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HomeMy WebLinkAbout1993-01-26 - AGENDA REPORTS - PURCHASING POLICIES (2)►L1; t 'It NEW BUSINESS DATE: January 26, 1993 SUBJECT: Purchasing Policies DEPARTMENT: Public Works This item addresses three related issues: Ma �roval Item to be presented by:,� 1. Purchasing Policies 2. Ordinance 93-3 amending the Santa Clarita Municipal Code at Sections 3.12 and 3.14 regarding Purchases and Public Works Bid Requirements respectively. 3. Resolution 93-9 regarding the Procurement of Recycled Products BACKGROUND Since the City's incorporation, staff have been referencing Santa Clarita Municipal Code Sections 3.12 for Purchases and 3.14 for Public Works Bid Requirements for Purchasing Policies. However, referencing these sections has caused confusion both internally and externally regarding the City's Purchasing policies and practices. Staff has had difficulty interpreting and applying the codes while suppliers have voiced concerns via the Santa Clarita Chamber of Commerce and the City Council. To address this problem, staff has developed Purchasing Policies (Attachment "A"). These policies interpret the Santa Clarita Municipal Codes pertaining to purchases and Public Works projects. Included is Ordinance 93-9, which addresses the City's Recycled Product Procurement Policy. They do not address Capital Improvement projects as these projects are unique in nature and usually involve only the Engineering staff. Development of the policies necessitated amendments to the Santa Clarita Municipal Code (see Attachment "C", Ordinance 93-3). These amendments mainly consist of clarification of existing codes and the addition of definitions, all of which have been approved by the City Attorney. To properly and completely address the concerns both internally and externally, staff consulted with all departments as well as inviting representatives from both the Canyon Country and Santa Clarita Chambers of Commerce to participate in a meeting with staff. Adopted:. -/-------4--4..--.9,-3 Agenda Item; O Page 2 January 26, 1993 Purchasing Policies Representatives from the Santa Clarita Chamber met with staff to bring not only member concerns to the City's attention but also results of a comparative survey of similar cities (Attachment "B"). This report indicates- that the City of Santa Clarita has been practicing the same methods currently in use in the cities surveyed. Staff also submitted a copy of the policies to the California Association of Public Purchasing Officers (CAPPO) for their review and has implemented their suggestions and comments. Additionally, both staff and a representative of the Santa Clarita Chamber of Commerce will make a brief presentation to the Council outlining the key points and ideas identified during the development of this project. Once all the recommendations, suggestions, and ideas were identified and incorporated, staff submitted the final draft of the Policies to a newly established nine -member purchasing committee which consists of representatives from each department in the City. The documents were returned with minor corrections which have been incorporated along with some streamlining to eliminate any reference to procedures. As this document is intended as policy, procedures will be addressed internally through scheduled training. Lastly, in an effort to better insure that the City of Santa Clarita purchases responsibly, a recycled product procurement policy has been developed and included in this document. This policy provides guidance to City employees and demonstrates the City's initiative in support of recycling. RECOMMENDATION It is recommended that the City Council review and approve the proposed Purchasing Policies, review and adopt the proposed resolution 93-9 pertaining to the Recycled Product Procurement Policy, and introduce, waive further reading, and pass to second reading Ordinance 93-3 amending Section 3.12 and 3.14 of the Santa Clarita Municipal Code regarding Purchases and Public Works Bid Requirements respectively. 110 Attachment "A" - Purchasing Policies (Reading File - City Clerk's Office) Attachment "B" - Public Bid Procedures Comparison (Reading File - City Clerk's Office) Attachment "C" - Ordinance 93-3 amending S.C.M.C. Section 3.12 and 3.14 Attachment "D" - Resolution 93-9 pertaining to the Recycled Products Procurement Policy ORDINANCE NO. 93-3 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING THE SANTA CLARITA MUNICIPAL CODE AT CHAPTERS 3.12 AND 3.14 REGARDING PURCHASES AND PUBLIC WORKS BID REQUIREMENTS THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The Santa Clarita Municipal Code is hereby amended at Chapter 3.12 relating to purchases to read as follows: ._Vr PURCHASES Sections: 3.12.010 Adoption of Purchasing System. 3.12.020 Centralized Purchasing Division 3.12.025 Purchasing Officer. 3.12.030 Purchasing Agent 3.12.070 Requisitions. 3.12.080 Purchase Orders. 3.12.120 Formal (Sealed) Bid Procedures. 3.12.160 Bulletin Board Notice. 3.12.180 Formal Bid Opening Procedure. 3.12.200 Award of Formal Bid Contracts. 3.12.215 No Formal Bids. 3.12.230 Open Market or Informal Bid Procedure. 3.12.260 Record of Informal Bids. 3.12.270 Exceptions to Competitive Bidding Requirement. 3.12.310 Surplus Supplies -- Trade-ins 3:12.320 Surplus Supplies -- Sale. 3.12.010. Adoption of Purchasing System. In order to establish efficient procedures for the purchase of 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 the quality of purchases, a purchasing system is adopted. The procedures established in this chapter do not apply for the purchase of supplies and equipment for public works projects covered under Chapter 3.14. 3.12.020. THIS SECTION IS HEREBY REPEALED ORDINANCE NO. 93-3 Purchases/Public Works Bid Requirements Page 2 3.12.025. Purchasing Officer. There is created the position of Purchasing Officer, who shall be the City Manager. 3.12.030. Purchasing Agent. There is created the position of Purchasing Agent, who shall be appointed by, and report to, the Purchasing Officer. The Purchasing Agent shall have the authority to: 3.12.070. Requisitions. Using departments shall submit requests for supplies and equipment to the Purchasing Agent by standard requisition form, or by other means as may be established by the purchasing rules and regulations. Except as provided herein, no requisition form shall be processed unless the prior approval of the Purchasing Agent or designee. has been obtained. 3.12.080. THIS SECTION IS HEREBY REPEALED 3.12.120. Formal (Sealed) Bid Procedures. Except as otherwise provided herein, purchases of supplies and equipment of an estimated value greater than Ten Thousand Dollars ($10,000.00) shall be awarded to the lowest responsible bidder pursuant to the formal bid procedure hereinafter prescribed. 3.12.160. THIS SECTION IS HEREBY REPEALED 3.12.180. Formal Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk and shall be identified as "bids" on the envelope. The City Clerk or designee, shall publicly open all bids at the time and place.stated in the public notices. A tabulation of all bids received shall be available for public inspection in the City Clerk's office during regular business hours for a period of not less than thirty calendar days after the bid opening. 3.12.200. Award of Formal Bid Contracts.. Except as otherwise provided herein, formal bid contracts shall be awarded by the City Council to the lowest responsible bidder. The determination of "lowest responsible bidder" shall be at the discretion of the City Council pursuant to findings and recommendations presented by the Purchasing Officer or designee at the time of award of contract. 3.12.215. No Formal Bids. When no formal bids or no responsive bids are received, the Purchasing Officer or designee is authorized to negotiate for written proposal, and his recommendation shall be presented to the City Council and award, if any, shall be made in accordance with applicable provisions prescribed herein. ORDINANCE NO. 93-3 Purchases/Public Works Bid Requirements Page 3 3.12.230. Open Market or Informal Bid Procedure. Purchases of supplies and equipment of an estimated value in the amount of Ten Thousand Dollars ($10,000.00) or less may be made by the Purchasing Agent in the open market pursuant to the procedure prescribed in Sections 3.12.240 through 3.12.260 and without observing the procedure prescribed in Sections 3.12.120 through 3.12.215; provided, however, all bidding may be dispensed with for purchases of supplies and equipment having a total estimated value of less than Five Hundred Dollars ($500.00). 3.12.260. Record of Informal Bids. The purchasing agent shall keep a written record of all purchases, whether accomplished by formal bid (Sections 3.12.120 through 3.12.215), informal bid (Sections 3.12.230 through. 3.12.250) or through no bid at all (Section 3.12.230 and 3.12.270). All records so kept shall be available for public inspection and shall be subject to destruction in accordance with the City's retention schedule. 3.12.270. Exceptions to Competitive Bidding Requirement. Notwithstanding any provision of this chapter the contrary, the competitive bidding procedures and requirements may be dispensed with in any of the following instances: A. When the estimated amount involved is less than Five Hundred Dollars ($500.00); 3.12.310. Surplus Supplies — Trade-ins. The purchasing agent shall have authority to exchange for, or trade in on, new supplies and equipment; all supplies and equipment unsuitable for City.use. 3.12.320. Surplus Supplies -- Sale. The Purchasing Officer or designee shall also have authority to dispose of surplus supplies or equipment... ORDINANCE 93-3 Purchases/Public Works Bid Requirements Page 4 Section 2: The Santa Clarita Municipal Code is hereby amended at Chapter 3.14 relating to Public Works Bid Requirements to read as follows: CHAPTER 3.14 Sections 3.14.030 Informal Bidding. 3.14.030. Informal Bidding. Public works projects of an estimated value in the amount of $50,000 or less may be let to contract as follows: A. Minimum Number of Bids. The award of bid shall be based on at least three (3) bids. Section 3: The City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published as required by law. PASSED, APPROVED, AND ADOPTED this day of ATTEST: City Clerk Mayor ,19 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Donna M. Grindey, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. was duly adopted at a regular meeting of the City Council on the day of , 19by the following vote, to wit: AYES: COUNCILMEMBERS City Clerk RECYCLED PRODUCT PROCUREMENT RESOLUTION Purpose of Resolution The enactment of a procurement resolution is intended to broaden the use of recycled content products currently purchased on behalf of the City. This resolution will have the effect of underscoring the importance of such efforts on all City departments which submit purchase requisitions. It will promote "buying recycled" goals to the public at large and to private business associated with the City. It will put the City "on record" in support of progressive procurement and market development goals. It will increase the recycled content of products purchased and used by the City of Santa Clarita, its contractors and grantees. It will formalize any current practices by authorizing the Purchasing Agent to specify a minimum level of recycled content in a given bid solicitation. It will provide guidance and leadership by the City to government staff in evaluating the purchase of products for the City use. Background A successful City-wide recycling program relies on the establishment of stable and sustaining markets for recyclables. Currently; the nation is experiencing unstable markets and declining. commodity prices for various recyclables. In order to insure available materials, it is necessary to buy products made from recycled materials thereby creating a demand for these materials, which we are attempting to keep out of our landfills. The City of Santa Clarita can' facilitate demand for recycled products by purchasing products made from recycled materials. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. The Local Government Commission completed a report in June 1990 specifying the growing number of cities across the country that have implemented, or are currently implementing similar recycled procurement guidelines. Procurement policies enacted statewide include price preferences for recycled post -consumer materials; revisions of bid specifications which previously required only virgin materials; modification of purchase requisitions requiring the consideration of recycled content products, the compliance of all contractors and grantees working on behalf of the City to implement these City enacted procurement policies, promotion programs, procedures for obtaining and verifying estimates and certifications of content of recovered materials, and annual review and monitoring. Additionally, the California Integrated Waste Management Act of 1989 mandates that State agencies purchase products manufactured from recycled materials. The State is also asking for cities to join in this statewide effort. It is not enough to merely establish or participate in recycling program development, it has become necessary to commit to the purchase of recycled materials as well. If the end products of the collected and recycled materials are not purchased, then recycling and waste reduction efforts cease to be effective in the long term. The recommended procurement resolution concerns itself with the source of materials used to manufacture products that the City purchases and uses. The object is to ensure that no product manufactured with recycled content of "secondary" material is discriminated against or excluded for reasons other than function. Furthermore, it is important to mandate that such products made from "recycled -content" and "secondary content" materials have a preferential purchasing status over those goods that are strictly made from virgin(raw) materials. This is especially relevant when "recycled -content" products can satisfactorily meet the necessary standards of performance. The Local Government Council in Sacramento has asked that every city establish a government procurement policy to purchase recycled and reusable products. According to the Local Government Commission, 1989 government purchases amounted to $916 billion, or about 20 percent of the gross national product. It is estimated that about 13 percent of that figure represents purchase made by State and local governments. This is a clear indicator that local government procurement resolutions for recycled products can make a significant impact on market development goals. The Federal government and the State of California both have laws favoring the use of recycled products. The Environmental Protection Administration is implementing Section 5002 of the Resource Conservation and Recovery Act, which requires agencies using Federal funds to favor recycled products. The National Recycling Coalition also urges public and private agencies to establish programs favoring purchasing of recycled products. The Local Government Commission is also recommending that governments develop practical new procurement specifications and through their use, demonstrate that recycled products are of high quality. When a city uses recycled paper, for example, the phrase "printed on recycled paper" should appear on all products, i.e.: all stationery, business cards, etc. This leads to good public relations and establishes the City of Santa Clarita as a leader in the arena of market development. In doing so, the City also sets an excellent example for the private sector to follow. In order to accomplish these goals, it is recommended that the City provide specific guidance to City staff, contractors and grantees regarding the importance of "buying recycled." It should be articulated that this is a necessary adjunct to all recycling programs and will close the recycling "loop" and stimulate market economies, thereby reducing the costs of "recycled - content" materials. The U.S. Environmental Protection Agency's (EPA) recycled product procurement guidelines, issued pursuant to the Resource Conservation and Recovery Act, do not specifically apply to the City (the City does not fall under the EPA's definition of a "procuring agency"), except in instances where materials are purchased by the City with earmarked federal funds nor would they be required to conform to EPA "recycled -content" guidelines. (See attachment for EPA's requirements.) It will reduce waste in the manufacture and use of products and packaging purchased by the City. It will provide guidance and leadership to the City's staff in evaluating the purchase of products for City use. The procurement recommendation, and particularly the provisions for affirmative "recycled - content" product identification, procurement, certification, promotion and annual monitoring (a report will be sent to Council) do conform with EPA guidelines. , Please note that the policy endorses the State of California's definition of recycled paper' products, rather than the Environmental Protection Agency's. The State definition is more strict than the EPA's when it comes to permitting miscellaneous material to count as "recycled" content, and also requires post -consumer content for different grades of paper for which the EPA does not require any post -consumer content for a paper to qualify as, "recycled." This policy will also further contribute to the. City's compliance with a State requirement (AB939) that cities undertake and report market development activities. Additionally, AB4, also enacted in 1989, contains four basic requirements: The City must require bidders to specify both the total recovered and post -consumer content of paper products (even if zero). 