EXHIBIT 1
Subject: OC Community Resources
Contract Reimbursement Policy
Effective: July 1, 2010
Revised: January 17, 2020
PURPOSE:
This policy contains updated fiscal documentation requirements for contract reimbursement for OC Community Services and OC Housing & Community Development. The procedures provide instructions for submitting reimbursement demand letter or invoice.
REFERENCES:
Executed County Board of Supervisors approved contract
Budget included in contract or presented as an attachment 48 CFR Part 31 Contract Cost Principles and Procedures
24 CFR Parts 85, 570.502, 570.201, 576.21, 576.51 and 576.61: For OC Housing & Community Development Contracts only.
2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)
BACKGROUND:
The executed Board of Supervisors approved contract is the authorization for all aspects of payment, including the maximum amount to be paid, the payee, and the scope of services and work. Payments are made in strict accordance with the contract terms. Allowable costs are identified in referenced Uniform Guidance and Code of Federal Regulations (CFR).
ATTACHMENTS:
Reimbursement Policy Status Form (RPS-1)
POLICY:
Contractor is responsible for the submission of accurate claims. This reimbursement policy is intended to ensure that the Contractor is reimbursed based on the code or codes that correctly describe the services provided. This information is intended to serve only as a general reference resource regarding OC Community Services’ and OC Housing & Community Development’s reimbursement policy for the services described and is not intended to address every aspect of a reimbursement situation. Accordingly, OC Community Services and OC Housing & Community Development may use reasonable discretion in interpreting and applying this policy to services provided in a particular case. Other factors affecting reimbursement may supplement, modify or, in some cases, supersede this policy. These factors may include, but are not limited to: legislative mandates and County directives. OC Community Services and OC Housing & Community Development may modify this reimbursement policy at any time by publishing a new version of the policy. However, the information presented in this policy is accurate and current as of the date of publication.
Cost incurred by Contractor must be substantiated and incurred during the contract period.
Total of all reimbursements cannot exceed the amount of the contract. Cost must be allowable under applicable Code of Federal Regulations (CFR) or Uniform Guidance. All supporting documentation for reimbursement must be submitted with demand letter or invoice. If contract
requires matching contribution, documentation substantiating contribution match must be submitted with demand letter or invoice.
At any time, based on County’s business needs and/or Contractor’s performance, the County may designate Contractor to submit abbreviated or comprehensive documentation, as identified in the respective sections. Upon designation, Contractor will be notified, in writing via Reimbursement Policy Status Form, of which requirements are in full force. When Contractor is required to submit comprehensive documentation, in addition to the items identified in the Abbreviated Documentation Requirements Section, Contractor must also provide the documentation identified in the Comprehensive Documentation Requirements Section.
PROCEDURES:
Abbreviated Documentation Requirements
Compile and submit:
1. Supporting documentation includes, but is not limited to:
a. General ledger/expense transaction report
b. Payroll register or labor distribution report
c. Payroll allocation plan
d. Personnel Documentation
e. Benefit plan and calculation of benefit
f. Employer-employee contract for non-customary benefits (if applicable) g. Pre-approval documentation for equipment purchases equal to or greater than $5,000
2. The following is required with the first month’s invoice only:
a. Cost allocation plan for rent, utilities, etc.
b. Indirect rate approved by cognizant agency (if applicable)
3. Summary of leveraged resources (if applicable)
4. Demand letters must contain the following certification (if required byContract):
“By signing this report, I certify to the best of my knowledge and belief that the report is true, complete, and accurate, and the expenditures, disbursements and cash receipts are for the purposes and objectives set forth in the terms and conditions of the Federal award. I am aware that any false, fictitious, or fraudulent information, or the omission of any material fact, may subject me to criminal, civil or administrative penalties for fraud, false statements, false claims or otherwise. (U.S. Code Title 18, Section 1001 and Title 31 Sections 3729-3730 and3801-3812)”
5. Grantee Performance Report (if required by Contract)
6. Supporting documentation shall be on single-sided sheets
7. Please redact employees’ Social Security Number from payroll reports
8. Demand letter or invoice, along with supporting documentation shall be submitted to:
OC Community Resources Accounting
601 N. Ross St., 6th Floor
Santa Ana, CA 92701
Comprehensive Documentation Requirements
In addition to abbreviated documentation, compile and submit:
9. Purchase orders, invoices, and receipts
10. Cashed checks
11. Check register
12. Consultant/sub-contractor invoices (with description of services)
13. Travel expense documentation: mileage reimbursement, hotel bill, meal reimbursement ACTION:
Distribute this policy to all appropriate staff
INQUIRIES: Inquiries may be directed to OCCR Accounts Payable at:
[email protected]
Reimbursement Policy Status Form
Per OC Community Resources Contract Reimbursement Policy, in regards to the Contract # listed herein, Contractor is designated with the Documentation Status of Abbreviated unless Comprehensive is checked below. If the contractor’s designation should change to Abbreviated, a new status form shall be approved. All related documentation requirements are in full force, until further notice.
Contractor: City of Stanton
Effective Date: January 25, 2023
Contract #: 012-23010767-CV
Documentation Status: ☒ Abbreviated ☐ Comprehensive
************************************************************************************************************* Program Authorization by: Auditor Controller Authorization by:
Print Name: Julia Bidwell
Signed by:
Date:
Two signatures are required to implement the form.
Distribution:
Contractor
Auditor Controller
Contract File
Program File
Reimbursement Policy Status (RPS-1)
Print Name: Eric Takanishi
Signed by:
Date:
Certification for
a Drug-Free Workplace
City of Stanton Contract # 012-23010767-CV
U.S. Department of Housing
and Urban Development
EXHIBIT 2
Applicant Name
CDBG- CV
Program/Activity Receiving Federal Grant Funding
Acting on behalf of the above named Applicant as its Authorized Official, I make the following certifications and agreements to the Department of Housing and Urban Development (HUD) regarding the sites listed below:
I certify that the above named Applicant will or will continue to provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the Applicant's workplace and specifying the actions that will be taken against employees for violation of such prohibition.
b. Establishing an on-going drug-free awareness program to inform employees ---
(I) The dangers of drug abuse in the workplace;
(2) The Applicant's policy of maintaining a drug-free
workplace;
(3) Any available drug counseling, rehabilitation, and
employee assistance programs; and
(4) The penalties that may be imposed upon employees
for drug abuse violations occurring in the workplace.
c. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph a.;
d. Notifying the employee in the statement required by paragraph a. that, as a condition of employment under the grant, the employee will ---
(I) Abide by the terms of the statement; and
(2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; e. . Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph d.(2) from an em- ployee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, includ- ing position title, to every grant officer or other designee on whose grant activity the convicted
employee was working, unless the Federal agency has
designated a central point for the receipt of such notices.
Notice shall include the identification number(s) of each affected grant;
f. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph d.(2), with respect to any employee who is so convicted ---
(I) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
g. Making a good faith effort to continue to maintain a drugfree workplace through implementation of paragraphs a. thru f.
2. Sites for Work Performance. The Applicant shall list (on separate pages) the site(s) for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code.
Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) Check here0if there are workplaces on file that are not identified on the attached sheets.
I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate.
Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U .S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)
Name of Authorized Official Title
Signature Date
X
formHUD-50070(3/98)
ref. Handbooks 7417.1 , 7475.13, 7485.1 & .3
County of Orange
OC Community Resources
Contract No. 012-23010767-CV
Exhibit 3
CERTIFICATION REGARDING
DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION
LOWER TIER COVERED TRANSACTIONS
This certification is required by the regulations implementing Executive Order 12549, Debarment and suspension, 29 CFR Part 98.510, Participants’ responsibilities. The regulations were published as Part VII of the May 26, 1988 Federal Register (pages 19160-19211) (BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS FOR CERTIFICATION) (1) The contractor or grant recipient of Federal assistance funds certifies, by submission of this exhibit document, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department oragency.
(2) Where the contractor or grant recipient of Federal assistance funds is unable to certify to any of the statements in this certification, the contractor or grant recipient shall attach an explanation to this exhibit document.
Name
Title
Authorized Signature Date
County of Orange
OC Community Resources
Contract No. 012-23010767-CV
Exhibit 3
DEBARMENT AND SUSPENSION CERTIFICATION - Instructions for Certification
1. By signing and submitting this exhibit document, the contractor or grant recipient of Federal assistance funds is providing the certification as set out below.
2. The certification in the clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the contractor or grant recipient of Federal assistance funds knowingly rendered an erroneous certification in addition to other remedies available to the Federal Government, the Department of Labor (DOL) may pursue available remedies, including suspension and/or debarment.
3. The contractor recipient of Federal assistance funds shall provide immediate written notice to the County of Orange/Workforce Investment Board to which this certification document is submitted if at any time the contractor or grant recipient of Federal assistance funds learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.
4. The contractor or grant recipient of Federal assistance funds agrees by submitting this certification document that, should the covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the DOL.
5. The contractor or grant recipient of Federal assistance funds further agrees by submitting this certification document that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.
6. The contractor or grant recipient in a covered transaction may rely upon a certification of a contractor or grant recipient in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. The contractor or grant recipient may decide the method and frequency by which it determines the eligibility of its principals.
7. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of the contractor or grant recipient is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
8. Except for transactions authorized under paragraph 5 of these instructions, if the contractor or grant recipient in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the DOL may pursue available remedies, including suspension and/or debarment.
County of Orange
OC Community Resources
Contract No. 012-23010767-CV
EXHIBIT 4
INSTRUCTIONS FOR COMPLETION OF
SF-LLL DISCLOSURE OF LOBBYING ACTIVITIES
This disclosure form shall be completed by the reporting entity, whether subawardee or prime Federal recipient at the initiation or receipt of a covered Federal action, or a material change to a previous filing, pursuant to title 31 U.S.C. section 1352. The filing of a form is required for each payment or agreement to make payment to any lobbying entity for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress. or an employee of a Member of Congress in connection with a covered Federal action.
Use the SF LLL-A Continuation sheet for additional information if the space on the form is inadequate. Complete all items that apply for both the initial filing and material change report. Refer to the implementing guidance published by the Office of Management and Budget for additional information.
1. Identify the type of covered Federal action for which lobbying is and has been secured to influence the outcome of a covered action.
2. Identify the status of the covered Federal action.
3. Identify the appropriate classification of this report. If this is a follow up report caused by a material change to the information previously reported, enter the year and quarter in which the change occurred. Enter the date of the last previously submitted report by this reporting entity for this covered Federal action.
4. Enter the full name, address, city, state and zip code of the reporting entity. Include congressional district. if known. Check the appropriate classification of the reporting entity that designates if it is, or expects to be a prime or subaward recipient.
Identify the tier of the subawardee, e. g. the first subawardee of the prime is the 1st tier. Subawards include but are not limited to subcontracts. subgrants and contract awards under grants.
5. If the organization filing the report, in item 4 checks "Subawardee", then enter the full name, address, city, state, and zip code of the prime Federal recipient. Include congressional district, if known.
6. Enter the name of the Federal agency making the award or loan commitment. Include at least one organizational level below agency name, if known. For example, Department of Transportation, United States Coast Guard.
7. Enter the Federal program name or description for the covered Federal action (item 1). If known, enter the full Catalog of Federal Domestic Assistance (CFDA) number for grants, cooperative agreements, loans and loan commitments.
8. Enter the most appropriate Federal identifying number available for the Federal action identified in item 1 (e. g. Request for Proposal (RFP) number; Invitation for Bid (IFB) number; grant announcement number the contract, grant. or loan award number; the application proposal control number assigned by the Federal agency). Include prefixes, e.g., "RFP DE 90 09."
9. For a covered Federal action where there has been an award or loan commitment by the Federal agency, enter the Federal amount of the award/loan commitment for the primary entity identified in item 4 or 5.
10. (a) Enter the full name, address, city, state and zip code of the lobbying entity engaged by the reporting entity identified in item 4 to influence the covered Federal action.
(b) Enter the full names of the individual(s) performing services, and include full address if different from 10 (a). Enter Last Name, First Name, and Middle Initial (MI).
11. Enter the amount of compensation paid or reasonably expected to be paid by the reporting entity (item 4) to the lobbying entity (item 10). Indicate whether the payment has been made (actual) or will be made (planned). Check all boxes that apply. If this is a material change report enter he cumulative amount of payment made or planned to be made.
12. Check the appropriate box(es). Check all boxes that apply. If payment is made through an in kind contribution, specify the nature and value of the in kind payment.
13. Check the appropriate box(es). Check all boxes that apply. If other, specify nature.
14. Provide a specific and detailed description of the services that the lobbyist has performed, or will be expected to perform, and the date(s) of any services rendered. Include all preparatory and related activity, not just time spent in actual contact with Federal officials. Identify the Federal official(s) or employee(s) contacted and the officer(s), employee(s), or Member(s) of Congress that were contacted.
15. Check whether or not a SF LLL A Continuation Sheet(s) is attached.
16. The certifying official shall sign and date the form, print his/her name, title, and telephone number.
Public reporting burden for this collection of information is estimated to average 30 minutes per response, including time for reviewing instructions. searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding the burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Office of Management and Budget. Paperwork Reduction Project (0348 0046) Washington D.C., 20503.
County of Orange
OC Community Resources
Contract No. 012-23010767-CV
EXHIBIT 4
DISCLOSURE OF LOBBYING ACTIVITIES
Complete this form to disclose activities pursuant to 31 U.S.C 1352
1. Type of Federal Actions:
a. contract
b. grant
c. cooperative agreement
d. loan
e. loan guarantee
f. loan insurance
2. Status of Federal Actions:
a. bid/offer/application
b. initial award
c. post-award
3. Report Type:
a. initial filing
b. material change
For material change only:
Year: Quarter:
Date of last report:
4. Name and Address of Reporting Entity 5. If Reporting Entity in No. 4 is a Subawardee:
Enter Name and Address of Prime:
Congressional District, if known:
Prime Subawardee
Tier if known
Congressional District, if known:
6. Federal Department / Agency: 7. Federal Program Name/Description
8. Federal Action Number, if known: 9. Award Amount, if known:
$
10a. Name and Address of Lobbying Entity
(if individual, last name, first name, MI):
(attach Continuation Sheets SF-LLL-A, if necessary)
10b. Individual Performing Services
(including address if different from No. 10a)
(last name, first name, MI):
11. Amount of Payment (check all that apply):
$ Actual
Planned
13. Type of Payment (check all that apply)
a. retainer
b. one-time free
c. commission
d. contingent fee
e. deferred
f. other specify:
12. Form of Payment (check all that apply):
a. cash
b. in-kind: specify:
nature:
value:
14. Enter Description of Services performed or to be Performed and date(s) of Service, including officer(s), employee(s), or Member(s) contacted, for Payment indicated on item 11:
15. Continuation sheet(s) SF-LLL-A attached: Yes No
16. Information requested through this form authorized by Title 31 U.S.C. Section 1352. This disclosure of lobbying activities is a material representation of fact upon which reliance was placed by the tier above when this transaction was made or entered into. This disclosure is required pursuant to 31 U.S.C. 1352. This information will be reported to the Congress semiannually and will be available for public inspection. An person who fails to file the required disclosure shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
Signature:
Print Name:
Title:
Telephone No:
Date:
County of Orange
OC Community Resources
Contract No. 012-23010767-CV
Reporting Entity:
Page of
BILLING CODES 3410-01 -C; 6450-01-C; 6890-01 ;6025-01-C; 7510-01-C , 35 1 0-FE-C; 8120-01 -C; 4710-24-C, 6116-01 -C, EXHIBIT 4
DISCLOSURE OF LOBBYING ACTIVITIES
CONTINUATION SHEET
Approved by OMS - 0348-0046
CERTIFICATION REGARDING LOBBYING
CERTIFICATION FOR CONTRACTS, GRANTS, LOANS,
AND COOPERATIVE AGREEMENTS
The undersigned certifies, to the best of his or her knowledge and belief, that:
EXHIBIT 5
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, “Disclosure Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for all* subawards at all tiers (including subcontracts, subgrants and contracts under grants, loans, and cooperative agreements) and that all* subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10, 000 and not more than $100,000 for each such failure.
Grantee/Contractor Organization
Name
Title
Authorized Signature
*Note: In these instances, "All," in the Final Rule is expected to be clarified to show that it applies to covered contract/grant transactions over $100,000 (per OMB).
City of Stanton
Contract No. 012-23010767-CV
ORDINANCE NO. 1125
PAGE 1 OF 7
ORDINANCE NO. 1125
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON AMENDING PORTIONS OF CHAPTER 5.04 (LICENSES) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) AND ADDING CHAPTER 5.18 (PERSONAL SERVICES) TO TITLE 5 OF THE STANTON MUNICIPAL CODE; SETTING A TERMINATION DATE FOR URGENCY ORDINANCE NO. 1121 REGARDING A MORATORIUM ON PERSONAL CARE AND MEDICAL OFFICE BUSINESSES; AND DETERMINING THE
ORDINANCE TO BE EXEMPT FROM CEQA
WHEREAS, pursuant to Cal. Const. Art. XI, Sec. 7 and under the City’s general police powers, the City of Stanton (“City”) is empowered and charged with responsibility for the health, safety, and welfare of its citizens; and
WHEREAS, the City protects the health, safety, and welfare of the community through numerous avenues, including by establishing and enforcing zoning, licensing and health and safety regulations on specified commercial activities; and WHEREAS, in recent years, the City has experienced issues related to illicit activity at “personal service”1 businesses within the City; and
WHEREAS, undercover operations by the Orange County Sheriff’s Department indicated that spas licensed to provide facials, waxing and other skin care uses were offering patrons massage services and employing massage technicians who engaged in alleged illicit sexual activity in violation of State laws relating to prostitution; and WHEREAS, in response, the City Council adopted Urgency Ordinance No. 1121, which imposed a moratorium on the establishment or expansion of certain personal services and medical office businesses within the City. The moratorium was extended for 10 months and 15 days on July 12, 2022; and
WHEREAS, during the moratorium period, the City has researched and studied how to address these nuisance issues by, among other things, examining surrounding cities’ codes to see how other cities regulate such uses. Staff also reviewed existing Stanton Municipal Code provisions and drafted the proposed ordinance for the Council’s consideration; and
WHEREAS, the proposed revisions to the City’s business licensing process and new regulations on personal care businesses that offer services in private areas are intended to mitigate the significant potential impacts to the health, safety and welfare of the community, including illicit sexual activity, human trafficking, and other public nuisance and vice issues; and
1 The Stanton Municipal Code generally defines “personal service” uses as those that provide “nonmedical services to individuals.” (SMC, § 20.700.120).
Item: 8A
Click here to return to the agenda.
ORDINANCE NO. 1125
PAGE 2 OF 7
WHEREAS, the City Council has considered the staff report, all written and verbal public testimony and evidence, and all legal prerequisites have been met.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: Recitals Incorporated. The above recitals are true and correct and are incorporated herein by reference.
SECTION 2: CEQA. The City Council finds that the Ordinance is not a project within the meaning of Section 15378 of the State of California Environmental Quality Act (“CEQA”) Guidelines, because it has no potential for resulting in physical change in the environment, directly or indirectly. Alternatively, the Ordinance is exempt from the requirements of CEQA pursuant to Section 15061(b)(3). Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 3: Section 5.04.200 of Chapter 5.04 of Title 5 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“5.04.200 Application prerequisite—Form
A. Before a license is issued to any person, he or she shall make written application therefor to the city upon a form to be provided by the city.
B. As part of the application, the applicant shall, at a minimum, sign a statement that if issued a license, the applicant shall accept responsibility for the conduct of all its employees, contractors, agents, and representatives.
C. Submission of an application for a license does not authorize the operation of a business unless and until such license has been properly granted by the city. The city will not consider an application until it is deemed complete with all of the information that the city may require to evaluate the application.”
SECTION 4: Section 5.04.206 of Chapter 5.04 of Title 5 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“5.04.206 Grounds for denial, suspension, or revocation A. The city shall have grounds to deny the issuance of a business license or suspend or revoke an existing business license when:
ORDINANCE NO. 1125
PAGE 3 OF 7
1. The building, structure, premises, or the equipment used to conduct the business activity fails to comply with all applicable health, zoning, fire, building and safety laws of the State or city;
2. The business or any of the business activities or operations is prohibited by any local or state law, statute, rule or regulation, or the business is prohibited in the particular location or zone by any law, statute, rule, or regulation;
3. The applicant has made any false, misleading or fraudulent statement of material fact in the application for the business license or in any report or statement required to be filed with the city;
4. The applicant has failed to verify past conduct, as provided in subsections A and B of Section 5.04.205, or has made any false statement related to such verification;
5. The applicant, his or her business entity, or the business’ owner, operator, or manager has been convicted in a court of competent jurisdiction of any crime or misdemeanor or felony offense which directly relates to the operation or conduct of a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application; or
6. The applicant, his or her business entity, or the business’ owner, operator, or manager has had revoked any business license or any establishment, owner, or operator license or similar permit for a business of the same or substantially same type as the business for which a license is sought from the city in the three years immediately preceding the date of the business license application.
