Agenda — Santa Maria City Council, June 17, 2025 (part 1 of 4)

Mayor Alice Patino
Mayor Pro-Tem Carlos Escobedo
Councilmember Gloria Soto
Councilmember Maribel Aguilera-Hernandez
Councilmember Gloria Flores

CITY COUNCIL AGENDA

CITY OF SANTA MARIA, CALIFORNIA

Tuesday, June 17, 2025
CLOSED SESSION - 4:30 P.M.

REGULAR SESSION - 5:30 P.M.

HOW TO ACCESS MEETINGS

1. Meetings can be viewed in video format alongside the on-line interactive agenda at https://www.cityofsantamaria.org/services/departments/city-clerk-records/agendas-reports-meeting- videos.

2. The City of Santa Maria Broadcasts City Council Meetings Live on local Comcast Cable Channel 23, at cityofsantamaria.org/tv and on YouTube.com/@CityofSantaMariaCalifornia.

3. Closed Captioning is available in English and Spanish during City Council meetings on Comcast Cable Channel 23 and at cityofsantamaria.org/tv.

4. Meetings are replayed on local Comcast Cable Channel 23 and cityofsantamaria.org/tv on Thursdays at 9:00 a.m. and Tuesdays at 5:30 p.m. Meetings are available on demand at YouTube.com/@CityofSantaMariaCalifornia.

Attendance at public meetings may result in the streaming and recording of your image and/or voice.

AMERICANS WITH DISABILITIES ACT
In accordance with the Americans with Disabilities Act of 1990, if you require a disability-related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk’s Office at (805) 925-0951 extension 2306, or by email at [email protected] at least 48 hours before the meeting. Assisted Listening devices are available for those who attend in Council Chambers. Closed Captioning is available during meetings in English and Spanish on Comcast Channel 23 and at CityofSantaMaria.org/tv.

PUBLIC COMMENT (letters/emails)
(Must be received by 2:00 p.m. in advance of the meeting) Members of the public wishing to submit a public comment or a comment on an agenda item, can email [email protected] or mail to the City Council, Attn.: City Clerk's Office, 110 East Cook Street, Santa Maria, CA 93454. Letters/emails will not be read aloud during the meeting. All correspondence will be distributed to Councilmembers, submissions received after the deadline will not be processed until the following day but will become a part of the official record.

MEETINGS
The City Council holds regular meetings on the first and third Tuesday of every month. Regular meetings start at 5:30 p.m. in the Council Chambers at City Hall, 110 East Cook Street, Santa Maria, California. Special and Adjourned Regular meetings start time are to be determined.

POSTING LOCATIONS OF AGENDA AND/OR CANCELLATION NOTICES Regular meeting agendas will be posted at least 72 hours before the meeting (GC§ 54954(a)(1)).

Agenda and Cancellation Notices can be viewed online and are also posted at the following two locations: Santa Maria City Hall located at 110 East Cook Street, Santa Maria, California, and Santa Maria Public Library located at 421 South McClelland Street, Santa Maria, California.

Page 2 of 624 ends

CLOSED SESSION

1. CALL TO ORDER
ROLL CALL: Councilmember Aguilera-Hernandez, Councilmember Flores, Councilmember Soto, Mayor Pro Tem Escobedo, and Mayor Patino

2. PUBLIC COMMENT PERIOD
Speakers may provide public comments on any matter within the subject matter jurisdiction of the City Council. Each speaker will be limited to 3 minutes, maximum 15 minutes for Public Comment Period. Unless a majority of the Council objects, the Mayor may provide speakers more or less time to speak. All comments or queries shall be addressed to the Council as a body and not to any specific member thereof. Pursuant to Government Code §54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the City Council shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

3. RECESS-CLOSED SESSION
The City Council will immediately recess to a closed session for the following:

3.a Conference with Legal Counsel - Anticipated Litigation, Pursuant to California Government Code §54956.9(b)
Significant exposure to litigation: one potential case.

3.b Conference with Labor Negotiators, Pursuant to California Government Code §54957.6
Agency Representatives: City Manager David W. Rowlands, City Attorney Tom Watson, Chief Human Resources Officer Graciela Reynoso, and Negotiations Team.

Employee Organizations: All bargaining units, unrepresented employees, managers, and executives.

4. RECONVENE TO OPEN SESSION
OPEN SESSION - 5:30 P.M.

5. INVOCATION

6. PLEDGE OF ALLEGIANCE

7. CALL TO ORDER
ROLL CALL: Councilmember Aguilera-Hernandez, Councilmember Flores, Councilmember Soto, Mayor Pro Tem Escobedo, and Mayor Patino

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION

9. PROCLAMATIONS

9.a Proclamation – “AmeriCorps National Service”
The City Council will present a Proclamation in strong support of continued investment in local service initiatives through AmeriCorps National Service.

Page 3 of 624 ends

10. PRESENTATIONS

10.a Presentation – Fireworks Education, Enforcement, and Entertainment The City Council will receive a presentation about this year’s fireworks education campaign and enforcement efforts, and the City’s family friendly Fourth of July event.

11. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Speakers may provide public comments on any matter within the subject matter jurisdiction of the City Council. Each speaker will be limited to 3 minutes, maximum 15 minutes for Public Comment Period. Unless a majority of the Council objects, the Mayor may provide speakers more or less time to speak. All comments or queries shall be addressed to the Council as a body and not to any specific member thereof. Pursuant to Government Code §54954.2(a)(2), the Ralph M. Brown Act, no action or discussion by the City Council shall be undertaken on any item not appearing on the posted agenda, except to briefly provide information, ask for clarification, provide direction to staff, or schedule a matter for a future meeting.

12. CONSENT CALENDAR
Items on the consent calendar are considered to be routine and customary and are enacted by a single motion with the exception of items removed by a member of the City Council for individual consideration, which shall be individually considered immediately after taking action on the Consent Calendar.

RECOMMENDATION:

Adopt the Consent Calendar as submitted.

12.a CITY MANAGER/CITY CLERK DEPARTMENT

12.a.1 Ordinances and Resolutions
RECOMMENDATION:

Waive the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unless City Council indicates otherwise.

12.a.2 Approval of Minutes
RECOMMENDATION:

Approve the Minutes of the regular City Council meeting of June 3, 2025.

12.a.3 Adoption of a Resolution Approving the Fiscal Year 2025-26 Santa Maria Valley Tourism Marketing District Annual Report
The City Council will consider approving the Santa Maria Valley Tourism Marketing District Annual Report which includes a 0.5 percent assessment rate increase.

RECOMMENDATION:

Adopt a Resolution approving the Santa Maria Tourism Marketing District Annual Report which includes a 0.5 percent assessment rate increase.

Page 4 of 624 ends

12.a.4 Adoption of Resolutions Approving New Employment Agreements Between the City of Santa Maria and David W. Rowlands and Between the City of Santa Maria and Thomas T. Watson
The City Council will consider adoption of Resolutions approving new employment agreements with David Wayne Rowlands as City Manager and Thomas Watson as City Attorney.

Environmental Notice: This action is not a project subject to the California Environmental Quality Act (CEQA) because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment (CEQA Guideline Section 15378(b)(5)).

RECOMMENDATION:

Adopt a Resolution approving a new employment agreement with David W. Rowlands for City Manager services; and

1. Adopt a Resolution approving a new employment agreement with Thomas T. Watson for City Attorney services.

2. 12.b FINANCE DEPARTMENT

12.b.1 Payment of Warrants
RECOMMENDATION:

Order ratified subject to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

12.b.2 Payment of Payroll
RECOMMENDATION:

Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance, and having been approved for payment by the Director of Finance.

12.b.3 Adoption of a Resolution Approving Amendments to the Purchasing Guidelines Manual
The City Council will consider adopting a Resolution amending the Purchasing Guidelines Manual effective July 1, 2025.

Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.

RECOMMENDATION:

Adopt a Resolution approving amendments to the City’s Purchasing Guidelines Manual to take effect July 1, 2025.

Page 5 of 624 ends

12.c FIRE DEPARTMENT

12.c.1 Adoption of a Resolution Approving a Genasys EVAC Memorandum of Agreement
The City Council will consider authorizing the City Manager or designee to enter into a Memorandum of Agreement with the Santa Barbara County Office of Emergency Management for use of the Genasys EVAC mapping solution.

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager or designee to enter into a Memorandum of Agreement with Santa Barbara County Office of Emergency Management for use of the Genasys EVAC mapping solution.

12.d PUBLIC WORKS DEPARTMENT

12.d.1 Adoption of a Resolution Establishing a No Stopping Zone on Centerpointe Parkway
The City Council will consider approving the establishment of a No Stopping Zone on Centerpointe Parkway, in front of 2125 Centerpointe Parkway, to improve visibility for vehicles exiting the parking lot.

RECOMMENDATION:

Adopt a Resolution establishing a No Stopping Zone on Centerpointe Parkway.

12.d.2 Adoption of a Resolution Establishing a Multi-Way Stop Control at the Intersection of South Pine Street and West Park Avenue
The City Council will consider approving the establishment of a multi-way stop control at the intersection of South Pine Street and West Park Avenue to improve pedestrian safety.

RECOMMENDATION:

Adopt a Resolution establishing a multi-way stop control at the intersection of South Pine Street and West Park Avenue.

Page 6 of 624 ends

12.d.3 Adoption of Resolutions to Award Seven Professional Services Agreements for On-Call Architecture and Structural Engineering Services The City Council will consider approving the award of Architecture and Structural Engineering Professional Services Agreements to seven consultants: 1) 4Creeks, Inc.; 2) Andrew Goodwin Designs; 3) Hunter Smith & Associates, Inc.; 4) Omni Design, Inc.; 5) Reiss Design Studio, PC; 6) Roesling Nakamura Terada Architects, Inc.; and 7) Studio 2G Architects, LLP.

RECOMMENDATION:

Adopt a Resolution awarding a Professional Services Agreement to 4Creeks, Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

1. Adopt a Resolution awarding a Professional Services Agreement to Andrew Goodwin Designs in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

2. Adopt a Resolution awarding a Professional Services Agreement to Hunter Smith & Associates, Inc. in the amount of $300,000 for On- Call Architecture and Structural Engineering Services; and

3. Adopt a Resolution awarding a Professional Services Agreement to Omni Design, Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

4. Adopt a Resolution awarding a Professional Services Agreement to Reiss Design Studio, PC in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

5. Adopt a Resolution awarding a Professional Services Agreement to Roesling Nakamura Terada Architects, Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

6. Adopt a Resolution awarding a Professional Services Agreement to Studio 2G Architects, LLP. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services.

Page 7 of 624 ends

12.d.4 Adoption of Resolutions to Award Eight Professional Services Agreements for On-Call Civil Engineering and Surveying Services
The City Council will consider approving the award of Architecture and Structural Engineering Services to 5 consultants: 1) Bengal Engineering, Inc.; 2) Bethel Engineering, Inc.; 3) Cannon Corporation; 4) Nichols Consulting Engineers; 5) Omni Design Inc.; 6) Psomas; 7) Wallace Group 8) Water Systems Consulting, Inc.

RECOMMENDATION:

Adopt a Resolution awarding a Professional Services Agreement to Bengal Engineering, Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

1. Adopt a Resolution awarding a Professional Services Agreement to Bethel Engineering in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

2. Adopt a Resolution awarding a Professional Services Agreement to Cannon Corporation in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

3. Adopt a Resolution awarding a Professional Services Agreement to Nichols Consulting Engineers in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

4. Adopt a Resolution awarding a Professional Services Agreement to Omni Design Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

5. Adopt a Resolution awarding a Professional Services Agreement to Psomas in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

6. Adopt a Resolution awarding a Professional Services Agreement to Wallace Group in the amount of $300,000 for On-Call Architecture and Structural Engineering Professional Services; and

7. Adopt a Resolution awarding a Professional Services Agreement to Water Systems Consulting, Inc. in the amount of $300,000 for On-Call Architecture and Structural Engineering Services; and

Page 8 of 624 ends

12.e RECREATION & PARKS DEPARTMENT

12.e.1 Adoption of a Resolution Approving a Professional Services Agreement with J.D. Humann, Inc. for Citywide Landscape Maintenance Services The City Council will consider approving a 36-month Professional Services Agreement to J.D. Humann, Inc. for Citywide landscape maintenance work.

RECOMMENDATION:

Adopt a Resolution approving a Professional Services Agreement with JD Humann, Inc. for Citywide Landscape Maintenance Services in alignment with the City’s Purchasing Guidelines.

12.f UTILITIES DEPARTMENT

12.f.1 Adoption of a Resolution Approving a Professional Services Agreement with Clean Earth Environmental Solutions, Inc. for Household Hazardous Waste Collection Services at the Santa Maria Regional Landfill and Authorizing City Manager to Execute Agreement.

The City Council will consider adopting a Resolution authorizing an agreement with Clean Earth Environmental Solutions, Inc. for household hazardous waste collection and processing services at the Santa Maria Regional Landfill.

RECOMMENDATION:

Adopt a Resolution Approving a Professional Services Agreement with Clean Earth Environmental Solutions, Inc. to Provide Household Hazardous Waste Collection Services at the Santa Maria Regional Landfill and Authorize City Manager or Designee to Execute Agreement.

Page 9 of 624 ends

13. REGULAR BUSINESS
ORDER OF PROCEEDINGS FOR REGULAR BUSINESS ITEMS:

Council Agenda Report to be given.

Questions from the City Council.

Written communications/Public input.

City Council discussion and action.

13.a Approval of an Ordinance Amending the Santa Maria Municipal Code Title 2 “Administration,” Chapter 2-14 “Recreation and Parks Commission,” Section 2-14.06 “Recommendations to Council: Powers Generally” and Title 10 “Recreation and Parks,” Chapter 10-1 “Ad
The City Council will consider approving an Ordinance amending Sections 2-14.06 and Section 10-10-1.02 relating to the Recreation and Parks Commission and authorizing the Commission to approve fees for recreation programs as defined herein.

RECOMMENDATION:

Waive first reading and introduce an Ordinance amending the Santa Maria Municipal Code Title 2 “Administration,” Chapter 2-14 “Recreation and Parks Commission,” Section 2-14.06 “Recommendations to Council:

Powers Generally” and Title 10 “Recreation and Parks,” Chapter 10-1 “Administration,” Section 10-1.02 “Adoption of Regulations”; and

1. Set adoption of said ordinance at the next regular City Council meeting. 2.

13.b Adoption of a Resolution Establishing a City Council Budget Ad Hoc Committee and Appointing two Members of the City Council
The City Council will consider approving a resolution establishing and appointing two members of the City Council to a Budget Ad Hoc Committee.

RECOMMENDATION:

Adopt a Resolution establishing a City Council Budget Ad Hoc Committee and appointing two members of the City Council.

14. REPORT BY CITY MANAGER

15. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234

REPORTS)

Page 10 of 624 ends

16. ADJOURNMENT

If you challenge a determination made on a matter on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described on this agenda, or in written correspondence to the city council at, or prior to, the public hearing.

I, Donna G. Schwartz, hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted not less than 72 hours at the following locations: City of Santa Maria City Hall and Library and made available at https://www.cityofsantamaria.org/services/departments/city-clerk-records/agendas-reports- meeting-videos on this 13th day of June 2025.
/s/ DONNA G. SCHWARTZ
Chief Deputy City Clerk

Page 11 of 624 ends

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Donna G. Schwartz, Chief Deputy City Clerk

DATE: June 17, 2025

SUBJECT: Proclamation – “AmeriCorps National Service”

The City Council will present a Proclamation in strong support of continued investment in local service initiatives through AmeriCorps National Service.

BACKGROUND:

AmeriCorps is a national service program that addresses critical community needs through volunteerism. In Northern Santa Barbara County, AmeriCorps Home for Good members have provided vital support to unhoused individuals, at-risk youth, and veterans.

With federal funding at risk, local leaders support creating a Santa Barbara County Service Corps to continue this essential work.

Proclamation Requested by: Eddie Taylor, CEO Northern Santa Barbara County United Way

Attachment(s): Proclamation

City of Santa Maria
Santa Maria, California
Proclamation

WHEREAS, AmeriCorps has empowered thousands of volunteers across the U.S., including hundreds in Santa Barbara County, to address critical community needs in education, homelessness, disaster response, and public health; and

WHEREAS, AmeriCorps Home for Good members have provided vital services in Northern Santa Barbara County supporting unhoused individuals, at -risk youth, and veterans through housing assistance and stability programs; and

WHEREAS, from September 2024 to April 2025, members delivered over 4,000 essential services in the county, housing 80 people and assisting 300 others in finding permanent housing; and

WHEREAS, the potential loss of AmeriCorps due to federal defunding poses a serious threat to local service efforts and community progress; and

WHEREAS, the City of Santa Maria affirms its commitment to service and supports the creation of a Santa Barbara County Service Corps led by Northern Santa Barbara County United W ay to continue vital programs if federal funding is lost; and

WHEREAS, in the absence of federal support, the City supports the creation of a Santa Barbara County Service Corps led by Northern Santa Barbara County United Way to continue vital work in housing, education, disaster response, and health; provide service opportunities for youth, veterans, and those with lived experience; offer education awards of up to $5,000 annually ; and build the program through local partnerships.

NOW, THEREFORE, I, ALICE M. PATINO, Mayor of the City of Santa Maria, hereby recognize:

“AmeriCorps National Service”

in the City of Santa Maria and express full support for continued investment in local service initiatives.

IN WITNESS WHEREOF, I have hereunto set my hand and have caused the Seal of the City of Santa Maria to be affixed hereto this 17th day of June 2025.

______________________________
Alice M. Patino, Mayor

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Mark van de Kamp, Public Information Manager

DATE: June 17, 2025

SUBJECT: Presentation – Fireworks Education, Enforcement, and Entertainment

Description:

The City Council will receive a presentation about this year’s fireworks education campaign and enforcement efforts, and the City’s family friendly Fourth of July event.

BACKGROUND:

The city has a three -fold approach to fireworks: education, enforcement, and entertainment with a community event on the Fourth of July. The only time Safe and Sane fireworks may be used within the City Limits is a 12-hour period on the Fourth of July from 11:00 a.m. to 11:00 p.m. The enforcement penalty is a $1,000 fine. Like many cities, Santa Maria experiences rampant use of illegal fireworks. Last year about 65 citations were issued. The intent is to encourage the community to responsibly celebrate the nation’s birthday.

DISCUSSION:

Education:

The City’s annual widespread and bilingual fireworks education campaign is underway.

The focus is safety, be mindful of your neighbors, veterans, and pets. Bilingual messages are placed on social media, local radio stations, City government access TV Comcast Channel 23, posters aboard bu ses and in City offices, the city website, and through the local news media. The Fire Chief speaks in English and Spanish in two public service announcements that also were distributed to KEYT/TELEMUNDO and KSBY. All City - permitted Safe and Sane fireworks booths are required to include one of the City’s fireworks fliers in each bag of pyrotechnics purchased; the city printed 15,000 of these bilingual fliers. Yard signs with wire stakes reading “Celebrate July 4th Neighborly, Noise Sensitive Resident Lives H ere, Be Courteous to Your Neighbors” are again freely available at City Hall for City residents. Staff coordinated messaging with County animal services to inform pet owners how to care for their animals. The fireworks hotline (805) 925-0951 extension 3473 (FIRE) is monitored by the Police Department.

Enforcement:

The Fireworks Enforcement Operation for 2025 has commenced. Police Officers are monitoring social media for fireworks sales and potentially will conduct search warrants for deterrence. Public safety personnel are patrolling for and responding to fireworks as resources allow. Police Officers may be deployed for fireworks enforcement from June 2 30th to July 4th. The City again will have an aircraft equipped with GPS and video to fly over the City on the Fourth of July to immediately and geographically locate any launches of illegal fireworks, enabling authorities to issue citations to the property owner(s). The City Rangers also will be issuing fireworks citations.

Entertainment:

Celebrate Independence Day on Friday, July 4 th at the Elks Baseball Field behind the Abel Maldonado Community Youth Center, 600 South McClelland Street. This “Red, White and Play!” free family event will take place from 12:00 to 4:00 p.m. There will be an outdoor concert from 1:30 to 3:30 p.m., refreshments will be available for sale, the Paul Nelson Pool will be open, and there will be picnic games. The city is not doing a fireworks show, or a drone show due to the significant expense.

Fiscal Considerations:

About $4,000 was expended on the fireworks educational campaign.

Impact to the Community:

The City strives to balance the demands of people opposed to illegal fireworks, with available public safety resources and the demands of competing calls for service, and the City’s longstanding tradition of allowing sales of legal “Safe and Sane” fireworks. Staff recognizes the trauma suffered by noise-sensitive residents as well as panicked pets from fireworks. In 2015, Council approved staff’s recommendations to create third -party administrative citations, undertake a comprehensive education campaign, and increase fees for fireworks booths from $183 to $500 to cover costs for staff regulatory oversight and cleanup of fireworks, as well as increase penalties for using fireworks to $1,000.

1 CITY COUNCIL MEETING MINUTES CITY OF SANTA MARIA, CALIFORNIA

June 3, 2025, 5:30 p.m.

City Hall Council Chambers
110 East Cook Street
Santa Maria

Roll Call: Councilmember Gloria Flores, Councilmember Gloria Soto, Mayor Pro Tem Carlos Escobedo, Mayor Alice Patino

Members Absent: Councilmember Maribel Aguilera-Hernandez

Staff Present: City Manager David W . Rowlands, City Attorney Thomas Watson, Assistant City Manager Chuen Wu, Director of Finance Rebecca Campbell, Police Chief Christopher Williams, Fire Chief Bradley Dandridge, Director of Public Works Brett Fulgoni, Library Director Dawn Jackson, Director of Recreation & Parks Alex Posada, Director of Community Development Chenin Dow, Interim Chief of Police Daniel Cohen, Director of Utili ties Shad Springer, Chief Deputy City Clerk Donna Schwartz, Assistant City Clerk Alexandra Valadez, Deputy City Clerk Ashley Arciniega

_____________________________________________________________________

CLOSED SESSION

1. CALL TO ORDER
At 4:47 p.m. Mayor Patino called the meeting to order.

ROLL CALL:

MEMBERS PRESENT:

Councilmember Flores, Councilmember Soto, and Mayor Patino.

Mayor Pro Tem Escobedo arrived at 4:54 p.m.

MEMBERS ABSENT:

Councilmember Aguilera-Hernandez.

STAFF MEMBERS PRESENT:

City Manager David W. Rowlands, City Attorney Thomas Watson, and Chief Deputy City Clerk Donna G.

Schwartz.

2. PUBLIC COMMENT PERIOD
Mayor Patino opened public comment, there being none, closed public comment.

3. RECESS-CLOSED SESSION
At 4:48 p.m. Mayor Patino recessed to Closed Session.

3.a Public Employee Performance Evaluation, Pursuant to California Government Code §54957(b)(1)

4. RECONVENE TO OPEN SESSION
OPEN SESSION - 5:30 P .M.

5. INVOCATION
Pastor Chris Ivens with First Orcutt Presbyterian Church gave the Invocation.

2 6. PLEDGE OF ALLEGIANCE
Councilmember Flores led the Pledge of Allegiance.

7. CALL TO ORDER
Mayor Patino convened the meeting and called the meeting to order at 5:40 p.m.

8. REPORT BY THE CITY ATTORNEY FROM CLOSED SESSION
City Attorney Watson reported that positive employee performance evaluations were provided.

9. PROCLAMATIONS

9.a Proclamation – “Women Veterans Day” - June 12, 2025 The City Council presented a Proclamation to Kate Ferguson recognizing June 12, 2025, as “Women Veterans Day” to honor and recognize the bravery of all women veterans, including those who made the ultimate sacrifice and gave their lives to protect our state and country.

9.b Proclamation – “Pride Month” – June 2025
The City Council presented a Proclamation to Suzette Lopez, Executive Director of the House of Pride and Equality recognizing the month of June 2025 as “Pride Month” in the City of Santa Maria an d encouraging all residents and businesses to respect the entire community and build a culture that strives for equity and equality for all people.

10. PRESENTATIONS

10.a Measure U – Youth Services
The City Council received a presentation made by Assistant City Manager Chuen Wu on how Measure U funds are spent on Youth Services.

10.b 2024 Annual Police Department Report
The City Council received and filed a presentation made by Commander Dan Cohen regarding the 2024 Annual Police Department Report.

11. PUBLIC COMMENT PERIOD (Not to exceed 15 Minutes)
Mayor Patino invited public comment. Speaking from the public was Laurie Tamura.

12. CONSENT CALENDAR
Consent Calendar Items 12.a.1 through 12.e.6 were approved as presented, including the adoption of Resolution Nos. 2025 -67, 2025 -68, 2025 -69, 2025-70, 2025 -71, 2025 -72, 2025 -73, 2025 -74, 2025-75, 2025-76, and 2025-77. The recorded vote appears with each item below.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopt the Consent Calendar as submitted.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

3 12.a CITY MANAGER/CITY CLERK DEPARTMENT

12.a.1 Ordinances and Resolutions
Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Waived the reading in full of all Ordinances and Resolutions. Ordinances on the Consent Agenda will be adopted by the same vote cast at the first meeting, unl ess City Council indicates otherwise.

Motion carried by a recorded vote

12.a.2 Approval of Minutes
Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Approved the Minutes of the regular City Council meeting of May 6, 2025.

Motion carried by a recorded vote

12.b COMMUNITY DEVELOPMENT DEPARTMENT

12.b.1 Adoption of Resolutions for Final Approval of the Community Development Block Grant Program’s Five-Year Consolidated Plan for Fiscal Years 2025-2029 and Annual Action Plan for Fiscal Year 2025-26.

