Discussion:
The City’s existing Purchasing Municipal Code was last revised and adopted by the City Council on November 14, 2021. Since then, staff became aware of a revision to the Municipal Code that is needed to conform to the language in the Purchasing and Procurement Policy Resolution (Resolution No. 7155). Specifically, it was noted that the “Exemption for Competitive Bidding/Selection” was intended to be used for supplies, equipment, and services, as this is how it was articulated in Resolution 7155. However, the ordinance currently in place (Ordinance No. 1151) inadvertently omitted the word “services”. Therefore, staff proposes further updates to Chapters 3.20 of the PRMC and revisions to the City’s purchasing and procurement policies for City Council’s review and consideration to include “services” within the scope of the contemplated procurement policy.
Proposed Changes to Chapter 3.20 (Purchasing)
The proposed amendments to PRMC Chapters 3.20 (Purchasing) and new proposed Procurement Policies and Procedures outline the exemptions for competitive bidding/selections such as emergency purchasing, sole source purchasing, contracts with other government agencies, and cooperative or piggyback purchasing. Below is the revised language to the Municipal Code, Section 3.20.030 (additions in Underline):
3.20.030 Exemptions from chapter application.
The provisions of this chapter shall not apply in respect to the purchase of supplies, services, and equipment in the following circumstances:
D. Cooperative or piggyback purchasing:
1. Where the city council, by contract or resolution, or both, transfers the authority to make the purchase of supplies, services, and equipment, whether blanket authority or single purchases, to another governmental agency, or officer thereof, pursuant to lawful authority, and where such other governmental agency or officer, in the purchase of supplies and equipment, follows to the satisfaction of the purchasing officer policies and procedures in compliance with the provisions of Sections 54201 through 54204 of the Government Code. In the event of the transfer of blanket authority in respect to such purchase of supplies or equipment pursuant to this section, the purchasing officer, as defined in this chapter, shall remain the purchasing officer of the city, and the other office or agency performing the services shall be designated the purchasing agent. In such an event, the purchasing officer of the city may authorize purchases through said purchasing agent in accordance with the authority vested in him or her by the city council;
2. The purchase of equipment, services, and supplies through the Department of CITY COUNCIL AGENDA REPORT – MEETING OF NOVEMBER 14, 2023 AN ORDINANCE AMENDING CHAPTER 3.20 (PURCHASING) OF THE PICO RIVERA
MUNICIPAL CODE (FIRST READING AND INTRODUCTION)
General Services pursuant to Section 10324 of the Public Contracts Code; These adjustments enable City staff to procure in a responsible, transparent, efficient, effective, and accountable manner.
Conclusion:
Staff recommends the City Council introduce and waive the first reading of an ordinance amending Chapter 3.20 (Enclosure 1), to conform to the Procurement Policies and Procedures Resolution 7155 (Enclosure 2). Staff should adhere to them in order to handle procurement needs in a responsible and ethical manner, while also maximizing the use of public funds.
Steve Carmona
SC:AG:JG:ep
Enclosures: 1) Ordinance Amending PRMC Chapter 3.20
2) Resolution 7155 Procurement Policies and Procedures/Attachment A ENCLOSURE 1
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA AMENDING CHAPTER 3.20 (PURCHASING) OF
THE PICO RIVERA MUNICIPAL CODE
WHEREAS, the City’s existing Purchasing Municipal Code was last revised and adopted by the City Council on November 9, 2021, with Ordinance No. 1151; and WHEREAS, an amendment to Chapter 3.20 (Purchasing) to the Pico Rivera Municipal Code (PRMC) is necessary to increase the procurement thresholds to align with the Federal and State practices of adjusting the procurement thresholds periodically for inflation and efficiency; and
WHEREAS, an amendment to Chapter 3.20 (Purchasing) is also necessary to standardize citywide procurement policies and procedures; and WHEREAS, pursuant to sections 54201 through 54204 of the California Government Code, policies and procedures that govern the purchase of supplies and equipment must be adopted by an ordinance; and
WHEREAS, the City Council considered, concurrently herewith, a Resolution adopting Procurement Policies and Procedures to assist with their standard implementation citywide.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Pico Rivera as follows:
SECTION 1. Findings. The City Council finds and determines that the adoption of the Ordinances is based upon the following findings.
A. The recitals set forth above are incorporated herein as part of the findings.
B. An amendment to Chapter 3.20 (“Purchasing”) is consistent with the General Plan as they provide and maintain efficient services which strive to be responsive to the public needs.