B. The city shall also have grounds to suspend or revoke a business license when:
1. The applicant, his or her business entity, or the business’ owner, operator, or manager has been convicted in a court of competent jurisdiction of any crime or misdemeanor or felony offense which directly relates to the operation or conduct of the business for which the business license was granted by the city;
2. At least two verified police reports of a disturbance of the peace, disorderly conduct, or similar violations, or citations or arrests have been made regarding the business within the immediately preceding twelve-month period;
3. The applicant, his or her business entity, or the business’ owner, operator, or manager is found to have committed a crime involving ORDINANCE NO. 1125
PAGE 4 OF 7
moral turpitude which is substantially related to the business activity for which the license was issued. For purposes of this criteria, a verified complaint(s), code enforcement report(s), police report(s) or other similar evidence may be used as support that a crime was committed; or,
4. Any employee, contractor, agent, or representative is found to have committed a crime involving moral turpitude at the business premises that is substantially related to the business activity for which the license was issued. For purposes of this criteria, a verified complaint(s), code enforcement report(s), police report(s) or other similar evidence may be used as support that a crime was committed.
C. For purposes of this chapter, a “nolo contendere” plea shall be deemed a conviction.
D. The city, in its sole and absolute discretion, shall have the authority to determine whether a suspension or revocation is appropriate, in the interest of the public health, welfare, and safety.” SECTION 5: Chapter 5.18, Personal Services, is hereby added to Title 5, Licenses, to read as follows:
“Chapter 5.18 Personal Services
5.18.010 Purpose and Intent.
5.18.020 Application requirements.
5.18.030 Regulations.
5.18.010 Purpose and Intent
The purpose of this chapter is to impose reasonable regulations upon personal service businesses in which customers are provided services in a room or space that is separate from the area where the primary business is conducted. These regulations are intended to ensure the public health and safety.
5.18.020 Application requirements.
A. An applicant for a personal services business that proposes to provide services to customers in a room or space that is separate from where the area where the primary business is conducted shall be required to provide the additional information in their business license application:
1. A description of the services that is proposed to be provided to customers in any room or space that is separate from where the area where the primary business is conducted.
ORDINANCE NO. 1125
PAGE 5 OF 7
2. A sketch or diagram showing the complete interior
configuration of the business, including, without limitation, the location of the restrooms, and customer areas, employee or contractor-only designated areas. The sketch or diagram need not be professionally prepared, but it must be drawn to a designated scale, with marked dimensions of the interior of the premises to an accuracy of plus or minus six inches.
5.18.030 Regulations.
A. Personal services businesses that provide services to customers in a room or space that is separate from where the area where the primary business is conducted shall be required to adhere to the following regulations:
1. The storefront windows of the personal services business shall be transparent to provide clear visibility into the unit, and the windows shall not be obscured by curtains, blinds, or other temporary devices during operating hours.
2. There shall be no display, storage, or use of any
instruments, devices, or paraphernalia which are designed for use in connection with specified sexual activities, including, but not limited to, vibrators, dildos, or condoms, or any goods or items which are replicas of, or which simulate, specified anatomical areas (as defined in Chapter 5.16 of this code), or pornographic magazines, videos, or other material.
3. No services shall be provided to a customer that results in intentional contact, or occasional repetitive contact, with specified anatomical areas, as defined in Chapter 5.16 of this code, except for cosmetic services, including, without limitation, waxing or bleaching.
4. All employees, contractors, representatives, and agents must at all times, while on the business premises, wear clothing that does not substantially expose undergarments, breasts, buttocks or genitals.
5. Personal service businesses that provide services to customers in a room or space separate from the area where the primary business is conducted are prohibited from operating within five hundred (500) feet of a massage establishment or another personal service business that provides services in a room or space separate from the area where the primary business is conducted.”
ORDINANCE NO. 1125
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SECTION 6: Effective Date. This ordinance shall take effect 30 days following its adoption.
SECTION 7: Expiration and Termination of Moratorium. The Moratorium imposed by Urgency Ordinance No. 1121, as extended on July 12, 2022, shall expire and terminate on December 31, 2022, after which it shall have no further effect.
SECTION 8: 10-Day Report. In accordance with Government Code Section 65858(d), the City Council is issuing a written report 10 days prior describing the measures taken to alleviate the condition which led to the adoption of the moratorium.
SECTION 9: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION 10: Custodian of Records. The City Clerk is the custodian of records of the documents and materials that constitute the record of proceedings on which this Ordinance and the above findings have been based, and such documents and materials are located in the City Clerk’s Department, 7800 Katella Avenue, Stanton, California.
PASSED, APPROVED, AND ADOPTED this 10th day of January, 2023.
DAVID J. SHAWVER, MAYOR
ATTEST:
PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:
HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1125
PAGE 7 OF 7
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS .
CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1125 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 13th day of December, 2023 and was duly adopted at a regular meeting of the City Council held on the 10th day of January, 2023, by the following roll-call vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
_____________________________
CITY CLERK, CITY OF STANTON
1 CITY OF STANTON
REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: January 10, 2023
SUBJECT: ORDINANCE AMENDING TITLE 2 ADMINISTRATION AND
PERSONNEL – CHAPTER 2.56 PURCHASING AND APPROVAL OF
PURCHASING POLICY AND PROCEDURES
REPORT IN BRIEF:
The City’s Purchasing Policy and Procedures (Policy) were last updated in 2018.
Pursuant to the Stanton Municipal Code, the Policy establishes guidelines surrounding the purchase and procurement of supplies, services, and equipment on behalf of the City.
The City Council will consider an amendment to the Stanton Municipal Code Title 2 Administration and Personnel revising Chapter 2.56 Purchasing. The purpose of the ordinance is to incorporate those updates as directed by the City Council at its meeting of November 22, 2022. The proposed updates will streamline the City’s purchasing system, thereby reducing the administrative burden and cost associated with purchasing and contracting activities while ensuring open and fair competition and competitive pricing.
RECOMMENDED ACTION:
1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. City Council consider, waive further reading, and introduce for first reading Ordinance No. 1126, entitled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING THE CITY’S PURCHASING ORDINANCE AS SET FORTH IN TITLE 2 OF THE STANTON MUNICIAL CODE”; and
3. Set said Ordinance No. 1126 for second reading at the regular City Council meeting of January 24, 2023; and
Item: 9A
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2 4. Approve Administrative Policy IV-4-12, “Purchasing Policy and Procedures,” as revised, and allow the City Manager to update Administrative Policy IV-4-12 as needed for clarifying purposes.
BACKGROUND:
The City has not had a comprehensive update of its Administrative Policy IV-4-12, “Purchasing Policy and Procedures,” since its initial adoption in 2007. Although a segment of the underlying Stanton Municipal Code was last reviewed in 2018, the Policy as a whole has not been presented to the City Council in almost 15 years. Staff facilitated a review of the Policy and received direction from the Council at its meeting of November 22, 2022.
The City’s Municipal Code states the purpose of the purchasing system as follows:
In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure quality of purchases, a purchasing system is hereby adopted.
In addition, the City Manager, as the Purchasing Officer, is charged to:
• Keep informed of current developments in the field of purchasing, prices, market conditions and new products; and
• Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and any other rules and regulations.
ANALYSIS AND JUSTIFICATION:
Based on Council direction, staff has identified areas to clarify and streamline the Policy to align with current best practices. Moreover, certain sections of the Policy have been expanded upon to codify and bolster current practices. Among the more significant revisions to the Policy are the strengthening of the City’s “piggybacking” and sole source procurement standards, the addition of the design-build construction RFP option, and the formal outline of the City’s Master Service Agreement practices for on-call services. The Policy update also increases the purchasing threshold and signing authority limits to reflect changes in the present operating environment—namely inflation and the need to balance administrative overhead. Altogether, these updates will support the delivery of efficient, cost-effective, and high-quality municipal services. The proposed Policy will support the following principles:
3 • Competitive Process. The City seeks to promote full and open competition among potential vendors and service providers. Through full and open competition, the City is able to realize better pricing and more favorable terms. • Best Overall Value. The City seeks the best value for its money when making purchases. When not required by law to select the lowest bidder, this principle permits the City to consider factors other than just price in determining what constitutes the best overall value to the City.
• Fairness and Transparency. The City seeks to promote fairness and transparency in the City’s purchasing system, fostering equal opportunities for vendors wishing to do business with the City and ensuring that public expenditures are made in an open and consistent manner.
• Compliance with Law and Best Practice. The City follows applicable laws and regulations and promotes best practices. Purchased are conducted in accordance with the City’s legal and ethical obligations and responsibilities.
Staff will review (and update, as appropriate) the Policy every few years to ensure that it continues to reflect the City’s goals, priorities, and operating environment.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended actions.
ENVIRONMENTAL IMPACT:
None. This item is an administrative activity not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378(b)(5) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly).
LEGAL REVIEW:
None.
STRATEGIC PLAN OBJECTIVE(S):
Obj. 4: Ensure fiscal stability and efficiency in governance.
Obj. 6: Maintain and promote a responsive, high-quality, and transparent government.
PUBLIC NOTIFICATION:
Public notice for this item was made through the regular agenda process. 4 Prepared by: Jason Huynh, Management Analyst
Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
Attachment(s):
A. Proposed Ordinance No. 1126
B. Administrative Policy IV-4-12, “Purchasing Policy and Procedures,” current C. Administrative Policy IV-4-12, “Purchasing Policy and Procedures,” as revised ORDINANCE NO. 1126
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ORDINANCE NO. 1126
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING THE CITY’S PURCHASING ORDINANCE AS SET FORTH IN TITLE 2 OF
THE STANTON MUNICIPAL CODE
WHEREAS, the City has previously adopted Chapter 2.56 providing for procedures and requirements for making purchases of goods and services; and WHEREAS, it has been several years since sections of Chapter 2.56 were updated; and WHEREAS, the City seeks to remove obsolete purchasing guidelines and clarify certain procedures in accordance with Administrative Policy IV-4-12: Purchasing Policy and Procedures; and
WHEREAS, the City has implemented purchasing best practices to facilitate the efficient delivery of quality municipal services, and wishes to memorialize those practices.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: Recitals Incorporated. The above recitals are true and correct and are incorporated herein by reference.
SECTION 2: Section 2.56.010 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.010 Adoption of purchasing system
In order to establish efficient procedures for the purchase of goods and services, to secure for the city goods and services at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure quality of purchases, a purchasing system is hereby adopted. This chapter shall not be applicable to public works contracts governed by the Public Contracts Code.” SECTION 3: Section 2.56.020 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
SECTION 4: Section 2.56.030 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
Attachment: A
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ORDINANCE NO. 1126
PAGE 2 OF 6
“2.56.030 Formal contract procedure
Except as otherwise provided herein, purchases and contracts for goods and non-professional services at a cost greater than the city manager’s signing authority shall be awarded by written contract to the lowest responsible bidder pursuant to a competitive bid, whereby a written notice inviting bids is publicly posted. Purchases for goods and nonprofessional services at a cost equal to or less than the city manager’s signing authority may be conducted pursuant to the procedure described in Section 2.56.040.”
SECTION 5: Section 2.56.040 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.040 Open market procedure
Purchases of goods and non-professional services at a cost greater than a department director’s signing authority but equal to or less than the city manager’s signing authority may be awarded by the city manager pursuant to an informal bid on the open market, without observing the procedure described by Section 2.56.030. The open market procedure solicits informal bids through any reasonable solicitation method. Open market purchases shall, wherever possible, be based on at least three bids, and shall be awarded to the lowest responsible bidder. Purchases for goods and non-professional services at a cost equal to or less than the department director’s signing authority may be conducted pursuant to the procedure described in Section 2.56.042.”
SECTION 6: Section 2.56.042 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby added as follows:
“2.56.042 Over-the-counter purchases
Purchases of goods and non-professional services at a cost equal to or less than a department director’s signing authority may be made by the department director at the lowest possible cost commensurate with the quality needed, without observing the procedures described by Sections
2.56.030 and 2.56.040. Prudent judgment shall be used at all times to ensure that the purchased supplies and services are received in good condition and at a fair price, and the department director is strongly encouraged to obtain competitive quotations.”
SECTION 7: Section 2.56.043 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby added as follows:
ORDINANCE NO. 1126
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“2.56.043 Request for proposals
Purchases of professional services at a cost greater than the city manager’s signing authority shall be awarded by written contract to the most qualified proposer pursuant to a formal request for proposals, whereby a written notice inviting proposals is publicly posted. Proposals must be evaluated using the quality-based selection (QBS) process in accordance with Public Law 92-582. Purchases for professional services at a cost equal to or less than the city manager’s signing authority may be conducted pursuant to the procedure described in Section 2.56.120.” SECTION 8: Section 2.56.045 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.045 Exceptions to formal bidding requirements
The following exceptions are made to the formal bidding requirements set out in Sections 2.56.030, 2.56.040, and 2.56.043 of this code:
A. Best Interests of the City. Except where otherwise prohibited by law, the appropriate purchasing authority may make a contract award without following the required procurement methods, provided that said authority finds the award to be in the best interests of the City or of the public health, safety, and welfare of the community.
B. Serving as a Pass-Through Agency. When the City is a fiscal agent, receiving federal, state, or county funds on behalf of a separate entity.
C. Cooperative Purchasing. When the City develops a contract off of another government agency’s or purchasing cooperative’s competitively bid contract to secure value pricing and/or reduce administrative overhead.
D. Emergency. When a sudden, unexpected occurrence poses a clear and imminent danger, requiring immediate action by the City to prevent or mitigate the loss or impairment of life, health, property, or essential public services.
E. Mandated Expenditures. When expenditures are mandated by law or regulation.
F. Non-Traditional Procurements. When certain goods and services are acquired in a specific manner that meets the “best quality and value” standards outside of the open, competitive market.
ORDINANCE NO. 1126
PAGE 4 OF 6
G. Commodities. When expenditures for commodities that are not readily adaptable to formal bidding requirements.
H. Sole Source. When only one supplier, for reasons of expertise, standardization, quality, compatibility, specifications, or availability, is capable of providing the required product or service.”
SECTION 9: Section 2.56.050 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
SECTION 10: Section 2.56.060 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.060 Encumbrance of funds
Except in cases of emergency, the City shall not issue any purchase order or contract for supplies or equipment unless unencumbered appropriations exist in the department against which such purchase is to be charged.”
SECTION 11: Section 2.56.070 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.070 Inspection and testing
The City shall inspect, or cause to be inspected, supplies and equipment delivered to determine their conformance with the specifications set forth in the order or contract. The City shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries as necessary to determine their quality and conformance with specifications.”
SECTION 12: Section 2.56.080 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
SECTION 13: Section 2.56.090 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
SECTION 14: Section 2.56.100 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
SECTION 15: Section 2.56.110 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby repealed in its entirety.
ORDINANCE NO. 1126
PAGE 5 OF 6
SECTION 16: Section 2.56.120 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.120 Personal, professional and consulting services—City manager authority to contract.
The city manager is authorized to contract for personal, professional and consulting services when the amount of the contract does not exceed the city manager’s signing authority and unencumbered amounts sufficient to cover the contract cost exist in the department which the expense is to be charged to.”
SECTION 17: Section 2.56.120 of Chapter 2.56 of Title 2 of the Stanton Municipal Code is hereby amended in its entirety and restated to provide as follows:
“2.56.130 Surplus supplies—Trade-ins and sale.
A. The City shall have the authority to negotiate trade-ins on new supplies and equipment for supplies or equipment which cannot be used by any department or which have become unsuitable for city use.
B. Surplus supplies and equipment which cannot be used by any department or which have become unsuitable for city use may be disposed of by auction or sale or otherwise after receiving bids or proposals which, in the determination of the city manager, provide the best and most responsible return to the city.” SECTION 18: Except as modified in this ordinance, the remaining sections of Chapter
2.56 shall remain in full force and effect.
SECTION 19: Effective Date. This ordinance shall take effect 30 days following its adoption.
SECTION 20: Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof.
SECTION 21: Custodian of Records. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted in the three (3) designated posting places within the City of Stanton within fifteen (15) days after its passage.
ORDINANCE NO. 1126
PAGE 6 OF 6
PASSED, APPROVED, AND ADOPTED this 24th day of January, 2023.
DAVID J. SHAWVER, MAYOR
ATTEST:
PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:
HONGDAO NGUYEN, CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) SS .
CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1126 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 10th day of January, 2023 and was duly adopted at a regular meeting of the City Council held on the 24th day of January, 2023, by the following roll-call vote, to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
CITY CLERK, CITY OF STANTON
55728.01000\33995632.1
Attachment B
PURCHASING AND CONTRACTING GUIDELINES
FOR
THE CITY OF STANTON
EFFECTIVE
[DATE]
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55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
TABLE OF CONTENTS
1. INTRODUCTION AND GENERAL INFORMATION..................................................................................... 4
1.1 Purpose, Applicability, and Authorization.......................................................................... 4
1.2 Ethics in Procurement. ....................................................................................................... 4
1.3 Stakeholder Responsibilities During Procurement............................................................. 6
1.4 Budget Review and Application. ........................................................................................ 7
2. TYPES OF PURCHASES ............................................................................................................................. 9
2.1 Goods................................................................................................................................. 9
2.2 Real Property...................................................................................................................... 9
2.3 Services .............................................................................................................................. 9
2.4 Public Projects.................................................................................................................... 9
3. METHODS OF PURCHASING..................................................................................................................11
3.1 Purchasing Cycle and Overview .......................................................................................11
3.2 Payment...........................................................................................................................11
3.3 CAL-Card...........................................................................................................................11
3.4 Payable Voucher. .............................................................................................................11
3.5 Purchase Order. ...............................................................................................................11
3.6 Contract ...........................................................................................................................12
3.7 Year-End Purchase Order and Contract Procedures and Carry-Over...............................13
4. PROCUREMENT PROCEDURES ..............................................................................................................15
4.1 Appropriations Requirement............................................................................................15
4.2 Unauthorized Purchases..................................................................................................15
4.3 Split Purchases.................................................................................................................15
4.4 Environmentally Preferable Purchasing. ..........................................................................15
4.5 Local Vendor Preference ..................................................................................................15
4.6 Key Definitions. ................................................................................................................16
4.7 Open-Market Bid (AKA Informal Bid)...............................................................................18
4.8 Request for Proposals (RFP).............................................................................................19 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
4.9 Competitive Bid for Procurements Besides Public Projects..............................................20
4.10 Competitive Bid for Public Projects..................................................................................22
4.11 Master Service Agreements.............................................................................................23
4.12 Miscellaneous Contracting Guidelines.............................................................................24
4.13 Exceptions to Standard Procurement Procedures............................................................26
5. CONTRACT MANAGEMENT...................................................................................................................31
5.1 Standard Contracts..........................................................................................................31
5.2 DIR Filing ..........................................................................................................................31
5.3 New Vendors/Business Licenses.......................................................................................31
5.4 Payment and Performance Bonds Criteria.......................................................................31
5.5 Vendor Signature. ............................................................................................................31
5.6 Contract Review and Routing. .........................................................................................32
5.7 Contract Amendments, Change Orders, and Extensions. ................................................33
5.8 Protest Procedures...........................................................................................................34
6. RECEIPT AND INSPECTION.....................................................................................................................36
6.1 Receipt and Inspection of Purchased Assets....................................................................36
APPENDICES
APPENDIX A. Department of Industrial Relations (DIR) Requirements.........................................37 APPENDIX B. Quote Documentation Form (Professional & Non-Professional Services/Equipment/ Supplies)...........................................................................................................................39 APPENDIX C. Model Agreement Checklist.....................................................................................40 APPENDIX D. The Contract Process...............................................................................................41 APPENDIX E. Purchasing Authority and Required Procurement Procedures................................42 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
1. INTRODUCTION AND GENERAL INFORMATION
1.1 Purpose, Applicability, and Authorization.
The Purchasing and Contracting Guidelines (“Guidelines”) document the procedures and associated roles and responsibilities for contracting with consultants, contractors, or vendors (collectively referred to as “vendor” or “vendors”) for the purchase of Goods, Services, and Public Projects used for the operation of the City of Stanton (“City”). These Guidelines are intended to establish a system of internal controls and decision-making processes for the efficient use and expenditure of public funds. They have been developed to facilitate standardization across all departments, clarify roles and responsibilities, and serve as a tool for employee training and development.
The City’s purchasing philosophy is to ensure fiscal stability and efficiency in governance through the procurement of Goods, Services, and Public Projects at the best quality and value in an open and competitive market. The City strongly encourages broad participation in the procurement process.
Opportunities are advertised regularly through the City’s website and other means to encourage a wide range of respondents.
The City Manager may delegate the authority to coordinate and manage the procurement of Goods, Services, and Public Projects on behalf of the City within the limits of, and as may be authorized by the City’s Purchasing Ordinance. The City Manager, or their designee, is responsible for enforcement of the terms of these Guidelines. All City employees are responsible for abiding by these Guidelines.
These Guidelines are subordinate to the requirements contained within the City’s Charter and Purchasing Ordinance, codified as Chapter 2.56 of the Stanton Municipal Code, as they may be amended from time to time. These Guidelines are compliant with Title 2 of the Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. More restrictive procurement methods shall be used, and more restrictive provisions followed 1) if required by Federal, State, and/or County law; 2) where Federal, State, and/or County funds are involved for the purchase; or 3) when the City Council or City Manager determines it is in the best interests of the City.
