Agenda packet — Mayor and City Council, February 1, 2023 (part 1 of 4)

Mayor and City Council of the City of San Bernardino Page 1

CITY OF SAN BERNARDINO
AGENDA

FOR THE

REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO,

MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR

AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT

AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE

HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO

ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, FEBRUARY 01, 2023
5:30 PM CLOSED SESSION 7:00 PM OPEN SESSION
FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG

Theodore Sanchez Helen Tran

Damon L. Alexander
COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7
MAYOR
Sandra Ibarra Charles E. McNeely
COUNCIL MEMBER, WARD 2 INTERIM CITY MANAGER
Juan Figueroa

Sonia Carvalho
COUNCIL MEMBER, WARD 3 CITY ATTORNEY
Fred Shorett

Genoveva Rocha
MAYOR PRO TEM, WARD 4 CITY CLERK
Ben Reynoso

COUNCIL MEMBER, WARD 5
Kimberly Calvin

COUNCIL MEMBER, WARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.

• PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC
COMMENT OPTIONS, OR CLICK ON THE FOLLOWING LINK:
tinyurl.com/mccpubliccomments
• Please contact the City Clerk's Office (909) 3845002 two working days prior to the meeting for any requests for reasonable accommodation, to include interpreters.

• To view PowerPoint presentations, written comments, or any revised documents for this meeting date, use this link: tinyurl.com/agendabackup.

Select the corresponding year and meeting date folders to view documents.

Mayor and City Council of the City of San Bernardino Page 2

CALL TO ORDER

Attendee Name
Council Member, Ward 1 Theodore Sanchez
Council Member, Ward 2 Sandra Ibarra
Council Member, Ward 3 Juan Figueroa
Mayor ProTem, Ward 4 Fred Shorett
Council Member, Ward 5 Ben Reynoso
Council Member, Ward 6 Kimberly Calvin
Council Member, Ward 7 Damon L Alexander
Mayor Helen Tran
Interim City Manager Charles E. McNeely
City Attorney Sonia Carvalho
City Clerk Genoveva Rocha

5:30 P.M.

CLOSED SESSION PUBLIC COMMENT

CLOSED SESSION P.10
A) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i. F.D. a minor, individually, by and through his Guardian ad Litem, Francisco Diaz v. City of San Bernardino, et al. United States District Court Case No. 5:21CV01580JGBKK ii. Juddit Rodriguez, an individual v. City of San Bernardino, et al., United States District Court Case No. 5:21cv01528JGBSHK
B) CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government Code Section 54956.9(d)(2)): One Item.

C) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): One Item

7:00 P.M.

INVOCATION AND PLEDGE OF ALLEGIANCE

CLOSED SESSION REPORT

PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA

CITY MANAGER UPDATE

MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS Mayor and City Council of the City of San Bernardino Page 3

CONSENT CALENDAR

1. Amendment No. 3 to Professional Services Agreement with Advanced Pet Care (All Wards) P.11
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Advanced Pet Care, and increase the annual contract amount to $250,000.

2. Agreement with Horizons Construction Company International, Inc., for Asphalt Maintenance and Street Segment Repair Services (All Wards) P. 35 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager, or designee to execute a Maintenance Services Agreement with Horizons Construction Company International Inc., for asphalt maintenance and street segment repair services; and

2. Adopt Resolution No. 2023021 authorizing the Agency Director of Administrative Services to amend the FY 2022/23 General Fund Operating Budget in the amount of $450,000; and Authorize the Agency Director of Administrative Services to issue a purchase order in the amount not to exceed $450,000.

3. Approval of Commercial and Payroll Disbursements (All Wards) P. 104 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for October to December 2022.

4. Adopt Ordinance No. MC1605 amending Section 3.04 of the Municipal Code (All Wards) P. 240
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt Ordinance No. MC1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California.

5. Technical Correction to Fiscal Year 2022/23 1st Quarter Report (All Wards) P. 285 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Adopt Resolution No. 2023022 of the Mayor and City Council of the City of San Bernardino, California, approving the increase to the salary ranges for Forensics Specialist II and Community Service Officer.

2. Approve the amendment of the citywide salary schedule for fulltime, parttime, temporary, and seasonal positions.

6. Memorandum of Understanding between the City of San Bernardino and the San Bernardino Police Management Association (All Wards) P. 333 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Police Management Association (SBPMA).

Mayor and City Council of the City of San Bernardino Page 4

7. Agreement with the County of San Bernardino for access to the Sheriff’s Department Automated Systems P. 366
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize the City Manager or designee to execute a 5Year agreement between the City of San Bernardino, California and the County of San Bernardino, California for access to the Sheriff’s Department Automated Sys
tems.

8. Construction Agreement Award – Roof Replacement at Perris Hill Senior Center (Ward 2) P. 377
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve the awarding of a Construction Agreement with Pacific Builders & Roofing, Inc., dba WSP Roofing, in the amount of $176,900 for the construction of Roof Replacement at Perris Hill Senior Center ("Project"); and

2. Authorize the project construction, c onstruction contingencies , and engineering and inspection costs in the total amount of $205,000 for construction of the Project; and

3. Authorizing the City Manager or designee, to execute all documents with Pacific Builders & Roofing, Inc. dba WSP Roofing; and

4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

9. Amendment No. 1 to Cooperative Agreement with County of San Bernardino for Arrowhead Farm Area Street Rehabilitation (Ward 4) P. 397 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023023:

1. Approving Amendment No. 1 to the Cooperative Funding Agreement with the County of San Bernardino for Arrowhead Farm Area Street Rehabilitation; and

2. Authorizing the Agency Director of Administrative Services to amend the FY 2022/24 Capital Improv ement Plan, recording a supplemental appropriation in the amount of $425,000 in Measure S Fund, for a total project cost of $915,000: and

3. Authorizing the City Manager or designee to execute Amendment No. 1 to Cooperativ e Funding Agreement 20946.

10. Establish a “No Parking Anytime” Parking Restriction on both sides of the Median Island along Windsor Drive between Gilbert Street and Baseline Street (Ward 2) P. 418 Recommendation:

Adopt Resolution No. 2023024 of the Mayor and City Council of the City of San Bernardino, California, amending Resolution No. 3985 entitled, in part, “A Resolution Prohibiting Parking Upon Certain Designated Streets, Alleys or Portions Thereof...” to establish a “No Parking Anytime” zone on both sides of the median island along Windsor Driv e between Gilbert Street and Baseline Street.

11. Adoption of Ordinance No. MC1608 (Annexation 28) (W ard 5) P.427 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC1608 amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20222023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, park s and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services).

Mayor and City Council of the City of San Bernardino Page 5

12. Adoption of Ordinance No. MC1610 (Annexation 30)(Ward 5) P.437 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC1610 amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20222023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Fa cilities District No. 20191 (Maintenance Services).

13. Adoption of Ordinance No. MC1611 (Annexation 32) (Ward 6) P.447 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC1611 amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20222023 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services).

14. Irrevocable Agreement to Annex No. 2023372 (Ward 6) P.457 Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California adopt Resolution No. 2023025 of the Mayor and City Council of the City of San Bernardino, California, approving the application to the Local Agency Formation Commission to provide City sewer services to property located within the unincorporated territory at 3835 June Street, San Bernardino, California; and authorizing the City Manager to execute an Irrevocable Agreement to Annex.

15. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 20191 (Maintenance Services): Annexation No. 33, Tax Zone No. 34 (GWS #7) (Ward 3) P.473
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023026 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 20191 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 33) and authorizing the levy of a special taxes therein.

16. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 20191 (Maintenance Services): Annexation No. 34, Tax Zone No. 35 (Clean Energy Fuel) (Ward 3) P.515
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023027 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 20191 (Maintenance Services) of t he City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 34) and authorizing the levy of a special taxes therein.

Mayor and City Council of the City of San Bernardino Page 6

17. Amendment No. 7 to Cooperative Agreement 04040 with San Bernardino County Transportation Authority (SBCTA) for the San Bernardino Metrolink Station and Santa Fe Depot P.557
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve the Amendment No. 7 to Cooperative Agreement 04040 with San Bernardino County Transportation Authority (SBCTA) for the San Bernardino Metrolink Station and Santa Fe Depot; and

2.Authorize the City Manager to execute the amendment to the agreement.

DISCUSSION

18. Homelessness State of Emergency Declaration (All Wards) P.648 Recommendation:

It is Recommended that the Mayor and City Council of the City of San Bernardino:

1. Adopt Resolution No. 2023028 declaring a Homelessness State of Emergency; and

2. Direct the City Ma nager or his designee the ability to take certain administrative actions to streamline the provision of shelter to people experiencing homelessness; and

3. Provide direction to Staff whether or not to prepare an ordinance (1) adopting California Residential Code Appendix X and California Building Code Appendix O and/or (2) making amendments to the San Bernardino Municipal Code for its consideration.

ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS

19. Increase lighting at parks citywide (All Wards) – Council Member Reynoso P.662

20. Consider repeal of Resolution 2020265. Issue written notice directing the Planning Commission, in accordance with Government Code 65853, to render within 40 days its report on crushing restrictions of unfinished materials within 1,000 feet of residentiallyzoned property (All Wards) – Council Member Sanchez P.663

ADJOURNMENT
The next joint regular meeting of the Mayor and City Council and the Mayor and City Counci l Acting as the Successor Agency to the Redevelopment Agency will be held on February 15, 2023, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m.

CERTIFICATION OF POSTING AGENDA

I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the February 1, 2023 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, January 27, 2023.

/s/Genoveva Rocha
I declare under the penalty of perjury that the foregoing is true and correct.

Mayor and City Council of the City of San Bernardino Page 7

NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized.

Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public.

Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made.

The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shal l be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code.

Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed.

Mayor and City Council of the City of San Bernardino Page 8

PUBLIC COMMENT OPTIONS

Please use ONE of the following options to provide a public comment:

1) Written comments can be emailed to [email protected]. Written public comments received up to 4:00 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. They will not be read aloud unless you require an ADA accommodation.

Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 9093845002 or [email protected] for assistance outside of this timeframe.

2) Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cutoff time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit yo ur request to speak using the form on the following page:tinyurl.com/mccpubliccomments.

3) REMOTE PARTICIPATION VIA ZOOM (For public comment only; Meeting will not be viewable on Zoom)

a) You can use a mobile phone or a landline to dial into a Zoom meeting.

i) Dial (669) 9006833. When prompted, enter the Meeting ID: 6778459453 Passcode:2021

The public may begin joining the meeting on Zoom or by calling in to be added to the speaker queue at 5:15 PM for Closed Session.

Once admitted to the Zoom Public Comment meeting, to request to speak at the appropriate time:

ii) Dial *9 from your phone to raise your hand via Zoom

If calling in, staff will confirm the last four digits of the caller's phone number and unmute them; the caller must then press *6 to speak from their device. Callers are encouraged, but not required, to identify themselves by name. Each caller will be provided three (3) minutes to speak. If you are calling in, please turn your volume down on your television or other devices to limit any feedback when you speak.

b) Join the Meeting by clicking on the Zoom link below:

https://sbcityorg.zoom.us/j/6778459453?pwd=ZTkzdUJtcDMrbmFNQnVDSFhvaXQxZz0 Mayor and City Council of the City of San Bernardino Page 9

Meeting ID: 6778459453
Passcode:2021

You can also Go to Zoom.us and click "Join a Meeting" at the top.

Enter the Meeting ID: 6778459453
Passcode:2021

Public Hearings:

If you are commenting on a Public Hea ring, please stay signed on to the Zoom session or sign on when the Public Hearing is announced. You will be prompted by staff when the item is being discussed.

Printed on 01/27/2023
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CLOSED SESSION
City of San Bernardino
Request for Council Action
Date: February 1, 2023
To: Honorable Mayor and City Council Members
From: Sonia Carvalho, City Attorney
Department: City Attorney's Office
Subject: Closed Session
Recommendation:

A)CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i. F.D. a minor, individually, by and through his Guardian ad Litem, Francisco Diaz v.

City of San Bernardino, et al. United States District Court Case No. 5:21-CV-01580- JGB-KK
ii. Juddit Rodriguez, an individual v. City of San Bernardino, et al., United States District Court Case No. 5:21-cv-01528-JGB-SHK

B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation (Pursuant to Government Code Section 54956.9(d)(2)): One Item.

C) CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): One Item

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 1, 2023
To: Honorable Mayor and City Council Members
From: Charles McNeely, City Manager
By: Kris Watson, Director of Animal Services
Department: Animal Services
Subject: Amendment No. 3 to Professional Services Agreement with Advanced Pet Care (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Advanced Pet Care, and increase the annual contract amount to $250,000.

Background
On September 4, 2019, the Mayor and City Council adopted Resolution No. 2019-279, authorizing a PSA with Advanced Pet Care to provide veterinary services for animals in the shelter. The agreement was approved for one year with two single year renewals and a total contract amount not to exceed $75,000. In July 2021, the City entered into the first amendment with Advanced Pet Care after RFQ F-21-23 closed with Advanced Pet Care as the sole responsive bidder for veterinary services to the shelter. In March 2022, the City entered into the second amendment with Advanced Pet Care, increasing the contract amount to $150,000.

Discussion
Veterinary services are vital to the health and welfare of animals impounded at the shelter. In addition to caring for sick and injured animals, as well as spay and neuter services, the PSA with Advanced Pet Care provides the required state mandated licensing for the shelter and the ability for the Department to purchase medications and vaccines to treat animals at the shelter.

In 2022, the department impounded 1,160 more dogs and 134 cats than it did in 2021. This represents a 33% increase of pets impounded at the shelter over the prior

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year. In order to encourage adoptions to the public, and move the increased number of pets through the shelter, the department covered the cost of spay and neuter of adopted shelter pets at Advanced Pet Care in 2022. Additionally, the cost of veterinary care and supplies have increased due to outside market forces. The combination of the increased number of animals, additional treatment, and cost of care has resulted in the need to increase the contract amount for this vendor.

