Agenda — Santa Maria City Council, July 1, 2025 (part 2 of 3)

ORDINANCE NO. 2025-03

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA,

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”

WHEREAS, the City Council of the City of Santa Maria, California, at their June 3, 2025, meeting approved the methodology for setting fees for recreation programs and services; and

WHEREAS, the adoption of this methodology presents the opportunity to revise the process by which fees are set for these programs and services; and

WHEREAS, 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” of the Santa Maria Municipal Code provide the authorities granted to the Recreation and Parks Commission by the City Council, and

WHEREAS, the Recreation and Parks Commission has reviewed and requests the City Council’s approval of the proposed amendments to the Sant a Maria Municipal Code, and

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

SECTION 1 . Title 2 “Administration,” Chapter 2 -14 “Recreation and Parks Commission,” Section 2-14.06 “Recommendations to Council: Powers Generally” of the Santa Maria Municipal Code is hereby amended to read as follows:

Section 2-14.06 Recommendations to Council: Powers Generally.

The Recreation and Parks Commission may make such recommendations to the City Council as it deems necessary concerning the organization, promotion, conduct and management of programs of community recreation in the City and the establishment of systems of playgrounds and recreation, and the acquisition, improvement, maintenance, operation and management of recreation facilities within or without the territorial limits of the City, as well as parkland dedications and subdivision in -lieu fees, residential development taxes, and urban forestry. The Recreation and Parks Commission shall have the power and authority to hold public hearings and meetings and to conduct investigations and surveys for the purpose of securing facts and data concerning the matters enumerated in this section. The Recreation and Parks shall have the authority to

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hold public hearings related to fees charged for recreational programs and services provided by the department and may impose fee adjustments as they find necessary.

Such adjustments shall be subject to review by City Council as provided in Section 10 -

1.02. The Recreation and Parks Commission shall have only such powers as are expressly granted by this chapter or as are granted by motion of the City Council.

The Recreation and Par ks Commission shall also perform the duties provided in Chapter 8-3 (Historical Landmarks).

SECTION 2 . Title 10 “Recreation and Parks,” Chapter 10 -1 “Administration,” Section 10-1.02 “Adoption of Regulations” of the Santa Maria Municipal Code is hereby amended to read as follows:

Section 10-1.02. Adoption of fees and regulations

The Recreation and Parks Commission is authorized to adopt such reasonable regulations for the safe use of City parks as it deems necessary; provided, that the adoption of each such regulation shall be reported to the City Council at its first regular meeting next following the adoption of the regulation. At the meeting the City Council may consider the regulation and, if it deems the regulation unnecessary, unreasonable or not in the best interest of the City and of the public, may order the regulation repealed and voided forthwith, by motion of a majority of the Council, and the regulation shall be then and there null and void; provided, that such action shall not affect the validity of such regulations, or actions based thereon, prior to such avoidance and repeal by the Council.

Proposed updates and changes to 10 -1.02 authorize the Recreation and Parks Commission to enact fees and regulations.

The Recreation and Parks Commission is authorized to adopt such reasonable fees and regulations for the safe and enjoyable use of City parks and recreation programs/services, as it deems necessary; the fee or regulation shall be enforced 30 days after adoption. Any adopted fee or regulation shall be reported to the City Council at its next regular meeting following the adoption of the fee or regulation by the Commission.

At that meeting, the City Council may consider the fee or regulation for its appropriateness and may find the fee or regulation unnecessary, unreasonable, or not in the best interest of the City and of the public and may order the fee or regulation to be immediately repealed.

SECTION 3. The Chief Deputy City Clerk is hereby authorized t o 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.

SECTION 4. This Ordinance shall be in full force and effect thirty (30) days after its passage. Within fifteen days following its passage, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in accordance with State

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Law; or when deemed necessary due to the length or complexity of the Ordinance, cause a summary of the Ordinance to be prepared and published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted. If a summary is published at least five days prior to the City Council meeting at which the proposed Ordinance is to be adopted, then within 15 days after adoption of the Ordinance the City Clerk shall publish a summary of the Ordinance with the names of those City Counci l Members voting for and against the Ordinance and shall post a certified copy of the full text of such adopted Ordinance along with the names of those City Council Members voting for and against the Ordinance.

INTRODUCED at a regular meeting of the City Council held on the 17th day of June 2025, and PASSED AND ADOPTED at a regular meeting held on the 1st day of July 2025, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Chief Deputy City Clerk

Mayor

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

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Donna G, Schwartz, Chief Deputy City Clerk

DATE: July 1, 2025

SUBJECT: Annual Appointments to City Boards, Commissions, and Committees – July 2025

Description:

The City Council will consider making appointments to boards, commissions, and committees.

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.

RECOMMENDATIONS:

Block Grants Advisory Committee
The Mayor and each Councilmember will have the opportunity to make one nomination each for a term of three years ending July 2028 . Councilmember Soto will have an additional opportunity to make one nomination to an unexpired term ending July 2027.

Incumbents: Nomination to be made by:

Rosalie Marquez (reapplied) Councilmember Flores Denise Martinez (reapplied) Councilmember Aguilera-Hernandez Tim Seifert (reapplied) Mayor Patino
Jason Tamura (reapplied) Councilmember Escobedo Vacant Councilmember Soto

Unexpired term ending July 2027:

Vacant Councilmember Soto

Downtown Revitalization Committee
2 The Mayor will have the opportunity to make two appointments for a term of two years ending July 2027 and two appointments for two unexpired terms ending July 2026 to be ratified by the City Council.

Incumbent: Nomination to be made by:

Councilmember Soto Mayor Patino
Councilmember Aguilera-Hernandez Mayor Patino

Unexpired terms ending July 2026:

Planning Commissioner Esau Blanco Mayor Patino
Recreation & Parks Commissioner Rebecca Carey Mayor Patino

Library Board of Trustees
The Mayor will have the opportunity to make two appointments to be ratified by the City Council for a term of three years ending July 2028.

Incumbent: Nomination to be made by:

Charlie Baker-Boyd (reapplied) Mayor Patino
Helen Galvan (reapplied) Mayor Patino

Recreation and Parks Commission
Councilmember Soto will have the opportunity to make one appointment to be ratified by the City Council for an unexpired term ending January 2027.

Unexpired term ending January 2027: Nomination to be made by:

Vacant Councilmember Soto

Attendance Reporting:

Members of the City’s Boards, Commissions, and Committees serve an important role in advising staff and the City Council on matters that affect policy and issues that affect the future of the community; therefore, Members’ attendance is key to the work these Boards, Commissions, and Committees perform. Members serve in their capacity as Members at the pleasure of the City Council pursuant to Santa Maria Municipal Code (SMMC) Section 2-16.02. As established by SMMC 2 -16.01, Members are required to attend meetings regularly and not miss 25 percent of the regular meetings in a calendar year, or they would be deemed to have resigned upon acceptance by t he City Council. While the Municipal Code focuses on the Planning Commission, Recreation and Parks Commission, Board of Appeals, and Library Board, it is the expectation that all City Boards and Committee Members participate and attend meetings in the same manner as those Boards, Commissions, and Committees defined in the Municipal Code. Attendance details are included for the City Council’s reference as Attachments A, B, and C.

3 BACKGROUND:

Members of the Block Grants Advisory Committee, Library Board of Trustees and Recreation & Parks Commission , are required by the Political Reform Act (Govt. Code Section 81000 -91014), and the City’s Conflict of Interest Code, to file Statements of Economic Interest, Form 700, disclosing personal assets and income within 30 days of appointment, annually thereafter, and upon leaving office. Board Members must also disqualify themselves from participating in decisions which may affect their personal economic interests. Statements of Economic Interests are public documents and may be inspected by any member of the public and copied if requested. The Fair Political Practices Commission (FPPC) is the State agency which interprets the law’s provisions.

Copies of the applications may be obtained from the City Clerk's office upon request.

Alternative(s)
A Councilmember could decide to withhold their nomination to a Board, Commission, or Committee until such time as additional applications could be received or there is sufficient opportunity for the Councilmember to make contact with the existing applicant(s) to be considered for nomination.

Impact to the Community
Having members of the public serve on the City’s Advisory Bodies provides a positive impact to the community, enabling the City to obtain input from all segments of the community and ensures that the community receives information regarding the activities of the City’s Boards, Committees, and Commissions.

ATTACHMENT(S)
A. Attendance Log 2024 - BGAC
B. Attendance Log 2025 – BGAC
C. Attendance Log 2024-25 – Dowtown Revitalizaton Committee, and Library Board of Trustees

1/8/2024 1/16/2024 - 1/25/2024 2/12/2024 2/15/2024 3/11/2024 4/8/2024 5/13/2024 6/10/2024 7/8/2024 7/22/2024 8/12/2024 9/9/2024 10/14/2024 11/11/2024 12/9/2024 Advisory Committee
Member Appointed by: Term
Expires
Regular
Meeting Site Visits * Deliberations
1 of 2 *
Deliberations
2 of 2*
Regular
Meeting
Regular
Meeting

CANCELLED
Regular
Meeting
Regular
Meeting
Regular
Meeting

CANCELLED
Special
Meeting
(Community
Needs)
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Carla Marrel Cordero 7/1/2027 X X
Denise Martinez Aguilera-Hernandez 7/1/2025 X X X X X X X X EXCUSED X LATE Esther Acosta Escobedo 7/1/2026 X X X X X X X X X EXCUSED X Isaac Berumen Cordero 7/1/2026 X X X X X X EXCUSED ABSENT X EXCUSED X Jason Tamura Escobedo 7/1/2025 X X X X X X X EXCUSED X X ABSENT Mackenzie Greeley Patino 7/1/2026 X X X X ABSENT X X X X X X Monica Gonzalez Aguilera-Hernandez 7/1/2027 X X
Patricia Solorio Soto 7/1/2024 LATE X EXCUSED X ABSENT X X X X X ABSENT Robert Doyle Patino 7/1/2027 X X X X X X X X X X X
Rosalie Marquez Cordero 7/1/2025 X X X X X X X X EXCUSED X X Sally Lopez Aguilera-Hernandez 7/1/2026 X X X X ABSENT EXCUSED X EXCUSED ABSENT X X Tammie Castillo-Shiffer Soto 7/1/2026 LATE X X ABSENT X ABSENT X X X ABSENT X Tim Seifert Patino 7/1/2025 X X X X X EXCUSED X X X X X None
Audrey Bustamante Waterfield / Aguilera-Hernandez 7/1/2024 ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT Jennifer Camacho Tiburcio Escobedo 7/1/2024 EXCUSED X X X X X X ABSENT ABSENT Ronald Jacobs Cordero 7/1/2024 X X X X X X X ABSENT X
Vacant Soto 7/1/2025
Updated 12/10/24 by RR
First Absence/Excused
Second Absence/Excused
Third Absence/Excused
In Violation of Attendance Bylaws
Excused means the committee member let us know ahead of time that they would not be able to attend Absent means the committee member did not inform Staff of their absence * Absences during site visits and deliberations will count as two absences if missed City of Santa Maria
Blocks Grants Advisory Committee Attendance Log 2024

RESIGNED MEMBERS

VACANCIES

TERM EXPIRED
APPOINTED 8/20/2024
APPOINTED 8/20/2024
Attachment A

ATTACHMENT A

1/13/2025 1/21/2025 - 1/30/2025 2/10/2025 2/12/2025 3/10/2025 4/14/2025 5/12/2025 6/9/2025 7/14/2025 8/11/2025 9/8/2025 10/13/2025 11/10/2025 12/8/2025 Advisory Committee
Member Appointed by: Term
Expires
Regular
Meeting Site Visits * Deliberations
1 of 2 *
Deliberations
2 of 2*
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Regular
Meeting
Carla Marrel Flores (formerly Cordero) 7/1/2027 X X X X X Denise Martinez Aguilera-Hernandez 7/1/2025 X X X X ABSENT Esther Acosta Escobedo 7/1/2026 X X X X X
Isaac Berumen Flores (formerly Cordero) 7/1/2026 X X X X X Jason Tamura Escobedo 7/1/2025 X X X X X
Mackenzie Greeley Patino 7/1/2026 X X X X ABSENT
Monica Gonzalez Aguilera-Hernandez 7/1/2027 X X X X ABSENT Robert Doyle Patino 7/1/2027 X X X X X
Rosalie Marquez Flores (formerly Cordero) 7/1/2025 X X X X X Sally Lopez Aguilera-Hernandez 7/1/2026 ABSENT X X X X
Tammie Castillo-Shiffer Soto 7/1/2026 ABSENT X X ABSENT X Tim Seifert Patino 7/1/2025 X X X X EXCUSED
Patricia Solorio Soto 7/1/2024 ABSENT X ABSENT ABSENT

Vacant Soto 7/1/2025
Vacant Escobedo 7/1/2027
Updated 5/13/25 by RR
First Absence/Excused
Second Absence/Excused
Third Absence/Excused
In Violation of Attendance Bylaws
Excused means the committee member let us know ahead of time that they would not be able to attend Absent means the committee member did not inform Staff of their absence * Absences during site visits and deliberations will count as two absences if missed City of Santa Maria
Blocks Grants Advisory Committee Attendance Log 2025

RESIGNED MEMBERS

VACANCIES

TERM EXPIRED
Attachment B

ATTACHMENT A
Attachment C
Meetings Charlie Baker-Boyd Helen Galvan Hunter Jameson Sara Lougee Laura Selken August 13, 2024 ABSENT PRESENT PRESENT PRESENT PRESENT
November 12, 2025 PRESENT PRESENT PRESENT PRESENT PRESENT February 11, 2025 ABSENT ABSENT PRESENT PRESENT PRESENT May 13, 2025 CANCELLED
Meetings Gloria Soto Maribel Aguilera-Hernandez Rebecca Carey Esau Blanco February 12, 2025 PRESENT PRESENT PRESENT PRESENT
May 29, 2025

LIBRARY BOARD OF TRUSTEES

DOWNTOWN REVITALIZATION COMMITTEE

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Donna G Schwartz, Chief Deputy City Clerk

DATE: July 2, 2025

SUBJECT: Appointment of Two Councilmembers to the Newly Established City Council Budget Ad Hoc Committee

Description:

The City Council will consider making appointments to the newly established City Council Budget Ad Hoc Committee.

RECOMMENDATION:

City Council to appoint two councilmembers to the newly established City Council Budget Ad Hoc Committee.

BACKGROUND:

At the June 3, 2025, City Council meeting, during the Fiscal Year (FY) 2025 -26 budget update it was proposed to return to the City Council with a Resolution appointing a budget ad hoc committee of the Council to participate in a budget rebalancing initiative. The City Council adopted an amended FY 2025 -26 budget that used $26.1 million of short -term funding sources (budget reserve funds) to balance the budget. The “Rebalancing Initiative Plan” outlined several next steps which included the creation of a bud get ad hoc committee to participate in the review of the budget along the way.

At the June 17, 2025, City Council meeting, City Council adopted Resolution 2025 -104, establishing a Budget Ad Hoc Committee and to appoint two members of the city council to p articipate in the committee. Meetings will be scheduled around participants ’ work schedules to ensure participation.

Advisory committees that are composed solely of less than a quorum of the legislative body, and which do not have continuing subject matter jurisdiction, or a meeting schedule fixed by formal action, are not considered legislative bodies under the Brown Act.

Therefore, such Ad Hoc Committees are not subject to the Brown Act’s open meeting requirements.