The City is considered a “state and local government” agency, and therefore, any City procurements using Federal, State, or County grant monies must follow the regulations as set forth by the funding agency. When procuring supplies and equipment, general services, maintenance work, professional services or public projects under a Federal Award, the City shall comply with all applicable policies and procedures.
1.2 Ethics in Procurement.
In all procurement activities, City employees, officers, and agents must abide by the City’s Conflict of Interest Code, City’s Personnel Rules, City Council Ethics Policy, and the Fair Political Practices Commission & Political Reform Act.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES Any City employee, officer, or agent that violates these standards of conduct shall be subject to disciplinary action, up to and including termination. Such violations may also result in criminal prosecution.
Conflict of Interest.
Employees must follow applicable laws, rules, and regulations regarding conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts.
Disclosure of Political Contributions.
For Requests for Bids/Requests for Proposals, included in the bid/proposal documents shall be a Conflict of Interest form to be submitted by the bidding/proposing vendor. The form shall require the vendor to submit a written disclosure to the City declaring any political contributions of money, inkind services, or loans made to any member of the City Council. If a vendor declines to submit the written disclosure, they will be considered non-responsive.
Vendor Gifts and Gratuities.
The receiving of gifts and/or other symbols of appreciation may compromise the integrity of professional relationships and can lead to inappropriate business practices. Subject to guidelines in the California Code of Regulations, no employee, officer, or agent, shall receive or agree to receive, directly or indirectly, any compensation, reward, or gift from any source except from his or her appointing authority or employer, for any action related to the conduct of the City’s business.
Provided the City has not adopted more stringent standards, the Political Reform Act imposes limits on gifts, payments, and gratuities received by elected officials and designated employees. A nonexhaustive summary of these limitations is as follows:
• Officers and designated employees may not accept gifts from any single source totaling more than $520 (effective January 1, 2021 - December 31, 2022) in a calendar year. The gift limit is adjusted biennially to reflect changes in the Consumer Price Index; and • Gifts from a single source aggregating to $50 or more must be disclosed on a Statement of Economic Interests (FPPC Form 700).
Contracts with Employees or Organizations Owned by Them.
Employees shall not knowingly award a Contract or Agreement to a City employee or to a business concern owned or substantially owned/controlled by one or more City employees.
Personal Purchases from Suppliers, Vendors, or Contractors.
Employees or their immediate relatives are NOT to utilize the employee’s position with the City to solicit or utilize discounts, promotions, or other concessions from City suppliers, vendors, or 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES contractors to purchase supplies, equipment, tools, etc. Employees or their immediate relatives are, however, permitted to utilize discounts, promotions, etc. offered to the general public by City suppliers, vendors, or contractors.
Ethical Procurement Practices.
The City strives to maintain good working relationships with its vendors and suppliers, as well as the business community at large. Every employee has the ability to influence the opinions of others through daily interaction with the business community. In personal contacts with vendors and suppliers, employees shall represent the best interests of the City by conducting business in a fair, equitable, and ethical manner. The City subscribes to the following Principles and Standards of Ethical Supply Management Conduct:
• Avoid the intent and appearance of unethical or compromising practice in relationships, actions, and communications (including, but not limited to, biased withholding/disclosure of information and willful misleading in regard to the Good(s), Service(s), or Public Project(s) being solicited). • Avoid any personal business or professional activity that would create a conflict between personal interests and the interests of the City.
• Avoid soliciting or accepting money, loans, credits, preferential discounts, gifts, entertainment, favors, or services from present or potential suppliers that might influence, or appear to influence, procurement decisions.
• Handle confidential or proprietary information with due care and proper consideration of ethical and legal ramifications and governmental regulations.
• Conduct procurement activities in accordance with state and federal laws, City policies and practices, and these ethical principles and standards of conduct.
If at any time it shall be found that the person to whom a Contract or Agreement has been awarded has, in presenting any bid(s), proposal(s), or quote(s), colluded with any other party or parties for the purpose of preventing any other bid or quote being made, then the Contract or Agreement awarded shall be null and void.
1.3 Stakeholder Responsibilities During Procurement.
Department Responsibilities.
Each department procuring Goods, Services, and Public Projects must participate in, and has responsibilities for, the procurement process. These include, but are not limited to, the following tasks:
• Budget accountability resides with the Department Heads who are responsible for ensuring their budgets stay within authorized funding levels;
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • Determine your funding source. If funds come from outside the City, determine any requirements that the funding source places on the procurement. In particular, federal funding has a multitude of additional requirements that must be complied with;
• Create detailed specifications to ensure the successful vendor provides the City with acceptable Goods, Services, or Public Projects;
• Determine if the resulting Services or Public Projects will require the vendor to pay prevailing wages. If applicable, ensure the vendor is registered with the Department of Industrial Relations (DIR) and has the required contractor’s license. (See Appendix A for DIR requirements); • Contact the Finance Department to ensure the vendor has a current City business license and W9 on file; • Review insurance matrix (see supplemental staff resource guidance) to determine if requested insurance limits are appropriate prior to soliciting quotes, issuing a contract, or issuing an RFB/RFP. For consultation, contact the Human Resources/Risk Management Division who may coordinate with the City Attorney’s Office and/or the California Joint Powers Insurance Authority (CJPIA); and
• Prepare requisitions according to instructions to minimize processing time.
Risk Management Responsibilities.
The City contracts with the CJPIA for the provision of professional risk management services. In consultation and coordination with City staff and the City Attorney, Risk Management determinesthe appropriate insurance limits required for different procurements.
Finance Department Responsibilities.
The Finance Department supports procurements by assisting the requesting department in complying with these Guidelines. The Finance Department shall also:
• Supervise and be responsible for the disbursement of all monies and have control of all expenditures to ensure that budget appropriations are not exceeded; • Audit all Purchase Orders before issuance; and
• Audit and approve before payment, all bills, invoices, payrolls, demands or charges against the City and, with the advice of the City Attorney, when necessary, determine the regularity, legality, and correctness of such claims, demands, or charges.
1.4 Budget Review and Application.
1 To facilitate the development and production of the Annual Operating Budget, on an annual basis each Department Head shall furnish to the City Manager and Finance Director estimates of revenues 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES and expenditures for the respective department. The City Manager and Finance Director shall each review, and may revise, the estimates.
2 At least thirty (30) calendar days prior to the beginning of each fiscal year, the City Manager shall submit to the City Council the proposed budget. The City Council shall hold a public hearing before the start of the fiscal year, noticed not less than ten (10) calendar days prior to the hearing date.
Copies of the proposed budget shall be available for inspection by the public at City Hall at least 72 hours prior to said hearing.
3 After the conclusion of the public hearing, the City Council shall make any revisions of the proposed budget as it may deem appropriate. On or before the first date of the fiscal year, the City Council shall adopt the budget for that fiscal year by resolution.
4 From the effective date of the budget, the amounts stated therein as proposed expenditures shall be appropriated to the departments for the respective objectives and purposes stated. Some appropriations shall lapse at the end of the fiscal year, to the extent that they shall not have been expended or lawfully encumbered. Appropriations for Public Projects or other activities with contract terms extending beyond the end of the fiscal year will be carried over into the next fiscal year and reported to the City Council no later than six months after the end of fiscal year. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
2. TYPES OF PURCHASES
2.1 Goods. “Goods” means any and all supplies, materials, equipment, vehicles, articles, things, or property, other than Real Property, furnished to be used by the City. Examples include fuel, sand, paint, office supplies, furniture, and mechanical parts. Unless only one brand of a certain Good is acceptable due to compatibility or other restrictive requirements, any brand name used in procurement specifications will be used only for the purpose of establishing descriptive information and will not be used to restrict competitive bidding. The purchase for Goods can be “one time” or ongoing within the fiscal year (Open Purchase Order).
2.2 Real Property. “Real Property” means land or improvements to land that is permanently attached to said land, including, but not limited to, inherently permanent structures such as buildings. Real Property also includes water and air space superjacent to the land and natural products and deposits that are unsevered from the land.
2.3 Services. “Services” means Non-Professional Services and Professional Services. “Non-Professional Services” refers to the furnishing of labor, time, or effort by a vendor. These are routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes. The purchase of Services can be one-time (Purchase Order) or ongoing (Open Purchase Order, Annual Contract, Multi-year Contract). One-time Purchase Orders for services are typically minor repairs such as painting, plumbing, or special cleaning. “Professional Services” refers to services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, materials tester, inspector, engineer, environmental consultant, training/educational consultant, or land surveyor, and whose services are considered distinct and unique.
Per California law, the procurement of Professional Services must be selected on the basis of qualifications, or Qualifications Based Selection (QBS) in accordance with Public Law 92-582.The procurement of Professional Services can be one-time or multi-year. Professional services contracts have provisions for specific terms, compensation amounts, and scopes of services. Professional services contracts are typically rolled over at the end of the fiscal year in accordance with the contract term, contingent upon budget availability, unless the service has been deemed complete and all invoices are paid and final. Budget availability will be confirmed as part of the year-end closing process and surplus review.
2.4 Public Projects.
“Public Projects” are Capital Improvement projects and programs for the purpose of constructing or rehabilitating public infrastructure. Public Projects include, but are not limited to:
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • Street, alley, and roadway improvements including traffic signals, pavement, striping, gutters, curb ramps, driveway approaches, sidewalks, concrete flatwork, medians, and related landscaping and irrigation;
• Drainage improvements including pipelines, catch basins, culverts, and detention/retention ponds;
• Sewer system improvements including pipelines, manholes, and lift stations; • Park improvements including trails, sport courts, tot lots, open space, public art, and restrooms; and
• Building improvements including the Family Resource Center, Corporate Yard, and Community Center/Civic Center.
Contracting for Public Projects must comply with the California Public Contracting Code and the Stanton Municipal Code (SMC). Any public project that utilizes Federal, State, and/or County funding must comply with the applicable Federal, State, and/or County procurement rules to maintain funding eligibility. Federal and State programs such as the Active Transportation Program (ATP), Safe Routes to School or Highway Safety Improvements Program (HSIP), and others have unique procurement requirements stated within Local Assistance Procedure Manual (LAPM) and Local Assistance Procedure Guidelines (LAPG) that are subject to change. Sample agreements provided by such programs shall be reviewed by the department and City Attorney for general conformance prior to application to obtain funds, as the requirements for the granting agency may take precedence over the City’s purchasing policy (i.e., the City’s Purchasing Policy may not apply in these circumstances).
The management of Public Projects, including preliminary concept, design, and construction, is typically governed by standardized Public Works plans, specifications, and operational procedures.
Therefore, Public Works will manage all Public Projects on behalf of all City departments. Department Heads will consult with the Public Works Director to advance their public infrastructure needs through the City’s capital improvement program.
Public Projects delivery may be sought by methods allowable in the Public Contract Code, the SMC or other State codes, as authorized by the City Council.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
3. METHODS OF PURCHASING
3.1 Purchasing Cycle and Overview.
The purchasing cycle establishes the proper steps for department staff to follow when requisitioning Goods, Services, and Public Projects.
1. Budget the expenditure. The budget authorizes the City Manager and designees to purchase the Goods, Services, and Public Projects in the line-item budget document.
2. Identify and utilize the appropriate procurement procedure based on purchase type and dollar value.
3. Select/recommend a vendor and execute appropriate agreement.
4. Payment authorization will proceed based upon the type of purchase.
3.2 Payment. One-time purchases for goods and services will be processed upon completion or receipt of goods or services. Payment authorizations for public projects, professional services, and ongoing service contracts will be on a “Net 45” monthly basis throughout the term of the Contract or Purchase Order, unless the City and vendor have agreed to alternate terms. “Net 45” means that a check must be issued to the vendor no later than forty-five (45) calendar days after the invoice is received.
3.3 CAL-Card.
CAL-Card is the registered name of the State of California’s Purchase Card Program. CAL-Card is a VISA purchase card provided by a State of California leveraged procurement agreement (LPA) and offered to participating state and local government agencies. CAL-Card provides a flexible payment mechanism for the acquisition of goods and services with flexible spending limits and merchant category codes (MCC) for each card. Cards are issued in the name of the cardholder and billed to the agency.
The City utilizes CAL-Cards to promote administrative convenience and efficiency. However, the use of a CAL-Card should not be used to circumvent the Accounts Payable cycle or the Business License Ordinance. A City-issued CAL-Card is the personal responsibility of the employee to whom the card is issued and can only be used in accordance with the City’s Purchasing Card Policy and Procedures Program Guide (see supplemental staff resource guidance) for official City business.
3.4 Payable Voucher.
A payable voucher is required under all circumstances.
3.5 Purchase Order.
A Purchase Order (PO) is generated in response to a requisition as a written confirmation of an order and as a contract between the supplier and the City. A PO submitted by an authorized person becomes 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES a legally binding contract. Unauthorized purchases are void and not considered an obligation of the City. A PO is required for any of the following circumstances:
• All Goods purchased at $3,000 or more, except for emergencies as defined herein; • The provider of goods requests that a PO be issued;
• The purchase of services; or
• Any purchase associated with a Capital Improvement project or program that is approved by the City Council.
Notwithstanding the above conditions, a PO shall NOT be required for the purchase and payment of routine, consistent expenses, such as, but not limited to: payroll taxes and related expenses, payments on previously approved leases, contract services, utility bills, or similar expenses. Such purchases shall be made through payable vouchers in accordance with accepted accounting standards.
Open Purchase Orders (OPOs) for services are typically used for multiple on-call repairs or ongoing issues such as drain cleaning and pest control. Open Purchase Orders are typically not rolled over into the following fiscal year unless invoicing and payment extend beyond the end of fiscal year.
POs and OPOs shall not be issued or authorized unless there exists an unencumbered appropriation in the fund account against which such purchase is to be charged. POs/OPOs shall be issued to a vendor prior to ordering or procurement, and not “after the fact” for work already done or materials already ordered. The requesting Department Head shall also retain a copy of the PO/OPO.
The PO/OPO requisition process is as follows:
1. Department staff enters requisition request into City system;
2. Department Head reviews and approves request;
3. Finance staff reviews request and routes for approval based on purchasing authority limits;
4. Finance staff issues PO to department staff.
3.6 Contract.
Contracts will typically be used when procuring Services, Public Projects, and Real Property and may also be preferrable when procuring unique or custom manufactured Goods, especially when acquired by means of lease, rental, or installment purchase. When preparing solicitation documents, the appropriate contract template should be included (see Section 5.1, “Standard Contracts,” of these Guidelines). A Standard Contract is NOT required under the following circumstances:
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • For Non-Professional Services where a Purchase Order for less than $40,000 has been bid out or informally negotiated to cover said services.
• For Real Property acquired pursuant to the power of eminent domain and entry of a decree by the court.
• For Real Property acquired as a result of filings and recording of a mat or plat, as required by California Code.
Annual Service Contracts are typically used for regular services such as tree trimming, traffic signal and street light repairs, refuse hauling, janitorial services, street sweeping, bus shelter cleaning, sewer and storm drain cleaning, and sewer repairs. Annual contracts are typically not rolled over into the following fiscal year unless invoicing and payment extend beyond the end of fiscal year.
Multi-Year Service Contracts are typically used for on-call services such as street repair and sidewalk repair. Multi-year on-call service contracts are typically rolled over at the end of the fiscal year in accordance with the contract term, contingent upon budget availability. Budget availability will be confirmed as part of the year-end closing process and surplus review.
Design-Build Contracts may be used for the design and construction of public works projects costing in excess of $1,000,000. Prior to the execution of a design-build contract, the City Council shall evaluate at a public meeting the comparative advantages for the particular project of the traditional design, bid, and build process of construction and the design-build process. No design-build process contract shall be executed unless the City Council makes written findings that use of the design-build process on the project will accomplish one or more of the following objectives: reduction of project costs; expediting project completion; or provision of design features not achievable through the design, bid, and build process.
Franchise Agreements will be used when applicable and in conformance with state and federal law.
3.7 Year-End Purchase Order and Contract Procedures and Carry-Over.
Purchase orders and contracts will be closed out or carried over in accordance with the following:
• One-time Purchase Orders (PO) and Open Purchase Orders (OPO) o POs without a listed term, for one-time purchases of goods and services, or open POs that are completed before the end of the fiscal year and have been paid for shall be automatically closed. These POs are typically not rolled over into the following fiscal year unless invoicing and payment extend beyond the end of fiscal year;
o Open Purchase Orders (OPO) will be sent to each department for review prior to the close of the fiscal year. Departments will identify those OPOs that should remain open. When a PO is carried over to the next fiscal year, Department Heads should ensure these rollover amounts are included in their upcoming fiscal year budget. In the event insufficient funds have been 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES budgeted, the Department Head may request the unspent funds to be reappropriated as part of the mid-year process; and
o All Open Purchase Orders (OPO) will be closed by the second Tuesday in July, after the last accounts payable batch for the current fiscal year has been completed. If any of the OPOs need to be re-established in the upcoming fiscal year, Department Heads should begin processing the requisition as soon as the adopted budget is loaded in the City’s Finance system and the new fiscal year is open.
• Annual Service Contracts are deemed complete at the end of fiscal year. These contracts are not carried over unless invoicing and payment extend beyond end of fiscal year. • The following types of contracts may span fiscal years and may be carried over in accordance with contract terms and available budget:
o Capital Improvement Project Contracts;
o Multi-Year On-Call or Maintenance Service Contracts;
o Professional Services Contracts; and
o Public Project Contracts.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
4. PROCUREMENT PROCEDURES
4.1 Appropriations Requirement. No contract or purchase shall be made unless there is an unencumbered appropriation in the fund against which such expenditure is to be charged sufficient to cover the amount of purchase or contract, unless in cases of emergency.
4.2 Unauthorized Purchases. No officer or employee of the City shall request a vendor to deliver Goods, Services, or Public Projects to the City without prior authorization by the appropriate purchasing authority. Such purchases are void and not considered an obligation of the City.
4.3 Split Purchases. A split purchase occurs when the quantity or scope of a required Good, Service, or Public Project is known prior to the initial purchase, and is divided into multiple purchases in order to avoid procurement requirements. Split purchases are prohibited and are considered fraud, waste, and/or abuse by auditors and in violation of best practices standards.
4.4 Environmentally Preferable Purchasing.
Environmentally Preferable Purchasing (EPP) is the procurement of goods and services that have a reduced impact on human health and the environment compared to competing products serving the same purpose. EPP should be utilized when it is practical and economically feasible. In addition, the City shall annually procure for its own use, or to give away to the public or third parties, a quantity of recovered organic waste products that meets or exceeds its annual recovered organic waste product procurement target set under SB 1383.
• Per SB 1383, the City shall procure paper products such as printing and writing paper consistent with the requirements of Sections 22150-22154 of the Public Contract Code. This shall include purchasing paper with at least 30% post-consumer fiber (by fiber weight), consistent with the requirements of CalRecycle. The City shall keep records of vendor names, physical addresses, contact information, quantities purchased, percentage of recycled content (by fiber weight) for each paper product, dates of purchase, and invoices of such purchases as defined in 18993.2 of SB 1383 Regulation for a period of 5 years and shall report annually per reporting requirements noted in SB 1383.
• By January 1, 2025, the City shall also procure 8% per capita tons of organic waste through renewable gas (in the form of transportation fuel, electricity, or heat), mulch and compost, and electricity generated from biomass conversion. The City anticipates meeting this requirement through its trash hauler.
For more information about the City’s requirements under SB 1383, see City’s Recovered Organic Waste Product Procurement Policy.
4.5 Local Vendor Preference.
The City’s Local Vendor Preference is intended to benefit local businesses and promote the economic health of the City by keeping dollars and jobs within Stanton. For the purposes of this section, a local 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES vendor/bidder shall be a business having a valid City Business License and a fixed business location within the incorporated City limits. A Local Vendor Preference shall not be granted for contracts involving Professional Services and Public Projects, or as otherwise prohibited by law.
Minor Purchases. For purchases where the value of goods or services to be purchased total less than $3,000, every effort to utilize a local vendor shall be exercised. The City must attempt to solicit quotes from local vendors first, but quotes from non-local vendors may not be rejected on the basis of location.
Purchases of Supplies and/or Equipment. Notwithstanding the exceptions outlined below, the local vendor with the lowest local bid shall receive a two percent (2%) preference discount off their bid/quote price. Upon applying the Local Vendor Preference, if the bid/quote from that local vendor becomes the lowest overall responsible bid/quote or becomes tied for the lowest overall responsible bid/quote, the City shall select that local vendor, even though the actual cost to the City would not be the lowest. The expectation is that the City would not face a net loss, due to the collection sales, transactions, and use taxes from the purchase.
This Local Vendor Preference does NOT apply for a local vendor under any of the following circumstances:
• State or Federal statutes or regulations require that the bid/quote be exempted from local preferences and must be awarded to the lowest responsible bidder. • The bid/quote is part of a cooperative purchase done with other public agencies. • The local vendor fails to demonstrate that they are a responsible bidder for the bid/quote. • The bid/quote from the local vendor is already the overall lowest responsible bid/quote without the Local Vendor Preference discount. (In such a case, the local vendor shall be awarded the contract with their bid/quote left as-is.)