Action: Adopted as Resolution Nos. 2025-67, 2025-68, 2025-69, and 2025-70.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores

1. Adopted a Resolution approving the Five -Year Consolidated Plan for Community Development Block Grant Program for Fiscal Years 2025-2029; and

2. Adopted a Resolution approving the Public Services activities and allocations under the Community Development Block Grant Program incorporated in the Annual Action Plan for Fiscal Year 2025-26; and

3. Adopted a Resolution approving the Capital Development activities and allocations under the Community Development Block Grant Program incorporated in the Annual Action Plan for Fiscal Year 2025-26; and

4. Adopted a Resolution approving the General Administrative acti vities and allocations under the Community Development Block Grant Program incorporated in the Annual Action Plan for Fiscal Year 2025-26.

Motion carried by a recorded vote

12.b.2 Employee Housing Resource Officer Annual Report
The City Council received, reviewed, and filed the Employee Housing Resource Officer annual report.

4 12.c FINANCE DEPARTMENT

12.c.1 Payment of Warrants
Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Order ratified subject to having been certified as being in conformity with the budget and having been approved for payment by the Director of Finance.

Motion carried by a recorded vote

12.c.2 Payment of Payroll
Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Order ratified subject to having been certified by the proper Department Directors, as shown on records on file in the Department of Finance and having been approved for payment by the Director of Finance.

Motion carried by a recorded vote

12.c.3 Appointment of Deputy City Treasurer, Rebecca Campbell Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Accepted, by motion, the appointment of Rebecca Campbell as Deputy City Treasurer as of May 7, 2025, to act as City Treasurer when the City Treasurer Teressa Hall is unavailable.

Furthermore, any previous Deputy City Treasurer appointments are to be revoked.

Motion carried by a recorded vote

12.d POLICE DEPARTMENT

12.d.1 Adoption of a Resolution Approving the Annual Military Equipment Use Report 2024-2025 Action: Adopted as Resolution No. 2025-71.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving the Annual Military Equipment Use Report June 2024 to June 2025, including the acquisition of add itional equipment and renewing a Military Equipment Use Policy which was adopted by Ordinance No. 2022-03, in compliance with Assembly Bill 481.

Motion carried by a recorded vote

12.e PUBLIC WORKS DEPARTMENT

12.e.1 Adoption of a Resolution Accepting the Right-of-Way Dedication from BE819CA, LLC Action: Adopted as Resolution No. 2025-72.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution accepting the dedication of public right-of-way from BE819CA, LLC.

Motion carried by a recorded vote

5 12.e.2 Adoption of a Resolution Granting a Temporary Construction Easement to the California Department of Transportation
Action: Adopted as Resolution No. 2025-73.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving a Temporary Construction Easement to the California Department of Transportation and authorizing the Mayor to execute all associated documents.

Motion carried by a recorded vote

12.e.3 Adoption of a Resolution Authorizing the Recommended Consolidation of Guadalupe Transit Bus Service with Santa Maria Regional Transit
Action: Adopted as Resolution No. 2025-74.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution authorizing the consolidation of Guadalupe transit bus service with Santa Maria Regional Transit.

Motion carried by a recorded vote

12.e.4 Adoption of a Resolution Establishing a Large Vehicle Parking Restriction on Inger Drive Action: Adopted as Resolution No. 2025-75.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution establishing a large vehicle parking restriction on Inger Drive, between South Broadway and McClelland Street.

Motion carried by a recorded vote

12.e.5 Adoption of a Resolution Establishing a “Keep Clear” Pavement Marking Policy Action: Adopted as Resolution No. 2025-76.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving the establishment of the “Keep Clear” Pavement Marking Policy for the City of Santa Maria.

Motion carried by a recorded vote

12.e.6 Adoption of a Resolution Approving a Road Maintenance and Rehabilitation Account Project List for Senate Bill 1, the Road Repair and Accountability Act of 2017 Action: Adopted as Resolution No. 2025-77.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution adopting a list of projects for Fiscal Year 2025 -26 funded by Senate Bill 1, the Road Repair and Accountability Act of 2017.

Motion carried by a recorded vote

6 13. PUBLIC HEARING

13.a Adoption of a Resolution Declaring to Levy and Collect the 2025-26 Landscape District.

The City Council considered the adoption of the engineers' reports and the levying and collection of the 2025-26 l andscape district assessments. Staff report given by Director of Recreation and Parks Alex Posada.

Mayor Patino opened the public hearing at 6:57 p.m., there being none, closed public comment.

Action: Adopted as Resolution No. 2025-78.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores

1. Approved the Engineer’s Reports for the 2025 -2026 landscape maintenance districts and special benefit zones assessment proceedings; and

2. Adopted a Resolution declaring the intent to levy and collect the property tax assessments for each of the four Landscape Maintenance Districts and the 20 Special Benefit Zones.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

13.b Adoption of a Resolution Adopting Objective Residential Design Standards The City Council considered adopting Objective Residential Design Standards (SP2023-0003), applicable to future single-family developments of two or more units, multi-family projects, and residential mixed- use development projects throughout the City, and which are established to provide more certainty to developers and members of the public regarding the expectations for the desi gn of housing development projects within Santa Maria. Staff report given by Community Development Director Chenin Dow.

Mayor Patino opened the public hearing at 7:04 p.m.

Speaking from the public was Laurie Tamura.

Mayor Patino closed the public hearing at 7:06 p.m.

Action: Adopted as Resolution No. 2025-79.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution adopting the Objective Residential Design Standards.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

7 13.c Adoption of a Resolution Approving an Updated 2025 User Fee Schedule The City Council considered approving the addition and update of the Citywide User Fees identified in the Annual User Fee Update and 2025 User Fee Schedule. Staff report given by Director of Finance Rebecca Campbell.

Mayor Patino opened the public hearing at 7:13 p.m., there being none, closed public comment.

Action: Adopted as Resolution No. 2025-80.

Moved by: Councilmember Escobedo
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving the addition and update of Citywide User Fees identified in the Annual User Fee Update and 2025 User Fee Schedule.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

14. REGULAR BUSINESS

14.a Adoption of a Resolution Adopting a Cost-of-Service Study The City Council considered a recommendation by the Recreation and Parks Commission to adopt a Cost-of-Service Study prepared by Revenue & Cost Specialists. The study evaluates the direct and indirect costs of providing recreation and parks services in Santa Maria and establishes a framework for future fee adjustments and cost recovery strategies. Staff report given by Director of Recreation and Parks Alex Posada, along with Recreation Services Manager Dennis Smithe rman and Recreation and Parks Commissioner Cynthia Gudino.

Action: Adopted as Resolution No. 2025-81.

Moved by: Councilmember Escobedo
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving a new Cost Recovery Structure for Recreation and Parks Programs and Services based on the 2025 Cost-of-Service Study prepared by Revenue & Cost Specialist.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

8 14.b Receive and File the Financial Report for the Third Quarter Ending March 31, 2025, and Adoption of a Resolution Approving Third Quarter Amendments
The City Council considered the Fiscal Year 2024-25 Third Quarter Financial Report and proposed budget amendments. Staff report given by Director of Finance Rebecca Campbell.

Action: Adopted as Resolution No. 2025-82.

Moved by: Councilmember Escobedo
Seconded by: Councilmember Gloria Flores

1. Received and filed the Financial Report for the Third Quarter ending March 31, 2025; and

2. Adopted a Resolution approving Third Quarter Amendments to the Fiscal Year 2024 -25 Budget for personnel and operational changes.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

14.c Adoption of a Resolution to name a City Park in honor of James “Jim” Glines.

The City Council considered the report given by Director of Recreation and Parks Alex Posada on the naming of a City facility in honor of James "Jim" Glines. Motion was made to continue the item to a future meeting.

Moved by: Councilmember Escobedo
Seconded by: Councilmember Gloria Flores
Moved the item to a future meeting.

Ayes (4): Councilmember Gloria Flores, Councilmember Soto, Councilmember Escobedo, and Mayor Patino
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (4 to 0)

14.d Adoption of a Resolution Approving Amendments to the Previously Adopted FY 2025-26 City Budget (Second Year of the Approved Two-Year Budget)
The City Council considered the report given by Director of Finance Rebecca Campbell on the amendments to the Fiscal Year 2025-26 mid-cycle City Budget.

Action: Adopted as Resolution No. 2025-83.

Moved by: Councilmember Soto
Seconded by: Councilmember Gloria Flores
Adopted a Resolution approving amendments to the Fiscal Year 2025 -26 Mid -Cycle City Budget, and delegating the City Manager to implement the same.

Ayes (3): Councilmember Gloria Flores, Councilmember Soto, and Mayor Patino Noes (1): Councilmember Escobedo
Absent (1): Councilmember Aguilera-Hernandez
Motion carried by a recorded vote (3 to 1)

9 15. REPORT BY CITY MANAGER
City Manager Rowlands reported the next City Council Meeting is scheduled for Tuesday, June 17th to include agenda items: Landscape Maintenance Contract Award, Tourist Marketing District Annual Report, and Budget Ad Hoc Committee recommendations, and for the Jul y 1st meeting agenda items:

Leisure Needs Assessment, Appointments for Boards, Committees, and Commissions. He announced the report on the youth program will be coming back to the council and is currently working with finance and city staff on the budget.

16. ORAL REPORTS OF COUNCILMEMBERS AND OFFICERS (INCLUDING AB 1234 REPORTS) Councilmember Flores reported she attended Veterans Home Event with Fred Pratt, the sports complex ground-breaking ceremony, Elks Rodeo, and the West Coast Kustoms Car Show.

Councilmember Escobedo mentioned he attended the sports complex ground-breaking ceremony.

Councilmember Aguilera-Hernandez was absent.

Councilmember Soto announced she attended the downtown revitalization committee.

Mayor Patino reported the following: Guest speaker at McKenzie Junior High "Career Day," attended the Local Agency Formation Commission Board Meeting, participated in the Fighting Back Santa Maria Valley Board Meeting, spoke at Righetti High School government classes, met with United Way, attended the ribbon cutting ceremony for the Council on Alcoholism and Drug Abuse Youth and Family Center. She also participated in the Peace Officers Memorial Ceremony for the Santa Maria Police Department, the Citizen and Student of the Year Awards at the Elks L odge, the Santa Barbara County Association of Governments Board Meeting and Measure A Workshop, the Air Pollution Control District Board Meeting, and the Annual FFA Awards. In addition, she spoke to the Santa Maria High School AVID class, attended the Inte rnational Council of Shopping Centers Conference, participated in the Hope Village meeting with the Santa Maria Police Department and Santa Barbara County, spoke at Career Day at Arellanes Elementary School, and attended the West Coast Kustoms dinner event, car show, and awards ceremony. She also participated in the Memorial Day Veterans Ceremony at the Santa Maria Cemetery, the Sports Complex groundbreaking ceremony, the Marian Foundation Board Meeting, the Elks Rodeo, VIP Reception, and Parade, and lastly attended the 2025 Law Enforcement Torch Run.

17. ADJOURNMENT
There being no further business before the City Council, Mayor Patino declared the City Council meeting adjourned at 9:12 p.m.

Chief Deputy City Clerk Alice M. Patino, Mayor

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Chuen Wu, Assistant City Manager

DATE: June 17, 2025

SUBJECT: Adoption of a Resolution Approving the Fiscal Year 2025 -26 Santa Maria Valley Tourism Marketing District Annual Report

Description:

The City Council will consider approving the Santa Maria Valley Tourism Marketing District Annual Report which includes a 0.5 percent assessment rate increase.

RECOMMENDATION:

Adopt a Resolution approving the Santa Maria Tourism Marketing District Annual Report which includes a 0.5 percent assessment rate increase.

BACKGROUND:

On January 19, 2016, the City Council approved the formation of a Tourism Improvement District (TID) by Resolution Number 2016-04. It levied an annual assessment rate of two percent of gross-term room rental revenue to pay for the TID. The City Council designated the Santa Maria Valley Chamber of Commerce as the non-profit to administer the TID for the first five years. The Council-approved Management District Plan states that the owner’s association must prepare an annual report each fiscal year.

On November 3, 2020, the Council voted to rename the TID to the Santa Maria Valley Tourism Marketing District (SMVTMD) , renew the SMVTMD for seven more years with the term sta rting February 1, 2021 , and ending January 31, 2028, and expand the boundaries to include the City of Guadalup e and the unincorporated area of Santa Barbara County. This renewal would continue the revenue source devoted to marketing the Santa Maria Valley as a tourist, meeting, and event destination.

DISCUSSION:

Tourism Marketing Districts
Tourism Marketing Districts (TMDs) utilize the efficiencies of the private sector to operate the market-based promotion of tourism. These special assessment districts allow lodging business owners to organize their efforts to increase tourism. Lodging business owners within the TMD fund the TMD, and those funds are used to provide services that are desired by and benefit the lodging businesses within the TMD.

2 TMD Benefits:
 Funds cannot be diverted for other government programs  They are customized to fit the needs of each destination  They allow for a wide range of services , including destination marketing, tourism promotion and sales lead generation
 They are designed, created, and governed by those who will pay the assessment  They provide a stable funding source for tourism promotion

In California, TMDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of a special benefit assessment district to raise funds within a specific geographic area. The key difference between TMDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the TMD.

Management District Plan
The Management District Plan for SMVTMD is a proposed means of governance. It includes the Property and Business Improvement District Law of 1994 (PBIDL). Per section 36650 of the PBIDL , the owner’s association is required to prepare a report for each fiscal year, file with the Clerk, and receive City Council approval.

Increase to Assessment Rate
The annual assessment rate is currently two percent of gross short-term rental revenue.

Per the SMVTMD Management Plan, the TMD has the authority to increase the assessment rate to a maximum of four percent of gross room rental revenue within the term of the district, not to exceed 0.5 percent in any giv en year. Upon the vote of the District’s Board at the May 27, 2025 , meeting, the assessment rate for fiscal year 2025/2026 is a total of 2.5 percent of gross room rental revenue, thereby increasing the assessment by 0.5 percent. Based on the benefit receiv ed, the following stays shall not be subject to assessment: stays of more than 30 consecutive days; stays by any office r or employee of a foreign government who is exempt by reason of express provision of Federal Law or international treaty; stays by any p erson who is allowed the right of occupancy by the operator of a lodging business without rent (such as an onsite manager); and stays in any vacation rental unit.

Alternatives
The City Council may approve the report as filed by the owner’s association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636 of the Property and Business Improvement District Law of 1994.

ATTACHMENT(S):

A. Resolution
B Santa Maria Valley Tourism District FY 2025-26 Annual Report

Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA,

APPROVING THE SANTA MARIA VALLEY TOURISM

MARKETING DISTRICT ANNUAL REPORT WHICH INCUDES A

0.5 PERCENT ASSESSMENT RATE INCREASE

WHEREAS, on January 19, 2016, the City Council approved the formation of a Tourism Improvement District by Resolution Number 2016-04; and

WHEREAS, on November 3, 2020, the Council adopted Resolution Number 2020- 109, renaming the Tourism Improvement District to the Santa Maria Valley Tourism Marketing District, expanding the boundaries of the district, and renewing the district for seven more years; and

WHEREAS, the Santa Maria Valley Tourism Marketing District’s Management District Plan allows the Owner’s Association to increase the assessment rate by 0.5 percent in any given year, up to a maximum of four percent of gross room rental revenue within the district; and

WHEREAS, the inclusion of the Property and Business Improvement District Law of 1994 in the Santa Maria Valley Tourism Marketing District’s Management District’s Plan requires the Owner’s Association to prepare an annual report, file the report with the Clerk, and have City Council approve the report per section 36650.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

SECTION 1. Approves the Santa Maria Valley Tourism Marketing District Annual Report which includes the 0.5 percent assessment rate increase; and

SECTION 2. The Chief Deputy City Clerk is hereby authorized to make m inor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 17th day of June 2025.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

Santa Maria Valley
Tourism Marketing District
FY 202526 Annual Report
Santa Maria V alley Tourism
Marketing District: Annual Report
Prepared: June 2, 2025
Introduction
The following outlines the annual report for the Santa Maria Valley Tourism Marketing District as we approach the 20252026 fiscal year, pursuant to Streets and Highways Code §36650 in Appendix 1 of the Santa Maria Valley Tourism Marketing District Management District Plan MDP.

District Boundaries:

There are no proposed changes in the boundaries of the improvement district or any benefit zones.

PAGE 1 of 4
Attachment B
Santa Maria Valley
Tourism Marketing District
FY 202526 Annual Report
202526 Activities & Improvements:

The Santa Maria Valley Tourism Marketing Districtʼs focus is on marketing the destination to attract overnight stays. The 202526 Santa Maria Valley marketing plan outlines a multi-faceted strategy to expand brand awareness, generate new demand, and deepen traveler engagement. The plan moves beyond a pure conversion-based model to focus on inspiring new audiences, exploring niche audiences (like multigenerational and Hispanic travelers), storytelling, and elevating signature experiences such as Santa Maria Style barbecue. Weʼll emphasize inclusive travel, tapping into cultural shifts like the sober-curious movement and road trip trends to position the region as both a destination and a launchpad.

Marketing efforts will span paid media, influencer outreach, SEO, public relations, email marketing, and an optimized website content strategy. AI-powered tools will sharpen targeting and content relevance, while cross-platform storytelling will connect with travelers at every phase of their journey, from inspiration to booking.

We
ʼll develop a new tourism campaign supported by refreshed visual assets and sustained media investment to keep the destination top-of-mind and relevant.

And, with the additional assessment revenue this year, we ʼll prioritize a custom
photo and video shoot to capture assets for the new tourism campaign.

In partnership with the Chamber Visitor Bureau, the district is expanding Santa Mariaʼs presence within group sales and tour operator shows, as well as select consumer travel exhibitions. Expanding and supporting events is also a priority for our district. The Tourism District TMD wants to see events like the annual Barbecue Festival expand, thereby welcoming more out-of-town visitors. The TMD also has an interest in supporting community programs that are directly connected to the tourism industry and has slated to support the Rec Ready Mentorship program in partnership with Hancock College, as well as the public art program led by the City of Santa Maria
ʼs Rec & Parks department.

PAGE 2 of 4

Santa Maria Valley
Tourism Marketing District
FY 202526 Annual Report
20252026 Activity & Improvement Costs:

Method and Basis of Levying the Assessment:

Per the MDP, the Ownerʼs Association has the authority to increase the assessment rate to a maximum of four percent 4% of gross room rental revenue within the term of the district, not to exceed 0.5% in any given year. Upon the vote of the Board at the May 27, 2025 meeting, the assessment rate for fiscal year 2025/26 is a total of 2.5% of gross room rental revenue (increasing by 0.5%.

Based on the benefit received, the following stays shall not be subject to assessment: stays of more than thirty 30 consecutive days; stays by any officer or employee of a foreign government who is exempt by reason of express PAGE 3 of 4

Santa Maria Valley Tourism Marketing District FY 202526 Annual Report

provision of Federal Law or international treaty; stays by any person who is allowed

the

right

occupancy

the

operator

lodging

business

without

rent

(such

the

onsite

manager);

and

stays

any

vacation

rental

unit.

Surplus or Deficit Revenues:

Please refer to the balance sheet thatʼs included within this report.

Contributions Made from Other Sources:

Please refer to the Money Market interest amount reflected in the balance sheet thatʼs

included

within

this

report.

PAGE 4 of 4

Distribution account Total
Income
41000 TMD Assessments 424,826.97
41050 City Admin Fee -6,856.81
46000 Interest Income 6,850.69
Total for Income $424,820.85
Cost of Goods Sold
Gross Profit $424,820.85
Expenses
60200 Administration 59,335.65
64000 Marketing 0.00
60100 Account Management 11,668.00
64010 Media Placement 83,583.75
64015 SEO / Media Management 33,406.75
64080 Creative Development 28,123.75
64100 Social Media / Email / Content 31,566.25
64280 Local Event Grants 10,000.00
64450 Public Relations / Influencer 22,926.00
64500 Research & ROI Tracking 0.00
64520 Research & ROI - Projects 2,437.50
64530 Research & ROI - Reporting 4,875.00
Total for 64500 Research & ROI Tracking $7,312.50
64610 FAMs / Promotions 9,335.64
64800 Website Development 1,827.93
64900 Miscellaneous/Contingency 221.85
Estimated Marketing Costs May & June 85,500.00
Total for 64000 Marketing $325,472.42
Total for Expenses $384,808.07
Net Operating Income $40,012.78
Other Income
Other Expenses
Net Other Income 0.00
Net Income $40,012.78
Profit and Loss
SMV Chamber of Commerce - TMD
Estimated Year End FY25
Distribution account Total
Assets
Current Assets
Bank Accounts
10100 Checking - Heritage Oaks Bank 22,637.65
10500 CD - CoastHills CU 216,847.51
Total for Bank Accounts $239,485.16
Accounts Receivable
11000 Accounts Receivable 150.00
Total for Accounts Receivable $150.00
Other Current Assets
12000 Undeposited Funds
13000 Contigency Fund
Total for Other Current Assets 0.00
Total for Current Assets $239,635.16
Fixed Assets
Other Assets
Total for Assets $239,635.16
Liabilities and Equity
Liabilities
Current Liabilities
Accounts Payable
20000 Accounts Payable
Total for Accounts Payable 0.00
Credit Cards
Other Current Liabilities
23000 Suspense
Total for Other Current Liabilities 0.00
Total for Current Liabilities 0.00
Long-term Liabilities
Total for Liabilities 0.00
Equity
32000 Retained Earnings -10,377.62
Net Income 40,012.78
32100 Contingency/Renewal Reserve 60,000.00
32200 Opportunity Reserve 150,000.00
Total for Equity $239,635.16
Total for Liabilities and Equity $239,635.16
Balance Sheet
SMV Chamber of Commerce - TMD
Estimated Year End FY25

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Graciela Reynoso, Chief Human Resources Officer

DATE: June 17, 2025

SUBJECT: Adoption of Resolutions Approving New Employment Agreements Between the City of Santa Maria and David W. Rowlands and Between the City of Santa Maria and Thomas T. Watson

Description:

The City Council will consider adoption of Resolutions approving new employment agreements with David Wayne Rowlands as City Manager and Thomas Watson as City Attorney.

RECOMMENDATIONS:

1. Adopt a Resolution approving a new employment agreement with David W.

Rowlands for City Manager services; and

2. Adopt a Resolution approving a new employment agreement with Thomas T.

Watson for City Attorney services.

DISCUSSION:

The City Council conducted performance review s of Mr. Rowlands and Mr. Watson in closed session on June 3, 2025. The City Council is proposing new employment agreements with some language changes, a compensation increase for the City Manager and City Attorney and removing them from coverage under the City’s Wage & Benefit Package for the Non-Represented Management and Confidential Employees Resolution No. 2024-47 while also adding benefits therefrom to their new employment agreeme nts.

The City Manager’s annual base salary will be $365,799.00 , with a City contribution of four ( 4%) percent to a deferred compensation plan , effective July 1, 2025. The City Attorney’s annual base salary will be $348,380.00 , with a City contribution to four (4%) percent to a deferred compensation plan, effective July 1, 2025.

2 Fiscal Considerations
Funding for the compensation increases will be included in FY 2025-26 budget.

Impact to the Community
Maintain continuity in City operations.

ATTACHMENT(S)
A. Resolution for Employment Agreement for David W. Rowlands B. Resolution for Employment Agreement for Thomas T. Watson C. Contract between City of Santa Maria and David W. Rowlands D. Contract between City of Santa Maria and Thomas T. Watson

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, APPROVING A NEW EMPLOYMENT
AGREEMENT WITH DAVID W. ROWLANDS

FOR CITY MANAGER SERVICES

WHEREAS, the City Council entered into an Employment Agreement with David W. Rowland for Services Rendered as City Manager dated October 1, 2024, which was adopted by Resolution No. 2024-22 (“2024 Employment Agreement”); and

WHEREAS, on June 3, 2025, the City Council conducted a performance and compensation review of the City Manager in Closed Session; and WHEREAS, the City Council negotiated the terms of a new employment agreement with a compensation increase over the prior 2024 Employment Agreement, reflecting outstanding performance, and with consideration to compression issues and a need for differential between the City Manager, City Attorney and Department Directors; and
WHEREAS, a new 2025 Employment Agreement has been prepared for Mr.

Rowlands for City Manager Services , which shall supersede and replace the 202 4 Employment Agreement; and
WHEREAS, Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive officers and employees of the City by resolution or ordinance; and
WHEREAS, Section 54953 of the California Government Code requires the City Council, prior to taking final action, to orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive such as the City Manager, as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken ; and
WHEREAS, Section 2-3.03 of the Santa Maria Municipal Code states: “The City Manager shall receive such compensation and benefits as the Council shall fix from time to time by ordinance or resolution.”
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, that the City Council:

SECTION 1. Acknowledges and affirms that an oral report of a summary of the recommendation for a final action on the compensation and benefits to be paid the City Manager under the proposed new City Manager Employment Agreement is required by state law and was, in fact, provided in a public meeting held on June 17, 2025 prior to the City Council’s action to adopt the new City Manager Employment Agreement; SECTION 2. Approves the new 2025 Employment Agreement (herein referenced as Exhibit A) with Mr. Rowlands for City Manager Services , which shall supersede and replace the 2024 Employment Agreement;
//
SECTION 3 . Sets Mr. Rowlands’ pay in accordance with the Employment Agreement, at $365,799.00 annually;
SECTION 4 . Will undertake an annual review of the performance of the City Manager utilizing a process, form, criteria, and format for the evaluation which shall be mutually agreed upon, and begin in May and shall be completed by the third week in June each year; and
SECTION 5. That the Mayor is authorized to sign said Employment Agreement on behalf of the City Council.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 17th day of June 2025, by the following roll call vote:

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Head
_______________________________
City Manager

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA

MARIA, CALIFORNIA, APPROVING A NEW EMPLOYMENT
AGREEMENT WITH THOMAS T. WATSON

FOR CITY ATTORNEY SERVICES

WHEREAS, the City Council entered into an Employment Agreement with Thomas T. Watson for Services Rendered as City Attorney dated May 7, 2019, which was adopted by Resolution No. 2019-44 (“Employment Agreement for City Attorney Services”); and

WHEREAS, on June 3, 2025, the City Council conducted a performance and compensation review of the City Attorney in Closed Session; and WHEREAS, the City Council negotiated the terms of a new employment agreement with a compensation increase over the prior 2019 Employment Agreement for City Attorney Services , reflecting outstanding performance, and with consideration to compression issues and a need for differential between the City Manager, City Attorney and Department Directors; and
WHEREAS, a new 2025 Employment Agreement has been prepared for Mr.

