R-2024-014 Amending Purchasing Policy; Rescinding R-2022-067 2024-03-05

RESOLUTION NO. R-2024-014

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,

CALIFORNIA UPDATING THE CITY OF PISMO BEACH PURCHASING POLICY AND

PROCEDURES MANUAL TO REFLECT TO REFLECT ENHANCED BID AND

AUTHORIZATION PURCHASING LIMITS, MODERNIZE THE EMERGENCY PROCUREMENT LIMITS, AND OTHER ADDITIONAL UPDATES; RESCINDING RESOLUTION R-2022-067
WHEREAS, at the February 16, 2024 City Council Goal Setting session, staff presented proposed revisions to the City’s Purchasing Policy & Procedures (Policy), including enhancements to competitive bidding requirements and authorization purchasing limits and referenced other related and minor revisions to the Policy; and WHEREAS, related to the enhancements to bid requirements and authorization purchasing limits are recommended revisions to the emergency procurement limits, vehicle purchases exception for special circumstances, credit card limits for Department Heads, and other minor edits; and
WHEREAS, the City Council adheres to best practices to periodically refresh this Policy to ensure it remains consistent with evolving bid environments and changes to procurement; this iterative process ensures that the Policy not only upholds transparency and competitiveness but also adapts to the dynamic municipal operating environment and technological progress; and
WHEREAS, compared to the surrounding communities’ bid requirements and purchasing limits, the City of Pismo Beach is at a disadvantage for purchasing due to inefficiencies in implementing projects and work plans based on needing to go through a longer bidding process and subsequent slower award of contracts and purchases compared to other communities, including inefficiencies in Council and staff time that could be more effectively spent on creating policies and implementing City Goals, respectively.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby adopts the Pismo Beach Purchasing Policy and Procedures Manual revised as of March 5, 2024 to reflect enhancements to bid requirements and authorization purchasing limits are recommended revisions to the emergency procurement limits, credit card limits for Department Heads, and other minor edits and attached as Exhibit A.

BE IT FURTHER RESOLVED that Resolution R-2022-067, which adopted the prior Policy, is hereby rescinded.

UPON MOTION OF Council Member Guthrie, seconded by Council Member Inman, the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 5th day of March 2024, by the following vote:

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AYES: 4 Guthrie, Inman, Newton, Waage
NOES: 0
ABSENT: 1 Reiss
ABSTAIN: 0
RECUSED: 0
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
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CITYOFPISMOBEACH

PURCHASING

POLICY&PROCEDURES

MANUAL
PURCHASINGPOLICYANDPROCEDURES

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Preface

ThismanualcontainspoliciesandproceduresthatshouldbefollowedbyCityemployeesrequired toperformpurchasingactivitiesinthecourseoftheirduties.
ThecontentsareapplicabletoallCitydepartmentsandtoallcomponentunitsgovernedbythe PismoBeachCityCouncil.

ThismanualhasbeenpreparedtoassistCityofPismoBeachstaffinthepurchaseofgoodsand services.Theestablishmentofaformalpurchasingsystemisanintegralpartofagoodfinancial managementsystem.EveryemployeemakingpurchasesonbehalfoftheCity,shouldbefamiliar withtheseguidelines.ItisrecommendedthatthePurchasingPolicyberequiredreadingfor managersandsupervisors.Thispolicyshouldbeusedasaguideforthedevelopmentofinternal policiesandprocedureswithinthedepartment.Inaddition,allemployeesrequiredtoconductCity purchasesmustbefamiliarwiththispolicy.Thismanualshouldbemadereadilyavailableto employeesasareferenceincarryingoutdayͲtoͲdaypurchasingactivitiesandintrainingnew employees.

Occasionally,uniqueoperatingrequirementsexistinaDepartmentthatmayrequiredeviatingfrom theprocedures.Deviationsfromthepolicymustreceivepriorapprovalinwritingfromthe AdministrativeServicesDirector,orhis/herdesignee.

Acknowledgements

TheCitywishestorecognizeandthanktheCityofWestHollywood,theCityofSanLuisObispo, theCityofAtascadero,theCityofArroyoGrande,andtheCaliforniaSocietyofMunicipalFinance Officers,forallowingtheCityofPismoBeachtoutilizeinformationfromtheirrespective PurchasingPoliciesandprogramstodevelopthismanual.

Originallypreparedon:June23,2004
Revisedon:December18,2012
Revisedon:March5,2019
Revisedon:June6,2019
Revisedon:September3,2020
Revisedon:February21,2020
Revisedon:December21,2021
Revisedon:July19,2022
Revisedon:March5,2024

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TableofContents

SECTIONI:GENERALINFORMATION....................................................................................4 A.GLOSSARY........................................................................................................................4 B.INTRODUCTIONTOTHEPURCHASINGSYSTEM...............................................................8

1.AuthorityforEstablishingPoliciesandProcedures.......................................................8

2.OverviewofthePurchasingProcess.............................................................................8

3.PurchasingPolicies........................................................................................................9

4.LocalBusinessPreferencesPolicy...............................................................................10

5.Federal,StateandOtherGrantPrograms...................................................................12

6.SignatureAuthorization..............................................................................................12

7.DepartmentResponsibilities.......................................................................................13

8.Paymentauthorization...............................................................................................13

9.EnvironmentallyPreferablePurchasingPolicy............................................................14 SECTIONII:GENERALPURCHASINGGUIDELINES................................................................16 A.THEPURCHASINGMATRIXFORGENERALSUPPLIES,MATERIALS,ANDEQUIPMENT, GENERALTRADEANDPROFESSIONALSERVICES:..........................................................17 B.THEPURCHASINGMATRIXFORPUBLICPROJECTS:.......................................................18 SECTIONIII:PURCHASINGTRANSACTIONS.................................................................................19 A.GENERALSUPPLIES,MATERIALS,ANDEQUIPMENT......................................................19 B.PROPRIETARYGOODSANDEQUIPMENT.......................................................................24 C.GENERALTRADECONTRACTSERVICES..........................................................................28 D.PROFESSIONALSERVICES...............................................................................................35 E.PUBLICPROJECTS...........................................................................................................44 F.CAPITALEXPENDITURES.................................................................................................51 SECTIONIV:EXCEPTIONSTOCOMPETITIVEPROCUREMENTPROCEDURES................................53 A.SOLESOURCEPROCUREMENT.......................................................................................53 B.COOPERATIVEAGREEMENTS.........................................................................................53 C.PIGGYBACKPURCHASES................................................................................................53 D.STANDARDIZATION........................................................................................................54 E.AWARDANDRECORDOFSOLESOURCE,COOPERATIVE,PIGGYBACK,AND STANDARDIZATIONPROCUREMENTS............................................................................54 F.EMERGENCYPROCUREMENTS.......................................................................................55 G.ROUTINEEXPENDITURESFORUTILITIES,PAYROLL&OTHERSERVICES.........................55 H.FEDERALLYFUNDEDPROCUREMENTPOLICY................................................................55 I.ADMINISTRATIVEEXCEPTIONSPOLICYFORPURCHASING.............................................64 J.VEHICLEEXCEPTIONSPOLICYFORSPECIALCIRCUMSTANCES.............................................65 SECTIONV:PURCHASEORDERS..................................................................................................66 A.REQUIREMENTSͲWHENTOUSE...................................................................................66 B.REQUESTINGAPURCHASEORDER.................................................................................66 C.SPECIALPURCHASEORDERS..........................................................................................67 D.YEARENDPROCESSFORENCUMBRANCES/PURCHASEORDERS...................................67 SECTIONVI:PAYMENTOFINVOICES...........................................................................................69 PURCHASINGPOLICYANDPROCEDURES

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A.RECEIPTOFGOODSANDSERVICES................................................................................69 B.INVOICEPROCESS..........................................................................................................69 SECTIONVII:CITYCREDITCARDCHARGES..................................................................................72 A.OVERVIEW.....................................................................................................................72 B.POLICIES.........................................................................................................................72 SECTIONVIII:PETTYCASHREIMBURSEMENT.............................................................................78 SECTIONIX:BUDGETREVISIONS/TRANSFERS.............................................................................80 A.WHENTOUSE................................................................................................................80 B.PROCESSINGAREQUESTFORBUDGETTRANSFER/REVISION........................................80 C.SPECIALSITUATIONS......................................................................................................81 SECTIONX:TRAVEL&MEALPOLICY...........................................................................................82 A.PURPOSE........................................................................................................................82 B.OVERVIEW.....................................................................................................................82 C.GENERALPOLICYSTATEMENT.......................................................................................82 D.GENERALTRAVELGUIDELINES.......................................................................................83 E.DEFINITIONS..................................................................................................................84 F.PLANNINGANOFFICIALTRIP.........................................................................................87 G.MEALALLOWANCES......................................................................................................90 H.SUBMITTINGTRAVELFORMS.........................................................................................94 SECTIONXI:FRAUDPREVENTIONANDREPORTINGPOLICY........................................................97 A.PURPOSE........................................................................................................................97 B.APPLICABILITY................................................................................................................97 C.GENERALPOLICYANDRESPONSIBILITY.........................................................................97 D.PROCEDURES.................................................................................................................98 SECTIONXII:COUNCILMEMBERREIMBURSEMENTPOLICY......................................................101 A.PURPOSE......................................................................................................................101 B.DEFINITIONS................................................................................................................101 C.COUNCILMEMBERREIMBURSEMENTPOLICY.............................................................101 D.SUBMITTINGEXPENSEREIMBURSEMENTFORMS.......................................................102 AppendixA:LISTOFFORMS......................................................................................................104

1.LocalBusinessPreferenceOptionForm....................................................................104

2.SignatureAuthorization............................................................................................104

3.IRSformWͲ9.............................................................................................................104

4.PurchaseOrderRequest–LaserficheForms.............................................................104

5.PettyCashVoucherFormͲSharePoint.....................................................................104

6.TravelForms.............................................................................................................104

7.CreditCardFormsͲSharePoint.................................................................................104

8.PublicProjectTrackingSheet....................................................................................104

9.RequestforBudgetTransfer/Revision–LaserficheForms.......................................104

10.CheckRequestFormͲSharePoint.............................................................................104

11.CityofPismoBeachGovernmentExemptform........................................................104 PAGE 4 OF 55
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SECTIONI:GENERALINFORMATION

Thepurposeofthissectionistoprovidethereaderwithgeneralinformationasitrelatesto PurchasingfortheCityofPismoBeach.AllFormsrelatedtothisPurchasingPolicyarelocatedin thefollowingfolder:S:\PurchasingPolicy\PurchasingForms A.GLOSSARY

Thefollowingglossaryhasbeenpreparedinordertoprovideguidanceintheterminology introducedinthisdocument.

AssetMisappropriations–Theftormisuseofanorganization’sassets.
x Cash.

o FraudulentDisbursements–Perpetratorcausesorganizationtodisbursefundsthrough sometrickordevice(e.g.submittingfalseinvoices/timecards/sheets,expense reimbursementschemes,checktampering,etc.)
o Skimming–Cashisstolenfromanorganizationbeforeitisrecordedontheorganization’s booksandrecords.
o CashLarceny–Cashisstolenfromanorganizationafterithasbeenrecordedonthe organization’sbooksandrecords.

x Inventoryandallotherassets.

o Misuse–Misuseofanorganization’sinventoryorassetsforpersonaluse(e.g.City vehicles,computers,supplies,etc.)
o Larceny–Inventoryorotherassetsarestolenfromanorganization.
BusinessͲacompanyorotherorganizationthatbuysandsellsgoods,makesproduct,orprovides services.Typesofbusinessincludecorporation,partnership,individual,soleproprietorship,joint venture,oranyotherprivatelegalentity.

ChangeOrderͲAwrittenordersignedbytheCityManager,orhis/herdesignee,directingthe supplierorcontractortomakechangesormodificationstoanexistingorder.Thechangeorder maymakewrittenalterationtothespecifications,deliverypoint,rateofdelivery,periodof performance,price,quantity,orotherprovisionofthecontract.
ContractͲAnyauthorizedwrittenCityagreement,regardlessofwhatitiscalled(purchaseorder, contract,etc.),fortheprocurementofsupplies,equipment,services,orconstruction.
ContractorͲAnypersonand/orbusinesshavingacontractwiththeCityofPismoBeach.
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ConstructionͲTheprocessofbuilding,altering,improvingordemolishinganypublicstructureor building,orotherpublicimprovementsofanykindtoanypublicrealproperty.Itdoesnotinclude theoperation,orpreventativemaintenanceofexistingstructures,buildings,orrealproperty.
Corruption–Wrongfullyuseinfluenceinabusinesstransactioninordertoprocuresome benefitforthemselvesoranotherperson,contrarytodutytoemployerortherightsofanother.
x ConflictsofInterest–Anundisclosedeconomicorpersonalinterestinatransactionthat adverselyaffectstheemployer.

x Bribery–Theoffering,giving,receiving,orsolicitingofanythingofvaluetoinfluencean officialactorabusinessdecision.

x IllegalGratuities–Apartywhobenefitsfromanofficialactorabusinessdecisiongivesagift toapersonwhomadethedecision.Anillegalgratuitydoesnotrequireproofofintentto influence.

x EconomicExtortion–Anemployeedemandsthatavendor/contractor/etc.paytoinfluence anofficialactorabusinessdecision.

CostReimbursementContractͲAcontractunderwhichacontractorisreimbursedforcosts whichareallowableandallocableinaccordancewiththecontracttermsandtheprovisionsof thismanual.

EmergencyPurchaseͲThepurchaseofgoodsorservicesisneededforasituationwherethe health,safety,orwelfareofthepublicisendangeredifimmediatecorrectiveorpreventative actionisnottaken.

EmployeeͲForthepurposesifthesepurchasingpolicyandprocedures,anindividualdrawinga salaryorwagesfromtheCity,whetherelectedornot;anynonͲcompensatedindividual performingpersonalservicesfortheCityoranydepartment,agency,commission,council,board, oranyotherentityestablishedbytheexecutiveorlegislativebranchoftheCity;andanynonͲ compensatedindividualservingasanelectedofficialoftheCity.
EncumbranceͲAnencumbranceisanoutstandingpurchaseorderforgoodsorservices;aportion ofthebudgetappropriationisreservedintheamountofthepurchaseorder.Encumbranceshelp toensureadministrativeandbudgetarycompliance.

FacilityͲAnyplant,building,structure,groundfacility,realproperty,street,highway,orother publicworkenvironment;andanyutilitysystemownedbytheCity,subjecttothelimitationon utilitysystemsstatedinthe“PublicProject”definition.
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ForceAccountͲWorkperformedonpublicprojectsusinginternalresources,includingbutnot limitedtolabor,equipment,materials,supplies,andsubcontractsoftheCity.
Fraud–Anintentionalmisrepresentation,deceit,orconcealmentofamaterialfactknowntothe personaccusedofthefraud,withtheintentiononthepartofthatpersonoftherebydepriving anotherpersonortheCityofproperty,legalrightsorotherwisecausinginjury.
FraudulentStatements–Falsificationofanorganization’sfinancialstatements
GoodsͲarticlesforsaleoruse,oftenthoseproducedforlaterconsumption.
ImmediateFamilyͲSpouse,children,parents,brothers,andsisters.
LocalVendorͲAnybusiness,includingaCorporation,partnership,individual,soleproprietorship, jointventure,oranyotherprivatelegalentity,whichmaintainsaphysicalworkingofficewithin theCitylimitsoftheCityofPismoBeach.

LocalVendorPreferenceͲreferstothesalestaxportionofaquote/bidfromalocalvendor.The salestaxamountshouldbedeductedfromthelocalvendor’stotalquote/bidamountasthose fundsarereturnedtothecommunitythroughsalestaxrevenues.
MaintenanceWorkͲRoutine,recurring,andusualworkforthepreservationorprotectionofany publiclyownedorpubliclyoperatedfacilityforitsintendedpurposes;minorrepainting; resurfacingofstreetsandhighwaysatlessthanoneinch;landscapemaintenance,including mowing,watering,trimming,pruning,planting,replacementofplants,andservicingofirrigation andsprinklersystems;andworkperformedtokeep,operate,andmaintainpubliclyownedwater, power,orwastedisposalsystems,including,butnotlimitedto,dams,reservoirs,powerplants, andelectricaltransmissionlinesof230,000voltsandhigher.
NoticeInvitingBidsͲAlldocuments,whetherattachedorincorporatedbyreferenceutilizedfor solicitingsealedbids.InvitationsforBids(IFB)areawardedtothelowestresponsibleand responsivebidder.
OccupationalFraudͲUseofone’soccupationforpersonalenrichmentthroughthedeliberate misuseormisapplicationoftheemployingorganization’sresourcesorassets.Therearethree majorcategoriesofoccupationalfraud.

OthersimilarirregularitiesͲAnyactivityinvolvingquestionablebehaviororbusinessdealingsby membersofthepublic,contractors,vendors,agentsorCityemployees,thatputCityrevenue, property,informationandotherassetsatriskofwasteorabuse.
PersonͲAnybusiness,individual,corporation,union,committee,club,otherorganization,orgroup ofindividuals.

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PettyCashExpendituresͲareforminor,unscheduledandimmediatepurchasesinwhichcashisthe preferredmethodofpayment.Itemssuchaspostagechargesandfreightchargesrepresentpetty cashexpenditures.

PriceAnalysisͲTheevaluationofpricedata,withoutanalysisoftheseparatecostcomponents andprofitasincostanalysis,whichmayassistinarrivingatpricestobepaidandcoststobe reimbursed.

ProcurementͲThebuying,purchasing,renting,leasing,tradingorotherwiseacquiringofany supplies,equipment,services,orconstruction.Italsoincludesallfunctionsthatpertaintothe obtainingofanysupplies,equipment,services,orconstruction,includingdescriptionsof requirements,selectionandsolicitationofsources,preparation,andawardofcontracts,andall phasesofcontractadministration.

PublicProjectͲTheconstruction,reconstruction,erection,alteration,restoration,improvement, demolition,andrepairworkinvolvinganyfacilityowned,leased,oroperatedbytheCity.The definitionalsoincludespaintingorrepaintinganyfacilityowned,leasedoroperatedbytheCity. Construction,erection,improvement,orrepairofdams,reservoirs,andelectricaltransmission linesof230,000voltsandhigherthatareownedbytheCity,areconsideredapublicproject. Publicprojectdoesnotincludemaintenancework.

PurchaseͲThebuyingorobtainingofanygoodsand/orservices.Italsoincludesallfunctionsthat pertaintoobtainingthegoodsandservices.

PurchasingOfficerorAgentͲThePurchasingOfficershallbetheheadofandberesponsiblefor theadministrationandinternalcontroloftheCitypurchasingpoliciesandprocedures.The PurchasingOfficershallbetheCityManagerorhisAgent.TheAgentcanbeanauthorized employeeordesignateddepartment.

RequestForProposals(RFP)ͲAlldocuments,whetherattachedorincorporatedbyreference, utilizedforsolicitingproposals.

ResponsibleBidderͲmeansabidderwhohasthecapacitynallrespectstoperformfullythe requirementsoftheCity,andthereliabilitywhichwillassuregoodfaithperformance.
ResponsibleBuyerͲmeansanyCityemployeeauthorizedtoordergoodsorservicesin accordancewiththepoliciesandproceduresstipulatedinthismanual.Theemployeecanbethe DepartmentHeadoranyonehe/shedesignatesasaresponsiblebuyer.
ServicesͲThefurnishingoflabor,time,oreffortbyacontractor,notinvolvingdeliveryofa specificproductotherthanreportswhicharemerelyincidentaltotherequiredperformance. “Services”shallincludeprofessionalservicessuchasArchitects,Lawyers,CertifiedPublic PAGE 6 OF 55
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Accountants,Engineers,etc.“Services”shallnotincludeemploymentagreementsorcollective bargainingagreements.

SpecificationͲAnydescriptionorscopeofworkofthephysicalorfunctionalcharacteristicsorof thenatureofsupplies,equipment,service,orconstruction.Itmayincludeadescriptionofany requirementforinspection,testingordeliveryofsupplies,equipment,services,orconstruction.
SuppliesͲAllproperty,includingbutnotlimitedtoequipment,materials,printing,insurance,and leasesofrealproperty,excludinglandorapermanentinterestinland.
TermsandConditionsͲAnydescriptionofthephysicalorfunctionalcharacteristicsofgoodsor servicesbeingpurchased.Itincludesanydescriptionofrequirementforinspecting,testing,or preparinggoodsorservicesfordelivery.Alsoincludedareanydescriptionspertainingtothe completionofthepurchaseorcontractsuchasdeliverydate,cashdiscounts,etc.
B.INTRODUCTIONTOTHEPURCHASINGSYSTEM

1.AuthorityforEstablishingPoliciesandProcedures

ThePismoBeachMunicipalCodeChapter3.08setsforthinbothgeneralandspecific termsthepoliciesandproceduresoftheCityregardingpurchasing.Thosepoliciesand proceduresareincorporatedintothismanualbyreferenceandprovidetheauthorityand basisonwhichithasbeenprepared.

2.OverviewofthePurchasingProcess

ThebasicpurchasingpolicyoftheCityofPismoBeachistoobtainqualitysupplies, services,vehiclesandequipmentneededfortheproperoperationofitsvariousdivisions atthelowestpossibleoverallcost.Thisincludesmaintainingapurchasingsystemthat ensuresmaximumuseofthefairandopencompetitionandreceiptofthebestvaluefor fundsavailable,consistentwithapplicablelawsandregulations.
Thepurchasingfunctionsaredecentralized,witheachdepartment/divisionresponsible forcompliancewithCitypoliciesandprocedures.Purchasingresponsibilityandauthority shallbedelegatedtothelowestpossiblelevelconsistentwithgoodbusinesspracticeand soundfinancialmanagementpolicytotheextentpractical.

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3.PurchasingPolicies

ThefollowingpoliciesapplytoallpurchasesmadebytheCityofPismoBeach:
a.PurchasesshallbeconsistentwitheithertheadoptedannualbudgetorCityCouncil approvalofadditionalappropriations.Itistheresponsibilityofthe department/divisiontomaintainbudgetcontroloftheirindividualbudgets.Ultimate responsibilityfortheindividualbudgetrestswiththeDepartmentDirector.
b.Allpurchasesshallbeofthequalitydeemednecessarytosuittheintendedpurpose, suitable,andbeneficialtotheCity,andintheCity’sbestinterest.
c.Competitivequotationswillbesoughtbasedonestablisheddollarlimits.
d.Thedollarlimitsforpurchasesandbidsshallbeestablishedbyordinanceor resolution.Purchasesshallnotbesplittoavoidtherequiredproceduresorcertain dollarlimits.

e.Receiptofgoodsorserviceswillbeverifiedandapprovedbythepurchaserofthe supplyorservicepriortopaymentofinvoices.

f.Theemergencypurchaseofgoodsisauthorizedundercertainconditions.
g.Purchaseofsupplies,services,orequipmentover$10,000shallbemadewithan authorizedPurchaseOrderunlessotherwiseexemptedintheseguidelines.Ifa purchaseismadeoutsideofthisguideline:

x SuchpurchasesarevoidandnotconsideredanobligationoftheCityofPismo Beach.
x Invoiceswithoutanauthorizedpurchaseordermaybereturnedtothevendor unpaid.
x AllsuchtransactionsshallbebroughttotheimmediateattentionoftheCity Manager.

h.Employeesshallnothaveadirectorindirectfinancialinterestinanycontractor purchaseofgoodsandservicesenteredintobytheCity,orshallderiveanypersonal benefitfromtheCity’spurchaseofgoodsorservices.
i.EmployeesshallnotusetheCity’spurchasingprocedurestoobtainpropertyfor personaluse.

j.Employeesareprohibitedfromdraftinganyspecificationsforbidsinsuchawayasto intentionallylimitthebiddingdirectlyorindirectlytoanyonebidder. PAGE 7 OF 55
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4.LocalBusinessPreferencesPolicy

TheCity’sPurchasingSystemdefinedinChapter3.08oftheCity’sMunicipalCodewas “…adoptedinordertoestablishefficientproceduresforthepurchaseofsuppliesand equipment,tosecuresuppliesandequipmentatthelowestpossiblecostcommensurate withqualityneeded…”

SetforthbelowisaLocalBusinessPreferencePolicywhichisdesignedtooffset competitivedisadvantagessufferedbyPismoBeachVendors,includingbutnotlimitedto highrentsrelativetoNonͲLocalVendors,andwhichisfoundanddeclaredtobetobe compatibleandconsistentwiththeCity’sPurchasingSystem(MunicipalCodeChapter

3.08).

a. GeneralGuideline:ConsistentwiththeCity’sPurchasingSystem,theCitywillstriveto purchasesupplies,equipmentandrelatedservicesatthelowestpossiblecost commensuratewithqualityneeded.

Indeterminingthelowestpossiblecostcommensuratewithqualityneeded,theCity shallincludeinitscomparison(s)ofpurchaseoptionsallthosecostsandexpenses whichtheCitydeemsappropriate,whichmayincludecomparabledeliveryor transportationcoststoaspecifiedCitysiteorlocation,adjustmentsforeconomic valuesofqualitydifferentials,anduptofiveyearsofcomparableexpectedcostsor useandmaintenance.

i. Thebid,quoteorproposal(hereinafter,allincludedintheterm“Bid”)whichthe CitydeterminesbestmeetstheabovestatedGeneralGuidelinewillbe consideredtheLowBid.

ii. Thebusiness,contractororvendor(hereinafter,allincludedintheterm “Business”or“Vendor”)whichsubmitstheLowBidwillbeconsideredtheLow Bidder.

b. ClassificationofBusinessesandVendors:ForpurposesofthisLocalBusiness PreferencePolicy,allVendorswillbeclassifiedasbeingpartofoneoftwogroupsof Vendors:

i. PismoBeachVendororLocalVendor

ii. NonͲLocalVendor

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c. DefinitionsofBusinessesandVendors:

i. AqualifiedPismoBeachVendorshallbedefinedasanyindividual,partnership, corporationorotherentitywhichmeetsallvendorqualificationssetbytheCity fororpertinenttothesubjectpurchase;whichhasmaintaineditsprimaryoffice, distributionpointorplaceofbusinesswithintheCityforaminimumofoneyear precedingthesubmissionofitsquote/bid;andwhichhasshownbytherecords maintainedbytheCity’sAdministrativeServicesDepartmentashavingsecured allnecessarybusinesslicensesandashavingpaidallapplicablefeesandtaxes imposedbytheCity.Inaddition,thebusinessmustreportandpaysalestaxto theStateofCalifornia,andmustidentifythepointofsalefortaxable transactionsasalocationwithinthePismoBeachcitylimits.Thispointofsale identificationprovidesforallocationofsalestaxreceiptstotheCityofPismo Beach,pursuanttoCaliforniaRevenueandTaxationCodeSection72.
ii. AqualifiedNonͲLocalVendorshallbedefinedasanyindividual,partnership, corporationorotherentitywhichmeetsallvendorqualificationssetbytheCity fororpertinenttothesubjectpurchase,butwhichdoesnotqualifyasaPismo BeachVendor.

iii. ThetermLocalVendorshallincludethosebusinesseswhichqualifyasaPismo BeachVendor.

d. OperationoftheLocalBusinessPreferenceProcess

InsolicitingBids,theCitywillprovidetothosebusinessestheCitydeemstobe(or possiblybe)qualifiedLocalVendors,aLocalBusinessPreferenceOptionForm,which givestheLocalVendorthechoicetoparticipate(orNOTparticipate)intheLocal BusinessPreferenceProcess.
e. TheLocalBusinessPreferenceProcessshallconsistoftwoStages.
i. InStageOne,priortoconsideringanyLocalBusinessPreference,theCityshall completeacomparisonofthequalifiedBidsreceived,todeterminetotheCity’s satisfactionwhichBidbestmeetstheabovestatedGeneralGuideline.ThisBid willbeconsideredtheStageOneLowBid.

x IftheStageOneLowBidwassubmittedbyaPismoBeachVendor,thenthe StageOneLowBidshallbeconsideredtheLowBid.Insuchcase,StageTwo willbebyͲpassedasnotmeaningful,andtheCityshallcompletethepurchase accordingly.
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x IftherearenoqualifiedBidsfromPismoBeachVendors,thentheStageOne LowBidshallbeconsideredtheLowBid,andtheCityshallcompletethe purchaseaccordingly.

x However,ifthereAREqualifiedBidsfromoneormoreLocalVendors(Pismo BeachVendors),buttheStageOneLowBidwassubmittedbyaNonͲLocal Vendor,thentheLocalBusinessPreferenceProcessshallmovetoStageTwo.
ii. StageTwoinvolvesimplementationoftheOptional2%LocalDiscountPortion oftheLocalBusinessPreferenceProcessasfollows:

x IftheabovedescribedStageOneLowBidwassubmittedbyaNonͲLocal Vendor,ANDifoneormorePismoBeachVendorssubmittedaqualifiedBid, includingasignedOptiontoparticipateintheOptional2%LocalDiscount Portion,thentheCitywillcomputeeachPismoBeachVendor’sLocal PreferenceStageTwoBidbyreducingby2%thedollaramountofthatPismo BeachVendor’squalifiedBidconsideredinStageOne.
x IfatleastonePismoBeachVendor’sLocalPreferenceStageTwoBidisless thanthepreviouslycomputedStageOneLowBid,thelowestPismoBeach Vendor’sLocalPreferenceStageTwoBidshallbeconsideredtheStageTwo LowBid.InThatcase,thebalanceofStageTwowillbebyͲpassedasnot meaningful,andtheCityshallcompletethepurchaseoftheabovedescribed StageTwoLowBid.
x IfNOPismoBeachVendor’sStageTwoBidislessthanthepreviously computedStageOneLowBid,thenStageTwoiscompleted,andtheCityshall completethePurchaseofthepreviouslycomputedStageOneLowBid.