4.6 Key Definitions.
Request for Information (RFI). An RFI is a document used to solicit price, delivery, other market information, or capabilities for planning purposes. Responses to the RFI are not offers and cannot be accepted by the City to form a binding contract unless otherwise specified in the solicitation.
Request for Professional Qualifications (RFPQ). An RFPQ is a document which describes the project or services required and solicits qualifications and capabilities from firms for the purposes of refining a project's scope of work.
Request for Proposals (RFP). An RFP is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time, and approach to work are important factors when evaluating proposals. RFPs are project-specific, and preparation requires general 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES knowledge of the project. An RFP may be used as a pre-qualification step to engage a service provider, screening candidates in advance of a subsequent RFP or bidding process. An RFP will contain reference to qualifying criteria.
Request for Quotes (RFQ). An RFQ is a document that solicits vendors to submit informal cost estimates for the specified Goods or Non-Professional Services required.
Request for Bids (RFB). An RFB is a document that solicits vendors to submit formal (written and signed) cost estimates for the specified Goods or Non-Professional Services required.
Responsive Bid/Proposal. A bid/proposal that conformsto all of the material terms of the bid package and promises to do what the bidding instructions demand. In addition to price, consider the following elements to determine if a bid is responsive:
• A responsive bid is in full conformance with the requirements of the invitation to bid, including specifications and the City’s contractual terms and conditions. Conformance may also include providing proof of insurance, completed forms, references, and all other information as requested in the bid document;
• Bidders who substitute terms and conditions or who qualify their bids in such a manner as to nullify or limit their liability shall be considered non-responsive; and • A bidder may be determined to be non-responsive if the bidder fails to furnish proof of qualifications when required.
Responsible Bidder. A vendor whose bid/proposal demonstrates an ability to satisfactorily perform in full (and in good faith) the contract requirements. A range of factors may be used to determine bidder responsibility, including, but not limited to, performance history, reliable financial information, safety record, bonding and insurance capacity, experience and references, personnel, litigation history, claims, and licensing. A responsible bidder demonstrates the following characteristics, including, but not limited to:
• Can provide product quality, fitness, and capacity for the required usage; • Has the financial resources and capacity to perform the contract or provide the services required; • Has demonstrated character, integrity, experience, quality of performance, and efficiency, particularly with reference to past purchases by the City or other public agencies; • Has the ability to perform within the required time frame and provide future maintenance and service for the use of the subject of the contract; and • Can meet all insurance and DIR requirements.
Best Value. The procurement standard by which selected proposer may be selected in the City’s sole and absolute discretion on the basis of objective criteria for evaluating the qualifications of proposers, 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES with the resulting selection representing the best combination of price and qualifications. Note that the best value may not be the lowest proposed price.
4.7 Open-Market Bid (AKA Informal Bid).
Open-Market Bidding is to be used for the procurement of Goods and Services whose total/cumulative value in excess of $5,000, but less than or equal to $40,000. Open-Market Bidding is also to be used for procurements regarding Public Projects whose total/cumulative value in excess of $200,000, but less than or equal to $60,000.
1. Prepare Request for Quotes (RFQ) and/or Solicit Quotes. The requesting department should exercise its discretion to determine whether to ask for the City Manager’s approval to pursue such a procurement. After verifying with the Finance Department that an adequate unencumbered appropriation for the planned purchase exists, the requesting department documents a description of Goods or scope of Services to be provided, whether a security deposit is required, and the proposed PO or Contract, with input from Risk Management, as necessary.
Solicit via posted notice, telephone request, email request, website search, or any other reasonable solicitation method, at least three (3) price quotes (with appropriate documentation based on dollar limit – see Appendix B for Quote Documentation Form (QDF)). Adequate time should be allotted to permit a response.
• If unable to obtain a minimum of three (3) price quotes, staff shall document the reasonable efforts that were made (i.e., no other vendors to solicit, vendors declined to provide a bid, etc.).
2. Rejection of Quotes. The requesting department may recommend rejection of any or all informal quotes, with or without cause, if it is determined to be in the best interests of the City. If all quotes are rejected, the City may re-solicit quotes or abandon the purchase.
3. Award Selection. Awards should be made to the best qualified vendor presenting a quote that is in the best interests of the City. This typically means the lowest quote that fully meets the requirements or the best qualified proposal.
4. Request for Approval. The requesting department shall submit a requisition or agreement (see Appendix C for Model Agreement Checklist), which includes the recommended vendor, with all supporting documentation to Finance. Supporting documentation shall include a completed QDF (Appendix B), certificates of insurance, and bonds, as applicable. The Finance Director and/or City Manager, depending on the purchase amount, shall review the recommendation and supporting documentation.
• The City Manager may decide to accept the recommendation, request additional negotiations, request additional quotations, or reject the recommendation. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • If the City Manager chooses to reject the recommendation, the City Manager shall direct the requesting department to either apply competitive bid procedures to the purchase, modify the request for quotes and re-advertise, complete the service in-house, or abandon the procurement effort without further action.
4.8 Request for Proposals (RFP).
Request for Proposals (RFP) is to be used for the procurement of Professional Services whose total/cumulative value is greater than $40,000. Note that proposals for professional services must be evaluated using the quality-based selection (QBS) process in accordance with Public Law 92-582.
1. Develop Scope of Work and Funding. The requesting department shall ask for the City Manager’s approval to pursue such a procurement.
• If the required services are particularly specialized and additional information is required to help determine the proper scope of work, an RFI shall be issued. • If the qualifications of the available consultants are unknown and the desired scope of work is dependent on such qualifications, an RFPQ may be issued.
2. Prepare Request for Proposals (RFP). After verifying with the Finance Department that an adequate unencumbered appropriation for the planned purchase exists, the Department will identify the proposed scope of work and provide background information, as required. The RFP shall also state the proposal requirements (including deadlines and security deposit requirements), evaluation criteria, rules and regulations of the solicitation, rights reserved by the City, and a sample Contract. The RFP shall incorporate input from Risk Management, as necessary.
3. Solicit Proposals. The submission window (from the date the RFP is posted to the deadline for proposals to be submitted) shall be a minimum of ten (10) business days. All timely qualifications/proposals received will be retained per the City’s Document Retention Schedule. • If an RFPQ was utilized or a relevant Master Service Agreement (MSA) is on file, only those candidates who successfully respond to the RFPQ or entered into the MSA and meet the qualification criteria will be included in the subsequent RFP or bidding process. • If neither an RFPQ nor an MSA can be applied, the requesting department shall publicly advertise the RFP at key locations, which may include City Hall, the Stanton Public Library, the City website, a newspaper of general circulation in Orange County (if applicable), appropriate trade publications (if applicable), and locations required by ordinance (if applicable).
Additionally, the department may send the RFP to select professionals/firms.
4. Rejection of Proposals. The City may, in its sole and absolute discretion, reject any one or more items in any proposal or waive any irregularities or informalities in the proposals, if deemed to best serve the interests of the City. A department may recommend rejection of any or all proposals, with or without cause, if determined to be in the best interests of the City. If all 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES proposals are rejected, the City may re-solicit proposals (with or without modification to the request) or abandon the purchase.
5. Interview Selection and Interviews. Proposals shall be ranked based upon qualifications and ability to perform the proposed scope of work. The top-ranked proposers shall be invited to interview. During the interviews, staff may negotiate changes to the scopes of work and/or cost proposals.
6. Background Checks. Appropriate background and reference checks will be conducted for the vendor with the best qualified proposal.
7. Award Selection. Award selection will be based on demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services at fair and reasonable prices.
8. Contract Negotiation. During contract negotiations, an agreement must be made on the scope of work as well as the not-to-exceed total contract cost. If an agreement cannot be reached, the City may move to the vendor with the next-best qualified proposal or abandon the procurement process altogether.
9. Request for Approval. The requesting department shall submit the contract (approved as to form by the City Attorney), along with certificates of insurance and bonds, where applicable, to the Finance Director and/or City Manager for review and approval. • If the City Manager accepts the contract and the contract’s total not-to-exceed cost is greater than $40,000, the contract shall be brought to the City Council for review and approval by the Department Head.
• If either the City Manager or City Council chooses to reject the recommendation, the City Manager shall direct the requesting department to either modify the RFP and re-advertise, complete the service in-house, or abandon the procurement effort without further action.
4.9 Competitive Bid for Procurements Besides Public Projects.
The Competitive Bid procedure described in this section is to be used for the procurement of Goods and Non-Professional Services whose total/cumulative value is greater than $40,000.
1. Develop Scope of Work. The Department Head shall prepare a scope of work consistent with the approved budget and project authorization of the City Council. • If the required services are particularly specialized and additional information is required to help determine the proper scope of work, an RFI shall be issued. • If the qualifications of the available contractors/vendors are unknown and the desired scope of work is dependent on such qualifications, an RFPQ may be issued. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
2. Prepare Request for Bids (RFB).
• If the scope of work is substantially prescriptive and the major evaluation criteria will be price, an RFB may be issued.
• If the scope of work allows for innovative approaches and the other non-price qualifications will be major evaluation criteria, an RFP may be issued.
The RFB will identify the proposed scope of non-professional services and provide background information for the proposed services, as required. The RFB shall also state the bid requirements (including deadlines and whether a security deposit is required), rules and regulations of the solicitation, rights reserved by the City, and a sample contract containing all other applicable contractual terms and conditions. The RFB shall incorporate input from Risk Management, as necessary.
3. Solicit Bids. The requesting department shall publicly advertise the RFB at key locations, which may include City Hall, the Stanton Public Library, the City website, a newspaper of general circulation in Orange County (if applicable), appropriate trade publications (if applicable), and locations required by ordinance (if applicable). Additionally, the department may send the RFB to select vendors. The bidding window (from the date the RFB is posted to the deadline for bids to be submitted) shall be a minimum of ten (10) business days. All timely bids received will be retained per the City’s Document Retention Schedule. Any bids received after the bidding window will be time/date stamped and returned unopened to the bidder.
The RFB shall also designate a date, time, and public place where all timely formal bids will be opened and read.
4. Rejection of Bids. The City may, in its sole and absolute discretion, reject any one or more items in any bid, if deemed to best serve the interests of the City. Any bids not in conformance with the City’s bid requirements shall be deemed non-responsive and shall be rejected. If all bids are rejected, the City may re-solicit bids (with or without modification to the request) or abandon the purchase.
5. Award Selection. Appropriate background and reference checks (including checks of a vendor and any subcontractors’ contractor’s license and registration with the Department of Industrial Relations, if applicable) will be conducted for the vendor with the best qualified bid/proposal.
6. Request for Approval. The requesting department shall submit the contract (approved as to form by the City Attorney), along with certificates of insurance and bonds, where applicable, to the Finance Director and/or City Manager for review and approval. The City Manager may accept or reject the contract.
• If the City Manager accepts the contract and the contract’s total not-to-exceed cost is greater than $40,000, the contract shall be brought to the City Council for review and approval by the Department Head.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • If either the City Manager or City Council chooses to reject the recommendation, the City Manager shall direct the requesting department to either modify the RFB and readvertise, complete the service in-house, or abandon the procurement effort without further action.
4.10 Competitive Bid for Public Projects.
The Competitive Bid procedure described in this section is to be used for procurements regarding Public Projects whose total/cumulative value is greater than $200,000. Before any contract for the construction, alteration, or repair of any public building, public work, or public improvement is awarded to any entity, that entity shall furnish to the City such bonds as are required by the California Public Contracts Code or other applicable law.
1. Develop Scope of Work and Funding. The Department Head shall prepare a scope of work or services consistent with the approved budget and project authorization of the City Council. • If the required services are particularly specialized and additional information is required to help determine the proper scope of work, an RFI shall be issued. • If the qualifications of the available contractors/vendors are unknown and the desired scope of work is dependent on such qualifications, an RFPQ may be issued.
2. Prepare Request for Bids (RFB). The RFB will contain accurate and clear bid specifications and provide background information (including informational documentation and technical reports) for the proposed services, as required by state or local law. The RFB shall also state the bid requirements (including deadlines, bond(s) required, and whether a security deposit is required), how to obtain more detailed information about the project (including final plans/specifications), evaluation criteria, rules and regulations of the solicitation, rights reserved by the City, and a sample contract. The RFB shall incorporate input from Risk Management, as necessary.
3. Solicit Bids. The requesting department shall publicly advertise a notice Inviting Formal Bids (IFB) at key locations, which may include City Hall, the Stanton Public Library, the City website, a newspaper of general circulation in Orange County (if applicable), appropriate trade publications (including those specified by the California Uniform Construction Cost Accounting Commission in accordance with Section 22034(a)(2) and 22036 of the Public Contract Code), and locations required by ordinance (if applicable). Additionally, the department may send the IFB to select vendors. The bidding window (from the date the IFB is posted to the deadline for bids to be submitted) shall be a minimum of fourteen (14) business days. The IFB shall also designate a date, time, and public place where all timely formal bids will be opened and read.
4. Pre-Bid Conferences/Site Visits. If required, a pre-bid site visit, conference, or job walk may not occur within a minimum of five (5) calendar days from the initial publication of the IFB. The IFB must clearly indicate the date, time, and location of the pre-bid site visit, conference, or job walk.
5. Formal Bid Opening. Bid opening shall be conducted in one of the following ways:
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • Sealed bids shall be submitted to the City Clerk and shall be clearly identified with the bid number on the envelope. All timely bids received will be retained per the City’s Document Retention Schedule. Any bids received after the bidding window closes will be time/date stamped and returned unopened to the proposer. Late bids will not be considered for award. • The City Clerk publicly opens and records all timely bids at the time and place stated in the public notices. All bids received will be available for public inspection in the City Clerk’s office during regular business hours for a period of not less than thirty (30) calendar days after the bid opening.
6. Rejection of Bids. The City may, in its sole and absolute discretion, reject any one or more items in any bid, if deemed to best serve the interests of the City. Any bids not in conformance with the City’s bid requirements shall be deemed non-responsive and shall be rejected. If all bids are rejected, the City may re-solicit bids (with or without modification to the request) or abandon the purchase.
7. Evaluate Bids for Responsiveness and Bidders’ Responsibility. The City shall review all bids opened for completeness, accuracy, responsiveness, and qualifications to the invitation and bid documents. All deviations shall be documented. The City may include or omit from the contract any of the additive or deductive items that were part of the IFB.
8. Award Selection. Appropriate background and reference checks (including checks of a vendor and any subcontractors’ contractor’s license and registration with the Department of Industrial Relations, if applicable) will be conducted for the vendor with the lowest responsive and responsible bid, which will be documented in the not-to-exceed total contract cost. If two or more bids received are the same amount, the City Council may decide which bid to accept and award.
9. Request for Approval. The requesting department shall submit the contract (approved as to form by the City Attorney), along with certificates of insurance and bonds, where applicable, to the Finance Director and/or City Manager for review and approval. The City Manager may decide to accept or reject the contract.
• If the City Manager accepts the contract, the contract shall be brought to the City Council for review and approval, by the Department Head.
• If either the City Manager or City Council chooses to reject the recommendation, the City Manager shall direct the requesting department to either modify the RFB and re-advertise, complete the service in-house, or abandon the procurement effort without further action.
4.11 Master Service Agreements. Professional firms providing engineering, plan checking, land surveying, transit, planning, environmental, economic development, legal, auditing, landscape architecture, or other services may be retained on a continuing basis to provide professional services.
For such purposes, unless prohibited by law, the City may enter into Master Service Agreements (MSAs) under which the City pre-qualifies vendors for future purchases of Goods, Services, or Public Projects, including, but not limited to, on-call services, task orders, and job orders. Notwithstanding 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES anything to the contrary in SMC Chapter 2.56 and unless otherwise prohibited by law, MSAs may be procured through the competitive bid process, typically through a Request for Proposals (RFP). To ensure that the City receives these services at the best value, every effort shall be made to receive proposals from at least three (3) consultants. MSAs shall be reviewed at least every five (5) years.
4.12 Miscellaneous Contracting Guidelines
Department of Industrial Relations (DIR). The City may not award a public works or maintenance contract as defined by Labor Code Section 1720, or accept a bid from any contractor or subcontractor that is not registered with the DIR. The requesting department shall verify registration with the DIR of the lowest responsive and responsible bidder(s).
Additive and Deductive Bid Items. The Department Head may require a bid to include prices for items that may be added to, or deducted from, the scope of work in the contract for which the bid is being submitted. When additive and/or deductive items are included in a notice Inviting Formal Bids (IFB), the IFB must state the method by which the lowest bid is determined. There are multiple methods to determine the lowest bid:
• Default Method – Base Contract Only. The lowest bid shall be the lowest bid price on the base contract, without consideration of the prices on the additive and deductive items. • Partial-Inclusive. The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price. • All-Inclusive Plus Baseline Comparison. The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that, when taken in order from a specifically identified list of those items in the solicitation and factored in accordingly (i.e., added or subtracted) to the base contract, are less than, or equal to, a funding amount publicly disclosed by the City before the first bid is opened.
• Custom. The lowest bid shall be determined in any manner that prevents any information that would identify any of the bidders or proposed subcontractors or suppliers from being revealed to the City before the ranking of all bidders has been determined.
Solicitation Addenda. If the City issues an addendum that results in a material change to the IFB/RFQ/RFB/RFP, the date and time for submitting bids/proposals must be extended by no less than 72 hours.
Review of Bids.
Bids shall be unconditionally accepted without alteration or correction, except as authorized in this policy. Once opened, no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. Except as otherwise provided by this policy or rules and regulations set out in the bid notice, all decisions to permit the correction or withdrawal of bids 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES or to cancel awards or contracts based on bid mistakes shall be supported by a written determination.
City staff is advised to consult with the City Attorney in evaluating bid irregularities.
If 1) two or more bids received are for the same total amount or unit price and the quality and service are also equal and 2) the public interest will not permit the delay for readvertising for bids, then the City may, at its discretion, conduct negotiations with the tie bidders, request the best and final bid from each, and accept the lowest bid.
Cancellation of Solicitation.
When it is in the best interests of the City, a solicitation may be canceled, in whole or in part, in accordance with the rules and regulations set out in the bid notice or invitation. The reasons for such a cancellation shall be made part of the contract or bid file. If the cancellation is the result of a rejection of all bids presented, the City shall furnish a written notice to the apparent low bidder. For Public Project solicitations, the written notice must be mailed at least two (2) business days prior to the public meeting where the City Council will declare the rejection of all bids.
Upon the rejection of all bids, the City Council decide to do any of the following:
• Abandon the project;
• Re-advertise for bids; or
• By a four-fifths (4/5) vote, declare by resolution that the project can be performed more economically by City employees, and thus order the project be done by force account.
Solicitation Deadline Extensions. The bidding window may be extended by up to fourteen (14) calendar days if it is deemed that such an extension would be in the public interest. Notice of the extension shall be given to all prospective bidders by the City Clerk in such manner as is most practical.
No extension may be granted for the purpose of qualifying a bid that was delivered after the close of the initial bidding window.
Bidder’s Security.
All sealed bids for Public Projects shall include a bidder’s security in one of the following forms: (a) cash; (b) cashier’s check made payable to the City; or (c) a bidder’s bond executed by an admitted surety insurer made payable to the City. The bidder’s security shall be an amount at least equal to ten percent of the bid amount. The City Manager may, on a project-by-project basis, waive the requirement for bidder’s security or adjust the minimum amount thereof.
If the successful bidder fails to execute the contract within ten (10) business days after the notice of award of contract, the bidder’s security shall be forfeited to the City. The City Council may, on refusal or failure of the successful bidder to execute such contract, award the contract to the next lowest responsible bidder. If the City Council awards the contract to the next lowest responsible bidder, the amount of the lowest bidder’s security shall be applied by the City to the difference between the low 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES bid and the second low bid. The surplus, if any, shall be utilized to offset any and all costs of preparation and printing of plans, specifications, estimates of cost, publication of notices. Any surplus remaining thereafter shall be returned to the lowest bidder who failed to execute the contract.
Example: The project has a bid security of $5,000. Bidder A made the lowest bid of $25,000 but failed to execute the contract within ten (10) business days after the notice of award of contract.
Bidder B made the second lowest bid of $27,000, and the City Council decided to award the contract to Bidder B. Bidder B executes the contract and receives its full bid security of $5,000.
Bidder A receives only $3,000 (minus the actual administrative costs for the procurement) of its bid security back. The $2,000 withheld by the City is applied to the cost difference between the two bids.
4.13 Exceptions to Standard Procurement Procedures.
There shall be no open-market bid, Request for Proposals, or competitive bid processes for the purchases of Goods, Services, or Public Projects under any of the following circumstances:
• Best Interests of the City. Except where otherwise prohibited by law, the City Council or City Manager may authorize the award and execution of contracts for Goods, Services, and Public Projects subject to the dollar limits consistent with these Guidelines, without following the required procurement methods, provided that the City Council or City Manager (depending on the proper purchasing authority) finds that such award is in the best interests of the City, or of the public health, safety, and welfare of the community. • Serving as a Pass-Through Agency. When the City receives Federal, State, or County grant monies as a pass-through agency. This includes situations where the City is a fiscal agent, receiving funds on behalf of a separate entity.
• Cooperative Purchasing.