The department will be posting a new RFQ this year for veterinary services as the contract with Advanced Pet Care ends on June 30, 2023. Staff is currently recruiting for the staff veterinarian position, which will help to reduce the total amount spent on medical care for shelter animals at outside vet hospitals.

Staff is requesting a third amendment to the PSA with Advanced Pet Care, increasing the contract amount to $250,000 annually.
2021-2025 Strategic Targets and Goals
This Professional Services Agreement is consistent with Strategic Target No. 3:

Improved Quality of Life. Expanded veterinary treatment for the animals at the shelter increases the overall health of the pets adopted into new homes or returned back to their owners.

Fiscal Impact
The fiscal impact to the City is $100,000; however, because the staff veterinarian position has been unfilled since the beginning of this fiscal year, funds currently allocated in the budget for this position will be repurposed to cover the additional contract costs at Advanced Pet Care.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Advanced Pet Care, and increase the annual contract amount to $250,000.

Attachments
Attachment 1 - Professional Services Agreement with Advanced Pet Care Attachment 2 - Advanced Pet Care Amendment No. 1
Attachment 3 - Advanced Pet Care Amendment No. 2
Attachment 4 - Advanced Pet Care Amendment No. 3
Ward:

All Wards
Synopsis of Previous Council Actions:

September 4, 2019 Resolution 2019-279 was adopted, authorizing a Professional Services Agreement with Advanced Pet Care

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for one year with an option of two single year renewals and issuance of Purchase Order to Advanced Pet Care for an
annual not to exceed amount of $75,000.

August 2, 2021 The City exercised its first of the two one-year extension options, extending the term of the Agreement through June 30, 2022.

March 16, 2022 The City exercised its second of the two one-year extension options, extending the term of the Agreement through June 30, 2023 and increasing the not-to-exceed amount to
$150,000 annually.

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30 SECOND AMENDMENT TO THE

VENDOR SERVICES AGREEMENT WITH BETWEEN THE CITY OF SAN

BERNARDINO AND ADVANCED PET CARE OF SAN BERNARDINO
This Second Amendment (" Second Amendment") to the Vendor Services Agreement is madeand enteredinto by and betweenthe CITY OF SAN BERNARDINO (" CITY") and ADVANCED PET CARE (" VENDOR") as of the last date set forth below.

A. The City and Consultant entered into that certain Professional Services AgreementonSeptember4, 2019forVeterinaryServicesfor Sheltpets. ("Original Agreement").

B. The Parties now wish to amend the Original Agreement to increase the not -to - exceedcompensationto accountfor additionaltimespentby Consultantin providingthe services. The not -to -exceed compensation will increase from $ 75,000 to $ 150, 000.

NOW, THEREFORE, the Parties agree as follows:

1. Section4(b) of theOriginalAgreementis herebyamendedin its entiretyto read as follows:

In noeventshallthetotalamountpaidfor servicesrenderedby Consultantunder this Agreement exceed the sum of $ 150,000. This amount is to cover all related costs,
and the City will not pay any additionalfeesfor printing expenses.

Consultantmaysubmitinvoicesto City for approval. Saidinvoice shall bebased onthetotalof all Consultant's serviceswhichhavebeencompletedto City'ssole satisfaction. City shall pay Consultant' s invoice within ( 45) days from the datethe City receivessaid invoice. The invoice shall describein detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designed as Additional Services" and shall identify the number of the authorized change order, where applicable, on all invoice."

2. Except as modified by this SecondAmendment, all provisionsof the Original Agreement shall remain in full force and effect for the term thereof.

3. This SecondAmendment may be executedin counterparts, eachof which shall be deemed an original, but which together shall constitute one of the same instrument.

SIGNATURES ON FOLLOWING PAGE]

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31 CITY OF SAN BERNARDINO
APPROVED BY:

Robert D. Field
City Manager
IGenovSTED
BY:
eva Rocha
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

ADVANCED PET CARE
Name and Title:

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32 THIRD AMENDMENT TO THE

VENDOR SERVICES AGREEMENT WITH BETWEEN THE CITY OF SAN

BERNARDINO AND ADVANCED PET CARE OF SAN BERNARDINO
This Third Amendment (“Third Amendment”) to the Vendor Services Agreement is made and entered into by and between the CITY OF SAN BERNARDINO (“CITY”) and ADVANCED PET CARE (“VENDOR”) as of the last date set forth below.

A. The City and Consultant entered into that certain Professional Services Agreement on September 4, 2019 for Veterinary Services for Shelt pets. (“Original Agreement”).

B. The Parties now wish to amend the Original Agreement to increase the not-to- exceed compensation to account for additional time spent by Consultant in providing the services.

The not-to-exceed compensation will increase from $150,000 to $250,000.

NOW, THEREFORE, the Parties agree as follows:

1. Section 4(b) of the Original Agreement is hereby amended in its entirety to read as follows:
“In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $250,000. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction.

City shall pay Consultant’s invoice within (45) days from the date the City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designed as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoice.”

2. Except as modified by this Third Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof.

3. This Third Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one of the same instrument. [SIGNATURES ON FOLLOWING PAGE]

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33 CITY OF SAN BERNARDINO
APPROVED BY:

Charles McNeely
City Manager
ATTESTED BY:

Genoveva Rocha
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

ADVANCED PET CARE
Name and Title:

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2 CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 1, 2023
To: Honorable Mayor and City Council Members
From: Charles McNeely, Interim City Manager
Daniel Hernandez, Agency Director of Public Works
Operations and Maintenance
Department: Public Works
Subject: Agreement with Horizons Construction Company
International, Inc., for Asphalt Maintenance and Street Segment Repair Services (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

2. Adopt Resolution No. 2023-021 authorizing the Agency Director of Administrative Services to amend the FY 2022/23 General Fund Operating Budget in the amount of $450,000; and

3. Authorize the Agency Director of Administrative Services to issue a purchase order in the amount not to exceed $450,000.

Background
The Operations and Maintenance Division (O&M) of the Public Works Department is responsible for the maintenance, repair, and clean-up of City-owned infrastructure and rights of way. In collaboration with the Engineering Division of Public Works, it is also responsible for ensuring the City’s streets, street medians, islands, curbs, and related infrastructure are properly maintained, inspected, repaired, and painted/marked as needed. General maintenance and minor repair of asphalt streets (such as pothole filling or small segment repairs) is largely performed through in-house staff. Larger repairs (to include full street rehabilitation and slurry seals) are managed by the Engineering Division.

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2 Discussion
The City of San Bernardino has nearly 1,300 lane miles (574 center lane miles) of streets requiring routine inspection, maintenance, and repair. Routine repairs performed by O&M Division staff generally involves traditional pothole patching, hot patch segment repairs, and minor street shoulder repairs. Larger repairs and full street rehabilitation are managed by the City Engineer using contracted services and are typically part of the City’s Capital Improvement Program (CIP). Medium- sized repairs of asphalt street segments, however, have been identified as an area requiring additional resources and contractual support.

Medium-sized repairs are typically defined as repairs which go beyond traditional pothole patching and may require hot patch asphalt segment repairs beyond 10 feet by 10 feet in size. These repairs may also include repairs to sections of asphalt streets that are deteriorated (alligatored) to the point that traditional pothole patching has no effect. Deterioration of street segments is often referred to as “alligatored” because of the unique appearance of the asphalt surface that resembles the pattern of an alligator’s skin (see Attachment 5 Fact Sheet on Types of Asphalt Surface Damage). It is important to note that these repairs are not meant to provide a long- term solution, but rather, provide a short-term solution while a street is awaiting a full rehabilitation.

As a result of an increase in medium-sized repairs throughout the City, the O&M Division began looking into alternatives designed to properly address such repairs in a more efficient, quicker, albeit short-term manner. They found that such repairs are best performed by contractors who can provide a variety of asphalt repair services a la carte rather than taking on larger projects (such as full street rehabilitations), which may take years to complete. Similar in concept to contracted sidewalk repairs (which are beyond the scope of in-house staff), staff determined this was a feasible alternative that will provide a quicker response to alligatored and/or deteriorated street segments while the street awaits a full replacement.

To ensure our City conducts timely and first-rate repair of deteriorated street segments, staff is recommending a not-to-exceed amount of $450,000 annually under this maintenance services agreement. This will provide necessary repairs to street segments in a more efficient manner and will significantly reduce completion times while ensuring safer streets and roads.

The Operations and Maintenance Division of Public Works worked with the Finance Department, and in November of 2022, a formal bid process was initiated to solicit quotes for asphalt maintenance and repair services in Request for Quotes No. F- 23-18. Notices were posted on the City’s website. The results yielded five (5) vendors which were reviewed by Procurement for compliance with mandatory requirements.

This selection was based on lowest quote. It is also important to note that the cost

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2 results below reflect a sampling of the most typically required services and does not reflect the overall cost of this maintenance services agreement. The amount of this maintenance agreement will be set at an annual cost of $450,000. The results of the bids were as follows:

BIDDER CITY COST
Horizons Construction
Company International, Inc. Orange, CA $173,627
Onyx Paving Company, Inc. Anaheim, CA $225,535
NPG, Inc. Perris, CA $281,095
A&Y Asphalt Contractors, Inc. Norco, CA $320,550
GM Sager Construction Co., Inc. Pomona, CA $351,400
Horizons Construction Company provided the lowest quote and is a reputable vendor for asphalt maintenance and repair services. Staff is confident that they are qualified to provide the services required under this maintenance services agreement. The term of the proposed agreement shall be from February 1, 2023, to June 30, 2024.
2021-2025 Strategic Targets and Goals
This project is consistent with several City goals and targets. It is aligned with Key Target 1e: Minimize risk and litigation exposure. Approval of this agreement will reduce the risk of potential liability associated with tort cases and significantly reduce the amount of open work order requests. It is also aligned with Key Target 3c: Evaluate and enhance the quality of public safety services that will help promote a safe and secure pavement system for the community.

Fiscal Impact
The General Fund impact for this action is $450,000. There is currently no funding established for work to be performed by contractual services for asphalt and street segment repairs. A supplemental budget amendment to the FY 2022/23 operating budget is requested to be able to carry out this maintenance services agreement.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Authorize the City Manager to execute a Maintenance Services Agreement with Horizons Construction Company International Inc. for asphalt maintenance and street segment repair services; and

2. Adopt Resolution No. 2023-021 authorizing the Agency Director of Administrative Services to amend the FY 2022/23 General Fund Operating Budget in the amount of $450,000; and

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2 3. Authorize the Agency Director of Administrative Services to issue a purchase order in the amount not to exceed $450,000.

Attachments
Attachment 1 Resolution No. 2023-021
Attachment 2 Maintenance Services Agreement
Attachment 3 Bid Documents RFQ No. F-23-18
Attachment 4 Bid Results Summary and Cost Sheet
Attachment 5 Fact Sheet on Types of Asphalt Surface Damage Ward:

All Wards
Synopsis of Previous Council Actions:

None.

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Resolution 2023-021
February 1, 2023

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RESOLUTION NO. 2023-021

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE

CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING

THE AGENCY DIRECTOR OF ADMINISTRATIVE SERVICES
TO AMEND THE FISCAL YEAR 2022/23 GENERAL FUND
OPERATING BUDGET IN THE AMOUNT OF $450,000 FOR

ASPHALT MAINTENANCE AND REPAIR SERVICES
WHEREAS, the City of San Bernardino values keeping City asphalt maintenance and repair services operating efficiently; and
WHEREAS, the City is supportive of all efforts to properly maintain, modernize and upgrade City infrastructure to include its streets and roadways; and WHEREAS, the City recognizes that keeping our asphalt maintenance and repair services operating smoothly will promote safer communities and boost the economy from investing in the surface transportation system.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council adopt Resolution No. 2023-021 authorizing the Agency Director of Administrative Services to amend the FY 2022/23 General Fund Operating Budget in the amount of $450,000.

SECTION 3. The Mayor and City Council authorize the City Manager to execute a maintenance services agreement with Horizons Construction Company International, Inc., for asphalt maintenance and repair services.

SECTION 4.The Mayor and City Council authorize the Agency Director Administrative Services to amend the FY 2022/23 budget in the amount of $450,000 to the Public Works Operations and Maintenance General Fund.

SECTION 5. The Mayor and City Council authorize the Agency Director of Administrative Services to issue a purchase order to Horizons Construction Company International, Inc., in the amount not to exceed $450,000.

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February 1, 2023

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SECTION 6. The Mayor and City Council find this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 8. Effective Date. This Resolution shall become effective immediately.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 1st day of February, 2023.

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-021, adopted at a regular meeting held on the 1st day of February 2023 by the following vote:

Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this 1st day of February 2023.

Genoveva Rocha, CMC, City Clerk

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CITY OF SAN BERNARDINO

MAINTENANCE SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 1st day of February, 2023, by and between the City of San Bernardino, a municipal corporation organized under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, County of San Bernardino, State of California (“City”) and HORIZONS CONSTRUCTION COMPANY INTERNATIONAL, a CALIFORNIA CORPORATION, with its principal place of business at 432 W Meats Avenue, Orange, CA 92865 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement.

Contractor represents that it is experienced in providing Asphalt Maintenance and Repair Services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

City desires to engage Contractor to render such services for the Asphalt Maintenance and Repair Services project (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional Asphalt Maintenance and Repair Services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from February 1, 2023, to June 30, 2024, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

The Parties may, by mutual, written consent, extend the term of this Agreement, if necessary, to complete the Services.

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3.2 Responsibilities of Contractor.

Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor’s conformance with the Schedule, City shall respond to Contractor’s submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby designates Ernesto Salinas, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Kinan Kotrash, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

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Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8 Period of Performance. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”).

Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.2.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Contractor may be required to do, or respecting the size of any payment to Contractor during the performance of this Contract, Contractor shall continue to perform the Work while said dispute is decided by the City. If Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided by law.

3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. These include but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours’ labor shall constitute a legal day’s work and that no worker shall be permitted to work in excess of eight (8) hours during any one calendar day except as permitted by law. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

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requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Contractor.

Contractor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. Contractor shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Contractor shall maintain records of each such verification, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in Section 3.2.10 or any of its sub- sections.