5.Federal,StateandOtherGrantPrograms

Federal,Stateandothergrantprogramsmayrequirespecialconditionsthataremore stringentthanCityprocedures.Thedepartmentacceptingthegrantisresponsibleto ensurethatallgrantprovisionsaremetandcompliedwith.
Forfederallyfundedpurchases,theCityfollowstheFederallyFundedProcurementPolicy (PismoBeachPurchasingPolicy&ProceduresManualSectionIV.H.)tocomplywiththe OfficeofManagementandBudget’s(OMB)newguidancerequirementUniform AdministrativeRequirements,CostPrinciples,andAuditRequirementsforFederal Awards,Title2U.S.CodeofFederalRegulationsPart200.

6.SignatureAuthorization

a.TheDepartmentHeadshallcompleteandforwardtoAdministrativeServicesa SignatureAuthorizationform,identifyingthoseemployeesapprovedbythe

PURCHASINGPOLICYANDPROCEDURES

13

DepartmentHeadtosignonvariousfinancialandotheradministrativedocuments. TheformshallbedevelopedbytheAdministrativeServicesDirectorandrevisedfrom timetotimeasneeded.
b.Theformshallidentifytheemployee’snameandsignatureandlistthespecificdollar amountseachemployeeisauthorizedtosign.ItistheDepartmentHead’s responsibilitytokeeptheinformationcurrent.

c.Invoices,purchaseorderrequests,contracts,changeorders,andanyother documentssubmittedtotheFinanceDepartmentmissingtheappropriatesignatures willbereturnedtotheoriginatingdepartment.

d.OnlyRegularorProbationaryCityemployeesshallbeauthorizedtosigndocuments obligatingtheCitytoexpendpublicmonies.TemporaryorVolunteeremployees,or individualsundercontractwiththeCity,maybeabletoacquireitemsbutallreceipts mustbecountersignedbyanauthorizedemployeeorDepartmentHead.
e.TheDepartmentHeadshalluseappropriatediscretiontokeepthenumberof authorizedsignaturestoaminimum,toassurebettercontroloverdepartmental expenditures.

7.DepartmentResponsibilities

Itistheresponsibilityoftheacquiringdepartment/divisionto:
a.Makepurchasesinaccordancewithestablishedpoliciesandprocedures.
b.Verifyanappropriationisavailableforthepurchase.
c.Anticipatethedepartment/divisionneedsinordertominimizetheneedfor emergencypurchases.

d.Reviewgoodsandservicesreceivedtoensureconformitywiththepurchaseorderor contract.

e.Whenacostdiscrepancyforgoodsorservicesdissatisfactionarises,notifythevendor orsuppliertoresolve.Ifnotresolved,contacttheAdministrativeServicesDepartment tocomeupwithasolutiontoresolvetheissuesothatapaymentcanbearranged.

8.Paymentauthorization

a.Anauthorizedsignatureontheinvoice,receiptorotherbackupshallbeconsidered authorizationforpayment.Thesignatureshallindicatethatthesignerhas: PAGE 9 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

14

x VerifiedthattheCityhasreceivedthegoodsorservicesingoodworking condition.
x Verifiedthatthepurchasecomplieswiththispurchasingpolicyandthatfunds areavailableforthepurchase.

b.IncertaininstancesitmaybeintheCity’sbestinteresttoissuepaymentpriortoreceipt oftheauthorizingsignatureontheinvoice.TheCityManagerorhis/herdesigneemay authorizepaymentinthoseinstances.

c.Checksshallbeprocessedandissuedbyanemployeeotherthanchecksigner.

9.EnvironmentallyPreferablePurchasingPolicy

a. ItisthepolicyoftheCityofPismoBeachtoreducetheenvironmentalimpactofits purchasesandcomplywithSenateBill(SB)1383Lara,Chapter395,thatwassignedinto lawinSeptember2016asastatewideefforttoreduceemissionsofshortͲlivedclimate pollutantscreatedbyorganicwaste,dairy,andlivestock.Theemissionsreductiontargets mustreduceorganicwastedisposal50%by2020and75%by2025.Inordertoreduce methaneemissionsfromorganicwastedisposal,beginningJanuary1,2022,SB1383 requiresthatCitystaffandtheCity’svendorspurchasepaperproductsthatcontain recycledcontentatleast30%,byfiberweight,postͲconsumerfiber: i. whenavailableatnogreatercostthannonrecycledproductsand ii. thefitnessandqualityareequaltononrecycledproducts. Moreinformationisavailableat:
https://www.calrecycle.ca.gov/organics/slcp/procurement/RecycledPaper
b. ThePublicContractCode12207definesthepaperproductstoincludeofficesupplies, writingandprintingpapers,printedmaterials,andpaperjanitorialsupplies.
c. City’svendorsmustcertifypostconsumercontentandrecyclabilityclaims.
d. Citystaffmustmaintainrecordscertifyingtheminimumrecycledcontentandrecyclability ofpaperpurchaseseitherwiththefollowingtwooptions:
i. Option1:ProductVendorCertification:
Writtendocumentationfromtheproductvendorcertifying:
x Theproductsareeligibletobelabeledwithanunqualifiedrecyclablelabel, meaningthatatleast60percentofconsumersorcommunitieswherethe itemsaresoldhaveaccesstorecyclingfacilitiesfortheproducts x Theminimumpercentage,ifnottheexactpercentage,ofpostconsumer materialintheproducts

PURCHASINGPOLICYANDPROCEDURES

15

ii. Option2:ProductVendorCertificationandOtherVerification x Writtendocumentationfromtheproductvendorcertifyingtheproducts areeligibletobelabeledwithanunqualifiedrecyclablelabel,meaningthat atleast60percentofconsumersorcommunitieswheretheitemsaresold haveaccesstorecyclingfacilitiesfortheproducts,AND x Documentation,suchasrecordofaproductlabel,catalog,invoice,ora manufacturerorvendorwebsite,thatverifiestheminimumpercentage,if nottheexactpercentage,ofpostconsumermaterialintheproducts

PAGE 10 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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SECTIONII:GENERALPURCHASINGGUIDELINES

Aspreviouslystated,thepurchasingprocessisdecentralized;theDepartmentHeador designatedemployeerequestingthemerchandiseorservice("Requestor")seeksoutpotential vendors,obtainsthebidsifrequired,andinteractswiththevendor.
Theprocessbeginswiththedetermination,ofwhataproductorserviceisneeded.TheRequestor isresponsibleforassuringthatadequatebudgetedfundsareavailableinthebudgetunitusingthe MonthlyExpenditureReportsorbyusingtheHarrisFinancialsystemontheCitynetwork.The Requestorisalsoresponsibleforidentifyingpotentialvendors.
Oncethesedecisionsaremade,theindividualwillneedtodetermineestimatedpriceofthegood orservice.Basedonthatinformation,thefollowingpoliciesapply.
ThissectionincludesaPurchasingMatrixforGeneralSupplies,Materials,andEquipment,General TradeandProfessionalServicesaPurchasingMatrixanddescriptionforCapitalProjections.Thetwo PurchasingMatrixesareintendedforeaseofuseonly.Intheeventofaconflictbetweenthematrix andthewrittenpoliciesinSectionIII,thelattershallcontrol.Pleasenote,someofthespecial transactions/purchasesarenotincludedinthematrix.Thenextsectioncoversthesespecial situationsindetail.

PURCHASINGPOLICYANDPROCEDURES

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A. THEPURCHASINGMATRIXFORGENERALSUPPLIES,MATERIALS,ANDEQUIPMENT, GENERALTRADEANDPROFESSIONALSERVICES:

PurchaseAmount
Upto$10,000
$10,001to
$50,000
$50,001to
$100,000
Morethan
$100,000
BidProcess
Nobid.If
contract
required,
purchaseorderis
required
3written
quotations
recommended
InformalQuote.3
writtenquotations
requiredincluded
withPurchase
Order
FormalBid
ApprovalsRequired
Designated
Employeeor
Supervisor
Department
Head;
Purchasing
officer
CityManager
CityCouncil
PurchaseOrderand
ContractNeeded
No
Yes
Yes
Yes
PAGE 11 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

18

B. THEPURCHASINGMATRIXFORPUBLICPROJECTS:
BidprocessfollowstheCaliforniaUniformPublicConstructionCostAccounting(CUPCCA) proceduresforallPublicProjectsassetforthinPublicContractCodeSections22030to22045

PurchaseAmount
$5,000to
$60,000
$60,001to
$100,000
$100,001to
$200,000
Over$200,000
BidProcess(Follows

CUPCCA)
3written
quotations
recommended
InformalBid.3
writtenquotations
required
InformalBid.3
writtenquotations
required
FormalBid
ApprovalsRequired
Department
Head;
Purchasing
officer
CityManager
CityCouncil
CityCouncil
PurchaseOrderand
ContractNeeded
Yes
Yes
Yes
Yes

PURCHASINGPOLICYANDPROCEDURES

19

SECTIONIII:PURCHASINGTRANSACTIONS

A.GENERALSUPPLIES,MATERIALS,ANDEQUIPMENT

Thissectionprovidesguidelinesforthepurchaseofgeneralsupplies,materials,andequipment. Supplies,materials,andequipmentshallconsistofanyandallarticlesorthings,whichshallbe furnishedtoorusedbyanydepartment,excludingproprietaryequipmentandgoods(SectionC) andanygoodspurchasedaspartofaPublicWorksProject(SectionE).
Ininstanceswheregoodsandservicesarepurchasedtogetherfromonevendor,thissectionshall applyifthepredominantportionofthepurchaseisgoods(i.e.Apurchaseofequipmentfor$5,000 witha$300installationfeewouldbecoveredunderthissectionofthepolicy.Arepairofequipment with$5,000inlaborand$300inpartswouldbecoveredunderSectionBͲͲGeneralTradeServices.
Policy

Therearefourlevelsofauthorityfornormalpurchases:DepartmentStaffAward,DepartmentHead Award,CityManagerAward,andCityCouncilAward.Generally,authorityisestablishedbythedollar amountofthepurchase.

1. DepartmentStaffAward<$10,000
Thedesignateddepartmentstaffmayauthorizethepurchaseofsupplies,equipment,orservices asneededforpurchasesupto$10,000.Thesepurchasesdonotrequirecompetitivebiddingand departmentsaregivenconsiderablediscretioninthesepurchases.DepartmentHeadswill designatevaryinglevelsofauthoritydependingontheirmixofstaffinglevels.Forexample,a DepartmentHeadmayauthorizeoneortwomidͲmanagers(Divisionmanagers)toapprove itemsupto$10,000,whileanAdministrativeSecretarymayhaveauthorityupto$500to$2,500.

2.DepartmentHeadAward$10,001to$50,000
TheDepartmentHeadmayauthorizethepurchaseofsupplies,equipment,orservicesas neededforpurchasesupto$50,000.Itishighlyrecommendedthatstaffobtainthreewritten quotationsinwriting,andbeobtainedanddocumentedwiththe“PurchaseOrderRequest” form.Seeprocedureoutlinedinitem3.

3.CityManagerAward$50,001to$100,000
Generalsupplies,materialsandequipmentpurchasesover$50,000andunderorequalto $100,000mustbeawardedbytheCityManagerorhis/herdesignee.Informalbiddingshouldbe usedtoassurethemostcompetitivepriceisreceivedforanitem,whileavoidingtheadditional timeandexpenseinvolvedinformalbidding.

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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

20

3.1InformalQuotes:Thedepartmentshallmakeeveryattempttoreceiveatleastthreewritten quotationsinwriting.

ThreeQuotes:Thedepartmentshouldmakeeveryreasonableattempttoobtainatleastthreebids, howeveritisunderstoodthatattimesitisnotpracticalnorcosteffectivetocontinuesoliciting quotesuntilthreebidsarereceived.Intheeventthatthreeviablequotesarenotreceived,the divisionshalldocumentwhatstepsweretakentoobtainquotes,anyvendorscontractedthat declinedtobid,andifapplicablewhyitisnotpracticaltoreceivethreequotes.
Exceptions:TheinformalbidprocessmaybebypassedwithDepartmentHead,CityManageror PurchasingOfficerapproval,inthefollowingfourinstances:
x Inemergencysituationswheretimeisoftheessence,theappropriateDepartmentHead maydispensewithobtainingthreeinformalquotestoobtainmaterialsnecessaryindealing withtheemergency.Immediatelyfollowingtheemergency,theDepartmentHeadshall forwardacopyofthepurchaseorderalongwithanexplanationtotheCityManageror PurchasingOfficer.
x Whenoneknownsupplierisavailable,theDepartmentHeadshalldocumentthatitisa“Sole Source”purchase.MostsolesourcepurchasesshallbetheresultoftheCitydecidingthatit isinitsbestinteresttouseaspecificproprietaryitem.(i.e.Foreaseofmaintenance,theCity maychoosetoonlypurchaseonebrandofcomputers).
x Whenthereexistsothergovernmentalcontractsthatwerecompetitivelybid(suchasState Contracts,SLOCounty,SLOCity,orotherAgencies,etc.)thattheCityiseligibletouse. x Whenanitemhasbeenbidwithinthelast36monthsandthepricehasnotchanged.

3.2EvaluatingBids:Thedepartmentshallevaluatethethreeinformalquotesreceivedand determinethelowestmostresponsiblebid.TheCityreservestherighttoacceptthatbidwhichisin thebestinterestoftheCity.Whenselectingtherecommendedbidder,theDepartmentHeadwill takeintoconsideration:

x Price
x Ability,capacity,skill
x Abilitytomeettimerequirements
x Character,integrity,andreputation
x Previousvendorexperience
x Financialresourcesavailableforcontractperformance x Abilitytoprovidefuturemaintenanceandservice,ifnecessary

3.3PurchaseOrder:APurchaseOrderRequestshallbeprepareddetailingthevendorname, address,itembeingpurchased,totalpriceincludingtaxandshipping,andbudgetaccounttobe charged.ThePurchaseOrderRequestshallbesignedanddatedbytheauthorizeddepartment employee.(Ifanexceptionwasusedtobypasstheinformationbiddingprocedures,theDepartment HeadmustsignthePurchaseOrderRequest.)

PURCHASINGPOLICYANDPROCEDURES

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ThepurchaseorderpacketshallbesubmittedtotheCityManagerorPurchasingOfficerfor approval.He/shewillreviewthepurchaseorderpacketforconformitytothepurchasingpolicy,for compliancewithotherestablishedproceduresandforavailabilityoffunds.TheCityManageror PurchasingOfficershallthenapproveandsignthePurchaseOrderRequest.TheAdministrative ServicesDepartmentwillissueaPurchaseOrderandforwardtotheoriginatingdepartment.

3.4PurchasingItem:OncethedepartmenthasreceivedtheapprovedPurchaseOrderfromtheCity Managerorhis/herdesignee,theymaycontactthevendorandpurchasetheitem.Itemsmust generallybeshippedtoaCityaddressorworksite.

4.CityCouncilAward>$100,000
Generalsupplies,materials,andequipmentpurchasesover$100,000mustbeawardedbytheCity Council.Formalbiddingshouldbeusedtoassureallpossiblevendorsaregiventheopportunityto bidonmajorCitypurchases,therebyassuringtheCitythatithasreceivedthemostcompetitive price.Theformalprocessgenerallytakesmoretimeandexpensethaninformalbiddingandinsome instancesmayactuallynotbethemostcostͲeffectiveapproach.

4.1FormalBidding:Theinitiatingdepartmentshallberesponsibleforcompletionoftheformalbid process,however,theprocessshallbecoordinatedwiththeCityClerk’sOfficeandthe AdministrativeServicesDepartment.

4.2BidForms:Theinitiatingdepartmentshallprepareabidformincludingdetailedspecifications fortheitemtobepurchased.Thefollowingformatissuggestedforcompetitivebids:
Submissionofbids(orproposals)–Includedate,time,locationandbidnumberasassignedbythe CityClerk.Includeadetailedlistoftheinformationthebidorproposalshouldcontain.
Questions–Listthename,address,andtelephonenumberofthepersontobecontacted concerningquestionsabouttheproject.

Background–Provideasmuchbackgroundasnecessarytogivethebidderanunderstandingofthe environmentinwhichthejobwillbeperformedandtowhichthejobrelates.
ScopeofWork–Describeindetailtherequirementforthejobanddetailspecification.
Desiredprojectschedule–Beasspecificaspossible.
Minimumanddesirablequalifications–Beasspecificaspossible.
PerformanceBond–Whetheraperformancebondisrequiredandifso,theamountandformof bidderssecurity.

PAGE 13 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

22

NoticeInvitingBids:Theinitiationdepartmentshallalsoprepareanoticeinvitingbidsthatincludes thefollowing:

Ageneraldescriptionoftheitemtobepurchased.

Astatementindicatingwherebidforms,specificationsandbondingrequirementscanbeobtained.
Astatementspecifyingthetimeandplacefortheopeningofthebids.
PerCaliforniaPublicContractCode20164,thefirstpublicationofthenoticeshallbeatleasttendays beforethedateofopeningthebids.Thenoticeshallbepublishedatleasttwice,notlessthanfive daysapart,inanewspaperofgeneralcirculation,printedandpublishedintheCity.Thenoticemay alsobesenttoallapplicablevendors.

4.3BidOpening:SealedbidsshallbesubmittedtotheCityClerk’sofficeandshallbeclearly identifiedwiththeBidnumberontheenvelope.Faxedorotherelectronicbidsarenotacceptable.
Bidsshallbeopenedinpublicatthetimeandplacestatedinthepublicnotice.
TheCityClerkorhis/herdesigneeshallopenthebidsandshallrecordallbidsreceived.
Anybidreceivedafterthetimespecifiedinthenoticeshallberejected.
Whenabidder’ssecurityisrequired,itwillbeannouncedinthepublicnoticeinvitingbids.The amountshallbedeterminedatthetimeofpreparationofthebid.Itshallbeintheformofcash, certifiedorcashier’scheck,certificateofdepositinCityofPismo’sname,orbidbondmadepayable totheCityofPismoBeach.Whenabidder’ssecurityisrequired,abidshallnotbeconsideredunless oneoftheaforementionedformsofsecurityaccompaniesthebid.Biddersshallbeentitledtoreturn ofthebidsecuritywiththefollowingexception:

Thesuccessfulbiddermustexecutethecontractandfileacceptabledocumentswithinthirty(30) calendardaysfromthedateofawardunlessextendedbytheCityManager.Failuretoexecutethe contractshallbejustcauseforannulmentoftheawardandforfeitureofthebidder’ssecurity,not asapenalty,butasliquidateddamages.TheCityCouncilmay,uponrefusalorfailureofthe successfulbiddertoexecutethecontract,awardthecontracttothenextlowestbidder.
AllbidsreceivedshallbeavailableforinspectionduringregularbusinesshoursintheCityClerk’s officeforaperiodofnotlessthanthirty(30)calendardaysafterthebidopening.
RejectionofBids:TheCityreservestherighttorejectanyandallbids,toacceptorrejectanyoneor moreitemsofabid,ortowaiveanyirregularitiesorinformalitiesinthebidsorthebiddingprocess iftodosoisdeemedtobestservetheinterestsoftheCity.

PURCHASINGPOLICYANDPROCEDURES

23

DeterminingLowestResponsibleBidder:Awardthebidshallbetothelowestresponsiblebidder.All validresponsiblebidsshallbeconsideredindeterminingthelowestbid.TheCityreservestheright toacceptthatbidwhichisinthebestinterestoftheCity.Whenselectingtherecommendedbidder theDepartmentHeadwilltakeintoconsideration:

x Price
x Ability,capacity,andskill
x Abilitytomeettimerequirements
x Character,integrity,andreputation
x Previousvendorexperience
x Financialresourcesavailableforcontractperformance x Abilitytoprovidefuturemaintenanceandservice,ifnecessary
LocalVendorPreference:TheCityhasestablishedapolicythatprovidesforatwopercent(2%) preferencetolocalbiddersandvendors.(SeeSectionI).Thisisaccomplishedbyreducingthelocal vendor’sbidsby2%whencomparingsuchbidstothoseofotherbidders.
TieBids:Iftiebidsarereceived,qualityandservicebeingequal,thecontractshallbeawardedtoa localbidder.

Iftheaboveconditionisnotapplicable,theCitymay,atitsdiscretion:
RejectanyandallbidspresentedandreͲadvertise;or
IfthepublicinterestwillnotpermitthedelayofreͲadvertisingforbids,theCitymayaccepteither oneoracceptthelowestbidmadebynegotiationwiththetiebidders;or
Awardthebidtoanyoneofthelowtiebiddersbypublicdrawing.
ExceptionstoFormalBidding:Theformalbidprocessmaybebypassedinthefollowingfour instances:

Inemergencysituationswheretimeisoftheessence,theappropriateDepartmentHeadmay dispensewithobtainingformalquotestoobtainmaterialsnecessaryindealingwiththeemergency. Immediatelyfollowingtheemergency,theappropriateDepartmentHeadshallprepareareportto Councilexplainingtheemergencyandtheitemspurchased.
Whenoneknownsupplierisavailable,theDepartmentHeadshallprepareareportforCouncil approvalrequestinganexemptionfromtheformalbiddingproceduresandifapplicableawarding thebidtothe“SoleSource”.

WhenthereexistsothergovernmentalcontractsthatwerecompetitivelybidthattheCityiseligible touseinlieuofaformalbid.
PAGE 14 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

24

Whenthereareextenuatingcircumstancesthatwouldmakeformalbiddingnotthemostcost effectiveapproach.Thisoftenrelatestoqualitative,artistic,orproprietarysoftware/technological issues.TheappropriateDepartmentHeadshallprepareareporttoCouncilrequestinganexemption fromtheformalbiddingprocedures.

4.4AwardingtheBid:Oncethebidshavebeenevaluated,theDepartmentHeadshallpreparea reporttoCouncilrecommendingthemostresponsivebidder.TheCouncilshallthenawardthebid inapublicmeeting.

4.5PurchaseItem:OnceCouncilhasawardedthebid,aPurchaseOrderRequestformshallbe prepareddetailingthevendorname,itemsbeingpurchased,totalpriceincludingtaxandshipping, dateofCouncilapproval,budgetaccountcharged,andacopyofthestaffreportandresolution.The purchaseorderrequestshallbesignedanddatedbytheauthorizedDepartmentHeadandCity Manager,thenforwardedtotheAdministrativeServicesDepartment.TheAdministrativeServices Departmentwillissueapurchaseorderandforwardtotheoriginatingdepartment.Thedepartment maythencontactthevendorandpurchasetheitem.ItemsmustgenerallybeshippedtoaCity addressorworksite.

B.PROPRIETARYGOODSANDEQUIPMENT

Thissectionappliestothepurchaseofequipment/softwareandotherartisticgoodsthatmayonly bepurchasedthroughaproprietaryvendor.Thereisnobiddingrequirementforthistypeof purchase,sincetheitemisbeingpurchasedbasedonqualification,ratherthanprice.
Proprietaryvendorsarethosevendorsthatdirectlyselltheirproductsanddonotusedistributors orotheroutlets.(e.g.SelectFinancialsoftwaremayonlybepurchasedthroughHarrisComputer Systems,thereforeitwouldbea“proprietarypurchase”andcoveredunderthissection.Microsoft Wordmaybepurchasedatmanydifferentstoresandthereforeisnota“proprietarypurchase”)
Ingeneral,thesepurchasesshouldhaveconsiderableresearchanddocumentationbeforethe transactioniscompletedtoassuretheproductbestmatchestherequirementsandneedsofthe City,andthatthebestpossiblepricehasbeenobtainedascomparedtootherlikeproducts.A PurchaseOrderwillalwaysberequiredwhenthepurchaseisover$10,000.Alldocumentation shouldbeincludedwiththePurchaseOrderRequestPacket.
Policy

Therearefourlevelsofauthorityfornormalpurchases:DepartmentStaffAward,DepartmentHead Award,CityManagerAward,andCityCouncilAward.Generally,authorityisestablishedbythedollar amountofthepurchase.

PURCHASINGPOLICYANDPROCEDURES

25

1.DepartmentStaffAward<$10,000
Thedesignateddepartmentstaffmayauthorizethepurchaseofproprietarygoodsas neededforpurchasesupto$10,000.Thesepurchasesdonotrequirecompetitivebidding anddepartmentsaregivenconsiderablediscretioninthesepurchases.DepartmentHeads willdesignatevaryinglevelsofauthoritydependingontheirmixofstaffinglevels.For example,aDepartmentHeadmayauthorizeoneortwomidͲmanagers(Divisionmanagers) toapproveitemsupto$10,000,whileanAdministrativeSecretarymayhaveauthorityupto $500to$2,500.

2.DepartmentHeadAward$10,001to$50,000
TheDepartmentHeadmayauthorizethepurchaseofproprietarygoodsasneededfor purchasesupto$50,000.Thesepurchasesrequirethreewrittenquotationsinwritingbe obtainedanddocumentedwiththe“PurchaseOrderRequest”form.Seeprocedureoutlined initem3.

3.CityManagerAward$50,001to$100,000
Proprietarygoodspurchasesover$50,000andunderorequalto$100,000mustbeawarded bytheCityManagerorhis/herdesignee.Informalsolicitationofqualificationsshouldbe usedtoassurequalitygoodsarereceivedforareasonableprice.

3.1InformalProductReview:TheDepartmentshallmakeeveryattempttoreceiveatleastthree products/qualificationsinwriting.

Documentation:InformalproductmaybereviewedbythePurchasingOfficerwhocanseek additionalquotesandverifytheinformation.Ideally,documentationshouldinclude:
x Thenameofthecompany
x Pros/Consoftheproduct
x EstimatedPrice
x Thepersongivingthequote
x Thedateandtimeofthephonecall
x Briefjustificationfortheselectionofgoods

ReviewofThreeProducts:TheDepartmentshouldmakeeveryreasonableattempttoreviewat leastthreeproducts,however,itisunderstoodthatattimesitisnotpracticalorpossibletoreview theproducts.Intheeventthatthreeproductsarenotreviewed,theDepartmentshalldocument whyitisnotpracticaltoreviewalternateproducts.

Exceptions:TheinformalproductreviewprocessmaybebypassedwithDepartmentHead,City ManagerorPurchasingOfficerapproval,inthefollowinginstances: Inemergencywheretimeisoftheessence,theappropriateDepartmentHeadmaydispensewith informalproductreviewprocesstoobtainitemsnecessaryindealingwiththeemergency. PAGE 15 OF 55
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

26

Immediatelyfollowingtheemergency,theDepartmentHeadshallforwardacopyofthepurchase orderandcontractalongwithanexplanationtotheCityManagerorPurchasingOfficer.
EvaluatingProducts:TheDepartmentHeadshallselecttheproductwhich,intheirevaluation process,isthebestsolutionfortheCity.

3.2Negotiation:TheDepartmentshalldiscusswiththehighestrankedvendortherequirementsof theCityandnegotiateareasonablefeefortheproduct/itemsbeingpurchased.

3.3ContractandPurchaseOrder:Acontractmaybeprepared,asapplicable.Thevendorand theDepartmentHeadshallsignthecontract.

TheDepartmentwillobtainacompletedIRSformWͲ9fromthevendor.
ThecontractshallbesubmittedtothePurchasingOfficerforreview.ThePurchasingOfficerwill reviewthecontractforconformitytothepurchasingpolicy,forcompliancewithotherestablished proceduresandforavailabilityoffunds.ThePurchasingOfficerwillforwardthecontractstotheCity Managertoapproveandsignthecontract.