Use of cooperative purchasing is encouraged to obtain good and services by aggregating volume, securing value pricing, and reducing administrative overhead. In cooperative purchasing, the City uses an existing public contract arrived at after the completion of a competitive procurement process as a template to form the City’s own contract with the vendor to acquire the same products/services at the same/lower price. This process is also known as “piggybacking.” Measured use of cooperative purchasing can significantly reduce the time and resources needed to competitively purchase goods and services. Cooperative purchasing opportunities should be based on competitively awarded contracts that substantially comply with the California Procurement Code and the City’s standard procurement procedures.
Cooperative purchasing need not be based on the absolute lowest pricing and may consider factors in addition to price, such as the time and/or resources needed for the City to independently competitively bid for the good or service. Multi-award contracts, whereby multiple vendors are awarded a contract for a specific product and each have maximum item prices and contract terms established, are also eligible source contracts for cooperative purchasing. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES Contracts reached through cooperative purchasing shall be approved by the City Council. The corresponding staff report shall note the use of cooperative purchasing and describe the underlying competitive procurement relied upon.
Cooperative purchases must adhere to the following requirements:
o The competitive bidding source contract must still be in effect. o The source contract must not preclude the City from using it as an agreement for cooperative purchasing.
o The awarding jurisdiction for the source contract must be either the federal government, the State of California, or a county or city within the State of California. Examples of nationally recognized purchasing cooperatives include, but are not limited to, California Multiple Award Schedule (CMAS); National Association of State Procurement Officers (NASPO) ValuePoint; the Department of General Services (DGS); OMNIA Partners (formerly U.S. Communities Cooperative Purchasing); Sourcewell (formerly National Joint Powers Alliance); and federal General Services Agency (GSA) procurements.
o The prospective vendor making a proposal to the City must be the same vendor that was awarded the source contract. It is insufficient for the prospective vendor to be a partner supplier or authorized re-seller under the source contract vendor. o The scope of work and/or goods delivered in the source contract must be the same as (or substantially similar to) the scope of work and/or goods requested by the City. o The prospective vendor must extend to the City the same terms and conditions as (or terms more favorable to the City than) those in the initial contract. • Emergency.
“Emergency” (such as a flood, epidemic, riot, major equipment failure, infrastructure failure, earthquake, or fire) means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. Under such a public emergency, the City Council or City Manager may determine that normal procurement methods are impractical and must be temporarily dispensed with to satisfy a compelling need of unusual urgency.
Emergency procurement shall be limited to those supplies, services, or construction necessary to meet the emergency. The City Council is the final authority to ratify the Declaration of the Local Emergency and approve the Emergency Report, thereby authorizing the payment of the emergency purchases. Emergency procurements shall only be used to repair or replace a public 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES facility; take any directly related and immediate action required by an emergency; or procure necessary Goods, Services, and Public Projects for the provision of essential public services.
The requesting department shall provide a written emergency report, which includes all of the following:
o The conditions which created the emergency;
o A description of the threat to the health, welfare, or safety of the public; o A description of how the procurement will address the threat and why it is an immediate need;
o The basis for the selection of the particular contractor or supplier; o A description of what efforts were utilized to identify and contact alternative suppliers or contractors;
o The contractor’s or supplier’s name and address, along with a list of the supplies, materials, and services; and
o Completed and signed purchase orders with attached invoices requesting payment for the emergency purchases.
The City Manager shall review the Emergency Report to determine whether the emergency conditions qualify such purchases for emergency procurement. If the emergency procurement is justified, the City Manager shall draft a Declaration of the Local Emergency (if no such declaration is in effect) and sign the purchase orders attached to the Emergency Report. The City Manager shall then file with the City Council, as soon as practical, the drafted Declaration of the Local Emergency, the Emergency Report, and the purchase orders attached to the Emergency Report.
The City Council shall terminate the emergency action at the earliest possible date, as conditions warrant.
• Below Minimum Procurement Levels. When procuring Goods or Services costing less than or equal to $5,000, written competitive bids are not required, and the requesting Department Head has the authority to award a purchase contract. However, prudent judgment shall be used at all times to ensure that the purchased supplies and services are received in good condition and at a fair price, and the Department Head, or their designee, is strongly encouraged to obtain competitive quotations. Such minor procurements are also called Over-the-Counter Purchasing. • Mandated Expenditures. When expenditures are mandated by law or regulation, such as county booking fees; utilities (except when alternative supplies or services are available); postage; waste disposal fees; witness and jury fees (and other court-ordered payments); or other non-negotiable permit, use, or application fees.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • Non-Traditional Procurements. Certain goods and services are acquired in a specific manner (through methods and/or from sources) that may meet the “best quality and value” standards outside of the open, competitive market. Examples of such non-traditional procurements include:
o Goods purchased through public auction, closeout sale, bankruptcy sale, or other similar sale, where the purchase at any such auction or sale is made at a cost below the market cost. o Goods obtained as part of an exchange that is not a sale or auction. o Goods produced by the California Prison Industry (CALPIA). • Commodities. On an annual basis, the City Council will approve a list of commodities that are not readily adaptable to the open-market bid, Request for Proposals, or competitive bid processes and should therefore be exempt from the competitive bidding requirements of these Guidelines.
Examples may include, but are not limited to, fuel, sand, rocks, lumber, signs, street light poles, traffic signal poles, and guardrails. Any approved commodities will be eligible for purchase after procuring three (3) quotes upon the review and approval of the Finance Director and City Manager, so long as purchases fall within the approved budgets in the Fiscal Year Operating Budget.
• Sole Source. When the appropriate signing authority determines that a competitive market does not exist or that the City will not gain a competitive advantage by using open-market bid, Request for Proposals, or competitive bid processes, the signing authority may authorize use of sole source purchasing. A sole source purchase means that only one supplier, to the best of staff’s knowledge and belief after conducting a good faith review of the market, is capable of providing the required product or service. Note that patented, trademarked, or copyrighted technologies and/or methods alone do not categorically qualify a good or service as a sole source. To evaluate whether a reasonable similar alternative exists, one shall consider whether another vendor could provide comparable goods or services that, collectively, would serve as a functional equivalent to the goods and/or services in question.
Sole source purchasing may be utilized if similar types of goods and services may exist, but only one supplier, for reasons of expertise, standardization, quality, compatibility, specifications, or availability, is the only source that is acceptable to meet a specific need.
The requesting department shall be responsible for submitting to the Finance Director for approval a memo justifying the sole-source nature of the procurement. The memo shall clearly explain:
o The type of contract to be established;
o The services/commodities to be provided by the vendor; o Why the recommended vendor is the only one capable of providing the required services/commodities;
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES o How the recommended vendor’s prices or fees compare to the general market; and o How the City would accomplish this particular task if the recommended vendor could not provide the product(s) or service(s).
If a contractor develops a particular expertise through demonstrated past performance, then such contractor may be awarded a subsequent contract for related work, provided that the sole source justification memo has been submitted to and approved by the Finance Director. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
5. CONTRACT MANAGEMENT
5.1 Standard Contracts. The City Attorney has developed standard City contracts to use when acquiring Goods, Services, or Public Projects. These contracts address the vendor’s and the City’s rights and responsibilities, specific tasks to be performed, payment terms, and insurance requirements.
Requesting departments shall contact the Risk Manager for recommended contract and insurance requirements in the event the risk associated with the procurement is not in line with the standard contract. If the requesting department does not feel its contracting needs can be met by one of the standard contracts listed below, they must contact the City Attorney to request a custom contract.
The standard contract forms include, but are not limited to:
• Amendment for Services Agreement;
• Construction Contract;
• Design Services Agreement;
• General Services Agreement;
• General Services RFP;
• Letter Agreement;
• Maintenance Services Agreement;
• Professional Consultant Services
Agreement (Non-Design); and
• Short Form Construction Contract.
5.2 DIR Filing and SAM Registration.
If a contract is subject to prevailing wage, the requesting department must file a PWC-100 Form with the Department of Industrial Relations within five (5) calendar days of awarding the contract. The PWC 100 can be accessed here: https://www.dir.ca.gov/pwc100ext/. (See Appendix A for DIR requirements.)
If a contract is part of a federal project, the requesting department must send confirmation to the City Clerk that the vendor is registered in the System for Award Management (SAM).
5.3 New Vendors/Business Licenses. All City contracts and Purchase Orders shall require vendors to obtain City business licenses; exceptions include goods and one-time emergency services. In accordance with Chapter 5.04 of the SMC, it is unlawful for any person to transact and carry on any business, trade, profession, calling, or occupation in the City without first having procured a license from the City to do so or without first complying with any and all applicable provisions of Chapter
5.04. Additionally, Chapter 5.04 imposes upon the businesses, trades, professions, callings, and occupations license taxes in the amounts prescribed in Chapter 5.04.
5.4 Payment and Performance Bonds Criteria. In accordance with Civil Code Section 9550(a), payment and performance bonds are required for contracts for Public Projects involving an expenditure in excess of sixty thousand dollars ($60,000). The City shall, to the greatest extent practicable, use bond forms supplied by the City Attorney.
5.5 Vendor Signature.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES Requirements for contracts vary depending on whether a vendor conducts business in the capacity of a corporation, general partnership, limited liability company (LLC), limited partnership (LLP), or as an individual:
• Corporations. Contracts with vendors doing business as a corporation will be signed by two corporate officials: (1) one officer from the corporation’s “operational group” (i.e., chairman of the board, president, or any vice president); and (2) one officer from the corporation’s “financial group” (i.e., secretary, assistant secretary, assistant treasurer, or chief financial officer). • Limited Liability Companies (LLCs). LLCs may be either manager-managed or member-managed.
For LLCs that are manager-managed, the contract should be signed by a manager. For LLCs that are member-managed, the contract should be signed by a member. • Partnerships. Contracts with vendors conducting business as a general partnership or limited partnership will be signed by at least one general partner having apparent authority to enter into the contract on behalf of the partnership.
• Individuals. Contracts with vendors conducting business in his or her individual capacity, otherwise known as a sole proprietor, will be signed by that individual.
For contracts with vendors doing business as a corporation, LLC, or partnership, the signature lines should always include the typed-in name and title of the person(s) executing the contract on behalf of the vendor, as well as the business name of the vendor. For contracts with vendors doing business as an individual, the signature lines need only include the typed-in name of the vendor, as well as the vendor’s business name when the vendor is doing business under a name other than the vendor’s own name.
5.6 Contract Review and Routing.
1. Upon the City Council’s approval of the award of contract, the successful bidder shall promptly supply all applicable bonds and required certificates of insurance to the City Clerk’s office.
2. Within ten (10) business days of the City Council’s approval of the award of contract, two (2) copies of the contract, printed single-sided, must be fully executed and in the possession of the City Clerk. It is the responsibility of the requesting department to confirm all initials, signatures, and notarizations are complete. The following signatories are required for the contract to be fully executed:
• City Attorney, who will review and approve as to form; • City Manager or Mayor/Mayor Pro Tem, depending on whose purchasing authority the contract falls under;
• Vendor signatory(ies), based on Section 5.4 of these Guidelines; 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES • City Clerk, who will attest that the contract is fully executed.
3. Once the contract is fully executed, the two (2) originals are distributed as follows:
• City Clerk’s office (to be scanned into Laserfiche) and • Vendor.
4. Once the contract is fully executed, the requesting department may issue a Notice to Proceed to the contractor, and other proposers shall be promptly notified of official rejection. If the contract was not awarded to the proposer with the lowest bid, the proposer(s) with lower bid(s) must be given an explanation of why their proposal was rejected.
At the beginning of each fiscal year, each Department Head shall review and update their “List of Consultants Currently Under Contract” by their department, which includes the names of the firms, the type of services provided, the cost of contract(s) for each firm, the term dates (start and end) of contracts(s), and the number of years each firm has been retained by the City.
5.7 Contract Amendments, Change Orders, and Extensions.
Amendment. A contract amendment includes a change to the scope of services and may also include corresponding changes to term and cost.
Extension. A contract extension includes an increased term and may also include corresponding changes to cost, but no change to the scope of services. The standard contract term is an initial threeyear term with the option to renew for an additional two (2) one-year terms.
Change Order. A change order is an amendment to a construction contract.
Contingencies. The following standard contingencies may be included in each contract template:
• Compensation - 10% of the total not-to-exceed dollar amount; and • Term - 365 calendar days, where applicable.
Purchasing Authority. Allowable contingencies and requests for amendments/extensions/change orders must be presented to the appropriate purchasing authority based on the cumulative dollar amount for the amendments/extensions/change orders. All requests must be reviewed by the Finance Director to ensure available budget and/or identify need for an additional appropriation. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
5.8 Protest Procedures.
Right to Protest. Prior to making the award, only a bidder who has actually submitted a bid/proposal is eligible to submit a bid protest against another bidder. Subcontractors are not eligible to submit bid protests. A bidder may not rely on the bid protest submitted by another bidder, but rather must timely pursue its own protest. Protests shall be limited to matters in which the City does not have discretion to act. This section shall apply to all contracts awarded by the City through a competitive process.
Timing of Protest. The protest shall be submitted in writing within five (5) business days following the bid opening. Untimely protests will not be considered and will be deemed waived.
Goods and Services (Not Public Projects)
Change Order/Amendment
Approval Authority Amount
Department Head Any change order/amendment resulting in a total contract cost in the amount of $5,000 or less.
City Manager Any change order/amendment resulting in a total contract cost in the amount of $40,000 or less.
City Council Any change order/amendment resulting in a total contract cost greater than $40,000.
Public Projects
Change Order/Amendment
Approval Authority Amount
Department Head
Any change order/amendment resulting in a total contract cost in the amount of $60,000 or less.
*The Public Works Director shall have the authority to execute change orders within the authority granted by the Council as part of the award.
City Manager Any change order/amendment resulting in a total contract cost in the amount of $200,000 or less.
City Council Any change order/amendment resulting in a total contract cost greater than $200,000.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES Contents of Protest. The protest shall identify and explain the factual and legal grounds for the protest. Any grounds not raised in the written protest are deemed waived by the protesting bidder or proposer. The protest shall include all relevant, supporting documentation with the protest at the time of filing.
City Response. If the protest is timely and complies with all of the above requirements, the City shall review the protest, any response to the protest received from the challenged bidder or proposer, and all relevant information. The City will provide a written response to the protestor. The City’s action is final.
Effect of Failure to Comply with Protest Procedures. The procedures set forth in this document are mandatory and are the sole and exclusive remedy of a bidder or proposer to dispute the award of a contract. A protest that does not comply with these procedures may be summarily rejected.
Conflicts. The protest procedure contained in this section shall not apply if a particular procurement solicitation contains a different protest procedure.
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES
6. RECEIPT AND INSPECTION
6.1 Receipt and Inspection of Purchased Assets
It shall be the responsibility of the Department Head and/or their designee(s) to immediately inspect, upon delivery from the vendor, all materials, supplies, equipment, and personal property purchased pursuant to this policy. Acceptance of the delivery shall be finalized only after the individual(s) conducting the inspection have signed all related invoices, thereby signifying that they have inspected and received the merchandise listed on said invoice in good condition. Damaged property or items not specified on the purchase order shall not be accepted, and the non-conforming nature of the goods, together with the reason for rejection thereof, shall be noted in writing upon the delivery receipt.
Employees shall not:
• Knowingly accept commodities of a quality inferior to those called for by the contract; • Knowingly certify to the receipt of a greater amount or different kind of materials or supplies than have actually been received; or
• Knowingly certify to a greater amount of labor performed than has actually been performed.
Whenever payment is made for the acquisition of a fixed asset (i.e., purchased for long-term use of at least a year) and whenever acquisition costs of said asset is $5,000 or more, the Finance Director or their designee shall enter a record of said acquisition upon the inventory records of the City, and the Purchasing Officer/Designee shall have a property sticker placed upon said asset. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES APPENDIX A. Department of Industrial Relations (DIR) Requirements The following is related to State prevailing wage requirements. For up-to-date DIR vendor and City reporting and registration requirements, go to https://www.dir.ca.gov/.
DIR Registration is required to bid or work on public works projects that are subject to the prevailing wage requirements of the State of California. Small projects up to $25,000 for construction and up to $15,000 for maintenance are exempt from registration by the contractor, subcontractors, and the City (see Note below). However, prevailing wages are still required for any public works project over $1,000.
Penalties for City noncompliance include fines and/or loss of state funding for one year.
What are public works projects?
Under the Labor Code, public works in general refers to:
• Construction (includes work performed during design and preconstruction, including inspection and land surveying work), alteration, demolition, installation, maintenance, or repair work; • Done under contract; and
• Paid for in whole or in part out of public funds
When are prevailing wages and DIR registration NOT required? • Repairs and maintenance to equipment not attached to realty. • Janitorial or custodial services of a routine, recurring, or usual nature. • Landscape maintenance work done by a “sheltered workshop” (e.g., California Conservation Corps).
• Protection provided by guards, watchmen, or other security forces. • Services up to $1,000.
City Staff’s Responsibilities:
• Require proof of contractor/subcontractor registration before accepting a bid. • Verify contractor with System for Award Management (SAM). • Register public works projects with DIR. If the contract is subject to prevailing wage, file a PWC100 Form with the Department of Industrial Relations (DIR) within five (5) calendar days of awarding the contract. The PWC-100 can be accessed at https://www.dir.ca.gov/pwc100ext/.
Contract registration must be within thirty (30) calendar days of contract award, or prior to the first work day for projects lasting less than thirty (30) calendar days. • Ensure posting of jobsite notices.
• Ensure payment of prevailing wages are uploaded to the DIR website and periodic inspection of certified payroll.
NOTE: Regulations and penalties regarding DIR requirements are subject to change periodically. City staff and Contractors are required to follow the latest version of the guidelines, which can be found on the DIR website https://www.dir.ca.gov/ and https://www.dir.ca.gov/public-works/publicworks.html.
If federal funding is utilized, the City shall comply with applicable wage requirements. 55728.01000\33995632.1
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CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES These are NOT public works projects. Prevailing
wages and DIR registration are not required.
• Repairs and maintenance to equipment not
attached to realty.
• Janitorial or custodial services of a routine,
recurring, or usual nature.
• Landscape maintenance work done by a
“sheltered workshop” (e.g., California
Conservation Corps).
• Protection provided by guards, watchmen,
or other security forces.
• Services up to $1,000.
Awarding body (City) responsibilities:
• Register public works projects with DIR.
• Require proof of contractor/subcontractor
registration before accepting a bid.
• Ensure posting of jobsite notices.
• Ensure payment of prevailing wages.
Awarding body (City) penalties for
noncompliance:
• Fines of $100 per day up to $10,000 for:
o Failure to comply with award
notification requirements
o Permitting an unregistered
contractor or subcontractor to work
on a project
• Potential loss of state funding for one year
for willful violation for two or more projects.
These are public works projects. DIR registration
by vendor and subcontractors is required before
bidding. Project registration is required on the
first day of work or thirty (30) calendar days
following award, whichever is sooner. Prevailing
wages are required for services costing over
$1,000. Include DIR language in contract.
Work done under contract and paid for in whole
or in part with public funds?
• Alteration
• Demolition
• Installation
• Repair
• Construction (including design, inspection,
or surveying)
Maintenance that is:
• "Routine, recurring, and usual work for the
preservation, protection, and keeping of any
publicly owned or publicly operated facility
for its intended purposes in a safe and
continually usable condition for which it has
been designed, improved, constructed,
altered, or repaired" OR
• "Carpentry, electrical, plumbing, glazing,
(touchup painting), or other craft work
designed to preserve the publicly owned or
publicly operated facility in a safe, efficient,
and continuously usable condition for which
it was intended, including repairs, cleaning,
and other operations on machinery and
other equipment permanently attached to
the building or realty."
• Landscape and tree trimming.
Construction under $25,000 and Maintenance
under $15,000 are exempt from vendor,
subcontractors, and City registration. Prevailing
wages apply. Include DIR language in contract.
55728.01000\33995632.1
-39-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES APPENDIX B. Quote Documentation Form (Professional & Non-Professional Services/Equipment/ Supplies)
Pursuant to the City’s Purchasing and Contract Guidelines, a contract/agreement/purchase whose value is between $5,000.01 and $40,000.00 requires an informal bid process which consists of three (3) written bids/proposals (wherever possible), approved by the Department Head and/or City Manager. This Quote Documentation Form (QDF) is intended to document a small dollar contract award or purchase during a competitive solicitation for a service to ensure purchases comply with the Purchasing and Contract Guidelines.
The requesting department must attach a completed QDF to the invoice for payment and it must be attached to the agreement or Purchase Order on file.
Section 1: General Information
Department:
Project Manager:
Check One: ☐Professional Services ☐Non-Professional Services ☐Equipment/Supplies Project/Equipment/Supply:
Section 2: Award Recommendation
Non-Professional Services/Equipment/Supplies
Award to lowest bidder.
Award to a vendor other than lowest bidder. Explanation of decision:
Professional Services
Vendor recommended for award:
Explanation of decision:
Section 3: Certification and Authorization
I hereby declare that the above firms have been contacted for quotes/bids/proposals and their replies are exactly as stated.
