Santa Clarita City Council
September 27, 2022

CITY OF SANTA CLARITA

CITY COUNCIL

REGULAR MEETING

Tuesday, September 27, 2022
6:00 PM
City Council Chambers
23920 Valencia Blvd.

Santa Clarita, CA 91355

AGENDA

Joint Meeting with
Board of Library Trustees
Public Financing Authority

How to Address the City Council
Pursuant to Government Code section 54954.3 members of the public are afforded the opportunities to address the City Council. You may address the Council once per meeting during Public Participation on any matter within the Council's jurisdiction that is not listed on the agenda. Public Participation speaker's cards must be submitted to the City Clerk BEFORE this portion of the meeting begins. To address the Council regarding an item on the agenda, please fill out a speaker's card and submit it to the City Clerk BEFORE the Mayor announces the item.

Each person addressing the Council is given three minutes to speak (with double the time allotted to non-English speakers using a translator) indicated by a colored light system on the Council dais. If you wish to provide information to the Council, please present the City Clerk with 10 copies. Otherwise, your materials will simply be added to the official record. Please note use of City Council Chamber technology equipment to present electronic material during meetings is not allowed.
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In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk's Office, (661) 255-4391. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28CFR 35.102-35.104 ADA Title II)

Pursuant to Government Code 54957.5 any writings or documents distributed to a majority of the members of the City Council regarding any open session item on this agenda will be made available for public inspection in the City Clerk’s Office located at 23920 Valencia Boulevard, Suite 120, during normal business hours.

View public meeting agendas here, inclusive of all attachments and reading file material. ______________________________________________________________________________

INVOCATION
Smyth

CALL TO ORDER

ROLL CALL

FLAG SALUTE

EXECUTIVE MEETING
This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.

APPROVAL OF AGENDA

AWARDS AND RECOGNITIONS
National Figure Skating Recognition
Hispanic Heritage Month Proclamation
German-American Heritage Month Proclamation
2022 Achievement of Excellence in Procurement Award

PRESENTATIONS
Southern California Edison Update on Wildfire Mitigation - Expedited Grid Hardening Plans

PUBLIC PARTICIPATION
This time has been set aside for the public to address the City Council on items NOT listed on the agenda. The City Council will not act upon these items at this meeting other than to review and/or provide direction to staff. All speakers must submit a speaker’s card to the City Clerk PRIOR to the beginning of this portion of the meeting. Thirty minutes are allotted for public input at this time. The FIRST TEN people to submit a speaker card prior to the beginning of Public Participation will be heard.

STAFF COMMENTS

COMMITTEE REPORTS/COUNCILMEMBER COMMENTS

PUBLIC HEARINGS

1. IMPLEMENTATION AND FINANCING OF THE CITY’S ENERGY

INFRASTRUCTURE MODERNIZATION PROGRAM AND THE SANTA

CLARITA PFA LEASE REVENUE BONDS - ENERGY EFFICIENCY
PROGRAM SERIES 2022A (GREEN BONDS) AND SERIES 2022B (GREEN BONDS) - City Council enter into agreements to Climatec, LLC to design and implement comprehensive energy efficient infrastructure modernizations throughout City facilities and parks and approve the proposed issuance of Public Financing Authority Lease Revenue Bonds (Energy Efficiency Program) Series 2022A and Series 2022B and approval of documents, and the taking of certain actions in connection therewith.

RECOMMENDED ACTION:

City Council:

1. Conduct a public hearing.

2. Adopt a resolution to make certain findings and approve the implementation and financing of the City’s Energy Infrastructure Modernization Program in accordance with Government Code Sections 4217.10 through 4217.18.

3. Award the City’s Energy Infrastructure Modernization Program Installation Agreement to Climatec LLC in an amount not to exceed $35,129,467.

4. Appropriate $35,129,467 from the Facilities Fund (723) to Energy Efficiency Expenditure Account R0033723-516101.

5. Award the City’s Energy Infrastructure Modernization Measurement and Verification Agreement to Climatec LLC upon completion and acceptance of the project in an annual amount not to exceed $28,000.

6. Appropriate funding from the General Fund (100) to Neighborhood Services Expenditure Account 1007000-516102 for guaranteed savings measurement and verification in the amount of $28,000 annually in Fiscal Year 2024-25 through Fiscal Year 2026-27; contingent upon the appropriation of funds in the annual budget for such fiscal years.

7. Adopt a resolution approving the issuance of the Santa Clarita Public Financing Authority Lease Revenue Bonds (Energy Efficiency Program), Series 2022A (Green Bonds) and Lease Revenue Bonds (Energy Efficiency Program), Series 2022B (Green Bonds), in the aggregate principal amount not to exceed $25,000,000, approving the execution and delivery of an amendment to two lease agreements, a Continuing Disclosure Certificate, two Bond Purchase Agreements, a Preliminary Official Statement, a Final Official Statement and Sale Documents; approving the retention of certain professional firms; and authorizing the taking of certain actions in connection therewith.

8. Adopt a resolution declaring the intent to reimburse certain expenditures from the proceeds of tax-exempt obligations expected to be issued to finance energy efficiency improvements buildings, and facilities as required by United States Department of Treasury Regulations Section 1.150-2.

9. Adopt a resolution authorizing the application for an Energy Efficiency Loan from the California Energy Commission to implement energy efficiency measures in the amount not to exceed $3,000,000 and authorizing the execution and delivery of a loan agreement, Promissory Note and Tax Certificate; and authorizing the taking of certain actions in connection therewith.

10. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

Public Financing Authority:

1. Adopt a resolution approving the issuance of the Santa Clarita Public Financing Authority Lease Revenue Bonds (Energy Efficiency Program), Series 2022A (Green Bonds) and Lease Revenue Bonds (Energy Efficiency Program), Series 2022B (Green Bonds), in the aggregate principal amount not to exceed $25,000,000, approving the execution and delivery of two supplemental indentures, amendments to two lease agreements, two Bond Purchase Agreements, a Preliminary Official Statement, a Final Official Statement; and authorizing the taking of certain actions in connection therewith.

NEW BUSINESS

2. SPONSORSHIP AGREEMENT WITH KAISER PERMANENTE FOR THE SANTA CLARITA AQUATIC CENTER - Consideration of a Sponsorship Agreement with Kaiser Permanente for the Presenting Level Sponsorship of the Santa Clarita Aquatic Center.

RECOMMENDED ACTION:

City Council:

1. Approve and authorize the City Manager or designee to execute a Sponsorship Agreement with Kaiser Permanente for the Presenting Level Sponsorship of the Santa Clarita Aquatic Center subject to City Attorney approval.

2. Increase revenue account 100-456611 by $50,000.

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered routine and will be enacted by one motion by the City Council. The items are not individually discussed by the City Council unless a request is made by a member of the public or the Council, in which case, the item(s) will be removed from the Consent Calendar and will be considered separately.

3. APPROVAL OF SPECIAL MEETING MINUTES – The minutes of the City Council are submitted for approval.

RECOMMENDED ACTION:

City Council approve the minutes of the September 13, 2022 Special Meeting.

4. APPROVAL OF REGULAR MEETING MINUTES – The minutes of the City Council are submitted for approval.

RECOMMENDED ACTION:

City Council approve the minutes of the September 13, 2022 Regular Meeting.

5. CHECK REGISTER NOS. 18 AND 19 - Check Register No. 18 for the Period 07/29/22 through 08/11/22 and 08/18/22. Electronic Funds Transfers for the Period 08/01/22 through 08/12/22.

Check Register No. 19 for the Period 08/12/22 through 08/25/22 and 09/01/22. Electronic Funds Transfers for the Period 08/15/22 through 08/26/22.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register Nos. 18 and 19.

6. DATACENTER BACKUP AND RECOVERY SYSTEM - Cybersecurity and disaster recovery are top priorities for the City of Santa Clarita. The cornerstone of an effective disaster recovery plan is a reliable and effective backup and recovery system. This item makes a recommendation to award a three-year contract for a backup and recovery solution to ensure the City’s information systems infrastructure is well protected.

RECOMMENDED ACTION:

City Council:

1. Award a three-year contract to Savant Solutions, Inc., in the amount of $73,318, plus a 10 percent contingency in the amount of $7,332, for a total amount not to exceed $80,650 for the Cohesity Backup and Recovery system, inclusive of three years of maintenance and support.

2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

7. RESOLUTION ESTABLISHING A POLICY WHICH DELEGATES TORT

LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY - Authorize the City of Santa Clarita to delegate tort liability claims handling responsibilities to the California Joint Powers Insurance Authority by adopting a resolution.

RECOMMENDED ACTION:

City Council:

1. Adopt a resolution authorizing the City of Santa Clarita to delegate tort liability claims handling responsibilities to the California Joint Powers Insurance Authority.

2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

8. UPDATES TO THE CITY'S PURCHASING POLICY - The City of Santa Clarita’s Purchasing Policy, last updated in 2020, serves to direct the City’s procurement processes and ensure fiscally responsible purchasing activities. The proposed updates primarily include contractual signing authority processes, procurement approaches, and a few clarifying items.

RECOMMENDED ACTION:

City Council approve updates to the City of Santa Clarita's Purchasing Policy to enhance and strengthen the City’s procurement practices.

9. INCREASE CONTRACT EXPENDITURE AUTHORITY FOR ON-CALL CEQA PLANNING SERVICES CONTRACTS - Increase expenditure authority for contracts with previously selected, qualified vendors to provide as-needed California Environmental Quality Act services to the City of Santa Clarita.

RECOMMENDED ACTION:

City Council:

1. Authorize an expenditure authority increase to the City’s current on-call California Environmental Quality Act consulting firms: Dudek, Michael Baker International, Inc., ICF Jones & Stokes, Inc., Envicom Corporation, and SWCA Environmental Consultants, for a not to exceed amount of $500,000 annually for each of the three remaining contract years, resulting in a total on-call expenditure authority amount of $2,500,000.

2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

10. MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SANTA

CLARITA AND THE SERVICE EMPLOYEES INTERNATIONAL UNION
LOCAL 721 - SEIU Local 721, CTW, CLC is the exclusive bargaining agent for approximately 90 positions in the field and maintenance classifications. The term of the proposed MOU is for three years and runs from July 1, 2022, through June 30, 2025.

RECOMMENDED ACTION:

City Council:

1. Approve the draft Memorandum of Understanding that has been negotiated between the City of Santa Clarita and the Service Employees International Union, Local 721.

2. Adopt a resolution providing for compensation of Service Employees International Union represented employees of the City of Santa Clarita.

3. Authorize the City Manager to finalize, sign, and accept the Memorandum of Understanding on behalf of the City of Santa Clarita.

PUBLIC PARTICIPATION
This time has been set aside for any speakers that have turned in speaker cards and were not heard in the first thirty minutes allotted to address the City Council on items that are NOT on the agenda. Speaker cards may not be submitted relating to any items listed on the agenda.

STAFF COMMENTS

ADJOURNMENT

FUTURE MEETINGS
The next regular meeting of the City Council will be held October 11, 2022, at 6:00 PM in the Council Chambers, 1st floor of City Hall, 23920 Valencia Blvd., Santa Clarita, CA.

CERTIFICATION
On September 22, 2022, I, Mary Cusick, do hereby certify that I am the duly appointed and qualified City Clerk for the City of Santa Clarita and that the foregoing agenda was posted at City Hall.

_____________________________
Mary Cusick
City Clerk
Santa Clarita, California

PROCLAMATION

Hispanic Heritage Month
September 15 – October 15

WHEREAS, National Hispanic Heritage Month celebrates the rich cultural traditions and significant achievements of the Hispanic and Latino community; and WHEREAS, 62.1 million Americans are Latinos of Hispanic Heritage and represent 19 percent of our nation’s population; and
WHEREAS, 34.4 percent of the City of Santa Clarita’s population is comprised of Latinos who are continuously bringing a rich historical tradition to the City based upon the significant contributions made by Latino forebearers; and
WHEREAS, today the premier leaders of the Latino community of the City are advancing in every area of our American life; and
WHEREAS, many people of Hispanic Heritage serve as civil rights leaders and community organizers, politicians, teachers, journalists, first responders, artists, healthcare professionals, athletes, inventors, entertainers, and more; and
WHEREAS, the City directly reflects the ongoing contributions in language, law, business, health, literature, food, and architecture made by Latinos; and WHEREAS, the Latino residents continue to enhance the City’s artistic life in the areas of art, music, dance, motion pictures, radio, and television; and WHEREAS, the influence brought by a diversity of Latinos continues to prosper and make an undying force in the City.

NOW THEREFORE, the City of Santa Clarita does hereby proclaim September 15 to October 15, 2022, as “Hispanic Heritage Month” in the City of Santa Clarita, California.

Signed this 27th day of September, 2022

Laurene Weste, Mayor
Santa Clarita, California
a
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Attachment: Hispanic Heritage Month 2022 (Hispanic Heritage Month Proclamation)

PROCLAMATION

German-American Heritage Month
October 2022

WHEREAS, on October 6, 1683, 13 German families from Krefeld landed in Philadelphia and founded Germantown, Pennsylvania, the first German settlement in America and the first American community to formally protest the evils of slavery; and

WHEREAS, throughout our history, German Americans have woven distinct threads into the fabric of our country in extraordinary ways -- by crossing the Atlantic, planting roots in communities across our country, and spurring shared advances -- German Americans have proven our Nation's diversity makes our society ever stronger ; and

WHEREAS, during German American Heritage Month , we celebrate the immeasurable ways their talents and ideas have helped our cou ntry thrive; and

WHEREAS, the more than 44 million Americans who claim German heritage join previous generations in making important contributions to every facet of American life; and

WHEREAS, German Americans have helped drive our economy, enrich our culture, and protect and defend the land they embrace as their own; and

WHEREAS, as our Nation's largest ancestry group, German Americans are rightfully proud of how their deep cultural, historical, and familial ties have helped strengthen this robust transatlantic relationship.

NOW, THEREFORE, the City of Santa Clarita proclaims October 2022, as German American Heritage Month and encourages all residents to learn more about the history of German Americans and reflect on the many contributions they have m ade to our City.

Signed this 27th day of September, 2022.

Laurene Weste, Mayor
Santa Clarita, California
a
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Attachment: German American Heritage Month 2022 (German-American Heritage Month Proclamation)

Agenda Item: 1

CITY OF SANTA CLARITA

AGENDA REPORT

PUBLIC HEARINGS
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: IMPLEMENTATION AND FINANCING OF THE CITY’S ENERGY

INFRASTRUCTURE MODERNIZATION PROGRAM AND THE

SANTA CLARITA PFA LEASE REVENUE BONDS - ENERGY
EFFICIENCY PROGRAM SERIES 2022A (GREEN BONDS) AND
SERIES 2022B (GREEN BONDS)
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller

RECOMMENDED ACTION
City Council:

1. Conduct a public hearing.

2. Adopt a resolution to make certain findings and approve the implementation and financing of the City’s Energy Infrastructure Modernization Program in accordance with Government Code Sections 4217.10 through 4217.18.

3. Award the City’s Energy Infrastructure Modernization Program Installation Agreement to Climatec LLC in an amount not to exceed $35,129,467.

4. Appropriate $35,129,467 from the Facilities Fund (723) to Energy Efficiency Expenditure Account R0033723-516101.

5. Award the City’s Energy Infrastructure Modernization Measurement and Verification Agreement to Climatec LLC upon completion and acceptance of the project in an annual amount not to exceed $28,000.

6. Appropriate funding from the General Fund (100) to Neighborhood Services Expenditure Account 1007000-516102 for guaranteed savings measurement and verification in the amount of $28,000 annually in Fiscal Year 2024-25 through Fiscal Year 2026-27; contingent upon the appropriation of funds in the annual budget for such fiscal years. 1 Packet Pg. 10

7. Adopt a resolution approving the issuance of the Santa Clarita Public Financing Authority Lease Revenue Bonds (Energy Efficiency Program), Series 2022A (Green Bonds) and Lease Revenue Bonds (Energy Efficiency Program), Series 2022B (Green Bonds), in the aggregate principal amount not to exceed $25,000,000, approving the execution and delivery of an amendment to two lease agreements, a Continuing Disclosure Certificate, two Bond Purchase Agreements, a Preliminary Official Statement, a Final Official Statement and Sale Documents; approving the retention of certain professional firms; and authorizing the taking of certain actions in connection therewith.

8. Adopt a resolution declaring the intent to reimburse certain expenditures from the proceeds of tax-exempt obligations expected to be issued to finance energy efficiency improvements buildings, and facilities as required by United States Department of Treasury Regulations Section 1.150-2.

9. Adopt a resolution authorizing the application for an Energy Efficiency Loan from the California Energy Commission to implement energy efficiency measures in the amount not to exceed $3,000,000 and authorizing the execution and delivery of a loan agreement, Promissory Note and Tax Certificate; and authorizing the taking of certain actions in connection therewith.

10. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

Public Financing Authority:

1. Adopt a resolution approving the issuance of the Santa Clarita Public Financing Authority Lease Revenue Bonds (Energy Efficiency Program), Series 2022A (Green Bonds) and Lease Revenue Bonds (Energy Efficiency Program), Series 2022B (Green Bonds), in the aggregate principal amount not to exceed $25,000,000, approving the execution and delivery of two supplemental indentures, amendments to two lease agreements, two Bond Purchase Agreements, a Preliminary Official Statement, a Final Official Statement; and authorizing the taking of certain actions in connection therewith.

BACKGROUND

As part of the Santa Clarita 2025 Strategic Plan, the City Council identified a goal of completing energy efficiency upgrades to all City of Santa Clarita (City) facilities. The intent of completing these upgrades is to save money, reduce greenhouse gas emissions, and meet growing energy demand. By investing in efficient infrastructure, the City will achieve substantial long-term energy cost savings and demonstrate environmental leadership.

To achieve this objective, a Request for Proposals (RFP) was posted on BidNet on June 14, 2021, seeking a qualified energy service company capable of developing and implementing projects that are consistent with the City’s desire to deliver the best and most cost-efficient municipal services. The RFP asked firms to identify their relevant experience in similar projects and demonstrate their implementation approach to the project.

1 Packet Pg. 11

Fifty-three consulting firms downloaded the RFP, and the City received proposals from five consultants on July 29, 2021. An evaluation team consisting of five City staff members, representing divisions across the organization, reviewed the proposals and scored the firms.

Climatec LLC’s (Climatec) proposal, interview, and references demonstrated their reputable qualifications for the project. Furthermore, Climatec demonstrated that it can provide quality service, sustained efficiencies, and energy cost savings expected by the City.

On November 9, 2021, the City Council awarded a Professional Services Agreement to Climatec for the development of comprehensive energy and water infrastructure modernizations throughout City facilities and parks. The objectives of the program are to:

• Revitalize aging infrastructure
• Enhance economic vitality by mitigating rising utility and operational costs • Promote sustainability through renewable energy and smart technologies

Over the past nine months, staff has been working with Climatec to analyze the City’s utility usage and conduct a Citywide assessment of aging infrastructure in the following areas:

• Heating, Ventilation and A/C (HVAC) • Water conservation • Interior and Exterior Lighting • Irrigation
• Sports Field Lighting • Pools
• Building Automation Systems (BAS) • Solar
• Windows • Backup power
• Roofing • Battery storage

Program Benefits
Staff recommends implementing this program for operational, financial, and environmental reasons. Operationally, many of the proposed projects will address critical infrastructure that is past its useful life. The program also promotes operational efficiencies by modernizing and centralizing the outdated systems that control irrigation equipment at City parks and HVAC equipment at City facilities.

This proposed program maximizes operational efficiency by addressing infrastructure needs much faster than the City’s typical Capital Improvement Program. If the City were to manage these projects through its typical Capital Improvement process, staff anticipates that it would take approximately five years to complete. However, through this program, all of the projects will be managed by Climatec and be completed within 18 to 24 months.

Financially, this program will result in utility savings that will generate a guaranteed return on investment. The energy savings realized by solar will generate approximately 66 percent of the project’s guaranteed savings. Additionally, installation of solar infrastructure at City facilities now will allow the City to be grandfathered into the Net Energy Metering (NEM) 2.0 program, which allows the City to receive bill credits for the excess electricity that the solar panels will produce.

Beyond its operational and financial benefits, this program demonstrates the City’s commitment 1 Packet Pg. 12

to environmental stewardship. If implemented, this project will result in the reduction of greenhouse gas emissions (CO2) by 3,322 metric tons per year, which is the equivalent of 716 gas-powered cars taken off the road each year.

Detailed Scope of Work
The analysis of City facilities identified opportunities for Energy Conservation Measures (ECM) at 36 different sites. Most of the sites are proposed to receive high efficiency HVAC modernizations, modern BAS, and lighting upgrades. Some of the sites will receive solar energy generating structures in the parking lots. In addition to those improvements, The Cube will receive a new roof and high efficiency improvements to the ice refrigeration system. Below is a summary of the detailed scope of work throughout all of the facilities:
• High Efficiency HVAC at 15 sites • Ventilation and filtration improvements • BAS at 24 sites • Existing BAS integration at one site • Sports field LED lighting at seven sites • Interior LED lighting at 27 sites • Exterior LED lighting at 36 sites • Occupancy sensors at 30 sites • Roof replacement at one site • Window film at two sites • Solar at six sites • Solar thermal water heating at three sites • Battery storage systems at two sites • Smart irrigation controllers at 24 sites • Efficient water heaters at one site • Upgraded ice rink refrigeration • New dehumidification system • Ice Purification System • Efficient transformers at 14 sites
Each ECM has a cost associated with it as shown in the table below. The total cost, inclusive of financing, is $46,538,667, compared to estimated utility and operational savings of $46,592,955, of which $35,129,467 is contractually guaranteed by Climatec over the useful life of the equipment. Guaranteed savings will be measured and verified annually as identified in the proposed Measurement and Verification Agreement.

Project Costs
Heating, Ventilation and A/C $5,527,360
Building Automation Systems 1,112,286
Interior and Exterior Lighting 3,046,768
Sports Field Lighting 5,534,786
Building Envelope (Window Film) 181,118
Building Envelope (New Roof) 2,562,040
Smart Irrigation System 831,300
Ice Rink Refrigeration 4,671,218
Transformers 752,865
Solar PV 8,541,583
Energy Storage 2,004,379
Pool Solar Thermal 363,764
Climatec Project Cost $35,129,467
Financing Cost 11,409,200
Total Cost of Project $46,538,667
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Projected Savings
Utility Savings (Energy Efficiency Measures) 7,942,787 Utility Savings (Solar) 23,039,330
Operational Savings 10,452,230
Inflation Savings for Capital Projects 5,158,608
Total Estimated Savings $46,592,955
In the event that the annual savings does not meet the Guaranteed Project Savings in accordance with the Measurement and Verification Agreement, then Climatec is obligated to repair, replace, or substitute the ECM that is not performing to the required level at Climatec’s sole expense within twelve months. If, after the opportunity to make corrections, the verified savings are less than the Guaranteed Project Savings, then Climatec must pay the City the shortfall amount.

The action today by the City is to hold a public hearing regarding the proposed implementation and financing of the City’s Energy Infrastructure Modernization Program, the cost of which is less than the anticipated marginal cost of thermal, electrical, or other energy that would have been consumed in the absence of the program. At the conclusion of the public hearing, City Council will consider adoption of the resolution to make certain findings, and approve the implementation and financing of the City’s Energy Infrastructure Modernization Program.

Program Financing
Staff is recommending entering into the agreement with Climatec to implement and manage the $35 million Energy Efficiency Program. The City’s intent is to finance the energy efficiency improvements for City buildings and facilities, including but not limited to, HVAC, lighting, water conservation, solar, and refrigeration improvements (the “Project”), through a combination of cash, tax-exempt bond financing and a $3 million California Energy Commission (CEC) loan.

Additionally, with the recent passage of the Federal Inflation Reduction Act, the Clean Electricity Tax Credit Provisions are being closely monitored by staff and Climatec. Depending on the final rules, the City may be able to access funds that would reduce the City’s capital outlay.

California Energy Commission (CEC Loan)
Staff is recommending the City approve a resolution authorizing the application for an energy efficiency loan from the CEC to implement energy efficiency measures in the amount not to exceed $3 million, and authorizing the execution and delivery of a Loan Agreement, Promissory Note and Tax Certificate, and other actions related thereto. If approved as expected, the loan proceeds of $3 million will be available to reimburse a portion of the cash contributed to the cost of the Project. The CEC loan is advantageous since it offers a 20-year fixed one percent low interest rate when compared to the current market interest rate of 4.27 percent.

Bond Issuance
The structure of the proposed tax-exempt bond financing will be identical to the City’s other General Fund backed bond debt. The City’s Public Financing Authority (PFA) will issue lease revenue bonds secured by a lease of City property. Staff reviewed all available City facilities and it was determined that The Cube and City Hall would be best since both properties already have 1 Packet Pg. 14

lease secured bond financing and there are provisions under both bond issues that allow for additional bonds. Additionally, a significant amount of the energy efficiency improvements will benefit and improve these two properties. Existing financing include the Recreational Facility Lease for the tax-exempt and taxable lease revenue bonds issued in 2020 for acquisition of The Cube (the “2020 Bonds”) and the City Hall Lease for the lease revenue bonds for Golden Valley Road related judgment refinanced in 2016 (the “2016 Bonds”). The 2020 Bonds will mature in 28 years, in June 2050 and the 2016 Bonds will mature in 13 years, in December 2035.

It is estimated that the total cost of the Project is $35.129 million. Approximately $15 million will be funded with cash initially with $3 million to be reimbursed from a CEC Loan, if approved. The remaining amount of approximately $20 million would be financed through the issuance of tax-exempt lease revenue bonds under the two existing Recreational Facility Lease and the City Hall Lease. The City’s PFA will issue its lease revenue bonds (Energy Efficiency Program) (the “Bonds”) in two bond series, one series as additional bonds under the Recreational Facility Lease, designated as “Lease Revenue Bonds (Energy Efficiency Program) Series 2022A” (the “2022A Bonds”) and one series as additional bonds under the City Hall Lease, designated as “Lease Revenue Bonds (Energy Efficiency Program) Series 2022B” (the “2022B Bonds”). The 2022A Bonds would be parity to the 2020 Bonds and payable from increased base rental payments under the Recreational Facility Lease. The 2022B Bonds would be parity to the 2016 Bonds and payable from increased base rental payments under the City Hall Lease.

The proposed debt structure of the Series 2022A and B Bonds is designed to match the existing debt maturity of the prior 2020 Bonds and the 2016 Bonds. The Series 2022A Bonds and the 2020 Bonds will both mature in 2050 and the Series 2022B Bonds and the 2016 Bonds will both mature in 2035. Debt service on all bonds will be level. In 2035 the City Hall, which is encumbered by the 2016 Golden Valley Road debt, will be free and clear of all debt.

Proceeds of the Bonds will be held by the bond trustee and used to pay Climatec for a portion of the Project. The PFA and the City will enter into a first amendment to each existing lease (each a “First Amendment to Lease”) which will increase the base rental payments to pay for the increased debt service due to the additional Series 2022 A and B bonds. Under the PFA bond structure, the City has leased the Recreational Facility to the PFA pursuant to a Site and Facility Lease, and the PFA has lease-backed the Recreational Facility to the City pursuant to a Lease Agreement. The City will make Base Rental Payments from the City’s General Fund for use of the Recreational Facility. The new Base Rental Payments will be equal to the debt service on the 2022A Bonds and the 2020 Bonds. Likewise, under the PFA bond structure, the City has leased the City Hall to the PFA pursuant to a Site and Facility Lease, and the PFA has lease-backed the City Hall to the City pursuant to a Lease Agreement. The City will make Base Rental Payments from the City’s General Fund for use of the City Hall. The new Base Rental Payments will be equal to the debt service on the 2022B Bonds and the 2016 Bonds. The PFA transfers the Base Rental Payments to the bond trustee to pay bond holders. No bond reserve fund is contemplated for either the 2022A Bonds or the 2022B Bonds. The PFA bond structure is widely used in California and is identical to the structure used in the City’s other general fund financings, including the issuance of the Sheriff’s Station Project, Series 2019 Bonds, the 2020 Recreational Facility Project Bonds, and the 2016 Golden Valley Road Bonds discussed herein.