2 Alternative(s)
City Council could dec ide to withhold their appointments to the Ad Hoc Committee and consider appointing at a later date.

Impact to the Community
Having members serve on the City Council Budget Ad Hoc Committee provides a positive impact to the community, enabling the city to obtain input from all segments of the community and ensures that the community receives information regarding the activities of the City’s Boards, Committees, and Commissions.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: July 1, 2025

SUBJECT: Adoption of Resolution Approving Issuance of Revenue Bonds Under the Requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing Regarding Community Health Centers of the Central Coast

Description:

The City Council will consider adopting a Resolution approving the issuance of Revenue Bonds by the California Statewide Communities Development Authority to provide financing regarding the Community Health Centers of Central Coast, Inc. during the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended.

RECOMMENDATION:

Adopt a Resolution Approving the Issuance of Revenue Bonds by the California Municipal Finance Authority in an Aggregate Principal Amount Not to Exceed $47,000,000 for the Refinancing of Certain Outstanding Obligations and Financing of the Acquisition, Design, and Construction of Certain Real Property Located in the City of Santa Maria, to be Utilized by Community Health Centers of the Centr al Coast, Inc., and Certain Other Matters Relating Thereto.

BACKGROUND:

Community Health Centers of the Central Coast, Inc. (the “Borrower”) has requested that the California Statewide Communities Development Authority (“CSCDA”) serve as the municipal issuer of tax-exempt, revenue bonds in an aggregate principal amount not to exceed $47,000,000 (the “Bonds”).

The proceeds of the Bonds will be used for the purpose of making a loan to the Borrower to enable the Borrower to finance the acquisition, const ruction, and development of a 55,000 square foot building being located at 2100 S. Blosser Road, Santa Maria, California, a portion of which building will be operated as a new PACE program facility providing health and mental health services to senior citi zens; renovation of the 2100 S.

Blosser Building ; and to acquire and renovate an approximately 30,000 square foot 2 building located at 1550 E. Main Street, Santa Maria, California for a medical clinic (the “1550 E. Main Street Building”), which will be owned and operated by the Corporation as a medical clinic (primary care, dental, specialists response, and potentially behavioral care services) (the “1550 E. Main Street Project”; and, together with the 2100 S. Blosser Project, the “Project”).

DISCUSSION:

Community Health Centers of the Central Coast, Inc., a California nonprofit public benefit corporation and an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 (the “Corporation”), has requested that the Authority partic ipate in the issuance of revenue bonds in an aggregate principal amount not to exceed $47,000,000 (the “Bonds”), of which:

(a) Approximately $6,000,000 will be used to refinance a loan (the “Loan”) made by Mechanics Bank to the Corporation in 2021, the proceeds of which were used to finance the acquisition of a 55,000 square foot building being located at 2100 S.

Blosser Road, Santa Maria, California, a portion of which building will be operated as a new PACE program facility providing health and mental health services to senior citizens (the “2100 S. Blosser Building”);
(b) Approximately $14,000,000 will be used to renovate the 2100 S. Blosser Building (the “2100 S. Blosser Project”); and
(c) Approximately $16,000,000 will be used to acquire and renovate an approximately 30,000 square foot building located at 1550 E. Main Street, Santa Maria, California (the “1550 E. Main Street Building”), which will be owned and operated by the Corporation as a medical clinic (primary care, dental, specialists response, and potentially behavioral care services) (the “1550 E. Main Street Project”; and, together with the 2100 S. Blosser Project, the “Project”).

In order for all or a portion of the Bonds to qualify as tax-exempt Bonds, the City of Santa Maria must conduct a public hearing providing for the members of the community an opportunity to speak in favor of or against the use of tax -exempt Bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community . Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the Project.

California Municipal Finance Authority (CMFA)
The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural, and community development through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities, including the City of Santa Maria, have become members of CMFA.

The CMFA was formed to assist local governments, non -profit organizations, and businesses with the issuance of taxable and tax -exempt Bonds aimed at improving the 3 standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financing.

The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City wi ll have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project.

All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not Bonds of the City or the State of California but are to be paid for solely from funds provided by the Borrower.

Participation by the City in the CMFA will not impact the City’s appropriations limits and will not constitute any type of i ndebtedness by the City. Outside of holding the TEFRA hearing, adopting the required resolution, no other participation or activity of the City or the City Council with respect to the issuance of the Bonds will be required.

FISCAL CONSIDERATIONS:

There is no direct or indirect financial impact to the City as a result of this proposed financing. The CMFA will issue tax -exempt bonds on behalf of the Project. The tax - exempt bonds are payable solely out of the revenues derived by the Borrower from the applicable project. No financial obligations are placed on the City for project financing costs or debt repayment.

The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foun dation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the s upport of local charities. With respect to the City of Santa Maria, it is expected that a portion of the issuance fee attributable to the City (estimated to be approximately $11,000) will be granted by the CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City.

IMPACT TO THE COMMUNITY:

Approving the issuance of the tax -exempt bonds benefits the community by reducing financing costs to acquire and renovate health care facilities which will allow the borrower to continue to providing quality health care services to the community.

ATTACHMENT(S)
A. Resolution
B. Public Notice Published June 20, 2025

ATTACHMENT A

4927-2706-5149v5/200240-0019
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF SANTA MARIA, CALIFORNIA

APPROVING THE ISSUANCE OF REVENUE BONDS BY THE

CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $47,000,000

FOR THE REFINANCING OF CERTAIN OUTSTANDING

OBLIGATIONS AND FINANCING OF THE ACQUISITION, DESIGN,

AND CONSTRUCTION OF CERTAIN REAL PROPERTY LOCATED

IN THE CITY OF SANTA MARIA, TO BE UTILIZED BY COMMUNITY HEALTH CENTERS OF THE CENTRAL COAST, INC.,

AND CERTAIN OTHER MATTERS RELATING THERETO

WHEREAS, the California Municipal Finance Authority (the “Authority”) has informed the Council that the Authority is authorized to issue and sell revenue bonds for the purpose, among others, of financing or refinancing the acquisition, design, and construction of capital projects; and
WHEREAS, the Authority has informed the Council that Community Health Centers of the Central Coast, Inc., a California nonprofit public benefit corporation and an organization described in section 501(c)(3) of the Internal Revenue Cod e of 1986 (the “Corporation”), has requested that the Authority participate in the issuance of revenue bonds in an aggregate principal amount not to exceed $ 47,000,000 (the “Bonds”), of which:

1. Approximately $6,000,000 will be used to refinance a loan ( the “Loan”) made by Mechanics Bank to the Corporation in 2021, the proceeds of which were used to finance the acquisition of a 55,000 square foot building being located at 2100 S outh Blosser Road, Santa Maria, California, a portion of which building will be operated as a new PACE program facility providing health and mental health services to senior citizens (the “2100 S outh Blosser Building”); and

2. Approximately $14,000,000 will be used to renovate the 2100 S outh Blosser Building (the “2100 South Blosser Project”); and

3. Approximately $16,000,000 will be used to acquire and renovate an approximately 30,000 square foot building located at 1550 E ast Main Street, Santa Maria, California (the “1550 E ast Main Street Building”), which will be owned and operated by the Corporation as a medical clinic (primary care, dental, specialists response, and potentially behavioral care services) (the “1550 East Main Street Project”; and, together with the 2100 S outh Blosser Project, the “Project”); and
WHEREAS, Corporation will be the owner of the Project; and

2 4927-2706-5149v5/200240-0019
WHEREAS, The Corporation at its discretion may allocate up to the entire maximum principal amount of proceeds of the Bonds and/or Corporation equity to finance or refinance all, a part, or none, of each portion of the Project at the various locations; and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the “Code”), the issuance of the Bonds by the Authority must be approved by the “applicable elected representative” required to approve the issuance of Bonds under Section 147(f) of the Code; (collectively, the “Projects”); and
WHEREAS, the Projects are located within the territorial limits of the City; and WHEREAS, the Council is the elected legislative body of the City and is one of the “applicable elected representatives” required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of section 147(f) of the Code an d the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and WHEREAS, pursuant to sect ion 147(f) of the Code, the Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.

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

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The Council hereby approves, solely for the purposes stated in this resolution, the issuance of the Bonds by the Authority. It is the purpose and intent of the Council that this resolution constitutes approval of the issuance of the Bonds by the Authority, for the purposes of (a) section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the ar ea in which the Projects are located, in accordance with said section 147(f) and (b) Section 4 of the Agreement.

SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds.

SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any refinancing of the Projects; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation or operation of the Projects; (iii) make any contribution or advance any funds whatsoever

3 4927-2706-5149v5/200240-0019
to the Authority; (iv) take any further action with respect to the Authority or its membership therein; or (v) make any investigations, representations, or disclosures in connection with the Bonds.

SECTION 5. The officers of the City, including by way of exam ple and not as a limitation, the Mayor, the City Manager, the Finance Director, and the City Clerk, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessa ry or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.

SECTION 6. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to:

Vanessa S. Legbandt
Stradling Yocca Carlson & Rauth LLP
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
and to
Ronald E. Lee, Esq.

Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111
SECTION 7 . The Chief Deputy City Clerk is hereby authorized to make minor 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 Atto rney concerning any changes deemed necessary.

SECTION 8. This resolution shall take effect immediately upon its adoption.

///

4 4927-2706-5149v5/200240-0019
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 1st day of July 2025.

ATTEST:

Chief Deputy City Clerk

Mayor

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

Proof of Publication
(201,5.5 C.C.P)
State of California
Santa Maria Times
Donna Schwartz
110 E. Cook Street
Santa Maria, CA, 93454
USA
(805) 361-9701
I am the Authorized Agent of the printer of the Santa Maria Times, newspaper of general circulation, printed and published in the city of Santa Maria, County of Santa Barbara, and which newspaper has been adjudged a newspaper of general circulation by the superior court of the County of Santa Barbara, State of California adjudication #463687.

That the notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
0612012025
I certify (or declare) under penalty of perjury that the foregoing is true and correct.

PUBLISHED ON: 0612012025
TOTAL AD COST:

FILED ON:
255.80
061201202s.

Dated at Santa Maria, CA
ms 2o\^ro1 -[^ne .2oZS
(
Santa Maria Times
PROOF OF PUBLICATION clwcouNcll

CITY OF SATITA MARIA

NOTICE OF PUBUC HEARING
NOTICE lS HEREBY GIVEN thal
the City Council ot the City ol Santa
Maria wll crnduct a public hearing
on Tuesday. July 1. 2025, at 5:3O

0.m., or ttereattor in th6 Council
Chambers, 110 Easl Cook Strool
Santa Maria, Calilornia, to consid€r
the lollowing:

A public hearing. as required by
section 147(ll ol he lnternal Reve-
nue Code ol 1 986, as arnended (the
r0ode') will be held with respect to
the proposed issuance bV the Cal-
ifornia Municipal Finance Aulhor
ity (the Authority') of its revenue
bonds in an amount not b exc€€d
$47.0OO,mO (the 'Bonds'J. The
Bonds will be issued as 'qualilied
501(cX3) bonds'under Section 145
of the Code. The proceeds of the
Bonds will b€ loaned by the Aulhor
ity to Community Health Centers ol
the C€ntral Coast. lnc.. a Calilornia
nonprolil public benefil corporatron
(the'Coporation") of which:
(a) Approximately 36,OOO.OOO will
be used to relinance a ban (the
'Loan') made by Mechanics Bank
to lhe Corporation in 2021, the pro-
ceeds ol which were used to tinanc€
the acquisition ol a 55.0oO square
foot building b€ing localed at 21m
S. Blosssr Road. Santa Maria. Cal-
ilornia. a oortion of which buildim
will be oderated as a new PACE
program lacility providing health
and mental health servacas to senior
er
(ci
b€
(tho'?100 S. Bloss€r Build-
will
2100 s.
?10O S. Bloss-
$16.mo,o@ will
and renovate an
lool
Main
Streel.
'1550
The gonds and ths obliaation to
pay principal ol and interesi th€reon
and any redemption premium wifi
regpect lhereto do not conslitute
indebtedness or an obliqalion ol the
City of Santa Maria. the Authoritv.
the State ol Calitornia or any politicii
subdivision th€reof. within the meaft
ing of any constitutional or statulory
debt limitation. or a charge againsl
the qeneral crodit or taxino povi€Is
of any ot lhem. The Bondt6hall b€
a limiled obligation ol the Authority,
payable solely trom cerlain r€ /enues
duly pledged lherebr and generally
representing amounts paid by th€
uo rp o ratton .

The lull Council Agenda Report lor
thls item will b€ available on the
City's website www.cityolsantam-
PH-TEFRA-Page 1ol2
the
or re-
or non€, of eactr
at the Erilus
be and

ATACHMENT B
on June 27. 2G25, after
PH-TEFRA - Page 2 of 2

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Alex Posada, Director of Recreation and Parks

DATE: July 1, 2025

SUBJECT: Landscape District Bid Award Follow up Information

Description:

The City Council will receive additional information regarding the award of a contract to provide landscape services Citywide.

RECOMMENDATION:

1. Receive and file additional information regarding the award of a contract to provide landscape services Citywide; or

2. Provide direction to staff.

BACKGROUND:

At the June 17, 2025, City Council meeting, the Recreation and Parks Department provided a recommendation to award a multi-year contract to J.D. Humann Landscaping Inc. to provide landscape services Citywide. By motion, the City Council directed staff to prepare an analysis comparing the cost proposed in this private contract bid to the cost for City employees performing the work. The following is a summary of City costs compared to the use of a private contractor.

DISCUSSION:

SPECIAL LANDSCAPE DISTRICTS COSTS - CONTRACTOR vs CITY WORKFORCE

JD HUMANN (NW
District) COST CITY (NW District) COST
Employee FTE = 4.5 $153,577.00 Employee FTE = 4.5 $500,854.00

JD HUMANN (NE District) COST CITY (NE District) COST
Employee FTE = 5 $455,679.00 Employee FTE = 5 $556,504.00

2 JD HUMANN (SW
District) COST CITY (SW District) COST
Employee FTE = 8 $653,090.00 Employee FTE = 8 $890,406.00

JD HUMANN (SE District) COST CITY (SE District) COST
*Employee FTE = 7 $605,111.00 Employee FTE = 7 $779,106.00

The side-by-side comparison was based on using those tasks, equipment, and personnel identified in the J.D. Humann bid.

The City would need to hire approximately 24.5 full time employees ( FTE’s) to provide the services outlined in the submitted proposal. This creates the most significant difference in the chart above. City costs are estimated at $2,978,870 vs $1,867,457 proposed b y the contractor, a difference of $1,111,413. It should be noted that the contractor’s pricing is based on an all -inclusive price of $.21 per square foot of landscaping. In comparison, the City’s per square foot rate would be approximately $.35.

In addit ion, the City would need to invest approximately $810,000 in upfront costs, including the purchase of trucks and trailers, a lawn mower, hand tools, and power tools needed to deliver the services. Also not included are the monthly fleet rental rates for mobile equipment, maintenance, and fuel.

The current District budgets have set aside approximately $1,870,000 to cover the cost of landscape maintenance contracts for Fiscal Year 2025-26. The City's costs far exceed the amount set aside for landscape maintenance services, while the contractors’ proposal falls within the allocated amount.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Alex Posada, Recreation and Parks Director

DATE: July 1, 2025

SUBJECT: Continued from the June 17, 2025, Regular City Council Meeting - Adoption of a Resolution Approving a Services Agreement with J.D.