C. Based on the above, the City Council determines that the Ordinance contained herein is necessary and in the public’s best interest.
SECTION 2. Amendment. Sections 3.20.030 (“Exemptions from chapter application”), of Chapter 3.20 (“Purchasing”), Title 3 (“Revenue and Finance”), is hereby amended to read as follows (additions in Underline):
20a
ORDINANCE NO. ______
3.20.030 Exemptions from chapter application.
The provisions of this chapter shall not apply in respect to the purchase of supplies, services, and equipment in the following circumstances:
A. Emergency: As defined in CPCC Section 22035, in case of emergency when repair or replacements are necessary, the city 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. The work may be done by day labor under the direction of the city, by contractor, or by a combination of the two. The day labor includes the use of maintenance personnel employed on a permanent or temporary basis.
The procurement must be reported to Council at the next Council Meeting for ratification if the amount has been subject to approval of the City Council.
B. Sole source purchasing: The city may dispense with the bidding requirements if it finds that the supplies, services, or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source, or, if available from more than one (1) source, can be purchased from the manufacturer or service provider for a lower price. The sole source form has to be reviewed and signed off by the appropriate authority outlined in 3.20.210.
C. Contracts with other government agencies for supplies, services, and equipment.
D. Cooperative or piggyback purchasing:
1. Where the city council, by contract or resolution, or both, transfers the authority to make the purchase of supplies, services, and equipment, whether blanket authority or single purchases, to another governmental agency, or officer thereof, pursuant to lawful authority, and where such other governmental agency or officer, in the purchase of supplies and equipment, follows to the satisfaction of the purchasing officer policies and procedures in compliance with the provisions of Sections 54201 through 54204 of the Government Code. In the event of the transfer of blanket authority in respect to such purchase of supplies or equipment pursuant to this section, the purchasing officer, as defined in this chapter, shall remain the purchasing officer of the city, and the other office or agency performing the services shall be designated the purchasing agent. In such an event, the purchasing officer of the city may authorize purchases through said purchasing agent in accordance ORDINANCE NO. ______
with the authority vested in him or her by the city council;
2. The purchase of equipment, services and supplies through the Department of General Services pursuant to Section 10324 of the Public Contracts Code;
3. The purchase is made by, through, or in concert with another public agency provided the other public agency makes such purchase in accordance with the state laws or local rules and regulations governing such purchase for the other public agency. (Ord. 938 § 1, 1999; prior code § 2702)
SECTION 3. CEQA. Pursuant to Section 15061(c)(2) of the California Environmental Quality Act (CEQA) Guidelines, the City Council funds that adoption of this Ordinance will not result in a direct or reasonably foreseeable indirect physical change in the environment and therefore is not subject to CEQA. Additionally, pursuant to Section 15060(c)(3) the activity is not a “project” as defined in Section 15378 because it has no potential for resulting in physical change to the environment, directly or indirectly.
SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof, is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance irrespective of the fact that one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared unconstitutional, invalid or ineffective. To this end, the provisions of this Ordinance are declared to be severable.
SECTION 5. The City Clerk shall certify to the adoption of this Ordinance. The City Council hereby finds and determines that there are no newspapers of general circulation both published and circulated within the City and, in compliance with Section 36933 of the Government Code directs the City Clerk to cause said Ordinance, within fifteen (15) days after its passage, to be posted in at least five (5) public places within the City. This Ordinance shall take effect thirty (30) days after its adoption. [Signatures on the following page]
ORDINANCE NO. ______
APPROVED AND ADOPTED this ___ day of ____________, 2023.
___________________________
Eric Lutz, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney
STATE OF CALIFORNIA )
)§
COUNTY OF LOS ANGELES )
I, Cynthia Ayala, City Clerk of the City of Pico Rivera, do hereby certify that the foregoing Ordinance No. _____was adopted at a regular meeting of the City Council of the City of Pico Rivera, held on Tuesday, _______________ 2023, with the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Cynthia Ayala, City Clerk
Appendix 19
Enclosure 2 / Exhibit A
20b
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 1 Procurement Policies and Procedures
References
City of Pico Rivera Municipal Code: Title 3 Revenue & Finance: 3.20 Purchasing City of Pico Rivera Municipal Code: Title 3 Revenue & Finance: 3.48 Informal Bidding for Public Projects
California Public Contract Code (CPCC) – Public Projects Only California Uniform Public Construction Cost Accounting Act (UPCCAA) – Public Projects Only
California Constitution Article XVI Public Finance
Office of Management and Budget (OMB) Uniform Guidance 2 Code of Federal Regulations (CFR) Subtitle A, Chapter 2, Part 200, Subpart D, Section 200.318-327 Purpose
The purpose of this manual is to establish guidelines for the solicitation and selection of all procurement contracts entered into by the City of Pico Rivera (City). The procurement process is designed to ensure that citizens of the City receive maximum value for their tax dollars. City employees exercise care to avoid any situation or practice that may appear improper and always endeavor to obtain the maximum value for each dollar expended.