____________________________________
_______________________ Date
Department Head
____________________________________
Hannah Shin-Heydorn Date
City Manager
55728.01000\33995632.1
-40-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES APPENDIX C. Model Agreement Checklist
Date of Agreement Date approved by the City Council or City Manager.
Complete Name of Business Include DBA, Inc., LLP, LLC, etc.
Type of Business (include state of
incorporation)
Sole proprietorship, Inc., LLP, LLC, etc.
Address of Principal Place of Business Not necessarily street address of local business.
Name of Project Project name and contract number, if
applicable.
Term Project start date and ending date. May include
renewal terms for multi-year agreement.
Name of City’s Contact and Title Name of City’s representative (Department Head).
Name of Company’s Representative and Title Name and title of company representative responsible for project.
Insurance In accordance with Insurance Matrix or
consultation with City Attorney/Risk Manager.
Request Certificates of Insurance, Additional
Insured, Worker’s Comp., etc. from vendor.
Certificates must be on file with City Clerk
before work can begin.
Compensation Total contract amount and rate sheet, if
applicable.
Notices Include company name, mailing address, and
contact name.
Bonds May be required by law or by City under certain
circumstances. If required, must be on file
before work can begin.
Signatures Obtain name/title of signer. Two signatures
required unless sole proprietorship.
Approval Authority Include appropriate approval authority.
Exhibit “A” – Scope of Services Scope of work to be performed.
Exhibit “B” – Schedule of Services Schedule of work, if applicable.
Exhibit “C” – Compensation Include hourly rates and authorized reimbursable expenses. May include CPI
increase for multi-year agreement. May include
bond requirement.
55728.01000\33995632.1
-41-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES APPENDIX D. The Contract Process
Department staff prepares a contract using
the appropriate template
Send the contract to City Attorney for review
(allow for review time of up to 5 business
days)
City Attorney approves as to form
Department staff prepares staff report for City
Council approval (if needed)
Department staff sends City Attorneyapproved contract to the vendor/consultant with signing instructions
Vendor/consultant returns two (2) original
contracts to the City
Department staff prepares signed contracts,
insurance documents (if applicable), and other
documents (if applicable) and routes for
signature based on purchasing authority limits
City Clerk send a copy of the executed
contract to the vendor and file
55728.01000\33995632.1 -42-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES APPENDIX E. Purchasing Authority and Required Procurement Procedures Authorization levels are based on the total/cumulative value of the purchase. For purchases that on the threshold boundary for two different price ranges (e.g., $40,000), the purchase shall be treated as part of the higher price range.
NOTE: All standard contracts include a 10% compensation contingency. This contingency amount needs to be included with the base contract amount to determine the not-to-exceed (NTE) dollar limit for the purposes of determining the appropriate purchasing authority(ies).
Contract A base amount: $36,000
Contingency: $3,600
TOTAL NTE: $39,600
Purchasing Authority: City Manager
Contract B base amount: $37,000
Contingency: $3,700
TOTAL NTE: $40,700
Purchasing Authority: City Council
For Goods and Non-Professional Services
*unless associated with a Capital Improvement Project/Program (in which case a PO is needed) **typically annual/one-time contract for goods
Price Range Required Purchasing Type
(unless otherwise stated) Selection Criteria Purchase Option Required Signatory(ies) <$3,000 Over-the-Counter
Purchasing
Qualified Local Vendor
(whenever possible) Payable Voucher* Dept Head
$3,000 - $5,000 Open-Market Bid
(recommended) Lowest Qualified Quote Purchase Order Dept HeadFinance Director $5,000.01 - $40,000 Open-Market Bid Lowest Qualified Bid Purchase Order Dept Head
Finance Director
City Manager
>$40,000 Competitive Bid -
Not Public Project
Lowest Responsive and
Responsible Bidder Contract** & Purchase Order
Dept Head
City Clerk
City Attorney
Finance Director
City Manager
City Council
55728.01000\33995632.1 -43-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES For Professional Services
Price Range Required Purchasing Type
(unless otherwise stated) Selection Criteria Purchase Option Required Signatory(ies) <$3,000 Over-the-Counter
Purchasing
Qualified Local Vendor
(whenever possible) Payable Voucher* Dept Head
$3,000 - $5,000 Open-Market Bid
(recommended)
Most Qualified
Within Budget Purchase Order Dept Head
Finance Director
$5,000.01 - $40,000 Open-Market Bid Most Qualified
Within Budget Contract & Purchase Order
Dept Head
City Clerk
City Attorney
Finance Director
City Manager
>$40,000 Request for Proposals Most Qualified
Within Budget Contract & Purchase Order
Dept Head
City Clerk
City Attorney
Finance Director
City Manager
City Council
55728.01000\33995632.1 -44-
CITY OF STANTON – PURCHASING AND CONTRACTING GUIDELINES For Public Projects
Price Range Required Purchasing Type
(unless otherwise stated) Selection Criteria Purchase Option Required Signatory(ies) <$60,000 Open-Market Bid
(recommended) Lowest Qualified Bid Contract & Purchase Order Dept Head
City Clerk
City Attorney
Finance Director
City Manager
City Council
$60,000 - $200,000 Open-Market Bid Lowest Qualified Bid Contract & Purchase Order Dept Head
City Clerk
City Attorney
Finance Director
City Manager
City Council
>$200,000 Competitive Bid -
Public Project
Lowest Responsive and
Responsible Bidder Contract & Purchase Order
Dept Head
City Clerk
City Attorney
Finance Director
City Manager
City Council
Table of Contents
i
Purchasing Policy Authority
Authority of Stanton Municipal Code Chapter 2.56 1
Purchasing Officer/Designee Duties
City Manager : Exercise or delegate responsibilities of Purchasing Officer 1
Purchasing Officer assigned duties 1-3
Purchasing Authorization Required
All Purchases 3
Purchase Orders 3
Payable Vouchers 4
Credit Card Purchases 4
Contracts 5
Purchase Orders
Purchase Order Requirements 5
General Purchases & General Contract Competitive
Bid Requirements
Purchases or Contracts in Excess of $20,000 6-7
Purchases or Contracts Less Than $20,000 but in Excess of $3,000 8-9 Purchases or Contracts Less Than $3,000 9
Local Vendor Preference 9-10
Vendors of Gasoline and Diesel Fuel 10
Running/Blanket Purchase Orders 10
Conflict of Interest 11
Unauthorized Purchases 11
General Purchases & General Contracts Not
Requiring Bids
Sole Source 12
Contracts Not Suited to Competitive Bidding 12
Utilities Purchase 12
Court Fees 12
Medicines or Medical Supplies or Services 13
Emergency Condition 13-15
State Procurement Contracts 15
Government Goods and Services 15
Benefits 15
City Owned Concession or Recreation Facility 15
Public Auction and Other Similar Circumstances 15
Attachment: C
Click here to return to the agenda.
Table of Contents
ii
Exchange or Supplies, Material, or Equipment 16
California Correctional Industries Division 16
Certain Purchases 16
Public Projects Contracts and Projects (CPCCUCA)
Definition - Public Projects 16-17
Informal Bid Procedures - Public Projects 17
Formal Bid Procedures - Public Projects 18-19
Bidder’s Security - Public Projects 20
Bid Opening Procedure - Public Projects 20
Tie Bids - Public Projects 20
Options - Public Projects 20-21
Performance Bonds - Public Projects 21
Lowest Responsible Bidder Determination - Public Projects 21-22 Change Orders to Public Projects 22
General Purchases Formal Bid Process
Advertisement of Bid 22-24
Rejection of Bids 24
Negotiation 24-25
Extension of Bids 25
Late Bids 25
Responsible Bidder 25-26
Bidders Bonds 26
Professional and Consultant Selection
Selection of Consultants or Vendors for Professional Services 26-27 Selection of Consultants or Vendors for Professional Services for Continuing Services 27-28
Bilateral Contracts Required 28-29
City Credit Card Usage
Procedure 29-30
Allowable Uses 30-31
Purchasing Recycled Materials or “Green”
Materials
Policy 32
Table of Contents
iii
Disposal of City Property
Policy 32
Record of Fixed Assets
Acquisition of Fixed Asset 33
Inspection of Merchandise Received
Responsibility of Department Head or designee 33
Personal Liability of Officers
Policy 33
Purchasing Policy Overview
Overview Chart 34
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
Purpose:
This policy strives to define decision making with prudent review and internal control procedures and to maintain departmental responsibility and flexibility in evaluating, selecting, and purchasing supplies, equipment, and services in order to provide a process to procure goods and services efficiently and at the lowest cost commensurate with the quantity and quality needed. It also provides monetary limits and clearly defines authority for all facets of purchasing, including the use of credit cards, by City employees. The policy contained herein was developed under the authority of Chapter
2.56 of the Stanton Municipal Code.
The City Manager is designated as the Purchasing Officer for the City and may delegate the administration of the program. The Purchasing Officer/Designee is charged with the responsibility and authority for coordinating and managing the procurement of the City’s supplies, services, and equipment according to this policy.
The policy outlined herein is to be adhered to by the Purchasing Officer/Designee and all City Departments when procuring supplies, services, and equipment.
Duties Assigned:
A. PURCHASING OFFICER/DESIGNEE: Pursuant to Stanton Municipal Code
2.56.020, the City of Stanton City Manager shall be responsible to exercise or delegate the responsibilities of Purchasing Officer. The Purchasing Officer or designee shall issue purchase orders, keep record of all purchase orders, disburse or cause to be disbursed payments for such purchase orders, and oversee the operations of the purchasing function in such a manner as to effectively execute procurement and property acquisition. In addition the Purchasing Officer or designee shall comply with all disposition policies as may be established by the City Council or City Manager.
The Purchasing Officer/Designee is responsible for 1) the procurement of general supplies, services, and equipment; 2) the administration of the purchasing policy; and 3) the management of surplus City property.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
To perform these functions efficiently, and assist departments, the Purchasing Officer/Designee shall:
1. Be charged with the responsibility and authority for coordinating and managing the procurement of the City’s general supplies, services, and equipment from the lowest responsive and responsible bidder when required by law or by this policy.
2. Ensure full and open competition on all purchases as required by this policy.
3. Identify, evaluate, and utilize purchasing methods which best meet the needs of the City (i.e. cooperative purchases, blanket purchase orders, contractual agreements, etc.).
4. Assist all departments with research and recommendations in developing specifications; review specifications for completeness of information to ensure specifications are not unnecessarily restrictive.
5. Coordinate vendor relations, locate sources of supply, and evaluate vendor performance.
6. Certify that all vendors being utilized have a current City business license, and also current W-9 information if applicable, on file with the Administrative Services Department. Exemptions may be granted by the City Manager.
7. Recommend revisions to purchasing procedures when necessary and keep informed of current developments in the field of public purchasing.
8. Prescribe and maintain all forms and records necessary for the efficient operation of the purchasing function.
9. Be charged with the responsibility and authority for coordinating and managing the City's Property and Inventory Control Program.
10. Make purchase award recommendations to the appropriate authority.
11. Act as the City’s agent in the transfer and disposal of surplus equipment and materials with approval by the Administrative Services Director and City Manager.
12. Assist all departments in applying the City’s Local Business Preference Program.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
B. DUTIES DELEGATED: The City Manager may delegate purchasing responsibility, when determined appropriate to any Department Head of the City.
Authorization Required:
1. ALL PURCHASES, ALL SERVICES, AND ALL CONTRACTS, WITH THE EXCEPTION OF PUBLIC WORKS PROJECTS, shall require authorization as follows:
$20,000 or more: Shall be submitted to the City Council for approval. No purchase, service, or contract shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
2. PURCHASE ORDERS shall require authorization and signatures as follows:
AMOUNT AUTHORIZATION / SIGNATURES REQUIRED
All Purchase Orders Purchasing Officer/Designee, City Administrative Services Director, City Manager or their
representative
The Purchasing Officer /Designee signs as the initiator of the purchase order. The City Manager’s or his or her representative’s signature is required for approval of the purchase. The City Administrative Services Director’s, or his or her representative’s signature, shall signify that there are sufficient unencumbered funds in the department’s appropriated budget for the purchase.
PURCHASE ORDER ROUTING: A copy of all purchase orders issued shall be given to the vendor at the time the purchase is made. No purchase shall be made without providing the vendor a copy of the purchase order. The requesting Department Head shall also retain a copy of the purchase order.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
3. PAYABLE VOUCHERS shall require authorization and signatures as follows:
AMOUNT AUTHORIZATION / SIGNATURES REQUIRED
All Payable Vouchers Initiating Department Head or his/her representative $500 or more City Manager
No purchase shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
4. CREDIT CARD PURCHASES shall require authorization and signatures as follows:
AMOUNT AUTHORIZATION / SIGNATURES
REQUIRED
All Credit Card Purchases Initiating Department Head or his/her representative, and the City
Administrative Services Director
$500 or more City Manager
The Initiating Department Head or his/her representative signs as the initiator of the credit card payable voucher. The City Manager’s or his or her representative’s signature is required for approval of the purchase. The City Administrative Services Director’s, or his or her representative’s signature, shall signify that there are sufficient unencumbered funds in the department’s appropriated budget for the purchase and also verifies that the credit card purchase adheres to the Credit Card Usage Policy. No purchase shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
5. CONTRACTS shall require authorization and/or signatures as follows:
AMOUNT AUTHORIZATION / SIGNATURES REQUIRED
All Contracts City Manager’s, City Attorney, and the City Clerk $20,000 or more Shall be submitted to the City Council for approval.
No contract shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
Purchase Orders Required:
A. A Purchase Order is Required:
1. A purchase order shall be used whenever goods and limited services are to be acquired by an outright purchase that is $3,000 or more. No purchase shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
2. A purchase order shall be used for any projects or purchases that are under $3,000 whenever the provider of goods requests that a purchase order be issued.
3. All services shall require a purchase order or professional services agreement due to insurance requirements.
4. A purchase order(s) shall be issued to encumber all purchases and services associated with a Capital Improvement Project that is approved by City Council.
B. The initiating department will be responsible for requesting the purchase order.
The purchase order shall specify the nature of the goods or services to be acquired, the purchase price or estimate thereof, freight charges, prompt payment discounts, the delivery date, the vendor from whom acquired, the department and division for whom the acquisition is being made, the budgetary department and general ledger number where the funding for the proposed purchase has been appropriated, and such other provisions or information as may be appropriate or required. The purchase order shall incorporate by reference all the terms, conditions, and specifications if any, contained in the related request for bids.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
It is the policy of the City that payment for goods or services shall not be made until the goods or services have been delivered. The only exceptions to this policy will be where the payment schedule in a duly authorized contract specifies otherwise, or if online purchases are required to be made by credit card according to guidelines included in this policy, or where specifically authorized by the City Council, City Manager or City Administrative Services Director.
C. Notwithstanding the above conditions, a purchase order shall not be required for purchases of less than $3,000. Such purchases shall be by way of demand for payment voucher as shall be established by the City Administrative Services Director in accordance with accepted accounting standards.
D. Notwithstanding the above conditions, a purchase order shall not be required for the purchase and payment of routine, consistent expenses, such as, but not limited to:
payroll taxes and related expenses, payments on previously approved leases, contract services, utility bills, or similar expenses. Such purchases shall be by way of demand for payment voucher as shall be established by the City Administrative Services Director in accordance with accepted accounting standards.
The demand for payment voucher form will be filled out and signed by the employee assigned the responsibility for these routine expenses and shall be countersigned by the responsible Department Head. The completed demand for payment voucher will then be given to the City Accounts Payable Division of the Administrative Services Department for processing and payment.
Competitive Bid:
All purchases and contracts, whether by sealed bid, quotation, or negotiation, shall be made on a competitive basis to the maximum practical extent except as permitted for Public Projects defined below under the California Uniform Public Construction Cost Accounting Act Provisions.
A. AMOUNTS IN EXCESS OR EQUAL TO $20,000:
1. Except as otherwise provided by ordinance or within this policy and the California Uniform Public Construction Cost Accounting Act Provisions, all purchase orders and other contracts of every kind, involving amounts in excess
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
of $20,000 for personal services, or for the purchase, lease, rental, or sale of personal property, materials, equipment, or supplies, shall be let by formal competitive bidding procedure, after public advertising, to the lowest and/or verifiable most qualified bidder. The Purchasing Officer/Designee shall send out all bids and notices of bids requested based on the information provided by the Department Heads and shall keep a list of the date the bids were mailed and a list of the vendors to whom the bids were mailed. The City Clerk shall receive all bids and keep a list of the time they were received. Whenever practical the bid opening shall be made in the presence of the Department Head and the City Clerk.
2. The request for bids under the Competitive Bid Procedure shall, at a minimum, be posted at City Hall and shall be posted as required by ordinance or published at least once in a newspaper of general circulation if one exists in the City and if applicable, in appropriate trade publications. The date of posting or publication shall be at least ten (10) days before the date of opening of the bids, or the final date for accepting bids. All formal bids shall be sealed and shall be publicly opened and read at the date, time, and place indicated in the published notice.
Specification packages should be made available to interested bidders. The using or requesting Department Head shall determine if a security deposit is necessary. This should be part of the request made to the City Council before initiating the bid process. The requesting Department Head shall also determine if a payment is necessary for a prospective bidder to acquire a specifications package. The use of a bidders’ list shall also be determined by the Requesting Department Head.
3. Bids received at the end of the process shall be reviewed for compliance with specifications by the using or requesting City Department. All deviations from the specifications shall be fully documented by the requesting City Department and the impact of the deviations on the performance or suitability of the bid item shall be detailed. Depending on the findings of the requesting City Department with regard to the deviations, the bid may be rejected (must be in writing), or a recommendation may be made to the City Council. Various recommendations may be made depending on the outcome of the bids, including selecting a vendor, rejecting all the bids, or deciding to modify the bids and re-advertise.
4. No purchase shall be split into parts by any concerned party so as to produce amounts artificially lower than the total purchase price.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
B. AMOUNTS LESS THAN $20,000 BUT IN EXCESS OR EQUAL TO $3,000:
1. All purchase orders and contracts in amount less than $20,000 but in excess or equal to $3,000 shall be let in the open market by obtaining at least three bids wherever possible. The requesting Department shall obtain three verbal or written competitive quotations whenever possible for purchases and keep a record of who was contacted and the price that was quoted. Getting more quotations is encouraged. In the event that three quotes cannot be obtained documentation of the process should indicate why less than three were obtained and should be placed on file with the quotes that were obtained. The Purchasing Officer/Designee may be requested to assist in this process.
2. Documentation requesting quotes under the Open Market Procedure may be posted at City Hall, placed in trade magazines or the newspaper, posted on the City’s official web site, mailed, faxed, or sent by electronic mail (e-mail) to prospective vendors. Adequate time should be allotted to permit a response; typically a minimum of ten calendar days before the due date but less may be acceptable if necessary. In any event the quote deadline should be noted.
Quotes may also be solicited over the phone through a verbal quote; provided that they are documented by the requesting department. Quotes under the Open Market Procedure may also be obtained from consulting current catalogues; internet sites, or advertising flyers.
3. The Requesting Department shall submit a memo, which includes the recommended vendor, with all supporting documentation to the City Manager or Designee. Supporting documentation shall include competitive price quotes obtained, names of vendors contacted, description of the items required, and certificates of insurance as applicable. The City Manager or Designee shall review the recommendation and supporting documentation and may contact additional sources for quotations. The City Manager or Designee may award the purchase to the lowest responsive and responsible vendor whose quote fulfills the intended purpose, quality, and delivery needs of the solicitation, provided that an unencumbered appropriation for that item exists. In lieu of awarding the purchase, the City Manager or Designee may reject quotes or may negotiate further to obtain terms more acceptable to the City. The City Manager or Designee may also determine that the interest of the City is best served to require the Formal Contract Procedures for purchases within this range.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
4. No purchase shall be split into parts by any concerned party so as to produce artificial amounts lower than the total purchase price.
C. PURCHASES LESS THAN $ 3,000: These purchases may be obtained by using purchase orders issued by the City Administrative Services Director to obtain supplies and services which have been approved by the Department Head.
1. The employee making the purchase shall verify that he/she obtained the supplies or services in good condition.
2. Written competitive bids are not required, but the Department Head or her/his designee is encouraged to obtain competitive quotations. For purchases of less than $3,000, the authority to award a purchase contract is the Department Head's. Prudent judgment shall be used at all times.
3. Although purchases of less than three thousand dollars are exempt from many procedures required for higher cost items, every effort to utilize a local business shall be exercised.
D. LOCAL VENDOR PREFERENCE: In evaluating competitive bids or quotes for the purchase of supplies and equipment, any local vendor/bidder, having a valid City Business License and fixed business location within the incorporated City Limits, may receive a two percent (2%) preference off of their bid or quote. This preference shall be applied only when a non-local vendor/bidder has first been determined to be the lowest responsible vendor/bidder but a local vendor/bidder may equal or improve upon the bid if the preference is applied. If upon applying this preference should the local vendor/bidder equal the lowest responsible vendor/bidder, or become the lowest responsible vendor/bidder, the City may select this vendor/bidder even though the actual cost to the City would not be the lowest. In the event that a local and a non local vendor/bidder have the same bid or quote and it is the lowest responsible bid or quote the two percent (2%) preference will be given to the local vendor. In this case the local business shall be selected to receive the purchase award. The local business must still demonstrate that it is a responsible vendor/bidder before being selected for the purchase award. A local vendor preference shall not be granted for contracts involving public works, personal, professional, and consulting services, or as otherwise prohibited by law.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
The Local Vendor Preference may not apply and may be dispensed with when prohibited by State or Federal Statutes, or regulations requiring that a bid or quote be awarded to the lowest responsible bidder or vendor, or as otherwise exempted from local preferences. The Local Vendor Preference will not apply when bids or quotes are done with other public agencies through cooperative purchases.