Humann, Inc. for Citywide Landscape Maintenance Services

Description:

The City Council will consider approving a 36-month Services Agreement to J.D.

Humann, Inc. for Citywide landscape maintenance work.

RECOMMENDATION:

1. Adopt a Resolution approving a Services Agreement with JD Humann, Inc. for Citywide Landscape Maintenance Services; and

2. Authorize City Manager or designee to execute agreement; or

3. Reject all bids and direct staff to go back out for Request for Proposals.

BACKGROUND
On April 22, 2025, the City issued a Notice Inviting Sealed Requests for Proposals (RFP) for Citywide Landscape Maintenance Services. The basis of the RFP is to provide results- based landscape care for streetside landscaping, retention basins, parks, and plazas that are managed by the Parks Operations Division of the Recreation and Parks Department.

The RFP was posted on the Bids and Proposals page of the Public Works section of the City of Santa Maria’s website and published in the Santa Maria Times on April 22, 2025, and April 24, 2025.

DISCUSSION
The current City of Santa Maria Landscape Maintenance Services contract expires on June 30, 2025. After review of the forecasted budget, changing economic climate, and the continued need to care for landscaping th roughout Santa Maria, the city determined that it would be in the best interest of the city to seek out new service proposals. The 2025 RFP for Citywide landscape maintenance includes Landscape Maintenance Districts, Special Benefit Zones, retention basins, plazas, and parks.

2 The provision of landscape maintenance service is a dynamic service that requires the contractor to be accurate, flexible, and reactive to the customers of the Landscape Maintenance Districts, Special Benefit Zones, retention basins, plazas, and parks. The RFP process allows proposers to present their company’s best cost and practices to deliver services being requested by the City. Several factors in the proposal are considered, weighted, and evaluated, taking into account the City’s collective knowledge of services required, then a recommendation is made. Therefore, it is not necessarily the lowest proposal that is awarded the contract. The contractor considered for award is the one that presents the most cost-effective, concise, and complete information as part of their initial response packet. In this case, the city received four inquiries and four completed responses to the RFP. All were considered, as their proposal formats acceptably followed the RFP guidelines: The responses to the RFP are on file in the Department of Finance.

The evaluation team consisted of Scott Christian, Special Districts Supervisor, Neville Smeda, Business Manager, and Angela Oslund, Assistant Director of the Recreation and Parks Department. This rating t eam considered the information submitted by the contractors and ranked the proponents in the following areas: overall cost associated with the contract, landscape maintenance knowledge and experience, reference checks, staffing levels to perform the scope of services, and compliance with the bid instructions.

The team independently rated each proposer’s package for all evaluation criteria other than reference checks, and the average of the three was taken to be the final score.

Reference checks were conduct ed, and the top scores for each contractor were scored based on the reference’s ranking and added to the average score. The team reconvened to analyze the ranking against the known factors and presented the findings to Alex Posada, the Director of the Recr eation and Parks Department, who then made the final decision on the recommendation.

Each proposal was evaluated using a point formula and scored based on response to the RFP. The maximum rating scale was 100 points; the results are listed below. The annual cost comparison shown is based on the award of three of the four Landscape Maintenance Districts and their Special Benefit Zones.

Firm Name Overall Rating Cost per SF Annual Cost
JD Humann Landscaping, Inc. 84.35 $0.2100 $1,083,148.29 AllWeather Landscape Inc. 75.21 $0.1800 $928,412.82
Brightview Landscape Services, Inc. 71.60 $0.2211 $1,140,400.41 EMTS, Inc. (Elite) 56.84 $0.2510 $1,294,620.10

J.D. Humann Landscaping, Inc. scored the highest overall ratings. Although AllWeather Landscape Inc. presented the lowest overall square footage cost, J.D. Humann Landscaping, Inc. provided the most advantageous proposal to the city. J.D. Humann Landscaping, Inc. provided a comprehensive Quality Assurance/Quality Control Plan, identified all of their office and field staff by name and position to meet the level of service 3 identified in the contract, provided a detailed staffing plan, and provided lower “Extra Services” costs on all items than AllWeather Landscape Inc.

Staff recommends the City enter into a three (3) year contract agreement with J.D.

Humann Landscaping, Inc. based on the proposed costs and an annual CPI index review of appropriations, expenses, and mutual consent of both parties to renew for up to three (3) additional one (1) year terms.

The total contract award includes the Northwest Landscape District, Northeast Landscape District, Southwest Landscape District, and Extra Services up to $350,000.

TOTAL CONTRACT AWARD = $1,083,148.29 + $350,000.00 = $1,433,148.29

J.D. Humann Landscaping, Inc. , a California corporation, located in Santa Maria, has been in business for over 35 years, and has served the Santa Maria area since 1982.

J.D. Humann Landscaping, Inc. is the City’s current contractor and performs landscape maintenance services for the City’s Landscape Maintenance Districts and Special Benefit Zones. The City’s relationship with J.D. Humann Landscaping, Inc. has been excellent over the years, and their quality of work has met the level of service standards identifie d in the scope of work of their contract.

ALTERNATIVE
1) The City Council may choose not to reject all bids and have City staff re-bid the project.

FISCAL CONSIDERATION
The recommendation would authorize staff to work with J.D. Humann Landscaping, Inc. to provide landscape maintenance services at Landscape Maintenance Districts, Special Benefit Zones, retention basins, plazas, and parks for the amount of $1,433,148.29.

The city is authorized to levy and collect assessments for the purposes of maintaining the public landscaping at parks for the 4 Landscape Maintenance Districts and 20 Special Benefit Zones under the Landscaping and Lighting Act of 1972. There is sufficient funding in the anticipated revenues in both the Lands cape Maintenance District/Special Benefit Zone funds and in the General Fund for the FY 2025-26 to award this contract.

IMPACT TO THE COMMUNITY
Regularly scheduled landscape maintenance work keeps the city’s rights of way, street medians, parks, and open spaces thriving, reduces liability exposure, and helps keep the City looking its best for residents and visitors. Landscape turf, plants, shrubs, and trees provide the generation of oxygen, absorb CO 2 in the atmosphere, and help to mitigate urban flooding by storing rainwater.

ATTACHMENT(S)
A. Resolution- JD Humann Contract
B. Agreement for Services Citywide Landscape Maintenance Services Attachment A
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF SANTA MARIA, CALIFORNIA,

APPROVING A SERVICES AGREEMENT WITH
J.D. HUMANN, INC. FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES

WHEREAS, the City of Santa Maria is in need of securing Citywide landscape maintenance services; and

WHEREAS, on April 22, 2025, the City issued a Notice Inviting Sealed Request for Proposals (RFP) for the provision and service of landscape maintenance (RFP RP-2025- 01); and

WHEREAS, four companies submitted proposals and four proposals complied with the bid instructions, allowing them to proceed to the review; and

WHEREAS, City’s Purchasing Guidelines competitive proposals following the “Best Value” procedure, and Santa Maria Municipal Code §3-4 were followed; and

WHEREAS, J.D. Humann , Inc. submitted a Proposal the City has deemed acceptable, and has provided a staffing plan that has been deemed acceptable, has extensive knowledge, and is qualified to provide the needed services, and is willing t o provide those services on mutually agreeable terms; and

WHEREAS, a recommendation to award the contract to J.D. Humann Landscaping, Inc. is made by the Director of Recreation and Parks.

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

SECTION 1. The above recitals are true and correct; and

SECTION 2. J.D. Humann , Inc. is awarded a Services Agreement to perform landscape maintenance services Citywide; and

SECTION 3. The terms of the agreement is for three years; and

SECTION 4. The City Council authorizes City Manager or desginee to execute the agreement on the City’s behalf.

SECTION 5 . 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.

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

Mayor

ATTEST:

Chief Deputy City Clerk

APPROVED AS TO FORM:

By:

City Attorney

APPROVED AS TO CONTENT:

By:

Department Director

By:

City Manager

Attachment B

AGREEMENT FOR SERVICES
(Citywide Landscape Maintenance Services)

THIS AGREEMENT is made on July 1, 2025, by and between J.D. Humann Landscaping Inc. and the City of Santa Maria, a California Municipal Corporation and charter City (“City”), in the Sant a Maria, California, based on the following recitals:

1. The City is involved in the maintenance of certain public right -of-way areas in connection with the Landscape Maintenance Districts , Special Benefit Zones , retention basins, plazas, and parks throughout the City of Santa Maria; and

2. The City requires a duly qualified landscape contractor with experience in providing landscape maintenance services throughout the City of Santa Maria; and

3. J.D. Humann Landscaping Inc. is a firm having the necessa ry experience and qualifications to provide the landscape maintenance; and

4. The City has funds for the provisions and services of landscape maintenance; and

5. On April 22, 2025, the City issued a Notice Inviting Sealed Request for Proposals for provision and service of landscape maintenance (RP-2025-01); and

6. J.D. Humann Landscaping Inc. has submitted a Proposal that t he City has deemed acceptable, has provided a staffing plan that has been deemed acceptable, has extensive knowledge and is qualifie d to provide the needed services, and is willing to provide those services on mutually agreeable terms; and

NOW, THEREFORE, IT IS AGREED:

1. Recitals True. The above recitals are true.

2. General.

2.01 Term and Termination. The term of this contract is three years, beginning on the date first written above. This contract may be extended by the mutual consent of the parties for up to three consecutive one -year periods . This contract may be terminated for breach of its terms and conditions, or because of the discovery of any act which violates local, state or federal law. Termination is effective 14 days after deposit of notice, as specified in this Agreement.

2.02 Services to be Performed. The “Scope of Work” is hereby attached as Exhibit “A”. J.D. Humann Landscaping Inc.’s proposal, dated May 16, 2025, and consisting of a price quote, and an insurance certification, is at tached hereto as Exhibit “B”.

J.D. Humann Landscaping Inc. shall determine the method, details and means of providing service and de livery of landscape maintenance in the Landscape Maintenance Districts , Special Benefit Zones , and other City landscaped areas .

More specifically, J.D. Humann Landscaping Inc. agrees to perform the specific services set forth in Exhibits “A” , “B”, “C”, D”, and “E”. In its sole discretion, City may reduce or increase the scope of work upon 30 days written notice to Contractor.

Price shall be reduced or increased in proportion to the reduced or increased scope Attachment B
of work on a time and materials or unit basis an d shall be documented in a change order to this Agreement.

2.03 City’s Duties. City’s duties under this Agreement are to cooperate with J.D.

Humann Landscaping Inc. in the performance of the Agreement and timely pay ment of invoices.

2.04 Payment and Liquidated Damages. City shall pay J.D. Humann Landscaping Inc. for the services provided under this Agreement in accordance with the prices quoted in Exhibit “B”. Payment terms under this Agreement are listed in Exhibit “ C”.

Repairs to correct irrigation problems shall be performed within 24 hours of being notified either in writing or verbally of an irrigation problem. Special Requests for Weed Abatement, Trash Removal, Trimming, Mowing, and any other service contemplated in this agreement shall be perfo rmed within the timeline allocated to the Contractor by the City’s Authorized Representative . If repairs are not made within the time period specified by the City’s Authorized Representative , the City’s Authorized Representative may, i) self- perform all or part of the work to resolve the issue and any restoration resulting from delays with City of Santa Maria Employees, and/or ii) outsource the repair, service, and restoration, etc. to another Licensed Contractor, and deduct the amount paid for labor and m aterials, plus penalties, and a 15% Administrative Expense from the monthly billing.

2.05 Insurance. J.D. Humann Landscaping Inc. shall provide insurance as set forth in Exhibit “D”.

3. Contractor’s Obligations.

3.01 Mi nimum Amount of Service . J.D. Huma nn Landscaping Inc. shall devote sufficient time to perform services under this Agreement efficiently and effectively.

J.D. Humann Landscaping Inc. may represent, perform services for, and be employed by additional individuals or entities at J.D. Humann Landscaping Inc. sole discretion, as long as the performance of these extra -contractual services does not interfere with or present a conflict with City’s business.

3.02 Schedules. J.D. Humann Landscaping Inc. shall provide a work schedule specifically outlining the days of the week specific tasks listed in the scope of services will be performed. For example: litter pick-up, mowing, pruning, general maintenance, irrigation check, etc. This schedule must be app roved by the City’s Authorized Representative. All work performed shall be completed on the days indicated on the approved work schedule and can be changed only with t he approval of the City’s Authorized Representative.

3.03 Tools and Equipment . Except as otherwise stated in this Agreement, J.D.

Humann Landscaping Inc. will supply all tools and equipment necessary to perform this Agreement. All J.D. Humann Landscaping Inc. vehicles shall be easily identified by the public with a magnetic sign attached to each vehicle with the name of the company, phone number and a statement to the effect that the crew is under contract with the City of Santa Maria Landscape Maintenance Districts.

3.04 Status. J.D. Humann Landscaping Inc. (including its employees) is an independent contractor. No employer/empl oyee relationship exists between J.D.

Humann Landscaping Inc. and the City. J.D. Humann Landscaping Inc. assigned Attachment B
personnel shall not be entitled to any benefits payable to employees of the City. The city is not required to make any deductions or withhold ings from the compensation payable to J.D. Humann Landscaping Inc. under this agreement.

3.05 License. J.D. Humann Landscaping Inc. must have a State of California C -27 Landscape Contractor License.

3.06 Indemnification. To the fullest extent allowed by law, J.D. Humann Landscaping Inc. shall indemnify, defend (with independent counsel approved by the City) and hold harmless the City, and its directors, officers, and employees from and against all liabilities (including without limitation all claims, l osses, damages, penalties, fines, and judgments, associated investigation and administrative costs of alternative dispute resolution) regardless of nature or type that arises out of, pertain to, or relate to the negligence, reckless, or willful misconduct of J.D. Humann Landscaping Inc. or the acts or omissions of an employee, agent or subcontractor of J.D. Humann Landscaping Inc.. The provisions of this paragraph survive completion of the services or the termination of this contract. The provisions of thi s Section are not limited by the provisions of the Section relating to insurance.

4. Miscellaneous

4.01. Notices . All communic ation relating to the day -to-day activities of this Agreement shall be exchanged between a designated representative of the CITY and a representative of CONTRACTOR, listed below. All notices shall be addressed as follows unless a written change is filed with the City:

To City: To Contractor:

Attn. Alex Posada, Director Attn. John D. Humann, President 615 S. McClelland 201 W. Broadway, Suite 122 Santa Maria, CA 93454 Santa Maria, CA 93457

If the designated Representative or addr ess of either party changes during the term of this Agreement, a written notice shall be given to the other party prior to the effective date of change. Any written notices required under this Agreement shall be effective five (5) days after deposit into United States mail, postage prepaid, addressed to the designated Representative, or upon confirmation of receipt of delivery if another notification process is used.

4.02. Compliance With Laws, etc. Contractor shall comply with all laws, including but not limited to the rules and policies of the City, in performing this Agreement.

4.03. Integration. This Agreement constitutes the entire agreement of the parties with respect to the subject matter. All modifications, amendments, or waivers of the terms of this Agreement must be in writing and signed by the appropriate representatives of the parties.

4.04. Interpretation. This A greement shall be interpreted in accordance with the laws of the State of California.

4.05. Jurisdiction. Jurisdiction and venue of all disputes over the terms of this Agreement shall be in the County of Northern Santa Barbara, State of California.