The City staff strives to conduct all purchasing transactions with fairness and give all qualified vendors equal opportunity while demanding truth and honesty in the procurement process at all times.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 2
TABLE OF CONTENTS
Policies............................................................................................................................ 3 Procedures...................................................................................................................... 5 Dos and Don’ts................................................................................................................ 5 Summary......................................................................................................................... 6 Purchases between $5,000 and $29,999..................................................................... 7 Purchases for $30,000 and more ................................................................................. 7 Competitive Bidding – Supplies, General Services, and Equipment ...................... 7 Formal Competitive Bid Guidelines ....................................................................... 7 Evaluation Guidelines for Competitive Bid ............................................................ 8 Competitive Selection – Services Request for Proposal ........................................ 9 Formal Competitive Selection Guidelines .............................................................. 9 Evaluation Guidelines for Competitive Selection ................................................. 10 Evaluation Guidelines for Applying an Ethical Standard ............................................... 11 Exemptions from Competitive Bidding or Competitive Selection................................... 12 Federal and State Requirements ................................................................................. 13 Change Order .............................................................................................................. 15 Insurance Guidelines .................................................................................................... 15 Contract Type ............................................................................................................... 16 Contract Approval Process ........................................................................................... 16 Glossary ........................................................................................................................ 16 Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 3 Policies
Code of Conduct
The City must maintain written standards of conduct covering conflicts of interest and governing the actions of its employees engaged in the selection, award and administration of contracts. No employee, officer, or agent may participate in the selection, award, or administration if he or she has a real or apparent conflict of interest.
Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. However, the City may set standards for situations in which the financial interest is not substantial or the gift is an unsolicited item of nominal value. The standards of conduct must provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents of the City.
Fair Competition
The City staff must discharge their duties impartially to assure fair competition among responsible vendors. All vendors will be treated equally and fairly at all times by the City staff, with equal information given to each vendor who participates in the procurement process. Prequalified lists of persons or firms, or products use in acquiring goods or services, and to be kept current and include enough qualified sources to ensure maximum open and fair competition.
Purchasing Items with Recycled Content
In accordance with Section 22150-22154 of the California Public Contract Code and SB 1383 Article 12 Regulations, the City shall purchase recycled products instead of nonrecycled products whenever recycled products are available at the same or a lesser total cost than non-recycled items if fitness and quality are equal.
Purchasing Items with ADA-Compliant Content
Because each department will have expertise specific to the supplies, services, and equipment it requests, it shall be at the discretion of each department requester to determine whether any particular product or service meets both the ADA criteria and the essential needs of the residents of the City.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 4 Other Consideration for Purchases
Per California Constitution Article XVI Public Finance Section 6, prior to making any expenditures that benefits a City employee, City officer, or private party, the City has to consider whether such expenditure constitutes a valid public purpose of the City, document the City Council’s deliberation and determination that the expenditure constitutes a valid public purpose for the city, and decline to authorize any expenditures that do not constitute a valid public purpose of the City.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 5 Procedures
DOS AND DON’TS
DOS
Follow Informal Bidding for Public Projects Municipal Code (3.48) for Public Project procurement.
Utilize a contract to purchase general services and professional services of any amount (other than personal services defined in PRMC 3.20.105). Departments must use the required legal approved templates for formal bids and Request for Proposals (RFP).
Departments must use the required legal approved templates and compliance checklist from the City Clerk’s office to create an agreement or contract.
Departments are to complete each agreement or contract in its entirety to include a completed scope of services before seeking final approval from the legal department.
Once the City Clerk’s office receives an approved legal document, the City Clerk shall submit the completed and signed document back to the requested department for future processing.