The proposed Bonds are expected to be rated by Standard and Poor’s Corporation and are 1 Packet Pg. 15

expected to be sold with “AA+” category bond ratings. A Request for Proposal (RFP) was sent out to bond underwriters with relevant experience and four proposals were received. The City’s Financing Team reviewed the proposals and scored the firms. The firm, Stifel, Nicolaus & Company, Incorporated, was selected as their proposal demonstrated their reputable qualifications including California lease revenue bond experience, bond structuring, and staffing for the project. Bonds are proposed to be sold through a negotiated sale with the selected underwriter in October with closing scheduled for later in that month. The proposed term of the 2022A Bonds is 28 years and the payments are expected to be level. The proposed term of the 2022B Bonds is 13 years and the payments are expected to be level. The final interest cost on the Bonds will depend on market interest rates at time of sale.

The current estimated all in true interest cost for the 2022A Bonds is 4.43 percent. The estimated all in true interest cost for the 2022B Bonds is 3.69 percent. The bond markets have been relatively stable at the present time but final bond interest rates may be higher or lower depending on interest rates at time of sale. The Bonds are expected to be sold with the standard eight years of bond call protection and will be redeemable beginning in 2030.

The public disclosures required under SB 450, effective January 1, 2018, are incorporated herein.

The estimates have been determined as of September 12, 2022. Specifically:

Energy Efficiency Program - 2022A Bonds
1) The all-in true interest cost of the bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of bonds is estimated to be 4.43 percent. 2) The finance charge of the bonds, which means the sum of all fees and charges paid to third parties is estimated to be $241,073. Bond insurance premiums, which lower interest cost in excess of the fees charged, are estimated to be $0. Such insurance is not expected to be cost effective.
3) The amount of proceeds received by the public body for sale of the bonds less the finance charge of the bonds described and any reserves or capitalized interest paid or funded with proceeds of the bonds is estimated to be $13,081,473. 4) The total payment amount, which means the sum total of all payments the borrower will make to pay debt service on the bonds plus any finance charge of the bonds not paid with the proceeds of the bonds. The total payment amount calculated to the final maturity of the bonds is estimated to be $22,675,950.

Energy Efficiency Program -2022B Bonds
5) The all-in true interest cost of the bonds, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the new issue of bonds is estimated to be 3.69 percent. 6) The finance charge of the bonds, which means the sum of all fees and charges paid to third parties is estimated to be $109,412. Bond insurance premiums, which lower interest cost in excess of the fees charged, are estimated to be $0. Such insurance is not expected to be cost effective.
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7) The amount of proceeds received by the public body for sale of the bonds less the finance charge of the bonds described and any reserves or capitalized interest paid or funded with proceeds of the bonds is estimated to be $6,484,672. 8) The total payment amount, which means the sum total of all payments the borrower will make to pay debt service on the bonds plus any finance charge of the bonds not paid with the proceeds of the bonds. The total payment amount calculated to the final maturity of the bonds is estimated to be $8,299,395.

At the conclusion of the public hearing, City Council and the PFA will consider adoption of the resolutions authorizing the issuance of the Bonds. A resolution for each of the City and the PFA is attached and would authorize the issuance of a not to exceed amount of $25,000,000 in aggregate 2022A Bonds and 2022B Bonds. Final sizing will be determined at time of bond sale.

The Bonds will be sold on a negotiated basis. The resolution also approves the various documents in connection with the issuance of the Bonds. The City resolution also approves the appointment of a) Columbia Capital Management LLC, as Municipal Advisor, b) Norton Rose Fulbright US LLP, as Bond and Disclosure Counsel, (c) U.S. Bank National Association, as Trustee, and (d) Digital Assurance Certification as dissemination agent.

General Summary of Security: The Bonds are secured by the revenues from the Base Rental Payments payable from the City’s General Fund. The City covenants in each Lease to make annual appropriations for the Base Rental Payments under each Lease, subject to abatement for nonuse of the project. Potential investors will look closely at the strengths and weaknesses of the City’s General Fund and essentiality of the project. The financing documents are described below.

First Supplemental Indentures and Indentures: Key legal document that lays out the legal structure and terms of the financing of the 2022A Bonds and the 2022B Bonds, as applicable.

Revenues received from each Lease Agreement are assigned to the trustee to make debt service payments on the applicable Bonds. The First Supplemental Indenture and Indenture specifies payment dates, maturity dates of the applicable Bonds; revenues and accounts specifically pledged to the repayment of the applicable Bonds; the project fund; flow of funds, default and remedy provisions; redemption and defeasance provisions in the event the applicable Bonds are prepaid or redeemed early; and covenants of the issuer. It is drafted by Bond Counsel and executed by the PFA and U.S. Bank National Association, as trustee.

First Amendment to Lease Agreements and Lease Agreements: Document in which the City agrees to leaseback the site and facility from the PFA. It specifies amount and dates of the Base Rental Payments, including the increased Base Rental Payments relating to the additional bonds; covenant to appropriate the Base Rental Payments; flow of funds; default and remedy provisions; prepayment provisions; and covenants of the City regarding use of the project and funds pledged to the payment of the Base Rental Payments. The document is drafted by Bond Counsel and executed by the City and PFA.

Continuing Disclosure Certificate: This undertaking outlines the updated information related to the security that the City will agree to provide to the bond markets. Disclosure is required annually and on an exceptional basis for any major “material” event. This document is drafted by Bond Counsel and executed by the City.
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Bond Purchase Agreements: Each Bond Purchase Agreement is the contract among the PFA, the City and the Underwriter, pursuant to which the Underwriter agrees to buy the applicable Bonds when issued, subject to certain termination events, for resale to investors. The bond sale is scheduled for October, with a closing in the latter part of October. The document is drafted by underwriter’s counsel, reviewed by City staff, City Attorney and Bond Counsel, and executed by the City, PFA and the underwriter, Stifel, Nicolaus & Company, Incorporated.

Preliminary Official Statement (POS): The POS is the “offering document” for the Bonds. The City and the PFA have an obligation to ensure that the POS includes all information that would be material to a prospective investor’s decision whether to purchase the Bonds. The POS describes the terms of the bonds, the pledged revenues, the PFA and City, investor risk and other information for potential investors. While the City’s legal counsel, consultants, and the staff have participated in preparing the POS, the City/PFA and staff are ultimately responsible for ensuring that the POS is accurate, contains no misleading information, and does not omit any information necessary to make the POS not misleading to investors.

Reimbursement Resolution: The City, or its related entity, the Santa Clarita Public Financing Authority, intends to issue one or more series of tax-exempt bonds (the “Obligations”), to finance a portion of the Project. Certain expenditures with respect to the Project are expected to be paid by the City prior to the date of issuance of the Obligations. The proposed resolution would allow for the City to be reimbursed for such expenditures. Section 1.150-2 of the Treasury Regulations (the “Treasury Regulations”) promulgated under the Internal Revenue Code of 1986, as amended, requires that for an allocation of proceeds of tax-exempt obligations to a capital expenditure paid prior to the issuance of the obligations to be respected by the Internal Revenue Service, the City generally must no later than sixty (60) days following such expenditures have declared their reasonable official intent to reimburse the City for such payment out of the proceeds of the obligations. The proposed resolution would evidence the City’s reasonable official intent for purposes of the Treasury Regulations. The resolution is adopted only for the purpose of establishing compliance with the requirements of the Treasury Regulations. It does not obligate the City to make any expenditure or proceed with the Project or obligate the City to issue any Obligations.

More specific details of the financing can be found in the drafts of the documents referenced above. The documents being recommended for approval are available in the office of the City Clerk.

ALTERNATIVE ACTION

Other action as determined by the City Council.

FISCAL IMPACT

Upon approval of the recommended action, $35,129,467 will be available in Energy Efficiency Expenditure Account R0033723-516101 for the City’s Energy Infrastructure Modernization Program Installation, funded by bond proceeds ($19,775,512) and cash ($15,353,955). Climatec 1 Packet Pg. 18

contractually guarantees savings in the amount of $35,129,467 over the useful life of the equipment. These savings will be measured and verified per the Measurement and Verification agreement. The total estimated operating budget savings is expected to offset the bond debt service.

ATTACHMENTS
Notice of Public Benefit Hearing
Resolution Energy Infrastructure Modernization Program
Resolution City Approving Bond Issuance
Resolution Public Financing Authority Approving Bond Issue Resolution Reimbursement
Resolution California Energy Commission Loan
Energy Infrastructure Modernization Program Installation Agreement (available in the City Clerk’s Reading File)
Energy Infrastructure Measurement and Verification Agreement (available in the City Clerk’s Reading File)
Form of CEC Loan Agreement (available in the City Clerk’s Reading File) Form of First Supplemental Indenture along with copy of 2020 Indenture – Series 2022A (available in the City Clerk’s Reading File)
Form of First Supplemental Indenture along with copy of 2016 Indenture – Series 2022B (available in the City Clerk’s Reading File)
Form of First Lease Amendment along with copy of CUBE Lease – Series 2022A (available in the City Clerk’s Reading File)
Form of First Lease Amendment along with copy of City Hall Lease – Series 2022B (available in the City Clerk’s Reading File)
Form of Bond Purchase Agreement – Series 2022A Bonds (available in the City Clerk’s Reading File)
Form of Bond Purchase Agreement – Series 2022B Bonds (available in the City Clerk’s Reading File)
Form of Continuing Disclosure Certificate (available in the City Clerk’s Reading File) Form of Preliminary Official Statement (available in the City Clerk's Office) 1 Packet Pg. 19

CITY OF SANTA CLARITA

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a Public Hearing will be held by the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, 1st floor, Santa Clarita, California, at or after 6 p.m. on September 27, 2022, regarding two items. The first is the proposed implementation and financing of the City’s Energy Infrastructure Modernization Program, pursuant to Government Code section 4217.12, for the Council to review the findings that demonstrate the cost of the City’s Energy Infrastructure Modernization Program will be less than the anticipated marginal cost of thermal, electrical, or other energy that would have been consumed in the absence of those purchases.

The second item is in regards to the proposed issuance of Lease Revenue Bonds (Energy Efficiency Program) Series 2022A (Green Bonds) (the “Series A Bonds”) and Lease Revenue Bonds (Energy Efficiency Program) Series 2022B (Green Bonds) (the “Series B Bonds,” and together with the Series A Bonds, the “Bonds”), by the Santa Clarita Public Financing Authority pursuant to Section 6586.5(a)(2) of the Government Code of the State of California. The Bond proceeds are expected to be applied to finance certain energy efficiency improvements for City buildings and facilities, including but not limited to, HVAC, lighting, water conservation, solar, and refrigeration improvements.

At the hearing, the testimony either for or against the above items of all interested persons will be heard. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Council at or prior to the public hearing.

For further information concerning the Energy Infrastructure Modernization Program, contact Darin Seegmiller, Environmental Services Manager, at (661)255-4930 or via email [email protected]. Persons seeking information concerning the issuance of Bonds should contact Johanna Medrano, Management Analyst, at (661) 255-4338 or via email [email protected].

Persons who require accommodation for any audio, visual or other disability in order to participate in a public hearing of the City Council may obtain assistance by requesting such accommodation in writing addressed to the City Clerk, 23920 Valencia Boulevard, Santa Clarita, 91355, or by calling (661) 255-4391. Any such request for accommodation should be made at least 48 hours prior to the scheduled meeting for which assistance is requested. Furthermore, notice of the aforementioned hearing was posted on September 13, 2022 at City Hall.

Dated: September 13, 2022
Mary Cusick, MMC
City Clerk
Publish Date: September 16, 2022

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Attachment: Notice of Public Benefit Hearing (CITYWIDE ENERGY EFFICIENCY PROGRAM)

RESOLUTION NO. 22 -______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AUTHORIZATION FOR IMPLEMENTING AND FINANCING THE CITY’S

ENERGY INFRASTRUCTURE MODERNIZATION PROGRAM PURSUANT TO GOVERNMENT CODE SECTION 4217.10-18, MAKING CERTAIN FINDINGS

AND AUTHORIZING RELATED ACTIONS
WHEREAS, the City of Santa Clarita (City) finds it to be in the best interests of the City to implement projects to promote energy efficiency and renewable energy to achieve utility budget cost reductions; and
WHEREAS, Government Code sections 4217.10 through 4217.18 authorizes the City Council to enter into one or more agreements with any person or entity if the anticipated cost to the City for thermal or electrical energy or conservation services provided under the contract is less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City in the absence of the program (Savings); and WHEREAS, Government Code sections 4217.10 through 4217.18 require that a public hearing be held, and public comment be taken, at a regularly scheduled meeting of the City Council, at which meeting the City Council may consider and adopt the findings described herein and authorize implementation and financing of the City’s Energy Infrastructure Modernization Program, and that notice thereof must be given at least two weeks prior to the meeting; and
WHEREAS, the City gave notice of its intent to conduct a public hearing and take public comment upon the subject matter of this resolution two weeks prior to the regularly scheduled public meeting at which the City Council has held a public hearing and taken public comment and has now considered this resolution, all as required under Government Code sections 4217.10 through 4217.18; and
WHEREAS, the City Council and City staff reviewed the qualifications and competitive proposal submitted by Climatec LLC(Climatec) via Request for Proposals (RFP) for Citywide Energy Efficiency Upgrades conducted in July 2021 and found Climatec’s qualifications to appear bona fide and adequate; and
WHEREAS, Climatec assessed the feasibility of various potential energy conservation and modernization measures to reduce the City’s energy consumption and expense and recommended specific energy conservation measures based thereon (Analysis as set forth in Exhibit A) upon which the City Council and City Staff have relied; and WHEREAS, Climatec has offered to implement the City’s Energy Infrastructure Modernization Program for the price stated therein; and WHEREAS, the Analysis demonstrates that the cost for energy infrastructure modernizations provided under the agreements is less than the anticipated marginal cost to the

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

City of thermal, electrical, or other energy that would have been consumed in the absence of the program. (Savings).

NOW THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. Recitals. All of the recitals herein contained are true and correct.

SECTION 2. Agreement Findings. The City Council finds that the cost of the Agreements for the energy infrastructure modernization services provided by Climatec thereunder is less than the anticipated marginal cost of thermal, electrical, or other energy that would have been consumed in the absence of the program and that it is in the best interest of the City to approve and enter into the Agreements with Climatec.

SECTION 3. Agreement Approval. The forms of the Agreements by and between the City and Climatec, in the forms on file with the Clerk of the Council, are hereby approved, subject to final approval by the City Manager and City Attorney. The City Manager is hereby authorized and directed, for and in the name of and on behalf of the City, to execute and deliver to Climatec the Agreements and related documents as necessary to carry out the energy infrastructure modernization program contemplated therein, subject to such minor changes thereto as the City Manager may require and approve.

SECTION 4. Financing Agreements Approval. The forms of the Financing Agreements, in the forms on file with the Clerk, are hereby approved, subject to final approval by the City Manager and City Attorney. The City Manager is hereby authorized and directed, for and in the name of and on behalf of the City, to execute and deliver the associated financing agreements and related documents as necessary to carry out the financing transactions contemplated therein, subject to such minor changes thereto as the City Manager may require and approve, with the approval of the City Attorney.

SECTION 5. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this 27th day of September 2022. ______________________________
MAYOR
ATTEST:
_____________________________

CITY CLERK
DATE:__________________________

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22-_______ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of September 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

CITY CLERK

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

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Attachment: Resolution Energy Infrastructure Modernization Program (CITYWIDE ENERGY EFFICIENCY PROGRAM)

RESOLUTION NO. 22-________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

CLARITA, CALIFORNIA, APPROVING THE ISSUANCE OF THE SANTA

CLARITA PUBLIC FINANCING AUTHORITY LEASE REVENUE BONDS
(ENERGY EFFICIENCY PROGRAM), SERIES 2022A (GREEN BONDS) AND SERIES 2022B (GREEN BONDS), IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000, APPROVING THE EXECUTION

AND DELIVERY OF AMENDMENTS TO TWO LEASES, A CONTINUING

DISCLOSURE CERTIFICATE, A PRELIMINARY OFFICIAL STATEMENT,

A FINAL OFFICIAL STATEMENT AND TWO BOND PURCHASE
AGREEMENTS; APPROVING THE RETENTION OF CERTAIN
PROFESSIONAL FIRMS; AND AUTHORIZING THE TAKING OF CERTAIN

ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the Government Code of the State of California (Act), the City of Santa Clarita, California (City), and the Redevelopment Agency of the City of Santa Clarita have heretofore entered into that certain Joint Exercise of Powers Agreement, dated as of July 9, 1991, and as amended on May 10, 2016, by and among the City, the City as successor agency to the Redevelopment Agency of the City of Santa Clarita, and the Santa Clarita Parking Authority, relating to the Santa Clarita Public Financing Authority (Authority), for the purpose, among other things, of issuing its bonds to be used to provide financing and refinancing for public capital improvements of the City; and
WHEREAS, the City desires to finance certain energy efficiency improvements for City buildings and facilities, including but not limited to, HVAC, lighting, water conservation, solar, and refrigeration improvements (the “Project”); and
WHEREAS, in October 2020 the Authority assisted the City with financing the acquisition of a parcel of land and improvements to be used for recreational facilities by the issuance of its $10,645,000 Lease Revenue Bonds (Recreational Facility), Series 2020A and its $3,625,000 Federally Taxable Lease Revenue Bonds (Recreational Facility) Series 2020A-T (collectively, the “2020 Bonds”), pursuant to the Bond Law, and an Indenture dated as of October 1, 2020 (the “2020 Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association (formerly US Bank National Association), as trustee (Trustee), secured by lease payments under a Lease Agreement dated as of October 1, 2020 (the “Cube Lease”) by and between the Authority, as lessor and the City, as lessee, of land and improvements located at property located at 27745 Smyth Drive within the City (the “Cube Leased Property”); and WHEREAS, in June 2016 the Authority assisted the City with refinancing the acquisition of right-of-way for a portion of Golden Valley Road by the issuance of its $10,320,000 Lease Revenue Bonds (Golden Valley Road), Series 2016A (the “2016 Bonds”), pursuant to the Marks-Roos Local Bond Pooling Act of 1985 (the “Bond Law”), constituting Article 4 (commencing with Section

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6584) of the Act, and an Indenture dated as of June 1, 2016 (the “2016 Indenture”), by and between the Authority and the Trustee, secured by lease payments under a Lease Agreement dated as of June 1, 2016 (City Hall Lease) by and between the Authority, as lessor and the City, as lessee, of certain real property and the improvements thereon, more commonly known as the Santa Clarita City hall, located at 23920 Valencia Boulevard, Santa Clarita (City Hall Leased Property); and WHEREAS, the 2016 Indenture provides for the issuance of additional bonds and the amendment of 2016 Lease to increase base rental payments thereunder; and WHEREAS, the 2020 Indenture provides for the issuance of additional bonds and the amendment of 2020 Lease to increase base rental payments thereunder; and WHEREAS, the City has requested that the Authority issue its (a) Lease Revenue Bonds (Energy Efficiency Program) Series 2022A (Green Bonds) (the “Series A Bonds”) as Additional Bonds on parity with the 2020 Bonds and (b) Lease Revenue Bonds (Energy Efficiency Program) Series 2022B (Green Bonds) (the “Series B Bonds,” and together with the Series A Bonds, the “Bonds”) as Additional Bonds on parity with the 2016 Bonds, for the purpose of financing the costs of the Project and to pay for the costs of issuing the Bonds; and WHEREAS, it is proposed that the Authority and the Trustee enter into a first supplemental indenture with respect to each of the 2020 Indenture and the 2016 Indenture (collectively, the “Supplemental Indentures”), and the City and the Authority enter into an amendment to each of the CUBE Lease and the City Hall Lease (collectively, the “Lease Amendments”); and WHEREAS, the Series A Bonds are to be issued pursuant the 2020 Indenture, as supplemented by a First Supplemental Indenture (collectively, the “Series A Indenture”), each by and between the Authority and the Trustee; and
WHEREAS, the Series B Bonds are to be issued pursuant the 2016 Indenture, as supplemented by a First Supplemental Indenture (collectively, the “Series B Indenture”), each by and between the Authority and the Trustee; and
WHEREAS, as a condition precedent to the Bonds to provide financing for the Project, Section 6586.5 of the California Government Code requires that the City approve the proposed financing by the Authority and that the City make certain findings with respect to such financing, as hereinafter set forth, and said Section 6586.5 further requires that such approval be given and findings be made only after noticed public hearing thereon; and WHEREAS, as required by Section 6586.5, the City has caused publication of a notice of a public hearing on the financing of the Project once at least five days prior to the hearing in a newspaper of general circulation in the City; and
WHEREAS, this City Council held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing the Project; and WHEREAS, Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (SB450) requires that the governing body of a public body obtain prior to authorizing

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Attachment: Resolution City Approving Bond Issuance (CITYWIDE ENERGY EFFICIENCY PROGRAM)

the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, (c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and (d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, it is proposed that each series of the Bonds be sold through a negotiated sale in accordance with the terms of a Bond Purchase Agreement (each, a “Bond Purchase Agreement”) to be entered into by the Authority, the City and the underwriter, the proposed forms of which has been presented to this City Council; and
WHEREAS, to fulfill the requirements of Rule 15c2-12 (as defined herein), the City will enter into Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”), with respect to the Bonds, whereby the City will agree to provide disclosure reports and notices of certain enumerated events pursuant to the Rule; and
WHEREAS, there have been presented to this meeting the proposed forms of the following documents:
(a) First Amendment to the Cube Lease (Cube Lease Amendment); (b) First Amendment to the City Hall Lease (City Hall Lease Amendment); (c) Continuing Disclosure Certificate;
(d) Preliminary Official Statement;
(e) Bond Purchase Agreement – Series A Bonds; and
(f) Bond Purchase Agreement – Series B Bonds.

WHEREAS, the City Council has reviewed the documentation related to the issuance of the Bonds, which documentation is on file with the City Clerk of the City.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. Recitals. All of the above recitals are true and correct and the City Council so finds.

SECTION 2. Public Benefit. The City Council hereby finds and determines that the issuance of the Bonds will result in significant public benefits within the contemplation of Section 6586 of the Act.

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Attachment: Resolution City Approving Bond Issuance (CITYWIDE ENERGY EFFICIENCY PROGRAM)

SECTION 3. Approval of the Bonds. The City hereby approves the issuance by the Authority of Series A Bonds and Series B Bonds in an aggregate amount not to exceed $25,000,000.

SECTION 4.Approval of Series A Bonds. The City hereby approves the issuance by the Authority of the Series A Bonds as additional bonds under the Series A Indenture to finance a portion of the costs of the Project and to pay for the costs of issuing the Series A Bonds.

SECTION 5. Approval of Cube Lease Amendment. The Cube Lease Amendment, in substantially the form on file with the City Clerk and presented to the City Council at this meeting, is hereby approved. Any one of the Mayor, the City Manager of the City, the Assistant City Manager or City Treasurer (each, an “Authorized Officer”), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Cube Lease Amendment, with such revisions, amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by such execution and delivery thereof, and the City Clerk is hereby authorized to attest to such execution.

SECTION 6. Approval of Series B Bonds. The City hereby approves the issuance by the Authority of the Series B Bonds as additional bonds under the Series B Indenture to finance a portion of the costs of the Project and to pay for the costs of issuing the Series B Bonds.

SECTION 7. Approval of City Hall Lease Amendment. The City Hall Lease Amendment, in substantially the form on file with the City Clerk and presented to the City Council at this meeting, is hereby approved. Any Authorized Officer is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the City Hall Lease Amendment, with such revisions, amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by such execution and delivery thereof, and the City Clerk is hereby authorized to attest to such execution.

SECTION 8. Approval of the Preliminary Official Statement and the Official Statement.

The Preliminary Official Statement, in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved with such revisions, amendments and completions as shall be approved by an Authorized Officer to make the Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations (“Rule 15c2- 12”). Any Authorized Officer is authorized to execute a certificate relating to the finality of the Preliminary Official Statements under Rule 15c2-12. Any Authorized Officer is authorized and directed to execute and deliver the final Official Statement in substantially the form of the Preliminary Official Statement, with such additions and changes as may be approved by an Authorized Officer executing the same with the advice of Disclosure Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof.

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Attachment: Resolution City Approving Bond Issuance (CITYWIDE ENERGY EFFICIENCY PROGRAM)

SECTION 9. Approval of the Continuing Disclosure Certificate. The Continuing Disclosure Certificate, in substantially the form on file with the City Clerk of the City and presented to the City Council at this meeting, is hereby approved. Any Authorized Officer is hereby authorized to execute the Continuing Disclosure Certificate in substantially the form on file, with such revisions, amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof.

SECTION 10. Approval of each Bond Purchase Agreement. The City hereby approves each Bond Purchase Agreement in the forms thereof on file with the City Clerk. Any Authorized Officer is hereby authorized to execute a Bond Purchase Agreement with such revisions, amendments and completions as shall be approved by the Authorized Officer executing the same, with the advice of Bond Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by the execution and delivery thereof; provided that, (a) the Bond Purchase Agreement – Series A Bonds shall provide for a true interest cost (including original issue discount shown) not greater than 5.50 percent, and an underwriter’s discount not greater than 1.0 percent of the principal amount of Series A Bonds and (b) the Bond Purchase Agreement – Series B Bonds shall provide for a true interest cost (including original issue discount shown) not greater than 4.75 percent, and an underwriter’s discount not greater than 1.0 percent of the principal amount of Series B Bonds.

SECTION 11. Good Faith Estimates. In accordance with SB450, good faith estimates of the following have been presented to this meeting: (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds.

SECTION 12. Green Bond Designation. The City hereby self-designates the Bonds as “green bonds” given the nature of the Project as environmentally beneficial, and the City’s expectation that the proceeds of the Bonds will finance a portion of the Project.

SECTION 13. Official Actions. The Authorized Officers, the City Clerk and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all other actions, including the publication of any notices necessary or desirable in connection with the financing of the Project, the sale of the Bonds, procurement of municipal bond insurance and/or a reserve surety, and execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants, escrow instructions and other documents, which they, or any of them, deem necessary or advisable to consummate the lawful issuance and sale of the Bonds and the consummation of the transactions as described herein.

SECTION 14. Approval of Certain Financing Team Members. The City Council hereby approves the appointment of (a) Norton Rose Fulbright US LLP, to provide Bond Counsel and Disclosure Counsel services in connection with the Bonds, (b) Columbia Capital Management, LLC, as Municipal Advisor in connection with the Bonds, (c) U.S. Bank Trust Company, National

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Association, as Trustee, and (d) Digital Assurance Certification LLC, as Dissemination Agent, upon such terms and conditions as approved by any Authorized Officer.

SECTION 15. Ratification. All actions heretofore taken by any Authorized Officer or any officer, employee or agent of the City with respect to the issuance, delivery and sale of the Bonds or in connection with or related to any of the agreements referred to herein, are hereby approved, confirmed and ratified.

SECTION 16. Effective Date of Resolution. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED this 27th day of September 2022.