Attachment B

4.06. Warranty of Authority. Each person signing this Agreement on behalf of a party warrants that he or she has authority to do so.

4.07. No Waiver. Failure to enforce with respect to a default shall not be construed as a waiver.

4.08. Severability. The provisions of this Agreement are severable. If any part of this Agreement is held invalid by a court of competent jurisdicti on, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.

4.09. Submittals. In addition to any other submittals required by this Agreement, Contractor shall submit copies of its current business license and current certificate of workers compensation coverage to the City before beginning work on this project.

4.10 Prevailing Wage. Prevailing Wage. If applicable, Contractor and all subcontractors are required to pay the State prevailing wage rates with certified payroll Pursuant to CA Labor Code Section 1771 et seq., http:www.dir.ca.gov/PWD/index.htm The Director's determination is on file and open to inspection at www.dir.ca.gov and is referred to and made a part hereof; the wage rates therein ascertained, determined and specified are referred to and made a part hereof as though fully set forth here in. Obtain the project D.I.R. number from the Recreation and Parks Special District Supervisor . Contractor shall follow all applicable requirements in Exhibit “E”.

IN WITNESS WHEREOF, this Agreement is executed by the parties on the date first written above.

CONTRACTOR

J.D. HUMANN LANDSCAPING INC.,
a California Corporation

By: ___________________________
John D. Humann, President
President

By: ___________________________
Daniel Wiggins
General Manager
CITY

CITY OF SANTA MARIA, a California Municipal
Corporation

By:

Alex Posada
Director of Recreation and Parks

ATTEST:

By: _____________________________
Donna G. Schwartz
Chief Deputy City Clerk

Attachment B

EXHIBIT “A”

SCOPE OF WORK

Description
The landscape maintenance preserves and susta ins the quality of the landscape. Landscapes are generally designed with a given style, formal or informal. Proper maintenance maintains the intended design concept.

Work Included
J.D. Humann Landscaping Inc. must have a working knowledge of the mainten ance of turf areas, mowing requirement s and operations, plant identification and pruning requirements, irrigation systems an d repair, drainage systems and debris removal, post and pre -emergent application, fertilizer application, and other related work. J.D. Humann Landscaping Inc. shall keep City representative informed of areas needing any renovation including replenishing bark, dead or dying plant material or missing plant material.

Severability of Tasks
The City reserves the right of severability; any clause or task within these specifications may be deleted at the discretion of the Recreation and Parks Department. Adjust ments to the contract costs will be made accordingly.

Quality Assurance
J.D. Humann Landscaping Inc. and/or employees must be pro perly licensed and registered to perform pest control work described below.

Site Conditions
Existing Conditions. J.D. Humann Landscaping Inc. shall inspect the entire site and be familiar with the requirements and growth habits of all existing plant material. INITIAL

Environmental Conditions. J.D. Humann Landscaping Inc. shall immediately advise the Recreation and Parks D epartment of disease or pest problems and any other conditions, which may be detrimental to the condition of the landscape or fixtures therein. INITIAL

Scheduling
Maintenance services shall be provided on a weekly basis, Monday through Saturday, between the hours of 7:00 a.m. and 6:00 p.m. J.D. Humann Landscaping Inc. shall provide to the City’s Authorized Representative for approval, a work schedule specifically outlining on which days of the week specific tasks of the Agreement will be performed, for example: litter pick-up, mowing, pruning, general maintenance, irrigation check, etc. All work performed within the Agreement area shall be completed on the days indicated and can only be changed with the acknowledgement and approval of the Recreation and Parks Department representative.

J.D. Humann Landscaping Inc. shall submit a monthly report that indicates all the work that was performed within the contracted area, such as litter pick -up, mowing and edging , irrigation inspections, pesticide a nd herbicide applications, disease and pest control (as referenced in the RFP), to the City’s Authorized Representative

Warranty
Attachment B
J.D. Human n Landscaping Inc. shall furnish all supervision, labor, materials, and equipment necessary for the complete maintenance of all landscaped areas.

Plant materials shall be maintained in a healthy and vigorous condition and allowed to grow and develop natural growth habits without being clipped into balled or boxed forms.

Irrigation and drainage systems shall be kept in good wo rking order, and the general site kept clean, and free of litter, debris, or graffiti. This includes all drainage swales, inlets and outlets.

J.D. Humann Landscaping Inc. shall restore or replace any trees, shrubs, ground covers, lawn, perennials, annuals, or irrigation components damaged by J.D. Humann Landscaping Inc. action or lack of action. This includes lack of water or over -watering. Please note that these conditions should be noted when irrigation checks are performed.

J.D. Humann Landscaping Inc. is obligated to notify the City’s Authorized Representative of any dead or dying plant material including vines, shrubs, groun dcover or trees. J.D. Humann Landscaping Inc. shall be responsible for replacing any dead or dying plant material that was previously well - established with appropriate plant size (5 gallon plants/24” box trees).

J.D. Humann Landscaping Inc. shall not be responsible for the following, unless specifically agreed upon:

Replacement of plant material damaged or destroyed by storm s, or other causes beyond J.D.

Humann Landscaping Inc. control.

Equipment
J.D. Humann Landscaping Inc. shall provide and maintain all equipment necessary to properly complete the maintenance work. Equipment shall be safe, proper, efficient, and suited to and for, the job. All cutting blades shall be kept properly sharpened. All equipment must have all required safety devices in place and fully operational.

PRODUCTS
Pesticides
Whenever possible, integrated pest management (IPM) should be used with the intent of minimizing the use of pesticides . All pesticides MUST be registered in the State of California and conform to all requirements of the California Food and Agriculture Code.

Herbicides
Least toxic products shall be considered. All herbicides MUST be registered in the State of California and conform to all requirements of the California Food and Agriculture Code.

EXECUTION
Trees
All tree maintenance/trimming shall be provided by the City of Santa Maria. No string trimmers or mowers are to be allowed closer than two feet from the trunk of trees. Herbicides, hand pulling and mulching are to be used to suppress weeds and grass as needed within the two foot radius.

Shrubs and Vines
Pruning
Attachment B
The general objectives for pruning shrubs and vines are to maintain growth within space limitations, to maintain a natural appearance, to eliminate diseased or damaged growth, and to selec t and develop permanent branches.

General pruning may be done at any time, but major pruning should be done no more than on ce a year.

Shrubs shall be pruned to conform to the design concept of the landscape.

Individual shrubs shall not be clipped into balled or boxed forms but allowed to exhibit their natural growth habits. Plants shall be pruned to conform to their natural growth characteristics whenever possible, except with the 50-foot site view triangles at road intersections, where a 36-inch height must be maintained.

Vines shall be pruned to control growth and direction and shall be kept “in-bounds” and not allowed to grow over walls, doors, gates, or other structural facilities. Vines shall be trimmed to within two blocks of the top of the walls. Ground vines shall not be allowed to cover the crowns of shrubs or grow up tree trunks.

To prevent leggedness (sparse lower branches), shrubs shall be maintained with the lower foliage wider than the upper foliage.

Ground Covers
Edging
Ground covers shall be edged up to four times a year, maximum growth will be six inches over adjacent concrete, and maximum pruning back will be to the edge of concrete.

Lawns
Mowing
Lawns shall be mowed weekl y in season to provide a neat appearance. Abandoned lawn sh all be kept trimmed and edged as needed without a specific schedule.

As a general rule, warm-season grasses are mowed shorter than cool-season grasses. Begin mowing at two and a half inches in the spring, and adjust to three inches by late summer and ear ly fall. Avoid scalping during the growing season.

Edging/Weed-eating
All lawn edges shall be edged every two weeks throughout the year.

Obstacles within the lawn areas shall be edged to maintain a grass -free clear space of two inches in width.

Lawn sprinkler heads shall only be edged to allow for proper distribution of water.

Aerate lawns four times and dethatch one time each year in lieu of mowing as turf growth rate allows.

Irrigation Systems
General
The frequency and duration of irrigation shall be determined and monitored by the City’s Authorized Representative. It is J.D. Humann Landscaping Inc. responsibility to i nform the City’s Authorized Representative of any dry areas or wet areas in a timely fashion.

Attachment B

All irrigation controllers should be programmed to run between the hours of 10:00 p.m. and 6:00 a.m. by the City’s Authorized Representative.

J.D. Humann Landscaping Inc. shall perform inspections and notify the City’s Authorized Representative of any irrigation problems.

System Maintenance
All replacement heads or parts shall be of the same manufacturer, type, and application rates as approved by the Recreation and Parks Department.

J.D. Humann Landscaping Inc. shall be required to make repairs to correct irrigation problems within 24 hours of being notified of an irrigation problem. If repairs are not made within the specified time period, the City’s Authorized Representative shall outsource the repair and deduct the amount paid for labor and materials, plus penalties, from J.D. Humann Landscaping Inc. monthly billing.

J.D. Humann Landscaping Inc. shall be responsible for making repairs on all irrigation syst em lateral lines one inch or less in size. Any additional repairs larger than just stated shall be at the agreed upon irrigation rate which includes the cost of material plus 15 percent. A copy of the material invoice must accompany all billing invoices. This includes vandalism, accidents, and acts of God.

The irrigation system shall be flushed as needed if the irrigation checks demonstrate that a problem exists. The flushing shall be coordinated with the City’s Authorized Representative. Irrigation checks must be noted on the monthly inspection sheets that are turned in to the Recreation and Parks Department. Random quality checks will be done throughout the year as referenced by the RFP.

Drainage Systems
Drainage systems must be routinely checked for blockage which could cause ponding, flooding, and excessive saturation of the soil and plant root zones.

Surface drainage swales and/or gutters shall be kept free of leaves, debris, and sediment accumulations.

Disease and Pest Control
All chemicals MUST be applied under the strict supervision of a California Department of Pesticide Regulation licensed and qualified pest control ap plicator, per the manufacturers’ recommended label application procedures, and the laws regulating pesticide application. Integrated pest management (IPM) shall be used whenever possible and least toxic materials used.

Plants and lawns shall be maintaine d in healthy condition such that they are able to withstand minor disease and insect damage without controls. Routine appli cations of pesticides are not permitted, as this practice destroys natural, predator-prey relationships in the environment.

In general, incidence of serious disease and insect problems shall be minimized by proper fertilization and irrigation practices. Where unusually high infections or infestations occur, an accurate identification of the disease or insect shall be made and the con trol product selected with care, prior to application.

Insecticidal soaps shall be utilized wherever possible.

Attachment B
Rodents suc h as gophers, mice, ground squirrels and rabbits shall be trapped or controlled with approved baits.

J.D. Humann Landscaping Inc. shall use PPE (Personal Protection Equipment) at all times when applying pesticides.

Weed Control
Use of Herbicides – Herbicides may be used to control and inhibit weed growth, but must be selected with extreme care. Pre -emergent, contact, and translocati on herbicides are available. Some herbicides can cause damage to plant material. Herbicides must be applied in strict acco rdance with manufacturers’ label application procedures. The name, quantities and location of all herbicides applied, shall be given to the City’s Authorized Representative.

Shrub and Ground Cover Areas – Shrub and ground cover areas shall be maintained free of weeds and grasses. Herbicides may be used to control weed growth. Careful consideration shall be given to the choice of ma terials used, since certain herbicides can cause damage to turf grass and some ground covers.

Lawns
Weed infestations shall be discouraged by proper maintenance, including but not limited to proper mowing, proper watering, and proper fertilization.

Any and all deficient practices shall be corrected.

Before selecting and applying herbicides to lawns, the type of weed shall be carefully identified.

Herbicides shall be used as little as possible. Only when necessary shall herbicides be used as a means of swinging the weed-grass competition in favor of the turf grass.

Other Weed Control – Weeds shall not be allowed to grow in paved areas such as driveways, curbs, walks, and paths. Weeds can be removed manually, or herbicides may be used for control. The use of weed oil, diesel fuel, or other staining or damaging materials is not allowed. Dead weeds shall be removed from all pavements.

J.D. Humann Landscaping Inc. shall use PPE (Personal Protection Equipment) at all times when applying herbicides.

Debris Removal
Litter and trash including but not limited to leaves, rubbish, papers, bottles, cans, and other debris shall be re moved from all areas of the sit e one time per week on Monday or Tuesday. This shall include emptying of all trash cans and waste cans at doggie bag stations.

Doggie bags shall be replaced in their appropriate containers. The bags shall be supplied by the City’s Authorized Representative.

J.D. Humann Landscaping Inc. shall remove all unapproved signage, such as “For Sale”, “For Re nt” and “Garage Sale” signs, etc. when observed within all public easement areas. Do not remove any political signage.

Attachment B
Graffiti removal from play equipment. Specification for removal shall be provided by the City’s Authorized Representative. Graffiti ot her than on play equipment along with shopping carts shall be immediately reported via phone to (805) 925-0951, extension 2667.

Homeless encampments shall be immediately reported to the City’s Authorized Representative.

All refuse from the maintenance operation shall be disposed of properly.

Additional
J.D. Humann Landscaping Inc. shall provide to the City’s Authorized Repre sentative the name and phone number of the individual responsible for this Agreement between the hours of 7:00 a.m. and 6:30 p.m.

All work that is considered to be an extra and/or addition to the original Agreement including the replacement of any dead or dying plant material must be clearly described in writing through a Task Order and approved by the City’s Authorized Representative, prior to performing the work in order to receive payment. At no time shall J.D. Humann Landscaping Inc. engage in any work that is considered beyond the scope of the original Agreement without written approval. All additional work shall include the cost of materials, hourly rate, time required to perform the repair and total, charges will follow rates provided on Exhibit “B.”

J.D. Humann Landscaping Inc. shall provide a 24-hour emergency phone number and name of two (2) contact individuals. These individuals shall be able to be reached in the event of an emergency between 6:30 p.m. and 7:00 a.m. Should the phone number or contact persons change during the course of the Agreement, those changes must be provided to the City’s Authorized Representative.

EMERGENCY CONTACTS:

Name: Daniel Wiggins, General Manager, [email protected]

Phone Number: 805-878-9808

Name: Armando Reyes

Phone Number: 805-260-4851

Name: Jorge (Angel) Hererra

Phone Number: 805-310-1314
Attachment B
EXHIBIT “B”
Price Quote and Insurance Certification

1. Contractor’s Price Quote

2. Contractor’s Proof of insurance

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B
EXHIBIT “B” (CONTINUED)

Extra’s Price List

Unit cost for the complete purchase and installation of the items listed below. Truck and personnel rates will be used for projects that the unit pricing does not cover.

1 gallon plant installed $15.00

5 gallon plant installed $28.00

15 gallon tree installed $165.00

24” box tree with staking installed $385.00

Flat of Gazania ground cover installed $45.00

I cubic yard of died wood chip ‘bark’ installed $105.00

Support truck per hour $15.00

Crew member per hour $45.00

Foreman/Specialist per hour $55.00

This list will qualify Contractor for small repair and maintenance projects without the need for bid proposals.

Attachment B

EXHIBIT “B” (CONTINUED)

Attachment B
EXHIBIT “C”

PAYMENT TERMS

J.D. Humann Landscaping Inc . fees and compensation: amount, how, and when payable. J.D.