ThecontractwillbeforwardedtotheAdministrativeServicesDepartmentafterbeingsignedbythe CityManager.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothevendorandoriginating Department.

3.4ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrderanda copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith thevendorforpurchaseoftheproduct.

4.CityCouncilAward>$100,000
Proprietarypurchasesexceeding$100,000mustbeawardedbytheCityCouncil.Amore formalevaluationshouldbeusedtherebyassuringtheCitythatithaspurchasedthebest productfitfortheCity.Theformalprocessgenerallytakesmoretimeandexpensethan informalsolicitationsand,insomeinstances,mayactuallynotbethemostcostͲeffective approach.

4.1FormalEvaluationofProducts/Goods:Toensuremaximumexposureandcompetition,the responsibledepartmentshallpreparealistofpotentialfirmsfromwhichtosolicitquotes.Citystaff shallmakereasonableeffortstoensurethatsmallbusinessfirms,locatedinSanLuisObispoCounty, areawareofthepurchase.

Aselectioncommitteeshallbeformedtoevaluatethesubmitteddataanddeterminetheproducts thatshouldreceivefurtherconsideration.Thecommitteeshallconsistofatleastthreebutnomore

PURCHASINGPOLICYANDPROCEDURES

27

thansixpersons,appointedbytheDepartmentHead,subjecttoapprovaloftheCityManageror PurchasingOfficer.

TheSelectionCommitteemaychoosetointerviewalloftherespondingvendors,onlythetopfew rankingvendors,ortonotperforminterviews.

TheSelectionCommitteemayalsochoosetoviewdemonstrationsofalloftheproducts(eitherata workingsiteorattheCity),onlythetopfewrankingproducts,ortonotviewdemonstrations.
Aftertheinterviews,demonstrations,andsitevisits(asapplicable),theSelectionCommitteeshall ranktheproducts.

4.2Negotiation:TheDepartmentHeadshalldiscusswiththehighestrankedvendorthe requirementsoftheCityandnegotiateareasonablefee/contract.

4.3AwardingtheContract:TheDepartmentHeadshallprepareareporttoCouncil recommendingthetoprankedproduct.TheCouncilshallthenawardthepurchaseinapublic meeting.

Exceptforurgencies,allcontractsexceeding$100,000mustbeawardedbytheCityCouncil. Otherwise:

SuchpurchasesarenullorvoidandnotconsideredanobligationoftheCity.Invoicesmaybe returnedtothecontractor/serviceproviderunpaid.Thepersonorderingtheunauthorizedpurchase maybeheldpersonallyliableforthecostsofthecontract.

4.4ContractandPurchaseOrder:Acontractmaybeprepared,asapplicable.Thevendorandthe DepartmentHeadshallsignthreeoriginalcopiesofthecontract.
TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractor/serviceprovider.
Proofofinsuranceinaccordancewiththecontractshallbeobtained.
TheCityAttorneyshallsignthreeoriginalcopiesofthecontract,asapplicable,approvingitasto form.

AllcopiesofthecontractshallbesubmittedtothePurchasingOfficerforreview.ThePurchasing Officerwillreviewthecontractforconformitytothepurchasingpolicy,forcompliancewithother establishedproceduresandforavailabilityoffunds.ThePurchasingOfficerwillforwardthe contractstotheCityManagertoapproveandsignthecontract.
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Exhibit A
DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

PURCHASINGPOLICYANDPROCEDURES

28

OneoriginalcopyoftheexecutedcontractshallremainintheCityClerk’sOffice,andtheother originalshallbeforwardedtotheAdministrativeServicesDepartmentafterbeingsignedbytheCity ManagerorotherCouncildesignee.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothecontractor/serviceproviderand theoriginatingDepartment.

4.5ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrder andcopyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangements withthevendorforpurchaseoftheproduct.

C.GENERALTRADECONTRACTSERVICES

Thissectionappliestothepurchaseoftradecontractservices.Tradeservicesshallmeantherepair, rentalormaintenanceofequipment,machineryandotherCityͲownedoroperatedproperty. Includedwithinthistermareservicesnecessaryfortheroutineoperation,repairormaintenanceof existingbuildingsorimprovements.Thetermdoesnotincludeservicesrenderedbyprofessionals andotherservices,whichareuniqueinnatureandnotsubjecttocompetition.
Ininstanceswheregoodsandtradeservicesarepurchasedtogetherfromonecontractor/service provider,thissectionshallonlyapplyifthepredominantportionofthepurchaseisservices(i.e. repairofequipmentwith$5,000inlaborand$300inpartswouldbecoveredunderthissectionof thepolicy.Apurchaseofequipmentfor$5,000witha$300installationfeewouldbecoveredunder SectionIIIGeneralSupplies,Materials,andEquipment.
Policy

Therearefourlevelsofauthorityfornormalpurchases:DepartmentStaffAward,DepartmentHead Award,CityManagerAward,andCityCouncilAward.Generally,authorityisestablishedbythedollar amountofthepurchase.

1.DepartmentStaffAward<$10,000
Thedesignateddepartmentstaffmayauthorizethepurchaseofservicesasneededupto $10,000perprojectorannually(forongoingmaintenancecontracts)asapplicable.Projects thatwouldtypicallybeperformedbyonecontractor/serviceprovidermaynotbesplitinto componentsinordertoavoidpurchasinglimits.Thesepurchasesdonotrequirecompetitive biddinganddepartmentsaregivenconsiderablediscretioninthesepurchases.Department Headswilldesignatevaryinglevelsofauthoritydependingontheirmixofstaffinglevels.For example,aDepartmentHeadmayauthorizeoneortwomidͲmanagers(Divisionmanagers) toapproveitemsupto$10,000,whileanAdministrativeSecretarymayhaveauthorityupto $500to$2,500.

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2.DepartmentHeadAward$10,001to$50,000
TheDepartmentHeadmayauthorizethepurchaseofservicesasneededupto$50,000per projectorannually(forongoingmaintenancecontracts)asapplicable.Thesepurchases requirethreewrittenquotationsinwritingbeobtainedanddocumentedwiththe“Purchase OrderRequest”form.Seeprocedureoutlinedinitem3.

3.CityManagerAward$50,001to$100,000
Tradeserviceawardsover$50,000andunderorequalto$100,000mustbeawardedbythe CityManagerorhis/herdesignee.Informalbiddingshouldbeusedtoassurethemost competitivepriceisreceivedforanitem,whileavoidingtheadditionaltimeandexpense involvedinformalbidding.

3.1InformalQuotes:Thedepartmentshallmakeeveryattempttoreceiveatleastthreewritten quotationsinwriting.

Phonebids:PhonebidsmustbedocumentedtothesatisfactionofthePurchasingOfficer.Ideally, documentationshouldincludethenameofthecompanybidding,thepersongivingthequote,the dateandtimeofthephonecall,theamountquotedandanyotherrelevantinformation.
ThreeQuotes:Thedepartmentshouldmakeeveryreasonableattempttoobtainatleastthreebids, howeveritisunderstoodthatattimesitisnotpracticalnorcosteffectivetocontinuesoliciting quotesuntilthreebidsarereceived.Intheeventthatthreeviablequotesarenotreceived,the departmentshalldocumentwhatstepsweretakentoobtainquotes,anyvendorscontractedthat declinedtobid,andifapplicablewhyitisnotpracticaltoreceivethreequotes.
Exceptions:TheinformalbidprocessmaybebypassedwithDepartmentHead,CityManageror PurchasingOfficerapproval,inthefollowingfourinstances:
Inemergencysituationswheretimeisoftheessence,theappropriateDepartmentHeadmay dispensewithobtainingthreeinformalquotestoobtainmaterialsnecessaryindealingwiththe emergency.Immediatelyfollowingtheemergency,theDepartmentHeadshallforwardacopyof thepurchaseorderalongwithanexplanationtotheCityManagerorPurchasingOfficer.
Whenoneknownsupplierisavailable,theDepartmentHeadshalldocumentthatitisa“Sole Source”purchase.MostsolesourcepurchasesshallbetheresultoftheCitydecidingthatitisinits bestinteresttouseaspecificproprietaryitem.(i.e.Foreaseofmaintenance,theCitymaychoose toonlypurchaseonebrandofcomputers).

Whenthereexistsothergovernmentalcontractsthatwerecompetitivelybid(suchasState Contracts,SLOCounty,SLOCity,orotherAgencies,etc.)thattheCityiseligibletouse. Whenaservicehasbeenbidwithinthelast36monthsandthepricehasnotchanged.
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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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EvaluatingBids:Thedepartmentshallevaluatethethreeinformalquotesreceivedanddetermine thelowestmostresponsiblebid.TheCityreservestherighttoacceptthatbidwhichisinthebest interestoftheCity.Whenselectingtherecommendedbidder,theDepartmentHeadwilltakeinto consideration:

x Price
x Ability,capacity,skill
x Abilitytomeettimerequirements
x Character,integrity,andreputation
x Previousvendorexperience
x Financialresourcesavailableforcontractperformance x Abilitytoprovidefuturemaintenanceandservice,ifnecessary

3.2ContractandPurchaseOrder:Acontractshallbeprepared,asapplicable.Thevendorand theDepartmentHeadshallsignthecontract.

ThecontractshallbesubmittedtothePurchasingOfficerforreview.ThePurchasingOfficerwill reviewthecontractforconformitytothepurchasingpolicy,forcompliancewithotherestablished proceduresandforavailabilityoffunds.ThePurchasingOfficerwillforwardthecontractstotheCity Managertoapproveandsignthecontracts.

TheexecutedcontractshallberemainintheCityClerk’sOfficefiledelectronically.Apurchaseorder willbegeneratedfromthesignedcontract.

3.3ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrderand copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith thecontractor/serviceproviderforservices.

Renewals

Contractsforongoingservicesmayincludeannualrenewalprovisionsforuptofiveyears,however, innoinstancemaythecontractexceed$100,000inanyoneyear.Costincreaserelatedtosuch renewalsshallnotexceedtheConsumerPriceIndex(CPI)adjustmentsintheCitydesignatedarea, unlessapprovedinadvancebytheCityManager.

3.4ChangeOrders:TheCityManagerisauthorizedtoissuechangeordersforchangesor additionstotheoriginalscopeofworkthatresultinlessthanorequalto$100,000ofoverallcontract amount.Changeordersinexcessofthe$100,000totalcontractamountwillneedCityCouncil approval.

4.CityCouncilAward>$100,000
Tradeservicecontractsexceeding$100,000mustbeawardedbytheCityCouncil.Formal biddingshouldbeusedtoassureallpossiblecontractor/serviceprovidersaregiventhe

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opportunitytobidonmajorCitycontracts,therebyassuringtheCitythatithasreceivedthe mostcompetitiveprice.Theformalprocessgenerallytakesmoretimeandexpensethan informalbiddingandinsomeinstancesmayactuallynotbethemostcostͲeffective approach.

4.1FormalBidding:Theinitiatingdepartmentshallberesponsibleforcompletionoftheformalbid process,however,theprocessshallbecoordinatedwiththeCityClerk’sOfficeandthe AdministrativeServicesDepartment.

BidForms:Theinitiatingdepartmentshallprepareabidformincludingdetailedspecificationsfor theitemtobepurchased.Thefollowingformatissuggestedforcompetitivebids:
Submissionofbids(orproposals)–Includedate,time,locationandbidnumberasassignedbythe CityClerk.Includeadetailedlistoftheinformationthebidorproposalshouldcontain.
Questions–Listthename,address,andtelephonenumberofthepersontobecontacted concerningquestionsabouttheproject.

Background–Provideasmuchbackgroundasnecessarytogivethebidderanunderstandingofthe environmentinwhichthejobwillbeperformedandtowhichthejobrelates.
ScopeofWork–Describeindetailtherequirementforthejobanddetailspecification.
Desiredprojectschedule–Beasspecificaspossible.
Minimumanddesirablequalifications–Beasspecificaspossible.
PerformanceBond–Whetheraperformancebondisrequiredandifso,theamountandformof bidderssecurity.

SampleContract—Asampleofthecontractthatisexpectedtobeusedshouldbeincludedinthe bidpackage.

NoticeInvitingBids:Theinitiatingdepartmentshallalsoprepareanoticeinvitingbidsthatincludes thefollowing:

x Ageneraldescriptionoftheitemtobepurchased
x Astatementindicatingwherebidforms,specificationsandbondingrequirementscanbe obtained
x Astatementspecifyingthetimeandplacefortheopeningofthebids
PerCaliforniaPublicContractCode20164,thefirstpublicationofthenoticeshallbeatleasttendays beforethedateofopeningthebids.Thenoticeshallbepublishedatleasttwice,notlessthanfive PAGE 18 OF 55
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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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daysapart,inanewspaperofgeneralcirculation,printedandpublishedintheCity.Thenoticemay alsobesenttoallapplicablecontractor/serviceproviders.

4.2BidOpening:SealedbidsshallbesubmittedtotheCityClerk’sofficeandshallbeclearly identifiedwiththeBidnumberontheenvelope.Faxedorotherelectronicbidsarenotacceptable.
Bidsshallbeopenedinpublicatthetimeandplacestatedinthepublicnotice.
TheCityClerkorhis/herdesigneeshallopenthebidsandshallrecordallbidsreceived.
Anybidreceivedafterthetimespecifiedinthenoticeshallberejected.
Whenabidder’ssecurityisrequired,itwillbeannouncedinthepublicnoticeinvitingbids.The amountshallbedeterminedatthetimeofpreparationofthebid.Itshallbeintheformofcash, certifiedorcashier’scheck,certificateofdepositinCityofPismo’sname,orbidbondmadepayable totheCityofPismoBeach.Whenabidder’ssecurityisrequired,abidshallnotbeconsideredunless oneoftheaforementionedformsofsecurityaccompaniesthebid.Biddersshallbeentitledtoreturn ofthebidsecuritywiththefollowingexception:

Thesuccessfulbiddermustexecutethecontractandfileacceptabledocumentswithinthirty(30) calendardaysfromthedateofawardunlessextendedbytheCityManager.Failuretoexecutethe contractshallbejustcauseforannulmentoftheawardandforfeitureofthebidder’ssecurity,not asapenalty,butasliquidateddamages.TheCityCouncilmay,uponrefusalorfailureofthe successfulbiddertoexecutethecontract,awardthecontracttothenextlowestbidder.
AllbidsreceivedshallbeavailableforinspectionduringregularbusinesshoursintheCityClerk’s officeforaperiodofnotlessthanthirty(30)calendardaysafterthebidopening.
RejectionofBids:TheCityreservestherighttorejectanyandallbids,toacceptorrejectanyoneor moreitemsofabid,ortowaiveanyirregularitiesorinformalitiesinthebidsorthebiddingprocess iftodosoisdeemedtobestservetheinterestsoftheCity.
DeterminingLowestResponsibleBidder:Awardofbidshallbetothelowestresponsiblebidder.All validresponsiblebidsshallbeconsideredindeterminingthelowestbid.TheCityreservestheright toacceptthatbidwhichisinthebestinterestoftheCity.Whenselectingtherecommendedbidder theDepartmentHeadwilltakeintoconsideration:

x Price
x Ability,capacity,andskill
x Abilitytomeettimerequirements
x Character,integrity,andreputation
x Previousvendorexperience
x Financialresourcesavailableforcontractperformance

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x Abilitytoprovidefuturemaintenanceandservice,ifnecessary
LocalContractor/ServiceProviderPreference:TheCityhasestablishedapolicythatprovidesfora twopercent(2%)preferencetolocalbiddersandvendors(SeeSectionI).Thisisaccomplishedby reducingthelocalcontractor/serviceprovider’sbidsby2%whencomparingsuchbidstothoseof otherbidders.

TieBids:Iftiebidsarereceived,qualityandservicebeingequal,thecontractshallbeawardedtoa localbidder.

Iftheaboveconditionisnotapplicable,theCitymay,atitsdiscretion:
RejectanyandallbidspresentedandreͲadvertise;or
IfthepublicinterestwillnotpermitthedelayofreͲadvertisingforbids,theCitymayaccepteither oneoracceptthelowestbidmadebynegotiationwiththetiebidders;or
Awardthebidtoanyoneofthelowtiebiddersbypublicdrawing.
ExceptionstoFormalBidding:Theformalbidprocessmaybebypassedinthefollowingfour instances:

Inemergencysituationswheretimeisoftheessence,theappropriateDepartmentHeadmay dispensewithobtainingformalquotestoobtainmaterialsnecessaryindealingwiththeemergency. Immediatelyfollowingtheemergency,theappropriateDepartmentHeadshallprepareareportto Councilexplainingtheemergencyandtheitemspurchased.
Whenoneknownsupplierisavailable,theDepartmentHeadshallprepareareportforCouncil approvalrequestinganexemptionfromtheformalbiddingproceduresandifapplicableawarding thebidtothe“SoleSource”.

WhenthereexistsothergovernmentalcontractsthatwerecompetitivelybidthattheCityiseligible touseinlieuofaformalbid.

Whenthereareextenuatingcircumstancesthatwouldmakeformalbiddingnotthemostcost effectiveapproach.Thisoftenrelatestoqualitative,artistic,orproprietarysoftware/technological issues.TheappropriateDepartmentHeadshallprepareareporttoCouncilrequestinganexemption fromtheformalbiddingprocedures.

4.3AwardingtheBid:Oncethebidshavebeenevaluated,theDepartmentHeadshallpreparea reporttoCouncilrecommendingthemostresponsivebidder.TheCouncilshallthenawardthebid inapublicmeeting.

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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Exceptforurgencies,allcontractsexceeding$100,000mustbeawardedbytheCityCouncil. Otherwise:

Suchpurchasesarevoidandnotconsideredanobligationofthecity.
Invoicesmaybereturnedtothecontractor/serviceproviderunpaid.
Thepersonorderingtheunauthorizedpurchasemaybehelppersonallyliableforthecostsofthe contract.

4.4ContractandPurchaseOrder:Acontractmaybeprepared,asapplicable.Thecontractor/service providershallsignthreeoriginalcopiesofthecontract.
TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractor/serviceprovider.
Proofofinsuranceinaccordancewiththecontractshallbeobtained.
TheCityAttorneyshallsignthreeoriginalcopiesofthecontract,asapplicable,approvingitasto form.

TheWͲ9,proofofinsurance,andallcopiesofthecontractshallbesubmittedtothePurchasing Officerforreview.ThePurchasingOfficerwillreviewthecontractforconformitytothepurchasing policy,forcompliancewithotherestablishedproceduresandforavailabilityoffunds.The PurchasingOfficerwillforwardthecontractstotheCityManagertoapproveandsignthecontracts.
OneoriginalcopyoftheexecutedcontractshallberemainintheCityClerk’sOffice,andtheother originalshallbeforwardedtotheAdministrativeServicesDepartmentafterbeingsignedbytheCity ManagerorotherCouncildesignee.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothecontractor/serviceproviderand theoriginatingDepartment.

4.6Renewals:Contractsforongoingservicesmayincludeannualrenewalprovisionsforuptofive years.CostincreaserelatedtosuchrenewalsshallnotexceedtheConsumerPriceIndex(CPI) adjustmentsintheCitydesignatedarea,unlessapprovedinadvancebytheCityCouncil.

4.7ChangeOrders:TheCityManagerisauthorizedtoissuechangeordersforchangesor additionstotheoriginalscopeofworkthatresultinlessthana20%aggregatechangeandlessthan

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orequalto$100,000incontractprice.Changeordersinexcessof20%orgreaterthan$100,000 shallbeapprovedbytheCityCouncil.

D.PROFESSIONALSERVICES

Thissectionprovidesguidelinesforthepurchaseofprofessionalservices.Professionalservicesare thoseactivitiesperformedbyaconsultantwhopossessesahighdegreeorexpertiseinaparticular profession.Thiswouldgenerallyinclude(butnotbelimitedto)architecturalservices,engineering services,accounting/auditingservices,environmentalservices,designservices,technicalservices, financialservices,legalservices,economicservicesandotheradministrativeservices.Thereisno biddingrequirementforthistypeofservice,sincetheagentisbeinghiredbasedonhis/her qualifications,notthelowestbid.

Therearefourlevelsofauthorityfornormalpurchases:DepartmentStaffAward,DepartmentHead Award,CityManagerAward,andCityCouncilAward.Generally,authorityisestablishedbythedollar amountofthepurchase.

1.DepartmentStaffAward<$10,000
ThedesignatedDepartmentstaffmayauthorizethepurchaseofprofessionalservicesas neededupto$10,000perprojectorannually(forongoing/recurringcontracts)asapplicable. Projectswhichwouldtypicallybeperformedbyoneconsultantmaynotbesplitinto componentsinordertoavoidpurchasinglimits.Thesepurchasesdonotrequirecompetitive biddinganddepartmentsaregivenconsiderablediscretioninthesepurchases.
TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractor/serviceprovider priortoawardingthecontract.TheWͲ9,shallimmediatelybeforwardedtothe AdministrativeServicesDepartmentinordertocomplywithFederalReporting Requirements.

2.DepartmentHeadAward$10,001to$50,000
TheDepartmentHeadmayauthorizethepurchaseofprofessionalservicesasneededupto $50,000perprojectorannually(forongoing/recurringcontracts)asapplicable.Projects whichwouldtypicallybeperformedbyoneconsultantmaynotbesplitintocomponentsin ordertoavoidpurchasinglimits.Theseprofessionalserviceagreementsshallhavesufficient documentationofbackgroundanalysistosupportthecontract.Informalsolicitationof qualificationsshouldbeusedtoassurequalityservicesarereceivedforareasonableprice. Seeprocedureoutlinedinitem3.

TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractor/serviceprovider priortoawardingthecontract.TheWͲ9,shallimmediatelybeforwardedtothe AdministrativeServicesDepartmentinordertocomplywithFederalReporting Requirements.

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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3.CityManagerAward$50,001to$100,000
Professionalservicecontractsover$50,000andunderorequalto$100,000mustbe awardedbytheCityManagerorhis/herdesignee.Theseprofessionalserviceagreements shallhavesufficientdocumentationofbackgroundanalysistosupportthecontract.Informal solicitationofqualificationsshouldbeusedtoassurequalityservicesarereceivedfora reasonableprice.

3.1InformalSolicitationofQualifications:TheDepartmentshallmakeeveryattempttosolicitat leastthreequalifications/proposalsinwriting.Itisimportantthatthespecificationsareaccurate andcomprehensive,thusitmaybebeneficialtotransmitthespecificationsandresponsesbyfaxor mailevenwhentheproposalisreceivedverbally.

Documentation:InformalquotationsmustbedocumentedtothesatisfactionoftheCityManager orPurchasingOfficer.Ideally,documentationshouldinclude:
x Thenameofthecompany
x Thepersongivingthequote
x Thedateandtimeofthephonecall
x Understandingoftherequiredscopeofservices
x Specializedexperienceofthefirmanditspersonnel,relativetotherequiredservices x Referenceswhocanbecontactedtoverifypastrecordofperformance,i.e.,completionofa qualityproduct,inatimelymanner,andwithinbudgetconstraints x Thecapacityofthefirmtoperformthesubjectprojectwithinarequiredtimeframe x EstimatedPrice

ThreeQuotes:TheDepartmentshouldmakeeveryreasonableattempttoobtainatleastthree responses,howeveritisunderstoodthatattimesitisnotpractical,norcosteffectivetocontinue solicitingquotesuntilthreeresponsesarereceived.Intheeventthatthreeresponsesarenot reviewed,theDepartmentshalldocumentthestepsthatweretakentoobtainquotes,andif applicable,whyitisnotpracticaltoreceiveadditionalresponses.
Exceptions:TheinformalbidprocessmaybebypassedwithDepartmentHead,CityManageror PurchasingOfficerapproval,inthefollowinginstances: Inemergencywheretimeisoftheessence,theappropriateDepartmentHeadmaydispensewith obtainingthreeinformalquotestoobtainservicesnecessaryindealingwiththeemergency. Immediatelyfollowingtheemergency,theDepartmentHeadshallforwardacopyofthepurchase orderandcontractalongwithanexplanationtotheCityManagerorPurchasingOfficer.
Whenoneknownserviceproviderisavailable,theDepartmentHeadshalldocumentthatitisa “SoleSource”purchase.

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3.2EvaluatingBids:TheDepartmentshallselecttheconsultantwhich,intheirevaluationprocess, isthemostqualifiedtoperformthework.Theevaluationandselectionprocessshallbebasedupon thefollowingconsiderations:

x Generalqualityandresponsivenesstotherequest,includingbutnotlimitedto: x Responsivenesstotheterms,conditions,anditemsofperformance x Graspoftheproblem,worktobeperformed,andapproachtobeused x Organizationandpersonnelmakingtheproposal
x Evidenceofgoodorganizationalandmanagementpractices x Qualificationofthepersonnel
x Specializedexpertiseofthefirmanditspersonnelrelativetotherequiredservices x Referenceswhocanbecontactedtoverifypastrecordofperformance(i.e.,completionofa qualityproductinatimelymannerandwithinbudgetconstraints) x Previousconsultantexperience
x Thefinancialconditionofthefirm
x Capacityofthefirmtoperformthesubjectprojectwithinarequiredtimeframe x Ifappropriate,theprice,inanyofthefollowingformats,maybeconsidered x Totalpriceandpricebreakdown
x Pricerange
x Costschedule

OngoingProfessionalServices:InsomeinstancesitisinthebestinterestoftheCitytohavecurrent ongoingcontractswithmultipleconsultantsforthesameorverysimilarservices(i.e.servicesthat canbedefinedastoscopeofworkbutnotastorequiredeventssuchascontractplanningservices, publicsafetyinvestigations,soilstesting,contractbuildinginspectionsservices,etc.)Theseservices wouldbehandledbyestablishinganeligibilitylistandbyenteringintoannualongoingprofessional servicecontracts.

Theprocessforselectingfirmsforannualongoingprofessionalservicecontractsshallbegenerally thesameasforotherprofessionalservicescontracts,howevermultipleconsultantsmaybe awardedanongoingcontractbasedontheinformalprocessandmaybeplacedontheeligibilitylist. Additionalconsultantsmayalsobeawardedcontractsandplacedontheeligibilitylistatalaterdate, usingtheinformalprocesswithoutimpactingcontractscurrentlyinplace.
Aseventsoccurandneedarises,workwillbeassignedtothefirms/individualsontheeligibilitylist atthesolediscretionoftheDepartmentHead.

Negotiation:TheDepartmentHeadshalldiscusswiththehighestrankedfirms(s)therequirements oftheproject,thescopeofservicesneededtomeettherequirements,andnegotiateareasonable feefortheestablishedworkassignment.

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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3.3ContractandPurchaseOrder:Acontractshallbeprepared.TheconsultantandtheDepartment Headshallsigntheoriginalcontract.

TheDepartmentwillobtainacompletedIRSformWͲ9fromtheconsultant,inordertocomplywith FederalReportingRequirements.

ThecontractalongwiththeformWͲ9,shallbesubmittedtothePurchasingOfficerforreview.The PurchasingOfficerwillreviewthecontractforconformitytothepurchasingpolicy,forcompliance withotherestablishedproceduresandforavailabilityoffunds.ThePurchasingOfficerwillforward thecontractstotheCityManagertoapproveandsignthecontracts.TheCityClerk’sofficewillfile thecontractelectronically.

Thecontract,withtheWͲ9,willbeforwardedtotheAdministrativeServicesDepartmentafterbeing signedbytheCityManager.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothevendorandoriginating Department.

3.4ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrderand copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith theconsultantforservices.

3.5Renewals:Contractsforongoingprofessionalservicesmayincludeannualrenewalprovisions foruptofiveyears,however,innoinstancemaythecontractexceedtheConsumerPriceIndex(CPI) adjustmentsunlessapprovedinadvancebytheCityManager.

3.6ChangeOrders:TheCityManagerisauthorizedtoissuechangeordersorcontractamendments forchangesoradditionstotheoriginalscopeofworkthatresultinlessthanorequaltoa$100,000 annualcontractamount.Changeordersinexcessofthe$100,000contractamountshallbe approvedbytheCityCouncil.

4.CityCouncilAward>$100,000
Professionalservicecontractsexceeding$100,000mustbeawardedbytheCityCouncil.A FormalRequestforProposal(RFP)oraRequestforQualifications(RFQ)processshouldbe used,therebyassuringtheCitythatithasengagedthemostqualifiedconsultantavailable fortheengagement.Theformalprocessgenerallytakesmoretimeandexpensethan informalsolicitationsofqualificationsandinsomeinstancesmayactuallynotbethemost costͲeffectiveapproach.