E. VENDORS OF GASOLINE AND DIESEL FUEL:
1. The City Council recognizes and finds that wholesale vendors of gasoline and diesel fuel are generally unable to quote prices on fuel that are valid for more than one day.
2. As a result of this finding, and in order to obtain needed supplies at the most competitive daily price, price quotes may be obtained by telephone, and an order may be placed providing the purchase procedure set out in Section 3, paragraph C, above, have been followed.
F. RUNNING/BLANKET PURCHASE ORDERS: Purchase orders which allow spending for multiple purchases of the same type from one or more vendors without obtaining current bids or price quotations shall not be allowed except in the following cases:
1. There is only one qualified supplier;
2. The supplier has received the bid award amount approved for purchase by the City.
3. The purchases are for items that are “consumable” supplies or small repair parts for the Public Works Department, when: 1) the departmental budget has an original appropriation for such items; and, 2) the “running or blanket” purchase order has been approved for purchase by the City Manager who shall certify by that approval that such “running” purchasing procedure is in the best interest of the City. Running purchase orders issued under the authority of this section will be issued in accordance with procedures established by the City Administrative Services Director with the approval of the City Manager.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
G. CONFLICT OF INTEREST: Any officer of the City or any department thereof who shall aid or assist a bidder or vendor in securing a contract to furnish supplies, materials, equipment, or contractual services at a higher price than that proposed by any other bidder/vendor, or who shall favor one bidder/vendor over another by giving or withholding information, or who shall willfully mislead any bidder/vendor in regard to the character of the materials or supplies called for, or who shall knowingly accept commodities of a quality inferior to those called for by the contract, or who shall knowingly certify to a greater amount of labor performed than has actually been performed, or to the receipt of a greater amount or different kind of materials or supplies than have actually been received, shall be deemed guilty of malfeasance and the City Manager shall have the authority pursuant to the City of Stanton’s Personnel System Rules and Regulations to take appropriate disciplinary action. Such actions may also result in criminal prosecution.
If at any time it shall be found that the person to whom a contract has been awarded has in presenting any bid(s) or quote(s), colluded with any other party or parties for the purpose of preventing any other bid or quote being made, then the contract so awarded shall be null and void.
It is the intent that this purchasing policy, all procedures and processes discussed herein, and each transaction entered into pursuant to Chapter 2.56 of the Stanton Municipal Code shall be made in accordance with the City's Conflict of Interest Code and all other Federal, State, and local laws.
H. UNAUTHORIZED PURCHASES
Except for urgencies or other authorized exemptions stated in these guidelines, no purchase of supplies, services, or equipment shall be made without authorization as described within this policy or in Chapter 2.56 of the Stanton Municipal Code. Under no circumstances shall a purchase be considered approved or final until approved by the City Council or City Manager as required by the appropriate purchasing classification.
No representative of the City shall enter into a verbal agreement or make any arrangements until the final approval is granted.
In the event that an unauthorized purchase is made the following may apply:
1. Such purchases are void and not considered an obligation of the City.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
2. Invoices without an authorization may be returned to the vendor unpaid.
3. The person ordering the unauthorized purchase may be held personally liable for the costs of the purchase or contract.
Purchase Orders and Contracts Not Requiring Bids:
A. SOLE SOURCE: The restriction contained in this policy requiring bids, shall not apply in cases where purchases or contracts are for items which may only be purchased from a single or sole source manufacturer or distributor and no reasonable similar alternative exists.
B. CONTRACTS NOT SUITED TO COMPETITIVE BIDDING. Contracts which by their nature are not suited to award by competitive bidding shall not be subject to the competitive bidding requirements of this policy. These contracts include:
1. Contracts for items that may only be purchased from a single or sole source or provider.
2. Contracts for additions to and repairs and maintenance of equipment owned by the City which may be more efficiently added to, repaired or maintained by a particular person or firm.
3. Contracts for equipment which, by reason of the training of City personnel or the inventory of replacement parts maintained by the City, is more compatible with the existing equipment owned by the City.
C. UTILITIES PURCHASE: Utility services such as water, electric power, natural gas, telephone and telegraph, except when alternative supplies or services are available.
D. COURT FEES: Witness and jury fees and other payments as may be ordered by the court.
E. MEDICINES OR MEDICAL SUPPLIES OR SERVICES: Medicines or medical supplies or services which are not generic in nature and which would not be available from other sources through competitive bid or negotiation.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
F. EMERGENCY CONDITION: When a public emergency will not tolerate a delay for advertising or the solicitation of bids due to the urgency of the incident, and it is determined by the City Manager or the City Council that the situation meets the definition of an emergency situation which creates a threat to public health, welfare, or safety such as, may arise by reason of flood, epidemics, riots, equipment failures, infrastructure failures, earthquakes, or such other reason as may be declared an emergency by the City Manager or City Council formal bidding may be dispensed with.
The existence of such condition must create an immediate need for materials, services, or construction that cannot be met through normal procurement methods, and the lack of which would seriously threaten the function of City Government, the preservation or protection of public or private property, or the health or safety of any person, and the following will apply:
1. Purchases under this paragraph shall be based on a need that is compelling and of unusual urgency, such as when the City would be seriously injured financially or otherwise if the personal property or services were not furnished by a certain time, and when they could not be procured by that time by means of advertising, bidding and or solicitations of quotations as previously provided.
2. Emergency procurement shall be limited to those supplies, services, or construction necessary to meet the emergency whenever practical; approval by the City Council shall be obtained.
3. The department for whom the emergency purchases are made shall, as soon as practical, file a written report with the City Manager, which shall contain the following information:
a. The conditions which created the emergency and a description of the threat to the health, welfare or safety of the public pursuant to finding that an emergency exists;
b. The basis for the selection of the particular contractor or supplier and a description of what efforts were utilized to identify and contact alternative suppliers or contractors;
c. The contractor’s or supplier’s name and address, along with a list of the supplies, materials, services or construction procured under the contract.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
d. Completed and signed purchase orders with attached invoices requesting payment for the emergency purchases.
4. The City Manager shall review the report submitted and, if appropriate, shall declare the condition an emergency and shall approve the report and requisitions and authorize the payment of the emergency purchases. a. The City Manager is empowered to declare a state of emergency when, in her/his opinion, such condition(s), as set out above exist(s), and, when the amount to be expended to meet such emergency does not exceed $25,000 unless it is in the case of a regional disaster. b. Where the City Manager finds and declares an emergency, under paragraph 4a, above, the City Manager, in conjunction with the department for whom the emergency purchases are made, shall, as soon as practical, file a written report with the Mayor and City Council which shall contain the following information:
(1) The conditions which created the emergency and a description of the threat to the health, welfare or safety of the public pursuant to finding that an emergency exists;
(2) The basis for the selection of the particular contractor or supplier and a description of what efforts were utilized to identify and contact alternative suppliers or contractors;
(3) The contractor’s or supplier’s name and address, along with a list of the supplies, materials, services or construction procured under the contract.
(4) Completed signed purchase orders with attached invoices requesting payment for the emergency purchases.
The City Council shall review the report submitted, and if appropriate,
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
shall ratify the City Manager’s declaration of the condition an emergency, and shall approve the report and requisitions and authorize the payment of the emergency purchases.
G. STATE PROCUREMENT CONTRACTS:
1. Purchases, which are made from vendors who are under State of California Procurement contract, and when the price is that price (or a lower price than that) established by the contract awarded by the State after competitive bidding pursuant to the California Procurement Code.
2. Purchases which are made from vendors who, within the past sixty (60) days, have been under State of California procurement contract, and when the price offered is the price established by the former contract awarded by the State after competitive bidding pursuant to the California Procurement Code or less.
H. GOVERNMENT GOODS AND SERVICES: For goods and services made available by any federal, state or local unit of government, or association of government, when those goods or services were acquired in compliance with the provisions of this resolution.
I. FRINGE BENENFITS: Purchases of services or benefits that are part of any personnel fringe benefit agreements that are authorized by the City Council may be negotiated between the City and the service or benefit vendor.
J. CITY OWNED CONCESSION OR RECREATION FACILITY: Notwithstanding the provisions of Section 9, below, purchases or contracts for supplies, materials or inventory to be used for resale at any City-owned and or operated concession or recreation facility.
K. PUBLIC AUCTION AND OTHER SIMILAR CIRCUMSTANCES: Supplies, materials or equipment which can be purchased at any public auction, closeout sale, bankruptcy sale or other similar sale, and it is found that a purchase at any such auction or sale may be made at a cost below the market cost in the community.
L. EXCHANGE OF SUPPLIES, MATERIAL, OR EQUIPMENT: Exchanges of supplies, material or equipment between the City and any other entity, which are not by sale or auction.
M. CALIFORNIA CORRECTIONAL INDUSTRIES DIVISION: Supplies, material or
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
equipment produced by the California Correctional Industries Division.
N. CERTAIN PURCHASES: Certain purchases are not readily adaptable to the open market and formal bidding process. These purchases are generally for items where the competitive bid process or obtaining quotes is not applicable or where a check is required to accompany the order. Following is a list of allowable exemptions:
• Advertisements and Notices
• Courier/Delivery/Messenger
• Dept. Purchases under $3,000
• Emergency Fuel Purchases
• Insurance Claims and Premiums
• Medical Payments (Physicians, lab)
• Membership Dues
• Payments to Other Governmental Units
• Petty Cash Replenishment
• Property Rentals
• Real Property/Easement Acquisition
• Subscriptions
• Trade Circulars or Books
• Travel Expense/Advances
California Public Projects Contracts Code Uniform Cost Accounting Provisions for Advertisement, Rejection and Extension of Bids:
A. PUBLIC PROJECTS—DEFINITIONS.
1. General. Contracts for public projects as defined in the California Public Contracts Code shall be in writing and awarded by the City Council to the lowest responsible and responsive bidder, except as otherwise provided herein.
2. “Public project” is generally defined as:
• Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
operated facility.
• Painting or repainting of any publicly owned, leased, or operated facility. • In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, power plants, and electrical transmission lines of 230,000 volts and higher.
3. “Public project” does not include maintenance work. For purposes of this section, “maintenance work” is generally defined as:
• Routine, recurring, and usual work for the preservation or protection of any City owned or publicly operated facility for its intended purposes. • Minor repainting.
• Resurfacing of streets and highways at less than one inch. • Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems.
• Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.
4. “Facility” is generally defined as any plant, building, structure, ground facility, utility system, real property, streets and highways, or other public work improvement.
B. INFORMAL BID PROCEDURES – PUBLIC PROJECTS SUBJECT TO THE
CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT
1. 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.
2. 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 Public Contracts Code Section 22034, and to all construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified when soliciting bids; provided however:
3. 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 California Uniform Construction Cost Accounting Commission.
4. 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.
C. FORMAL BID PROCEDURES FOR PUBLIC PROJECTS SUBJECT TO THE CALIFORNIA UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT;
NOTICE INVITING BIDS
1. The City Council shall authorize issuance of notices inviting formal bids which shall include a general description of the public project to be constructed, shall state where bid forms and specifications may be secured, and the time and place for opening bids.
2. Notices inviting bids published and posted at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation in Orange County as provided for in California Public Contracts Code Section 22037. Also, it shall be posted in at least one location in the City at either City Hall or the Library.
3. The City Council may require a bid to include prices for items that may be added to, or deducted from, the scope of work in the contract for which the bid is being submitted. Whenever additive or deductive items are included in a bid, the bid solicitation shall specify which one of the following methods will be used to determine the lowest bid. In the absence of a specification, only the method provided by subdivision a. will be used.
a. The lowest bid shall be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items. b. The lowest bid shall be the lowest total of the bid prices on the
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price.
c. The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the City before the first bid is opened.
d. The lowest bid shall be determined in a manner that prevents any information that would identify any of the bidders or proposed subcontractors or suppliers from being revealed to the public entity before the ranking of all bidders from lowest to highest has been determined.
4. A responsible bidder who submitted the lowest bid as determined by this section shall be awarded the contract, if it is awarded. This section does not preclude the City from adding to or deducting from the contract any of the additive or deductive items after the lowest responsible bidder has been determined.
5. Nothing in this section shall preclude the prequalification of general contractors or subcontractors.
6. The City Council shall also solicit sealed bids from all responsible prospective bidders whose names are on the bidders' list or who have made written request that their names be added thereto.
7. The City Council shall also advertise bids by a notice posted at a publicly accessible location at City offices. Such posting places can include, but shall not be limited to, electronically accessible locations such as the City’s web site or by other means that reasonably allow prospective bidders to be notified of pending purchases.
D. BIDDER’S SECURITY – PUBLIC PROJECTS
When deemed necessary, bidder's security may be prescribed in the formal or informal notices inviting bids. Bidders shall be entitled to return of bid security; provided, however, that a successful bidder shall forfeit his bid security upon his
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
refusal or failure to execute the contract within ten days after the notice of award of contract. The City Council may, at its option, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible and responsive bidder, and if the City Council awards the contract to the next lowest bidder, the amount of the lowest bidder's security shall be applied by the City to the contract price differential between the lowest bid and the second lowest bid, subtracting actual administrative costs, and any surplus, if any, shall be returned to the defaulted bidder.
E. BID OPENING PROCEDURE – PUBLIC PROJECTS
Sealed bids shall be submitted to the City and shall be identified as "bids" on the envelope. Bids shall be opened in public at the time and place stated in the bid notices by the City Clerk, Purchasing Authority, or their authorized representatives. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.
F. TIE BIDS – PUBLIC PROJECTS
If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay for readvertising for bids, the City Council may, in its discretion, accept the bid it chooses or accept the lowest bid made by and after negotiations with the tie bidders.
G. WAIVER OF IRREGULARITY, REJECTION OF BIDS; FAILURE TO RECEIVE BIDS; OPTIONS ON PUBLIC PROJECTS
1. At its discretion, the City Council may waive any irregularity in any bid received and award the contract
2. At its discretion, the City Council may reject all bids presented. If the City Council, prior to rejecting all bids, declares that the project can be more economically performed by City employees and furnishes a written notice to an apparent low bidder mailed at least two (2) business days prior to the public
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
meeting at which the City intends to reject the bid, the City Council may:
a. Abandon the project or readvertise for bids.
b. By a four-fifths vote declare by resolution that the project can be performed more economically by City employees, and order the project done by force account.
c. If no bids are received, the project may be performed by the City employees by force account or by negotiated contract entered into without need for further bidding.
H. PERFORMANCE BONDS – PUBLIC PROJECTS
The City Council shall have authority to require a performance bond before entering a contract in such amount as it finds reasonably necessary to protect the best interests of the City. If the City Council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
I. LOWEST RESPONSIBLE BIDDER DETERMINATION – PUBLIC PROJECTS In determining the "lowest responsible bidder," the following factors may be considered in addition to price:
1. The ability, capacity and skill of the bidder to perform the contract or provide the service required;
2. The character, integrity, reputation, judgment, experience and efficiency demonstrated in previous contracts or services for the City or other contracting parties;
3. The quality of performance demonstrated in previous contracts or services for the City or other contracting parties;
4. The previous and existing compliance by the bidder with the laws and ordinances relating to a contract or service;
5. The sufficiency of the financial resources and ability of the bidder to perform the contract or provide the services;
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
6. The ability of the bidder to provide future maintenance and service for the use of the subject of the contract.
J. CHANGE ORDERS TO PUBLIC PROJECTS
The City Manager is delegated authority to approve, without seeking new bids, contract change orders to public projects up to the combined amounts funded for construction or purchase and for contingency as established in the project authorization.
Non Public Projects Contracts Provisions for Advertisement, Rejection and Extension of Bids:
A. ADVERTISEMENT OF BID:
1. The Department Head shall provide the City Clerk with an appropriate advertisement or description of the item to be advertised so that the City Clerk may formulate a bid advertisement. The City Clerk shall then, with the concurrence of the City Manager, place the advertisement in a newspaper of general circulation within Orange County. Also it will be posted in at least one location in the City at either City Hall or the Library.
2. Contracts shall be awarded by competitive sealed bidding, except as otherwise provided herein.
3. An invitation for bids shall be issued when a contract is to be awarded by competitive sealed bidding. The invitation shall include a purchase description and all contractual terms and conditions applicable to the procurement.
4. Public notice of the invitation for bids shall be given a reasonable time prior to the date set forth therein for the opening of bids. The notice may include publication in a newspaper of general circulation within the City or County a reasonable time prior to bid opening.
“Reasonable Time” for purposes of this part, means that a notice of an invitation for bids shall, prior to the acceptance of a bid, be published at least six days before bid opening in one or more newspapers of general circulation within the City.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
5. Bids shall be opened publicly at City Hall, or other place designated in the invitation for bids if use of the City Hall is not available or impracticable at the time of the bid opening, in the presence of one or more witnesses, including whenever practicable the City Clerk, City Administrative Services Director, and the appropriate Department Head at the time designated in the invitation.
6. The amount of each bid and any other relevant information specified in the bid notice, together with the name of each bidder, shall be recorded by the City Clerk at the time the bids are opened. The record and each bid shall be open to public inspection.
7. Bids shall be unconditionally accepted without alteration or correction, except as authorized in this Policy.
8. Bids shall be evaluated based on the requirements set forth in the invitation for bids, which may include criteria to determine acceptability such as inspection, testing, quality, workmanship, delivery, and suitability for a particular purpose.
Those criteria that will affect the bid price and will be considered in evaluation for award shall be objectively measurable. The criteria may include discounts, transportation costs, and total or life cycle cost. No criteria may be used in bid evaluation that is not set forth in the invitation for bids.
9. Correction or withdrawal of inadvertently erroneous bids before or after award, or cancellation of awards or contracts based on such bid mistakes, shall be permitted in accordance with rules and regulations set out in the bid notice.
10. After bid opening no changes in bid prices or other provisions of bids prejudicial to the interest of the City or fair competition shall be permitted. Except as otherwise provided by this Policy or rules and regulations set out in the bid notice, all decisions to permit the correction or withdrawal of bids or to cancel awards or contracts based on bid mistakes shall be supported by a written determination made by the City Manager or City Council, depending on the value of the bid received, and in accordance with the provisions of Section 3, C, above.
11. The contract shall be awarded with reasonable promptness by written notice to the lowest responsive and responsible bidder whose bid meets the requirements and criteria set forth in the invitation for bids. In the event all bids for a project exceed available funds as certified by the City Administrative Services Director or City Manager and the low responsive and responsible bid does not exceed
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
such funds by more than 10%, the City Manager is authorized, in situations where time or economic considerations preclude resolicitation of work of a reduced scope, to negotiate an adjustment of the bid price, including changes in the bid requirements, with the low responsive and responsible bidder, in order to bring the bid within the amount of available funds.
12. When it is considered impractical to prepare initially a purchase description to support an award based on price, an invitation for bids may be issued requesting the submission of unpriced offers to be followed by an invitation for bids limited to those bidders whose offers have been qualified under the criteria set forth in the first solicitation.
B. REJECTION OF BIDS:
1. An invitation for bids, a request for proposals, or other solicitation may be canceled, or any or all bids or proposals may be rejected, in whole or in part, as may be specified in the solicitation, when it is in the best interests of the City in accordance with rules and regulations as set out in the bid notice or invitation.
The reasons for such rejections shall be made part of the contract or bid file.
2. Bids may be rejected when the City Council, with the advice of the City Manager and such technical department personnel as the City Manager may determine appropriate, determines that bid prices, after advertising once for all competitive bids, are not reasonable (either as to all or as to some part of the requirement), exceed the estimated project cost of a public improvement project by an amount that is unacceptable, or have not been independently arrived at in open competition, provided that no negotiated purchase or contract may be entered into under this paragraph after the rejection of all of the bids received unless the stipulations below are met:
a. NOTIFICATION TO NEGOTIATE: Notification of the intention to negotiate and reasonable opportunity to negotiate shall have been given to each responsible bidder whose bid conformed to the invitation for bids; and, b. NEGOTIATED PRICE: The negotiated price is the lowest negotiated price offered by a reasonable supplier; and provided further, that the City Manager may, at her/his discretion, elect to re-advertise for bids with approval of the City Council.
C. EXTENSION OF BIDS: The City Manager may extend the time for opening of
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
bids, if in her/his opinion it is in the public interest to do so. Notice of the extension shall be given to all prospective bidders by the City Clerk in such manner as is most practical under the circumstances. Such extension shall not exceed ten working days.
No extension may be granted for the purpose of qualifying a bid that was delivered after the time advertised for the original opening.
D. LATE BIDS: No bids shall be received or accepted at any time subsequent to the time indicated in the announcement. Any bids delivered by mail, or any other means, subsequent to the appointed time shall not be opened.