Department must obtain Risk Management’s approval of a vendor’s insurance or Risk Management’s notice that the insurance is not applicable.
Department must obtain approvals from the appropriate authority for an agreement or contract.
DON’TS
Do not circumvent established single purchase limits by splitting procurement transactions into small units that are artificially devised to avoid the bidding requirements and other procedures applicable to larger unit transactions.
Do not circumvent established single purchase limits by changing orders to avoid the bidding requirements and other procedures applicable to higher approval limits.
Do not participate in or work on a procurement if there is a real or apparent conflict of interest.
Do not use sole source procurement when competitive solicitation procedures like sealed bids or competitive proposals are applicable or practicable.
Do not pay vendor invoices with the City-issued Cal-Card. Do not pay vendor invoices with the City petty cash.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 6 Summary
General provisions: The City’s Municipal Code 3.48 (Informal Bidding for Public Projects) follows the California Uniform Public Construction Cost Accounting Act (UPCCAA) and sets forth the procurement requirements and bidding limits for Public Projects, and the City’s Purchasing Municipal Code (PRMC 3.20) has established the following expenditure thresholds that determine which procedures are used for nonPublic Projects:
Purchases less than $5,000
No PO is required
Invoice approved by the Department Head
Informal Competitive – $5,000 to $29,999
Written scope of work or specifications
Three quotes or a sole source form approved by the Department Head and Finance Director
Formal Competitive – Purchases equal to or above $30,000 Formal solicitation document (invitation for bid or RFP) Recommendation for award memo with one of the following:
• Actual bids and bid tabulation
• Proposals and the signed evaluation results
• Sole source form approved by the City Manager for purchases from $30,000 to $49,999
The City Manager approves purchases up to $49,999
The City Council approves all Purchases equal to or over $50,000 by a final staff report or a council resolution
All city purchases require insurance approved by Risk Management unless Risk Management determines that insurance is not applicable.
Exemptions: The competitive bidding or competitive selection procedures and requirements may be dispensed with any of the following purchases:
Emergency
Sole source purchasing
Contracts with other government agencies
Cooperative or piggyback purchasing
Personal and professional services less than $50,000 if the procurement does not include any federal funding
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 7 Compliance with federal and state requirements: The competitive bidding procedures and requirements may be different for the following:
Procurement with federal or state grants
Public projects
For purchases from $5,000 to $29,999:
• The Soliciting Department prepares written specifications that explain the requirements for the purchase and how the vendor will be selected. • The Soliciting Department needs to discuss the specifications with Risk Management to determine if insurance is required.
• Informal quotes may be obtained in writing. The department should solicit at least three vendors via email or fax. The solicitation should include a due date. • The Soliciting Department collects at least three quotes and reviews them to make sure that department requirements are met.
• The department prepares the bid sheet explaining the selection and any additional distinctions for the purchase, including non-responsive vendors. • The Sole Source form must be reviewed/approved by the Finance Director. • Insurance must be approved by Risk Management, or notice must be sent from Risk Management that insurance is not applicable. Soliciting departments should not assume that insurance is not applicable.
For purchases of $30,000 or more:
If no exemptions or special federal and/or state requirements are applicable, the City uses competitive bidding or competitive selection for purchases of $30,000 or more. The City Manager may approve purchases up to $49,999. The City Council approves all purchases equal to or over $50,000 using a final Staff Report or a Council Resolution.
Competitive Bidding is used to procure supplies, general services, and equipment valued at $30,000 or more. It is a price-only selection process where the contract is awarded to the lowest Responsive and Responsible bidder. Responsiveness relates to whether a bidder has met the requirements of the City’s specifications. Responsibility relates to the bidder’s general business standing, such as financial stability, performance on prior contracts of a similar nature, and so on.
Pre-bid meetings may be held to answer questions related to bids. These meetings may be voluntary or mandatory. The meeting requirements cannot be changed, made mandatory, and/or used in an evaluation process after the bid has been posted.
Formal Competitive Bid Guidelines
Defining your need and market research: Ensure that there is an understanding and agreement on the result you are buying. If there is a “knowledge gap” about your procurement or the industry from which you’re buying, then conduct market research.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 8 Developing and approving solicitation documents:
• Ensure that you provide a complete set of specifications or scope of work for your procurement.
• Utilize the latest boilerplates available.
• Ensure that you account for all necessary work or line items in your procurement.