Humann Landscaping Inc. agrees that for all work and services, including supplies and equipment, pertaining to the Landscape Maintenance Ser vices and required to be furnished by J.D. Humann Landscaping Inc. to the City, that City agrees to pay to J.D. Humann Lands caping Inc., and J.D. Humann Landscaping Inc. agrees to accept and receive as payment in full the fees as set forth below:

AREA UNIT COST UNITS NOT TO EXCEED
Northwest District $0.21/SF 731,318 SF $153,576.78
Northeast District $0.21/SF 1,316,582 SF $276,482.22
Southwest District $0.21/SF 3,109,949 SF $653,089.29
Extra Services See “Extra” Pricing - $350,000.00
SF = Square Feet

TOTAL CONTRACT VALUE = $1,433,148.29

Extra Services All work that is considered to be an extra and/or addition to the origin al Agreement including the replacement of any dead or dying plant material must be clearly described in writing through a Task Order and approved by the City’s Authorized Representative, prior to performing the work in order to receive payment.

Monthly Progress Billing. J.D. Humann Landscaping Inc. shall furnish City with an itemized monthly progress billing for all services rendered . Such progress payments shall be due and payable by the City to J.D. Humann Landscaping Inc. within thirty (30) days after presentation of the approved invoices, expect one week for approval.

Separate billing sheets shall be submitted for each individua l Landscape Maintenance District and Special Benefit Zone. Do not combine any special Benefit Zone even if they are within the same Landscape Maintenance District. Payment of any individual billing sheet may be delayed until completion of any unmet scheduling commitments.

J.D. Humann Landscaping Inc. agrees to pay penalties automatically deducted from monthly billing as detailed in Section 2.04

J.D. Humann Landscaping Inc. has the right to dispute penalties imposed by the Special District Supervisor or his/her representative, by written response to the notification of said penalties within five (5) working days from the date of notification.

Attachment B

EXHIBIT “D”

INSURANCE REQUIREMENTS

J.D. Humann Landscaping Inc. shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by J.D. Humann Landscaping Inc., his/her agents, representatives, or employees. If J.D. Humann Landscaping Inc. maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the Consultant.

Minimum Scope of Insurance

Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001), including products and completed operations, property damage, bodily injury and personal &advertising injury.

2. Insurance Services Office Business Auto Coverage Form Number CA 00 01 covering any (Code 1), or if Consultant has no owned autos, covering hired (Code 8) and non-owned autos (Code 9).

3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

4. Errors and Omissions liability insurance appropriate to the Consultant's profession. Architects' and engineers' coverage is to be endorsed to include contractual liability.

Minimum Limits of Insurance

J.D. Humann Landscaping Inc. shall maintain limits no less than:

1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Worker’s Compensation: Statutory limits.

4. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

5. Errors and Omissions Liability-$1,000,000 per occurrence or claim, $2,000,000 aggregate

Self-insured Retentions
Attachment B

Self-insured retentions must be declared to and approved by the City. The City may require the J.D. Humann Landscaping Inc. to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention.

Other Insurance Provisions

The commercial general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of J.D. Humann Landscaping Inc. including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form or an endorsement to J.D. Humann Landscaping Inc. insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions are used).

2. For any claims related to this project, J.D. Humann Landscaping Inc. insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Consultant's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled or reduced, except with notice stating the title of this contract to the C ity. All notices provided pursuant to this Agreement shall be given to the City representative listed for notice in this agreement and shall specify the title of this Agreement. Notice may be given by overnight mail, facsimile with confirmation of receipt, or certified mail with return - receipt requested.

4. J.D. Humann Landscaping Inc. hereby grants to City a waiver of any right to subrogation which any insurer of said J.D. Humann Landscaping Inc. may acquire against the City by virtue of the payment of any loss under such insurance. J.D. Humann Landscaping Inc. agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

5. If any of the required policies provide claims-made coverage:

a. The Retroactive Date must be shown and must be before the date of the contract or the beginning of contract work.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, J.D. Humann Landscaping Inc. must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Acceptability of Insurers

Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII, unless Attachment B
otherwise acceptable to the City.

Verification of Coverage

J.D. Humann Landscaping Inc. shall furnish the City with original certificates and amendatory endorsements of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences.

However, failure to obtain the req uired documents prior to the wo rk beginning shall not waive J.D.

Humann Landscaping Inc. obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting th e coverage required by these specifications at any time.

Special Risks or Circumstances

The city reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Attachment B
EXHIBIT “E”

PREVAILING WAGE

The terms of this Agreement apply to all public works projects for over $1,000.

For purposes of this Exhibit, “Public Works” includes any project of a type defined in California Labor Code section 1720 when paid for in whole or in part by public funds. These projects include:
construction, alteration, demolition, installation, or repair work done under contract. For purposes of this definition, "construction" includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection an d land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this definition, "installation" includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

Pursuant to California Labor Code sections 1720 and 1771, construction, alteration, demolition, installation, repair and maintenance work performed under this Agreement is subject to State prevailing wage laws. State prevailing wage laws require certain provisions be included in all contracts for public works. The Contractor and any subcontractors shall comply with all applicable State prevailing wage laws, whether included in this agreement or inadvertently omitted, including but not limited to the requirements listed below:

1. Compliance with Prevailing Wage Requirements. Pursuant to California Labor Code sections 1720 through 1 861, the Contractor and all subcontractors shall ensure that all workers who perform work under this Agreement are paid not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations (DIR). This includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including but not limited to inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the post - construction phases of construction, including but not limited to all cleanup work at the jobsite.

1.1. Copies of such prevailing rate of per diem wages are on file at the City Public Works Department and are available for inspection to any interested party on request. Copies of the prevailing rate of per diem wages also may be found at
http://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. Th e Contractor and all subcontractors shall post a copy of the prevailing rate of per diem wages determination at each job site and sh all make them available to any interested party upon request.

1.2. The wage rates determined by the DIR refer to expiration dates. If the published wage rate does not refer to a predetermined wage rate to be paid after the expiration date, then the published rate of wage shall be in effect for the life of this Agreement. If the published wage rate refers to a predetermined wage rat e to become effective upon expiration of the published wage rate and the predetermined wage rate is on file with the DIR, such prede termined wage rate shall become effective on the date following the expiration date and shall apply to this Agreement in the same manner as if it had been published in said publication. If the predetermined wage rate refers to one or more additional expira tion dates with additional predetermined wage rates, which expiration dates occur during the life of this Agreement, each su ccessive predetermined wage rate shall apply to this Agreement on the date following the expiration date of the previous wage rate. If the last of such predetermined wage rates expires during the life of this Agreement, such wage rate shall apply to the balance of the Agreement.

Attachment B

2. Penalties for Violations. The Contractor and all subcontractors shall comply with California Labor Code section 1775 in the event a worker is paid less than the prevailing wage rate for the work or craft in which the worker is employed. This shall be in addition to any other applicable penalties allowed under California Labor Code sections 1720 through 1861.

3. Payroll Records. The Contractor and all subcontractors shall comply with California Labor Code section 1776, which generally requires keeping accurate payroll records, verifying and certifying payroll records, and making them available for inspection. The C ontractor shall require all subcontractors to also comply with section 1776. The Contractor and all subcontractors shall furnish records specified in section 1776 on a monthly basis, both to the City and directly to the Labor Commissioner in the manner required by California Labor Code section 1771.4. The Contractor shall ensure its subcontractors prepare and submit payroll records to the City and the DIR as required by this section. The City may require the Contractor and its subcontractors to prepare and submit records specified in section 1776 to the City and the Labor Commissioner on a weekly basis, at no additional cost to the City.

4. Apprentices. The Contractor and all subcontractors shall comply with California Labor Code sections 1777.5, 1777.6 and 17 77.7 concerning the employment and wages of apprentices. The Contractor is responsible for compliance with this section for all apprentice able occupations pursuant to California Labor Code section 1777.5(n).

5. Working Hours. The Contractor and all subcontr actors shall comply with California Labor Code sections 1810 through 1815, including but not limited to: (i) restrict workin g hours on public works contracts to eight hours a day and forty hours a week, unless all hours worked in excess of 8 hours per day are compensated at not less than 1½ times the basic rate of pay; and (ii) specify penalties to be imposed on contractors and subcontractors of $25 per worker per day for each day the worker works more than 8 hours per day and 40 hours per week in violation of California Labor Code sections 1810 through 1815.

6. Required Provisions for Subcontracts. The Contractor shall include, a t a minimum, a copy of the following provisions in any contract they enter into with a subcontractor: California Labor Code sections 1771, 1771.1, 1775, 1776, 1777.5, 1810, 1813, 1815, 1860 and 1861.

7. Labor Code Section 1861 Certification. In accordance with California Labor Code section 3700, the Contractor is required to secure the payment of compensation of its employees. By signing the Agreement, to which this is an exhibit, the Contractor certifies that:

“I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake s elf- insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Agreement.”

8. Compliance Monitoring and Enforcement. This project is subject to compliance monitoring and enforcement by the DIR. The City must withhold contract payments from the Contractor as directed by the DIR, pursuant to California Labor Code section 1727.

9. Contractor and Subcontractor Registration Requirements. The Contractor and all subcontractors shall not engage in the performance of any contract for public work, unless currently registered and qualified to perform public work pursuant to California Labor Code section 1725.5 Contractor certifies that the Contractor has verified that all Contractor and all subcontractors (if any approved by City) used on this project are registered with the DIR in compliance with Califo rnia Attachment B
Labor Code sections 1771.1 and 1725.5. The Contractor shall provide proof of registration for themselves and all listed subcontractors to the City at the time of signature of contract and immediately upon any changes or City’s request.

10. Stop Order. Where a contractor or subcontractor engages in the performance of any public work contract without having been registered in violation of California Labor Code sections 1725.5 or 1771.1, the Labor Commissioner must issue and serve a stop order prohibiting the use of the unregistered contractor or subcontractor on ALL public works until the unregistered contractor or subcontractor is registered. Failure to observe a stop order is a misdemeanor.

COUNCIL AGENDA REPORT

TO: Mayor and City Council

FROM: Rebecca Campbell, Director of Finance

DATE: July 1, 2025

SUBJECT: Continued from the June 17, 2025, Regular City Council Meeting - 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 approving amendments to the City’s Purchasing Guidelines Manual to take effect July 1, 2025.

BACKGROUND:

On June 17, 2025, the Finance Department, through the City Manager, presented a revision to the Purchasing Guidelines manual seeking to elevate the purchasing approval limit levels for the purchase of goods and services to operate City departments, commonly referred to as non-public works, to address the significant increase in cost of goods and services in the last six years. For the construction of “public projects”, commonly referred to as public works, the City uses a combination of Santa Maria Municipal Code (SMMC) Chapter 8-16 and the California Uniform Public Construction Cost Account (UPCCA) Act.

Federally funded projects are subject to additional requirements outlined in the Purchasing Guidelines manual to ensure compliance with these standards. The revision also seeks to align the threshold requirements in accordance with the California UPCCA and the United States Office of Management and Budget (OMB) published 2 CFR 200, Uniform Administrative Req uirements, Cost Principles and Audit Guidance for Federal Awards in 2024.

During the discussion, the City Council asked staff to respond to the following questions and bring the Purchasing Guidelines manual back for consideration at its July 1 st, meeting:
2  Will the increased purchasing approval limits (thresholds) allow departments to spend more of their budget?
 When was the last time the Purchasing Guidelines manual were revised?  What are the current and proposed purchasing limits for staff, Departmen t Directors, the City Manager and the City Council?
 Why is staff seeking to update purchasing approval limit levels?  How were the proposed purchasing approval limits derived?

Responses to these questions are addressed in the Discussion section below.

DISCUSSION:

Will the increased purchasing approval limits (thresholds) allow departments to spend more of their budget?

The purchasing approval limits do not increase budgets. A department’s spending limitation is constrained by the budget adopted by the City Council, ensuring that allocated funds for various programs or services will not be exceeded. Purchasing thresholds establish financial limits that guide purchasing decisions by promoting responsible spending practices, ensuring compliance, and fostering transparency and accountability.

The adoption of a budget is approved by the City Council, and it establishes how resources are assigned to the goals, objectives, and priorities set forth by the City Council.

The budget is the financial work plan translated into appropriations that are supported by revenues. The City Council may amend the budget by a majority vote of the City Council at any time during the fiscal year. The City Manager is authorized to make administrative adjustments to the budget as long as those changes do not significantly impact the goals, objectives, and priorities set forth by the City Council or affect budgeted year -end fund balances. Any revisions that alter the fund balance of a fund must be approved by the City Council. The level at which expenditures may not legally exceed appropriations is, therefore, established at the fund level.

The thresholds delineated in the Purchasing Guidelines manual create a process and set limitations to ensure responsible spending, compliance with legal standards, and improve transparency and accountability in public finance.
 Fiscal Responsibility:
o Budget Control: Purchasing thresholds help maintain discipline in financial management by ensuring that departments do not exceed allocated budgets. o Resource Optimization: By enforcing limits on spending, departments are encouraged to seek cost-effective solutions.
 Compliance with Legal Requirements:
o Regulatory Adherence: The City must follow legal mandates requiring formal bidding processes for expenditures above certain thresholds. These thresholds ensure compliance with such regulations.
o Audit Readiness: Establishing clear thresholds and procedures makes it easier to prepare for audits and demonstrate compliance with applicable g uidelines and laws.
3  Transparency:
o Public Trust: Setting and publicizing purchasing thresholds instills confidence in how public funds are managed, leading to greater community trust. o Visibility of Government Spending: The community can better understand and track where its taxes are going, which promotes informed public dialogue about government spending priorities.
 Accountability:
o Oversight Mechanism: Purchasing thresholds serve as checks that require departments to justify and document spending decis ions, helping to prevent misuse of funds or fraudulent activities.
o Performance Evaluation: Establishing clear limits allows for evaluation of departmental efficiency and effectiveness in using resources allocated through adoption of the budget.
 Strategic Decision-Making:
o Prioritization: Thresholds force departments to carefully consider what purchases are essential, aligning procurement with strategic goals and community need.
o Adaptability: Purchasing processes can be refined based on the experience gained from operating under established thresholds, leading to continuous improvement.

When was the last time the Purchasing Guidelines manual were revised?

The last time the Purchasing Guidelines manual was revised was in 2018 updating a portion of th e guidelines. The SMMC Chapter 3 -4 Purchasing System was originally written in the 1960s. In 1993, it was recognized that contracting and purchasing for the construction of “public projects”, commonly referred to as public works, is different than the purc hase of goods and services needed to operate City departments, commonly referred to as non-public works . At that time the City elected to follow the California UPCCA for public works by adopting Chapter 8-16 of the Municipal Code.

Since the 1960s, purch asing procedures became more complex, subject to State rules and guidelines. In 2006, staff conducted a comprehensive review of the City’s purchasing methods, the SMMC sections that pertain to purchasing, and the City Administrative Memorandum (CAM) on purchasing procedures issued on March 12, 1964.

In 2007, SMMC Chapter 3 -4 Purchasing System was rewritten to reflect current purchasing practices and adopted through Ordinance No. 2007 -02 on March 20, 2007.

The revised purchasing system established efficie nt 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. SMMC Section 3-4.11 designates the City Manager, or his or her designated representative, as the Purchasing Authority and sets forth powers and duties of that 4 position. SMMC Section 3 -4.12 requires that the Purchasing Authority prepare and implement a guideline of purchasing policies and procedures, which have since become known as the Purchasing Guidelines manual.

