Attachment C -Purchasing-Guidelines-2025 Update - Redline.pdf — Santa Maria City Council, July 1, 2025

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
*****City
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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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City of Santa Maria

PURCHASING GUIDELINES
Purchasing System Overview, continued
G-3

City of Santa Maria

PURCHASING GUIDELINES
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

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®

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 GUIDELINES

Purchasing Responsibility - General Purchases, continued

Formal Bid Purchases:

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

For items not 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.

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-24

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

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

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

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

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

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

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

City of Santa Maria

PURCHASING GUIDELINES
Federally Funded Procurements, continued
G-25

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

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

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

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

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

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

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

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

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.

City of Santa Maria

PURCHASING GUIDELINES
Consultant Conflict of Interest Filing
G-27

Procedure, continued:

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

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

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

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

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.

Santa Maria
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All-America City

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G-27

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.

City of Santa Maria

PURCHASING GUIDELINES
S-2

Special Provisions - Emergency Purchase Documentation

Summary:

The City is not required to engage in either informal or formal competitive bidding in an emergency. The City Council delegates to the City Manager the authority to waive any procedures in the Purchasing Guidelines that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services. "Emergency Purchases" are those procurements required to prevent the immediate interruption or cessation of necessary City services or to safeguard life, property or the public health and welfare. If the purchase is expected to be $ 100,000220,000 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.

City of Santa Maria

PURCHASING GUIDELINES
S-3

Special Provisions - Cooperative Purchasing Program

Summary:

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

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

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

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

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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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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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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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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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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.

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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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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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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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METHODS OF PROCUREMENT, continued:

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

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

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

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

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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.

City of Santa Maria

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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:

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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.

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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.

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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,
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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,
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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.

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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.

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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

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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)

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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
A-1

CHAPTER 3-4 PURCHASING SYSTEM

Sections 3-4.01. through 3-4.09. were repealed by Ordinance 2007-02.

Article I. General Provisions
Section 3-4.10. Purpose of Provisions.

A purchasing system for the City of Santa Maria is adopted to establish efficient procedures for securing supplies, services, specified construction and operations work, and equipment at the lowest possible cost commensurate with quality requirements; to exercise positive financial control over purchases; to clearly define authority and accountability for the purchasing function; to minimize the written documentation, administrative actions and expense of processing purchase transactions; and to assure the quality of purchases made on behalf of the City. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.11. Purchasing Authority Designated – Powers and Duties.

The City Manager, or his or her designated representative, shall be the Purchasing Authority. The Purchasing Authority function shall include the following powers and duties:
(a) To develop and prescribe, for the departments, such administrative policies, forms and files as may be reasonably necessary for the internal management and operations of these purchasing procedures; (b) To negotiate, purchase, and contract for supplies, services, specified construction and operations work, and equipment in accordance with purchasing procedures prescribed by this chapter, and such other rules and regulations as shall be prescribed by the City Council;
(c) To act to procure the needed quality in supplies, services, and equipment at minimum expense; and (d) Endeavor to obtain as full and open competition as possible on all purchases. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.12. Purchasing Guidelines.

In addition to the provisions of this chapter, the City Manager shall prepare and implement a guideline of purchasing policies and procedures. Said procedures may be amended, as needed, by the City Manager to address operational issues as they arise. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.13. Bidding Procedures.

The purchase of supplies, services, equipment, as well as operations and construction projects whose cost does not exceed the limit for informal bidding referenced in Chapter 8 -16 of this Code, shall be by bid procedures set forth in this Chapter. Such procedures may be dispensed with, at the discretion and judgment of the Purchasing Authority as to the best interests of the City, as follows:
(a) When the amount to be expended is less than the minimum bid requirement stated in the Purchasing Guidelines;
(b) When an emergency requires an order be placed with the most expedient available source of supply; (c) When the item(s) may be obtained from only one vendor or supplier; (d) When uniform specifications or standards have been established for the item(s); (e) When the purchase may be made cooperatively with one, or more, other units of government; (f) When it is reasonably necessary for the preservation or protection of public peace, health, safety, or welfare of persons or property; or
(g) When the City’s need is of an indeterminate nature and a request for proposal will result in a favorable and efficient comparison of supplies, equipment, and/or services, or (h) When the terms of law require use of another procurement procedure. (Ord. 2007-02, eff. 4/19/07)

Section 3-4.14. Consultant Contract Authority.

The restrictions and provisions of this chapter shall not apply to contracts involving the acquisition of professional or specialized services such as, but not limited to, architects, attorneys, engineers, and other specialized consultants. Selection for such services will be made by an evaluation of proposals solicited from capable professionals, when the cost of the work to be performed falls within the “formal process” range specified in the Purchasing Guidelines. This section shall not prohibit the Purchasing Authority from requiring proposals for work with an estimated cost of less than the Purchasing Guidelines specified amount if, in the discretion of the Purchasing Authority, selection based upon the evaluation of proposals would better service the interest of the City. (Ord. 2007- 02, eff. 4/19/07)
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)
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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
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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
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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
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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
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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
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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

C. Will the consultant manage public
investments?

Department Head Date
When complete, please forward to the City Clerk’s office.

This portion to be completed by the City Manager or his/her designee based on the information provided by the Department.

⁯ Consultant will 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 and will have the same disclosure requirements as listed in the Conflict of Interest Code for that position.

⁯ Consultant’s duties are limited in scope under this contract. Based on these duties this Consultant is limited to disclosure of interests in the following areas:
⁯ Interests in entities that do business or own real property within the jurisdiction.

⁯ Interests in real property located within the jurisdiction. ⁯ Interests in entities engaged in land development, construction or the acquisition or sale of real property.