3.2.10.2 Employment Eligibility; Subcontractors, Sub-subcontractors and Consultants. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants performing any work relating to the Project or this Agreement to make the same verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1.

3.2.10.3 Employment Eligibility; Failure to Comply. Each person executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer of Contractor, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub-subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in compliance with such requirements.

3.2.10.4 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.2.10.5 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

3.2.10.6 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for

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violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.

3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
(B) Liability for Non-Compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Contractor’s non-compliance with the laws, regulations and policies described in this Section, unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (C) Training. In addition to any other standard of care requirements set forth in this Agreement, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Contractor with a list of training programs that meet the requirements of this paragraph.

3.2.11 Insurance.

3.2.11.1 Time for Compliance. Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Section.

3.2.11.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Contractor, its agents, representatives, employees or subcontractors.

Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:

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(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:

Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance; (4) Privacy/Network Security (Cyber), in a form and with insurance companies acceptable to City; and the policy shall not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another. (B) Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability $2,000,000 MINIMUM per occurrence for bodily injury, personal injury, and property damage; and $4,000,0000 aggregate. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability $1,000,000 MINIMUM; per accident for bodily injury and property damage; (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 MINIMUM per accident for bodily injury or disease; (4) Cyber Liability: $1,000,000 PER OCCURRENCE/AGGREGATE for privacy breaches, system breaches, denial/loss of service, and introduction, implantation or spread of malicious software code; (Defense costs shall be paid in addition to the limits. (C) Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Agreement. (D) Additional Insured. The City of San Bernardino, its directors, officials, officers, employees, agents, and volunteers shall be named as additional insureds on Contractor’s and its subcontractors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.

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including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City, before the City’s own primary insurance or self-insurance shall be called upon to protect it as a named insured. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(A).
(B) Automobile Liability. The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way.

The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Contractor. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers.

Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.

All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery

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against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

3.2.11.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

3.2.11.6 Subcontractor Insurance Requirements. Contractor shall not allow any subcontractors to commence work on any subcontract relating to the work under the Agreement until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Contractor, the City may approve different scopes or minimum limits of insurance for particular subcontractors. The Contractor and the City shall be named as additional insureds on all subcontractors’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad.

3.2.11.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

3.2.11.8 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.2.11.9 Reporting of Claims. Contractor shall report to the City, in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Services under this Agreement.

3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

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3.2.13 Bonds.

3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A: VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

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3.2.15 Work Site.

3.2.15.1 Inspection Of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services.

3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.

3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City.

3.2.17 Warranty. Contractor warrants all Services under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Contract, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one-year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the

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replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Four Hundred Fifty Thousand Dollars ($450,000). Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Contractor. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

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penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.4 Termination of Agreement.

3.4.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause.

3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

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3.5 General Provisions.

3.5.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Contractor:

Horizons Construction Company International, Inc.
432 W Meats Avenue
Orange, CA 92865
Attn: Kinan Kotrash
City:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn Ernesto Salinas
With Copy To:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense which is caused by the the sole or active negligence or willful misconduct of the City or the City’s agents, servants, or independent contractors who are directly responsible to the City.

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award or decree that may be rendered against City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and volunteers.

3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County, California. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.

3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.

3.5.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

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3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.18 Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.

3.5.19 Federal Provisions. When funding for the Services is provided, in whole or in part, by an agency of the federal government, Contractor shall also fully and adequately comply with the provisions included in Exhibit “D” (Federal Requirements) attached hereto and

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incorporated herein by reference (“Federal Requirements”). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control.
[SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO
AND HORIZONS CONSTRUCTION COMPANY INTERNATIONAL, INC.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:

City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

HORIZONS CONSTRUCTION
COMPANY INTERNATIONAL, INC.

By:

Its:

Printed Name:

By:

Its:

Printed Name:
____________________________________
Contractor’s License Number
____________________________________
DIR Registration Number

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EXHIBIT A

SCOPE OF SERVICES

PROPOSED SCOPE OF PROJECT/EQUIPMENT SERVICES
The Vendor will furnish all materials, renderings, equipment, tools, removal, installation, labor, coordination, permits, supervision, freight, and incidentals (including tax) as necessary to perform and complete the project pursuant to the Request for Vendor Quotes and the Agreement. The following is a non-inclusive description of the project work and/or goods to be provided.

Asphalt Maintenance and Repair
General. The City of San Bernardino has approximately 534 center lane miles, approximately 45 parking lots at City parks and City owned facilities, and nearly 120 alleys with asphalt pavement. The City is responsible for repairing, maintaining, and replacing (as needed) asphalt pavement at all these locations through a combined effort between the Engineering and Operations and Maintenance (O&M) Divisions of Public Works. The O&M Division performs minor maintenance and temporary repairs of many asphalt streets and parking lots while the Engineering Division manages larger projects.

This project addresses minor to medium-sized asphalt repairs on City streets, parking lots, alleys, and other related infrastructure and is administered through the O&M division. It seeks the services of an experienced, fully licensed contractor for Asphalt Maintenance Repair Services with experience in municipal settings.

Materials. All asphalt materials shall meet the standard requirement of Section 400 of the Green Book standard specification for Public Works Construction, latest edition.

Materials shall also be free of any residues caused by the artificial distillation of coal, coal tar, or paraffin. The material shall also be free of water and must be of the same kind/texture for the entire job. All types must be of PG6410 grade. Contractor must have the ability to supply the following:

Asphalt Material
•Type 3/4”
•Type ½”
•Type 3/8”
•Type extra fine
•Asphalt emulsion SS 1h
Reporting and Notification. The vendor will be required to notify the Contract Administrator 24 hours prior to any scheduled work at a pre-approved work site. Before and after pictures of work are required and will be sent to the contract administrator after completion of each job or work task.

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Hours of Operation. All work will be performed Mondays to Saturday within the hours of 7 a.m. to 9 p.m. unless otherwise exempted by the Contract Administrator.

Customer Service and After-Hours Notification. The vendor is required to have a dedicated after-hours notification line monitored and answered by an employee that can dispatch crews should an after-hour emergency or urgent issue occur.

Special Projects. The Contract Administrator will determine when areas of maintenance may require significant upgrades that are not within the normal scope of the maintenance services agreement. In such cases, a quote will be requested for the desired work performed and work may begin once approved and a purchase order is issued.

Requests from The Public. The vendor is prohibited from taking direct requests from any residents, City staff (not affiliated with the Operations and Maintenance Division), or any other organizations. The vendor will make every effort to politely inform the requesting individual to contact the Contract Administrator or San Bernardino’s Help Line. Any instance of work performed as a result of a direct request outside of the Contract Administrator will be cause for termination of the vendor services agreement.

Licenses The Vendor shall confirm that it has all licenses (A, Class C-8, and Class C- 12), permits, certifications, qualification and approvals of whatever nature that are legally required to provide asphalt paving/repair services, including a City business license, and that such license and approvals shall be maintained throughout the term of this Contract.

Safety Requirements. Vendor’s employees shall wear appropriate personal protection equipment as required.

Traffic Control. Traffic control is the responsibility of the vendor to implement; however, the contract administrator may assist as needed for larger lane or road closures which may require an official traffic control plan.

Contractor Compliance/Other Info. If the Contract Administrator determines that there are deficiencies in the performance of this project, he or she will provide a written notice to the contractor stating the deficiencies and specifying a time frame to correct the specified deficiencies. This time frame shall be at least a 30-day notice or as determined by the Contract Administrator to correct the specified deficiencies.

Should the contractor fail to correct any deficiencies within the stated time frame, the Contract Administrator may exercise the following measures:
a. Deduct from the contractor’s payment the amount necessary to correct the deficiency, including City overhead costs and impose a deficiency deduction. b. Withhold the entire or partial payment.

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c. Terminate the contract.

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EXHIBIT B

SCHEDULE OF SERVICES
Technical. Vendor shall provide manpower, tools, equipment, and materials to perform minor to medium-sized asphalt repair or construction services. Vendor shall possess valid Class C12 Earthwork and Paving contractor license from the State of California at the time of this quote, and for the duration of this contract. Vendor’s staff will have the applicable training, certifications, and skills necessary to perform the services required as requested in this request for quotes. Generally, the Vendor will be notified at least two weeks before services are required unless services are of an emergency nature. The Contract Administrator will work with the vendor to determine appropriate time-frame for completion of the requested work task and will consider factors such as material shortages due to national supply chain delays.

Services Required
Asphalt Overlay (Machine Method). Vendor shall place a 1” thick overlay of PG70-10 ½” over an existing asphalt-leveling course or a PG70 10 3/4” patch. Lap edges tee cut twelve inches. The areas normally range in size from 10 to 100 square feet, but some requests may be larger. A tack coat is required. Please note: If an existing patch or temporary material is too high, the vendor will scrape down and/or saw cut and remove existing patch prior to overlay. Saw-cutting is absorbed with the cost provided for this task and is not billed separately.

Slurry Seal Single Coat. Slurry seal single coat shall be Guard top as manufactured by Industrial Asphalt or of any equal kind. It shall be applied with 15% water mix at 20 gallons per every 1,000 square foot area. The vendor will remove, clean, and scrape any accumulation of oil and foreign matter prior to application of the slurry seal. The oil seal and crack filler to be applied shall confirm to Section 37-1 of Caltrans Standard Specification, current edition. Oil and crack filler costs are included in the price quoted for slurry seal single coat by the vendor. Payment is based on square footage.

Slurry Seal Double Coat. Slurry seal double coat shall be Guard top as manufactured by Industrial Asphalt or of any equal kind. It shall be applied with 15% water mix at 30 gallons per every 1,000 square foot area. The vendor will remove, clean, and scrape any accumulation of oir and foreign matter prior to application of the slurry seal. The oil seal and crack filler to be applied shall confirm to Section 37-1 and 37-2 of Caltrans Standard Specification, current editions. Oil and crack filler costs are included in the price quoted for slurry seal single coat by the vendor. Payment is based on square footage.

Asphalt Berm. Asphalt berm shall be placed per City standards unless otherwise exempted by the Contract Administrator. Some special berms may be requested for flood-prone areas and may require a height up to 10”.

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Rubberized Crack Sealing. Crack sealing work will include cleaning and sealing asphalt pavement cracks ¼” and greater in width. The crack filler shall be a mixture of paving asphalt and ground rubber or ground rubber and polymer that confirms to current Caltrans standards. The gradation of the ground rubber shall be such that 100% will pass a No. 8 sieve. All cracks shall be blown free of loose materials with a high- pressure nozzle (at least 90 psi or greater). All excess materials shall such as sand shall be swept upon job completion.

Striping and Marking. The City will provide striping and marking services for completed jobs that may require it. Should striping be requested of the vendor, a separate quote will be requested.

Emergency Response. The vendor shall respond to emergencies within 2 hours of request by the Contract Administrator or his representative.

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EXHIBIT C

COMPENSATION
ATTACHMENT “C”

VENDOR QUOTE FORM
VENDOR NAME: Horizons Construction Company International, Inc.

ADDRESS: 432 W Meats Avenue, Orange, CA 92865
PHONE: (714) 626-0000
The undersigned, hereby declare that they have carefully examined the location of the proposed work, familiarized themselves with the local conditions affecting the cost of the work, and have read and examined the terms and conditions for the following Project:

ASPHALT MAINTENANCE AND REPAIR
The undersigned, hereby propose to furnish all labor, materials, equipment, tools, transportation, and services, and to discharge all duties and obligations necessary and required to perform and complete the Project in strict accordance with the Vendor Price Quote for the ELECTRONICALLY SUBMITTED TOTAL VENDOR QUOTE PRICE.

Description Unit Estimated Qty. Unit Cost Total Cost
Asphalt Skin Patching –
1” Machine Overlay
•1 to 1,500 square feet SF 1,500 8.90 13,350
•1,501 to 2,500 square feet SF 2,500 5.38 13,450
•2,501 to 4,000 square feet SF 4,000 4.23 16,920
•4,001 to 10,000 square feet SF 10,000 4.16 41,600
Slurry Seal Single Coat
•1 to 100 square feet SF 400 0.98 392
•101 to 500 square feet SF 1,500 0.75 1,125
•501 to 1,000 square feet SF 4,000 0.58 2,320
•1,001 to 5,000 square feet SF 10,000 0.50 5,000
Slurry Seal Double Coat
•1 to 100 square feet SF 400 1.69 676
•101 to 500 square feet SF 1,000 1.40 1,400
•501 to 1,000 square feet SF 1,000 1.35 1,350
•1,001 to 5,000 square feet SF 5,000 1.30 6,500

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Remove Temporary Asphalt and
Replace with 3” Permanent
Asphalt
•1 to 100 square feet SF 400 6.86 2,744
•101 to 500 square feet SF 1,000 6.61 6,610
•501 to 1,000 square feet SF 3,000 6.50 19,500
•1,001 to 5,000 square feet SF 5,000 6.44 32,200
10” Asphalt Berm (lineal feet) LF 120 52.00 6,240
Rubberized Crack Filling LF 1,500 1.50 2,250
Total Number of Additional Pages: 0
I hereby declare under penalty of perjury that the foregoing is true and correct.

Submitted By:

Title:
(Authorized Representative Signature)
Print Name:

Contractor’s License Number and Classification:

DIR Registration Number (if applicable): _________

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REQUEST FOR VENDOR QUOTES
FOR

CITY OF SAN BERNARDINO
FOR

ASPHALT MAINTENANCE AND REPAIR

CITY OF SAN BERNARDINO
290 North D Street
San Bernardino, California 92401
Telephone: (909) 384-7272
https://www.ci.san-bernardino.ca.us/

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REQUEST FOR VENDOR PRICE QUOTES
PROJECT NO. RFQ F-23-18

ASPHALT MAINTENANCE AND REPAIR
PUBLIC NOTICE IS HEREBY GIVEN that vendor price quotes (“Quotes”) will be received by the City of San Bernardino (“City”) electronically through the City’s online bid management provider (“PlanetBids”), until 3:00 PM Thursday, December 1, 2022. Quotes may NOT be submitted by fax, email, telephone, mail, hand delivery, or other means; any Quotes received through any means other than PlanetBids will be returned to the Vendor unopened.