Watson for City Attorney Services, which shall supersede and replace the 20 19 Employment Agreement for City Attorney Services; and
WHEREAS, Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive office rs and employees of the City by resolution or ordinance; and
WHEREAS, Section 54953 of the California Government Code requires the City Council, prior to taking final action, to orally report a summary of a recommendation for a final action on the salaries, salary schedules, or compensation paid in the form of fringe benefits of a local agency executive such as the City Attorney as defined in subdivision (d) of Section 3511.1, during the open meeting in which the final action is to be taken ; and
WHEREAS, Section 2-4.03.1 of the Santa Maria Municipal Code states: “The City Attorney shall receive such compensation and benefits as the Council shall fix from time to time by ordinance or resolution.”
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, that the City Council:

SECTION 1. Acknowledges and affirms that an oral report of a summary of the recommendation for a final action on the compensation and benefits to be paid the City Attorney under the proposed new City Attorney Employment Agreement is required by state law and was, in fact, provided in a public meeting held on June 17, 2025 prior to the City Council’s action to adopt the new Employment Agreement for City Attorney Services; SECTION 2. Approves the new 2025 Employment Agreement (herein referenced as Attachment B) with Mr. Watson for City Attorney Services, which shall supersede and replace the 2019 Employment Agreement for City Attorney Services; //
SECTION 3 . Sets Mr. Watson’s pay in accordance with the Employment Agreement, at $348,380.00 annually;
SECTION 4 . Will undertake an annual review of the performance of the City Attorney utilizing a process, form, criteria, and format for the evaluation which shall be mutually agreed upon, and begin in May and shall be completed by the third week in June each year; and
SECTION 5. That the Mayor is authorized to sign said Employment Agreement on behalf of the City Council.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, held this 17th day of June 2025, by the following roll call vote:

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Head
_______________________________
City Manager

Attachment C
1 EMPLOYMENT AGREEMENT

BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA MARIA
AND DAVID W. ROWLANDS FOR SERVICES RENDERED AS CITY MANAGER This agreement is entered into this 17th day of June 2025, by and between the City Council of the City of Santa Maria, a municipal corporation, hereinafter referred as “City,” and David W.

Rowlands, an individual, hereinafter referred to as “Employee” (the “Agreement”), with reference pursuant to the following:

WHEREAS, the City Council entered into an Employment Agreement with David W.

Rowlands for Services Rendered as City Manager dated October 1, 2024, which was adopted by Resolution No. 2024-122 (“2024 Employment Agreement”);

WHEREAS the City Council desires to have Employee continue to provide services to the City as its appointed City Manager; and

WHEREAS the City Manager shall continue be an “At-Will” employee and serve at the pleasure of the City Council; and

WHEREAS it is the desire of the City Council to amend and restate Employee’s compensation and benefits, which shall supersede and replace the 2024 Employment Agreement and any and all other prior agreements and/or contracts for compensation and benefits; and

WHEREAS it is the desire of the City Council to: provide inducement for the Employee to remain in such employment for the term of this Agreement; make possible full work productivity by assuring Employee’s morale, health and peace of mind with respect to the future security of him and his family; assist in the maintenance of the health and well-being of Employee; provide a just means for terminating the services of Employee at such time as he may be unable to discharge fully his duties due to disability or when the City Council may desire to otherwise terminate his employment; act as a deterrent against malfeasance or dishonestly for personal gain on the part of Employee and against morally questionable personal financial dealings; and establish a clear and mutually understood system of compensating Employee; and

WHEREAS Employee wishes to continue to serve the City Council as its City Manager; and
WHEREAS Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive officers and employees of the City by resolution or ordinance; and

WHEREAS Section 2-3.03 of the Santa Maria Municipal Code states: “The City Manager shall receive such compensation and benefits as the Council shall fix from time to time by ordinance or resolution.”

Attachment C
2 NOW, THEREFORE, in consideration of the promises, terms and conditions contained in this Agreement, City and Employee agree that this Agreement shall supersede and replace the 2024 Employment Agreement upon adoption by City Council Resolution and provide as follows:

A. DUTIES.

City hereby agrees to employ David W. Rowlands as City Manager of the City and to perform the duties and functions of that office as specified in the Santa Maria Municipal Code and to perform such other legally permissible duties as the City Council shall from time-to-time assign. Any changes to duties, reduction of salary, benefits or other terms of employment must be mutually agreed upon by both parties.

B. HOURS OF WORK.

It is recognized the Employee must devote a great deal of time outside the normal office hours to business of the City, and to that end Employee has discretion to set his work schedule and determine his work location and will be allowed to take time off as he shall deem appropriate during said normal office hours.

C. TERM.

Employee’s status shall be “at-will” and shall serve at the pleasure of City Council. Nothing in this Agreement or any other existing or future document, not specifically amending this Agreement, shall prevent, limit or otherwise interfere with the right of City to terminate the employment of said Employee at any time and for any reason, or for no reason, subject only to provisions specified in Section F of this Agreement.

This Agreement s hall be effective as of June 28, 2025, and unless otherwise terminated under the Provisions of Section E, shall remain in effect until the Employee resigns from employment or terminated by a super majority of City Council.

Termination by City Manager. City Manager May terminate his Agreement at any time or resign from employment with the City, provided City Manager provides City Council with at least forty -five (45) days’ advanced written notice prior to the effective date o f resignation, unless a shorter period is acceptable to City Council.

D. COMPENSATION, BENEFITS, AND ANNUAL PERFORMANCE
EVALUATIONS.

Beginning at the Effective Date, the employee classification of City Manager will be removed from the NMAC resolution salary group and from any right to pay or benefits derived from any resolution covering that employee group , and the City shall provide the City Manager with the following exclusive compensation and benefits:

Attachment C
3 1. SALARY. The City Manager’s annual compensation shall be $365,799.00 paid bi- weekly for the term of this Agreement. Except as may otherwise be provided, the City Manager’s salary, and other compensation provided for in this Agreement, shall be paid in increments in the same manner as for other City employees. Effective with the first full pay period commencing June 28, 2025, the City Manager’s salary shall be adjusted as set forth in this Agreement. The City Manager’s salary shall not be less than 15% above the Assistant City Manager and/or any director employed by the City.

2. MANAGEMENT ADJUSTMENTS. City Manager shall receive the same percentage salary adjustments as the City may from time to time confer upon the class of employees designated by the City as “Management ,” which will not be less than the increase granted to the employee bargaining units.

3. MERIT INCREASES. The City Council may from time to time grant merit increases to City Manager’s salary provided above, as follows: If after each evaluation of the City Manager's performance, as described in this Agreement, the City Council concludes that the City Manager’s performance warrants a compensation adjustment for merit, the City Council may grant a merit compensation increase in an amount determined by the City Council, to be effective on a date determined by the City Council. Such merit compensation adjustments may be granted on one or more occasions during a year and may be in the form of lump sum payments, increases to annual salary or any other compensation and/or benefit form determined by the City Council, but shall be in addition to any adjustments made in accordance with the Management Adjustments described above in Paragraph D 2.

4. DEFERRED COMPENSATION . The City shall provide a nnual contributions to a Section 457 Deferred Compensation Plan equal to 4% of Employee’s salary with contributions distributed equally over the annual bi-weekly payroll cycle.

5. CELL PHONE and EQUIPMENT ALLOWANCE. The City shall provide $135 monthly, distributed equally over the biweekly payroll cycle or as adjusted for Management Employees, whichever is larger.

6. AUTOMOBILE ALLOWANCE. The City shall provide $323.08 bi-weekly distributed over the biweekly payroll cycle or as adjusted for Management Employees, whichever is greater. Auto Allowance is adjusted yearly according to the current policy. The City Manager shall be responsible for paying all liability, property damage and comprehensive insurance coverage on any vehicle he uses in the performance of his duties as City Manager as well as all purchase, operation, maintenance and repair costs for such vehicle(s). The City Manager shall be reimbursed at the IRS standard mileage Attachment C
4 rate for any business use of his vehicle to a location more than fifty (50) miles one way from Santa Maria City Hall, 110 East Cook Street , per the City’s Auto Allowance Policy.

7. HEALTH, DENTAL and VISION . The City Manager shall receive Medical benefits under the California Public Employees’ Retirement System (“CalPERS”) medical program. If the Employee is enrolled in the City’s medical insurance program, the City will contribute the full monthly premium required by CalPERS to his health insurance.

This contribution shall increase when the monthly contribution is increased for all other City employees to reflect the same increase given to other Management employees.

The City will cover Employee’s monthly premiums for dental and vision family plans.

8. VACATION LEAVE. The City Manager shall accrue vacation leave at a rate of 9.2308 paid hours per pay period of employment (to equal 30 days per year). The City Manager may accrue up to a maximum of 450 hours of vacation leave, at which point accruals will stop until the leave bank falls below the cap . Vacation leave up to 120 hours per fiscal year may be converted into cash.

9. MANAGEMENT LEAVE. To compensate him for after -hours meetings, Employee shall be granted 120 hours of Management Leave with pay each calendar year (January 1 – December 31). Such Management Leave shall be given over the course of the year at a rate of 4.615 hours per pay p eriod. City Manager shall be allowed to carry over from year-to-year Management Leave hours up to a maximum 120 hours of Management Leave, at which point leave accruals will cease until the leave bank falls below the cap.

10. SICK LEAVE. Accrual of one day per month with unlimited accrual. Unused sick leave is not paid on separation from employment with the City.

11. PAYMENT FOR ACCRUED BENEFITS . Upon termination of this Agreement and the services of City Manager thereunder, City shall pay to City Manager the cash equivalent of all vacation leave then accrued as authorized by the City Council. Such cash equivalent shall be calculated by dividing City Managers’ prevailing annual salary by 2080 hours and by multiplying the resulting quotient by the number of hours accrued (but unused) vacation leave and or management leave.

12. HOLIDAYS. Employee shall be entitled to the following holidays and those granted to Management Employees of the City. The holiday will be paid according to Employee’s scheduled hours for the respective holiday.

Attachment C
5 New Years Day
Martin Luther King Jr.

Presidents Day
Caesar Chavez Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas
New Years Eve

13. FRINGE BENEFIT INCREASES. The City’s intent is to provide Employee with fringe benefit levels that are at least equal to, or exceed, the level of benefits provided by the City to Management Employees . Accordingly, at all times during the term of this Agreement, Employee shall receive any fringe benefit increases given by the City to Management Employees pursuant to the City Council adopted resolutions, as they may be amended from time to time, such that Employee’s fringe benefit levels do not fall below City department heads.

14. PERFORMANCE EVALUATIONS. The performance review and evaluation process set forth herein is intended to provide review and feedback to Employee to facilitate more effective management of the City. Nothing herein shall be deemed to alter or change the employment status of Employee, nor shall this be construed as requiring “cause” to terminate this Agreement, or the services of Employee hereafter.

The City Council shall undertake an annual review of the performance of Employee utilizing a process, form, criteria, and format for the evaluation which shall be mutually agreed upon by City and Employee. The process shall, at a minimum, include the opportunity for both parties to: 1. Meet and discuss the evaluation, and 2. Present a written summary of the evaluation results. Any written evaluation should be completed and delivered to the City Manager within 30 days of the evaluation meeting.

The evaluation should begin in May and shall be completed by the third week in June each year.

Attachment C
6 15. CIVIC CLUB MEMBERSHIP. The City recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to be a member of a local service club, for which the City shall reimburse City Manager for necessary expenses for dues and meals. The City will not reimburse the Employee for any service club related fines or event costs (i.e. ticket purchases, auction items, etc.).

16. ADDITIONAL BENEFITS.

(a) The City shall contribute the full amount of the premium for Employee for a policy of term life insurance in an amount equal to twice his annual salary.

(b) The City shall contribute the full amount of the premium for Employee for Long- Term Disability.

(c) The City shall contribute the full amount of the premium for Accidental Death and Dismemberment on behalf of Employee.

(d) CALPERS RETIREMENT. Employee is a “ PEPRA” member of CalPERS and shall continue to participate in the two percent (2%) at 62 formula. The City Manager shall pay employee contributions to CalPERS, as required by CalPERS. The payments will be reported as being those of the Employee and credited to his individual account with CalPERS.

(e) POST EMPLOYMENT HEALTH PLAN . The City will contribute $100 per pay period toward a post-employment health plan for Employee.

(f) The City will pay the cost of any fidelity or other bonds required by law for Employer to perform the role of City Manager, and costs to defend and indemnify the City Manager as required by state law.

E. SEVERANCE AND CITY MANAGER REMOVAL AFTER ELECTION.

1. SEVERANCE PAY. Should the City elect to terminate this Agreement and the services of Employee hereunder without cause, City Manager shall be entitled to a severance payment equal to twelve -months (12) months the then-current base salary and health benefits for employee and spouse and for severance pay to be paid in a lump sum payment. This payment shall be conditioned upon Employee executing a release and waiver of all claims in a form approved by the City Attorney.

Attachment C
7 2. REMOVAL AFTER ELECTION. The City Council shall not r emove Employee without cause during or within a 120-day period following : (1) a municipal general election when a new member of the City Council is elected or (2) the appointment of a new member. This is for the City M anager and new City Council to establish a professional working relationship.

F. TERMINATION.

1. Employee acknowledges and agrees that he is an “at will” employee serving at the pleasure of the City Council and may be terminated without any right of appeal.

2. The City Council may terminate this Agreement upon written notice at any time for “good cause.” For purposes of this Agreement, “good cause” shall include, but is not limited to, any of the following:

(a) A material breach of terms of this Agreement;

(b) Habitual neglect by the employee of his employment duties;

(d) A failure to perform duties in a professional and responsible manner consistent with generally accepted standards of the profession;

(e) Engaging in personal conduct detrimental or prejudicial to public service;

(f) Causes for discipline as defined in the City Administrative Memo (CAM) regarding Disciplinary Action (CAM 1999-02);

(g) Any crime involving the abuse of his position while employed by the City; and

(h) Any crime against public justice (as set forth in Title 7 of the California Penal Code).

3. “Good cause” shall not mean a mere loss of support or confidence by the City Council.

If the Employee is terminated for cause, he shall not be entitled to severance pay or other compensation as delineated in Sections B and C below, other than the payment of accrued unused vacation leave, and pro-rated management leave time if any.

4. The City Council may terminate this Agreement at any time without cause upon sixty (60) calendar days written notice. The City Council may place Employee on paid Attachment C
8 Administrative Leave at any time during these sixty (60) days upon written notice without cause. Prior to the end of this sixty (60) day period, the Employee will be entitled to be paid the compensation earned by his (i.e. all unused accrued vacation) leave time, as well as his unused pro -rated accrued management leave on the payroll period prior to the eff ective date of termination or said benefits can be paid to the employee on the final payroll and are then subject to the Post Employment Health Plan.

Should the employee decide to be paid all unused compensation (as previously described) prior to the final payroll, all leave accruals will cease in the payroll period.

5. In the event that the Employee is placed on paid Administrative Leave without cause, but the Employee is subsequently convicted of: (1) any crime involving the abuse of his position while employed by the City; and/or (2) any crime against public justice (as set forth in Title 7 of the California Penal Code while employed by the City, Employee shall reimburse the City for the payments received by the Employee from the City while on paid Administrative Leave.

6. At the end of the sixty (60) day period, the Employee’s service will automatically terminate. Upon termination, the Employee shall be entitled to receive the amount set forth in Paragraph E1 conditioned upon Employee executing a release and waiver of all claims in a form approved by the City Attorney . Said severance pay will not be subject to the Post Employment Health Plan.

7. In consideration of the above severance payment, the Employee agrees that he shall not be entitled to any other payment or compensation of any kind from the City (unless otherwise mandated by law) in connection with the termination of his employment. The Employee acknowledges and agrees as an at -will employee that if he is terminated pursuant to the Section, he shall not be entitled to appeal or litigate his termination and shall be conditioned upon Employee executing a release a nd waiver of all claims in a form approved by the City Attorney.

8. In the event that the Employee receives severance pay, but the Employee is subsequently convicted of: (1) any crime involving the abuse of his position while employed by the City; and/or (2) any crime against public justice (as set forth in Title 7 of the California Penal Code) while employed by the City, Employee shall reimburse the City for the severance payments received from the City.

9. The Employee may resign from his employment at any time for any reason by providing forty-five (45) days prior written notice to the City Council, which may be reduced by the City Council. If the Employee provides such written notice, he shall be entitled to receive, at the termination of his employment, only such accrued unused and Attachment C
9 other such benefits as may be due and payable under applicable City rules, regulations or polices, and/or under applicable local, State or Federal law. The employee shall not, however, be entitled to any severance pay or other compensation as indicated in Section E as a result of his resignation.

G. PROFESSIONAL DEVELOPMENT.

1. MEMBERSHIP. City Council encourages the Employee’s continued professional development and membership and shall provide payment of appropriate related costs for such activities, including memberships in the California City Management Foundation and International City/County Management Association (ICMA).

2. OUT OF TOWN MEETING AND SEMINARS . City Council agrees to pay and/or reimburse Employee for the actual cost for registration, travel, lodging and meals and other necessary expenses incurred by Employee while attending out-of-town meetings or seminars related to his employment with City. These include the following: ICMA Annual Conference and/or Regional Conference; League of Cities Annual Conference; League of Cities City Managers Department Conference. To be eligible to receive reimbursement for meals and lodging for out-of-town meetings or seminars, Employee must have budgeted funds available for such. Employe may request per diem for meals which are commensurate with the meeting location including tax and tips. Funds for travel shall be included in the City’s annual budget.

3. LOCAL MEETINGS AND SEMINARS . City agrees to pay and/or reimburse Employee for the actual cost of registration, meals and other expenses necessarily incurred by him while engaged in the business of City upon the presentation of an appropriate receipt therefore. Employee may request per diem for meals which are commensurate with the meeting location including tax and tips.

4. INCIDENTAL EXPENSES. City agrees to reimburse the Employee for the actual cost of those incidental expenses necessarily incurred by him while engaged in the business of City upon the presentation of an appropriate receipt therefore.

H. CITY COUNCIL COMMITMENTS.

1. The City Council sets policy for the governance and administration of the City, and it implements its policies through the City Manager.

2. Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, officers, contractors, and consulta nts solely through the Attachment C
10 City Manager and neither the City Council nor any member thereo f shall give orders to any subordinate of the City Manager, either publicly or privately.

3. The City Council agrees none of its individual members will order the appointment or removal of any person from any office or employment under the supervision and control of the City Manager.

4. The City Council agrees that any criticism of a City staff member shall be done privately through the City Manager.

5. Neither the City Council nor any of its members shall interfere with the execution of the powers and duties of the City Manager. The City Manager shall take orders and instructions from the City Council only when it is sitting as a body in a lawfully held meeting.

I. ICMA CODE OF ETHICS.

1. The Parties mutually desire that the City Manager be subject to and comply with the ICMA Code of Ethics.

2. The City Manager commits to complying with the ICMA Code of Ethics.

3. The City Council agrees that neither the City Council nor any of its members will give the City Manager any order, direction, or request that would require the City Manager to violate the ICMA Code of Ethics.

J. INDEMNIFICATION.

1. City shall defend, save harmless, and indemnify Employee against any tort, professional liability claim s or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Manager as required by state law . City has the authority without the Employee's consent to compromise and settle any such claim or suit or pay the amount of any settlement or judgment rendered thereon, subject to the laws of the State of California.

2. However, with respect to any payments by the City for the Employee's legal defense in any legal proceeding in which the Employee is convicted of: (1) any crime involving the abuse of his position while employed by the City; and/or (2) any crime against public justice (as set forth in Title 7 of the California Penal Code) while employed by the City, Employee shall reimburse the City for any such payments.

Attachment C
11 K. MODIFICATIONS.

Modifications may only be made to the Agreement if made in writing and signed by both parties.

L. SEVERABILITY.

Any term of this Agreement found to be invalid by a court of competent jurisdiction or made invalid by applicable State or Federal legislation is severable and shall not affect any other provision of the Agreement.

DAVID W. ROWLANDS

___________________________
City Manager

CITY OF SANTA MARIA,
A Municipal Corporation

Alice Patino
Mayor

ATTEST:

Donna G. Schwartz, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

_______________________________
Risk Manager
_______________________________
City Attorney
Attachment D
1 EMPLOYMENT AGREEMENT

BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA MARIA
AND THOMAS T. WATSON FOR SERVICES RENDERED AS CITY ATTORNEY This agreement is entered into this 17th day of June 2025, by and between the City Council of the City of Santa Maria, a municipal corporation, hereinafter referred as “City,” and Thomas T.

Watson, an individual, hereinafter referred to as “Employee” (the “Agreement”), with reference pursuant to the following:

WHEREAS, the City Council entered into an Employment Agreement with Thomas T.

Watson for Services Rendered as City Attorney dated May 7, 2019, which was adopted by Resolution No. 2019-44 (“Employment Agreement”);

WHEREAS the City Council desires to have Employee continue to provide services to the City as its appointed City Attorney; and

WHEREAS the City Attorney shall continue be an “At-Will” employee and serve at the pleasure of the City Council; and

WHEREAS it is the desire of the City Council to amend and restate Employee’s compensation and benefits, which shall supersede and replace the 2 019 Employment Agreement and any and all other prior agreements and/or contracts for compensation and benefits; and

WHEREAS it is the desire of the City Council to: provide inducement for the Employee to remain in such employment for the term of this Agreement; make possible full work productivity by assuring Employee’s morale, health and peace of mind with respect to the future security of him and his family; assist in the maintenance of the health and well-being of Employee; provide a just means for terminating the services of Employee at such time as he may be unable to discharge fully his duties due to disability or whe n the City Council may desire to otherwise terminate his employment; act as a deterrent against malfeasance or dishonestly for personal gain on the part of Employee and against morally questionable personal financial dealings; and establish a clear and mutually understood system of compensating Employee; and

WHEREAS Employee wishes to continue to serve the City Council as its City Attorney; and
WHEREAS Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive officers and employees of the City by resolution or ordinance; and

WHEREAS Section 2-4.03.1 of the Santa Maria Municipal Code states: “The City Attorney shall receive such compensation and benefits as the Council shall fix from time to time by ordinance or resolution.”

Attachment D
2 NOW, THEREFORE, in consideration of the promises, terms and conditions contained in this Agreement, City and Employee agree that this Agreement shall supersede and replace the 2019 Employment Agreement upon adoption by City Council Resolution and provide as follows:

A. DUTIES.

City hereby agrees to employ Thomas T. Watson as City Attorney of the City and to perform the duties and functions of that office as specified in the Santa Maria Municipal Code and to perform such other legally permissible duties as the City Council shall from time-to-time assign. Any changes to duties, reduction of salary, benefits or other terms of employment must be mutually agreed upon by both parties.

B. HOURS OF WORK.

C. TERM.

This Agreement shall be effective as of June 28, 2025, and unless otherwise terminated under the Provisions of Section E, shall remain in effect until the Employee resigns from employment or terminated by a super majority of City Council.

Termination by City Attorney. City Attorney may terminate his Agreement at any time or resign from employment with the City, provided City Attorney provides City Council with at least forty -five (45) days’ advanced written notice prior to the effective date of resignation, unless a shorter period is acceptable to City Council.

D. COMPENSATION, BENEFITS, AND ANNUAL PERFORMANCE
EVALUATIONS.

Beginning at the Effective Date, the employee classification of City Attorney will be removed from the NMAC resolution salary group and from any right to pay or benefits derived from any resolution covering that employee group , and the City shall provide the City Attorney with the following exclusive compensation and benefits:

Attachment D
3 1. SALARY. The City Attorney’s annual compensation shall be $348,380.00 paid bi - weekly for the term of this Agreement. Except as may otherwise be provided, the City Attorney’s salary, and other compensation provided for in this Agreement, shall be paid in increments in the same manner as for other City employees. E ffective with the first full pay period commencing June 28, 2025, the City Attorney’s salary shall be adjusted as set forth in this Agreement. The City Attorney’s salary shall not be less than 5% below the City Manager’s salary.

2. MANAGEMENT ADJUSTMENTS. City Attorney shall receive the same percentage salary adjustments as the City may from time to time confer upon the class of employees designated by the City as “Management ,” which will not be less than the increase granted to the employee bargaining units.

3. MERIT INCREASES. The City Council may from time to time grant merit increases to City Attorney’s salary provided above, as follows: If after each evaluation of the City Attorney's performance, as described in this Agreement, the City Council concludes that the City Attorney’s performance warrants a compensation adjustment for merit, the City Council may grant a merit compensation increase in an amount determined by the City Counc il, to be effective on a date determined by the City Council. Such merit compensation adjustments may be granted on one or more occasions during a year and may be in the form of lump sum payments, increases to annual salary or any other compensation and/or benefit form determined by the City Council, but shall be in addition to any adjustments made in accordance with the Management Adjustments described above in Paragraph D 2.

5. CELL PHONE and EQUIPMENT ALLOWANCE. The City shall provide $135 monthly, distributed equally over the biweekly payroll cycle or as adjusted for Management Employees, whichever is larger.

