on TBD 1096
Capital Assets Administration Policy
Roles and Responsibilities
Project Manager (City Agency/Department)

1. Assists in managing the day-to-day operations of assigned projects, including prioritizing and scheduling project activities.

2. Assists in the development of the project’s 5-Year Capital Improvement Program budget, including coordination with the Project Administrator in the Financial Services Agency on the funding needs – current and future.

3. Manages the contracts and agreements related to the assigned project.

4. Reviews and approves invoices to ensure costs are assigned to the correct project.

5. Coordinates and monitors all items related to retention, stop order notices, etc.

6. Monitors and tracks project expenditures to ensure project is staying within the authorized budget amount.

7. Communicates with the Project Administrator(s) in the Financial Services Agency on the timing of the project and updates as requested. This includes, but not limited to, budget overages and shortages, changes to the project timeline, project funding updates, status of project at year-end to close out, change orders, cancelled or rolled over status regarding purchase orders, etc.

8. Follows the City of Ontario and Financial Services’ policies and procedures, including the Purchasing Policies and Procedures (FSA-002).

9. If an assigned project is funded (full or partial) from a grant, the City’s Grants Administrative Policy (FSA-009) must be followed for all items funded by the grant.

10. Assists the Project Administrator(s) in the Financial Services Agency as needed during any audits (financial or internal), cash flow and funding forecasts, budgetary request, and any other requested items.

Project Administrator (Financial Services Agency)

1. Provides guidance to the Project Manager on funding availability, establishment of budget, and monitoring of expenditures relating to the project.

2. Will provide an assigned Project ID for the project after request is submitted by the Department.

3. Compiles and publishes the City’s financial reports, including the Annual Operating Budget and the 5- Year Capital Improvement Program (CIP), the Annual Comprehensive Financial Report (ACFR), Single Audit, and quarterly budget updates.

4. Coordinates with the Project Manager on the project close out or completion and reviews the project to determine if it will be capitalized in the financial system. If the project is to be capitalized, is responsible for the project costs to be recorded properly in the financial system.

5. Facilitate and coordinate any and all financial audits.

6. Reconciliation and authorization of all retention payments, if applicable.

7. Provide training regarding capital assets and financial systems to City departmental staff to improve processes and workflow and to ensure compliance with City policies, as well as Generally Accepted Accounting Principles (GAAP) and best practices of internal control. 1097

SCHEDULE A

CAPITAL ASSETS
Recommended Estimated Useful Lives
Non-Infrastructure
Depreciable
Life
Asset Type in years
Furniture, Office Equipment 5
Computer Hardware 5
Telephone Equipment 10
Cars and light trucks 5
Police Cars 4
Fire Trucks 12
Dump Trucks 10
Buildings-Temporary 25
Buildings 40
HVAC Systems 15
Roofing 20
Carpet Replacement 7
Electrical\Plumbing 30
Kitchen Equipment 12
Heavy Construction Equipment 10
Engineering, /Scientific Equipment 10
Firefighting Equipment 10
Police Special Equipment 10
Medical Equipment 5
Traffic Control Equipment 20
Radio, communications equipment 5
Recreational\Athletic Equipment 10
Artwork 7
Outdoor Equipment 20
Custodial Equipment 12
Grounds Equipment 10
Land Improvements – structure 20
Land Improvements – groundwork 30
Landfill Disposal Systems 25
Land – Real Estate Infinite
Sewerage treatment plants 25
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SCHEDULE B