In addition, SMMC Chapter 8-16 Public Projects was modified to comply with established Public Contract Code provisions, specifically to remove a specific dollar amount and, instead, link the Chapter with the limits listed in the California UPCCA in order to allow increases to informal bid limits consistent with State changes and adopted through Ordinance No. 2007-03 on March 20, 2007.

On May 3, 2007, City Manager Tim Ness, as the Purchasing Authority, issued CAM 2007- 01 to comply with SMMC Section 3 -4.12 and to provide direction to staff in purchasing goods and services. The Purchasing Guidelines manual attached to CAM 2007 -01 was prepared to bring together common purchasin g procedures and practices, formal purchasing procedures and the California Uniform Public Construction Cost Accounting Act, all into a concise, easily understood document. The Purchasing Guidelines manual contains sections that detail bidding procedures; consultant contract authority; open market purchase procedures; formal bidding procedures; and payment procedures. It appears to staff that the Purchasing Guidelines manual issued in 2007 established the first thresholds for non-public works and public wor ks as reflected in the table in Attachment B.

The Purchasing Guidelines manual is a dynamic document that changes as City personnel find more effective and efficient ways to accomplish tasks and achieve goals.

The Purchasing Authority is to issue periodic changes to these guidelines in accordance with SMMC Section 3-4.12. To that end, on June 29, 2018, City Manager Jason Stilwell, as the Purchasing Authority, issued a revision of CAM 2007-01. The 2018 revision did not adjust the thresholds for non-public works, rather it adjusted the thresholds for public works in accordance with the California UPCCA and added two sections, Federally Funded Procurements and Federal Transportation Administration Procurements , to specifically outline requirements for federally funded projects to ensure compliance with these standards.

What are the current and proposed purchasing limits for staff, Department Directors, the City Manager and the City Council?

The historical purchasing limit thresholds and recommended changes are reflected in the table in Attachment B, and a summary listing the maximum limitations being requested to change is provided in the following tables. The Purchasing Authority should issue revisions to the Purchasing Guidelines manual when these thr esholds change in accordance with SMMC Section 3-4.12.

5 Non-Public Works Purchases
These maximum thresholds are discretionary and have no limitations other than the SMMC.

Approval Authority Purchase Type Current Max
Threshold
New Max Threshold
Department Staff No contract/PO $1,000 $5,000
Dept. Director or
designee
Open
Market/Informal
Bid
$10,000 $15,000
Dept. Director &
Finance Director
Open
Market/Informal
Bid
< $75,000 < $75,000
Finance Director &
City Manager
Open
Market/Informal
Bid
< $75,000 < $100,000
City Council Formal Bid $75,000+ $100,000+

Public Works Purchases
These maximum thresholds are outlined and in accordance with the maximum allowed limitations set in the California UPCCA Act.

Approval Authority Purchase Type Current Max
Threshold
New Max Threshold
Dept. Director No Bid < $45,000 < $75,000
City Manager Informal Bid $175,000 $220,000
City Council Formal Bid $175,000+ $220,000+

Federally Funded Procurements
For federally funded procurements , the maximum allowed limitations set in the 2 CFR 200 Part D would apply. The recommended maximum thresholds set for federally funded non-public works purchases are in accordance with the federal regulation, but for federally funded Public Works purchases, the maximum allowed thresholds are recommended to increase, but will be more restricted in accordance with federal regulations as listed in the table below.

Public Works Purchases

Approval Authority Purchase Type Current Max
Threshold
New Max Threshold
Dept. Director No Bid < $45,000 < $50,000
City Manager Informal Bid < $75,000 < $100,000
City Council Sealed Bid $75,000+ $100,000 +

6 Why is staff seeking to update purchasing approval limit levels?

Staff is seeking to update the purchasing approval limit levels to take into account the Government Finance Officers’ Association’s (GFOA’s) best practices and standards related to purchasing, and to ensure that the City’s new enterprise resourc e planning system is set up appropriately. Staff is recommending to update the maximum thresholds in order to provide efficiency to the purchasing processes, which will provide transparency, and save staff time.

GFOA Best Practices and Standards
The GF OA issued a research report in June 2020, titled Fiscal First Aid for the Procurement Office, available online at: https://gfoaorg.cdn.prismic.io/gfoaorg/e8a5a4ee- 1824-45a7-8295-85d4557d4164_FFA-Procurement+Office.pdf. The GFOA recommends governments use purchase requisitions at the beginning of a purchase process and before any request for proposal/bid, order, contract, or purchase activity. This allows staff to track approvals, properly reserve funding, and perform necessary budget checks. It forces approval for the purchase before the purchase. It is also the only way that governments can accurately monitor their budget. Under this process, all purchases would follow the same process; and all requests for purchases would be entered into the financial system, creating transparency and auditability. Most, if not all governments deal with departments or certain staff that struggle to comply with purchasing policies for issuing purchase orders, adhering to spending thresholds, or utilizing competitive solicitations. However, getting approvals and making sure funds are available is essential – especially when every dollar counts. The GFOA recommends that all governments follow a process similar to the one depicted in the table below and use common features found in the financial system for using the procurement process to support budget control.

7 Enterprise Resource Planning System Setup
The City of Santa Maria has been using Tyler Eden as its financial system since 1998.

The technology is outdated and provides minimal functionality compared to modern financial systems. The City’s current financial system (Eden) only maintains core financial records, so most of the City’s financial processes have been handled via paper -based workflows, email, Excel, and/or other side-systems. The average number of transactions processed each month by the Accounting Division in the Finance Department has grown over time as shown in the chart below.

8 The City began the process of planning for an Enterprise Resource Planning (ERP) System implementation with the Fiscal Year (FY) 2018 -20 budget. A Request for Proposals was issued in October 2022, and a selection committee selected a proposal from Cognizant/Collaborate Solutions for the implementation of Workday, SpryPoint, and CanAm/Teller for cashiering. These systems will be integrated to provide seamless workflows. Unlike Eden, these modern sys tems have open interfaces that enable integrations with other systems and workflows. Through these integrations , staff will become more efficient and accurate.

Since June 2024, the Finance staff has been working daily to configure several Workday modules. As part of the planning process for Workday, every financial process had to be reviewed. Two modules, Procurement and Supplier Accounts, work together to deliver Workday’s near-100 percent paperless procurement process and will increase auditability and transparency. Staff configured Workday in a fashion that ensures each purchase follows the appropriate process delineated in the proposed Purchasing Guidelines manual in order to go-live on July 1, 2025.

Through this update, staff seeks to elevate the purchasing approval limit levels as reflected in updated Purchasing Guidelines manual (Attachments C and D) to address the significant increase in the cost of goods and services for non-public works experienced in the last six years and to align threshold s with increased limits in accordance with California UPCCA for public works projects and the United States Office of Management and Budget (OMB) published 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Guidance for Federal Award s in 2024 for federally funded projects.

As configured, Workday will perform necessary budget checks to ensure sufficient budget is available for purchases, contracts, projects, etc.; it will track approvals through the workflows designed to adhere to t he thresholds in the Purchasing Guidelines manual, and properly reserve budget once all approvals have been obtained. Workday’s configuration will support each department’s efforts to make sure funds are available, will set appropriate approvals, and accurately monitor their budgets – especially since every dollar counts.

Local Survey Information
Additionally, a survey of neighboring cities and governmental agencies was requested to review the best local practices. Some highlights of the information tha t was provided is listed as follows:

City of Santa Barbara:
 The maximum threshold for purchases of materials and some services that will not require a contract or PO is $3,500.
 One written quote must be obtained for purchases less than $10,000 of Materials and General Services or Maintenance and Repair.
9  Department Directors are able to enter into a Professional Services Agreement (PSA) up to a maximum of $50,000. City Administrator approval is required for PSA between $50,000 and $103,400.
o The maximum threshold for City Administrator approval is automatically adjusted annually by the percentage change of the Consumer Price Index (CPI).

City of Solvang
 The maximum threshold for purchases that will not require a contract or PO is $1,000.
 Three written quotes must be obtained for purchases of goods between $10,000 and $50,000. Department Directors can approve purchases up to $35,000. City Manager approval is required for purchases between $35,000 and $50,000.  Three written quotes must be obtaine d for PSA between $10,000 and $35,000; Department Director approval is required. Formal bidding is required for PSA more than $35,000 with City Manager approval required between $35,000 and $100,000. City Council approval is required if over $100,000.

City of Ventura:
 The maximum threshold for purchases that will not require a contract or PO is $5,000. Staff is considering increasing the threshold to $7,500.  Department Directors are authorized to enter into PSA up to a maximum of $60,000. City Council approval is required for PSA over $60,000.

County of Santa Barbara
 The maximum threshold for purchases of goods and services that will not require a contract or PO is $3,500.
 Department Directors may appr ove purchases of goods up to $25,000. Formal bidding is required for purchases of more than $25,000.  Department Directors may approve PSA up to $200,000. Formal bidding is not required by is recommended.

County of San Luis Obispo
 The maximum threshold for purchases of goods and services that will not require a contract or PO is $5,000.
 One written quote must be obtained for purchases of goods more than $5,000 but less than $10,000; two written quotes must be obtained for purchases up to $25,000; formal bidding is required for purchases over $25,000.  One written quote must be obtained for purchases of services more than $5,000 but less than $10,000; two written quotes must be obtained for purchases up to $50,000; three written quotes must be obtained f or purchases up to $200,000; formal bidding is required for purchases over $200,000.

10 How were the proposed purchasing approval limits derived?

As was noted above, the Purchasing Guidelines manual issued in 2007 appear to have established the first thresholds for non-public works and public works for the City as reflected in the table in Attachment B. The thresholds for non-public works were not changed in the revision issued in 2018. On June 17, the City Council asked what the thresholds would be if adjusted for inflation. The chart below shows that inflation as measured by the 12-month percent change to the Consumer Price Index (CPI -U) for All Urban Consumers, Los Angeles-Long Beach-Anaheim, CA area from 2019 to 2024 has risen 23.1 percent. Since 2007 inflation has risen 47.1 percent.

Non-Public Works Thresholds Adjusted for Inflation (CPI-U):

Applying the CPI -U to increase the thre shold for purchases that would not require a contract or purchase order (PO) would result in a maximum of $1,700. As was discussed above, the number of transactions processed by the Accounting Division in the Finance Department has grown over time. Staff b elieves that implementation of the workflows in Workday will result in some efficiencies; however, without adjusting the threshold for when a PO is required, it will not likely reduce the average monthly workload. Many of the

11 POs issued each month (represe nted by the gray line) are for dollar amounts between $1,000 and $5,000. Finance staff strongly believes that increasing the minimum threshold to $5,000 will significantly reduce the workload required to issue POs for small dollar purchases. More importantly, Finance staff ensures that the increased threshold will not reduce auditability due to the approvals tracked through the workflows configured in Workday nor transparency as the City Council will continue to receive the warrant register of all payments, which is ratified at each City Council meeting. City Council’s ratification of the warrant register provides visibility into the financial decisions made by the City, allowing the community to see where taxpayer money is being allocated.

Applying the CPI-U to the thresholds for Contracts would result in a range of $1,700 to $16,010. The proposed Purchasing Guidelines manual update seeks to increase the thresholds to a range of $5,000 to $15,000.

Applying the CPI -U to the thresholds for Open Market Purchases / Informal Bid would result in a range of $16,010 to $119,200. The proposed Purchasing Guidelines manual update seeks to increase the thresholds to a range of $15,000 to $100,000.

12 Applying the CPI -U to the thresholds for Formal Bid would increase the minimum from $75,000 to $119,200 with no cap on the maximum. The proposed Purchasing Guidelines manual update seeks to increase the minimum threshold to $100,000.

The Purchasing Guidelines manual should continue to be perceived as a d ynamic document that will change as City personnel find more effective and efficient ways to accomplish tasks and achieve goals. Accordingly, periodic changes to these guidelines should 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.

Impact to the Community
Elevating the purchasing approval limit levels through this policy update will allow the City to realize the efficiencies afforded by the new processes configured in Workday.

Specifically, Workday has been configured to require departments to enter purchase requisitions at the beginning of a purchase process and before any request for proposal/bid, order, contract, or purchas e activity. In Workday, staff will be able to track approvals, reserve funding, and perform necessary budget checks thereby enhancing departments’ abilities to monitor their budget. Under the revised Purchasing Guidelines manual, all purchases will follow the correct process through Workday, thereby creating transparency and auditability. Finance staff ensures that the increased thresholds will not reduce auditability due to the approvals tracked through the workflows configured in Workday nor transparency as the City Council will continue to receive the warrant register of all payments, which is ratified at each City Council meeting. City Council’s ratification of the warrant register provides visibility into the financial decisions made by the City, allowing the community to see where taxpayer money is being allocated.

ATTACHMENT(S)
A. Resolution
B. Summary table of Historical Purchasing Thresholds and Changes C. Redline Version of Purchasing Guidelines manual
D. 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 addr ess the significant increase in the cost of goods and services; 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 Manager is authorized to amend the purchasing approval limit levels in the Purchasing Guidelines manual; 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 1st day of July 2025.

ATTEST:

Chief Deputy City Clerk

Mayor

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

PURCHASING THRESHOLDS COMPARISON
Features Threshold Approval Authority Threshold Approval Authority Threshold Approval Authority References No Contract / PO Under $1,000 Dept Under $1,000 Dept Under $5,000 Contracts Prudent Judgement,
comparative pricing
$1,000 - $10,000 Dept Director, or
designee
$1,000 - $10,000 Dept Director, or
designee
$5,000 - $15,000 Dept Director, or
designee
$15,000 up to $75,000 Dept Director &
Finance Director
$75,000 up to $100,000 Finance Director &
City Manager
Formal Bid Formal Bid/RFP required.

Budgeted Items: award via
PO or Contract.

Not Budgeted: Request City
Manager approval to seek
bids, City Council awards.
$75,000 - more City Council $75,000 - more City Council $100,000 - more City Council CA UPCCA Act
No Bid Budgeted Projects: award
via PO or Contract.

Under $30,000 Dept Director Under $45,000 Dept Director Under $75,000 Dept Director under $75,000
Informal Bid subject to Sec22034 of the
Act, CA Uniform CCAC Sec
22036
$30,001 - $125,000 City Purchasing
Authority, Director of
PW, City Engineer
$45,001 - $175,000 City Purchasing
Authority, Director of
PW, City Engineer
$75,000 - $220,000 City Manager
$75,000 - $220,000
Formal Bid $125,001 - more City Council $175,001 - more City Council $220,000 - more City Council $220,000 - more 2 CFR 200 Part D
Goods N/A N/A Under $10,000 Under $50,000
Services N/A N/A Under $3,500 Under $50,000
Small Purchases less than lower of City
Threshold of $75,000 and
Fed Simplified Acquisition
(SAT) of $250,000
N/A N/A Under $75,000 Under $100,000
up to $250,000
Sealed Bid more than lower of City
Threshold of $75,000 and
Fed Simplified Acquisition
(SAT) of $250,000
N/A N/A $75,000 - more $100,000 - more
$250,000 - more
up to $50,000
Proposed 2025 Purchasing Policy2018 Purchasing Policy2007 Purchasing Policy $10,001 - $74,999 Dept Director 0
Non-
Public
Works
A) General Purchases
B) Maintenance Repair
and Service Contracts
C) Professional Services
Contracts
Micro-Purchase
Dept Director$10,001 - $74,999Dept solicits 3 written
quotes/proposals
Open Market
Purchases /
Informal Bid
Public
Works
Federal Goods & Services
Attachment B

Page 1 of 1 ends

TO:

FROM:

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

Page 1 ends

SUBJECT: PURCHASING GUIDELINES

PURPOSE
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.