2. Specification should not discriminate against recycled content. City printing contracts must meet the recycled content provisions of AB939. 4. The City must "buy recycled" if a paper product costs no more than comparable non - recycled paper product. Given the implementation of this policy, the City will meet these requirements. RESOLUTION NO. 93-9 A RESOLUTION OF THE CITY COUNCIL OF THE, CITY OF SANTA CLARITA, CALIFORNIA, FOR THE ADOPTION OF A POLICY REGARDING THE PROCUREMENT OF RECYCLED PRODUCTS WHEREAS, it is the policy of the City of Santa Clarita to conserve and protect natural resources for current and future citizens;and WHEREAS, the City's participation in and promotion of recycling programs can significantly reduce the volume of material entering the waste stream thereby conserving natural resources and extending landfill life expectancy; and WHEREAS, in order for recycling programs to be effective, markets for recycled post -consumer materials must be developed; and . WHEREAS, the implementation of a procurement policy for the City of Santa Clarita would contribute to the conservation and protection of natural resources and support city-wide recycling programs; and WHEREAS, the City's commitment to the purchase of recycled materials will help expand the markets for recycled products and serve as a model for private industry and local businesses; and WHEREAS, State and Federal agencies have implemented procurement guidelines requiring government agencies to buy products made with recycled materials. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Clarita, California, as follows: SECTION 1. The City Council hereby adopts the following policy: RECYCLED PRODUCTS PROCUREMENT RESOLUTION I. Definitions of Recycled Content A. Post -consumer recovered materials. A finished material which would normally be disposed of as a solid waste, having completed its life cycle as a consumer item. Examples of post -consumer recovered materials include, but are not limited to; used newspaper, office paper, ,yard waste, plastic bottles, oil, asphalt, concrete and tires. B. Pre -consumer recovered material. Material or by-products generated after manufacturing of a product is completed, but before the product reaches the end-use consumer. examples of pre -consumer recovered materials include, but are not limited to; obsolete inventories of finished goods, rejected unused stock and paper wastes generated during printing, cutting and other converting operations. This category does not include mill or manufacturing trim, scrap or "broke," which is material generated at a manufacturing site and commonly reused within the manufacturing process. For example, pre -consumer paper waste sources are not considered "recycled." Components of a paper product include, but are not limited to; fibers recovered from waste water, trimmings of a paper machine rolls, sawdust, chips, wood slabs, other wood residue from a manufacturing process, and such materials sold between mills. C. Total recovered material. The total pre- and post -consumer recovered material contained in a product. II. Recycled Content Preference It is recommended that the City of Santa Clarita establish a policy, whenever practical, to purchase products which contain, in order of preference, the following: 1. The'highest percentage of recycled content of "post -consumer recovered materials," available in the marketplace;and 2. The highest percentage of "pre -consumer recovered materials," available in the marketplace. In those instances where it is deemed impractical to procure a iecycled-content item, a specific explanation for the finding must be included in the purchasing record (see "Monitoring and Annual Report" section). III. Price Preference. A 10% price preference may be given to recycled products, reusable products offered as alternatives to disposable products, and products designated to be recycled where they are offered as alternatives to non -recyclable products. The preference percentage shall be based on the lowest bid or price quoted by the supplier offering recycled products. W. Recyclability and Waste Reduction In addition to the recovered material content of a product, important criteria in selecting products shall also be: 1. The ability of a product and its packaging to be reused , reconditioned for use, or recycled through existing recycling collection programs; and 2. The volume and toxicity of waste and by-products of a given product and its . packaging generate in their manufacture, use, recycling and disposal. Products and packaging designed to minimize waste and toxic by-products in their manufacture, use, recycling and disposal shall be preferred. V. Equipment Compatibility Equipment purchased or rented by the City shall be compatible, whenever practical, with the use of recycled content products. If deemed impractical, a specific reason for such a finding must be included in the purchasing record. VI. Purchase Requisition, Specification and Bid Solicitation Product specification and requisitions for products shall conform to the following guidelines: 1. Product specifications and requisitions shall not indiscrimately require the use of products made from virgin materials, nor specifically exclude the use of recycled - content products; 2. Performance standards must be reasonable and related to function, and shall not be designed to exclude the purchase of recycled -content products; 3. To the extent such information is known, City staff shall identify to the Purchasing Division (in the Purchase Requisition) products available with recycled content and vendors from who such products are available. 4. Purchasing agents have the authority to specify a minimum "recycled -content" standard in bid solicitations to accomplish the purposes of this policy. VII. Contractors and Grantees All City contractors and grantees shall be required to conform to the minimum recycled - content procurement standards set forth by General Services, Public Works Department. This requirement shall be applied to contractors and grantees in procuring materials or products to perform contractual services for the City, to produce or provide. a work product to the City or on the City'.s behalf, or to conduct work funded by a grant from the City. The list shall be reviewed as needed, but no less than annually, by the City Council (see "Monitoring and Annual Report" section). Contractors and grantees shall be further required to report to the City the types, quantities and total dollar amounts of recycled products which are purchased by the contractor or grantee in connection with City -funded work. The percentage of post -consumer and total recovered material content of such purchased products shall also be required to be included in the report. VIII. Promotion All City purchased and printed recycled paper products shall be labeled with the standard phrase: "Printed on Recycled Paper." All City departments or agencies shall be required to use recycled products for their business cards, masthead stationery, envelopes, business forms and pertinent documents. All said documents shall be printed, with the standard phrase: "Printed on Recycled Paper" thereby promoting the use of post -consumer content. If sufficient documentation and certification is available, reasonable efforts shall be undertaken to specifically indicate the percentage of recycled post -consumer content. In this case, the phrase "Printed on 40% Post -Consumer Recycled Paper" shall appear on all products produced by and for the City. All City requested documents, produced by grantees and contractors shall be produced on post -consumer recycled paper. All contractors and grantees will submit all requested documents to the City on recycled paper. This shall include, but not be limited to drafts, reports, training manuals, bids, responses to inquiries and permit applications. IX. Certification All product providers shall be required to maintain appropriate documentation verifying either the minimum or the exact percentage of post -consumer recovered material and total recovered material contained in products purchased by the City. If no recovered material has been used, then a product provider would certify zero recycled content. Any claims of waste minimization in the manufacture or use of any product shall also be certified. X. Implementation It is recommended that the City Manager develop administrative procedures to achieve the purposes of this resolution and implement the provisions of this policy, including procedures for waiving a requirement of this policy in any necessary circumstance. XI. Monitoring General Services shall prepare and deliver to the City Council an annual status report on implementation of this policy and formalize a recycled products list to aid in purchasing and monitoring goals. The report shall include documentation of the types, quantities, and dollar amounts of recycled products purchased in the previous year by the City, its contractors and its grantees. The report shall also identify and discuss the following: Instances where this policy is waived or its requirements found impracticable; and 2. Barriers to the procurement of recycled -content products. In addition to monitoring and evaluating this procurement policy, the effect of evaluating products for their recycled content, ensuring specifications are non-discriminatory, including the Council's policy in bid solicitations and contracts, and other additional requirements of the policy will affect the Purchasing Division's workload. This will be evaluated as the policy is implemented and recommendations as needed will be brought forward to the Council, to augment staff, if necessary and appropriate. Fiscal Impact The adoption and implementation of this procurement ordinance may impact current budgets. Given the requirements of AB939 and the concern over additional landfill development, and rising disposal costs, these anticipated costs are necessary to conserve and protect natural resources and support the City of Santa Clarita's recycling and market development goals. Conclusion The future of recycling depends upon the creation of stable and sustaining markets for recycled secondary products. It is recommended, therefore, that the City of Santa Clarita enact a procurement policy which supports the development of stable markets for recyclables and supports the City's ongoing recycling ethic and commitment to progressive integrated waste management solutions. SECTION 2. The City Clerk shall certify to the adoption of this resolution and certify this record to be a full, true, correct copy of the action taken. PASSED AND APPROVED this ATTEST: CITY CLERK day of , 19. MAYOR. I HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 19 _, by the following vote of the Council: AYES: COUNCI MEMBERS: NOES: COUNCILMEMBERS: C•1M-bW �:I5101 R,:. _n 4NE� MADE A PAffi Ul- iHERECORD AT� � �f�EfiNG BID PROCESS BASIS OF RESEARCH: IDENTIFY A NUMBER OF CITIES THAT ARE LIKE SANTA CLARITA , IN GEOGRAPHICAL SIZE AS WELL AS CITIES THAT WERE MORE MATURE AND CITIES THAT WERE LESS MATURE: BAKERSFIELD PALMDALE BID PROCESS Slide 1 SANTA ROSA SOUTHGATE AS WELL AS: SIMI THOUSAND OAKS LEAGUE OF CALIFORNIA CITIES CALIFORNIA ASSOCIATION of PUBLIC PURCHASING OFFICERS (CAPPO) BID PROCESS Slide 2 MMENDATIONS I. DOUBLE -SUBMITTAL PROCESS - A. PEOPLE/BUSINESS ASPECT 1, RESPONSIBLE/QUALIFIED BID FIRST 2. THEN COST (include some tracking mechanism to review) BID PROCESS Slide 3 B. THE ACTUAL BID 1, WELL DEFINED AND CONSISTENT, INCLUDING ALL TECH ASPECTS ETC., I.E., SIC CODES 2. RESPONSE BACK- TO BIDDERS IN A SIMPLE FORMAT AS TO RESULTS II. COORDINATED PURCHASING - TO HAVE ALL BIDS SUBMITTED PRIOR TO RELEASE OF BID TO ENSURE CONSISTENCY WITH THE DOCUMENTED PROCESS. BID PROCESS Slide 4 III. FINANCIAL CONSIDERATIONS FOR IMPLEMENTATION A. FEES FOR QUALIFICATIONS VERSUS FEES FOR BIDS B. KEEP TAX DOLLARS LOCALLY BID PROCESS Slide 5 TABLE OF CONTENTS SECTION DESCRIPTION PAGE SECTION 1.0 GENERAL PROVISIONS. 