6. AUTOMOBILE ALLOWANCE. The City shall provide $323.08 bi-weekly distributed over the biweekly payroll cycle or as adjusted for Management Employees, whichever is greater. Auto Allowance is adjusted yearly according to the current policy. The City Attorney shall be responsible for paying all liability, property damage and comprehensive insurance coverage on any vehicle he uses in the performance of his duties as City Attorney as well as all purchase, operation, maintenance and repair costs for such vehicle(s). The City Attorney shall be reimbursed at the IRS standard mileage Attachment D
4 rate for any business use of his vehicle to a location more than fifty (50) miles one way from Santa Maria City Hall, 110 East Cook Street , per the City’s Auto Allowance Policy.

7. HEALTH, DENTAL and VISION . The City Attorney shall receive Medical benefits under the California Public Employees’ Retirement System (“CalPERS”) medical program. If the Employee is enrolled in the City’s medical insurance program, the City will contribute the full monthly premium required by CalPERS to his health insurance.

This contribution shall increase when the monthly contribution is increased for all other City employees to reflect the same increase given to other Management employees.

The City will cover Employee’s monthly premiums for dental and vision family plans.

8. VACATION LEAVE. The City Attorney shall accrue vacation leave at a rate of 9.2308 paid hours per pay period of employment (to equal 30 days per year). The City Attorney may accrue up to a maximum of 450 hours of vacation leave, at which point accruals will stop until the leave bank falls below the cap . Vacation leave up to 120 hours per fiscal year may be converted into cash.

9. MANAGEMENT LEAVE. To compensate him for after -hours meetings, Employee shall be granted 120 hours of Management Leave with pay each calendar year (January 1 – December 31). Such Management Leave shall be given over the course of the year at a rate of 4.615 hours per pay period. City Attorney shall be allowed to carry over from year-to-year Management Leave hours up to a maximum 120 hours of Management Leave, at which point leave accruals will cease until the leave bank falls below the cap.

10. SICK LEAVE. Accrual of one day per month with unlimited accrual. Unused sick leave is not paid on separation from employment with the City.

11. PAYMENT FOR ACCRUED BENEFITS . Upon termination of this Agreement and the services of City Attorney thereunder, City shall pay to City Attorney the cash equivalent of all vacation leave then accrued as authorized by the City Council. Such cash equivalent shall be calculated by dividing City Attorneys’ prevailing annual salary by 2080 hours and by multiplying the resulting quotient by the number of hours accrued (but unused) vacation leave and or management leave.

Attachment D
5 New Years Day
Martin Luther King Jr.

Presidents Day
Caesar Chavez Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Day After Thanksgiving
Christmas Eve
Christmas
New Years Eve

The evaluation should begin in May and shall be completed by the third week in June each year.

Attachment D
6 15. CIVIC CLUB MEMBERSHIP. The City recognizes the desirability of representation in and before local civic and other organizations, and Employee is authorized to be a member of a local service club, for which the City shall reimburse City Attorney for necessary expenses for dues and meals. The City will not reimburse the Employee for any service club related fines or event costs (i.e. ticket purchases, auction items, etc.).

16. ADDITIONAL BENEFITS.

(a) The City shall contribute the full amount of the premium for Employee for a policy of term life insurance in an amount equal to twice his annual salary.

(b) The City shall contribute the full amount of the premium for Employee for Long- Term Disability.

(c) The City shall contribute the full amount of the premium for Accidental Death and Dismemberment on behalf of Employee.

(d) CALPERS RETIREMENT. Employee is a “ PEPRA” member of CalPERS and shall continue to participate in the two percent (2%) at 62 formula. The City Attorney shall pay employee contributions to CalPERS, as required by CalPERS. The payments will be reported as being those of the Employee and credited to his individual account with CalPERS.

(e) POST EMPLOYMENT HEALTH PLAN . The City will contribute $100 per pay period toward a post-employment health plan for Employee.

(f) The City will pay the cost of any fidelity or other bonds required by law for Employer to perform the role of City Attorney, and costs to defend and indemnify the City Attorney as required by state law.

E. SEVERANCE AND CITY ATTORNEY REMOVAL AFTER ELECTION.

1. SEVERANCE PAY. Should the City elect to terminate this Agreement and the services of Employee hereunder without cause, City Attorney shall be entitled to a severance payment equal to twelve -months (12) months the then-current base salary and health benefits for employee and spouse and for severance pay to be paid in a lump sum payment. This payment shall be conditioned upon Employee executing a release and waiver of all claims in a form approved by the City’s legal representative.

Attachment D
7 2. REMOVAL AFTER ELECTION . The City Council shall not r emove Employee without cause during or within a 120-day period following : (1) a municipal general election when a new member of the City Council is elected or (2) the appointment of a new member. This is for the City Attorney and new City Council to establish a professional working relationship.

F. TERMINATION.

1. Employee acknowledges and agrees that he is an “at will” employee serving at the pleasure of the City Council and may be terminated without any right of appeal.

(a) A material breach of terms of this Agreement;

(b) Habitual neglect by the employee of his employment duties;

(d) A failure to perform duties in a professional and responsible manner consistent with generally accepted standards of the profession;

(e) Engaging in personal conduct detrimental or prejudicial to public service;

(f) Causes for discipline as defined in the City Administrative Memo (CAM) regarding Disciplinary Action (CAM 1999-02);

(g) Any crime involving the abuse of his position while employed by the City; and

(h) Any crime against public justice (as set forth in Title 7 of the California Penal Code).

3. “Good cause” shall not mean a mere loss of support or confidence by the City Council.

4. The City Council may terminate this Agreement at any time without cause upon sixty (60) calendar days written notice. The City Council may place Employee on paid Attachment D
8 Administrative Leave at any time during these sixty (60) days upon written notice without cause. Prior to the end of this sixty (60) day period, the Employee will be entitled to be paid the compensation earned by his (i.e. all unused accrued vacation) leave time, as well as his unused pro -rated accrued management leave on the payroll period prior to the eff ective date of termination or said benefits can be paid to the employee on the final payroll and are then subject to the Post Employment Health Plan.

Should the employee decide to be paid all unused compensation (as previously described) prior to the final payroll, all leave accruals will cease in the payroll period.

6. At the end of the sixty (60) day period, the Employee’s service will automatically terminate. Upon termination, the Employee shall be entitled to receive the amount set forth in Paragraph E1 conditioned upon Employee executing a release and waiver of all claims in a form approved by the City ’s legal representative. Said severance pay will not be subject to the Post Employment Health Plan.

7. In consideration of the above severance payment, the Employee agrees that he shall not be entitled to any other payment or compensation of any kind from the City (unless otherwise mandated by law) in connection with the termination of his employment. The Employee acknowledges and agrees as an at -will employee that if he is terminated pursuant to the Section, he shall not be entitled to appeal or litigate his termination and shall be conditioned upon Employee executing a release and waiver of all claims in a form approved by the City’s legal representative.

8. In the event that the Employee receives sever ance pay, but the Employee is subsequently convicted of: (1) any crime involving the abuse of his position while employed by the City; and/or (2) any crime against public justice (as set forth in Title 7 of the California Penal Code) while employed by the City, Employee shall reimburse the City for the severance payments received from the City.

9. The Employee may resign from his employment at any time for any reason by providing forty-five (45) days prior written notice to the City Council, which may be reduced by the City Council. If the Employee provides such written notice, he shall be entitled to receive, at the termination of his employment, only such accrued unused and Attachment D
9 other such benefits as may be due and payable under applicable City rules, regulations or polices, and/or under applicable local, State or Federal law. The employee shall not, however, be entitled to any severance pay or other compensation as indicated in Section E as a result of his resignation.

G. PROFESSIONAL DEVELOPMENT.

2. OUT OF TOWN MEETING AND SEMINARS . City Council agrees to pay and/or reimburse Employee for the actual cost for registration, travel, lodging and meals and other necessary expenses incurred by Employee while attending out-of-town meetings or seminars related to his employment with City. These include the following: ICMA Annual Conference and/or Regional Conference; League of Cities Annual Conference; League of Cities City Attorneys Department Conference. To be eligible to receive reimbursement for meals and lodging for out-of-town meetings or seminars, Employee must have budgeted funds available for such. Employe may request per diem for meals which are commensurate with the meetin g location including tax and tips. Funds for travel shall be included in the City’s annual budget.

H. CITY COUNCIL COMMITMENTS.

1. The City Council sets policy for the governance and administration of the City, and it implements its policies through the City Attorney.

2. Except for the purpose of inquiry, the City Council and its members shall deal with all subordinate City employees, o fficers, contractors, and consulta nts solely through the Attachment D
10 City Attorney and neither the City Council nor any member thereof shall give orders to any subordinate of the City Attorney, either publicly or privately.

3. The City Council agrees none of its individual members will order the appointment or removal of any person from any office or employment under the supervision and control of the City Attorney.

4. The City Council agrees that any criticism of a City staff member shall be done privately through the City Attorney.

5. Neither the City Council nor any of its members shall interfere with the execution of the powers and duties of the City Attorney. The City Attorney shall take orders and instructions from the City Council only when it is sitting as a body in a lawfully held meeting.

I. STATE BAR RULES OF PROFESSIONAL CONDUTCT.

1. The Parties agree that the City Attorney is subject to and shall comply with the State Bar Rules of Professional Conduct.

2. The City Attorney is legally obligated to comply with the State Bar Rules of Professional Conduct.

3. The City Council agrees that neither the City Council nor any of its members will give the City Attorney any order, direction, or request that would require the City Attorney to violate the State Bar Rules of Professional Conduct.

J. INDEMNIFICATION.

1. City shall defend, save harmless, and indemnify Employee against any tort, professional liability claim s or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as City Attorney as required by state law . City has the authority without the Employee's consent to compromise and settle any such claim or suit or pay the amount of any settlement or judgment rendered thereon, subject to the laws of the State of California.

2. However, with respect to any payments by the City for the Employee's legal defense in any legal proceeding in which the Employee is convicted of: (1) any crime involving the abuse of his position while employed by the City; and/or (2) any crime against public Attachment D
11 justice (as set forth in Title 7 of the California Penal Code) while employed by the City, Employee shall reimburse the City for any such payments.

K. MODIFICATIONS.

Modifications may only be made to the Agreement if made in writing and signed by both parties.

L. SEVERABILITY.

THOMAS T. WATSON

___________________________
City Attorney

CITY OF SANTA MARIA,
A Municipal Corporation

Alice Patino
Mayor

ATTEST:

Donna G. Schwartz, CMC
Chief Deputy City Clerk
APPROVED AS TO FORM:

_______________________________
Risk Manager
_______________________________
City Attorney

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: June 17, 2025

SUBJECT: Adoption of a Resolution Approving Amendments to the Purchasing Guidelines Manual

Description:

The City Council will consider adopting a Resolution amending the Purchasing Guidelines Manual effective July 1, 2025.

RECOMMENDATION:

Adopt a Resolution a pproving amendments to the City’s Purchasing Guidelines Manual to take effect July 1, 2025.

BACKGROUND:

The City of Santa Maria’s Purchasing Guidelines Manual were adopted in accordance with Santa Maria Municipal Code (SMMC) Section 3 -4.12 in 2018. The Purchasing Guidelines Manual brings together common purchasing procedures and practices, formal purchasing procedures, and the California Uniform Public Construction Cost Accounting Act, all into a concise, easily understood document. This policy update request relates to elevating the purchasing approval limit levels to address the significant increase in the cost of goods and services in the last six years.

DISCUSSION:

The Purchasing Guidelines Manual contains sections that detail bidding procedures , consultant contract authority , open market purchase procedures , formal contract procedures, federally funded procurement procedures, and payment procedures.

The combination of the Purchasing Guidelines Manual and Chapter 3-4 of the SMMC are designed to provide City departments with guidance, procedures, and formal policies when purchasing goods and/or services. For the construction of "public projects," the city uses a combination of Chapter 8 -16 of the SMMC and the California Uniform Public Construction Cost Accounting Act.

2 Federally funded projects are subject to additional requirements. The Purchasing Guidelines Manual specifically outlines these requirements to ensure compliance with these standards.

The Purchasing Guidelines manual should be perceived as a dynamic document that will likely change as City personnel find more effective and efficient ways to accomplish tasks and achieve goals. Accordingly, periodic changes to these guidelines will be issued to ensure that the City attains maximum efficiency and effectiveness in management of day- to-day operations and remains in compliance with accepted standards.

The ch anges reflect elevating the purchasing approval limit levels to address the significant increase in the cost of goods and services in the last six years. This policy update changes the threshold requirements in accordance with the California Uniform Public Construction Cost Accounting Act, and the United States Office of Management and Budget (OMB) published 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Guidance for Federal Awards in 2024.

In summary, the changes to the threshold requirement are summarized in the table below:

In addition, the changes to the threshold requirement for federally funded procurements are updated in accordance with the United States OMB published 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Guidance for Federal Awards in 2024. They are updated in the attached Purchasing Guidelines Manual.

This City will be transitioning to a new Financial Enterprise Resource Planning (ERP) system for procurements on July 1, 2025. Updatin g this policy will align with the system transition in a timely manner.

3 Impact to the Community
This change will improve the efficiency for tasks related to purchasing and procurements which will save time for operations, projects, and programs for the Community.

ATTACHMENT(S)
A. Resolution
B. Redline Version of Purchasing Guidelines Manual
C. Clean Version of Purchasing Guidelines Manual

ATTACHMENT A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,
APPROVING AMENDMENTS TO THE CITY’S

PURCHASING GUIDELINES MANUAL
TO TAKE EFFECT JULY 1, 2025

WHEREAS, Santa Maria Municipal Code Section 3 -4.10 provides for a purchasing system for the City of Santa Maria to establish efficient procedures for securing supplies, services, specified construction and operations work, and equipment at the lowest possible cost commensurate with quality requirements, to exercise positive financial control over purchases; to clearly define authority and accountability for the purchasing function; to minimize the written documentation, administrative actions and expense of processing purchase transactions; and to assure the quality of purchases made on behalf of the City; and

WHEREAS, Santa Maria Municipal Code Section 3-4.11 designates the City Manager, or his or her designated representative, as the Purchasing Authority; and

WHEREAS, Santa Maria Municipal Code Section 3-4.12 authorizes the City Manager to prepare and implement a guideline of purchasing policies and procedures, inclusive of amendments of said procedures, as needed, to address operational issues as they arise; and

WHEREAS, the last update of the City of Santa Maria’s Purchasing Guidelines manual was adopted in accordance with Santa Maria Municipal Code Section 3 -4.12 in 2018, thereby bringing together common purchasing procedures and practices, formal purchasing procedures, and the California Uniform Public Construction Cost Accounting Act, all into a concise, easily understood document; and

WHEREAS, the current update considered by the City Council elevates the purchasing approval limit levels to address the significant increase in the cost of goods and services in the last six years; and

WHEREAS, it is recommended to amend the Purchasing Guidelines Manual.

NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:

SECTION 1. The City of Santa Maria’s Purchasing Guidelines Manual is adopted; and

SECTION 2 . All other provisions of the Santa Maria Municipal Code Section 3 -4 will remain in full force and effect; and

SECTION 3. The Chief Deputy City Clerk is hereby authorized to make m inor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 17th day of June 2025.

ATTEST:

Chief Deputy City Clerk

Mayor

APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
City Manager

TO
:

FROM:

CITY ADMINISTRATIVE MEMO
Department Directors
City Manager
CAM 2007-01
Revised June 29,
2018July 1, 2025

Page 1 ends

SUBJECT: PURCHASING GUIDELINES
PUR
POSE
The purpose of this City Administrative Memorandum (CAM) is to comply with Santa Maria Municipal Code ("SMMC") Section 3-4.12 and to provide direction to staff in purchasing goods and services. This policy is effective immediately.

OVERVIEW
The attached Purchasing Guidelines were prepared to bring together common purchasing procedures and practices, formal purchasing procedures and the California Uniform Public Construction Cost Accounting Act, all in to a concise, easily understood document. The Purchasing Guidelines contains sections that detail bidding procedures; consultant contract authority; open market purchase procedures; formal contract procedures; federally funded procurement procedures; and payment procedures.

The combination of the Purchasing Guidelines and Chapter 3-4 of the SMMC are designed to provide City departments with guidance, procedures, and formal policies when purchasing goods and/or services. For construction of "public projects," the City uses a combination of Chapter 8-16 of the SMMC and the California Uniform Public Construction Cost Accounting Act.

Federally funded projects are subject to additional requirements. The Purchasing Guidelines specifically outline these requirements to ensure compliance with these standards.

RESPONSIBILITY
As prescribed in Section 3-4.11 of the SMMC, the City Manager, or his or her designated representative, shall be the Purchasing Authority and the powers and duties of the Purchasing Authority are prescribed in Section 3-4.11 of the SMMC.

If you have quest ions regarding these guidelines or any issues related to the purchase of goods and/or services please contact the Department of Finance.

JASO�ELLDavid Rowlands
City Manager
ATTACHMENT A: Purchasing Guidelines
Attachment B

Page 1 of 127 ends

City of Santa Maria

Purchasing Guidelines
Prepared by the Department of Finance

Revised: July 1, 2018July 1. 2025
Attachment A

Page 2 of 127 ends

Attachment A

Page 3 of 127 ends

Purchasing Guidelines
Prepared by the Department of Finance
Attachment A

Page 4 of 127 ends

Santa Maria
*****City
�

®
Attachment A

Page 5 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Table of Contents

PREFACE:

Page
Introduction .............................................................................................................................. P- 1 Legal Basis................................................................................................................................P- 2

GUIDELINES:

Purchasing System Overview .............................................................................................. G- 1 Purchasing Responsibility for General Purchases ............................................................ G- 5 Purchasing Responsibility for Maintenance Repair & Service Contracts...................... G- 7 Development of Pre-qualification List ................................................................................ G- 9 Purchasing Responsibility for Professional Services ........................................................ G-10 Purchasing Procedures – Credit Card Purchases.............................................................. G-12 Public Works Purchasing...................................................................................................... G-13 Federally Funded Procurements ......................................................................................... G-15 Consultant Conflict of Interest Filing.................................................................................. G-24 Independent Contractor W-9 Requirements...................................................................... G-26

SPECIAL PROVISIONS:

Sole Source Purchase Approval ............................................................................................ S-

1 Emergency Purchases ............................................................................................................. S- 2 Cooperative Purchasing Program......................................................................................... S- 3 Authorization for Equipment Purchases ............................................................................. S- 4 Federal Transportation Administration Procurements ..................................................... S- 5 APPENDIX:

Chapter 3-4 of the City of Santa Maria Municipal Code .................................................. A-

1 Chapter 8-16 of the City of Santa Maria Municipal Code ................................................ A- 5 Resolution No. 2004-31 Authorizing Cooperative Purchasing Program ....................... A- 6 Quotation Evaluation Summary .......................................................................................... A- 7 Emergency Purchase Documentation ................................................................................. A- 8 Request for Sole Source Purchase Approval ...................................................................... A- 9 Capital Equipment/Fleet Replacement Form ................................................................... A-11 Procurement Card Program – Policy and Procedures...................................................... A-14 Consultant Conflict of Interest Questionnaire................................................................... A-24 Internal Revenue Services W-9 Form .................................................................................. A-26 A Guide to Querying a Purchase Order in Eden............................................................... A-27

i
Attachment A

Page 6 of 127 ends

Santa Maria
*****
All-America City

�
®

ii
Attachment A

Page 7 of 127 ends

City of Santa Maria

PREFACE
Attachment A

Page 8 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
P-1

Introduction

The Purchasing Guidelines manual was prepared to translate common practice purchasing procedures, formal procedures adopted in the Municipal Code and the California Uniform Public Construction Cost Accounting Act (Act), into a concise, easily understood practices and procedures manual.

The establishment of these guidelines provides a direction for City staff in the purchase of goods and services at competitive prices. The basic purchasing guideline is to obtain quality supplies, services, vehicles, and equipment required for the proper operation of the City of Santa Maria, in the most cost-effect manner possible. It is recognized that the lowest price is not the sole factor in evaluating the cost of purchases. Service, quality, timeliness, and price are all factors of a satisfactory purchase.

The information in this manual is primarily for non -public works projects. The requirements for these types of purchases do not contain or repeat State requirements, nor is it intended to conflict with or supersede State requirements. In the event of any conflict between the provision of these guidelines for non -public works projects, State law or City ordinance/resolution, the more stringent requirement should prevail.

Public works projects are covered by the Act. This Act encompasses projects that are generally large and involve construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. Because these projects are significantly different from general purchases, maintenance and repair services, and professional services, bidding and threshold limits are significantly different from non -public works projects. However, because the Act allows public projects of seventy forty-five thousand dollars ($45,000($75,000) or less to be performed by City employees, negotiated contract or by purchase order without specific guidelines, departments are strongly encouraged to follow City non-public works project guidelines for these types of purchases. Page G-1 of the Purchasing Guidelines outlines the differences.

F
ederally funded projects are subject to additional requirements in accordance with 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Guidance for Federal Awards. Pages G-15 through G-23 ensure compliance with these standards.

Federal Transportation Administration (FTA) Procurement requirements can be found on pages S-5 through S-38.

These Guidelines should be pe
rceived as a dynamic document that will likely change as City personnel find more effective and efficient ways to accomplish tasks and achieve goals. Changes to these purchasing guidelines may be issued by the City Manager to address operational needs.

Attachment A

Page 9 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
P-2

Introduction, continued

These Purchasing Guidelines are divided into four sections, the Preface, the Guidelines, the Special Provisions, and the Appendix. Each section is uniquely numbered to facilitate additions, modifications, and changes to the Purchasing Guidelines. These purchasing guidelines are the first step in the development of a comprehensive purchasing policy.

Legal Basis
Chapter 3-4: The City of Santa Maria Municipal Code defines the Purchasing System Guidelines under Chapter 3. As part of the City Council adoption of the Purchasing Guidelines, revisions to Chapter 3 are also presented for City Council consideration. The following is a general description of the revised section of the Municipal Code.

Section 3-4.10 This section is a statement of the purpose of Chapter 3 provisions.

Section 3-4.11. The purchasing authority is designated and the powers and duties listed.

Section 3-4.12. A purchasing guideline manual is required to address operational issues.

Section 3-4.13. Bidding procedures for the purchase of supplies, services, equipment, operation and construction projects where cost does not exceed informal bidding limits are detailed.

Section 3-4.14. The differences between purchases of supplies and services and the contracting for consultant contracts are listed.

Section 3-4.15. The criteria for determining the lowest responsible bid or quotation are listed.

Section 3-4.20. The definition of the authority for purchasing items with a value falling within the “open market” range specified in the Purchasing Guidelines is explained.

Section 3-4.21. The procedures for obtaining either verbal or written quotations from vendors are stated.

Section 3-4.22. The schedule for retaining vendor quotations is outlined.

Section 3-4.23. The number of quotations for an open market purchases is stated.

Section 3-4.24. The reasons for rejecting vendor quotations are listed.

Section 3-4.25. The process for the award of a purchase order to the lowest reasonable quotation is explained.

Section 3-4.30. The formal contract purchase requirements are stated.

Section 3-4.31. The process for a notice inviting bids is listed.

Section 3-4.32. The circumstances for requiring bidder security are stated.

Section 3-4.33. Bid opening procedures are listed.

Section 3-4.34. Reasons for rejecting a bid are stated.

Section 3-4.35. Procedures when no bids are received.

Section 3-4.36. Procedures for award of the contract are listed.

Attachment A

Page 10 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Legal Basis, continued
P-3

Section 3-4.37. Circumstances when a bond may be required of a successful bidder.

Section 3-4.40. The requirements for payment for goods and services.

Section 3-4.41. Documentation required before the issuance of warrants for services and supplies.

Section 3-4.42. The payment date and frequency for issuing warrants is listed.

Section 3-4.43. The signature appearing on City warrants is defined.

Chapter 8 -16. This chapter of the City of Santa Maria Municipal Code covers public projects under the Uniform Public Construction Cost Accounting procedures as set forth in Sections 22000 et. seq. of the Public Contract Code:

Section 8-16.01. Public project may be let in accordance with Sections 22000 et seq. of the Public Contract Code.

Section 8-16.02. Defines the circumstances under which public projects may be let to contract using informal bidding procedures.

A list of contractors is to be developed and maintained in accordance with Section 22034 of the Public Contract Code.

For public projects covered by the Uniform Public Construction Accounting Act, notices inviting informal bids are to be mailed to all contractors for the category of work to be bid and to all construction trade journals.

The City's Purchasing Authority and the Director of Public Works are authorized to award informal contracts pursuant to this section.

Section 8-16.03. All public works projects shall consider eight (8) hours a day’s work, and contractors and subcontractors shall pay employees the prevailing salary or wage unless other provisions are authorized by City Council.

The City may, consistent with law and as a municipal affair, award contracts for budgeted maintenance of public works to the lowest responsible bidder without following requirements of State law applicable to general law cities and otherwise applicable to chartered cities.

Attachment A

Page 11 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Legal Basis, continued
P-4

Resolution No. 2004-31. On March 2004, the City Council approved Resolution No. 2004- 31 (See page A-6), authorizing the establishment of a cooperative purchasing program for the purpose of procuring supplies, services and/or equipment.

The City Council resolved as follows:

That whenever the Purchasing Agent finds that the public interest and convenience would be best served by utilizing another entity’s contract for competitive pricing of goods and/or services, the Purchasing Agent may buy directly from a vendor if the contract was awarded within the last twelve months and the contract was for identical or nearly identical goods and/or services.