______________________________
MAYOR

ATTEST:

______________________________

CITY CLERK

DATE:_________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )

I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22- ______ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of September 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

______________________________

CITY CLERK

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Attachment: Resolution City Approving Bond Issuance (CITYWIDE ENERGY EFFICIENCY PROGRAM)

RESOLUTION NO. 22-________

A RESOLUTION OF THE BOARD OF THE SANTA CLARITA PUBLIC

FINANCING AUTHORITY AUTHORIZING THE ISSUANCE OF THE

SANTA CLARITA PUBLIC FINANCING AUTHORITY LEASE REVENUE
BONDS (ENERGY EFFICIENCY PROGRAM), SERIES 2022A (GREEN
BONDS) AND SERIES 2022B (GREEN BONDS), IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000, APPROVING THE

EXECUTION AND DELIVERY OF TWO SUPPLEMENTAL INDENTURES,

AMENDMENTS TO TWO LEASE AGREEMENTS, A PRELIMINARY

OFFICIAL STATEMENT, A FINAL OFFICIAL STATEMENT AND TWO
BOND PURCHASE AGREEMENTS; AND AUTHORIZING THE TAKING OF

CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the Government Code of the State of California (Act), the City of Santa Clarita, California (City), and the Santa Clarita Redevelopment Agency have heretofore entered into that certain Joint Exercise of Powers Agreement, dated as of July 9, 1991, and as amended on May 10, 2016, by and among the City, the City as successor agency to the Santa Clarita Redevelopment Agency, and the Santa Clarita Parking Authority, relating to the Santa Clarita Public Financing Authority (Authority), for the purpose, among other things, of issuing its bonds to be used to provide financing and refinancing for public capital improvements of the City; and WHEREAS, the City desires to finance certain energy efficiency improvements for City buildings and facilities, including but not limited to, HVAC, lighting, water conservation, solar, and refrigeration improvements (the “Project”); and
WHEREAS, in October 2020 the Authority assisted the City with financing the acquisition of a parcel of land and improvements to be used for recreational facilities by the issuance of its $10,645,000 Lease Revenue Bonds (Recreational Facility), Series 2020A and its $3,625,000 Federally Taxable Lease Revenue Bonds (Recreational Facility) Series 2020A-T (collectively, the “2020 Bonds”), pursuant to the Bond Law, and an Indenture dated as of October 1, 2020 (the “2020 Indenture”), by and between the Authority and U.S. Bank Trust Company, National Association (formerly US Bank National Association), as trustee (the “Trustee”), secured by lease payments under a Lease Agreement dated as of October 1, 2020 (the “Cube Lease”) by and between the Authority, as lessor and the City, as lessee, of land and improvements located at property located at 27745 Smyth Drive within the City (the “Cube Leased Property”); and WHEREAS, in June 2016 the Authority assisted the City with refinancing the acquisition of right-of-way for a portion of Golden Valley Road by the issuance of its $10,320,000 Lease Revenue Bonds (Golden Valley Road), Series 2016A (the “2016 Bonds”), pursuant to the Marks-Roos Local Bond Pooling Act of 1985 (the “Bond Law”), constituting Article 4 (commencing with Section 6584) of the Act, and an Indenture dated as of June 1, 2016 (the “2016 Indenture”), by and between the Authority and the Trustee, secured by lease payments under a Lease Agreement dated as of June 1, 2016 (City Hall Lease) by and between the Authority, as lessor and the City, as lessee, of certain real property and the improvements thereon, more commonly known as the Santa Clarita City hall, located at 23920 Valencia Boulevard, Santa Clarita (City Hall Leased Property); and

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

WHEREAS, the 2020 Indenture provides for the issuance of additional bonds and the amendment of the Cube Lease to increase base rental payments thereunder; and WHEREAS, the 2016 Indenture provides for the issuance of additional bonds and the amendment of the City Hall Lease to increase base rental payments thereunder; and WHEREAS, the City has requested that the Authority issue its (a) Lease Revenue Bonds (Energy Efficiency Program) Series 2022A (Green Bonds) (the “Series A Bonds”) as Additional Bonds on parity with the 2020 Bonds and (b) Lease Revenue Bonds (Energy Efficiency Program) Series 2022B (Green Bonds) (the “Series B Bonds,” and together with the Series A Bonds, the “Bonds”) as Additional Bonds on parity with the 2016 Bonds, for the purpose of financing the costs of the Project and to pay for the costs of issuing the Bonds; and WHEREAS, it is proposed that the Authority and the Trustee enter into a first supplemental indenture with respect to each of the 2016 Indenture and the 2020 Indenture (collectively, the “Supplemental Indentures”), and the City and the Authority enter into an amendment to each of the 2016 Lease and the 2020 Lease (collectively, the “Lease Amendments”); and WHEREAS, the Series A Bonds are to be issued pursuant the 2020 Indenture, as supplemented by a First Supplemental Indenture (collectively, the “Series A Indenture”), each by and between the Authority and the Trustee; and
WHEREAS, the Series B Bonds are to be issued pursuant the 2016 Indenture, as supplemented by a First Supplemental Indenture (collectively, the “Series B Indenture”), each by and between the Authority and the Trustee; and
WHEREAS, Senate Bill 450 (Chapter 625 of the 2017-2018 Session of the California Legislature) (SB450) requires that the governing body of a public body obtain prior to authorizing the issuance of bonds with a term of greater than 13 months, good faith estimates of the following information in a meeting open to the public: (a) the true interest cost of the bonds, (b) the sum of all fees and charges paid to third parties with respect to the bonds, (c) the amount of proceeds of the bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the bonds, and (d) the sum total of all debt service payments on the bonds calculated to the final maturity of the bonds plus the fees and charges paid to third parties not paid with the proceeds of the bonds; and WHEREAS, it is proposed that each series of the Bonds be sold through a negotiated sale in accordance with the terms of a Bond Purchase Agreement (each, a “Bond Purchase Agreement”) to be entered into by the Authority, the City and the underwriter, the proposed forms of which has been presented to this Board; and
WHEREAS, as required by Section 6586.5 of the Act, the City has caused publication of a notice of a public hearing on the financing of the Project once at least five days prior to the hearing in a newspaper of general circulation in the City; and
WHEREAS, the City Council held a public hearing at which all interested persons were provided the opportunity to speak on the subject of financing the Project, and, following the hearing, found that issuance of the Bonds for the purpose of financing the Project will result in significant public benefits of the type described in Section 6586 of the Act; and

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

WHEREAS, the Board of Directors has duly considered these transactions and wishes at this time to approve these transactions and make certain findings regarding significant public benefits to the Authority’s members with respect to these transactions; and WHEREAS, there have been presented to this meeting the proposed forms of the following documents:
(a) First Supplemental Indenture relating to the 2020 Indenture (Series A Supplemental Indenture);
(b) First Supplemental Indenture relating to the 2016 Indenture (Series B Supplemental Indenture);
(c) First Amendment to the CUBE Lease (Cube Lease Amendment); (d) First Amendment to the City Hall Lease (City Hall Lease Amendment); (e) Preliminary Official Statement;
(f) Bond Purchase Agreement – Series A Bonds; and
(g) Bond Purchase Agreement – Series B Bonds.

WHEREAS, the Board has reviewed the documentation related to the issuance of the Bonds, which documentation is on file with the Secretary of the Authority.

NOW, THEREFORE, the Board of Directors of the Santa Clarita Public Financing Authority, does hereby resolve as follows:

SECTION 1. Recitals. All of the above recitals are true and correct and the Authority so finds.

SECTION 2. Determiniations. Pursuant to the Act, the Board hereby finds and determines that the issuance of the Bonds to finance the Project and the transactions related thereto will result in significant public benefits to its members within the contemplation of Section 6586 of the Act.

SECTION 3. Approval of the Bonds. The Authority hereby authorizes the issuance by the Authority of the Series A Bonds and the Series B Bonds in the aggregate principal amount not to exceed $25,000,000.

SECTION 4. Approval of Series A Bonds. The Authority hereby authorizes the issuance by the Authority of the Series A Bonds as additional bonds under the Series A Indenture to finance a portion of the costs of the Project and to pay for the costs of issuing the Series A Bonds.

SECTION 5. Approval of CUBE Lease Amendment. The Cube Lease Amendment, in substantially the form on file with the Secretary and presented to the Board at this meeting, is hereby approved. Any one of the Chair, the Executive Director, or Treasurer of the Authority (each, an “Authorized Officer”), is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Cube Lease Amendment, with such revisions,

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by such execution and delivery thereof, and the Secretary is hereby authorized to attest to such execution.

SECTION 6. Approval of the Series A Supplemental Indenture. The Authority hereby approves the Series A Supplemental Indenture in substantially the form on file with the Secretary and presented to the Board at this meeting. Any Authorized Officer is hereby authorized to execute the Series A Supplemental Indenture in substantially the form on file, with such revisions, amendments and completions, as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by the execution and delivery thereof.

SECTION 7. Approval of Series B Bonds. The Authority hereby authorizes the issuance by the Authority of the Series B Bonds as additional bonds under the Series B Indenture to finance a portion of the costs of the Project and to pay for the costs of issuing the Series B Bonds.

SECTION 8. Approval of City Hall Lease Amendment. The City Hall Lease Amendment, in substantially the form on file with the Secretary and presented to the Board at this meeting, is hereby approved. Any Authorized Officer is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Ciuty Hall Lease Amendment, with such revisions, amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by such execution and delivery thereof, and the Secretary is hereby authorized to attest to such execution.

SECTION 9. Approval of the Series B Supplemental Indenture. The Authority hereby approves the Series B Supplemental Indenture in substantially the form on file with the Secretary and presented to the Board at this meeting. Any Authorized Officer is hereby authorized to execute the Series B Supplemental Indenture in substantially the form on file, with such revisions, amendments and completions, as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by the execution and delivery thereof.

SECTION 10. Approval of the Preliminary Official Statement and the Official Statement.

The Preliminary Official Statement, in substantially the form on file with the Secretary and presented to the Board at this meeting, is hereby approved with such revisions, amendments and completions as shall be approved by an Authorized Officer to make the Preliminary Official Statement final as of its date, except for the omission of certain information, as permitted by Section 240.15c2-12(b)(1) of Title 17 of the Code of Federal Regulations (Rule 15c2-12). Any Authorized Officer is authorized to execute a certificate relating to the finality of the Preliminary Official Statements under Rule 15c2-12. Any Authorized Officer is authorized and directed to execute and deliver the final Official Statement in substantially the form of the Preliminary Official Statement, with such additions and changes as may be approved by an Authorized Officer executing the same with the advice of Disclosure Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by the execution and delivery thereof.

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

SECTION 11. Approval of each Bond Purchase Agreement. The Authority hereby approves each Bond Purchase Agreement in the forms thereof on file with the Secretary. Any Authorized Officer is hereby authorized to execute a Bonds Purchase Agreement with such revisions, amendments and completions as shall be approved by the Authorized Officer executing the same, with the advice of Bond Counsel in consultation with the Counsel to the Authority, such approval to be conclusively evidenced by the execution and delivery thereof; provided that, (a) the Bond Purchase Agreement – Series A Bonds shall provide for a true interest cost (including original issue discount shown) not greater than 5.50 percent, and an underwriter’s discount not greater than 1.0 percent of the principal amount of Series A Bonds and (b) the Bond Purchase Agreement – Series B Bonds shall provide for a true interest cost (including original issue discount shown) not greater than 4.75 percent, and an underwriter’s discount not greater than 1.0 percent of the principal amount of Series B Bonds.

SECTION 12. Good Faith Estimates. In accordance with SB 450, good faith estimates of the following have been presented at this meeting: (a) the true interest cost of the Bonds, (b) the sum of all fees and charges paid to third parties with respect to the Bonds, (c) the amount of proceeds of the Bonds expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Bonds, and (d) the sum total of all debt service payments on the Bonds calculated to the final maturity of the Bonds plus the fees and charges paid to third parties not paid with the proceeds of the Bonds.

SECTION 13. Green Bond Designation. The Authority agrees with and acknowledges the self-designation of the Bonds as “green bonds” given the nature of the Project as environmentally beneficial, and the City’s and Auhtority’s expectation that the proceeds of the Bonds will finance a portion of the Project.

SECTION 14. Official Actions. The Authorized Officers, the Secretary, and all other officers of the Authority are hereby authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all other actions, including the publication of any notices necessary or desirable in connection with the Project, the sale of the Bonds, procurement of municipal bond insurance and/or a reserve surety, and execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants, escrow instructions and other documents, which they, or any of them, deem necessary or advisable to consummate the lawful issuance and sale of the Bonds and the consummation of the transactions as described herein.

SECTION 15. Ratification. All actions heretofore taken by any Authorized Officer or any officer, employee or agent of the Authority with respect to the issuance, delivery and sale of the Bonds or in connection with or related to any of the agreements referred to herein, are hereby approved, confirmed and ratified.

SECTION 16. Effective Date of Resolution. This resolution shall take effect immediately upon its adoption.

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

PASSED, APPROVED, AND ADOPTED this 27th day of September 2022. ______________________________
CHAIR
ATTEST:
_______________________________

SECRETARY
DATE:__________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )
I, Mary Cusick, Secretary of the Santa Clarita Public Financing Authority, do hereby certify that the foregoing Resolution No. PFA22- _____ was duly adopted by the Board of the Santa Clarita Public Financing Authority at a regular meeting thereof, held on the 27th day of September 2022, by the following vote:

AYES: BOARDMEMBERS:

NOES: BOARDMEMBERS:

ABSENT: BOARDMEMBERS:
______________________________

SECRETARY

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Attachment: Resolution Public Financing Authority Approving Bond Issue (CITYWIDE ENERGY EFFICIENCY PROGRAM)

RESOLUTION NO. 22 -_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

CLARITA, CALIFORNIA, DECLARING ITS INTENT TO REIMBURSE

CERTAIN EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT

OBLIGATIONS EXPECTED TO BE ISSUED TO FINANCE CERTAIN

PUBLIC FACILITIES AS REQUIRED BY UNITED STATES DEPARTMENT OF TREASURY REGULATIONS SECTION 1.150-2
WHEREAS, the City Council of City of Santa Clarita, California (City), or its related entity, including the Santa Clarita Public Financing Authority (Authority) (collectively, the “Issuer”), expects expects to incur tax-exempt bonds or other financing obligations (collectively, the “Obligations”), to finance a portion of the costs of certain energy efficiency improvements associated with buildings and facilities of the City (the “Project”); and WHEREAS, the City and the Issuer expect that certain expenditures relating to the Project will be incurred and paid from other sources of money available to the City prior to the issuance of the Obligations (Reimbursable Expenditures); and WHEREAS, the City and the Issuer reasonably expect that a portion of the proceeds of the Obligations will be used to reimburse all or a portion of the Reimbursable Expenditures; and WHEREAS, section 1.150-2 of the Treasury Regulations (Treasury Regulations) promulgated under the Internal Revenue Code of 1986, as amended, requires that for an allocation of proceeds of the Obligations to a capital expenditure paid prior to the issuance of the Obligations to be respected by the Internal Revenue Service, the City and the Issuer generally must no later than sixty days following such payment have declared its reasonable official intent to reimburse itself for such payment out of proceeds of the Obligations; and WHEREAS, the City and the Issuer desire to facilitate the allocation of proceeds of the Obligations to the reimbursement for payment of the Reimbursable Expenditures for the Project.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. This resolution is adopted for purposes of establishing compliance with the requirements of section 1.150-2 of the Treasury Regulations. This resolution does not obligate either the City or the Issuer to make any expenditure or proceed with the Project or obligate the Issuer to cause the issuance of the Obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws.

SECTION 2. The City and the Issuer hereby declare their reasonable official intention to reimburse the applicable Reimbursable Expenditures with respect to the Project from proceeds of Obligations that may hereafter be issued by the Issuer or on behalf of the City. The maximum principal amount of Obligations expected to be issued for the Project is $25,000,000. All of the Reimbursable Expenditures covered by this resolution were or are to be made not earlier than sixty (60) days prior to the adoption hereof, other than certain de minimis amounts and

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Attachment: Resolution Reimbursement (CITYWIDE ENERGY EFFICIENCY PROGRAM)

preliminary expenditures as described in Treas. Reg. Section 1.150-2(f)(2) that are exempt from the sixty-day requirement pursuant to Section 1.150-2 of the Treasury Regulations. The non- exempt Reimbursable Expenditures covered by this resolution are eligible for reimbursement provided the reimbursement occurs not later than eighteen months after the later of the date the original expenditure is made or the date the property is placed in service; but in no event more than three years after the original expenditure is made.

SECTION 3. All actions heretofore taken by the officers, or their respective designees, and the employees and agents of the City and the Issuer in connection with the financing of the Project are hereby ratified and confirmed. The officers and their designees, the employees and agents of the City and the Issuer are hereby authorized to take any and all actions in connection with the financing of the Project and as may be necessary and consistent with the purposes of this resolution.

SECTION 4. This resolution shall take effect immediately upon its adoption.

SECTION 5. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this 27th day of September, 2022. ______________________________
MAYOR
ATTEST:
_______________________________

CITY CLERK
DATE:__________________________

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STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22- ______ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of September, 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

CITY CLERK

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RESOLUTION NO. 22-________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

CLARITA, CALIFORNIA, AUTHORIZING THE APPLICATION FOR AN

ENERGY EFFICIENCY LOAN FROM THE CALIFORNIA ENERGY

COMMISSION TO IMPLEMENT ENERGY EFFICIENCY MEASURES IN
THE AMOUNT NOT TO EXCEED $3,000,000, AND AUTHORIZING THE

EXECUTION AND DELIVERY OF A LOAN AGREEMENT, PROMISSORY

NOTE AND TAX CERTIFICATE AND THE TAKING OF CERTAIN
ACTIONS IN CONNECTION THEREWITH.

WHEREAS, the City of Santa Clarita, California (City), desires to finance certain energy efficiency improvements for City buildings and facilities, including but not limited to, HVAC, lighting, water conservation, solar, and refrigeration improvements (the “Project”) through the issuance of tax-exempt bonds, cash and a loan with the California Energy Commission; and WHEREAS, the California Energy Commission provides loans to schools, hospitals, local governments, special districts, and public care institutions to finance energy efficiency improvements.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. Recitals. All of the above recitals are true and correct and the City Council so finds.

SECTION 2. Authorizes Application. The City Council of the City (City Council) hereby authorizes the City to apply for energy efficiency loan from the California Energy Commission to implement energy efficiency measures (Loan).

SECTION 3. CEQA. In compliance with the California Environmental Quality Act (CEQA), the City finds that the activity funded by the Loan qualifies in whole for a Categorical Exemption under Section 15301 of the CEQA because the loan will fund activity to existing, City- owned facilities.

SECTION 4. Authorization of Loan. If recommended for funding by the California Energy Commission, the City Council authorizes the City to accept the Loan up to $3,000,000.

SECTION 5. Security for the Loan. The amount of the Loan will be paid in full, plus interest, under the terms and conditions of the Loan Agreement, Promissory Note and Tax Certificate of the California Energy Commission, which documents are on file with the City Clerk and presented to the City Council at this meeting.

SECTION 6. Approval of Loan Agreement, Promissory Note and Tax Certificate. The Loan Agreement, Promissory Note and Tax Certificate, in substantially the form on file with the City Clerk and presented to the City Council at this meeting, is hereby approved. Any one of the Mayor, the City Manager of the City, the Assistant City Manager, or City Treasurer (each, an “Authorized Officer”), is hereby authorized and directed, for and in the name and on behalf of the

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Attachment: Resolution California Energy Commission Loan (CITYWIDE ENERGY EFFICIENCY PROGRAM)

City, to execute and deliver the Loan Agreement, Promissory Note and Tax Certifciate, with such revisions, amendments and completions as shall be approved by an Authorized Officer, with the advice of Bond Counsel in consultation with the City Attorney, such approval to be conclusively evidenced by such execution and delivery thereof.

SECTION 7. Other Actions. Any Authorized Officers is hereby authorized and empowered to execute in the name of the City all necessary documents to implement and carry out the purpose of this resolution, and to undertake all actions necessary to undertake and complete the energy efficiency projects.

SECTION 8. Effective Date of Resolution. This resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED this 27th day of September 2022. ______________________________
MAYOR
ATTEST:
_______________________________

CITY CLERK
DATE:__________________________

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )
I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22-_______ was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 27th day of September 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
______________________________

CITY CLERK

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Agenda Item: 2

CITY OF SANTA CLARITA

AGENDA REPORT

NEW BUSINESS
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: SPONSORSHIP AGREEMENT WITH KAISER PERMANENTE FOR

THE SANTA CLARITA AQUATIC CENTER
DEPARTMENT: Economic Development
PRESENTER: Christopher Page

RECOMMENDED ACTION
City Council:

1. Approve and authorize the City Manager or designee to execute a Sponsorship Agreement with Kaiser Permanente for the Presenting Level Sponsorship of the Santa Clarita Aquatic Center subject to City Attorney approval.

2. Increase revenue account 100-456611 by $50,000.

BACKGROUND
The City of Santa Clarita’s (City) Business Sponsorship Program (Program) began in 2007 as a marketing tool designed to strengthen partnerships with the business community. Through the Program, the City partners with local, regional, and national business brands to enhance and improve the user’s experience and to provide value through integration with City events, programs, or facility naming rights.

As the City introduces new amenities and events, there are additional opportunities to forge new partnerships through the Program and deliver meaningful benefits to the City. The Program partners with more than 60 local organizations each year for various events and facilities, as exemplified below:
• Events
o Concerts in the Park, presented by Logix Federal Credit Union o The Youth Sports Mouth Guard Program, provided by Snow Orthodontics • Facilities
o Trek Bike Park of Santa Clarita
o The Cube - Ice and Entertainment Center, powered by FivePoint I Valencia 2 Packet Pg. 44

The Santa Clarita Aquatic Center (Aquatic Center) has been heavily used by the community since it opened in 2003. Its three swimming pools include an Olympic-sized, 50-meter by 25-yard competition pool; a 25-yard by 25-meter multi-use pool with one three-meter and two one-meter diving boards; and an activity pool with a zero-depth entry and water play features, including a two-story, 168-foot water slide. The Aquatic Center attracts more than 150,000 participants and spectators annually.

The Economic Development team created an information packet in 2017 for the purpose of soliciting sponsorship at the Aquatic Center. Since then, staff has engaged with dozens of local and national businesses to discuss possible sponsorship opportunities. After staff’s due diligence, Kaiser Permanente (Kaiser) emerged as the ideal sponsor for this specific facility, given its mission of promoting healthy communities. Kaiser’s mission aligns with the goals of the City and the purpose of the Aquatic Center, which is to provide recreational opportunities and promote healthy lifestyles. Co-branding with a nationally-recognized health care system has the potential to elevate the Aquatic Center’s presence and serve as a beneficial attraction tool. Kaiser has a history of supporting the health of the Santa Clarita community through past sponsorships of events such as the “Final Mile Challenge” at the Santa Clarita Marathon.

Staff has been engaged in negotiations with Kaiser over the sponsorship of the Aquatic Center and developed a Presenting Level Sponsorship Agreement (Agreement) that would generate $50,000 annually to the City over the course of five years, for a total amount of $250,000. In turn, Kaiser would receive sponsor benefits in affiliation with the facility as “The Santa Clarita Aquatic Center, presented by Kaiser Permanente,” which would include the following:

• Sponsor designation on all print items and digital marketing related to facility • Sponsor designation on advertising panels on the two digital scoreboards • Sponsor designation on fourteen light pole banners throughout the facility • Custom sponsor banner placed at the top platform of the activity pool slide

As specified in the Agreement, Kaiser Permanente would bear all reasonable costs associated with fabricating and installing mutually agreed-upon permanent signage. Visualizations of the proposed exterior displays are provided as an attachment to this item.

The recommended action is consistent with actions taken by the City Council in the past, with similar agreements for City facilities that are large in size and scope, such as the Trek Bike Park of Santa Clarita and the FivePoint's sponsorship of The Cube - Ice and Entertainment Center.

ALTERNATIVE ACTION

Other action as directed by City Council.

FISCAL IMPACT

If approved, the Agreement will increase revenues in account 100-456611 (Sponsorship Revenue) by $50,000 per year, for five years consecutively. This will result in a total impact of $250,000, directly to the City, over five years.

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ATTACHMENTS
Aquatic Center Signage
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Attachment: Aquatic Center Signage (Kaiser Permanente Sponsorship) City Produced Signage

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Attachment: Aquatic Center Signage (Kaiser Permanente Sponsorship) Sponsor Produced Signage – Optional

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Attachment: Aquatic Center Signage (Kaiser Permanente Sponsorship)

CITY OF SANTA CLARITA
City Council
Special Meeting
~Minutes~
Tuesday, September 13, 2022 5:00 PM City Council Chambers

CALL TO ORDER
Mayor Weste called to order the Special Meeting at 5:01 p.m.

ROLL CALL
All Councilmembers were present, with Councilmember Smyth participating remotely.

PUBLIC PARTICIPATION FOR AGENDIZED ITEMS
Addressing the Council was Douglas Fraser regarding the anticipated litigation matter.

CLOSED SESSION
Joseph Montes, City Attorney, responded to Mr. Fraser's questions, announced that Councilmember Smyth will not participate in the anticipated litigation matter due to potential conflict of interest, and advised of the need to conduct a Closed Session for the purpose of holding a:

CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
Government Code Section 54956.9(d)(1)
Name of case: Michael Cruz et al. v. City of Santa Clarita LASC Case No. 21STCV47451
Name of case: City of Santa Clarita v. County of Los Angeles LASC Case No. 22STCP01395

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) - one matter

RECESS TO CLOSED SESSION - TO BE HELD IN THE CARL BOYER ROOM Mayor Weste recessed the meeting to Closed Session at 5:04 p.m.

RECONVENE TO OPEN SESSION
Mayor Weste reconvened the meeting to Open Session at 6:03 p.m.

CITY ATTORNEY ANNOUNCEMENT
City Attorney Joseph Montes announced that no action was taken in Closed Session that was required to be reported.
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Minutes Acceptance: Minutes of Sep 13, 2022 5:00 PM (Consent Calendar)

ADJOURN
Mayor Weste adjourned the Special Meeting at 6:03 p.m.

______________________________________
MAYOR
ATTEST:

______________________________________

CITY CLERK
3 Packet Pg. 51
Minutes Acceptance: Minutes of Sep 13, 2022 5:00 PM (Consent Calendar)

CITY OF SANTA CLARITA
City Council
Regular Meeting
Joint Meeting with
Board of Library Trustees
Hereinafter the titles Mayor, Mayor Pro Tem, Councilmember, City Manager, City Attorney, and City Clerk may be used also to indicate Mayor/Chair/President, Mayor Pro Tem/Vice-Chair/Vice President, City Manager/Executive Director, City Attorney/Counsel, and City Clerk/Secretary ~Minutes~
Tuesday, September 13, 2022 6:00 PM City Council Chambers

INVOCATION
Councilmember Miranda delivered the invocation.

CALL TO ORDER
Mayor Weste called to order the Joint Regular meeting of the City Council and Board of Library Trustees at 6:04 p.m.

ROLL CALL
All Councilmembers were present with the exception of Councilmember Smyth.

FLAG SALUTE
Councilmember Miranda led the flag salute.

EXECUTIVE MEETING
This time has been set aside for Councilmembers to review the agenda and obtain any further information that may be needed. Council will also discuss each individual item during the course of the meeting with the exception of the Consent Calendar, which may be approved in its entirety by one motion, unless there is a request to pull an item for discussion. No action will be taken on public agenda items during the Executive Meeting.

APPROVAL OF AGENDA
Motion by Gibbs, second by McLean, to approve the agenda, pulling the Regular Meeting Minutes for Councilmember clarification, and items 5, 6, 7, and 8 for public comments.

Hearing no objections, it was so ordered.

RESULT: APPROVED AGENDA
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Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

AWARDS AND RECOGNITIONS
Mayor Weste spoke of raising awareness about childhood cancer; announced that the City proclaims the month of September 2022 as Childhood Cancer Awareness Month; and invited representatives from the Michael Hoefflin Foundation for Children's Cancer to the dais to receive the proclamation and share a few words.

Councilmember McLean addressed mental health issues and the new National Suicide Prevention Lifeline dialing code 988; announced that the City proclaims September 2022 as Suicide Prevention Awareness Month; and invited members of the Be The Difference SCV to the dais to receive the proclamation and take a photo.

Mayor Pro Tem Gibbs discussed the Constitutional Convention in 1787, which created the document that laid out the principles and values of the Country; announced that the City proclaims September 17 through 23 as Constitution Week in the City of Santa Clarita; and invited members of the Santa Clarita chapter of the National Society Daughters of the American Revolution to the dais to receive the proclamation and take a photo.

Councilmember Miranda spoke of the past barriers to voting for all and the importance of registering to vote; and announced that the City proclaims September 20 as Voter Registration Day in the City of Santa Clarita.

Addressing the Council on Constitution Week was Diane Zimmerman.

PUBLIC PARTICIPATION
Addressing the Council were Missy (no last name provided) regarding the State of the City Luncheon; Natalie Ho regarding teaching youth about environmental science; Mathew Roco- Calvo regarding public transportation and safety infrastructure; Kody Amour regarding solving homelessness; Lauryn Valley regarding a fatal car crash on San Francisquito Canyon Road; Elaine Ballace regarding the Boots & Brews festival, the State of the City Luncheon, and non- profits supported by the City; Alan Ferdman regarding a candidate forum, the Human Relations Roundtable, and the Constitution; Glenda Yakel regarding a Council candidate; Robert Read regarding Rosedell Elementary after-school programming; and Jeffrey Malick regarding community call to action.

STAFF COMMENTS
City Manager Ken Striplin commented on appreciation of high school student participation and staff will connect with them to discuss their topics; stated that the car accident on August 28 is not within the City's jurisdiction and will have staff reach out to the County to follow up on efforts to improve safety on the road; addressed that the Boots & Brews festival was a private festival and paid for all of their expenses; and will have staff connect with Mr. Read to find a facility space for his request.