1 SECTION 2.0 SUPPLIES/SERVICES/EQUIPMENT 2 SECTION 3.0 CONSULTANT SERVICES 4 SECTION 4.0 PUBLIC WORKS PROJECTS 5 SECTION 5.0 BLANKET AND FIELD PURCHASE ORDERS 7 SECTION 6.0 SURPLUS/TRANSFER OF PROPERTY 8 SECTION 7.0 GRATUITIES 9 SECTION 8.0 FORMAL BID/PROPOSAL PROCEDURES 10 SECTION 9.0 POLICY EXCEPTIONS 16 SECTION 10.0 RECYCLED PROCUREMENT POLICY 17 RESOLUTION 93-09 PROTECTION OF TROPICAL TIMBER 26 RESOLUTION 91-91 SECTION 11.0 CONTRACTS 29 SECTION 12.0 SUPPLIER RELATIONS 40 APPENDIX A QUICK REFERENCE REQUIREMENTS APPENDIX B FORMAL BID FLOWCHART APPENDIX C SAMPLE REQUEST FOR PROPOSAL APPENDIX D SAMPLE REQUEST FOR BID . APPENDIX E MISCELLANEOUS FORMS Agenda Item: SECTION 1.0 GENERAL`PROVISIONS I. SCOPE As used in this policy, unless the contract otherwise clearly indicates: A. "General Services Manager" shall mean the person responsible for the City's procurement program and implementation. B. "Purchasing Agent" shall mean the person responsible for the day to day operations of the purchasing function. C. Any purchase contract contrary to the provisions of this policy shall be null and void. II. PROCUREMENT AUTHORITY A. All purchases over $500 require a purchase requisition and purchase order and shall be performed by the General Services Division as stated in this policy unless authorized by City Council. B. All formal bids shall be conducted by the General Services Division. C. The City Manager shall waive this policy as necessary by recommendation to and approval of the City Council. III. PROCUREMENT RESPONSIBILITY It shall be the responsibility of the Purchasing Agent to: A. procure .the highest quality supplies and services at the least expense to the City. B. ensure full and open competition as required in this policy and discourage uniform or collusive bidding. C. examine each estimate and requisition and revise it as to quantity,, quality, and estimated cost consistent with requisite standards and specifications. D. prepare and maintain supplier catalog file indexed by locale, commodity, and discount (when applicable) E. disqualify suppliers in default and forbid award of future business from the City for a stated period of time. F. delegate the responsibilities of the Purchasing Agent as deemed necessary. SECTION 2.0 SUPPLIES/SERVICES/EQUIPMENT I. SCOPE This section provides the requirements for the procurement of all supplies, services, and equipment. Il. DEFINITIONS A. Supplies - Essential materials required for the effective operation of the City. B. Services - A service orientated firm generally provides maintenance and/or intangible goods with usual emphasis on its physical capabilities. This includes services such as janitorial, landscaping, pest control, and refuse disposal. This does not include services such as telephone, gas, and water services, insurance, design and architectural services,.or those provided by the County of Los Angeles or other municipal agencies. C. Equipment - Essential hardware required_ for the effective operation'of the City. A. PURCHASES UP TO $50 1. Petty Cash - obtained from Finance or Field Services -or- 2. Field Purchase Order -or- 3. Blanket Purchase Order (see Section 5) -or- 4. Check Request -or- B. PURCHASES OVER $50 TO $499.99 (incl. freight/delivery, excl. taxes) 1. Field Purchase Order -or- 2. Blanket Purchase Order (See Section 5) -or- 3. Check Request C. PURCHASES FROM $500 TO $1,999.99 (incl. freight/delivery, excl. taxes) 1. Three (3) verbal quotes 2. Purchase requisition 3. Purchase order D. PURCHASES FROM $2,000 TO $9,999.99 (incl. freight/delivery, excl. taxes) 1. Three (3) written quotes 2. Purchase requisition 3. Purchase order 2 E. PURCHASES OVER $10,000 (also see Section 8.0) 1. Product/Service specifications 2. Formal Bid process (See Section 8.0) 3. Purchase requisition 4. Purchase order IV. GENERAI. A. All requisitions must be authorized by the Director (or designate) of the requesting department. The names and signatures of all designated signing authorities must be submitted to General Services for referencing purposes. B. Field Purchase Orders shall be used when a supplier requires a purchase order for purchases under $500.00. SECTION 3.0 CONSULTANT SERVICES I. SCOPE This section provides the requirements for the procurement of consultant services. Il. DEFINITIONS A. Consultant - a consultant provides expert or professional advice and generally emphasizes the intellectual capabilities of the person or firm. Services such as accounting, architectural, auditing, engineering, environmental, legal, financial planning, project management, surveying services, or training for the City on a temporary basis are all included under this definition. A. PURCHASES UNDER $20,000 1. Contract (See Section 11.0) 2. Purchase Requisition 3. Purchase Order B. PURCHASES $20,000 AND ABOVE 1. Contract (See Section 11.0) 2. City Council approval 3. Purchase requisition 4. Purchase order IV. GENERAL A. Formal bids are not required on consultant services. However, quotations or proposals are recommended from a minimum of three qualified individuals or firms to ensure fair pricing. Should negotiations prove unsuccessful with the primary consultant, written notice must be given to formally terminate negotiations, and negotiations shall commence with the second most -qualified firm. B. Contracts must be approved by the City Attorney, City Manager, and City Clerk before a purchase order can be issued. Contracts $20,000 and above must also include City Council approval. (See Section 11.0) C. All requisitions must be authorized by the Director (or designate) of the Requesting department. The names and signatures of all designate signing authorities must be submitted to General Services for referencing purposes. 4 SECTION 4.0 PUBLIC WORKS PROJECTS I. SCOPE This section provides the requirements for the procurement of all Public Works Projects. 11. DEFINITIONS . A. Public Works projects - the erection, construction, alteration, repair, improvement, maintenance, protection, or operation of any public structure, building, road, publicly owned system (such as water, power, or waste disposal), or other public improvement of any kind. A. PROJECTS UNDER $15,000 1. Purchase requisition 2. Contract (See Section 11.0) 3. Purchase order B. PROJECTS FROM $15,000 TO $49,999.99 1. Three (3) written bids 2. Purchase requisition 3. Contract (See Section 11.0) 4. Purchase order C. PROJECTS $50,000 AND ABOVE 1. Specifications and requirements 2. Formal bid process (See Section 8.0) 3. Contract (See Section 11.0) 4. Purchase requisitions with a copy of approved agenda item 5. Purchase order 5 IV. GENERAL A. All contracts require the approval of the City Attorney, City Manager, and City Clerk before a purchase order can be issued. (See Section 11.0) B. All requisitions must be authorized by the Director (or designate) of the Requesting department. The names and signatures of all designate signing authorities must be submitted to General Services for referencing purposes. ri SECTION 5.0 BLANKET AND FIELD PURCHASE ORDERS I. SCOPE This section provides the requirements for the use of Blanket and Field Purchase Orders. 11. DEFINITION A. Blanket. Purchase Order - a purchase order with either a" not -to -exceed" dollar limit or a specified quantity of items that are requested/delivered on an as - needed basis. B. Field Purchase Order - a purchase order issued to Departments for suppliers requiring a purchase order for goods under $500.00. A. PURCHASES UNDER $500 Request directly from supplier using the Blanket Purchase Order or, if needed, a Field Purchase Order. B. PURCHASES FROM $500.00 to $1,999.99 1. Purchase Requisition 2. Purchase Order -or- 3. Request directly from supplier only if Blanket Purchase Order awarded through competitive pricing comparison. (mandatory in FY93/94). 1V. GENERAL A. All requisitions must be authorized by the Director (or designate) of the requesting department. The names and signatures of all designated signing authorities must be submitted to General Services for referencing purposes. 7 SECTION 6.0 SURPLUS/TRANSFER OF PROPERTY I. SCOPE This section provides the requirements for the transfer/sale of City -owned property H. DEFINITION A. City -owned property - any supplies, materials, or equipment purchased by or donated to the City for City use. A. The General Service Manager may, by direct sales or otherwise, sell or dispose of any property belonging to the City and found by the City Council not required for public use. All monies collected from the proceeds of sales are to be deposited in the City's account. B. No member of the Council and no employee shall be permitted to purchase any assets or supplies of the City except those items disposed of in an open public auction. C. The City Council may authorize transfer of equipment,. supplies, and/or materials for non -monetary consideration to public agencies or educational institutions for use in the public interest. SECTION 7.0 GRATUITIES I. SCOPE This section provides guidelines on the acceptance of gratuities. H. DEFINITION A. Gratuity - a payment, loan, subscription, advanced deposit of money, service or anything of more than nominal value present or promised, unless consideration of substantial, equal, or greater value is received. A. Any employee accepting gratuities over the amount specified in B.1 will be disciplined as deemed sufficient by the Personnel Manager. B. Employees may accept items such as coffee cups, pencil holders; pens etc. in the instance where: 1. the item is valued at less than $25 -and/or- 2. the name of the offering firm is clearly displayed on the item for purpose of advertisement. 3. any edible item such as candy may be accepted but must be consumed by the department accepting the item. 0 SECTION 8.0 FORMAI. BID/PROPOSAL ] I. SCOPE This section provides the requirements for requesting/conducting a Formal Bid and Request for Proposal. Refer to the City Clerk's Bid Process on pages 12 through 15 for complete bid details II. DEFINMON A. The Formal Bid process is required for a) purchases of supplies/services/equipment $10,000 and above and b) Public Works contracts $50,000 and above. B. Request for Proposals are used to purchase goods and services whose exact attributes are unknown. The request offers basic guidelines/requirements only, allowing the supplier to define in greater detail the product/service being submitted for consideration. III # i' DI 1 A. Formal Bids Services/Supplies/Equipment a. product /service specifications b. Contract (if required - See Section 11.0) C. Purchase requisition with copy of approved agenda item d. Purchase Order 2. Public Works Projects a. Specifications and requirements b. Purchase requisition with copy of approved agenda item C. Purchase Order B. Request for Proposal a. Specifications and requirements b. Purchase requisition with copy of approved agenda item C. Purchase Order 10 IV. GENERAL A. Upon receipt and verification of specifications and requirements, the purchasing agent shall submit a "Notice Inviting Bids/Proposals" to the City Clerk for advertisement. B. Advertising is not necessary for Requests for Proposal but is recommended to reach as many potential suppliers as possible. 11 CITY OF SANTA CI ARITA BID PROCESS 1. Department prepares bid notice, specifications, proposal sheet, mailing list and forwards to City Clerk along with project checklist which is attached. This checklist is to be initialed by each person handling the project. 2. City Clerk publishes notice in the Signal, Daily News and Dodge Report, maintains original bid packages and prepares copies of the bid packages for the department of origin. Please no bid openings on Friday,, 3. During the advertised bid time, bid packages should be picked up through the department preparing bids unless otherwise specified. A log shall be maintained by the Department as to recipients of the bid packages, including company, mailing address, and telephone number. This includes the bid packages that are mailed as well as those picked up at the department counter. This is necessary in the event that addenda to the specifications are required. The City Clerk shall receive a copy of the log before bid opening. The fee for the bid specifications should be collected at the time specifications are picked up. If specifications are mailed, the check is to be mailed to the department of origin unless otherwise specified. It is not to be given to the City. Clerk at the time of bid opening. It is not the responsibility of the Clerk to accept checks. 4. Bids are received by the City Clerk and publicly opened on the designated time and date. No one is to open the bids if they are received before the specified date. All bids are opened at 11:00 a.m. sharp. The City Clerk will not accept bids after 11:00 a.m. 5. A summary sheet of the bid opening is prepared by the City Clerk's office and copies of all bid packages are given to the department of origin for review and preparation of agenda report for City Council. Please give the City Clerk's office a few hours to xerox the copies. 6. Any bids that are not complete, will be disqualified by the City Clerk. This includes faxed bids, double bidding, and late bids. 7. Any vendor who wishes to withdraw his bid, should do so by letter. addressed to the City Clerk. The City Clerk will in turn make copies of the letter for the department. 8. All complete original bid packages are maintained by the City Clerk. 9. Upon the award of the contract, the agreement shall be signed, in triplicate, by the awardee and returned to the City together with contract bonds and other contract documents, as required, within ten (10) days after it has been delivered or mailed to the awardee. 12 10. The attorney-in-fact, surety, certificates of insurance and bond amount will be verified by the department of origin and the Risk Manager before the contract is signed by the City. 11. Following award of the bid by City Council, the department of origin notifies the successful bidder. 12. Upon written request, the City Clerk will return any bonds or checks to the unsuccessful bidders. If the successful bidder fulfills the bid bond requirements through certified check or money order, the City Clerk will return the items to them 10 days after bid contract is executed. 13. The City Clerk is responsible for obtaining contract signatures on behalf of the City. 14. Complete bid file is labeled and placed in the vault in the City Clerk's office for storage. 15. All departments will be supplied with a special envelope which is to be provided to all bidders when picking up or mailing specifications. Departments are to put the bid name and project number on the envelopes. All bids are to be sent or delivered to the City in those envelopes. 16. All departments have received a calendar which gives you bid opening dates, Council reports dues, etc. This is a guideline for your. use. 13 I. H. "11 is n 1 ',4 316 iN: . . PURCHASES OF SUPPLIES AND EQUIPMENT (SCMC 3.12.270 A -C) A. No biddinglquotes required when: 1. Purchase is less than $500.00 -or- t. There is only one vendor -or- 3. An emergency exists and City services will be interrupted -or- 4. Seller is another governmental entity B. Informal bidding/quotes on purchases $10,000 or less 1. Solicit three bids/quotes, choose the "most advantageous" (SCMC 3.12.230) C. Formal bidding when amount is $10,000 or more and does not fit into exceptions A; (2) through (4) above. PERSONAL, PROFESSIONAL, CONSULTANT SERVICES A. No bidding required, but must have City Council approval for contracts over $20,000. (SCMC 3.12 270D) B. City Manager authorized to enter into contracts of $20,000 or less; providing there are funds budgeted. (SCMC 3.12.270E) PUBLIC WORKS CONTRACTS A. B. C. No bidding/quotes required if $15,000 or less. May be performed by force account, purchase order or negotiated contract. (SCMC 3.14.020A) Informal bidding/quotes for contracts of $50,000 or less, if award is based on three (3) bids. (SCMC 3.14.030) Formal bidding required for contract over $50,000 in accordance with the California Public Contracts Code. (SCMC 3.14.070) 14 PROJECT CHECKLIST PROJECT # ESTIMATE DATE BID OPENING DATE FEE PLEASE VERIFY BY INITIALING 1. Authorization to advertise _ 2. Prepare plans and specs 3. Notices mailed to persons on attached list. 4. Notice to newspaper (City Clerk) - (3 dates) Contract 3 copies returned Signed by Contractor Corporate Seat Affixed _ Bid Bonds verified Approved by City Attorney Labor and Materials Bond 3 copies returned Signed by Principal Corporate Seal Affixed Signed by Surety Principal, Surety & amount of bond verified by County Certificate of Insurance $1M general liability $IM automobile liability City named as additional insured Workers' Compensation Notice of Completion _ Authorization to file from City Council on (date) Notice of completion filed Recording Date Date Checked By 15 SECTION 9.0 POLICY EXCEPTIONS I. SCOPE This section provides information on exceptions to this policy such as sole source selection and emergency purchases. H. DEFINITION A. Sole source - (1) The services/products provided by the supplier are unique in nature. (2) The supplier is the only source. known to the City after a reasonable search for other suppliers has been conducted. (3) If the current work requirements are an extension of the original work and substantially rely on the experience gained during the original work. B. All policy exceptions must be noted on purchase requisition. u V m A. Time constraints are not adequate justification for a sole source selection. B. Emergency - Public health may be endangered by any delay. C. Exceptions (no quote or bidding required): Membership dues Legal Services Contract Recreation Instructors Employee Benefit Payments Postage 16 Temporary Agencies Other Governmental Agencies Grants Utilities SECTION 10.0 RECYCLED PRODUCT PROCUREMENT RESOLUTION Purpose of Resolution The enactment of a procurement resolution is intended to broaden the use of recycled content products currently purchased on behalf of the City. This resolution will have the effect of underscoring the importance of such efforts on all City departments which submit purchase requisitions. It will promote "buying recycled" goals to the public at large and to private business associated with the City. It will put the City "on record" in support of progressive procurement and market development goals. It will increase the recycled content of products purchased and used by the City of Santa Clarita; its contractors and grantees. It will formalize any current practices by authorizing the Purchasing Agent to specify a minimum level of recycled content in a given bid solicitation. It will provide guidance and leadership by the City to government staff in evaluating the purchase of products for the City use. Background A successful City-wide recycling program relies on the establishment of stable and sustaining markets for recyclables. Currently, the nation is experiencing unstable markets and declining commodity prices for various recyclables. In order to insure available materials, it is necessary to buy products made from recycled materials thereby creating a demand for these materials, which we are attempting to keep out of our landfills. The City of Santa Clarita can facilitate demand for recycled products by purchasing products made from recycled materials.. By fostering markets for recycled materials, the City serves a leadership role in promoting similar procurement practices within all City departments, private businesses and the general public. The Local Government Commission completed a report in June 1990 specifying the growing number of cities across the country that have implemented, or are currently implementing similar recycled procurement guidelines. Procurement policies enacted statewide include price preferences for recycled post -consumer materials; revisions of bid specifications which previously required only virgin materials; modification of purchase requisitions requiring the consideration of recycled content products, the compliance of all contractors and grantees working on behalf of the City to implement these City enacted procurement policies, promotion programs, procedures for obtaining and verifying estimates and certifications of content of recovered materials, and annual review and monitoring. 17 Additionally, the California Integrated Waste Management Act of 1989 mandates that State agencies purchase products manufactured from recycled materials. The State is also asking for cities to join in this statewide effort. It is not enough to merely establish or participate in recycling program development, it has become necessary to commit to the purchase of recycled materials as well. If the end products of the collected and recycled materials are not purchased, then recycling and waste reduction efforts cease to be effective in the long term. The recommended procurement resolution concerns itself with the source of materials used to manufacture products that the City purchases and uses. The object is to ensure that no product manufactured with recycled content of "secondary" material is discriminated against or excluded for reasons other than function. Furthermore, it is important to mandate that such products made from"recycled-content" and "secondary content" materials have a preferential purchasing status over those goods that are strictly made from virgin(raw) materials. This is especially relevant when "recycled -content" products can satisfactorily meet the necessary standards of performance. The Local Government Council in Sacramento has asked that every city establish a government procurement policy to purchase recycled and reusable products. According to the Local Government Commission, 1989 government purchases amounted to $916 billion, or about 20 percent of the gross national product. It is estimated that about 13 percent of that . figure represents purchase made by State and local governments. This is a clear indicator that local government procurement resolutions for recycled products can make a significant impact on market development goals. The Federal government and the State of California both have laws favoring the use of recycled products. The Environmental Protection Administration is implementing Section 5002 of the Resource Conservation and Recovery Act, which requires agencies using Federal funds to favor recycled products. The National Recycling Coalition also urges public and private agencies to establish programs favoring purchasing of recycled products. The Local Government Commission is also recommending that governments develop practical new procurement specifications and through their use, demonstrate that recycled products are of high quality. When a city uses recycled paper, for example, the phrase "printed on recycled paper" should appear on all products, i.e.: all stationery, business cards, etc. This leads to good public relations and establishes the City of Santa Clarita as a leader in the arena of market development. In doing so, the City also sets an excellent example for the private sector to follow. In order to accomplish these goals, it is recommended that the City provide specific guidance to City staff, contractors and grantees regarding the importance of "buying recycled." It should be articulated that this is a necessary adjunct to all recycling programs and will close the recycling "loop" and stimulate market economies, thereby reducing the costs of "recycled - content" materials. IN The U.S. Environmental Protection Agency's (EPA) recycled product procurement guidelines, issued pursuant to the Resource Conservation and Recovery Act, do not specifically apply to the City (the City does not fall under the EPA's definition of a "procuring agency"), except in instances where materials are purchased by the City with earmarked federal funds nor would they be required to conform to EPA "recycled -content" guidelines, (See attachment for EPA's requirements.) It will reduce waste in the manufacture and use of products and packaging purchased by the City. It will provide guidance and leadership to the City's staff in evaluating the purchase of products for City use. The procurement recommendation, and particularly the provisions for affirmative "recycled - content" product identification, procurement, certification, promotion and annual monitoring (a report will be sent to Council) do conform with EPA guidelines. Please note that the policy endorses the State of California's definition of recycled paper products, rather than the Environmental Protection Agency's. The State definition is more strict than the EPA's when it comes to permitting miscellaneous material to count as "recycled" content, and also requires post -consumer content for different grades of paper for which the EPA does not require any post -consumer content for a paper to qualify as "recycled." This policy will also further contribute to the City's compliance with a State requirement (AB939) that cities undertake and report market development activities. Additionally, AB4, also enacted in 1989, contains four basic requirements: 1. The City must require bidders to specify both the total recovered and post -consumer content of paper products (even if zero). 2. Specification should not discriminate against recycled content. 3. City printing contracts must meet the recycled content provisions of AB939. 4. The City must "buy recycled" if a paper product costs no more than comparable non - recycled paper product. Given the implementation of this policy, the City will meet these requirements. 19 RESOLUTION NO. 93-9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, FOR THE ADOPTION OF A POLICY REGARDING THS PROCUREMENT OF RECYCLED PRODUCTS WBEREAS, it is the policy of the City of Santa Clarita to conserve and protect natural resources for current and future citizens;and WHEREAS, the City's participation in and promotion of recycling programs can significantly reduce the volume of material entering the waste stream thereby conserving natural resources and extending landfill life expectancy; and WHEREAS, in order for recycling programs to be effective, markets for recycled post -consumer materials must be developed; and WHEREAS, the implementation of a procurement policy for the City of Santa Clarita would contribute to the conservation and protection of natural resources and support city-wide recycling programs; and WBEREAS, the City's commitment to the purchase of recycled materials will help expand the markets for recycled products and serve as a model for private industry and local businesses; and WHEREAS, State and Federal agencies have implemented procurement guidelines requiring government agencies to buy products made with recycled materials. NOW, THEREFORE, BE rr RESOLVED by the City Council of the City of Santa Clarita, California, as follows: SECTION 1. The City Council hereby adopts the following policy: 20 RECYCLED PRODUCTS PROCURENEENT RESOLUTION I. Definitions of Recycled Content A. Post -consumer recovered materials. A finished material which would normally be disposed of as a solid .waste, having completed its life cycle as a consumer item. Examples of post -'consumer recovered materials include, but are not limited to; used newspaper, office paper, yard waste, plastic bottles, oil, asphalt, concrete and tires. B. Pre -consumer recovered material. Material or by-products generated after manufacturing of a product is completed, but before the product reaches the end-use consumer. examples of pre -consumer recovered materials include, but are not limited to; obsolete inventories of finished goods, rejected unused stock and paper wastes generated during printing, cutting and other converting operations. This category does not include mill or manufacturing trim, scrap or "broke," which is material generated at a manufacturing site and commonly reused within the manufacturing process. For example, pre -consumer paper waste sources are not considered "recycled."' Components of a paper product include, but are not limited to; fibers recovered from waste water, trimmings of a paper machine rolls, sawdust, chips, wood slabs, other wood residue from a manufacturing process, and such materials sold between mills.. C. Total recovered material. The total pre- and post -consumer recovered material contained in a product. II. Recycled Content Preference . It is recommended that the City of Santa Clarita establish a policy, whenever practical, to purchase products which contain, in order of preference, the following: 1. The highest percentage of recycled content of "post -consumer recovered materials," available in the marketplace;and 2. The highest percentage of "pre -consumer recovered materials," available in the marketplace. In those instances where it is deemed impractical to procure a recycled -content item, a specific explanation for the finding must be included in the purchasing record (see "Monitoring and Annual Report" section). III. Price Preference A 10 % price preference may be given to recycled products,reusable products offered as alternatives to disposable products, and products designated to be recycled where they are offered as alternatives to non -recyclable products. The preference percentage shall be based on the lowest bid or price quoted by the supplier offering recycled products. 21 IV. Recyclability and Waste Reduction In addition to the recovered material content of a product, important criteria in selecting products shall also be: 1. The ability of a product and its packaging to be reused , reconditioned for use, or recycled through existing recycling collection programs; and 2. The volume and toxicity of waste and by-products of a given product and its packaging generate in their manufacture, use, recycling and disposal. Products and packaging designed to minimize waste and toxic by-products in their manufacture, use, recycling and disposal shall be preferred. V. Equipment Compatibility Equipment purchased or rented by the City shall be compatible, whenever practical, with the use of recycled content products. If deemed impractical, a specific reason for such a finding must be included in the purchasing record. VI. Purchase Requisition, Specification and Bid Solicitation Product specification and requisitions for products shall conform to the following guidelines: Product specifications and requisitions shall not indiscrimately require the use of products made from virgin materials, nor specifically exclude the use of recycled - content products; ' 2. Performance standards must be reasonable and related to function, and shall not be designed to exclude the purchase of recycled -content products; 3. To the extent such information is known, City staff shall identify to the Purchasing Division (in the Purchase Requisition) products available with recycled content and vendors from who such products are available. 4. Purchasing agents have the authority to specify a minimum "recycled -content" standard in bid solicitations to accomplish the purposes of this policy. VII. Contractors and Grantees All City contractors and grantees shall be required to conform to the minimum recycled - content procurement standards set forth by General Services, Public Works Department. This requirement shall be applied to contractors and grantees in procuring materials or products to perform contractual services for the City, to produce or provide a work product to the City or on the City's behalf, or to conduct work funded by a grant from the City. The list shall be reviewed as needed, but no less than annually, by the City Council (see "Monitoring and Annual Report" section). 22 Contractors and grantees shall be further required to report to the City the types, quantities and total dollar amounts of recycled products which are purchased by the contractor or grantee in connection with City -funded work. The percentage of post -consumer and total recovered material content of such purchased products shall also be required to be included in the report. VIII. Promotion All City purchased and printed recycled paper products shall be labeled with the standard phrase: "Printed on Recycled Paper." All City departments or agencies shall be required to use recycled products for their business cards, masthead stationery, envelopes, business forms and pertinent documents. All said documents shall be printed, with the standard phrase: "Printed on Recycled Paper" thereby promoting the use of post -consumer content. If sufficient documentation and certification is available, reasonable efforts shall be undertaken to specifically indicate the percentage of recycled post -consumer content. In this case, the phrase "Printed on 40% Post -Consumer Recycled Paper" shall appear on all products produced by and for the City. All City requested documents, produced by grantees and contractors shall be produced on post -consumer recycled paper. All contractors and grantees will submit all requested documents to the City on recycled paper. This shall include, but not be limited to drafts, reports, training manuals, bids, responses to inquiries and permit applications. IX. Certification All product providers shall be required to maintain appropriate documentation verifying either the minimum or the exact percentage of post -consumer recovered material and total recovered material contained in products purchased by the City. If no recovered material has been used, then a product provider would certify zero recycled content. Any claims of waste minimization in the manufacture or use of any product shall also be certified. X. Implementation It is recommended that the City Manager develop administrative procedures to achieve the purposes of this resolution and implement the provisions of this policy, including procedures for waiving a requirement of this policy in any necessary circumstance. 