The award of this contract is subject to available budget adequate to carry out the provisions of the proposed agreement including the identified scope of work. The City reserves the right to reject any or all Quotes.

The City is committed to inclusion and diversity and welcomes proposals and bids from contractors, consultants, and vendors of all faiths, creeds, ancestries, and ethnicities without regard to disability, gender identity, sexual orientation, or immigration status. The City condemns and will not tolerate prejudice, racism, bigotry, hatred, bullying, or violence towards any group within or outside of our community.

Public Works Prevailing Wage and Contractor Registration Certain labor categories under this project may be subject to prevailing wages as identified in the State of California Labor Code commencing at sections 1720 et seq. and 1770 et seq. If applicable, employees working in these categories at the site must be paid not less than the basic hourly rates of pay and fringe benefits established by the California Department of Industrial Relations (“DIR”). Copies of the State of California wage schedules are available for review at www.dir.ca.gov/dlsr/. In addition, a copy of the prevailing rate of per diem wages will be made available at the City upon request. The successful Vendor shall post a copy of the prevailing wage rates at each job site. It shall be mandatory upon the Vendor to whom the Agreement is awarded, and upon any subcontractors, to comply with all Labor Code provisions, which include but are not limited to the payment of not less than the said specified prevailing wage rates to all workers employed by them in the execution of the Agreement, employment of apprentices, hours of labor and debarment of contractors and subcontractors.

Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the DIR. No proposal will be accepted nor any contract entered into without proof of the Vendor’s and subcontractors’ current registration with the DIR to perform public work. If awarded a contract, the Vendor and its subcontractors, of any tier, shall maintain active registration with the DIR for the duration of the project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. The contract awarded pursuant to this request may also be subject to compliance monitoring and enforcement by the DIR.

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I. REQUEST FOR QUOTES
The City is requesting Quotes from qualified vendors 1 (“Vendors”) for ASPHALT MAINTENANCE AND REPAIR services (“Project/Equipment”). To serve and promote the welfare of its residents, the City intends to procure the Project/Equipment, as described below.

A. Scope of Work/Services
The Project/Equipment sought under this request are set forth in more detail in Attachment “A”, attached hereto and incorporated herein by this reference. Notwithstanding the inclusion of such Project/Equipment in Attachment “A”, the final scope of Project/Equipment negotiated between City and the successful Vendor shall be set forth in the Maintenance Service Agreement (“Agreement”) executed by and between City and the successful Vendor. A copy of the Agreement is attached hereto as Attachment “B” and incorporated herein by this reference.

B. Project Manager
The Project Manager for the City regarding this request will be Michelle Parra, Buyer, Purchasing, (909) 384-5083, ([email protected]) or a designated representative, who will coordinate the assistance to be provided by the City to the Vendor.

C. Requests for Clarification
All questions, requests for interpretations or clarifications, either administrative or technical must be requested in writing and will be answered in writing through PlanetBids. To ensure a response, questions must be received in writing no later than November 15, 2022 by 3:00pm local time.

D. Meeting N/A
E. Site Examination N/A
F. Submittal Requirements of Vendor Price Quote
The Quote must be received no later than 3:00PM local time, on or before December 1, 2022 through PlanetBids. It is solely the responsibility of Vendor to see that its Quote is properly submitted to PlanetBids in proper form and prior to the stated closing time. PlanetBids will not accept late Quotes. The City will only consider Quotes that have transmitted successfully and have been issued a confirmation number with a time stamp from PlanetBids indicating that the Quote was submitted successfully.

Vendors experiencing any technical difficulties with the Quote submission process may contact PlanetBids Support.

Vendors to provide a Quote for the scope of Project/Equipment as set forth in in the Vendor Quote Form attached hereto as Attachment “C” and incorporated herein by this reference.. Vendors submitting a Quote agree to furnish services to the City in accordance with the Quote submitted, and to be bound by the terms and conditions of this Request for Vendor Price Quote. Vendor is certifying that it takes no exceptions to the request, including but not limited to, the Agreement.

G. Selection Process
1Use of the term “Vendor(s)” shall mean individual proprietorship, partnership, Limited Liability Company, corporation or joint venture.

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The City will evaluate and award to the responsible Vendor offering the needed quality of supply or work or service at the lowest quotation or determined to be in the best interest of the City. During the evaluation process, the City reserves the right, to request additional information or clarifications from Vendors, or to allow corrections of errors or omissions.

H. General Conditions

1. General: It is solely the responsibility of the Vendor to see that its Quote is properly submitted to PlanetBids in proper form and prior to the stated closing time.

PlanetBids will not accept late Quotes.

2. Amendments to Request: The City reserves the right to amend the request or issue to all Vendors addenda to answer questions for clarification.

3. Non-Responsive Quotes: A Quote may be considered non-responsive if conditional or incomplete.

4. Costs for Preparing: The City will not compensate any Vendor for the cost of preparing any Quote, and all materials submitted with a Quote shall become the property of the City. The City will retain all Quotes submitted and may use any idea in a Quote regardless of whether that Quote is selected.

5. Price Validity: Quotes provided by Proposers in response to this request are valid for 120 days from the due date. The City intends to award the Agreement within this time but may request an extension from the Vendors to hold pricing, until negotiations are complete and the Agreement is awarded.

6.Availability to Perform Work: Vendor must be available to begin Project/Equipment within 30 working days of the contract being awarded and must complete all Project/Equipment within 45 calendar days.

7. Additional Costs to Perform Work/Services: The Vendor’s Quote is inclusive of all cost and applicable taxes. Vendor is responsible for all building permit fees, applicable renderings, plans, documentation and fees required by the Agreement. Vendor will be required to maintain at its own cost the necessary insurance as required by the Agreement and a City business license.

8. Vendor License: As applicable, Vendors shall be properly licensed for the services they provide. Pursuant to Section 7028.15 of the Business and Professions Code and Section 3300 of the Public Contract Code, all Vendors must possess proper licenses for performance of this Agreement in the following classification(s): A-General Engineering Contractor, C8-Concrete Contractor, C12-Earthwork and Paving Contractors, Subcontractors must possess the appropriate licenses for specialty work. Pursuant to Section 7028.5 of the Business and Professions Code, the City shall consider any Quote submitted by a Vendor not currently licensed in accordance with state law to be nonresponsive. The City shall have the right to request, and proposers shall provide within five (5) calendar days, evidence satisfactory to the City of all valid license(s) currently held by Vendor and each of the Vendor’s subcontractors before awarding the Agreement.
[END OF SECTION]

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ATTACHMENT “A”

Terms. For purposes of this scope of services and any related documents, the following terms are defined:
•Contract Administrator. The Contract Administrator is defined as the City representative responsible for administering the contract and ensuring the vendor services agreement is appropriately followed. This designation is assigned to the Operations and Maintenance Division Manager of Public Works. The Streets Supervisor is assigned as the alternate for this project.
•Vendor. This refers to the asphalt maintenance and repair maintenance contractor and any of his or her assigned representatives.

Materials. All asphalt materials shall meet the standard requirement of Section 400 of the Green Book standard specification for Public Works Construction, latest edition.

Asphalt Material
•Type 3/4”
•Type ½”
•Type 3/8”
•Type extra fine

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•Asphalt emulsion SS 1h
Reporting and Notification. The vendor will be required to notify the Contract Administrator 24 hours prior to any scheduled work. Before and after pictures of work are required and will be sent to the contract administrator after completion of each job or work task.

Hours of Operation. All work will be performed Mondays to Saturday within the hours of 7 a.m. to 9 p.m. unless otherwise exempted by the Contract Administrator.

Safety Requirements. Vendor’s employees shall wear appropriate personal protection equipment as required.

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Should the contractor fail to correct any deficiencies within the stated time frame, the Contract Administrator may exercise the following measures:
a. Deduct from the contractor’s payment the amount necessary to correct the deficiency, including City overhead costs and impose a deficiency deduction. b. Withhold the entire or partial payment.
c. Terminate the contract.

Technical Specifications
Technical. Vendor shall provide manpower, tools, equipment, and materials to perform minor to medium-sized asphalt repair or construction services. Vendor shall possess valid Class C12 Earthwork and Paving contractor license from the State of California at the time of this quote, and for the duration of this contract. Vendor’s staff will have the applicable training, certifications, and skills necessary to perform the services required as requested in this request for quotes.

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Asphalt Berm. Asphalt berm shall be placed per City standards unless otherwise exempted by the Contract Administrator. Some special berms may be requested for flood-prone areas and may require a height up to 10”.

Rubberized Crack Sealing. Crack sealing work will include cleaning and sealing asphalt pavement cracks ¼” and greater in width. The crack filler shall be a mixture of paving asphalt and ground rubber or ground rubber and polymer that confirms to current Caltrans standards. The gradation of the ground rubber shall be such that 100% will pass a No. 8 sieve. All cracks shall be blown free of loose materials with a high- pressure nozzle (at least 90 psi or greater). All excess materials shall such as sand shall be swept upon job completion.

Striping and Marking. The City will provide striping and marking services for completed jobs that may require it. Should striping be requested of the vendor, a separate quote will be requested.

Emergency Response. The vendor shall respond to emergencies within 2 hours of request by the Contract Administrator or his representative.

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ATTACHMENT “B”

SAMPLE MAINTENANCE SERVICE AGREEMENT
[***MODEL MAINTENANCE SERVICES AGREEMENT-
REMOVE THIS TITLE WHEN USED***]
[TO BE INSERTED ON CITY OF SAN BERNARDINO
LETTERHEAD]
[***FOR MAINTENANCE SERVICES – DEFINED AS:
(1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes. (2) Minor repainting.
(3) Resurfacing of streets and highways at less than one inch. (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.**]

CITY OF SAN BERNARDINO

MAINTENANCE SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this [***INSERT DAY***] day of [***INSERT MONTH***], 2021 by and between the City of San Bernardino, a municipal corporation organized under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, County of San Bernardino, State of California (“City”) and [***INSERT NAME***], a [***[INSERT TYPE OF ENTITY -

CORPORATION, PARTNERSHIP, SOLE PROPRIETORSHIP OR OTHER LEGAL ENTITY]***] with its principal place of business at [***INSERT ADDRESS***] (“Contractor”).

City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing [***INSERT TYPE OF

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SERVICES***] services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City.

Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

City desires to engage Contractor to render such services for the [***INSERT NAME OF PROJECT***] project (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional [***INSERT TYPE OF SERVICES***] maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from [***INSERT START DATE***] to [***INSERT ENDING DATE***], unless earlier terminated as provided herein. [***INSERT THE FOLLOWING SENTENCE FOR MULTI-YEAR, AUTOMATIC RENEWAL NOT TO EXCEED THREE CONSECUTIVE YEARS; OTHERWISE, ALWAYS DELETE: The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than [INSERT NUMBER] additional one-year terms.***] Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

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Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor’s conformance with the Schedule, City shall respond to Contractor’s submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby designates [***INSERT NAME OR TITLE***], or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates [***INSERT NAME OR TITLE***], or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement.

The Contractor’s Representative shall supervise and direct the Services, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

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3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. [***INCLUDE THE FOLLOWING SENTENCE ONLY IF YOU’RE INCLUDING LD’S – DELETE OTHERWISE – DON’T SIMPLY INSERT $0; ALSO DELETE “AND LIQUIDATED DAMAGES” FROM TITLE OF SECTION ***]Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of [***INSERT WRITTEN DOLLAR AMOUNT***] Dollars ($[***INSERT NUMERICAL DOLLAR AMOUNT***]) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement.

It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. These include but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours’ labor shall constitute a legal day’s work and that no worker shall be permitted to work in excess of eight (8) hours during any one calendar day except as permitted by law. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.10.1 Employment Eligibility; Contractor. By executing this Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. Such requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Contractor. Contractor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and

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shall not violate any such law at any time during the term of the Agreement. Contractor shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Contractor shall maintain records of each such verification, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in Section 3.2.10 or any of its sub-sections.

3.2.10.3 Employment Eligibility; Failure to Comply. Each person executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer of Contractor, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Contractor or its subcontractors, sub- subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in compliance with such requirements.

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3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
(B) Liability for Non-Compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Contractor’s non-compliance with the laws, regulations and policies described in this Section, unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Training. In addition to any other standard of care requirements set forth in this Agreement, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Contractor with a list of training programs that meet the requirements of this paragraph.

3.2.11 Insurance. [***CITY RISK MANAGER TO REVIEW TO DETERMINE WHETHER REQUIREMENTS AND LIMITS ARE ACCEPTABLE***]

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Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:

Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance; (4) Privacy/Network Security (Cyber), in a form and with insurance companies acceptable to City; and (5) Aviation and/or Drone Liability, in a form and with insurance companies acceptable to City. [***DELETE IF AVIATION LIABILITY IS NOT REQUIRED***]The policy shall not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another. (B) Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability:[***INSERT AMOUNT - TYPICALLY $2,000,000 MINIMUM; and $4,000,0000 aggregate. HOWEVER, AMOUNT OF INSURANCE REQUIRED DEPENDS UPON NATURE OF CONTRACT AND RISK TO CITY. PLEASE CONTACT RISK MANAGEMENT TO CONFIRM AMOUNT***] per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability:[***INSERT AMOUNT - TYPICALLY $1,000,000 MINIMUM; HOWEVER, AMOUNT OF INSURANCE REQUIRED DEPENDS UPON NATURE OF CONTRACT AND RISK TO CITY. PLEASE CONTACT RISK MANAGEMENT TO CONFIRM AMOUNT***] per accident for bodily injury and property damage; (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of [***INSERT AMOUNT - TYPICALLY $1,000,000 MINIMUM; HOWEVER, AMOUNT OF INSURANCE REQUIRED DEPENDS UPON NATURE OF CONTRACT AND RISK TO CITY. PLEASE CONTACT RISK MANAGEMENT TO CONFIRM AMOUNT***] per accident for bodily injury or disease; (4) Cyber Liability: :[***INSERT AMOUNT - TYPICALLY $1,000,000 PER OCCURRENCE/AGGREGATE; HOWEVER, AMOUNT OF INSURANCE REQUIRED DEPENDS UPON NATURE OF CONTRACT AND RISK TO CITY. PLEASE CONTACT RISK MANAGEMENT TO CONFIRM AMOUNT***] for privacy breaches, system breaches, denial/loss of service, and introduction, implantation or spread of malicious software code; (5) Aviation/Drone Liability: [***INSERT AMOUNT - TYPICALLY $1,000,000 PER OCCURRENCE LIMIT; HOWEVER, AMOUNT OF INSURANCE REQUIRED DEPENDS UPON NATURE OF CONTRACT AND RISK TO CITY. PLEASE CONTACT RISK MANAGEMENT TO CONFIRM AMOUNT***] for bodily injury and property damage.[***DELETE IF AVIATION LIABILITY NOT REQUIRED***] Defense costs shall be paid in addition to the limits. (C) Notices; Cancellation or Reduction of Coverage. At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another

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insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Agreement.
(D) Additional Insured. The City of San Bernardino, its directors, officials, officers, employees, agents, and volunteers shall be named as additional insureds on Contractor’s and its subcontractors’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.