Mayor Weste commented that San Francisquito road is not within the City's jurisdiction; however, the City should send a letter to Supervisor Barger regarding the street conditions.

4 Packet Pg. 53
Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

Councilmember McLean thanked Ms. Ho for bringing up the issue of the environment and commented that the City's website, greensantaclarita.com, contains a lot of information; agreed with Mr. Roco-Calvo and spoke about how she has worked long and hard to bring in transportation dollars to the City; and stated that the City cares deeply about homeless issues and discussed the Council and City's efforts to fight homelessness.

Mayor Weste requested that the City Manager discuss the City's contribution towards Bridge to Home, and Mr. Striplin responded that the City has worked closely with Bridge to Home to acquire several parcels of land for a new facility at a value of over $1 million; helped with the temporary location during the pandemic at the Newhall Community Center; and then another temporary location during construction, costing the City a few hundred thousand dollars; and most recently, approved a matching $2 million grant, along with the County, to expedite the construction of the facility. Mayor Weste requested that the City help facilitate expediting in any way possible.

COMMITTEE REPORTS/COUNCILMEMBER COMMENTS
Councilmember Miranda commented on the upcoming 27th annual River Rally Clean-Up and Environmental Expo on September 17, where the event will be held near the Via Princess Bridge off Wiley Canyon Road, and volunteers are encouraged to sign up.

Mayor Pro Tem Gibbs thanked Sulphur Springs Elementary for inviting him to speak at their ribbon cutting for their new inclusive playground and classrooms; invited residents to the 10th annual Santa Clarita Valley Charity Chili cook-off at the new MB2 Entertainment facility on October 28, supporting Fix'n Fido; and invited non-profit organizations to take part in an informational webinar on September 21 to learn how to apply for Community Services and Arts grant funds.

Councilmember McLean commented that the City's website, santa-clarita.com, is a great resource for all, including seeking volunteer opportunities, fixing pot holes, and information on upcoming meetings; and spoke of the upcoming Parent Resource Symposium titled "Chasing the High" on September 23.

Mayor Weste commented on a recent National Solo Dance Finals competition at The Cube with many from the community in attendance; spoke of attending the installation for the Samuel Dixon board for the Child and Family Center and congratulated Gloria Mercado-Fortine; gave shout outs to Jim Lentini for winning a car show trophy at the Elks Lodge, the Shaka boutique opening at the mall, the upcoming River Rally, the Parent Resource Symposium, and the Evening of Remembrance at the Youth Grove on September 21; discussed the Food for Fines program where the Santa Clarita Library will accept food donation in lieu of fines to support local food pantries; and gave kudos to Carousel Ranch for their amazing job with horse therapy.

4 Packet Pg. 54
Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

NEW BUSINESS
ITEM 1

SANTA CLARITA VALLEY DIGITAL HISTORY ARCHIVE INFRASTRUCTURE SCVHistory.com is a local history digital archive, owned and operated by SCVTV, that is in need of repair due to outdated web design technology.

RECOMMENDED ACTION:

City Council discuss efforts to upgrade and sustain SCVHistory.com, a digital local history archive, and provide direction to staff.

Mayor Weste presented the item.

Addressing the Council in support were RuthAnne Murthy, Mary Frances Larson, Kathi Lund, Stephen K. Peeples, Reena Newhall, Sarah Brewer, Scott Hounsell, Bruce Fortine, Jim Ventress, Meredith McGowan, Jessica Boyer, Bill West, Leon Worden, Andrew Tyzbir, Ann Stansell, Carol Rock, Dr. Alan Pollack, Teresa Todd, Susan Shapiro representing SCVTV, Marie Sherb and Lois Bauccio.

Addressing the Council in opposition were Brett Haddock and Elaine Ballace.

Three written comments were received in support.

Mayor Weste commented on creating history by the amount of support for saving the website and spoke of the expertise needed to preserve the extensive historical data.

Mayor Pro Tem Gibbs commented that he was inspired by the work done by Mr. Worden and gave a personal account for the need to pass down information from his own mother to his sons.

Councilmember McLean commented that Mr. Worden assured her of SCVTV's due diligence during his public participation speech.

Mayor Weste requested that the motion include a City letter submittal to the National Endowment for the Humanities stating that the City is committing $300,000 for the website conversion and to direct staff to draft a Memorandum of Understanding, or equivalent, with SCVTV for the transfer of ownership of SCVHistory.com over to the City of Santa Clarita Public Library.

RESULT: APPROVED [UNANIMOUS]
MOVER: Bill Miranda, Councilmember
SECONDER: Marsha McLean, Councilmember
AYES: Laurene Weste, Jason Gibbs, Marsha McLean, Bill Miranda ABSENT: Cameron Smyth
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Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

CONSENT CALENDAR
Council recessed the meeting at 8:50 p.m. and reconvened at 9:06 p.m.

RESULT: APPROVED [UNANIMOUS]
MOVER: Marsha McLean, Councilmember
SECONDER: Jason Gibbs, Mayor Pro Tem
AYES: Laurene Weste, Jason Gibbs, Marsha McLean, Bill Miranda ABSENT: Cameron Smyth

ITEM 2
APPROVAL OF SPECIAL MEETING MINUTES – The minutes are submitted for approval.

RECOMMENDED ACTION: City Council approve the minutes of the August 23, 2022, Special Meeting.

ITEM 3
APPROVAL OF REGULAR MEETING MINUTES – The minutes are submitted for approval.

RECOMMENDED ACTION: City Council approve the minutes of the August 23, 2022, Regular Meeting.

ITEM 4
CHECK REGISTER NOS. 16 AND 17
Check Register No. 16 for the Period 07/01/22 through 07/14/22 and 07/21/22. Electronic Funds Transfers for the Period 07/04/22 through 07/15/22. Check Register No. 17 for the Period 07/15/22 through 07/28/22 and 08/04/22. Electronic Funds Transfers for the Period 07/18/22 through 07/29/22.

RECOMMENDED ACTION:

City Council approve and ratify for payment the demands presented in Check Register Nos. 16 and 17.

ITEM 5

CONTRACT FOR SANTA CLARITA PUBLIC LIBRARY LAPTOP KIOSK

REPLACEMENT AND MAINTENANCE
Award a contract to Java Connections, LLC, for the purchase of laptop kiosks for the Santa Clarita Public Library, inclusive of five years of support and maintenance.

RECOMMENDED ACTION:

City Council:

1. Award a five-year maintenance contract to Java Connections, LLC, in the total amount not to exceed $68,010.45, for public library laptop kiosks, inclusive of delivery, installation, and five years of support and maintenance.

2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

Addressing the Council were Elaine Ballace and Missy (no last name provided). 4 Packet Pg. 56
Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

ITEM 6
FUNDING FOR DBAA 3 RESERVE PROJECT
Authorize a one-time appropriation of $40,000 from Drainage Benefit Assessment Areas reserves for professional services for drainage repairs in DBAA 3.

RECOMMENDED ACTION:

City Council appropriate one-time funds in the amount of $40,000 from Drainage Benefit Assessment Areas Fund 351 to expenditure account 3517209-516113 for needed repairs in DBAA 3.

Addressing the Council was Santa Rivera.

ITEM 7

LANDSCAPE MAINTENANCE DISTRICT CONTRACT AUTHORITY INCREASE/BASE

BUDGET APPROPRIATION
Authorize expenditure authority increases to various landscape service contracts in order to complete as-needed repairs or one-time enhancement work in an efficient and timely manner; and approve the appropriation of ongoing funds to support operations at the Vista Canyon Transit Center.

RECOMMENDED ACTION:

City Council:

1. Approve ongoing expenditure authority increases in the annual cumulative amount of $368,678 for expanded landscape services, as-needed maintenance and repairs, unanticipated work, and one-time enhancement projects within multiple City Landscape Maintenance zones for the contracts listed in Attachment A.

2. Authorize ongoing appropriations from Transit Fund (Fund 700) totaling $15,000, as identified in Attachment B, to support operations at the Vista Canyon Transit Center.

3. Authorize the City Manager or designee to execute all contracts and associated documents subject to City Attorney approval.

Addressing the Council was Santa Rivera.

ITEM 8
CENTRAL PARK BUILDOUT, PROJECT P4019 - TRIPARTITE TENDER AGREEMENT This item will authorize entering into a tripartite tender agreement to complete the expansion of the southwestern portion of Central Park. The project will construct four full-sized multipurpose fields by adding two new fields and converting an open turf area into two more full-sized multipurpose fields. It will also include the installation of sport field lighting, landscaping and irrigation, various site furnishings, a restroom building, upgrades to the adjacent dog park, exercise stairs, and additional parking.

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Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

RECOMMENDED ACTION:

City Council:

1. Authorize the City Manager or designee to finalize and execute all necessary documents, including a tripartite tender agreement, subject to City Attorney approval, which includes a completion offer (contract) to Urban Habitat in an approximate amount of $10,002,385, and authorize a contingency in the amount of $1,000,238, for a total contract amount not to exceed $11,002,623, as well as authorize the City Manager to approve the finalized reimbursement amount to the City for additional costs incurred to ensure the City is not financially disadvantaged by the prior contractor’s default.

2. Appropriate funds in the amount of $2,100,000 from Facilities Fund (Fund 723) to expenditure account P4019723-516101, increase Facilities Fund revenue account 723- 462101 by $2,100,000, and increase General Fund Miscellaneous revenue account 100- 462101 by approximately $400,000.

3. Extend the current contract and authorize an increased expenditure authority for civil engineering services, surveying services, and construction support with Psomas in the amount of $14,480 and authorize a contingency in the amount of $1,448, for a total additional contract amount not to exceed $15,928.

Addressing the Council were Missy (no last name provided), Alan Ferdman, and Steve Petzold.

Mayor Weste requested that the City Manager respond, and Mr. Striplin commented that under the terms of the lease agreement, there will be no more future memorials at Central Park and addressed the funding and process to replace the previous contractor on the project.

PUBLIC PARTICIPATION II
Addressing the Council were David Hong regarding the Sand Canyon Golf Course; Steve Petzold regarding SCVTV and candidate debates, Hart Park liability, and renewable diesel; Diane Zimmerman regarding November election candidates; Santa Rivera regarding outside influence on children, the Community Choice Aggregation, and the November election; and Cindy Josten regarding the fentanyl crisis.

ADJOURNMENT
Mayor Weste adjourned the Regular Meeting at 9:43 p.m.

______________________________________
MAYOR
ATTEST:

______________________________________

CITY CLERK
4 Packet Pg. 58
Minutes Acceptance: Minutes of Sep 13, 2022 6:00 PM (Consent Calendar)

Agenda Item: 5

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: CHECK REGISTER NOS. 18 AND 19
DEPARTMENT: Administrative Services
PRESENTER: Brittany Houston

RECOMMENDED ACTION
City Council approve and ratify for payment the demands presented in Check Register Nos. 18 and 19.

BACKGROUND
Check Register No. 18 for the Period 07/29/22 through 08/11/22 and 08/18/22 in the aggregate amount of $3,660,281.30 inclusive of Electronic Funds Transfers for the Period 08/01/22 through 08/12/22 in the aggregate amount of $1,064,772.25.

Check Register No. 19 for the Period 08/12/22 through 08/25/22 and 09/01/22 in the aggregate amount of $10,534,494.52 inclusive of Electronic Funds Transfers for the Period 08/15/22 through 08/26/22 in the aggregate amount of $3,531,122.63.

FISCAL IMPACT
No Fiscal Impact.

ATTACHMENTS
Memo - Check Register No. 18
Memo - Check Register No. 19
Check Register No. 18 (available in the City Clerk's Reading File) Check Register No. 19 (available in the City Clerk's Reading File) 5 Packet Pg. 59

5.a
Packet Pg. 60
Attachment: Memo - Check Register No. 18 (Check Register Nos. 18 and 19) Amount
Sub-Total Check Register: 2,324,256.97$
Sub-Total- Other Electronic Funds Transfer: 1,064,772.25 $ Sub-Total Precheck Register: 271,252.08 $
Total Check Register: 3,660,281.30$
Void Checks:

CITY OF SANTA CLARITA

CHECK REGISTER
CHECK DATE: 08/18/2022
Summary Sheet
See Attached

5.a
Packet Pg. 61
Attachment: Memo - Check Register No. 18 (Check Register Nos. 18 and 19)

ACCOUNT PAYEE DESCRIPTION AMOUNT
100-200307 CalPERS Medical 425,193.80
100-200302 IRS Federal Payroll Taxes 240,897.99
100-200307 CalPERS Retirement Benefits - Classic 125,805.80 100-200307 CalPERS Retirement Benefits - PEPRA 121,896.92 100-200304 EDD State Payroll Taxes 87,539.29
100-200311 MISSION SQUARE-457 Deferred Compensation 54,382.40 100-200311 MISSION SQUARE-401 Deferred Compensation 4,840.84 100-200315 CA SDU Child Support Garnishments 4,215.21
TOTAL $1,064,772.25
Electronic Funds Transfers
For the Period 08/01/22 through 08/12/22

5.a
Packet Pg. 62
Attachment: Memo - Check Register No. 18 (Check Register Nos. 18 and 19)

5.b
Packet Pg. 63
Attachment: Memo - Check Register No. 19 [Revision 2] (Check Register Nos. 18 and 19) Amount
Sub-Total Check Register: 6,842,982.67$
Sub-Total- Other Electronic Funds Transfer: 3,531,122.63 $ Sub-Total Precheck Register: 160,389.22 $
Total Check Register: 10,534,494.52$
Void Checks:

CITY OF SANTA CLARITA

CHECK REGISTER
CHECK DATE: 09/01/2022
Summary Sheet
See Attached

5.b
Packet Pg. 64
Attachment: Memo - Check Register No. 19 [Revision 2] (Check Register Nos. 18 and 19)

ACCOUNT PAYEE DESCRIPTION AMOUNT
3585200-520104 Pathway Escrow, Inc. Haskell Canyon Open Space 1,6 03,891.99 3599500-710500 BNY 2018 A&B Streetlight Debt Service Payment 592,7 05.31 8029500-710503 US Bank CFD 2002-1 VTC Debt Service Payment 413,602 .14 100-200302 IRS Federal Payroll Taxes 325,164.95
100-200307 CalPERS Retirement Benefits - Classic 124,495.48 100-200307 CalPERS Retirement Benefits - PEPRA 121,898.88 100-200311 MISSION SQUARE-457 Deferred Compensation 116,666.03 100-200304 EDD State Payroll Taxes 113,680.54
8009201-530101/530102 US Bank
AD 92-2 GVR Debt Service Payment 48,859.90
8019200-530101/530102 BNY AD 99-1 Vermont Everett Debt Service Pa yment 45,787.48 100-200321 Wex Health FSA - Health Care 7,927.42
100-200311 MISSION SQUARE-401 Deferred Compensation 7,244.54 100-200315 CA SDU Child Support Garnishments 4,215.21
100-200317 Wex Health FSA - Dependent Care 2,596.10
100-200311 MISSION SQUARE-ROTH Deferred Compensation 2,386.66 TOTAL $3,531,122.63
Electronic Funds Transfers
For the Period 08/15/22 through 08/26/22

5.b
Packet Pg. 65
Attachment: Memo - Check Register No. 19 [Revision 2] (Check Register Nos. 18 and 19)

Agenda Item: 6

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: DATACENTER BACKUP AND RECOVERY SYSTEM
DEPARTMENT: Administrative Services
PRESENTER: Ryan James

RECOMMENDED ACTION
City Council:

1. Award a three-year contract to Savant Solutions, Inc., in the amount of $73,318, plus a 10 percent contingency in the amount of $7,332, for a total amount not to exceed $80,650 for the Cohesity Backup and Recovery system, inclusive of three years of maintenance and support.

2. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.

BACKGROUND
Cybersecurity and disaster recovery are top priorities for the City of Santa Clarita (City). The cornerstone of an effective disaster recovery plan is a reliable and effective backup and recovery system. Server crashes, hardware failures, cyberattacks, and natural disasters can all lead to business continuity failures and downtime, which can affect City services.

The City takes many steps to ensure business continuity and safeguard the City’s datacenter.

Even with multiple layers of protection and disaster mitigation, it is imperative that critical systems are backed up routinely and tested for reliability. Moreover, a reliable backup system is necessary for obtaining supplemental cybersecurity insurance to help cover expenses in the event of a breach.

Cyberattacks are on the rise and are currently the biggest threat to business operations. A current trend includes viruses that attack and destroy backups so they can not be used for recovery purposes. Cohesity’s Backup and Recovery system provides the necessary replacement solution to ensure the City’s critical systems are protected and reliably backed up, inclusive of an immutability design that ensures no changes can take place once data has been backed up to its 6 Packet Pg. 66

platform.

In accordance with the City’s Purchasing Policy specific to technology procurement, the City’s Information Services division reviewed several solutions and obtained quotes from multiple vendors. No other system provided as much reliability, security, and value. Additional features include the ability to rapidly recover individual files while also de-duplicating data to improve storage allocation.

Staff finds the contract through Savant Solutions, Inc., provides the most competitive pricing.

The cost of $80,650 is inclusive of Cohesity Backup and Recovery, installation, maintenance, and support for three years.

ALTERNATIVE ACTION

1. Do not approve contract with Savant Solutions, Inc.

2. Other action as determined by the City Council.

FISCAL IMPACT

Adequate funds are available in Technology Services expenditure account 1002200-516101.

ATTACHMENTS
Savant Cohesity Quote 082322-1
6 Packet Pg. 67

6.a
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Attachment: Savant Cohesity Quote 082322-1 (DATACENTER BACKUP AND RECOVERY SYSTEM)

Agenda Item: 7

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: RESOLUTION ESTABLISHING A POLICY WHICH DELEGATES

TORT LIABILITY CLAIMS HANDLING RESPONSIBILITIES TO

THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams

RECOMMENDED ACTION
City Council:

1. Adopt a resolution authorizing the City of Santa Clarita to delegate tort liability claims handling responsibilities to the California Joint Powers Insurance Authority.

2. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval.

BACKGROUND
The City of Santa Clarita (City) is a California Joint Powers Insurance Authority (CJPIA) member for insurance coverage. The CJPIA provides the City’s required insurance coverages in addition to services to support the City in liability/tort insurance, safety initiatives, and the overall claims process. While the City works closely with CJPIA on various aspects of a claim, it is the City who is ultimately responsible for making the final claim rejection and settlement determinations.

When a claim is submitted, City staff forwards the claim to CJPIA and Carl Warren & Company, the third-party administrator that assists member agencies with their general liability/tort insurance claims; resulting in a multi-party investigation to determine liability.

After analysis of all pertinent facts, the City determines to reject or settle the claim. Upon doing so, the City and Carl Warren independently send a findings letter to the claimant with the City’s decision. The receival of two notices is confusing to the claimants. In an effort to reduce confusion and inefficient duplication of efforts, City staff recommend delegating the 7 Packet Pg. 69

responsibility of claim notices, such as finding letters and other notices, to Carl Warren.

By adopting the resolution, the City would delegate the preparation of these notification letters solely to Carl Warren, resulting in a more streamlined claims communication process. Carl Warren would mail notifications directly to claimants and forward electronic copies to the City for recordkeeping. For reference, most of the 120 CJPIA member agencies currently use Carl Warren to disseminate all claimant notices on their behalf.

ALTERNATIVE ACTION

Other direction as determined by the City Council.

FISCAL IMPACT

There is no impact to the General Fund associated with this action.

ATTACHMENTS
Resolution Approving the Delegation of Tort Liability Claims Handling 7 Packet Pg. 70

RESOLUTION NO. 22-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA,

CALIFORNIA, IMPLEMENTING A POLICY DELEGATING TORT LIABILITY CLAIMS

HANDLING RESPONSIBILITIES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY AS AUTHORIZED BY GOVERNMENT CODE SECTIONS 910, ET SEQ.

WHEREAS, the City of Santa Clarita is a member of the California Joint Powers Insurance Authority (CJPIA) effective July 1, 2021, and pursuant to Government Code sections 990.4, et seq. and 6500 et seq. pools its self-insured liability claims and losses with other CJPIA members under a Memorandum of Coverage; and

WHEREAS, the Joint Powers Agreement creating the CJPIA authorizes it to exercise powers common to members and appropriate to defend and indemnify members from liability claims under the Memorandum of Coverage.

NOW, THEREFORE, The City Council of the City of Santa Clarita, California, does hereby resolve as follows:

SECTION 1. The City of Santa Clarita delegates to the CJPIA authority to act on its behalf pursuant to Government Code sections 910, et seq. to accept, reject, return as insufficient, or return as untimely any claims against it, and to provide any notices authorized under those statutes on behalf of the City of Santa Clarita.

SECTION 2. This resolution shall become effective immediately upon its adoption.

SECTION 3. The City Clerk shall certify to the adoption of this resolution.

PASSED, APPROVED, AND ADOPTED this __th day of ________ 2022.

______________________________
MAYOR

ATTEST:

_______________________________

CITY CLERK

DATE:__________________________

7.a
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Attachment: Resolution Approving the Delegation of Tort Liability Claims Handling (RESOLUTION ESTABLISHING A POLICY WHICH

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF SANTA CLARITA )

I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution No. 22- was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the __th day of ________ 2022, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

______________________________

CITY CLERK

7.a
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Attachment: Resolution Approving the Delegation of Tort Liability Claims Handling (RESOLUTION ESTABLISHING A POLICY WHICH

Agenda Item: 8

CITY OF SANTA CLARITA

AGENDA REPORT

CONSENT CALENDAR
CITY MANAGER APPROVAL:

DATE: September 27, 2022
SUBJECT: UPDATES TO THE CITY'S PURCHASING POLICY
DEPARTMENT: Administrative Services
PRESENTER: Andrew Adams

RECOMMENDED ACTION
City Council approve updates to the City of Santa Clarita's Purchasing Policy to enhance and strengthen the City’s procurement practices.

BACKGROUND
City Council adopted the City of Santa Clarita's (City) Purchasing Policy on April 24, 2012, and approved the most recently modified version on March 10, 2020. The policy establishes the guidelines for staff to make fiscally responsible purchases in compliance with applicable codes and laws.

In an ongoing effort to refine processes, establish best practices, and proactively review the City's policies, staff recommends several updates to the Purchasing Policy, most of which are minor and intended to clarify current practice. The two primary changes, as outlined below based on specific policy sections and identified by page numbers, include 1) the establishment of a designated signatory authority hierarchy and 2) the inclusion of the design-build procurement approach.

Contractual Signing Authority
Per City municipal code section 2.08.060, contractual signing authority for the City resides with the Mayor and the City Manager; the latter delegates his authority to the Assistant City Manager on an as-needed basis. Delegation of this authority is necessary as the City routes more than 1,000 contractual agreements annually. These range from complex, capital project contracts to small-scale performer agreements. Each contract template has specific language that protects the City from liability and outlines each party's unique contractual responsibilities. Moreover, each contract is routed through an approval process that obtains authorization from various City staff before execution.
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To formalize these procedures and establish a more efficient contractual approval workflow, staff recommends updating Section 1.0 (II) (Pages 2-3) of the Purchasing Policy to include language memorializing the City Manager's authority to designate contractual signing authority to key staff members for the approval of specific types of contractual agreements. As a result of this update, signatory approval authority will be reasonably distributed among appropriate designated City staff, allowing for timely and streamlined contract executions while still abiding by the City's established contract approval process for all contracts Citywide.

Design-Build Procurement Approach

The Purchasing Policy, as written, currently authorizes four procurement approaches: 1) request for proposal, 2) invitation to bid, 3) request for qualifications, and 4) request for quote. The proposed update to Section 2.0 (II & VI) (Pages 5-6 & 9) of the Purchasing Policy recommends the addition of design-build procurement as the fifth authorized approach. Design-build is a project delivery method in which the City can contract with a single entity for design and construction. Historically, when the City has selected the design-build approach for its respective projects, City Council approval was required on a project-by-project basis due to the Purchasing Policy's specific solicitation parameters. With this proposed update, staff would no longer be required to seek the approval of the City Council to use the design-build procurement method.

However, the award of any design-build contract would still require City Council’s approval.

ALTERNATIVE ACTION

Other actions as determined by the Council.

FISCAL IMPACT

None by this Council action.

ATTACHMENTS
Purchasing Policy 11 - Redlined
8 Packet Pg. 74

Purchasing Policy

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Attachment: Purchasing Policy 11 - Redlined (Purchasing Policy Update)

TABLE OF CONTENTS

SECTION DESCRIPTION PAGE

INTRODUCTION 1

SECTION 1.0 GENERAL PROVISIONS 2

SECTION 2.0 SOLICITATION PROCESSES 4

SECTION 3.0 SUPPLIES/SERVICES/EQUIPMENT 15

SECTION 4.0 PROFESSIONAL SERVICES 18

SECTION 5.0 PUBLIC PROJECTS 21

SECTION 6.0 PURCHASE ORDER CHANGES 24

SECTION 7.0 SUPPLIER RELATIONS 26

SECTION 8.0 DEBARMENT 29

SECTION 9.0 POLICY EXCEPTIONS 30

SECTION 10.0 PROCUREMENT DURING A PROCLAIMED 32

EMERGENCY OR DISASTER

SECTION 11.0 GRATUITIES 35

SECTION 12.0 SURPLUS/TRANSFER OF PROPERTY 36

SECTION 13.0 PURCHASING WITH SPECIAL FUNDS 37

SECTION 14.0 SUSTAINABLE PURCHASING 38

SECTION 15.0 PROCUREMENT CARD 40

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APPENDICES

APPENDIX A PURCHASING STANDARDS OF CONDUCT

APPENDIX B SUMMARY OF RESOLUTIONS AFFECTING

PROCUREMENT

APPENDIX C RECYCLED PRODUCT PROCUREMENT
POLICY RESOLUTION 93-09

APPENDIX D PROTECTION OF TROPICAL TIMBER
RESOLUTION 91-91

APPENDIX E STATE OF CALIFORNIA CO-OPERATIVE
PURCHASING RESOLUTION 89-95

APPENDIX F CITY COUNCIL AGENDA ACTION AUTHORIZING CO-
OPERATIVE AND “PIGGY BACK” PURCHASING JULY 11, 1995

APPENDIX G SUPPORT OF SANTA CLARITA BUSINESS
ORDINANCE 04-12 AND ORDINANCE 09-6

APPENDIX H ENVIRONMENTALLY PREFERABLE PURCHASING (EPP)
PROGRAM RESOLUTION 09-01

APPENDIX GI UNAUTHORIZED PROCUREMENT FORM

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INTRODUCTION

Purchasing has prepared the Purchasing Policy Manual to assist customers with procurement issues. The policy manual is designed for use by managers and supervisors directing or approving purchases. Derived from the Municipal Code, the policy provides the processes to be used in making purchases to ensure compliance with the code. In the policy manual you will find a summary of the requirements of the code and the steps necessary to satisfy those requirements.

In addition to this document, there are several references available online through rNet. You are encouraged to review the Purchasing website periodically for more detailed information.

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SECTION 1.0

GENERAL PROVISIONS

I. SCOPE

All provisions listed here apply to all purchases in general. As used in this policy, unless the purchase order or contract specifically indicates otherwise:

A. "Purchasing Agent" shall mean the Purchasing and Contracts Administrator or position responsible for the day to day operations of the City’s Procurement Program.

B. Any purchase contrary to the provisions of this policy may be documented on an Unauthorized Procurement form.

II. PROCUREMENT AND CONTRACTUAL AUTHORITY

A. All purchases of $5,000 and over require a purchase order processed by Purchasing as stated in this policy, before an order is placed, unless otherwise authorized by City Council. A purchase order is not required for professional services up to $5,000; however, a written contract is required.

B. The City Manager may waive this policy as necessary by recommendation to, and approval from, the City Council with the exception of those provisions applying to Public Works.for purchases $50,000 and under.

C. The City Council may waive this policy for purchases over $50,000, except for those provisions applying to Public Works.

D. The City Manager may designate his/her contractual signing authority for all procurements and contractual agreements to the Assistant City Manager.

E. The City Manager may designate his/her contractual signing authority to the respective Director for the following types of contractual agreements:

(1) Performer/Presenter/Trainer Agreements

(2) Public Works Project Change Orders

F. The City Manager may designate his/her contractual signing authority to the respective Division Manager for the following types of contractual agreements:

(1) Sponsorship Agreements Under $10,000 (including renewals)

(2) Youth Sports Umpire Agreements

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(3) Filming Agreements

G. For contractual agreements not requiring signatory approval from a designated staff member, such as Special Event Agreements, Picnic Reservations, and Facility Reservation Agreements, or any other agreements established by the City Manager as not requiring specific signatory approvals, the respective Director shall enact and enforce an approval process within his/her Department authorized by the Purchasing Agent or City Attorney.