Attachment A

Page 12 of 127 ends

City of Santa Maria

GUIDELINES
Attachment A

Page 13 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-1

Purchasing System Overview

CITY PURCHASES *

NON-PUBLIC
WORKS

PROJECTS

PUBLIC WORKS

PROJECTS

CITY OF SANTA MARIA

PURCHASING

GUIDELINES

FOLLOW CALIFORNIA

UNIFORM PUBLIC

CONSTRUCTION

COST ACCOUNTING
ACT

GENERAL PURCHASES

NO BIDS REQUIRED -

PROJECTS LESS THAN
$45,000$75,000 **

MAINTENANCE

REPAIR & SERVICES

CONTRACT

INFORMAL BIDS -
$45,001 $75,000 TO
$175,000$220,000 *

PROFESSIONAL

SERVICES
CONTRACTS Amounts of
$1,000 TO $10,000$5,000 TO $15,000
FORMAL BIDS –
Greater than $175,000$220,000

Amounts of
$10,001 TO $74,999$15,000 TO $100,000
Open Market

Amounts of
$75,000$100,000 or
More Formal Process

* Federal Grants see page G-15
**Current UPCCA Amount
Attachment A

Page 14 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Purchasing System Overview, continued
G-2

Greater than
$1,000$5,000, Less
than or equal to
$10,000$15,000
⇒ Prudent judgment required; strongly
suggest comparative pricing whenever
practical.
⇒ Award by department via purchase order
for items greater than $1,000$5,000.
⇒ Department solicits at least 3 written quotes
by email, fax, etc. Document bid and
selection criteria.
⇒ Award by purchase order or contract signed
by department head up to $50,000, and by
City Manager up to $100,000.

Greater than
$10,000$15,000, Less
than
$75,000
(open market$100,000)

GENERAL
PURCHASES *
$75,000$100,000

OR MORE
(formal bidding)
⇒ Formal bidding required; encumber via contract or
purchase order.
⇒ For items not included in approved budget-
Request City Manager approval to seek bids;
and
City Manager awards contracts $100,000 -
$175,000 and City Council awards contract
$175,00 and above after bids received and
evaluated.

MAINTENANCE

REPAIR &

SERVICES
CONTRACTS *
$75,000$100,000

OR MORE
(formal bidding)
⇒ Formal bidding required; encumber via
contract or purchase order.
⇒ For items not included in approved budget-
Request City Manager approval to seek
bids; and
City Manager awards contracts
$100,000 - $175,000 and City Council
d t t $175 00 d b
Greater than
$10,000$15,000, Less
than
$75,000$100,000
(open market)
⇒ Department solicits 3 quotes by email, fax,
etc. document bid and selections criteria.

Prequalification process may be used.
⇒ Department conducts interviews. Selection
requires Department Head approval.

Greater than
$1,000$5,000, Less
than or equal to
$10,000$15,000
⇒ Prudent judgment required; strongly suggest
competitive bidding when practical.
⇒ Bid award by department via purchase order
for items greater than $1,000$5,000.

TYPE CATEGORY FEATURES
Includes supplies,
equipment, operating
and construction
projects other than
Public Works Projects.

These contracts are
typically for
maintenance of
landscaping, office
machines, laboratory
services, building, &
street sweeping.

Attachment A

Page 15 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Purchasing System Overview, continued
G-3

* Federal Grants see page G-15

TYPE CATEGORY FEATURES

GREATER THAN
$1,000$5,000, Less
than or equal to
$10,000$15,000
⇒ Prudent judgment required; strongly suggest
competitive pricing when practical.
⇒ Award by department via purchase
order for contracts greater than
$1,000$5,000.
$75,000$100,000

OR MORE
(formal process)
⇒ Formal RFP process required; encumber via
contract or purchase order.
⇒ For items not documented in the budget as a
part of the 43-00 account:

Request City Manager approval to seek
RFP.

City Manager awards contracts $100,000
- $175,000 and City Council awards
contract $175 00 and above after bids
Greater than
$10,000$15,000, Less
than
$75,000$100,000
( k t)
⇒ Department solicits at least 3 proposals by
email, fax, etc. or in emergency, use vendors
from pre-authorized list. Document
proposal amounts and selection process.
⇒ Department conducts interviews.

These are general
guidelines. The
evaluation and
selection of consultant
services may vary on a
case-by-case basis.

PROFESSIONAL
SERVICES *
Attachment A

Page 16 of 127 ends

Santa Maria
*****
All-America City

�
®

G-4
Attachment A

Page 17 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-5

Purchasing Responsibility - General Purchases

Summary:

General purchases include supplies, equipment, operating and construction projects other than “Public Works Projects.” Please see page G -15 through G -26 for federally funded procurement requirements.

Purchase of $ 1,0005,000 or less: Requisitions/purchase orders are not required for purchases of $ 1,0005,000 or less. When a check for $ 1,0005,000 or less will pay the invoice for the item “in full,” the department may use the invoice to generate payment.

The face of the invoice should prominently display, the stamp “Approved for Payment,” the account number, the proper authorization, and the date before direct submittal to the Finance Department. Multiple invoices may NOT be generated for one item, simply to avoid the issuance of a requisition/purchase order.

Purchases of more than $ 1,0005,000
but less than or equal to $ 10,00015,000: Prudent
judgment is required for purchases of greater than $ 1,0005,000 but less than or equal to $10,00015,000. It is strongly suggested that comparative pricing, whenever practical, be used. Typically, bids may be obtained by telephone, fax, or email quotations.

Each vendor must be provided with the exact i nformation provided to other vendors.

To ensure the exact information is provided, a “Quotation Evaluation Summary” form is provided in the Appendix section of this manual (See page A -7). The use of this form ensures that the department, has on file, the following information:
• Date of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s response to request for quote; and
• Justification for selection of vendor.

The department director, or his/her designee, has the authority to award the bid.

Open Market Purchases:

Purchases of more than $ 10,00015,000 but less than $ 75,000100,000: Departments are required to solicit at least three written competitive quotations, by email, fax, or other written format, for purchases greater than $ 10,00015,000 but less than $ 75,000100,000.

Typically, these request for quotes are mailed to the vendors or emailed/faxed if delivery time is a major factor. The following information should be documented and on file with the department:
• Da
te of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s written response to request for quote; and
• Justification for selection of vendor.

Attachment A

Page 18 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-6

The award of bid is completed by either issuing a purchase order or a contract is signed by the department director

The award of bid and entry into contract is authorized by the department director for more than $15,000 but less than $50,000.

The award of bid and entry into contract is authorized by the City Manager for more than $50,000 but less than $100,000.

Formatted: Not Expanded by / Condensed by
Formatted: Indent: Left: 1.08", No bullets or
numbering
Formatted: Font: 12 pt
Attachment A

Page 19 of 127 ends

G-7
City of Santa Maria

PURCHASING GUIDELINES

Purchasing Responsibility - General Purchases, continued

Formal Bid Purchases:

Purchases of more than $ 75,000100,000 or more: Purchases for general services should have at least three competitive quotations whenever practical. Depending on the nature of the request, a request for proposal (RFP) process may be issued, evaluated, and funds encumbered by either a contract or purchase order. This process is deemed to be the formal bidding process.

For items not ide
ntified or approved in the budget departments are to gain approval to seek bids from the City Manager prior to soliciting bids.

For purchases of more than $100,000 but less than $175,000, the City Manager is to make the award to the successful bidder .

For purchases of more than $175,000, Thereafter , the City Council is to make the award to the successful bidder.

Appeal of award of bid: A n unsuccessful respondent to a City request for quotation may appeal the award of bid. The bidder is required to file a formal protest of the award of bid with the Finance Department and the issuing department. The department, in conjunction with Finance Department’s staff, will appoint a three member board to hear the appeal, review the bid documents, and issue an opinion on the award of bid.

Formatted: Indent: Left: 0"
Attachment A

Page 20 of 127 ends

G-8
City of Santa Maria

PURCHASING GUIDELINES

Purchasing Responsibility - Maintenance Repair and Service Contracts

Summary:

The contracts for maintenance repairs and service are typically for maintenance of landscaping, office machines, laboratory services, building maintenance, and street sweeping. Please see page G -15 through G -23 for federally funded procurement requirements.

Contracts of $ 1,0005,000 or less: Requisitions/purchase orders are not required for purchases of $ 1,0005,000 or less. When a check for $ 1,0005,000 or less, will pay the invoice “in full” the department may use the invoice to generate payment. The face of the invoice should prominently display, the stamp “Approved for Payment,” the account number, the proper authorization, and the date before direct submittal to the Finance Department. Multiple invoices may NOT be generated for one service, simply to avoid the issuance of a requisition/purchase order.

Contracts o f more than $ 1,0005,000 but less than or equal to $ 10,00015,000: Prudent judgment is required for contracts of greater than $ 1,0005,000 but less than or equal to $10,00015,000. Unless a contract is made to a party through the prequalification process, it is strongly suggested that comparative pricing, whenever practical, be used.

Typically, bids may be obtained by telephone, fax, or email quotations. In lieu of comparative pricing for each purchase, departments may develop a pre -qualification list of qualified vendors to be used, on a rotating basis, during the two year budget process. Departments shall work in conjunction with the Finance Department in the establishment of pre-qualification lists.

Each vendor must be provided with the exact s ame information provided to other vendors. To ensure the same information is provided, a “Quotation Evaluation Summary” form is provided in the appendix section of this document (See page A -7).

The use of this form ensures that the department has on file the following information:
• Date of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s response to request for quote; and
• Justification for selection of vendor.

The department director has the authority to award the bid.

Attachment A

Page 21 of 127 ends

G-9
City of Santa Maria

PURCHASING GUIDELINES

Open Market Contracts:

Purchases of more than $10,00015,000 but less than $75,000100,000: Unless a contract is made to a party through the prequalification process, Departments are required to solicit at least three written competitive quotations, by email, fax, or other written format, for contracts greater than $10,00015,000 but less than $75,000100,000.

Typically, these request for quotes are mailed to the vendors or emailed/faxed if delivery time is a major factor. The following information should be documented and on file with the department:
• Date of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s written response to request for quote; and
• Justification for selection of vendor.

The award of bid and entry into contract is authorized by the department director for more than $15,000 but less than $50,000.

The award of bid and entry into contract is authorized by the City Manager for more than $50,000 but less than $100,000.

Attachment A

Page 22 of 127 ends

G-10
City of Santa Maria

PURCHASING GUIDELINES

Purchasing Responsibility – Maintenance Repair and Service Contracts

Formal Bid Purchases:

Purchases of $75,000 100,000 or more: Contracts for maintenance repair and general services of $75,000100,000 or more should have at least three competitive quotations. Depending on the nature of the request, a request for proposal (RFP) process may be issued, evaluated, and funds encumbered by either a contract or purchase order. This process is deemed to be the formal bidding process.

For items not ide ntified or approved in the budget, departments are to gain approval to seek bids from the City Manager prior to soliciting bids. Thereafter, the City Council is to make the award to the successful bidder.

For purchases of more than $100,000 but less than $175,000, the City Manager is authorized to make the award to the successful bidder.

For purchases of more than $175,000, the City Council is authori zed to make the award to the successful bidder.

Appeal of award of bid: A n unsuccessful respondent to a City request for proposal may appeal the award of bid. The bidder is required to file a formal protest of the award of bid with the Finance Department and the issuing department. The department, in conjunction with Finance Department’s staff, will appoint a three member board to hear the appeal, review the bid documents, and issue an opinion on the award of bid.

Attachment A

Page 23 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-11

Purchasing Responsibility – Development of Pre-qualification List

Development of Pre -qualification List: In lieu of obtaining three competitive quotations each time a repetitive service contract of less than $75,000 is needed, each department may develop a pre -qualification list during the first months of the two- year budget cycle. Each department will be responsible for developing a list of the repetitive services used, the standards and specifications required, and potential vendors. The Finance Department will assist the department in the issuance of the Request for Proposals, in establishing the pre -qualification list, and in contracting with the vendors.

The pre -qualification list will be valid for the two years of the budget cycle. The following steps must be followed to establish the pre-qualification list:
• Issuance of a Request for Proposals;
• Typical vendors on a pre -qualification list include, but are not limited to, electricians, plumbers, surveyors, material testers, and appraisers; and • The vendors are required to supply a price list of the various services offered; the vendors may supply different price lists for each of the budget years; may request an inflation factor in year two; or can provide identical lists for the two years;
• The vendors are required to enter into a contract with the City; • The list should contain at least three active vendors; and • Work performed for the City will be rotated among the pre -qualified vendors, based on the vendors’ availability.

The award of bid is completed by executing a contract with the vendor.

Attachment A

Page 24 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-12

Purchasing Responsibility for Professional Services Contracts

Summary:

Professional services are provided by independent contractors and include services such as legal, planning, engineering, design, studies of governmental operations, management consultant, etc. These services may include unique services or other specialized abilities. Contracts for professional services must be based on demonstrated competence, professional qualifications for the services required, availability, and fair and reasonable cost. Cost cannot be the sole basis for awarding a professional contract.

All professional consulting services must be conducted by way of a contract for professional services. The following are general guidelines as contracts for consultant services may vary on a case -by-case basis. Please see page G -15 through G -23 for federally funded procurement requirements.

Contracts of more than $ 1,0005,000 but less than or equal to $ 10,00015,000: Prudent judgment is required for contracts of greater than $ 1,0005,000 but less than or equal to $10,00015,000. It is strongly suggested that comparative pricing, whenever practical, be used. Typically, quotes may be obtained by telephone, fax, or email quotations.

Each vendor must be provided with the exact i nformation provided to other vendors.

To ensure the exact information is provided, a “Quotation Evaluation Summary” form is provided in the appendix section of this document. The use of this form ensures that the department, has on file, the following information:
• Date of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s response to request for quote; and
• Justification for selection of vendor.

The department director, or his/her designee, has the authority to award the bid.

Open Market Contracts:

Contracts of more than $ 10,00015,000 but less than $ 75,000100,000: Departments are required to solicit at least three written competitive quotations, by email, fax, or other written format, for purchases greater than $ 10,00015,000 but less than $ 75,000100,000.

Typically, these request for quotes are mailed to the vendors or emailed/faxed if delivery time is a major factor. The following information should be documented and on file with the department:

Attachment A

Page 25 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-13

Purchasing Responsibility for Professional Services Contracts, continued

Open Market Contracts, continued:

Contracts of more than $10,00015,000 but less than $75,000100,000, continued • Date of request for quote;
• Exact request for quote;
• Vendor information (contact information);
• Vendor’s written response to request for quote; and
• Justification for selection of vendor.

The award of contract is completed by executing a contract with the vendor.

The award of bid and entry into contract is authorized by the department director for more than $15,000 but less than $50,000.

The award of bid and entry into contract is authorized by the City Manager for more than $50,000 but less than $100,000.

Formal Process Contract:

Purchases of $ 75,000100,000 or more: Contracts for professional services of $75,000 or more should have at least three competitive quotations. Depending on the nature of the request, a request for proposal process may be issued, evaluated, and funds encumbered by either a contract or purchase order. This process is deemed to be the formal bidding process.

For items not identified or approved in the budget, departments are to gain approval to s
eek bids from the City Manager prior to soliciting bids. Thereafter, the City Council is to make the award to the successful bidder.

For purchases of more than $100,000 but less than $175,000, the City Manager is authorized to make the award to the successful bidder.

For purchases of more than $175,000, the City Council is authorized to make the award to the successful bidder.

Appeal of award of bid: An unsuccessful respondent to a City request for proposal may appeal the award of bid. The bidder is required to file a formal protest of the award of bid with the Finance Department and the issuing department. The department, in conjunction with Finance Department’s staff, will appoint a three member board to hear the appeal, review the bid documents, and issue an opinion on the award of bid.

Formatted: Font: 12 pt
Attachment A

Page 26 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-14

Purchasing Procedures – Credit Card Purchases

Summary:

Credits card purchases are authorized for small dollar items that can be obtained directly from the vendor either in person or via telephone, fax, or Internet. Individual purchase transactions are limited to $500 with monthly credit limits varying based on the needs of each department. A copy of the complete Procurement Card Program Policy and Procedures, issued in 1996, can be found in the Appendix Section (See A -13) of the Purchasing Guidelines. This section of the Purchasing Guidelines does not repeat the Policy, but rather summarizes the provisions. Please see page G -15 through G -23 for federally funded procurement requirements.

Procedure:

Procurement Card: The Finance Department issues procurements cards, in the form of Visa cards, to designated employees. Employees that are issued the City Visa card are provided with spending and monthly credit limits depending on departmental need and authority. The procurement card is issued jointly in the City’s and employee’s name; is to be used by only the employee whose name appears on the card; and the delegation of authority is not permissible in making credit card purchases. The City Visa card holder is responsible for the preparation of a monthly reconciliation of the City Visa statement, preparation of a Transaction Log, and submittal of all documents to Accounts Payable for payment.

Benefits of Procurement Card:

The use of a City Visa card provides an efficient
cost-effective alternative for the purchase and payment of small dollar expense items.

The City Visa card streamlines the traditional procurement process by reducing the number of requisitions, purchase orders, receivers, invoices, and checks needed for handling miscellaneous low dollar transactions.

Out of State Purchases: The City is obligated to report and pay tax to the State of California for purchases made from out -of-State vendors that do not charge sales tax. It is very difficult to track those purchases and to compile the amount due the State of California, when using the City Visa cards.

Use of Private Credit Cards: Employees are to refrain from using private credit cards for City business.

Attachment A

Page 27 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-15

Public Works Purchasing

Summary:

The award of contracts for public projects of the City shall be governed by Uniform Public Construction Cost Account Act (hereinafter “Act”), except as otherwise provided for in this section. The threshold amounts depicted below are predicated on March 2007 dollar amounts adopted by the State Controller pursuant to the Act. Should the below dollar amounts change in the Act, these guidelines shall be adjusted to reflect the then-current Act dollar amount thresholds. Please see page G -15 through G -23 for federally funded procurement requirements.

Public projects of $45,00075,000 or less: Public projects below the informal bid limit specified by the Act (currently $ 45,00075,000), with appropriations approved by the City Council, may be performed by the employees of the City by force account, by negotiated contract, or by purchase order approved by the department director.

Public p
rojects of $175,000220,000 or less - informal bidding procedures: Contracts for public projects above the minimum informal bid amount ($ 45,00075,000 currently specified by the Act) and below the maximum formal bid amount ($ 175,000220,000 currently specified by the Act) may be awarded through the Act’s informal bidding procedures as follows:
• A list of contractors shall be developed and maintained in accordance with provisions of Section 22034 of the Act.
• Where a public project is to be performed that is subject to the provision of Act, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, in accordance with Section 22034 of the Act, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22036 of the Act. Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids; provided , however:
(1) If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission.
(2) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.

Attachment A

Page 28 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-16

Public Works Purchasing, continued

Public projects of $175,000220,000 or less - informal bidding procedures, continued:
• The City Purchasing Authority and the Director of Public Works/City Engineer are each authorized to award informal contracts pursuant to this section.
• The City’s Municipal Code (shown on page A -5) links the value of informal bid procedures to limits listed in Section 22032 of the Public Contract Code.

Therefore, when the California Uniform Construction Cost Accounting Commission modifies the dollar threshold, the City’s level will also be modified.

Public projects of more than $ 175,000220,000 - formal bidding procedures: Contracts for public projects above the minimum formal bid limit (currently $ 175,000220,000), shall award a contract pursuant to formal bidding procedures as set forth in the then - current Act.

Wages of public works projects: I n every contract for the performance of labor on public works projects, eight (8) hours shall constitute a day’s work, and the contractor and all subcontractors shall pay employees for the work, a salary or wage at least equal to the prevailing salary or wage for the same quality of service rendered to private persons, under similar employment in the City.

The City may, consistent with law and as a municipal affair, award contracts for b
udgeted maintenance of public works to the lowest responsible bidder following requirements of state law applicable to chartered cities.

Attachment A

Page 29 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
G-17

Federally Funded Procurements

Summary:

The United States Office of Management and Budget (OMB) published an updated 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Guidance for Federal Awards in 20 2413. The following guidelines ensure compliance with these standards.

Special and/or additional procurement procedures may be required by the granting a
gency. Any grant monies received by the City will need to follow the regulations as set forth below or by the funding agency, whichever is stricter.

General Procurement Standards:

Conflict of interest: No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts.

Procedures must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach.

The City is encouraged to enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services.

The City is encouraged to use Federal excess and surplus property in lieu of purchasing new equipment and property whenever such use is feasible and reduces project costs.

The City is encouraged to use value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.

Contracts shall only be awarded to responsible contractors possessing the ability to pe
rform successfully under the terms and conditions of a proposed procurement.

Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.

Attachment A

Page 30 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-18

Competition:

All procurement transactions must be conducted in a manner providing full and open competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:

1. Placing unreasonable requirements on firms in order for them to qualify to do business;

2. Requiring unnecessary experience and excessive bonding;

3. Noncompetitive contracts to consultants that are on retainer contracts;

4. Organizational conflicts of interest;

5. Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and

6. Any arbitrary action in the procurement process.

Procurements shall be conducted in a manner that prohibits the use of statutorily or administratively imposed state, local, or tribal geographical preferences in the evaluation of bids or proposals, except in those cases where applicable Federal statutes expressly mandate or encourage geographic preference. Nothing in this section preempts state licensing laws. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

Methods of Procurement:

In addition to the City’s purchasing policy approval limits, one of the following methods should be used:

Micro-purchases: Purchases within the micro -purchase threshold set by the Federal Acquisition Regulation may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. The micro -purchase threshold is currently set up to $50,000at $3,500 for services and $10,000 for products but is periodically adjusted for inflation.

S
mall purchases: Small purchase procedures are those relatively simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the lower of the City’s current bid threshold ($ 75,000100,000) and the Simplified Acquisition Threshold ( up to $250,000). Informal purchasing procedures are acceptable, but price and rate quotes must be obtained from an adequate number of sources.

Attachment A

Page 31 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-19

Sealed bid or competitive proposals: Purchases that are greater than the lower of the City’s current bid threshold ($75,000100,000) and the Simplified Acquisition Threshold ( up to $250,000) may be obtained in one of the following ways:

Sealed Bids: Bids are publicly solicited and a firm fixed price contract is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is the lowest in price. This method is the preferred procurement method for construction contracts, if the following conditions apply:

1. A complete, adequate, and realistic specification or purchase description is available;

2. Two or more responsible bidders are willing and able to complete effectively for the business; and,

3. The procurement lends itself to a firm fixed price contract and the selection of the successful bidder can be made principally on the basis of price.

If this method is used, the following requirements apply:

1. Bids must be solicited from an adequate number of known suppliers, providing them sufficient response time prior to the date set for opening the bids, for local, and tribal governments, the invitation for bids must be publicly advertised;

2. The invitation for bids, which will include any specifications and pertinent attachments, must define the items or services in order for the bidder to properly respond;

3. All bids will be opened at the time and place prescribed in the invitation for bids, and for local and tribal governments, the bids must be opened publicly;

4. A firm fixed price contract award will be made in writing to the lowest responsive and responsible bidder. Where specified in bidding documents, factors such as discounts, transportation cost, and life cycle costs must be considered in determining which bid is lowest. Payment discounts will only be used to determine the low bid when prior experience indicates that such discounts are usually taken advantage of; and

5. Any or all bids may be rejected if there is a sound documented reason.

Competitive Proposals: This method requires formal solicitation, fixed- p rice or cost -
reimbursement contracts, and is used when sealed bids are not appropriate. The contract shall be awarded to the responsible firm whose proposal is most advantageous to the program, with price being one of the various factors. If this method is used, the following requirements apply:

Attachment A

Page 32 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-20

Competitive Proposals, continued:

1. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical;

2. Requests for proposals shall include language informing potential respondents of the federal grantor’s documentation requirements;

3. Proposals must be solicited from an adequate number of qualified sources;

4. The method for conducting technical evaluations of the proposals received and for selecting recipients may include, but not limited to: oral interviews, references, past performance, availability to perform work, and certifications as determined by project scope;

5. Any response that takes exception to any mandatory items in this proposal process may be rejected and not considered;

6. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered; and

7. Competitive proposal procedures may be used for qualifications -based procurement of architectural/engineering (A/E) professional services whereby competitors' qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. This method, where price is not used as a selection factor, can only be used in procurement of A/E professional services. It cannot be used to purchase other types of services though A/E firms are a potential source to perform the proposed effort.

Noncompetitive proposals: Also known as sole -source procurement, this may be appropriate only when one or more of the following criteria are met:

1. The item is only available from a single source;

2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;

3. The Federal awarding agency or pass -through entity expressly authorizes noncompetitive proposals in response to a written request from the non -Federal entity; or

4. After solicitation of a number of sources, competition is deemed inadequate.

Contract Cost and Price:

A cost or price analysis shall be performed in connection with every procurement action in excess of the Simplified Acquisition Threshold ( up to $250,000) including contract modifications. The method and degree of analysis is dependent on the facts surrounding the particular procurement situation, but as a starting point, independent estimates shall be made prior to receiving bids or proposals.

Attachment A

Page 33 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-21

Profit shall be negotiated as a separate element of the price for each contract in which there is no price competition and in all cases where cost analysis is performed. To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the contractor, the contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

Costs or prices based on estimated costs for contracts under the Federal award are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under Subpart E—Cost Principles of Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

The cost plus a percentage of cost and percentage of construction cost methods of contracting shall not be used.

A time and materials type contract shall be used only after a determination that no other contract is suitable and if the contract includes a ceiling price that the contractor exceeds at its own risk. Time and materials type contract means a contract whose cost to a non-Federal entity is the sum of:

1. The actual cost of materials; and

2. Direct labor hours charged at fixed hourly rates that reflect wages, general and administrative expenses, and profit.

Records Retention:

Sufficient records shall be maintained to detail the history of procurement. The records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. They shall be retained as provided in the City of Santa Maria Document Retention Schedule.