FormalRequestforProposal(RFP)orRequestforQualifications(RFQ):

4.1DevelopingtheRFPorRFQ:BecauseRFP’sandRFQ’saskforasubjectiveproduct,theyshould containthegreatestdetailpossible,andmayincludethefollowing:

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x Aprecisedescriptionoftheproblemorobjective
x Theservicestobeperformed
x Theproducttobeprovided

Theanticipatedtimeschedulefor:

x SubmittaloftheRFP/RFQ(dateandtime)
x AnypreͲproposalconference(date,timeandlocation) x Reviewandevaluationoftheproposals
x Awardofthecontract
x Commencementofworkontheproject
x Completiondate
x Evaluationfactorsandtherelativeimportanceofeach. x ExpectationsorlimitationsonthepartoftheCity,i.e. x Theformat,formandquantityofanyexpectedreports x Theextent/natureofassistance/cooperationavailablefromtheCity
ExpectedcontentoftheRFP/RFQ,including:

x Theoveralldescriptionoftechniquestobeused
x Listingofsimilarservicesprovidedtootherclients x Listingofavailablereferencestocontact
x Descriptionandqualificationsofassignedleadandsupportingpersonnel x Timeandstaffexpectedtobeexpended
x Facilitiesandequipmenttobeused
x PortionofcontracttobeperformedbysubͲcontractors x Subcontractors/SubͲconsultantsqualifications
x Cost,insummaryandtotal,anddesiredmethodofpayment.TheRFP/RFQforservicesmay, butisnotrequiredto,statetheamountbudgetedfortheservice
Contractualrequirementsincluding,butnotlimitedto:
x Prohibitionagainstassignment
x Indemnification
x Insurancerequirements
x Bondingrequirements
x Warranties
x Compliancewithfederal,stateandCitylaws,rulesandregulations x Samplecontract

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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ConstructionprojectmanagementserviceRFP’smayrequireevidencebeprovidedofexperiencein constructionprojectdesignreviewandevaluation,constructionmobilizationandsupervision,bid evaluation,projectscheduling,costͲbenefitanalysis,claimsreviewandnegotiation,andgeneral managementandadministrationofaconstructionproject.

4.2IssuingRFP/RFQ:Toensuremaximumexposureandcompetition,theresponsibleDepartment shallpreparealistofpotentialfirmstoreceivetheRFP/RFQ.Citystaffshallmakereasonableefforts toensurethatsmallbusinessfirms,locatedinSanLuisObispoCounty,areawareoftheRFP/RFQ’s issued.

Ifrequiredordesired,theresponsibleDepartmentwillsubmittheRFP/RFQnoticetobeadvertised inalocalnewspaperofgeneralcirculation.Thenoticewillbepublishedoneormoretimesbeginning atleastfourteencalendardayspriortothedesignatedclosing.Additionaladvertisementsmaybe placedinaregionalnewspaperofgeneralcirculation;appropriateprofessionalortradejournals; andstateorgovernmentalpublicationsdesignedforpublicnotice.
Areasonablelengthoftimebetweensolicitationandclosingdatesmustbeallowedtoprovide potentialrespondentstimeforpreparationinaccordancewiththecomplexity,thesizeofthe project,andthescopeofadvertising.

Citystaffmayconductconferencestoexplaintherequirementsoftheproject.Asufficientamount oftimeshouldbeallowedaftertheRFP/RFQhasbeenissuedtoallowpotentialrespondentsto becomefamiliarwiththeproject.AnyclarificationorchangesrequiredtotheRFP/RFQ,asaresult oftheconference,shallbeaddedaswrittenamendment.Asummaryoftheconferenceshallbe providedtoallprospectiverespondentsreceivingtherequest.
TherequestingDepartmentshallpreparesufficientcopiesoftheRFP/RFQtoallowdistributionto potentialrespondentsofrecordandresponsestothepublishedadvertisements.Inaddition,the DepartmentshallmaintainalistofRFP/RFQ’sissuedandresponses.
Amendmentsshouldbeusedtomakeanychangesinquantities,descriptions,schedules,orto correctdefectsorambiguitiesintheoriginalRFP/RFQ.Amendmentsareprovidedtoensurethatall potentialrespondentsarefurnishedwiththesameinformationwithwhichtoprepareforproposals.
AmendmentstotheRFP/RFQshallbeidentifiedassuchandshallrequireacknowledgementassuch byfirmsreceivingtheRFP/RFQ.AmendmentsshallbesenttoallknownrecipientsoftheRFP/RFQ withinareasonabletimeperiodbeforetheclosingdate.Ifthetimeanddateestablishedforthe receiptofproposalsdoesnotallowsufficienttimeforconsiderationandchanges,thetimeanddate willbemodifiedbyamendment.

4.3ProposalOpening:ProposalsshallbesubmittedtotheCityClerk’sofficeandshallbeclearly identifiedwiththeProposalnumberontheenvelope.Faxedorotherelectronicproposalsarenot acceptable.

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Proposalsreceivedby5:00p.m.ofthedesignatedclosingdaywillbeopenedonthefollowing workdayforpreliminaryreview.

AnyproposalreceivedafterthetimespecifiedintheRFP/RFQshallbereturnedunopened.
ToavoiddisclosureofthecontentsofcompetingRFPs/RFQs,proposalswillbeopenedinthe presenceoftheCityClerkorhis/herdesigneeandtheDepartmentHeadorhis/herdesignee, requestingtheproposals.

Respondentsmaymodifyorwithdrawtheirproposalspriortotheestablishedclosingdateandtime, withoutpenalty.However,anymodificationssubmittedaftertheestablishedclosingdateandtime willnotbeaccepted.Suchmodificationswillbereturnedtotherespondent,unopened.
TheCityClerk’sofficeshallmaintainalistofproposalsreceived,includingnameandaddressof respondent,thenumberofmodificationsreceived,ifany,andanyadditionalinformationrequested. Theregisterwillbeopentoinspectionaftertheawardofthecontractortherejectionofall proposals.

Proposalsandmodificationsshallbeshownonlytotheevaluationcommitteepersonnel,theCity Clerkorhis/herdesignee,andtheDepartmentHeadorhis/herdesignee,untilarecommendation ismadetoCouncilorallproposalshavebeenrejected.
RejectionofProposals:TheCityreservestherighttorejectanyandallproposals,toacceptorreject anyoneormoreitemsofaproposal,ortowaiveanyirregularitiesorinformalitiesintheproposal ortheRFP/RFQprocessiftodosoisdeemedtobestservetheinterestsoftheCity.

4.4EvaluationFactorsandMethods:Becauseuniqueservicesarerequested,costisnotconsidered theprimaryselectioncriteria.

Evaluationfactorsmayinclude:

Generalqualityandresponsivenessoftheproposal,includingbutnotlimitedto:
x Responsivenesstotheterms,conditions,anditemsofperformance x Completenessandthoroughnessoftheproposal
x Graspoftheproblem,worktobeperformed,andapproachtobeused
Organizationandpersonnelmakingtheproposal:

x Evidenceofgoodorganizationalandmanagementpractices x Qualificationofthepersonnel
x Specializedexperienceofthefirmanditspersonnelrelativetotherequiredservices PAGE 23 OF 55
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x Referenceswhocanbecontactedtoverifypastrecordofperformance,i.e.,completionofa qualityproduct,inatimelymanner,andwithinbudgetconstraints x Thefinancialconditionofthefirm
x Capacityofthefirmtoperformthesubjectprojectwithinarequiredtimeframe
Ifappropriate,theprice,inanyofthefollowingformats,maybeconsidered:
x Totalpriceandpricebreakdown
x Pricerange
x Costschedule

ASelectionCommitteeshallbeformedtoevaluatethesubmitteddataanddeterminethe consultantsthatshouldreceivefurtherconsideration.TheCommitteeshallconsistofatleastthree butnomorethansixpersons,appointedbytheDepartmentHead,subjecttoapprovaloftheCity Managerorhis/herdesignee.

TheSelectionCommitteemaychoosetointerviewalloftherespondingconsultants,onlythetop fewrankingconsultantsortonotperforminterviews.

Aftertheinterviews(ifapplicable),theSelectionCommitteeshallranktheconsultantsbasedon theirproposals,interviews,andreferences.

ExceptionstoFormalRFP/RFQ:TheformalRFP/RFQprocessmaybebypassedinthefollowingthree instances:

Inemergencysituationswheretimeisoftheessence,theappropriateDepartmentHeadmay dispensewiththeformalRFP/RFQprocesstoobtainservicesnecessaryindealingwiththe emergency.Immediatelyfollowingtheemergency,theappropriateDepartmentHeadshallprepare areporttoCouncilexplainingtheemergencyandtheitemspurchased.
Whenoneknownserviceproviderisavailable,theDepartmentHeadshallprepareareportfor CouncilapprovalrequestinganexemptionfromtheformalRFP/RFQproceduresandifapplicable awardingthebidtothe“SoleSource”.

WhenthereareextenuatingcircumstancesthatwouldmaketheformalRFP/RFQprocessnotthe mostcosteffectiveapproach.Thisoftenrelatestoqualitative,artisticorproprietary software/technologicalissues.TheappropriateDepartmentHeadshallprepareareporttoCouncil requestinganexemptionfromtheformalbiddingprocedures.

4.5OngoingProfessionalServices:InsomeinstancesitisinthebestinterestoftheCitytohave currentongoingcontactswithmultipleconsultantsforthesameorverysimilarservices(i.e.services thatcanbedefinedastoscopeofworkbutnotastorequiredeventssuchascontractplanning services,publicsafetyinvestigations,soilstesting,contractbuildinginspectionsservices,etc).These

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serviceswouldbestbehandledbyestablishinganeligibilitylistandbyenteredintoannualongoing professionalservicecontracts.

Theprocessforselectingfirmsforannualongoingprofessionalservicecontractsshallbegenerally thesameasforotherprofessionalservicescontracts,howevermultiplefirmsmaybeawardedan ongoingcontractbasedontheRFP/RFQprocessandmaybeplacedontheeligibilitylist.Additional firms/individualsmayalsobeawardedcontractsandplacedontheeligibilitylistatalaterdate,using theRFP/RFQprocesswithoutimpactingcontractscurrentlyinplace.
Councilshallawardeachongoingcontractthatisexpectedtoexceed$100,000atapublicmeeting.
Aseventsoccurandneedarises,workwillbeassignedtotheconsultantsontheeligibilitylistatthe solediscretionoftheDepartmentHead.TheDepartmentHead,however,shallmakeareasonable attempttorotateworkbetweenconsultantssubjecttotheavailabilityandspecialneeds.
Negotiation:TheDepartmentHeadshalldiscusswiththehighestrankedfirm(s)therequirements oftheproject,thescopeofservicesneededtomeettherequirements,andnegotiateareasonable fee/contractfortheestablishedworkassignment.

4.6AwardingtheContract:TheDepartmentHeadshallprepareareporttoCouncilrecommending themostresponsiveconsultant.TheCouncilshallthenawardthepurchaseinapublicmeeting.
Exceptforurgencies,allcontractsexceeding$100,000mustbeawardedbytheCityCouncil. Otherwise:

x SuchpurchasesorvoidandnotconsideredanobligationoftheCity x Invoicesmaybereturnedtothecontractor/serviceproviderunpaid x Thepersonorderingtheunauthorizedpurchasemaybeheldpersonallyliableforthecosts ofthecontract

4.7ContractandPurchaseOrder:Acontractshallbeprepared.Theconsultantshallsignthree originalcopiesofthecontract.

TheDepartmentwillobtainacompletedIRSformWͲ9fromtheconsultant.
Proofofinsuranceinaccordancewiththecontractshallbeobtained.
TheCityAttorneyshallsignthreeoriginalcopiesofthecontract,approvingitastoform.
AllcopiesofthecontractshallbesubmittedtothePurchasingOfficerforreview.ThePurchasing Officerwillreviewthecontractforconformitytothepurchasingpolicy,forcompliancewithother establishedproceduresandforavailabilityoffunds.ThePurchasingOfficerwillforwardthe contractstotheCityManagertoapproveandsignthecontract. PAGE 24 OF 55
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OneoriginalcopyoftheexecutedcontractshallberemainintheCityClerk’sOffice,andtheother originalshallbeforwardedtotheAdministrativeServicesDepartmentafterbeingsignedbytheCity ManagerorotherCouncildesignee.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothecontractor/serviceproviderand theoriginatingDepartment.

4.8ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrderand copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith thevendorforpurchaseoftheproduct.

4.9Renewals:Contractsforongoingservicesmayincludeannualrenewalprovisionsforuptofive years.

4.10ChangeOrders:TheCityManagerisauthorizedtoissuechangeordersorcontractamendments forchangesoradditionstotheoriginalscopeofworkthatresultinlessthan20%oftheCouncilͲ approvedcontractamountandlessthanorequalto$100,000.Changeordersinexcessofthe20% oftheCouncilͲapprovedcontractamountorgreaterthan$100,000shallbeapprovedbytheCity Council.

E.PUBLICPROJECTS

Thissectionprovidesguidelinesfor“PublicProject”procurement.PublicProjectmeans construction,reconstruction,erection,alteration,restoration,improvement,demolition,andrepair workinvolvinganyfacilityowned,leased,oroperatedbytheCity.Thedefinitionalsoincludes paintingorrepaintinganyfacilityowned,leasedoroperatedbytheCity.Construction,erection, improvement,orrepairofdams,reservoirs,andelectricaltransmissionlinesof230,000voltsand higherthatareownedbytheCity,areconsideredapublicproject.
Apublicprojectdoesnotincludemaintenancework,consistingofroutine,recurring,andusualwork forthepreservationorprotectionoffacilitiesownedoroperatedbytheCity,includingminor repainting.Streetandhighwaysresurfacingatlessthanone(1”)deep,landscapemaintenance (mowing,watering,trimming,pruning,planting,replacementofplants,andservicingofirrigation andsprinklersystems)arenotapublicproject.

Facilitymeansanyplant,building,structure,groundfacility,utilitysystem,subjecttothelimitation foundinparagraph(3)ofsubdivision(c),realproperty,streetsandhighways,orotherpublicwork improvement.

Policy

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ItistheCityofPismoBeach’spolicytofollowtheUniformConstructionCostAccounting ProceduresforallPublicProjects,assetforthinthePublicContractCode(Article2,commencing withSection22010).TheCityofPismoBeachhasadoptedthepurchasinglimitsandpoliciesas setforthinPublicContractCodeSections22030to22045.Foranypublicprojectthatis performedbyforceaccountthathastotaldirectandindirectcostsunder$60,000needsapublic projecttrackingsheetandneedsaprojectcodefromthefinancialsystem.

1.DepartmentStaffAward<$10,000
Thedesignateddepartmentstaffmaycontractpublicprojectsasneededupto$5,000per projectorpublicprojectmaybeperformedbytheemployeesoftheCityforceaccount. Projectsthatwouldtypicallybeperformedbyonecontractormaynotbesplitinto componentsinordertoavoidpurchasinglimits.Thesepurchasesdonotrequirecompetitive biddinganddepartmentsaregivenconsiderablediscretioninthesepurchases.
TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractorpriortoawarding thecontract.TheWͲ9shallimmediatelybeforwardedtotheAdministrativeDepartmentin ordertocomplywithFederalReportingRequirements.

2.DepartmentHeadAward$10,001to$60,000
TheDepartmentHeadmaycontractpublicprojectsasneededupto$60,000perproject orpublicprojectmaybeperformedbytheemployeesoftheCitybyforceaccount. Projectsthatwouldtypicallybeperformedbyonecontractormaynotbesplitinto componentsinordertoavoidpurchasinglimits.Itisrecommendedthatthesecontracts havethreewrittenquotationsinwriting.Foranypublicprojectthatisperformedbyforce accountthathastotaldirectandindirectcostsunder$60,000needsapublicproject trackingsheetandneedsaprojectcodefromthefinancialsystem.ThefinalPublicProject TrackingSheetwithactualcostscomparedtotheestimateshallbeturnedinwiththe finalinvoice.

TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractorpriorto awardingthecontract.TheWͲ9,shallimmediatelybeforwardedtotheAdministrative ServicesDepartmentinordertocomplywithFederalReportingRequirements.

3.CityManagerAward$60,001to$100,000
TheCityManagermustawardpublicProjectcontractsover$60,000andunderorequal to$100,000.TheDepartmentmayrecommendacontractorwithoutusingtheinformal bidprocess,howeveranegotiatedcontract,purchaseorder,andapprovalbytheCity Managerisrequiredforthesepurchases.Foranypublicprojectthatisperformedbyforce accountthathastotaldirectandindirectcostsunder$60,000needsapublicproject trackingsheetandneedsaprojectcodefromthefinancialsystem.ThefinalPublicProject TrackingSheetwithactualcostscomparedtotheestimateshallbeturnedinwiththe finalinvoice.
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TheDepartmentHeadmayalsoelecttoperformtheprojectusingemployee’softhe Citybyforceaccount.

3.1ContractandPurchaseOrder:Acontractshallbeprepared.ThecontractorandtheDepartment Headshallsigntheoriginalcontract.

TheDepartmentwillobtainacompletedIRSformWͲ9fromtheconsultant,inordertocomplywith FederalReportingRequirements.

ThecontractwiththeformWͲ9,shallbesubmittedtothePurchasingOfficerforreview.The PurchasingOfficerwillreviewthecontractforconformitytothepurchasingpolicy,forcompliance withotherestablishedproceduresandforavailabilityoffunds.ThePurchasingOfficerwillforward thecontractstotheCityManagertoapproveandsignthecontract.TheCityClerk’sofficewillfile thecontractelectronically.

Thecontract,withtheWͲ9,willbeforwardedtotheAdministrativeServicesDepartmentafterbeing signedbytheCityManager.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothevendorandoriginating Department.

Exceptforurgencies,allcontractsexceeding$60,000mustbesignedbytheCityManager. Otherwise:

x Suchpurchasesarenullandvoid,andnotconsideredanobligationoftheCity x Invoicesmustbereturnedtothecontractorunpaid
x Thepersonorderingtheunauthorizedpurchasemaybeheldpersonallyliableforthecosts ofthecontract

3.2ExecutingtheContract:OncetheDepartmenthasreceivedtheapprovedPurchaseOrderand copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith thecontractorforservices.

4.CityCouncilAward$100,001to$200,000–Level1
PublicProjectsexceeding$100,000andlessthan$200,000,orotherupdatedamountas specifiedbyPublicContractCodeSections22034Ͳ22036shallbeinformallybidor formallybidandawardedbytheCityCouncilinaccordancewiththePublicContractCode Sections22000to22045.Foranypublicprojectthatisperformedbyforceaccountthat hastotaldirectandindirectcostsunder$60,000needsapublicprojecttrackingsheetand needsaprojectcodefromthefinancialsystem.ThefinalPublicProjectTrackingSheet withactualcostscomparedtotheestimateshallbeturnedinwiththefinalinvoice.

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4.1InformalBids:TheCityshallsolicitinformalbidsinaccordancewithPublicContractCode Sections22034Ͳ22036.

4.2ContractandPurchaseOrder:

a. Acontractshallbeprepared,andtwooriginalcopiesshallbesignedbytheDepartment andcontractor.

b. TheDepartmentwillobtainacompletedIRSformWͲ9fromthecontractor/service provider.

c. Proofofinsuranceinaccordancewiththecontractshallbeobtained.
d. Performanceandpaymentbondsshallbeobtained(bondsmustbeinaformaccepted bytheCityandmustmeetallCityrequirements).
e. TheCityAttorneyshallsignthreeoriginalcopiesofthecontract,approvingitastoform.
f. AllcopiesofthecontractshallbesubmittedtothePurchasingOfficerforreview.The PurchasingOfficerwillreviewthecontractforconformitytothepurchasingpolicy,for compliancewithotherestablishedproceduresandforavailabilityoffunds.The PurchasingOfficerwillforwardthecontractstotheCityManagertoapproveandsign thecontract.OnecopywillremainintheCityClerk’soffice.
g. Thesecondoriginalcontract,withtheWͲ9,willbeforwardedtotheAdministrative ServicesDepartmentafterbeingsignedbytheCityManager.Apurchaseorderwillbe generatedfromthesignedcontract.

h. Thepurchaseorderandexecutedcontractwillbeforwardedtothevendorand originatingDepartment.
i. Exceptforurgencies,allcontractsexceeding$100,000mustbesignedbytheCity ManagerorPurchasingOfficer.Otherwise:

i. Suchpurchasesarenullandvoid,andnotconsideredanobligationoftheCity.
ii. Invoicesmustbereturnedtothecontractorunpaid.
iii. Thepersonorderingtheunauthorizedpurchasemaybeheldpersonallyliablefor thecostsofthecontract.

4.2ExecutingtheContract:OncetheDepartmenthasreceivedtheapprovedPurchaseOrder andcopyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangements withthecontractorforservices.

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5.CityCouncilAward>$200,000–Level2
PublicProjectsexceeding$200,000mustbeformallybidandawardedbytheCityCouncil inaccordancewiththePublicContractCodeSections22000to22045.

5.1FormalBidding:TheCityshallsolicitformalbidsinaccordancewithPublicContractCode Sections22000Ͳ22045.

TheinitiatingDepartmentshallberesponsibleforcompletionoftheformalbidprocess;however, theprocessshallbecoordinatedwiththeCityClerk’sOfficeandtheAdministrativeServices Department.

a. BidForms:TheinitiatingDepartmentshallprepareabidformincludingdetail specificationsfortheservicestobepurchased.Thefollowingformatissuggestedfor competitivebids:
Submissionofbids(orproposals)–Includedate,time,locationandbidnumberas assignedbytheCityClerk.Includeadetaillistoftheinformationthebidorproposal shouldcontain.

Questions–Listthename,address,andtelephonenumberofthepersontobe contactedconcerningquestionsabouttheproject.

Background–Provideasmuchbackgroundasnecessarytogivethebidderan understandingoftheenvironmentinwhichthejobwillbeperformedandtowhichthe jobrelates.

ScopeofWork–Describeindetailtherequirementforthejobanddetailspecification.
Desiredprojectschedule–Beasspecificaspossible.
Minimumanddesirablequalifications–Beasspecificaspossible.
PerformanceBond–Whetheraperformancebondisrequiredandifso,theamountand formofbidderssecurity.

SampleContract–Asampleofthecontractthatisexpectedtobeusedshouldbe includedinthebidpackage.

b. NoticeInvitingBids:TheinitiatingDepartmentshallalsoprepareanoticeinvitingbids thatincludesthefollowing:

i. Ageneraldescriptionoftheservicestobeperformed.

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ii. Astatementindicatingwherebidforms,specificationsandbondingrequirements canbeobtained.

iii. Astatementspecifyingthetimeandplacefortheopeningofthebids.
iv. Thenoticeshallbepublishedatleastfourteen(14)calendardaysbeforethedate oftheopeningofbidsinanewspaperofgeneralcirculation,printedandpublished intheCity.(Itisrecommendedthatitbepublishedtwice,notlessthanfivedays apart).

v. ThenoticeshallalsobemailedtoallconstructiontradejournalsspecifiedinSection 22036ofthePublicContractCode.Thenoticesshallbemailedatleastfifteen(15) calendardaysbeforethedateofopeningthebidsperPublicContractCode22037.

5.2BidOpening

a. SealedbidsshallbesubmittedtotheCityClerk’sofficeandshallbeclearlyidentifiedwith theBidnumberontheenvelope.Faxedorotherelectronicbidsarenotacceptable.
b. Bidsshallbeopenedinpublicatthetimeandplacestatedinthepublicnotice.
c. TheCityClerkorhis/herdesigneeshallopenthebidsandshallrecordallbidsreceived.
d. Anybidreceivedafterthetimespecifiedinthenoticeshallberejected.
e. Whenabidder’ssecurityisrequired,itwillbeannouncedinthepublicnoticeinviting bids.Theamountshallbedeterminedatthetimeofpreparationofthebid.Itshallbein theformofcash,certifiedorcashier’scheck,certificateofdepositintheCityofPismo Beach’snameorbidbondmadepayabletotheCityofPismoBeach.Whenabidder’s securityisrequired,abidshallnotbeconsideredunlessoneoftheaforementioned formsofsecurityaccompaniesthebid.Biddersshallbeentitledtoreturnofthebid securitywiththefollowingexception:

Thesuccessfulbiddermustexecutethecontractandfileacceptabledocumentswithin ten(10)calendardaysfromthedateofawardunlessextendedbytheCityManager. Failuretoexecutethecontractshallbejustcauseforannulmentoftheawardand forfeitureofthebidders’security,notasapenalty,butasliquidateddamages.The CityCouncilmay,uponrefusalorfailureofthesuccessfulbiddertoexecutethe contract,awardthecontracttothenextlowestbidder.
f. AllbidsreceivedshallbeavailableforinspectionduringregularbusinesshoursintheCity Clerk’sofficeforaperiodofnotlessthanthirty(30)calendardaysafterthebidopening.
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RejectionofBids:TheCityreservestherighttorejectanyandallbids,toacceptorrejectanyoneor moreitemsofabid,ortowaiveanyirregularitiesorinformalitiesinthebidsorthebiddingprocess iftodosoisdeemedtobestservetheinterestsoftheCity.Ifafterthefirstinvitationofbidsallbids arerejected,theCitymayelecttoreͲadvertiseforbidsorhavetheprojectdonebyforceaccount (seesection22038ofthePublicContractCodeforproceduresandlimitations).
DeterminingLowestResponsibleBidders:Awardofbidshallbetothelowestresponsiblebidder.All validresponsiblebidsshallbeconsideredindeterminingthelowestbid.Beforetheaward,the biddermayberequiredtofurnishevidenceofcapability,equipmentandfinancialresourcesto adequatelyperformthework.Biddersnotfoundtobequalifiedmayhavetheirbidrejected.
TieBids:Iftiebidsarereceived,qualityandservicebeingequal,thecontractshallbeawardedtoa localbidder.

Iftheaboveconditionisnotapplicable,theCitymay,atitsdiscretion:
x RejectanyandallbidspresentedandreͲadvertise
x Citymayaccepteitheroneoracceptthelowestbidmadebynegotiationwiththetiebidders x Awardthebidtoanyoneofthelowtiebiddersbypublicdrawing

5.3AwardingtheBid:Oncethebidshavebeenevaluated,theDepartmentHeadshallpreparea reporttoCouncilrecommendingthemostresponsivebidder.TheCouncilshallthenawardthebid inapublicmeeting.

Allpublicprojectcontractsexceeding$100,000mustbeawardedbytheCityCouncil.Otherwise:
x SuchpurchasesorvoidandnotconsideredanobligationoftheCity x Invoicesmaybereturnedtothecontractor/serviceproviderunpaid x Thepersonorderingtheunauthorizedpurchasemaybeheldpersonallyliableforthecosts ofthecontract

5.4ContractandPurchaseOrder:Acontractshallbepreparedandthecontractorshallsigntwo originalcopiesofthecontract.

TheDepartmentwillobtainacompletedIRSformWͲ9fromtheconsultant.
Proofofinsuranceinaccordancewiththecontractshallbeobtained.
Performanceandpaymentbondsshallbeobtained(bondsmustbeinaformacceptedbytheCity andmustmeetallCityrequirements).

TheCityAttorneyshallsigntwooriginalcopiesofthecontract,approvingitastoform.

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Bothcopiesofthecontract,theWͲ9,proofofinsurance,andcopiesofthebondsshallbesubmitted tothePurchasingOfficerforreview.ThePurchasingOfficerwillreviewthecontractforconformity tothepurchasingpolicy,forcompliancewithotherestablishedproceduresandforavailabilityof funds.ThePurchasingOfficerwillforwardthecontractstotheCityManagertoapproveandsign thecontract.

Oneoriginalcopyoftheexecutedcontractalongwiththeproofofinsuranceandcopiesofthebonds shallberemainintheCityClerk’sOffice,andtheotheroriginalwiththeWͲ9andproofofinsurance shallbeforwardedtotheAdministrativeServicesDepartmentafterbeingsignedbytheCity ManagerorotherCouncildesignee.Apurchaseorderwillbegeneratedfromthesignedcontract.
Thepurchaseorderandexecutedcontractwillbeforwardedtothecontractor/serviceproviderand theoriginatingDepartment.

5.5ExecutingtheContract:OncethedepartmenthasreceivedtheapprovedPurchaseOrderand copyofthecontractfromtheCityManagerorhis/herdesignee,theymaymakearrangementswith thevendorforpurchaseoftheproduct.