3.2.11.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of San Bernardino, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insured with respect to the Services or ongoing and complete operations performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City, before the City’s own primary insurance or self-insurance shall be called upon to protect it as a named insured. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way.

Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(A). (B) Automobile Liability. The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(B).

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(C) Workers’ Compensation and Employer’s Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Contractor. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.

3.2.11.4 Separation of Insureds; No Special Limitations; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers. All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

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behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.

3.2.13 Bonds.
[***NOTE (READ AND DELETE THIS BLOCK BEFORE USING
MODEL): Some maintenance projects of more than $25,000 will require payment bonds by law. See generally Civil Code Section 9550 or speak to the City’s Purchasing Team or City Attorney***]

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in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.2.15 Work Site.

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or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Contract, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense.

Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed [***INSERT WRITTEN DOLLAR AMOUNT***] ($[***INSERT NUMERICAL DOLLAR AMOUNT***]) without written approval of City’s [***INSERT TITLE***]. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

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these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Contract. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of

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or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.4 Termination of Agreement.

3.5 General Provisions.

Contractor:
[***INSERT NAME, ADDRESS & CONTACT PERSON***]
City:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: [***INSERT NAME & DEPARTMENT***]
With Copy To:

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3.5.2 Indemnification.

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by this indemnification section that may be brought or instituted against City or its officials, employees, agents and volunteers. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees.

Contractor shall reimburse City and its officials, employees, agents and volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and volunteers.

3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.

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3.5.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed by the Parties.

Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

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3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.19 Federal Provisions.[***INCLUDE THIS SECTION ONLY IF APPLICABLE; DELETE OTHERWISE AND DELETE ASSOCIATED EXHIBIT. IF APPLICABLE, YOU MAY ALSO NEED TO INCLUDE SOME INFORMATION IN THE RFP.

CONSULT AGENCY COUNSEL IF NECESSARY***]When funding for the Services is provided, in whole or in part, by an agency of the federal government, Contractor shall also fully and adequately comply with the provisions included in Exhibit “D” (Federal Requirements) attached hereto and incorporated herein by reference (“Federal Requirements”). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control. [SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO
AND [***INSERT NAME***]
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:
[***INSERT NAME***],
[***INSERT TITLE***]
ATTESTED BY:
[***INSERT NAME***],
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney
[***INSERT NAME OF
CONTRACTOR***]
[IF CORPORATION, TWO SIGNATURES,

PRESIDENT OR VICE PRESIDENT AND

SECRETARY OR TREASURER
REQUIRED]
By: SAMPLE AGREEMENT-DO NOT FILL
OUT
Its:

Printed Name:
[DELETE THE FOLLOWING SIGNATURE
LINE IF NOT REQUIRED]
By:

Its:

Printed Name:
____________________________________
Contractor’s License Number
____________________________________
DIR Registration Number

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EXHIBIT A

SCOPE OF SERVICES
[***INSERT SCOPE***]

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EXHIBIT B

SCHEDULE OF SERVICES
[***INSERT SCHEDULE***]

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EXHIBIT C

COMPENSATION
[***INSERT RATES & AUTHORIZED REIMBURSABLE EXPENSES***] [***SEE SECTION 3.2.13 ABOVE AND IF APPLICABLE, INSERT
PERFORMANCE/PAYMENT BONDS ON THE NEXT PAGE; IF NOT REQUIRED, STATE THAT THEY ARE NOT REQUIRED***]

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EXHIBIT D

FEDERAL REQUIREMENTS
[***INSERT ALL FORMS, PROVISIONS AND OTHER REQUIREMENTS OF THE FEDERAL FUNDING SOURCE***]

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Project No. [***INSERT REFERENCE NO.***]

ASPHALT MAINTENCE AND REPAIR
ATTACHMENT “C”

VENDOR QUOTE FORM
VENDOR NAME:

ADDRESS:

PHONE:

The undersigned, hereby declare that they have carefully examined the location of the proposed work, familiarized themselves with the local conditions affecting the cost of the work, and have read and examined the terms and conditions for the following Project:

Description Unit Estimated Qty. Unit Cost Total Cost
Asphalt Skin Patching –
1” Machine Overlay
•1 to 1,500 square feet SF 1,500
•1,501 to 2,500 square feet SF 2,500
•2,501 to 4,000 square feet SF 4,000
•4,001 to 10,000 square feet SF 10,000
Slurry Seal Single Coat
•1 to 100 square feet SF 400
•101 to 500 square feet SF 1,500
•501 to 1,000 square feet SF 4,000
•1,001 to 5,000 square feet SF 10,000
Slurry Seal Double Coat
•1 to 100 square feet SF 400
•101 to 500 square feet SF 1,000
•501 to 1,000 square feet SF 1,000
•1,001 to 5,000 square feet SF 5,000
Remove Temporary Asphalt and
Replace with 3” Permanent
Asphalt
•1 to 100 square feet SF 400

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Project No. [***INSERT REFERENCE NO.***]

ASPHALT MAINTENCE AND REPAIR
•101 to 500 square feet SF 1,000
•501 to 1,000 square feet SF 3,000
•1,001 to 5,000 square feet SF 5,000
10” Asphalt Berm (lineal feet) LF 120
Rubberized Crack Filling LF 1,500
Total Number of Additional Pages:

I hereby declare under penalty of perjury that the foregoing is true and correct.

Submitted By: Title:
(Authorized Representative Signature)
Print Name:

Contractor’s License Number and Classification:

DIR Registration Number (if applicable): ____________________________

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Attachment 5
Fact Sheet on the Types of Asphalt Surface Damage and Suggested Repairs Because of its durability, asphalt remains the most common type of road surfacing material used for streets, roads, and parking lots in the United States. Unfortunately, asphalt is not foolproof and will sustain damage over time. This damage is most represented in the form of potholes. Potholes, however, are not the only type of surface damage on asphalt streets and the suggested repairs will vary depending on the desired outcome and desired timespan.

The below table describes the type of asphalt surface damage and suggested methods of repair (whether temporary or longer term).

Type Description and Suggested Method of Repair
Asphalt Cracks Most common type of pavement damage. Vary in size but most are thin and may run deep into the surface of the asphalt pavement.

These are typically resolved with a process called crack-sealing. If left unrepaired, it may lead to large potholes or full street deterioration which would require street resurfacing.

Potholes The most commonly-reported asphalt damage by residents and motorists, potholes occur when cracks grow large enough to allow water to seep into the asphalt and break it apart. This results in large or small holes in the surface (sometimes, deep into the sublayers of the street). Potholes are generally repaired with asphalt mix (hot or cold) depending on size and depth. Pothole repairs are always temporary and will usually return if the pavement is not resurfaced. Rains will generally cause potholes to reappear (especially once the weather warms up).

Alligatoring Alligatoring is typically the result of the expansion or contraction of asphalt due to weather/temperature changes. As its names implies, the surface of the street will resemble the scales of an alligator. If left untreated, it can result in large segments of asphalt deterioration. Resurfacing or hot mix-segment repairs are effective options although completely rehabilitating the street section is best.

Ruts Ruts are best described as deep depressions (dips or mounds) in the middle of the pavement or near the edges. They are typically caused by heavy loads and/or excessive traffic volume. Most ruts are found near industrial areas where large trucks are common or at bus stop intersections. Ruts may be repaired with grinding and resurfacing treatments but are best resolved with a full rehabilitation of the street segment.

Raveling Raveling occurs when asphalt particles flake off the surface of the asphalt pavement. Once the top layer wears off and the underlying aggregate is exposed, decreased traction will become common and further deterioration of the surface will occur. Raveling may be repaired with a resurfacing treatment but it is important that it be caught early on. Hot mix segment repairs may be a good option.

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Images of Type of Asphalt Damages
Asphalt Cracks
Alligatoring
Traditional Pothole

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Ruts
Raveling

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 1, 2023
To: Honorable Mayor and City Council Members
From: Charles McNeely, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Approval of Commercial and Payroll Disbursements (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for October to December 2022.

Background
Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers.

The detailed warrant registers are available on the City Website and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser:
https://sbcity.org/city_hall/finance/warrant_register
Discussion
Gross Payroll
Bi-Weekly for November 23, 2022 $2,598,852.51
Bi-Weekly for December 8, 2022 $3,011,321.54
Bi-Weekly for December 22, 2022 $2,713,941.28
Monthly for October 15, 2022 $11,666.69
Monthly for November 15, 2022 $11,666.69
Monthly for December 15, 2022 $11,666.69
Total Payroll Demands: $8,359,115.40

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2021-2025 Strategic Targets and Goals
Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Improved Operational & Financial Capacity by creating a framework for spending decisions.

Fiscal Impact
Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for October to December 2022.

Attachments
Attachment 1 Payroll Summary Report for October-December 2022 Attachment 2 Commercial checks & Payroll Register #22 Attachment 3 Commercial checks & Payroll Register #23 Attachment 4 Commercial checks & Payroll Register #24 Attachment 5 Commercial checks & Payroll Register #25 Attachment 6 Commercial checks & Payroll Register #26 Attachment 7 Commercial checks & Payroll Register #27 Attachment 8 Commercial checks & Payroll Register #28 Attachment 9 Commercial EFT Registers #1373
Attachment 10 Commercial EFT Registers #1374-1380 Attachment 11 Commercial EFT Registers #1381-1388 Attachment 12 Commercial EFT Registers #1389
Attachment 13 Commercial EFT Registers #1390-1391 The following check registers are being presented for approval:

November 17, 2022 2022/23 (Register #22) $1,685,269.96
November 21, 2022 2022/23 (Register #23) $547,468.88
December 1, 2022 2022/23 (Register #24) $1,750,948.69
December 1, 2022 2022/23 (Register #25) $26,500.00
December 5, 2022 2022/23 (Register #26) $1,608.00
December 8, 2022 2022/23 (Register #27) $6,277,677.63
December 15, 2022 2022/23 (Register #28) $3,423,848.24
Total commercial check demands: $13,713,321.40
The following Electronic Funds Transfer (EFT) registers presented for approval:

October 12, 2022 2022/23 (Register #1373) $1,700.00
October 12 to October 18, 2022 2022/23 (Register #1374-1380) $ 1,212,055.99 October 26 to November 17, 2022 2022/23 (Register #1381-1388) $ 2,377,526.98 October 26, 2022 2022/23 (Register #1389) $ 2,357,817.85 November 23 to November 30, 2022 2022/23 (Register #1390-1391) $ 553,413.06 Total commercial EFT demands: $6,502,513.88

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Ward:

All Wards
Synopsis of Previous Council Actions:

N/A

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: February 1, 2023
To: Honorable Mayor and City Council Members
From: Charles McNeely, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Adopt Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code. (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California.

Background
Over the last two years, the Finance Department has been working to build a robust, responsive Purchasing Division. During the bankruptcy, purchasing personnel in Finance was cut to one Assistant Buyer who was tasked with coordinating procurement for the entire City. Out of necessity, the majority of procurement functions were decentralized, and departments completed most of their own procurement, from small purchases of supplies to major requests for proposals for capital projects, with limited assistance from Finance. While this worked when there was little funding available, the City has reached financial stability and is now able to invest in ongoing service and capital projects; having a centralized purchasing model backed by well-defined Policy and Municipal Code is of paramount importance.

In August, 2022 Council requested that the purchasing thresholds of the City Manager and Purchasing Division Manager be added to a future Council meeting agenda, requesting an increase to the City Manager contracting authority and other changes.

To provide the foundation for good governance, the Municipal Code governing purchasing was rewritten and simplified. A Purchasing Policy (Attachment 3) was developed in alignment with the Municipal Code that supports operations and ensures appropriate internal controls are in place. This Policy was adopted by the City Council at the Regular Meeting on January 18, 2023.

Discussion
Council requested two changes to the proposed Municipal Code and Purchasing

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Policy.

December 7, 2022 Adoption and Change.

Mayor and City Council moved to adopt the new Municipal Code and Purchasing Policy with the substantive changes on December 7, 2022. The only change requested was to add a reporting requirement such that all contracts over the $40,000 threshold signed by Directors, Agency Directors, the City Manager and/or their designees be reported to the Mayor and City Council during the City Manager update at each regular City Council meeting.

The specific language added to both the Municipal Code and the Purchasing Policy for all contracts over $40,000 reads as follows:
“Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.”
This language was added for the January 18, 2023 Regular City Council Meeting.

January 18, 2023 Adoption and Change.

Mayor and City Council moved to adopt the Municipal Code with the above change and one additional change, which was read into the record and is attached in the Ordinance (Attachment 1), the redline of the Municipal Code (Attachment 2, page 3) and has additionally been added to the Purchasing Policy (Attachment 3, page 6). The change is to the following:

3.04.040 Approval Authority
The authority to purchase supplies, materials, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase. Purchasing authority are based on the following amounts:

B. Purchases between $50,001 and $100,000
Purchases in this category may only be authorized by the City Manager or their designee.