Federal Awarding Agency or Pass-Through Entity Review:

The City shall make available, upon request of the Federal awarding agency or pass - through entity, technical specifications on proposed procurements where the Federal awarding agency or pass -through entity believes such review is needed to ensure that the item or service specified is the one being proposed for acquisition. This review generally will take place prior to the time the specification is incorporated into a solicitation document. However, if the City desires to have the review accomplished after a solicitation has been developed, the Federal awarding agency or pass -through entity may still review the specifications, with such review usually limited to the technical aspects of the proposed purchase.

Attachment A

Page 34 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-22

The City will make available upon request, for the Federal awarding agency or pass - through entity pre -procurement review, procurement documents, such as requests for proposals or invitations for bids, or independent cost estimates, when:

1. The City’s procurement procedures or operation fails to comply with the procurement standards in this part;

2. The procurement is expected to exceed the Simplified Acquisition Threshold ( up to $250,000) and is to be awarded without competition or only one bid or offer is received in response to a solicitation;

3. The procurement, which is expected to exceed the Simplified Acquisition Threshold (up to $250,000), specifies a “brand name” product;

4. The proposed contract is more than the Simplified Acquisition Threshold ( up to $250,000 and is to be awarded to other than the apparent low bidder under a sealed bid procurement; or

5. A proposed contract modification changes the scope of a contract or increases the contract amount by more than the Simplified Acquisition Threshold ( up to $250,000).

The City is exempt from the pre -procurement review in the above paragraph of this section if the Federal awarding agency or pass -through entity determines that its procurement systems comply with the standards of this part.

The City may request that its procurement system be reviewed by the Federal awarding agency or pass-through entity to determine whether its system meets these standards in order for its system to be certified. Generally, these reviews must occur where there is continuous high -dollar funding, and third party contracts are awarded on a regular basis.

The City may self -certify its procurement system. Such self -certification must not limit the Federal awarding agency's right to survey the system. Under a self -certification procedure, the Federal awarding agency may rely on written assurances from the non - Federal entity that it is complying with these standards. The non -Federal entity must cite specific policies, procedures, regulations, or standards as being in compliance with these requirements and have its system available for review.

Bonding Requirements:

For construction or facility improvement contracts or subcontracts exceeding the Simplified Acquisition Threshold ( up to $250,000), the Federal awarding agency or pass- through entity may accept the bonding policy and requirements of the City provided that the Federal awarding agency or pass -through entity has made a determination that the Federal interest is adequately protected. If such a determination has not been made, the minimum requirements must be as follows:

Attachment A

Page 35 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-23

1. A bid guarantee from each bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified.

2. A performance bond on the part of the contractor for 100 percent of the contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of all the contractor's obligations under such contract.

3. A payment bond on the part of the contractor for 100 percent of the contract price. A “payment bond” is one executed in connection with a contract to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.

Contract Provisions:

All federal funding source contracts must contain the following compliance provisions described in 2 CFR Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards, as applicable.

1. Contracts for more than the Simplified Acquisition Threshold ( up to $250,000) must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate.

2. All contracts in excess of $10,000 must address termination for cause and for convenience by the City including the manner by which it will be effected and the basis for settlement.

3. Equal Employment Opportunity. All contracts, when funded in whole or partly by monies derived from the federal government (either directly or indirectly), shall contain a provision requiring compliance with Equal Employment Opportunity.

4. Davis Bacon Act. Applies to construction contracts in excess of $2,000.

Contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The City must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The City must report all suspected or reported violations to the Federal awarding agency.

Attachment A

Page 36 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-24

5. Copeland “Anti-Kickback” Act. Applies to construction contracts in excess of $2,000. Each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The City must report all suspected or reported violations to the Federal awarding agency.

6. Contract Work Hours and Safety Standards Act. Applies to all contracts awarded by the non -Federal entity in excess of $100,000 that involve the employment of mechanics or laborers. Each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours.

Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. No laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous.

7. Rights to Inventions Made Under a Contract or Agreement. If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.

8. Clean Air Act and the Federal Water Pollution Control Act. Applies to contracts and subgrants of amounts in excess of $150,000. Contractor shall be required to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act and the Federal Water Pollution Control Act. Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

9. Debarment and Suspension. Contracts awarded with federal grant monies may not be awarded to contractors that have been debarred or suspended from receiving federal monies parties listed on the governmentwide exclusions in the System for Award Management (SAM).

10. Byrd Anti- Lobbying Amendment. Contractors that apply or bid for an award exceeding $100,000 must certify that it will not and has not used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award.

Attachment A

Page 37 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-25

Contracting with Small and Minority Businesses, Women's Business Enterprises, and Labor Surplus Area Firms:

All necessary affirmative steps will be taken to assure that minority business, women’s business enterprises, and labor surplus area firms are used when possible. Affirmative steps include:

1. Placing qualified small and minority businesses and women's business enterprises on solicitation lists;

2. Assuring that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;

3. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;

4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;

5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and

6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

Attachment A

Page 38 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Consultant Conflict of Interest Filing
G-26

Summary:

The Political Reform Act (Act) prohibits public officials (elected and employed) from making decisions or attempting to use the official position to influence a governmental decision in which there is a financial interest. The City of Santa Maria Conflict of Interest Code lists specific City positions that are required to file statements of economic interest with the City Clerk. The Act includes consultants in the term “public official” as does the City’s Code. Therefore, when entering into a consultant contract, departments must determine if the consultant will benefit economically beyond the contract price. If an economic benefit beyond the contract price exists, the consultant is required to file a statement of economic interest.

Procedure:

Determination of Consultant Status: A business or firm providing services to the City are not considered the “consultant.” The individual(s) working for the firm are the consultants. It is these individuals that may be required to file statements of economic interest based on their personal financial interest.

The Act differentiates between consultants providing information and those helping to make decisions. Only those individuals who either “participate in making” governmental decisions or are performing substantially all the same tasks that normally be performed by staff members, are covered by the Act. An individual, who makes governmental decisions or serves in a staff capacity with the City, is considered a public official that must file a statement of economic interest.

Often it is difficult to determine if the consultant services fall under the auspicious of the City Conflict of Interest Code. To aid in this determination, a questionnaire was developed to help establish if the scope of duties to be performed, could have a material effect on the consultant’s financial interest. This questionnaire is included in the appendix section (See page A -23) of the Purchasing Guidelines and in the shared network drive.

The Act requires that this questionnaire be completed and forwarded to the City Clerk’s Office within 30 days of the approval of the contract and within 30 days of completion of the contract.

Often it may be difficult to determine whether an economic interest exists. The City Clerk’s and City Attorney’s Offices are good resources for assisting in that determination.

Attachment A

Page 39 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Consultant Conflict of Interest Filing
G-27

Procedure, continued:

Consultant Agreement Language: To ensure that the consultants are fully aware of the requirements to complete the Santa Maria Consultant Conflict of Interest Questionnaire, the following language should be added to all consultant agreements.

CONFLICT OF INTEREST . CONSULTANT will comply with all conflict of interest laws and regulations including, without limitation, the CITY’S Conflict of Interest Code (on file in the City Clerk’s Office). All officers, employees and/or agents of CONSULTANT who will be working on behalf of the City pursuant to this Agreement, may be required to file Statements of Economic Interest. Therefore, it is incumbent upon the CONSULTANT or CONSULTING FIRM to notify that CITY of any staff changes relating to this Agreement.

A. In accomplishing the scope of services of this Agreement, all officers, employees and/or agents of CONSULTANT(S), unless as indicated in Subsection B, will be performing a very limited and closely supervised function, and, therefore, unlikely to have a conflict of interest arise. No disclosures are required for any officers, employees, and/or agents of CONSULTANT, except as indicated in Subsection B.

Initials
B. In accomplishing the scope of services of this Agreement, CONSULTANT(S) will be performing a specialized or general service for the CITY, and there is substantial likelihood that the CONSULTANT’S work product will be presented, either written or orally, for the purpose of influencing a governmental decision. As a result, the following CONSULTANT(S) shall be subject to Disclosure Category “1” of the CITY’S Conflict of Interest Code.

Attachment A

Page 40 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Independent Contractor W-9 Requirements
G-28

Summary:

The Internal Revenues Service (IRS) and the California Employment Development Department (EDD) requires independent contractors to provide a W -9 form to the City.

The W -9 form requires the independent contractor to certify the business type (sole proprietor, corporation, or partnership) and provide a taxpayer identification number (social security or federal identification number) to governments and businesses paying for services. The California legislature enacted SB 542 that requires the City to report the W-9 information and total payments to date, to the EDD on a monthly basis.

This monthly reporting requirement and the volume of payments to independent contractors require a modification to the department policy. Previously, the W -9 was requested when a requisition was processed, but was not actively pursued until calendar year end when 1099 forms (reporting yearly payments) were processed.

Because of the monthly reporting requirements to EDD, the Finance Department must receive the W-9 when a requisition or invoice is processed. Failure to provide this form will result in the requisition or invoice returned to the department until all paperwork is provided.

Procedure:

When a contract, agreement, or negotiation concludes with an understanding that the City will provide an established payment amount for services to be provided, the independent contractor must complete a W -9. The W -9 form is included in the appendix section (Page A -25) of the Purchasing Guidelines and in the shared network drive. The W-9 reports the following information:

First name, middle initial, and last name
Social security number or federal employer identification number Business name, address, and telephone number
Business classification of sole proprietor, corporation or partnership

The department will forward the W -9 to Finance, Attention Purchasing when the requisition is entered into the Eden program. A requisition will not be processed until the W -9 is received. For those purchases that do not require a requisition, the department will forward the W -9 and invoice to Accounts Payable. If an invoice is received without the W -9, the Accounts Payable Clerk will return the invoice to the department and halt further processing until the W-9 is obtained.

Attachment A

Page 41 of 127 ends

Santa Maria
*****
All-America City

�
®

G-27
Attachment A

Page 42 of 127 ends

City of Santa Maria

SPECIAL PROVISIONS
Attachment A

Page 43 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
S-1

Special Provisions - Sole Source Purchases

Summary:

A sole source purchase is one made from only one source of supply or a purchase for which no advantage can be gained through competitive bidding. Sole source purchases often arise because specifications and requirements for the purchase are so distinct that only one possible source can provide the purchase or meet established standards. This may be the case with replacement parts for brand name machinery, equipment or vehicles. To be valid, the sole source must be the only reasonably known source of supply meeting the bona fide specification requirements. A sole source decision is not permitted merely upon the grounds that such approach is the most convenient or that the subject product is preferred by staff. Please see page G -15 through G -23 for federally funded procurement requirements.

Procedure:

Initiating the Sole Source Purchase: The department requesting to procure supplies, equipment, materials, or services from only one available source of supply, shall complete a Request for Sole Source Purchase Approval Form (See page A -9) and obtain the department director’s signature (or authorized designee). The completed form shall state the justification for obtaining quotes from only one source. The requesting department director (or authorized designee) may approve the sole source status only after confirming that there is only one vendor or supplier of the needed items or services.

The completed Sole Source Purchase form shall be sent to the Director of Finance for signature. Once the Director of Administrative Services approves the Sole Source form, a copy of the approved form will be returned to the originating department and the original retained by Finance.

Verification of Sole Source: Prior to any action on the purchase by the Finance Department, verification shall be obtained that the procurement meets the sole source definition set forth above, and that the procurement requisition form is complete with the proper approval of the requesting department or authorized designee. For large contracts and/or construction supplies, equipment, materials and services, the City Attorney may be consulted on the applicability of the sole source procurement procedures. In such cases, the proposed solicitation shall not begin until the City Attorney has confirmed the procurement qualifies as a sole source purchase.

Cost Analysis: The price for the proposed purchase shall be obtained from the sole source vendor. Reasonableness of the price should be established by a verifiable means, which may include catalogs, market price for similar commercial products, or on the basis of prices set by law or regulation. If the price cannot be verified, a cost analysis shall be conducted. A cost analysis is a detailed evaluation of the cost elements comprising the proposed price to determine if appropriate resources were applied to the purchase, and if the costs are proper, reasonable, allowable and allocable.

Attachment A

Page 44 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
S-2

Special Provisions - Emergency Purchase Documentation

Summary:

The City is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the City Manager the authority to waive any procedures in the Purchasing Guidelines that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. "Emergency Purchases" are those procurements required to prevent the immediate interruption or cessation of necessary City services or to safeguard life, property or the public health and welfare. If the purchase is expected to be $ 100,000175,000 or more, for public works , or for supplies, equipment, materials or services (including professional services), the event must be declared an emergency by a majority vote of the City Council and the purchase must be ratified. Please see page G -15 through G- 23 for federally funded procurement requirements.

Procedure:

Initiating the Emergency Purchase. Emergency purchases are to be made by staff members with expertise related to the emergency and the need for the purchase. Upon approval by the requesting department director and the City Manager (or his or her designee), determine the best price and quality of product or services available. The department director shall relay such information to the City Manager. The City Manager is authorized to approve emergency purchases of less than $ 100,000175,000. The emergency must be declared, and the procurement ratified by a majority vote of the City Council if the emergency procurement exceeds $ 100,000220,000 for construction work or supplies, equipment, material or services, including professional services.

Confirmation of Emergency Purchase. S taff shall notify the Finance Department after placing the order: (1) that an emergency purchase has been placed, and the nature of the purchase; (2) the nature of the emergency; (3) that the department director of the requesting department or authorized designee has approved the procurement; (4) the name and location of the vendor or supplier; and (5) that the City Manager has authorized the emergency purchase pursuant to the procedures outlined in subparagraph above. All information should be provided on the form Emergency Purchase Documentation (See page A-8) provided in the appendix. Upon verification of the emergency procurement, the City shall cause a confirming order to be issued to such vendor, confirming the procurement and its terms.

City Council Ratification of Emergency Purchase. The City Council shall be presented with the circumstances giving rise to the emergency purchase at the next regularly scheduled City Council meeting. The City Council shall declare the emergency and ratify the emergency purchase in excess of $ 100,000220,000 for construction work and/or supplies, equipment, materials and services, including professional services.

Attachment A

Page 45 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
S-3

Special Provisions - Cooperative Purchasing Program

Summary:

Cooperative purchasing is used by municipalities in the purchase of goods and services.

This arrangement offers the participants significant economies of scale. Although one municipality may issue specifications and receive bids, each entity independently executes its own contract, administers the procurement function, and finances the purchase. Please see page G -15 through G -23 for federally funded procurement requirements.

This is an acceptable practice that allows municipal agencies to “piggy -back” on contracts for services and supplies, issued by a wide range of other governmental agencies. Cooperative purchasing agreements may be entered into with federal, state, city governments, public or quasi-public entities, and non-profit entities.

The Purchasing Agent may buy directly from a vendor under the cooperative purchasing program if the public interest and convenience would be best served by utilizing another entity’s contract for competitive pricing of goods and/or services. See SMMC
Section 3-4.13 for specific cooperative agreement requirements.

Attachment A

Page 46 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
S-4

Special Provisions - Authorization for Equipment Purchases

During the two-year budget process, departments are to inventory the stock of vehicles, equipment, and capital equipment to determine the needs during the next two-year term.

All new equipment, fleet replacements, new vehicles or any capital expenses not included in the Capital Budget are to be listed individually by department and submitted to the Finance Department as part of the budget process.

A schedule will be prepared from the departmental lists, of all approved purchases, including but not limited to playground equipment, new vehicles, heating and air-conditioning equipment, and fleet replacements (See page A -10). This schedule will be incorporated into the two-year budget for City Council approval.

When City Council approves the two-year budget, the schedule of authorized equipment will also be considered approved. This City Council approval allows the departments to follow administrative purchasing procedures (three quotes, etc.) and purchase said equipment without obtaining specific City Council approval for each piece of equipment.

However, additional City Council approval will be necessary if supplementary appropriations are required as a result of increased costs.

Attachment A

Page 47 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
S-5

Special Provisions - Federal Transportation Administration Procurements

AUTHORITY
Except as permitted by Federal law or regulations, the Common Grant Rules require a Recipient of Federal assistance to use third party procurement procedures that provide full and open competition. The Federal Transit Administration’s (FTA) enabling legislation at 49 U.S.C. Section 5325(a), also requires an FTA Recipient to conduct all third party procurements financed under 49 U.S.C. Chapter 53 in a manner that provides full and open competition as determined by FTA. Because the City of Santa Maria receives federal grant funds for its public transit system, the City is herein after referred to as Recipient. These guidelines are based on the FTA’s Circular 4220.1F.

COMPETITION
As a Common Grant Rule, The preservation of fair competition is a major factor for the FTA. The Recipient may make third party contract awards on the basis of:

A. Solicitation by the Recipient. Compliance with the solicitation procedures described in this FTA Circular 4220.1F, Chapter VI will fulfill FTA requirements for “full and open competition.”

B. Unsolicited Proposals. A Recipient may also enter into contracts based on an unsolicited proposal, as defined in Chapter I, FTA Circular 4220.1F (as updated), when authorized by applicable State or local law or regulation.

Receipt of an unsolicited proposal does not, by itself, justify contract award without providing for full and open competition. Unless the unsolicited proposal offers a proprietary concept that is essential to contract performance, FTA expects the Recipient to seek competition. To satisfy the requirement for full and open competition, refer to FTA Circular 4220.1F (or as updated).

SOLICITATION REQUIREMENTS AND RESTRICTIONS.

The Common Grant Rules require that each solicitation provide the following information:

A. Description of the Property or Services. The solicitation and the contract awarded thereunder must include a clear and accurate description of the Recipient’s technical requirements for the property or services to be acquired in a manner that provides for full and open competition.

Attachment A

Page 48 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-6

SOLICITATION REQUIREMENTS AND RESTRICTIONS, continued:

B. What to Include. The description may include a statement of the qualitative nature of the property or services to be acquired. When practicable, the Recipient should describe its requirements in terms of functions to be performed or level of performance required, including the range of acceptable characteristics or minimum acceptable standards. The Common Grant Rules for governmental Recipients states that “Detailed product specifications should be avoided if at all possible.” Both Common Grant Rules express a preference for performance or functional specifications, but do not prohibit the use of detailed technical specifications when appropriate.

C. Quantities Limited to the Recipient’s Actual Needs. FTA limits Federal assistance to the amount necessary to support the quantity of property or extent of services the Recipient actually needs at the time of acquisition. The Recipient may not add quantities or options to contracts solely to allow them to assign these quantities or options at a later date. FTA will not knowingly support the additional cost of contract rights to property or services excess to the Recipient’s immediate needs, even though the Recipient may assign its excess contract rights to others.

D. Brand Name or Equal. When it is impractical or uneconomical to provide a clear and accurate description of the technical requirements of the property to be acquired, a “brand name or equal” description may be used to define the performance or other salient characteristics of a specific type of property. The Recipient must identify the salient characteristics of the named brand that offerors must provide. When using a “brand name” specification, the Recipient does not need to reverse-engineer a complicated part to identify precise measurements or specifications in order to describe its salient characteristics. FTA’s “Best Practices Procurement Manual,” (BPPM) contains additional information on preparation of specifications including examples with specific language.

E. Prohibitions. The Common Grant Rules prohibit solicitation requirements that contain features that unduly restrict competition. FTA Recipients are also prohibited by 49 U.S.C. Section 5325(h) from using FTA assistance to support an exclusionary or discriminatory specification. Some situations considered to be restrictive of competition include, but are not limited to, the following, all of which are identified in one or both Common Grant Rules:

Attachment A

Page 49 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-7

SOLICITATION REQUIREMENTS AND RESTRICTIONS, continued:

Prohibitions, continued:

1. Excessive Qualifications. Imposing unreasonable business requirements for bidders or offerors.

2. Unnecessary Experience. Imposing unnecessary experience requirements for bidders and offerors.

3. Improper Prequalification. Using prequalification procedures that conflict with the prequalification standards described in subsection

1.c of FTA Circular 4220.1F, Chapter VI.

4. Retainer Contracts. Making a noncompetitive award to any person or firm on a retainer contract with the Recipient if that award is not for the property or services specified for delivery under the retainer contract.

5. Excessive Bonding. To encourage greater contractor participation in FTA assisted projects, FTA does not require the Recipient to impose bonding requirements on its third party contractors other than construction bonding specified by the Common Grant Rules and FTA Circular 4220.1F Chapter VI for construction. FTA discourages unnecessary bonding because it increases the cost of the contract and restricts competition, particularly by disadvantaged business enterprises. Bond companies exercise their discretion and assure their profits primarily by declining to undertake excessive risks.

Consequently many bidders have limited “bonding capacity.” Unnecessary performance bonding requirements reduce a
prospective bidder’s or offeror’s capability to bid or offer a proposal on bonded work. Small businesses with short histories may have particular difficulty obtaining bonds as may be specified.

Attachment A

Page 50 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-8

SOLICITATION REQUIREMENTS AND RESTRICTIONS, continued:

Prohibitions, continued:

Nevertheless, even though bonding can be expensive, FTA recognizes that a Recipient might find bid, performance, or payment bonds to be desirable. Because bonding requirements can limit contractor participation, FTA expects the Recipient’s bonding requirements to be reasonable and not unduly restrictive. FTA, however, will not challenge State or local bonding requirements as unreasonably restrictive of competition, even though they might exceed Federal requirements. Nevertheless, if the Recipient’s bonding policies result in such “excessive bonding” that it would violate the Common Grant Rules as restrictive of competition, FTA will not provide Federal assistance for those procurements. Thus, if the Recipient’s bonding policies far exceed those described in this subparagraph or are permissible under State or local law, the Recipient should obtain FTA’s written concurrence to ensure the availability of Federal assistance for the project.

F. Brand Name Only. Specifying only a “brand name” product without allowing offers of “an equal” product, or allowing “an equal” product without listing the salient characteristics that the “equal” product must meet to be acceptable for award.

G. In-State or Local Geographic Restrictions. Specifying in -State or local geographical preferences, or evaluating bids or proposals in light of in-State or local geographic preferences, even if those preferences are imposed by State or local laws or regulations. In particular, 49 U.S.C. Section 5325(i) prohibits an FTA Recipient from limiting its bus purchases to in -State dealers. Exceptions expressly mandated or encouraged by Federal law include the following:

1. Architectural Engineering (A&E) Services. Geographic location may be a selection criterion if an appropriate number of qualified firms are eligible to compete for the contract in view of the nature and size of the project.

2. Licensing. A State may enforce its licensing requirements, provided that those State requirements do not conflict with Federal law.

Attachment A

Page 51 of 127 ends

S-9

3. Major Disaster or Emergency Relief. Federal assistance awarded under the Stafford Act, 42 U.S.C. Section 5150, to support contracts and agreements for debris clearance, distribution of supplies, reconstruction, and other major disaster or emergency assistance activities permits a preference, to the extent feasible and practicable, for organizations, firms, and individuals residing or doing business primarily in the area affected by a major disaster or emergency.

H. Organizational Conflicts of Interest. Engaging in practices that result in organizational conflicts of interest as prohibited by the Common Grant Rules:

1. Occurrence. An organizational conflict of interest occurs when any of the following circumstances arise:

a. Lack of Impartiality or Impaired Objectivity. When the contractor is unable, or potentially unable, to provide impartial and objective assistance or advice to the Recipient due to other activities, relationships, contracts, or
circumstances.
b. Unequal Access to Information. The contractor has an unfair competitive advantage through obtaining access to nonpublic information during the performance of an earlier contract. c. Biased Ground Rules. During the conduct of an earlier procurement, the contractor has established the ground rules for a future procurement by developing specifications,
evaluation factors, or similar documents.

2. Remedies. FTA expects the Recipient to analyze each planned acquisition in order to identify and evaluate potential organizational conflicts of interest as early in the acquisition process as possible, and avoid, neutralize, or mitigate potential conflicts before contract award.

I. Restraint of Trade. Supporting or acquiescing in noncompetitive pricing practices between firms or between affiliated companies. Questionable practices would include, but not be limited to, submissions of identical bid prices for the same products by the same group of firms, or an unnatural pattern of awards that had the cumulative effect of apportioning work among a fixed group of bidders or offerors.

J. Arbitrary Action. Taking any arbitrary action in the procurement process.

1. Evaluation Factors. The solicitation must identify all factors to be used in evaluating bids or proposals.

2. Contract Type Specified. The Recipient’s specifications should state the type of contract that will be awarded.

Attachment A

Page 52 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-10

SOLICITATION REQUIREMENTS AND RESTRICTIONS, continued:

K. Typical Contract Types. Contract types may include, but are not limited to, the following:

1. Firm Fixed Price. A firm fixed price contract includes a price that remains fixed irrespective of the contractor’s cost experience in performing the contract. A firm fixed price contract may include an economic price adjustment provision, incentives, or both.

2. Cost-reimbursement provides for payment of the contractor’s allowable incurred costs, to the extent prescribed in the contract.

Allowable costs may include incentives if the Recipient believes they can prove helpful. Cost-reimbursement contracts are suitable for use only when uncertainties involved in contract performance do not permit costs to be estimated with sufficient accuracy to use any type of fixed price contract.

L
Prohibited or Restricted Contract Types. The Common Grant Rule for governmental Recipients provides more guidance on contract type than does the Common Grant Rule for non -governmental Recipients, which merely authorizes the Recipient to select the type of contract it will use (for example, fixed price, cost reimbursement, purchase order, or incentive contract) if it is appropriate for the particular procurement and promotes the best interests of the program or project involved.

The following contract types are restricted or prohibited:

1. Cost Plus a Percentage of Cost —Prohibited. The Common Grant Rules expressly prohibit the use of the cost plus a percentage of cost and cost plus a percentage of construction cost methods of contracting.

2. Time and Materials —Restricted. The Common Grant Rule for governmental Recipients permits the use of time and material contracts only:
a. When to Use. After determining that no other contract type is suitable; and
b. Firm Ceiling Price. If the contract specifies a ceiling price that the contractor may not exceed except at its own risk.

FTA strongly encourages non -governmental Recipients to use similar procedures.