5.6ChangeOrders:TheCityManagerisauthorizedtoissuechangeordersforchangesoradditions totheoriginalscopeofworkthatresultinlessthana20%aggregatechangeincontractprice. Changeordersinexcessof20%shallbebroughttotheCityCouncilforapproval.
F.CAPITALEXPENDITURES

1.Capitalexpendituresincludeland,buildings,andmajorimprovementstobuildingsand equipment.Generally,theitemhasausefullifeofatleasttwoyearsandcostsatleast $5,000.Itemsofsmallvaluewhichmayhavearelativelylonglifesuchasshovels,tool boxes,scissors,etc.,butareofsmallindividualvalue,shouldbeclassifiedassupplies. Replacementorrepairparts(andlaborforsuchreplacementorrepairforcapitalitems) shouldbechargedtoamaintenanceorsuppliesaccount.
a.Costincludestheactualcostoftheitemitself,plusfreight,installationcosts,andany otherexpensesincurredthatarenecessarytogettheitemdelivered,installed,andin workingorder.

b.Theunitpriceofanitemratherthanthetotalcostofthepurchaseisthevaluetobe usedastheguide.

c.TheCityrequiresthatallnewlyacquiredfixedassetsbecentrallyrecorded.The AdministrativeServicesDepartmentwillenterthefixedassetintothegeneralledger systemforinventoryandvaluationpurposes.AllCityownedfixedassetsaretobe usedonlyforofficialCitybusiness.

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d.Capitalitemsaresubjecttothesameapprovalrequirementsasanyotherpurchase.

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SECTIONIV:EXCEPTIONSTOCOMPETITIVEPROCUREMENTPROCEDURES
A.SOLESOURCEPROCUREMENT

Negotiations.AcontractmaybeawardedwithoutcompetitionwhentheCityManager determinesinwriting,afterconductingagoodfaithreviewofavailablesources,thatthereisonly onesourcefortherequiredsupply,service,orconstructionitem.TheCityManagershallconduct negotiations,asappropriate,astoprice,delivery,andterms.
CostorPricingData.WhentheCitydeterminesthatanalysisoftheproposedpriceis necessarytodetermineifitisreasonableandfair,acontractorshallsubmitcostorpricingdata uponrequestandshallcertifythattothebestofitsknowledgeandbeliefthecostorpricingdata submittedwasaccurate,completeandcurrentasofamutuallydetermineddate.
Awardthepurchase.

B.COOPERATIVEAGREEMENTS

TheCityManagermayarrangefortheCitytoenteranagreementwithoneormorelocal,county state,federal,orotherpublicentity,schooldistrict,LeagueofCaliforniaCities,California CommunitiesProgram,orothernonͲprofitassociationorgroupconsistingofgovernmental entities,inordertocooperativelypurchasesupplies,equipment,services,includingbutnot limitedtomaterials,vehiclesandapparatus,incooperation,providedthat:
ThepurchasecontractwiththeSuppliers(s)istheresultofcompetitivebiddingornegotiation andismadeincompliancewiththecompetitivebidorproposalrequirementsofanyparticipating entityororganization;and

ThepurchaseconformstotheCity’sspecificationsfortheitemorservice;and
Theestimatedpriceofthepurchaseislowerthanthatestimatedforthepurchaseifmadedirectly bythepursuanttothisManual.

Awardthepurchase.

C. PIGGYBACKPURCHASES

TheCityManagermayarrangefortheCitytoenterintopurchasecontractswithaSupplier(s)for thepurchaseofsupplies,equipment,services,includingbutnotlimitedtomaterials,vehiclesand apparatus,thepricingandtermsofwhichhavebeenpreviouslyestablishedbyanotherlocal, county,state,federal,orotherpublicentity,schooldistrict,LeagueofCaliforniaCities,California CommunitiesProgram,orothernonͲprofitassociationorgroupconsistingofgovernmental entities;providedthat:
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ThepurchasecontractwiththeSupplier(s)istheresultofcompetitivebiddingornegotiationand ismadeincompliancewiththecompetitivebidorproposalrequirementsofanyparticipating entityororganization;and

Thepurchaseismadewithinareasonabletimeofthecompetitivebidornegotiation;and
ThepurchaseconformstotheCity’sspecificationsfortheitemorservice;and
Theestimatedpriceofthepurchaseislowerthanthatestimatedforthepurchaseifmadedirectly bytheCitypursuanttothisManual.

Awardthepurchase.

D.STANDARDIZATION

Whensupplies,equipment,orserviceshavebeenuniformlyadoptedorotherwisestandardized, orwhenanitemisdesignatedtomatchothersinusebytheCity,thepurchaseisnotsubjectto thisManual.

Awardthepurchase.

E. AWARDANDRECORDOFSOLESOURCE,COOPERATIVE,PIGGYBACK,AND STANDARDIZATIONPROCUREMENTS

1. AwardbyCityCouncil.Purchasesexceeding$100,000oranamountsetbyCityCouncil shallbeawardedbytheCityCouncilafterreceivingtherecommendationoftheCity Manager.

2. AwardbyCityManager.TheCityManagermayawardpurchasesoflessthantheamount thatrequiresawardbyCityCouncil,afterreceivingtherecommendationoftheCity ManagerorrequestingDepartmentHead.TheCityManagermayexecutecontractsand othernecessaryrelateddocumentsonbehalfoftheCityforpurchaseswithinhisorher awardingauthority.

3. PublicRecord.Arecordofcooperative,piggybackandstandardizationprocurementsshall bemaintainedaspublicrecordforpurchasesofitem(s)orservice(s)exceedingthe amountfixedbytheCityManagerforsolicitationofInformalQuotes.Saidrecordshalllist eachsupplierorcontractor’sname,theamountandtypeofeachcontract,andthe identificationnumberofeachcontractfile.Therecordshallbekeptwiththe correspondingpurchaseorder.

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F.EMERGENCYPROCUREMENTS

a. Authorization:NotwithstandinganyotherprovisionsofthisManual,anemergency declaredbyanappropriateauthorityasdescribedinPismoBeachMunicipalCode Chapter2.32,EmergencyServices,requiresthatanorderbeplacedwiththemost expeditionssourceofequipment,goodsorservices,takingintoaccounttimelinessof deliverandprice.IntheeventofanEmergency,theCityManager/Directorof EmergencyServicesisauthorizedtoapprovewithoutsolicitationofbidspurchases, leases,orothercontractsforgoodsorservicesuptoavalueof$200,000.TheCity Managermaymakeorauthorizeotherstomakeemergencyprocurementsof supplies,equipment,services,orconstructionitemswhenthereexistsathreatto publichealth,welfare,orsafety;providedthatsuchemergencyprocurementsshall bemadewithsuchcompetitionasispracticalunderthecircumstances.Awritten determinationofthebasisfortheemergencyandfortheselectionoftheparticular contractorshallbeincludedinthecontractfileandmaintainedasapublicrecordfor purchasesofitem(s)orservice(s)exceedingtheamountfixedbytheCityManagerfor solicitationofInformalQuotes.Assoonaspractical,arecordofeachemergency procurementshallbemadeandshallsetforthcontractor’sname,theamount,and typeofthecontract,alistingoftheitem(s)orservice(s)procuredunderthecontract, andtheidentificationnumberofthecontractfile.

b. Ratification:Emergencyprocurementsshallberatifiedassoonaspractical,asfollows:
i. RatificationbyCityCouncil:Emergencyprocurementsexceeding$200,000or theamountsetbyCityCouncilshallberatifiedbytheCityCouncilattheirnext regularCityCouncilafterreceivingtherecommendationoftheCityManager.
ii. RatificationbytheCityManager:Emergencyprocurementsexceeding$50,000 shallberatifiedbytheCityManagerafterreceivingtherecommendationofthe DepartmentHead.

G.ROUTINEEXPENDITURESFORUTILITIES,PAYROLL&OTHERSERVICES
Routineexpendituresthatbenefitseveraldepartments,suchastelephone,utilities,debtservice payments,andpayrollbenefitcosts,shallbepaidbytheAdministrativeServicesDepartment withouttheuseofaPurchaseOrderRequest.Computerspreadsheets,reports,orothercoding informationwillbesufficienttouseasbackupdocumentation.Theseproceduresmaybewaivedin theeventofanemergency,ifitisinthepublicinterest.
H.FEDERALLYFUNDEDPROCUREMENTPOLICY

1. PurposeandApplicability.ThissectionpertainstofederallyͲfundedprojectsandpurchases. Thepurposeofthissectionistoensurecompliancewithallapplicablefederalrequirements PAGE 30 OF 55
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whenfederalmoneyisbeingexpendedbytheCity.Totheextentthatanyprovisionsofthis policyareinconsistentwithanyotherCityregulations,theprovisionsofthispolicyshall prevailwithrespecttofederallyͲfundedprocurements.Ifanyprovisionsofthispolicy becomesinconsistentwithfederalrequirements,whetherduetoachangeinfederallawor regulations,throughjudicialprecedent,orforanyotherreason,thentheCityshallnotbe requiredtocomplywiththeinconsistentprovision.

2. CodeofConduct.AsrepresentativesoftheCityofPismoBeachemployeesareexpectedto conductthemselvesinaprofessionalandethicalmanner,maintaininghighstandardsof integrityandtheuseofgoodjudgement.Employeesareexpectedtobeprincipledintheir businessinteractionsandactingoodfaithwithindividualsbothinsideandoutsidetheCity. ThefollowingCodeofConductshallgoverntheperformance,behaviorandactionsofthe City,includingemployees,directors,appointedorelectedofficials,volunteers,oragentswho areengagedinanyaspectoffederallyfundedprocurement,including,butnotlimitedto, purchasinggoodsandservices,awardingcontractsandgrants,andtheadministrationand supervisionofcontracts:

a. Noemployee,director,appointedorelectedofficial,volunteer,oragentoftheCityshall participateintheselection,award,oradministrationofcontractssupportedbyafederal awardifaconflictofinterestisrealorapparenttoareasonableperson.
b. Conflictsofinterestmayarisewhenanyemployee,officer,oragentoftheCity,any memberofhisorherimmediatefamily,hisorherpartner,oranorganizationwhich employsorisabouttoemployanyofthepartiesindicatedherein,hasarealorapparent financialorotherinterestinoratangiblepersonalbenefitformafirmconsideredfor thecontract.

c. Noemployee,director,appointedorelectedofficial,volunteer,oragentoftheCityshall dobusinesswith,awardcontractsto,orshowfavoritismtowardamemberofhisorher immediatefamily,spouse’sfamily,ortoanycompany,vendor,contractor,orpartiesto subcontractorswhoeitheremployorhasanyrelationshiptoafamilymember;oraward acontractorbidwhichviolatesfederal,stateandlocalprocurementlawsandpolicies establishedtomaximizefreeandopencompetitionamongqualifiedvendors.
d. TheCity’semployees,directors,appointedorelectedofficials,volunteers,oragents shallneithersolicitnoracceptgratuities,favors,gifts,consultingfees,trips,oranything havingamonetaryvalueinexcessofthegiftlimitationamountestablishedbytheFair PoliticalPracticesCommissionfromavendor,potentialvendor,familyoremployeesof avendor,contractororpartiestosubcontractors.

e. DisciplinarymeasuresforviolationsoftheCodeofConductbyemployees,directors, appointedorelectedofficials,volunteers,oragentswhoareengagedinanyaspectof procurement,including,butnotlimitedto,purchasinggoodsandservices,awarding contractsandgrants,andtheadministrationandsupervisionofcontractscouldleadto

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disciplinarymeasures,uptoandincludingpossibleterminationofemployment.

3. SolicitationProcedures
a. Acquisitionofunnecessaryorduplicativeitemsmustbeavoided.Considerationshould begiventoconsolidatingordividingprocurementstoobtainamoreeconomicalpurchase. Whenappropriate,ananalysiswillbemadeofleaseversuspurchasealternatives,and anyotherappropriateanalysistodeterminethemosteconomicalapproach.
b. Tofostergreatereconomyandefficiency,andinaccordancewitheffortstopromote costͲeffectiveuseofsharedservices,theCityshallenterintostateandlocal intergovernmentalagreementsorinterͲentityagreementswhereappropriatefor procurementoruseofcommonorsharedgoodsandservices.
c. Procuringfederalexcessandsurpluspropertyinlieuofpurchasingnewequipmentand propertywheneversuchuseisfeasibleandreducesprojectcostsshallbeutilized.
d. Valueengineeringclausesmaybeusedincontractsforconstructionprojectsofsufficient sizetoofferreasonableopportunitiesforcostreductions.Valueengineeringisa systematicandcreativeanalysisofeachcontractitemortasktoensurethatitsessential functionisprovidedattheoveralllowercost.

e. Contractsshallonlybeawardedtoresponsiblecontractorspossessingtheabilityto performsuccessfullyunderthetermsandconditionsofaproposedprocurement. Considerationwillbegiventosuchmattersascontractorintegrity,compliancewith publicpolicy,recordofpastperformance,andfinancialandtechnicalresources.
f. Recordswillbemaintainedsufficienttodetailthehistoryofprocurement.Theserecords willinclude,butarenotnecessarilylimitedtothefollowing:rationaleforthemethodof procurement,selectionofcontracttype,contractorselectionorrejection,andthebasis forthecontractprice.TheCityClerkwillbetherepositoryforsaidrecordsandshallbe maintainedinaccordancewiththeCity’sadoptedrecordsretentionschedule.
g. Timeandmaterialtypecontracts(openͲended)maybeusedonlyafteradetermination thatnoothercontractissuitable.Timeandmaterialtypecontractmeansacontract wherethecosttotheCityisthesumoftheactualcostofmaterialsanddirectlabor hourschargedatfixedhourlyratesthatreflectwages,generalandadministrative expense,andprofit.Eachtimeandmaterialcontractwillsetaceilingpricethatthe contractorexceedsatitsownrisk.Ahigherdegreeofoversightisrequiredinorderto obtainreasonableassurancethatthecontractorisusingefficientmethodsandeffective costcontrols.

h. TheCityalonewillberesponsible,inaccordancewithgoodadministrativepracticeand soundbusinessjudgment,forthesettlementofallcontractualandadministrativeissues PAGE 31 OF 55
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arisingoutofprocurements.Theseissuesinclude,butarenotlimitedto,source evaluation,protests,disputes,andclaims.ThesestandardsdonotrelievetheCityof PismoBeachanycontractualresponsibilitiesunderitscontracts.Thefederalawarding agencywillnotsubstituteitsjudgmentforthatoftheCityunlessthematterisprimarily afederalconcern.Violationsoflawwillbereferredtothelocal,state,orfederalauthority havingproperjurisdiction.

4. Competition
a. Allprocurementtransactionsmustbeconductedinamannerprovidingfullandopen competition.Inordertoensureobjectivecontractorperformanceandeliminateunfair competitiveadvantage,contractorsthatdevelopordraftspecifications,requirements, statementsofwork,andinvitationsforbidsorrequestsforproposalswillbeexcluded fromcompetingforsuchprocurements.Someofthesituationsconsideredtobe restrictiveofcompetitioninclude,butarenotlimitedto:
1) Placingunreasonablerequirementsonfirmsinorderforthemtoqualifytodo business;
2) Requiringunnecessaryexperienceandexcessivebonding; 3) Noncompetitivepricingpracticesbetweenfirmsorbetweenaffiliatedcompanies; 4) Noncompetitivecontractstoconsultantsthatareonretainercontracts; 5) Organizationalconflictsofinterest;
6) Specifyingonlyabrandnameproductinsteadofallowinganequalproducttobe offeredanddescribingtheperformanceorotherrelevantrequirementsofthe procurement;and
7) Anyarbitraryactionintheprocurementprocess.

b. Procurementsshallbeconductedinamannerthatprohibitstheuseofstatutorilyor administrativelyimposedstateorlocalgeographicalpreferencesintheevaluationof bidsorproposals,exceptinthosecaseswhereapplicablefederalstatutesexpressly mandateorencouragegeographicpreference.Nothinginthissectionpreemptsstate licensinglaws.Whencontractingforarchitecturalandengineering(A/E)services, geographiclocationmaybeaselectioncriterionprovideditsapplicationleavesan appropriatenumberofqualifiedfirms,giventhenatureandsizeoftheproject,to competeforthecontract.

c. Allsolicitationswillincorporateaclearandaccuratedescriptionofthetechnical requirementsforthematerial,product,orservicetobeprocured.Suchdescriptionmust not,incompetitiveprocurements,containfeatureswhichundulyrestrictcompetition. Thedescriptionmayincludeastatementofthequalitativenatureofthematerial, productorservicetobeprocuredand,whennecessary,mustsetforththoseminimum essentialcharacteristicsandstandardtowhichitmustconformifitistosatisfyits intendeduse.Detailedproductspecificationsshouldbeavoidedifatallpossible.When itisimpracticaloruneconomicaltomakeaclearandaccuratedescriptionofthe

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technicalrequirements,abrandnameorequivalentdescriptionmaybeusedasameans todefinetheperformanceorotherrelevantrequirementsofprocurement.The specificfeaturesofthenamedbrandwhichmustbemetbyoffersmustbeclearlystated.
d. Bidsandproposalsshallidentifyalltherequirementswhichtheofferorsmustfulfilland allotherfactorstobeusedinevaluationbidsorproposals

5. MethodsofProcurement.InadditiontotheCity’spurchasingpolicyapprovallimits,oneof thefollowingmethodsshouldbeused:

a. MicroͲpurchase:Purchaseswheretheaggregatedollaramountdoesnotexceed$3,000, orthecurrentlimitationsetbytheFederalAcquisitionRegulationat48CFRSubpart2.1, wherethisthresholdisperiodicallyadjustedforinflation. b. Smallpurchase:PurchasesuptotheSimplifiedAcquisitionthreshold,whichiscurrently $150,000.Informalpurchasingproceduresareacceptable,butpriceorratequotesmust beobtainedfromanadequatenumberofsources.
c. Sealedbid:PurchasesovertheSimplifiedAcquisitionthreshold,whichiscurrently $150,000.Underthispurchasemethod,formalsolicitationisrequired,andthefixedprice (lumpsumorunitprice)isawardedtotheresponsiblebidderwhoconformedtoallmaterial termsandisthelowestinprice.Thismethodisthepreferredprocurementmethodfor constructioncontracts,ifthefollowingconditionsapply:
1) Acomplete,adequate,andrealisticspecificationorpurchasedescriptionisavailable; 2) Twoormoreresponsiblebiddersarewillingandabletocompeteeffectivelyforthe business,and,
3) Theprocurementlendsitselftoafirmfixedpricecontractandtheselectionofthe successfulbiddercanbemadeprincipallybasedonprice.
Ifthismethodisused,thefollowingrequirementsshallapply:
4) Theinvitationforbidswillbepubliclyadvertisedandbidsmustbesolicitedfroman adequatenumberofknownsuppliers,providingthemsufficientresponsetimeprior tothedateforopeningthebids;
5) Theinvitationforbids,whichwillincludeanyspecificationsandpertinent attachments,mustdefinethetermsorservicesinorderforthebiddertoproperly respond;
6) Allbidswillbepubliclyopenedatthetimeandplaceprescribedintheinvitationfor bids;
7) Afirmfixedpricecontractawardwillbemadeinwritingtothelowestresponsiveand responsiblebidder.Wherespecifiedinbiddingdocuments,factorssuchasdiscounts willonlybeusedindeterminingwhichbidislowest.Paymentdiscountswillonlybe usedtodeterminethelowbidwhenpriorexperienceindicatesthatsuchdiscounts areusuallytakenadvantageof;and
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8) Anyorallbidsmayberejectedifthereisasounddocumentedreason.
d. Competitiveproposals:PurchasesovertheSimplifiedAcquisitionthreshold,whichis currently$150,000.Thisprocurementmethodrequiresformalsolicitation,fixedͲpriceor costͲreimbursementcontracts,andisusedwhensealedbidsarenotappropriate.The contractshouldbeawardedtotheresponsiblefirmwhoseproposalismostadvantageous totheprogram,withpricebeingoneofthevariousfactors.Ifthismethodisused,the followingrequirementsapply:

1) Requestsforproposalsmustbepublicizedandidentifyallevaluationfactorsand theirrelativeimportance.Anyresponsetopublicizedrequestsforproposals mustbeconsideredtothemaximumextentpractical;

2) Proposalsmustbesolicitedfromanadequatenumberofqualifiedsources;
3) Themethodsforconductingtechnicalevaluationsoftheproposalsreceivedand forselectingrecipientsmayinclude,butnotlimitedto:oralinterviews, references,pastperformance,availabilitytoperformwork,andcertificationsas determinedbyprojectscope.

4) Anyresponsethattakesexceptiontoanymandatoryitemsinthisproposal processmayberejectedandnotconsidered;

5) Contractsmustbeawardedtotheresponsiblefirmwhoseproposalismost advantageoustotheprogram,withpriceandotherfactorsconsidered;and,
6) CompetitiveproposalproceduresmaybeusedforqualificationsͲbased procurementofarchitectural/engineering(A/E)professionalserviceswhereby competitors’qualificationsareevaluatedandthemostqualifiedcompetitoris selected,subjecttonegotiationoffairandreasonablecompensation.The method,wherepriceisnotusedasaselectionfactor,canonlybeusedin procurementofA/Eprofessionalservices.Itcannotbeusedtopurchaseother typesofservices,thoughA/Efirmsareapotentialsourcetoperformthe proposedeffort.

e. Noncompetitiveproposals:AlsoknownassoleͲsourceprocurement,thismaybe appropriateonlywhenoneormoreofthefollowingcriteriaaremet: 1) Theitemisavailableonlyfromasinglesource;
2) Thepublicemergencyfortherequirementwillnotpermitadelayresultingfrom competitivesolicitation;
3) TheFederalawardingagencyorpassͲthroughentityexpresslyauthorizes noncompetitiveproposalsinresponsetoawrittenrequestfromthenonͲ federalentity;or

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4) Aftersolicitationofanumberofsources,competitionisdetermined inadequate.

f. ContractCostandPrice.Acostorpriceanalysisshallbeperformedinconnectionwith everyprocurementactioninexcessoftheSimplifiedAcquisitionthreshold($150,000), includingcontractmodifications.Themethodanddegreeofanalysisisdependenton thefactssurroundingtheparticularprocurementsituation,butasastartingpoint, independentestimatesshallbemadepriortoreceivingbidsandproposals.
1) Profitshallbenegotiatedasaseparateelementofthepriceforeachcontractinwhich thereisanopricecompetitionandinallcaseswherecostanalysisisperformed.To establishafairandreasonableprofit,considerationmustbegiventothecomplexity oftheworktobeperformed,theriskbornebythecontractor,thecontractor’s investment,theamountofsubcontracting,thequalityofitsrecordofpast performance,andindustryprofitratesinthesurroundinggeographicalareafor similarwork.

2) Costsorpricesbasedonestimatedcostsforcontractsunderthefederalawardare allowableonlytotheextentthatcostsincurredorcostestimatesincludedin negotiatedpriceswouldbeallowablefortheCityunderSubpartEͲCostPrinciples ofPart200ͲUniformAdministrativeRequirements,CostPrinciples,andAudit RequirementsforFederalAwards.

3) Thecostplusapercentageofcostandpercentageofconstructioncostmethodsof contractingshallbeused.

6. FederalAwardingAgencyorPassͲThroughEntityReview a. TheCityshallmakeavailable,uponrequestofthefederalawardingagencyorpassͲ throughentity,technicalspecificationsonproposedprocurementswherethefederal awardingagencyorpassͲthroughentitybelievessuchreviewisneededtoensurethat theitemorservicespecifiedistheonebeingproposedforacquisition.Thisreview generallywilltakeplacepriortothetimethespecificationisincorporatedintoa solicitationdocument.However,iftheCitydesirestohavethereviewaccomplished afterasolicitationhasbeendeveloped,theFederalawardingagencyorpassͲthrough entitymaystillreviewthespecifications,withsuchreviewusuallylimitedtothetechnical aspectsoftheproposedpurchase.

b. TheCitywillmakeavailableuponrequest,fortheFederalawardingagencyorpassͲ throughentitypreͲprocurementreview,procurementdocuments,suchasrequestsfor proposalsorinvitationsforbids,orindependentcostestimates,when:
1) Procurementproceduresoroperationsfailstocomplywiththeprocurement standardsinthispart;
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2) TheprocurementisexpectedtoexceedtheSimplifiedAcquisitionThreshold ($150,000)andistobeawardedwithoutcompetitionoronlyonebidorofferis receivedinresponsetoasolicitation;
3) Theprocurement,whichisexpectedtoexceedtheSimplifiedAcquisitionThreshold, specifiesa“brandname”product;
4) TheproposedcontractismorethantheSimplifiedAcquisitionThresholdandistobe awardedtootherthantheapparentlowbidderunderasealedbidprocurement;or 5) Aproposedcontractmodificationchangesthescopeofacontractorincreasesthe contractamountbymorethantheSimplifiedAcquisitionThreshold.
c. TheCityisexemptfromthepreͲprocurementreviewinparagraph2ofthissectionifthe federalawardingagencyorpassͲthroughentitydeterminesthatitsprocurement systemscomplywiththestandardsofthispart.

d. TheCitymayrequestthatitsprocurementsystembereviewedbythefederalawarding agencyorpassͲthroughentitytodeterminewhetheritssystemmeetsthesestandards inorderforitssystemtobecertified.Generally,thesereviewsmustoccurwherethere iscontinuoushighͲdollarfunding,andthirdͲpartycontractsareawardedonaregular basis;

e. TheCitymayselfͲcertifyitsprocurementsystem.SuchselfͲcertificationmustnotlimit thefederalawardingagency'srighttosurveythesystem.UnderaselfͲcertification procedure,thefederalawardingagencymayrelyonwrittenassurancesfromtheCitythat itiscomplyingwiththesestandards.TheCitymustcitespecificpolicies,procedures, regulations,orstandardsasbeingincompliancewiththeserequirementsandhaveits systemavailableforreview.

7. BondingRequirements.Forconstructionorfacilityimprovementcontractsorsubcontracts exceedingtheSimplifiedAcquisitionThreshold($150,000),thefederalawardingorpassͲ throughentitymayacceptthebondingpolicyandrequirementsoftheCityprovidedthat thefederalawardingagencyorpassͲthroughentityhasmadeadeterminationthatthe federalinterestisadequatelyprotected.Ifsuchadeterminationhasnotbeenmade,the minimumrequirementsmustbeasfollows:

a. Abidguaranteefromeachbidderequivalenttofivepercent(5%)ofthebidprice.The bidguaranteemustconsistofafirmcommitmentsuchasabidbond,certifiedcheck,or othernegotiableinstrumentaccompanyingabidasassurancethatthebidderwill,upon acceptanceofthebid,executesuchcontractualdocumentsasmayberequiredwithin thetimespecified;

b. Aperformancebondonthepartofthecontractorfor100percent(100%)ofthecontract price.Aperformancebondisoneexecutedinconnectionwithacontracttosecure

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fulfillmentofallthecontractor’sobligationsundersuchcontract;and,
c. Apaymentbondonthepartofthecontractorfor100percent(100%)ofthecontract price.Apaymentbondisoneexecutedinconnectionwithacontracttoassurepayment asrequiredbylawofallpersonssupplyinglaborandmaterialintheexecutionofthework providedforinthecontract.

8. ContractProvisions.Allfederalfundingsourcecomplianceprovisionsshallincludethe following:

a. EqualEmploymentOpportunityͲAllcontracts,whenfundedinwholeorpartlybymonies derivedfromthefederalgovernment(eitherdirectlyorindirectly),shallcontaina provisionrequiringcompliancewithEqualEmploymentOpportunity.
b. DavisͲBaconActͲAppliestoconstructioncontractsinexcessof$2,000.Itrequires contractstopaylaborersandmechanicswagesnotlessthantheprevailingwageas determinedbytheSecretaryofLaborandmustberequiredtopaywagesnotlessthan onceaweek.EachbidsolicitationpublishedbytheCitymustcontainthecurrent prevailingwagedetermination.Anyawardofthecontractmustbeconditionedon contractor’sacceptanceofthatwagedeterminationandsuspectedorreported violationsofthisactshallbeimmediatelyreportedtotheFederalawardingagency.
c. Copeland“AntiͲKickback”ActͲAppliestoconstructioncontractsinexcessof$2,000.It prohibitskickbacksinconstructioncontractsfundedwithFederalmonies.Contractorsand subcontractorsorsubrecipientsshallbeprohibitedfrominducinganypersonemployed intheconstruction,completion,orrepairofpublicwork,togiveupanypartofthe compensationtowhichheorsheisotherwiseentitledandsuspectedorreported violationsshallbeimmediatelyreportedtotheFederalawardingagency.
d. CleanAirAct&FederalWaterPollutionControlActͲAppliestocontractsandsubgrants inexcessof$150,000.Contractorshallberequiredtocomplywithallapplicable standards,ordersorregulationsissuedpursuanttotheCleanAirActandtheFederal WaterPollutionControlAct.Suspectedorreportedviolationsmustbereportedtothe FederalawardingagencyandtheRegionalOfficeoftheEnvironmentalProtection Agency(EPA).

e. DebarmentandSuspensionͲContractsfundedwithfederalgrantmoniesmaynotbe awardedtocontractorsthathavebeendebarredorsuspendedfromreceivingfederal moniespursuanttotheSystemforAwardManagement(SAM).
f. ByrdAntiͲLobbyingAmendmentͲContractorsthatapplyorbidforanawardof$100,000 mustcertifythattheywillnotandhavenotusedfederalfundstopayanypersonor organizationforinfluencingorattemptingtoinfluenceanofficeroremployeeofany PAGE 34 OF 55
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agency,amemberofCongress,officeroremployeeofCongress,oranemployeeofa memberofCongressinconnectionwithobtaininganyFederalcontract,grantoranyother award.