III. PROCUREMENT RESPONSIBILITY

It shall be the responsibility of the Purchasing Agent to:

A. Procure quality supplies and services at the least expense to the City in a timely fashion;

B. Ensure full and open competition as required in this policy and discourage uniform or collusive bidding;

C. Examine each estimate and requisition and revise it as necessary to meet statutes and policy;

D. Prepare and maintain vendor files;

E. Delegate the responsibilities of the Purchasing Agent as deemed necessary.

F.…….Ensure appropriate approval workflows are in place for all procurements, ……….subject to the thresholds outlined within this policy.

G.……..Approve all contract and agreement templates for use by City Staff, unless ……….otherwise approved by the City Attorney.

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IV. GENERAL

A. All purchases must be authorized by the Director (or designee) of the requesting department.

B. Splitting of purchases to circumvent thresholds is prohibited.

C. All listed thresholds include taxes, packing, shipping and handling.

D. Competition is required for all purchases overf $5,000. or more.

E. City Council approval is required for all expenditures over $50,000, except public projects where Council approval is required when the amount exceeds $200,000.

F. The City Manager has the authority to resolve disputes and settlements of $50,000 or less pursuant to Government Code section 935.4.

G. City Manager has the authority to review, approve and execute, on behalf of the City procurements that are consistent with all of the following criteria:

(1) The specific procurement activity does not meet the definition of a Public Works project; and

(2) The awarded contractor is not paid more than $50,000 for any given procurement activity; and

(3) The awarded contractor is not granted contract renewals for a procurement activity that would cumulatively exceed $50,000 (1st year contract + all renewals).

(4) City Council approval is required for any contract that, inclusive of …..renewals and any associated amendments, exceeds $50,000.

H. When no formal, responsive, or responsible bids are received, the City Manager (or designee), in adherence of the Public Contract Code as applicable, and the City’s municipal code, may authorize staff to negotiate a contract and bring an award recommendation, if required by this Policy, to the City Council for approval.

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SECTION 2.0

SOLICITATION PROCESSES

I. SCOPE

An appropriate competitive procurement process is required for all purchases of $5,000 and overover $5,000. This section will cover the various solicitation processes and their use as well as requests for information, material, equipment, general services, and their use. Public project procurement is governed by State Codes and is discussed separately. Although not mandatory, Purchasing will make available sample templates for the various types of solicitations for use by staff.

Recommendations for the administration of the solicitation process are also provided.

II. SOLICITATIONS

A solicitation is the document by which the City’s procurement needs and the format for responding is conveyed to vendors. The intended result of a solicitation is a procurement contract (including purchase orders and written contracts) and the solicitation must contain a process for determining the elements of a contract. There are various types of solicitations to cover different procurement situations. The most commonly used solicitations are: City forms are: Request for Quote (RFQ), Invitation for Bid (IFB), and Request for Proposal (RFP) and Design-Build.. Some professional services are required by law to use a Quality Based Selection (QBS) process. For these services, a Request for Qualifications may be used or an RFP template may be used with the elimination of the cost section.

The type of solicitation does NOT determine the method of successful vendor selection. With the exception of public projects, quotes and bids may be awarded on a basis other than lowest cost and for other than true professional services, RFPs may be awarded based on the lowest cost. The method of successful vendor selection needs to be specified in the solicitation.

There are four five types of solicitations authorized for use by this Purchasing Policy:

A. Request for Quote – The RFQ process is used for the procurement of material, equipment, and general services costing $50,000 or less where the needs of the City may be adequately defined.

B. Invitation for Bid – The IFB process is used for the procurement of material, equipment, and general services costing over $50,000 where the needs of the City may be adequately defined.

C. Request for Proposal – The RFP process is used for the procurement of professional services and general services where the City seeks proposed solutions from the marketplace to achieve goals and objectives stated in the RFP.

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D. Request for Qualifications – The Request for Qualification process is used for the procurement of certain professional services required by law to be solely based on qualifications. These are architecture, landscape architecture, engineering, environmental services, land surveying, or construction project management. These are also commonly referred to as “A&E” services.

E. Design-Build- The Design-Build contracts are a delivery method for construction projects that combines the architectural, engineering and construction services required for a project into a single contractual agreement. Such contracts are permitted under the California Public Contract Code for public works projects $1,000,000 or more.

III. REQUEST FOR QUOTE

A Request for Quote (RFQ) is a simplified solicitation with a that can be as short as one page or more than 100 pages. The format that is dependent on the circumstances of the procurement and the needs of the user.

A. The RFQ must be in writing as well as any response. The records must be retained in accordance with the City’s records retention schedule.

B. The response rate for RFQs varies, but is usually less than 25%. RFQs should be sent to as many businesses as possible to ensure a minimum of three good responsive quotes are received. The process for distributing solicitations should document when and to whom notices are sent. The process should have adequate controls to allow staff to respond intelligently to public inquiries.

C. While not required, users are encouraged to allow sufficient time to permit advertisement on the City’s website.

D. Normally, 2-3 weeks should be allowed for a response to a quote. Simple and emergency quotes may be done as quickly as vendors can respond.

E. If the RFQ is for services, it must contain a sample of the contract document.

F. The successful contractor is selected in accordance with the Municipal Code.

IV. INVITATION FOR BID

An Invitation for Bid (IFB) is a more structured solicitation reflecting the dollar value and complexity of the procurement.

A. The IFB will contain detailed instructions and the City’s terms and conditions.

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B. Notices of the IFB should be sent to all businesses that have provided information to the City as well as any known by the users to be interested in the opportunity. The process for distributing solicitations should document when and to whom notices are sent. The process should have adequate controls to allow staff to respond intelligently to public inquiries.

C. IFBs may be advertised in the local newspaper as well as posted on the City’s website.

D. Normally, IFBs should be advertised at least 30 days before the responses are due. Slightly shorter response timeframes may be permitted for simple bids for off-the-shelf commercial items. Slightly longer timeframes may be needed to support questions or pre-bid meetings/site visits.

E. The IFB and notice will state a time, date, and place for submission of bidsealed responses.

F. If the IFB is for services, it must contain a sample of the contract document.

G. The successful contractor is selected in accordance with the Municipal Code.

V. REQUEST FOR PROPOSAL

GENERAL. A Request for Proposal (RFP) solicitation is normally used for professional services or where detailed specifications scopes of work are not available and the City seeks solutions in the form of proposals from experienced and qualified firms. . RFP solicitations are very specific to the situation. As the template from Purchasing must serve a variety of purposes, it is intended to be modified for each situation. If procurement of architecture, landscape architecture, engineering, environmental services, land surveying, or construction project management (A&E Services) will be conducted using the RFP process, the cost section must be deleted.

A&E services (Architectural & Engineering) may also be procured using the Request for Qualification process described later.

A. The RFP will contain detailed instructions and the City’s terms and conditions.

B. Notices of the RFP should be sent to all businesses that have provided information to the City as well as any known by the users to be interested in the opportunity. The process for distributing solicitations should document when and to whom notices are sent. The process should have adequate controls to allow staff to respond intelligently to public inquiries.

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C. RFPs should be advertised at least twice in the local newspaper as well as posted on the City’s website.

D. Normally, RFPs may be advertised more than 30 days before the responses are due. More complex RFPs and those expected to generate a large number of questions should be advertised 45 days prior to the date responses are due.

E. The RFP must contain a sample of the contract document.

F. Users can andStaff should tailor the Scope of Work section to match their needs. Particular attention should be paid to the cost and evaluation portions.

EVALUATION. The evaluation of RFP responses and selection of successful contractor will be in accordance with the procedures identified in the RFP. It is very important this process be clear and unbiased. The process should be carefully thought through and incorporated into the RFP. There should be a minimum of three individuals to evaluate proposals. To facilitate the process a few general principles should be followed:

A. The evaluation criteria should be listed in the order of their importance.

B. The weight for each criterion should be determined and entered onto the evaluation score sheet form. The form should be prepared drafted when the RFP is prepared, but NOT included with the RFP.

C. Pricing should be requested as a separate, detachable section. The pricing format should be set up to provide all of the pricing information needed to provide a clear picture of costs. including potential changes.

D. When conducting RFP evaluations, a single individual should conduct reference checks, and that score s should be incorporated in the evaluation process by all evaluatorsincluded on the score sheets. If pricing is included, the scoring for all other criteria should be completed before opening and including evaluating the pricing.

E. Contract negotiations should begin with the highest ranked firm. Should an agreement not be reached, negotiations should be terminated with that firm and begin with the second ranked firm. The process should continue until an agreement is reached with a satisfactory firm.

VI. REQUEST FOR QUALIFICATIONS

The Request for Qualifications may use a streamlined RFP format tailored to the specific needs and calling for qualifications in lieu of a “proposal.” Most of the administrative process will be similar to that for the RFP with the exception of cost

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data. While pricing may not be considered in evaluating A&E services, a competitive process is still required by the state Government Code.

C.A. The evaluation criteria should be listed in the order of their importance.

D.B. The weight for each criterion should be determined and entered onto the evaluation score sheet form. The form should be prepared when the Request for Qualifications is prepared, but NOT published with the document.

(1)C. When conducting Request for Qualification evaluations, a single individual should conduct reference checks, and that score included on the score sheets should be incorporated in the evaluation process by all evaluators..

D. Contract negotiations should begin with the highest ranked firm. Should an agreement not be reached, negotiations should be terminated with that firm and begin with the second ranked firm. The process should continue until an agreement is reached with a satisfactory firm.

VII. DESIGN-BUILD

The Design-Build procurement method may be used for public projects over $1 million to procure both design and construction services in one solicitation process.

By using the Design-Build method of project delivery, there are benefits from such projects including reduced project costs, expedited project completion, and design features that are not achievable through the traditional Design-Bid-Build method per the PCC 22160 – 22169.

A. City may contract with a separate design architect/engineer to provide bridging documents that prescribe a design solution that the design-builder implements.

B. A Request for Qualifications may be used to short-list qualified design- builders to participate in the Request for Proposals.

C. The evaluation criteria for the Request for Proposals is based on qualifications, a design concept and a cost proposal.

D. All Design-Build projects shall be governed by a standard organizational conflict-of-interest policy. See Appendix H

VIII. PUBLIC PROJECTS

The City’s public project solicitation process is governed by the State Public Contract Code (PCC). Additionally, the City has elected to become subject to the uniform construction cost accounting procedures California Uniform Public Construction Cost

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Accounting Act.. Public projects are defined at Public Contract Code SectionPCC 22002. The procedures allow for an alternative bidding process. These alternative bidding procedures are found in PCC 22030-22050 and supplement the requirements of PCC 20100-20104.70 and PCC 20160-20189. The successful contractor will be selected in accordance with the Public Contract CodePCC.

Public project solicitations are also guided by other State Codes as well as Federal Codes when any Federal funding is involved. The dollar thresholds that follow are set by PCC 22032, which takes precedence over these figures if different. Due to the complexities involved, staff is encouraged to contact Purchasing about their specific project.

A. The alternative bidding procedure provides thresholds for the public project procurement process. For projects under $60,000 the procedure provides for the award of projects by Purchase Order other than by bidding. For staff this means that for projects between $5,000 and $60,000, the solicitation process may be a request for quote. Projects over $60,000 must be bid by either the informal (projects from $60,000 to $200,000) or formal (projects over $200,000) solicitation. The PCC provides for simplified and shortened notification procedures for informal bids.

B. Request for Quote – The public project request for quote maywill follow the normal City request for quote process with the exception of the format of and the award of the solicitation. The solicitation format maywill be modified to meet the needs of the using department and the public project. The contract will be awarded to the lowest responsible bidder and may be awarded by the City Manager or designee.

C. Invitation for Bid – Informal
Public projects over $60,000 but less than $200,000 will follow the City’s normal bid process with the changes permitted by the informal bid process cited in the Public Contract Code (PCC).

(1) The notice inviting bids must be sent to the trade journals or all firms on Purchasing’s contractor list, or both, at least 10 days before the bids are due to the City. The notice is not required to be published in the newspaper.

(2) A bid bond in an amount equal to at least 10% of the amount of the bid is required.

(3) A payment bond in an amount equal to 100% of the contract value is required for all public projects over $2560,000. Performance bonds may also be required.

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(4) The bid submissions will be displayed publicly.sealed bids will be opened and read in public.

(5) The successful bidder will be the lowest responsible bidder and the contract may be awarded by the City Manager or designee. Plans and specifications do not require the approval of the City Council.

D. Invitation for Bid – Formal
Public projects over $200,000 will follow the City’s normal bid process with the additional requirements of the Public Contract Code (PCC).

(1) The notice inviting bids must be sent to the trade journals at least 1530 days before, and to the local newspaper at least 14 days before the bids are due to the City.

(2) The plans, specifications, and contract award must be approved by the Council.

(3) A bid bond in an amount equal to at least 10% of the amount of the bid is required.

(4) A payment bond in an amount equal to 100% of the contract value is required. Performance bonds may also be required.

(3)(5) The bid submissions will be displayed publicly.sealed bids will be opened and read in public.

(6) The successful bidder will be the lowest responsible bidder and the contract will be awarded by the City Council.

E. Acceptance of Public Works Projects, Execution and Recording of Notice of Completion and Release of Bonds

(a)(1) The City Manager is hereby authorized to accept public works projects as complete upon satisfactory completion of the project.

(b)(2) Pursuant to Civil Code Section 9200, a public works project is deemed complete on the date of acceptance of the project or when there has been a cessation of labor on the project for a continuous period of 30 (thirty) days, whichever date is earlier (“Completion Date.”). Within 10 (ten) days of the Completion Date, the City Manager is hereby authorized to sign and cause to be recorded with the County Recorder’s Office a Notice of Completion.

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(c)(3) Pursuant to Civil Code Section 9362, within 10 (ten) days of recording a Notice of Completion, a copy of the Notice of Completion shall be mailed by the City by registered or certified mail to any stop notice claimant who has paid to the City the sum of two dollars ($2) at the time of filing of the stop notice.

(d)(4) The City Manager is hereby authorized to release bonds relating to public works projects upon the recommendation of the City Engineer as follows:

(a) The Performance Bond shall not be released until there has been satisfactory completion of the project

(b) The Labor and Material Bond (also known as the “Payment Bond”) shall not be released until the date of either the final disposition of all stop notices lawsuits or the date the statutory limitation period for filing a stop notice lawsuit has expired without the filing of any stop notice lawsuits, whichever is later

(c) Warranty Bonds shall not be released until the warranty period has expired.

(d) Maintenance Bonds shall not be released until the maintenance period has expired.

VIIIX. SOLICITATION PROCESS ADMINISTRATION

The solicitation process governs the interaction between Purchasing and both City staff and the City’s potential business partners. The process must be clear, open, and consistent, and provide a fair opportunity to enter the bidding process. City staff is responsible for ensuring solicitation processes are properly carried out or seek the assistance of Purchasing.

A. Sales and Use Taxes – Pricing schedules will clearly call for the taxes included in the pricing for the solicitation. Where out of state vendors indicate they are not including/collecting/or paying the use tax or fail to reflect the amount of use tax, staff will determine the amount of use tax. This will be included in the vendor’s cost for comparison purposes.

(1)B. Solicitation Responses – The City acknowledges the possibility of an imperfect solicitation response. The City believes in the concept of “substantial” compliance and reserves the right to waive or not, minor irregularities.

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(1) Late sealed bidsbid submissions may not be accepted and shall be returned unopened in accordance with Government Code Section 53068.

(2) The absence of a signature, except those on the bonds or of the notary, may be waived if the balance of the response contains those signatures to constitute a valid contract or convey convincing evidence of the intent to enter into a contract.

(3) City staff will be consistent in the application of these sections.

A.(4) Purchasing Agent or designee will have the authority to accept or reject a request by a bidder to withdraw its bid under Public Contract Code Section 5100 et.seq. Any objections to the decision by the Purchasing Agent must follow the Bid Protest procedures.

B.(5) Purchasing Agent or designee will have the authority to reject a bid as non-responsive. Any objections to the decision by the Purchasing Agent must follow the Bid Protest procedures.

C.(6) Purchasing Agent or designee will have the authority to reject all bids as permitted by the Public Contract Code.

D.(7) The Purchasing Agent or designee shall have the authority to find a bidder is not a responsible bidder as defined in Public Contract Code Section 1103. Any such finding must be in writing to the bidder and include: (1) All information in support of the finding that the bidder is not responsible; (2) A statement that if the bidder objects to the finding of the Purchasing Agent, then the bidder must follow the Bid Protest procedures and (3) As part of the City Manager's review of the protest, the bidder may meet with the City Manager to present its position on the finding.

C. Bid Correction Rules – In the case of mathematical discrepancy or discrepancies in the bid submitted, the City shall apply the following Rules to correct the bid amount:

(1) Unit prices shall govern over extended item prices.

(2) The total of the extended item pricing, if corrected by Rule #1, will govern over the Total Amount of the Bid.

(3) If the Total Amount of the Bid, as submitted by the bidder, has a discrepancy between the number amount and the amount written in words, then words shall govern. This rule shall not apply if the City

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has corrected the Total Amount of the Bid pursuant to Rule #1 and/or Rule #2.

D. Protest Procedures - Any person or entity may present a formal protest to the City with respect to solicitations being conducted by staff.

(1) Definitions

A.(a) “Bidder” - any person or firm providing a timely, written response to the City solicitation.

B.(b) “Bid Protest” - any protest with regard to the response submitted by another bidder.

C.(c) “Response” - written response to the City solicitation provided by a person or firm.

D.(d) “Solicitation Protest” - a statement of protest, dispute, challenge, disagreement, disapproval or other objection regarding documents, determinations or actions taken or contemplated by the City with respect to a solicitation.

E.(e) “Solicitation” - document by which the City identifies goods, equipment, services or public construction projects for which it seeks a response.

(2) Format

The protest must be in writing and include the following information at a minimum:

(1)(a) The name, address, and phone number of the protester, or the authorized representative of the protester;

(2)(b) The signature of the protester or authorized representative of the protester;

(3)(c) The solicitation number and title under which the protest is submitted;

(4)(d) A detailed description of the legal and/or factual grounds for the protest and all supporting documentation. For protests containing elements not based on publicly released
information, the protest must contain documentation clearly showing the date on which the protester received the
information; and

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(5)(e) The form of relief requested.

(3) Solicitation Protests

Protests of any kind regarding the solicitation including, but not limited to, specifications, scope of work, or process, must be received by the City’s Purchasing Agent not more than five calendar days after the last day for questions or the last addendum is issued, whichever is later. The decision by the Purchasing Agent on any solicitation protest shall be final.

(4) Bid Protest and Review

(a) The protest, in the Format specified above, must be submitted to the City Manager by email or by personal delivery or overnight mail (to City Hall, 23920 Valencia Boulevard, Suite 120, Santa Clarita, CA 91355) so that it is received by the City no later than seven calendar days after the bid opening.

(b) A copy of the protest must be served upon the bidder subject to the protest in the same manner by which the protest was submitted to the City Manager. Failure to serve the protest upon the bidder subject to the protest is grounds upon which the City may deny the protest.

(c) A bidder whose bid has been protested by another bidder may submit to the City Manager a written response to the protest by email or by personal delivery or overnight mail (to City Hall, 23920 Valencia Boulevard, Suite 120, Santa Clarita, CA
91355) so that it is received by the City no later than seven calendar days after the protest has been served by the
protesting bidder.

(d) The City Manager or designee shall have up to ten calendar days to decide whether to approve or reject the protest. The written decision of the City Manager or designee on the protest shall be served upon the protesting bidder and any bidder subject to the protest within 14 calendar days of receipt of the bid protest. The City Manager or designee may extend the 10 calendar days if necessary to review additional information requested from any bidder.

(e) The decision of the City Manager or designee on the bid protest shall be final with no further review.

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(5) State or Federal Funding

(a) If the subject matter of the solicitation or project is receiving any State or Federal funds which require a protest procedure different than the procedures stated above, then that protest procedure shall control.

(b) In the event there is any lawsuit filed against the City relating to any federally funded project, the City will provide prompt notice of that lawsuit to all agencies who participated in the funding of the project.

(6) Mandatory Procedure.

This administrative procedure and the time limits set forth herein are mandatory. Failure to comply with these mandatory procedures shall constitute a waiver of any right to pursue the bid protest, including filing a Government Code claim or any legal proceedings or actions.

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SECTION 3.0

SUPPLIES/SERVICES/EQUIPMENT

I. SCOPE

This section, in conjunction with Section 1, provides the requirements for the procurement of all supplies, services (other than professional), and equipment.

II. DEFINITIONS

A. Supplies - Essential materials required for the effective operation of the City.

Includes things such as, office supplies, tools, and repair materials.

B. Services - A service vendor (other than professional) generally provides maintenance and/or intangible goods, and does not typically require a license, certification, or other professional criteria to perform the work. This includes services such as equipment maintenance, janitorial, printing, landscaping, and refuse disposal.

C. Equipment - Essential hardware required for the effective operation of the City. Includes things such as vehicles, fax machines, computers, and copiers.

D. D.D.P – Delivery Duty Paid is a shipping term outlining who is responsible for arranging shipping and the material while it is in transit. D.D.P. destination means the seller arranges shipping and is responsible for the material until it is delivered to the destination and is recommended on all purchases.

E. Piggyback - Piggyback is a descriptive term referring to an activity where a third party, not part of the original contract, is allowed to place orders against the contract.

III. REQUIREMENTS

A. PURCHASES UNDER $5,000

(1) DCoded invoice - determination of price reasonableness is recommended.

(2) Evidence of a Contract - (services only) LA County is covered under a master agreement for most services.

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B. PURCHASES FROM $5,000 TO $50,000

(1) Product/service description/specifications

(2) A minimum of three (3) written quotes/proposals

(3) Evidence of a Contract - (services only) LA County is covered under a master agreement for most services.

(4) Purchase order

C. PURCHASES OVER $50,000

(1) Product/service specifications

(2) Formal bid process (See Purchasing)

(3) Evidence of a Contract - (services only) LA County is covered under a master agreement for most services.

(4) City Council approval over $50,000 (Cite date of Council meeting and agenda item number)

(5) Purchase order

D. “SHOP LOCAL” INITIATIVE

(1) Pursuant of 3.12.205 of the City’s municipal code. All bids and quotes, not using a multi-criteria award process or designated as a public project, are now required to be reviewed on a local preference basis.

Local refers to any business having a working address within the City limits. For any bid that would have been awarded to a non-local vendor, where a local vendor has come within 10% of the non-local bid, you must now contact the local vendor and offer them a chance to meet the low bid. If the closest local vendor (within 10%) is not able to meet the bid, the next lowest, local bid, within the 10% threshold will be contacted, and so on, and so on. This will continue until a local bidder has accepted the chance to meet the low bid or, all local bidders within the 10% threshold have been contacted and none could meet the low bid. Then, and only then, will the non-local bidder be awarded the bid.

IV. GENERAL

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A. All purchases of supplies/services/equipment over $50,000 require City Council approval, including cumulative and cooperative "piggyback" purchases.

B. All purchases that are delivered must be Delivered Duty Paid to the City of Santa Clarita receiving dock.

C. A Purchase Order serves as a City contract for supplies and equipment. A formal service contract, including all applicable insurance and bonds, is required for all services. LA County is covered under a master agreement for most services.

D. For purchase orders of $50,000 or less (per fiscal year), including those awarded by a formal bid process; the City Manager (or designee) may approve the purchase order. All purchase orders over $50,000 must have City Council approval evidenced by the approved agenda report or the date of the council meeting and agenda item number.

E. If you have a requisition that includes Section 3 items (supplies, services, and equipment) and Section 4 items (professional services), it will be processed as a Section 3 requisition unless directed otherwise by the City Manager (or designee).

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SECTION 4.0

PROFESSIONAL SERVICES

I. SCOPE

This section, in conjunction with Sections 1 and 2, provides the requirements for the procurement of professional services.

II. DEFINITIONS

Professional service - A professional service contractor provides expert or professional advice and generally requires special licensing, certification, education or professional designation to perform such services. Professional services include but are not limited to the following: accounting, architectural, auditing, consulting, engineering, environmental, legal, surveying, or training.

III. GENERAL

A. Formal bids are not required for professional services as they must be selected based on qualifications first, cost second. A selection process, however, is preferred and quotations or proposals are recommended from a minimum of three qualified individuals or firms to ensure adequate comparison and fair pricing.

Should negotiations prove unsuccessful with the primary professional service provider, written notice must be given to formally terminate negotiations and negotiations shall commence with the second most-qualified firm.

B. A copy of the contract must be included in all solicitations.

C. A contract or letter of agreement specifying all necessary insurance and bonding requirements is required for services under this section. LA County is covered under a master agreement for most services.

D. PURCHASES UNDER $5,000

(1) May be let to the most qualified consultant at the discretion of the Department without proposals.

(2) Subject to fair, just, and equitable terms and conditions.

(3) Require a coded invoice submission.

(4) Evidence of a Contract - LA County is covered under a master agreement for most services.

E. PURCHASES FROM $5,000 TO $50,000

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(1) May be made on the open market and are not subject to City Council approval.

(2) Contracts shall, unless infeasible or unless single-sourcing is approved by the City Manager, be based on at least three informal proposals and shall be let awarded to the most qualified firm.

(3) Require a purchase order

(4) Evidence of a Contract - LA County is covered under a master agreement for most services.

F. PURCHASES OVER $50,000

(1) Subject to City Council approval.

(2) Requests for proposals shall specify the deadline and place for submission, the nature of the services required, and the selection criteria to be used for awarding the contract.

(3) Send the RFP to many consultants; sending to a greater number of consultants increases the chances that a suitable number of responses will be obtained. It is also advisable to publicly post the RFP on trade or professional organization websites.

(4) Contracts for Professional Services should be, unless infeasible or unless single-sourcing is approved by the City Council, based on at least three proposals. A Department must also document the names of the other consultants that were contacted and failed to or declined to respond.

(5) Except as otherwise provided herein, the award of contract shall be based on qualifications, experience, and responsiveness, in addition to any other criteria set forth in the Request for Proposals.

(6) REJECTION OF PROPOSALS - In the event of one or more of the following:

1. All responses exceed the budgeted amount or the City was unable to negotiate a fair and reasonable price with any of the qualified consultants

2. There are no responsive consultants

3. There are no responsible consultants

4. The project is abandoned

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5. The specifications, scope and/or terms and conditions are revised for a new RFP

(7) All proposals may be rejected and the Request for Proposals reissued or a contract for services may be negoti ated on the open market with adequate documentation of the results of the Request for Proposals process. See item I of this section.

(8) If Staff sets out that rejection of all proposals is necessary, clear written justification should be provided. The de cision must be made objectively, not to favor or solicit select vendors.

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SECTION 5.0

PUBLIC PROJECTS

I. SCOPE

This section, in conjunction with Sections 1 and 2, provides the requirements for procurement associated with all public projects and is derived from the State Public Contract Code.

II. DEFINITIONS

A. A Public Project (also known as Public Works Projects and includes Capital Improvement Projects) - is defined in the Public Contract Code as follows:

“Public project” means any of the following:

(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility;

(2) Painting or repainting of any publicly owned, leased, or operated facility;

(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, and electrical transmission lines of 230,000 volts and higher.

(4) “Public project” does not include maintenance work. However, maintenance work may require the payment of prevailing wages under the Labor Code, depending upon the scope of the contract.

B. Maintenance work - For the purpose of public projects, “maintenance work” includes all of the following:

(1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or 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 service of irrigation and sprinkler systems;

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(5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, and electrical transmission lines of 230,000 volts and higher.

C. Facility - For the purposes of a public project, “facility” means any plant, building, structure, ground facility, utility system subject to the limitation found in paragraph 3 of the public project definition previously stated, real property, streets, highways, or other public works improvement.

III. REQUIREMENTS

A. FOR PROFESSIONAL SERVICES ASSOCIATED WITH PUBLIC
PROJECTS REFER TO SECTION 4.0

B. PROJECTS UNDER $5,000

(1) SubmittedCoded invoice

(2) Evidence of a Contract - A copy of the completed contract routing sheet is acceptable. LA County is covered under a master agreement for most services.