E. RESPONSIBLE BIDDER: The City shall award contracts which are required to be let by competitive bidding under this policy to the lowest responsible bidder. The City may reject any low bid and accept the next lowest bid if the City determines that the low bid was made by a bidder who is not responsible. • The City may consider any or all of the following when determining whether a bidder is responsible:
• Whether the bid fully complies with the invitation for bids; • The bidder’s financial responsibility;
• The bidder’s references;
• Whether the bidder has the skill and business judgment to complete the contract; • The bidder’s experience;
• Whether the bidder has the facilities and equipment to complete the contract; • The bidder’s conduct under other contracts, regardless of whether the contracts were with the City or with other parties;
• The quality of the bidder’s other work, regardless of whether the work was performed for the City or for other parties; and
• Any other matter that might have bearing on the likelihood that the bidder will promptly and efficiently perform the contract, if it is awarded to the bidder can be considered.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
If the City determines that the low bidder does not meet the criteria of a responsible bidder as defined above, the City shall notify the bidder in writing that it is rejecting the bidder’s bid. The notice shall also contain a short description of the reasons for the rejection.
Bonds of Bidders May be Required:
Bidders may be required to supply deposits of good faith, or bonds with sufficient sureties, in such amounts as shall be deemed adequate and approved by the City Manager or City Council, as set out in the bid notice, not only to insure performance of the contract or purchase order in the time and manner prescribed, but also to save, indemnify, and hold the City harmless against losses, damages, claims, liabilities, judgments, costs, and expenses which may accrue in consequences of the granting of the contract or purchase orders.
Before any contract for the construction, alteration or repair of any public building, public work or public improvement of City of Stanton is awarded to any person, that person shall furnish to Stanton such bonds as are required by the California Public Contracts Code or other applicable law.
Professional Services - Consultant Selection:
A. Selection of Consultants or Vendors for Professional Services (General)
1. The appropriate Department Head, with the approval of the City Manager, shall prepare a scope of work or services consistent with budget and project authorization of the City Council. The Request for Proposal (RFP) shall outline the City requirements and project description, services to be performed, specific identification of what is to be accomplished or provided, as well as the due date for submittal. The list of solicited firms will be drawn from firms who, in the opinion of the Department Head, can perform the work. A Request for Qualifications (RFQ) may first be necessary if the required services are particularly specialized or if the qualifications of the available consultants are unknown. The list of solicited firms may be limited to between 3 to 5 due to time constraints or specialties involved.
2. The initial review of proposals shall be conducted by the involved Department
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
Head(s) who shall make a recommendation to the City Manager regarding which consultants should be invited to interviews. Interviews (contracts less than $20,000) will be conducted by the appropriate department staff members.
3. Qualifications should be the determining factor in the selection of a professional consultant. Staff shall then negotiate the final fee based upon the agreed scope of work.
4. Prior to approval of a contract, the Department Head of the requesting or using Department shall conduct appropriate background and reference checks and ensure that adequate bonding or security, if required, is posted.
5. Consultants shall comply with all regulations and laws dealing with conflict of interest disclosure and reporting. Consultants shall not be engaged if a conflict of interest exists.
B. Selection of Consultants for Professional Services for Continuing Services:
The following shall apply to the selection or professional services which are needed on a continuous or project by project basis:
1. Professional firms providing engineering, plan checking, land surveying, transit, planning, environmental, economic development, legal, auditing, landscape architecture, or other services may be retained on a continuing basis to provide professional services. The City Department Head, with the approval of the City Manager, may contract on a project-by-project or on a retainer basis for additional work/services without going through the RFP and selection process.
At least every three years these arrangements shall be reviewed and every effort shall be made to receive proposals from at least three consultants to perform the same services. This is to ensure the City is receiving the best value and there is no stoppage in the provision of these services.
2. Beginning each fiscal year, the Purchasing Officer/Designee shall make a written request to each City Department Head to submit to the City Manager a list of consultants currently under contract by their department, setting forth name of firms, type of services, cost of contracts, length of contracts and date entered into, and the number of years retained by the City.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
3. Exclusions
a. The process of selecting environmental impact report consultants for non City projects shall be conducted by the Director of Community Development and Redevelopment due to time restraints and application processing requirements. The final consultant selection and fee shall be reviewed and approved by the City Manager.
b. City Council shall also review and approve each bond issue in concept with approval for the selection of certain professional consultants, as needed, to be selected by the Administrative Services Director, as approved by the City Manager.
Bilateral Contracts Required:
A. A bilateral contract signed by both parties is required:
1. Whenever personal property is acquired by means of lease, rental, or installment purchase.
2. Whenever personal or professional services are required by the City except where the services are to be performed at the vendor’s place of business or where the services are for non-repetitive repairs or maintenance and where a purchase order has been bid or negotiated to cover said services;
3. Whenever consultant services are to be acquired;
4. Whenever real estate or any interest therein is to be acquired except:
a. When acquired pursuant to the power of eminent domain and entry of a decree by a court;
b. When acquired as a result of the filings and recording of a map or plat as required by California Code;
c. When real estate is donated or dedicated to the City
5. Whenever the requesting office, department, agency or City Council shall so
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
specify;
6. Whenever the vendor requires that a contract other than a purchase order be signed by City of Stanton; and,
7. Whenever intergovernmental, interagency and service provider agreements require participation by the City involving funding, performance, or assumption of liability or risk in any form.
Credit Card Usage:
A. Under certain circumstances, the use of a City issued credit card may be the most appropriate method for certain purchases. The use of a City bank credit card should be used as a last resort and not be used to circumvent the Accounts Payable cycle or the Business License Ordinance. The following policies and procedures are established to insure internal control and timely payment of charges.
Unless otherwise designated by the City Manager, the Administrative Services Department is the administrator of the Credit Card Program and responsible for evaluating the request for use of the City Credit Card and determining if the request is within the guidelines of this policy.
PROCEDURE:
1. Bank, office supply store, gasoline, and hardware store credit cards will be signed out on an as-needed basis to staff at the sole discretion of the City Manager or Administrative Services Director, in accordance with internal control procedures. Failure to comply with established procedures may result in discontinuance of use by the employee/department.
2. The Administrative Services Director will determine if the request falls within the guidelines and purpose of this policy. The Department will prepare a blue Credit Card Accounts Payable Voucher and the Department Head will sign prior to issuing of the credit card. This is to ensure that the bank card is used appropriately and that all purchases are within approved dollar limits and in compliance with this policy.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
3. All employees using the City credit card will ensure the security of the credit card while in his/her possession. If lost or stolen, the employee shall immediately notify the Administrative Services Department.
ALLOWABLE USES: City credit cards may be available to the City Employees for the conduct of official City business and City purchases, included, but not limited to the following purposes:
• Gasoline purchases for City vehicles.
• Authorized travel expenses, hotel, training, airfare and conference expenses. • Items that require a credit card to purchase and that are less than $1,000.
No purchase shall be split into parts by any concerned party so as to produce artificial amounts lower than the total purchase price. • Monthly on-going expenses that do not change in price for which the City has a contract.
• Computer equipment from a current vendor in which government pricing has been established.
• Grant funded items for the Sheriff Department’s special requests. • Online purchases where it is deemed by the Administrative Services Director to be a sole source provider or is the lowest priced supplier. These types of purchases shall not exceed $5,000.
• Supplies/Equipment for special requests with the Administrative Services Director and the City Manager’s approval.
• Vendors that require the service or purchase to be made by credit card.
These circumstances will be verified by the Administrative Services Director or his/her appointed designee.
• Other circumstances where the use of a credit card best meets the City’s purchasing needs as determined by the City Manager or Administrative
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
Services Director or his/her appointed designees.
According to Internal Revenue Service (IRS) tax reporting requirements, except for Urgency Purchases, a City credit card may not be used to purchase services provided by vendors who are doing business as partnerships or sole proprietors. Examples of this include, but are not limited to:
• Labor charges for auto repair
• Plumbers
• Construction contractors
B. City bank, gasoline, and telephone credit cards may be signed out from the Administrative Services Director by an employee authorized to purchase items.
Once the purchase is complete, the credit card shall be returned. The following rules shall be adhered to when making a purchase using a City credit card:
1. All purchases and payments made by City credit cards must be properly budgeted or otherwise approved by Council action before the purchase or payment is made.
2. All purchase and payments made by City credit card must result in a receipt or other sales acknowledgement. These must be signed legibly by the purchaser and approved by the appropriate Department Head.
3. Signed receipts and sales acknowledgements must be forwarded to the Administrative Service Department as soon as possible.
No personal items shall be charged on any City credit card. Under no circumstances shall a single personal charge be made on a City credit card.
Purchasing Recycled Materials or “Green” Products:
It is the policy of the City to conserve and protect natural resources. The maintenance of a quality environment for the citizens of the City is an ongoing endeavor. In light of these statements, it is the policy of the City to encourage the use of recycled goods and “green” materials whenever possible, where fitness and quality being equal and cost no more than equal, to that of non-recycled or “non-green” products.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
Disposal of City Property:
A. Department Heads shall petition the City Manager and City Council to declare property surplus, obsolete or unusable.
Any property thus classified with resale value shall be advertised for sale by the City Clerk.
Property not deemed to have any resale value shall be disposed of by the Department Head in the manner deemed to be in the best interest of the public and approved by the City Manager.
Department Head shall provide the City Administrative Services Director with a list of all such property disposed of so that they may be removed from the list of City assets.
The City may refuse any or all bids on items offered for sale.
The City may make a finding that a use or disposition of certain City property provides for the safety, health, prosperity, moral well-being, peace, order, comfort, or convenience of the inhabitants of the City, in which case the City Council may authorize purchase, receipt, holding, selling, leasing, conveying, and other disposition of real and personal property for the benefit of the City, whether the property is within or without the City’s corporate boundaries, and under the terms of such a finding is not obligated to sell such property at bid but may improve, protect, and do any other thing in relation to this property that an individual could do.
Record of Fixed Assets:
Whenever payment is made for acquisition of a fixed asset and whenever acquisition costs of said asset is $5,000 or more the City Administrative Services Director or their Designee shall forthwith enter a record of said acquisition upon the inventory records of the City and the Purchasing Officer/Designee shall cause a property sticker to be placed upon said asset.
CITY OF STANTON
ADMINISTRATIVE POLICY
Number
IV-4-12
Date
3/15/18
SUBJECT:
PURCHASING POLICY AND PROCEDURES
Authority
City Council
Administrator
Administrative Services
Inspection of Merchandise Received:
A. It shall be the responsibility of the Department Head or his designees to immediately inspect all material, supplies, equipment, and personal property of any nature purchased pursuant to this ordinance immediately upon delivery from the vendor and prior to the acceptance of the delivery.
B. The signature of the individual(s) conducting the inspection shall be required on all invoices to designate that they have inspected and received the merchandise listed on said invoice.
Damaged property or items not specified on the purchase order shall not be accepted, and the non-conforming nature of the goods, together with the reason for rejection thereof, shall be noted in writing upon the delivery receipt.
Personal Liability of Officers
A. No officer or employee of the City shall make any expenditure or encumbrance in excess of the total appropriation remaining (excluding salaries and benefits) for any department.
All purchases or all encumbrances on behalf of the City shall be made or incurred only upon any order or approval of the persons duly authorized to act on behalf of the City in such capacity.
Over-the Counter
Open Market Bid
Includes supplies, equipment, operating
or maintenance services
Competitive Bid
Open Market Bid
Competitive Bid
Construction, renovation, improvement,
demolition, and repair work involving public
operated facility
Open Market Bid
Com
Competitive Bid
Professional Services (General)
GENERAL
PURCHASES
PUBLIC
PROJECTS
CONSULTANT
SERVICES
Type Category Features
< $3,000
>$3,000
<$20,000
No specific requirements; open market bidding
to be used whenever practical.
Purchase Order NOT required Department Director Approval
Department solicits at least 3 proposals;
(May be documented verbal or written quotes)
Purchase Order Required City Manager Approval
<$175,000
>$175,000
Department solicits at least 3 proposals;
(May be documented verbal or written quotes)
Purchase Order Required City Council Approval Department solicits at least 3 proposals; Purchase Order Required Department Head & City Manager Approval Signatures Required: City Manager, City Attorney, City Clerk
<$20,000
>$20,000
Competitive Bid (unless exempted by policy) Purchase Order Required City Council Approval > $20,000
Competitive Bid (unless exempted by policy) Purchase Order Required City Council Approval Competitive Bid (unless exempted by policy) Purchase Order Required City Council Approval Signatures Required: City Manager, City Attorney, City Clerk
1 CITY OF STANTON
REPORT TO CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: January 10, 2023
SUBJECT: MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS AS
REPRESENTATIVES TO VARIOUS BOARDS, COMMISSIONS,
COMMITTEES AND AGENCIES
REPORT IN BRIEF:
Traditionally, Council Members have been appointed by the Mayor to serve on numerous outside committees, boards, commissions and agencies. Each appointee is responsible for representing the City and voting on behalf of the City Council. The Mayor conducts a review and selects appointees, as detailed in Attachment A, with the exception of the Orange County Fire Authority (“OCFA”) appointment, which is required to be made by City Council Resolution, the Mayor may otherwise make appointments to each committee, board, commission or agency by nomination and Minute Order confirmation. In addition, the Fair Political Practices Commission (“FPPC”) regulations require the adoption and posting of Form 806, Agency Report of Public Official Appointments, in order for individual Council Members to participate in a City Council vote that would result in him or her serving in a position that provides compensation of $250 or more in any 12-month period.
RECOMMENDED ACTION:
1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and
2. City Council discuss and confirm the Mayor’s appointments; and
3. Approve Fair Political Practices Commission Form 806 and authorize the City Clerk to post the form on the City’s website.
Item: 9B
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2 BACKGROUND:
At the first meeting of the year, the Mayor traditionally reviews the list of Council Members designated on the submitted Mayor’s Appointments list. Historically, at the first meeting of the year, the City Council has confirmed the existing memberships through reappointments or made new appointments, and has also added or deleted board, commission, committee, and agency memberships, as appropriate. Based on changes to the FPPC Regulation 18705.5 (Materiality Standard: Economic Interest in Personal Finances) a public official may participate in a Council vote that would result in him or her serving in a position that provides compensation in the form of stipends, reimbursement or direct payment of $250 or more in any 12-month period. The revised regulation specifies, however, that the body making such an appointment(s) must adopt and post a list of the appointments on its website as required by the FPPC.
ANALYSIS/JUSTIFICATION:
The “Mayor’s Appointments of Council Members as Representatives to Various Agencies List” (Attachment A) documents the various committees and boards to which the Mayor proposes to appoint Council Members. In previous years, the Mayor has reviewed the list prior to the first meeting of the new year, and any changes, additions, or deletions to any of the appointments are made by Minute Order.
FISCAL IMPACT:
There is minimal fiscal impact associated with the recommended action.
ENVIRONMENTAL IMPACT:
This item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).
LEGAL REVIEW:
None.
3 PUBLIC NOTIFICATION:
Through the regular agenda process.
STRATEGIC PLAN OBJECTIVE ADDRESSED:
6. Maintain and Promote a Responsive, High Quality and Transparent Government Prepared by: Patricia A. Vazquez, City Clerk
Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
Attachments:
A. Draft Mayor’s Appointments of Council Members as Representatives to Various Agencies List
B. Draft FPPC Form 806
(Scheduled for review by the City Council on January 10, 2023) City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov | 1 MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS
AS REPRESENTATIVES TO VARIOUS AGENCIES
City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov Council Committees
Economic Development Committee David J. Shawver Carol Warren Contractual Services Carol Warren Gary Taylor
CR&R Contract Review Sub-Committee David J. Shawver Hong Alyce Van Stanton Non-Profit Liaisons
Non-Profit Liaison Alternate
Stanton Collaborative Hong Alyce Van Donald Torres
Stanton Community Foundation Hong Alyce Van Donald Torres Boys and Girls Club Carol Warren Hong Alyce Van
Lions Club Hong Alyce Van Carol Warren
JPA and/or Membership Organizations
League of California Cities David J. Shawver N/A
Association of California Cities – Orange County David J. Shawver N/A Southern California Association of Governments (SCAG) David J. Shawver Carol Warren Public Cable Television Authority (PCTA) David J. Shawver Carol Warren Santa Ana River Flood Protection Agency Donald Torres Gary Taylor California Joint Powers Insurance Authority Gary Taylor Carol Warren Orange County Housing Finance Trust Carol Warren Hong Alyce Van Regional Military Affairs Committee JFTB Donald Torres Gary Taylor Representatives to Joint Governmental Committees
Agency Delegate Alternate, if applicable
Bridges at Kraemer Place Emergency Shelter Advisory Board Donald Torres N/A Orange County Emergency Management Organization
(OCEMO) Executive Committee
Gary Taylor Carol Warren
Orange County Library Advisory Board Hong Alyce Van Gary Taylor Orange County Sanitation District David J. Shawver Carol Warren Orange County Mosquito and Vector Control District Trustee Gary Taylor N/A Orange County Fire Authority1 (OCFA) David J. Shawver N/A 1 OCFA requires appointment by resolution (Resolution No. 2012-02) Attachment: A
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City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov | 1 MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS
AS REPRESENTATIVES TO VARIOUS AGENCIES
Meeting Information
City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov Council Committees Days / Frequency Time Location
Economic Development Committee As determined by staff As Scheduled City Hall Contractual Services Committee As determined by staff As Scheduled City Hall CR&R Contract Review Sub-Committee As determined by staff As Scheduled City Hall Stanton Non-Profit Liaisons Days / Frequency Time Location Stanton Collaborative 4th Monday / Monthly 12:30 PM Community Services Stanton Community Foundation 2nd Monday / Monthly 6:30 PM Stanton Central Park Boys and Girls Club 3rd Thursday / Monthly 7:30 AM 11050 Cedar Street Stanton Lions Club 2nd & 4th Thursday / Monthly 12:00 PM Varied JPA and/or Membership Organizations Days / Frequency Time Location League of California Cities Annual Conference
Various Events / Meetings
As Scheduled Varied
Association of California Cities – Orange County Annual Conference Various Events / Meetings
As Scheduled Varied
Southern California Association of Governments
(SCAG)
Annual Conference
Various Events / Meetings
As Scheduled Varied
Public Cable Television Authority (PCTA) 3rd Monday / Monthly 9:00 AM Harry Dotson Park Santa Ana River Flood Protection Agency 4th Thursday in June &
3rd Thursday in November /
Semi-Annually
4:00 PM Zoom
(Electronically)
California Joint Powers Insurance Authority July / Annually As Scheduled Varied Orange County Housing Finance Trust 3rd Wednesday / Bi-Monthly 10:00 AM County Administration South, Multi-Purpose
Room 601 N. Ross St., 1st
Floor, Santa Ana, 92701
Regional Military Affairs Committee JFTB 4th Monday / Monthly 3:30 PM Joint Forces Training Base, Military Veterans
Resource Center,
Building 244, 11206
Lexington Dr., Los
Alamitos, 90720
City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov | 2 MAYOR’S APPOINTMENTS OF COUNCIL MEMBERS
AS REPRESENTATIVES TO VARIOUS AGENCIES
Meeting Information
City of Stanton | 7800 Katella Avenue, Stanton, CA 90680 | www.stantonca.gov Representatives to Joint Governmental
Committees
Days / Frequency Time Location
Bridges at Kraemer Place Emergency Shelter
Advisory Board
Minimum of 2 Meetings /
Bi-Annually
(As scheduled by the OCCEO)
9:00 AM Varied
Orange County Emergency Management
Organization (OCEMO) Executive Committee
2nd Friday / Quarterly 1:30 PM Zoom
(Electronically)
Orange County Library Advisory Board Minimum of 3 Meetings / Annually
(As scheduled by the OCPL)
4:00 PM OCPL Headquarters, 2nd
Floor, Yosemite
Conference Room 1501,
E. Saint Andrew Place
Santa Ana, 92705
Orange County Sanitation District 4th Wednesday / Monthly 6:00 PM Administrative Offices, 10844 Ellis Avenue,
Fountain Valley, 92708
Orange County Mosquito and Vector Control
District Trustee
3rd Thursday / Monthly 3:00 PM Orange County
Mosquito & Vector
Control District
Headquarters, 13001 W.
Garden Grove Blvd.,
Garden Grove, 92843
Orange County Fire Authority (OCFA) 4th Thursday / Bi-Monthly 6:00 PM OCFA Regional Fire Operations & Training
Center Board Room, 1
Fire Authority Road
Irvine, CA
FPPC Form 806 (1/18)
FPPC Toll-Free Helpline: 866/ASK-FPPC (866/275-3772)
Comment:
A Public Document
Appt Date and
Length of Term
Agency Report of:
Title
Per Meeting/Annual Salary/Stipend
Alternate, if any
Alternate, if any
Alternate, if any
Alternate, if any
Name
Name
Name
Name
$0-$1,000
$0-$1,000
$0-$1,000
$0-$1,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$1,001-$2,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
$2,001-$3,000
Other Other Other Other
California
Form
1. Agency Name
E-mail
806
Area Code/Phone Number
____/____/____
____/____/____
____/____/____
____/____/____
$
$
$
$
Page _____ of _____
Attachment: B
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