Council changed Subsection B. to read as follows:

B. Purchases between $50,001 and $100,000
"Purchases in this category may only be authorized by the City Manager or the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence.”

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2021-2025 Strategic Targets and Goals
The changes to the Municipal Code and the adoption of the Purchasing Policy align with Key Strategic Goals 1.a. Establish clear policy direction and predictable organizational structures, and 1.d. Create a framework for spending decisions.

Fiscal Impact
There is no fiscal impact to the City in adopting the new Purchasing Policy and in introducing the Ordinance amending the Municipal Code.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California Adopt Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California.

Attachments
Attachment 1 – Ordinance No. MC-1605
Attachment 2 – Redline of Municipal Code with 1.18.2023 change highlighted Attachment 3 – Purchasing Policy with 1.18.2023 change redline Ward:

All Wards
Synopsis of Previous Council Actions:

January 18, 2023 Mayor and City Council moved to adopt the new Purchasing Policy and Introduce Ordinance No. MC-1605 amending
Section 3.04 of the Municipal Code, reading one change into the record. (All Wards)
December 7, 2022 Mayor and City Council moved to Adopt the new Purchasing Policy and Introduce Ordinance No. MC-1605 amending
Section 3.04 of the Municipal Code with one change. (All Wards)
August 3, 2022 Mayor and City Council requested that am item be added to a future meeting to give the Chief Procurement Officer a dollar authorization of $50,000 and increase City Manager’s signing authority to $100,000 (All Wards) – Council Member Alexander

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ORDINANCE NO. MC-1605

AN ORDINANCE OF THE MAYOR AND CITY COUNCIL

OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING CHAPTER 3.04 OF THE CITY OF SAN

BERNARDINO MUNICIPAL CODE RELATING TO

PURCHASING
WHEREAS, the City San Bernardino, California (“City”) is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and
WHEREAS, the City is dedicated to operating efficiently, effectively and streamlining operations where possible; and
WHEREAS, the City’s current purchasing system is outlined in Chapter 3.04 of the City of San Bernardino Municipal Code; and
WHEREAS, the City’s Purchasing Division has conducted a review of the City’s purchasing system and has identified areas of improvement; and WHEREAS, one such improvement is to streamline the current purchasing system by also establishing a formal purchasing policy; and
WHEREAS, the implementation of a purchasing policy will allow the City to quickly update certain aspects of the purchasing system in order to address issues; and WHEREAS, as part of this purchasing system overhaul includes an increase in spending authority for the City Manager, allowing the City Manager to enter into agreements up to a value of $100,000; and
WHEREAS, this increased flexibility will allow the City to more quickly respond to needs and increase the level of services provided.

THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:

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

SECTION 2.Amendment of Chapter 3.04. Chapter 3.04 of Title 3 of the San Bernardino Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 3.04

PURCHASING SYSTEM
Sections:

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3.04.010 Adoption of Purchasing System

3.04.020 Purchasing Division

3.04.030 Bidding Requirements

3.04.040 Approval Authority

3.04.050 Purchase Orders and Procurement Cards

3.04.060 Encumbrance of Funds

3.04.070 Emergency Purchases

3.04.080 Surplus Supplies and Equipment

3.04.090 Penalty for Split Purchases

3.04.100 Local Bidders

3.04.110 Reserved

3.04.120 Reserved

3.04.130 Reserved

3.04.140 Reserved

3.04.010 Adoption of Purchasing System
A. Establishment. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services, to secure for all departments or agencies of the City, supplies, materials, equipment, and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing functions and to assure that quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no Agency or Department shall be authorized to purchase, or contract for the purchase of supplies, services or equipment independently of the Purchasing Division.

The Municipal Water Department and the San Bernardino Public Library shall not be subject to this centralized purchasing system; however, the Board of Water Commissioners and the Board of the San Bernardino Public Library shall employ procedures substantially in compliance with the provisions of this Chapter as such may be applicable.

B. Purchasing Policy. All purchases of goods, supplies, equipment, and services shall be made in accordance with the formal Purchasing Policy in effect at the time of the purchase. The Purchasing Policy shall be developed by staff and adopted by the Mayor and City Council. The Purchasing Policy may be changed from time to time by City Council Resolution in order to remain in compliance with necessary law and to address the evolving procurement needs of the City.

C. Vendor Lists. The City may utilize the processes of this Chapter and Purchasing Policy to procure vendors who will be eligible or preferred to provide goods or services to the City on an as-needed basis.

D. Exemptions. This Chapter shall not apply to the following:

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or investigations thereof, or to purchases and/or services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures.

2. Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received.

3. Purchases approved by the Mayor and City Council.

4. Purchases of less than ten thousand dollars ($10,000).

5. Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code.

6. Sole Source Procurements as more defined in the Purchasing Policy.

7. Emergency Procurements as more defined in Section 3.04.070 of the Municipal Code and the Purchasing Policy.

8. Federal/Grant-Funded Procurement to the extent that this Chapter and Purchasing Policy is inconsistent any federal, grant or other funding source requirement for a particular purchase. In that event, the federal, grant or other funding source procurement requirements shall control.

9. Inadequate Competition as more defined in the Purchasing Policy.

3.04.020 Purchasing Division
Unless otherwise exempted under this Chapter, the purchase and sale of all supplies, materials, equipment, and services shall be the responsibility of the Purchasing Division. The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement. The Purchasing Division Manager is responsible for the Purchasing Policy, and will develop, advise, review, audit and ensure compliance throughout the purchasing process as the City’s subject matter expert.

3.04.030 Bidding Requirements
The procurement process used to purchase supplies, material, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.

A. Purchases up to $10,000
Purchases up to $10,000 may be purchased using a Purchasing Card or through a check request with no requirement for formal bids or quotes.

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B. Purchases between $10,001 and $40,000
Purchases between $10,001 and $40,000 are processed informally, through vendor quotations and may be processed directly by the department making the purchase. The informal bidding process is more particularly described in the Purchasing Policy.

C. Purchases above $40,000
Purchases in this category are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the Purchasing Policy.

1. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.

3.04.040 Approval Authority
The authority to purchase supplies, material, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.

Purchasing authority are based on the following amounts:

A. Purchases up to $50,000
Purchases in this category may be authorized by the Agency/Department Directors and/or the City Manager.

B. Purchases between $50,001 and $100,000
Purchases in this category may only be authorized by the City Manager or the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence.their designee.

C. Purchases over $100,000
Purchases in this category may only be authorized by the Mayor and City Council.

3.04.050 Purchase Orders and Procurement Cards
Purchase of supplies, materials, and equipment shall be made only by purchase order or procurement card, whichever is appropriate.

3.04.060 Encumbrance of Funds
The Purchasing Division shall not issue any purchase order for supplies, materials or equipment unless there exists an unencumbered appropriation in the account against which the purchase is

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to be charged, and until the same has been approved by the Budget Division of the Finance Department.

3.04.070 Emergency Purchases
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Manager shall have the authority to authorize securing in the open market any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in Section 3.05.020 of the Municipal Code. An explanation of the emergency circumstances shall be filed with the Mayor and City Council within forty-eight (48) hours of the emergency purchase.

3.04.080 Surplus Supplies and Equipment
A. All Agencies and Departments shall submit to the Purchasing Division reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The Purchasing Division Manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures in the Purchasing Policy, or shall be made at a public auction as hereinafter set forth in this Section 3.04.100.

B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the Purchasing Division and shall be given at least five days before the time fixed therefore by publication once in an established newspaper or other publication of general circulation published in the City.

C. City officers shall not be purchasers at any such public auction authorized, conducted, or administered by them in their official capacity, nor shall any City officer or employee directly or indirectly submit a bid at the auction if they have participated in the preparation or conduct of the auction in their official capacity.

D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the Purchasing Manager may, at their discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.

E. Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.

F. The proceeds of the auction sale or sales shall immediately be deposited with the Department of Finance and deposited into the General Fund of the City.

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3.04.090 Split Purchases
It shall be unlawful to split or separate into smaller purchases, a purchase in order to bring the purchase within the provisions of any exemption or less stringent procedure provided herein.

3.04.100 Local Bidders
Any formal or informal bid submitted by a local bidder for goods or materials pursuant to this Chapter shall receive a five percent (5%) credit for comparison purposes with other bidders when a local credit is allowable under the law. For the purpose of this Section, "local bidders" shall be bidders with (1) fixed facilities with employees within the City of San Bernardino’s jurisdiction, (A PO Box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used) and (2) an appropriate City of San Bernardino Business License.

3.04.110 Reserved

3.04.120 Reserved

3.04.130 Reserved

3.04.140 Reserved”
SECTION 3. CEQA. The City Council determines that the Ordinance is categorically exempt from further review per State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.).

The whole of the Ordinance is exempt, because the code amendment is an administrative activity which will not result in a direct or reasonably foreseeable indirect physical change to the environment. (§ 15060(c)(2).) The whole of the Ordinance is also exempt because the code amendment is not a “project” as defined by section 15378, since it has no potential for resulting in a direct or indirect physical change to the environment. (§ 15060(c)(3).) The City Council hereby directs City staff to file a Notice of Exemption within five days of the adoption of this Ordinance.

SECTION 4.Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.

SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

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SECTION 6.Notice of Adoption. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 1st day of February 2023.

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia Carvalho, City Attorney

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CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1605, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 18 th day of January 2023. Ordinance No. MC-1605 was approve passed and adopted at a regular meeting held the day of February 1, 2023, by the following vote:

Genoveva Rocha, CMC, City Clerk

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1 3.04.010 Adoption of Purchasing System
A. Establishment. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services, to secure for all departments or agencies of the City excepting the Municipal Water Department and the Free Public Library, supplies, materials, equipment, and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing functions and to assure that quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no Aagency or Ddepartment shall be authorized to purchase, or contract for the purchase of supplies, services or equipment independently of the administrative officePurchasing Division. The Municipal Water Department and the San Bernardino Public Library shall not be subject to this centralized purchasing system; however; the Board of Water Commissioners and the Board of the San Bernardino Free Public Library shall employ procedures substantially in compliance with the provisions of this Chapter as such may be applicable.

B. Purchasing Policy. All purchases of goods, supplies, equipment and services shall be made in accordance with the formal Purchasing Policy in effect at the time of purchase.

The Purchasing Policy shall be developed by staff and adopted by mayor and City Council. The Purchasing Policy may be changed from time to time by City Council Resolution in order to remain in compliance with necessary law and to address the evolving procurement needs of the City.

C. Vendor Lists. The City may utilize the processes of this Chapter and Purchasing Policy to procure vcendors who will be eligible or preferred to provide goods or services to the City on an as-needed basis.

BD. Exemptions. This Chapter shall not apply to the following:

1. Purchases from, or sales to a government or governmental agency, or through any advantageous governmental contract approved by the Council, or to the purchase of election supplies, or to purchases and/or services or service contracts relating to litigation or prosecution or investigations thereof, or to purchases and/or services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures.

2. Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other California government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received, and the bid award must have occurred within one year at the City's issuance of a purchase order.

3. Purchases approved by the Mayor and Common Council.

4. Purchases for less than $500.00of less than ten thousand dollars ($10,000).

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2 5. Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernardino Municipal Code.

6. Sole Source procurements as more defined in the Purchasing Policy,

7. Emergency Procurements as more defined in Section 3.04.070 of the Municipal Code and the Purchasing Policy.

9. Inadequate competition as more defined in the Purchasing Policy. (Ord. MC-983, 9-24-96; Ord. MC-858, 1-12-93; Ord. MC-608, 9-22-87; Ord. MC-513, 4- 22-86; Ord. MC-431, 1-25-85; Ord. 2588, 6-23-64)

3.04.020 Purchasing Officer Division
The purchase and sale of all supplies, materials and equipment and services, shall be the responsibility of the purchasing agent under the direction and supervision of the administrative officer.Unless otherwise exempted under this Chapter, the purchase and sale of all supplies, materials, equipment, and services shall be the responsibility of the Purchasing Division. The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to Procurement. The Purchasing Division Manager is responsible for the Purchasing Policy, and will develop, advise, review, audit and ensure compliance throughout the Purchasing process as the City’s subject matter expert.
(Ord. MC-858, 1-12-93 ; Ord. 2588, 6-23-64)

3.04.030 Estimates of requirementsBidding Requirements
All using departments and agencies shall file detailed estimates of their requirements for supplies, materials and equipment in such manner, at such time, and for such future periods as the City Administrative office shall prescribe.The procurement process used to purchase supplies, materials, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.

A. Purchases up to $10,000
Purchases up to $10,000 may be purchased using a Purchasing Card or through a check request with no requirement for formal bids or quotes.

B. Purchases between $10,001 and $40,000
Purchases between $10,001 and $40,000 are processed informally, through vendor quotations and may be processed directly by the department making the purchase. The informal bidding process is more particularly described in the Purchasing Policy.

C. Purchases above $40,000

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3 Purchases in this category are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the Purchasing Policy.

3.04.040 RequisitionsApproval Authority
Using departments and agencies shall submit requests for supplies, materials and equipment to the Purchasing Agent by standard requisition forms.The authority to purchase supplies, materials, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase. Purchasing authority are based on the following amounts:

A. Purchases up to $50,000
Purchases in this category may be authorized by the Agency/Department Directors and/or the City Manager.

B. Purchases between $50,001 and $100,000
Purchases in this category may only be authorized by the City Manager or their designee the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence..

C. Purchases over $100,000
Purchases in this category may only be authorized by the Mayor and City Council. (Ord. 2588, 6-23-64)

3.04.050 Purchase Oorders and Procurement Cards
Purchase of supplies, materials, and equipment shall be made only by purchase order or procurement card, whichever is appropriate., and signed by the Purchasing Agent or administrative officer or his or her designee.
(Ord. MC-858, 1-12-93; Ord. 2588, 6-23-64)

3.04.060 Encumbrance of funds
The Purchasing Agent Division shall not issue any purchase order for supplies, materials or equipment unless there exists an unencumbered appropriation in the account against which the purchase is to be charged, and until the same has been approved by the finance divisionBudget Division of the administrative officeFinance Department. (Ord. 2588, 6-23-64)

3.04.070 Formal contract procedure

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4 Except as otherwise provided in this Chapter, purchases and contracts for supplies, materials and equipment of a value greater than fifty thousand dollars shall be by a written contract with the lowest possible and best bidder, pursuant to the procedures described in this section.