C. PROJECTS FROM $5,000 TO $60,000

(1) Product/service descriptions/specifications

(2) A minimum of three (3) written quotes

(3) Evidence of a Contract - LA County is covered under a master agreement for most services.

(4) Purchase Order

D. PROJECTS FROM $60,000 TO $200,000

(1) Product/service descriptions/specifications

(2) Informal bid process (See Section 2.VI)

(3) Evidence of a Contract - LA County is covered under a master agreement for most services.

(4) Purchase Order

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E. PROJECTS OVER $200,000

(1) Product/service descriptions/specifications

(2) Formal bid process (See Section 2.VI)

(3) Evidence of a Contract - LA County is covered under a master agreement for most services.

(4) City Council approval of plans and specifications as well as the award of contract and expenditure (Cite date of Council meeting and agenda item number)

(5) Purchase Order

IV. GENERAL

A. Project specifications and a contract identifying all insurance and bonding requirements are required for work contracted under this section. A copy of the contract or the Risk Manager’s Purchasing Agent’s authorization by email or memo satisfies this requirement.

B. The project manager is responsible for ensuring all requirements of the Uniform Public Construction Cost Accounting Commission Act are followed.

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SECTION 6.0

PURCHASE ORDER CHANGES

I. SCOPE

This section provides guidelines for changing established purchase orders.

II. DEFINITIONS

A. Change Order - A request to change any entry on an approved purchase order.

III. GUIDELINES

A. Generally, any change to a purchase order not affecting any money values may be made by Purchasing staff.

B. Changes resulting in a reduction in the dollar value of a purchase order may be made by Purchasing staff.

C. Changes that result in a purchase order exceeding a quote, bid, or City Council approval threshold will be required to comply with the requirements of the new threshold. City Council approval will be required to approve changes exceeding the threshold for City Council approval.

D. For change orders to purchase orders originally requiring Council approval, the following guidelines apply:

(1) Purchase orders may be established for the Council-approved contract amount, plus any Council-approved contingency amount. or $175,000, whichever is less;

(2) A change to a purchase order that results in a purchase order total dollar amount less than the Council-approved contract amount plus any Council-approved contingency can be approved by the department head or designee subject to number three below;

(3) Cumulative changes greater than $175,000 to a contract that result in a purchase order total dollar amount less than the Council-approved contract amount plus any Council-approved contingency must be approved by the City Manager and may require additional Council approval if deemed necessary by the City Manager;

(34) A change to a purchase order that results in a purchase order total dollar amount greater than the contract amount plus any Council- approved contingency requires City Council approval;

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(45) The maximum contingency is 15% unless otherwise approved by the City Manager;

(56) The change order process and contingency amounts for all City Council-approved items must be written into the recommended action in the agenda report to effect change orders stated in this policy without returning to City Council for approval. Five specific things should be addressed in the recommended action answering who, how long, how much, contingency amount, and contract/change order signature authority. An example paragraph is as follows:

“Award contract to XYZ Company for $400,000, $100,000 per year for four years, and authorize a 15% contingency expenditure should any change orders to the contract become necessary. Authorize the City Manager or designee to approve all change orders relating to this contract.” See Purchasing for additional wording for renewals.

E. For changes to purchase orders not originally requiring City Council approval, the procedures are as follows:

(1) A change to a purchase order that results in a purchase order total dollar amount less than the thresholds for City Council approval, or, for supplies/service/equipment, a purchase order total under $40,000 may be approved by the department head or designee;

(2) A change to a purchase order for supplies/service/equipment that results in a purchase order total dollar amount from $40,000 to $50,000 per fiscal year must be approved by the City Manager or designee;

A.(3) A change to a purchase order that results in a purchase order total dollar amount greater than the threshold limits requiring Council approval must be approved by the City Council.

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SECTION 7.0

SUPPLIER RELATIONS

I. SCOPE

This section provides guidelines for employees participating in transactions on behalf of the City. See also the Purchasing Standards of Conduct Policy, Appendix A.

II. ANTI-TRUST LAWS

Personnel performing a purchasing function shall not demand or negotiate a special pricing structure from a supplier that the supplier is not willing to offer to other customers under similar conditions and terms.

Violations of the antitrust laws in any of the City's operations may have far-reaching effects, causing substantial injury to the City in lengthy and expensive litigation, significant damage liability and injunctions or orders affecting property and/or business. An employee who participates in a violation may be individually and personally subject to fine or imprisonment.

III. CONFLICT OF INTEREST

Employees engaged in the purchasing function are expected to be free of interests or relationships which are actually or potentially malicious or detrimental to the best interests of the City, and shall not engage or participate in any commercial transaction involving the City in which they have a significant undisclosed financial interest.

Any employee engaged in purchasing who has assumed, or is about to assume, a financial or other outside business relationship that might involve a conflict of interest, must immediately inform the supervisor of the circumstances involved. This information is to be reviewed at an appropriate level for decision on whether a conflict of interest is present and, if so, what course of action is to be taken.

Therefore, a conflict of interest exists where an employee:

A. has an outside interest that materially encroaches on time or attention which should be devoted to the affairs of the City;

B. has a direct or indirect interest in or relationship with a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider for personal reasons or otherwise inhibit the impartiality of the employee's business judgment; place the employee or the City in an ambiguous, embarrassing or ethically questionable position; or reflect on the integrity of the City;

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C. takes personal advantage of an opportunity that properly belongs to the City.

IV. SUPPLIER SAMPLES

When suppliers offer samples for evaluation, they will be accepted only under the following conditions:

A. The product is one that is of a type presently in use or is of potential use to the City. Samples of goods not likely to be purchased must not be accepted;

B. The quantity or size of the sample is relatively small and of low value. The object of a sample is the examination of its fitness for our service - not to provide an inventory of the material;

C. Any chemical offered as supplier samples shall not be accepted unless accompanied by an OSHA Material Safety Data Sheet (SDS); (must be kept on file with individual department accepting sample and a copy submitted to Risk Management for inclusion in the City’s SDS Inventory).Technology Services for inclusion in the Fire Safety Manual);

D. If supplier samples are accepted, they shall be promptly conveyed to the appropriate department for testing. Personal use of samples is prohibited.

The supplier is entitled to a prompt evaluation of the given sample. In the event a sample is requested from a supplier to evaluate its applicability to a particular situation, such samples shall be purchased.

V. SUPPLIER TRANSACTIONS

It is the City policy to maintain and practice the highest possible standards of business ethics, professional courtesy and competence in all dealings. At all times, applicable laws must be scrupulously observed. In this regard, the following should be observed when dealing with suppliers and their representatives:

A. Accord prompt and courteous reception as well as fair and equal treatment to all suppliers and their representatives;

B. Ensure vendors are not precluded from providing price and specification quotations;

C. Ensure the confidentiality of all specifications and price quotations or bids made by suppliers until all quotations or bids are received and the contract is awarded;

D. Explain as clearly as possible to suppliers the reason for rejection of their quotations upon request;

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E. Remain scrupulously free from obligations to any Contractor;

F. Ensure all vendors receive equal treatment and information. If one vendor receives information as a result of questions asked then all vendors must be given the same information unless such information is already contained in the solicitation. Any changes to or extensions of a solicitation should be made prior to the due date for the responses. Once the due date has arrived the process must be completed. Re-bidding should be restricted to substantive changes in the specifications.

VI. SUPPLIER PERFORMANCE

Most suppliers take great care to ensure their products and service meet the City’s high standards. On occasion a product or service may not meet the City’s expectations for one reason or another. Staff needs to ensure that the level of quality contracted for is the level of quality received. To this end, Purchasing has some basic steps to take if staff encounters such a situation.

A. The first step is to provide feedback to the company. This is a good idea whether there have been problems or not.

B. For minor mistakes, notify the supplier as soon as possible. Mistakes happen on occasion and most companies will correct the problem rapidly and at no cost if notified without delay.

C. For more serious situations, provide the notification by letter and in detail.

The detail should include a request for remedy if appropriate.

D. Always let Purchasing know as soon as any problems arise. Purchasing can help you work through any problems with your vendor.

Always provide copies of any documentation to Purchasing. The City has no debarment policy (this means you cannot prevent a company form responding to a solicitation) but awards go to the lowest responsive, responsible contractor. Past performance, if well documented, can be included in the determination of whether a company is responsible. Do not hesitate to contact Purchasing if any questions arise.

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SECTION 8.0

DEBARMENT

Debarment is an action taken by Federal, State and County contracting agencies, which results in a contractor being prohibited from bidding, proposing, or being awarded and/or performing work on a contract with that agency. A contractor may be debarred for non-responsibility for any of the following reasons:

2A. Violating a term of a contract

3B. Committing an act or omission which negatively reflects on the contractor’s quality, fitness, or capacity to perform under a contract.

4C. Committing an act or omission which indicates a lack of business integrity or business honesty.

5D. Making or submitting a false claim against the agency or any other public entity.

Federal, State and County Governments maintain a database of currently debarred contractors. The list of parties excluded for Federal Procurement or Non-Procurement Programs may be accessed on the internet at http://epls.arnet.gov. City employees must ensure that bids and proposals are not accepted from contractors on a Federal, State or County debarment list.

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SECTION 9.0

POLICY EXCEPTIONS

I. SCOPE

This section provides information on exceptions to this policy such as sole source selection and emergency purchases.

II. DEFINITION

A. Sole Source – The services/products provided by the supplier are proprietary or unique in nature, such as patented or copyrighted material or an artist or performer’s work;

B. Single Source –

(1) The supplier is the only source known to the City after a reasonable search for other suppliers has been conducted;
- or -
(2) The current work requirements are an extension of the original work and substantially rely on the experience gained during the original work;
- or -
(3) Professional services work requirements are such that in the discretion of the City Manager or City Council the City’s interests are best served by awarding a contract without competition.

C. A Single/Sole Source form has been created by Purchasing and is required for all department directed Single/Sole Source requests. All single/sole source requests should be documented on a Single/Sole Source form and assigned an expiration date. See Appendix I.

D. Emergency - A situation that threatens life or property. Time constraint is NOT an adequate justification for an emergency purchase. Refer to Section

10.0 9.0 PROCUREMENT DURING A PROCLAIMED EMERGENCY OR
DISASTER for details.

III. GENERAL

A. No purchase orders are required for employee benefit payments.

B. No quoting or bidding is required for purchases of products or services from a validated sole source.

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C. Grants made by the City are not considered purchases and are not subject to the Purchasing Policy. An encumbrance may be established if desired. When the grant is disbursed, care must be taken to reference the encumbrance number (same as a purchase order number) to ensure the funds are disencumbered.

D. The formal bid process is waived for the purchase of information, technology, goods, or services which may be acquired through the quote procedures described in Sections 3.12.230 through 3.12.260 of the Municipal Code.

E. Purchases for materials, equipment, or services may be exempt from the requirement for competition by the City Manager in the event of an emergency. City Council will ratify any such procurement that would normally have required City Council approval at the next City Council meeting. Refer to section 9.0 10.0 PROCUREMENT DURING A PROCLAIMED EMERGENCY OR DISASTER for details.

F. All policy exceptions and justifications must be noted in the comments or text field of the purchase requisition.

G. For non-public project purchases, any exceptions other than those above require City Council approval.

H. For public projects, the only allowed exception is in cases of emergency.

Refer to section 9.0 10.0 PROCUREMENT DURING A PROCLAIMED EMERGENCY OR DISASTER for details.

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SECTION 10.0

PROCUREMENT DURING A PROCLAIMED EMERGENCY OR DISASTER

I. SCOPE

This section establishes procurement practices to be followed in the event of an emergency or disaster, to allow the City to effectively obtain the goods or services required in such circumstances.

The regulations in Title 2 of the Code of Federal Regulations, Part 200, as it may be amended from time to time, are incorporated herein by reference.

II. DEFINITIONS

For purposes of Section 9.0, the following definitions apply:

A. "Proclaimed emergency or disaster" – a situation in which the president or governor has declared or proclaimed a state of emergency for an area that includes the geographic territory of the City or a local emergency has been proclaimed and is currently in effect, as provided in the Santa Clarita Municipal Code.

B. "Public exigency or emergency" - situation, related to a proclaimed emergency or disaster, which demands immediate aid or action and/or presents an immediate threat to public health, life, safety, or improved property, as further defined in administrative regulations or policies.

C. "Purchase(s)" - the purchase(s), rental(s), or lease(s) of goods or services related to a proclaimed emergency or disaster.

D. "Simplified acquisition threshold" - the dollar amount below which a non-federal entity may purchase property or services using small purchase methods, as set forth in Title 2 of the Code of Federal Regulations, Part 200, as it may be amended from time to time.

III. PROCEDURES FOR COMPETITIVE PROCUREMENTS

A. Competitive procurements for purchases below the simplified acquisition threshold shall not be required to be formally bid.

B. Competitive procurements for purchases equal to or exceeding the simplified acquisition threshold shall be conducted in accordance with the following alternate purchasing procedures:

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(1)(9) Public Announcement - For public posting of requests for proposals or solicitation of bids, the Purchasing Agent may use alternate posting requirements in lieu of normal requirements. Alternate locations may include the Emergency Operations Center, City Hall, the public library, or other locations as specified by the Purchasing Agent. The Purchasing Agent may shorten the normal period for the public announcement period to expedite award, but such period shall be no less than twenty-four (24) hours.
(2)(10) Adequate Sources - The Purchasing Agent shall obtain competitive sealed bids or proposals from potential suppliers. The Purchasing Agent may use methods including, but not limited to, print, telephonic, e-mail, or online/internet outreach in order to obtain these responses. The Purchasing Agent may shorten the typical period for responses to be submitted to expedite award, but such period shall be not less than twenty-four (24) hours. A minimum of three (3) responses from qualified sources shall be obtained. All bids or proposals received, including those deemed nonresponsive by the Purchasing Agent, shall be counted toward meeting the minimum requirement.

IV. PROCEDURES FOR NONCOMPETITIVE PROCUREMENTS

A. Noncompetitive procurements may be used when one (1) or more of the following circumstances exist:

(a)(1) Public exigency or emergency will not permit a delay resulting from competitive procurement;
(b)(2) The item is available only from a single source; (c)(3) After solicitation of a number of sources, competition is determined inadequate; or
(d)(4) The federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the nonfederal entity.

B. The authorized purchaser shall document the justification for noncompetitive procurement in accordance with established procedures.

C. When a noncompetitive procurement is used due to public exigency or emergency, the procurement shall be limited to that portion of the work that

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must be performed immediately. Procurement for any additional work shall be conducted through competitive procurement procedures.

V. POST-AWARD
A. Bid Protests - The Purchasing Agent may alter and/or shorten the normal bid protest process if emergency circumstances will not permit a delay resulting from the normal bid protest process, but such period shall be no less than twenty-four (24) hours.

B. Authority to Cancel Procurements - The City Manager or designee has the authority to rescind a purchase contract for nonperformance within twenty- four (24) hours when a contractor or vendor, once awarded a contract, is unable to immediately perform under the terms of the contract.

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SECTION 11.0

GRATUITIES

I. SCOPE

This section provides guidelines on the acceptance of gratuities.

II. DEFINITION

Gratuity - a payment, loan, subscription, advanced deposit of money, service, or anything of more than nominal value, present or promised, without expectation of substantial, equal, or greater consideration in return.

III. GENERAL

A. Employees may accept items such as coffee cups, pencil holders, pens, etc. in the instance where:

(4)(1) The item is valued at less than $25;
- and/or –
(2) The name of the offering firm is clearly displayed on the item for purpose of advertisement and the item is not displayed in a conspicuous manner;

(3) Any edible item such as fruit or candy may be accepted but must be consumed by the department accepting the item.

B. Any employee accepting gratuities over the amount specified in paragraph III.A.1 will be attended to in accordance with established personnel policies.

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SECTION 12.0

SURPLUS/TRANSFER OF PROPERTY

I. SCOPE

This section provides the requirements for the transfer or sale of City-owned property.

II. DEFINITION

A. City-owned property - any supplies, materials or equipment purchased by or donated to the City for City use.

B. Surplus - no longer in use for the purpose for which it was originally purchased.

III. GENERAL

A. The Administrative Services Director, or Designee, may, by direct sales or otherwise, sell or dispose of City-owned property approved by the City Manager for such disposal.

B. No member of the Council and no employee shall be permitted to purchase any City-owned property except those items disposed of in an open public auction and only through participation in said auction.

C. The City Council may authorize transfer of City-owned property for non- monetary consideration to public agencies, educational institutions, or for other such uses deemed to be in the public’s interest.

D. The City Manager, or designee, shall have the authority to dispose of City- owned property by donation to local schools or non-profit organizations when the estimated value of such City-owned property is less than five thousand dollars ($5,000).

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SECTION 13.0

PURCHASING WITH SPECIAL FUNDS

I. SCOPE

This section provides the requirements for the use of special funds for purchasing supplies, equipment, and services.

II. DEFINITION

A. Special funds - proceeds of specific revenue sources that are restricted to expenditure for specified purposes.

B. Granting agency - The state, federal, or other agency granting funds to the City for expenditure.

III. GENERAL

Special funds may come with restrictions on the expenditure of those funds. For example, some funds may only be used to support a specific program and funds from federal sources generally require the purchasing process to follow federal procurement guidelines as well as those of the granting agency. These requirements may be complex and time consuming and should be considered when planning expenditures. The restrictions supplement and take precedence over City procedures.

It is the responsibility of the group making the purchase with special funds to ensure compliance with any requirements of the granting agency. These conditions on expenditure are usually included with the grant but may also be found in legislation or regulations associated with the source of the funds. The City group receiving such funds will ensure proper distribution of all information regarding the use of special funds received. Purchasing will assist in the determination of such regulations and their application at the request of the using department.

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SECTION 14.0

SUSTAINABLE PURCHASING

I. SCOPE

This section provides the requirementsgeneral guidance and requirements in support of sustainable purchasing of supplies, equipment, and services. The City has adopted an Environmentally Preferable Purchasing (EPP) Program included as Appendix H.

This program provides general guidance towards improving the sustainable purchasing process. Additionally, the State Public Contract Code, California Code of Regulations, and SB 1383 outlines various some specific requirements for cities to follow.

II. DEFINITIONS

A. A. Agricultural Bio-Based Products - means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials.

Recycled products – For the purpose of compliance with the State Public Contract Code, recycled products means printing and writing paper, paper products, mulch-compost and related products, glass products, lubricating oils, plastic products, paint, antifreeze, tires, tire derived products, and metal products.

B. B. Compost - means the product resulting from the controlled biological decomposition of organic solid wastes that are source separated from the municipal solid waste stream or which are separated at a centralized facility or as otherwise defined in 14 CCR Section 17896.2(a)(4). Compost eligible for meeting the annual recovered organic waste product procurement target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements.

Businesses - includes bidders, contractors, and other interested parties that provide services to, or sell products to, the state.

C. Dioxins and furans - are a group of chemical compounds that are classified as persistent, bio accumulative, and toxic by the Environmental Protection Agency.

D. Energy Efficient Product - means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards.

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E. LEED Rating System - means the self-assessing system, Leadership in Energy and Environmental Design, developed by the U.S. Green Building Council designed for rating new and existing commercial, institutional, and high-rise residential buildings. Credits are earned for satisfying defined criteria and standards. Different levels of green building certification are awarded based on the total credits earned. The LEEDTM Green Building Rating System is described at http://www.usgbc.org.

F. Paper Products - include but are not limited to paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51).

G. Postconsumer material - means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes

H. "Practical" and "Practicable" - mean whenever possible and compatible with state and federal law, without reducing safety, quality, or effectiveness.

I. Preconsumer Material - means material or by-products generated after manufacture of a product is completed but before the product reaches the end- use consumer. Preconsumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process.

J. Printing and Writing Paper - includes, but is not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54).

K. Recycled Content - means the percentage of recovered material, including preconsumer and postconsumer materials, in a product.

L. Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper - means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the California Public Contract Code, and as amended.

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M. Recycled Product - means a product that meets City of Santa Clarita's recycled content policy objectives for postconsumer and recovered material.

See also “Recycled Content Paper Product” definition for paper product specifications.

N. SB 1383 Eligible Mulch - means mulch eligible to meet the Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions as specified by 14 CCR Section 18993.1(f)(4):

1. Produced at one of the following facilities:
i. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10); SB 1383 Eligible Mulch excludes mulch from chipping and grinding operations.
ii. A transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or, iii. A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2.

2. Meet or exceed the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Sections 17852(a)(24.5)(A)1 through 3.

O. U.S. EPA Guidelines - means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency purchases as of May 2002 and described at
http://www.epa.gov/epaoswer/non-hw/procure/products.htm, or as updated.

P. Water-Saving Products - are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water-conserving than the minimum level that meets the Federal standards.

C. Postconsumer material - means a finished material that would have been disposed of as a solid waste, having completed its life cycle as a consumer item, and does not include manufacturing wastes.

III. GENERAL
It is the policy of City of Santa Clarita to:

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A. Purchase products that minimize environmental impacts, toxins, pollution, and hazards to worker and community safety to the greatest extent practicable,

B. Institute practices that reduce waste and minimize environmental impacts whenever practicable and cost effective by increasing product efficiency and effectiveness, but without reducing safety or workplace quality while promoting the fair treatment of all races, cultures and incomes with respect to this policy,

C. Purchase products that include recycled content, are durable and long-lasting, conserve energy and water, use agricultural fibers and residues, reduce greenhouse gas emissions, use unbleached or chlorine free manufacturing processes, are lead-free and mercury-free, and use wood from sustainably harvested forests,

D. Encourage vendors, contractors and grantees to implement this program for all products and services provided to City of Santa Clarita.

IV. SPECIFICIATIONS

A. Source Reduction

1. City of Santa Clarita shall institute practices that reduce waste and result in the purchase of fewer products whenever
practicable and cost-effective, but without reducing safety or workplace quality.

2. City of Santa Clarita shall purchase remanufactured products whenever practicable, but without reducing safety, quality or effectiveness

3. All buyers shall evaluate short-term and long-term costs in comparing product alternatives, when feasible. This includes consideration of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance, disposal costs and expected lifetime compared to other alternatives.

4. Products that are durable, long lasting, reusable or refillable are preferred whenever feasible.

B. Recycled Content Products

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1. California Public Contract Code (PCC) Sections 22150-22154 outline these requirements. The City will give preference to buying the recycled content products as outlined in the PCC whenever recycled products are available at the same or lesser cost and fitness and quality are equal.

Also, in accordance with the PCC, the City will require the vendor to certify the recycled content and the recyclability of the products being provided.

2. City staff shall strive to incorporate the requirements the U.S. EPA has established for various materials, such as those for construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous, and non-paper office products. The programs are known as the Comprehensive Procurement Guidelines (CPG) and Recovered Materials Advisory Notice (RMAN). These programs are updated periodically to identify categories of material for which there are recycled content alternatives and the recommended recycled contents

3. Janitorial paper products shall contain the highest postconsumer content practicable, but no less than 30 percent by fiber weight, postconsumer fiber, as outlined in Sections 22150-22154 of the Public Contract Code and as defined in Section 12209 of the Public Contract Code.

4. Printing and writing paper, office paper, and paper products shall contain the highest postconsumer content practicable, but no less than 30 percent by fiber weight, postconsumer fiber, as outlined in Sections 22150- 22154 of the Public Contract Code and as defined in Section 12209 of the Public Contract Code.

5. Vendors shall certify in writing, under penalty of perjury, as to the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the Jurisdiction. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website. These products shall also be certified to be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

6. Copiers and printers bought shall be compatible with the use of recycled content products.

7. In accordance with California Public Contract Code, Sec. 10409, City of Santa Clarita shall purchase recycled lubricating and industrial oil for use

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in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment (see http://apiep.api.org/quality/index.cfm for information about API's Engine Oil Licensing and Certification System).

8. When specifying asphalt concrete, aggregate base or portland cement concrete for road construction projects, City of Santa Clarita shall use recycled, reusable or reground materials when practicable, including, but not limited to, in-place recycling of asphalt concrete, aggregate base and portland cement concrete; rubberized asphalt concrete; recycled aggregate base; recycled fly ash content concrete or recycled asphalt concrete.

9. City of Santa Clarita shall specify and purchase recycled-content transportation products, including signs, cones, parking stops, delineators, and barricades, including recycled products approved by the California Department of Transportation (Caltrans).

10. City of Santa Clarita shall specify and purchase carpet with 100% total recycled PVC backing, solution dyed nylon face fiber and permanent or durable anti-microbial treatment.

C. Forest Conservation

1. To the greatest extent practicable, City of Santa Clarita shall not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. When possible, City of Santa Clarita shall give preference to wood products that are certified to be sustainably harvested by a comprehensive, performance- based certification system, such as the Forest Stewardship Council.

Further guidance may be found in the City of Santa Clarita's Hardwood resolution.

D. Toxins and Pollution

1. When replacing vehicles, regular diesel shall be phased out and replaced with less polluting alternatives such as low sulfur or bio-diesel, gasoline, compressed natural gas, biobased fuels, hybrids, hydrogen fuel cells and electric batteries.

2. To the extent practicable, no cleaning or disinfecting products (i.e. for janitorial or automotive use) shall contain ingredients that are eye or skin irritants, neurotoxins, carcinogens, mutagens, or teratogens. These

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include chemicals listed by the U.S. EPA or the National Institute for Occupational Safety and Health on the Toxics Release Inventory and those listed under Proposition 65 by the California Office of Environmental Health Hazard Assessment. If products must be used that contain these toxic materials, ensure that only the minimum amounts are used and the product is disposed of properly. To the extent practicable, cleaning or disinfecting products should include biodegradability, be in concentrated form, be non-aerosol and have a recyclable container made of plastic numbers 1 or 2.

3. The use of chlorofluorocarbon-containing refrigerants, solvents and other products shall be phased out and new purchases shall not contain them.

4. All surfactants and detergents shall be readily biodegradable and, where practicable, shall not contain phosphates.

5. All interior paint shall contain the lowest concentrations practicable of volatile organic compounds (VOCs), but as a minimum shall not exceed 50 grams VOC per liter (50g/l) for flat paint and 150 grams per liter (150g/l) for non-flat paints, as determined in accordance with U.S. EPA Test Method 24, CFR Title 40, Part 60, Appendix A. For exterior paints, preference shall be given to paints containing at least 50 percent recycled content (post-industrial and postconsumer) and/or VOC concentrations less than 150g/l (U.S. EPA Test Method 24). All adhesives shall meet South Coast Air Quality Management District Rule 1168.

6. To City of Santa Clarita shall reduce or eliminate its use of products that contribute to the formation of dioxins and furans.

7. City of Santa Clarita shall purchase products and equipment with no lead or mercury whenever possible, including automotive vehicles, equipment and lighting. For products that contain lead or mercury, City of Santa Clarita shall give preference to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs.

8. To facilitate the reprocessing of paper waste the City shall call for the use of soy/vegetable-based and/or environmentally friendly inks for all printing.

E. Energy and Water Savings

1. When replacing vehicles, regular diesel shall be phased out and replaced with less polluting alternatives such as low sulfur or bio-diesel, gasoline,

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compressed natural gas, biobased fuels, hybrids, hydrogen fuel cells and electric batteries.

2. When practicable, City of Santa Clarita shall replace inefficient lighting with energy efficient equipment.

3. All appliances purchased by City of Santa Clarita and for which the U. S.

EPA Energy Star certification is available shall meet Energy Star certification. When Energy Star labels are not available, choose energy efficient products that are in the upper 25% of energy efficiency as designated by the Federal Energy Management Program.

4. Wherever City of Santa Clarita replaces roofs, Energy Star-qualifying roof materials shall be used.

5. City of Santa Clarita shall purchase high efficiency space heating systems that use natural gas rather than electricity, and have an annual fuel utilization efficiency (AFUE) of 0.86 or greater, whenever practicable

6. City of Santa Clarita shall purchase high efficiency space cooling equipment with an energy efficiency rating (EER) of 11.5 or greater, whenever practicable.

7. City of Santa Clarita shall purchase water-saving products whenever practicable.

F. Green Building- New Construction

1. Staff will evaluate on a case by case basis the costs and benefits of achieving certification through the Leadership in Energy and Environmental Design (LEED) program for new construction.

G. Waste Minimization

1. City of Santa Clarita requires vendors to eliminate packaging or use the minimum amount necessary for product protection, to the greatest extent practicable.