9. Contractingwithsmallandminoritybusiness,women’sbusinessenterprises,andlabor surplusareafirms.Allnecessaryaffirmativestepswillbetakentoassurethatminority business,women’sbusinessenterprises,andlaborsurplusareafirmsareusedwhen possible.Affirmativestepsinclude:

a. Placingqualifiedsmallandminoritybusinessesandwomen’sbusinessenterpriseson solicitationlists;

b. Assuringthatsmallandminoritybusinessesandwomen’sbusinessenterprisesare solicitedwhenevertheyarepotentialsources;

c. Dividingtotalrequirements,wheneconomicallyfeasible,intosmallertasksorquantities topermitmaximumparticipationbysmallandminoritybusinessesandwomen’sbusiness enterprises;

d. Establishingdeliveryschedules,wheretherequirementpermits,whichencourage participationbysmallandminoritybusinessesandwomen’sbusinessenterprises;
e. Usingtheservicesandassistance,asappropriate,ofsuchorganizationsastheSmall BusinessAdministrationandtheMinorityBusinessDevelopmentAgencyofthe DepartmentofCommerce;and,

f. Requiringtheprimecontractor,ifsubcontractsaretobelet,totaketheaffirmativesteps listedinparagraphs(1)through(5)ofthissection.

I. ADMINISTRATIVEEXCEPTIONSPOLICYFORPURCHASING

1. Exceptionstocompetitiveprocurementproceduresthatarenotincludedintheexisting purchasingpolicy.
a. RiskManagementInsurancePayments
b. AttorneyBillswithanexistingcontract
c. SLOCountyDepartmentofPublicWorks
d. SLOCountyAirPollutionControlDistrict
e. StateofCaDepartmentofForestryandFireProtection f. StateWaterResourcesControlBoard
g. AttorneyorCourtSettlements
h. Refunds
i. TravelorTraining

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2. Intheeventaninvoicedoesnothaveapurchasesorderissued,andexceedsthepurchasing limits,theinvoicewillneedtobeapprovedbytheAdministrativeServicesDirector,City Manager,ortheAssistantCityManagerastheCityManager’sDesigneedependentonthe amountoftheinvoice.
a. Over$50,000,DepartmentHeadandAdministrativeServicesDirector b. $50,001Ͳ$100,000,DepartmentHead,AdministrativeServicesDirector,andCityManager Approval
c. Morethan$100,000,CityCouncilApproval.

3. Ifaninvoiceexceedsapurchaseorderthatwasissuedforaroutinepurchase,theinvoicewill needtobeapprovedbytheAdministrativeServicesDirector.
J.VEHICLEEXCEPTIONSPOLICYFORSPECIALCIRCUMSTANCES
IntheeventthattheCityneedstoexpeditiouslyreplaceoneormorevehiclesand seekingthreewrittenbidsisimpracticableduetothespecialcircumstancessetforth below,theDepartmentHeadmayrecommendtotheCityManagerthattheCityacquire thevehicle(s)withoutthestandardbidprocessofseekingthreewrittenbids.Asused herein,“specialcircumstances”meansthefollowing:

1. Thevehicleisnotavailabletothegeneralpublicthroughregularcommercial vehicledealersandthevehicleisnotavailablethroughcooperativeorpiggyͲback purchasing.

2. Thevehicleisavailablefromavehicledealer,thevehicleincludesspecialized equipmentinstalledbythevehicledealerthatotherwiserequiressignificantleadtime toacquireorinstall,andtheCityhasanimmediateneedtoreplacetheCity’sexisting vehicleduetounanticipatedfailureofthevehicle,

3. Thevehicleisavailabletothegeneralpublicthroughregularcommercialdealers, butduetosupplychainconstraintsorscarcityofthevehicle,acquiringthevehicle throughtraditionalbiddingwouldresultinthelossofopportunitytoacquirethe vehicle.

Underthesespecialcircumstances,theDepartmentHeadshallrecommendthepurchase, specificallydescribingthespecialcircumstances.UponreceiptoftheDepartmentHead’s recommendation,theCityManagerhastheauthoritytoawardthecontractwiththe chosenvendor,uptotheCityManager’spurchasingauthority.Ifthepurchaseprice exceedstheCityManager’sauthority,thepurchaseshallbeauthorizedbytheCity Council.

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SECTIONV:PURCHASEORDERS

A. REQUIREMENTSͲWHENTOUSE

1.Forallpurchasesoftangibleitemsorservicesover$10,000,aPurchaseOrder(P.O.)is required.

2.Onceaninformalbidorformalbidhasbeenacceptedandapproved,aPurchaseOrder Requestshallbeprepared(bytherequestingdepartment)usinga“PurchaseOrder RequestForm”.Theformshoulddetail:

x Vendorname
x Vendoraddress
x Itembeingpurchased
x Totalpriceincludingtaxandshipping
x Budgetaccounttobecharged

(TheAdministrativeServicesDepartmentwillassignaP.O.numberaftertherequesthasbeen approvedandenteredintothefinancialsystem.)ThePurchaseOrderRequestshallbesignedand datedbytheDepartmentHead.

B.REQUESTINGAPURCHASEORDER

1. Torequestapurchaseorder,firstfilloutthe“PurchaseOrderRequestForm”in LaserficheForms.

2. Completethepurchaseorderpacket.Thepurchaseorderpacket(whichincludesany writtenbidssubmittedbyvendorsandanyotherpertinentdocumentation)shallbe submittedtothePurchasingOfficialorhis/herdesigneeforapproval.Ifnecessary,the P.O.packetwillbeforwardedtotheCityManager’sOfficeforapproval.Onceallapprovals havebeenobtained,thePurchaseOrderwillbeencumberedintheFinancesystem,and aP.O.numberwillbeautomaticallyassigned.Byencumberingthefundsinthegeneral ledger,theywillbeheldforthatspecificpurpose,andwillnotbeavailableforanyother purposeunlessthepurchaseorderiscanceledandthefundsarereleased.Notethatif theinvoicepresentedforpaymentisequaltotheamountofthePurchaseOrder,the encumbrancewillautomaticallybeliquidateduponpaymentoftheinvoice.However,if theinvoiceisapartialpaymentofthePurchaseOrder,itistheRequestor’sresponsibility toinstructAccountsPayabletoliquidatetheencumbrancewhenfinalpaymenthasbeen made.

3. OncethePurchaseOrderhasbeengenerated(fornonͲcontracts),thepurchaseorderwill besenttotherequestingdepartment.Thedepartmentwillneedtosendthepurchase ordertothevendortoinitiatetheorderforgoodsorservices.

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C.SPECIALPURCHASEORDERS

1.BlanketPurchaseOrders(sometimesreferredtoas"Open"PurchaseOrders)
a.WhentoUse

Whenverysimilargoodsorservicesarepurchasedfrequentlyduringtheyear.Generally, anyindividualpurchaseissmallinrelationtothetotalamountauthorizedbytheblanket purchaseorderorinrelationtothetotalamountbudgetedforthegoodsorservices.
Whentherearealimitednumberofvendorswhosupplyaparticulargoodorservice. Vendorsmaybeunwillingtorepeatedlybidonsmalljobsespeciallywhentheyhavenot beenawardedthejobinthepast.However,theprospectofalargeannualcontractmay inducethemtoprepareacompleteandmorecompetitivebid.
b.HowtoProcess

TheRequestorshould:

Identifyanddocumenttheneedtohaveablanketpurchaseorderthroughthe examinationofpastpurchasingrecordsandthecurrentbudget.
Solicitbidsandobtainapprovalsusingthesamecriteriaasforasingleitempurchase order;i.e.,ifthetotalamountismorethan$50,000,theformalbiddingprocessmustbe followedandCityCouncilapprovalobtained.

PrepareaPurchaseOrderRequestFormtogenerateaPurchaseOrdertobesenttothe vendorandtoencumberthefundsontheGeneralLedgerforanamountnottoexceed thecontractamount.Ineithercase,thePurchaseOrderorthecontractmustinclude wordingthatclearlyidentifiesthearrangement,suchas:
FurnishgoodsorservicesasrequestedbyCityofPismoBeachemployees(orstate specificallywhoisauthorizedtoplaceorders)whenabovepurchaseordernumberis referenceduptoatotalmaximumamountof$(stateanamount).Issueinvoicesforeach individualorderplaced.Thispurchaseorderexpireson(date).
D.YEARENDPROCESSFORENCUMBRANCES/PURCHASEORDERS

1. BecauseofthelargevolumeofrequestspresentedatyearͲend,AdministrativeServices willestablishacutoffdateforRequestsforPurchaseOrderseachyear,neartheendof June.AtyearͲend,allaccountsmusthaveanavailablebalancegreaterthanorequalto PAGE 36 OF 55
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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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theamountofthepurchaseorderrequested.Ifneeded,pleaseprocessa"Requestfor BudgetTransfer/Revision"formpriortosubmittingthe"PurchaseOrderRequest"form.

2. PurchaseordersissuedintheGeneralFund,SpecialRevenueFunds,DebtServiceFunds, andCapitalImprovementProjectFundsmaybecarriedforwardtothefuturefiscalyear. Exceptforcapitalimprovementprojects,priorͲyearcarryforwardpurchaseorderswillbe liquidatedattheendofthefiscalyear.

Forexample,FiscalYear2023Ͳ24orFY2024purchaseordersare:
x carriedovertoFiscalYear2025
x liquidatedonJune30,2024
x notcarriedovertothenextfiscalyear,2024

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SECTIONVI:PAYMENTOFINVOICES

A.RECEIPTOFGOODSANDSERVICES

Oncethedepartment/divisionhasreceivedtheapprovedPurchaseOrderfromtheCityManageror his/herdesignee,theymaycontactthevendorandpurchasetheitem.Itemsmustgenerallybe shippedtoaCityaddressorworksite.Iftheproductwillbeshippedtoanalternatelocation,this shouldbeclearedthroughtheAdministrativeServicesDepartmentinadvance.
Oncethemerchandiseorserviceorderhasbeenplaced,thentherequestingdepartmentwillwait untiltheitemisreceived,ortheservicecompleted.Oncethishasoccurred,thedepartmentshould awaitarrivaloftheinvoiceforpayment.

B.INVOICEPROCESS

1.Onceaninvoice/receipt/backupisreceived,Departmentstaffshouldverifythatthe goods/serviceswerereceivedingoodworkingorder,thattheinvoiceisfortheagreed uponprice,etc.

Directlyontheinvoice/receipt/backup,theDepartmentstaffshouldthenscaninto Laserficheworkflowsandfillouttheappropriatemetadata,including:
x Thattheyareauthorizingpayment(i.e.usestamp)
x Theamountthattheyareauthorizingforpayment
x Theaccountnumberthatistobecharged
x Provideinvoice/receipt/backup

2. Inadditiontotheabove,AccountsPayablewillbelookingforthefollowinginorderto processpayment:

Signedapprovaldirectlyontheinvoice/receipt/form.Ifyouneedtomailtheoriginal invoice/receipt/form,makeacopyofitandapprovethecopy.
Donotapprovememosorinternallygenerateddocuments.
Donotapprove“Statements”or“PreviousBalances”forpayment.Ifthereisanitemonthe Statementforwhichwedonothaveaninvoice,contactthevendorandgetacopyofthe invoice.

Iftheitemisformorethan$10,000theapprovedpurchaseordershouldbeattachedtothe invoice.

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3. AWͲ9shouldalreadybeonfileinAdministrativeServices,ifnot–attachitorcontact AccountsPayabletofindouthowtoproceed.

4. Ifthepaymentispartofacontract,acopyofthecontractshouldalreadybeonfilein AdministrativeServices,otherwiseͲattachit.Ifaninvoiceispartofapurchaseorderthathas alreadybeenapproved,andiftheinvoiceisgreaterthan$100,000,thenitdoesnotneedto gobacktoCouncilforapproval.Forinvoiceslessthan$100,000,thenormalDepartment Staff,DepartmentHead,andCityManagerapprovalsapply.Forexample,iftheCouncil approvedacontractfor$400,000andapurchaseorderwassetupforthecontract,thenthe CityManagercouldapproveaninvoicefor$120,000withoutgoingtoCouncil.

5. Attachacopyoftherelatedflyer/seminarbrochure/notificationtoALLtravelandtraining paymentrequests.Inadditionacopyoftheapproved“TravelAuthorizationform”should beattachedforalltraining/travelexpensesoutoftheSanLuisObispo/SantaBarbaraCounty areas.(Thisincludesallperdiemrequests,tuitionrequests,lodgingreimbursements,etc.)

6. InordertostreamlineAccountsPayablewerequestthatyoudothefollowing:
Adheretothefollowingaccountspayableschedule.(Wecurrentlyprocessanaverageof200 invoiceseachA/Prun.)

InvoicesaretypicallydueonTuesday.

OnWednesday,theAccountsPayableClerkwillreviewalloftheinvoices,doublecheck coding,makesurethatallofthenecessarydocumentationisincluded,checkforduplicate paymentsandcallindividualswithquestionsorproblems.
TuesdayandWednesdayaretypicallyspententeringinvoices.
Thursdayisspentontheinvoiceeditlist.OnThursdayafternoonorFridaymorning,checks aretypicallyprinted.TherestofFridayisspentmatchingcheckstoinvoices,makingany necessaryadditionalcopies,checks,runningdownproblemsandprocessingspecial requests.

Lateinvoicesandearlycheckrequestsdonoteasilyfitintotheschedule.Goingbacktoredo anyoneprocessinordertoaccommodateonelateinvoicecancostanywherefroman additional15minutesto2hoursoftime.Pleasetrytoavoidit.

7. Planahead.Pleasetrytoavoid“emergencychecks”.Weunderstandthatsometimesacheck mustbecutoutsidetheregularcheckrun,butpleasetrytokeepthesecheckstoanabsolute minimum.Processingforanemergencycheckmaycostanadditionalonetotwohoursof stafftimeovera“regularcheck”.

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8. Letusknow.Pleasegiveusadvancewarningofanyemergencychecksthatmaybecoming ourway.Thiswillhelpensurethatthecheckisprocessedinatimelymanner.

9. Don’tpromise“specialchecks”or“earlychecks”toanyonewithoutfirstcheckingwith accountspayable.Therearerareinstanceswhenitjustcan’tbedone.

10. ContacttheAccountsPayableClerkdirectlyforspecialprocessingoremergencychecks. Withanaverageof500invoicesflowingthroughaccountspayableatanyonetime,don’t assumethattheAccountsPayableClerkisgoingtonoticeyournoteaskingforacheckbya certaindate.

11. Usea“CheckRequestForm”insteadofapurchaseorderasarequestforacheck

12. Requestsforreimbursementsofexpensesshouldbemadeonan“TravelExpense ReimbursementForm”.Thereceiptorotheroriginalbackuppertainingtothe reimbursementshouldbeattached.

13. Requestsforperdiemshouldbemadeonthe“TravelAdvanceForm”.Aseparaterequest shouldbecompletedforeachemployee.Besuretoattachacopyofthecitymanager approved“TravelAuthorizationForm”andacopyoftheseminarbrochure,etc.

14. Requestsforadvancechecksforlodging,sometuitionchecksetc,shouldalsobemadeon the“TravelAdvanceForm”.Besuretoattachacopyoftheapproved“TravelAuthorization Form”andacopyoftheseminarbrochure,etc.

15. MileageRequestsͲRequestsforreimbursementofmileage(otherthantraining& conferencemileage)shouldbemadeona“MileageReimbursementForm”

16. Avoidcodinginvoicesto“Other”.

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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SECTIONVII:CITYCREDITCARDCHARGES

A. OVERVIEW

TheCityofPismoBeachusesvariousmethodstoprocuregoodsandservices.Tofurtherimprove purchasingoptionsandfacilitatepurchasingeaseforCityemployees,theCityisutilizingcredit cardsissuedbyUSBankthroughtheCalͲCardprogram.TheseguidelinesestablishtheCity’sbasic policiesandproceduresforusingcreditcardsinmakingminorsupplyandservicepurchases,and payingfortravelexpenseswhenonCitybusiness.Whilethispolicyisfairlybroadinscope,these guidelinescannotcovereveryissue,exceptionorcontingencysituationthatmayarise.Asa result,thebasicstandardthatshouldalwaysprevailistousecommonsenseandgoodjudgment intheuseandstewardshipofCityresources.

Theseguidelinesareorganizedintothefollowingsections:
x Policies
x Procedures

B. POLICIES

1. FinancewillissueCitycreditcardstopermanentemployeesasapprovedbythe departmenthead.Departmentheadswillsetcreditcardlimitsupto$5,000.Basedon writtenjustificationbythedepartmenthead,theAdministrativeServicesDirectororher designeemayapprovecreditlimitsinexcessofthisamount.Departmentheadsmayalso set“pertransaction”limitsattheirdiscretion.AuthorizationtousetheCitycreditcardis restrictedtothecardholderordesignatedstaffinthecardholder’srespectivedivisionas authorizedbythecardholder’ssupervisor.Evidenceofpriorapprovalshallbeincludedin thesupportingbackͲupassociatedwiththepurchase.

2. IntheeventthatacreditcardholderneedstomakeaoneͲtimepurchasethatexceeds theircreditlimit,thedepartmentheadmayrequestinwritingtotheAdministrative ServicesDirectororherdesigneetotemporarilyincreasethecreditlimit.Intherequest foratemporaryincrease,justificationfortheincreasewillbeconsidered.

3. Cityissuedcreditcardsshouldneverbeusedtocircumventestablishedcompetitive purchasingprocedures.Thismeansnopurchasesforgoodsorservicesshouldbemadein excessof$10,000thatwouldotherwiserequirecompetitivepurchasingprocedures.Ifa purchaseismadeinexcessof$10,000,theappropriatepurchasingprocedureswillapply. Further,purchaseordersmustbecompletedinadvanceforqualifyingexpensescharged tothecreditcard,andwillnotbeprocessedafterchargeshavebeencompleted.

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4. Cityissuedcreditcardsmaybeusedinpayingfortravelexpenses.However,theCity’s TravelGuidelinesstillapplytoallsuchcreditcardpayments,includingtheuseofTravel Authorizationsandperdiemamounts.

5. CitycreditcardsareforofficialCityofPismoBeachbusinessonly.Nopersonalpurchases maybechargedtothecard.ChargingpersonalexpensesonCitycreditcardsisamisuse ofCityfunds,andaseriousbreachoftheCity’sethicspolicy.Doingso,eveniftheintent istoreimbursetheCitylater,willresultindisciplinaryaction,uptoandincluding terminationandlegalaction.Minorincidentalexpenseasacomponentpartofalarger billing,suchaspersonalcallsonahotelbill,maybeallowedifreimbursedatthetimethe creditcardbillingissubmittedforpayment.

6. IfaCityemployeehasaCityissuedcreditcardtopurchaseitemsfortheCity,theCity creditcardmustbeused.IntheeventthataCitycreditcardisnotusedbyanemployee whohasbeenissuedacardfornonͲtravelrelatedexpenses,thentheCitywillnot reimbursetheemployeeforthoseitems.TheonlyexceptionisforcaseͲbyͲcase emergencypurchasesapprovedbytheDepartmentDirectororCityManager.Not allowingforpersonalcreditcardreimbursementswillhelpavoidfraudulentactivity whereanitemmaybepurchasedonapersonalcreditcard,thenreturnedwithoutthe City’sknowledge.

7. CostcoPurchases:ItemspurchasedfromCostcoshallbepurchasedusingtheCity’sCostco membershipcard.IntheeventthattheCity’sCostcomembershipcardisnotused,the Citywillnotreimbursetheemployeeforthoseitems.

8. NoGiftCards:CityemployeesshallnotpurchaseanygiftcardsforCityemployeesor volunteerswithCityfunds.OnlytheCityManagerandAssistantCityManagermay purchasegiftcardsforthebenefitoftheCitystaffandvolunteersasawhole.
C. PROCEDURES

1. RequestingCreditCards

DepartmentheadsshouldsubmitaCreditCardRequestFormtoAdministrativeServices toapprovecardholdersandsetcreditlimits.Thisrequestshouldbeinwriting,andshould includejustificationfortherequest.

2. Criteria

CreditcardswillonlybeissuedtopermanentfullͲtimeemployees.
a. Departmentheadswillsetcreditlimitsupto$2,500andshouldconsiderthefollowing factorswhenapprovingcreditcardsandsettinglimits: PAGE 39 OF 55
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i. Abilitytoholdtheemployeeaccountableforpurchasesmadeonthecard.
ii. Frequencyandaveragedollarvalueofpurchasesmadebytheemployee.
b.OnceapprovedbytheAdministrativeServicesDepartment,employeeswillsignaCity CreditCardholderUseAgreementwhichsetsforththeirobligationsand understandingsoftheprogramandaUSBankCardholderAcknowledgementof ReceiptwithUSBankresponsibilitiesandacknowledgementofreceiptofthecard.

3.CardRestrictions

Thecreditcardcanbeusedtopurchasesupplies,materials,andequipmentthatdonot exceedthesinglepurchasetransactionlimit.Inaddition,thecreditcardmaybeusedto payforCityrelatedtravelexpenses.THECREDITCARDSHALLNOTBEUSEDFOR THEFOLLOWING:

a. Cashadvances,wiretransfers,moneyorders,etc.

b. PurchasesofitemsforwhichtheCityhascontracts(watermeters,bulkfuel,etc.) unlessitisanemergencysituation,andapprovedbytheApprovingOfficial.
c. Gambling,Betting,Casinogaming,orotherrelatedactivities.
d. Politicalorreligiousorganizations.

e. Courtcosts,fines,bailorbonds.

f. Rentals,exceptforsmallpiecesofequipmenttobeusedforlessthanaweekin duration.

g. Temporaryemployees.

h. Alcoholicbeveragesandtobaccoproducts.

OtherrestrictionsmaybeappliedbyyourDepartmentHead.

4.CreditCardPurchases

EachcardholderisresponsibleforthesecurityandsafeͲkeepingofthecreditcardandis tocompletethefollowingstepswitheachpurchase:

a.Purchasegoodsbyinternet,telephoneorinperson.

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b.Requirethevendortoitemizethereceipt/invoicewiththefollowinginformation:
i. Descriptionofcommoditiespurchased

ii. Quantitypurchased

iii. Priceperitem

iv. Amountofsalestaxandtotalamount

v. Shippingcharges,ifapplicable

**Note:Thecardholdershouldbesuretoobtaintheitemizedreceiptforevery transaction.AccountsPayableisnotauthorizedtopayforitemsthatarenotdetailed onareceipt.Ifacardholderfailstoobtaintheitemizedreceiptforeverypurchase,they maybeheldpersonallyresponsibleforthecharges.

5.StandardProcessforPayment

Afterthetransactioniscomplete,thecardholdershouldforwardtheitemizedreceipt withtheappropriateapprovalstoAccountsPayablethroughtheLaserficheCreditCard Receipttemplate.Themetadatainthetemplateistobecompletedeachtimeacredit cardtransactionismadetoprovideinformationregardingthepurchase.Thecardholder, andapprovingofficialshouldreviewthereceiptforaccuracy,andcodewiththe appropriateaccountnumbertobecharged.AccountsPayablewillaccumulateallreceipts andreconciletothecreditcardstatementattheendofthemonth.

6.MissingReceipts

Theemployeeshouldmakeeveryattempttoobtaindocumentationvalidatingthe transaction.Intheeventareceiptwasnotreceivedfromatransaction,thecardholder willbeheldresponsible.ItisnottheresponsibilityoftheAdministrativeServices Departmenttocontactvendorstoobtainreceipts.Chargesonacreditcardstatement withoutacorrespondingreceiptcannotbepaidbytheCityduetolegalrestrictions. EmployeeswhohavemissingreceiptswillbesubjecttofollowͲupaction,including cancellationofcardprivilegesanddisciplinaryaction.

7.DisputedCharges

Ifanitemisbilledincorrectly,thecardholderisresponsibleforcontactingthevendorwithin 10daysofthetransaction.TheemployeeshouldnotifyAccountsPayable,andshould providealldocumentationrelatingtothechargeinatimelymanner.Accountspayablewill contactthebank,andwillpursuethematteruntilresolved. PAGE 40 OF 55
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8.ReturnedItems

Ifanitemisreturned,thecardholderisresponsibleforcontactingthevendorandrequesting acredittransaction.Thecardholdershouldobtainacreditslip,andnotifyAccountsPayable immediately.

9.LateFees

Missingreceiptsmaydelaypaymentofacreditcardstatement.Theresultcanbeexpensive latefees.Latefeesreceivedduetocardholdernegligencewillbechargedtothecardholder’s department.AcardholderwhocontinuallyaccrueslatefeeswillbesubjecttofollowͲup action,includingcancellationofcardprivilegesanddisciplinaryaction.

10.LostorStolenCards

CardholdersareresponsibleforensuringthattheissuingbankandtheAdministrative ServicesDepartmentarenotifiedimmediatelyifthecardislostorstolen.Failuretodoso mayresultinthecardholderbeingheldresponsibleforfraudulentuseofthecard.

11.DisciplinaryAction

TheDirectorofAdministrativeServicesorauthorizeddesigneewillnotifyDepartment HeadsregardingmisuseofCitycreditcards.DepartmentHeadswillberesponsibleforall disciplinaryactionsurroundingmisuseofcards,orabuseofthispolicy.Thiswillinclude cancellationofcardprivileges,andotheractionasdeemedappropriate.

12.ReturnofCards

Cardholderswillimmediatelysurrendertheircarduponrequestoftheirdepartmenthead. AdministrativeServicesisresponsibleforretrievingthecardpriortoanemployee’s separationfromtheCity.UseoftheCitycreditcardforanypurposeafteritssurrenderis strictlyprohibited.

13.Responsibilities

Belowisasummaryoftheresponsibilitiesmentionedintheseprocedures:
a.Cardholders.Safeguardcreditcardatalltimes.Purchasesuppliesandserviceson behalfofCityinAccordancewiththeseguidelines.

b.DepartmentHeads.Authorizeissuanceofcreditcardsandsetcreditlimits.Develop andimplementdepartmentalprocedurestobesurecreditcardpurchasesare

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approvedandforwardedtoAdministrativeServicesinaccordancewiththeCity’s PurchasingPolicy,andinatimelymanner.Whennecessary,retrievecreditcardsfrom cardholderandenforcedisciplinaryaction.

c.AdministrativeServicesDepartment.Establishaccountrelationshipwithbank.Assist withcardrequestsbynotifyingthebank,andissuecardsasrequestedbydepartment headsinaccordancewiththeseguidelines.Collectreceipts,reconcilecreditcard statementsmonthly,andprocesspaymentsinaccordancewiththeCity’sPurchasing Policyandprocedures.Assistwithbillingdisputesandthereplacementoflostor stolencards.Maintainafileofcreditcardholderuseagreementsandacurrentlisting ofallcreditcards.Collectanddestroycreditcardsreturnedduetocardholdermisuse orseparationbytheemployee.

14.Exceptions

Noexceptionsordeviationsfromthispolicywillbemadewithoutapprovalfromthe AdministrativeServicesDirectorandtheCityManager. PAGE 41 OF 55
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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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SECTIONVIII:PETTYCASHREIMBURSEMENT

ThePettyCashfundisusedtoreimbursepurchasesthatwereoriginallypaidoutͲofͲpocketbya Cityofficialoremployee.

1. PettyCashmaybeusedtoreimburseoradvanceCityexpensesupto$50.00.Themain pettycashdrawerinCityHallismaintainedintheAdministrativeServicesDepartment.

2. TheprocedurestoobtainPettyCashReimbursementareasfollows:
FilloutaPettyCashVoucherFormwithintwoweeksofincurringtheexpense.
Completetheform,includingtheaccountnumbertobecharged,description,date requested,andamount.

Attachareceiptorothersupportingdocumentationshowingtheamountofthecharge. CompleteaMileageReimbursementFormiftherequestisformileagereimbursement. Policiesonmileagereimbursementareoutlinedinthetravelreimbursementsection aboveSectionVI.D.6.