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.

B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten days before the opening of bids in a newspaper of general circulation printed and published in the City. The Purchasing Agent may establish and maintain a list of prospective bidders.

The prospective bidders shall be listed on said list according to the service or product provided as indicated by the prospective bidder. It shall not be the responsibility of the Purchasing Agent to ensure that the list contains current information in respect to the address, service or product of the prospective bidder. The Purchasing Agent is authorized to mail invitations to bid directly to appropriate prospective bidders appearing on said list and to other prospective bidders.

C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to be accompanied by a bidder's bond, certified or cashier's check, or cash in an amount not more than ten percent of the total bid. The City Administrator shall establish standards for determining under what circumstances a bidder's security shall be required in order to protect the interests of the City. When deemed necessary by the City Manager, bidder's security may be prescribed in the public notices inviting bids. When bid security is required, bidders shall be entitled to return of bid security, provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award has been mailed, unless and to the extent the City is responsible for the delay. The Common Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest and best bidder. If the Common Council awards the contract to the next lowest and best bidder, the amount of the lowest bidder's required security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A record of the bids received shall be available for public inspection after bids have been opened, indicating the amounts bid by the various bidders and the basis for awarding the contract or purchase order if other than the lowest bidder. Such list shall be available for thirty days after the award has been made.

E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the power to reject any and all bids presented and readvertise for bids.

F. Award of Contracts. Contracts shall be awarded by the Mayor and City Council, by resolution or minute action, to the lowest and best bidder except as otherwise provided herein.

G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising

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5 for bids, the Mayor and Common Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening H. Performance Bonds. The Mayor and Common Council shall have authority to require a performance bond before executing a contract in such amount as it shall find reasonably necessary to protect the best interests of the City. If the Mayor and Common Council require a performance bond, the form and amount of the bond shall be described in the notice inviting bids.

I. Negotiated Purchases. At the discretion of the City Manager, the Purchasing Agent may authorize the purchase of technical or specialized supplies and equipment by competitive negotiation when such a method of purchase would be more advantageous to the City, and any one of the following conditions exists:

1. The supplies or equipment are such that suitable technical or performance specifications are not readily available;

2. The City is not able to develop descriptive specifications; or,

3. The quality of the supplies and equipment cannot be accurately determined by reference to their specifications alone.

At the completion of such a negotiated purchase a written report thereon shall be made to the City Administrator.
(Ord. MC-1569, 2-02-22; Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93; Ord. MC-646, 12-07- 88; Ord. MC-602, 6-02-87; Ord. MC-491, 1-22-86; Ord. MC-183, 7-07-82; Ord. 3893, 1-09-80; Ord. 3723, 5-04-78; Ord. 3514, 8-06-75; Ord. 2588, 6-23-64)

3.04.075 3.040.070 Emergency Ppurchases
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Administrator Manager shall have the authority to authorize the Purchasing Agent to securinge in the open market at the lowest obtainable price any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in Section 3.05.020 of the Muicipal Code.limitation for open market purchases. In all instances a full An explanation of the emergency circumstances shall be filed with the Mayor and Common City Council within forty-eight (48) hours of the emergency purchase. (Ord. 3893, 1-09-80; Ord. 2588, 6-23-64)

3.04.080 Open market procedureSurplus Supplies and Equipment A. All Agencies and Departments shall submit to the Purchasing Division reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The Purchasing Division Manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures in the Purchasing Policy, or shall be made at a public auction as hereinafter set forth in this Section 3.04.100.

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6 B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the Purchasing Division and shall be given at least five days before the time fixed therefore by publication once in an established newspaper or other publication of general circulation published in the City.

E. Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.

F. The proceeds of the auction sale or sales shall immediately be deposited with the Department of Finance and deposited into the General Fund of the City.

Purchase of supplies, materials, and equipment of a value in the amount of fifty thousand dollars or less may be made by the Purchasing Agent in the open market, in accordance with the following procedure:

A. Minimum Number of Bids. Open market purchases shall wherever possible, be based on at least three bids, and shall be awarded to the lowest and best bidder.

B. Notice inviting bids. The Purchasing Agent shall solicit bids by written requests or by telephone to prospective vendors.

C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who shall keep a record of all open market orders and bids for the required period of time after the submission of bids or the placing of orders. This record while so kept shall be open to public inspection.

D. Open Market Purchases For Which No Bids Are Required. For open market purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall have the authority to select a specific vendor and place an order without obtaining additional competitive bids.
(Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93; Ord. MC-646, 12-07-88; Ord. MC-602, 6-02-87; Ord. MC-183, 7-07-82; Ord. 3893, 1-09-80; Ord. 3531, 10-07-75; Ord. 2588, 6-23-64)

3.04.085 Services
A. The Purchasing Agent may contract for services of a value of fifty thousand dollars or less in accordance with the following procedure:

1. Minimum Number of Proposals. Contracts for services shall, whenever possible, be based on at least three proposals, and shall be awarded to the provider who can best meet the needs of the City. Although cost shall be considered by the

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7 Purchasing Agent in entering into such contracts, it shall not be the sole determining factor.

2. Request For Proposals (RFP). The Purchasing Agent shall solicit proposals by written requests or by telephone to prospective providers.

3. Written Proposals. Sealed written proposals shall be submitted to the Purchasing Agent who shall keep a record of all such proposals for not less than 180 days.

This record while kept shall be open to public inspection.

4. Contractual Services For Which No Proposals Are Required. For contractual services not exceeding twenty-five hundred dollars in value, the Purchasing Agent shall have the authority to select a specific provider and enter into a contract without obtaining additional proposals.

B. Contractual services with a value in excess of fifty thousand dollars must be approved by the Mayor and Common Council pursuant to Requests For Proposals as authorized by the Mayor and Common Council.

C. The provisions of Subsection A above shall not apply to contracts for special counsel services which are provided for pursuant to Chapter 2.20 of this Code. (Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93)

3.04.100 Surplus supplies and equipment
A. All using agencies and departments shall submit to the purchasing agent, at such times and in such form as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The purchasing agent shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures of Section 3.04.070 or 3.04.080, whichever is applicable, or shall be made at a public auction as hereinafter set forth. The Purchasing Agent, when directed by the Mayor and Common Council, shall restrict the sale of surplus supplies, materials and equipment of a value in an amount of three thousand dollars or less to local nonprofit tax exempt corporations, associations or organizations pursuant to Section 3.04.080, or shall negotiate and consummate a sale to a governmental agency, including any domestic or foreign sister City. Each restricted or negotiated sale under this Chapter shall be consummated at the fair market value of the surplus supplies or equipment.

B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the City administrator and shall be given at least five days before the time fixed therefore by publication once in a newspaper of general circulation published in the City.

C. City officers shall not be purchasers at any such public auction authorized, conducted or administered by them in their official capacity, nor shall any City officer or employee

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8 directly or indirectly submit a bid at the auction if he has participated in the preparation or conduct of the auction in his official capacity.

D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the City administrator may, at his discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.

E. Any property sold at public auction shall be delivered to the purchaser upon payment of the purchase price.

F. The proceeds of the auction sale or sales shall immediately be deposited with the Treasurer of the City and placed in the general fund thereof. (Ord. 3531, 10-07-75; Ord. 3370, 8-22-73; Ord. 2588, 6-23-64)

3.04.105 Sale of surplus City property
Notwithstanding anything in this Chapter to the contrary, the Purchasing Agent shall select appropriate items with an estimated value of $1,000 or less, and shall make them available for retail sale by private parties pursuant to written agreements approved by the Mayor and Common Council, or by direct retail sale by the City. Such items need not be sold to the highest bidder, and may be sold at a predetermined price and may be discounted from time to time in keeping with retail practices. Any items not sold within a reasonable time shall be returned to the Purchasing Agent for disposal according to normal procedures as provided in this Chapter.

The private party may be authorized to retain a percentage of the sales price in an amount authorized by such written agreements.
(Ord. MC-968, 6-04-96)

3.04.110 Surplus vehicles and equipment
Upon direction by resolution of the Mayor and Common Council, the Purchasing Agent may dispose of surplus vehicles and equipment by sealed bid sale with or without newspaper advertising, but pursuant to the regulations contained in the resolution. (Ord. MC-608, 9-22-87)

3.04.115 City Manager
Any duty or responsibility given to the Purchasing Agent by this Chapter may likewise be performed or fulfilled by the City Manager or his or her designee. (Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93)

3.04.1203.04.090 Penalty To Split Purchases
It shall be unlawful to split or separate into smaller purchases, a purchase so as to bring the purchase within the provisions of any exemption or less stringent procedure provided herein. (Ord. MC-858, 1-12-93)

3.04.125 3.04.100 Local Bbidders

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9 Any formal or informal bid submitted by a local bidder for goods or materials pursuant to this Chapter shall receive a one five percent (51%) credit for comparison purposes with other bidders. For the purpose of this Section, "local bidders" shall be bidders with (1) fixed facilities with employees within the City of San Bernardino’s jurisdiction (a PO Box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used) and (2) an appropriate City of San Bernardino Business License. for which the point of sale of the goods or materials shall be within the City of San Bernardino. (Ord. MC-903, 5-05-94)

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City of San Bernardino
Administrative Policy
Purchasing Policy and Procedures Guide
Subject: Purchasing Policy and Procedures Guide
Purpose: To set forth the policies governing procurement and contracting and to establish certain procedures concerning authorization, documentation, and expenditure for Agencies, Departments, and the City Manager of the City of San Bernardino. The City of San Bernardino has a goal of ethical and fair procurement, and open competition. This Purchasing Policy and Procedures Guide outlines procedures in compliance with Chapter 3.04 of the San Bernardino Municipal Code.

Authority: Resolution No. 2023-020
Scope: Unless otherwise stipulated herein, this policy applies to all City Employees and Elected Officials making purchases on behalf of the City of San Bernardino. All such employees and officials shall comply with the provisions outlined in this policy. The purpose of any required documentation is to ensure transparency and provide sufficient evidence to anyone who reviews bids, proposals, and/or other purchasing materials that public funds were expended in compliance with this Purchasing Policy and Procedures Guide, San Bernardino Municipal Code, and applicable State and Federal law.

Exemption from Scope
None

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TABLE OF CONTENTS
Section Page
I. Introduction 3
II. Purchasing Expenditure and Approval Thresholds 6
III. Informal Procurement 7
IV. Competitive Procurement 7
V. Exemptions 8
VI. Protest Procedures 9
VII. Federal Emergency and Grant Procurement Procedures 10 VIII. Contracting 19
IX. Surplus Supplies and Equipment 20
X. Ethical Standards and Fair Processes 21
Exhibit A – Expenditure and Authorization Threshold Reference 24 Exhibit B – Contracting Guide 25

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I. INTRODUCTION
(a)Purpose
Chapter 3.04 of the San Bernardino Municipal Code provides for the administration of the City’s procurement processes, including the establishment of Purchasing Policy and Procedures Guide (“Policy”). The purposes and objectives of this Policy are:

1. To ensure compliance with all current laws and regulations

2. To promote transparency of the City’s procurement activities

3. To establish standardized, cost-effective, and efficient purchasing methods

4. To ensure continuity of City operations

5. To promote fair competitive processes

6. To maintain integrity and fairness

7. To support the City’s mission and serve the best interest of the public This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code.
(b)Definitions
In construing the provisions of this Policy, the following definitions shall apply:

Cooperative Purchasing – Cooperative purchasing is an arrangement in which multiple entities combine their buying requirements onto a single contract and aggregate volume to enhance their purchasing power.

Emergency – A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services as defined by California Public Contract Code Section 1102.

Emergency Purchase – A purchase or procurement of supplies, equipment or services made during an emergency as defined under Section VI(A) and MC 3.04.070.

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

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

Local Business – The vendor (i) has fixed facilities with employees located at a business address within the City of San Bernardino city limits (a PO box or residence is insufficient); and (ii) has an appropriate City business license/permit, pursuant to MC

3.04.100.

Lowest Responsive, Responsible Bid – A bid from a responsible bidder, defined as a

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bidder qualified to do the solicited work, that conforms in all materials respects to the solicitation, and is the lowest price among qualified, responsive bids.

Maintenance Services - the furnishing of labor, time or effort by a contractor, including but not limited to:
• Routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes; • Minor repainting;
• Resurfacing streets and highways at less than one inch; • Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
• Other similar services that are generally classified as maintenance and not public projects.

Piggyback – (See Cooperative Purchasing).

Professional Services - services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique.

Protest – A protest is a challenge to the award or proposed award of a contract for the procurement of goods and/or services, or a challenge to the terms of a solicitation for such a contract.

Purchase Order (PO) – A purchase order, or PO, is an official document issued by the City committing to pay a vendor for the sale of specific products or services to be delivered in the future.

Purchasing Agent – An employee who purchases materials and supplies and solicits bids on behalf of the City.

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

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

Request for Quote (RFQ) – A formal or informal solicitation of price quotes.

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Services - either general services, maintenance services, or professional services.

Sole Source – A sole source purchase means that only one supplier, to the best of the requester's knowledge and belief, based upon thorough research, can provide the required product or service.

Surplus Supplies and/or Equipment – City owned materials, supplies and/or equipment deemed to be no longer useful or otherwise obsolete. See MC Section 3.04.080. (c)Organization
The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement (M.C. §

3.04.020).
(i) Purchasing Division.