2. Packaging that is reusable, recyclable or compostable is preferred, when suitable uses and programs exist.

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3. Vendors shall be encouraged to take back and reuse pallets and packaging materials.

4. Suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, shall be required to take back equipment for reuse or environmentally safe recycling when City of Santa Clarita discards or replaces such equipment, whenever possible.

H. Landscaping

1. Workers and contractors providing landscaping services for City of Santa Clarita shall employ sustainable landscape management practices whenever possible, including:

• The use of Integrated Pest Management (IPM), including minimal pesticide use is encouraged.

• Meeting all MWELO requirements including use of compost and mulch, meeting the definitions contained in this policy.

• Grasscycling (leaving the clippings on the lawn) or mulching mowers is required for at least 50% of all mowings.

• Pruning shall be done on an as needed basis. Thinning is the preferred method of pruning. Minimal heading or shearing is encouraged.

• Fertilizing should be done on an as needed basis, as indicated by a soil analysis. Slow release and/or organic fertilizers are preferred.

• Irrigation scheduling based on weather (evapo-transpiration rates) is required whenever possible. Drip irrigation is preferred whenever practical.

• Turf areas where drip irrigation is not appropriate should be limited to walking and play surfaces. All other landscaping (such as for views) should be accomplished with low-water plantings.

• Recycling of plant debris by composting and/or maintaining a minimum 2-inch layer of mulch under all trees, shrubs and groundcovers and a minimum 3-inch layer in all open areas is strongly encouraged. Allowing leaf drop to become part of the mulch layer in tree, shrub and groundcover areas is preferred.

2. Compost and mulch procurement

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• Compost or mulch procured by or for the City, or at the City’s behest, by its landscaping service providers or other contractors or vendors shall meet the definition of compost and mulch in this policy and shall be eligible to help the City meet its SB 1383 organic waste product procurement target.

• Vendors providing compost or mulch to the City shall certify that it meets the definitions of such contained in this policy and provide information on the name, physical location, and contact information of each entity, operation, or facility from whom the recovered organic waste products were procured.

3. Plants should be selected to minimize waste by choosing species that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them and perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering once established are preferred.

4. Hardscapes and landscape structures constructed of recycled content materials are encouraged. Concrete substitutes are encouraged for walkways, such as rosin emulsion paving.

I. Agricultural Bio-Based Products

1. Vehicle fuels made from non-wood, plant-based contents such as vegetable oils are encouraged whenever practicable.

2. Paper, paper products and construction products made from non-wood, plant-based contents such as agricultural crops and residues are encouraged whenever practicable.

J. Electronics

1. Electronic equipment procurement policies shall seek to preserve resources by reducing the purchase frequency and pursuing upgrade opportunities to the extent feasible. Items containing more than 20% recycled material by content may qualify for a preference.

2. Acquisitions for electronic equipment should include “take back” provisions. Vendors shall be required to accept replaced equipment for recycling and proper disposal. Where possible, acquisitions shall require vendor to accept equipment back for recycling and proper disposal when it has reached the end of its useful life or is no longer working.

3. Recognizing that electronics is one of the fastest growing sources of hazardous waste, the City will purchase at least 95% of all electronic

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products from the list of EPEAT registered equipment where there exists an EPEAT standard. Further, the City will make at least 85% of its purchases from the Silver level tier or above.

4. Specifications for electronic equipment shall give preference to equipment manufactured with less toxic components or processes.

5. Upon installation, electronic equipment will have all energy management features activated as the default setting.

State Public Contract Code Section 22150 requires cities to purchase recycled products if fitness and quality are equal and the recycled items are available at the same or lesser total cost as non-recycled items.

State Public Contract Code Section 22152 requires cities to require businesses to certify in writing the minimum, if not exact, percentage of postconsumer materials in the products, materials, goods, or supplies, offered or sold.

All printing contracts shall require recycled content paper.

Appendix H provides additional information to support the Council’s goal of supporting sustainability.

IV. REQUIRED ACTIONS

A. Comply with California State requirements for local agencies to maximize the use of recycled resources and purchase recycled products. (Title 14 CCR, Division 7, Chapter 12; California Public Contract Code 22150-22154)

B. Comply with 14 CCR Section 18993.3 re: recycled content paper procurement requirements.

C. Comply with SB 1383 regulatory requirements regarding procurement of recycled content products and recovered organic waste products.

D. All City purchases will encourage businesses to identify potential recycled product candidates with postconsumer waste. They may be offered as alternatives to or equivalents for any products requested.

E. All City purchases will require responding businesses to certify the postconsumer content of the products being offered even if that content is zero.

F. All City contracts resulting in printed materials will require the printing to be on recycled paper.

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G. Tracking and maintaining a record of recycled content paper purchases in an SB 1383 implementation record. Such records shall include proof of purchase describing procurement of paper products by volume and type for all paper purchases and copies of certifications or other verifications required documenting recycled content and recyclability.

H. Tracking and maintaining a record of recovered organic waste products procured at the city’s behest in an SB 1383 implementation record. Such records shall include all invoices or similar records evidencing all procurement, including records of procurement made by the City and/or by a direct service provider on behalf of the City, should such procurement be arranged. Records will also include the name, physical location and contact information of each entity, operation or facility from whom the recovered organic waste products were procured and a general description of how the product was used and if applicable, where it was applied.

A. All City purchases will encourage businesses to identify potential recycled product candidates with postconsumer waste. They may be offered as alternatives to or equivalents for any products requested.

B. All City purchases will require responding businesses to certify the postconsumer content of the products being offered even if that content is zero.

C. All City contracts resulting in printed materials will require the printing to be on recycled paper.

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SECTION 15.0

PROCUREMENT CARD

I. SCOPE

The City has a program whereby regular employees (with Director’s approval) may obtain a City procurement card. The procurement card allows employees to purchase goods under the City’s Purchasing Policy threshold. It eliminates the need to generate a requisition when the purchase is for less than the current purchase order threshold. A requisition, however, is not required for purchases over the threshold when Purchasing staff selects to use a procurement card. Purchasing staff will determine when it is cost effective and efficient to use a procurement card for purchases over the threshold; an internal vetting process and approval process is conducted for this scenario.

The procurement card is intended only for official City business as outlined in the Purchasing Policy. The card will not be used to circumvent purchasing procedures and purchases will not be split to circumvent the requirements of the Purchasing Policy. Approving officials/supervisors shall carefully scrutinize cardholder purchases of food, electronic items, and any other item that may be easily convertible to personal use.

II. ADMINISTRATIVE

A. Appointing Cardholders and Approving Officials - Procurement cards may only be issued to regular employees. In limited exceptions, procurement cards may be issued to part-time employees with the approval of the City Manager or designee. Procurement cardholders and approving officials will be approved by the Department Director or designee. The approving official will typically be the cardholder’s supervisor. Exceptions to this policy will be approved by the City Manager or designee.

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B. Audits - To ensure the continued success of the procurement card program, all accounts will be open to internal audit requirements. Monthly review of transactions may be conducted by the internal procurement card team.

The procurement card program will also be included in the City’s annual financial audit. Each audit will include a review of the program as well as a sample of overall cardholders.

C. Changes - If a procurement cardholder changes departments, the Program Coordinator must be contacted within 10 days to notify him/her of changes.

Cards must be returned to the Program Coordinator.

If a card is needed as part of a new staffing responsibility, complete a new request form/application and have it signed by the approving official and Department Head. If a procurement cardholder’s approving official changes, contact the Program Coordinator within 10 days.

D. Extended Absence - If a procurement cardholder will be absent from the City for an extended period, upon notification from Human Resources, please seek assistance from the Program Coordinator to determine the best options to cover the procurement card responsibilities, including, but not limited to, temporary return of the card to the Program Coordinator or placement of card in inactive status.

E. Resignation/Termination of Employment – A procurement cardholder must return the procurement card to the Program Coordinator upon the resignation or termination of employment with the City. Supervisors must collect cards as part of the employee check-out process, and return cards to Purchasing within 5 days of procurement cardholder’s separation of employment.

F. Reports - Informational reports are available to managers and approving officials. Managers and approving officials are encouraged to contact the Program Coordinator about specific reporting needs.

III. PROHIBITED ITEMS & SAFEGUARDING THE PROCUREMENT CARD

The procurement card should always be treated with great care. The only person entitled to use the procurement card is the person whose name appears on the face of the card. The procurement card may NEVER be used for personal use even if reimbursement is intended.

It is very important that cardholders secure them properly. Failure to promptly report a lost, misplaced, or stolen procurement card could result in the City being held responsible for any charges incurred.

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The procurement card may not be used to purchase any of the following items unless approved by the Department Director in writing. Should any questions arise about items that may be purchased, please contact Purchasing staff for clarification.

1.A. Alcoholic beverages

2.B. Ammunition

3.C. Art work

4.D. Local food (confirm beforehand that you may make the purchase with your approver and notify Purchasing about the transaction)

5.E. Car washes (except for vehicle maintenance)

6.F. Transit Passes

7.G. Cash Advances

8.H. TechnologyComputer hardware/software or peripheral purchases, except by Technology Information Services Manager or designee

9.I. Contractors, consultants, instructors, or speakers

10.J. Gift cards

11.K. Medical services, drugs, narcotic drugs, or medical supplies

12.L. Service agreements

13.M. Tuition Reimbursements

IV. PLACING ORDERS WITH THE PROCUREMENT CARD

When involved in any aspect of purchasing, employees are acting as an agent of the City of Santa Clarita and are responsible to act in the best interest of the City. Actions must not show personal favoritism to a merchant at the expense of the City.

Cardholders are required to properly document all procurement actions. This includes, but is not limited to, recording all information on the transaction log and obtaining receipts for the items purchased. If a receipt is not offered, one must be requested. Repeated failures to obtain and forward receipts may result in loss of card privileges.

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A. Transaction Limits - There are two types of transaction limits determined when the procurement card is ordered. These limits may be raised, but must be submitted in writing by the Division Manager with approval of the Department Director.
(1) Dollars per transaction (single purchase limit)
(2) Monthly limit - limit set per cardholder, at Department’s discretion.

B. Documenting Transactions - Cardholders must maintain the following records and documentation:
(1) Procurement card transaction log (to be submitted to Finance when reconciling statement monthly)
(2) Receipts from transactions (itemized when appropriate; such as for travel meals)
• In the event of a missing receipt, staff must follow the missing receipts process included within the transaction log.

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(3) Pertinent information to record for each transaction includes:
i.(a) Transaction/purchase date
ii.(b) Receipt/Invoice number
iii.(c) Description of purchase
iv.(d) Merchant’s name
v.(e) Account number to be used for charge
vi.(f) Total purchase amount
C. Returns and Billing Errors - Merchandise returns and billing errors are the cardholder's responsibility. Cardholders must communicate with merchants to process returns, correct billing errors, and ensure the proper credit has been issued. In most cases, returns and errors can be resolved directly between the cardholder and the merchant.

D. Accidental Personal Purchases – The Cal Card should NEVER under any circumstances be used for personal business. In the event that a personal charge is accidentally made, it is imperative to immediately contact Finance or Purchasing.

E. Reasons for Declination or Rejection- Card may be rejected for the following reasons. Please contact Purchasing or the customer service number on the back of your card to verify:
(1) The cardholder has exceeded their individual transaction limit (single purchase limit)
(2) The cardholder has exceeded their monthly transaction dollar limit (3) The procurement card has been canceled, or reported lost or stolen (4) The procurement card is being flagged for possible fraudulent activity V. RECONCILING THE MONTHLY STATEMENT

Procurement cardholders are required to substantiate all transactions shown on their monthly billing statements, and edit the account code(s) for accurate cost accounting.

Once the statement is received, cardholders have approximately one (1) week to complete verification. If a cardholder is unavailable to complete the required review during this time, they are

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responsible for designating someone in their area to complete it in the cardholder’s absence).

The approving official is responsible for ensuring each purchase transaction is appropriate and approved for payment. If a purchase has been made using a fund that the cardholder’s approving official can’t approve, the correct approver’s initials for that purchase must be obtained prior to submitting the statement. The completed statement and all back-up documentation must be submitted to Finance for processing.

The City earns rebates based on the timeliness of submitting payments. Payments can’t be made until all open statements for the billing cycle have been reconciled and turned in to Finance for payment. Lengthy delays in submitting statements may result in suspension or termination of card.

If a Cardholder makes a purchase for a fund outside of their approving official’s signing authority, they are responsible for obtaining the correct approver’s signature or initials for that purchase on the log sheet. when reconciling.

A. Statements Not Received – Cardholder must contact Purchasing if they do not receive a statement and have charged items on a procurement card.

C.B. Timely Statement Submission - The City earns rebates based on the timeliness of payments. These payments can’t be made until all cardholder statements have been reconciled and turned in to Accounts Payable for payment.

Lengthy delays in submitting statements may result in card suspension.

D.C. Billing Disputes - A dispute is the action taken by the cardholder to notify the procurement card company that a specified charge(s) appearing on the monthly statement is (are) an unauthorized transaction(s). (1) Cardholders should attempt to resolve dispute issues first with the merchant.
(2) Disputes may be escalated by opening a formal Customer Dispute.

Contact the procurement card bank for instructions on how to proceed.

E.D. Fraudulent Charges
a.(1) Confirm that the information supports a determination of fraudulent action. This means a cardholder has reason to believe procurement card information is being used by another party to place unauthorized orders. b.(2) Immediately notify Purchasing of fraudulent activity.

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c.(3) Immediately call the procurement card bank customer service number and report the suspected fraud. Cardholder will be connected with the fraud unit for further reporting and instruction.
d.(4) Make a clear note on the individual statement of the fraudulent charge(s).

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APPENDIX A

PURCHASING STANDARDS OF CONDUCT

CITY OF SANTA CLARITA
Standards of Conduct Background for Purchasing Staff

In recognition of the special trust inherent in Purchasing Staff positions charged with guiding the expenditure of public funds, the highest standards of conduct are considered essential.

These expectations are reflected in the Standards of Conduct established by this policy and are applicable to all city employees assigned to Purchasing under the supervision of the Purchasing Agent.

The California Code of Regulations and State Government Code provide basic guidance regarding financial conflicts of interest. The intent of this policy is to supplement the financial conflict of interest regulations with broader standards of conduct and cover procurements involving federal funds.

POLICY

All conflict of interest regulations as stated in the California Code of Regulations and Government Code are considered an integral part of this policy. No part of this policy will alter or supersede any portion of the City or State guidance on conflict of interest. All requirements of this policy are additive to the City and State guidance.

In order to prevent the perception of favoritism, all administrative processes will be followed diligently, consistently and openly.

One of the primary responsibilities of public servants is the protection of public confidence and trust in the integrity of governmental processes. Any conduct which may detract from this trust is prohibited. The mere “appearance” of a conflict of interest may result in the same damage to public trust in government as actual wrongdoing. Action or inaction that results in the “appearance” of conduct prohibited by this policy is also prohibited.

DEFINITIONS

Financial interest – Financial interest will be the same as defined in the Statement of Economic Interest Form 700.

Immediate family member – Parents, siblings, spouse or partner, parents and siblings of spouse or partner and children.

Organizational conflict of interest – Organizational conflicts may result in bias or unfair competitive advantage. An organizational conflict of interest occurs where – because of other activities, financial interests, relationships, or contracts – an employee or contractor is unable, or potentially unable, to render impartial assistance or advice to the City; the

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Personal conflict of interest – A personal conflict of interest arises when an employee or immediate family member has a financial interest in a firm selected, or competing, for a contract. A personal conflict of interest also arises where any employee solicits or accepts gifts, gratuities, favors, or anything of monetary value from a firm under contract or potentially seeking a contract. In addition, a personal conflict of interest arises where any such person uses his position, or non-public information gained during his work for the City, for personal gain, including gain inuring to an immediate family member.

Personal gain – includes gain inuring to immediate family members unless otherwise stated.

Purchasing staff – The Purchasing Agent and any employee under the supervision of the Purchasing Agent.

STANDARDS OF CONDUCT

Purchasing staff will:

•A. Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications.
•B. Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer. •C. Immediately report any potential conflicts of interest to their supervisor. •D. Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, procurement recommendations or decisions.
•E. Refrain from the use of City property or resources for personal advantage. •F. Avoid inequitable treatment of vendors to include, favoritism, unnecessary use of brand names and organizational conflicts.
•G. Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.

1. PERCEIVED IMPROPRIETY
Purchasing staff will avoid the intent and appearance of unethical or compromising conduct in relationships, actions, and communications.

1 - Generally, an organizational conflict arises because a person or entity has or appears to have loyalties to, or a financial interest in, two organizations that may have competing or differing interests from each other -- one of them being the grantee. For example, an organizational conflict would arise if an employee or a consultant serves as a member of a public or quasi-public body with regulatory authority over a project or has a stake in its outcome.

This arises most often where architects sit on design review or zoning boards. 2 - Federal transit law requires grantees to award contracts through a process of full and open competition.

Organizational conflicts of interest that give any party an unfair competitive advantage impede full and open competition, and thus are considered “restrictive of competition” under Paragraph VI.2.a(4)(h) of FTA Circular 4220.1F.

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Attachment: Purchasing Policy 11 - Redlined (Purchasing Policy Update) Purchasing Policy January 2020 Change 10 Appendix A Page 3 The consequences of a perceived impropriety can be the same as consequences of an actual impropriety. Therefore, it is essential that any activity or involvement between Purchasing staff and active or potential suppliers which in any way diminishes, or even appears to diminish, open and fair treatment of suppliers shall be strictly avoided. Those who do not understand the circumstances will judge based on appearances. Purchasing staff must consider this and act accordingly.

The following are recommended guidelines in dealing with perception:

a)• Situations may occur in which, through unanticipated circumstances, a business relationship transpires with a personal friend. The perception (as well as the potential) of a conflict of interest should be discussed with management, and a reassignment of procurement responsibility should be considered.
b)• Business meeting locations should be carefully chosen. Environments other than the office may be perceived as inappropriate by the business community or by co- workers.
c)• Displays of personal preference may give an impression of impropriety and should be avoided. Conversation that delves excessively into personal affairs should be avoided. d)• Positive action should be taken by management to alleviate suspicion of impropriety.

This does not mean you or your immediate family cannot have friends in the business community or even ones that do business with the City. What it does mean is that when they become involved with a purchase or contract, you must notify your supervisor.

2. CONFLICT OF INTEREST
Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the employer.

Purchasing staff must not use their positions in any way to induce another person to provide any benefit to themselves, or persons with whom they have family, business, personal, or financial relationships. Even though a conflict may not technically exist, staff must avoid the appearance of such a conflict. Whenever a potential conflict of interest arises, the employee should notify the appropriate supervisor for guidance or resolution.

The following are recommended guidelines to avoid conflicts of interest:

Conduct to be Avoided

e)• Engaging in outside business, or employment by an outside organization, which may encroach upon the supply professional’s primary responsibility of loyalty to the goals of the City.
f)• Engaging in improper personal business with or employment by, an organization which has or may conduct business with the City. Examples include but are not limited to:

A.a) Owning or leasing any property with knowledge that the employer has an active or potential interest therein.

B.b) Having a direct or indirect interest in or relationship with a non-employee that is inherently unethical or that might be implied or construed to be unethical, or make possible personal gain due to the employee's ability to influence

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C.c) Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain.

D.d) Using the City’s name (unless authorized) to lend weight or prestige to sponsorship of a political party or cause, or endorsing the product or service of another organization.

a.• Taking personal advantage of an opportunity that properly belongs to the City or using City property or resources for personal gain.
b.• Willfully or unlawfully concealing, removing, mutilating, falsifying or destroying any government document or record, nor will he or she make any false or fictitious statements in connection with any official matter, document or record.

Personal Investment

Ownership of stock in a supplier or potential supplier of goods or services should be reported to the supervisor for review and guidance to avoid the potential for impropriety. Interests by members of the professional’s immediate family are considered to be of the same significance as direct ownership.

Outside Activities

Purchasing staff must not use their position with their employer when participating in outside educational, professional, political, philanthropic, social, or recreational activities, which might be detrimental to their employer’s business or reputation.

3. ISSUES OF INFLUENCE

Avoid soliciting or accepting money, loans, credits, or preferential discounts, and the acceptance of gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, supply management decisions.

Those in a position to influence the supply process must be dedicated to the best interests of the City. It is essential, for all in a position to influence a purchasing decision, to avoid any activity which may diminish, or even appear to diminish, the objectivity of the decision- making process.

In some circumstances, items which could be considered an issue of influence may be a bona fide business activity. In such cases, extreme care should be taken to evaluate the intent and the perception of acceptance of such an offer to ensure:

g)• It is legal.
h)• It is in the best interests of the City.
i)• It will not influence the purchasing decision.
j)• It will not be perceived by peers or others to be unethical.

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k)• Management Policies
l)• Gifts, Gratuities, and Entertainment
m)•Product Samples
n)• Business Meals
o)• Personal Relationships
p)• Political Considerations
q)• Advertising
r)• Specifications and Standards

The following are recommended guidelines when dealing with issues of influence:

Gifts, Gratuities, and Entertainment

Gifts, gratuities, and entertainment include material goods, services, or activities offered with the intent of, or providing the potential for, influencing a buying decision. As such, these may be offered to a supply professional or to other persons involved in the procurement process (or members of their immediate families). They may be offered in various forms.

s)• Extreme caution must be used in evaluating the acceptance of gifts, gratuities, or entertainment, even if of nominal value and the frequency of such actions (the collective impact) to ensure that one is abiding by the letter and the spirit of these guidelines.
t)• Soliciting gifts, gratuities, or entertainment in any form for yourself, other staff or the City is unacceptable.
u)• Avoid accepting monies, credits, and prejudicial discounts. v)• Comply with the nominal value established by the City Manager memo to address supplier offerings of nominal value as a gesture of goodwill, or for public relations purposes.
w)• Refuse gifts exceeding nominal value, and return them with a polite explanation, or if perishable, either return the gifts or donate them to a local charity in the name of the supplier.
x)• Seek direction of management if concerned that a business relationship may be impaired by refusal of a gift, gratuity, or entertainment.

Business Meals

Occasionally, during the course of business, it may be appropriate to conduct business during meals.

y)• Such meals shall be for a specific business purpose. z)• Frequent meals with the same supplier should be avoided. aa)•Purchasing staff must pay for their share of the meal expenses.

Personal Relationships

Personal relationships are an inherent aspect of supply management. Purchasing staff interact extensively with suppliers’ representatives. Individuals in many other functional areas in both

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Attachment: Purchasing Policy 11 - Redlined (Purchasing Policy Update) Purchasing Policy January 2020 Change 10 Appendix A Page 6 the buying and supplying organizations also interact extensively with each other. The development of personal relationships from such interactions is both expected and desirable as it leads to relationships based on understanding and trust. It must also be recognized that the purchasing decision must not be influenced by anything other than what is in the best interest of the organization, and that personal relationships that develop beyond what is necessary to ensure understanding and trust may be inappropriate. It is important, therefore, for staff to closely monitor the nature of relationships with suppliers’ representatives to ensure that personal friendships do not develop that would result in decisions not in the organization’s best interest.

Political Considerations

All organizations are subject to internal and external forces and pressures. Internal forces and pressures result from an organization’s culture. External forces and pressures consist of economic conditions, laws, regulations, public opinion, special interest groups, and political entities. The negative influence of internal and external forces and pressures on supply management can be minimized when the organization adopts practices based on ethical principles and standards.

Advertising

Care should be exercised when accepting promotional items or participating in activities which tend to promote one supplier over another, or could be perceived as favoritism for a supplier by staff. Purchasing Staff will be sensitive to the appearance of numerous promotional items when meeting with representatives of other suppliers.

Specifications and Standards

Purchasing staff must ensure that specifications and standards are objectively written in a manner that encourages competition when appropriate, excludes unnecessary restrictive requirements, and appropriately defines quality.

4. CONFIDENTIAL AND PROPRIETARY INFORMATION

Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations. Companies must appropriately mark as confidential only that information meeting the criteria.

Proprietary and confidential information requires protection to the extent permitted by the state’s Public Records Act. Such information may or may not be upheld by patent, copyright, or non-disclosure agreement. Proprietary and confidential information should be released to other staff only as necessary in the performance of their duties. It is the responsibility of the individual sharing confidential or proprietary information to ensure that the recipient understands his or her obligation to protect such information.

Examples of information which may be considered confidential or proprietary include:

bb)•Pricing
cc)•Bid or quotation information
dd)•Cost sheets

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ff)• Design information
gg)•Organizational plans, goals, and strategies
hh)•Profit information
ii)• Asset information
jj)• Wage and salary scales
kk)•Personal information about employees, officers, and directors ll)• Supply sources or supplier information
mm)•Computer software programs

Requests for confidential information will be referred to the City Clerk as a Public Records request. Such requests for confidential information will normally be reviewed by the City Attorney.

5. SUPPLIER RELATIONSHIPS

Fairness and impartiality should be extended to all legitimate business concerns. While it may be desirable to build long-term relationships with selected suppliers, such relationships should not eliminate opportunities for new suppliers or deter the potential of establishing similar working relationships with other suppliers.

6. RECIPROCITY
Avoid improper reciprocal agreements.

If Purchasing staff influences a supplier to be a customer, the professional or the organization is engaging in a practice known as reciprocity. These purchasing actions are illegal if they tend to restrict competition or trade or if they are coerced, since such acts may be construed as "restraint of trade" in violation of Sections 1 and 2 of the Sherman Act.

Purchasing staff must be able to recognize reciprocity and its ethical and legal implications.

Reciprocity is both a legal and an ethical issue that may result in legal sanctions against the City, its management, and/or its procurement staff.

The following are recommended guidelines in dealing with reciprocity:

nn)•Procurement strategy must include a positive effort to oppose any corporate or organizational commitment to, or pursuit of, any form of improper reciprocity. oo)•Purchasing staff should become sufficiently knowledgeable of the provisions in antitrust laws to recognize a potential legal problem and to know when to seek legal counsel.
pp)•If a supply management professional believes the potential for improper reciprocity exists, or is being encouraged by marketing or management to engage in reciprocity, legal counsel should be sought.

INFRACTIONS

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APPENDIX B

SUMMARY OF RESOLUTIONS AFFECTING PROCUREMENT

I. Council RESOLUTION 93-09, RECYCLED PRODUCT PROCUREMENT

A. BACKGROUND

As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. Appendix C further clarifies some of the terms used below.

B. PROCEDURES

1. Comply with City Council Resolution 93-09.

2. Recycled products are purchased in preference, highest percentage of post-consumer recovered material followed by highest percentage of pre-consumer recovered material.

3. A 10% price preference may be given to recycled, reusable or products designated to be recycled when offered as alternatives to non- recyclable products. The preference shall be based on the lowest bid or price quoted by the supplier offering recycled products.

4. Equipment acquired by the City shall, whenever practical, be compatible with the use of recycled content products.

5. Product specifications and performance standards shall not require virgin material nor exclude recycled-content products indiscriminately.

6. To the extent possible, City staff shall identify to Purchasing, on the purchase requisition, products available with recycled content and vendors from whom such products are available.

7. The Purchasing Agent may specify a minimum "recycled-content" standard in bid solicitations.

8. City purchased and printed paper shall be labeled with "Printed on recycled paper."

9. City requested documents, produced by contractors and grantees shall be printed on post-consumer recycled paper.

II. Council RESOLUTION 91-91, PROTECTION OF TROPICAL TIMBER

A. BACKGROUND

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The importation and use of tropical timber promotes the loss of tropical rain forests. This loss has been shown to not only destroy species and cultures indigenous to the rain forest, but to also hasten the deterioration of the global environment. As a responsible member of the global community, the City is fundamentally opposed to actions harmful to tropical rain forests. To set the community standard, the City has prohibited the purchase of any item or product which has originated in part or in whole from any tropical hardwood.

See Appendix D for additional information.

B. PROCEDURES

1. Comply with City Council Resolution 91-91.

2. Require wood vendors to note on each invoice for wood products the identity of the manufacturer of the products, and that the material supplied is not tropical wood.

3. Public Projects contractors shall certify that no tropical hardwoods are being used by prime or subcontractors in the awarded project.

III. Council RESOLUTION 89-95, STATE OF CALIFORNIA CO-OPERATIVE

PURCHASING

A. BACKGROUND

Frequently, during the course of business, the City requires material in small quantities. Purchases of many items in small quantities forgoes the discounts vendors offer for large volume purchases. To assist local communities who might normally be unable to take advantage of cost savings through volume purchases the State of California has made many of its material contracts available for local governments to place orders against. This provides the local government the opportunity to take advantage of volume discounts, where appropriate, without the administrative or financial investment of large purchases.