⁯ Interests in entities that are financial institutions. ⁯ Interests in entities that provide services, supplies, materials, etc. utilized by the agency.

⁯ Interests in entities that provide services, supplies, materials, etc. utilized by the assigned department.

⁯ Interests in entities that are subject to the regulatory, permit, or licensing authority of the assigned department.

⁯ Interests in entities that provide:
⁯ Consultant is exempted from any disclosure requirement because Consultant does not meet the definition of “Consultant” under the Political Reform Act or due to the extremely limited scope of duties under this contact.

City Manager Date
Yes No

Form W-9
(Rev. November 2005)
Department of the Treasury
Internal Revenue Service
Request for Taxpayer
Identification Number and Certification
Give form to the
requester. Do not
send to the IRS.

Print or type
See Specific Instructions on page 2. Name (as shown on your income tax return) Business name, if different from above
Individual/
Check appropriate box: Sole proprietor Corporation Partnership Other ► Exempt from backup withholding
Address (number, street, and apt. or suite no.) Requester’s name and address (optional) City, state, and ZIP code
List account number(s) here (optional)
Part I Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3.

Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose

Social security number
– –
or
Employer identification number
number to enter. –
Certification
Under penalties of perjury, I certify that:

1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and

2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by t he Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, o r (c) the IRS has notified me that I am no longer subject to backup withholding, and

3. I am a U.S. person (including a U.S. resident alien).

Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply.

For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. (See the instructions on page 4.)

Purpose of Form
A person who is required to file an information return with the IRS, must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA.

U.S. person. Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to:

1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued),

2. Certify that you are not subject to backup withholding, or

3. Claim exemption from backup withholding if you are a U.S. exempt payee.

In 3 above, if applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the
withholding tax on foreign partners’ share of effectively connected income.

Note. If a requester gives you a form other than Form W-9 to request your TIN, you must use the requester’s form if it is substantially similar to this Form W-9.

For federal tax purposes, you are considered a person if you are:
● An individual who is a citizen or resident of the United States,
● A partnership, corporation, company, or association
created or organized in the United States or under the laws of the United States, or
● Any estate (other than a foreign estate) or trust. See Regulations sections 301.7701-6(a) and 7(a) for additional information.

Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners’ share of income from such business. Further, in certain cases where a Form W-9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to
establish your U.S. status and avoid withholding on your share of partnership income.

The person who gives Form W-9 to the partnership for
purposes of establishing its U.S. status and avoiding
withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases:
● The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X

A-26
Form W-9 (Rev. 11-2005)
Sign
Here
Signature of
U.S. person ►
Date ►
A-27

CITY OF SANTA MARIA

A GUIDE TO QUERYING A PURCHASE

ORDER IN EDEN

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City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
A-29

In July 2025 the City is transitioning to its new Enterprise Resource Planning system, Workday.

Detailed instructions will be provided in order to query a purchase order.

There are many reasons you may need to look up a purchase order – i.e. finding Eden’s purchase order or vendor number to process a payment; find the dollar amount paid or remaining on a purchase order; or the vendor’s contact name or telephone number. This guide provides step-by- step instructions to look up purchase order information.

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City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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To locate a Purchase Order in Eden: Click on:
❖ Accounts Payable
❖ Vendor Information
❖ Vendors
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City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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Click on the Query (QBE) icon.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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This is the screen that will come up after clicking on the Query feature.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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Don’t have the vendor number? Move on to the next step.

If you know the vendor number, enter the vendor number in the Vendor # box; then click on the query feature.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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The vendor module is a database, therefore, the vendor name or address must be entered EXACTLY the same as when the vendor was set up by Purchasing.

Have no fear………querying is made easy when you use the WILDCARD (*) feature. The wildcard feature is activated when an asterisk is used in lieu of parts of a name, address, etc.

Example: You want to find K C Body Works
In the “Last Name” type: *BODY*, then click on the query feature.

By adding the asterisk before and after the word BODY, Eden will query all vendors with the text BODY in the name.

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City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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The search can be narrowed by entering as much information as possible ............ add the city name or the address using the wildcard feature in lieu of the street name…click on the query button.

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PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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Eden will query for all vendors with the text “BODY” in the vendor name. In the above example, the bottom tool bar indicates that Eden found 10 vendors with the text “BODY” in the vendor name. Scroll through the vendors by using the arrows.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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If you have located the vendor you can query information by clicking on the various tabs.

To find purchase orders processed for the vendor during the current fiscal year click on the PO History tab.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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This is the screen that will come up after clicking PO History. When you query the PO History Tab Eden only queries the current fiscal year information. To query POs for all fiscal years, click on the filter feature.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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After clicking on the filter feature; select the query icon.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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This screen will come up listing all the POs processed for the vendor. Use the scroll button to see all the POs.

To see details on a particular PO, click on the magnifying glass.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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After clicking on the magnifying glass, select Update Purchase Orders then click on OK.

City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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You now have the ability to query information related to the specific PO. Tab Selection:

Main - Provides the date the PO was generated, the description of the item procured, and the contact person (person responsible for the PO)
Items: Provides details of the cost: type of purchase (goods, service); cost per unit; freight, tax Addresses: Provides the address of vendor and remittance address for payment Totals:

Provides the account number (s) the purchase was charged against; the original amount of the PO; liquidated or amount paid against the PO; amount owing or remaining on the PO, and amount over budget.

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City of Santa Maria

PURCHASING GUIDELINES
A Guide to Querying a Purchase Order in Eden
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Using the above steps you can query invoices and checks processed for the vendor.

Santa Maria City CouncilJuly 1, 2025

Santa Maria City Council
July 1, 2025