Obtaindivisionmanagerordepartmentdirectorapproval.
SubmitthedocumentstoAdministrativeServicesforreimbursement.
Uponreimbursement,signandreturnthePettyCashVoucherForm.

3. PettyCashAdvances

AnadvanceofpettycashfundsisaPRIVILEGE.Failuretoreconciletheactualexpenses withdocumentedreceipttotheadvancerequestwithin5dayswillresultinrevocationof theprivilegeofreceivingpettycashadvances.

Theprocedurestoobtainapettycashadvanceareasfollows:
FilloutaPettyCashVoucherForm.

Completetheform,checkthe“ADVANCE”box,andlisttheamountrequested,the accountnumbertobecharged,daterequestedandabriefdescriptionoftheproposed useoffunds.Pleasenotethemaximumpettycashadvanceis$50.00.
Obtaindivisionmanagerordepartmentdirectorapproval.

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Returnallunusedcashandsubmitallreceiptsorothersupportingdocumentationwithin 5days.ThePettyCashVoucherformwillbeadjustedtoreflecttheactualexpenditures. PAGE 42 OF 55
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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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SECTIONIX:BUDGETREVISIONS/TRANSFERS

A.WhentoUse

Budgettransferscanbemadewithinthesamefundandwithinthesamedepartmentsubjectto theapprovalrequirementsdiscussedbelow.The"RequestforBudgetTransfer/Revision"formis preparedtodocumentandtoaccomplishthetransfer.Toprocesspurchaseordersandinvoice paymentswithoutdelay,budgettransfersaremadewhen:
x TheamountofaPurchaseOrderRequestbeingpreparedortheamountofaninvoice presentedforpaymentwillcausetheannualbudgettobeexceededandbudgetedfunds areavailableinotheraccountswithinthedivisionordepartment.The"Requestfor BudgetTransfer/Revision"formaccompaniesthe"PurchaseOrderRequest"formoran invoicetobepaid.

x APurchaseOrderisprocessedeventhoughbudgetedfundsarenotavailable.The Requestorofthetransactionshouldtakeactiontocovertheshortfallimmediately.This keepsthegeneralledgeruptodateandletstheindividualmanager,aswellasupper management,knowwheretheirdivisionordepartment,andtheCityasawholestandin relationtotheannualbudget.

x TheMonthlyExpenditureReportreceivedbyeachmanagershowsabudgetshortfall. Eachmanagerisresponsibleforreviewingthereportforaccuracyandtakingcorrective actionasnecessary.Budgetshortagesinindividualcategorieswithinafundandwithina divisionordepartmentcanbecoveredbyusingthe"RequestforBudget Transfer/Revision"formtotransferfromothercategories.
B.ProcessingaRequestforBudgetTransfer/Revision

TheFormsandApprovalstomakeaRequestforBudgetTransfer/Revisionareasfollows:
TheRequestforBudgetTransfer/Revisionformmustincludealltheinformationrequested includingbothaccountnumberanddescription.

Approvalrequirementsdependonwhattypeofaccountsareaffected,whoinitiatestherequest, andtheamountoftherequest.

Bysubmittinga"RequestforBudgetTransfer/Revision"formforgrantormatchingfunds,the DepartmentDirectorisverifyingtotheAdministrativeServicesDepartmentthatappropriate approvalshavebeenreceivedfromtheFundingSource.

Fortransfersbetweenoperatingexpenseaccountswithinthesamefund,thefollowingis required:

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x DivisionManagerinitiatesatransferwithintheirdivisionandtheDepartmentDirector mustapprove
x DepartmentDirectorinitiatesandapprovesatransferbetweendivisionswithinhis/her Department
x CityManagerapprovalisrequired

Fortransfersofcapitalprojectsbetweendepartments,CityManagerandDepartmentDirectors approvalsarerequired.

FortransfersbetweendepartmentsinitiatedbytwoDepartmentDirectors,thefollowingis required:

x CityCouncilapprovalisrequired
x Fortransfersbetweenfunds
x Toappropriatefundsfromtheunreservedfundbalance x TheAdministrativeServicesDepartmentreviewsandapprovesalltransfersafterthe aboveapprovalsareobtained

C.SpecialSituations

TherearespecialsituationsthatrequireconsultationwiththeAdministrativeServicesDirector orhis/herdesigneebeforetherequestisinitiatedandapprovedasoutlinedabove.These include:

x Transfersfromallocatedexpenseaccounts
x Transfersfromsalariesandrelatedbenefitscanonlybedoneafteranalysisby AdministrativeServicesandisbasedonvacancies,currentexpendituresandstaffing projections,
x TransfersfromprogramorprogramͲspecificfundingsources
TheDepartmentDirectorinitiatingtherequestisresponsibleforassuringthatallCouncil approvedprogramsretainadequatefundingtomeetthestatedgoals,andshouldnotauthorize anytransfersthatjeopardizetheprogram.

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DocuSign Envelope ID: 8167DB31-EE63-4AC1-8556-B744215D1EF1

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SECTIONX:TRAVEL&MEALPOLICY

A. PURPOSE

TheCityofPismoBeachacknowledgesthevalueofprofessionalseminars,conferences,training, andmeetingsandrecognizestheneedforCityemployeestotraveloutsidetheCitytoconduct Citybusiness.ItistheintentoftheCitytoprovidetravelandexpensefundsforallreasonable expensesincurredduringsuchtravel.Theseincludetransportation,lodging,registrationfees, meals,andanyotherrelatedexpensesiftheyareforofficialbusinessandfitwithinthispolicy.
Itistheintentionofthisdocumenttoestablishauniformpolicyforauthorizing,monitoring,and documentingtravelbyCitypersonnel.AnyreferencetoemployeesinthispolicyincludesCity personnel.CouncilMembersandAdvisoryBodyMembersarealsoincludedinthispolicy,and arecalledoutseparatelyas“CouncilandAdvisoryBodyMembers”ifthepolicydiffersfromCity employees.

Thepurposeofthispolicyistoalsoprovideawrittenrecordanddocumentedaudittrailoffunds expendedforofficialtravelbyCityemployeesandCouncilandAdvisoryBodyMembersfor insurancepurposesandtoensuretheproperaccountingofallCitypaidtravelexpenses.
B. OVERVIEW

Theseguidelinesareorganizedintothefollowingsections:
x GeneralPolicyStatement
x GeneralTravelGuidelines
x Definitions
x Planninganofficialtrip
x MealAllowances
x SubmittingTravelForms

C. GENERALPOLICYSTATEMENT

ThispolicyistoassurethatCityemployeesandCouncilandAdvisoryBodyMembersadhereto procedureswhenarrangingfortravel,lodging,meals,andotherexpenses,andthatCityemployees arepaidforreasonableexpensesincurredfortravel,conferences,meetings,andmealsasaresult ofconductingauthorizedCitybusiness.ThepolicyassuresthatpaymentsmadebytheCityarefor actualandnecessaryexpensesincurredforCitybusiness.ItalsoassuresthatCityemployeesand CouncilandAdvisoryBodyMemberswillreceiveadvances/reimbursementsinatimelymanner.
EmployeetravelmaybeauthorizedforconductingCitybusinessoflocalandnonͲlocaltravel activitiessuchasprofessionalmeetings,conferencesandtrainingsessions.Paymentsfortraveland meetingexpensesmaybeintheformofeitheradvances,reimbursement,orbyCitycreditcard,

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includingappropriateregistrationfees,food,lodging,transportationcosts,andreasonable incidentalexpenses.

EachDepartmentHeadshallbeheldresponsibleandaccountablefortheinterpretationand administrationofthispolicywithinhis/herdepartment.DepartmentHeadswillbeexpectedto consultwiththeAdministrativeServicesDirectorand/ortheCityManager,ortheirdesignee,onany questionsrelatedtothispolicy.

Allregular,temporary,orcontractemployeesmustreceiveauthorizationinadvancefromtheir supervisor,andthenreceivefinalapprovalfromhis/herDepartmentHeadorhisorherdesigneefor alltravelandconferences.TheDepartmentHeadorhisorherdesigneemayauthorizetherequest subjecttohis/herdiscretionandsubjecttoCityCouncilapprovaloftheannualbudget.TheCity ManagershallauthorizeandapprovereimbursementforDepartmentHeadandCounciltravel.The respectiveDepartmentHeadmanagingtheAdvisoryBodyshallauthorizeandapprove reimbursementforAdvisoryBodyMembers.

D. GENERALTRAVELGUIDELINES

Therearetwokey“goldenrules”torememberaboutmakinganofficialtrip:
x Keepitofficial.
x Keeprecordsofallexpenses.

1. Keepingitofficial.

Iftheemployeetakestimeawayfromofficialbusinessforpersonalmatters,orifthereturn isdelayedaftercompletionoftheevent,expensesincurredforpersonalbusinesswillnotbe reimbursed.Whencombiningbusinessandpersonaltravelinthismanner,DepartmentHead orhisorherdesigneeapprovalisrequired.Ifthisextendedperiodoccursduringregular scheduledworkhours,thetimewillbecountedasvacationorleavewithoutpay.

2. Keepingrecordsforallreimbursableexpenses.

Asdiscussedbelowunder“SubmittingTravelForms”,employeesmustmaintainadetailed recordofallreimbursableexpensesincurredduringhis/hertravel:transportation,lodging, baggagehandling,parkingfees,registrationfees,telephone,andanyotherreasonableand necessaryexpenses.

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E. DEFINITIONS

1. Employee

Forpurposesofthispolicy,employeemeansallregular,partͲtime,temporary,andcontract employeesdesignatedtorepresenttheCityofPismoBeachatanauthorizedmeeting, trainingsession,orconference.

CouncilandAdvisoryBodyMembers

Forpurposesofthispolicy,CouncilandAdvisoryBodyMembersmeansallCouncilmembers, AdvisoryBodyMembers,andCommissionersthatrepresenttheCityofPismoBeachatan authorizedmeeting,trainingsession,orconference.CouncilandAdvisoryBodyMembers arerequiredperAB1234toseekreimbursementformealsuptothemaximumfederalper diemrateforeachcityandstatewherethetraveloccurs.
AB1234containscertainrequirementsandrestrictionsonlocalagencypracticesrelatingto reimbursinglocalelectedandappointedofficials’expenses.AB1234requireslocalagencies to:
x Adoptexpensereimbursementpoliciesthatspecifythekindsofactivitiesthatwillbe reimbursable;
x Identifya“reasonabletime”withinwhichrequestsforreimbursementmustbe submittedinthosepolicies;
x Useexpensereportforms;and
x Requirethatallexpensesmustbedocumentedwithreceipts(thesedocumentsare publicrecordssubjecttodisclosure).

AB1234saysthatsuchareimbursementpolicymayspecifywhatconstitutesreasonable ratesfortravel,meals,lodgingandotherexpenses.Ifalocalpolicydoesnotspecify reimbursementrates,thenthereimbursableratesdefaulttothoseintheInternalRevenue Serviceguidelines.

IfaCouncilandAdvisoryBodyMemberwantstoseekreimbursementforlevelsofexpenses nototherwiseauthorizedundertheagency’sreimbursementpolicy,thentheofficialmay seekpriorapprovalforsuchreimbursementfromtheCityManager(beforeincurringthe expense).

2. Travel

Forthepurposesofthispolicystatement,theword“travel”isusedtodenoteactivitiesof individualsinconnectionwithauthorizedattendanceatconferences,meetings,seminars andtraining,includingnecessarytransportationtheretoandtherefrom.Travelisfurther delineatedaslocalornonͲlocalasdefinedbelow.

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x LocalTravel(NoTravelAuthorizationorTravelExpenseReimbursementFormis needed):Officialtravelperformedwithin100milesfromPismoBeachCityHall,and accomplishedwithinoneday.Exceptionstothe100ͲmileruleincludetrainingNorthof theSanLuisObispoCounty/MontereyCountylineandtraininginSantaBarbaraCounty beyondtheGaviotaPass.

x NonͲLocalTravel(RequiressubmittalofTravelAuthorizationorTravelExpense ReimbursementForm):Officialtravelinvolvingatleastoneovernightabsencefromthe CityofPismoBeachortoalocationover100milesfromCityHall.Exceptionstothe100Ͳ mileruleincludetravelNorthoftheSanLuisObispoCounty/MontereyCountylineand travelinSantaBarbaraCountybeyondtheGaviotaPass.

3. PerDiem:MealsandIncidentalExpense(M&IE)Allowance
Aperdiemmealandincidentalexpense(M&IE)allowanceisanallowancetopayformeal andincidentalexpenseswhiletravelingonbusiness.Itprovidesthemaximumperdiemrate youcanusewithouttreatingpartoftheperdiemallowanceaswagesfortaxpurposes. x Foremployees,theamountofexpensesadvancedorreimbursedunderaperdiem allowancesystemwillbedeemedsubstantiatedwithoutreceipts,providedthe requirementsoftheregulationsaremet.
x ForCouncilandAdvisoryBodyMembers,CouncilandAdvisoryBodyMembersare requiredperAB1234toseekreimbursementformealsuptothemaximumfederalper diemrateforeachcityandstatewherethetraveloccurs.CouncilandAdvisoryBody Membersmustprovidereceiptsinallinstancestosubstantiatetherequestfor reimbursement.

FederalPerDiemRate:Theperdiemamountformealsandincidentalexpensesareprovided bytheU.S.GeneralServicesAdministrationforeachcityandstatewheretheemployee travels.Thetotalamountperdayislistedforeachlocation,andthenisbrokendowninto breakfast,lunch,dinner,andincidentals.Theratescanbefoundat: http://www.gsa.gov/perdiem.

Meals:Expensesformeals,tips,taxes,andfeesforfood.Anemployerisnotrequiredto reducetheM&IEevenifmealsareprovidedinͲkindtotheemployee,iftheemployer reasonablybelievesthattheM&IEwillbeincurred.

IncidentalExpenses:Expensesforluggagehandlingservices,includingfeesandtipsgivento porters,baggagecarriers,bellhops,hotelmaids,stewardsorstewardessesandotherson ships.Incidentalexpensesallowanceisprovidedforovernighttravel.
PerDiemAllowanceRules
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Ifaperdiemallowanceisused,employeesaredeemedtohavesubstantiatedtheamount ofexpensesequaltothelesseroftheFederalperdiemrateortheperdiemallowancepaid bytheemployer.

x TheperdiemmustbeatorlessthanFederalratestobefullyexcludablefromwages fortaxpurposes.
x Noreceiptsarerequiredifaperdiemallowanceisusedforemployees,butthe paymentsmustmeettheothersubstantiationrequirementsincludingdate,time,place, andbusinesspurpose.ForCouncilandAdvisoryBodyMember,receiptsarerequired fortheCitytoreimbursethetraveleruptothefederalperdiemrate. x Anemployer’ssubstantiationrequirementsmust,ataminimum,meettheFederal requirements.Anemployermayhavemorestringentrequirements,suchasrequiring mealand/orlodgingreceipts.
x IfemployeesuseaCitycreditcardforanypurpose,areceiptisrequired.Iftheamount ofthemealislessthantheperdiemM&IE,theemployeemayrequestthedifference ontheTravelExpenseReimbursementForm.Iftheamountofthemealisgreaterthan theperdiemM&IE,theemployeeisresponsibleforreimbursingtheCityforthe difference.

4. InternalRevenueService(IRS)Accountablevs.NonͲAccountablePlan
Anaccountableplanisanallowanceorreimbursementpolicyunderwhichamountsare nontaxabletotherecipientifthefollowingrequirementsaremet:
x Theremustbeabusinessconnectiontotheexpenditure. x Theremustbeadequateaccountingbytherecipientwithinareasonableperiodoftime. x Excessadvancesmustbereturnedwithinareasonableperiodoftime.
Anonaccountableplanisanallowanceorreimbursementprogramorpolicythatdoesnot meetallthreerequirementsforanaccountableplan.Payments,includingadvances, reimbursements,allowances,etc.,madeunderanonaccountableplanaretaxablewages subjecttoallwithholdingwhenpaidorwhenconstructivelyreceivedbyanemployee.The employeesmaybeabletodeducttheseexpensesasitemizeddeductionsontheirindividual taxreturns.

An“AccountableExpenseReimbursementPlan”mustmeetthefollowingrequirements inordertobeconsideredataxͲexemptpaymenttotheemployee.
x Theemployeemustsubstantiatetheexpenseincurred. x Theemployeemustrefundanyadvancesinexcessofsubstantiatedexpenses, excludingtheperdiemM&IEadvance.
x Theexpensemusthaveabusinessconnection.

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Iftheaboverequirementsarenotmet,thepaymenttotheemployeebecomestaxable aswagesandisreportedassuchontheWͲ2.

5. MiscellaneousExpenses

MiscellaneousexpensesarenotconsideredpartofaperdiemM&IEallowanceand, therefore,substantiationisrequiredintheformofareceipt.Miscellaneousexpenses includecabfares,fax,telephone,copycharges,andotherbusinessrelatedexpenses.City fundswillnotbeusedtopurchasealcoholorreimburseemployeesforalcoholrelatedcosts.

6. MileageReimbursement

ReimbursementforpersonalautoexpensewillbeatthepublishedIRSmileage reimbursementrateineffectonthedateoftravel.Mileagereimbursementshallbedeemed tocoverallexpensesincurredofwhateverdescription,includingbutnotlimitedtorequired liabilityinsurance,gasoline,oil,maintenance,andwearandtear.

F. PLANNINGANOFFICIALTRIP

1. MethodofTravel

Transportationcostsinclude,butarenotlimitedto,airplane,train,busandtaxifares, bridgetolls,parkingandcarrental.Youshouldgenerallytakethemostdirectand commonlytraveledroutes.Otherroutesmaybeauthorizedwhenofficialbusiness requirestheiruse.Ifyoutakeanyindirectrouteorstopalongthewayforpersonal reasons,youwillnotbereimbursedfornonͲbusinessexpenses.Selectionofcarrier, reservations,andticketingshouldbearrangedasearlyasfeasibletoobtainthegreatest discount.Alsoconsidertheuseofalternativetransportationmethods,suchasusinga nearbyairportandgroundtransportationifthetotalfaresarelower.
AirTravelonCitybusinessshouldbeeconomyclassandbookedusinganycommonCity methodofpayment.Airtravelshouldnotbeusedintoareasinwhichground transportationisapproximately2Ͳ3hours.Ifyoumakebookingarrangementsandother arrangementswouldhavebeenlesscostlytotheCity,youmayhavetoreimbursethe Citythedifference.Takeadvantageoflowerairfareratesbybookingyourflightasearly aspossible,andpurchasingnonͲrefundabletickets.Youmaysometimesavoidhigher airfarebystayingoveraSaturdaynight.Insomeinstances,anextranightinahotel/motel canbemuchlessthantheaddedcostoftheairfare.

Incertaincircumstancesonlongerflights,inorderfortheCitytoreceivefullvalueonthe compensationbeingpaidtotheemployeewhileflying,a“PremiumEconomy”seating arrangementthatallowsforsufficientspacetousealaptop,thatprovidesanelectrical PAGE 46 OF 55
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outletforchargingamobiledevice,andthatprovidesforadequatespacetootherwise workproductivelywhiletravelingbyair,maybeauthorized.Inordertoassiststaff memberstoworkwhiletravelingbyair,theCityManagerwillconsiderhavingtheCity payfortheadditionalcostforaPremiumEconomyseatingarrangementandpayfor internetaccessontheplane.ThoseeligibleincludemembersoftheCityCouncil, DepartmentHeads,andtheCVBExecutiveDirectorifallofthefollowingconditionsare met:

x FlightisforcitybusinessoutͲofͲstate,exceeding3hoursinduration x FlightisscheduledduringaworkdayfromMondaythroughFridayandCityworkwill actuallybeperformedORflightisscheduledonSaturdayorSundayandtheemployee travelingagreestoperformCityworkduringtheflight x ThePremiumEconomyoptionisapprovedbytheCityManagerinadvance(before travelisbooked)

Forairlineticketsthatrequireanadditionalfeetoforseatassignmentselectionandthe employeedesiresaparticularseat,theCitywillpayforseatassignmentfeeupto$100 fortheentiretrip.AnyexceptionsmustbeapprovedbytheCityManager.
DepartmentHeadsmayconsidertakingdifferentflightsincaseanemergencymayoccur whileinflight.Agenerallyacceptedruleistohavenomorethantwomembersonthe sameflight,ifthereisastrongpossibilityofdangerwhiletraveling.
Cityvehiclesshouldbeusedifoneisavailable.Pleasemakearequestatleastoneweek inadvance.Ifrefuelingisnecessary,youmayrequestreimbursementforanygasoline purchases.Makesuretocheckthevehicleforsafetyanddamagesbeforeyoubeginthe travel.UseofCityVehicleforanytrainingrequiresDepartmentHeadorhisorher designeeapproval.SeeCityVehicleUsagePolicy(ResolutionRͲ2011Ͳ017).
RentalvehiclesatCityexpensemayonlybeobtainedwhenyouareonCitybusinessand othermodesoftransportationarenotavailable,toocostly,orimpractical.Arentalvehicle requirespriorapprovaloftheDepartmentHeadorhisorherdesignee.Onlysmallor intermediatesizevehicles,orvehicleswithanequivalentrentalrate,willbeauthorized. Iftwoormorepersonsareattendingthesamemeetingorconference,andavehicleis neededforCitybusiness,onlyonevehiclemayberentedatCityexpense.Therental shouldbechargedtoaCitycreditcardinordertoavoidtheneedforadditionalcarrental insurancetobepurchasedfromtherentalagency.Asaprecautionagainstpayingfor preexistingdamage,carefullyexaminetheconditionoftherentalvehiclebeforeleaving thelot,andimmediatelyreportanydamagestothecarrentaloffice.
PublicTransit,Carpooling–Youareencouragedtomakeoptimumuseofavailablepublic transitservicesandcarpooling.

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PrivateVehicle–Therearetimesinwhichtheuseofanemployee’spersonalvehicleis preferablebecauseeitheraCityownedpoolvehicleisnotavailableorbecausetheuseof aprivatelyownedvehicleisdeemedmoreefficient.PleaserefertotheCityVehicleUsage Policy(RͲ2011Ͳ017)formoreinformation.Fortravelwithin100milesofthePismoBeach CityHallinaprivatevehicle,filloutaMileageReimbursementForm.
FornonͲlocaltravel,priorapprovalmustbeobtainedbycompletingaTravel Authorizationform.Thetotaldocumentedmileageandallothertravelexpensesincurred cannotexceedtheamountofcarrentalorairfare.TheCityshallonlyreimburseyouthe leastcostlymeansoftravel.Foremployees,theadditionaltimespentdrivingmustalso beconsideredandapprovedbytheDepartmentHeadorhisorherdesigneepriortothe trip.

Whenusingaprivatevehicle,appropriatemileagereimbursementshallbeprocessed.All travelclaimsshouldbesubmittedshowingthetotalmileagefromanInternettravelsite reflectingthestartingandendingpointsatPismoBeachCityHall,regardlessofwherethe actualtravelbegan/ended(i.e.home,anothermeeting,etc.).Reimbursementshallbeat thecurrentrateauthorizedbytheemployeesnegotiatedMOUrateor,ifnoother negotiatedrate,theInternalRevenueServicerate.Realizethatanygas,damages,needed service,orrepairtoyourpersonalvehicleoccurringonthetripwillbeyourresponsibility, asthesecostsareincludedinthepermilecostreimbursement.
Youareentitledtoreimbursementfornecessarytransportationexpensesincurredwhile onofficialCitynonͲlocaltravel.Youshouldscheduleyourtripsothatyouleaveata reasonablehourandarriveatyourdestinationontime.Youshouldalsoreturnpromptly whenyourbusinessisfinished,therebyminimizingthetimeawayfromworkandensuring fullreimbursementofallrelatedexpenses.

2. Compensationfortraveltime

DepartmentHeadsmustconsiderstaffschedulesandwhenauthorizingtravelforCity employees.DepartmentHeadsshalladjustanemployee’straveldatesandtimetoreduce overtimeormakeotherarrangementsintheweeklyworkscheduletoreduceovertime. Overtimeisbasedonthe40hourworkweek,notthe8hourday.Whentraveltime exceedsthenormalworkweek,theCity’srulesforovertimeapplytothoseemployees eligibleforovertime.Indeterminingovertimecompensation,normalcommutetime shouldbedeductedfromthetotaltraveltime.Additionally,normalunpaidmealperiods arenotconsideredworktimewhiletraveling.Overtimeeligibilityappliesequallyto driversandpassengers,andshouldbegrantedwhetherthetraveloccursduringnormal workdaysoronweekendsorevenings.FairLaborStandardsActguidelineswillapply whentravelingbypublictransportation.

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3. Lodging

Lodgingisallowedforattendanceatconferences,seminarsormeetingsthatareinexcess of100milesortwohoursoftraveltimefromPismoBeachCityHall(notfromthe employee’shome).Exceptionstothe100ͲmileruleincludetrainingNorthoftheSanLuis ObispoCounty/MontereyCountylineandtraininginSantaBarbaraorbeyondtheGaviota Pass.Reasonablelodgingexpensewillbepaidatactualcost(includingtaxesandparking) forasmanynightsasnecessary.Theaccommodationsusedshouldbeeconomicalbut practical.Ingeneral,theemployeeshouldselectthemostreasonablepriced accommodationsavailableconsistentwiththepurposeandgoalsofthetravel.Room servicechargesonthehotelbillmustbebusinessrelatedandsubstantiatedwithan itemizedreceipt.

Whenmakinglodgingreservations,besuretoaskifa“governmentrate”isavailable. Somecitiesexempttravelersongovernmentbusinessfromthelocaltransientoccupancy tax(TOT).Thiscanbeashighas12Ͳ15%savingsonlodgingcostsdependingonthelocal TOTrate.Acompleted“CityofPismoBeachGovernmentExemptForm”shouldbegiven totheHotelwhenyoucheckinatthereservationdesk.
ForCouncilandAdvisoryBodyMembers,theCitywillpayforreasonablelodgingexpenses attheactualcostforofficialcitybusinessthatrequiresanovernightstay.The accommodationsusedshouldbeeconomicalbutpractical.Ingeneral,theCounciland AdvisoryBodyMembersshouldselectthemostreasonablepricedaccommodations availableconsistentwiththepurposeandgoalsofthetravel.Ifsuchlodgingisin connectionwithaconference,lodgingexpensesmustnotexceedthegrouprate publishedbytheconferencesponsor.Ifagrouprateisnotavailable,thenthegovernment rateorIRSperdiemrateforlodgingforagivenareaarepresumedreasonableandhence reimbursable.

Ifthelodgingexceedsthegrouprate,governmentrate,andtheIRSperdiemrate,the CityManagercanapprovepriortothetravelonaTravelAuthorizationForm reimbursementtotheCouncilandAdvisoryBodyMemberfortheamountuptotheIRS perdiemlodgingrateonanonͲtaxablebasis,andanyadditionalamountmaybe reimbursedtotheCouncilandAdvisoryBodyMember,butisconsideredtaxableas wagesfortheCouncilandAdvisoryBodyMember.

Roomservicechargesonthehotelbillmustbebusinessrelatedandsubstantiatedwith anitemizedreceipt.