Attachment A

Page 53 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-11

SOLICITATION REQUIREMENTS AND RESTRICTIONS, continued:

Prohibited or Restricted Contract Types, continued:

M. Other Federal Requirements Affecting the Property or Services to be Acquired. The solicitation and resulting contract must identify those Federal requirements that will affect contract scope and performance. See, Chapter IV, subsection 2.b of FTA Circular 4220.1F, and FTA’s latest Master Agreement for references to Federal requirements established following publication of this circular.

N. Other Federal Requirements Affecting the Bidder or Offeror and the Contractor. The solicitation and resulting contract must identify all Federal requirements that a bidder or offeror must fulfill before and during contract performance. See, Chapter IV, subsection 2.a of FTA Circular 4220.1F and FTA’s latest Master Agreement that may reference more Federal requirements.

O. Award to Other Than the Low Bidder. If the Recipient intends to reserve its right to award to other than the low bidder or offeror, that information should be stated in the solicitation document.

P. Rejection of All Bids or Offers. If the Recipient intends to reserve its right to reject all bids or offers, that information should be stated in the solicitation document.

METHODS OF PROCUREMENT.

The Recipient should use competitive procedure(s) appropriate for the acquisition undertaken. The procedures used must comply with State and local law as well as with Federal requirements. Federal restrictions vary with the type of procurement method used. The following guidance is based on the requirements of the Common Grant Rule for governmental Recipients, supplemented by FTA policies that address the needs of FTA Recipients.

A. M
icro -Purchases. Consistent with the Federal Acquisition Regulation (FAR), FTA considers micro -purchases to be those purchases of $3,500 or less for for services, and construction services, and purchases of products and $10,000up to $50,000 or less for products . These thresholds are periodically adjusted for inflation.

Attachment A

Page 54 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-12

METHODS OF PROCUREMENT, continued:

1. When Appropriate. If permitted by State and local law, the Recipient may acquire property valued at $10,000 or lessup to $50,000 and services valued at $3,500 or less up to $50,000 without obtaining competitive quotations. These purchases are exempt from FTA’s Buy America requirements. Davis- Bacon prevailing wage
requirements, however, will apply to construction contracts exceeding $2,000, even though the Recipient uses micro-purchase procurement procedures. FTA does not intend to imply that the Recipient must treat any purchase of property of
$10,000 or less or services of $3,500 or lessup to $50,000 a s a micro- purchase. The Recipient may set lower thresholds for micro - purchases in compliance with State and local law, or otherwise as it considers appropriate.

2. Pr
ocedures. The following procedures apply to micro-purchases:
(a) Competition. The Recipient should distribute micro - purchases equitably among qualified suppliers.
(b) Prohibited Divisions. The Recipient may not divide or reduce the size of its procurement merely to come within the micro- purchase limit.
(c) Documentation. FTA’s only documentation requirement for micro-purchases is a determination that the price is fair and reasonable and a description of how the Recipient made its determination. FTA does not require the Recipient to provide its rationale for the procurement method used, selection of contract type, or reasons for contractor selection or rejection.

B. Small Purchases. The Common Grant Rule for governmental Recipients authorizes governmental Recipients to use relatively simple and informal small purchase procedures as follows:

Small p
urchase procedures are appropriate to acquire services, supplies, or other property valued at more than the micro- purchase threshold but less than the Federal simplified acquisition threshold at 41 U.S.C. Section 403(11) (currently $250,000). These purchases are also exempt from FTA’s Buy America requirements. FTA does not intend to imply that any purchase of $250,000 or less must be treated as a small purchase. The Recipient may set lower thresholds for small purchases in compliance with State and local Attachment A

Page 55 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-13

law, or otherwise as it considers appropriate.

Attachment A

Page 56 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-14

METHODS OF PROCUREMENT, continued:

Procedures when using small purchase procedures:

1. Competition. The Recipient must obtain price or rate quotations from an adequate number of qualified sources.

2. Prohibited Divisions. The Recipient may not divide or reduce the size of its procurement to avoid the additional procurement requirements applicable to larger acquisitions.

C. Sealed Bids (Formal Advertising). The Common Grant Rule for governmental Recipients acknowledges sealed bidding to be a generally accepted procurement method in which bids are publicly solicited, and a firm fixed price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is lowest in price.

As the Common Grant Rule for government Recipients states, a Sealed Bids are appropriate for acquiring property, construction, and other services.

Procurement using sealed bids is appropriate if:

1. Precise Specifications. A complete, adequate, precise, and realistic specification or purchase description is available.

2. Adequate Sources. Two or more responsible bidders are willing and able to compete effectively for the business.

3. Fixed Price Contract. The procurement generally lends itself to a firm fixed price contract.

4. Price Determinative. The successful bidder can be selected on the basis of price and those price-related factors listed in the solicitation including, but not limited to, transportation costs, life cycle costs, and discounts expected to be taken. Apart from responsibility determinations discussed in later sections of FTA Circular 4220.1F Chapter IV, contractor selection may not be determined on the basis of other factors whose costs cannot be measured at the time of award.

Attachment A

Page 57 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-15

METHODS OF PROCUREMENT, continued:

Sealed Bids, continued:

5. Discussions Unnecessary. Discussions with one or more bidders after bids have been submitted are expected to be unnecessary as award of the contract will be made based on price and price-related factors alone. This contrasts with Competitive Proposal procedures in which discussions with individual offerors are expected to be necessary and may take place at any time after receipt of proposals.

However, a pre-bid conference with prospective bidders before bids have been received can be useful.

The following procedures apply to sealed bid procurements:

1. Publicity. The invitation for bids is publicly advertised.

2. Adequate Sources. Bids are solicited from an adequate number of known suppliers.

3. Adequate Specifications. The invitation for bids, including any specifications and pertinent attachments, describes the property or services sought in sufficient detail that a prospective bidder will be able to submit a proper bid.

4. Sufficient Time. Bidders are allowed sufficient time to prepare bids before the date of bid opening.

5. Public Opening. All bids are publicly opened at the time and place prescribed in the invitation for bids.

6. Fixed Price Contract. A firm fixed price contract is usually awarded in writing to the lowest responsive and responsible bidder, but a fixed price incentive contract or inclusion of an economic price adjustment provision can sometimes be appropriate. When specified in the bidding documents, factors such as transportation costs and life cycle costs affect the determination of the lowest bid; payment discounts are used to determine the low bid only when prior experience indicates that such discounts are typically taken.

7. Rejection of Bids. Any or all bids may be rejected if there is a sound, documented business reason.

FTA strongly encourages non-governmental Recipients to use similar procedures.

Attachment A

Page 58 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-16

D. Competitive Proposals (Request for Proposals). The Common Grant Rule for governmental Recipients acknowledges the use of competitive proposals to be a generally accepted procurement method when the nature of the procurement does not lend itself to sealed bidding and the Recipient expects that more than one source will be willing and able to submit an offer or proposal.

Competitive proposals should be used when any of the following circumstances are present:

1. Type of Specifications. The property or services to be acquired are described in a performance or functional specification; or if described in detailed technical specifications, other circumstances such as the need for discussions or the importance of basing contract award on factors other than price alone are present.

a. Uncertain Number of Sources. Uncertainty about whether more than one bid will be submitted in response to an
invitation for bids and the Recipient lacks the authority or flexibility under State or local law to negotiate the contract price if it receives only a single bid.
b. Price Alone Not Determinative. Due to the nature of the procurement, contract award need not be based exclusively on price or price -related factors. In different types of negotiated acquisitions, the relative importance of cost or price may vary. When the Recipient’s material requirements are clearly definable and the risk of unsuccessful contract performance is minimal, cost or price may play a dominant role in source selection. The less definitive the requirements, the more development work required, or the greater the
performance risk, the more technical or past performance considerations may play a dominant role in source selection and supersede low price.
c. Discussions Expected. Separate discussions with individual offeror(s) are expected to be necessary after they have submitted their proposals. This contrasts with Formal
Advertising procedures in which discussions with individual bidders are not likely to be necessary, as award of the contract will be made based on price and price-related factors alone.

Attachment A

Page 59 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-17

METHODS OF PROCUREMENT, continued:

Competitive Proposals, continued:

Types of Specifications, continued:

The following procedures apply to procurements by competitive proposals:

1. Publicity. The request for proposals is publicly advertised.

2. Evaluation Factors. All evaluation factors and their relative importance are specified in the solicitation; but numerical or percentage ratings or weights need not be disclosed.

3. Adequate Sources. Proposals are solicited from an adequate number of qualified sources.

4. Evaluation Method. A specific method is established and used to conduct technical evaluations of the proposals received and to determine the most qualified offeror.

5. Price and Other Factors. An award is made to the responsible offeror whose proposal is most advantageous to the Recipient’s program with price and other factors considered.

6. Best Value. If permitted under its State or local law, the Recipient may award the contract to the offeror whose proposal provides the greatest value to the Recipient. To do so, the Recipient’s solicitation must inform potential offerors that the award will be made on a “best value” basis and identify what factors will form the basis for award.

The evaluation factors for a specific procurement should reflect the subject matter and the elements that are most important to the Recipient. Those evaluation factors may include, but need not be limited to, technical design, technical approach, length of delivery schedules, quality of proposed personnel, past performance, and management plan. The Recipient should base its determination of which proposal represents the “best value” on an analysis of the tradeoff of qualitative technical factors and price or cost factors.

Apart from the statutory requirement that the contract must support the Recipient’s public transportation project consistent with applicable Federal laws and regulations, FTA does not require any specific factors or analytic process. FTA strongly encourages non - governmental Recipients to use similar procedures.

Attachment A

Page 60 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-18

METHODS OF PROCUREMENT, continued:

E. Two-Step Procurement Procedures.

If permitted by State and local law, the Recipient may use two- step procurement procedures in both sealed bid and competitively negotiated procurements, provided the opportunity for full and open competition is retained.

1. Review of Technical Qualifications and Approach. The first step is a review of the prospective contractors’ technical approach to the Recipient’s request and technical qualifications to carry out that approach. The Recipient then may narrow the competitive range to prospective contractors that demonstrate a technically satisfactory approach and have satisfactory qualifications.

2. Review of Bids and Proposals Submitted by Qualified Prospective Contractors. The second step consists of soliciting and reviewing complete bids (sometimes referred to as “two-step sealed bidding”) or proposals (as in “competitive negotiations”), including price, submitted by each prospective contractor determined to be qualified. Absent exceptional circumstances, the Recipient should attempt to solicit bids or proposals from at least three (3) qualified prospective contractors. Unlike qualifications -based procurement procedures required for A&E services, and other contracts covered by 49 U.S.C. Section 5325(b) discussed in subsection 3.f of FTA Circular 4220.1F, Chapter VI. FTA expects the Recipient to consider all bid or proposal prices submitted as well as other technical factors, rather than limiting reviews to the most qualified bidder or offeror.

F. Architectural Engineering (A&E) Services and Other Services.

FTA’s enabling legislation at 49 U.S.C. Section 5325(b)(1) requires the use of the qualifications-based procurement procedures contained in the “Brooks Act,” 40 U.S.C. Sections 1101 through 1104, to acquire A&E services, but also for program management, construction management, feasibility studies, preliminary engineering, design, architectural, engineering, surveying, mapping, and related services. The nature of the work to be performed and its relationship to construction, not the nature of the prospective contractor, determine whether qualifications -based procurement procedures may be used as described below.

Attachment A

Page 61 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-19

METHODS OF PROCUREMENT, continued:

1. Qualifications-Based Procurement Procedures Required. The Recipient must use qualifications -based procurement procedures not only when contracting for A&E services, but also for other services listed in 49 U.S.C. Section 5325(b)(1) that are directly in support of, directly connected to, directly related to, or lead to construction, alteration, or repair of real property. For example, a contractor performing program management, project design, construction management, or engineering services in which that contractor would select the finished products to be acquired for an FTA assisted construction project must be selected through qualifications-based procurement procedures.

2. Qualifications-Based Procurement Procedures Prohibited. Unless FTA determines otherwise in writing, a Recipient may not use qualifications-based procurement procedures to acquire other types of services if those services are not directly in support of, directly connected to, directly related to, or do not lead to construction, alteration, or repair of real property. Even if a contractor has performed services listed herein in support of a construction, alteration, or repair project involving real property, selection of that contractor to perform similar services not relating to construction may not be made through the use of qualifications -based procurement procedures.

A project involving construction does not always require that qualifications-based procurement procedures be used. Whether or not qualifications-based procurement procedures may be used depends on the actual services to be performed in connection with the construction project.

For example, the design or fabrication of message signs, signals, movable barriers, and similar property that will become off-the-shelf items or will be fabricated and delivered as final end products for installation in an FTA assisted construction project are not services for which qualifications-based procurement procedures may be used. Nor are actual construction, alteration, or repair to real property the type of services for which qualifications-based procurement procedures may be used.

Attachment A

Page 62 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-20

METHODS OF PROCUREMENT, continued:

G. Qualifications-Based Procurement Procedures. The following procedures apply to qualifications-based procurements:

1. Qualifications. Unlike other two- step procurement procedures in which price is an evaluation factor, an offeror’s qualifications are evaluated to determine contract award.

2. Price. Price is excluded as an evaluation factor.

3. Most Qualified. Negotiations are first conducted with only the most qualified offeror.

4. Next Most Qualified. Only after failing to agree on a fair and reasonable price may negotiations be conducted with the next most qualified offeror. Then, if necessary, negotiations with successive offerors in descending order may be conducted until contract award can be made to the offeror whose price the Recipient believes is fair and reasonable.

To the extent that a State has, before August 10, 2005, adopted by law, an equivalent State qualifications -based procurement requirement for acquiring architectural, engineering, and design services, Federal “Brooks Act” procedures, 40 U.S.C. Sections 1101 through 1104, will not apply.

As required by 49 U.S.C. Section 5325(b)(3), the following requirements apply to a third party contract for program management, architectural engineering, construction management, feasibility studies, preliminary engineering, design, architectural, engineering, surveying, mapping, or related services:

1. Performance of Audits. The third party contract or subcontract must be performed and audited in compliance with FAR Part 31 cost principles.

2. Indirect Cost Rates. The Recipient and the third party contractor, its subcontractors, and subrecipients, if any, must accept FAR indirect cost rates for one-year applicable accounting periods established by a cognizant Federal or State government agency, if those rates are not currently under dispute.

Attachment A

Page 63 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-21

METHODS OF PROCUREMENT, continued:

Qualifications-Based Procurement Procedures, continued:

3. Application of Rates. After a firm’s indirect cost rates established as described in subparagraph 3.f(5)(b) of this Chapter are accepted, those rates will apply for purposes of contract estimation, negotiation, administration, reporting, and payments, not limited by administrative or de facto ceilings.

4. Prenotification; Confidentiality of Data. Before requesting or using cost or rate data described in subparagraph 3.f(5)(c), a Recipient must notify the affected firm(s). That data must be kept confidential and may not be accessible by or provided by the group of agencies that share cost data under this subparagraph, except by written permission of the audited firm. If prohibited by law, that cost and rate data may not be disclosed under any circumstances. FTA recognizes that many States have “Open Records” laws that may make it difficult to maintain confidential cost or rate data. As a result, before requesting or using cost or rate data, not only should a Recipient notify the affected firm, but it must also obtain permission to provide that data in response to a valid request under applicable State law. The confidentiality requirements of 49 U.S.C. 5325(b)(3)(D) cannot be waived, even if they conflict with State law or regulations.

H. Design-Bid-Build.

The design-bid-build procurement method requires separate contracts for design services and for construction.

For design services, the Recipient must use qualifications -based procurement procedures, in compliance with applicable Federal, State and local law and regulations.

Because the Recipient may not use qualifications -based procurement procedures for the actual construction, alteration or repair of real property, the Recipient generally must use competitive procedures for the construction. These may include sealed bidding or competitive negotiation procurement methods, as appropriate.

Attachment A

Page 64 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-22

METHODS OF PROCUREMENT, continued:

Design-Bid-Build, continued:

The design-build procurement method consists of contracting for design and construction simultaneously with contract award to a single contractor, consortium, joint venture, team, or partnership that will be responsible for both the project’s design and construction. The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA -LU) expressly authorizes the use of FTA capital assistance to support design - build projects “after the Recipient complies with Government requirements,” 49 U.S.C. Section 5325(d)(2).

Procurement Method Determined by Value. First, the Recipient must separate the various contract activities to be undertaken and classify them as design or because both design and construction are included in a single procurement, the FTA expects the Recipient to use the procurement method appropriate for the services having the greatest cost, even though other necessary services would not typically be procured by that method.

1. Construction Predominant. The construction costs of a design-build project are usually predominant so that the Recipient would be expected to use competitive negotiations or sealed bids for the entire procurement rather than the qualifications -based Brooks Act procurement procedures. Specifically, when construction costs will be predominant, unless FTA determines otherwise in writing, an FTA Recipient may not use qualifications -based procurement procedures to acquire architectural engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural and engineering, surveying, mapping, or related A&E services unless required by State law adopted before August 10, 2005.

2. Design Services Predominant. In the less usual circumstance in which the cost of most work to be performed will consist of costs for architectural and engineering, program management, construction management, feasibility studies, preliminary engineering, design, architectural engineering, surveying, mapping, or related A&E services, FTA expects the Recipient to use qualifications -based procurement procedures based on the Brooks Act as described in subsection 3.e of FTA Circular 4220.1F, Chapter VI for. construction, and then calculate the estimated total value of each.

Attachment A

Page 65 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-23

METHODS OF PROCUREMENT, continued:

Design-Bid-Build, continued:

The Recipient may structure its design-build procurement selection process using one or more steps as described below:
a. One-Step Method. The Recipient may undertake its design - build procurement in a single step.
b. Two-Step Method. Another procurement method the
Recipient may use for large design-build projects is a two-step selection process as authorized for Federal Government use by 41 U.S.C. Section 253m. This method consists of:

(1) Review of Technical Qualifications and Approach. The first step is a review of the prospective contractors’
technical qualifications and technical approach to the
project. The Recipient may then narrow the
competitive range to those prospective contractors
with satisfactory qualifications that demonstrate a
technically satisfactory approach.
(2) Review of Complete Proposals. The second step
consists of soliciting and reviewing complete
proposals, including price, submitted by prospective
contractors first determined to be qualified.

By using this two- step method, it will not be necessary for the Recipient to undertake extensive proposal reviews, nor will prospective offerors need to engage in expensive proposal drafting.

This two -step selection procedure is separate and distinct from prequalification and is but one procurement method available to the Recipient.

I. Other Than Full and Open Competition.

Normally, the Recipient must provide for full and open competition when soliciting bids or proposals. The Common Grant Rule for governmental Recipients, however, acknowledges that under certain circumstances, a Recipient may conduct procurements without providing for full and open competition.

Attachment A

Page 66 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-24

METHODS OF PROCUREMENT, continued:

Other Than Full and Open Competition, continued:

When appropriate, a Recipient may use noncompetitive proposals only when the procurement is inappropriate for small purchase procedures, sealed bids, or competitive proposals, and at least one of the following circumstances are present:

1. Competition Adequacy. After soliciting several sources, FTA expects the Recipient to review its specifications to determine if they are unduly restrictive or if changes can be made to encourage submission of more bids or proposals. After the Recipient determines that the specifications are not unduly restrictive and changes cannot be made to encourage greater competition, the Recipient may determine the competition adequate. A cost analysis must be performed in lieu of a price analysis when this situation occurs.

2. Sole Source. When the Recipient requires supplies or services available from only one responsible source, and no other supplies or services will satisfy its requirements, the Recipient may make a sole source award. When the Recipient requires an existing contractor to make a change to its contract that is beyond the scope of that contract, the Recipient has made a sole source award that must be justified.
a. Unique Capability or Availability. The property or services are available from one source if one of the conditions
described below is present:
b. Unique or Innovative Concept. The offeror demonstrates a unique or innovative concept or capability not available from another source. Unique or innovative concept means a new, novel, or changed concept, approach, or method that is the product of original thinking, the details of which are kept confidential or are patented or copyrighted, and is available to the Recipient only from one source and has not in the past been available to the Recipient from another source.
c. Patents or Restricted Data Rights. Patent or data rights restrictions preclude competition.

Attachment A

Page 67 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-25

METHODS OF PROCUREMENT, continued:

Other Than Full and Open Competition, continued:

Sole Source, continued:

d. Substantial Duplication Costs. In the case of a follow -on contract for the continued development or production of highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in substantial duplication of costs that are not expected to be recovered through competition.
e. Unacceptable Delay. In the case of a follow-on contract for the continued development or production of a highly specialized equipment and major components thereof, when it is likely that award to another contractor would result in unacceptable delays in fulfilling the Recipient’s needs.

2. Single Bid or Proposal. Upon receiving a single bid or proposal in response to a solicitation, the Recipient should determine if competition was adequate. This should include a review of the specifications for undue restrictiveness and might include a survey of potential sources that chose not to submit a bid or proposal. a. Adequate Competition. FTA acknowledges competition to be adequate when the reasons for few responses were caused by conditions beyond the Recipient’s control. Many unrelated factors beyond the Recipient’s control might cause potential sources not to submit a bid or proposal. If the competition can be determined adequate, FTA’s competition requirements
will be fulfilled, and the procurement will qualify as a valid sole source.
b. Inadequate Competition. FTA acknowledges competition to be inadequate when caused by conditions within the
Recipient’s control. For example, if the specifications used were within the Recipient’s control and those specifications were unduly restrictive, competition will be inadequate.

Attachment A

Page 68 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-26

METHODS OF PROCUREMENT, continued:

Other Than Full and Open Competition, continued:
c. Unusual and Compelling Urgency. The Common Grant Rule for governmental Recipients permits the Recipient to limit the number of sources from which it solicits bids or proposals when a Recipient has such an unusual and urgent need for the property or services that the Recipient would be seriously injured unless it were permitted to limit the solicitation. The Recipient may also limit the solicitation when the public exigency or emergency will not permit a delay resulting from competitive solicitation for the property or services.
d. Associated Capital Maintenance Item Exception Repealed.

SAFETEA-LU repealed the special procurement preference
previously authorized for associated capital maintenance items. Thus, any sole source procurement of associated
capital maintenance items must qualify for an exception under the same standards that would apply to other sole source acquisitions.
e. Authorized by FTA. The Common Grant Rules provide
Federal agencies authority to permit a Recipient to use noncompetitive proposals. Under this authority, FTA has made the following determinations:
f. Consortium, Joint Venture, Team, Partnership. With some exceptions, when FTA awards a grant agreement or enters into a cooperative agreement with a consortium, joint
venture, team, or partnership, or provides FTA assistance for a research project in which FTA has approved the
participation of a particular firm or combination of firms in the project work, the grant agreement or cooperative
agreement constitutes approval of those arrangements. In such cases, FTA expects the Recipient to use competition, as feasible, to select other participants in the project.

Attachment A

Page 69 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-27

METHODS OF PROCUREMENT, continued:

Other Than Full and Open Competition, continued:

FAR Standards, continued:

g. FAR Standards. To ensure that the Recipient has flexibility equal to that of Federal contracting officers, FTA authorizes procurement by noncompetitive proposals in all of the
circumstances authorized by FAR Part 6.3. In addition to circumstances discussed in the Common Grant Rules, the
FAR authorizes less than full and open competitive
procurements in one or more of the following circumstances:

(1) Statutory Authorization or Requirement. To comply
with Department of Transportation (DOT)
appropriations laws that include specific statutory
requirements, with the result that only a single
contractor can perform certain project work.
(2) National Emergency. To maintain a facility, producer, manufacturer, or other supplier available to provide
supplies or services in the event of a national
emergency or to achieve industrial mobilization.
(3) Research. To establish or maintain an educational or other non -profit institution or a federally funded
research and development center that has or will have
an essential engineering, research, or development
capability.
(4) Protests, Disputes, Claims, Litigation. To acquire the services of an expert or neutral person for any current or anticipated protest, dispute, claim, or litigation.
(5) International Arrangements. When precluded by the
terms of an international agreement or a treaty
between the United States and a foreign government
or international organization, or when prohibited by
the written directions of a foreign government
reimbursing the Recipient for the cost of the
acquisition of the supplies or services for that
government.

Attachment A

Page 70 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-28

METHODS OF PROCUREMENT, continued:

Other Than Full and Open Competition, continued:

FAR Standards, continued:

(6) National Security. When the disclosure of the
Recipient’s needs would compromise the national
security.
(7) Public Interest. When the Recipient determines that full and open competition in connection with a
particular acquisition is not in the public interest.

When less than full and open competition is available to the Recipient, the Common Grant Rule for governmental Recipients directs the Recipient to:
a. Potential Sources. Solicit offers from as many potential sources as is practicable under the circumstances.
b. Sole Source Justification. If the Recipient decides to solicit an offer from only one source, the Recipient must justify its decision adequately in light of the standards of subparagraph FTA Circular 4220.1F 3.i(1)(b) (as updated). FTA expects this sole source justification to be in writing.

Attachment A

Page 71 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-29

COST AND PRICE ANALYSIS
The Common Grant Rules require the Recipient to perform a cost or price analysis in connection with every procurement action, including contract modifications.

The method and degree of analysis depends on the facts and circumstances surrounding each procurement, but as a starting point, the Recipient must make independent estimates before receiving bids or proposals.

The Recipient must obtain a cost analysis when a price analysis will not provide sufficient information to determine the reasonableness of the contract cost. The Recipient must obtain a cost analysis when the offeror submits elements (that is, labor hours, overhead, materials, and so forth) of the estimated cost, (such as professional consulting, and A&E contracts, and so forth). The Recipient is also expected to obtain a cost analysis when price competition is inadequate, when only a sole source is available, even if the procurement is a contract modification, or in the event of a change order. The Recipient, however, need not obtain a cost analysis if it can justify price reasonableness of the proposed contract based on a catalog or market price of a commercial product sold in substantial quantities to the general public or based on prices set by law or regulation.