• If your procurement is grant-funded, ensure that the granting agency requirements, including the solicitation threshold amounts, are met. • The City Attorney must approve formal solicitations.
• The Notice Inviting Bids provides information regarding:
o The type of contract being issued;
o Where the specifications can be obtained;
o The date and time at which responses are due and will be opened. • Any bid received after the stated deadline will not be accepted. At the time of bid opening, which is usually held in the City Clerk's Office, each bid is opened, and the respective bid prices are read aloud.
Evaluation Guidelines for Competitive Bids
The guidelines listed below comprise best practices and specific instructions from the City's Purchasing Municipal Code (PRMC 3.20). Together, they are designed to help staff apply appropriate evaluations to a competitive bid. All bids shall be placed in a sealed envelope and delivered to the City as specified in the Notice Inviting Bids. Sealed bids are typically opened by the City Clerk.
The Soliciting Department Review for all Necessary Requirements, Licenses, and/or Certifications such as the following:
• State License Requirements (if outlined in the Bid Document) • Certification Requirements (if outlined in the Bid Document) • Debarment and Suspension (Required for Federal Projects) - not on Debarred/Excluded Parties List (Sam.gov): include printed verification • Department of Industrial Relations Registration (Required for Public Works):
include printed verification
• Attendance of Pre-bid Meeting (if Mandatory)
Award of bid and determination of responsiveness: Departments are advised to review bids for responsiveness. The contract shall be awarded to the lowest responsive and responsible bidder.
The required forms include, but are not limited to:
• Declaration of non-collusion
• Bidder's Bid
• Bid Security (if outlined in the Bid Document)
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 9 • Signed (acknowledged) Addenda
Competitive Selection is a process whereby various criteria are used to determine which proposer offers the City the overall best value. Competitive selection utilizes RFPs and has different types of criteria for the selection process. A contract can be awarded for reasons other than the lowest price.
Formal Competitive Selection Guidelines
RFPs outline the details by way of a Scope of Work that defines what the selected firm will do for the City, such as conducting a study, delivering a customized software program, etc.
• Proposals are assessed via evaluation criteria that explain how the proposals will be evaluated, and a firm selected.
• The Competitive Selection process for an RFP is not determined by price only. In fact, the price needs not to be a criterion. Prior experience of the firm and key people to be assigned to the project are typical criteria. • RFPs list those items under the title Contents of Proposals, which a proposer is required to provide in order for their proposal to be responsive and considered.
o There should be a relationship between the Contents of Proposals and the evaluation criteria. For example, if the evaluation criterion is prior experience, the Contents of Proposals section should require the submission of resumes, references, corporate history, etc.
• Unlike Competitive Bid contracts, contracts subject to Competitive Selection are not required to be noticed in the newspaper. However, Department will place a notice on the City's bid notification system. If federal or state grants/funds are utilized, departments should review the requirements for advertisement.
• The City Attorney Office must approve all RFPs prior to issuance.
Soliciting Department prepares the RFPs with the City's standard boilerplate, which includes the City's legal requirements and the following descriptive elements:
1. Introduction: This section states the general nature and purpose of the RFP. The project should be described in as much detail as needed to provide the reader with a basic understanding of the request and requirements necessary to perform the work.
2. Background: This section provides a brief history, justification, or rationale for the project. Such data should include, but not be limited to, a brief description of the City (e.g., population, square miles) and any other information regarding the demographics of the City that will give the prospective proposers an understanding of the community.
3. Objective: This section states the specific goal. It explains what is expected at the Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 10 end of the contract and what is anticipated from the contractor’s services.
4. Scope of Services/Scope of Work (SOW): This section provides guidance and clarity to prospective bidders for their understanding of the work to be undertaken.
SOWs are divided into two categories: performance-based (professional services contracts) and design-based (architectural or IT-related). The SOW should define the level of effort that is expected. SOWs should include information regarding any environmental impact the project may have under the California Environmental Quality Act (CEQA).
5. Location: This section provides the project's location, that is, where the services are to occur, and includes the name and phone number of the City's contact person. Pictures, maps, and diagrams should be included when possible.
6. Service Dates: This section provides the anticipated commencement and ending dates for which services will be required and any other milestones that need to be met to complete the project on time successfully.
7. Evaluation Criteria: This section defines specific evaluation criteria. Criteria must be assigned specific point values or percentages used to evaluate each proposal.