CAPITAL ASSETS
Recommended Estimated Useful Lives
Infrastructure
CURRENT THRESHOLD: $50,000
Depreciable
Life
Asset Type in years
Easements no depreciation
Drainage Systems 40
Water Systems
Pipelines 25
Reservoirs/Dams 50
Wells (including building) 35
Booster Stations (including building) 30
Misc. appurtenances (valves, hydrants, etc.) 25
Sewerage disposal Works System
Pipelines 25
Lift Stations (including building) 30
Waterway
Levees and canals (unlined) no depreciation
Canal Lining 30
Dams
Concrete 50
Steel, Sheetpile 30
Earthen embankment no depreciation
Roads/Streets
Paved 40
Asphalt – rural 40
Asphalt – paved 20
Non-paved
Sidewalks/Ramps 40
Curbs/Gutters 40
Traffic
Traffic Signals 40
Street Lights 40
Storm Drains 50
Manhole 99
Fiber Optics 30 Years
1099
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ESTABLISHING PROCEDURES FOR THE DISPOSITION

OF UNCLAIMED FUNDS PURSUANT TO CALIFORNIA GOVERNMENT
CODE SECTIONS 50050 THROUGH 50056 AND AUTHORIZING THE

ADMINISTRATIVE TRANSFER OF CERTAIN UNCLAIMED FUNDS TO
THE GENERAL FUND.

RECITALS
WHEREAS, California Government Code (“GC”) sections 50050 through 50056 establish procedures for the disposition of money that has remained unclaimed in the treasury of the City of Ontario (“City”) for a period of three (3) years or more; and WHEREAS, GC section 50050 requires the City to publish notice of such unclaimed funds and provide an opportunity for interested parties to submit claims prior to the funds becoming the property of the local agency; and WHEREAS, GC section 50053 provides that, after unclaimed funds become the property of the City, the City Council may transfer such funds to the General Fund; and WHEREAS, the City periodically holds unclaimed checks, deposits, bond refunds, and other funds that satisfy the requirements of GC sections 50050 through 50056; and WHEREAS, the City Council desires to establish an efficient administrative process for the disposition and transfer of qualifying unclaimed funds following completion of all statutory notice and claims procedures; and
WHEREAS, contemporaneously with adoption of this Resolution, the City Council is adopting the Escheatment Policy for Unclaimed Funds attached hereto as Exhibit A and incorporated herein by this reference.

WHEREAS, the City Council desires to limit the administrative authority granted herein to individual unclaimed fund items or aggregate batch transfers at one time that do not exceed one hundred fifty thousand dollars ($150,000), with any amounts exceeding this threshold requiring City Council approval.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES HEREBY RESOLVE AND FIND AS FOLLOWS:

SECTION 1. Incorporation of Recitals. The above recitals are true and correct, and are incorporated herein by this reference.

SECTION 2. Findings. The City Council hereby finds the following:
1100
a. Efficiency. Authorizing designated City officials to administer and implement the transfer of qualifying unclaimed funds pursuant to this Resolution promotes administrative efficiency, while maintaining compliance with applicable law and preserving City Council oversight through annual reporting requirements. b. Adoption. Adoption of this Resolution constitutes the establishment of an administrative procedure for implementation of Government Code sections 50050 through 50056 and does not authorize any physical activity, development, or other activity that may result in a direct or reasonably foreseeable indirect physical change in the environment.

SECTION 3. Authorization. The City Council hereby authorizes and directs the City Manager, Executive Director of Finance, Assistant Finance Director, Deputy Finance Director, City Treasurer, and their respective designees ("Authorized Officials") to administer and implement the transfer of unclaimed funds that have become the property of the City as set forth in the Escheatment Policy for Unclaimed Funds pursuant to GC section 50053 (and after compliance with GC sections 50050 through 50056), provided that the amount of any individual unclaimed item or aggregate batch transfer at one time does not exceed one hundred fifty thousand dollars ($150,000). a. Ministerial Nature. The authority granted by this Resolution is ministerial in nature, and shall apply only after all statutory notice and claims procedures have been completed. The Authorized Officials may transfer unclaimed funds to the General Fund in accordance with the Escheatment Policy for Unclaimed Funds. Any individual unclaimed item or aggregate batch transfer exceeding one hundred fifty thousand dollars ($150,000) shall require approval by the City Council, which may be placed on the City Council’s Consent Calendar.
b. Duties. The Authorized Officials are authorized to take all actions reasonably necessary to administer and implement the City's Escheatment Policy for Unclaimed Funds and this Resolution including: (1) publishing and administering notices required by law; (2) receiving and evaluating claims submitted prior to expiration of the statutory claim period; (3) approving payment of valid claims supported by adequate documentation; (4) maintaining records of all claims, denials, and transfers; and (5) transferring qualifying unclaimed funds to the General Fund in accordance with this Resolution.
c. Retained Authority. Nothing in this Resolution shall limit the authority of the City Council to review, direct, modify, or otherwise act upon the disposition of unclaimed funds at any time.