A. Federal Cost Principles. Federal cost principles contain many requirements about the allowability and allocability of costs.

B. Establishing Indirect Cost Rates. For contracts other than A&E contracts discussed in FTA Circular 4220.1F, subsection 3.e, if the third party contractor or subcontractor does not have an approved Government indirect cost rate agreement, the contract’s dollar value should determine how that rate is verified.

1. Contracts of $5 Million or Less. FTA will accept the audit recommendations of the contractor’s certified public accountant, or indirect cost information in the contractor’s annual statement to their stockholders, shareholders, or owners, or examples of acceptance of their rates by other governmental agencies within the last six months.

2. Contracts Exceeding $5 Million. If the contract exceeds $5 million, then the Defense Contract Audit Agency, another Federal cognizant audit agency, or an accounting firm approved by the Federal Government to perform audits for the Federal Government, must verify the contractor’s rates.

Attachment A

Page 72 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-30

COST AND PRICE ANALYSIS, continued:

Establishing Indirect Cost Rates, continued:

C. Profit. FTA expects the Recipient to negotiate profit as a separate element of the cost for each contract in which there has been no price competition, and in all acquisitions in which the Recipient performs or acquires a cost analysis. To establish a fair and reasonable profit, the Recipient needs to consider the complexity of the work to be performed, the risk undertaken by the contractor, the contractor’s investment, the amount of subcontracting, the quality of the contractor’s record of past performance, and industry profit rates in the surrounding geographical area for similar work.

D. Price Analysis. If the Recipient determines that competition was adequate, a price analysis, rather than a cost analysis, is required to determine the reasonableness of the proposed contract price. As discussed previously in subsection 3.a of FTA Circular 4220.1F, Chapter VI, the price analysis for micro-purchases may be limited. Similarly, the Recipient may use an abbreviated price analysis for small purchases in most cases. One method to record this price analysis is through the use of a preprinted form on which a contracting officer (or other responsible person) can annotate a finding of fair and reasonable pricing and check off the most common reasons why this would be so, such as catalog or market prices offered in substantial quantities to the general public, regulated prices (for example, for many utilities purchases), or a comparison with recent prices for similar goods and services.

E. Guidance on Cost and Price Analysis. FTA recognizes that some Recipients may have difficulty obtaining the information necessary to conduct a proper cost or price analysis. Although neither FTA nor DOT may change the Common Grant Rules’ requirements for cost or price analysis, FTA continues to seek a fair, practical solution to this problem consistent with the flexibility provided to Federal contracting officers under the FAR. The Recipient may use the following resources as guidance in preparing cost or price analyses:

Attachment A

Page 73 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-31

COST AND PRICE ANALYSIS, continued:

Guidance on Cost and Price Analysis, continued:
• FTA’s “Best Practices Procurement Manual,” Chapter 5
• FTA C 4220.1F 11/01/2008 Rev. 04/14/2009
• The National Transit Institute Course, “Cost or Price Analysis and Risk Assessment,”
• Pricing Guide for FTA Grantees, FTA Web Site:
• http://www.fta.dot.gov/documents/Helpline_Price_Guide.doc., • FAR Part 31, Contract Cost Principles and Procedures, and • Defense Contract Audit Agency Audit Manual. See, the DCAA Web site:
• http://www.dcaa.mil/.

Note, however, that the requirements of FAR Part 31 and the Defense Contract Audit Agency Audit Manual may differ from restrictions applicable to an FTA Recipient. Each FTA Recipient must comply with those Federal laws and regulations directly applicable to it.

Attachment A

Page 74 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-32

EVALUATIONS.

The following standards apply:

A. General. When evaluating bids or proposals submitted, FTA expects the Recipient to consider all evaluation factors specified in its solicitation documents, and evaluate the bids or offers only on the evaluation factors included in those solicitation documents. The Recipient may not modify its evaluation factors after bids or proposals have been submitted without re - opening the solicitation.

B. Options. In awarding the contract that will include options, the following standards apply:

1. Evaluation Required. In general, FTA expects the Recipient to evaluate bids or offers for any option quantities or periods contained in a solicitation if it intends to exercise those options after the contract is awarded.

2. Evaluation Not Required. The Recipient need not evaluate bids or offers for any option quantities when the Recipient determines that evaluation would not be in its best interests. An example of a circumstance that may support a determination not to evaluate bids or offers for option quantities is when the Recipient is reasonably certain that funds will not be available to permit it to exercise the option.

C. Evaluators. In addition to evaluators with experience in technical or public policy matters related to the procurement, other evaluators may also include auditors and financial experts to the extent that the Recipient determines would be necessary or helpful. Although many FTA Recipients assign evaluation duties to their own personnel, a Recipient lacking qualified personnel within its organization may contract for evaluation services. If it does so, the procurement standards of this circular will apply to those contracts and to those contractors selected to perform evaluation functions on behalf of the Recipient.

Attachment A

Page 75 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-33

CONTRACT AWARD.

The following provisions apply to third party contract awards:

A. Award to Other Than the Lowest Bidder or Offeror. Federal transit law at 49 U.S.C. Section 5325(c) authorizes the Recipient to award a contract to other than the lowest bidder if the award furthers an objective consistent with the purposes of 49 U.S.C. Chapter 53, including improved long -term operating efficiency and lower long -term costs. The Recipient may also award a contract to other than the offeror whose proposal is lowest, when stated in the evaluation factors of the solicitation. In both cases, the Recipient should include a statement in its solicitation document reserving the right to award the contract to other than the low bidder or offeror.

B. Award Only to a Responsible Bidder or Offeror. SAFETEA-LU amended 49 U.S.C. Section 5325 to require FTA assisted contract awards be made only to “responsible” contractors possessing the ability, willingness, and integrity to perform successfully under the terms and conditions of the contract. Responsibility is a procurement issue that is determined by the Recipient after receiving bids or proposals and before making contract award. FTA expects the prospective contractor to demonstrate affirmatively to the Recipient that it qualifies as “responsible” under the standards of 49 U.S.C. Section 5325, and that its proposed subcontractors also qualify as “responsible.”
To designate a prospective contractor “responsible” as required by 49 U.S.C. Section 5325, FTA expects the Recipient, at a minimum, to determine and ensure that the prospective contractor satisfies the following criteria described herein. In addition to being otherwise qualified and eligible to receive the contract award under applicable laws and regulations, a responsible contractor:

1. Integrity and Ethics. Has a satisfactory record of integrity and business ethics, in compliance with 49 U.S.C. Section 5325(j)(2)(A),

2. Debarment and Suspension. Is neither debarred nor suspended from Federal programs under DOT regulations, “Nonprocurement Suspension and Debarment,” 2 CFR Parts 180 and 1200, or under the FAR at 48 CFR Chapter 1, Part 9.4,
Attachment A

Page 76 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-34

CONTRACT AWARD, continued:

Award Only to a Responsible Bidder or Offeror, continued:

3. Affirmative Action and DBE. Is in compliance with the Common Grant Rules’ affirmative action and FTA’s Disadvantaged Business Enterprise requirements,

4. Public Policy. Is in compliance with the public policies of the Federal Government, as required by 49 U.S.C. Section 5325(j)(2)(B),

5. Administrative and Technical Capacity. Has the necessary organization, experience, accounting, and operational controls, and technical skills, or the ability to obtain them, in compliance with 49 U.S.C. Section 5325(j)(2)(D),

6. Licensing and Taxes. Is in compliance with applicable licensing and tax laws and regulations,

7. Financial Resources. Has, or can obtain, sufficient financial resources to perform the contract, as required by 49 U.S.C. Section 5325(j)(2)(D),

8. Production Capability. Has, or can obtain, the necessary production, construction, and technical equipment and facilities,

9. Timeliness. Is able to comply with the required delivery or performance schedule, taking into consideration all existing commercial and governmental business commitments, and

10. Performance Record. Is able to provide a:
a. Current Performance. Satisfactory current performance record, and
b. Past Performance. Satisfactory past performance record in view of its records of long- time performance or performance with a predecessor entity, including:

(1) Sufficient Resources. Key personnel with adequate
experience, a parent firm with adequate resources and
experience, and key subcontractors with adequate
experience and past performance,
Attachment A

Page 77 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-35

CONTRACT AWARD, continued:

Award Only to a Responsible Bidder or Offeror, continued:
(2) Adequate Past Experience. Past experience in carrying out similar work with particular attention to
management approach, staffing, timeliness, technical
success, budgetary controls, and other specialized
considerations as described in the Recipient’s
solicitation, and
(3) Any Past Deficiencies Not the Fault of the Bidder or Offeror. A prospective bidder or offeror that is or
recently has been seriously deficient in contract
performance is presumed to be nonresponsive, unless
the Recipient determines that the circumstances were
properly beyond the bidder or offeror’s control, or
unless the bidder or offeror has taken appropriate
corrective action. Past failure to apply sufficient
tenacity, perseverance, and effort to perform
acceptably is strong evidence of nonresponsiveness.

Failure to meet the quality requirements of a contract
is a significant factor to consider in determining
satisfactory performance. FTA expects the Recipient to
consider the number of the bidder or offeror’s
contracts involved and the extent of deficient
performance in each contract when making this
determination.

Before entering into a full funding contract for a fixed guideway project, the Recipient must now consider the prospective contractor’s past performance in estimating costs and ridership as reported in the Contractor Performance Assessment Reports, as required by 49 U.S.C. Section 5325(j)(2)(C).

C. Rejection of Bids and Proposals. Depending on the type of Recipient, the following applies:

1. Governmental Recipients. The Common Grant Rule for
governmental Recipients asserts the Recipient’s right to reject all bids submitted in response to an invitation for bids or request for proposals.

Attachment A

Page 78 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-36

CONTRACT AWARD, continued:

Rejection of Bids and Proposals, continued:

2. Non-Governmental Recipients. The Common Grant Rule for non - governmental Recipients authorizes the Recipient to reject any and all bids and proposals when it is in the Recipient’s interest to do so.

3. Extent and Limits of Contract Award. A selection of a contractor to participate in one aspect of a project does not, by itself, constitute a sole source selection of the contractor’s wholly owned affiliates to perform other work in connection with the project.

Attachment A

Page 79 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-37

FEDERALLY REQUIRED AND OTHER MODEL CLAUSES

Refer to the FTA Circular 4220.1F and the Best Procurement Practices Manual at http://www.fta.dot.gov .

Applicability of third party contract clauses (excluding micro-purchases, except Davis- Bacon requirements apply to construction contracts over $2,000).

TYPE OF PROCUREMENT

CLAUSE Professional
Services/A&E
Operations/
Management
Rolling
Stock
Purchase

Construction Materials &
Supplies
No Federal Government
Obligations to Third
Parties (by Use of a
Disclaimer)
All All All All All
False Statements or
Claims Civil and
Criminal Fraud
All All All All All
Access to Third Party
Contract Records
All All All All All
Changes to Federal
Requirements
All All All All All
Termination >$10,000 if 49 CFR
Part 18 applies.
>$10,000 if 49
CFR Part 18
applies.
>$10,000 if 49
CFR Part 18
applies.
>$10,000 if 49
CFR Part 18
applies.
>$10,000 if 49
CFR Part 18
applies.

Civil Rights (Title VI,

EEO, ADA)
>$10,000 >$10,000 >$10,000 >$10,000 >$10,000
Disadvantaged Business
Enterprises (DBEs)
All All All All All
Incorporation of FTA
Terms
All All All All All
Suspension and
Debarment
>$25,000 >$25,000 >$25,000 >$25,000 >$25,000
Buy America >$100,000 >$100,000 >$100,000
Resolution of Disputes,
Breaches, or Other
Litigation
>$100,000 >$100,000 >$100,000 >$100,000 >$100,000
Lobbying >$100,000 >$100,000 >$100,000 >$100,000 >$100,000 Clean Air >$100,000 >$100,000 >$100,000 >$100,000 >$100,000 Attachment A

Page 80 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-38

Federally Required and other Model Clauses, continued:

TYPE OF PROCUREMENT

CLAUSE Professional
Services/A&E
Operations/
Management
Rolling Stock
Purchase

Construction
Materials &
Supplies
Clean Water >$100,000 >$100,000 >$100,000 >$100,000 >$100,000 Cargo Preference For property
transported by
ocean vessel.

For property
transported by
ocean vessel.

Fly America For foreign air
transport or
travel.

For foreign air
transport or travel.

For foreign air
transport or
travel.

For foreign air
transport or travel.

For foreign air
transport or
travel.

Davis-Bacon Act >$2,000 (including
ferry vessels)

Contract Work
Hours and Safety
Standards Act
>$100,000 (except
transportation
services)
>$100,000 >$100,000
(including ferry
vessels)

Attachment A

Page 81 of 127 ends

City of Santa Maria

PURCHASING GUIDELINES
Special Provisions - Federal Transportation Administration Procurements, continued
S-39

ETHICS POLICY

The residents and businesses in Santa Maria are entitled to have a fair, ethical and accountable local government that has earned the public’s full confidence for integrity.

City employees are in a position of public trust and have an obligation even higher than the private sector, to do their jobs well in the spirit of public service. As such, they shall conduct themselves in an ethical manner, both on and off the job, and in a manner that does not present the appearance of a conflict of interest. In recognition of these goals, the City Council has adopted the Code of Ethics. Employees are required to be familiar with City standards and statutory provisions relating to ethical and other standards of conduct and shall comply with these ethics standards, as the City may impose disciplinary action on employees whose conduct does not comply with the Code of Ethics. City employees are required to sign an abbreviated version of the employment policies at a minimum once per year. (CSM Resolution No. 2006-42)
Attachment A

Page 82 of 127 ends

City of Santa Maria

APPENDIX
Attachment A

Page 83 of 127 ends

A-1

CHAPTER 3-4 PURCHASING SYSTEM

Sections 3-4.01. through 3-4.09. were repealed by Ordinance 2007-02.

Article I. General Provisions
Section 3-4.10. Purpose of Provisions.

A purchasing system for the City of Santa Maria is adopted to establish efficient procedures for securing supplies, services, specified construction and operations work, and equipment at the lowest possible cost commensurate with quality requirements; to exercise positive financial control over purchases; to clearly define authority and accountability for the purchasing function; to minimize the written documentation, administrative actions and expense of processing purchase transactions; and to assure the quality of purchases made on behalf of the City. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.11. Purchasing Authority Designated – Powers and Duties.

The City Manager, or his or her designated representative, shall be the Purchasing Authority. The Purchasing Authority function shall include the following powers and duties:
(a) To develop and prescribe, for the departments, such administrative policies, forms and files as may be reasonably necessary for the internal management and operations of these purchasing procedures; (b) To negotiate, purchase, and contract for supplies, services, specified construction and operations work, and equipment in accordance with purchasing procedures prescribed by this chapter, and such other rules and regulations as shall be prescribed by the City Council;
(c) To act to procure the needed quality in supplies, services, and equipment at minimum expense; and (d) Endeavor to obtain as full and open competition as possible on all purchases. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.12. Purchasing Guidelines.

In addition to the provisions of this chapter, the City Manager shall prepare and implement a guideline of purchasing policies and procedures. Said procedures may be amended, as needed, by the City Manager to address operational issues as they arise. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.13. Bidding Procedures.

The purchase of supplies, services, equipment, as well as operations and construction projects whose cost does not exceed the limit for informal bidding referenced in Chapter 8 -16 of this Code, shall be by bid procedures set forth in this Chapter. Such procedures may be dispensed with, at the discretion and judgment of the Purchasing Authority as to the best interests of the City, as follows:
(a) When the amount to be expended is less than the minimum bid requirement stated in the Purchasing Guidelines;
(b) When an emergency requires an order be placed with the most expedient available source of supply; (c) When the item(s) may be obtained from only one vendor or supplier; (d) When uniform specifications or standards have been established for the item(s); (e) When the purchase may be made cooperatively with one, or more, other units of government; (f) When it is reasonably necessary for the preservation or protection of public peace, health, safety, or welfare of persons or property; or
(g) When the City’s need is of an indeterminate nature and a request for proposal will result in a favorable and efficient comparison of supplies, equipment, and/or services, or (h) When the terms of law require use of another procurement procedure. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.14. Consultant Contract Authority.

The restrictions and provisions of this chapter shall not apply to contracts involving the acquisition of professional or specialized services such as, but not limited to, architects, attorneys, engineers, and other specialized consultants. Selection for such services will be made by an evaluation of proposals solicited from capable professionals, when the cost of the work to be performed falls within the “formal process” range specified in the Purchasing Guidelines. This section shall not prohibit the Purchasing Authority from requiring proposals for work with an estimated cost of less than the Purchasing Guidelines specified amount if, in the discretion of the Purchasing Authority, selection based upon the evaluation of proposals would better service the interest of the City. (Ord. 2007- 02, eff. 4/19/07)
Attachment A

Page 84 of 127 ends

A-2

Section 3-4.15. Determination of Lowest Responsible Bidder.

In addition to the bid or quotation price, the criteria for determining the lowest responsible bid or quotation, shall include, but not be limited to, the following:
(a) The character, integrity, reputation, judgment, experience, and efficiency of the bidder, which may include an analysis of previous work performed for the City;
(b) The ability of the bidder to perform the contract, or provide the supplies, equipment or services required, within the time specified, without delay or interference; (c) The ability of the bidder to provide future maintenance, repair parts, and replacement of purchased equipment or supplies;
(d) Compliance by the bidder with federal acts, executive orders and state statutes governing nondiscrimination in employment; and
The results of any evaluation relating to performance and price, such as testing, lifecycle costing, and analysis of service, maintenance and technical data. (Ord. 2007-02, eff. 4/19/07) Article II. Open Market Purchase Procedure
Section 3-4.20. Purchase Authorization.

The purchase of supplies, services, equipment, as well as operations and construction projects having an estimated value falling within the “open market” range specified in the Purchasing Guidelines, may be made by the Purchasing Authority without observing the formal contract procedures set out in Article III of this chapter. (Ord. 2007-02, eff. 4/19/07)
Section 3-4.21. Solicitation of Quotations.

The Purchasing Authority shall solicit, either by verbal or written request, quotations from prospective sellers, vendors, suppliers or contractors. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.22. Retention of Quotations.

Written quotations and notes of oral quotations shall be submitted to the Purchasing Authority for safekeeping.

The written quotations and notes of oral quotations shall be retained as provided in the City of Santa Maria Document Retention Schedule. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.23. Required Number of Quotations.

Open market purchases shall be based, whenever reasonably possible, on at least three quotations. (Ord. 2007- 02, eff. 4/19/07)

Section 3-4.24. Rejections of Quotations.

The Purchasing Authority may reject:
(e) Any quotations which fail to meet the specific purchase requirements in any respect; or (f) All quotations, for any reason whatsoever, and may invite new quotations.

Nothing in this section is intended to grant the Purchasing Authority the ability to arbitrarily accept a quotation which substantially deviates from the quotation solicitation, or to reject any quotation for arbitrary reasons. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.25. Award of Purchase Orders.
(a) The Purchasing Authority in its discretion may negotiate terms for a purchase order when two or more, lowest reasonable quotations are tied and the public interest will not permit the delay of soliciting new quotations. (b) The sellers, vendors, suppliers, and contractors who maintain places of business located within the limit of the City shall be given preference if quality, price, service, and all other relevant factors are equal; or (c) If no quotations that conform to the solicitation are received, the purchasing authority may make the required purchase without further notice. (Ord. 2007-02, eff. 4/19/07) Article III. Formal Contract Procedure
Section 3-4.30. Purchase Requirements.

The purchases and contracts for supplies, services, equipment, and construction projects, except as otherwise provided in this chapter, which are equal to or in excess of “formal bidding” requirement amount specified in the Attachment A

Page 85 of 127 ends

A-3

Purchasing Guidelines, shall be by written contract with the lowest responsible bidder pursuant to the procedures prescribed in the article. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.31. Notice Inviting Bids.

A notice inviting bids shall be issued, shall include a general description of the articles or services to be purchased, shall state the location where bid forms and specifications may be secured, shall state the time and place of the opening of the bids, and;
(a) The notices inviting bids shall be published at least ten (10) days before the date of opening of bids.

Notices shall be published at least once in a newspaper of general circulation, printed, and published in the City of Santa Maria;
(b) The Purchasing Authority shall also solicit sealed bids from all responsible prospective bidders. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.32. Bidders’ Security Requirements.

Bidders’ security may be required when deemed necessary by the Purchasing Authority. Bidders shall be entitled to a return of the bid security. However, a successful bidder shall forfeit the bid security upon refusal or failure to execute a contract within fifteen days after notice of award of that contract, unless the City is responsible for the delay. The contract may be awarded to the next lowest responsible bidder upon the refusal or failure of the successful bidder to execute the contract within the time herein prescribed. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.33. Bid Opening and Retention.

Sealed bids shall be opened in public at the time and place stated in the notice inviting bids. A tabulation of all bids received shall be made available for public inspection until the award of a contract. All bids shall be retained on file for the period specified in the City of Santa Maria Document Retention Schedule. (Ord. 2007 -02, eff. 4/19/07)

Section 3-4.34. Rejection of Bids.

The Purchasing Authority may reject:
(a) Any bid that fails to meet the bidding requirements in any respect; or (b) All bids, for any reason, and may readvertise for new bids or abandon the purchase.

Nothing in this section is intended to grant the Purchasing Authority the ability to arbitrarily accept a bid which substantially deviates from the bid solicitation, or to reject any bid for arbitrary reasons. (Ord. 2007- 02, eff. 4/19/07)

Section 3-4.35. No Bids Received.

If no bids are received, the purchase may be made through negotiated contract or other process as outlines in the Purchasing Guidelines. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.36. Award of Contract.

A contract will be awarded by the Purchasing Authority to the lowest responsible bidder, except as follows:

The Purchasing Authority in its discretion may negotiate terms for an award when two or more, lowest reasonable bids are tied and the public interest will not permit the delay of readvertising for bids. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.37. Bond Requirements of Successful Bidder.

The Purchasing Authority may require as a condition of executing a contract on behalf of the City, a performance bond or a labor and material bond, or both, in such amounts as the purchasing authority shall determine appropriate to protect the best interest of the City. The form and amounts of such bond(s) shall be described in the notice inviting bids. (Ord. 2007-02, eff. 4/19/07)
Attachment A

Page 86 of 127 ends

A-4

Article IV. Payment Procedure

Section 3-4.40. Requirements for Payment.

All purchases exceeding the minimum dollar limit, as specified by the Purchasing Guidelines, shall be made by requisition, or other prescribed document, signed by the Purchasing Authority and paid by warrant signed by the City Treasurer. Payment will only be made upon the satisfaction of the Administrative Services Director that:
(a) Sufficient budget has been appropriated for the purchase; (b) The expenditure is in accordance with budget authority; and (c) The proposed expenditure is legal. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.41. Warrant Preparation Requirements.

The Department of Administrative Services shall prepare a warrant after receiving properly completed accounting documents as prescribed by the Administrative Services Director and the Purchasing Authority. Such accounting documents include, but are not limited to: purchase authorization, valid accounting numbers, purchase orders when applicable, receiving reports, and vendor invoices. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.42. Payment Date.

The Administrative Services Director shall determine and assign the dates of warrant preparation, the frequency of which shall be no less than twice each month. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.43. Warrant Signature.

The City Treasurer’s signature shall appear on each warrant, which shall be honored if sufficient monies are available in the City’s account. (Ord. 2007-02, eff. 4/19/07) Attachment A

Page 87 of 127 ends

A-5

CHAPTER 8-16 PUBLIC PROJECTS

Section 8-16.01. Public Projects.

Expenditures for public projects, as defined by Public Contract Code Section 22030 (hereinafter “Act”) and in accordance with the limits listed in Section 22032 of the Act, may be let in accordance with Sections 22000 et seq. of the Public Contract Code.

Section 8-16.02. Informal bid procedures.
(a) Informal bidding. Public projects as defined by the Act and in accordance with the limits as set forth from time to time by the State Controller pursuant to Public Contract Code §22032 or successor section, may be let to contract using the informal bidding procedures as set forth in Section 22032 and following. (b) Contractors list. A list of contractors shall be developed and maintained in accordance with the provisions of Section 22034 of the Public Contract Code and criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission (hereinafter “Commission”). (c) Notice inviting informal bids. Where a public project is to be performed which is subject to the provisions of this section, a notice inviting informal bids shall be mailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with subsection (b), and to all construction trade journals as specified by the Commission in accordance with Section 22036 of the Public Contract Code.

Additional contractors and/or construction trade journals may be notified at the discretion of the department/agency soliciting bids; provided, however:
(1) If there is no list of qualified contractors maintained by the City for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the Commission.
(2) If the product or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors.
(d) Award of contracts. The City’s Purchasing Authority and the Director of Public Works/Engineering are each authorized to award informal contracts pursuant to this section. (Ord. 93-34, eff. 01/20/94; Ord. 2002- 05, eff. 7/18/02)

Section 8-16.03. Wages; Public Works Projects.
(a) In every contract for the performance of labor on public works projects, eight (8) hours shall constitute a day’s work, and the contractor and all subcontractors under him shall pay their employees for the work, a salary or wage at least equal to the prevailing salary or wage for the same quality of service rendered to private persons, under similar employment in the City.
(b) The City may, consistent with law and as a municipal affair, award contracts for budgeted maintenance of public works to the lowest responsible bidder without following requirements of state law applicable to general law cities and otherwise applicable to chartered cities. (Ord. 2000-09, eff. 7/18/00; Ord. 2004 -01, eff. 2/20/04)
Attachment A

Page 88 of 127 ends

Santa Maria City CouncilJune 17, 2025

Santa Maria City Council
June 17, 2025