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.

If you have questions 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 C
City of Santa Maria

Purchasing Guidelines
Prepared by the Department of Finance

Revised: July 1, 2018July 1. 2025

Purchasing Guidelines
Prepared by the Department of Finance
,

Santa Maria
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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

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Santa Maria
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City of Santa Maria

PREFACE
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 seventyforty-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.

Federally 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 perceived 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.

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.

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.

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.

City of Santa Maria

GUIDELINES
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
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 director and Finance Director
up to $75,000, and by City Manager and
Finance Director 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 Council awards contract 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 Council awards contract after bids
received and evaluated.

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.
 Award by purchase order or contract signed
by department director and Finance Director
up to $75,000, and by City Manager and
Finance Director up to $100,000

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.

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PURCHASING GUIDELINES
Purchasing System Overview, continued
G-3

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Purchasing System Overview, continued
G-4

* 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 Council awards contract after RFP’s
received and evaluated.

Greater than
$10,000$15,000, Less
than
$75,000$100,000
(open market)
 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.
 Award by department head and Finance
Director up to $75,000, and by City Manager
and Finance Director up to $100,000

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

PROFESSIONAL
SERVICES *

Santa Maria
*****
All-America City

�
®

G-4
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 information 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:
• 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.

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 and Finance Director for more than $15,000 but less than $75,000.

The award of bid and entry into contract is authorized by the City Manager and Finance Director for more than $75,000 but less than $100,000.

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G-7
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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 identified 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.

Appeal of award of bid: An 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.

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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 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. 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 same 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.

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.

The award of bid and entry into contract is authorized by the department director and Finance Director for more than $15,000 but less than $75,000.

The award of bid and entry into contract is authorized by the City Manager and Finance Director for more than $75,000 but less than $100,000.

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 identified 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.

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.

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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.

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 information 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:

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 and Finance Director for more than $15,000 but less than $75,000.

The award of bid and entry into contract is authorized by the City Manager and Finance Director for more than $75,000 but less than $100,000.

Formal Process Contract:

Purchases of $ 75,000100,000 or more: Contracts for professional services of $75,000$100,000 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.

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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.

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 projects 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.

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: 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 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 budgeted maintenance of public works to the lowest responsible bidder following requirements of state law applicable to chartered cities.

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 agency. 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 perform successfully under the terms and conditions of a proposed procurement.

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

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.

Small 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.

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 -price 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:

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.

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.

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:

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.

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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.

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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.

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.

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Consultant Conflict of Interest Filing
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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.

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.

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City of Santa Maria

SPECIAL PROVISIONS
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.

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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 $ 100,000220,000 or more, for public works, or more than a $100,000 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 $ 100,000245,000 for public works, and $125,000 for supplies, equipment, material or services, including professional services . 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 more than $100,000 for supplies, equipment, material or services, including professional services.

Confirmation of Emergency Purchase. Staff 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 $100,000 for supplies, equipment, materials and services, including professional services.

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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.

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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.

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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.

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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:

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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.

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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.

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.

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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.

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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. Micro-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 $10,000 up to $50,000 or less for products . These thresholds are periodically adjusted for inflation.

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1. When Appropriate. If permitted by State and local law, the Recipient may acquire property valued at $10,000 or less up 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 less up to $50,000 as 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. Procedures. 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 purchase 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 City of Santa Maria

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law, or otherwise as it considers appropriate.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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:

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.

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.

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,
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,
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.

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.

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 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)

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)

City of Santa Maria

APPENDIX
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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)
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 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)
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) 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)
A-6

::1�r5•

CONTENTS

RESOLUTION NO. 2004- 31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA

AUTHORIZING THE ESTABLISHMENT OF A COOPERATIVE PURCHASING

PROGRAM FOR THE PURPOSE OF

PROCURING SUPPLIES, SERVICES AND/OR EQUIPMENT

WHEREAS, Section 3-4 of the Santa Maria Municipal Code sets forth the City's policies and procedures for purchasing ; and

WHEREAS, Section 3-4.04 of the municipal code discusses open market purchases and Section 3-4.05 sets forth the competitive bidding procedures; and

WHEREAS, it is desirable to establish the ability for cooperative purchases with other governmental, public or quasi -public, and non-profit entities.

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

J.9-c!tl/>!IJ.'!:,never the Purchasing Agent finds that the public interest and convenience _.,,;5,fould b_e�tfest served by utilizing another entity's contract for competitive pricing of • �◊'goc;,�ds·an�Jol�ervices, the Purchasing Agent may buy directly from a vendor if the :.�.... ,?•-.�ccin• .t.ra�ct-,w• ·a·S- -::.a.warded within the last twelve months and the contract was for . -=: ;�identicalfufiriearly identical goods and/or services. ��\� .� �'�{� ]/�
PA�SE_D AND�ADQPTED at a regular meeting of the City Council of the City of Santa Mai;'s",�f day of Ma,ch, 2004. � .
_,cc••,c, �tpuo

APP • AS� FORM:

BY: /�
�,;, CITY TTORNEY

City of Santa Maria
Written Quote Quotation Evaluation Summary
Verbal/Telephone Quote
Date Prepared: Department:

Prepared By:

Supplier's Name Supplier's Name Supplier's Name
Vendor:

Telephone No:

Quoted By:

Item
No.

Description Quantity Unit Unit
Price
Total
Price
Unit
Price
Total
Price
Unit
Price
Total
Price

Total Quotation
Cash Discount Terms
F.O.B.

Delivery Time From Receipt of Order

A-7

City of Santa Maria
Emergency Purchase Documentation

DATE
Department/Division:

Vendor:

Address:

Telephone: Emergency Date:

Type of Emergency Cost:

JUSTIFICATION FOR EMERGENCY PURCHASE

EMERGENCY
DEFINITION:

1. To preserve or protect life, health or property; or

2. To provide assistance during a natural disaster; or

3. To forestall a shutdown of essential public services.

Please explain emergency:

Since emergency purchases do not normally provide the City an opportunity to obtain competitive quotes, it is important to keep these types of purchases to an absolute minimum. The following procedures shall be followed after the emergency:

• Complete a requisition and obtain a purchase order within two days of the emergency.
• Notify City Manager of emergency costs greater than $10,00050,000 but less than
$100,000125,000.
• Notify City Council at next regularly scheduled meeting of emergency costs greater than $100,000125,000,
• Emergency purchases causing line item budget shortfalls, shall be the responsibility of the department to:
• Obtain City Council approval for additional appropriation; or • Transfer appropriations from other line item accounts to cover purchase.

DEPARTMENT HEAD CITY MANAGER

Date Date

A-8

A-9

REQUEST FOR

STANDARDIZATION

SOLE SOURCE
DATE: [ ]

Sole Source Requested By: Ext.

Suggested Vendor:

Address:

1) Account to be charged:

Available Balance in Account:

2) Account to be charged:

Available Balance in Account:
3) Account to be charged:

Available Balance in Account:

Estimated Cost:

JUSTIFICATION FOR REQUEST

SOLE SOURCE: The purchase of supplies, materials or equipment, which can be obtained from only one manufacturer, such as a replacement part, a component of an existing system, or only one manufacturer.

Please explain:

A-10

STANDARDIZATION: The purchase may be limited to a single brand or trade name based on the following criteria: (Please check those that apply).

Repair and maintenance costs would be minimized.

User personnel training would be minimized.

Supplies or spare parts would be minimized.

Modifications to existing equipment would not be necessary Training of repair and maintenance personnel would be minimized.

Matching existing supplies, materials or equipment is required for proper operation of a function or program.

For standardization requests, explain how the criteria checked above applies:

APPROVAL:

Department Head or Designee

Reviewed by Finance Staff

Director of Finance
A-11

CAPITAL PROJECTS

SUMMARY OF MOBILE EQUIPMENT & REPLACEMENT

REPLACEMENT EQUIPMENT
DESCRIPTION 2018-19 2019-20 2020-21 2021-22

PUBLIC SAFETY

01 Spartan Pumper

$ 600,000

$
03 Spartan Pumper Fire Truck 650,000
03 Spartan Pumper Fire Truck 650,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
11 Ford Crown Victoria B/W 40,000
11 Ford Crown Victoria B/W 40,000
Solar DUI Radar Trailer Message Board 25,000
14 Ford Explorer Police Interceptor SUV B/W 50,000
14 Ford Explorer Police Interceptor SUV B/W 50,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
14 Ford Taurus Police Interceptor Sedan B/W 40,000
01 DUI Checkpoint Trailer 25,000
07 Ford Expedition XLS 55,000
10 Mercury Grand Marquis 28,000
99 International Fire Brush Truck 428,000
13 Ford Expedition XL SSV 4X4 60,000
13 Chevy 1500 Ext Cab 4X4 40,000
15 Ford CMAX Hybrid 4Dr 36,000
15 Ford Fusion Hybrid 38,000
15 Ford Fusion Hybrid 40,000
15 Ford Fusion Hybrid 39,000
15 Ford Fusion Hybrid 40,000
14 Chevy Impala 30,000
15 Ford Fusion Hybrid 38,000
15 Ford Fusion Hybrid 38,000
13 Dodge Avenger 4 Door 30,000
13 Chevrolet 1500 Ext Cab PU 34,000
15 Ford Explorer B/W SUV 50,000
15 Ford Explorer B/W SUV 50,000
15 Ford Explorer B & W SUV 50,000
15 Ford Explorer B & W SUV 50,000
15 Ford Explorer B & W SUV K9 52,000
15 Ford Explorer B & W SUV K9 56,000
08 Ford E450 SERT Van 70,000
14 Ford Escape 35,000
14 Chevy Impala 28,000
14 Chevy Impala 28,000
14 Chevy Impala 4 Door Sedan 28,000
14 Ford Taurus B/W 40,000
14 Ford Taurus B/W 42,000
14 Ford Taurus B/W 41,000
14 Ford Explorer B & W SUV K9 54,000
14 Ford Taurus B/W 41,000
15 Ford Explorer B & W SUV 50,000
15 Ford Explorer B & W SUV 50,000
Upgrade Sedan to Sport Utility Vehicle (SUV)* 60,500
Emergency Vehicle* 88,500
PUBLIC SAFETY APPROPRIATIONS $ 1,605,000 $ 1,480,000 $ 580,000 $ 723,000 *Denotes new equipment to be Purchased
A-12

PUBLIC UTILITIES

07 Ford Ranger

$ 28,000

$
07 Tarpomatic 110,000
05 Tarpomatic ATM 110,000
11 Autocar Automated Sideloader 375,000
11 Autocar Automated Sideloader 375,000
08 Ford F-250 Standard Cab Pickup w/ Liftgate 35,000
09 Cat 627 Scraper 1,000,000
08 John Deere Tractor 60,000
08 Ford F-250 4X2 Standard Cab w/ Flat Bed 40,000
09 Toyota Prius Hybrid 28,000
09 Toyota Prius Hybrid 28,000
11 Autocar/AMREP Front Loader 325,000
11 Autocar/AMREP Front Loader 325,000
11 Autocar/AMREP Front Loader 325,000
08 Ford F350 DRW Utility Boby 70,000
08 Ford F-250 Flat Bed w/ Boxes 40,000
08 Ford F-250 4X2 Standard Cab w/ Flat Bed 40,000
00 Gaskin 5th Wheel Dumpster Trailer 20,000
11 Ford Ranger 4X2 PU 23,000
13 Std Cab 2500HD 4X4 42,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
14 Autocar Front End Loader 265,000
14 Autocar Front End Loader 265,000
14 Autocar Front End Loader 265,000
14 Autocar Front End Loader 265,000
14 Autocar Automated Side Loader 288,000
14 Autocar Automated Side Loader 288,000
99 Volvo Autocar Dump Truck 135,000
10 Sullair Portable Air Compressor 23,000
Landfill 4x4 Sport Utility Vehicle (SUV)* 45,000
PUBLIC UTILITIES APPROPRIATIONS $ 801,000 $ 1,388,000 $ 2,904,000 $ 1,873,000 *Denotes new equipment to be Purchased

PUBLIC WAYS & FACILITIES

04 International Dump Truck

$ 200,000

$
05 John Deere Backhoe Loader 150,000
09 Ford Escape Hybrid 35,000
09 Ford Escape Hybrid 35,000
08 Ford F250 35,000
04 Chevy Utility Van 60,000
89 Chemical Sprayer 10,000
11 International ASP Patch Truck W/Side Conveyor 250,000 08 Ford F-250 Standard Cab 4X2 Pickup 28,000
07 Ford 1/2 ton Pickup 28,000
13 Crew Cab 2500HD 4X2 40,000
12 Ford F350 Stakebed/Dump 68,000
PUBLIC WAYS & FACILITIES APPROPRIATIONS $ 265,000 $ 256,000 $ 60,000 $ 358,000 A-13

LEISURE & CULTURAL SERVICES

06 Kubota Tractor/Trailer

$ 80,000

$
09 Advanced Captor 4800P Sweeper/Scrubber 75,000
07 Kubota 4WD Tractor W/Loader 60,000
07 Chevy CK3500 w/ConTractor Body 50,000
11 Ford E350 12 Passenger Van 35,000
11 Ford F150 4X4 SuperCab Pickup 35,000
07 Ford F250 Pickup 30,000
06 Ford F250 30,000
08 Ford F250 28,000
08 Ford F250 28,000
08 Ford F250 28,000
98 Toro Turf Sweeper 25,000
11 Toro GM5910 Mower 125,000
11 Toro GM5910 Mower 125,000
11 Toro GM4000-D Mower 75,000
07 Ford F350 50,000
13 Express Van 12 Passenger 35,000
12 Toro GM 328 Bagger Mower 35,000
12 Toro GM 7210 W/60 in Deck 35,000
08 Ford F-350 Standard Cab Diesel Pickup 30,000
08 Ford F-250 Extended Cab Longbed Pickup 28,000
08 Ford F-250 Extended Cab Longbed Pickup 28,000
15 Ford Utility PI SUV AWD 39,000
15 Ford SUV FWD 15,000
15 Ford 4X2 Stake Bed W/Liftgate 51,000
14 Tractor W/Loader 85,000
13 Chevy 1500 Ext Cab 4X4 40,000
13 Chevy EXT Cab 2500HD 4X4 45,000
Multi Terrain Loader* 140,000
Rotary Mower* 17,500
LEISURE & CULTURAL SERVICES APPROPRIATIONS $ 521,500 $ 706,000 $ 85,000 $ 190,000

*Denotes new equipment to be Purchased

GENERAL GOVERNMENT

02 Chevy Blazer

$ 30,000

$
07 Ford Escape Hybrid 35,000
07 Ford Escape Hybrid 35,000
07 Ford Escape Hybrid 28,000
07 Ford Escape Hybrid 28,000
08 Ford Escape Hybrid 30,000
15 Ford CMAX Hybrid 4Dr 26,000
15 Ford Escape 26,000
GENERAL GOVERNMENT APPROPRIATIONS $ 100,000 $ 56,000 $ $ 82,000

GRAND TOTAL $ 3,292,500 $ 3,886,000 $ 3,629,000 $ 3,226,000 FUNDING SOURCES:

FLEET SERVICES $ 3,081,000 $ 3,746,000 $ 3,629,000 $ 3,226,000 CAPITAL PROJECTS - GENERAL 149,000
SOLID WASTE DISPOSAL FUND 62,500 140,000
GRAND TOTAL $ 3,292,500 $ 3,886,000 $ 3,629,000 $ 3,226,000 A-14

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-15

TABLE OF CONTENTS Page

I. QUICK REFERENCE - QUESTIONS & ANSWERS A-15
What is a Procurement Card?
What are the advantages for using the card?
Who should have a card, and how do you obtain one?
How are purchases made?
How are purchases tracked and verified?
Does the card have a spending limit?
Who pays the bill, and how are the expenses coded to the ledger? What happens when a bill is incorrect or an item needs to be returned? What if a card is lost or stolen?