SECTION 4. Annual Report. The Executive Director of Finance shall provide an informational report to the City Council within ninety (90) days following the end of each fiscal year identifying: (a) the total amount of unclaimed funds transferred pursuant to this Resolution; (b) the number and amount of claims paid; (c) the number and amount of claims denied; and (d) any issues arising from administration of the City's Escheatment Policy for Unclaimed Funds.
1101
SECTION 5. Compliance with Law. Nothing in this Resolution shall be construed to alter, waive, or supersede the requirements of GC sections 50050 through 50056 or any other applicable provision of law governing the disposition of public funds.

SECTION 6. California Environmental Quality Act ("CEQA"). The City Council finds that adoption of this Resolution is not subject to CEQA pursuant to CEQA Guidelines Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) because this Resolution establishes administrative procedures for the disposition and transfer of unclaimed funds and has no potential for causing either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

SECTION 7. Severability. If any section, subsection, sentence, clause, phrase, or portion of this Resolution, or its application to any person or circumstance, is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, and portion thereof irrespective of the fact that any one or more portions may be declared invalid or unconstitutional.

SECTION 8. Certification. The City Clerk shall certify to the passage and adoption of this Resolution; cause the same to be entered among the original resolutions of the City; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which time same is passed and adopted.

SECTION 9. Effective Date. This Resolution is effective immediately upon adoption.

PASSED, APPROVED, AND ADOPTED this 23rd day of June 2026. _
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
1102
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
1103

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2026- was duly passed and adopted by the City Council of the City of Ontario at their special meeting held June 23, 2026 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2026- duly passed and adopted by the Ontario City Council at their special meeting held June 23, 2026. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
1104

CITY OF ONTARIO

ADMINISTRATIVE POLICY

[POLICY FSA-011] (EFF 07/26) 1
I. PURPOSE
The purpose of the Escheatment Policy is to establish guidelines for the proper accounting and disposition of unclaimed funds in accordance with government statutes.

II. SCOPE
This policy applies to all unclaimed funds held by the City of Ontario (“City”) for the benefit of vendors, customers, employees, governmental agencies and other payment recipients. This includes, but is not limited to:
• Outstanding Checks
• Deposit Funds and Bond Funds: Held in trust by the City and subsequently released.

III. PROCEDURE
Pursuant to Government Code Sections 50050 through 50056, funds that remain unclaimed for three years from the date of issuance will become the property of the City after the procedures identified herein have been undertaken. Unclaimed funds consist of funds which are not the property of the City, but remain in the City Treasury for three or more years without a claim being filed by the legal owner(s).

SUBJECT
Escheatment Policy
for Unclaimed Funds
Number: FSA-011
Effective Date: July 1, 2026
Revision Date:

Policy Owner(s):

Financial Services Agency
Approved by:
1105

CITY OF ONTARIO

ADMINISTRATIVE POLICY

[POLICY FSA-011] (EFF 07/26) 2
A. Items over $15.00

1. Stale Dated
By June 30th and December 31st of each year, all outstanding items (including but not limited to checks, deposits, and bond refunds) held or issued by the City will be evaluated.

Any such items issued more than 12 months prior to the evaluation date will be identified as stale dated and cancelled. For checks, the bank of issuance will be notified that these checks have been cancelled, and the following journal will record the total amount of stale dated checks to be placed in an escheatment holding liability account.