23 XI. Monitoring General Services shall prepare and deliver to the City Council an annual status report on implementation of this policy and formalize a recycled products list to aid in purchasing and monitoring goals. The report shall include documentation of the types, quantities, and dollar amounts of recycled products purchased in the previous year by the City, its contractors and its grantees. The report shall also identify and discuss the following: 1. Instances where this policy is waived or its requirements found impracticable; and Barriers to the procurement of recycled -content products. In addition to monitoring and evaluating this procurement policy, the effect of evaluating products for their recycled content, ensuring specifications are non-discriminatory, including the Council's policy in bid solicitations and contracts, and other additional requirements of the policy will affect the Purchasing Division's workload. This will be evaluated as the policy is implemented and recommendations as needed will be brought forward to the Council, to augment staff, if necessary and appropriate. Fiscal Impact The adoption and implementation of this procurement ordinance may impact current budgets. Given the requirements of AB939 and the concern over additional landfill development, and rising disposal costs, these anticipated costs are necessary to conserve and protect natural resources and support the City of Santa Clarita's recycling and market development goals. Conclusion The future of recycling depends upon the creation of stable and sustaining markets for recycled secondary products. It is recommended, therefore, that the City of Santa Clarita enact a procurement policy which supports the development of stable markets for recyclables and supports the City's ongoing recycling ethic and commitment to progressive integrated waste management solutions. 24 SECTION 2. The City Clerk shall certify to the adoption of this resolution and certify this record to be a full, true, correct copy of the action taken. PASSED AND APPROVED this day of MAYOR ATTEST: .y ��'W'' 19 I HEREBY CERTIFY that the foregoing- resolution was duly adopted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the day of , 19 _, by the following vote of the Council: AYES: COUNCIIIEBMBERS: NOES: COUNCILAffiM13ERS: ABSENT: COUNCELMEM BERS: L41 CITY CLERK SM 259 8125 01/13/93 17:20 FAX 805 259 8125 CTY SNTA CLARITA 444 CORP YARD FAX 0002/004 RESOLUTION NO. 91.91 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA. FOR -TRE ADOPTION OF A POLICY REGARDING PROTECTION OF TROPICAL TIMBER WHEREAS, tropical rainforests are being destroyed at a rate of 50,000 acres per day and rainforests larger than the State of California are disappearing from the earth yearly; and WHEREAS, the use of imported tropical timber by the United States represents a substantial Loss of tropical. rainforests, and scientific evidence has shown that the destruction of tropical rainforests is partially responsible for the Greenhouse Effect, as well as Contributing to the death of indigenous rainforest peoples and the destruction of their culture; and WHEREAS; the tropical rainforests are home to half Of the world's species, and the loss of these forests. results in the extinction of teas of millions of species= and WHEREAS, it is in the interest of those who lives work, and do business in the City that measures be taken to reduce or stop the destruction of tropical rainforests worldwide= and WHEREAS, a ban an the use of tropical timber by the City would reduce demand for tropical timber, thus lessening the need to cut more tropical rainforest;. and WHEREAS, such a ban would not create shortages of building supplies, as alternative wood products are grown in a substantial fashion in temperate forests; and WHEREAS, the ban would stimulate businas■ and provide jobs in the United States, ae many alternatives to tropical hardwoods are:grown domestically. NOV, THEREFORE, HE IT RESOLVED by the City Council of the City of Santa Clarita, California, as follows: SECTION,l. The City Council hereby adopts the fallowing policys' A. The City of Santa Clarita shall not purchase any item or product which has originated in part or whole from any tropical hardwood species listed in this section. nor shall and City sponsored event utilize such products, nor shall City Public Works contractors utilize such products. E. Tropical hardwood species include, but are not limited to the following$ SW 259 8125 01/13/93 17:21 FAX 805 259 8125 CTY SNTA CLARITA +i+ CORP YARD FAX Scientific Name Common Name Vouacapoua Americana Acapu Pericapsis Elata' Afrormosia Shores, Almon Almon Peltogyne Spp, Amaranth Guibourtia Ehie Amazaque Aningeria Spp. Aningeria Dipterocarpus.Grandiflorus Apitong Ochrama Lagopus Balsa Virols Spp. Banak Anisoptera Thurifera Sella Rosa Guibourtia Arnoldiana Benge Detarium Senegalese Boire Guibourtia.Demeusii Bubinga Prioria Ccpaifera Cativo Ant14ris African Cbenchen Dalbergi& Retusa Concobolo Cordia Spp. Cordia Diospyros Spp. Ebony Auccumea Klaineanal Gaboon Chlorophora Excelaa Iroko Acacia Kea Kos Pterygota Macrocarda Roto Shore& Negrosensis Red Lauan Pentacme Controta Vhite Let, -- Shores, Polyspermy Tanguile Terminalis, Superba Limbs, Aniba Duckei Louro Ehaya Ivorensis Africa Mahogany Svietenia.Macrophylla Amer. Mahogany Tieghemell& Heckelii Makare Distomonaathus 8enthsmianus Movingui Pterocarpus Soyauxii African Paduak Pterocarpus Angolensis Angola Paduak Aspidosperma Spp. Peroba Peltogyne Spp. Purpleheart Gonystylus Spp. Ramin Dalbergis, Spp. Rosevood Entandrophragma Cylindricun Sapele Shores Philippinansis Sonora Tectona Grandis Teak Lovoa Trichiliodes Tigerwood Milletia Laurentii Venge Hicroberlinia Brazzavillensis Zebrawood IMOOJ/00{ C. Exemptions: The Council may exempt an item or product from the requirements of this section upon evidence that such item or product has no acceptable non -tropical wood equivalent. or is required in a designated historical building= and D. Directing City staff to modify its procedures regarding purchasing by requiring each wood vendor to note on each invoice for wood products supplied to the City of.Santa Clarity the identity of the manufacturer of 865 259 8125 01/13/99 17:21 FAX 808 259 8125 CTY SNTA CLARITA ++4 CORP YARD FAX 0004/004 the products, and that the material supplied is not tropical wood, and each Public Vorks general contractor shall certify that no tropical hardwoods are being used by prise or subcontractors in the awarded project. SECTION 2. The City Clerk shall certify to the adoption of. this resolution and "certify this record to be a full. true, correct copy of the action taken. PASSED AND APPROVED this 8th day of October , 1991 MAYOR ATTEST: I HEREBY CERTIFY that the foregoing Resolution wag duly adopted by the City Council of the City of .Santa Clarita at a regular meeting thereof, held on the 8th day of October 19 91, by the following vote of the Council: AYES: COUNCILI MBERS: Da=y, Wdt, K1aj4.GP McReoq, Hoyer HOES: COUNCII.M MEMS: mom y ABSENT: COUNCILMEMBERS: Nave TYCLERY SECTION 11.0 STANDARD MANAGEMENT FROCEDURE:CONTRACTS & AGREEMENTS DEPARTMENTS AFFECTED ALL I. PURPOSE To improve a method to insure that all contracts for capital improvements are executed properly. II. GENERAL The City will be entering into contracts and agreements for Public Works/Capital Improvements Projects. in. POLICY A. Original bids for successful and unsuccessful bidders for capital improvements shall be kept in the office of the City Clerk. B. The City Clerk shall be responsible for notifying the successful bidder. The department responsible for the capital Improvement shall notify the unsuccessful bidders of the award of the contract. C. The department shall be responsible for obtaining the contractors signatures. D. The City Clerk shall be responsible for obtaining signatures on behalf of the City, E. The method of affixing signatures to contract documents shall be as follows: Attest: (Same Line) City Clerk Date Approved as to form: City Attorney City of Santa Clarita City Manager (Mayor) TYPE NAME OF CORPORATION IN CAPS AT THIS LINE BY (Title) BY (Title) 29 IV. PROCEDURES A. The successful bid accepted by the City Council shall be filed in the City Clerk's office, along with the Minute Order adopted by Council. B. The department responsible for the project shall secure the following from the contractor: 1. Signature of contractor and notarization 2. Faithful Performance Bond 3. Labor and Material Bond 4. Insurance Certificate If this is done by mail,, a copy of the transmittal letter shall be sent to the City Clerk. C. After obtaining the contractor's signature, the department responsible shall contact the County Clerk for verification of the surety, attorney-in-fact and the amount of the Faithful Performance Bonds: The department shall attach a note, indicating the time, date and person who called, to the original contract document. D. The City Clerk shall secure signatures of the Mayor and/or City Manager and City Attorney. E. The City Clerk will file one original contract, mail one executed original and minute order to the contractor and will send an original contract to the department responsible. F. When the work is completed: Notice of Completion is issued. a. Notices of Completion shall be recorded by the City Clerk b. A copy of the recorded Notice of Completion will be sent to Finance and the department. V. AUTHORITY By order of the City Manager Initiated By City Manager City Clerk 30 STANDARD MANAGEMENT PROCEDURE: CONTRACTS & AGREEMENTS STANDARD INSURANCE CLAUSES DEPARTMENTS AFFECTED ALL I. PURPOSE To provide uniform language relative to insurance in contracts and agreements, other than Public Works construction contracts, between the City of Santa Clarita and second parties, where such provisions are of a routine nature and frequently incorporated in such documents. H. GENERAL The City has entered into contracts and agreements for professional and other services. There has been a lack of consistency in the way in which insurance sections are written. Problems have arisen in particular with obtaining the required insurance coverage. III. POLICY A. Department preparing contracts and agreements, other than Public Works construction, shall attempt to conform to the uniform language set forth in this procedure, if applicable, in addition to any other provisions which may be desired in such documents. B. The City Attorney shall be consulted regarding the, language of the document prior to obtaining signatures of the second party. C. Insurance shall be required in all contracts and leases in amounts sufficient to protect the City's risk involved in implementation of the agreement. D. In ascertaining minimum limits of the liability, the following shall apply: 1. $1,000,000 per occurrence General Liability to include bodily injury, death, property damage, errors and omissions, and professional liability. 2. Automobile Coverage - comprehensive and physical damage at $500,000 each occurrence. 3. Workers Compensation - $250,000 per occurrence. In lieu of above $1 million combined single limit. 1. The extent of insurance coverage required shall be approved by the City's Risk Management Officer prior to preparation of any contract, lease, request for proposal or bidding document. E. Certificates of Insurance illustrating that outlined in Section D shall be submitted to the City Clerk, together with the vendor's signed copies of the agreements. 31 F. The City Clerk shall, with the assistance of the responsible department, obtain renewals or replacements of such certificates of insurance prior to expiration and/or cancellation of coverage. G. 'Ile term "secondary party" in the following basic clauses should be substituted by a designation deemed appropriate by the department; ie, professional, engineer, contractor, etc. H. In preparing contracts and agreements, insurance provisions should be typed in continuous sequence and not throughout the document. I. The basic Liability Insurance clause shall by typed, as follows, provided that the amounts of coverage shown shall be subject to contracts and agreements. Liability Insurance During the entire term of this agreement, (second party) agrees to procure and maintain General/Public and Professional public liability insurance at its sole expense to protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of the City or (second party), its (sub -second parties) or any person acting for the City; or (second party) or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of the City , or (second party), or under its control or direction. Such public liability and property damage insurance shall also provide for and protect the City against incurring any legal cost in defending claims for alleged loss. Such General, Public and Professional liability and property damage insurance shall be maintained in full force and effect throughout the term of the Agreement and any extension thereof in the following minimum limits: A combined single limit policy with coverage limits in the amount of $1,000,000 per occurrence will be considered equivalent to the required minimum limits. All of such insurance shall be primary insurance and shall name the City of Santa Clarita as an additional insured. If the operation under this Agreement results in an increased or decreased risk in the opinion of the City Manager, then (second party) agrees that the minimum limits herein above designated shall be changed accordingly upon request by the City Manager. (Second party) agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to which the (second party) may be held responsible for the payment of damages to persons or property resulting from (second party's ) activities, the activities of its (sub -second parties) or the activities of any person or persons for which (second party) is otherwise responsible. 32 J. The basic Worker's Compensation Insurance clause shall be typed, as follows: Worker's Compensation Insurance The (second party) shall procure and maintain, at its sole expense, Worker's compensation Insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the (second party) and the City against any loss, claim or damage arising from any injuries or occupational diseases happening to any worker employed by the (second party) in the course of carrying out the within agreement. K. The basic Fire and Extended Coverage clause shall be typed as follows: (PRIMARILY FOR CONSTRUCTION CONTRACTS) Fire & Extended Coverage Insurance Lessee also agrees to procure and maintain, at its sole expense, during the.term of this Agreement, and any extension thereof, a policy of fire, extended coverage and vandalism insurance on all permanent property, of Lessee's of an insurable nature located upon the leased premises. Said policy shall be in an amount sufficient to cover at lease eighty percent (80%) of the replacement costs of said property. Lessee agrees to pay the premium for such insurance and shall require that any insurance proceeds resulting forma loss user said policy are payable jointly to City and Lessee and said proceeds shall constitute a trust fund to be reinvested in rebuilding or repairing the damaged property or said proceeds may be disposed of as specified in paragraph following, entitled 'Waste, Damage or Destruction," hereto; provided, however, that within the period during which there is in existence a mortgage upon the leasehold, then and for that period all policies of foe insurance, extended coverage and vandalism shall be made payable jointly. to the mortgagee or beneficiary, the named insured, and City, and shall be disposed of jointly by the parties for the following purposes: 1. As a trust fund to be retained by said mortgagee or beneficiary and applied in reduction of the debt secured by such mortgage with the Lessee and City to pay for reconstruction, repair, or replacement of the damaged or destroyed improvements in progress payments as the work is performed. The balance of said proceeds shall be paid to Lessee. Provided, further however, nothing herein shall prevent Lessee, at its option and with the approval of said mortgagee or beneficiary and City in an amount equivalent to said insurance proceeds in lieu of surrendering said.insurance proceeds to said mortgagee or beneficiary and City. 2. In the event that this lease is terminated by mutual agreement and said improvements are not reconstructed, repaired or replaced, the insurance proceeds shall be jointly retained by City and said mortgagee or beneficiary to the extent necessary to first discharge the debt secured by said mortgage or deed of trust and then to restore the premises in a neat and clean condition. Said mortgagee or . beneficiary shall hold the balance of said proceeds for City and Lessee as their interests may appear. 