B. PROCEDURES

All use of State of California co-operative purchasing contracts will be coordinated through the Finance Division following the procedures outlined in the State of California Co-operative Purchasing Catalog.

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OPERATIVE AGREEMENTS

A. BACKGROUND

In an effort to make government purchasing more efficient and economical, new trends in purchasing are being adopted. Co-operative purchasing agreements allow multiple organizations to combine their requirements into a single purchase agreement. This action reduces the administrative workload by reducing the number of purchase actions and generally results in lower costs through volume buying. Some purchase contracts are written to permit “piggybacking”. This is a situation where a third party, not a part of the original contract, is permitted to place orders against a purchase agreement.

Piggybacking frequently results in savings similar to co-operative purchasing.

B. PROCEDURES

The use of co-operative and piggybacking opportunities are authorized when determined to be in the best interests of the City.

V. Ordinance 04-12 and 09-6; SUPPORT OF SANTA CLARITA BUSINESSES

A. BACKGROUND

General Fund revenues make up a large portion of the City’s operating funds and sales tax revenue makes up a large part of the General Fund. Over the last two years, the City has embarked on a number of studies and projects intended to capture as much of the tax revenue as possible.

The latest effort in this process is the “Shop Santa Clarita” campaign.

As part of this campaign, the City Council adopted an ordinance in support of Santa Clarita businesses. The change to the purchasing process requires local businesses be given a second chance to receive bid or quote awards if they meet certain criteria.

Ordinance 09-6 revised the percentage to 10%.

B. PROCEDURES

This program requires quotes and bids for other than public projects be awarded in accordance with this program, unless otherwise directed by the City Manager, or if the award will be based on multiple criteria. Should businesses located within the city limits of Santa Clarita submit bids within 10% of the lowest bid, they must be given the opportunity to match the lowest bid. This process begins with the lowest bid from a Santa Clarita business and proceeds until there are no more local bidders within the 10%, or a local business agrees to match the low bid, whichever occurs first. The Code also requires staff to include the award requirement in the solicitation.

VI. Council RESOLUTION 05-103, ENVIRONMENTALLY PREFERABLE

PURCHASING (EPP) PROGRAM

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A. BACKGROUND

As businesses and communities grow, the ability of landfills to absorb the refuse is diminished and the hazard to the environment increases. The use of recycled items removes material from the refuse chain, extending the life of landfills. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. Appendix H further clarifies some of the terms used below.

B. PROCEDURES

1. Comply with City Council Resolution 05-103.

2. Recycled products are purchased in preference, highest percentage of post-consumer recovered material followed by highest percentage of pre-consumer recovered material.

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Purchasing Policy January 2020 Change 10 Appendix C Page 1

APPENDIX C

RECYCLED PRODUCT

PROCUREMENT RESOLUTION

Purpose of Resolution

The enactment of a procurement resolution is intended to broaden the use of recycled content products currently purchased on behalf of the City.

This resolution will have the effect of underscoring the importance of such efforts on all City departments which submit purchase requisitions.

It will promote "buying recycled" goals to the public at large and to private business associated with the City.

It will put the City "on record" in support of progressive procurement and market development goals.

It will increase the recycled content of products purchased and used by the City of Santa Clarita, its contractors and grantees.

It will formalize any current practices by authorizing the Purchasing Agent to specify a minimum level of recycled content in a given bid solicitation.

It will provide guidance and leadership by the City to government staff in evaluating the purchase of products for City use.

Background

A successful City-wide recycling program relies on the establishment of stable and sustaining markets for recyclables. Currently, the nation is experiencing unstable markets and declining commodity prices for various recyclables. In order to ensure available materials, it is necessary to buy products made from recycled materials thereby creating a demand for these materials, which we are attempting to keep out of our landfills. The City of Santa Clarita can facilitate demand for recycled products by purchasing products made from recycled materials. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses, and the general public.

The Local Government Commission completed a report in June 1990 specifying the growing number of cities across the country that have implemented, or are currently implementing similar recycled procurement guidelines. Procurement policies enacted statewide include price preferences for recycled post-consumer materials; revisions of bid specifications which previously required only virgin materials; modification of purchase requisitions requiring the consideration of recycled content products, the compliance of all contractors and grantees working on behalf of the City to implement these City enacted procurement policies, promotion programs, procedures for obtaining and verifying estimates and certifications of content of recovered materials, and annual review and monitoring.

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Purchasing Policy January 2020 Change 10 Appendix C Page 2 Additionally, the California Integrated Waste Management Act of 1989 mandates that State agencies purchase products manufactured from recycled materials. The State is also asking for cities to join in this statewide effort. It is not enough to merely establish or participate in recycling program development; it has become necessary to commit to the purchase of recycled materials as well. If the end products of the collected and recycled materials are not purchased, then recycling and waste reduction efforts cease to be effective in the long term.

The recommended procurement resolution concerns itself with the source of materials used to manufacture products that the City purchases and uses. The object is to ensure that no product manufactured with recycled content of "secondary" material is discriminated against or excluded for reasons other than function. Furthermore, it is important to mandate that such products made from "recycled-content" and "secondary content" materials have a preferential purchasing status over those goods that are strictly made from virgin (raw) materials. This is especially relevant when "recycled-content" products can satisfactorily meet the necessary standards of performance.

The Local Government Council in Sacramento has asked that every city establish a government procurement policy to purchase recycled and reusable products. According to the Local Government Commission, 1989 government purchases amounted to $916 billion, or about 20 percent of the gross national product. It is estimated that about 13 percent of that figure represents purchase made by State and local governments. This is a clear indicator that local government procurement resolutions for recycled products can make a significant impact on market development goals.

The Federal government and the State of California both have laws favoring the use of recycled products. The Environmental Protection Agency is implementing Section 5002 of the Resource Conservation and Recovery Act, which requires agencies using Federal funds to favor recycled products. The National Recycling Coalition also urges public and private agencies to establish programs favoring purchasing of recycled products.

The Local Government Commission is also recommending that governments develop practical new procurement specifications and through their use, demonstrate that recycled products are of high quality. When a city uses recycled paper, for example, the phrase "printed on recycled paper" should appear on all products, i.e.: all stationery, business cards, etc. This leads to good public relations and establishes the City of Santa Clarita as a leader in the arena of market development. In doing so, the City also sets an excellent example for the private sector to follow.

In order to accomplish these goals, it is recommended that the City provide specific guidance to City staff, contractors and grantees regarding the importance of "buying recycled." It should be articulated that this is a necessary adjunct to all recycling programs and will close the recycling "loop" and stimulate market economies, thereby reducing the costs of "recycled-content" materials.

The U.S. Environmental Protection Agency's (EPA) recycled product procurement guidelines issued pursuant to the Resource Conservation and Recovery Act do not specifically apply to the City (the City does not fall under the EPA's definition of a "procuring agency"), except in instances where materials are purchased by the City with earmarked federal funds. Although not mandatory, following the guidelines will reduce waste in the manufacture and use of

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Purchasing Policy January 2020 Change 10 Appendix C Page 3 products and packaging purchased by the City. The EPA’s procurement guidelines provide useful guidance and leadership to the City's staff in evaluating the purchase of products for City use.

The procurement recommendation and particularly the provisions for affirmative "recycled- content" product identification, procurement, certification, promotion and annual monitoring (a report will be sent to Council) do conform with EPA guidelines.

Please note that the policy endorses the State of California's definition of recycled paper products, rather than the Environmental Protection Agency's. The State definition is stricter than the EPA's when it comes to permitting miscellaneous material to count as "recycled" content, and also requires post-consumer content for different grades of paper for which the EPA does not require any post-consumer content for a paper to qualify as "recycled."

This policy will also further contribute to the City's compliance with a State requirement (AB939) that cities undertake and report market development activities. Additionally, AB4, also enacted in 1989, contains four basic requirements:

1. The City must require bidders to specify both the total recovered and post-consumer content of paper products (even if zero).

2. Specifications should not discriminate against recycled content.

3. City printing contracts must meet the recycled content provisions of AB939.

4. The City must "buy recycled" if a paper product costs no more than comparable non- recycled paper product.

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Purchasing Policy January 2020 Change 10 Appendix C Page 4 RESOLUTION NO. 93-9

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA CLARITA, CALIFORNIA,

FOR THE ADOPTION OF A POLICY REGARDING

THE PROCUREMENT OF RECYCLED PRODUCTS

WHEREAS, it is the policy of the City of Santa Clarita to conserve and protect natural resources for current and future citizens; and

WHEREAS, the City's participation in and promotion of recycling programs can significantly reduce the volume of material entering the waste stream thereby conserving natural resources and extending landfill life expectancy; and

WHEREAS, in order for recycling programs to be effective, markets for recycled post-consumer materials must be developed; and

WHEREAS, the implementation of a procurement policy for the City of Santa Clarita would contribute to the conservation and protection of natural resources and support city-wide recycling programs; and

WHEREAS, the City's commitment to the purchase of recycled materials will help expand the markets for recycled products and serve as a model for private industry and local businesses; and

WHEREAS, State and Federal agencies have implemented procurement guidelines requiring government agencies to buy products made with recycled materials.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Clarita, California, as follows:

SECTION 1. The City Council hereby adopts the following policy:

RECYCLED PRODUCTS PROCUREMENT RESOLUTION

I. Definitions of Recycled Content

A. Post-consumer recovered materials. A finished material which would normally be disposed of as a solid waste, having completed its life cycle as a consumer item. Examples of post-consumer recovered materials include, but are not limited to; used newspaper, office paper, yard waste, plastic bottles, oil, asphalt, concrete and tires.

B. Pre-consumer recovered material. Material or by-products generated after manufacturing of a product is completed, but before the product reaches the end-use consumer. Examples of pre-consumer recovered materials include, but are not limited to; obsolete inventories of finished goods, rejected unused stock and paper wastes generated during printing, cutting and other converting operations.

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Purchasing Policy January 2020 Change 10 Appendix C Page 5 This category does not include mill or manufacturing trim, scrap or "broke," which is material generated at a manufacturing site and commonly reused within the manufacturing process. For example, pre-consumer paper waste sources are not considered "recycled." Components of a paper product include, but are not limited to; fibers recovered from waste water, trimmings of a paper machine rolls, sawdust, chips, wood slabs, other wood residue from a manufacturing process, and such materials sold between mills.

C. Total recovered material. The total pre- and post-consumer recovered material contained in a product.

II. Recycled Content Preference

It is recommended that the City of Santa Clarita establish a policy, whenever practical, to purchase products which contain, in order of preference, the following:

1. The highest percentage of recycled content of "post-consumer recovered materials," available in the marketplace; and

2. The highest percentage of "pre-consumer recovered materials," available in the marketplace.

In those instances where it is deemed impractical to procure a recycled-content item, a specific explanation for the finding must be included in the purchasing record (see "Monitoring and Annual Report" section).

III. Price Preference

A 10% price preference may be given to recycled products, reusable products offered as alternatives to disposable products, and products designated to be recycled where they are offered as alternatives to non-recyclable products. The preference percentage shall be based on the lowest bid or price quoted by the supplier offering recycled products.

IV. Recyclability and Waste Reduction

In addition to the recovered material content of a product, important criteria in selecting products shall also be:

1. The ability of a product and its packaging to be reused, reconditioned for use, or recycled through existing recycling collection programs; and

2. The volume and toxicity of waste and by-products of a given product and its packaging generate in their manufacture, use, recycling and disposal. Products and packaging designed to minimize waste and toxic by-products in their manufacture, use, recycling and disposal shall be preferred.

V. Equipment Compatibility

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Purchasing Policy January 2020 Change 10 Appendix C Page 6 Equipment purchased or rented by the City shall be compatible, whenever practical, with the use of recycled content products. If deemed impractical, a specific reason for such a finding must be included in the purchasing record.

VI. Purchase Requisition, Specification and Bid Solicitation

Product specification and requisitions for products shall conform to the following guidelines:

1. Product specifications and requisitions shall not indiscriminately require the use of products made from virgin materials, nor specifically exclude the use of recycled- content products;

2. Performance standards must be reasonable and related to function, and shall not be designed to exclude the purchase of recycled-content products;

3. To the extent such information is known, City staff shall identify to the Purchasing Division (in the Purchase Requisition) products available with recycled content and vendors from who such products are available.

4. Purchasing agents have the authority to specify a minimum "recycled-content" standard in bid solicitations to accomplish the purposes of this policy.

VII. Contractors and Grantees

All City contractors and grantees shall be required to conform to the minimum recycled- content procurement standards set forth by the Finance Department. This requirement shall be applied to contractors and grantees in procuring materials or products to perform contractual services for the City, to produce or provide a work product to the City or on the City's behalf, or to conduct work funded by a grant from the City. The list shall be reviewed as needed, but no less than annually, by the City Council (see "Monitoring and Annual Report" section).

Contractors and grantees shall be further required to report to the City the types, quantities and total dollar amounts of recycled products which are purchased by the contractor or grantee in connection with City-funded work. The percentage of post-consumer and total recovered material content of such purchased products shall also be required to be included in the report.

VIII. Promotion

All City purchased and printed recycled paper products shall be labeled with the standard phrase: "Printed on Recycled Paper." All City departments or agencies shall be required to use recycled products for their business cards, letterhead stationery, envelopes, business forms and pertinent documents. All said documents shall be printed, with the standard phrase: "Printed on Recycled Paper" thereby promoting the use of post-consumer content. If sufficient documentation and certification is available, reasonable efforts shall be undertaken to specifically indicate the percentage of recycled post-consumer content. In this case, the

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Purchasing Policy January 2020 Change 10 Appendix C Page 7 phrase "Printed on 40% Post-Consumer Recycled Paper" shall appear on all products produced by and for the City.

All City requested documents, produced by grantees and contractors shall be produced on post-consumer recycled paper. All contractors and grantees will submit all requested documents to the City on recycled paper. This shall include, but not be limited to drafts, reports, training manuals, bids, responses to inquiries and permit applications.

IX. Certification

All product providers shall be required to maintain appropriate documentation verifying either the minimum or the exact percentage of post-consumer recovered material and total recovered material contained in products purchased by the City. If no recovered material has been used, then a product provider would certify zero recycled content.

Any claims of waste minimization in the manufacture or use of any product shall also be certified.

X. Implementation

It is recommended that the City Manager develop administrative procedures to achieve the purposes of this resolution and implement the provisions of this policy, including procedures for waiving a requirement of this policy in any necessary circumstance.

XI. Monitoring
The Finance division shall prepare and deliver to the City Council an annual status report on implementation of this policy and formalize a recycled products list to aid in purchasing and monitoring goals. The report shall include documentation of the types, quantities, and dollar amounts of recycled products purchased in the previous year by the City, its contractors and its grantees. The report shall also identify and discuss the following:

1. Instances where this policy is waived or its requirements found impracticable; and

2. Barriers to the procurement of recycled-content products.

In addition to monitoring and evaluating this procurement policy, the effect of evaluating products for their recycled content, ensuring specifications are non-discriminatory, including the Council's policy in bid solicitations and contracts, and other additional requirements of the policy will affect the Purchasing Division's workload. This will be evaluated as the policy is implemented and recommendations as needed will be brought forward to the Council, to augment staff, if necessary and appropriate.

Fiscal Impact

The adoption and implementation of this procurement ordinance may impact current budgets.

Given the requirements of AB939 and the concern over additional landfill development, and rising disposal costs, these anticipated costs are necessary to conserve and protect natural resources and support the City of Santa Clarita's recycling and market development goals.

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The future of recycling depends upon the creation of stable and sustaining markets for recycled secondary products. It is recommended, therefore, that the City of Santa Clarita enact a procurement policy which supports the development of stable markets for recyclables and supports the City's ongoing recycling ethic and commitment to progressive integrated waste management solutions.

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APPENDIX D
RESOLUTION NO. 91-91
A RESOLUTION OF THE CITY Council OF THE

CITY OF SANTA CLARITA, CALIFORNIA,

FOR THE ADOPTION OF A POLICY REGARDING

PROTECTION OF TROPICAL TIMBER

WHEREAS, tropical rainforests are being destroyed at a rate of 50,000 acres per day and rainforests larger than the State of California are disappearing from the earth yearly; and

WHEREAS, the use of imported tropical timber by the United States represents a substantial loss of tropical rainforests, and scientific evidence has shown that the destruction of tropical rainforests is partially responsible for the Greenhouse Effect, as well as contributing to the death of indigenous rainforest peoples and the destruction of their culture; and

WHEREAS, the tropical rainforests are home to half of the world’s species, and the loss of these forests results in the extinction of tens of millions of species; and

WHEREAS, it is in the interest of those who live, work, and do business in the City that measures be taken to reduce or stop the destruction of tropical rainforests worldwide; and

WHEREAS, a ban on the use of tropical timber by the City would reduce demand for tropical timber, thus lessening the need to cut more tropical rainforest; and

WHEREAS, such a ban would not create shortages of building supplies, as alternative wood products are grown in a substantial fashion in temperate forests; and

WHEREAS, the ban would stimulate business and provide jobs in the United States, as many alternatives to tropical hardwoods are grown domestically.

NOW, THEREFORE. BE IT RESOLVED by the City Council of the City of Santa Clarita, California, as follows:

SECTION 1. The City Council hereby adopts the following policy:

A. The City of Santa Clarita shall not purchase any item or product which has originated in part or in whole from any tropical hardwood species listed in this section, nor shall any City sponsored event utilize such products, nor shall City Public Works contractors utilize such products.

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D.C. Tropical hardwood species include, but are not limited to the following:

Scientific Name Common Name

Vouacapoua Americana Acapu
Pericopsis Elata Afrormosia
Shores Almon Almon
Peltogyne Spp. Amaranth
Guibourtia Ehie Amazaque
Aningeria Spp. Aningeria
Dipterocarpus Grandiflorus Apitong
Ochrama Lagopus Balsa
Virola Spp. Banak
Anisoptera Thurifera Bella Rosa
Guibourtia Arnoldiana Benge
Detarium Senegalese Boire
Guibourtia Demeusil Bubinga
Prioria Copaifera Cativo
Antiaris Africana Cancan
Dalbergia Retusa Concobolo
Cordia Spp. Cordia
Diospyros Spp. Ebony
Aucoumea Klaineanal Gaboon
Chlorophora Excelsa Iroko
Acacia Koa Koa
Pterygota Macrocarda Koto
Shorea Negrosensis Red Luan
Pentacme Controta White Luan
Shorea Polysperma Tanguile
Terminalia Superba Limba
Aniba Duckei Louro
Khaya Ivorensis African Mahogany
Swietenia Macrophylla American Mahogany
Tieghemella Heckelii Makore
Distemonanthus Benthamianus Movingui
Pterocarpus Soyauxii African Paduak
Pterocarpus Angolensis Angola Paduak
Aspidosperma Spp. Peroba
Peltogyne Spp. Purpleheart
Gonystylus Spp. Rasmin
Dalbergia Spp. Rosewood
Entandrophragma Cylindricum Sapele
Shorea Philippinensis Sonora
Tectona Grandis Teak
Lovoa Trichiliodes Tigerwood
Milletia Laurentii Wenge
Microberlinia Brazzavillensis Zebrawood

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C. Exemptions: The City Council may exempt an item or product from the requirements of this section upon evidence that such item or product has no acceptable non-tropical wood equivalent, or is required in a designated historical building; and

D. Directing City staff to modify its procedures regarding purchasing by requiring each wood vendor to note on each invoice for wood products supplied to the City of Santa Clarita the identity of the manufacturer of

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APPENDIX E

STATE OF CALIFORNIA CO-OPERATIVE
PURCHASING RESOLUTION 89-85

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APPENDIX F

CITY COUNCIL AGENDA ACTION AUTHORIZING CO-
OPERATIVE AND “PIGGY BACK” PURCHASING JULY
11, 1995

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APPENDIX G
ORDINANCE NO. 04-12

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
CLARITA AMENDING CHAPTER 12 OF TITLE 3 OF THE

MUNICIPAL CODE RELATING TO PURCHASING CODES

Whereas, the City of Santa Clarita endeavors to purchase the highest quality supplies and goods, at the most reasonable and economical cost; and,

Whereas, the City of Santa Clarita desires to promote business within the City and to encourage businesses to locate and remain within the City; and,

Whereas, the City Council of the City of Santa Clarita, after review and upon study and recommendation of staff, finds and determines that modifications are necessary in the purchasing system to be reflected in an amended Chapter 3.12 of the Santa Clarita Municipal Code to provide the City of Santa Clarita with a method of purchasing the highest quality supplies and goods, at the most reasonable and economical cost, while simultaneously promoting business within the City and encouraging businesses to locate and remain within the City.

NOW, THEREFORE, the City Council of the City of Santa Clarita, California does hereby ordain as follows;

Section 1. That the Municipal Code is hereby amended at Section 3.12.120, relating to formal bid procedures, to read as follows:

3.12.120 Formal (sealed) Bid Procedures. Except as otherwise provided herein, purchases of supplies, equipment and services (other than professional) of an estimated value greater than twenty thousand dollars ($20,000) shall be awarded to the lowest responsible bidder, or the highest scoring bidder of the multiple criteria award process, pursuant to the formal bid procedures described in Sections 3.12.200 and 3.12.205 hereinafter prescribed.

Formal bids as used in this context includes any solicitation following the procedures prescribed below including, but not limited to, invitations to bid and requests for proposal.

Section 2. That the Municipal Code is hereby amended at Section 3.12.200, relating to award of formal bids, to read as follows:

3.12.200 Award of Formal Bid Contracts. Except as otherwise provided herein, formal bid contracts exceeding fifty thousand dollars ($50,000) shall be awarded by the City Council to the lowest responsible bidder or the highest scoring bidder of the multiple criteria award process subject to the application of Section 3.12.205. Formal bid contracts of fifty thousand ($50,000) or less may be awarded by the Purchasing Officer (or designee) subject to the application of Section 3.12.205. The determination of "lowest responsible bidder" shall be at the discretion of the City Council pursuant to findings and recommendations presented by the Purchasing Officer (or designee) at the time of award of contracts over fifty thousand dollars ($50,000.00).

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Section 3. That the Municipal Code is hereby amended to introduce Section 3.12.205, relating to support of local businesses, to read as follows:

3.12.205 Support of Santa Clarita Businesses.

A. Should the bidder that submits the lowest responsive bid or quote and would otherwise normally qualify to receive the bid pursuant to Sections 3.12.120, 3.12.200 and 3.12.230 of the City of Santa Clarita Municipal Code not be a Santa Clarita business as defined herein, the lowest bid oruote submitted by a Santa Clarita business that is within five percent (5%) of the lowest bid or quote, whether or not that bidder is the second lowest bidder, may be deemed to be the lowest bidder if the bidder agree to reduce its bid to match the bid or quote of the lowest bidder in writing within one business day, and providing that the Purchasing Officer, or designee, determines that said Santa Clarita bidder is a responsible bidder submitting a bid or quote that is responsive to the City’s specifications, terms and conditions and the application of this Section is appropriate.

B. If the lowest Santa Clarita bidder within five percent (5%) of the lowest bid or quote does not elect to reduce its bid or quote to match the bid or quote of the lowest bidder, then the next lowest Santa Clarita bidder shall be given the opportunity to match the bid or quote of the lowest bidder as set forth above, providing that this bidder is also within 5% of the lowest bid or quote that has been deemed responsive.

C. To qualify as a Santa Clarita bidder, the bidder must have a physical presence within the Santa Clarita city limits by maintaining a permanent office, factory or other facility carried on the business’ records with at least one employee of the company operating out of said facility. The Purchasing Officer, or designee, is hereby granted the authority to finally determine if the bidder qualifies as a Santa Clarita bidder as set forth herein. The Purchasing Officer, or designee, may take into account the permanency of the business in Santa Clarita, and whether the business appears to be claiming to be a Santa Clarita business solely or primarily to qualify for the contract award, and any other material factors.

D. This support of local business policy shall only apply to supplies, material and equipment required for the conduct of City business, except where prohibited by State or Federal law, and it shall only apply to purchases and contracts greater than two thousand dollars ($2,000).

E. No contract awarded to a Santa Clarita business under this Section shall be assigned or subcontracted in any manner that permits more than fifty percent (50%) or more of the dollar value of the contract to be performed by an entity that is not a Santa Clarita business as defined herein.

F. Solicitations for bids or quotes must include notice of this Section.

Section 4. That the Municipal Code is hereby amended at Section 3.12.210, relating to tie formal bids, to read as follows:

3.12.210 Tie Formal Bids. If two (2) or more formal bids received are for the sa me total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising for bids, the City Council, or Purchasing Officer (or designee) for bids of $50,000 or less, may in its discretion accept the one it chooses or accept the lowest bid made by and after negotiation with the tie bidders at the time of the bid opening or award of contract.

Section 5. That the Municipal Code is hereby amended at Section 3.12.230, relating to the open

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market or informal bid procedure, to read as follows:

3.12.230 Open Market or Informal Bid Procedure. Purchases of supplies, equipment and services (other than professional) of an estimated value in the amount of twenty thousand dollars ($20,000) or less may be made by the Purchasing Agent in the open market pursuant to the procedure prescribed in Sections 3.12.240 through 3.12.260 and without observing the procedure prescribed in Sections 3.12.120 through 3.12.215; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than two thousand dollars ($2,000). Quotes as used in this context include any solicitation following the procedures described below including, but not limited to, requests for quote to bid and requests for proposal (of twenty thousand dollars ($20,000) or less).

Section 6. That the Municipal Code is hereby amended at Section 3.12.240, relating to the minimum number of quotes, to read as follows:

3.12.240 Minimum Number of Quotes. Open market purchases shall, wherever possible, be based on at least three (3) quotes, and shall be awarded to the quoter offering the most advantageous quote to the City after consideration of price, quality, durability, servicing, delivery time, standardization, and other factors subject to the application of Section

3.12.205.

Section 7. That the Municipal Code is hereby amended at Section 3.12.260, relating to record of quotes, to read as follows:

3.12.260 Record of Quotes. The Purchasing Agent shall keep a written record of all purchases of two thousand dollars ($2,000) or more, whether accomplished by formal bid (Sections

3.12.120 through 3.12.215), quote (Sections 3.12.230 and 3.12.270), or through no bid at all (Sections 3.12.230 and 3.12.270). All records so kept shall be available for public inspection and shall be subject to destruction in accordance with the City's retention schedule.

Section 8. That the Municipal Code is hereby amended at Section 3.12.270, relating to exceptions to competitive bidding requirement, to read as follows:

3.12.270 Exceptions to Competitive Bidding Requirement . T Notwithstanding any provision of this chapter to the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following instances:

A. When the estimated amount involved is less than two thousand dollars ($2,000); B. When the commodity can be obtained from only one vendor; C. The City Manager and/or his/her designee may authorize the purchase of materials, supplies, equipment and services where an emergency is deemed to exist and it is determined that service involving the public health, safety or welfare would be interrupted if the normal procedure were followed. All emergency purchases, which would otherwise require formal bidding procedures, made pursuant to this Section shall be submitted to the City Council for ratification at the next regular Council meeting after the purchase is authorized; D. Any request to waive competition for a procurement not covered by the exceptions herein must be approved by the City Council;

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E. Any agreement involving acquisition of supplies, equipment or service entered into with another governmental entity;
F. In the event the City Council finds that it is in the public interest and necessity to purchase supplies, equipment or services without compliance with the formal contract procedures set forth in this section, the City Council may waive such procedures by declaring so in a motion or resolution.

Section 9. This ordinance shall be in full force and effect thirty (30) days from its passage and adoption.

Section 10. That the City Clerk shall certify to the passage of this Ordinance and shall cause it to be published as required by law.

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ORDINANCE NO. 09-6

AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA AMENDING CHAPTERS 12
AND 14 OF TITLE 3 OF THE MUNICIPAL CODE

RELATING TO PURCHASING CODES

This Ordinance is not reproduced here because of its length and the fact the pertinent change consisted solely of increasing the Shop Santa Clarita percentage from 5 to 10%.

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APPENDIX H

ENVIRONMENTALLY PREFERABLE PURCHASING (EPP) PROGRAM
RESOLUTION 05-103

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APPENDIX GI

UNAUTHORIZED PROCUREMENT FORM

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