The accounting entry for stale dated checks is:

DR Cash
CR Aged Uncashed Checks (Liability)
A list of the stale-dated items will be created and maintained by the City's Accounting division. The list will, at a minimum, contain the following information:
• Item or Check number
• Issue date
• Amount
• Payee or depositor name
If a cancelled item is subsequently presented for payment, or a valid claim is filed by the payee after cancellation, the item shall be re-issued by the City and accounted for by debiting the Aged Uncashed Checks account. The original item shall be removed from the stale dated list.

2. Public Notice
Once a year, the stale dated list shall be evaluated to determine which, if any, items remaining unclaimed for three (3) or more years from the date of issuance will be processed as follows:
• A Public notice will be published once a week for two consecutive weeks in a newspaper of general circulation in the City. The stale dated listing will include the name of the payee, the amount, the check/ item number, the date, and the fund held. The notice will also indicate that the unclaimed funds will become the property of the City forty-five (45) days after the date of the first publication (see Attachment A for an example).
• Prior to or after publication, a party of interest may file a claim for the funds with the City's Financial Services Agency. The claim must contain the claimant's name, address, claim amount, tax identification number, and grounds for the claim; and must be submitted before the date identified in the notice as the date the funds become property of the City. The City may require additional information to help substantiate the claim if necessary.
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• After 45 days have elapsed following the initial public notice date, the total remaining unclaimed balance will become the property of the City. No subsequent claim on these funds will be honored.
• Following completion of the statutory notice and claims process, unclaimed funds may be transferred to the General Fund pursuant to Government Code section 50053 and any applicable City Council resolution authorizing such transfer. The City Council may authorize the City Manager, Executive Director of Finance, Assistant Finance Director, Deputy Finance Director, City Treasurer, or their respective designees to administer and implement such transfers in accordance with a standing resolution adopted by the City Council, provided that the amount of any individual unclaimed item or aggregate batch transfer at one time does not exceed one hundred fifty thousand dollars ($150,000).
• Any individual item or aggregate batch transfer exceeding one hundred fifty thousand dollars ($150,000) at one time shall require City Council approval prior to transfer.
• The following journal will be recorded to recognize the revenue. The account entry to recognize the revenue is as follows:

DR Aged Uncashed Checks & Deposits (Liability)
CR Miscellaneous Revenue/ Unclaimed Funds (General Fund Revenue) Regardless of the source of funds the stale dated checks were originally issued from, the final disposition of all unclaimed funds shall be to the credit of the General Fund; unless directed otherwise by the City Council. If restitution is collected on behalf of victims, it shall either be deposited into the Restitution Fund or used by the City specifically for victim services after the expiration of the three-year period.

B. Items under $15.00 or Unknown Depositor
By June 30th and December 31st of each year, all outstanding items under $15.00 or where the payee/ depositor name is unknown will be identified. Pursuant to Government Code Section 50055, any such items that have remained unclaimed for more than 12 months prior to the evaluation date will immediately become the property of the City without public notice and credited to the General Fund. The items will be cancelled, and the bank will be notified that these checks have been cancelled. The following journal will record the total amount of these items as revenue.

The entry to record the total amount of the items as revenue:

DR Cash
CR Miscellaneous Revenue /Unclaimed Funds (General Fund Revenue) 1107

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C. Deposit and Bond Funds
The procedures outlined in this policy for notification and escheatment shall also be followed for Deposit Funds and Bond Funds which have been held in trust by the City and released but remain uncollected by the legal owner for three (3) years or more.

To the extent any deposit, bond, or other trust fund is subject to a more specific statutory disposition procedure, the applicable statute shall control.

D. Definitions
Unclaimed Money: Funds which are not the property of the City but remain in the City Treasury for three or more years without a claim being filed by the legal owner(s). This excludes individual items under $15.00 (per GC §50055).