33 Lessee agrees to increase the limits of liability when, in the opinion of the City Manager, the value of the improvements covered is increased, subject to the availability of such insurance at the increased limits; provided, however, that the (second party) may appeal to the City Council within 10 days after any increased is requested and such requirement for increased coverage shall be subject to determination by the City Council. L. The basic Automotive Insurance clause shall be typed as follows: Automotive Insurance The (second party) shall procure and maintain, at its sole expense, throughout the term of this agreement and any extension thereof public liability and property damage insurance coverage for automotive equipment with coverage limits of not.less $500,000 combined single limit. All such insurance shall be primary insurance and shall name the City of Santa Clarita as an additional insured. M. The basic Evidence of Insurance clause shall be typed, as follows: Evidence of Insurance A certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City's Risk Management Officer shall be submitted to the City prior to execution of this agreement on behalf of the City. N. The basic Notice to City, Insurance Coverage Change clause shall be typed, as follows: Notice to City. Insurance Coverage Change The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier, for non-payment of premiums otherwise, without thirty (30) days prior written notice of amendment or cancellation to the City. In the event the said insurance is cancelled, the (second party) shall, prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. O. The basic Independent Contractor clause shall be typed, as follows: The (second partyl - An Independent Contractor It is understood and agreed that the (second party) is , and at all times shall be, and independent contractor and nothing contained herein shall be construed as making the (second party), or_any individual whose compensation for services is paid by the (second party), an agent or employee of the City, or authorizing the (second parry) to create or assume any obligation for liability for or on behalf of the City. 34 P. The basic Hold Harmless clause shall be typed, as follows: Hold Harmless (Second party) agrees to indemnify, defend and save City and its agents and employees barmless from any and all liability, claims, damages or injuries to any person, including injury to (second party's) employees and all claims which arise from or are connected with the performance.of or failure to perform the work or other obligations of this agreement, or are caused or claim to be caused by the acts or omissions of (second party), its agents or employees, and all expenses of investigation and defending against same; provided, however, that this indemnification and hold harmless shall not include any claim arising from the sole negligence or willful misconduct of the City, its agents or employees. Q. The basic Performance Bond clause shall be typed, as follows: Performance Bond KNOB' ALL MEN BY THESE PRESENTS that as CONTRACTOR and as SURETY, are held and firmly bound unto the dollars, ($ ), which is one -hundred percent of the estimated project amount for the above stated project, for the payment of which sum, CONTRACTOR and SURETY agree to be bound, jointly and severally, firmly by these presents. THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas CONTRACTOR has been awarded and is about to enter into the annexed Contract Agreement with CITY FOR THE ABOVE STATED PROJECT, IF CONTRACTOR faithfully performs and fulfills all obligations under the contract documents in the manner and time specified therein, then this obligation shall be null and void, otherwise it shall remain in full force and effect, shall be payable upon demand in favor of theCity upon written notice the bidder and surety; provided that any alterations in the obligations or time for completion made pursuant to the terms of the contract documents shall not in any way release either CONTRACTOR or SURETY, and notice of such alterations is hereby waived by SURETY. 35 s IV IN WITNESS WHEREOF the parties hereto have set.their names, titles, hands and seals the day of., 19_ CONTRACTOR* SURETY* SUBSCRIBED AND SWORN TO THIS _ DAY OF , 19_ NOTARY PUBLIC Provide Contractor/Surety name, address and telephone number and the name, title, address and telephone number for authorized representative. R. Exceptions Exceptions to the policy may be made upon the written authorization of the City Manager. If applicable, it may be required for the City Council to provide for exceptions. All potential exceptions will be reviewed on a case by case basis. AUTHORITY By order of the City Manager Initialed By: City Manager City Clerk 36 r Risk Manager STANDARD MANAGEMENT PROCEDURE:CONTRACTS & AGREEMENTS CONTRACTS & AGREEMENTS - GENERAL aff ��,��� All 1. Pumose To provide a method to insure that all contracts and agreements entered into by the City are executed properly. II. General The City will be called upon to enter into contracts and agreements of a general nature. III. Policy A. Contracts and agreements of a general nature - not Public Works contracts - shall be drafted by the department concerned and submitted to the City Attorney for checking. B. After the final draft has been prepared, a minimum of two copies shall be signed by the outside party before going to Council. 1. Where contracts are signed by a corporation, one corporate official must sign. The department head is responsible for getting vendor signatures. 2. Documents not properly signed will be returned to the department, together with the agenda report which should accompany the signed contract. 3. Insurance must be provided in all contracts before City executes contract. The insurance shall be in amounts sufficient to protect the City's risk involved in implementation of the agreement. C. Executed contracts will be distributed in the following manner: 1. Original to City Clerk for filing 2. Original to vendor 3. Copy to department 37 D. The method of affixing signatures on contract documents will be as follows: Attest: City of Santa Clarita City Clerk City Manager Date Approved as to form City Attorney TYPE NAME OF INDIVIDUAL OR CORPORATION IN CAPS AT THIS LINE By Title By Title Notary Statement Form Attached, E. All contracts signed by the City Manager shall fust be reviewed and approved by the City Attorney and department head responsible for administering the contract. F. Contracts are then forwarded to the City Clerk. IV. Procedure A. The originally typed agreements, signed by the vendor, notarized and approved as to form and signed by the City Attorney should be forwarded to the City Clerk, together with the required number of copies, at the time the City Council agenda report and/or resolution are sent. B. Following approval of the agreement by City Council, the City Clerk's office will be responsible for signing, certification and filing. 1.. A fully executed copy of the agreement will be furnished to the department originating the document. C. Unless specifically requested to do otherwise, an executed copy of the agreement will be ,.furnished to the second parties by the City Clerk. W, V. Authority By order of the City Manager City Manager we Initiated by: City Clerk SECTION 12.0 SUPPLIER RELATIONS I. SCOPE This section provides guidelines for employees participating in transactions on behalf of the City. H. Antitrust Laws Violations of the antitrust laws in any of the City's operations may have far- reaching effects, causing substantial injury to the City in lengthy and expensive litigation, treble damage liability and injunctions or orders affecting property and/or business. An employee who participates in an violation is individually and personally subject to fine or imprisonment. Each employee responsible for the City's conduct or practices which may involve the application of antitrust laws, should consult and be guided by the advice of legal counsel. Personnel performing a purchasing function shall not demand or negotiate a special pricing structure from a supplier that the supplier is not willing to offer to other customers under similar conditions and terms. M. Conflict of Interest Employees engaged in the purchasing function are expected to be free of interests or relationships which are actually or potentially inimical or detrimental to the best interests of the City, and shall not engage or participate in any commercial transaction involving the City in which they have a significant undisclosed financial interest. Any employee engaged in purchasing who has assumed, or is about to assume, a financial or other outside business relationship that might involve a conflict of interest, must. immediately inform the supervisor of the circumstances involved. This information is to be reviewed at an appropriate level for decision on whether a conflict ,of interest is present and, if so, what course of action is to be taken. In this connection, a conflict of interest exists where an employee: A. Has an outside interest that materially encroaches on time or attention which should be devoted to the affairs of the City. B. Has a direct or indirect interest in or relationship with an outsider that is inherently unethical or that might be implied or construed to be, or make possible personal gain due to the employee's ability to influence dealings; render the employee partial toward the outsider forpersonal reasons or 40 otherwise inhibit the impartiality of the employee's business judgement; place the employee or the City in an equivocal, embarrassing or ethically questionable position; or reflect on the integrity of the City. C. Takes personal advantage of an opportunity that properly belongs to the City. D. Uses the City property without approval. IV. Supplier Samples When suppliers offer samples for evaluation, they will be accepted only under the following conditions: A. The product is one which is of a type presently in use or is of potential use to the City. Samples of goods not likely to be purchased are not accepted. B. The quantity or size of the sample is relatively small and of low value. The object of a sample is the examination of its fitness for our service - not to provide an inventory of the material. C. Any chemical offered as supplier samples shall not be accepted unless accompanied by an OSHA Product Safety Data Sheet. (must be kept on file with individual department accepting sample) D. If supplier samples are accepted, they shall be promptly conveyed to appropriate department for testing. Personal use of samples is forbidden. The supplier is entitled to a prompt evaluation of his sample, and he shall be accorded this. In the event a sample is requested. from a supplier to evaluate its applicability to a particular situation, such samples hall be purchased. V. Supplier Transactions It is our policy to maintain and practice the highest possible standards of business ethics, professional courtesy and competence in all of our dealings. At all times, applicable laws must be scrupulously observed. In this regard, the following should be observed when dealing with suppliers and their representatives: A. Accord prompt and courteous reception as well as fair and equal treatment, to all suppliers and their representatives. B. Provide equal opportunity for all suppliers to make price and specification quotations. C. Guarantee the confidentiality of all specifications and price quotations made by suppliers until all quotational are received and the order is placed. 41 D. Explain as clearly as possible to suppliers the reason for rejection of their quotations. E.. Remain scrupulously free from obligations to any supplier. F. If, for any reason, one supplier is permitted to re -quote, his competitors will be given the same opportunity. Re -quoting should be restricted to an absolute minimum. 42 APPENDIX A • • • t• a tr+ SUPPLIES, SERVICES, EQUIPMENT PURCHASES UNDER $20' `dam A. Petty Cash -or- B. Field Purchase Order -or- C. Check Request � PURCHASES OVER $30y^UNDER $500 A. Field Purchase Order -or- B. Check Request PURCHASES OVER $500 UNDER $2,000 A. 1. Three (3) verbal quotes (noted on Purchase Requisition) 2. Purchase Requisition (Authorized by signing authority) 3. Purchase Order. PURCHASES OVER $2,000 UNDER $10,000 A. 1. Three (3) written quotes (attach to Purchase Requisition) 2. Purchase Requisition authorized by Department Head 3. Purchase Order PURCHASES OVER $10,000 A. 1. Product/Service Specifications 2. Formal Bid Process 3. Copy of approved agenda item 4. Purchase Requisition 5. Purchase Order ::: A. All limits are inclusive of freight and exclusive of taxes B. Quotes should be submitted with the Purchase Requisition or can be obtained (negotiated) by General Services upon receipt of the written specifications. CONSULTANT SERVICES PURCHASES UNDER $20,000 A. 1. Contract (signed by City Manager) 2. Purchase Requisition (authorized by signing authority) 3. Purchase Order PURCHASES OVER $20,000 A. 1. Contract 2. City Council Approval 3. Purchase Requisition 4.. Purchase Order A. Quotations are not necessary for Consultant Services but are recommended in the event negotiations are unsuccessful with the most -qualified consultant. Should negotiations prove unsuccessful, a written notice formally terminating negotiations shall be given, and negotiations shall commence with the next qualified firm. -and- B. All contracts must be approved by the City Attorney and signed by the City Manager prior to issuing a Purchase Order. Appendix A Page 2 PUBLIC WORKS PROJECTS PURCHASES UNDER $15,000 A. 1. Specifications 2. Purchase Requisition (authorized by signing authority) 3. Purchase Order PURCHASES OVER $15,000 UNDER $50,000 A. L' Specifications 2. Three (3) written quotes (attached to Purchase Requisition) 3. City Manager approval 4. Purchase Requisition (authorized by signing authority) 5. Purchase Order PURCHASES OVER $50,000 A. . 