II. OVERVIEW A-16
Purpose
Benefits of the Procurement Card Program
Procurement Card Definition
Responsibility
Requesting a Procurement Card
Cardholder Agreement

III. USING A PROCUREMENT CARD A-18
Types of Purchases
Spending Limits
Authorized Card Users
Card Purchases Delivered to the City
Returning Merchandise Purchased with the Card

IV. ACCOUNTING/ADMINISTRATION PROCEDURES A-20
Recordkeeping
Billing Procedures
Disputes/Unauthorized Charges
Administration

ATTACHMENTS ON FILE IN ADMINISTRATIVE SERVICES
A - Procurement Card Program Transaction Log (PCPLOG)
B - Procurement Card Program Request for New Account (PCPACCT) C - Procurement Card Program Cardholder Agreement (PCPCHAGR) D - Procurement Card Program Types of Purchases (PCPTOP) E - Procurement Card Program Cardholder Statement of Disputed Item (PCPCHSDI)

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-16

I. QUICK REFERENCE - QUESTIONS & ANSWERS

What is a Procurement Card?

➢ VISA card for small dollar purchases (supplies, hardware, tools, etc.). ➢ Limited use for payment of services.

What are the advantages for using the card?

➢ Streamlines process - no requisitions, purchase orders, or direct purchase orders.
➢ Vendors will receive payment sooner - within 48 hours. ➢ Enhanced supervisory control of purchases.
➢ Accounts Payable pays VISA one consolidated payment per month.

Who should have a card and how do you obtain one?

➢ Any employee responsible for making purchases.
➢ Cardholder must be approved by the department head.
➢ Submit application to Procurement Card Coordinator in Finance.

How are purchases made?

➢ Cardholder telephones, faxes, emails or visits vendor and places order. ➢ Cardholder provides vendor with VISA card number and delivery instructions.

How are purchases tracked and verified?

➢ Cardholder maintains a monthly Procurement Card Program Transaction Log (Attachment A) of card purchases and receipts.
➢ Cardholder reconciles the Transaction Log and receipts against monthly statement.
➢ Cardholder totals all purchases, for each account number, and records them in Transaction Log.
➢ Cardholder forwards Transaction Log, receipts, and statement to approving official.
➢ Approving official audits Transaction Log and statement, signs log, and forwards to Accounts Payable.

Does the card have a spending limit?

➢ Individual transaction limit up to and including $500. ➢ Monthly spending limit determined by Purchasing, based on the business needs of each department.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-17

Who pays the bill, and how are the expenses coded to the ledger?

➢ Accounts Payable pays central bill.
➢ Purchases are charged to account numbers on cardholder's Transaction Log.

What happens when a bill is incorrect or an item needs to be returned?

➢ Cardholder works with vendor to arrange for return and credit. ➢ Cardholder notifies U S Bank of incorrect charge on statement. ➢ Cardholder verifies that credits appear on future statements.

What if a card is lost or stolen?

➢ Immediately call U S Bank's Customer Service at 1-800-227-6736. ➢ Call Procurement Card Coordinator in Finance (x448) immediately during normal business hours of Monday - Friday 8:00 to 5:00.

II. OVERVIEW

Purpose

The purpose of the Procurement Card Program is to provide an efficient, cost - affective alternative for the purchase and payment of small dollar expense items.

The purpose is to streamline the traditional procurement process by reducing the number of requisitions, purchase orders, receivers, direct purchase orders, invoices, and checks needed for handling miscellaneous low dollar transactions.

Streamlining the process and reducing paperwork benefits the City by reducing overhead and improving efficiency.

Benefits of the Procurement Card Program Include:

➢ improved user satisfaction;
➢ prompt order confirmation and accelerated product receipt; ➢ improved vendor relations by eliminating the potential for late payments; and
➢ cost savings by reducing the level of paperwork for small dollar purchases from the initial purchase through the issuance of a check for payment.

Procurement Card Definition

A VISA card issued to designated employees for purchasing small dollar expense items for departments.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-18

Responsibility

Purchasing: Purchasing is responsible for managing, authorizing, and terminating procurement cards, and for maintaining a record of individuals authorized to conduct procurement card transactions.

Department Heads: Department heads are responsible for identifying individuals within the department who should be issued a procurement card. Department heads must approve individual cardholder's application for procurement cards by signing the Procurement Card Program Request for New Account form (Attachment B). Department heads are responsible for requesting changes to existing procurement cards.

Department heads are responsible for ensuring that use of the procurement cards in their area conforms to City policy and Procurement Card Program Policy and Procedures.

Approving Officials : Approving officials are responsible for auditing monthly statements and forwarding to Accounts Payable. Approving officials are also responsible for reporting any disputed/unauthorized charges to U S Bank and to the Procurement Card Coordinator.

Accounts Payable : Accounts Payable is responsible for paying the monthly consolidated VISA statement.

Cardholder: The cardholder is responsible for ensuring that usage of the card conforms to Procurement Card Program Policy and Procedures, and that the card is used exclusively for City of Santa Maria business purposes.

The cardholder is responsible for forwarding the monthly Transaction Log and receipts with the monthly statement to the approving official. The cardholder is responsible for the security of the card.

Requesting a Procurement Card

To apply for a procurement card, complete a Request New Account form, with department head's approval. Submit the form to the Procurement Card Coordinator in Purchasing.

Cardholder Agreement

Upon acceptance of the procurement card, an employee must sign a Cardholder Agreement (Attachment C). Upon execution of this agreement, the employee is acknowledging receipt of the card and acceptance of responsibility for abiding by the terms and conditions of the agreement.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-19

III. USING A PROCUREMENT CARD

Types of Purchases (Attachment D)

Allowable Purchases: The procurement card is intended to be used for purchase of small dollar expense items. These expense items can be purchased and picked up directly from the vendor, or can be procured by telephone, fax or the Internet and delivered to the cardholder's designated address.

The procurement card may be used to pay for services on a limited basis. Due to the complexity of Internal Revenue Service 1099 reporting requirements for payment of services, use of the card for services is restricted to vendors who are incorporated, and therefore are exempt from 1099 reporting requirements. It is the cardholder's responsibility to determine if a service vendor is incorporated.

Examples of the types of purchases allowed using the procurement card are:

- supplies not available through a current requirements purchase order; - hardware;
- machine parts;
- miscellaneous supplies; and
- services from incorporated vendors.
- travel and training

Restricted Purchases: The following types of goods may not be purchased with the procurement card:

- Services from unincorporated vendors; and
- Supplies and services available through current requirements purchase orders.

Spending Limits

Individual Transaction Limit : The procurement card is to be used for miscellaneous purchases of expense items up to and including $500 per transaction.

Monthly Credit Limit: Each cardholder's account is assigned a monthly spending limit. Monthly spending limits will be determined by Purchasing based on the business needs of each department.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-20

Authorized Card Users

The procurement card will be issued in the name of the City and the individual designated by the department head. It may be used only by the individual whose name is on the card. Delegation of authority is not permissible in making procurement card purchases. The cardholder is responsible for accounting for all purchases made with their card, unless the card is reported lost or stolen.

Card Purchases Delivered to the City

To ensure prompt delivery of items ordered by telephone, fax, email or by mail, please provide vendors with a complete delivery address. Delivery addresses must include the cardholder's name as it appears on the card; and the correct receiving address.

Example send to:

City of Santa Maria
Your Name
Your Department
Your Address
Santa Maria, CA Your Zip Code

It is the cardholder's responsibility to promptly open packages and verify delivered items against the order records.

Returning Merchandise Purchased with the Card

Cardholders are responsible for managing any returns/exchanges and for ensuring that proper credit is received from vendors for returned merchandise.

These steps should be followed when returning merchandise purchased with the procurement card:

Contact the vendor and obtain instructions for return (return address, return authorization number, if required). Some vendors may charge a restocking or handling fee; and

Review future card statements to ensure that your account is properly credited for any returns.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-21

IV. ACCOUNTING/ADMINISTRATION PROCEDURES

Recordkeeping

Transaction Log : To facilitate the auditing and reconciliation of the monthly statement, the cardholder shall maintain a monthly Transaction Log of procurement card purchases. This Transaction Log shall include:

- the name of the supplier;
- the dollar amount;
- the date of purchase;
- a brief description of the item being purchased; and
- the account number the purchase is to be charged against.

The cardholder shall also acknowledge receipt of the item and verify that the item has been reconciled to the cardholder's statement.

Receipts: Every effort should be made to obtain the VISA card receipt or vendor sales receipt for purchases made in person, and delivery of goods receipts for purchases conducted by telephone, fax and email. These receipts shall be kept with the monthly Transaction Log.

Receipts and Transaction Logs : Must be presented to the approving official with the monthly statement and Transaction Log for approval. Individual receipts do not require department head or approving official approval.

Billing Procedures

Monthly Statements: The primary responsibility of the department, in regard to the monthly statement, is to perform a monthly reconciliation of the Visa statement.

The reconciliation can be performed by the cardholder, or someone other than the approving official. The reconciliation requires a cross -check of charge slips and the Transaction Log against the billing statement to verify accuracy.

Upon reconciliation, the statement, with Transaction Log and receipts attached, will be forwarded immediately to the approving official for approval. The reconciliation and approval process must be complete within three working days after receipt of the bank statement. Once approved, by the approving official, the statement and back-up documentation shall be forwarded to Accounts Payable immediately for payment.

The department shall establish procedures to ensure that statements are processed in time for payment. The procedures should consider availability of the cardholder, reconciler, or approving official for absences such as vacation, sick time, or other time away from the City.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-22

Paying the Statements: The VISA procurement card billing system is described as an individual bill/central pay arrangement. Each cardholder will receive a monthly activity statement, however, payment will be centrally executed by Accounts Payable.

The grand total of all charges, with supporting detail from the approving official, will be forwarded to Accounts Payable. Accounts Payable will generate payment in full to U S Bank/VISA upon receipt of the centralized billing statement.

Accounting for the Charges : Accounts Payable will post the individual account totals on each statement to the department account number designated.

Disputes/Unauthorized Charges

Notification: If a suspicious charge appears on a monthly statement, the cardholder should first attempt to verify the charge with records of purchase. If the cardholder does not agree with a charge posted on the billing statement, the cardholder must:

Notify the vendor first and attempt to resolve the dispute with the vendor.

Notify U S Bank in writing, using the Cardholder Statement of Disputed Item form (Attachment E), within 60 days after the date of the first statement on which the disputed charge occurred; and

Notify the Procurement Card Coordinator of the disputed charge by forwarding a copy of the Cardholder Statement of Disputed Item form to Purchasing.

U S Bank will research the disputed charge and make any necessary adjustments.

Credit to Account : When U S Bank receives proper notification of a disputed charge, the charge amount will be removed from the total owed and shown on the corporate monthly statement as a "suspense" item. When the dispute is resolved, the charge will either be removed from the monthly statement (if the charge was improper) or charged to the cardholder (if research shows the charge was valid).

Administration

Lost or Stolen Cards : If a card is lost or stolen, the cardholder shall immediately notify the issuing bank (U S Bank) by calling 1-800-227-6736. The Customer Service Representatives at the 24-hour toll-free number will complete a lost/stolen report and will order a replacement card immediately. The cardholder shall notify their supervisor at the earliest available time.

The cardholder must also notify the Procurement Card Coordinator in Purchasing x448) during normal business hours of Monday - Friday 8:00 to 5:00.

CITY OF SANTA MARIA

PROCUREMENT CARD PROGRAM

POLICY AND PROCEDURES
A-23

Failure to promptly notify the issuing bank of the theft, loss, or misplacement of the VISA card could make the cardholder responsible for fraudulent use of the card.

Terminations and Cancellations : Cardholders who terminate employment must surrender their VISA card at the time of separation from the City to Purchasing.

Department heads are responsible for notifying the Procurement Card Coordinator of cardholder termination. The Procurement Card Coordinator will notify U S Bank and the cardholder's VISA will be deactivated.

Cardholders who fraudulently use the procurement card after separation from the City may be subject to legal action.

Transfers: Cardholders who are transferred to another department or division must contact the Department head in the new department for approval of transfer of their credit card to the new department.

Department heads are responsible for notifying the Procurement Card Coordinator of cardholder transfers. Failure to notify the coordinator in a timely fashion may result in another department's charges appearing against the department head's budget.

The Procurement Card Coordinator will notify U S Bank and the cardholder's VISA will be deactivated, or, with the new department head's approval, reassigned to the cardholder's new department.

Card Renewal: A renewal card will automatically be mailed to the cardholder at the address on file two years from the issue date, and every two years thereafter.

Setting Up Vendors to Accept VISA: The Procurement Card Coordinator and U S Bank can assist non-VISA vendors in establishing VISA accounts. Contact the U S Bank Merchant Group at (612) 973 -3041 or the Procurement Card Coordinator for assistance.

CITY OF SANTA MARIA
A-24

CONSULTANT CONFLICT OF INTEREST QUESTIONNAIRE
Consultants, as defined by Section 18701 of the Regulations of the Fair Political Practices Commission, Title 2, Division 6 of the California Code of Regulations, are required to file a Statement of Economic Interests within 30 days of approval of a contract services agreement with the City or its subdivisions, on an annual basis thereafter during the term of the contract, and within 30 days of completion of the contract.

The answers to the following questionnaire will help to determine whether the scope of duties to be performed includes the making or participating in the making of governmental decisions which may foreseeably have a material effect on the consultant's own financial interests. This section to be completed by Department administering contract.

A. Will consultant make governmental decisions whether to:

1. Approve a rate, rule or regulation?

2. Adopt or enforce a law?

3. Issue, deny, suspend or revoke any permit, license,
application, certificate, approval, order, or similar
authorization or entitlement?

4. Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract which
requires agency approval?

5. Grant agency approval to a contract which requires
agency approval and in which the agency is a party or
to the specifications for such a contract?

6. Grant agency approval to a plan, design, report study, or similar item?

7. Adopt or grant agency approval of policies, standards, or guidelines for the agency, or for any subdivision
thereof?

B. Will the consultant participate in making governmental decisions or serve in a staff capacity with the agency and in that capacity perform the same or substantially all the same duties for the agency that would otherwise be
performed by an individual holding a position specified in the City's Conflict of Interest Code?
Consultant Name
Company Name
Project Description
Contract Term Begins Ends
Administering Dept
Scope of Work – be
specific (can attached
copy of contract)

Yes No
Yes No

Yes

No
Yes No
Yes No
Yes No
Yes No

Yes

A-25

CITY OF SANTA MARIA

CONSULTANT CONFLICT OF INTEREST QUESTIONNAIRE

Page 2 ends

Santa Maria City CouncilJuly 1, 2025

Santa Maria City Council
July 1, 2025