A typical evaluation matrix would specify the weights used to evaluate the proposals, for example, technical 30%, cost 20%, customer service 15%, training 15%, experience 10%. If the project has a limited budget, a budget range may be included in the RFP.
Pre-proposal meetings are scheduled and set up by the Soliciting Department. Addenda are typically developed by the Soliciting Department and sent to potential bidders.
Evaluation Guidelines for Competitive Selection
The guidelines below consist of best practices and specific instructions from the City's Purchasing Municipal Code (PRMC 3.20). Together, they are designed to help staff apply appropriate evaluations to a competitive selection.
Departments must follow the evaluation section of the RFP. Departments are advised to use evaluators that are subject matter experts, such as consultants, City employees, and employees of other agencies to ensure that the proposals meet the technical requirements of the Department. Finally, Departments should maintain (file) backup documentation of each proposal’s “evaluation criteria” results.
The Soliciting Department should send the RFP and addenda posted to the Evaluation Review Panel prior to receipt of the proposal.
The Department Lead should have a meeting with the Review Panel to ensure everyone understands the RFP Statement of Work and the evaluation criteria and discuss any potential conflicts and the timeline for the RFP proposal review.
The Soliciting Department reviews for all necessary requirements, licenses, and/or certifications outlined in the RFP, similar to the required documents listed for the Bid.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 11 Evaluation Method for RFPs:
The following evaluation method is recommended:
1. All factors are considered and scored according to the established criteria.
2. It is recommended to establish a minimum acceptable score each proposal would have to achieve in order to move forward in the process.
Proposals that do not meet the minimum level would not advance to the final evaluation step.
Example:
Category Proposal
A
Proposal
B
Proposal
C
Technical (40%) 35 38 40
Qualifications (40%) 35 30 40
Experience (20%) 20 18 16
Total Points 90 86 96
If the minimum acceptable score is 90, only proposal A and C will advance to the final evaluation step. Staff can then negotiate the price with firms A and C and determine to which vendor the contract shall be awarded based on the score and cost.
Evaluation Guidelines for Applying an Ethical Standard:
This section of the Evaluation Guidelines is designed to guide staff in applying basic ethical standards to the evaluation process. Staff is strongly advised to comply with all ethics standards administered by the Human Resources Department. Staff is generally recommended to eliminate any known bias from their evaluation process. Additionally, staff is advised that the City's purchasing processes are all public processes. Therefore, they should make known any impact a contract award can have on them personally or professionally. Furthermore, staff is advised to consider recusing themselves from being an evaluator in the following general instances:
• Has or has had a personal or professional relationship with any of the vendors in contention.
• Will be evaluating alongside a subordinate or a supervisor. • Have already received a presentation related to the current proposal from any of the vendors in contention.
• Have the potential to receive a direct or indirect benefit based on the award or non-award of the contract.
Exemptions from Competitive Bidding or Competitive Selection Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 12 Although all contracts $30,000 or more are subject to either Competitive Bidding or Competitive Selection, under certain circumstances, the process may be dispensed with, and an exemption may be granted. It is important to note that an exemption only exempts the competitive portion of the purchasing process. All other requirements (forms and procedures) still apply.
• Emergency: As defined in CPCC Section 22035, in cases of emergency when repair or replacements are necessary, the City 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. The work may be done by day labor under the direction of the City, by contractor, or by a combination of the two. The day labor includes the use of maintenance personnel employed on a permanent or temporary basis. The City Manager can authorize a purchase due to an unexpected and urgent request where health and safety or public resource conservation is at risk. The procurement must be reported to Council at the next Council Meeting for ratification if the amount has been subject to approval of the City Council.
• Sole source – The City may dispense with the bidding requirements if it finds that the materials, supplies, equipment, or services are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one (1) source, or, if available from more than one (1) source, can be purchased from the manufacturer or service provider for a lower price. If the cost of such sole source purchasing is $50,000 or greater, the City Council’s approval shall be required. • Contracts with other government entities for supplies, services, and equipment: The City may enter into contracts with other government agencies without a competitive process.
• Cooperative or piggyback purchasing – The City may be exempted from a competitive procurement process when cooperate or piggyback with another governmental agency.
• Personal and professional services: The City may award personal and professional service contracts less than $50,000, if the procurement does not include any federal funding, based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the service required.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 13 Federal and State Requirements
Suppose a State or Federal agency has any level of authority regarding your purchase.