1. Specifications 2. Formal Bid Process 3. Purchase Requisition with copy of approved agenda item (authorized by signing authority) 4. Purchase Order GENERAL A. All Purchase Requisitions shall be authorized by the Director or designee of the requesting department. B. All contracts shall be approved by the City Attorney and signed by the City Manager prior to issuing a Purchase Order. Appendix A Page 3 APPENDIX C FOR PUBLICATION THREE TAM Friday, November 15, 1991 Wednesday, November 20, 1991 Monday, November 25, 1991 REQUEST FOR PROPOSALS Sealed proposals will be received until 5:00 pm on Monday, December 2, 1991, by the City Clerk of the City of Santa Clarita, 23920 Valencia Boulevard, Suite 300, Santa Clarita, California, 91355. Records Management Program The City of Santa Clarita is seeking proposals from qualified Records Management Consultant firms. Santa Clarita was incorporated December 15, 1987 and has a challenging requirement to set up a Records Management Program in all functional City departments. Those consultants interested in being considered for these services are required to submit a proposal in accordance with the scope of the proposal. All proposals must be received in the office of the City Clerk no later than the close of business (5:00.pm) on Monday. December 2. 1991. Proposers shall submit their proposals in triplicate to the City Clerk, in a sealed envelope marked in the outside "Records Management RFP". Please note that this Request For Proposal is not a competitive bid request. The City may choose to utilize a certain firm based on review of each proposal, references and qualifications. Questions regarding the Request For Proposals should be directed to: Donna M. Grindey, City Clerk City of Santa Clarita 23920 Valencia Blvd., Suite 301 Santa Clarita, CA 91355 (805) 255-4391 The Daily News The Signal CITY OF SANTA CLARITA REQUEST FOR PROPOSALS Records Management Program The City of Santa Clarita is seeking proposals from qualified Records Management Consultant funis. Santa Clarita was incorporated December 15, 1987 and has a challenging requirement to set up a Records Management Program in all functional City departments. Scope of Work This is an invitation for your firm to submit a proposal to the City of Santa Clarita for Records Management. The City currently uses an Alpha filing system. Each department currently has their own independent records system. The applicant must be able to perform the following but may not be limited to: 1 - Develop the goals, objectives, policies, and responsibilities of the program 2- Meet with staff to discuss and receive input in the needs of various departments 3- Conduct an inventory of records Citywide. This would also include off site records. Provide recommendations for a uniform system. 4- Train staff on the proper filing and maintenance procedures established by this system. 5- Develop a Procedures Manual 6- Develop an efficient retrieval of information from active files within the departments and inactive files transferred to what would be a Records Center. 7- Provide a system which would be compatible with the City's Wang computer system. Those consultants interested in being considered for these services are required to submit a proposal in accordance with the scope of the proposal. All proposals must be received in the office of the City Clerk no later than the close of business (5:00 pm) on Monday, December 2, 1991: Proposers shall submit their proposals in triplicate to the City Clerk, in a sealed envelope marked on the outside, "Records Management RFP". Appendix C Page 2 Instructions to Proposers Please include the following with your proposal: A section indicating your experience in providing requested services to other jurisdictions. Please include a reference list and a contact person. Resumes of individuals who are under your supervision. Be able to establish a close professional working relationship with City staff Insurance coverage information for auto liability, workman's compensation, errors and commissions. A precise description of services to be provided must be given. A complete fee schedule for services. We appreciate your taking the time and effort in any response you may wish to provide. please note this request for proposals is not a competitive bid request. The City may choose to utilize a certain firm based on review of each proposal, references, and qualifications. Questions regarding the Request For Proposals should be directed to: Donna Grindey, City Clerk City of Santa Clarita 23920 Valencia Blvd., Suite 301 Santa Clarita, CA 91355 (05) 255-4391 Appendix C Page 3 APPENDIX D FOR PUBLICATION THREE TIMES Wednesday, August 19, 1992 Sunday, August 23, 1992 Wednesday, August 26, 1992 NOTICE INVITING BIDS Sealed bids will be received until 11:00 AM on Thursday, September 10, 1992, by the City Clerk of the City of Santa Clarita, 23920 Valencia Boulevard, Suite 301, Santa Clarita, California, 91355, at which time they will be publicly opened and read at said address for the purchase of: GS -92-93-07 3/4 TON PICK-UP TRUCK Specifications may be picked up at the City of Santa. Clarita, Field Services Facility, General Services Division, 25663 Avenue Stanford, Santa Clarita, California, 91355, at a non- refundable fee of $25.00 each or mailed at a non-refundable fee of $35.00 each. Specifications can be mailed overnight if requested by phone (805) 294-2500. Please refer to specifications for complete details and bid requirements. The specifications in this notice shall be considered a part of any contract.made pursuant thereto. Donna M. Grindey City Clerk Daily News Newhall Signal bidinvit.dmw CITY OF SANTA CLARITA T NVITATION'TO NID BID 9 -%5-,- 92 —15 BID OPENING:_ MARCH 12.1992 The City of Santa Clarita invites sealed bids for: (1) 3/4 TON PICK—UP TRUCK Terms of payment: Subtotal' Delivery: Text TOTAL' 1 1. Return original of gid to: City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355 2. Prices shall be F.D.$. Destination or for the service rendered. 3. Bid prices shall be honored by bidder for sixty (60) days or for the stated contract period. <. Bids must be on this Bid fore and be signed by the vendors authorized representative. BIDDER TO READ 1 have, read, understood, and agree to the terms and conditions on ail pages. of this bid/proposal. The undersigned. agrees to furnish the coasnodity or service stipulated on this bid/proposal as stated above. - Company Address: Name (Print): Company Phone No.: signature' Title of Person signing g Appendix D Page 2 1 I Bid No:fZ-aL-_n15 BID INSTRUCTIONS 1. Alternatives: Any changes or alternatives must be forth in a letter attacked to this bid. The City has the option of accepting or rejecting any alternat-ive bid. 2. Preparation: All proposals must be typed or written in black ink. Errors may be crossed out and corrected in ink, then initialed in ink by the person signing the bid. - 3. Submitting Proposals: (a) the bid must be submitted on this form (attachments. accepted) in a sealed envelope with the bid number and closing date on the outside. (b) Proposals/ corrections received after the closing time will not be opened. 6. Failure to Submit Bid: Your name may be removed from the mailing list if the City receives no response to this bid. S. Rejection:The City reserves the right to reject any or all bids and to waive any informality in any bid. 6. Taxes. Charges and Extras: (a) Bidder shall show as a separate item California State Sales and/or Use Tax. (b) The City is exempt from Federal Excise Tax. (c) Charges for transportation, containers, packing, etc. will not be paid unless specified in bid. 7. Awards: The City reserves the right to make an award based on partial items unless the bid submitted is marked "All or none." - 8. Default- In case of default by the vendor of any of the conditions of this bid or contract resultingfrom this bid, the vendor agrees that the City may procure the articles or services from other sources and may deduct from the unpaid balance due the vendor, or collect against the bond or surety, or may invoice the vendor for excess costs so paid, and prices paid by the City shall be considered the prevailing market price at the time such purchase is made. 9. Assignment: No assignment by the vendor of contract or any part hereof, or of funds to be received hereunder, will be binding upon the City unless such assignment has had prior written approval and consent of the City. 10. Termination: The City reserves the right to terminate any service or requirement contract resulting from this bid without penalty upon thirty.(30) days written notice to the vendor. 11. Indemnification: The bidder guarantees and agrees to indemnify, defend and hold harmless the City and its elected and appointed officers, agents and employees against any or all loss, Liability, damages, claims or costs arising out of defective material and products, faulty work performance, negligent or unlawful acts, and non-compliance with any applicablelocal, state or federal codes, ordinances, orders or statutes including the Occupational safety and Health Act (OSHA) and the California Industrial Safety Act. This guarantee is in addition to and not intended as a limitation on any other warranty, expressed or implied. 12. Non -Discrimination:. Bidder agrees that the "Certification of Non -Discrimination by Contractors" attached and executed by bidder and on file with the City is specifically made a part of the bid by this reference. 13. Bonds. when deemed necessary by the City, bid bonds shall be furnished by all bidders in the amount of at least 10% of the bid to guarantee that bidders will enter into contract to furnish goods at prices stated. likewise, a Performance Bond shall be required of the successful' bidder when stated in the specification (cash deposit, certified or cashier's cheek or money order may be substituted in lieu of either bond). 14. Payment: (a) Bidder shall state payment terms offered. (b) Payment will be made on the pay period after receipt and acceptance of goods and/or services and upon using department confirmation of such acceptance. 15. On -Site Inspection: City has designated an on-site inspection date and time. Bidder is responsible for inspecting and understanding the total scope of the projects (i.e., specifications, quality, and quantity of work to be performed.) Appendix a n,_ Bid No: a-gi_; a-15 810 INSTRUCTIONS (continued) 16. Saeoifieatiens: Materials differing from stated specifications may be considered, provided such differences are clearly noted and described, and provided further that such articles are i1 considered.by the purchasing agent to be in all essential respects in compliance with the " specifications. 17. The use of the name of a manufacturer, or any specific brand or make, in describing any item contained in the proposal does not restrict bidders to that manufacturer or specific article, this means is being used simply to indicate a quality and utility of the article desired; but the goods on which bids are submitted must in all cases be equal in quality and utility to those referred to. Exception is made on those items wherein identical supply has been determined a necessity and the notation NO SUBSTITUTE has been entered. 18.. The City reserves the right to reject the bid of any bidder who has previously failed to perform properly, or complete on time, contracts of a similar nature, or to reject the bid of a bidder who is not in a position to perform such a contract satisfactorily. The City expressly reservesthe right to reject the bid of any bidder who is in default of the payment of taxes, licenses or other monies due to the City of Santa Clarita. 19. If at any time during the life of this contract, the successful bidder reduces his price or prices to others purchasing approximately the same- quantities as contemplated by this contract, the contract prices shall be reduced accordingly, and the contractor/vendor will immediately notify the purchasing agent, City of Santa Clarita. 20. Prices bid shall remain firm through the first 40 day period of this contract. If at any time during the remaining months of the contract, should there be an industry—wide increase in prices to jobbers or wholesalers, unit prices shown herein may be increased by the same percentage. Such increases under this contract shall be effective only after receipt of certified manufacturer's price increase by the purchasing agent, City of Santa Clarita. 21.. Supplier agrees to comply with the provisions of the Occupational Safety and Health Act of 1970 (or latest revisions), the State of California Safety Orders, and regulations issued thereunder, and certifies that all items furnished under this bid will conform and comply with the indemnity and hold harmless clause for all damages assessed against buyer as a result of suppliers failure to comply with the Act and the standards issued thereunder and for the failure of the items furnished under this order to so comply. 22. Contract delivery shall begin no later than fifteen (15) days from receipt of order. Unless otherwise specified, delivery shall be, FOB, the site of user division. The bidder will not be held liable for failure to make delivery because of strikes, conscription of property, or acts of God. Appendix D Page 4 CITY OF SANTA CLARITA The City of Santa Clarita is in need of a 3/4 -ton pickup truck with automatic transmission. It is very important to receive this vehicle as soon as possible. As a result, delivery will be an important factor in the award of the bid. Please try to obtain any 199l -or newer vehicle that will met the following specifications as close as possible. Please list any exceptions from the requested specifications to the right of the listed requirements. The City of Santa Clarita reserves the right to assess $35 per day liquidated damages for failure to deliver the vehicle in the specified time limit. 3/4 -TON PICKUP SPECIFICATIONS State Compliance and/or Specifications 1. ENGINE . A. Minimum V8 350 cubic inch B. Fuel: Gasoline C. Oil Filter: Replacement spin -on type D. Air Filter: Replacement paper element E. Radiator: Factory installed. Heaviest available cooling system. Coolant recovery system, 1/2 gal. min. reservoir capacity F. Auxiliary oil cooler Performance Factors Please state: a. Fuel E.P.A. rating-City/Highway b. Factory recommended oil change interval C. Crankcase capacity d. Factory recommended air cleaner replacement interval e. Factory recommended chassis lube interval f. Factory recommended fuel filter replacement interval g. Engine brake horsepower rating Appendix D Page 5 -2- 2. ' TRANSMISSION . A. Heavy-duty three -speed automatic, overdrive acceptable B. Auxiliary oil cooler 3. SUSPENSION - 3/4-I on (Heavy duty) A. G.V.W. - Minimum of 8,600 lbs. B. Wheelbase - Minimum of 130" to maximum of 137" C. Front stabilizer bar D. Payload range - minimum 4203 lbs -5000 lbs E. Trailer towing package 4.RB AKES'(Heavy duty) A. Power assisted front disc and rear drum brakes 5. STEERING A. Power steering 6. BODY (Exterior) - Long Bed A. Fleetside bed, min. 96" long, double-wall construction B. Paint: solid color - White/beige C. Mirrors: low profile swing -away right and left side, painted or bright finish D. Molding: side moldings, door edge guards and roof drip moldings E. Glass: tinted all around F. Undercoatings: full length G. Windshield wipers: 2 -speed with electric washer, intermittent H. Bumper: front and rear I. Minimum draw weight: 500 Is . Appendix D Page 6 -3- 7. AB, (Interior) A. Seat: heavy-duty construction with heavy-duty vinyl covering, bench type B. Sunvisors: two (2) C. Mirror: rearview D. Door: armrest, each door E. Flooring: rubber or vinyl F. Hood release: inside G. Headliner H. Air Conditioning -factory installed 8. ELECTRICAL A. Twelve (12) volt system B. Battery: maintenance -free with minimum 500 cold -cranking amps and 65 amp hrs rating Ampiitlsi � . Cold-cranldng amps C. Alternator: minimum 85 amp, state amps D. Radio: AM/FM - factory installed E. Instrumentation: gauges (oil, fuel, alternator and temperature) F. Domelmap light G. Hot water/fresh air heater, defroster 9. TIRES AND WHEELS A. Five (5) eight -ply tubeless blackwall tires adequate for GVW rating specified B. Tires to be mounted on standard wheels adequate for