G. MEALALLOWANCES

1. NonͲLocal/OvernightTravelMealallowance:

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a. PerDiemmealsandincidentalexpenses(M&IE)
TheCitywilladvanceandreimburseanemployeebasedonthefederalperdiem ratesformealsandincidentalexpenses(M&IE)fordifferentgeographicalareas. M&IEincludesmeals,tips,taxes,andfeesforfood,andluggageͲhandlingservices. TheperdiemM&IEamountsareprovidedbytheU.S.GeneralServices Administrationforeachcityandstatewheretheemployeetravels.Thetotal amountperdayislistedforeachlocation,andthenisbrokendownintobreakfast, lunch,dinner,andincidentals.Theratescanbefoundat: http://www.gsa.gov/perdiem. TheCitywillreimburseaCounciland AdvisoryBodyMemberbasedonthefederalperdiemratesformealsonthe TravelExpenseReimbursementFormsubstantiatedbyreceipts.
b. UsingaCitycreditcardformeals

IntheeventthatanemployeeusesaCitycreditcardtopurchaseameal,the employeemustsubstantiatetheexpensewithareceipt.Iftheamountofthemeal islessthantheperdiemM&IE,theemployeemayrequestthedifferenceonthe TravelExpenseReimbursementForm.Iftheamountofthemealisgreaterthan theperdiemM&IE,theemployeeisresponsibleforreimbursingtheCityforthe difference.

c. Usingpersonalcashformeals,thenrequestingreimbursement
IntheeventthatanemployeeorCouncilandAdvisoryBodyMemberusestheir ownpersonalcashformeals,thenrequestsreimbursementfromtheCity,the employeeorCouncilandAdvisoryBodyMembermayrequestthePerDiemM&IE rateontheTravelExpenseReimbursementForm,substantiatedbyreceipts.
d. Guidelinesformealallowancesareasfollows:

x UsingthePerDiemM&IEratesprovidesfortheemployeetoeatwhiletraveling onCitybusiness.
x PerDiemM&IEdoesnotincludemealseatenpriortoorafterthetrip.During partialdaysoftravel,perdiemadvancesshallbereducedforsuchitems.During fulldays,perdiemM&IEareprovidedbytheday.Forexample,ifanemployee orCouncilandAdvisoryBodyMemberdoesnoteatbreakfastorlunchand spendsallormostoftheperdiemM&IEforthedayondinner,theemployee canstillreceivethefullperdiemM&IEforthedayandtheCouncilandAdvisory BodyMembercanstillreceiveuptothefullperdiemformealsforthedayif substantiatedbyreceipts.Inthesamescenario,iftheemployeeusestheCity creditcardforthedinnerandthereceiptshowsthattheamountisgreaterthan thedinnerallowance,butstilllessthanthefulldayperdiemM&IE,the employeemaystillreceivethefulldayPerDiemamount. PAGE 48 OF 55
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x Ifrequestingamealreimbursementforaguest,theemployeemustincludethe nameandbusinessrelationshipoftheguesttosubstantiatetheexpense. x PerDiemM&IEreimbursementswillbemadeafterthetripwhensubmittedon theTravelExpenseReimbursementForm.PerDiemformealsreimbursements willbemadeafterthetripwithreceiptswhensubmittedontheTravelExpense ReimbursementForm.
x EmployeesareallowedtoreceivePerDiemM&IEallowanceormeal reimbursementformealsthatconferencesmayalreadyprovideifspecifiedon theTravelforms.
x Advancesoradditionaltravelexpensesover$50shallbemadebycheckonly, notpettycash.

Incalculatingmealallowancesforpartialdays,thefollowingguidelinesshouldbe used:

Departure
x Ifyoudepartafter8:00a.m.,deductthebreakfastallowanceforthatday. x Ifyoudepartafter2:00p.m.,deductthebreakfastandlunchallowanceforthat day.
x Ifyoudepartafter8:00p.m.,deductallmealallowances.
Return
x Ifyoureturnafter6:00p.m.,youmayclaimthefullperdiemmealallowancefor theday.
x Ifyoureturnbetween2:00p.m.and6:00p.m.,youmayclaimthebreakfastand lunchallowances.
x Ifyoureturnbetween8:00a.m.and2:00p.m.,youmayclaimthebreakfast allowance.

2. LocalTravelMealAllowance:
Ingeneral,mealallowanceswillnotbeissuedorreimbursedforLocalTravelor Trainingwhenitoccurswithin100milesfromPismoBeachCityHall,and accomplishedwithinoneday.Exceptionstothe100ͲmileruleincludetravelNorthof theSanLuisObispoCounty/MontereyCountylineandtravelinSantaBarbaraCounty beyondtheGaviotaPass.MealallowancesthatfallunderLocalTravelandTrainingdo notqualifyundertheIRSAccountablePlan.

MealsaretaxableaswagestotheemployeeandincludedontheyearendW2form ifmealsareprovidedtoemployeeforlocaltravelthatdoesnotincludeanovernight stay.DepartmentHeadsmayallowmealrequestsforlocaltravel,keepinginmind thattheselocaltravelmealsareconsideredadditionalincometotheemployeeand arenotpartofanaccountableplan.

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Ontheoccasionthatmealsareprovidedfortravelthatdoesnotincludeanovernight stay,theCitycanissuethePerDiemrateforthelocaltraveldestination,andpayable totheemployeeonly.Ifpaidinadvance,thecheckcanbeissuedintheemployee’s nameonly;orcanbereimbursedafterthetravelintheemployee’snameonly.The mealrequestsarepayabletoemployeeforTaxReportingpurposes.
Exceptionstotaxingmealsaswagesforlocaltravel:
A. Mealsarenottaxableaswagestotheemployeeiftheyareprovided: x Ontheemployer’sbusinesspremises,and
x Fortheemployer’sconvenience.
(SeetheIRSTaxableFringeBenefitGuideforexamples.) Forexample,PublicWorkemployeesmaybeprovidedbreakfastandlunchonJuly 5thinordertoquicklycleanupthebeach(onCitybusinesspremise)sotheywon’t havetostopforalongbreakfastandlunchbreak(fortheemployer’s convenience).

B. TradeorProfessionalAssociationMeetings:AdvancesorReimbursementsfor mealexpensesforemployeesdirectlyrelatedtoandnecessaryforattending businessmeetingsorconventionsofcertainexemptorganizationsareexcludable fromwagesiftheexpensesofyourattendancearerelatedtoyourtradeor business.Theseorganizationsincludechambersofcommerce,businessleagues, andtradeorprofessionalorganizations.Mealswithmeetingsmustbe substantiatedwithareceipt.

C. DirectlyͲRelatedMeals/EntertainmentorAssociatedEntertainment:Mealsare reimbursableorallowanceprovidedtoemployeesformealsinthecourseof entertainingcustomersandarenottaxableif:
(1)itmeetstheDirectlyͲRelatedMealsorEntertainmenttest: themainpurposeofthecombinedbusinessandmealistheactiveconduct ofbusiness,
businessisactuallyconductedduringthemealperiod,and thereismorethanageneralexpectationofderivingincomeorsomeother specificbusinessbenefitatsomefuturetime.
OR
(2)ifitmeetstheAssociatedEntertainmentTest:
associatedwiththeactiveconductoftheemployer’sbusiness,and directlybeforeorafterasubstantialbusinessdiscussion. (SeetheIRSTaxableFringeBenefitGuideforexamples.) Whetherabusinessdiscussionissubstantialdependsonthefactsofeachcase.A businessdiscussionwillnotbeconsideredsubstantialunlessyoucanshowthat youactivelyengagedinthediscussion,meeting,negotiation,orotherbusiness transactiontogetincomeorsomeotherspecificbusinessbenefit.Youmustbe abletoshowthatthebusinessdiscussionwassubstantialinrelationtothemeal. PAGE 49 OF 55
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TheseDirectlyͲRelatedMeals/EntertainmentorAssociatedEntertainmentMeals mustbesubstantiatedwithareceipt.

Mealswithmeetingsorovertimemealsmustbesubstantiatedwithareceipt.
H. SUBMITTINGTRAVELFORMS

1. DetermineMethodofPaymentandtimingofsubmittingforms Therearethreewaystopayfortravelexpenses:“directvendorpayment”,“cash/check advance”,and“employeeorCouncilandAdvisoryBodyMemberreimbursement”.Direct vendorpaymentsaremadebytheCitytoanorganizationtopayforspecificcostsrelated toatrip.Theseareusuallyregistrationfees,lodging,andairfare,andcanbepaidthrough AccountsPayableorthroughtheuseofaCitycreditcard.Cashorcheckadvancesare lumpsumpaymentsmadetotheemployeepriortotheeventtocoverexpensesasthey ariseonthetrip.ThethirdmethodofemployeeorCouncilandAdvisoryBodyMember reimbursementoccurswhentheemployeeorCouncilandAdvisoryBodyMemberelects topayforsomeoralltravelrelatedexpensesfirst,andisreimburseduponcompletionof thetravel.

Toobtaineitherdirectvendorpaymentsoracash/checkadvance,theemployeemust completeaTravelAdvanceformandaTravelAuthorizationformandattachacopyofthe flyerorbrochureannouncingtheevent,aswellasanyotherappropriatesupporting documentation.TravelAuthorizationFormsandTravelAdvanceFormsshouldbe submittedtotheAdministrativeServicesDepartmentatleasttwoweekspriortotravel.
Uponreturnfromtheevent,theemployeeandCouncilandAdvisoryBodyMembermust accountforallexpensesincurredandreturnanyunusedportionoftheadvancewithinten (10)days(excludingtheperdiemMI&Eallowanceforemployees),alongwiththe completedTravelExpenseReimbursementForm.Theemployeewillbereimbursedthe differenceiftheactual,authorizedexpensesincurredexceedtheamountadvanced, excludingtheperdiemMI&Eallowance.

2. TravelForms
TherearetwoformsthatneedtobecompletedwhenplanningtravelforDepartment employeesandCouncilandAdvisoryBodyMembers:a)TravelAuthorizationForm;andb) TravelExpenseReimbursementForm.AnadditionalformisneededforTravelAdvances.This formshouldbecompletedwhenanadvancefortravelisneeded.Theformiscalledc)Travel AdvanceForm.Forlocaltravelwithin100milesofthePismoBeachCityHallinapersonal vehicle,filloutad)MileageReimbursementForm.

a) TravelAuthorizationForm
TheTravelAuthorizationmustbesubmittedfirst.Itincludesthetotalexpense information,therequiredapprovalsignatures,andwillbreakdownwhatwillbepaid

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bycheck,creditcard,advance,etc.Ifthereareprepaymentsoradvancestobe processed,pleaseattachaTravelAdvanceform.OutofstatetravelforDepartment HeadsandCouncilandAdvisoryBodyMembersshallbeapprovedbytheCity Manager.

b) TravelExpenseReimbursementform
TheTravelExpenseReimbursementformitemizesallexpensesassociatedwiththe eventandisapprovedbytheDepartmentHeadorhisorherdesignee.Thisformmust besubmittedtotheAdministrativeServicesDepartmentnolaterthanten(10)days followingtheevent,butinnoeventgreaterthanthirty(30)daysfollowingthe completionoftheactivity.
x IfthisformisnotsubmittedtotheAdministrativeServicesDepartmentwithin30 days,nofutureadvancesorprepaymentswillbeprocessedfortheemployee,per Resolution(RͲ2009Ͳ022).
x Iftheformisnotreceivedwithin30daysfollowingthecompletionoftheactivity, theemployeeorCouncilandAdvisoryBodyMemberwillnotreceive reimbursementforexpensesassociatedwiththeevent.Anyexceptionsmustbe approvedbytheCityManager.Atthatpoint,theamountofthetraveladvance willbecometaxableandreportedontheemployee’sWͲ2.
PleaseattachallofthereceiptstotheTravelExpenseReimbursementForm.The expensesaretobebrokendownbyday.Intheeventthatthepersontravelingdoes notuseallthemoneytheywereadvancedforthetrip(excludingperdiem M&IE),theyarerequiredtoreturntheunusedportiontotheCitypriortothe submissionoftheTravelExpenseReimbursementform.Attachacopyofthereceipt totheform.Keepinmindthatemployeesareallowedthefederalperdiemrateper dayforthegeographicareaformealswhileCouncilandAdvisoryBodyMembersare alloweduptothefederalperdiemrateperdayforthegeographicareaformealsif substantiatedbyreceiptsforthosemeals.Ifmorethanfederalperdiemrateper dayisspenttheemployeeorCouncilandAdvisoryBodyMemberwillnotbe reimbursedfortheoverage.PleasesubmittheTravelExpenseReimbursement FormwithacopyoftheapprovedTravelAuthorizationform.
c) TravelAdvanceForm
TheTravelAdvanceFormsummarizestheexpensesyouwouldlikeprepaidin advanceͲsuchasthehotel,theeventregistrationfee,etc.Thisformalsosummarizes anyadvancestotheemployeetobemadeͲsuchasperdiemformealsandmileage reimbursementiftheyareusingapersonalcar.Pleaserefertothefederalperdiem mealsandincidentalsratesforthegeographicareaoftravelat: http://www.gsa.gov/perdiem. Pleasenotetherequireddocumentationtobe submittedwiththisform,suchasaneventbrochureoradvertisementlistingthe registrationfeesoreventcost,Google/maps,orsimilardocumentationincludingoneͲ waymileagefromCityHalltothedestinationaddress,andhotelconfirmation PAGE 50 OF 55
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documentsfromweborfax.TravelAdvanceformsmustbesubmittedwithin10 workingdayspriortoacheckbeingissued.

d) MileageReimbursementForm
TheMileageReimbursementFormisforlocaltravelwithin100milesofthePismoBeach CityHallinaprivatevehicle.ThestartingpointisPismoBeachCityHall.Turntheformin andGoogle/mapsinformationtotheAdministrativeServicesDepartmentwithintwo(2) weeksofincurringexpense,ormonthlyonthelastFridayoftheMonth.
FornonͲlocaltravel,priorapprovalmustbeobtainedbycompletingaTravel AuthorizationformandultimatelyprovidedontheTravelExpenseReimbursement Form.Thetotaldocumentedmileageandallothertravelexpensesincurredcannot exceedtheamountofcarrentalorairfare.

3. LostorNoreceipts
IfanemployeeorCouncilandAdvisoryBodyMemberhaslostareceiptforatravelͲ relateditemornoreceiptisprovided,amemoisrequired.Thememomustinclude thefollowing:
x Explainthecircumstancesindetail,suchastime,activity,andreasonforlosingthe receiptorreasonthatreceiptwasnotprovided.
x Includeallreceiptinformationsuchasplaceofbusiness,amount,date, descriptionofitem.
x TheemployeeorCouncilandAdvisoryBodyMembermustsignit. x TheDepartmentHeadorhisorherdesignee,ortheCityManagerforCounciland AdvisoryBodyMember,mustsignit.

4. DepartmentHeadApproval
DepartmentheadsapprovingTravelExpenseReimbursementformsareresponsible forensuringthat:
x Allexpensesarereasonable,necessary,andconsistentwiththeseguidelines. x Requiredreceiptsareattached.
x Thefinaldispositioniscorrect(e.g.balancedueemployee;balancedueCity). x AnyamountsduetotheCityarereimbursed.
x FinalaccountingofallexpensesissubmittedtotheAdministrativeServices Department.

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SECTIONXI:FRAUDPREVENTIONANDREPORTINGPOLICY

A. PURPOSE

TheCityofPismoBeachiscommittedtoprotectingtaxpayerdollarsandassetsfromfraud andrecoveringlossesasaresultoffraudulentactivities.TheFraudPreventionand ReportingPolicyisestablishedtofacilitatethedevelopmentofcontrolswhichwillaidin thepreventionanddetectionoffraudagainsttheCity.ThePolicyempowersthe AdministrativeServicesDirectortoconductinvestigationsandreportfindingstotheCity Manager.

Thispolicysetsoutspecificguidelinesandresponsibilitiesregardingappropriateactions thatmustbefollowedfortheinvestigationoffraudandothersimilarirregularities.
B. APPLICABILITY

ThispolicyappliestoallElectedOfficials,AdvisoryBodymembers,andemployeesofthe CityofPismoBeachaswellasanybusinessorindividualdoingbusinesswiththeCity.
C. GENERALPOLICYANDRESPONSIBILITY

1. ItistheCity’sintenttofullyinvestigateanysuspectedactsoffraudorothersimilar irregularity.Asusedinthispolicy,“fraud”meansanintentionalmisrepresentation, deceit,orconcealmentofamaterialfactknowntothepersonaccusedofthefraud, withtheintentiononthepartofthatpersonoftherebydeprivinganotherpersonor theCityofproperty,legalrightsorotherwisecausinginjury.

2. Anobjectiveandimpartialinvestigationwillbeconductedregardlessoftheposition, title,lengthofservice,orrelationshipwiththeCityofanypartywhomightbe,becomes involvedin,oristhesubjectof,suchinvestigation.

3. EachDepartmentDirector,andManagerisresponsibleforinstitutingandmaintaining asystemofinternalcontrolstoprovidereasonableassuranceforthepreventionand detectionoffraud,misappropriationsandotherirregularities.Managementshouldbe familiarwiththetypesofimproprietiesthatmightoccurwithintheirareaof responsibilityandbealertforanyindicationsofsuchconduct.

4. TheAdministrativeServicesDirectorhastheprimaryresponsibilityfortheinvestigation ofallactivitydefinedinthispolicy.

5. TheAdministrativeServicesDirectorwillnotifytheCityManagerandotherpertinent DepartmentDirectors,includingtheAssistantCityManagerandPoliceChief,as needed,ofareportedallegationoffraudulentorirregularconductuponthe PAGE 51 OF 55
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commencementoftheinvestigationtotheextentpractical.Throughoutthe investigationtheCityManagerwillbeinformedofpertinentinvestigativefindings.

6. Inallcircumstanceswheretherearereasonablegroundstoindicatethatafraudmay haveoccurred,theAdministrativeServicesDirector,subjecttotheadviceoftheCity Attorney,willcontacttheCityPoliceDepartment.

7. Uponconclusionoftheinvestigation,theresultswillbereportedtothemembersof theCityCouncil,theCityAttorney,andothersasdeterminednecessary.

8. TheCityAttorneywillpursueeveryreasonableeffort,includingcourtͲordered restitution,toobtainrecoveryoftheCity’slossesfromtheoffender,orother appropriatesource.

D. PROCEDURES

1. AllEmployees

Anyemployeewhohasknowledgeofanoccurrenceofirregularconduct,orhasreasonto suspectthatafraudhasoccurred,shallimmediatelynotifytheirsupervisor.Ifthe employeehasreasontobelievethattheirsupervisormaybeinvolvedordoesnotfeel comfortablereportingtheoccurrencetotheirsupervisor,theemployeeshallimmediately notifytheAdministrativeServicesDirector(ortheCityManageriftheAdministrative ServicesDirectorisnotavailable).

Employeeshaveadutytocooperateduringaninvestigation. Employeeswhoknowinglymakefalseallegationswillbesubjecttodisciplinein accordancewiththeCity’sPersonnelRulesandRegulations.

2. CityManagement

Uponnotificationfromanemployeeofasuspectedfraud,orifmanagementhasreason tosuspectthatafraudhasoccurred,theyshallimmediatelynotifytheAdministrative ServicesDirector.

3. AdministrativeServicesDirector

Uponnotificationordiscoveryofasuspectedfraud,theAdministrativeServicesDirector willpromptlyinvestigatethesuspectedfraud.Inallcircumstances,wherethereare reasonablegroundstoindicatethatafraudmayhaveoccurred,theAdministrativeServices DirectorwillinformtheCityAttorney.SubjecttotheadviceoftheCityAttorney,the AdministrativeServicesDirectorwillcontacttheCityPoliceDepartment.

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4. Contacts/Protocols

Afteraninitialreviewandadeterminationthatthesuspectedfraudwarrantsadditional investigation,theAdministrativeServicesDirectorwillnotifytheCityManager.The AdministrativeServicesDirectorwillcoordinatetheinvestigationwiththeCityAttorney andappropriatelawenforcementofficials.

5. SecurityofEvidence

Onceasuspectedfraudisreported,theAdministrativeServicesDirector,inconsultation withtheCityAttorney,shalltakeimmediateactiontopreventthetheft,alteration,or destructionofrelevantrecords.Suchactionsinclude,butarenotnecessarilylimitedto, removingtherecordsandplacingtheminasecurelocation,limitingaccesstothelocation wheretherecordscurrentlyexist,andpreventingtheindividualsuspectedofcommitting thefraudfromhavingaccesstotherecords.Therecordsmustbeadequatelysecureduntil theAdministrativeServicesDirectorobtainstherecordstobegintheauditinvestigation.

6. PersonnelActions

Ifasuspicionoffraudissubstantiatedbytheinvestigation,disciplinaryaction,in accordancewiththeCity’sPersonnelRulesandRegulations,maybetakenbytheCity Manager,inconsultationwiththeAssistantCityManager,theAdministrativeServices Director,andtheCityAttorney.

7. TheCityorapersonactingonbehalfoftheCityshallnotdoanyofthefollowingbecause anemployeehasreportedfraudinaccordancewiththerequirementsofthispolicy:
o Dismissorthreatentodismissanemployee

o Disciplineorsuspend,orthreatentodisciplineorsuspend,anemployee
o Imposeanypenaltyuponanemployee;or

o Intimidateorcoerceanemployee.

Theviolationofthissectionmayresultindisciplineuptoandincludingdismissalin accordancewiththeCity’sPersonnelRulesandRegulations.

8. MediaIssues

AnyCityemployeeorelectedorappointedofficialcontactedbythemediawithrespectto anauditinvestigationshallreferthemediatotheCityManager.Theallegedfraudoraudit investigationshallnotbediscussedwiththemediabyanypersonotherthanthroughthe PAGE 52 OF 55
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CityManagerorhisorherdesignee,inconsultationwiththeAdministrativeServices Director.

IftheAdministrativeServicesDirectoriscontactedbythemediaregardinganallegedfraud orauditinvestigation,theywillconsulttheCityManager,beforerespondingtoamedia request.

NeithertheAdministrativeServicesDirectornortheCityManagerorAssistantCity Managerwilldiscussthedetailsofanyongoingfraudinvestigationwiththemediainany mannerthatmaycompromisetheintegrityoftheinvestigation.

9. Documentation

Attheconclusionoftheinvestigation,theresultswillbereportedtotheCityManager,the CityAttorney,andothersasdeterminednecessary.Ifthereportconcludesthatthe allegationsarefounded,thereportwillbeforwardedtotheCityPoliceDepartment.

10. CompletionoftheInvestigation

Uponcompletionoftheinvestigation,includingalllegalandpersonnelactions,anyrecords, documentsandotherevidentiarymaterialwillbereturnedbytheAdministrativeServices Directortotheappropriatedepartment.

11. ReportingtoExternalAuditors

TheAdministrativeServicesDirectorwillreporttotheexternalauditorsoftheCityall informationrelatingtoinvestigations.

12. Training

NewemployeesaretrainedatthetimeofhiringabouttheCity’sCodeofConductandFraud PreventionandReportingPolicy.Thistrainingexplicitlycoversexpectationsofall employeesregarding:

a) Theirdutytocommunicatecertainmatters;
b) Alistofthetypesofmatters,includingactualorsuspectedfraud,tobe communicatedalongwithspecificexamples;and
c) Informationonhowtocommunicatethosematters.

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SECTIONXII:COUNCILMEMBERREIMBURSEMENTPOLICY

A. PURPOSE

Thepurposeofthispolicyistoestablishmaximumreimbursementamountsforcertaintypesof legitimateexpensesincurredbyCityCouncilMembersintheperformanceoftheirofficialduties; andrequirethesubstantiationoftheseexpensesintheformofareceiptorotheracceptable proofpriortoreimbursement,inaccordancewithAB1234.Thissectionshallapplyonlyto reimbursementofexpensesnotrelatedtotravel;reimbursementsoftravelͲrelatedexpenses shallberegulatedbySectionXofthisPurchasingPolicy.
B. DEFINITIONS

“Officialduties”shallmeananyandallactionsundertakenbytheCouncilMemberthatare necessaryordesirableforthefulfillmentofthedutiesassignedtotheofficialbystatelaw,City law,Citypolicy,orcustom,andgenerallyinkeepingwiththeoffice’spurviewandorganizational norms,andperformedforthebenefitofthepublic.“Officialduties”shallnotincludeduties performedinthecourseoffulfillingexternalcommitteeassignmentsforthirdͲparty organizationsofferingastipendforsaidassignment.

“TravelͲrelated”shallmeananyexpenseoractivitythatiscontemplatedbySectionX:Traveland MealPolicyofthisPurchasingPolicy.

C. COUNCILMEMBERREIMBURSEMENTPOLICY

1. CouncilMembersshallbeeligibleforreimbursementforthefollowingtypesofexpenses, andinthefollowingamounts:

a. Miscellaneousexpenses:Amaximumof$95permonthforotheractualandnecessary expensesrelatingtotheperformanceofofficialduties.Eligibleexpensesshallinclude, butnotbenecessarilylimitedto:

i. Mileageforvehicletripstakenintheofficial’spersonallyownedorrentedvehicle thatarenottravelͲrelated,exceptthatanyofficialwhohasexecutedan agreementwiththeCityforthepaymentofacarallowanceshallnotbeeligible forvehicleexpensereimbursementrelatingtotheirownedorrentedvehicles exceptasotherwiseprovidedintheagreement;
ii. ParkingexpensesthatarenottravelͲrelated;
iii. MealexpensesthatarenottravelͲrelated;
iv. Officesuppliessuchaspens,pencils,orpaperandinkforahomeprinter; v. Otheractualandnecessaryexpensesrelatingtotheperformanceofofficialduties notlistedabove,subjecttoapprovaloftheAdministrativeServicesDirector.
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b. Ineligibleexpenses:Notwithstandinganyoftheaboveprovisions,expense reimbursementshallnotbemadeforcostsincurredinthepurchase,consumption,or provisionofalcohol,orexpensesincurredinthecourseofanyactivitythatis otherwiseinconflictwithCitypolicies,orunlawfulfortheofficialinquestion.Phone andinternetexpensesareineligibleforreimbursement.

2. Allrequestsforreimbursementshallbeaccompaniedbyanexpensereportformas describedinsubsectionD.below.

3. Allrequestsforreimbursementshallbeaccompaniedbyareceiptorotheracceptable documentationsubstantiatingtheamountoftheexpense,alongwithotherdetails,as describedinsubsectionD.below.

4. Allsuchrecordsofexpensesandrelatedreimbursementrequestsshallbepublic, notwithstandinganyinformationthatisexemptfromreleaseundertheCaliforniaPublic RecordsActorotherapplicablestatute.

D. SUBMITTINGEXPENSEREIMBURSEMENTFORMS

1. Arequestforreimbursementshallbesubmittedwithinten(10)daysafterthedatethe expenseisincurred/aftertheendofthemonth.Iftheformisnotreceivedwithinthirty (30)daysfollowingtheincurringoftheexpense/endofthemonth,theCouncilwillnot receivereimbursementforexpensesassociatedwiththeexpense.Anyexceptionsmust beapprovedbytheCityManager.

2. ArequestforreimbursementshallbemadeintheformofaMileageReimbursement Formformileagereimbursements,andaCheckRequestFormforallothereligible expenses.Relevantreceiptsorotheracceptabledocumentationshallbeattachedtothe MileageReimbursementandCheckRequestForm
a. MileageReimbursementForm:

TheMileageReimbursementFormisforlocaltravelwithin100milesofthePismo BeachCityHallinaprivatevehicle.Thestartingpointforpurposesofmileage calculationsisPismoBeachCityHallregardlessoftheactualdeparturepoint.AGoogle maporsimilarmapsubstantiatingthedistancetravelledshallaccompanythemileage reimbursementforminlieuofareceipt.

b. CheckRequestForm

3. Intheeventtheexpenseevidencedbythecumulativereceiptsforexpensesoccurringin onecalendarmonthisgreaterthanthemaximumallowance,theCouncilMemberwillbe reimbursedonlythemaximumamount.

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4. LostorNoreceipts:IfaCouncilMemberhaslostareceiptforareimbursableexpenseor noreceiptisprovided,amemoisrequired.Thememomustincludethefollowing: x Explainthecircumstancesindetail,suchastime,activity,andreasonforlosingthe receiptorreasonthatreceiptwasnotprovided.
x Includeallreceiptinformationsuchasplaceofbusiness,amount,date,description ofitem.
x TheCouncilMembermustsignit.
x TheCityManagerordesigneemustsignit.

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AppendixA:LISTOFFORMS

AllFormsrelatedtothisPurchasingPolicyarelocatedinthefollowinglocations: byclickingonthehyperlinksbelow,availableinLaserficheForms,orinS:\Purchasing Policy\PurchasingForms.
Thefollowingisalistofallformslistedinthisdocument:

1. LocalBusinessPreferenceOptionForm

2. SignatureAuthorization

3. IRSformWͲ9

4. PurchaseOrderRequest–LaserficheForms

5. PettyCashVoucherFormͲSharePoint

6. TravelForms
a. TravelFormforCityEmployeesͲSharePoint(includesTravelAuthorization,Travel Advance,andTravelExpenseReimbursementforms)
b. TravelFormsforCityEmployeesExampleͲSharePoint c. TravelFormforCouncilMembersandAdvisoryBoardMembersͲSharePoint (includesTravelAuthorization,TravelAdvance,andTravelExpenseReimbursement forms)
d. TravelFormsforCouncilMembersandAdvisoryBoardMembersExampleͲ SharePoint
e. MileageReimbursementFormͲSharePoint

7. CreditCardFormsͲSharePoint
f. CreditCardRequestForm
g. CreditCardholderUseAgreement

8. PublicProjectTrackingSheet

9. RequestforBudgetTransfer/Revision–LaserficheForms

10. CheckRequestFormͲSharePoint

11. CityofPismoBeachGovernmentExemptform

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Pismo Beach City CouncilMarch 5, 2024

Pismo Beach City Council
March 5, 2024