In that case, it is incumbent upon the soliciting Department to follow any and all procurement rules required for the specific purchase. Please be prepared to provide detailed instructions directly from the federal or state agency that governs your solicitation. Below are a few general guidelines to consider which may govern your procurement. It is important to note that this section is not designed to provide all federal or state requirements. If you are making a purchase bound by federal or state rules, you are strongly advised to gather and assemble all necessary forms, procedures, and policies that govern your solicitation.
• Federal or state grants: If the procurement is grant-funded partially or completely, the city must meet all granting agency requirements, including the solicitation threshold amounts. The most restrictive policy should be followed.
• Public projects: As defined in CPCC Section 22002, a public project includes but may be not limited to construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operating facility. A public project does not include maintenance work. The city shall procure for a Public Project by following the requirements and bidding limits set forth by the California Uniform Public Construction Cost Accounting Act (UPCCAA), which adjusts the requirements and thresholds periodically for efficiency and inflation. The City’s Municipal Code 3.48 provides more specific guidelines for public project procurement.
Consultant Selection and Procurement
For example, the City receives grants from the Department of Transportation via Caltrans.
According to 23 CFR “ Highway” Part 172 “Procurement, Management, and Administration of Engineering and Design Related Services”, Section 172.5(b)(1) (https://www.ecfr.gov/current/title-23/chapter-I/subchapter-B/part-172), the City shall follow the procedures detailed in the Local Assistance Procedures Manual (LAPM) Chapter 10 “Consultant Selection” https://dot.ca.gov/programs/localassistance/guidelines-and-procedures/local-assistance-procedures-manual-lapm) for the procurement, management, and administration of engineering and design related consultant services funded in whole, or in part, with Federal-aid highway program funds.
Departments are responsible for reviewing and validating that all of the Caltrans and Federal requirements, including contract language that is included in their solicitation prior to advertisement of the solicitation.
Departments are advised to adhere to all Federal standards applicable to their funding as it relates to the purchasing. The link below contains the 2 CFR 200, Uniform Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 14 Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards:
https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 Below is an excerpt for immediate reference:
• § 200.214 Suspension and debarment
• § 200.215 Never contract with the enemy
• § 200.216 Prohibition on certain telecommunications and video surveillance services or equipment.
• § 200.318 General Procurements Standards
• § 200.319 Competition
• § 200.320 Methods of Procurement to Be Followed – Thresholds are set by the Federal Acquisition Regulation at 48 CFR Subpart 2.1 and adjusted periodically for inflation:
o Micro-purchases
o Small purchases
o Sealed bids
o Competitive proposals
o Non-competitive Negotiation
• § 200.321 Contracting with Small and Minority Businesses, Women’s Business Enterprises, and Labor Surplus Area Firms
• § 200.322 Domestic preferences for procurements
• § 200.323 Procurement of recovered materials
• § 200.324 Contract cost and price
• § 200.325 Federal awarding agency or pass-through entity review • § 200.326 Bonding requirements
• § 200.327 Contract provisions & Appendix II to Part 200—Contract Provisions for Non-Federal Entity Contracts Under Federal Awards Federal terms and conditions include, but not be limited to, the following:
• Equal Employment Opportunity
• Davis-Bacon Act and Copeland “Anti-Kickback” Act
• Contract Work Hours and Safety Standards Act
• Clean Air Act and Federal Water Pollution Control Act • Debarment and Suspension Certification to ensure that a contract is not to be awarded to parties listed on the System for Award Management’s (SAM) “List of Parties Excluded from Federal Procurement or NonProcurement Programs.” PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 15 Change Order
If a contract or purchase order originally approved by a Department Head, Finance Director or the City Manager later requires authorization for additional expenditures or costs that, if included as part of the original contract, would have exceeded the Department Head’s, Finance Director’s or City Manager’s contract approval authority, any amendment(s) authorizing such additional expenditures or costs shall be:
• Approved by the Department Head if the additional expenditures and costs, had they been included in the original contract, would have still been within $5,000;
• Approved by the Finance Director if the additional expenditures and costs, had they been included in the original contract, would have exceeded $5,000 but below $30,000. Also, staff should conduct an informal bid or provide a sole source form approved by the Finance Director;
• Approved by the City Manager if the additional expenditures and costs, had they been included in the original contract, would have exceeded $30,000 but below $50,000. Also, staff should conduct a formal bid or provide a sole source form approved by the City Manager; • Approved by the City Council if the additional expenditures and costs, had they been included in the original contract, would have exceeded the City Manager’s approval authority of $50,000.