The Purchasing Division is responsible for the oversight and internal control related to procurement and purchasing including, but not limited to:
i. Ensuring compliance with Chapter 3.04 of the San Bernardino Municipal Code and this Policy.
ii. Developing technical review matrices for proposals
iii. Carrying out the initial review of Bids/Proposals
iv. Verifying that all legal and other required internal reviews are completed
v. Ensuring that departments are using the correct contract templates
vi. Opening sealed bids
vii. Certification of Sole Source Procurements
viii. Managing the City’s Disadvantaged Business Enterprise (DBE) and Small Business Enterprise (SBE) Program and reporting results to City Management and the Mayor and City Council. (ii) Purchasing Division Manager (“Purchasing Manager”).

The Purchasing Manager is a critical internal control position. While not empowered to make purchases directly, the Purchasing Manager ensures that the City complies with applicable procurement law, grant funding requirements, the San Bernardino Municipal Code and this Policy. The Purchasing Manager is responsible for internal control and compliance related items including, but not limited to:
i. Reviewing selection of vendors for compliance with open and fair competition
ii. Responding to any bid protests

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iii. Reviewing the DBE and SBE program including verifying affirmative steps and auditing results
iv. Reviewing contracts before they are submitted for final signatures v. Periodic audits for compliance with applicable law, the San Bernardino Municipal Code and the Policy
II. PURCHASING EXPENDITURE AND APPROVAL THRESHOLDS
(a)Purchasing Requirements by Expenditure Threshold
(i) Purchases up to $10,000 (Micro-Purchases):

1. Purchases up to $10,000 may be purchased using a Procurement -Card (“P-Card”) or through a check request.

2. No formal bids or quotes are required.

3. Purchases of $10,001 and over shall not be divided into multiple smaller purchases or invoices to circumvent required procedures.

This is “split purchasing” and is unlawful and a violation of the Policy and the San Bernardino Municipal Code. (M.C. § 3.04.090). (ii) Purchases Between $10,001 and $40,000 (Small Purchases):

1. Purchases in this category are processed informally through the simplified process outlined in Section III of this Policy and may be processed directly by the department making the purchase.

2. Competitive Bidding may be used for purchases under $40,000 at the discretion of the Agency or Department Director.
(iii) Purchases Above $40,000:

1. Purchases in this category are subject to competitive bidding or competitive selection outlined in Section IV of this Policy, depending on the type of purchase (formal procurement
procedures).

2. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update. (b)Purchasing Authority by Expenditure Threshold
(i) Purchases up to $50,000:

1. Purchases in this category may be authorized and signed by Agency/Department Directors and/or the City Manager or their designee.
(ii) Purchases between $50,001 and $100,000:

1. Purchases in this category may only be authorized and signed by the City Manager or the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s

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absence.their designee.
(iii) Purchases over $100,000:

1. Purchases in this category may only be authorized by the Mayor and City Council.

III. INFORMAL (SIMPLIFIED) PROCUREMENT PROCESS
Purchases for goods, services, and materials that are subject to the informal procurement process may be processed through vendor quotations as follows:
(a) Three (3) written quotes should be obtained.
(b) Departments shall strive to obtain written price quotes from three or more potential contractors or suppliers and accept the quote which is determined to be in the best interests of the City. Written price quotes shall be retained and provided as backup for the purchase requisition. If unable to obtain a minimum of three (3) price quotes, staff shall document that reasonable efforts were made to obtain price quotes or proposals including, that there were no other vendors to solicit price quotes or proposals from or that they solicited to other vendors and one or more declined to provide a quote or proposal.
(c) Award shall be made to the best qualified vendor presenting a quote or proposal that is in the City’s best interests. For purchases subject to the informal procurement process, criteria other than price may be used. For example, delivery time, quality, and vendor experience may impact the selection of quotes.

If using criteria other than price, the criteria should be stated somewhere on the quote documentation for audit purposes.
(d) Contracts for the purchase of professional services shall be awarded to the best qualified vendor on the basis of demonstrated competence and professional qualifications. While a reasonable price is always a consideration in selecting a vendor, it cannot be the sole factor in selecting a vendor for professional services.

IV. FORMAL PROCUREMENT PROCESS
(a) Purchases for goods, services, and materials that are subject to the formal procurement process shall be processed utilizing an RFP, RFQual or RFQ process as described in this Section. The RFP, RFQual or RFQ process shall be utilized to engage services on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City. The following minimum guidelines and procedures shall be implemented.
(i) Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs, RFQuals or RFPs shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of qualifications or proposals; (4) describe general

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parameters for evaluation and selection; and (5) include any other information required by state or local law.
(ii) Published Notice. City staff shall solicit RFQs, RFQuals or RFPs via published notice in a newspaper of general circulation and/or the City’s website at least ten (10) calendar days before the date for receiving qualifications or proposals, unless exigent circumstances call for a shorter time.
(iii) Review of Qualifications or Proposals. The City will receive qualifications or proposals at the date, time and place of submission on the notice inviting RFQs/RFQuals/RFPs. Any proposals received after the proposal opening time will be time/date stamped and returned unopened to the proposer.

The City will review and evaluate qualifications or proposals based on the evaluation and selection criteria in the RFQs/RFQuals/RFPs and rank proposals based on factors listed in the RFQ/RFQual/RFP. (iv) Negotiation. Once proposals are ranked, the City may negotiate a contract with the highest ranked proposer only, may negotiate with multiple proposers, or may attempt to reach an agreement with the highest ranked proposer before negotiating with other proposers in order of ranking. The City may also dispense with negotiations and recommend an award based on the proposals.
(v) Award. Award for professional services contracts shall be to the best qualified vendor who will best serve the City’s interests taking into account the demonstrated competence, professional qualifications and suitability for the project. Award for other contracts shall to the vendor offering the best value to the City, in the City’s sole and absolute discretion. (vi) Rejection of Bids. The City Council may, in its sole and absolute discretion, reject all proposals presented and re-advertise.

V. EXEMPTIONS
Exemptions from the procurement process may be requested under the following circumstances:
(a)Emergency Purchases. An exemption may be granted in case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common Council and which requires purchase of supplies, materials, equipment, and contractual service.
(i) In such a case, the City Manager shall have the authority to authorize the Purchasing Division to secure in the open market such supplies, materials, equipment, or contractual services as deemed necessary. (ii) This emergency authority shall extend to all purchases; irrespective of the fact that amount might exceed the City Manager’s authorization threshold.

In such instances a full explanation of the emergency circumstances shall be filed with the Mayor and City Council (MC § 3.04.070).

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(iii) If emergency work is performed, the Purchasing Division should be notified by the next business day, or as soon as practical. This will allow the Purchasing Division to properly ratify purchase orders. (iv) An emergency includes the following: (1) a public calamity; (2) an immediate need to prepare for national or local defense; (3) the breakdown of machinery or equipment causing a service impediment requiring immediate resolution; (4) a hazard to public health or welfare; and (5) situation in which the City will be unable to perform services for the public.
(b)Cooperative Purchases. The City may engage in cooperative purchasing for goods or services as a third-party agency "piggybacking" on another agency's competitively bid agreement. Cooperative purchasing reduces administrative expenses and secure prices and other benefits of a large volume purchase.

Caution must be exercised to ensure that the City is in compliance with all applicable federal, state, and local laws as well as the Policy. The Purchasing Division must be consulted prior to any department engaging in cooperative purchasing.
(c)Sole Source. When a department determines that the goods, services or public project can only be obtained from a sole source. For example, only one manufactured makes an item that meets the required specifications or only one item is compatible with existing equipment. Price cannot be used in a determination of sole source. This is an indication of competition in the marketplace.

A sole source purchase is a method of acquisition; it shall not be used to avoid competition. A sole source justification memo is required for any sole source purchase over $10,000. The sole source justification memo must be approved by the Purchasing Manager before the purchase is completed. (d)Public Works Projects. This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code. (e)Purchases Approved by Mayor and City Council. A purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from this Policy.
(f)Federal/Grant-Funded Procurement. Federal/grant-funded procurements shall be exempt from this Policy if such funding requires compliance with an alternative set of procurement rules not in compliance with this Policy. This is more particularly described in Section VII(c) of this Policy. (g)Exemptions Authorized by San Bernardino Municipal Code Section

3.04.010(D)(1). Items listed in San Bernardino Municipal Code section

3.04.010(D)(1) shall be exempt from this Policy. This includes, but is not limited to, purchases/sales from other governmental agencies.
(h)Inadequate Competition. Inadequate competitive is defined as when, after solicitation from a number of sources (which must be documented for audit purposes), competition is determined to be inadequate. Inadequate competition includes the lack of receipt of responsive bids.

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VI. PROTEST PROCEDURES
(a)Right to Protest. Prior to making the award, any responsible bidder in connection with the award of a contract may protest the award. A subcontractor of a bidder or proposer may not submit a protest. This Section shall apply to all contracts awarded by the City Council through a formal competitive process, including but not limited to a formal bid or formal request for proposal process.

The protest procedure does not apply to contracts that are awarded at the staff level or through a non-competitive process (e.g., by sole source). The protest procedure is solely to serve the public interest and obtain finality of City contract awards.
(b)Procedure. The protest must:
(i) Be filed in writing within five (5) calendar days after the bid opening date relating to any Bid. Any protest relating to a City determination or recommendation regarding the bidder’s bid must be submitted within five (5) calendar days after the City makes the determination or recommendation
(ii) Clearly identify the specific irregularity or accusation; (iii) Clearly identify the specific City staff determination or recommendation being protested, if applicable;
(iv) Specify in detail the legal grounds for protest and the facts supporting the protest; and
(v) Include all relevant, supporting documentation with the protest at time of filing.
(c)City Response. Any grounds not raised in the written protest are deemed waived by the protesting bidder. If the protest does not comply with each of these requirements, the City may reject the protest without further review. If the protest is timely and complies with the above requirements, the City shall review the protest, any response from the challenged bidder(s), and all other relevant information. The City will provide a written decision to the protestor in a reasonable amount of time.
(d)Effect of Failure to Comply with Protest Procedures. The procedure and time limits set forth are mandatory and are the sole and exclusive remedy in the event of a bid protest. Failure to comply with these procedures shall constitute a failure to exhaust administrative remedies and a waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceeding. (e)Conflicts. The protest procedure contained in this Section shall not apply if a particular procurement solicitation contains a different protest procedure.

VII. FEDERAL EMERGENCY AND GRANT PROCUREMENT

PROCEDURES

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(a)Purpose. The purpose of these Federal Emergency and Grant Procurement Procedures is to define the practices and policies governing the procurement of services, and goods (i) in preparation of, during, and after an emergency that may be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence. These Federal Emergency and Grant Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).
(b)Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements
(i) In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by the Uniform Guidance. (ii) In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements.
(iii) These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements in this Policy or state law. In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern.
(c)Conflicts of Interest
(i) Standards of Conduct for Conflicts of Interest. No employee, officer or agent of the City shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: The employee, officer or agent; any member of his immediate family; his or her partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. The City’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub-agreements. Such a conflict will not arise where the financial interest is not substantial, or the gift is an unsolicited item of nominal intrinsic value. Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the

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prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts. (ii) Violations. Disciplinary actions to be applied for violations of the above standards are as follows.
(1) The violation of these Standards of Conduct by City employees will subject the violator to any disciplinary proceedings or action deemed appropriate by the City Manager. Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations.
(2) The violation of any of these Standards of Conduct by City officers will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations. (3) Contractors or subcontractors that violate these Standards of Conduct as relates to an active federally funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager. (4) Agents of the City that violate these Standards of Conduct as relates to federally funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager. (d)Procurement Standards
(i) Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. (ii) Economical Approach. The City must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.
(iii) Detailed Records. The City shall maintain records sufficient to detail the history of each procurement. These records will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.

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(iv) Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. Protest procedures or information on obtaining the procedures shall be included in the procurement documents.
(e)Competition
(i) Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts;
(5) Organizational conflicts of interest, as further detailed herein; (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(ii) Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-by-case basis. (iii) Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in- state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes

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expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(iv) Procurement Transactions. The City shall require the following information for procurement transactions:
(1) A clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and
(2) All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(v) Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period. (f)Procurement Procedures
The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein. (i) Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micro-purchases equitably among qualified suppliers. (ii) Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $40,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources.

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(iii) Formal, Sealed Bidding.
(1) Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $40,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101. (2) This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally on the basis of price.
(3) The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation. (4) Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason.
(iv) Competitive Proposals.
(1) When the nature of a procurement does not lend itself to formal, sealed bidding, the City may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or cost- reimbursement type contract is awarded.
(2) A request for proposals (RFP) must be publicly advertised, and the City must solicit proposals from an adequate number of sources.

The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed.
(3) Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision. a. The City’s procurement officer shall establish a formal evaluation committee, of at least two persons. The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and represented by individuals involved with the procurement and/or affected by the goods or services being procured.

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b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award.
(4) Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or price- related factors.
(5) If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered.
(v) Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable.
(vi) Noncompetitive Procurements.
(1) Contracts may be procured through a noncompetitive proposal only when:
a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity
expressly authorizes noncompetitive proposals in response to a written request from the City; or
d. Competition is deemed inadequate after the solicitation of a number of sources.
(vii) Public Projects. Public projects shall be procured by the City’s formal contract bid procedures, if any, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply.
(viii) Award.

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(1) Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(2) Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award
Management (SAM), www.sam.gov, must be performed and
documented in the procurement records prior to award.
(g)Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms
(i) The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below.

The City shall:
(1) Place qualified small and minority businesses and women's business enterprises on solicitation lists;
(2) Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
(4) Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.
(ii) The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file. (h)Cost and Price
(i) Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications,

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in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City must, at a minimum, make independent estimates before receiving bids or proposals.
(ii) Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b). (iii) Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq.
(i)Payment Procedures
(i) Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods.
(ii) Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought. (iii) Time and Materials (“T&M”) Contracts
(1) T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the City cannot define a clear scope of work.
(2) The City shall only enter into a time and materials contract if all of the following apply:
a. The City has determined and documented in the project file that no other contract is suitable;
b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and
c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
(3) The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., non- T&M).
(iv) Separate Invoicing. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases. All invoices shall state the goods, services, or equipment

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Mayor and City CouncilFebruary 1, 2023

Mayor and City Council
February 1, 2023