GVW rating specified C. Standard wheel covers for four (4) of the wheels. Spare tire to be mounted and stored on standard carrier beneath vehicle D. Three (3) -ton hydraulic jack in lieu of standard bumper jack Appendix D Page 7 -4- A. Install two (2) fourteen (14) -gauge wires to roof mounted lightbar in the center of the cab's roof (air jet, two lights). B.. Add a warning or indicator light installed in cab to be lit when lightbar is on. Appendix D Page 8 BID OPENING C PROJECT NO.B N, LIST BID DATE SET MAILED OR NO. PICKED.UP 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 1s 19 20 21 22 23 24 25 OF ADDRESS A x ro rn � v a a PRICE: PICK UP: a�,yp MAILED:_ 34L PHONE CITY OF SANTA CLARITA RECORD OF BID OPENING BID FOR: GS 91-92-15 Pick -un Truck DATE: 3-12-92 TINE OF BID OPENING: 11:00 a.m. PERSONS PRESENT: Donna Grindey. City Clerk Krvstvna Ghahremani. Clerk Typist FULLER FORD SCOTT IRVIN VALENCIA DODGE PARKWAY GMC APPARENT LOV BIDDER:_ VALENCIA DODGE BUDGETED ESTIMATED ATTEST: /7 AMOUNT $15.870.53 $17.333.42 S15.098.93 $15.098.93 Dodpa M. Grifidey' City Clerk Appendix D CITY OF SANTA CLARITA Page 10 AGENDA REPORT City Manager Approval Item to be presented by: 4e Jeff Kolin 5 �1 ate-�44h CONSENT CALENDAR DATE: APRIL 28,1992 SUBJECT: PROCUREMENT OF (1) 3/4 -TON PICK-UP TRUCK DEPARTMENT: PUBLIC WORKS BACKGROUND The streets Maintenance Division of the Public Works Department requested and received City Council approval for the procurement of one (1) 3/4 -ton pick-up truck for FY 91/92. A request for sealed bids was advertised with the following bids received on March 12, 1992: GS -91=92-15 Valencia Dodge Valencia $15,098.93 Fuller Ford Chula Vista $15,870.53 Parkway Gmc Valencia $16,911.90 Scott Irwin Valencia $17,333.42 Staff has reviewed the responses and recommends award of GS -91-92015 to Valencia Dodge as the lowest, most qualified bidder. Direct staff to issue a purchase order to Valencia Dodge for one (1) 3/4 -ton pick-up truck as specified in bid GS -91-92-15. pickup DW:dmr Agenda Item: Appendix D APPENDIX E_ CITY OF SANTA CLARITA �h CHECK.REOUEST DATE o _wt ACCT # pyffluriTwisl ADDRESS : PHONE AMOUNT $ FEDERAL TAX I.D. # OR SOCIAL SECURITY # DESCRIPTION: CHECK HERE FOR NEW ADDRESS SPECIAL INSTRUCTIONS: DEPT. HEAD/DESIGNATE •"`'• City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355 (805) 259-2489 FAX: (805) 259-8125 City of SF 'i Clarita Field Services Unice t` 25663 Avenue Stanford (805)294-2500 FAX(805)294-2517 Quote BUSINESS SUPPLIES UNUMTED (8/O 311.2988, 1619) 3.24.2072 Name From: ` Address Phone #: FAX #: Vendor (Please use Ballpoint Pen) City State Instructions: Zip Phone # Contact: Date: FAX #: Prices Quoted are F.O.B.: Quantity Description Price Unit Measure Extended Price i s FREIGHT (NON-TAXABLE) x to CSCmO REQUEST FOR QUOTE ONLY Sub -total Tax TOTAL BUSINESS SUPPLIES UNUMTED (8/O 311.2988, 1619) 3.24.2072 v a x •'•`• ``••, City of Santa Clarita 23920 Valencia Blvd., Suite 300 Santa Clarita, CA 91355 (805) 259.2489 FAX (800 259-8125 \.sem Purchasr'equisition BMNEea SUM UES UrUMTEO (!14 341,2W (lhA U"M Name Ship .To ■ City of Santa Clarita 25663 W. Ave. Stanford Santa Clarita, CA 91355 Address Vendor (Please use Ballpoint Pen) P.O.Box Department: City State Account Charged: ZIP Phone M Reguested By: Date: Vendor Contact: Batch k: Date Required: PR M: Vendor N: Quantity DescriptionPrice unn Measure Extended Price rf FREIGHT (NdYTAXAA QUOTE Name: Phone: Contact: Total Price: QUOTE Name: Phone: Contact: Total Price: QUOTE Name: Phone: Contact: Total Price: Sub -total Tax Department Ap"Id - Me a Cee GC\/CCCr rnn rues r'.�.r.0 Purchedrq Approval TOTAL BMNEea SUM UES UrUMTEO (!14 341,2W (lhA U"M 011 NAMP. ADDRESS, C '.4i C( IN I ACT f-Un1 *rnHSIC UhUhh -� CLARITA \I'1 I i'. Yxr I%.( '.% Ili INS IFPa `vl !.IXu IA\ I%1151_154X125 APPROVALS PURCHASING AGENT DATE I 1 A!;l NOWY,1 /S 1MMf"DIATF_LY IF Y0I/ /IRI' LINAnI l:'TO ,;111P COMPLETE- ORDER l7Y DATE SPECIFIED I LIX.1hle Item N _ Non -Taxable Item This number must appear on all package9 invoices and shipping orders. maw T ) .;I VENDOR SUPPLIER APPRAISAL SUPPLIER NAME: PURCHASE ORDER NUMBER: DELIVERY: ON-TIIv1E ❑ DELINQUENT ❑ CUSTOMER SERVICE: EXCELLENT ❑ FAIR ❑ UNACCEPTABLE COMMENTS: I PLEASE RETURN THIS FORM TO PURCHASING UPON RECEIPT OF YOUR ORDER. THIS WILL ENABLE THE CITY TO EVALUATE THE SUPPLIER ON ALL ASPECTS OF PERFORMANCE. Appendix E Page 5 COMPARISON OF PUBLIC BID PROCEDURES - MISCELLANEOUS CITIES SCV Chamber of Commerce Bid Committee October 22, 1992 011 Does ordinance or purchasing manual mentlon a responsible bidder's list or public malling list? BAKERSFIELD Yes CALABASAS Unknown 'PALMDALE Unknown SANTA BARBARA Unknown SANTA ROSA Yes SIMI Yes SOUTH GATE Yes THOUSAND OAKS Yes SANTA CLARITA Yes Does ordinance or purchasing manual require the payment of a bid submission tee? BAKERSFIELD No CALABASAS Unknown PALMDALE No SANTA BARBARA No SANTA ROSA No SIMI" No SOUTH GATE No THOUSAND OAKS No SANTA CLARITA Yes (Chil CAp'ivLt ?m*4ecl�) -2- 1 Does ordinance or purchasing manual require bidder to post securlty or bid bond? BAKERSFIELD Yes: 10% (mandatory) CALABASAS Unknown PALMDALE Unknown SANTA BARBARA Yes: 10% (mandatory) SANTA ROSA Yes: open-ended (discretionary) SIMI Yes: 10% (discretionary) SOUTH GATE Yes: open-ended (discretionary) THOUSAND OAKS Yes: 10% (discretionary) SANTA CLARITA Yes: 10% (discretionary) t Does ordinance or purchasing manual provide for centralized purchasing management (e.g., purchasing supervisor or agent)? BAKERSFIELD Yes (Finance Manager) CALABASAS Unknown PALMDALE Yes SANTA BARBARA Yes SANTA ROSA Yes SIMI Yes SOUTH GATE Yes THOUSAND OAKS Yes SANTA CLARITA No ' -3- Does ordinance or purchasing manual mention a local business set-aside? BAKERSFIELD No CALABASAS Unknown PALMDALE Yes (1%) SANTA BARBARA No SANTA ROSA No SIMI No SOUTH GATE Yes (1%) THOUSAND OAKS No SANTA CLARITA hp y 1',b What is the purchasing agent's authority to execute contracts without council approval? BAKERSFIELD To $20,000 (Finance Manager) ` CALABASAS Unknown PALMDALE SUPPLIES & EQUIP.: to $20,000; 1 PUBLIC WORKS: to $5,000 SANTA BARBARA Unknown SANTA ROSA 31430,000 by purchasing agerit +$30,000-$50,000 awarded by City Manager, over $50,000 by City Council SIMI To $15,000 SOUTH GATE To $20,000 THOUSAND OAKS to $25,000 with Finance Manager's approval SANTA CLARITA to $20,000 (City, Manager) -4- What are the ranges for open market, Informal and formal bid procedures? BAKERSFIELD COMBINED: open market to $20,000, formal over $20,000 CALABASAS Unknown PALMDALE SUPPLIES & EQUIPMENT: requisition to $700; open market to $20,0000; formal over $20,000 PUBLIC WORKS: open market to $5,000; formal over $5,000 SANTA BARBARA Unknown SANTA ROSA COMBINED: $143;000 by requisition; Informal $3,000.$30,000; formal over $30,000 SIMI SUPPLIES, EQUIPMENT & PUBLIC WORKS: requisition to $1,000; open market to $15,000; informal to $50,000; formal over $50,000 SERVICES: requisition to $15,000; formai over $15,000 SOUTH GATE COMBINED: open market to $20,000; format over $20,000 THOUSAND OAKS COMBINED: straight purchase to $25,000; informal over $25,000; formal over $75,000 SANTA CLARITA SUPPLIES 3 EQUIPMENT: requisition to $2,000; Informal to $10,000; formal over $10,000 SERVICES: requisition by City Manager up to $20,000; City Council over $20,000 PUBLIC WORKS: requisition up to $15,000; informal up to $50,000; formal over $50,000 Other cities' formal Informal bid ceilings: INGLEWOOD $25,000 FRESNO $10,000 HAYWARD $15,000 OAKLAND $15,000 POMONA $10,000 REDLANDS $20,000 - STOCKTON $20,000 .5. Does ordinance or purchasing manual provide for a double submittal bid process? Simi Yes* (see below) THOUSAND OAKS No BAKERSFIELD No CALABASAS No PAL MDAL.E No SANTA BARBARA No SANTA ROSA No SOUTH GATE No SANTA CLARITA No *The double -bid process in Simi applies to certain consulting services associated with public works contracts such as engineering, architectural, construction and the like (see attached memorandum). -6- DATE: TO: FROM: SUBJECT: CITY OF SIMI VALLEY • MEMORANDUM February 10, 1992 Distribution Connie Henes-Bairdpport Services Administrator The State Legislature recently passed a law requiring State Agencies to award contracts for engineering, architectural, environmyyental land surveying, or ratherulhuoncprtjeftthe�serevicesserTheeCity les'adopting ii qualificationebaaed selection process as well for these types of contracts. Additionally, the Fair Political Practices requirements for filing Conflict of Interea City's.procedure -for compliance with this r s memo. The basic change in procedure for the City engineering, architectural, environmental, land ppro ect management consultant services versus other is he requirement to utilize attwo Anvelopa submit proposal is submitted separate from the technical proposals for the'top three ranking fims are and evaluation process is completed for the technic& a ranking of the proposals has been established. negotiated with the top ranking firm. (That is, the the fee strictly as proposed in the Consultant's c negotiate an appropriate amount.) If an agreement top ranked firm, negotiations are terminated and ranked firm begin, and so on until an agreement selected. on recently expanded the ants to Consultants. The t is the completion of a which is discussed further in obtaining proposals for surveying, or construction types of consultant services tal process whereby the cost qualification roposal. The 1 queali "Caton prothe sats end A contract price is then City does not have to accept ost proposal, butrathercan cannot be negotiated with the neggotiations with the second is reached and a firm is I've enclosed a listing of the basic procedures to be followed when soliciting proposals for engineering, architectural environmental, land .surveying, or construction project management services lAttachment A). I've also enclosed a sample RFP package which shows appropriate format under these new guidelines (Attachment B). Please note the new clause on paTe 9 of the RFP headed Sonf] W Interest Disclosure. This paragraph should be included in IU Coosulttan—t. ct WS. If you have any questions, please contact me at extension 6750: Attachments Distribution: 11SS Services, Purchasing ATTACHMENT A PROCEDURES FOR CONTRACTING FOR ENGINEERING, ARCHITECTURAL CONSULTANT SERVICES LAND SURVEYING, OR CONSTRUCTION PROJECT MANAGENEMT The basic procedure to be followed when soliciting proposals for engineering, architectural, environmental, land surveying, or construction project management consultant services is as follows: 1. Prepare a Request for Proposal (RFP) package. The RFP should require two envelopes from the proposer, one with•.technical qualifications and the second with the cost.for the services. (If there is a chance that the requirement for errors and omissions insurance may be waived, costs both with and without the insurance should be requested.) 2. The RFP package 1s reviewed.by Support Services and the City Attorney's Office prior to distribution. 3. A copy of the. RFP 1s sent to Planning for Environmental Assessment. 4. Proposals should be received by the Department issuing the RFP. 5. Proposals are accepted only until the date and time stated in the RFP. Late proposals should be returned unopened. 6. The contents of the proposal should not be revealed to the proposers until after award of contract to allow for objectivity in the evaluation and negotiation process. 7. A committee (two or.more people) of City staff members should be utilized to evaluate the proposals. The technical qualification proposals JIlu are reviewed and evaluated prior to opening any cost proposals. The technical proposals are ranked based on criteria such as the following: • Understanding of the workscope • Demonstrated professional skill and credentials • Related experience and references • Quality of the proposal • Approach to performing the stated discipline • Ability to perform the service in a timely manner 8. Once the firms are ranked, the cost proposals of the top three ranking firms are opened. 9. The top ranked firm is contacted to negotiate a contract. The City does not have to accept the fee strictly as proposed in the Consultant's cost proposal, but 1s free to negotiate an appropriate amount. 10. If an agreement cannot be negotiated with the top ranked firm, negotiations are terminated and negotiations with the second ranked firm begin, and so on until an agreement is reached and a firm is selected. NOTE: Negotiations take place with M firm at a time and proceed in rank order only. I/SS ^* 11. Staff make a determination regarding whether or not the Consultant will be 'cam~7 required to file a Conflict of Interest Statement under the Fair Political Practices Commission (FPPC) requirements. If the Consultant's activities will require that a Conflict of Interest Statement be filed, the Consultant should be so notified during the negotiation process. 12. A staff report is prepared summarizing the RFP process with a recommendation for award of contract. Support Services and the City Attorneys Office review the report prior to submittal to the City Manager's Office. Please note that the staff report does not contain a listing of the costs submitted by the various proposers. Rather, the qualification -based selection process is discussed including the ranking of the proposals received. (An actual rating matrix could be included with the staff report as an addendum and the text of the staff report would focus on the qualifications of the recommended Consultant.) 13. The Determination of Reporting Status for Consultants form is completed and routed with the staff report and Agreement for approval by the City Manager. 14. Contracts for under $15,000 can be awarded by the City Manager. Contracts exceeding $15,000 ayA be awarded. by the City Council or Board of Directors. The procedure for obtaining a Consultant for both categories of cost is the same with the exception of the awarding authority. 1/SS (h) Obtain chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. The City may pay the costs of such tests or may require that the costs of such tests be paid by the bidder; (1) Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any agency or which have become unsuitable for City use; and (j) Maintain bidders lists, vendor catalog files, and other records needed for the efficient. operation of the purchasingfunction. ine rurcnasing Agent may autnorize any agency to purchase or contract for specified supplies, equipment, maintenance services. and public projects independently of the Purchasing Agent, but the -Purchasing Agent .shall require that such purchases or contracts be made in conformance with the procedures established by this chapter and other administrative .rules and regulations as may be established. and may further require periodic reports from such agency regarding the purchases and contracts made under such authorization. Sec: 2-9.106. Re uisitions. Usk agencies s a submit purchase and contract requests for supplies, equipment, maintenance services, and public projects to the Purchasing Agent by standard requisition procedures prior to initiating any procurement. Sec. 2-9.107. Purchase orders. Purchases or contractor supplies, equipment, maintenance services, and public projects shall be made only by purchase order with the exception of those purchases made with imprest funds. Sec. 2-9.108. Encumbrance of funds. Except in cases of emergency, the Purchasing Agent shall not issue any purchase order for supplies, equipment, maintenance services, and public projects unless there exists an unencumbered appropriation against which such purchase is to be charged. Sec. 2-9.109. Sta in of urchases. phases an contracts s hall not be staged or separated into smaller units of work for the purpose of evading the competitive bidding procedures of this chapter. 14