Insurance Guidelines
In general, when a vendor is performing work for the City, whether on City property or not, some form of insurance may be required, regardless of the amount of a purchase order or the length of time the vendor will be on City premises. If in doubt whether the insurance documentation submitted by a vendor complies with the City's insurance requirements, you may request Risk Management review and approve the insurance prior to submitting a Requisition to the Finance Department. In an effort to assist vendors in complying with the City's insurance requirements, it may be helpful to provide the vendor a copy of the City's General Insurance Requirements. A copy of this document and other types of coverages can be obtained from Risk Management.
Types of Coverage may include, but not be limited to, general insurance requirements, construction type risks, contracts with professional liability, contracts with software, cyber liability, and professional liability.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 16 Contract Types
The City has several standard contracts, each with its own particular terms and conditions. The contracts include supplies and equipment purchase orders, professional services contracts, etc. The type of contract used for a particular transaction is determined by the nature of the transaction.
Contract Approval Process
Soliciting Department makes sure that there are sufficient funds in the budgeted accounts/projects before the contract is approved by the appropriate approval authority.
Department verifies the contract’s fiscal impact included in the agenda report. The contract approval authority is defined in PRMC 3.20.210.
Soliciting Department prepares a draft contract, has it reviewed by the City Attorney, and then approved by the appropriate authority before a contract can be effective.
Per PRMC 2.04.140, the city manager shall examine all proposed contracts to which the city may be a party, and may sign on behalf of the city any contract authorized by the city council, excepting where the council directs that some other officer or officers shall do so.
Therefore, unless directed by the City Council, no other employees are authorized to bind the City into a contract.
Glossary
ADA
The Americans with Disabilities Act (ADA) became law in 1990. The ADA is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public. The purpose of the law is to make sure that people with disabilities have the same rights and opportunities as everyone else. The ADA gives civil rights protections to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion.
Bid security is a bond or deposit which guarantees that the bidder/proposer, if awarded the contract, will accept the contract as bid.
Bid specification is a document that states the requirements to which a given product or service must conform.
Competitive bidding is the process of inviting and obtaining bids from competing sources in response to advertised competitive specifications and by which an award is made to the lowest and best bidder meeting the specifications.
Appendix 19
ATTACHMENT “A”
Finance Department- Procurement Policies and Procedures Page 17 Competitive selection is a process whereby various criteria are used to determine which proposer offers the City the overall best value. Competitive selection is used for services.
Contract is an obligation, such as an accepted offer, between competent parties upon a legal consideration to do or abstain from doing some act. The essential elements of a contract are: 1) an offer and an acceptance of that offer; 2) the capacity of the parties to contract; 3) consideration to support the contract; 4) a mutual identity of consent; 5) legality of purpose; and 6) definiteness.
Exemption is a limited action by which a purchase may be made without the Competitive Bidding or Competitive Selection processes.
General service is a service of a general nature (as opposed to personal and professional services). If it is determined by the City that all vendors providing a service classification can equally provide the service satisfactorily, a bid process would be appropriate. However, if factors other than price need to be considered in awarding the contract, the RFP process may be used.
Professional services require a high degree of professional, educational, or technical skill, such as services rendered by architects, engineers, bond underwriters, actuaries, attorneys, auditors, software service providers, web designers, and others.
Purchase Order (PO) is a written document to a vendor formalizing the City's terms and conditions of a proposed transaction, such as a description of the requested items, delivery schedule, terms of payment, and transportation. (PRMC 3.20.070) Request for Proposal (RFP) is a document used to solicit proposals from potential providers for goods and services. Price is usually not a primary evaluation factor. It provides for the negotiation of all terms, including price prior to contract award.
Requisition (RX) is a document created by a requestor to initiate the procurement of supplies, services, and equipment. It includes a description of the purchase and other information that is relative to the transaction. An RX is not a purchase order and shall not be used or represented as such. (PRMC 3.20.060)
Appendix 19
COUNCIL
MEETING
DATE
COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action
DISCUSSION
ITEM
ACTION
ITEM DATE
2/14/2023 Garcia/Sanchez Establishing Safe Spaces for kids Take to City Council P. Yugar TBD 2/14/2023 8/8/2023
GOOD OF THE ORDER
STATUS:
Complete;
Pending;
On-going;
In-Progress
In-Progress