Victim Restitution: Funds collected specifically for court-ordered restitution to victims.

These are restricted and cannot be used for general City purposes.

Checks: Instrument issued to pay for goods and/or services rendered, employee payroll, refunds, etc.

Deposit/Bond Funds: Monies held in trust (e.g., developer deposits, performance bonds) that have been authorized for release but remain uncollected.

E. Attachments
A. Sample Notice
B. Unclaimed Funds Claim Form
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Attachment A

PUBLIC NOTICE

CITY OF ONTARIO UNCLAIMED FUNDS
Notice is hereby given that the City of Ontario (“City”) is holding funds for the following persons and/ or businesses who have unclaimed funds held by the City for a period over three (3) years. If said funds are not claimed by MMIDDIYYYY, a date not less than forty-five (45) days nor more than sixty (60) days after the first publication of this notice in a newspaper of general circulation, these funds will become the property of the City in accordance with California Government Code Sections 50050 - 50056. These funds may be released to the depositor, their heir, beneficiary or duly appointed representative, provided a claim form has been properly completed and submitted in a timely manner.

To see the list of unclaimed property, please visit the City’s website. Any party of interest may, prior to the date designated herein above, file a claim with the Finance Department. Complete the claim form below and mail with proof of identification (copy of a valid government-issued photo ID).

Required claim information will include claimant’s name, address, phone number, tax identification number/ Form W-9, amount of claim, and grounds on which claim is founded. Once a claim is submitted, the Deputy Finance Director designee will review the claim and determine whether sufficient documentation has been provided to support the claim. Approved claims shall be processed in accordance with applicable law and City policy.

The following are payees with unclaimed funds held by the City for three or more years:

NAME AMOUNT CHECK# DATE SOURCE OF FUNDS
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Attachment B

CITY OF ONTARIO

UNCLAIMED FUNDS CLAIM FORM
Original Payee Name: _______________________________________________________________________________ Claimant Name: __________________________________________________________________________ (if different) Current Address: ___________________________________________________________________________________ City, State/ Zip Code: _______________________________________________________________________________ Pursuant to California Government Code Section 50052, I wish to file a claim for previously unclaimed funds in the amount of $__________________________.

Indicate the reason for the claim below:
( ) The above referenced check was not received.
( ) The above referenced check was received and lost.
( ) The above referenced check was received and destroyed. ( ) Others, please specify ______________________________________________________________ I hereby certify under penalty and perjury that the information contained on this claim is true and correct and is being submitted to the City of Ontario (“City”) to substantiate my claim to money held by the City. I further certify that I have the authority and right to claim and receive payment of money and hereby release the City from all liability and further obligation with respect to this claim. In the event the Original check shall be found at a later date, the undersigned agrees to return it to the City, If the check does by any circumstance get deposited or cash, the undersigned agrees to refund the amount of the check to the City immediately on request or pay all cost incurred by the City in recovering the amount.

For claims filed for a business, the authorized owner’s signature is required. For claims filed for an estate or trust, the signature of the executor, administrator or attorney is required. __________________________________________________________________________________________________ Name (Print) Authorized Signature Date
Driver License #: ________________________________ SS# or TIN: ________________________________________ Note: Attach a copy of driver’s license, government issued or other form of appropriate I.D.

Phone Number: _________________________________ Email Address: _____________________________________ Mail completed forms with supportive required documentation to:

City of Ontario
Attn: Financial Services - Unclaimed Funds
303 East B Street, Ontario, CA 91764

CITY USE ONLY
Claim received on: _____________ Confirmed item on outstanding check list _______________________ Approved: ______ Denied: ______ Finance Department Signature: ________________________________ Original Check # _______________ Check Date: _________________ Check Amount: $_____________ Replacement Check # ___________ Check Date: _________________ Check Amount: $_____________ 1110

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REVISIONS
Review Date Revision
June XX, 202X Policy established
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